Document:

exv10w1

Exhibit 10.1

VOTING AGREEMENT

     This Voting Agreement (the “Agreement”) is made and entered into as of August 17,
2010, by and among Pharaoh Acquisition Corp., a Delaware corporation (“Parent”), and the
undersigned stockholder (“Holder”) of Phoenix Technologies Ltd., a Delaware corporation
(the “Company”).

RECITALS

     Pursuant to an Agreement and Plan of Merger, dated as of the date hereof (the “Merger
Agreement”), by and among Parent, Pharaoh Merger Sub Corp., a Delaware corporation and
wholly-owned subsidiary of Parent (“Merger Sub”), and the Company, Merger Sub is merging
with and into the Company (the “Merger”) and the Company, as the surviving corporation of
the Merger, will thereby become a wholly-owned subsidiary of Parent. Concurrently with the
execution and delivery of the Merger Agreement and as a condition and inducement to Parent and
Merger Sub to enter into the Merger Agreement, Parent has required that Holder enter into this
Agreement. In order to induce Parent to enter into the Merger Agreement, Holder is willing to make
certain representations, warranties, covenants and agreements with respect to the shares of common
stock, par value $0.001 per share, of the Company (“Company Common Stock”) beneficially
owned by Holder (within the meaning of Rule 13d-3 of the Exchange Act) and set forth beneath
Holder’s signature on the last page of this Agreement (the “Shares”). Capitalized terms
used herein but not defined shall have the meanings ascribed to them in the Merger Agreement.

AGREEMENT

     NOW, THEREFORE, in consideration of the premises and for other good and valuable
consideration, the receipt, sufficiency and adequacy of which are hereby acknowledged, the parties
hereto agree as follows:

          1. Agreement to Retain Shares.

               a. Transfer. During the period beginning on the date hereof and ending on the
Expiration Date (as defined in Section 4 below), (1) except as contemplated by the Merger
Agreement, and except as provided in Section 1(b) below, Holder agrees not to, directly or
indirectly, sell, transfer, exchange or otherwise encumber or dispose of (including by merger,
consolidation or otherwise by operation of law) (“Transfer”) the Shares and further
acknowledges and agrees that any attempted Transfer of Shares or any interest therein in violation
of this Section 1(a) shall be null and void, and (2) Holder agrees that Holder will not,
and will not permit any entity under Holder’s control to, directly or indirectly, grant any proxies
or powers of attorney, deposit any of such Holder’s Shares into a voting trust or enter into a
voting agreement with respect to any of such Holder’s Shares, or enter into any agreement or
arrangement providing for any of the actions described in this clause (2).

               b. Permitted Transfers. Section 1(a) shall not prohibit a transfer of Shares
by Holder to (i) any family member or trust for the benefit of any family member of (ii) any
affiliate, stockholder, member or partner of any Holder which is an entity, so long as the assignee
or transferee agrees to be bound by the terms of this Agreement and executes and delivers to the
parties hereto a written consent, reasonably satisfactory in form and substance to Parent,
memorializing such agreement.

               c. New Shares. Holder agrees that any shares of Company Common Stock that Holder
purchases or with respect to which Holder otherwise acquires record or beneficial ownership after
the date of this Agreement and prior to the Expiration Date shall be subject to the terms and
conditions of this Agreement to the same extent as if they constituted Shares and for all purposes
shall be included in the definition of Shares.

               d. Covenant of the Holder. Holder agrees with, and covenants that, (i) this Agreement
and the obligations hereunder shall attach to Shares and, notwithstanding any violation of the
transfer restrictions contained in this Agreement, shall be binding upon any person or entity to
which

 

 

legal or beneficial ownership shall pass, whether by operation of law or otherwise; and (ii)
such Holder shall not request that the Company register the transfer (book-entry or otherwise) of
any certificate or uncertificated interest representing any or all of the Shares, unless such
transfer is made in compliance with this Agreement.

          2. Agreement to Vote Shares.

               a. Holder agrees during the term of this Agreement to vote the Shares, and to cause any holder
of record of Shares to vote or execute a written consent or consents if stockholders of the Company
are requested to vote their shares through the execution of an action by written consent in lieu of
any such annual or special meeting of stockholders of the Company: (i) in favor of the Merger and
the Merger Agreement, at every meeting (or in connection with any action by written consent) of the
stockholders of the Company at which such matters are considered and at every adjournment or
postponement thereof; (ii) against (1) any Acquisition Proposal, (2) any action, proposal,
transaction or agreement which could reasonably be expected to result in a breach of any covenant,
representation or warranty or any other obligation or agreement of the Company under the Merger
Agreement or of Holder under this Agreement and (3) any action, proposal, transaction or agreement
that could reasonably be expected to impede, interfere with, delay, discourage, adversely affect or
inhibit the timely consummation of the Merger or the fulfillment of Parent’s, the Company’s or
Merger Sub’s conditions under the Merger Agreement or change in any manner the voting rights of any
class of shares of the Company (including any amendments to the Company’s certificate of
incorporation or bylaws) (collectively, the “Covered Proposals”). This Agreement is
intended to bind Holder as a stockholder of the Company only with respect to the Covered Proposals.
Except as expressly set forth in this Section 2(a), Holder shall not be restricted from
voting in favor of, against or abstaining with respect to any other matter presented to the
stockholders of the Company. Until the Expiration Date, Holder covenants and agrees not to enter
into any agreement or understanding with any person with respect to voting of its Shares on any
Covered Proposal which conflicts with the terms of this Agreement.

               b. Holder further agrees that, until the Expiration Date, Holder will not, and will not permit
any entity under Holder’s control to, (A) solicit proxies or become a “participant” in a
“solicitation” (as such terms are defined in Rule 14A under the Exchange Act) in opposition to any
Covered Proposal, (B) initiate a stockholders’ vote with respect to an Acquisition Proposal or (C)
become a member of a “group” (as such term is used in Section 13(d) of the Exchange Act) with
respect to any voting securities of the Company with respect to an Acquisition Proposal.

               c. Subject to the provisions set forth in Section 5 hereof, and as security for
Holder’s obligations under Section 2(a), until the Expiration Date, Holder hereby
irrevocably constitutes and appoints Parent and its or his designees as Holder’s attorney and proxy
in accordance with the General Corporation Law of the State of Delaware, with full power of
substitution and resubstitution, to cause the Shares to be counted as present at the Stockholder
Meeting, to vote his Shares at the Stockholder Meeting, however called, and to execute consents in
respect of his Shares with respect to the Covered Proposals. SUBJECT TO THE PROVISIONS SET FORTH IN
SECTION 5 HEREOF, THIS PROXY AND POWER OF ATTORNEY IS IRREVOCABLE AND COUPLED WITH AN
INTEREST. The power of attorney granted by holder herein is a durable power of attorney and shall
survive the dissolution, bankruptcy, death or incapacity of Holder. Upon the execution of this
Agreement, Holder hereby revokes any and all prior proxies or powers of attorney given by Holder
with respect to voting of the Shares on the Covered Proposals and agrees not to grant any
subsequent proxies or powers of attorney with respect to the voting of the Shares on any Covered
Proposal until after the Expiration Date. Holder understands and acknowledges that Parent is
entering into the Merger Agreement in reliance upon the Holder’s execution and delivery of this
Agreement and Holder’s granting of the proxy contained in this Section 2(c). Holder hereby
affirms that the proxy granted in this Section 2(c) is given in connection with the
execution of the Merger Agreement, and that such proxy is given to secure the performance of the
duties of Holder under this Agreement. If for any reason the proxy granted herein is found by a
court of

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competent jurisdiction to not be valid, then Holder agrees to vote the Shares in accordance
with Section 2(a). For Shares as to which Holder is the beneficial but not the record
owner, Holder shall take all necessary actions to cause any record owner of such Shares to
irrevocably constitute and appoint Parent and its designees as such record owner’s attorney and
proxy an irrevocable proxy to the same effect as that contained herein

          3. Representations, Warranties and Covenants.

               (I) Of Holder. Holder hereby represents, warrants and covenants to Parent that:

               a. Holder (i) is the beneficial owner (as such term is defined in Rule 13d-3 under the
Exchange Act) of the Shares, free and clear of all Liens (other than those created by this
Agreement) and (ii) except pursuant hereto, there are no options, warrants or other rights,
agreements, arrangements or commitments of any character to which Holder is a party relating to the
pledge, disposition or voting of any of the Shares and there are no voting trusts or voting
agreements with respect to the Shares.

               b. Holder does not beneficially own any shares of capital stock of the Company other than (i)
the Shares and (ii) any options, warrants or other rights to acquire any additional shares of
Company Common Stock or any security exercisable for or convertible into shares of Company Common
Stock, set forth on the signature page of this Agreement (collectively, “Options”).

               c. Holder has the legal capacity, power and authority to enter into and perform all of
Holder’s obligations under this Agreement (including under the proxy granted in Section
2(c) above). This Agreement (including the proxy granted in Section 2(c) above) has
been duly and validly executed and delivered by Holder and constitutes a valid and binding
agreement of Holder, enforceable against Holder in accordance with its terms, subject to (a) laws
of general application relating to bankruptcy, insolvency and the relief of debtors and (b) rules
of law governing specific performance, injunctive relief and other equitable remedies.

               d. None of the execution and delivery of this Agreement by Holder, the consummation by Holder
of the transactions contemplated hereby or compliance by Holder with any of the provisions hereof
will conflict with or result in a breach, or constitute a default (with or without notice of lapse
of time or both) under any provision of, any trust agreement, loan or credit agreement, note, bond,
mortgage, indenture, lease or other agreement, instrument or Applicable Law applicable to Holder or
to Holder’s property or assets.

               e. Other than an amendment to Holder’s Schedule 13D on file with the U.S. Securities and
Exchange Commission, no consent, approval or authorization of, or designation, declaration or
filing with, any Governmental Authority or other Person on the part of Holder is required in
connection with the valid execution and delivery of this Agreement.

               (II) Of Parent. Parent hereby represents, warrants and covenants to Holder that:

               a. Parent has the legal capacity, power and authority to enter into and perform all of
Parent’s obligations under this Agreement. This Agreement has been duly and validly executed and
delivered by Parent and constitutes a valid and binding agreement of Parent, enforceable against
Parent in accordance with its terms, subject to (a) laws of general application relating to
bankruptcy, insolvency and the relief of debtors and (b) rules of law governing specific
performance, injunctive relief and other equitable remedies.

               b. None of the execution and delivery of this Agreement by Parent, the consummation by Parent
of the transactions contemplated hereby or compliance by Parent with any of the provisions hereof
will conflict with or result in a breach, or constitute a default (with or without notice of lapse
of time or both) under any provision of, any trust agreement, loan or credit agreement, note, bond,

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mortgage, indenture, lease or other agreement, instrument or Applicable Law applicable to
Parent or to Parent’s property or assets.

               c. No consent, approval or authorization of, or designation, declaration or filing with, any
Governmental Authority or other Person on the part of Parent is required in connection with the
valid execution and delivery of this Agreement.

          4. Termination. This Agreement shall terminate upon the earliest to occur of (i) the
Effective Time, (ii) the date on which the Merger Agreement is terminated in accordance with its
terms, (iii) the mutual written consent of the parties hereto, (iv) any material amendment to the
Merger Agreement, including any decrease in, or change in form of, the merger consideration and (v)
the End Date (as defined in the Merger Agreement as in effect on the date hereof) (the earliest of
such dates, the “Expiration Date”).

          5. Fiduciary Duties. Notwithstanding anything in this Agreement to the contrary: (i)
Holder makes no agreement or understanding herein in any capacity other than in Holder’s capacity
as a beneficial owner of the Shares, (ii) nothing in this Agreement shall be construed to limit or
affect the Holder’s rights and obligations as a director, officer, or other fiduciary of the
Company, and (iii) Holder shall have no liability to Parent, Merger Sub or any of their Affiliates
under this Agreement as a result of any action or inaction by Holder acting in his capacity as a
director, officer, or other fiduciary of the Company.

          6. Waiver of Appraisal and Dissenters’ Rights. Holder hereby waives, and agrees not
to assert or perfect, any rights of appraisal or rights to dissent from the Merger that Holder may
have by virtue of ownership of the Shares.

          7. Miscellaneous.

               a. Amendments and Waivers. Any term of this Agreement may be amended or waived with
the written consent of the parties or their respective successors and assigns. Any amendment or
waiver effected in accordance with this Section 7(a) shall be binding upon the parties and
their respective successors and assigns.

               b. Governing Law; Venue. This Agreement shall be governed by and construed in
accordance with the laws of the State of Delaware, without giving effect to principles of conflicts
of law thereof. Each of the parties hereto (i) consents to submit to the personal jurisdiction of
any federal court located in the State of Delaware or any Delaware state court in the event any
dispute arises out of this Agreement, (ii) agrees that it shall not attempt to deny or defeat such
personal jurisdiction by motion or other request for leave from any such court and (iii) agrees
that it shall not bring any action relating to this Agreement in any court other than a federal or
state court sitting in the State of Delaware.

               c. WAIVER OF JURY TRIAL. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH
MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND,
THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY TO THIS AGREEMENT CERTIFIES AND
ACKNOWLEDGES THAT (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE,
THAT SUCH OTHER PARTY WOULD NOT SEEK TO ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL
ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) SUCH PARTY MAKES THIS
WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 7(c).

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               d. Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument.

               e. Titles and Subtitles. The titles and subtitles used in this Agreement are used for
convenience only and are not to be considered in construing or interpreting this Agreement.

               f. Notices. Any notice required or permitted by this Agreement shall be in writing and
shall be deemed sufficient upon receipt, when delivered personally or by courier, overnight
delivery service or confirmed facsimile, or 72 hours after being deposited in the regular mail as
certified or registered mail with postage prepaid, if such notice is addressed to the party to be
notified at such party’s address or facsimile number as set forth below, or as subsequently
modified by written notice.

               g. Severability. If one or more provisions of this Agreement are held to be
unenforceable under applicable law, the parties agree to renegotiate such provision in good faith,
in order to maintain the economic position enjoyed by each party as close as possible to that under
the provision rendered unenforceable. In the event that the parties cannot reach a mutually
agreeable and enforceable replacement for such provision, then (i) such provision shall be excluded
from this Agreement, (ii) the balance of the Agreement shall be interpreted as if such provision
were so excluded and (iii) the balance of the Agreement shall be enforceable in accordance with its
terms.

               h. Specific Performance. Each of the parties hereto recognizes and acknowledges that a
breach of any covenants or agreements contained in this Agreement will cause Parent and Merger Sub
to sustain damages for which they would not have an adequate remedy at law for money damages, and
therefore each of the parties hereto agrees that in the event of any such breach Parent shall be
entitled to the remedy of specific performance of such covenants and agreements and injunctive and
other equitable relief in addition to any other remedy to which they may be entitled, at law or in
equity and Holder will not oppose the seeking of such relief on the basis that Parent has an
adequate remedy at law. Holder hereby agrees that it will not seek, and agrees to waive any
requirement for, the securing or posting of a bond in connection with Parent seeking or obtaining
such equitable relief.

[Signature Page Follows]

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     The parties have caused this Agreement to be duly executed on the date first above written.

	 	 	 	 	 	 	 	 	 

	Parent:	 	Pharaoh Acquisition Corp.
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Nick Kaiser 

	 	 	 	 	Name: Nick Kaiser
	 	 	 	 	Title: President
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	2121 Rosecrans Avenue 

	 	 	 	 	 	 	Suite 4325 

	 	 	 	 	 	 	El Segundo, CA 90245 

	 	 	 	 	 	 	  

	 	 	Attention:	 	Nick Kaiser 

	 
	 	 	 	 	 	 	 	 
	 	 	Telephone:	 	 	 	(310) 364-0100 

	 	 	Facsimile:	 	 	 	(310) 364-0110 

[Signature page to voting agreement.]

 

 

	 	 	 	 	 	 	 	 	 

	Holder:	 	Ramius LLC
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Owen Littman 

	 	 	 	 	Name: Owen Littman
	 	 	 	 	Title: Authorized Signatory
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	599 Lexington Avenue 

	 	 	 	 	 	 	20th Floor 

	 	 	 	 	 	 	New York, NY 10022 

	 	 	 	 	 	 	  

	 	 	Attention:	 	Jeffrey C. Smith/Owen Littman 

	 
	 	 	 	 	 	 	 	 
	 	 	Telephone:	 	 	 	212-845-7955 / 212-201-4841 

	 	 	Facsimile:	 	 	 	212-845-7986 / 212-845-7995 

	 	 	 	 	 

	Number of Shares of Company Common Stock
Beneficially Owned as of the Date of this
Agreement:
	 	 	5,103,500	 
	 
	 	 	 	 
	 
	 	 	 	 
	[Number of Options Beneficially Owned as of
the Date of this Agreement:]
	 	 	 	 
	 
	 	 	 	 

[Signature page to voting agreement.]exv10w2

Exhibit 10.2

August [___], 2010

[Name]

[Address]

Dear [Name]:

     We are pleased to inform you that you have been selected for participation in the new
acquisition bonus program established by Phoenix Technologies Ltd. (the “Company”). The purpose of
the new bonus program is to reward you and other key employees of the Company for your efforts in
relation to an acquisition of the Company by allowing you to participate in a special bonus pool
that will be established at the time of a qualifying acquisition. This bonus program is effective
from the date of this letter through any acquisition of the Company on or before June 30, 2011,
whether by merger or stock or asset sale.

     The purpose of this award letter is to set forth the terms and conditions which will govern
your participation in the new program. Part I of this award letter contains certain definitions
which will be in effect for purposes of determining and quantifying your potential bonus award
under the program. Part II sets forth the terms and conditions governing your participation in the
bonus pool, the calculation of your potential bonus and the payment of any bonus to which you may
actually become entitled. Part III concludes with a summary of certain miscellaneous features of
your award.

PART I — DEFINITIONS

     For purposes of your participation in the special bonus program, the following definitions
will be in effect:

     Acquisition means any of the following transactions pursuant to which the Company is
acquired for consideration paid in cash, securities or other property:

          (i) a merger, consolidation or other reorganization approved by the Company’s stockholders in
which any person or group of related persons acquires securities possessing more than fifty percent
(50%) of the total combined voting power of the Company’s outstanding securities (as measured in
terms of the power to vote with respect to the election of Board members),

          (ii) a sale, transfer or other disposition of all or substantially all of the Company’s
assets, or

          (iii) any transaction or series of related transactions pursuant to which any person or any
group of related persons acquires from the Company’s stockholders securities possessing more than
fifty percent (50%) of the total combined voting power of the Company’s outstanding securities (as
measured in terms of the power to vote with respect to the election of Board members) pursuant to a
tender or exchange offer made to the Company’s stockholders.

     Acquisition Proceeds mean the following items of consideration (in cash, securities or
other property) paid by the acquiring person or persons in effecting the Acquisition:

 

 

          (i) for an Acquisition effected by a merger, consolidation or reorganization or by the
purchase of the Company’s outstanding securities, the aggregate amount of consideration (valued at
fair market value) paid to the holders of the Company’s outstanding securities in acquisition of
their stockholder interests and to the holders of the Company’s outstanding stock options, warrants
and other stock rights in cancellation of those securities, or

          (ii) for an Acquisition effected by the purchase of all or substantially all of the Company’s
assets the portion of the consideration (valued at fair market value) paid to the Company for those
assets or securities that is determined in good faith by the Board to be available for distribution
to the holders of the Company’s outstanding securities in liquidation of their stockholder
interests and to the holders of the Company’s outstanding stock options, warrants and other stock
rights in cancellation of those securities.

     Acquisition Value means the sum of the following two amounts: (i) the applicable
Acquisition Proceeds payable or distributable to the Company’s stockholders in connection with the
Acquisition and (ii) all monies or other sums (whether payable in cash or securities) paid by the
Company or the acquiring person or persons in the Acquisition in order to satisfy the liabilities
of the Company under the special bonus program described in this letter. No other liability of
the Company assumed or discharged by the acquiring person or persons in the Acquisition or any
expenses paid by the Company in connection with the consummation of the Acquisition will be taken
into account in determining the Acquisition Value.

     Board means the Company’s Board of Directors.

     Bonus Award means your actual bonus entitlement on the basis of your interest in the
Bonus Pool established in connection with a Qualifying Acquisition.

     Bonus Pool means the percentage of the Acquisition Value that will serve as the
calculation base for the bonus awards may become payable to you and other participants in the
program as a result of the Qualifying Acquisition that established such Acquisition Value.

     Code means the Internal Revenue Code of 1986, as amended from time to time.

	 	 	Continuous Service Requirement means your continuation in Employee status from the
date of this award letter through the expiration date of the thirty (30)-day period measured from
the Effective Date of the Qualifying Acquisition.

     Effective Date means the date on which the Qualifying Acquisition becomes effective.

     Employee shall mean an individual who is in the employ of the Company, subject to the
Company’s control and direction as to both the work to be performed and the manner and method of
performance.

     Involuntary Termination means the unilateral termination of your Employee status by
the Company for any reason other than a Termination for Cause.

     Qualifying Acquisition means an Acquisition for which the Effective Date is on or
before June 30, 2011.

     Service Completion Date means the date on which the Continuous Service Requirement is
satisfied upon your continuation in Employee status through the expiration date of the thirty
(30)-day period measured from the Effective Date of the Qualifying Acquisition.

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     Termination for Cause means the unilateral termination of your Employee status by the
Company for one or more of the following reasons: (i) your failure to substantially perform the
duties of your Employee position, other than a failure resulting from your complete or partial
incapacity due to physical or mental illness or impairment, (ii) a willful act on your part that
constitutes misconduct, (iii) your intentional or negligent disclosure of material confidential
information relating to the Company or its business to competitors or other third parties other
than in the course of carrying out your Employee duties, (iv) your material violation of any
federal or state law or regulation applicable to the business of the Company, (v) your willful
violation of a material Company employment policy or the Company’s insider trading policy, (vi) any
act or omission on your part constituting dishonesty (other than a good faith expense account
dispute) or fraud with respect to the Company or any of its affiliates that is injurious to the
financial condition of the Company or any of its affiliates or that is injurious to the business
reputation of the Company or any of its affiliates, (vii) your failure to cooperate with the
Company in connection with any actions, suits, claims, disputes or grievances against the Company
or any of its officers, directors, employees, stockholders, affiliates, divisions, subsidiaries,
predecessor and successor corporations, and assigns, whether or not such cooperation would be
adverse to your own interest, or (viii) your conviction or plea of guilty or no contest to a
felony.

     Units mean the participating interest in the Bonus Pool awarded to you and other
participants in the Bonus Program.

PART II — BONUS AWARD

     The maximum number of Units that may be awarded under the program is limited to 100,000 Units.
You have been awarded [___] Units. Your awarded Units will allow you to participate in the
Bonus Pool resulting from a Qualifying Acquisition, provided you satisfy the Continuous Service
Requirement. Your Units will not confer any stockholder status in the Company and will not entitle
you to any voting, dividend or liquidation rights.

     The terms and conditions which govern the payout of your Units may be summarized as follows:

     Qualifying Acquisition. You will become entitled to a Bonus under the program if you satisfy
the Continuous Service Requirement by remaining in Employee status through the expiration date of
the thirty (30)-day period measured from the Effective Date of the Qualifying Acquisition or if
your Employee status is terminated within that thirty (30)-day period pursuant to an Involuntary
Termination that is not otherwise a Termination for Cause.

     Base Value Per Unit. In the event of a Qualifying Acquisition, a Bonus Pool will be
established in a dollar amount equal to 0.625% of the Acquisition Value established by that
acquisition event. The base value of each Unit outstanding on the Effective Date of that
Qualifying Acquisition will then be determined by dividing the resulting Bonus Pool by the total
number of Units outstanding at that time.

     Individual Bonus Amount. The amount of your individual Bonus Award will be determined by
multiplying the number of outstanding Units you hold on the Effective Date of the Qualifying
Acquisition by the base value per Unit established above.

     Forfeiture of Outstanding Units. Should you cease to remain in Employee status for any
reason prior to the completion of the Continuous Service Requirement, then all of your outstanding
Units will immediately be cancelled, and you will not be entitled to receive any Bonus Award with
respect to those cancelled Units. However, no such forfeiture of your outstanding Units will occur
if your Employee status terminates within the thirty (30) day period measured from the Effective
Date of the Qualifying Acquisition pursuant to an Involuntary Termination that is not otherwise a
Termination for Cause.

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     Payment Date. The Bonus Award to which you become entitled in accordance with the foregoing
terms and conditions will be paid to you in a lump sum on the Service Completion Date or as soon as
administratively practicable thereafter, but in no event later than ten (10) days after such
Service Completion Date. Should your Employee status terminate prior to the Service Completion
Date by reason of an Involuntary Termination (other than a Termination for Cause) effected during
the period between the Effective Date and the Service Completion Date, then any Bonus Award to
which you become entitled under this award letter will be paid to you on the Service Completion
Date, as if you continued in Employee status through such date.

     Form of Payment. Your lump sum payment will be made in cash. However, if all or any portion
of the Acquisition Proceeds is paid in the form of freely-tradable securities registered under the
U.S. federal securities laws, then the payment of your Bonus Award may, in the sole discretion of
the Board, be made in those securities, but not in excess of the percentage of the Acquisition
Proceeds paid to Company’s stockholders in the same securities.

     Satisfaction of Bonus Award. All of your Units will terminate, and you will cease to have any
further rights or benefit entitlements by reason of those Units, upon the receipt of the amount
which becomes due and payable to you under the provisions of this award letter in connection with
the first transaction constituting a Qualifying Acquisition.

     Special Limitation. In the event that the payment to which you become entitled in accordance
with the provisions of this award letter would otherwise constitute a parachute payment under
Section 280G of the Code, then such payment will be subject to reduction to the extent necessary to
assure that you receive only the greater of (i) the amount that would not constitute such a
parachute payment or (ii) the amount that yields you the greatest after-tax amount after taking
into account any excise tax imposed under Section 4999 of the Code on that payment.

     Tax Withholding. The payment of your Bonus Award will be subject to the Company’s collection
of all applicable federal, state and local income and employment withholding taxes and any taxes
required to be withheld under Section 4999 of the Code, and you will only receive the net amount
that remains after such withholding taxes have been collected.

PART III — MISCELLANEOUS PROVISIONS

     The issuance of Units under the bonus program will in no way affect the right of the Company
to adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business or
assets.

     The Compensation Committee of the Board shall have full discretionary authority to administer
and interpret the terms and provisions of the program and this award letter. Accordingly, the
Compensation Committee shall have full power and authority to determine your eligibility for any
Bonus Award under the program, the dollar amount of that award and the medium of payment.

     Your Units or any rights or interests pertaining thereto may not be transferred, assigned,
pledged or encumbered. However, your right to any payment attributable to your Units which remains
due and payable to you at the time of your death may be transferred pursuant to your will or the
laws of inheritance.

     This award letter and the terms and conditions governing your entitlement to a Bonus Award and
the payment of that Bonus Award are intended to comply with the requirements of the short-term
deferral exception of Section 409A of the Code and Treasury Regulations Section 1.409A-1(b)(4).
Accordingly,

4

 

to the extent there is any ambiguity as to whether one or more provisions of this award letter
or the terms and conditions governing the Bonus Award would otherwise contravene the requirements
or limitations of Code Section 409A applicable to such short-term deferral exception, then those
provisions shall be interpreted and applied in a manner that does not result in a violation of the
requirements or limitations of Code Section 409A and the Treasury Regulations thereunder that apply
to such exception.

     The Board may amend the bonus program at any time; provided, however, that no such action can
adversely affect your rights or the rights of any other participants with respect to any Units held
at the time of such amendment.

     The Board or the Compensation Committee of the Board may terminate the bonus program at any
time upon thirty (30) days prior written notice to you and the other participants. Upon such
termination, all outstanding Units will continue to be governed by the provisions of the award
letter evidencing those Units, but no additional Units will be awarded following such termination.

     No provision of this award letter or your outstanding Units will confer any right upon you to
continue in Employee status for any period of specific duration or interfere with or otherwise
restrict in any way the rights of the Company or your rights to terminate your Employee status at
any time for any reason, with or without cause.

     This award letter will be governed by and construed in accordance with the laws of the State
of California without resort to that State’s conflict-of-laws rules. If any provision of this
award letter should be held by a court of competent jurisdiction to be invalid or unenforceable,
the remaining provisions of this award letter shall continue in full force and effect.

     The liabilities and obligations of the Company under the bonus program and this award letter
will be binding upon any successor corporation or entity which succeeds to all or substantially all
of the assets and business of the Company by merger or other transaction, whether or not such
transaction qualifies as a Qualifying Acquisition.

     We ask that you acknowledge your receipt of this award letter and your acceptance of the terms
and conditions in effect for the Units which have been awarded to you under the bonus program by
signing and dating the Acceptance section below and returning it to                    , the Company’s
                    , as soon as possible.

	 	 	 	 	 
	 	 Very truly yours,

Tom Lacey
President and CEO

 	 
	 	 	 
	 	 	 
	 	 	 
	 

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ACCEPTANCE

     I hereby acknowledge receipt of the Company’s letter of August ___, 2010 setting forth the
terms and conditions governing the Units awarded to me under the Company’s special acquisition
bonus program. I hereby agree to and accept all those terms and conditions, and my entitlement to
any actual bonus payment by reason of those Units shall be determined solely by the express terms
and conditions of such award letter.

	 	 	 	 	 	 	 

	 

	 	Signature:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Printed Name:	 	 	 	 
	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Dated:
	 	 	 	, 2010
	 

	 	 	 	 	 	 

6

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