Document:

ex1023.htm

    Exhibit
10.23

     

     

    

    
      14
Wall Street, 20th
Floor New York, NY 10005

      Tel:
212 618 1645 Fax: 212 618 1644

      www.johnthomasbd.com

      

      

      

      August
11, 2008

       

       

      Sahara
Media, Inc.

      75
Franklin Ave. 2nd
Floor

      New
York, New York 10013

      Attention:  Mr.
Philmore Anderson, CEO

       

      Dear
Mr. Anderson:

       

      Reference is made to the letter agreement between
John Thomas Financial, Inc. (“John Thomas Financial”) and Sahara Media, Inc.
(the “Company”), dated May 21, 2008, as amended by the letter dated August 1,
2008 (the “First Amendment”) (as amended by the First Amendment, the “Original
Agreement”).  This letter (this “Amendment”) memorializes certain
amendments that the Company and John Thomas Financial want to make to the
Original Agreement.   All capitalized terms not defined herein
shall have the same meanings as in the Original Agreement.

       

      
        	
                1.  

              	
                Amendments.

              

      

       

      
        	
                1.1  

              	
                For
      the avoidance of doubt, all references in the Original Agreement and this
      Amendment to the issuance of securities by the Company shall be deemed to
      be references to the issuances of securities by Mac Filmworks, Inc. and
      not to the issuances of securities by the
  Company.

              

      

       

      
        	
                1.2  

              	
                Section
      3 of the Original Agreement (Securities and Compensation) shall be amended
      and restated as follows:

              

      

       

      In
consideration of the services set forth above, within 120 days of the date
hereof, the Company shall, upon the completion of the Offering, as hereinafter
defined, issue to John Thomas Financial, Three Million (3,000,000) shares
of common stock, and a warrant to purchase an additional  One Million
 (1,000,000) shares of the Company’s common stock at $1.3 0 per
share.  These warrants may be exercised on a cashless basis. Subject
to the applicable rules and regulations and interpretations of the Securities
and Exchange Commission, including, without limitation, Rule 415 under the
Securities Act of 1933, the shares of common stock issuable upon exercise of the
aforementioned warrants will also be granted piggy-back registration rights
until and unless such shares may be sold pursuant to Rule 144 under the
Securities Act of 1933.   Upon the completion of a private
placement of the securities of the Company commencing in August 2008, pursuant
to which at least $8,000,000 in gross proceeds is raised for the Company though
the direct efforts of John Thomas Financial, John Thomas Tomas Financial shall
receive Four Hundred Thousand Dollars ($400,000) from the proceeds of the
private placement.”

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

       

      
        	
                2.  

              	
                Prior
      Agreements.   This Amendment shall completely
      and fully supersede all other and prior agreements and correspondence
      (both written and oral) by and between the Company and John Thomas
      Financial with respect to the subject matter of this
      Amendment.  Except as expressly amended hereby, the Original
      Agreement shall remain in full force and
      effect.

              

      

       

      
        	
                3.  

              	
                No
      Implied Waivers. Except as expressly set forth herein, nothing
      herein shall constitute an express or implied waiver of any provision of
      the Original Agreement, and in all other respects the Original Agreement
      is specifically ratified, restated and confirmed by all parties hereto as
      of the effective date
  hereof.

              

      

       

      
        	
                4.  

              	
                Counterparts.  This
      Amendment may be executed in any number of counterparts, with the same
      effect as if all the signatures on such counterparts appeared on one
      document.  Each such counterpart shall be deemed to be an
      original, but all such counterparts together shall constitute one and the
      same
instrument.

              

      

       

      
        	
                5.  

              	
                Amendments.  This
      Amendment may not be amended, waived, modified, supplemented or terminated
      in any manner whatsoever except by a written instrument signed by the
      Company and John Thomas
    Financial.

              

      

       

      
        	
                6.  

              	
                Binding
      on Successors.  This Amendment shall be binding
      upon and inure to the benefit of the parties hereto and their respective
      successors and
  permitted.

              

      

       

      
        	
                7.  

              	
                Invalidity.  Any
      provision of this Amendment that may be determined by a court of competent
      jurisdiction to be prohibited or unenforceable in any jurisdiction shall,
      as to such jurisdiction, be ineffective to the extent of such prohibition
      or unenforceability without invalidating the remaining provisions hereof,
      and any such prohibition or unenforceability in any jurisdiction shall not
      invalidate or render unenforceable such provision in any other
      jurisdiction.

              

      

       

              Each
party hereto hereby acknowledges and agrees to the terms set forth in this
letter agreement, as evidenced by such party's execution or acknowledgement of
this letter agreement below.

    

     

    
      
        	 	Very truly yours,	 
	 	 	 
	 	John Thomas Financial, Inc.	 
	 	 	 
	 	 	 
	
                 

              	
                By:
      

              	/s/ Thomas
      Belesis	 
	 	 	 	 

      

    

     

    Confirmed
and Agreed to:

    This 11th
day of August, 2008

     

    SAHARA
MEDIA, INC

     

    By:
/s/ Philmore Anderson
IV

    Title: Chief
Executive Officer 

     

    2sbsw_8k-exhibit1001.htm

    
      EXHIBIT
10.1

      

      EMPLOYMENT
AGREEMENT

      

      This
Employment Agreement (“Agreement”) is made as of September 22, 2008, by and
between Steve Yin ("Employee”) and St. Bernard Software, a Delaware corporation
(“Employer”), located at 15015 Avenue of Science, San Diego, CA
92128.

      

      W I T N E S S E T H
:

      

              WHEREAS,
Employer desires to retain the services of Employee and Employee desires to be
employed by Employer upon the terms and conditions hereinafter set
forth;

      

      NOW,
THEREFORE, In consideration of the premises and the agreements, provisions and
covenants herein contained, Employee and Employer agree as follows:

      

      

      
        	
                1)  

              	
                Services;
      Title.  Employee shall be employed as Vice President of
      Sales and Marketing (the “Title”) and provide such services as
      Employer shall reasonably request to be performed (the "Services") on a
      full-time basis and shall devote substantially all of Employee's work
      efforts to the business and operations of Employer. The position shall
      report directly to the Chief Executive
      Officer.  Employee's Title shall be subject to change by
      Company at any time.

              

      

      

      
        	
                2)  

              	
                Compensation, Benefits
      and Reviews.  Subject to all the other terms of this
      Agreement, in connection with Employee's performance of the Services,
      Employer shall:

              

      

      

      
        	
                a)  

              	
                Pay
      Employee's salary by check or direct deposit twice per month in equal
      installments in accordance with Employer's regular salary payment
      schedule, which shall be paid at the current rate of $7,708.33 (before
      deductions made at Employee's request, if any, and for deductions required
      by federal, state and local law)
semi-monthly.

              

      

      

      
        	
                b)  

              	
                Pay
      Employee a monthly commission on sales based on the terms and conditions
      set forth in a then current Sales Variable (Commission) Compensation plan
      (the “Plan”) established by the board of directors or a committee of the
      board of directors, as such Plan may be amended by the board of directors,
      or its committee, from time to time.   Attached hereto as
      Exhibit C is the
      current Plan for 2008.

              

      

      

      
        	
                c)  

              	
                Grant
      Employee the option to participate in the benefit plans offered by
      Employer, including without limitation, insurance plans, 401(k) and other
      savings plans, short and long term disability insurance, Section 125
      (cafeteria) and similar pre-tax expense plans, holidays, sick leave, etc.,
      which may be amended from time to time in Employer’s
      discretion.

              

      

      

      
        	
                d)  

              	
                Participate
      in health insurance for Employee and Employee’s dependents, and such other
      benefits as Employer shall determine to provide to all of its employees
      from time to time.

              

      

      

      
        	
                e)  

              	
                Reimburse
      Employee for all reasonable travel, meals, lodging, communications,
      entertainment and other business expenses incurred by Employee in
      connection with Employee’s
employment.

              

      

      

      
        	
                f)  

              	
                Grant
      Employee four (4) weeks
      vacation with pay for each twelve-month period, to be taken at times
      agreed with Employer.  Unused vacation shall accrue according to
      the Employer’s accrued vacation policy, as may be amended from time to
      time.

              

      

       

       

      
        
          
          

        

        
          1

          
            

          

        

        
          
          

        

      

      

      
        	
                3)  

              	
                At-Will Employment and
      Termination. Employee’s employment shall be on an “at-will” basis
      and not for any specific time period.  “At will” employment
      means that Employee may quit at any time for any
      reason.  Likewise, Employer may terminate Employee’s employment
      at any time for any reason.  Employer does not guarantee or
      promise any form of notice, warning, corrective action or progressive
      discipline before termination.

              

      

      

      
        	
                a)  

              	
                Termination Without
      Cause.   In the event Employee shall be terminated
      by Employer without “Cause” or terminated following a Change of Control
      (as defined below), Employer shall provide Employee with compensation
      required by Paragraph 2(a) or then current regular salary plus the amount
      of the on-target variable compensation defined in paragraph 2(b), plus
      benefits defined in Paragraph 2(c) and 2(d) of this Agreement for a period
      of six (6)
      months from the date of termination as Severance, plus all accrued
      but unpaid salary and vacation time to the date of termination and any
      applicable annual bonus which has been earned but not yet paid. Employee’s
      eligibility for Severance is conditioned on Employee having first signed a
      release agreement in the form attached as Exhibit B and a
      termination certificate as provided for in paragraph 4 in the form of
      Exhibit
      A.

              

      

      

      
        	
                b)  

              	
                 Termination For
      Cause. Upon termination of Employee's employment with Employer for
      “Cause”, Employer shall be under no further obligation to Employee for
      salary or other compensation, except to pay all accrued but unpaid salary
      and accrued vacation time up to the date of termination.  For
      purposes of this Agreement, “Cause” shall mean that Employee: has been
      negligent in the discharge of his or her duties to Employer or has acted
      in a manner constituting gross negligence or willful misconduct; has been
      dishonest or committed or engaged in an act of theft, embezzlement or
      fraud, a material breach of confidentiality, an unauthorized disclosure or
      use of inside information, customer lists, trade secrets or other
      confidential information; has breached a fiduciary duty; has been
      convicted of, or plead guilty or nolo contendere to a felony or a
      misdemeanor (other than minor traffic violations or similar offenses)
      injurious to the reputation, business or assets of Employer or an
      affiliate; has materially breached any of the material provisions of this
      Agreement; has engaged in unfair competition with, or otherwise acted
      intentionally in a manner injurious to the reputation, business or assets
      of, Employer or an affiliate; has materially violated Employer’s policies
      and procedures, and specifically a violation of Employer’s sexual
      harassment and/or anti-discrimination policies, or a violation of
      Employer’s trade secrets policies, or use or disclosure of Employer’s
      trade secrets for personal gain; or has improperly induced a vendor or
      customer to break or terminate any contract with Employer or an affiliate
      or induced a principal for whom Employer or an affiliate acts as agent to
      terminate such agency relationship.

              

      

      

      
        	
                c)  

              	
                Change of
      Control. Change of Control, for purposes of this Agreement, means a
      change in the ownership or control of the Company affected through any one
      of the following transactions:

              

      

      

      (i) a merger or consolidation approved
by the Company’s stockholders in which securities possessing more than fifty
percent (50%) of the total combined voting power of the Company’s outstanding
securities are transferred to a person or persons different from the persons
holding those securities immediately prior to such transaction;

      

      (ii) any stockholder-approved sale,
transfer or other disposition of all or substantially all of the Company’s
assets in a complete liquidation or dissolution of the Company; or

      

      (iii) the acquisition, directly or
indirectly, by any person or related group of persons (other than the Company or
a person that directly or indirectly controls, is controlled by or is under
common control with, the Company) of beneficial ownership (within the meaning of
Rule 13d-3 of the Securities and Exchange Act of 1934, as amended) of securities
possessing more than fifty percent (50%) of the total combined voting power of
the Company’s outstanding securities pursuant to a tender or exchange offer made
directly to the Company’s stockholders;

      

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      

      
        	
                4)

              	
                Termination
      Certificate.  Upon the termination of Employee's
      engagement under this Agreement, for any reason whatsoever, Employee
      agrees to sign, date and deliver to Employer a "Termination Certificate"
      in the form of Exhibit A, and
      to deliver and take all other action necessary to transfer promptly to
      Employer all records, materials, equipment, drawings, documents and data
      of any nature pertaining to any invention, trade secret or confidential
      information of Employer or to Employee's engagement, and Employee will not
      take with Employee any documents containing or pertaining to any
      confidential information, knowledge or data of Employer that Employee may
      produce or obtain during the course of Employee's engagement under this
      Agreement. This Paragraph 4 shall survive indefinitely any termination of
      this Agreement or Employee's
employment.

              

      

      

      
        	
                5)

              	
                Nondisclosure.
      Employee agrees to keep confidential and not to disclose or make any use
      of (except for the benefit of Employer), at any time, either during or
      after Employee’s engagement under this Agreement, any trade secrets,
      confidential information, knowledge, data or other information of Employer
      relating to products, processes, know-how, designs, formulas, test data,
      customer lists, business plans, marketing plans and strategies, pricing
      strategies or other subject matters pertaining to any business or future
      business of Employer or any of its clients, customers, Employees,
      licensees or affiliates, which Employee may produce, obtain or otherwise
      acquire or become aware of during the course of Employee’s engagement
      under this Agreement. Employee further agrees not to deliver, reproduce or
      in any way allow any such trade secrets, confidential information,
      knowledge, data or other information, or any documentation relating
      thereto, to be delivered or used by any third party without specific
      direction or consent of a duly authorized officer of Employer. This
      Paragraph 5 shall survive indefinitely any termination of this Agreement
      or Employee's employment.

              

      

      

      
        	
                6)

              	
                Work for Hire;
      Ownership of Intellectual Property. Employee understands and agrees
      that all of Employee’s work and the results there arising out of or in
      connection with the work performed for Employer, whether made solely by
      Employee or jointly with others, during the period of Employee's
      employment by Employer, that relate in any manner to the actual or
      anticipated business, work, activities, research or development of
      Employer or its affiliates, or that result from or are suggested by any
      task assigned to Employee or any activity performed by Employee on behalf
      of Employer, shall be the sole property of the Employer, and, to the
      extent necessary to ensure that all such property shall belong solely to
      the Employer, Employee by Employee’s execution of this Agreement transfers
      to the Employer any and all right and interest Employee may possess in
      such intellectual property and other assets created in connection with
      Employee’s employment by Employer, and that may be acquired by Employee
      during the term of this Agreement from any source that relates, directly
      or indirectly, to Employer's business and future
      business.  Employee also agrees to take any and all actions
      requested by Employer to preserve Employer's rights with respect to any of
      the foregoing. This Paragraph 6 shall survive indefinitely any termination
      of this Agreement or Employee's
employment.

              

      

      

      
        	
                7)

              	
                No Partnership; Not
      Assignable by Employee. This Agreement is between Employee and
      Employer, as at-will employer, and shall not form or be deemed to form a
      partnership or joint venture. Employer’s rights, benefits, duties and
      obligations under this Agreement shall inure to its successors and
      assigns. Employee's rights, obligations and duties under this Agreement
      are personal to Employee and may not be
  assigned.

              

      

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      
        	
                8)

              	
                Trade Secrets of
      Others: Employee represents that Employee’s performance of all the
      terms of this Agreement and as the Employer’s Employee does not, and will
      not breach any agreement to keep in confidence any proprietary
      information, knowledge or data acquired by Employee in confidence or in
      trust before Employee’s engagement under this Agreement, and Employee will
      not disclose to Employer or induce Employer to use any confidential or
      proprietary information or material belonging to any other person or
      entity. Employee agrees not to enter into any agreement, either written or
      oral, in conflict with this Paragraph
8.

              

      

      

      
        	
                9)

              	
                Employee's
      Representations and Warranties. Employee represents, promises,
      understands and agrees that: (i) Employee is free to enter into this
      Agreement; (ii) Employee is not obligated or a party to any engagement,
      commitment or agreement with any person or entity that will, does, or
      could conflict with or interfere with Employee's full and faithful
      performance of this Agreement, nor does Employee
      have any commitment, engagement or agreement of any kind requiring
      Employee to render services or preventing or restricting Employee from
      rendering services or respecting the disposition of any rights or assets
      that Employee has or may hereafter acquire or create in connection with
      his/her employment with Employer; (iii) other than as required by law, or
      specifically allowed by law, Employee shall not at any time divulge,
      directly or indirectly, any of the terms of this Agreement to any person
      or entity other than Employee’s spouse or legal counsel or financial
      advisor; (iv) Employee shall not use any material or content of any kind
      in connection with Employer's products, software or website that is
      copyrighted or owned or licensed by a party other than Employer or that
      would or could infringe the rights of any other party; (v) Employee shall
      not use in the course of Employee’s performance under this Agreement, and
      shall not disclose to Employer, any confidential information belonging, in
      part or in whole, to any third party; (vi) EMPLOYEE UNDERSTANDS ALL OF THE
      TERMS OF THIS “AT WILL” EMPLOYMENT AGREEMENT, AND HAS REVIEWED THIS
      AGREEMENT IN DETAIL BEFORE AGREEING TO EACH AND ALL OF THE PROVISIONS; was
      allowed adequate opportunity to seek legal counsel before signing this
      Agreement; and (vii) no statement, representation, promise, or inducement
      has been made to Employee, in connection with the terms of this Agreement,
      except as expressly set forth in this
Agreement.

              

      

      

      
        	
                10)

              	
                Governing Law;
      Arbitration.  This Agreement shall be subject to and
      construed in accordance with the laws of the State of California, and
      without giving effect to conflicts of laws principles. In the event of any
      dispute in connection with the Services, Employee’s employment or
      termination thereof, relationship with the Employer, or this Agreement (or
      any other agreement) that cannot be resolved privately between the
      parties, resolution shall be through binding arbitration conducted in the
      County of San Diego, California.  Any arbitration shall be
      conducted in accordance with the provisions of the California Code of
      Civil Procedure, Part 3, Title 9 (commencing with Section 1280). The
      parties may obtain discovery in aid of the arbitration in accordance with
      California Code of Civil Procedure Section 1283.05. Nothing contained in
      this paragraph 10 shall limit either party’s right to seek temporary
      restraining orders or injunctive or other equitable relief in the Superior
      Court of California in connection with this Agreement. EMPLOYEE
      UNDERSTANDS THAT BY AGREEING TO ARBITRATION IN THE EVENT OF A DISPUTE
      BETWEEN EMPLOYER AND EMPLOYEE, EMPLOYEE AND EMPLOYER BOTH EXPRESSLY WAIVE
      THEIR RIGHT TO REQUEST A TRIAL BY JURY IN A COURT OF LAW. This Paragraph
      10 shall survive indefinitely any termination of this Agreement or
      Employee's employment.

              

      

       

      
        	
                11)

              	
                Entire Agreement;
      Modification; Waiver; Construction Generally. This Agreement
      constitutes the entire agreement between Employer and Employee relating to
      Employee’s employment with Employer, and supersedes all previous
      agreements, whether oral or written. No provision of this Agreement shall
      be construed strictly against any party, including, without limitation,
      the drafter. Neither this Agreement nor any provision may be amended,
      waived or modified in any way other than by a writing executed by the
      party against whom such amendment, waiver or modification would be
      enforced. No failure to exercise, and no delay in exercising with respect
      to any right shall operate as a waiver. A waiver by any party of a breach
      of any provision shall not be deemed a waiver of any later
      breach.  The exercise of any right or remedy by either party (or
      by its successor), whether pursuant to this Agreement, to any other
      agreement, or to law, shall not preclude or waive its right to exercise
      any or all other rights and remedies. The headings or titles of the
      several paragraphs of this Agreement are inserted solely for convenience
      and shall not be used in the construction of any provision of this
      Agreement. Words in the singular shall include the plural, and vice versa.
      All references to the masculine or feminine shall mean all
      genders.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

      
        	
                12)

              	
                Assignment.
      Employee acknowledges and agrees that this Agreement, and Employee’s
      rights and obligations hereunder, may be assigned by Employer to any
      affiliate, subsidiary or parent company of
  Employer.

              

      

      

      
        Each of
the parties has set forth Employee’s, Employer’s or its signature as of the
first date set forth above.

         

      

       

      EMPLOYER:

      

      St.
Bernard Software, a Delaware corporation

      

      

      
        	
                Dated:  September
      22, 2008

              
	 
      
	
                /s/
      Vincent A. Rossi 

                  
      

              
	
                Vincent
      A. Rossi

              
	
                Chief
      Executive Officer

              

      

      
 

      EMPLOYEE:

      

      

      
        	
                Dated:  September
      22, 2008

              
	 
      
	
                /s/
      Steve Yin 

                  
      

              
	
                Steve
      Yin

              
	
                Vice
      President of Sales and Marketing

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

      EXHIBIT A

      

      TERMINATION
CERTIFICATE

      

      

      This is
to certify that undersigned does not have in the undersigned’s possession, nor
has undersigned failed to return, any customer information, records, files,
programs, documents, data, specifications, drawings, blueprints, reproductions,
sketches, notes, reports, proposals, or copies of them, or other documents or
materials, equipment, or other property or asset belonging to St. Bernard
Software (“Employer”), its successors and assigns.

      

      Undersigned
further certifies that undersigned has fully complied with, and will continue to
comply with, all the terms of the Employment Agreement dated as of
August    , 2008
between Employer and the undersigned (the “Agreement").

      

      Undersigned
further agrees that, in compliance with the Agreement, undersigned will preserve
as confidential any and all trade secrets, confidential information, knowledge,
data or other information of Employer relating to products, processes, know-how,
designs, formulas, test data, customer lists, business plans, marketing plans
and strategies, pricing strategies or other subject matters pertaining to any
business of Employer or any of its clients, customers, Employees, licensees or
affiliates, that Employee produced, obtained or otherwise acquired or became
aware of during the course of Employee’s engagement under the
Agreement.

      

      

      EMPLOYEE:

      

      

      

      
        
          

        

      

      Steve
Yin

      

      

      

      Date:

      
        

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

      

      EXHIBIT
B

      

      SEVERANCE
AGREEMENT

      AND
GENERAL RELEASE OF ALL CLAIMS

      

      

      This Severance Agreement and General
Release of All Claims (“Agreement”) is entered into between Steve Yin
(“Employee”) and St. Bernard Software, and all related holding, parent or
subsidiary entities and their affiliates, directors, officers, representatives,
agents, principals, partners and employees, stockholders, predecessors and
successors and/or assigns, insurers, and attorneys (all collectively referred to
as “Employer”).

      

      1.  Termination of
Employment.  Employee’s employment with Employer is terminated
effective           (“
the termination date”).

      

      2.  Severance.  In
consideration of and in return for the promises contained in this Agreement, and
as full and final compensation to Employee for all services as an
employee:

      

      a.
Employee shall receive from Employer, with appropriate deductions and
withholdings, severance as described in the employment agreement, payable
commencing on the termination date, in accordance with Employer regular payroll
practices, in addition to all accrued and unused wages and vacation pay through
the termination date;

      

      b.
Employee will continue on Employer’s medical plan for 6 months after the
termination date. Employee shall have the right to continue his/her medical and
dental insurance, at Employee’s sole expense, pursuant to the provisions of the
Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") provided,
however, that Employee timely elects COBRA continuation.  The COBRA
period shall be deemed to have commenced on the first of the month following the
6 month severance period that starts after the date of termination;

      

      c.
Employee acknowledges and agrees that the severance provided for in this
Agreement is due under his/her employment contract only if he signs this
Agreement; and

      

      e.
Employer warrants and Employee acknowledges that the agreements described under
this Paragraph 2 constitute full payment of any and all claims of every nature
and kind arising out of or relating in any way to Employee’s employment by
Employer or the termination thereof, benefits owed, or any other claims as
outlined below.

      

      3.  Release.  In
consideration of the above described payment, and for other good and valuable
consideration, Employee agrees that employment with Employer has terminated as
of the termination date, and that Employee has received full payment of all
wages, vacation accrued but not used, and any and all other sums due as a result
of such employment by Employer.  In further consideration of and in
return for the promises and covenants undertaken herein, Employee does hereby
unconditionally, irrevocably and absolutely release and discharge Employer and
all related holding, parent or subsidiary entities and their affiliates,
directors, officers, representatives, agents, principals, partners and
employees, stockholders, predecessors and successors and/or assigns, insurers,
and attorneys from any and all liability, claims, demands, causes of action, or
suits of any type, whether in law and/or in equity, known or unknown, related
directly or indirectly or in any way connected with any transaction, affairs or
occurrences between them to date, including, but not limited to, Employee’s
employment with Employer and the termination of said Employment.  This
Agreement shall include but not be limited to a release of claims arising under
any state or federal statute or common law regulating or affecting employment,
including Title VII of the Civil Rights Act of 1964, the Americans with
Disabilities Act, the Equal Pay Act, Age Discrimination in Employment Act, the
Fair Labor Standards Act, federal and state wage and hour laws including,
without limitation, the California Labor Code, California Government Code
Sections 12940 et seq., any applicable California Industrial Wage Orders, all as
amended, all claims for breach of contract, employment discrimination, sexual
harassment, wages, severance, overtime compensation, vacation, torts, fraud,
and/or claims any other local, state or federal law, rule, or regulation
relating to or affecting Employee’s employment by Employer, except any claim for
unemployment insurance or worker’s compensation.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      4.  Claims.  In
further consideration of the above described payments and benefits, and for
other good and valuable consideration, Employee irrevocably and absolutely
agrees that he will not prosecute nor allow to be prosecuted on his behalf in
any administrative agency, whether federal or state, or in any court, whether
federal or state, any claim or demand of any type related to the matters
released above.  It is the intention of the parties that, with the
execution of this Agreement, Employer and all related holding, parent or
subsidiary entities and their affiliates, directors, officers, representatives,
agents, principals, partners and employees, stockholders, predecessors and
successors and/or assigns, insurers, and attorneys will be absolutely,
unconditionally and forever discharged of and from all obligations to or on
behalf of Employee related in any way to the matters
released.  Employee represents that he has not filed any complaint,
charges or lawsuits against Employer and all related holding, parent or
subsidiary corporations (including their affiliates, officers, directors, and
employees) with any governmental agency or any court.

      

      5.  Unknown
Claims.  Employee understands and agrees that this Agreement
extends to all claims of every nature, known or unknown, suspected or
unsuspected, past or present, and that any and all rights granted to Employee
under Section 1542 of the California Civil Code or any analogous federal law or
regulation are hereby expressly waived.  Section 1542
provides:

      

      “A
general release does not extend to claims which the creditor does not know of or
suspect to exist in his favor at the time of executing the release, which if
known by him must have materially affected his settlement with the
debtor.”

      

      Employee certifies that he has read
this release, the quoted Civil Code section and that he fully understands this
release.

      

      6.  Binding
Effect.  This Agreement and all promises and agreements set
forth in this Agreement shall be binding upon and shall inure to the benefit of
the respective parties, their legal successors, heirs, assigns, partners,
representatives, agents, attorneys, officers, directors and
shareholders.

      

      7.  Entire
Agreement.  Employee further declares and represents that no
promise or representation not contained in this Agreement has been made to him
and acknowledges and represents that this Agreement contains the entire
understanding between the parties and contains all terms and conditions
pertaining to the compromise and settlement of the subjects referenced in this
Agreement.   However, any Proprietary or Trade Secrets agreement
or any agreement regarding ownership of intellectual property by Employer
entered into previously shall remain in full force and
effect.  Employee further acknowledges that the terms of this
Agreement are contractual and not a mere recital.

      

      8.  Confidentiality.  Employee
acknowledges and agrees that the confidential nature of this Agreement is a
material inducement for Employer to enter into this
Agreement.  Employee agrees that the fact of, and the terms and
conditions of this Agreement, and any and all actions by the parties to this
Agreement, are confidential and shall not be disclosed, discussed or revealed by
Employee to any other person or entity except Employee’s spouse, domestic
partner, parent, attorney, financial advisor, or as required by
law.  Employee further agrees he will not make any statement or take
any action, directly or indirectly, that harms, or could harm, Employer’s
business interests, reputation, or good will.  EMPLOYEE SPECIFICALLY
AGREES NOT TO DISCLOSE THE TERMS OF THIS AGREEMENT TO OTHER CURRENT OR FORMER
EMPLOYEES OF EMPLOYER.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      9.  Confidential Information and
Trade Secrets.  Employee acknowledges that all confidential
materials, records and documents concerning Employer that have come into
Employee’s possession during his/her employment with Employer have been returned
to Employer.  Employee agrees not to disclose to any person or entity,
including any competitor of Employer and any future employer, any of Employer’s
trade secrets or other confidential information. Employee acknowledges all
Employer’s property obtained during the course of her employment with Employer
has been returned to Employer.  To the extent that Employee has
entered into any Confidentiality, Proprietary or Trade Secrets agreement or any
agreement regarding ownership of intellectual property of Employer, if such
Agreements provide greater protection to Employer than this Agreement, such
other Agreements shall take precedence over this Agreement.

      

      10.  Interpretation and
Severability.  The validity, interpretation, and performance of
this Agreement shall be construed and interpreted according to the laws of the
State of California.  This Agreement shall not be interpreted for or
against either party hereto on the ground that such party drafted or caused this
Agreement to be drafted.  If any provision of this Agreement, or part
thereof, is held invalid, void or voidable as against public policy or
otherwise, the invalidity shall not affect other provisions, or parts thereof,
which may be given effect without the invalid provision or part.  To
this extent, the provisions, and parts thereof, of this Agreement are declared
to be severable.

      

      11.  Arbitration of
Disputes.  Any dispute arising out of this Agreement or
Employee’s employment or termination shall be resolved by binding arbitration in
San Diego, California, and the findings of the arbitrator shall be final and
binding upon the parties.

      

      12.  Attorneys’
Fees.  In any dispute involving this Agreement, the prevailing
party shall be entitled to attorneys’ fees and costs.

       

      13.  IF EMPLOYEE IS UNDER THE AGE OF 40, A
SIGNATURE ON THIS RELEASE WILL BE IMMEDIATELY EFFECTIVE. IF EMPLOYEE IS OVER THE AGE OF 40,
THE FOLLOWING PROVISIONS APPLY:

       

       Age Discrimination in
Employment Act Release.

      

      A.   Employee
acknowledges Employer hereby has advised Employee in writing to discuss this
Agreement with an attorney before executing it and that Employer has provided
Employee at least twenty-one (21) days within which to review and consider this
Agreement before signing it.

      

      B.  The Parties acknowledge
and agree that Employee may revoke this Agreement for up to seven (7) calendar
days following the execution of this Agreement, and that it shall not become
effective or enforceable until the revocation period has expired.  The
Parties further acknowledge and agree that such a revocation must be in writing,
addressed to Harvey C. Berger, Esq., Pope, Berger & Williams, LLP, 550 West
“C” Street, Suite 1350, San Diego, CA 92101, and received not later than 5:00
p.m. on the seventh (7th) day following execution of this Agreement by
Employee.  If Employee revokes this Agreement, it shall not be
effective or enforceable and Employee will not receive the monies and benefits
described above.

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      C. 
If Employee does not revoke this Agreement in the time frame specified in this
section 20, the Agreement shall become effective at 12:01 a.m. on the eighth
(8th) day after it is signed by Employee.

      

      I have read the foregoing Severance
Agreement and General Agreement of All Claims and I accept and agree to the
provisions contained in this Agreement and execute it voluntarily and with full
understanding of its consequences.

      

      PLEASE
READ CAREFULLY, THIS AGREEMENT CONTAINS A GENERAL RELEASE OF ALL KNOWN AND
UNKNOWN CLAIMS.

      

      

      

      

      
        	
                Dated:            ,
      200   

              	
                                        

              
	 	Steve
      Yin

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EXHIBIT
C

      

      Sales
Variable (Commission) Compensation Plan

      

       

      Sales Variable (Commission)
Compensation

       

      Variable
(commission) compensation is a part of the total compensation package for all
sales employees.  The following describes the variable (commission)
compensation plan for the VP of World Wide Sales.  Variable
(commission) compensation will be measured, earned and paid Monthly based on the
following;

       

      
        
          
            
              	
                      2008
      Variable Compensation Plan

                    	 
	
                      Vice
      President – Worldwide Sales

                    	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	Q1	 	 	 	Q2	 	 	 	Q3	 	 	 	Q4	 	 	
                      FY08

                    	 
	
                      Operating
      Plan Billing Targets

                    	 	$	4,048,502	 	 	$	5,545,120	 	 	$	5,039,262	 	 	$	5,861,065	 	 	$	20,493,949	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Variable
      OTE

                    	 	$	28,750	 	 	$	28,750	 	 	$	28,750	 	 	$	28,750	 	 	$	115,000	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Commission
      Rate

                    	 	 	0.71%	 	 	 	0.52%	 	 	 	0.57%	 	 	 	0.49%	 	 	 	0.56%	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Minimum
      Hurdle for Quarter

                    	 	$	2,833,951	 	 	$	3,881,584	 	 	$	3,527,483	 	 	$	4,102,745	 	 	 	 	 
	
                      Or
      Cumulative Annual

                    	 	$	2,833,951	 	 	$	6,715,536	 	 	$	10,234,019	 	 	$	14,345,764	 	 	$	14,345,764	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Commission
      Rate for billing above annual plan

                    	 	 	 	 	 	 	2.00%	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Commission
      Rate for OEM billing not including GFI:

                    	 	 	 	 	 	 	5%	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
      	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	
                      Qualified
      Billings:

                    	 
      All
      net worldwide billings.	 	 	 	 	 	 	 	 	 	 	 

            

          

        

       

      
      

      Variable
(Commission) Compensation Payment

      
        	
                ●  

              	
                No
      variable (commission) compensation shall be paid if “net billing” is below
      70% of the operating plan.

              

      

      
        	
                ●  

              	
                Except
      for OEM sales, Variable (commission) compensation for “net billing” will
      be earned and paid monthly

              

      

      
        	
                ●  

              	
                For
      all OEM sales, variable (commission) compensation will be paid in the
      month that the OEM partner is
invoiced

              

      

      
        	
                ●  

              	
                Variable
      (commission) compensation for “net billings” that exceed the 2008 annual
      billing plan will be earned and paid in January
  2009

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