Document:

Exhibit 10.3

 

DATED 12 June 2017

 

	
(1)
    	
 
    	
BOULTBEE   BROOKS (READING) LIMITED
    
	
(2)
    	
 
    	
CARBON   BLACK U.K. LIMITED
    
	
(3)
    	
 
    	
CARBON   BLACK, INC.
    

 

 

LEASE

 

of Part 1st Floor (North), The White Building,

 

33 Kings Road, Reading RG1 3AR

 

 

 

12th Floor

6 New Street Square

London EC4A 3BF

DX 63 London Chancery Lane

Tel: 020 7659 7660

Fax: 020 7659 7661

 

 

CONTENTS

 

	
1
    	
DEFINITIONS AND INTERPRETATION
    	
7
    
	
2
    	
GRANT
    	
13
    
	
3
    	
ANCILLARY RIGHTS
    	
14
    
	
4
    	
RIGHTS EXCEPTED AND RESERVED
    	
15
    
	
5
    	
THIRD PARTY RIGHTS
    	
17
    
	
6
    	
PAYMENT OF RENTS
    	
17
    
	
7
    	
REVIEW OF THE ANNUAL RENT
    	
17
    
	
8
    	
INSURANCE
    	
20
    
	
9
    	
SERVICE CHARGE
    	
23
    
	
10
    	
OUTGOINGS
    	
25
    
	
11
    	
UTILITIES
    	
25
    
	
12
    	
COMMON ITEMS
    	
26
    
	
13
    	
VAT
    	
26
    
	
14
    	
DEFAULT INTEREST AND INTEREST
    	
26
    
	
15
    	
COSTS
    	
26
    
	
16
    	
NO DEDUCTION, COUNTERCLAIM OR   SET-OFF
    	
27
    
	
17
    	
ASSIGNMENTS
    	
27
    
	
18
    	
UNDERLETTINGS
    	
28
    
	
19
    	
SHARING OCCUPATION
    	
29
    
	
20
    	
CHARGING
    	
30
    
	
21
    	
PROHIBITION OF OTHER DEALINGS
    	
30
    
	
22
    	
REGISTRATION AND NOTIFICATION   OF DEALINGS AND OCCUPATION
    	
30
    
	
23
    	
CLOSURE OF THE REGISTERED TITLE   OF THIS LEASE
    	
31
    
	
24
    	
REPAIR
    	
31
    
	
25
    	
DECORATION
    	
31
    
	
26
    	
ALTERATIONS
    	
31
    
	
27
    	
SIGNS
    	
32
    

 

24 April 2017

 

 

	
28
    	
RETURNING THE PROPERTY TO THE   LANDLORD
    	
33
    
	
29
    	
USE
    	
33
    
	
30
    	
COMPLIANCE WITH LAWS
    	
34
    
	
31
    	
ENERGY PERFORMANCE CERTIFICATES
    	
35
    
	
32
    	
ENCROACHMENTS, OBSTRUCTIONS AND   ACQUISITION OF RIGHTS
    	
35
    
	
33
    	
BREACH OF REPAIR AND   MAINTENANCE OBLIGATION
    	
36
    
	
34
    	
INDEMNITY
    	
36
    
	
35
    	
LANDLORD’S COVENANT FOR QUIET   ENJOYMENT
    	
36
    
	
36
    	
GUARANTEE AND INDEMNITY
    	
36
    
	
37
    	
FORFEITURE
    	
37
    
	
38
    	
LIABILITY
    	
37
    
	
39
    	
NO REPRESENTATION OR WARRANTY
    	
37
    
	
40
    	
NO RIGHT TO ENFORCE
    	
38
    
	
41
    	
NOTICES, CONSENTS AND APPROVALS
    	
38
    
	
42
    	
GOVERNING LAW AND JURISDICTION
    	
39
    
	
43
    	
CONTRACTUAL RIGHTS OF THIRD   PARTIES
    	
39
    
	
44
    	
TENANT’S OPTION TO BREAK
    	
39
    
	
SCHEDULE 1 SERVICES AND LANDLORD’S EXPENSES
    	
41
    
	
SCHEDULE 2 GUARANTEE AND INDEMNITY
    	
45
    

 

 

LEASE

 

Prescribed Clauses

 

LR1. Date of lease 12 June 2017

 

LR2. Title number(s)

 

LR2.1 Landlord’s title number(s)

 

BK396970.

 

LR2.2 Other title numbers

 

None.

 

LR3. Parties to this lease

 

Landlord

 

BOULTBEE BROOKS (READING) LIMITED incorporated and registered in England and Wales with company number 08800500 whose registered office is at 2nd Floor Broadway House, 32-35 Broad Street, Hereford HR4 9AR (Landlord).

 

Tenant

 

CARBON BLACK U.K. LIMITED incorporated and registered in England and Wales with company number 09352043 whose registered office is at Highlands House, Basingstoke Road, Spencers Wood, Reading, England RG7 1NT (Tenant).

 

Other parties

 

CARBON BLACK, INC. incorporated in Delaware with company number 3602986 (the registered agent’s address in Delaware is Corporation Trust Center 1209 Orange Street, Wilmington, DE 19801) and whose headquarters are at 1100 Winter Street, Waltham, Massachusetts 02451 and whose address for service in England is Carbon Black U.K. Limited c/o Vistra International Expansion Ltd., Highlands House, Basingstoke Road, Spencers Wood, Reading, Berkshire, RG7 1NT (Guarantor).

 

LR4. Property

 

In the case of a conflict between this clause and the remainder of this lease then, for the purposes of registration, this clause shall prevail.

 

See the definition of “Property” in clause 1.1.

 

4

 

LR5. Prescribed statements etc.

 

LR5.1 Statements prescribed under rules 179 (dispositions in favour of a charity), 180 (dispositions by a charity) or 196 (leases under the Leasehold Reform, Housing and Urban Development Act 1993) of the Land Registration Rules 2003.

 

None.

 

LR5.2 This lease is made under, or by reference to, provisions of:

 

None.

 

LR6. Term for which the Property is leased

 

The term as specified in this lease at clause 1.1 in the definition of “Contractual Term”.

 

LR7. Premium

 

None.

 

LR8. Prohibitions or restrictions on disposing of this lease

 

This lease contains a provision that prohibits or restricts dispositions.

 

LR9. Rights of acquisition etc.

 

LR9.1 Tenant’s contractual rights to renew this lease, to acquire the reversion or another lease of the Property, or to acquire an interest in other land

 

None.

 

LR9.2 Tenant’s covenant to (or offer to) surrender this lease

 

None.

 

LR9.3 Landlord’s contractual rights to acquire this lease

 

None.

 

LR10. Restrictive covenants given in this lease by the Landlord in respect of land other than the Property

 

None.

 

LR11. Easements

 

LR11.1 Easements granted by this lease for the benefit of the Property

 

See clause 3.

 

LR11.2 Easements granted or reserved by this lease over the Property for the benefit of other property

 

See clause 4.

 

5

 

LR12. Estate rentcharge burdening the Property

 

None.

 

LR13. Application for standard form of restriction

 

None.

 

LR14. Declaration of trust where there is more than one person comprising the Tenant

 

Not applicable.

 

6

 

1                                         DEFINITIONS AND INTERPRETATION

 

1.1                               Definitions

 

In this lease:

 

1.1.1                     Act of Insolvency means:

 

1.1.1.1                                   the taking of any step in connection with any voluntary arrangement or any other compromise or arrangement for the benefit of any creditors of the Tenant or any guarantor; or

 

1.1.1.2                                   the making of an administration order in relation to the Tenant or any guarantor; or

 

1.1.1.3                                   the appointment of an administrator, in any case in relation to the Tenant or any guarantor; or

 

1.1.1.4                                   the appointment of a receiver or manager or an administrative receiver in relation to any property or income of the Tenant or any guarantor; or

 

1.1.1.5                                   the commencement of a voluntary winding-up in respect of the Tenant or any guarantor, except a winding-up for the purpose of amalgamation or reconstruction of a solvent company; or

 

1.1.1.6                                   the making of a winding-up order in respect of the Tenant or any guarantor; or

 

1.1.1.7                                   the striking-off of the Tenant or any guarantor from the Register of Companies; or

 

1.1.1.8                                   the Tenant or any guarantor otherwise ceasing to exist (but excluding where the Tenant or any guarantor dies); or

 

1.1.1.9                                   the adjudication of bankruptcy or the making of a bankruptcy order against the Tenant or any guarantor.

 

Act of Insolvency includes any analogous proceedings or events that may be taken under the legislation of another jurisdiction in relation to a tenant or guarantor incorporated or domiciled in such relevant jurisdiction.

 

1.1.2                     Annual Rent means rent at an initial rate of £ 191,205 per annum and then as revised under this lease and any interim rent determined under the LTA 1954.

 

1.1.3                     Break Date means 11 June 2022.

 

1.1.4                     Building means The White Building, 33 Kings Road, Reading RG1 3AR as registered at the Land Registry under title number BK396970 and all Service Media on, over or under such land and Service Media outside such

 

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land but exclusively serving it (excluding in both cases, any Service Media which are not owned by the Landlord).

 

1.1.5                     Certificate means a statement certified by the Landlord or the Landlord’s surveyor or its accountant, which shows the Landlord’s Expenses, the Service Charge Estimate, the Service Charge and the Service Charge Balance, for the relevant Service Charge Year.

 

1.1.6                     Contractual Term means a term of 10 years beginning on and including 12 June 2017 and ending on and including 11 June 2027.

 

1.1.7                     CDM Regulations means the Construction (Design and Management) Regulations 2015.

 

1.1.8                     Default Interest Rate means three percentage points above the Interest Rate.

 

1.1.9                     Enactment means all Parliamentary and subordinate legislation (including all regulations and directives, schemes and rules) and bye-laws in force from time to time.

 

1.1.10              Inherent Defect means any defect in the Property or the Building which is attributable wholly or partially to defective design of, workmanship on, materials used in, or supervision or preparation of the construction of the Property or Building.

 

1.1.11              Insurance Rent means a fair proportion of the aggregate in each year of the gross cost of the premium before any discount or commission for the insurance of:

 

(a)                                 the Building for its full reinstatement cost (taking inflation of building costs into account) against loss or damage by or in consequence of the Insured Risks, including costs of demolition, site clearance, site protection and shoring-up, professionals’ and statutory fees and incidental expenses, the cost of any work which may be required under any law and VAT in respect of all those costs, fees and expenses,

 

(b)                                 loss of Annual Rent (having regard to the provisions for the review of the Annual Rent) for not less than three years,

 

(c)                                  (if the Landlord actually insures against loss of Service Charge) loss of Service Charge for not less than three years,

 

(d)                                 against public liability of the Landlord in connection with any matter relating to the Building, its occupation or use, and

 

(e)                                  any insurance premium tax payable on the above.

 

1.1.12              Insured Risks means fire, explosion, lightning, earthquake, storm, flood, bursting and overflowing of water tanks, apparatus or pipes, impact by aircraft and articles dropped from them, impact by vehicles, riot, civil

 

8

 

commotion, terrorism and any other risks against which the Landlord reasonably decides to insure against from time to time and Insured Risk means any one of the Insured Risks.

 

1.1.13              Interest Rate means interest at the base rate from time to time of HSBC Bank Plc, or if that base rate stops being used or published then at a comparable commercial rate reasonably determined by the Landlord.

 

1.1.14              Landlord’s Energy Management Costs means the costs of the Landlord of:

 

(a)                   acquiring allowances of any nature and paying all present and future taxes, duties, or assessments of any nature relating to the supply or consumption of energy, or relating to emissions consequential upon that supply or consumption (and whether those emissions are direct or indirect);

 

(b)                   monitoring the supply and consumption of energy and such emissions; and

 

(c)                    gathering and processing information relating to the supply and consumption of energy and to such emissions,

 

and in this definition “Landlord” means the group of undertakings of which the Landlord is a member for the purposes of such allowances or taxes;

 

1.1.15              Landlord’s Expenses has the meaning given in paragraph 2 of Schedule 1.

 

1.1.16              Lettable Unit means any part of the Building (other than the Property) which is let or is intended for letting on the basis of a lease similar in nature to this lease.

 

1.1.17              LTA 1954 means Landlord and Tenant Act 1954.

 

1.1.18              Permitted Use means as offices within Use Class B1(a) of the Town and Country Planning (Use Classes) Order 1987 as at the date this lease is granted.

 

1.1.19              Permitted Window Blinds means Waverly Blinds ShadeTech RBL-C Roller Blind System, 40mm/45mm diameter roller barrel, side chain operation with stainless steel bead chain in fabric Helioscreen Natte 2115 - 5% Basalt (or, in the event that such blinds are no longer available, such other blinds of similar appearance as the Landlord shall specify or approve, such approval not to be unreasonably withheld or delayed).

 

1.1.20              Plan 1, Plan 2 etc means the plans annexed to this lease and so labelled.

 

1.1.21              Property means Part 1st Floor (North), The White Building, 33 Kings Road, Reading RG1 3AR shown edged red on Plan 1 and bounded by and

 

9

 

including:

 

(a)                                 the surfaces of and the paint paper and other decorative or internal finishes applied to:

 

(i)                                     the interior of any external walls bounding those premises; and

 

(ii)                                  any structural pillars walls or columns within those premises;

 

(b)                                 the inner surface of the floor finishes and the paint paper and other finishes applied to the ceiling;

 

(c)                                  the inner half severed medially of the internal wall(s) dividing those premises from other premises in the Building;

 

(d)                                 the inside face of the external windows and window frames and inner glazing panes;

 

(e)                                  the doors and door frames and glass therein;

 

(f)                                   non-structural works within those premises;

 

(g)                                  all additions and improvements to those premises (whether originally fixed or fastened to or upon the said premises or otherwise) except any such fixtures installed by the Tenant that can be removed from those premises without defacing those premises;

 

(h)                                 all fixtures from time to time at those premises, but if those fixtures are Service Media, then only if they fall within paragraph (i) below;

 

(i)                                     Service Media within and from time to time exclusively serving those premises and which are owned by the Landlord (subject to paragraph (j) below);

 

but excluding:

 

(j)                                    the fire alarm system within those premises;

 

(k)                                 all tenant’s fixtures and fittings;

 

(l)                                     any Service Media within such premises but which do not serve such premises exclusively, or which are not owned by the Landlord;

 

(m)                             any structural parts of those premises or the Building; and

 

10

 

 

 

 

 

 

 

(n)                                 the external faces of the windows and window frames and external glazing panes.

 

1.1.22              Rent Commencement Date means 12 November 2017.

 

1.1.23              Rent Payment Dates means 25 March, 24 June, 29 September and 25 December.

 

1.1.24              Reservations means all of the rights excepted, reserved and granted to the Landlord by this lease.

 

1.1.25              Retained Parts means any part of the Building other than the Property and the Lettable Units.

 

1.1.26              Review Date means 12 June 2022.

 

1.1.27              Service Charge means a fair proportion of the total cost of the Landlord’s Expenses in relation to the relevant Service Charge Year.

 

1.1.28              Service Charge Balance means the shortfall, if any, between the Service Charge Estimate and the Service Charge.

 

1.1.29              Service Charge Estimate means the same fair proportion of the amount which the Landlord, or the Landlord’s surveyor or its accountant, reasonably estimates will be the total cost of the Landlord’s Expenses in any Service Charge Year.

 

1.1.30              Service Charge Year means the year from and including 1 January in each year or such other date which the Landlord chooses from time to time.

 

1.1.31              Service Media means the lifts and lift machinery and equipment and all media for the supply or removal of heat, electricity, gas, water, sewage, air conditioning, energy, telecommunications, data and all other services and utilities and all structures, machinery and equipment ancillary to those media and all fire alarms, sprinklers, smoke detectors, dry risers, security cameras and closed circuit television apparatus.

 

1.1.32              Services has the meaning given in paragraph 1 of Schedule 1.

 

1.1.33              Third Party Rights means all rights, covenants and restrictions affecting the Building including the matters referred to at the date of this lease in the property and charges registers of title number BK396970 and all other existing rights which belong to other property, or are enjoyed by other property over the Building or any land or Service Media.

 

1.1.34              Uninsured Damage means damage to the Property which is caused by an Uninsured Risk and which either destroys the Property (or any part of the Property) or renders the Property (or any part of the Property) unfit for beneficial use and occupation.

 

1.1.35              Uninsured Risk means any Insured Risk in respect of which the Landlord

 

11

 

does not insure (or in respect of which there is a partial exclusion to the extent that the partial exclusion applies) because at any time during the term insurance is not available in the London insurance market on reasonable terms.

 

1.1.36              Utilities means electricity, gas, water, foul water and surface drainage, heating, ventilation and air conditioning, smoke and fumes, signals, telecommunications, satellite and data communications and all other utilities.

 

1.1.37              VAT means value added tax chargeable under the VATA 1994 or any similar replacement or additional tax.

 

1.1.38              VATA 1994 means Value Added Tax Act 1994.

 

1.2                               Interpretation

 

In this lease:

 

1.3                               A reference to this lease, except a reference to the date of this lease or to the grant of the lease, is a reference to this deed and any deed, licence, consent, approval or other instrument supplemental to it.

 

1.4                               A reference to the Landlord includes a reference to the person entitled to the immediate reversion to this lease. A reference to the Tenant includes a reference to its successors in title and assigns. A reference to a guarantor is to any guarantor of the tenant covenants of this lease including a guarantor who has entered into an authorised guarantee agreement.

 

1.5                               In relation to any payment, a reference to a fair proportion is to a fair proportion of the total amount payable, determined conclusively (except as to questions of law) by the Landlord and where there are different elements to that sum a different proportion for each element may be determined on this basis.

 

1.6                               The expressions landlord covenant and tenant covenant each has the meaning given to it by the Landlord and Tenant (Covenants) Act 1995.

 

1.7                               Unless the context otherwise requires, a reference to the Property or the Building is to the whole and any part of it.

 

1.8                               A reference to the term is to the Contractual Term and statutory continuation of this lease.

 

1.9                               A reference to the end of the term is to the end of the term however it ends whether before or at or after the end of the Contractual Term.

 

1.10                        References to the consent of the Landlord are to the consent of the Landlord given in accordance with clause 41.5 and references to the approval of the Landlord are to the approval of the Landlord given in accordance with clause 41.6.

 

1.11                        A working day is any day which is not a Saturday, a Sunday, a bank holiday or a public holiday in England.

 

12

 

1.12                        Unless otherwise specified, a reference to a particular law is a reference to it as it is in force for the time being, taking account of any amendment, extension, application or re-enactment and includes any subordinate laws for the time being in force made under it and all orders, notices, codes of practice and guidance made under it.

 

1.13                        A reference to laws in general is to all local, national and directly applicable supranational laws in force for the time being, taking account of any amendment, extension, application or re-enactment and includes any subordinate laws for the time being in force made under them and all orders, notices, codes of practice and guidance made under them.

 

1.14                        Any obligation in this lease on the Tenant not to do something includes an obligation not to agree to or suffer that thing to be done and an obligation to use best endeavours to prevent that thing being done by another person.

 

1.15                        Unless the context otherwise requires, where the words include(s) or including are used in this lease, they are deemed to have the words “without limitation” following them.

 

1.16                        A person includes a corporate or unincorporated body.

 

1.17                        References to writing or written do not include faxes or email.

 

1.18                        Except where a contrary intention appears, a reference to a clause or schedule, is a reference to a clause of, or schedule to, this lease and a reference in a schedule to a paragraph is to a paragraph of that schedule.

 

1.19                        Clause, schedule and paragraph headings do not affect the interpretation of this lease.

 

2                                         GRANT

 

2.1                               At the request of the Guarantor, the Landlord lets with full title guarantee the Property to the Tenant for the Contractual Term.

 

2.2                               The grant is made together with the ancillary rights set out in clause 3, excepting and reserving to the Landlord the rights set out in clause 4, and subject to the Third Party Rights.

 

2.3                               The grant is made with the Tenant paying the following as rent to the Landlord:

 

2.3.1                     the Annual Rent and all VAT in respect of it;

 

2.3.2                     the Insurance Rent;

 

2.3.3                     the Service Charge;

 

2.3.4                     all interest payable under this lease; and

 

2.3.5                     all other sums due under this lease.

 

13

 

3                                         ANCILLARY RIGHTS

 

3.1                               Except as mentioned in clause 3.2, neither the grant of this lease nor anything in it confers any right over neighbouring property nor is to be taken to show that the Tenant may have any right over neighbouring property, and section 62 of the LPA 1925 does not apply to this lease.

 

3.2                               The Landlord grants the Tenant the following rights (the “Rights”) at all times subject to clause 3.6:

 

3.2.1                     the right to use the hallways, corridors, stairways, lifts and landings of the Retained Parts to enter and leave the Property and for such other purposes as the Landlord may permit from time to time;

 

3.2.2                     the right to use the Service Media forming part of the Building at the date of this Lease which serve, but do not form part of, the Property;

 

3.2.3                     the right to enter adjoining parts of the Building in order to carry out any repairs to the Property, but only if those repairs cannot reasonably be carried out without such entry, and subject to the Tenant complying with clause 3.7;

 

3.2.4                     the right to access the service risers, riser cupboards and incoming service cupboards within other parts of the Building including other Lettable Units for the purpose of installing, maintaining, repairing or renewing Service Media which serve the Property, but only if the same cannot reasonably be carried out without such entry, and subject to the Tenant complying with clause 3.7;

 

3.2.5                     the right to have the Tenant’s name displayed on the Landlord’s totem board outside the Building, the indicator board in the entrance lobby of the Building and in the lift lobby on the floor on which the Property is located, in the “house style” and size decided by the Landlord (acting reasonably);

 

3.2.6                     the right to use the roof terrace of the Building free of charge at times permitted in the Landlord’s discretion (and subject to the Landlord’s booking system for private functions on a first come first served basis, when the roof terrace may be closed to the Tenant) such right being made available for all tenants of the Building;

 

3.2.7                     the right to use the showers in the basement and the WCs on the floor on which the Property is located;

 

3.2.8                     the right to park cars in six parking spaces within the car park at the Building as are allocated by the Landlord to the Property from time to time, the spaces allocated at the date of this lease being as shown edged red on Plan 2;

 

3.2.9                     the right to park cycles in cycle storage areas designated by the Landlord from time to time, on a first come first served basis;

 

3.2.10              the right of support and protection from the rest of the Building to the extent

 

14

 

existing at the date of this Lease;

 

3.2.11              the right to use and dispose of all the Tenant’s refuse generated in the Property in the normal course of office use in the bins located in the basement of the Building or as otherwise provided by the Landlord (and subject to any requirements of the local authority), it being the responsibility of the Tenant to deliver all such refuse to such bins in sealed sacks.

 

3.3                               The Rights (save for those set in clause 3.2.8) are granted in common with the Landlord, any other tenants and lawful occupiers of the Building and any other person authorised by the Landlord.

 

3.4                               The Tenant shall exercise the Rights only in connection with its use of the Property for the Permitted Use and in accordance with any reasonable regulations made by the Landlord from time to time.

 

3.5                               The Tenant shall comply with all laws relating to its exercise of the Rights.

 

3.6                               The Rights may be interrupted or varied for the purposes of any works of maintenance, repair, alteration or the replacement of any land, building, lifts or lift equipment, or Service Media in connection with which the rights are exercised, provided that the Landlord will minimise interruption and disruption and if possible schedule maintenance with a view to this and shall provide alternative parking spaces if disruption occurs in the car park.

 

3.7                               The rights granted by clauses 3.2.3 and 3.2.4 are granted subject to the conditions that the Tenant may, except in cases of emergency, only exercise that right after having given reasonable prior written notice to the occupier of the relevant other property and the Landlord, and on the conditions that:

 

3.7.1                     it is exercised in a manner which causes as little inconvenience as reasonably practicable to the occupier of the other property; and

 

3.7.2                     the person exercising that right shall promptly make good any damage caused to that other property and to any items belonging to the Landlord, the tenant or the occupier of the other property which are at the other property, and will indemnify the Landlord against any losses or claims resulting from the exercise of that right,

 

and the Tenant shall ensure that the person exercising that right complies with the terms of this clause 3.7.

 

4                                         RIGHTS EXCEPTED AND RESERVED

 

4.1                               The following rights are excepted and reserved from this lease and regranted to the Landlord by the Tenant (the “Reservations”):

 

4.1.1                     to build, or carry out works, or permit others to do so, to any other part of the Building or on any adjoining or neighbouring property (whether or not belonging to the Landlord), or to build into any of the boundary walls, foundations or roofs of the Property, even if such building or works lessen

 

15

 

the access of light or air to the Property or cause any nuisance, damage or inconvenience to the Tenant or other occupier of the Property;

 

4.1.2                     to inspect, connect into, repair and replace any Service Media in, on, under or over the Property, but which do not form part of the Property and construct Service Media at any time during the term, on, over or under the Property;

 

4.1.3                     acting reasonably, to attach signs and notices, scaffolding or other equipment to or place them on the Property;

 

4.1.4                     of support and protection from the Property for the rest of the Building;

 

4.1.5                     for the occupier of adjoining property at the Building to enter the Property for the same purposes and in the same circumstances as the Tenant may enter adjoining parts of the Building;

 

4.1.6                     to enter the Property in order to access the fire alarm system; and

 

4.1.7                     to enter the Property to exercise any other right reserved and regranted to the Landlord by this Lease, or in connection with performing the Services, or for any other reasonable purpose connected with this Lease or with the Landlord’s interest in the Property, the Building or any adjoining property of the Landlord;

 

notwithstanding that the exercise of any of the Reservations or the works carried out under them result in a reduction in the flow of light or air to the Property or loss of amenity for the Property.

 

4.2                               The Reservations may be exercised by the Landlord and by anyone else who is or becomes entitled to exercise them, and by anyone authorised by the Landlord or any superior landlord.

 

4.3                               The Tenant shall allow all those entitled to exercise any right to enter the Property, to do so with their workers, contractors, agents and professional advisors, and to enter the Property at any reasonable time (whether or not during usual business hours) and, except in the case of an emergency, after having given reasonable notice (which need not be in writing) to the Tenant.

 

4.4                               No party exercising any of the Reservations, nor its workers, contractors, agents and professional advisors, shall be liable to the Tenant or to any undertenant or other occupier of or person at the Property for any loss, damage, injury, nuisance or inconvenience arising by reason of its exercising any of those Reservations except for:

 

4.4.1                     physical damage to the Property; or

 

4.4.2                     any loss, damage, injury, nuisance or inconvenience in relation to which the law prevents the Landlord from excluding liability.

 

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5                                         THIRD PARTY RIGHTS

 

5.1                               The Tenant shall comply with all obligations on the Landlord relating to the Third Party Rights (insofar as those obligations relate to the Property) and shall not do anything (even if otherwise permitted by this lease) that may interfere with any Third Party Right.

 

5.2                               The Tenant shall allow the Landlord and any other person authorised by the terms of the Third Party Right to enter the Property in accordance with its terms.

 

6                                         PAYMENT OF RENTS

 

6.1                               The Tenant shall pay the Annual Rent and any VAT in respect of it by four equal instalments in advance on or before the Rent Payment Dates. The payments shall be made by banker’s standing order or direct debit or by any other method that the Landlord requires at any time by giving notice to the Tenant.

 

6.2                               The first instalment of the Annual Rent and any VAT in respect of it shall be made on the Rent Commencement Date and shall be the proportion, calculated on a daily basis, in respect of the period from the Rent Commencement Date until the day before the next Rent Payment Date.

 

6.3                               The Tenant shall pay to the Landlord the Service Charge Estimate and any VAT payable on it in four equal instalments in advance on or before the Rent Payment Dates, and shall pay the Service Charge Balance and any VAT on it within 14 days following demand (whether such demand is made and received before or after the end of the Term).

 

6.4                               The Tenant shall pay the first instalment of the Service Charge Estimate and any VAT due on it to the Landlord on the date of this lease, and the first instalment is to be a proportionate amount for the period from and including the date of this lease until the next quarter day.

 

7                                         REVIEW OF THE ANNUAL RENT

 

7.1                               In this clause the President is the President for the time being of the Royal Institution of Chartered Surveyors or a person acting on his behalf, and the Surveyor is the independent valuer appointed under clause 7.7.

 

7.2                               The amount of Annual Rent shall be reviewed on the Review Date to equal the greater of:

 

7.2.1                     the Annual Rent payable immediately before the Review Date (or which would then be payable but for any abatement or suspension of the Annual Rent or restriction on the right to collect it); and

 

7.2.2                     the open market rent agreed or determined under this clause.

 

7.3                               The open market rent may be agreed between the Landlord and the Tenant at any time before it is determined by the Surveyor.

 

7.4                               If the open market rent is determined by the Surveyor, it shall be the amount that the

 

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Surveyor determines is the annual open market rent (exclusive of any VAT) at which the Property could reasonably be expected to be let:

 

7.4.1                     in the open market;

 

7.4.2                     at the Review Date;

 

7.4.3                     on the assumptions listed in clause 7.5; and

 

7.4.4                     disregarding the matters listed in clause 7.6.

 

7.5                               The assumptions are:

 

7.5.1                     the Property is available to let in the open market:

 

7.5.1.1                         by a willing landlord to a willing tenant (which may be the Tenant);

 

7.5.1.2                         as a whole;

 

7.5.1.3                         with vacant possession;

 

7.5.1.4                         without a fine or a premium;

 

7.5.1.5                         for a term of five years commencing on the relevant Review Date; and

 

7.5.1.6                         otherwise on the terms of this lease other than:

 

7.5.1.6.1                         the amount of the Annual Rent;

 

7.5.1.6.2                         the provisions for review of the Annual Rent; and

 

7.5.1.6.3                         the option to terminate this lease contained in clause 44;

 

7.5.2                     the willing tenant has had the benefit of any rent-free or other concession or contribution which would be offered in the open market at the Review Date in relation only to fitting out works at the Property;

 

7.5.3                     the Property may lawfully be used, and is in a physical state to enable it to be lawfully used, by the willing tenant (or any potential undertenant or assignee of the willing tenant) for any purpose permitted by this lease;

 

7.5.4                     the Landlord and the Tenant have fully complied with their obligations in this lease (save to the extent that the Landlord is in wilful and persistent breach);

 

7.5.5                     the Property and the Building, and any means of access to it or any Service Media serving the Property, are in good and substantial repair and condition, and if destroyed or damaged, that they have been fully reinstated;

 

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7.5.6                     no work has been carried out on the Property or on any other part of the Building that has diminished the rental value of the Property;

 

7.5.7                     any fixtures, fittings, machinery or equipment supplied to the Property by the Landlord that have been removed by or at the request of the Tenant, or any undertenant or their respective predecessors in title (otherwise than to comply with any law) remain at the Property;

 

7.5.8                     the Property has a net internal area of 5463 square feet.

 

7.6                               The matters to be disregarded are:

 

7.6.1                     any effect on rent of the fact that the Tenant or any authorised undertenant or other lawful occupier has been in occupation of the Property;

 

7.6.2                     any goodwill attached to the Property by reason of any business carried out there by the Tenant or by any authorised undertenant or by any of their predecessors in business;

 

7.6.3                     any effect on rent attributable to any physical improvement to the Property carried out before or after the date of this lease, by or at the expense of the Tenant or any authorised undertenant with all necessary consents, approvals and authorisations and not under an obligation to the Landlord (other than an obligation to comply with any law);

 

7.6.4                     any effect on rent of any obligation on the Tenant to fit out the Property or to reinstate the Property to the condition or design it was in before any alterations or improvements were carried out; and

 

7.6.5                     any statutory restriction on rents or the right to recover them.

 

7.7                               The Surveyor shall be an independent valuer who is a Member or Fellow of the Royal Institution of Chartered Surveyors. The Landlord and the Tenant may, by agreement, jointly appoint the Surveyor at any time before either of them applies to the President for the Surveyor to be appointed. Any application to the President may not be made earlier than three months before the Review Date.

 

7.8                               The Surveyor shall act as an arbitrator in accordance with the Arbitration Act 1996.

 

7.9                               If the Surveyor dies, or becomes unwilling or incapable of acting, or unreasonably delays in making any determination, then either the Landlord or the Tenant may apply to the President to discharge the Surveyor and clause 7.7 shall then apply in relation to the appointment of a replacement.

 

7.10                        The fees and expenses of the Surveyor and the cost of the Surveyor’s appointment and any counsel’s fees, or other fees, reasonably incurred by the Surveyor shall be payable by the Landlord and the Tenant in the proportions that the Surveyor directs (or if the Surveyor makes no direction, then equally).

 

7.11                        If the revised Annual Rent has not been agreed by the Landlord and the Tenant or determined by the Surveyor on or before the Review Date, the Annual Rent payable from the Review Date shall continue at the rate payable immediately before the

 

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Review Date. On the date the revised Annual Rent is agreed or the Surveyor’s determination is notified to the Landlord and the Tenant, the Tenant shall pay:

 

7.11.1              the shortfall (if any) between the amount that it has paid for the period from the Review Date until the Rent Payment Date following the date of agreement or notification of the revised Annual Rent and the amount that would have been payable had the revised Annual Rent been agreed or determined on or before the Review Date; and

 

7.11.2              interest at the Interest Rate on that shortfall calculated on a daily basis by reference to the Rent Payment Dates on which parts of the shortfall would have been payable if the revised Annual Rent had been agreed or determined on or before the Review Date and the date payment is received by the Landlord.

 

7.12                        Time shall not be of the essence for the purposes of this clause.

 

7.13                        If at any time there is a guarantor, the guarantor shall not have any right to participate in the review of the Annual Rent.

 

7.14                        As soon as practicable after the amount of the revised Annual Rent has been agreed or determined, a memorandum recording the amount shall be signed by or on behalf of the Landlord and the Tenant and endorsed on or attached to this lease and its counterpart. The Landlord and the Tenant shall each bear their own costs in connection with the memorandum.

 

8                                         INSURANCE

 

8.1                               Subject to clause 8.2, the Landlord covenants to insure with an insurance office or underwriters of repute:

 

8.1.1                     the Building for its full reinstatement cost (taking inflation of building costs into account) against loss or damage by or in consequence of the Insured Risks, including costs of demolition, site clearance, site protection and shoring-up, professionals’ and statutory fees and incidental expenses, the cost of any work which may be required under any law and VAT in respect of all those costs, fees and expenses;

 

8.1.2                     loss of Annual Rent (having regard to the provisions for the review of the Annual Rent) for not less than three years; and

 

8.1.3                     against public liability of the Landlord in connection with the Building.

 

The Landlord shall not be obliged to insure any part of the Property installed by the Tenant or any other occupier (other than the dividing wall between the Property and the remainder of the 1st floor).

 

The Landlord shall not be obliged to insure, but may insure, against loss of Service Charge.

 

8.2                               The Landlord’s obligation to insure is subject to:

 

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8.2.1                     any exclusions, limitations, excesses and conditions that may be imposed by the insurers; and

 

8.2.2                     insurance being available in the London insurance market on reasonable terms acceptable to the Landlord.

 

8.3                               The Tenant shall pay to the Landlord with 14 days of demand:

 

8.3.1                     the Insurance Rent;

 

8.3.2                     a fair proportion of any amount that is deducted or disallowed by the insurers under any excess provision in the insurance policy;

 

8.3.3                     a fair proportion of any costs that the Landlord incurs in obtaining a valuation of the Property for insurance purposes but not more than once per year; and

 

8.3.4                     the costs incurred by the Landlord in preparing and settling any insurance claim relating to the Property (or a fair proportion of such costs in relation to the Retained Parts or the Building as a whole) arising, in any case, from any insurance taken out by the Landlord.

 

8.4                               The Tenant shall:

 

8.4.1                     give the Landlord notice as soon as reasonably practicable if any matter occurs that the insurer or underwriter may treat as material in deciding whether or on what terms to insure or to continue to insure the Building;

 

8.4.2                     not do or omit to do anything as a result of which any policy of insurance of the Building or any neighbouring property may become void or voidable or otherwise prejudiced, or the payment of any policy money may be withheld, nor (unless the Tenant has previously notified the Landlord and has paid any increased or additional premium) anything as a result of which any increased or additional insurance premium may become payable;

 

8.4.3                     comply at all times with the requirements of the insurers relating to the Property so long as such requirements are notified to the Tenant;

 

8.4.4                     give the Landlord notice as soon as reasonably practicable of the occurrence of any damage or loss relating to the Property arising from an Insured Risk or of any other event that might affect any insurance policy relating to the Property;

 

8.4.5                     not effect any insurance of the Property, but if it becomes entitled to the benefit of any insurance proceeds in respect of the Property pay those proceeds or cause them to be paid to the Landlord; and

 

8.4.6                     pay the Landlord an amount equal to any insurance money that the insurers of the Building refuse to pay by reason of any act or omission of the Tenant or any undertenant, their workers, contractors or agents or any person at the Property with the actual or implied authority of any of them.

 

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8.5                               The Landlord shall, subject to obtaining all necessary planning and other consents (which the Landlord shall use reasonable endeavours to obtain), use all insurance money received (other than for loss of rent) to repair the damage for which the money has been received or (as the case may be) in rebuilding the Property, making up any shortfall in the insurance proceeds at its own cost save to the extent such shortfall results from breach of the Tenant’s obligations in this lease. The Landlord shall not be obliged to:

 

8.5.1                     provide accommodation identical in layout or design so long as accommodation reasonably equivalent to that previously at the Property is provided; or

 

8.5.2                     repair or rebuild the Property after a notice has been served under clause 8.8 or clause 8.9.

 

8.6                               If the Property is damaged or destroyed by an Insured Risk so as to be unfit for occupation and use or inaccessible then, unless the policy of insurance of the Property has been vitiated in whole or in part in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any other person on the Property with the actual or implied authority of any of them, payment of the Annual Rent (and, if the Landlord has actually insured against loss of Service Charge, then payment of the Service Charge as well), or a fair proportion thereof according to the nature and extent of the damage, shall be suspended until the Property has been reinstated and made fit for occupation and use and accessible, or until the expiry of the Landlord’s loss of rent insurance, if sooner.

 

8.7                               If the Tenant has paid any Annual Rent (and, if the Landlord has actually insured against loss of Service Charge, Service Charge) in advance, pursuant to this Lease, in respect of a period during which the Annual Rent (and, if applicable, Service Charge) is wholly or partially suspended as referred to in clause 8.6, the Landlord shall on whichever is the earlier of the end of the period in respect of which the sum was paid and the date upon which the Property is rendered fit for occupation and use and accessible, refund the same or a due proportion thereof to the Tenant according to the length of time and to the extent of the suspension pursuant to clause 8.6.

 

8.8                               If, following damage to or destruction of the Property, it is impossible or impractical to reinstate the Property, the Landlord may terminate this lease by giving notice to the Tenant. On giving notice this lease shall determine but this .shall be without prejudice to any right or remedy of any party in respect of any breach of the covenants of this lease by another party. Any proceeds of the insurance shall belong to the Landlord.

 

8.9                               Provided that the Tenant has complied with its obligations in this clause, the Tenant may terminate this lease by giving notice to the Landlord if, following damage or destruction by an Insured Risk, the Property has not been reinstated so as to be fit for occupation and use and accessible within three years after the date of damage or destruction. On giving this notice this Lease shall determine but this shall be without prejudice to any right or remedy of the Landlord in respect of any breach of the Tenant covenants of this lease. Any proceeds of the insurance shall belong to the Landlord.

 

8.10                        Uninsured Damage

 

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In the event of there being any Uninsured Damage then:

 

8.10.1              the payment of Annual Rent or a fair proportion of it according to the nature and extent of the Uninsured Damage shall be suspended until the Property has been reinstated and made fit for beneficial occupation and use and accessible;

 

8.10.2              for the purpose of clause 24.5 the Property shall be deemed to have been damaged or destroyed by an Insured Risk;

 

8.10.3              within twelve months after the date of the damage or destruction in question the Landlord shall give notice to the Tenant (the “Election Notice”) stating whether or not the Landlord proposes to rebuild or reinstate the Property;

 

8.10.4              If the Election Notice states that the Landlord proposes to rebuild or reinstate the Property then for all of the purposes of this lease the Uninsured Damage shall be deemed to have been damaged by an Insured Risk in respect of which the full insurance monies are recoverable by the Landlord; and

 

8.10.5              If the Election Notice states that the Landlord does not propose to rebuild or reinstate the Property or if no Election Notice is served strictly within the time period referred to in clause 8.10.3 then at any time after the expiry of the twelve month period referred to in clause 8.10.3 either party may determine this lease by serving upon the other not less than three months’ written notice. If this lease is determined under this clause then such determination shall be without prejudice to any right or remedy of either party against the other in respect of any breach of the covenants of this lease.

 

9                                         SERVICE CHARGE

 

9.1                               The Landlord shall provide the Services in a manner which the Landlord reasonably considers appropriate.

 

9.2                               The Landlord will have no liability for any failure or interruption of any Service:

 

9.2.1                     during the proper inspection, maintenance, repair or replacement of any relevant Service Media or equipment;

 

9.2.2                     resulting from a shortage of fuel, water, materials or labour;

 

9.2.3                     resulting from a breakdown of any equipment used in connection with the provision of the Services; or

 

9.2.4                     resulting from any act or omission of any employee, contractor or agent of the Landlord,

 

or for any other reason beyond the reasonable control of the Landlord.

 

9.3                               In the circumstances mentioned in clauses 9.2.1, 9.2.2, 9.2.3 and 9.2.4, the Landlord

 

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shall restore the relevant Service as soon as is reasonably practicable.

 

9.4                               The Landlord shall produce the Certificate to the Tenant as soon as practicable after the end of the Service Charge Year.

 

9.5                               The Landlord shall, but at the cost of the Tenant, allow the Tenant to inspect any invoices and receipts for the Services as long as the Tenant has given the Landlord reasonable written notice.

 

9.6                               If any Lettable Unit is unlet for any period, the Landlord shall bear a fair proportion of the Landlord’s Expenses in respect of that Lettable Unit.

 

9.7                               The Tenant shall pay the Service Charge Estimate, and any VAT on it and the Service Charge Balance, and any VAT on it as provided in clause 6.

 

9.8                               If the date of this Lease does not coincide with the beginning of a Service Charge Year, the Service Charge due from the Tenant for the part of that Service Charge Year which is within the Term will be reduced by the proportion which the part of that Service Charge Year which is before the beginning of the Term bears to one year, and the Service Charge Estimate for that part of that Service Charge Year will be adjusted accordingly.

 

9.9                               If the end of the Term does not coincide with the end of a Service Charge Year, the Service Charge due from the Tenant for the part of that Service Charge Year which is within the Term will be reduced by the proportion which the part of that Service Charge Year which is after the end of the Term bears to one year.

 

9.10                        The end of the Term shall not prejudice the Landlord’s entitlement to demand nor the Tenant’s liability to pay the Service Charge Balance for the Service Charge Year then current, apportioned in accordance with clause 9.9.

 

9.11                        The Landlord shall give the Tenant a statement of the Service Charge Estimate for each Service Charge Year. Until the statement has been given, the Service Charge Estimate shall be payable at the rate of the Service Charge Estimate for the previous Service Charge Year. Once the statement has been given, the remaining instalments of the Service Charge Estimate and any VAT on them will be adjusted so as to provide for payment of the whole Service Charge Estimate for that Service Charge Year to be paid during that year.

 

9.12                        If, during a Service Charge Year, the Landlord reasonably expects the cost of the Services to increase materially above its previous estimate of the cost of the Services for that Service Charge Year, the Landlord may revise its estimate of those costs and the Service Charge Estimate will be based on that revised estimate and the remaining instalments of the Service Charge Estimate adjusted so that the revised Service Charge Estimate will have been paid by the end of that Service Charge Year. The Landlord may revise the Service Charge Estimate more than once in a Service Charge Year.

 

9.13                        In the absence of manifest error, fraud and interference, the Certificate will be conclusive as to the amount of the Service Charge.

 

9.14                        The Landlord (acting reasonably) shall notify the Tenant in writing of any change in

 

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the date of the beginning of the Service Charge Year.

 

9.15                        If the Service Charge for any Service Charge Year is less than the Service Charge Estimate (as and if revised), the balance will be credited against the instalments of the Service Charge Estimate due from the Tenant in the following Service Charge Year, or, within 21 days of the end of the Term, set-off against any sums due from the Tenant to the Landlord with any balance being repaid to the Tenant.

 

9.16                        The Landlord’s Expenses for the Service Charge Year in which the beginning of the Term falls may include costs incurred by or provided for or on behalf of the Landlord before the beginning of the Term so far as they relate to Services which are to be provided during the Term. The Landlord’s Expenses in any Service Charge Year may include provisions for expenses to be made after the end of the Term so far as such provisions are proper and reasonable having regard to the Services which are provided during the Term.

 

10                                  OUTGOINGS

 

10.1                        The Tenant shall pay all present and future rates, taxes, levies, costs, charges and other impositions and outgoings of whatever nature assessed on, or reasonably attributable to the Property, its use and any works carried out there, other than:

 

10.1.1              any taxes payable by the Landlord in connection with any dealing with or disposition of the reversion to this lease; or

 

10.1.2              any taxes, other than VAT and insurance premium tax, payable by the Landlord by reason of the receipt of any of the rents due under this lease.

 

10.2                        If any rates, taxes or other impositions and outgoings are payable in respect of the Property together with other property, the Tenant shall pay a fair proportion of the amount payable.

 

10.3                        The Tenant shall not make any proposal to alter the rateable value of the Property or that value as it appears on any draft rating list, without the approval of the Landlord.

 

10.4                        If, after the end of the term, the Landlord loses rating relief (or any similar relief or exemption) because it has been allowed to the Tenant, then the Tenant shall pay the Landlord an amount equal to the relief or exemption that the Landlord has lost.

 

10.5                        The Tenant shall pay to the Landlord on demand that part of the Landlord’s Energy Management Costs which the Landlord reasonably attributes to the Property.

 

11                                  UTILITIES

 

11.1                        The Tenant shall pay all costs in connection with the supply and removal of Utilities to or from the Property.

 

11.2                        If any of those costs are payable in relation to the Property together with other property, the Tenant shall pay a fair proportion of all those costs.

 

11.3                        The Tenant shall comply with all laws and with any recommendations of the relevant suppliers relating to the use of those Utilities.

 

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12                                  COMMON ITEMS

 

12.1                        The Tenant shall pay the Landlord on demand a fair proportion of all costs payable for the maintenance, repair, lighting, cleaning and renewal (where beyond economic repair) of all Service Media, structures and other items used or capable of being used by the Property in common with other property.

 

12.2                        The Tenant shall comply with all reasonable regulations the Landlord may make from time to time in connection with the use of the Retained Parts or any of those Service Madia, structures or other items.

 

12.3                        The Tenant shall pay to the Landlord the cost of replacing any lost access control fobs.

 

13                                  VAT

 

13.1                        All sums payable by the Tenant are exclusive of any VAT that may be chargeable. The Tenant shall pay VAT in respect of all taxable supplies made to it in connection with this lease on the due date for making any payment or, if earlier, the date on which that supply is made for VAT purposes.

 

13.2                        Every obligation on the Tenant, under or in connection with this lease, to pay the Landlord or any other person any sum by way of a refund or indemnity, shall include an obligation to pay an amount equal to any VAT incurred on that sum by the Landlord or other person, except to the extent that the Landlord or other person obtains credit for such VAT under the Value Added Tax Act 1994.

 

14                                  DEFAULT INTEREST AND INTEREST

 

14.1                        If any Annual Rent or any other money payable under this lease has not been paid by the date it is due, whether it has been formally demanded or not, the Tenant shall pay the Landlord interest at the Default Interest Rate (both before and after any judgment) on that amount for the period from the due date to and including the date of payment.

 

14.2                        If the Landlord does not demand or accept any Annual Rent or other money due or tendered under this lease because the Landlord reasonably believes that the Tenant is in breach of any of the tenant covenants of this lease, then the Tenant shall, when that amount is accepted by the Landlord, also pay interest at the Interest Rate on that amount for the period from the date the amount (or each part of it) became due until the date it is accepted by the Landlord.

 

15                                  COSTS

 

15.1                        The Tenant shall pay the Landlord on a full indemnity basis on demand all proper costs and expenses (including solicitors’ agents’ and consultants’ fees) properly incurred (both during and after the end of the term) in connection with any of the following:

 

15.1.1              the enforcement of the tenant covenants of this lease;

 

15.1.2              the preparation and service of any notice in connection with this lease

 

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under section 146 or 147 of the Law of Property Act 1925 or in contemplation of any proceedings under either of those sections, notwithstanding that forfeiture is avoided otherwise than by relief granted by the court;

 

15.1.3              taking action to forfeit this lease, whether or not it is forfeited;

 

15.1.4              the preparation and service of any notice in connection with this lease under section 17 of the Landlord and Tenant (Covenants) Act 1995;

 

15.1.5              the preparation and service of a schedule of dilapidations in connection with this lease if served within if six months of the end of the Term; or

 

15.1.6              every application for consent or approval under this lease, even if the application is withdrawn or properly refused or if the proposal requiring consent does not proceed provided that all such costs are reasonably incurred.

 

15.2                        When the Tenant is obliged to pay or indemnify the Landlord against any solicitor or other professionals’ reasonable costs and expenses properly incurred (whether under this or any other clause of this lease) that obligation extends to those costs and expenses assessed on a full indemnity basis

 

16                                  NO DEDUCTION, COUNTERCLAIM OR SET-OFF

 

The Annual Rent, Service Charge, Insurance Rent and all other money due under this lease are to be paid by the Tenant or any guarantor (as the case may be) without deduction, counterclaim or set-off.

 

17                                  ASSIGNMENTS

 

17.1                        The Tenant shall not transfer or agree to transfer the whole of the Property without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

 

17.2                        The Tenant shall not transfer or agree to transfer any part (as opposed to the whole) of this lease.

 

17.3                        The Landlord and the Tenant agree that for the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may give its consent to a transfer of the whole of the Property subject to all or any of the following conditions:

 

17.3.1              a condition that if reasonably required by the Landlord to do so, the Tenant enters into an authorised guarantee agreement on terms reasonably required by the Landlord;

 

17.3.2              a condition that if reasonably required by the Landlord the proposed transferee procures:

 

17.3.2.1                  a person of standing reasonably acceptable to the Landlord enters into a guarantee and indemnity in the form set out in Schedule 2 or such other form as the Landlord may reasonably

 

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require; and/or

 

17.3.2.2                  any other security which the Landlord reasonably requires (which may include without limitation a rent deposit);

 

17.3.3              in respect of transfer to a group company, the proposed transferee, when assessed together with any proposed guarantor, must be of at least equivalent financial standing to the Tenant (together with any guarantor of the Tenant).

 

17.4                        The Landlord and the Tenant agree that for the purposes of section 19(1A) of the Landlord and Tenant Act 1927 the Landlord may refuse its consent to a transfer if:

 

17.4.1              any Annual Rent or Service Charge or Insurance Rent due under this lease is outstanding; or

 

17.4.2              in the reasonable opinion of the Landlord the proposed assignee is not of sufficient financial standing to enable it to comply with the Tenant’s covenants in this lease.

 

17.5                Nothing in this clause shall prevent the Landlord from giving consent subject to any other reasonable condition, nor from refusing consent to a transfer in any other circumstance where it is reasonable to do so.

 

18                                  UNDERLETTINGS

 

18.1                        The Tenant shall not underlet or agree to underlet the whole of the Property except in accordance with this clause nor without the consent of the Landlord, such consent not to be unreasonably withheld or delayed.

 

18.2                        The Tenant shall not underlet or agree to underlet any part of the Property (as opposed to the whole).

 

18.3                        The Tenant shall not underlet the whole of the Property:

 

18.3.1              together with any property or any right over property that is not included within this lease;

 

18.3.2              at a fine or premium or reverse premium; nor

 

18.3.3              allowing any rent free period to the undertenant that exceeds the period as is then usual in the open market in respect of such a letting.

 

18.4                        The Tenant shall not underlet the whole of the Property unless, before the underlease is granted, the Tenant has given the Landlord:

 

18.4.1              a certified copy of the notice served on the undertenant, as required by section 38A(3)(a) of the LTA 1954, applying to the tenancy to be created by the underlease; and

 

18.4.2              a certified copy of the declaration or statutory declaration made by the undertenant in accordance with the requirements of section 38A(3)(b) of the LTA 1954.

 

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18.5                        Any underletting by the Tenant shall be by deed and shall include:

 

18.5.1              an agreement between the Tenant and the undertenant that the provisions of sections 24 to 28 of the LTA 1954 are excluded from applying to the tenancy created by the underlease;

 

18.5.2              the reservation of a rent which is not less than the open market rental value of the Property at the date the Property is underlet and which is payable at the same times as the Annual Rent under this lease (but this shall not prevent an underlease providing for a rent-free period of a length permitted by clause 18.3.3);

 

18.5.3              provisions for the review of rent at the same dates and on the same basis as the review of rent in this lease, unless the term of the underlease does not extend beyond the Review Data;

 

18.5.4              a covenant by the undertenant, enforceable by and expressed to be enforceable by the Landlord (as superior landlord at the date of grant) and its successors in title in their own right, to observe and perform the tenant covenants in the underlease and any document that is supplemental or collateral to it and the tenant covenants in this lease, except the covenants to pay the rents reserved by this lease; and

 

18.5.5              provisions requiring the consent of the Landlord to be obtained in respect of any matter for which the consent of the Landlord is required under this lease,

 

and shall otherwise be consistent with and include tenant covenants no less onerous (other than as to the Annual Rent) than those in this lease and in a form approved by the Landlord, such approval not to be unreasonably withheld or delayed.

 

18.6                        In relation to any underlease granted by the Tenant, the Tenant shall:

 

18.6.1              not vary the terms of the underlease nor accept a surrender of the underlease without the consent of the Landlord, such consent not to be unreasonably withheld;

 

18.6.2              enforce the tenant covenants in the underlease and not waive any of them nor allow any reduction in the rent payable under the underlease; and

 

18.6.3              ensure that in relation to any rent review the revised rent is not agreed without the approval of the Landlord, such approval not to be unreasonably withheld.

 

19                                  SHARING OCCUPATION

 

The Tenant may share occupation of the Property with any company that is a member of the same group (within the meaning of section 42 of the LTA 1954) as the Tenant for as long as that company remains within that group and provided that no relationship of landlord and tenant is established by that arrangement. The Tenant shall give the Landlord written notice of any such sharing of occupation within 28 days of the occupation commencing.

 

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20                                  CHARGING

 

20.1                        The Tenant shall not charge the whole of this lease without the consent of the Landlord, such consent not to be unreasonably withheld save that no consent shall be required in respect of a charge of whole to a bank or other regulated financial institution in the ordinary course of the Tenant’s business.

 

20.2                        The Tenant shall not charge part only of this lease.

 

21                                  PROHIBITION OF OTHER DEALINGS

 

Except as expressly permitted by this lease, the Tenant shall not assign, underlet, charge, part with or share possession or occupation of this lease or the Property or hold the lease on trust for any person (except pending registration of a dealing permitted by this lease at the Land Registry or by reason only of joint legal ownership).

 

22                                  REGISTRATION AND NOTIFICATION OF DEALINGS AND OCCUPATION

 

22.1                        In this clause a Transaction is:

 

22.1.1              any dealing with this lease or the devolution or transmission of, or parting with possession of any interest in it; or

 

22.1.2              the creation of any underlease or other interest out of this lease, or out of any interest, underlease derived from it, and any dealing, devolution or transmission of, or parting with possession of any such interest or underlease; or

 

22.1.3              the making of any other arrangement for the occupation of the Property.

 

22.2                        In respect of every Transaction that is registrable at the Land Registry, the Tenant shall promptly following completion of the Transaction apply to register it where it is the Tenant’s responsibility to do so. The Tenant shall ensure that any requisitions raised by the Land Registry in connection with an application by the Tenant to register a Transaction are dealt with promptly and properly. Within one month of completion of the registration submitted by the Tenant, the Tenant shall send the Landlord official copies of its title.

 

22.3                        No later than one month after a Transaction the Tenant shall:

 

22.3.1              give the Landlord’s solicitors notice of the Transaction;

 

22.3.2              deliver one certified copy of any document effecting the Transaction to the Landlord’s solicitors; and

 

22.3.3              pay the Landlord’s solicitors such reasonable fee as the solicitors may require in respect of receipt of notice of transaction.

 

22.4                        If the Landlord so requests, the Tenant shall promptly supply the Landlord with full details of the occupiers of the Property and the terms upon which they occupy it.

 

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23                                  CLOSURE OF THE REGISTERED TITLE OF THIS LEASE

 

Within two weeks after the end of the term (and notwithstanding that the term has ended), the Tenant shall make an application to close the registered title of this lease and shall use reasonable endeavours that any requisitions raised by the Land Registry in connection with that application are dealt with promptly and properly. The Tenant shall keep the Landlord informed of the progress and completion of its application.

 

24                                  REPAIR

 

24.1                        The Tenant agrees with the Landlord to repair the Property and maintain and keep it in good and substantial repair and condition.

 

24.2                        The Tenant shall repair all plant and machinery within or forming part of the Property and keep them in good repair condition and working order.

 

24.3                        The Tenant shall replace any fixtures, fittings, plant or machinery (other than tenant’s fixtures and fittings) within or forming part of the Property and which are beyond economic repair and in need of replacement, with articles of similar kind and quality.

 

24.4                        The Tenant shall regularly clean the inside of the windows at the Property.

 

24.5                        The Tenant shall not be liable under this clause 24 to the extent that any disrepair has been caused by an Insured Risk, unless and to the extent that the policy of insurance of the Property has been vitiated or any insurance proceeds withheld in consequence of any act or omission of the Tenant, any undertenant or their respective workers, contractors or agents or any person on the Property with the actual or implied authority of any of them unless the Tenant has paid to the Landlord such irrecoverable amount.

 

25                                  DECORATION

 

25.1                        The Tenant shall decorate the inside of the Property as often as is reasonably necessary and also in the last year of the term.

 

25.2                        All decoration shall be carried out in a good and proper manner using good quality materials that are appropriate to the Property and the Permitted Use and shall include all appropriate preparatory work.

 

25.3                        All decoration carried out in the last year of the term shall also be carried out to the reasonable satisfaction of the Landlord and using materials, designs and colours reasonably approved by the Landlord.

 

26                                  ALTERATIONS

 

26.1                        The Tenant shall not make any external or structural alteration or addition to the Property and shall not make any opening in any boundary structure of the Property.

 

26.2                        The Tenant shall not install any Service Media on the exterior of the Property nor alter the route of any Service Media at the Property without the consent of the Landlord, such consent not to be unreasonably withheld.

 

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26.3                        The Tenant shall not make any internal, non-structural alteration to the Property without the consent of the Landlord (such consent not to be unreasonably withheld or delayed), save that the Tenant may make minor internal, non-structural alterations (such as internal demountable partitioning or IT cabling) without requiring the consent of the Landlord, but the Tenant shall notify the Landlord of its intention to carry out any such works at least four weeks before it intends to begin the works and shall in relation to any such works which it does carry out, carry them out:

 

26.3.1              and complete them in a good and workmanlike manner, with good quality materials fit for the purpose for which they are required and so as to be free from defects;

 

26.3.2              in accordance in all respects with all relevant legislation and the terms of any consents which are required for the works;

 

26.3.3              in a manner so as to cause as little inconvenience and annoyance as reasonably possible to the Landlord, any superior landlord and the other occupiers of the Building;

 

26.3.4              so as not to result in the Property, or any other part of the Building, becoming unsafe; and

 

26.3.5              at its sole risk,

 

and the Tenant shall make good to the Landlord’s satisfaction any damage arising out of, or incidental to, the carrying out or completion of the works and shall provide the Landlord with a set of as-built drawings as soon as reasonably practicable (and in any event within 4 weeks) after completion of the alterations or additions.

 

26.4                        The Tenant shall not install any window blinds or other window coverings save for the Permitted Window Blinds.

 

26.5                        The Tenant shall not carry out any alteration to the Property which would, or may reasonably be expected to, have an adverse effect on the asset rating in any energy performance certificate commissioned in respect of the Property or the Building or on any Service Media.

 

26.6                        Any alterations made which may affect the fire alarm system within the Property and the Building shall ensure that the Building’s fire alarm system’s integrity is maintained and any alterations required to the Building’s fire alarm system as a result of the Tenant’s alterations shall be at the Tenant’s cost.

 

26.7                        The Tenant shall not install any plant intended to be connected to any Service Media except under the Landlord’s supervision or, as the Landlord may require by using its nominated contractor.

 

27                                  SIGNS

 

27.1                        In this clause Signs include signs, fascia, placards, boards, posters and advertisements.

 

27.2                        The Tenant shall not attach any Signs to the exterior of the Property or display any

 

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inside the Property so as to be seen from the outside.

 

27.3                        Before the end of the term, the Tenant shall remove any Signs placed by it at the Property and shall make good any damage caused to the Property by that removal.

 

27.4                        The Tenant shall allow the Landlord to fix to and keep at the Property any sale or re-letting board as the Landlord reasonably requires.

 

28                                  RETURNING THE PROPERTY TO THE LANDLORD

 

28.1                        At the end of the term the Tenant shall return the Property to the Landlord with vacant possession in the repair and condition required by this lease and with any mechanical and electrical equipment within the demise having been properly serviced within the last six months prior to the end of the term.

 

28.2                        At the end of the term, unless and to the extent otherwise required by the Landlord (and where the term ends by effluxion of time if the Landlord does not require reinstatement it shall notify the Tenant by notice in writing prior to the last three months of the Term), the Tenant shall remove items it has fixed to the Property, remove any alterations it has made to the Property (whether made during the term or before the term pursuant to an agreement for lease) and make good any damage caused to the Property by that removal to the Landlord’s reasonable satisfaction provided that the Tenant shall not reinstate the dividing wall between the Property and the remainder of the 1st floor.

 

28.3                        At the end of the term or in the event of any earlier determination, the Tenant shall remove from the Property all chattels belonging to or used by it.

 

28.4                        The Tenant irrevocably appoints the Landlord to be the Tenant’s agent to store or dispose of any chattels or items it has fixed to the Property and which have been left by the Tenant on the Property for more than 15 working days after the end of the term. The Landlord shall not be liable to the Tenant by reason of that storage or disposal. The Tenant shall indemnify the Landlord in respect of any claim made by a third party in relation to that storage or disposal.

 

28.5                        If the Tenant does not comply with its obligations in this clause, then, without prejudice to any other right or remedy of the Landlord, the Tenant shall pay the Landlord all costs and expenses properly incurred by or on behalf of the Landlord in remedying any breach of the Tenant’s obligations.

 

29                                  USE

 

29.1                        The Tenant shall not use the Property for any purpose other than the Permitted Use.

 

29.2                        The Tenant shall not use the Property (or exercise any right granted by this lease) for any illegal purpose nor for any purpose or in a manner that would cause nuisance, disturbance, interference, congestion or other intrusive effect to the Landlord, its other tenants or any other owner or occupier of neighbouring property.

 

29.3                        The Tenant shall not overload any structural part of the Property or Building nor any machinery or equipment at the Property or Building nor any Service Media at or serving the Property or Building.

 

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30                                  COMPLIANCE WITH LAWS

 

30.1                        The Tenant shall comply with all Enactments relating to:

 

30.1.1              the Property and the occupation and use of the Property by the Tenant;

 

30.1.2              the use of all Service Media and machinery and equipment at or serving the Property;

 

30.1.3              any works carried out at the Property; and

 

30.1.4              all materials kept at or disposed from the Property.

 

30.2                        Without prejudice to any obligation on the Tenant to obtain any consent or approval under this lease, the Tenant shall carry out all works that are required under any Enactment to be carried out at the Property whether by the owner or the occupier.

 

30.3                        Within 10 working days after receipt of any notice or other communication affecting the Property (and whether or not served under any Enactment) the Tenant shall:

 

30.3.1              send a copy of the relevant document to the Landlord; and

 

30.3.2              take all steps necessary to comply with the notice or other communication and take any other action in connection with it as the Landlord may reasonably require.

 

30.4                        The Tenant shall not apply for any planning permission for the Property without the Landlord’s consent.

 

30.5                        In relation to community infrastructure levy (or any similar or replacement charge or levy):

 

30.5.1              pay any community infrastructure levy (or any similar or replacement charge or levy);

 

30.5.2              serve a notice assuming liability (and provide a copy of such notice to the Landlord) and not withdraw it (or carry out such equivalent or similar steps as may be required or permitted in relation to any similar or replacement charge or levy); and

 

30.5.3              indemnify the Landlord against all liabilities arising out of community infratructure levy (or any similar or replacement charge or levy),

 

in each case in respect or by reason of any works carried out at the Property.

 

30.6                        The Tenant shall comply with its obligations under the CDM Regulations, including all requirements in relation to the provision and maintenance of a health and safety file. The Tenant shall maintain the health and safety file for the Property in accordance with the CDM Regulations and shall give it to the Landlord at the end of the term.

 

30.7                        The Tenant shall supply all information to the Landlord that the Landlord reasonably requires from time to time to comply with the Landlord’s obligations under the CDM Regulations.

 

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30.8                        As soon as the Tenant becomes aware of any defect in the Property or the Building, it shall give the Landlord notice of it. The Tenant shall indemnify the Landlord against any liability under the Defective Premises Act 1972 in relation to the Property by reason of any failure of the Tenant to comply with any of the tenant covenants in this lease.

 

30.9                        The Tenant shall keep the Property equipped with all fire prevention, detection and fighting machinery and equipment and fire alarms which are required under all Enactments or required by the insurers of the Property or reasonably recommended by them or reasonably required by the Landlord and shall keep that machinery, equipment and alarms properly maintained and available for inspection.

 

31                                  ENERGY PERFORMANCE CERTIFICATES

 

31.1                        The Tenant shall:

 

31.1.1              cooperate with the Landlord so far as is reasonably necessary to allow the Landlord to obtain an energy performance certificate and recommendation report for the Property; and

 

31.1.2              allow such access to any energy assessor appointed by the Landlord as is reasonably necessary to inspect the Property for the purposes of preparing an energy performance certificate and recommendation report for the Property.

 

31.2                        The Tenant shall not commission an energy performance certificate for the Property without the Landlord’s consent.

 

32                                  ENCROACHMENTS, OBSTRUCTIONS AND ACQUISITION OF RIGHTS

 

32.1                        The Tenant shall not grant any right or licence over the Property to a third party.

 

32.2                        If a third party makes or attempts to make any encroachment over the Property or takes any action by which a right may be acquired over the Property, the Tenant shall:

 

32.2.1              immediately give notice to the Landlord; and

 

32.2.2              take all steps (including any proceedings) the Landlord reasonably requires to prevent or license the continuation of that encroachment or action.

 

32.3                        The Tenant shall not obstruct the flow of light or air to the Property.

 

32.4                        The Tenant shall not obstruct the Retained Parts or any other pavement, footpath or roadway adjoining or serving the Property or the Building.

 

32.5                        The Tenant shall not make any acknowledgement that the flow of light or air to the Property or that the means of access to the Property is enjoyed with the consent of any third party.

 

32.6                        If any person takes or threatens to take any action to obstruct the flow of light or air to the Property or obstruct the means of access to the Property, the Tenant shall:

 

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32.6.1              immediately notify the Landlord; and

 

32.6.2              take all steps (including proceedings) the Landlord reasonably requires to prevent or secure the removal of the obstruction.

 

33                                  BREACH OF REPAIR AND MAINTENANCE OBLIGATION

 

33.1                        The Landlord may enter the Property (by prior appointment except in the case of an emergency) to inspect its condition and state of repair and may give the Tenant a notice of any breach of any of the tenant covenants in this lease relating to the condition or repair of the Property.

 

33.2                        If the Tenant has not begun any works needed to remedy that breach within two months following that notice (or if works are required as a matter of emergency, then immediately) or if the Tenant is not carrying out the works with reasonable diligence, then the Landlord may enter the Property and carry out the works needed.

 

33.3                        The costs incurred by the Landlord in carrying out any works under this clause (and any professional fees and any VAT in respect of those costs) shall be a debt due from the Tenant to the Landlord and payable on demand.

 

33.4                        Any action taken by the Landlord under this clause shall be without prejudice to the Landlord’s other rights, including those under clause 36.

 

34                                  INDEMNITY

 

The Tenant shall indemnify the Landlord against all consequences of any breach of the Tenant’s obligations.

 

35                                  LANDLORD’S COVENANT FOR QUIET ENJOYMENT

 

The Landlord covenants with the Tenant, that, so long as the Tenant pays the rents reserved by and complies with its obligations in this lease, the Tenant shall have quiet enjoyment of the Property without any interruption by the Landlord or any person claiming under the Landlord except as otherwise permitted by this lease.

 

36                                  GUARANTEE AND INDEMNITY

 

36.1                        The provisions of Schedule 2 apply.

 

36.2                        If an Act of Insolvency occurs in relation to a guarantor, or if any guarantor (being an individual) dies or becomes incapable of managing his affairs the Tenant shall, if the Landlord requests, procure that a person of standing acceptable to the Landlord (acting reasonably) enters into a replacement or additional guarantee and indemnity of the tenant covenants of this lease in the same form as that entered into by the former guarantor.

 

36.3                        Clause 36.2 shall not apply in the case of a person who is guarantor by reason of having entered into an authorised guarantee agreement.

 

36.4                        For so long as any guarantor remains liable to the Landlord, the Tenant shall, if the Landlord requests, procure that that guarantor joins in any consent or approval

 

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required under this lease and consents to any variation of the tenant covenants of this lease.

 

37                                  FORFEITURE

 

37.1                        The Landlord may, notwithstanding the waiver of any previous rights of re-entry, re-enter the Property (or any part of the Property in the name of the whole) at any time after any of the following occurs:

 

37.1.1              the Annual Rent is unpaid 21 days after becoming payable ((whether it has been formally demanded or not);

 

37.1.2              any breach of any condition of, or tenant covenant, in this lease;

 

37.1.3              an Act of Insolvency.

 

37.2                        If the Landlord re-enters the Property (or any part of the Property in the name of the whole) under this clause, this lease shall immediately end, but without prejudice to any right or remedy of the Landlord in respect of any breach of covenant by the Tenant or any guarantor.

 

38                                  LIABILITY

 

38.1                        At any time when the Landlord, the Tenant or a guarantor is more than one person, then in each case those persons shall be jointly and severally liable for their respective obligations arising by virtue of this lease. The Landlord may release or compromise the liability of any one of those persons or grant any time or concession to any one of them without affecting the liability of any other of them.

 

38.2                        The obligations of the Tenant and any guarantor arising by virtue of this lease are owed to the Landlord and the obligations of the Landlord are owed to the Tenant.

 

38.3                        The Landlord shall not be liable to the Tenant or any other person for:

 

38.3.1              any damage to person or property arising from any act, omission or misfeasance by any other tenant or occupier of the Building or from the state and condition of the Property; or

 

38.3.2              any interruption to the supply of Utilities to the Property or other parts of the Building save to the extent caused by deliberate failure to maintain or by the wilful and persistent breach of the Landlord’s covenants; or

 

38.3.3              for any failure to perform any obligation in this lease, unless the failure is readily apparent to the Landlord or the Tenant has given the Landlord written notice of the facts of which it is aware giving rise to the failure and in each case allowed the Landlord a reasonable time to remedy the matter.

 

39                                  NO REPRESENTATION OR WARRANTY

 

39.1                        The Tenant acknowledges that in entering into this lease it does not rely on any representation or warranty (whether made innocently or negligently) other than those contained in any written replies that the Landlord’s solicitors have given to any written

 

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enquiries raised by the Tenant’s solicitors before the date of this lease.

 

39.2                        Nothing in this lease constitutes or shall constitute a representation or warranty that the Property may lawfully be used for any purpose allowed by this lease.

 

40                                  NO RIGHT TO ENFORCE

 

Nothing contained or referred to in this Lease entitles the Tenant to the benefit of, or the right to enforce, or to prevent the release or modification of any agreement entered into by any other tenant or occupier of the Building with the Landlord.

 

41                                  NOTICES, CONSENTS AND APPROVALS

 

41.1                        A notice given under or in connection with this lease shall be:

 

41.1.1              in writing unless this lease expressly states otherwise and for the purposes of this clause an e-mail is not in writing;

 

41.1.2              given by hand or by pre-paid first-class post or other next working day delivery service at the party’s registered office address (if the party is a company) or (in any other case) at the party’s principal place of business.

 

41.2                        If a notice is given in accordance with clause 41.1, it shall be deemed to have been received:

 

41.2.1              if delivered by hand, at the time the notice is left at the proper address;

 

41.2.2              if sent by pre-paid first-class post or other next working day delivery service, on the second working day after posting.

 

41.3                        This clause does not apply to the service of any proceedings or other documents in any legal action or, where applicable, any arbitration or other method of dispute resolution.

 

41.4                        Section 196 of the Law of Property Act 1925 shall otherwise apply to notices given under this lease.

 

41.5                        Where the consent of the Landlord is required under this lease, a consent shall only be valid if it is given by deed, unless:

 

41.5.1              it is given in writing and signed by a person duly authorised on behalf of the Landlord; and

 

41.5.2              it expressly states that the Landlord waives the requirement for a deed in that particular case.

 

If a waiver is given, it shall not affect the requirement for a deed for any other consent.

 

41.6                        Where the approval of the Landlord is required under this lease, an approval shall only be valid if it is in writing and signed by or on behalf of the Landlord, unless:

 

41.6.1              the approval is being given in a case of emergency; or

 

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41.6.2              this lease expressly states that the approval need not be in writing.

 

41.7                        If the Landlord gives a consent or approval under this lease, the giving of that consent or approval shall not imply that any consent or approval required from a third party has been obtained, nor shall it obviate the need to obtain any consent or approval from a third party.

 

42                                  GOVERNING LAW AND JURISDICTION

 

42.1                        This lease and any dispute or claim arising out of or in connection with it or its subject matter or formation (including non-contractual disputes or claims) shall be governed by and construed in accordance with English law.

 

42.2                        The parties irrevocably agree that the courts of England shall have exclusive jurisdiction to settle any dispute or claim that arises out of or in connection with this lease or its subject matter or formation (including non-contractual disputes or claims).

 

43                                  CONTRACTUAL RIGHTS OF THIRD PARTIES

 

No term of this lease shall be enforceable solely by virtue of the Contracts (Rights of Third Parties) Act 1999 by any person who is not a party to this lease.

 

44                                  TENANT’S OPTION TO BREAK

 

44.1                        The Tenant may terminate this lease on the Break Date by giving to the Landlord not less than six months’ written notice.

 

44.2                        On expiry of the notice (but subject to clause 44.3) this lease shall (without prejudice to any claim by either party in respect of any earlier breach of this lease) come to an end.

 

44.3                        The notice shall have no effect unless the Tenant shall:

 

44.3.1              have paid all instalments of the Annual Rent, Service Charge and VAT thereon falling due on or before expiry of the notice (save in the case of the Service Charge and VAT thereon to the extent that the element of the Service Charge which is unpaid is the subject of a bona fide dispute);

 

44.3.2              on such expiry have given up occupation of the Property (meaning that the Property is free from the occupation of the Tenant, any occupiers, third party interests and any underlessees); and

 

44.3.3              on such expiry have procured that there is no person deriving entitlement from the Tenant who has a lawful right to occupy the Property.

 

44.4                        The Landlord may waive any of the pre-conditions listed in clause 44.3 at any time before such expiry by notifying the Tenant.

 

44.5                        If this lease ends on the Break Date, the Landlord shall within 14 days of the Break Date refund an appropriate proportion (in relation to the period falling after the Break Date) of any instalments of the Annual Rent, Service Charge and Insurance Rent paid in advance by the Tenant.

 

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44.6                        If this lease is determined under this clause 44 the Tenant will make application to the Land Registry to cancel any registration it has made in connection with this lease as soon as reasonably practicable following the ending of the lease under this clause.

 

44.7                        Time will be of the essence for the purposes of this clause.

 

44.8                        If this lease is renewed pursuant to any statutory right of the Tenant, then (without acknowledging that such right exists) this clause 44 shall not be included in any renewal lease unless expressly agreed by the parties.

 

EXECUTED as a deed and delivered on the date stated at the beginning of it.

 

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SCHEDULE 1

 

SERVICES AND LANDLORD’S EXPENSES

 

1                                         SERVICES

 

The Services are:

 

1.1                               cleaning, maintaining, decorating, treating and repairing the Retained Parts;

 

1.2                               lighting the internal areas of the Retained Parts;

 

1.3                               cleaning the outside of the windows of the Building;

 

1.4                               heating the internal areas of the Retained Parts between such hours and at such times of the year as the Landlord in its discretion (and acting reasonably), considers appropriate;

 

1.5                               furnishing and floor tiling the internal areas of the Retained Parts;

 

1.6                               providing hot and cold water and other supplies in the lavatories and showers on the Retained Parts; and

 

1.7                               providing and maintaining common facilities for the Building for refuse and recycling disposal including any dustbins or other such receptacles for refuse and recyclables and arranging for refuse and recycling to be disposed of (the Tenant’s cleaning staff being responsible for depositing rubbish and recycles in to such dustbins or receptacles in sealed sacks).

 

2                                         LANDLORD’S EXPENSES

 

The Landlord’s Expenses means the costs (including any VAT charged on such costs to the extent that the Landlord is not able to obtain a credit for such VAT from HM Revenue & Customs) incurred or provided for by or on behalf of the Landlord in connection with all or any of the following items:

 

2.1                               the Services;

 

2.2                               cleaning, maintaining, carpeting or floor tiling, decorating, lighting, treating, repairing, rebuilding and (where beyond economic repair) replacing the Retained Parts;

 

2.3                               cleaning the outside of all windows at the Building;

 

2.4                               providing, operating, inspecting, maintaining, repairing and (where beyond economic repair) replacing Service Media at the Building (other than the Service Media which form part of the Property or any Lettable Unit or which do not belong to the Landlord);

 

2.5                               removing any obstruction on the Retained Parts;

 

2.6                               providing, operating, inspecting, insuring and maintaining, repairing and (where beyond economic repair) replacing any equipment, plant and machinery and other materials, which are used in providing the matters listed in this definition;

 

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2.7                               fuel and Utilities used on the Retained Parts or in providing the matters listed in this definition and that part of the Landlord’s Energy Management Costs which the Landlord reasonably attributes to the Retained Parts and to the provision of those matters;

 

2.8                               providing, maintaining and, when reasonably necessary (where beyond economic repair or where the information is to be changed) renewing signs at the Building;

 

2.9                               providing, maintaining and restocking floral and/or plant displays on the Retained Parts as the Landlord deems desirable (if any);

 

2.10                        providing, maintaining and replacing furniture and fittings for use on the Retained Parts;

 

2.11                        providing, maintaining, and, when reasonably necessary (where beyond economic repair) replacing or altering such security systems for the Retained Parts, which the Landlord (in the interests of good estate management) reasonably considers appropriate and which may include the provision of alarms, closed—circuit television, barriers and other equipment, and security guards and patrols (whether employed by the Landlord or engaged as contractors);

 

2.12                        providing fire detection, prevention and fighting equipment, and any signs, notices or equipment required by the fire authority for the Building and maintaining, repairing and, when necessary, replacing such items and providing such items as are required or recommended following any fire risk assessment at the Building;

 

2.13                        providing a reception or concierge or security desk in the entrance hall of the Building and staffing it;

 

2.14                        maintaining the car park and vehicle ramp at the Building which may include a traffic light entry system, if the Landlord deems necessary or desirable;

 

2.15                        employing or arranging for the employment (and the termination of employment) of staff in connection with the provision of the matters listed in this definition, including the costs of insurance, pension and welfare contributions and the provision of clothing, tools and equipment incurred in connection with such employment;

 

2.16                        all present and future rates, taxes, duties and assessments of whatever nature charged on, or payable in respect of, the Retained Parts or in respect of the Building as a whole;

 

2.17                        complying with any legislation relating to the Retained Parts or the Building as a whole;

 

2.18                        complying with or, where the Landlord reasonably considers it appropriate, contesting the requirements or proposals of the local or any other competent authority in respect of the Retained Parts or of the Building as a whole;

 

2.19                        complying with the Third Party Rights insofar as they relate to the Retained Parts or the Building as a whole;

 

2.20                        abating any nuisance to the Building;

 

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2.21                        making such provisions as the Landlord reasonably considers appropriate for anticipated future expenditure including the provision and replacement of any plant, machinery, lifts or equipment used or to be used in connection with the matters listed in this definition;

 

2.22                        leasing any item used in providing the matters listed in this paragraph 2;

 

2.23                        commitment fees, interest and any other cost of borrowing money, where necessary, to finance the matters listed in this paragraph 2;

 

2.24                        obtaining any professional advice which may from time to time be required in relation to the management of the Building or the provision of the matters listed in this paragraph 2;

 

2.25                        the fees of managing agents retained by the Landlord for the management of the Building, the provision of the matters listed in this definition and the collection of all rents and service charges (including the Rent, the Service Charge Estimate and the Service Charge Balance) due from the Tenant and the other occupiers of the Building (or where any of those tasks is carried out by the Landlord a reasonable charge of the Landlord for that task), but not any such costs arising by reason of those rents or service charges being in arrears;

 

2.26                        preparing (and auditing) the Certificate (whether by the Landlord or the Landlord’s surveyor or its accountants); and

 

2.27                        any other works, services, amenities or facilities which the Landlord from time to time reasonably considers desirable for the purpose of maintaining, or where necessary modernising the Building or any services, amenities or facilities at or for the Building and which are (or may be) for the general benefit of all, or substantially all, of the occupiers of the Building and are in accordance with the principles of good estate management,

 

but excluding:

 

(i)                           any cost which the Landlord recovers from any insurance taken out by the Landlord, where the Tenant is obliged to refund the Landlord the whole or any part of the premium;

 

(ii)                        costs relating to the initial development of the Building by the Landlord;

 

(iii)                     any costs actually recovered under any warranty or product guarantee or from a third party;

 

(iv)                    any costs, liabilities or expenses in respect of any unlet Lettable Units;

 

(v)                       any costs incurred in relation to the review of rent of any Lettable Unit or the letting or re-letting of any Lettable Unit;

 

(vi)                    any costs incurred in any action or proceedings against any tenant or occupier of a Lettable Unit save where enforcement against that tenant or occupier benefits a majority of tenants in the Building;

 

(vii)                 any costs, liabilities or expenses incurred on the part of the tenants or occupiers of other Lettable Units.

 

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The Landlord shall credit to the Landlord’s Expenses all sums actually recovered from any third party in respect of remedying any Inherent Defect or any damage caused by any Inherent Defect.

 

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SCHEDULE 2

GUARANTEE AND INDEMNITY

 

1                                         GUARANTEE AND INDEMNITY

 

1.1                               The Guarantor guarantees to the Landlord that the Tenant shall:

 

1.1.1                     pay the rents reserved by this lease and observe and perform the tenant covenants of this lease and that if the Tenant fails to pay any of those rents or to observe or perform any of those tenant covenants, the Guarantor shall pay or observe and perform them; and

 

1.1.2                     observe and perform any obligations the Tenant enters into in an authorised guarantee agreement made in respect of this lease and that if the Tenant fails to do so, the Guarantor shall observe and perform those obligations.

 

1.2                       The Guarantor covenants with the Landlord as a separate and independent primary obligation to indemnify the Landlord against any failure by the Tenant:

 

1.2.1                     to pay any of the rents reserved by this lease or any failure to observe or perform any of the tenant covenants of this lease; and

 

1.2.2                     to observe or perform any of the obligations the Tenant enters into in an authorised guarantee agreement.

 

2                                         GUARANTOR’S LIABILITY

 

2.1                               The liability of the Guarantor under paragraphs 1.1.1 and 1.1.2 shall continue until the end of the term, or until the Tenant is released from the tenant covenants of this lease by virtue of the Landlord and Tenant (Covenants) Act 1995, if earlier.

 

2.2                               The liability of the Guarantor shall not be affected by:

 

2.2.1                     any time or indulgence granted by the Landlord to the Tenant; or

 

2.2.2                     any delay or forbearance by the Landlord in enforcing the payment of any of the rents or the observance or performance of any of the tenant covenants of this lease (or the Tenant’s obligations under an authorised guarantee agreement) or in making any demand in respect of any of them; or

 

2.2.3                     any refusal by the Landlord to accept any rent or other payment due under this lease where the Landlord believes that the acceptance of such rent or payment may prejudice its ability to re-enter the Property; or

 

2.2.4                     the Landlord exercising any right or remedy against the Tenant for any failure to pay the rents reserved by this lease or to observe or perform the tenant covenants of this lease (or the Tenant’s obligations under an authorised guarantee or agreement); or

 

2.2.5                     the Landlord taking any action or refraining from taking any action in

 

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connection with any other security held by the Landlord in respect of the Tenant’s liability to pay the rents reserved by this lease or observe and perform the tenant covenants of this lease (or the Tenant’s obligations under an authorised guarantee agreement) including the release of any such security; or

 

2.2.6                     any legal limitation or disability on the Tenant or any invalidity or irregularity of any of the tenant covenants of this lease (or the Tenant’s obligations under an authorised guarantee agreement) or any unenforceability of any of them against the Tenant; or

 

2.2.7                     the Tenant being dissolved, or being struck off the register of companies or otherwise ceasing to exist, or, if the Tenant is an individual, by the Tenant dying or becoming incapable of managing its affairs; or

 

2.2.8                     without prejudice to paragraph 4, the disclaimer of the Tenant’s liability under this lease or the forfeiture of this lease; or

 

2.2.9                     the surrender of part of the Property, except that the Guarantor shall not be under any liability in relation to the surrendered part in respect of any period after the surrender; or

 

by any other act or omission except an express written release under seal of the Guarantor by the Landlord.

 

2.3                               Any sum payable by the Guarantor shall be paid without any deduction, set-off or counter-claim against the Landlord or the Tenant.

 

3                                         VARIATIONS AND SUPPLEMENTAL DOCUMENTS

 

3.1                               The Guarantor shall, at the request of the Landlord, join in and give its consent to the terms of any consent, approval, variation or other document that may be entered into by the Tenant in connection with this lease (or an authorised guarantee agreement).

 

3.2                               The Guarantor shall not be released by any variation of the rents reserved by, or the tenant covenants in, this lease (or the Tenant’s obligations under an authorised guarantee agreement) whether or not:

 

3.2.1                     the variation is material or prejudicial to the Guarantor; or

 

3.2.2                     the variation is made in any document; or

 

3.2.3                     the Guarantor has consented, in writing or otherwise, to the variation.

 

3.3                               The liability of the Guarantor shall apply to the rents reserved by and the tenant covenants in this lease (and the Tenant’s obligations under an authorised guarantee agreement) as varied except to the extent that the liability of the Guarantor is affected by section 18 of the Landlord and Tenant (Covenants) Act 1995.

 

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4                                         GUARANTOR TO TAKE A NEW LEASE OR MAKE PAYMENT

 

4.1                               If this lease is forfeited or the liability of the Tenant under this lease is disclaimed and the Landlord gives the Guarantor notice not later than six months after the forfeiture or the Landlord having received notice of the disclaimer, the Guarantor shall enter into a new lease of the property on the terms set out in paragraph 4.2.

 

4.2                               The rights and obligations under the new lease shall take effect from the date of the forfeiture or disclaimer and the new lease shall:

 

4.2.1                     be granted subject to the right of any person to have this lease vested in them by the court and to the terms on which any such order may be made and subject to the rights of any third party existing at the date of the grant;

 

4.2.2                     be for a term that expires at the same date as the end of the Contractual Term of this lease had there been no forfeiture or disclaimer;

 

4.2.3                     reserve as an initial annual rent an amount equal to the Annual Rent payable under this lease at the date of the forfeiture or disclaimer or which would be payable but for any abatement or suspension of the Annual Rent or restriction on the right to collect it (subject to paragraph 5) and which is subject to review on the same terms and date provided this lease;

 

4.2.4                     be excluded from sections 24 to 28 of the 1954 Act; and

 

4.2.5                     otherwise be on the same terms as this lease (as varied if there has been any variation).

 

4.3                               The Guarantor shall pay the Landlord’s solicitor’s costs and disbursements (on a full indemnity basis) and any VAT in respect of them in relation to the new lease and shall execute and deliver to the Landlord a counterpart of the new lease within one month after service of the Landlord’s notice.

 

4.4                               The grant of a new lease and its acceptance by the Guarantor shall be without prejudice to any other rights which the Landlord may have against the Guarantor or against any other person or in respect of any other security that the Landlord may have in connection with this lease.

 

4.5                               The Landlord may, instead of giving the Guarantor notice under paragraph 4.1 but in the same circumstances and within the same time limit, require the Guarantor to pay an amount equal to six months Annual Rent and the Guarantor shall pay that amount on demand.

 

5                                         RENT AT THE DATE OF FORFEITURE OR DISCLAIMER

 

If at the date of the forfeiture or disclaimer there is a rent review pending under this lease, then the initial annual rent to be reserved by the new lease shall be the greater of:

 

5.1                               the Annual Rent previously payable (or which would have been payable but for any abatement or suspension of the Annual Rent or restriction on the right to collect it) under this lease prior to forfeiture or disclaimer; and

 

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5.2                               the open market rent of the Property at the relevant Review Date, as determined by the Landlord before the grant of the new lease.

 

6                                         PAYMENTS IN GROSS AND RESTRICTIONS ON THE GUARANTOR

 

6.1                               Any payment or dividend that the Landlord receives from the Tenant (or its estate) or any other person in connection with any insolvency proceedings or arrangement involving the Tenant shall be taken and applied as a payment in gross and shall not prejudice the right of the Landlord to recover from the Guarantor to the full extent of the obligations that are the subject of this guarantee and indemnity.

 

6.2                               The Guarantor shall not claim in competition with the Landlord in any insolvency proceedings or arrangement of the Tenant in respect of any payment made by the Guarantor under this guarantee and indemnity. If it otherwise receives any money in such proceedings or arrangement, it shall hold that money on trust for the Landlord to the extent of its liability to the Landlord.

 

6.3                               The Guarantor shall not, without the consent of the Landlord, exercise any right or remedy that it may have (whether against the Tenant or any other person) in respect of any amount paid or other obligation performed by the Guarantor under this guarantee and indemnity unless and until all the obligations of the Guarantor under this guarantee and indemnity have been fully performed.

 

7                                         OTHER SECURITIES

 

7.1                               The Guarantor warrants that it has not taken and covenants that it shall not take any security from or over the assets of the Tenant in respect of any liability of the Tenant to the Guarantor. If it does take or hold any such security it shall hold it for the benefit of the Landlord.

 

7.2                               This guarantee and indemnity is in addition to any other security that the Landlord may at any time hold from the Guarantor or the Tenant or any other person in respect of the liability of the Tenant to pay the rents reserved by this lease and to observe and perform the tenant covenants of this lease. It shall not merge in or be affected by any other security.

 

7.3                               The Guarantor shall not be entitled to claim or participate in any other security held by the Landlord in respect of the liability of the Tenant to pay the rents reserved by this lease or to observe and perform the tenant covenants of this lease.

 

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Executed as a deed by CARBON
   BLACK U.K. LIMITED acting by
   its secretary and a director or by
   two directors:
    	
 
    
	
 
    
	
/s/ Mark P. Sullivan
    
	
 
    
	
 
    	
Director
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Director/Secretary
    

 

	
Signed as a deed on   behalf of
    CARBON BLACK, INC, a company
   incorporated in Massachusetts, USA,
   by
    	
 
    
	
 
    
	
/s/ Mark P. Sullivan
    
	
 
    
	
 
    	
Authorised Signatory
    
	
 
    	
 
    
	
and
    	
 
    
	
being persons who, in   accordance
   with the laws of the territory, are
   acting under the authority of the
   company:
    	
 
    
	
 
    
	
Authorised Signatory
    
	
 
    

 

 

49

 

	
Signed as a deed by BOULTBEE
   BROOKS (READING) LIMITED
    acting by a director in the
   presence of:
    	
 
    	

    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Director
    
	
/s/ Christine Elsasser
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Signature of witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/ Christine   Elsasser
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Name of witness
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
32 Berkeley Road
    	
 
    	
 
    
	
Newbury, RG14   5JE
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Address of witness
    	
 
    	
 
    

 

50Exhibit 10.5

 

CARBON BLACK, INC.

 

2012 STOCK OPTION AND GRANT PLAN

 

SECTION 1.  GENERAL PURPOSE OF THE PLAN; DEFINITIONS

 

The name of the plan is the Carbon Black, Inc. 2012 Stock Option and Grant Plan (the “Plan”).  The purpose of the Plan is to encourage and enable the officers, employees, directors, Consultants and other key persons of Carbon Black, Inc., a Delaware corporation (including any successor entity, the “Company”) and its Subsidiaries, upon whose judgment, initiative and efforts the Company largely depends for the successful conduct of its business, to acquire a proprietary interest in the Company.

 

The following terms shall be defined as set forth below:

 

“Affiliate” of any Person means a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by or is under common control with the first mentioned Person.  A Person shall be deemed to control another Person if such first Person possesses directly or indirectly the power to direct, or cause the direction of, the management and policies of the second Person, whether through the ownership of voting securities, by contract or otherwise.

 

“Award” or “Awards,” except where referring to a particular category of grant under the Plan, shall include Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, Restricted Stock Units or any combination of the foregoing.

 

“Award Agreement” means a written or electronic agreement setting forth the terms and provisions applicable to an Award granted under the Plan.  Each Award Agreement may contain terms and conditions in addition to those set forth in the Plan; provided, however, in the event of any conflict in the terms of the Plan and the Award Agreement, the terms of the Plan shall govern.

 

“Board” means the Board of Directors of the Company.

 

“Cause” shall have the meaning as set forth in the Award Agreement(s).  In the case that any Award Agreement does not contain a definition of “Cause,” it shall mean (i) the grantee’s dishonest statements or acts with respect to the Company or any Affiliate of the Company, or any current or prospective customers, suppliers vendors or other third parties with which such entity does business; (ii) the grantee’s commission of (A) a felony or (B) any misdemeanor involving moral turpitude, deceit, dishonesty or fraud; (iii) the grantee’s failure to perform his assigned duties and responsibilities to the reasonable satisfaction of the Company which failure continues, in the reasonable judgment of the Company, after written notice given to the grantee by the Company; (iv) the grantee’s gross negligence, willful misconduct or insubordination with respect to the Company or any Affiliate of the Company; or (v) the grantee’s material violation

 

 

of any provision of any agreement(s) between the grantee and the Company relating to noncompetition, nonsolicitation, nondisclosure and/or assignment of inventions.

 

“Chief Executive Officer” means the Chief Executive Officer of the Company or, if there is no Chief Executive Officer, then the President of the Company.

 

“Code” means the Internal Revenue Code of 1986, as amended, and any successor Code, and related rules, regulations and interpretations.

 

“Committee” means the Committee of the Board referred to in Section 2.

 

“Consultant” means any natural person that provides bona fide services to the Company (including a Subsidiary), and such services are not in connection with the offer or sale of securities in a capital-raising transaction and do not directly or indirectly promote or maintain a market for the Company’s securities.

 

“Disability” means “disability” as defined in Section 422(c) of the Code.

 

“Effective Date” means the date on which the Plan is adopted as set forth on the final page of the Plan.

 

“Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder.

 

“Fair Market Value” of the Stock on any given date means the fair market value of the Stock determined in good faith by the Committee based on the reasonable application of a reasonable valuation method not inconsistent with Section 409A of the Code.  If the Stock is admitted to trade on a national securities exchange, the determination shall be made by reference to the closing price reported on such exchange.  If there is no closing price for such date, the determination shall be made by reference to the last date preceding such date for which there is a closing price.  If the date for which Fair Market Value is determined is the first day when trading prices for the Stock are reported on a national securities exchange, the Fair Market Value shall be the “Price to the Public” (or equivalent) set forth on the cover page for the final prospectus relating to the Company’s Initial Public Offering.

 

“Good Reason” shall have the meaning as set forth in the Award Agreement(s).  In the case that any Award Agreement does not contain a definition of “Good Reason,” it shall mean (i) a material diminution in the grantee’s base salary except for across-the-board salary reductions similarly affecting all or substantially all similarly situated employees of the Company or (ii) a change of more than 50 miles in the geographic location at which the grantee provides services to the Company, so long as the grantee provides at least 90 days notice to the Company following the initial occurrence of any such event and the Company fails to cure such event within 30 days thereafter.

 

“Grant Date” means the date that the Committee designates in its approval of an Award in accordance with applicable law as the date on which the Award is granted, which date may not precede the date of such Committee approval.

 

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“Holder” means, with respect to an Award or any Shares, the Person holding such Award or Shares, including the initial recipient of the Award or any Permitted Transferee.

 

“Incentive Stock Option” means any Stock Option designated and qualified as an “incentive stock option” as defined in Section 422 of the Code.

 

“Initial Public Offering” means the consummation of the first firm commitment underwritten public offering pursuant to an effective registration statement under the Securities Act covering the offer and sale by the Company of its equity securities, as a result of or following which the Stock shall be publicly held.

 

“Non-Qualified Stock Option” means any Stock Option that is not an Incentive Stock Option.

 

“Option” or “Stock Option” means any option to purchase shares of Stock granted pursuant to Section 5.

 

“Permitted Transferees” shall mean any of the following to whom a Holder may transfer Shares hereunder (as set forth in Section 9(a)(ii)(A)): the Holder’s child, stepchild, grandchild, parent, stepparent, grandparent, spouse, former spouse, sibling, niece, nephew, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law, including adoptive relationships, any person sharing the Holder’s household (other than a tenant or employee), a trust in which these persons have more than fifty percent of the beneficial interest, a foundation in which these persons control the management of assets, and any other entity in which these persons own more than fifty percent of the voting interests; provided, however, that any such trust does not require or permit distribution of any Shares during the term of the Award Agreement unless subject to its terms.  Upon the death of the Holder, the term Permitted Transferees shall also include such deceased Holder’s estate, executors, administrators, personal representatives, heirs, legatees and distributees, as the case may be.

 

“Person” shall mean any individual, corporation, partnership (limited or general), limited liability company, limited liability partnership, association, trust, joint venture, unincorporated organization or any similar entity.

 

“Restricted Stock Award” means Awards granted pursuant to Section 6 and “Restricted Stock” means Shares issued pursuant to such Awards.

 

“Restricted Stock Unit” means an Award of phantom stock units to a grantee, which may be settled in cash or Shares as determined by the Committee, pursuant to Section 8.

 

“Sale Event” means the consummation of (i) the dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization or consolidation pursuant to which the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the surviving or resulting entity (or its ultimate parent, if applicable), (iv) the acquisition of all or a majority of the outstanding voting stock of the Company in a single transaction or a series of related transactions by a Person or group of Persons, or (v) any other acquisition of the business of the Company, as

 

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determined by the Board; provided, however, that the Company’s Initial Public Offering, any subsequent public offering or another capital raising event, or a merger effected solely to change the Company’s domicile shall not constitute a “Sale Event.”

 

“Section 409A” means Section 409A of the Code and the regulations and other guidance promulgated thereunder.

 

“Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations thereunder.

 

“Service Relationship” means any relationship as a full-time employee, part-time employee, director or other key person (including Consultants) of the Company or any Subsidiary or any successor entity (e.g., a Service Relationship shall be deemed to continue without interruption in the event an individual’s status changes from full-time employee to part-time employee or Consultant).

 

“Shares” means shares of Stock.

 

“Stock” means the Common Stock, par value $0.001 per share, of the Company.

 

“Subsidiary” means any corporation or other entity (other than the Company) in which the Company has more than a 50 percent interest, either directly or indirectly.

 

“Ten Percent Owner” means an employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than 10 percent of the combined voting power of all classes of stock of the Company or any parent of the Company or any Subsidiary.

 

“Termination Event” means the termination of the Award recipient’s Service Relationship with the Company and its Subsidiaries for any reason whatsoever, regardless of the circumstances thereof, and including, without limitation, upon death, disability, retirement, discharge or resignation for any reason, whether voluntarily or involuntarily.  The following shall not constitute a Termination Event:  (i) a transfer to the service of the Company from a Subsidiary or from the Company to a Subsidiary, or from one Subsidiary to another Subsidiary or (ii) an approved leave of absence for military service or sickness, or for any other purpose approved by the Committee, if the individual’s right to re-employment is guaranteed either by a statute or by contract or under the policy pursuant to which the leave of absence was granted or if the Committee otherwise so provides in writing.

 

“Unrestricted Stock Award” means any Award granted pursuant to Section 7 and “Unrestricted Stock” means Shares issued pursuant to such Awards.

 

SECTION 2.  ADMINISTRATION OF PLAN; COMMITTEE AUTHORITY TO SELECT GRANTEES AND DETERMINE AWARDS

 

(a)                                 Administration of Plan.  The Plan shall be administered by the Board, or at the discretion of the Board, by a committee of the Board, comprised of not less than two directors.  All references herein to the “Committee” shall be deemed to refer to the group then responsible

 

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for administration of the Plan at the relevant time (i.e., either the Board of Directors or a committee or committees of the Board, as applicable).

 

(b)                                 Powers of Committee.  The Committee shall have the power and authority to grant Awards consistent with the terms of the Plan, including the power and authority:

 

(i)                                     to select the individuals to whom Awards may from time to time be granted;

 

(ii)                                  to determine the time or times of grant, and the amount, if any, of Incentive Stock Options, Non-Qualified Stock Options, Restricted Stock Awards, Unrestricted Stock Awards, Restricted Stock Units, or any combination of the foregoing, granted to any one or more grantees;

 

(iii)                               to determine the number of Shares to be covered by any Award and, subject to the provisions of the Plan, the price, exercise price, conversion ratio or other price relating thereto;

 

(iv)                              to determine and, subject to Section 12, to modify from time to time the terms and conditions, including restrictions, not inconsistent with the terms of the Plan, of any Award, which terms and conditions may differ among individual Awards and grantees, and to approve the form of Award Agreements;

 

(v)                                 to accelerate at any time the exercisability or vesting of all or any portion of any Award;

 

(vi)                              to impose any limitations on Awards, including limitations on transfers, repurchase provisions and the like, and to exercise repurchase rights or obligations;

 

(vii)                           subject to Section 5(a)(ii) and any restrictions imposed by Section 409A, to extend at any time the period in which Stock Options may be exercised; and

 

(viii)                        at any time to adopt, alter and repeal such rules, guidelines and practices for administration of the Plan and for its own acts and proceedings as it shall deem advisable; to interpret the terms and provisions of the Plan and any Award (including Award Agreements); to make all determinations it deems advisable for the administration of the Plan; to decide all disputes arising in connection with the Plan; and to otherwise supervise the administration of the Plan.

 

All decisions and interpretations of the Committee shall be binding on all persons, including the Company and all Holders.

 

(c)                                  Delegation of Authority to Grant Options.  Subject to applicable law, the Committee, in its discretion, may delegate to the Chief Executive Officer of the Company the power to designate non-officer employees to be recipients of Options, and to determine the number of such Options to be received by such employees; provided, however, that the resolution so authorizing the Chief Executive Officer shall specify the total number of Options the Chief Executive Officer may so award and may not delegate to the Chief Executive Officer

 

5

 

the authority to set the exercise price or the vesting terms of such Options.  Any such delegation by the Committee shall also provide that the Chief Executive Officer may not grant Awards to himself or herself (or other officers) without the approval of the Committee.  The Committee may revoke or amend the terms of a delegation at any time but such action shall not invalidate any prior actions of the Committee’s delegate or delegates that were consistent with the terms of the Plan.

 

(d)                                 Award Agreement.  Awards under the Plan shall be evidenced by Award Agreements that set forth the terms, conditions and limitations for each Award.

 

(e)                                  Indemnification.  Neither the Board nor the Committee, nor any member of either or any delegate thereof, shall be liable for any act, omission, interpretation, construction or determination made in good faith in connection with the Plan, and the members of the Board and the Committee (and any delegate thereof) shall be entitled in all cases to indemnification and reimbursement by the Company in respect of any claim, loss, damage or expense (including, without limitation, reasonable attorneys’ fees) arising or resulting therefrom to the fullest extent permitted by law and/or under the Company’s governing documents, including its certificate of incorporation or bylaws, or any directors’ and officers’ liability insurance coverage which may be in effect from time to time and/or any indemnification agreement between such individual and the Company.

 

(f)                                   Foreign Award Recipients.  Notwithstanding any provision of the Plan to the contrary, in order to comply with the laws in other countries in which the Company and any Subsidiary operate or have employees or other individuals eligible for Awards, the Committee, in its sole discretion, shall have the power and authority to: (i) determine which Subsidiaries, if any, shall be covered by the Plan; (ii) determine which individuals, if any, outside the United States are eligible to participate in the Plan; (iii) modify the terms and conditions of any Award granted to individuals outside the United States to comply with applicable foreign laws; (iv) establish subplans and modify exercise procedures and other terms and procedures, to the extent the Committee determines such actions to be necessary or advisable (and such subplans and/or modifications shall be attached to the Plan as appendices); provided, however, that no such subplans and/or modifications shall increase the share limitation contained in Section 3(a) hereof; and (v) take any action, before or after an Award is made, that the Committee determines to be necessary or advisable to obtain approval or comply with any local governmental regulatory exemptions or approvals.

 

SECTION 3.  STOCK ISSUABLE UNDER THE PLAN; MERGERS AND OTHER TRANSACTIONS; SUBSTITUTION

 

(a)                                 Stock Issuable.  The maximum number of Shares reserved and available for issuance under the Plan shall be 34,031,086 Shares, subject to adjustment as provided in Section 3(b). For purposes of this limitation, the Shares underlying any Awards under the Plan or awards under the Company’s Amended and Restated Equity Incentive Plan that are forfeited, canceled, reacquired by the Company prior to vesting, satisfied without the issuance of Stock or otherwise terminated (other than by exercise) and Shares that are withheld upon exercise of an Option or settlement of an Award to cover the exercise price or tax withholding shall be added back to the Shares available for issuance under the Plan. Subject to such overall limitations,

 

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Shares may be issued up to such maximum number pursuant to any type or types of Award, and no more than 80,000,000 Shares may be issued pursuant to Incentive Stock Options.  The Shares available for issuance under the Plan may be authorized but unissued Shares or Shares reacquired by the Company.  Beginning on the date that the Company becomes subject to Section 162(m) of the Code, Options with respect to no more than 8,479,235 Shares shall be granted to any one individual in any calendar year period.

 

(b)                                 Changes in Stock.  Subject to Section 3(c) hereof, if, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Company’s capital stock, the outstanding Shares are increased or decreased or are exchanged for a different number or kind of shares or other securities of the Company, or additional Shares or new or different shares or other securities of the Company or other non-cash assets are distributed with respect to such Shares or other securities, in each case, without the receipt of consideration by the Company, or, if, as a result of any merger or consolidation, or sale of all or substantially all of the assets of the Company, the outstanding Shares are converted into or exchanged for other securities of the Company or any successor entity (or a parent or subsidiary thereof), the Committee shall make an appropriate and proportionate adjustment in (i) the maximum number of Shares reserved for issuance under the Plan, (ii) the number and kind of Shares or other securities subject to any then outstanding Awards under the Plan, (iii) the repurchase price, if any, per Share subject to each outstanding Award, and (iv) the exercise price for each Share subject to any then outstanding Stock Options under the Plan, without changing the aggregate exercise price (i.e., the exercise price multiplied by the number of Stock Options) as to which such Stock Options remain exercisable.  The Committee shall also make equitable or proportionate adjustments in the number of Shares subject to outstanding Awards and the exercise price and the terms of outstanding Awards to take into consideration cash dividends paid other than in the ordinary course or any other extraordinary corporate event.  The Committee shall in any event make such adjustments as may be required by Section 25102(o) of the California Corporation Code and the rules and regulations promulgated thereunder.  The adjustment by the Committee shall be final, binding and conclusive.  No fractional Shares shall be issued under the Plan resulting from any such adjustment, but the Committee in its discretion may make a cash payment in lieu of fractional shares.

 

(c)                                  Sale Events.

 

(i)                                     Options.

 

(A)                               In the case of and subject to the consummation of a Sale Event, the Plan and all outstanding Options issued hereunder shall terminate upon the effective time of any such Sale Event unless assumed or continued by the successor entity, or new stock options or other awards of the successor entity or parent thereof are substituted therefor, with an equitable or proportionate adjustment as to the number and kind of shares and, if appropriate, the per share exercise prices, as such parties shall agree (after taking into account any acceleration hereunder and/or pursuant to the terms of any Award Agreement).

 

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(B)                               In the event of the termination of the Plan and all outstanding Options issued hereunder pursuant to Section 3(c), each Holder of Options shall be permitted, within a period of time prior to the consummation of the Sale Event as specified by the Committee, to exercise all such Options which are then exercisable or will become exercisable as of the effective time of the Sale Event; provided, however, that the exercise of Options not exercisable prior to the Sale Event shall be subject to the consummation of the Sale Event.

 

(C)                               Notwithstanding anything to the contrary in Section 3(c)(i)(A), in the event of a Sale Event, the Company shall have the right, but not the obligation, to make or provide for a cash payment to the Holders of Options, without any consent of the Holders, in exchange for the cancellation thereof, in an amount equal to the difference between (A) the value as determined by the Committee of the consideration payable per share of Stock pursuant to the Sale Event (the “Sale Price”) times the number of Shares subject to outstanding Options being cancelled (to the extent then vested and exercisable, including by reason of acceleration in connection with such Sale Event, at prices not in excess of the Sale Price) and (B) the aggregate exercise price of all such outstanding vested and exercisable Options.

 

(ii)                                  Restricted Stock and Restricted Stock Unit Awards.

 

(A)                               In the case of and subject to the consummation of a Sale Event, all Restricted Stock and unvested Restricted Stock Unit Awards (other than those becoming vested as a result of the Sale Event) issued hereunder shall be forfeited immediately prior to the effective time of any such Sale Event unless assumed or continued by the successor entity, or awards of the successor entity or parent thereof are substituted therefor, with an equitable or proportionate adjustment as to the number and kind of shares subject to such awards as such parties shall agree (after taking into account any acceleration hereunder and/or pursuant to the terms of any Award Agreement).

 

(B)                               In the event of the forfeiture of Restricted Stock pursuant to Section 3(c)(ii)(A), such Restricted Stock shall be repurchased from the Holder thereof at a price per share equal to the lower of the original per share purchase price paid by the Holder (subject to adjustment as provided in Section 3(b)) or the current Fair Market Value of such Shares, determined immediately prior to the effective time of the Sale Event.

 

(C)                               Notwithstanding anything to the contrary in Section 3(c)(ii)(A), in the event of a Sale Event, the Company shall have the right, but not the obligation, to make or provide for a cash payment to the Holders of Restricted Stock or Restricted Stock Unit Awards, without consent of the Holders, in exchange for the cancellation thereof, in an amount equal to the Sale Price times the number of Shares subject to such Awards, to be paid at the time of such Sale Event or upon the later vesting of such Awards.

 

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SECTION 4.  ELIGIBILITY

 

Grantees under the Plan will be such full or part-time officers and other employees, directors, Consultants and key persons of the Company and any Subsidiary who are selected from time to time by the Committee in its sole discretion; provided, however, that Awards shall be granted only to those individuals described in Rule 701(c) of the Securities Act.

 

SECTION 5.  STOCK OPTIONS

 

Upon the grant of a Stock Option, the Company and the grantee shall enter into an Award Agreement.  The terms and conditions of each such Award Agreement shall be determined by the Committee, and such terms and conditions may differ among individual Awards and grantees.

 

Stock Options granted under the Plan may be either Incentive Stock Options or Non-Qualified Stock Options.  Incentive Stock Options may be granted only to employees of the Company or any Subsidiary that is a “subsidiary corporation” within the meaning of Section 424(f) of the Code.  To the extent that any Option does not qualify as an Incentive Stock Option, it shall be deemed a Non-Qualified Stock Option.

 

(a)                                 Terms of Stock Options.  The Committee in its discretion may grant Stock Options to those individuals who meet the eligibility requirements of Section 4.  Stock Options shall be subject to the following terms and conditions and shall contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee shall deem desirable.

 

(i)                                     Exercise Price.  The exercise price per share for the Shares covered by a Stock Option shall be determined by the Committee at the time of grant but shall not be less than 100 percent of the Fair Market Value on the Grant Date.  In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the exercise price per share for the Shares covered by such Incentive Stock Option shall not be less than 110 percent of the Fair Market Value on the Grant Date.

 

(ii)                                  Option Term.  The term of each Stock Option shall be fixed by the Committee, but no Stock Option shall be exercisable more than ten years from the Grant Date.  In the case of an Incentive Stock Option that is granted to a Ten Percent Owner, the term of such Stock Option shall be no more than five years from the Grant Date.

 

(iii)                               Exercisability; Rights of a Stockholder.  Stock Options shall become exercisable and/or vested at such time or times, whether or not in installments, as shall be determined by the Committee at or after the Grant Date.  The Award Agreement may permit a grantee to exercise all or a portion of a Stock Option immediately at grant; provided that the Shares issued upon such exercise shall be subject to restrictions and a vesting schedule identical to the vesting schedule of the related Stock Option, such Shares shall be deemed to be Restricted Stock for purposes of the Plan, and the optionee may be required to enter into an additional or new Award Agreement as a condition to exercise of such Stock Option.  An optionee shall have the rights of a stockholder only as to Shares acquired upon the exercise of a Stock Option and not as to unexercised Stock Options.  An optionee shall not be deemed to have acquired any Shares unless and until a Stock Option shall have been exercised pursuant to the terms of the Award

 

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Agreement and this Plan and the optionee’s name has been entered on the books of the Company as a stockholder.

 

(iv)                              Method of Exercise.  Stock Options may be exercised by an optionee in whole or in part, by the optionee giving written or electronic notice of exercise to the Company, specifying the number of Shares to be purchased.  Payment of the purchase price may be made by one or more of the following methods (or any combination thereof) to the extent provided in the Award Agreement:

 

(A)                               In cash, by certified or bank check, by wire transfer of immediately available funds, or other instrument acceptable to the Committee;

 

(B)                               If permitted by the Committee, by the optionee delivering to the Company a promissory note, if the Board has expressly authorized the loan of funds to the optionee for the purpose of enabling or assisting the optionee to effect the exercise of his or her Stock Option; provided, that at least so much of the exercise price as represents the par value of the Stock shall be paid in cash if required by state law;

 

(C)                               If permitted by the Committee and the Initial Public Offering has occurred (or the Stock otherwise becomes publicly-traded), through the delivery (or attestation to the ownership) of Shares that have been purchased by the optionee on the open market or that are beneficially owned by the optionee and are not then subject to restrictions under any Company plan. To the extent required to avoid variable accounting treatment under ASC 718 or other applicable accounting rules, such surrendered Shares if originally purchased from the Company shall have been owned by the optionee for at least six months.  Such surrendered Shares shall be valued at Fair Market Value on the exercise date;

 

(D)                               If permitted by the Committee and the Initial Public Offering has occurred (or the Stock otherwise becomes publicly-traded), by the optionee delivering to the Company a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company cash or a check payable and acceptable to the Company for the purchase price; provided that in the event the optionee chooses to pay the purchase price as so provided, the optionee and the broker shall comply with such procedures and enter into such agreements of indemnity and other agreements as the Committee shall prescribe as a condition of such payment procedure; or

 

(E)                                If permitted by the Committee, and only with respect to Stock Options that are not Incentive Stock Options, by a “net exercise” arrangement pursuant to which the Company will reduce the number of Shares issuable upon exercise by the largest whole number of Shares with a Fair Market Value that does not exceed the aggregate exercise price.

 

Payment instruments will be received subject to collection.  No certificates for Shares so purchased will be issued to the optionee or, with respect to uncertificated Stock, no transfer to the optionee on the records of the Company will take place, until the Company has completed all steps it has deemed necessary to satisfy legal requirements relating to the issuance and sale of the

 

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Shares, which steps may include, without limitation, (i) receipt of a representation from the optionee at the time of exercise of the Option that the optionee is purchasing the Shares for the optionee’s own account and not with a view to any sale or distribution of the Shares or other representations relating to compliance with applicable law governing the issuance of securities, (ii) the legending of the certificate (or notation on any book entry) representing the Shares to evidence the foregoing restrictions, and (iii) obtaining from optionee payment or provision for all withholding taxes due as a result of the exercise of the Option.  The delivery of certificates representing the shares of Stock (or the transfer to the optionee on the records of the Company with respect to uncertificated Stock) to be purchased pursuant to the exercise of a Stock Option will be contingent upon (A) receipt from the optionee (or a purchaser acting in his or her stead in accordance with the provisions of the Stock Option) by the Company of the full purchase price for such Shares and the fulfillment of any other requirements contained in the Award Agreement or applicable provisions of laws and (B) if required by the Company, the optionee shall have entered into any stockholders agreements or other agreements with the Company and/or certain other of the Company’s stockholders relating to the Stock.  In the event an optionee chooses to pay the purchase price by previously-owned Shares through the attestation method, the number of Shares transferred to the optionee upon the exercise of the Stock Option shall be net of the number of Shares attested to.

 

(b)                                 Annual Limit on Incentive Stock Options.  To the extent required for “incentive stock option” treatment under Section 422 of the Code, the aggregate Fair Market Value (determined as of the Grant Date) of the Shares with respect to which Incentive Stock Options granted under the Plan and any other plan of the Company or its parent and any Subsidiary that become exercisable for the first time by an optionee during any calendar year shall not exceed $100,000 or such other limit as may be in effect from time to time under Section 422 of the Code.  To the extent that any Stock Option exceeds this limit, it shall constitute a Non-Qualified Stock Option.

 

(c)                                  Termination.  Any portion of a Stock Option that is not vested and exercisable on the date of termination of an optionee’s Service Relationship shall immediately expire and be null and void.  Once any portion of the Stock Option becomes vested and exercisable, the optionee’s right to exercise such portion of the Stock Option (or the optionee’s representatives and legatees as applicable) in the event of a termination of the optionee’s Service Relationship shall continue until the earliest of: (i) the date which is: (A) 12 months following the date on which the optionee’s Service Relationship terminates due to death or Disability (or such longer period of time as determined by the Committee and set forth in the applicable Award Agreement), or (B) three months following the date on which the optionee’s Service Relationship terminates if the termination is due to any reason other than death or Disability (or such longer period of time as determined by the Committee and set forth in the applicable Award Agreement), or (ii) the Expiration Date set forth in the Award Agreement; provided that notwithstanding the foregoing, an Award Agreement may provide that if the optionee’s Service Relationship is terminated for Cause, the Stock Option shall terminate immediately and be null and void upon the date of the optionee’s termination and shall not thereafter be exercisable.

 

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SECTION 6.                            RESTRICTED STOCK AWARDS

 

(a)                                 Nature of Restricted Stock Awards.  The Committee may, in its sole discretion, grant (or sell at par value or such other purchase price determined by the Committee) to an eligible individual under Section 4 hereof a Restricted Stock Award under the Plan.  The Committee shall determine the restrictions and conditions applicable to each Restricted Stock Award at the time of grant.  Conditions may be based on continuing employment (or other Service Relationship), achievement of pre-established performance goals and objectives and/or such other criteria as the Committee may determine.  Upon the grant of a Restricted Stock Award, the Company and the grantee shall enter into an Award Agreement.  The terms and conditions of each such Award Agreement shall be determined by the Committee, and such terms and conditions may differ among individual Awards and grantees.

 

(b)                                 Rights as a Stockholder.  Upon the grant of the Restricted Stock Award and payment of any applicable purchase price, a grantee of Restricted Stock shall be considered the record owner of and shall be entitled to vote the Restricted Stock if, and to the extent, such Shares are entitled to voting rights, subject to such conditions contained in the Award Agreement.  The grantee shall be entitled to receive all dividends and any other distributions declared on the Shares; provided, however, that the Company is under no duty to declare any such dividends or to make any such distribution.  Unless the Committee shall otherwise determine, certificates evidencing the Restricted Stock shall remain in the possession of the Company until such Restricted Stock is vested as provided in subsection (d) below of this Section, and the grantee shall be required, as a condition of the grant, to deliver to the Company a stock power endorsed in blank and such other instruments of transfer as the Committee may prescribe.

 

(c)                                  Restrictions.  Restricted Stock may not be sold, assigned, transferred, pledged or otherwise encumbered or disposed of except as specifically provided herein or in the Award Agreement.  Except as may otherwise be provided by the Committee either in the Award Agreement or, subject to Section 12 below, in writing after the Award Agreement is issued, if a grantee’s Service Relationship with the Company and any Subsidiary terminates, the Company or its assigns shall have the right, as may be specified in the relevant instrument, to repurchase some or all of the Shares subject to the Award at such purchase price as is set forth in the Award Agreement.

 

(d)                                 Vesting of Restricted Stock. The Committee at the time of grant shall specify in the Award Agreement the date or dates and/or the attainment of pre-established performance goals, objectives and other conditions on which the substantial risk of forfeiture imposed shall lapse and the Restricted Stock shall become vested, subject to such further rights of the Company or its assigns as may be specified in the Award Agreement.

 

SECTION 7.                            UNRESTRICTED STOCK AWARDS

 

The Committee may, in its sole discretion, grant (or sell at par value or such other purchase price determined by the Committee) to an eligible person under Section 4 hereof an Unrestricted Stock Award under the Plan.  Unrestricted Stock Awards may be granted in respect of past services or other valid consideration, or in lieu of cash compensation due to such grantee.

 

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SECTION 8.                            RESTRICTED STOCK UNITS

 

(a)                                 Nature of Restricted Stock Units.  The Committee may, in its sole discretion, grant to an eligible person under Section 4 hereof Restricted Stock Units under the Plan.  The Committee shall determine the restrictions and conditions applicable to each Restricted Stock Unit at the time of grant.  Vesting conditions may be based on continuing employment (or other Service Relationship), achievement of pre-established performance goals and objectives and/or other such criteria as the Committee may determine.  Upon the grant of Restricted Stock Units, the grantee and the Company shall enter into an Award Agreement.  The terms and conditions of each such Award Agreement shall be determined by the Committee and may differ among individual Awards and grantees.  On or promptly following the vesting date or dates applicable to any Restricted Stock Unit, but in no event later than March 15 of the year following the year in which such vesting occurs, such Restricted Stock Unit(s) shall be settled in the form of cash or shares of Stock, as specified in the Award Agreement.  Restricted Stock Units may not be sold, assigned, transferred, pledged, or otherwise encumbered or disposed of.

 

(b)                                 Rights as a Stockholder.  A grantee shall have the rights of a stockholder only as to Shares, if any, acquired upon settlement of Restricted Stock Units. A grantee shall not be deemed to have acquired any such Shares unless and until the Restricted Stock Units shall have been settled in Shares pursuant to the terms of the Plan and the Award Agreement, the Company shall have issued and delivered a certificate representing the Shares to the grantee (or transferred on the records of the Company with respect to uncertificated stock), and the grantee’s name has been entered in the books of the Company as a stockholder.

 

(c)                                  Termination.  Except as may otherwise be provided by the Committee either in the Award Agreement or in writing after the Award Agreement is issued, a grantee’s right in all Restricted Stock Units that have not vested shall automatically terminate upon the grantee’s cessation of Service Relationship with the Company and any Subsidiary for any reason.

 

SECTION 9.                            TRANSFER RESTRICTIONS; COMPANY RIGHT OF FIRST REFUSAL; COMPANY REPURCHASE RIGHTS

 

(a)                                 Restrictions on Transfer.

 

(i)                                     Non-Transferability of Stock Options.  Stock Options and, prior to exercise, the Shares issuable upon exercise of such Stock Option, shall not be transferable by the optionee otherwise than by will, or by the laws of descent and distribution, and all Stock Options shall be exercisable, during the optionee’s lifetime, only by the optionee, or by the optionee’s legal representative or guardian in the event of the optionee’s incapacity.  Notwithstanding the foregoing, the Committee, in its sole discretion, may provide in the Award Agreement regarding a given Stock Option that the optionee may transfer by gift, without consideration for the transfer, his or her Non-Qualified Stock Options to his or her family members (as defined in Rule 701 of the Securities Act), to trusts for the benefit of such family members, or to partnerships in which such family members are the only partners (to the extent such trusts or partnerships are considered “family members” for purposes of Rule 701 of the Securities Act), provided that the transferee agrees in writing with the Company to be bound by all of the terms and conditions of this Plan and the applicable Award Agreement, including the execution of a

 

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stock power upon the issuance of Shares.  Stock Options, and the Shares issuable upon exercise of such Stock Options, shall be restricted as to any pledge, hypothecation, or other transfer, including any short position, any “put equivalent position” (as defined in the Exchange Act) or any “call equivalent position” (as defined in the Exchange Act) prior to exercise.

 

(ii)                                  Shares.  No Shares shall be sold, assigned, transferred, pledged, hypothecated, given away or in any other manner disposed of or encumbered, whether voluntarily or by operation of law, unless (i) the transfer is in compliance with the terms of the applicable Award Agreement, all applicable securities laws (including, without limitation, the Securities Act), and with the terms and conditions of this Section 9, (ii) the transfer does not cause the Company to become subject to the reporting requirements of the Exchange Act, and (iii) the transferee consents in writing to be bound by the provisions of the Plan and the Award Agreement, including this Section 9.  In connection with any proposed transfer, the Committee may require the transferor to provide at the transferor’s own expense an opinion of counsel to the transferor, satisfactory to the Committee, that such transfer is in compliance with all foreign, federal and state securities laws (including, without limitation, the Securities Act).  Any attempted transfer of Shares not in accordance with the terms and conditions of this Section 9 shall be null and void, and the Company shall not reflect on its records any change in record ownership of any Shares as a result of any such transfer, shall otherwise refuse to recognize any such transfer and shall not in any way give effect to any such transfer of Shares.  The Company shall be entitled to seek protective orders, injunctive relief and other remedies available at law or in equity including, without limitation, seeking specific performance or the rescission of any transfer not made in strict compliance with the provisions of this Section 9.  Subject to the foregoing general provisions, and unless otherwise provided in the applicable Award Agreement, Shares may be transferred pursuant to the following specific terms and conditions (provided that with respect to any transfer of Restricted Stock, all vesting and forfeiture provisions shall continue to apply with respect to the original recipient):

 

(A)                               Transfers to Permitted Transferees.  The Holder may transfer any or all of the Shares to one or more Permitted Transferees; provided, however, that following such transfer, such Shares shall continue to be subject to the terms of this Plan (including this Section 9) and such Permitted Transferee(s) shall, as a condition to any such transfer, deliver a written acknowledgment to that effect to the Company and shall deliver a stock power to the Company with respect to the Shares.  Notwithstanding the foregoing, the Holder may not transfer any of the Shares to a Person whom the Company reasonably determines is a direct competitor or a potential competitor of the Company or any of its Subsidiaries.

 

(B)                               Transfers Upon Death.  Upon the death of the Holder, any Shares then held by the Holder at the time of such death and any Shares acquired after the Holder’s death by the Holder’s legal representative shall be subject to the provisions of this Plan, and the Holder’s estate, executors, administrators, personal representatives, heirs, legatees and distributees shall be obligated to convey such Shares to the Company or its assigns under the terms contemplated by the Plan and the Award Agreement.

 

(b)                                 Right of First Refusal.  In the event that a Holder desires at any time to sell or otherwise transfer all or any part of his or her Shares (other than shares of Restricted Stock

 

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which by their terms are not transferrable), the Holder first shall give written notice to the Company of the Holder’s intention to make such transfer.  Such notice shall state the number of Shares that the Holder proposes to sell (the “Offered Shares”), the price and the terms at which the proposed sale is to be made and the name and address of the proposed transferee.  At any time within 30 days after the receipt of such notice by the Company, the Company or its assigns may elect to purchase all or any portion of the Offered Shares at the price and on the terms offered by the proposed transferee and specified in the notice.  The Company or its assigns shall exercise this right by mailing or delivering written notice to the Holder within the foregoing 30-day period.  If the Company or its assigns elect to exercise its purchase rights under this Section 9(b), the closing for such purchase shall, in any event, take place within 45 days after the receipt by the Company of the initial notice from the Holder.  In the event that the Company or its assigns do not elect to exercise such purchase right, or in the event that the Company or its assigns do not pay the full purchase price within such 45-day period, the Holder may, within 60 days thereafter, sell the Offered Shares to the proposed transferee and at the same price and on the same terms as specified in the Holder’s notice.  Any Shares not sold to the proposed transferee shall remain subject to the Plan.  If the Holder is a party to any stockholders agreements or other agreements with the Company and/or certain other of the Company’s stockholders relating to the Shares, (i) the transferring Holder shall comply with the requirements of such stockholders agreements or other agreements relating to any proposed transfer of the Offered Shares, and (ii) any proposed transferee that purchases Offered Shares shall enter into such stockholders agreements or other agreements with the Company and/or certain of the Company’s stockholders relating to the Offered Shares on the same terms and in the same capacity as the transferring Holder.

 

(c)                                  Company’s Right of Repurchase.

 

(i)                                     Right of Repurchase for Unvested Shares Issued Upon the Exercise of an Option.  Upon a Termination Event, the Company or its assigns shall have the right and option to repurchase from a Holder of Shares acquired upon exercise of a Stock Option which are still subject to a risk of forfeiture as of the Termination Event.  Such repurchase rights may be exercised by the Company within the later of (A) six months following the date of such Termination Event or (B) seven months after the acquisition of Shares upon exercise of a Stock Option.  The repurchase price shall be equal to the lower of the original per share price paid by the Holder, subject to adjustment as provided in Section 3(b) of the Plan, or the current Fair Market Value of such Shares as of the date the Company elects to exercise its repurchase rights.

 

(ii)                                  Right of Repurchase With Respect to Restricted Stock.  Upon a Termination Event, the Company or its assigns shall have the right and option to repurchase from a Holder of Shares received pursuant to a Restricted Stock Award any Shares that are still subject to a risk of forfeiture as of the Termination Event.  Such repurchase right may be exercised by the Company within six months following the date of such Termination Event.  The repurchase price shall be the lower of the original per share purchase price paid by the Holder, subject to adjustment as provided in Section 3(b) of the Plan, or the current Fair Market Value of such Shares as of the date the Company elects to exercise its repurchase rights.

 

(iii)                               Procedure.  Any repurchase right of the Company shall be exercised by the Company or its assigns by giving the Holder written notice on or before the last day of the

 

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repurchase period of its intention to exercise such repurchase right.  Upon such notification, the Holder shall promptly surrender to the Company, free and clear of any liens or encumbrances, any certificates representing the Shares being purchased, together with a duly executed stock power for the transfer of such Shares to the Company or the Company’s assignee or assignees.  Upon the Company’s or its assignee’s receipt of the certificates from the Holder, the Company or its assignee or assignees shall deliver to him, her or them a check for the applicable repurchase price; provided, however, that the Company may pay the repurchase price by offsetting and canceling any indebtedness then owed by the Holder to the Company.

 

(d)                                 Drag Along Right.  In the event the holders of a majority of the Company’s equity securities then outstanding (the “Majority Shareholders”) determine to enter into a Sale Event in a bona fide negotiated transaction (a “Sale”), with any non-Affiliate of the Company or any majority shareholder (in each case, the “Buyer”), a Holder of Shares, including any Permitted Transferee, shall be obligated to and shall upon the written request of the Majority Shareholders:  (a) sell, transfer and deliver, or cause to be sold, transferred and delivered, to the Buyer, his or her Shares (including for this purpose all of such Holder’s Shares that presently or as a result of any such transaction may be acquired upon the exercise of an Option (following the payment of the exercise price therefor)) on substantially the same terms applicable to the Majority Shareholders (with appropriate adjustments to reflect the conversion of convertible securities, the redemption of redeemable securities and the exercise of exercisable securities as well as the relative preferences and priorities of preferred stock); and (b) execute and deliver such instruments of conveyance and transfer and take such other action, including voting such Shares in favor of any Sale proposed by the Majority Shareholders and executing any purchase agreements, merger agreements, indemnity agreements, escrow agreements or related documents as the Majority Shareholders or the Buyer may reasonably require in order to carry out the terms and provisions of this Section 9(d).

 

(e)                                  Escrow Arrangement.

 

(i)                                     Escrow.  In order to carry out the provisions of this Section 9 of this Plan more effectively, the Company shall hold any Shares issued pursuant to Awards granted under the Plan in escrow together with separate stock powers executed by the Holder in blank for transfer.  The Company shall not dispose of the Shares except as otherwise provided in this Plan.  In the event of any repurchase by the Company (or any of its assigns), the Company is hereby authorized by the Holder, as the Holder’s attorney-in-fact, to date and complete the stock powers necessary for the transfer of the Shares being purchased and to transfer such Shares in accordance with the terms hereof.  At such time as any Shares are no longer subject to the Company’s repurchase and first refusal rights, the Company shall, at the written request of the Holder, deliver to the Holder a certificate representing such Shares with the balance of the Shares to be held in escrow pursuant to this Section.

 

(ii)                                  Remedy.  Without limitation of any other provision of this Plan or other rights, in the event that a Holder or any other Person is required to sell a Holder’s Shares pursuant to the provisions of Sections 9(b) or (c) hereof and in the further event that he or she refuses or for any reason fails to deliver to the Company or its designated purchaser of such Shares the certificate or certificates evidencing such Shares together with a related stock power, the Company or such designated purchaser may deposit the applicable purchase price for such

 

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Shares with a bank designated by the Company, or with the Company’s independent public accounting firm, as agent or trustee, or in escrow, for such Holder or other Person, to be held by such bank or accounting firm for the benefit of and for delivery to him, her, them or it, and/or, in its discretion, pay such purchase price by offsetting any indebtedness then owed by such Holder as provided above.  Upon any such deposit and/or offset by the Company or its designated purchaser of such amount and upon notice to the Person who was required to sell the Shares to be sold pursuant to the provisions of Sections 9(b) or (c), such Shares shall at such time be deemed to have been sold, assigned, transferred and conveyed to such purchaser, such Holder shall have no further rights thereto (other than the right to withdraw the payment thereof held in escrow, if applicable), and the Company shall record such transfer in its stock transfer book or in any appropriate manner.

 

(f)                                   Lockup Provision.  If requested by the Company, a Holder shall not sell or otherwise transfer or dispose of any Shares (including, without limitation, pursuant to Rule 144 under the Securities Act) held by him or her for such period following the effective date of a public offering by the Company of Shares as the Company shall specify reasonably and in good faith.  If requested by the underwriter engaged by the Company, each Holder shall execute a separate letter confirming his or her agreement to comply with this Section.

 

(g)                                  Adjustments for Changes in Capital Structure.  If, as a result of any reorganization, recapitalization, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Common Stock, the outstanding Shares are increased or decreased or are exchanged for a different number or kind of securities of the Company, the restrictions contained in this Section 9 shall apply with equal force to additional and/or substitute securities, if any, received by Holder in exchange for, or by virtue of his or her ownership of, Shares.

 

(h)                                 Termination.  The terms and provisions of Section 9(b) and Section 9(c) (except for the Company’s right to repurchase Shares still subject to a risk of forfeiture upon a Termination Event) shall terminate upon the closing of the Company’s Initial Public Offering or upon consummation of any Sale Event, in either case as a result of which Shares are registered under Section 12 of the Exchange Act and publicly-traded on any national security exchange.

 

SECTION 10.                     TAX WITHHOLDING

 

(a)                                 Payment by Grantee.  Each grantee shall, no later than the date as of which the value of an Award or of any Shares or other amounts received thereunder first becomes includable in the gross income of the grantee for income tax purposes, pay to the Company, or make arrangements satisfactory to the Committee regarding payment of, any Federal, state, or local taxes of any kind required by law to be withheld by the Company with respect to such income.  The Company and any Subsidiary shall, to the extent permitted by law, have the right to deduct any such taxes from any payment of any kind otherwise due to the grantee.  The Company’s obligation to deliver stock certificates (or evidence of book entry) to any grantee is subject to and conditioned on any such tax withholding obligations being satisfied by the grantee.

 

(b)                                 Payment in Stock.  The Company’s minimum required tax withholding obligation may be satisfied, in whole or in part, by the Company withholding from Shares to be issued

 

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pursuant to an Award a number of Shares having an aggregate Fair Market Value (as of the date the withholding is effected) that would satisfy the minimum withholding amount due.

 

SECTION 11.                             SECTION 409A AWARDS.

 

To the extent that any Award is determined to constitute “nonqualified deferred compensation” within the meaning of Section 409A (a “409A Award”), the Award shall be subject to such additional rules and requirements as may be specified by the Committee from time to time.  In this regard, if any amount under a 409A Award is payable upon a “separation from service” (within the meaning of Section 409A) to a grantee who is considered a “specified employee” (within the meaning of Section 409A), then no such payment shall be made prior to the date that is the earlier of (i) six months and one day after the grantee’s separation from service, or (ii) the grantee’s death, but only to the extent such delay is necessary to prevent such payment from being subject to interest, penalties and/or additional tax imposed pursuant to Section 409A.  The Company makes no representation or warranty and shall have no liability to any grantee under the Plan or any other Person with respect to any penalties or taxes under Section 409A that are, or may be, imposed with respect to any Award.

 

SECTION 12.                     AMENDMENTS AND TERMINATION

 

The Board may, at any time, amend or discontinue the Plan and the Committee may, at any time, amend or cancel any outstanding Award for the purpose of satisfying changes in law or for any other lawful purpose, but no such action shall adversely affect rights under any outstanding Award without the consent of the holder of the Award.  The Committee may exercise its discretion to reduce the exercise price of outstanding Stock Options or effect repricing through cancellation of outstanding Stock Options and by granting such holders new Awards in replacement of the cancelled Stock Options.  To the extent determined by the Committee to be required either by the Code to ensure that Incentive Stock Options granted under the Plan are qualified under Section 422 of the Code or otherwise, Plan amendments shall be subject to approval by the Company stockholders entitled to vote at a meeting of stockholders.  Nothing in this Section 12 shall limit the Board’s or Committee’s authority to take any action permitted pursuant to Section 3(c).  The Board reserves the right to amend the Plan and/or the terms of any outstanding Stock Options to the extent reasonably necessary to comply with the requirements of the exemption pursuant to paragraph (f)(4) of Rule 12h-1 of the Exchange Act.

 

SECTION 13.                     STATUS OF PLAN

 

With respect to the portion of any Award that has not been exercised and any payments in cash, Stock or other consideration not received by a grantee, a grantee shall have no rights greater than those of a general creditor of the Company unless the Committee shall otherwise expressly so determine in connection with any Award.

 

SECTION 14.                     GENERAL PROVISIONS

 

(a)                                 No Distribution; Compliance with Legal Requirements. The Committee may require each person acquiring Shares pursuant to an Award to represent to and agree with the Company in writing that such person is acquiring the Shares without a view to distribution thereof.  No Shares shall be issued pursuant to an Award until all applicable securities law and

 

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other legal and stock exchange or similar requirements have been satisfied.  The Committee may require the placing of such stop-orders and restrictive legends on certificates for Stock and Awards as it deems appropriate.

 

(b)                                 Delivery of Stock Certificates.  Stock certificates to grantees under the Plan shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have mailed such certificates in the United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company; provided that stock certificates to be held in escrow pursuant to Section 9 of the Plan shall be deemed delivered when the Company shall have recorded the issuance in its records.  Uncertificated Stock shall be deemed delivered for all purposes when the Company or a stock transfer agent of the Company shall have given to the grantee by electronic mail (with proof of receipt) or by United States mail, addressed to the grantee, at the grantee’s last known address on file with the Company, notice of issuance and recorded the issuance in its records (which may include electronic “book entry” records).

 

(c)                                  No Employment Rights.  The adoption of the Plan and the grant of Awards do not confer upon any Person any right to continued employment or Service Relationship with the Company or any Subsidiary.

 

(d)                                 Trading Policy Restrictions.  Option exercises and other Awards under the Plan shall be subject to the Company’s insider trading policy-related restrictions, terms and conditions as may be established by the Committee, or in accordance with policies set by the Committee, from time to time.

 

(e)                                  Designation of Beneficiary.  Each grantee to whom an Award has been made under the Plan may designate a beneficiary or beneficiaries to exercise any Award on or after the grantee’s death or receive any payment under any Award payable on or after the grantee’s death.  Any such designation shall be on a form provided for that purpose by the Committee and shall not be effective until received by the Committee.  If no beneficiary has been designated by a deceased grantee, or if the designated beneficiaries have predeceased the grantee, the beneficiary shall be the grantee’s estate.

 

(f)                                   Legend.  Any certificate(s) representing the Shares shall carry substantially the following legend (and with respect to uncertificated Stock, the book entries evidencing such shares shall contain the following notation):

 

The transferability of this certificate and the shares of stock represented hereby are subject to the restrictions, terms and conditions (including repurchase and restrictions against transfers) contained in the Carbon Black, Inc. 2012 Stock Option and Grant Plan and any agreements entered into thereunder by and between the company and the holder of this certificate (a copy of which is available at the offices of the company for examination).

 

(g)                                  Information to Holders of Options.  In the event the Company is relying on the exemption from the registration requirements of Section 12(g) of the Exchange Act contained in

 

19

 

paragraph (f)(1) of Rule 12h-1 of the Exchange Act, the Company shall provide the information described in Rule 701(e)(3), (4) and (5) of the Securities Act to all holders of Options in accordance with the requirements thereunder.  The foregoing notwithstanding, the Company shall not be required to provide such information unless the optionholder has agreed in writing, on a form prescribed by the Company, to keep such information confidential.

 

SECTION 15.                     EFFECTIVE DATE OF PLAN

 

The Plan shall become effective upon adoption by the Board and shall be approved by stockholders in accordance with applicable state law and the Company’s articles of incorporation and bylaws within 12 months thereafter.  If the stockholders fail to approve the Plan within 12 months after its adoption by the Board of Directors, then any Awards granted or sold under the Plan shall be rescinded and no additional grants or sales shall thereafter be made under the Plan.  Subject to such approval by stockholders and to the requirement that no Shares may be issued hereunder prior to such approval, Stock Options and other Awards may be granted hereunder on and after adoption of the Plan by the Board.  No grants of Stock Options and other Awards may be made hereunder after the tenth anniversary of the date the Plan is adopted by the Board or the date the Plan is approved by the Company’s stockholders, whichever is earlier.

 

SECTION 16.                     GOVERNING LAW

 

This Plan, all Awards and any controversy arising out of or relating to this Plan and all Awards shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

	
DATE ADOPTED BY THE BOARD OF DIRECTORS:
    	
 
    	
July 11, 2012
    
	
 
    	
 
    	
 
    
	
DATE APPROVED BY THE STOCKHOLDERS:
    	
 
    	
July 12, 2012
    

 

20

 

INCENTIVE STOCK OPTION GRANT NOTICE

UNDER THE CARBON BLACK, INC.
 2012 STOCK OPTION AND GRANT PLAN

 

Pursuant to the Carbon Black, Inc. 2012 Stock Option and Grant Plan (the “Plan”), Carbon Black, Inc., a Delaware corporation (together with any successor, the “Company”), has granted to the individual named below, an option (the “Stock Option”) to purchase on or prior to the Expiration Date, or such earlier date as is specified herein, all or any part of the number of shares of Common Stock, par value $0.001 per share (“Common Stock”), of the Company indicated below (the “Shares”), at the Option Exercise Price per share, subject to the terms and conditions set forth in this Incentive Stock Option Grant Notice (the “Grant Notice”), the attached Incentive Stock Option Agreement (the “Agreement”) and the Plan.  This Stock Option is intended to qualify as an “incentive stock option” as defined in Section 422(b) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).  To the extent that any portion of the Stock Option does not so qualify, it shall be deemed a non-qualified stock option.

 

	
Name of Optionee:
    	
 
    	
                            (the “Optionee”)
    
	
 
    	
 
    	
 
    
	
No. of Shares:
    	
 
    	
                            Shares of Common Stock
    
	
 
    	
 
    	
 
    
	
Grant Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Grant Number:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Vesting Commencement Date:
    	
 
    	
                            (the “Vesting Commencement Date”)
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
                            (the “Expiration Date”)
    
	
 
    	
 
    	
 
    
	
Option Exercise   Price/Share:
    	
 
    	
                       (the “Option Exercise Price”)
    
	
 
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
[  ] percent   of the Shares shall vest and become exercisable on the first anniversary of   the Vesting Commencement Date; provided that the Optionee continues to have a   Service Relationship with the Company at such time.   Thereafter, the remaining [  ] percent of the Shares shall vest and   become exercisable in [  ] equal   monthly installments following the first anniversary of the Vesting   Commencement Date, provided the Optionee continues to have a Service   Relationship with the Company at such time.    Notwithstanding anything in the Agreement to the contrary, in the case   of a Sale Event, this Stock Option and the Shares shall be treated as   provided in Section 3(c) of the Plan.
    
	
 
    	
 
    	
 
    
	
Attachments:   Incentive Stock Option Agreement, 2012 Stock Option and Grant Plan
    

 

 

INCENTIVE STOCK OPTION AGREEMENT
 UNDER THE CARBON BLACK, INC.
 2012 STOCK OPTION AND GRANT PLAN

 

All capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Grant Notice and the Plan.

 

1.             Vesting, Exercisability and Termination.

 

(a)           No portion of this Stock Option may be exercised until such portion shall have vested and become exercisable.

 

(b)           Except as set forth below, and subject to the determination of the Committee in its sole discretion to accelerate the vesting schedule hereunder, this Stock Option shall be vested and exercisable on the respective dates indicated below:

 

(i)            This Stock Option shall initially be unvested and unexercisable.

 

(ii)           This Stock Option shall vest and become exercisable in accordance with the Vesting Schedule set forth in the Grant Notice.

 

(c)           Termination.  Except as may otherwise be provided by the Committee, if the Optionee’s Service Relationship is terminated, the period within which to exercise this Stock Option will be subject to earlier termination as set forth below (and if not exercised within such period, shall thereafter terminate subject, in each case, to Section 3(c) of the Plan):

 

(i)            Termination Due to Death or Disability.  If the Optionee’s Service Relationship terminates by reason of such Optionee’s death or Disability, this Stock Option may be exercised, to the extent exercisable on the date of such termination, by the Optionee, the Optionee’s legal representative or legatee for a period of 12 months from the date of death or Disability or until the Expiration Date, if earlier.

 

(ii)           Other Termination.  If the Optionee’s Service Relationship terminates for any reason other than death or Disability, and unless otherwise determined by the Committee, this Stock Option may be exercised, to the extent exercisable on the date of termination, for a period of 90 days from the date of termination or until the Expiration Date, if earlier; provided however, if the Optionee’s Service Relationship is terminated for Cause, this Stock Option shall terminate immediately upon the date of such termination.

 

For purposes hereof, the Committee’s determination of the reason for termination of the Optionee’s Service Relationship shall be conclusive and binding on the Optionee and his or her representatives or legatees.  Any portion of this Stock Option that is not vested and exercisable on the date of termination of the Service Relationship shall terminate immediately and be null and void.

 

2

 

(d)           It is understood and intended that this Stock Option is intended to qualify as an “incentive stock option” as defined in Section 422 of the Code to the extent permitted under applicable law.  Accordingly, the Optionee understands that in order to obtain the benefits of an incentive stock option under Section 422 of the Code, no sale or other disposition may be made of Shares for which incentive stock option treatment is desired within the one-year period beginning on the day after the day of the transfer of such Shares to him or her, nor within the two-year period beginning on the day after Grant Date of this Stock Option and further that this Stock Option must be exercised within three months after termination of employment as an employee (or 12 months in the case of death or disability) to qualify as an incentive stock option.  If the Optionee disposes (whether by sale, gift, transfer or otherwise) of any such Shares within either of these periods, he or she will notify the Company within 30 days after such disposition.  The Optionee also agrees to provide the Company with any information concerning any such dispositions required by the Company for tax purposes.  Further, to the extent this Stock Option and any other incentive stock options of the Optionee having an aggregate Fair Market Value in excess of $100,000 (determined as of the Grant Date) first become exercisable in any year, such options will not qualify as incentive stock options.

 

2.             Exercise of Stock Option.

 

(a)           The Optionee may exercise this Stock Option only in the following manner:  Prior to the Expiration Date, the Optionee may deliver a Stock Option exercise notice (an “Exercise Notice”) in the form of Appendix A hereto indicating his or her election to purchase some or all of the Shares with respect to which this Stock Option is then exercisable.  Such notice shall specify the number of Shares to be purchased.  Payment of the purchase price may be made by one or more of the methods described in Section 5 of the Plan, subject to the limitations contained in such Section of the Plan, including the requirement that the Committee specifically approve in advance certain payment methods.

 

(b)           Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date.

 

3.             Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan.

 

4.             Transferability of Stock Option.  This Stock Option is personal to the Optionee and is not transferable by the Optionee in any manner other than by will or by the laws of descent and distribution.  The Stock Option may be exercised during the Optionee’s lifetime only by the Optionee (or by the Optionee’s guardian or personal representative in the event of the Optionee’s incapacity).  The Optionee may elect to designate a beneficiary by providing written notice of the name of such beneficiary to the Company, and may revoke or change such designation at any time by filing written notice of revocation or change with the Company; such beneficiary may exercise the Optionee’s Stock Option in the event of the Optionee’s death to the extent provided herein.  If the Optionee does not designate a beneficiary, or if the designated beneficiary predeceases the Optionee, the legal representative of the Optionee may exercise this Stock Option to the extent provided herein in the event of the Optionee’s death.

 

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5.             Restrictions on Transfer of Shares.  The Shares acquired upon exercise of the Stock Option shall be subject to certain transfer restrictions and other limitations including, without limitation, the provisions contained in Section 9 of the Plan and the Second Amended and Restated By-Laws of the Company, as amended and in effect (the “Bylaws”).  The Shares acquired upon exercise of the Stock Option and all other shares of the Company’s Common Stock, par value $0.001 per share, Series A Preferred Stock, par value $0.001 per share, and Series E-1 Preferred Stock, par value $0.001 per share, currently owned by the Optionee, or that the Optionee may acquire in the future (collectively, “Owned Shares”), may not be sold, assigned, transferred, pledged, encumbered or in any manner disposed of except in compliance with the Company’s Second Amended and Restated By-Laws, as amended and in effect (the “Bylaws”). Certificates representing Owned Shares will bear restrictive legends reflecting the foregoing and/or that book entries for uncertificated Owned Shares will include similar restrictive notations. The Optionee acknowledges that a copy of the Bylaws has been made available to the Optionee.

 

6.             Miscellaneous Provisions.

 

(a)           Equitable Relief.  The parties hereto agree and declare that legal remedies may be inadequate to enforce the provisions of this Agreement and that equitable relief, including specific performance and injunctive relief, may be used to enforce the provisions of this Agreement.

 

(b)           Adjustments for Changes in Capital Structure.  If, as a result of any reorganization, recapitalization, reincorporation, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Common Stock, the outstanding shares of Common Stock are increased or decreased or are exchanged for a different number or kind of securities of the Company, the restrictions contained in this Agreement shall apply with equal force to additional and/or substitute securities, if any, received by the Optionee in exchange for, or by virtue of his or her ownership of, this Stock Option or Shares acquired pursuant thereto.

 

(c)           Change and Modifications.  This Agreement may not be orally changed, modified or terminated, nor shall any oral waiver of any of its terms be effective.  This Agreement may be changed, modified or terminated only by an agreement in writing signed by the Company and the Optionee.

 

(d)           Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

(e)           Headings.  The headings are intended only for convenience in finding the subject matter and do not constitute part of the text of this Agreement and shall not be considered in the interpretation of this Agreement.

 

(f)            Saving Clause.  If any provision(s) of this Agreement shall be determined to be illegal or unenforceable, such determination shall in no manner affect the legality or enforceability of any other provision hereof.

 

4

 

(g)           Notices.  All notices, requests, consents and other communications shall be in writing and be deemed given when delivered personally, by telex or facsimile transmission or when received if mailed by first class registered or certified mail, postage prepaid.  Notices to the Company or the Optionee shall be addressed as set forth underneath their signatures below, or to such other address or addresses as may have been furnished by such party in writing to the other.

 

(h)           Benefit and Binding Effect.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective successors, assigns, and legal representatives.  The Company has the right to assign this Agreement, and such assignee shall become entitled to all the rights of the Company hereunder to the extent of such assignment.

 

(i)            Counterparts.  For the convenience of the parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document.

 

(j)            Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Stock Option and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

7.             Dispute Resolution.

 

(a)           Except as provided below, any dispute arising out of or relating to the Plan or this Stock Option, this Agreement, or the breach, termination or validity of the Plan, this Stock Option or this Agreement, shall be finally settled by binding arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute Comprehensive Arbitration Rules and Procedures (the “J.A.M.S. Rules”).  The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. Sections 1 16, and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof.  The place of arbitration shall be Boston, Massachusetts.

 

(b)           The arbitration shall commence within 60 days of the date on which a written demand for arbitration is filed by any party hereto.  In connection with the arbitration proceeding, the arbitrator shall have the power to order the production of documents by each party and any third-party witnesses.  In addition, each party may take up to three depositions as of right, and the arbitrator may in his or her discretion allow additional depositions upon good cause shown by the moving party.  However, the arbitrator shall not have the power to order the answering of interrogatories or the response to requests for admission.  In connection with any arbitration, each party to the arbitration shall provide to the other, no later than seven business days before the date of the arbitration, the identity of all persons that may testify at the arbitration and a copy of all documents that may be introduced at the arbitration or considered or used by a party’s witness or expert.  The arbitrator’s decision and award shall be made and delivered within six months of the selection of the arbitrator.  The arbitrator’s decision shall set forth a reasoned basis for any award of damages or finding of liability.  The arbitrator shall not have power to award damages in excess of actual compensatory damages and shall not multiply actual damages or award punitive damages, and each party hereby irrevocably waives any claim to such damages.

 

5

 

(c)           The Company, the Optionee, each party to the Agreement and any other holder of Shares issued pursuant to this Agreement (each, a “Party”) covenants and agrees that such party will participate in the arbitration in good faith.  This Section 7 applies equally to requests for temporary, preliminary or permanent injunctive relief, except that in the case of temporary or preliminary injunctive relief any party may proceed in court without prior arbitration for the limited purpose of avoiding immediate and irreparable harm.

 

(d)           Each Party (i) hereby irrevocably submits to the jurisdiction of any United States District Court of competent jurisdiction for the purpose of enforcing the award or decision in any such proceeding, (ii) hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above named courts, that its property is exempt or immune from attachment or execution (except as protected by applicable law), that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court, and (iii) hereby waives and agrees not to seek any review by any court of any other jurisdiction which may be called upon to grant an enforcement of the judgment of any such court.  Each Party hereby consents to service of process by registered mail at the address to which notices are to be given.  Each Party agrees that its, his or her submission to jurisdiction and its, his or her consent to service of process by mail is made for the express benefit of each other Party.  Final judgment against any Party in any such action, suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding on the judgment, or in any other manner provided by or pursuant to the laws of such other jurisdiction.

 

8.             Data Privacy.  In order to implement, administer and manage Optionee’s participation in the Plan (“Purpose”), the Optionee’s personal data (“Data”) as described in this Agreement and any other Stock Option grant, materials may be collected, used and transferred by and among the Company, any Subsidiary of the Company or to a third party stock plan service provider (“Parties”).  The Optionee hereby expressly consents to the collection, use and transfer of  Optionee’s Data to the United States or elsewhere by the Parties for such Purpose.  The Optionee 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 Optionee’s local human resources representative.  The Optionee understands that refusing or withdrawing his or her consent may affect the Optionee’s ability to participate in the Plan.

 

9.             Waiver of Statutory Information Rights.  The Optionee understands and agrees that, but for the waiver made herein, the Optionee would be entitled, upon written demand under oath stating the purpose thereof, to inspect for any proper purpose, and to make copies and extracts from, the Company’s stock ledger, a list of its stockholders, and its other books and records, and the books and records of subsidiaries of the Company, if any, under the circumstances and in the manner provided in Section 220 of the General Corporation Law of Delaware (any and all such rights, and any and all such other rights of the Optionee as may be provided for in Section 220, the “Inspection Rights”). In light of the foregoing, until the first sale of Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act, the

 

6

 

Optionee hereby unconditionally and irrevocably waives the Inspection Rights, whether such Inspection Rights would be exercised or pursued directly or indirectly pursuant to Section 220 or otherwise, and covenants and agrees never to directly or indirectly commence, voluntarily aid in any way, prosecute, assign, transfer, or cause to be commenced any claim, action, cause of action, or other proceeding to pursue or exercise the Inspection Rights. The foregoing waiver shall not affect any rights of a director, in his or her capacity as such, under Section 220. The foregoing waiver shall not apply to any contractual inspection rights of the Optionee under any other written agreement between the Optionee and the Company.

 

[SIGNATURE PAGE FOLLOWS]

 

7

 

The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned as of the date first above written.

 

	
 
    	
CARBON   BLACK, INC.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

The undersigned hereby acknowledges receiving and reviewing a copy of the Plan, including, without limitation, Section 9 thereof, and understands that this Stock Option is subject to the terms of the Plan and of this Agreement.  This Agreement is hereby accepted, and the terms and conditions of the Plan, the Grant Notice and this Agreement, SPECIFICALLY INCLUDING THE RESTRICTIONS ON TRANSFER IMPOSED BY THE BYLAWS, THE RESTRICTIONS ON TRANSFER IMPOSED BY SECTION 5 OF THIS AGREEMENT, THE ARBITRATION PROVISIONS SET FORTH IN SECTION 7 OF THIS AGREEMENT AND THE WAIVER OF STATUTORY INFORMATION RIGHTS SET FORTH IN SECTION 9 OF THIS AGREEMENT, are hereby agreed to, by the undersigned as of the date first above written.

 

	
 
    	
OPTIONEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

Grant Number

 

8

 

[SPOUSE’S CONSENT(1)

I acknowledge that I have read the

foregoing Incentive Stock Option Agreement

and understand the contents thereof.

 

 

]

 

(1)  A spouse’s consent is recommended only if the Optionee’s state of residence is one of the following community property states:  Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

 

9

 

	
 
    	
DESIGNATED BENEFICIARY:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Beneficiary’s Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

10

 

Appendix A

 

STOCK OPTION EXERCISE NOTICE

 

Carbon Black, Inc.

1100 Winter Street

Waltham, MA 02451
 Attention: Chief Financial Officer

 

Pursuant to the terms of the grant notice and stock option agreement between the undersigned and Carbon Black, Inc., a Delaware corporation (the “Company”), dated            (the “Agreement”) under the Carbon Black, Inc. 2012 Stock Option and Grant Plan, I, [Insert Name]                 , hereby [Circle One] partially/fully exercise such option by including herein payment in the amount of $       representing the purchase price for [Fill in number of Shares]         Shares.  I have chosen the following form(s) of payment:

 

o            1.             Cash

o            2.             Certified or bank check payable to Carbon Black, Inc.

o            3.             Other (as referenced in the Agreement and described in the Plan (please describe))                                                                                                    .

 

In connection with my exercise of the option as set forth above, I hereby represent and warrant to the Company as follows:

 

(i)            I am purchasing the Shares for my own account for investment only, and not for resale or with a view to the distribution thereof.

 

(ii)           I have had such an opportunity as I have deemed adequate to obtain from the Company such information as is necessary to permit me to evaluate the merits and risks of my investment in the Company and have consulted with my own advisers with respect to my investment in the Company.

 

(iii)          I have sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the purchase of the Shares and to make an informed investment decision with respect to such purchase.

 

(iv)          I can afford a complete loss of the value of the Shares and am able to bear the economic risk of holding such Shares for an indefinite period of time.

 

(v)           I understand that the Shares may not be registered under the Securities Act of 1933 (it being understood that the Shares are being issued and sold in reliance on the exemption provided in Rule 701 thereunder) or any applicable state securities or “blue sky” laws and may not be sold or otherwise transferred or disposed of in the absence of an effective registration statement under the Securities Act of 1933 and

 

11

 

under any applicable state securities or “blue sky” laws (or exemptions from the registration requirement thereof).  I further acknowledge that certificates representing Shares will bear restrictive legends reflecting the foregoing and/or that book entries for uncertificated Shares will include similar restrictive notations.

 

(vi)          I have read and understand the Plan and acknowledge and agree that the Shares are subject to all of the relevant terms of the Plan, including without limitation, the transfer restrictions set forth in Section 9 of the Plan.

 

(vii)         I understand and agree that the Company has a right of first refusal with respect to the Shares pursuant to Section 9(b) of the Plan.

 

(viii)        I understand and agree that the Company has certain repurchase rights with respect to the Shares pursuant to Section 9(c) of the Plan.

 

(ix)          I understand and agree that I may not sell or otherwise transfer or dispose of the Shares for a period of time following the effective date of a public offering by the Company as described in Section 9(f) of the Plan.

 

(x)           I understand and agree that, but for the waiver made herein and in the Agreement, I would be entitled, upon written demand under oath stating the purpose thereof, to inspect for any proper purpose, and to make copies and extracts from, the Company’s stock ledger, a list of its stockholders, and its other books and records, and the books and records of subsidiaries of the Company, if any, under the circumstances and in the manner provided in Section 220 of the General Corporation Law of Delaware (any and all such rights, and any and all such other rights as I may be provided under Section 220, the “Inspection Rights”). In light of the foregoing, until the first sale of Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act, I hereby unconditionally and irrevocably waive the Inspection Rights, whether such Inspection Rights would be exercised or pursued directly or indirectly pursuant to Section 220 or otherwise, and covenant and agree never to directly or indirectly commence, voluntarily aid in any way, prosecute, assign, transfer, or cause to be commenced any claim, action, cause of action, or other proceeding to pursue or exercise the Inspection Rights. The foregoing waiver shall not affect any rights of a director, in his or her capacity as such, under Section 220. The foregoing waiver shall not apply to any of my contractual inspection rights under any other written agreement between me and the Company.

 

(xi)          I understand and agree that the Shares and all other shares of the Company’s Common Stock, par value $0.001 per share, Series A Preferred Stock, par value $0.001 per share, and Series E-1 Preferred Stock, par value $0.001 per share, that I currently own, or that I may acquire in the future (collectively, “Owned Shares”), may not be sold, assigned, transferred, pledged, encumbered or in any manner disposed of except in compliance with the Company’s Second Amended and Restated By-Laws, as amended and in effect (the “Bylaws”). I further acknowledge and agree that (a) certificates representing Owned Shares will bear restrictive legends reflecting the

 

12

 

foregoing and/or that book entries for uncertificated Owned Shares will include similar restrictive notations and (b) a copy of the Bylaws has been made available to me.

 

	
 
    	
Sincerely yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

13

 

NON-QUALIFIED STOCK OPTION GRANT NOTICE

UNDER THE CARBON BLACK, INC.
 2012 STOCK OPTION AND GRANT PLAN

 

Pursuant to the Carbon Black, Inc. 2012 Stock Option and Grant Plan (the “Plan”), Carbon Black, Inc., a Delaware corporation (together with any successor, the “Company”), has granted to the individual named below, an option (the “Stock Option”) to purchase on or prior to the Expiration Date, or such earlier date as is specified herein, all or any part of the number of shares of Common Stock, par value $0.001 per share (“Common Stock”), of the Company indicated below (the “Shares”), at the Option Exercise Price per share, subject to the terms and conditions set forth in this Non-Qualified Stock Option Grant Notice (the “Grant Notice”), the attached Non-Qualified Stock Option Agreement (the “Agreement”) and the Plan.  This Stock Option is not intended to qualify as an “incentive stock option” as defined in Section 422(b) of the Internal Revenue Code of 1986, as amended from time to time (the “Code”).

 

	
Name of Optionee:
    	
 
    	
                             (the “Optionee”)
    
	
 
    	
 
    	
 
    
	
No. of Shares:
    	
 
    	
                             Shares of Common Stock
    
	
 
    	
 
    	
 
    
	
Grant Date:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Grant Number:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
Vesting Commencement Date:
    	
 
    	
                             (the “Vesting Commencement Date”)
    
	
 
    	
 
    	
 
    
	
Expiration Date:
    	
 
    	
                             (the “Expiration Date”)
    
	
 
    	
 
    	
 
    
	
Option Exercise   Price/Share:
    	
 
    	
                  (the “Option Exercise Price”)
    
	
 
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
[  ] percent   of the Shares shall vest and become exercisable on the first anniversary of   the Vesting Commencement Date; provided that the Optionee continues to have a   Service Relationship with the Company at such time.   Thereafter, the remaining [  ] percent of the Shares shall vest and   become exercisable in [  ] equal   monthly installments following the first anniversary of the Vesting   Commencement Date, provided the Optionee continues to have a Service Relationship   with the Company at such time.    Notwithstanding anything in the Agreement to the contrary, in the case   of a Sale Event, this Stock Option and the Shares shall be treated as   provided in Section 3(c) of the Plan.
    
	
 
    	
 
    	
 
    
	
Attachments:   Non-Qualified Stock Option Agreement, 2012 Stock Option and Grant Plan
    

 

14

 

NON-QUALIFIED STOCK OPTION AGREEMENT
 UNDER THE CARBON BLACK, INC.
 2012 STOCK OPTION AND GRANT PLAN

 

All capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Grant Notice and the Plan.

 

1.             Vesting, Exercisability and Termination.

 

(a)           No portion of this Stock Option may be exercised until such portion shall have vested and become exercisable.

 

(b)           Except as set forth below, and subject to the determination of the Committee in its sole discretion to accelerate the vesting schedule hereunder, this Stock Option shall be vested and exercisable on the respective dates indicated below:

 

(i)            This Stock Option shall initially be unvested and unexercisable.

 

(ii)           This Stock Option shall vest and become exercisable in accordance with the Vesting Schedule set forth in the Grant Notice.

 

(c)           Termination.  Except as may otherwise be provided by the Committee, if the Optionee’s Service Relationship is terminated, the period within which to exercise this Stock Option will be subject to earlier termination as set forth below (and if not exercised within such period, shall thereafter terminate subject, in each case, to Section 3(c) of the Plan):

 

(i)            Termination Due to Death or Disability.  If the Optionee’s Service Relationship terminates by reason of such Optionee’s death or Disability, this Stock Option may be exercised, to the extent exercisable on the date of such termination, by the Optionee, the Optionee’s legal representative or legatee for a period of 12 months from the date of death or Disability or until the Expiration Date, if earlier.

 

(ii)           Other Termination.  If the Optionee’s Service Relationship terminates for any reason other than death or Disability, and unless otherwise determined by the Committee, this Stock Option may be exercised, to the extent exercisable on the date of termination, for a period of 90 days from the date of termination or until the Expiration Date, if earlier; provided however, if the Optionee’s Service Relationship is terminated for Cause, this Stock Option shall terminate immediately upon the date of such termination.

 

For purposes hereof, the Committee’s determination of the reason for termination of the Optionee’s Service Relationship shall be conclusive and binding on the Optionee and his or her representatives or legatees and any Permitted Transferee.  Any portion of this Stock Option that is not vested and exercisable on the date of termination of the Service Relationship shall terminate immediately and be null and void.

 

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2.             Exercise of Stock Option.

 

(a)           The Optionee may exercise this Stock Option only in the following manner:  Prior to the Expiration Date, the Optionee may deliver a Stock Option exercise notice (an “Exercise Notice”) in the form of Appendix A hereto indicating his or her election to purchase some or all of the Shares with respect to which this Stock Option is then exercisable.  Such notice shall specify the number of Shares to be purchased.  Payment of the purchase price may be made by one or more of the methods described in Section 5 of the Plan, subject to the limitations contained in such Section of the Plan, including the requirement that the Committee specifically approve in advance certain payment methods.

 

(b)           Notwithstanding any other provision hereof or of the Plan, no portion of this Stock Option shall be exercisable after the Expiration Date.

 

3.             Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Stock Option shall be subject to and governed by all the terms and conditions of the Plan.

 

4.             Transferability of Stock Option.  This Stock Option is personal to the Optionee and is not transferable by the Optionee in any manner other than by will or by the laws of descent and distribution.  The Stock Option may be exercised during the Optionee’s lifetime only by the Optionee (or by the Optionee’s guardian or personal representative in the event of the Optionee’s incapacity).  The Optionee may elect to designate a beneficiary by providing written notice of the name of such beneficiary to the Company, and may revoke or change such designation at any time by filing written notice of revocation or change with the Company; such beneficiary may exercise the Optionee’s Stock Option in the event of the Optionee’s death to the extent provided herein.  If the Optionee does not designate a beneficiary, or if the designated beneficiary predeceases the Optionee, the legal representative of the Optionee may exercise this Stock Option to the extent provided herein in the event of the Optionee’s death.

 

5.             Restrictions on Transfer of Shares.  The Shares acquired upon exercise of the Stock Option shall be subject to certain transfer restrictions and other limitations including, without limitation, the provisions contained in Section 9 of the Plan and the Second Amended and Restated By-Laws of the Company, as amended and in effect (the “Bylaws”).  The Shares acquired upon exercise of the Stock Option and all other shares of the Company’s Common Stock, par value $0.001 per share, Series A Preferred Stock, par value $0.001 per share, and Series E-1 Preferred Stock, par value $0.001 per share, currently owned by the Optionee, or that the Optionee may acquire in the future (collectively, “Owned Shares”), may not be sold, assigned, transferred, pledged, encumbered or in any manner disposed of except in compliance with the Company’s Second Amended and Restated By-Laws, as amended and in effect (the “Bylaws”). Certificates representing Owned Shares will bear restrictive legends reflecting the foregoing and/or that book entries for uncertificated Owned Shares will include similar restrictive notations. The Optionee acknowledges that a copy of the Bylaws has been made available to the Optionee.

 

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6.             Miscellaneous Provisions.

 

(a)           Equitable Relief.  The parties hereto agree and declare that legal remedies may be inadequate to enforce the provisions of this Agreement and that equitable relief, including specific performance and injunctive relief, may be used to enforce the provisions of this Agreement.

 

(b)           Adjustments for Changes in Capital Structure.  If, as a result of any reorganization, recapitalization, reincorporation, reclassification, stock dividend, stock split, reverse stock split or other similar change in the Common Stock, the outstanding shares of Common Stock are increased or decreased or are exchanged for a different number or kind of securities of the Company, the restrictions contained in this Agreement shall apply with equal force to additional and/or substitute securities, if any, received by the Optionee in exchange for, or by virtue of his or her ownership of, this Stock Option or Shares acquired pursuant thereto.

 

(c)           Change and Modifications.  This Agreement may not be orally changed, modified or terminated, nor shall any oral waiver of any of its terms be effective.  This Agreement may be changed, modified or terminated only by an agreement in writing signed by the Company and the Optionee.

 

(d)           Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

(e)           Headings.  The headings are intended only for convenience in finding the subject matter and do not constitute part of the text of this Agreement and shall not be considered in the interpretation of this Agreement.

 

(f)            Saving Clause.  If any provision(s) of this Agreement shall be determined to be illegal or unenforceable, such determination shall in no manner affect the legality or enforceability of any other provision hereof.

 

(g)           Notices.  All notices, requests, consents and other communications shall be in writing and be deemed given when delivered personally, by telex or facsimile transmission or when received if mailed by first class registered or certified mail, postage prepaid.  Notices to the Company or the Optionee shall be addressed as set forth underneath their signatures below, or to such other address or addresses as may have been furnished by such party in writing to the other.

 

(h)           Benefit and Binding Effect.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective successors, assigns, and legal representatives.  The Company has the right to assign this Agreement, and such assignee shall become entitled to all the rights of the Company hereunder to the extent of such assignment.

 

(i)            Counterparts.  For the convenience of the parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document.

 

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(j)            Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Stock Option and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

7.             Dispute Resolution.

 

(a)           Except as provided below, any dispute arising out of or relating to the Plan or this Stock Option, this Agreement, or the breach, termination or validity of the Plan, this Stock Option or this Agreement, shall be finally settled by binding arbitration conducted expeditiously in accordance with the J.A.M.S./Endispute Comprehensive Arbitration Rules and Procedures (the “J.A.M.S. Rules”).  The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. Sections 1-16, and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof.  The place of arbitration shall be Boston, Massachusetts.

 

(b)           The arbitration shall commence within 60 days of the date on which a written demand for arbitration is filed by any party hereto.  In connection with the arbitration proceeding, the arbitrator shall have the power to order the production of documents by each party and any third-party witnesses.  In addition, each party may take up to three depositions as of right, and the arbitrator may in his or her discretion allow additional depositions upon good cause shown by the moving party.  However, the arbitrator shall not have the power to order the answering of interrogatories or the response to requests for admission.  In connection with any arbitration, each party to the arbitration shall provide to the other, no later than seven business days before the date of the arbitration, the identity of all persons that may testify at the arbitration and a copy of all documents that may be introduced at the arbitration or considered or used by a party’s witness or expert.  The arbitrator’s decision and award shall be made and delivered within six months of the selection of the arbitrator.  The arbitrator’s decision shall set forth a reasoned basis for any award of damages or finding of liability.  The arbitrator shall not have power to award damages in excess of actual compensatory damages and shall not multiply actual damages or award punitive damages, and each party hereby irrevocably waives any claim to such damages.

 

(c)           The Company, the Optionee, each party to the Agreement and any other holder of Shares issued pursuant to this Agreement (each, a “Party”) covenants and agrees that such party will participate in the arbitration in good faith.  This Section 7 applies equally to requests for temporary, preliminary or permanent injunctive relief, except that in the case of temporary or preliminary injunctive relief any party may proceed in court without prior arbitration for the limited purpose of avoiding immediate and irreparable harm.

 

(d)           Each Party (i) hereby irrevocably submits to the jurisdiction of any United States District Court of competent jurisdiction for the purpose of enforcing the award or decision in any such proceeding, (ii) hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above named courts, that its property is exempt or immune from attachment or execution (except as protected by applicable law), that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court, and (iii) hereby waives and agrees not to seek any review by any court of any other

 

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jurisdiction which may be called upon to grant an enforcement of the judgment of any such court.  Each Party hereby consents to service of process by registered mail at the address to which notices are to be given.  Each Party agrees that its, his or her submission to jurisdiction and its, his or her consent to service of process by mail is made for the express benefit of each other Party.  Final judgment against any Party in any such action, suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding on the judgment, or in any other manner provided by or pursuant to the laws of such other jurisdiction.

 

8.             Data Privacy.  In order to implement, administer and manage Optionee’s participation in the Plan (“Purpose”), the Optionee’s personal data (“Data”) as described in this Agreement and any other Stock Option grant, materials may be collected, used and transferred by and among the Company, any Subsidiary of the Company or to a third party stock plan service provider (“Parties”).  The Optionee hereby expressly consents to the collection, use and transfer of  Optionee’s Data to the United States or elsewhere by the Parties for such Purpose.  The Optionee 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 Optionee’s local human resources representative.  The Optionee understands that refusing or withdrawing his or her consent may affect the Optionee’s ability to participate in the Plan.

 

9.             Waiver of Statutory Information Rights.  The Optionee understands and agrees that, but for the waiver made herein, the Optionee would be entitled, upon written demand under oath stating the purpose thereof, to inspect for any proper purpose, and to make copies and extracts from, the Company’s stock ledger, a list of its stockholders, and its other books and records, and the books and records of subsidiaries of the Company, if any, under the circumstances and in the manner provided in Section 220 of the General Corporation Law of Delaware (any and all such rights, and any and all such other rights of the Optionee as may be provided for in Section 220, the “Inspection Rights”). In light of the foregoing, until the first sale of Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act, the Optionee hereby unconditionally and irrevocably waives the Inspection Rights, whether such Inspection Rights would be exercised or pursued directly or indirectly pursuant to Section 220 or otherwise, and covenants and agrees never to directly or indirectly commence, voluntarily aid in any way, prosecute, assign, transfer, or cause to be commenced any claim, action, cause of action, or other proceeding to pursue or exercise the Inspection Rights. The foregoing waiver shall not affect any rights of a director, in his or her capacity as such, under Section 220. The foregoing waiver shall not apply to any contractual inspection rights of the Optionee under any other written agreement between the Optionee and the Company.

 

[SIGNATURE PAGE FOLLOWS]

 

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The foregoing Agreement is hereby accepted and the terms and conditions thereof hereby agreed to by the undersigned as of the date first above written.

 

	
 
    	
CARBON   BLACK, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

The undersigned hereby acknowledges receiving and reviewing a copy of the Plan, including, without limitation, Section 9 thereof, and understands that this Stock Option is subject to the terms of the Plan and of this Agreement.  This Agreement is hereby accepted, and the terms and conditions of the Plan, the Grant Notice and this Agreement, SPECIFICALLY INCLUDING THE RESTRICTIONS ON TRANSFER IMPOSED BY THE BYLAWS, THE RESTRICTIONS ON TRANSFER IMPOSED BY SECTION 5 OF THIS AGREEMENT, THE ARBITRATION PROVISIONS SET FORTH IN SECTION 7 OF THIS AGREEMENT AND THE WAIVER OF STATUTORY INFORMATION RIGHTS SET FORTH IN SECTION 9 OF THIS AGREEMENT, are hereby agreed to, by the undersigned as of the date first above written.

 

	
 
    	
OPTIONEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

Grant Number

 

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[SPOUSE’S CONSENT(1)

I acknowledge that I have read the

foregoing Non-Qualified Stock Option Agreement

and understand the contents thereof.

 

 

]

 

(1)  A spouse’s consent is recommended only if the Optionee’s state of residence is one of the following community property states:  Arizona, California, Idaho, Louisiana, Nevada, New Mexico, Texas, Washington and Wisconsin.

 

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DESIGNATED BENEFICIARY:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Beneficiary’s Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

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Appendix A

 

STOCK OPTION EXERCISE NOTICE

 

Carbon Black, Inc.

1100 Winter Street

Waltham, MA 02451
 Attention: Chief Financial Officer

 

Pursuant to the terms of the grant notice and stock option agreement between the undersigned and Carbon Black, Inc., a Delaware corporation (the “Company”), dated            (the “Agreement”) under the Carbon Black, Inc. 2012 Stock Option and Grant Plan, I, [Insert Name]                 , hereby [Circle One] partially/fully exercise such option by including herein payment in the amount of $       representing the purchase price for [Fill in number of Shares]         Shares.  I have chosen the following form(s) of payment:

 

o            1.             Cash

o            2.             Certified or bank check payable to Carbon Black, Inc.

o            3.             Other (as referenced in the Agreement and described in the Plan (please describe))                                                                            .

 

In connection with my exercise of the option as set forth above, I hereby represent and warrant to the Company as follows:

 

(i)            I am purchasing the Shares for my own account for investment only, and not for resale or with a view to the distribution thereof.

 

(ii)           I have had such an opportunity as I have deemed adequate to obtain from the Company such information as is necessary to permit me to evaluate the merits and risks of my investment in the Company and have consulted with my own advisers with respect to my investment in the Company.

 

(iii)          I have sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the purchase of the Shares and to make an informed investment decision with respect to such purchase.

 

(iv)          I can afford a complete loss of the value of the Shares and am able to bear the economic risk of holding such Shares for an indefinite period of time.

 

(v)           I understand that the Shares may not be registered under the Securities Act of 1933 (it being understood that the Shares are being issued and sold in reliance on the exemption provided in Rule 701 thereunder) or any applicable state securities or “blue sky” laws and may not be sold or otherwise transferred or disposed of in the absence of an effective registration statement under the Securities Act of 1933 and

 

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under any applicable state securities or “blue sky” laws (or exemptions from the registration requirement thereof).  I further acknowledge that certificates representing Shares will bear restrictive legends reflecting the foregoing and/or that book entries for uncertificated Shares will include similar restrictive notations.

 

(vi)          I have read and understand the Plan and acknowledge and agree that the Shares are subject to all of the relevant terms of the Plan, including without limitation, the transfer restrictions set forth in Section 9 of the Plan.

 

(vii)         I understand and agree that the Company has a right of first refusal with respect to the Shares pursuant to Section 9(b) of the Plan.

 

(viii)        I understand and agree that the Company has certain repurchase rights with respect to the Shares pursuant to Section 9(c) of the Plan.

 

(ix)          I understand and agree that I may not sell or otherwise transfer or dispose of the Shares for a period of time following the effective date of a public offering by the Company as described in Section 9(f) of the Plan.

 

(x)           I understand and agree that, but for the waiver made herein and in the Agreement, I would be entitled, upon written demand under oath stating the purpose thereof, to inspect for any proper purpose, and to make copies and extracts from, the Company’s stock ledger, a list of its stockholders, and its other books and records, and the books and records of subsidiaries of the Company, if any, under the circumstances and in the manner provided in Section 220 of the General Corporation Law of Delaware (any and all such rights, and any and all such other rights as I may be provided under Section 220, the “Inspection Rights”). In light of the foregoing, until the first sale of Stock of the Company to the general public pursuant to a registration statement filed with and declared effective by the Securities and Exchange Commission under the Securities Act, I hereby unconditionally and irrevocably waive the Inspection Rights, whether such Inspection Rights would be exercised or pursued directly or indirectly pursuant to Section 220 or otherwise, and covenant and agree never to directly or indirectly commence, voluntarily aid in any way, prosecute, assign, transfer, or cause to be commenced any claim, action, cause of action, or other proceeding to pursue or exercise the Inspection Rights. The foregoing waiver shall not affect any rights of a director, in his or her capacity as such, under Section 220. The foregoing waiver shall not apply to any of my contractual inspection rights under any other written agreement between me and the Company.

 

(xi)          I understand and agree that the Shares and all other shares of the Company’s Common Stock, par value $0.001 per share, Series A Preferred Stock, par value $0.001 per share, and Series E-1 Preferred Stock, par value $0.001 per share, that I currently own, or that I may acquire in the future (collectively, “Owned Shares”), may not be sold, assigned, transferred, pledged, encumbered or in any manner disposed of except in compliance with the Company’s Second Amended and Restated By-Laws, as amended and in effect (the “Bylaws”). I further acknowledge and agree that (a) certificates representing Owned Shares will bear restrictive legends reflecting the

 

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foregoing and/or that book entries for uncertificated Owned Shares will include similar restrictive notations and (b) a copy of the Bylaws has been made available to me.

 

	
 
    	
Sincerely yours,
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    

 

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RESTRICTED STOCK AWARD NOTICE
 UNDER THE CARBON BLACK, INC.
 2012 STOCK OPTION AND GRANT PLAN

 

Pursuant to the Carbon Black, Inc. 2012 Stock Option and Grant Plan (the “Plan”), Carbon Black, Inc., a Delaware corporation (together with any successor, the “Company”), hereby grants, sells and issues to the individual named below, the Shares at the Per Share Purchase Price, subject to the terms and conditions set forth in this Restricted Stock Award Notice (the “Award Notice”), the attached Restricted Stock Agreement (the “Agreement”) and the Plan.  The Grantee agrees to the provisions set forth herein and acknowledges that each such provision is a material condition of the Company’s agreement to issue and sell the Shares to him or her.  The Company hereby acknowledges receipt of $[                 ] in full payment for the Shares.  All references to share prices and amounts herein shall be equitably adjusted to reflect stock splits, stock dividends, recapitalizations, mergers, reorganizations and similar changes affecting the capital stock of the Company, and any shares of capital stock of the Company received on or in respect of Shares in connection with any such event (including any shares of capital stock or any right, option or warrant to receive the same or any security convertible into or exchangeable for any such shares or received upon conversion of any such shares) shall be subject to this Agreement on the same basis and extent at the relevant time as the Shares in respect of which they were issued, and shall be deemed Shares as if and to the same extent they were issued at the date hereof.

 

	
Name of Grantee:
    	
 
    	
                                   (the “Grantee”)
    
	
 
    	
 
    	
 
    
	
No. of Shares:
    	
 
    	
                      Shares of Common Stock (the “Shares”)
    
	
 
    	
 
    	
 
    
	
Grant Date:
    	
 
    	
                                ,        
    
	
 
    	
 
    	
 
    
	
Vesting Commencement Date:
    	
 
    	
                           ,         (the “Vesting Commencement Date”)
    
	
 
    	
 
    	
 
    
	
Per Share Purchase Price:
    	
 
    	
$                (the “Per Share Purchase Price”)
    
	
 
    	
 
    	
 
    
	
Vesting Schedule:
    	
 
    	
[25] percent of the Shares shall vest on the [first]   anniversary of the Vesting Commencement Date; provided that the Grantee continues   to have a Service Relationship with the Company at such time. Thereafter, the   remaining [75] percent of the Shares shall vest in [36] equal monthly   installments following the first anniversary of the Vesting Commencement   Date, provided the Grantee continues to have a Service Relationship with the   Company at such time. Notwithstanding anything in the Agreement to the   contrary in the case of a Sale Event, the Shares of Restricted Stock shall be   treated as provided in Section 3(c) of the Plan.
    

 

Attachments:  Restricted Stock Agreement, 2012 Stock Option and Grant Plan

 

 

RESTRICTED STOCK AGREEMENT
 UNDER THE CARBON BLACK, INC.
 2012 STOCK OPTION AND GRANT PLAN

 

All capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Award Notice and the Plan.

 

1.                                      Purchase and Sale of Shares; Vesting; Investment Representations.

 

(a)                                 Purchase and Sale.  The Company hereby sells to the Grantee, and the Grantee hereby purchases from the Company, the number of Shares set forth in the Award Notice for the Per Share Purchase Price.

 

(b)                                 Vesting.  Initially, all of the Shares are non-transferable and subject to a substantial risk of forfeiture and are Shares of Restricted Stock.  The risk of forfeiture shall lapse with respect to the Shares on the respective dates indicated on the Vesting Schedule set forth in the Award Notice.

 

(c)                                  Investment Representations.  In connection with the purchase and sale of the Shares contemplated by Section 1(a) above, the Grantee hereby represents and warrants to the Company as follows:

 

(i)                                     The Grantee is purchasing the Shares for the Grantee’s own account for investment only, and not for resale or with a view to the distribution thereof.

 

(ii)                                  The Grantee has had such an opportunity as he or she has deemed adequate to obtain from the Company such information as is necessary to permit him or her to evaluate the merits and risks of the Grantee’s investment in the Company and has consulted with the Grantee’s own advisers with respect to the Grantee’s investment in the Company.

 

(iii)                               The Grantee has sufficient experience in business, financial and investment matters to be able to evaluate the risks involved in the purchase of the Shares and to make an informed investment decision with respect to such purchase.

 

(iv)                              The Grantee can afford a complete loss of the value of the Shares and is able to bear the economic risk of holding such Shares for an indefinite period.

 

(v)                                 The Grantee understands that the Shares are not registered under the Act (it being understood that the Shares are being issued and sold in reliance on the exemption provided in Rule 701 thereunder) or any applicable state securities or “blue sky” laws and may not be sold or otherwise transferred or disposed of in the absence of an effective registration statement under the Act and under any applicable state securities or “blue sky” laws (or exemptions from the registration requirements thereof).  The Grantee further acknowledges that certificates representing the Shares will bear

 

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restrictive legends reflecting the foregoing and/or that book entries for uncertificated Shares will include similar restrictive notations.

 

(vi)                              The Grantee has read and understands the Plan and acknowledges and agrees that the Shares are subject to all of the relevant terms of the Plan, including without limitation, the transfer restrictions set forth in Section 9 of the Plan.

 

(vii)                           The Grantee understands and agrees that the Company has a right of first refusal with respect to the Shares pursuant to Section 9(b) of the Plan.

 

(viii)                        The Grantee understands and agree that the Company has certain repurchase rights with respect to the Shares pursuant to Section 9(c) of the Plan.

 

(ix)                              The Grantee understands and agrees that the Grantee may not sell or otherwise transfer or dispose of the Shares for a period of time following the effective date of a public offering by the Company as described in Section 9(f) of the Plan.

 

2.                                      Repurchase Right.  Upon a Termination Event, the Company shall have the right to repurchase Shares of Restricted Stock that are unvested as of the date of such Termination Event as set forth in Section 9(c) of the Plan.(1)

 

3.                                      Restrictions on Transfer of Shares.  The Shares (whether or not vested) shall be subject to certain transfer restrictions and other limitations including, without limitation, the provisions contained in Section 9 of the Plan

 

4.                                      Incorporation of Plan.  Notwithstanding anything herein to the contrary, this Restricted Stock Award shall be subject to and governed by all the terms and conditions of the Plan.

 

5.                                      Miscellaneous Provisions.

 

(a)                                 Record Owner; Dividends.  The Grantee and any Permitted Transferees, during the duration of this Agreement, shall be considered the record owners of and shall be entitled to vote the Shares if and to the extent the Shares are entitled to voting rights.  The Grantee and any Permitted Transferees shall be entitled to receive all dividends and any other distributions declared on the Shares; provided, however, that the Company is under no duty to declare any such dividends or to make any such distribution.

 

(b)                                 Section 83(b) Election.  The Grantee shall consult with the Grantee’s tax advisor to determine whether it would be appropriate for the Grantee to make an election under Section 83(b) of the Code with respect to this Award.  Any such election must be filed with the Internal Revenue Service within 30 days of the date of this Award.  If the Grantee makes an election under Section 83(b) of the Code, the Grantee shall give prompt notice to the Company (and provide a copy of such election to the Company).

 

(1)  This language should be revised if the Company does want the ability to repurchase vested shares.  See the definition of “Repurchase Event” in the Plan.  The Company always has to have the right to repurchase unvested shares of Restricted Stock.

 

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(c)                                  Equitable Relief.  The parties hereto agree and declare that legal remedies may be inadequate to enforce the provisions of this Agreement and that equitable relief, including specific performance and injunctive relief, may be used to enforce the provisions of this Agreement.

 

(d)                                 Change and Modifications.  This Agreement may not be orally changed, modified or terminated, nor shall any oral waiver of any of its terms be effective. This Agreement may be changed, modified or terminated only by an agreement in writing signed by the Company and the Grantee.

 

(e)                                  Governing Law.  This Agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware, without regard to conflict of law principles that would result in the application of any law other than the law of the State of Delaware.

 

(f)                                   Headings.  The headings are intended only for convenience in finding the subject matter and do not constitute part of the text of this Agreement and shall not be considered in the interpretation of this Agreement.

 

(g)                                  Saving Clause.  If any provision(s) of this Agreement shall be determined to be illegal or unenforceable, such determination shall in no manner affect the legality or enforceability of any other provision hereof.

 

(h)                                 Notices.  All notices, requests, consents and other communications shall be in writing and be deemed given when delivered personally, by telex or facsimile transmission or when received if mailed by first class registered or certified mail, postage prepaid.  Notices to the Company or the Grantee shall be addressed as set forth underneath their signatures below, or to such other address or addresses as may have been furnished by such party in writing to the other.

 

(i)                                     Benefit and Binding Effect.  This Agreement shall be binding upon and shall inure to the benefit of the parties hereto, their respective successors, assigns, and legal representatives.  The Company has the right to assign this Agreement, and such assignee shall become entitled to all the rights of the Company hereunder to the extent of such assignment.

 

(j)                                    Counterparts.  For the convenience of the parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall constitute one and the same document.

 

(k)                                 Integration.  This Agreement constitutes the entire agreement between the parties with respect to this Award and supersedes all prior agreements and discussions between the parties concerning such subject matter.

 

6.                                      Dispute Resolution.

 

(a)                                 Except as provided below, any dispute arising out of or relating to the Plan or the Shares, this Agreement, or the breach, termination or validity of the Plan, the Shares or this Agreement, shall be finally settled by binding arbitration conducted expeditiously in 

 

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accordance with the J.A.M.S./Endispute Comprehensive Arbitration Rules and Procedures (the “J.A.M.S. Rules”).  The arbitration shall be governed by the United States Arbitration Act, 9 U.S.C. Sections 1 - 16, and judgment upon the award rendered by the arbitrators may be entered by any court having jurisdiction thereof.  The place of arbitration shall be Boston, Massachusetts.

 

(b)                                 The arbitration shall commence within 60 days of the date on which a written demand for arbitration is filed by any party hereto.  In connection with the arbitration proceeding, the arbitrator shall have the power to order the production of documents by each party and any third-party witnesses.  In addition, each party may take up to three depositions as of right, and the arbitrator may in his or her discretion allow additional depositions upon good cause shown by the moving party.  However, the arbitrator shall not have the power to order the answering of interrogatories or the response to requests for admission.  In connection with any arbitration, each party to the arbitration shall provide to the other, no later than seven business days before the date of the arbitration, the identity of all persons that may testify at the arbitration and a copy of all documents that may be introduced at the arbitration or considered or used by a party’s witness or expert.  The arbitrator’s decision and award shall be made and delivered within six months of the selection of the arbitrator.  The arbitrator’s decision shall set forth a reasoned basis for any award of damages or finding of liability.  The arbitrator shall not have power to award damages in excess of actual compensatory damages and shall not multiply actual damages or award punitive damages, and each party hereby irrevocably waives any claim to such damages.

 

(c)                                  The Company, the Grantee, each party to the Agreement and any other holder of Shares issued pursuant to this Agreement (each, a “Party”) covenants and agrees that such party will participate in the arbitration in good faith.  This Section 6 applies equally to requests for temporary, preliminary or permanent injunctive relief, except that in the case of temporary or preliminary injunctive relief any party may proceed in court without prior arbitration for the limited purpose of avoiding immediate and irreparable harm.

 

(d)                                 Each Party (i) hereby irrevocably submits to the jurisdiction of any United States District Court of competent jurisdiction for the purpose of enforcing the award or decision in any such proceeding, (ii) hereby waives, and agrees not to assert, by way of motion, as a defense, or otherwise, in any such suit, action or proceeding, any claim that it is not subject personally to the jurisdiction of the above named courts, that its property is exempt or immune from attachment or execution (except as protected by applicable law), that the suit, action or proceeding is brought in an inconvenient forum, that the venue of the suit, action or proceeding is improper or that this Agreement or the subject matter hereof may not be enforced in or by such court, and (iii) hereby waives and agrees not to seek any review by any court of any other jurisdiction which may be called upon to grant an enforcement of the judgment of any such court.  Each Party hereby consents to service of process by registered mail at the address to which notices are to be given.  Each Party agrees that its, his or her submission to jurisdiction and its, his or her consent to service of process by mail is made for the express benefit of each other Party.  Final judgment against any Party in any such action, suit or proceeding may be enforced in other jurisdictions by suit, action or proceeding on the judgment, or in any other manner provided by or pursuant to the laws of such other jurisdiction.

 

[SIGNATURE PAGE FOLLOWS]

 

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The foregoing Restricted Stock Agreement is hereby accepted and the terms and conditions thereof are hereby agreed to by the undersigned as of the date first above written.

 

	
 
    	
CARBON   BLACK, INC.
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

The undersigned hereby acknowledges receiving and reviewing a copy of the Plan, including, without limitation, Section 9 thereof and understands that the Shares granted hereby are subject to the terms of the Plan and of this Agreement.  This Agreement is hereby accepted, and the terms and conditions of the Plan, the Award Notice and this Agreement, SPECIFICALLY INCLUDING THE ARBITRATION PROVISIONS SET FORTH IN SECTION 6 OF THIS AGREEMENT, are hereby agreed to, by the undersigned as of the date first above written.

 

	
 
    	
GRANTEE:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Name:
    
	
 
    	
 
    
	
 
    	
Address:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
 
    

 

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[SPOUSE’S CONSENT(2)

I acknowledge that I have read the

foregoing Restricted Stock Agreement

and understand the contents thereof.

 

 

                                                                                          ]

 

(2)  A spouse’s consent is required only if the Grantee’s state of residence is one of the following community property states:  Arizona, California, Idaho, Louisiana, New Mexico, Nevada, Texas, Washington and Wisconsin.

 

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