Document:

Exhibit 10.1

Exhibit 10.1

Corporate Point/5615 Highpoint Drive

Irving, Texas

FIRST AMENDMENT

This First Amendment (this “Amendment”) is executed as of July
 _____, 2009, between 5615
Highpoint Irving, LLC, a Delaware limited liability company (“Landlord”), and HMS Business
Services Inc., a New York corporation (“Tenant”), for the purpose of amending the Lease
Agreement between Equastone High Point, LP, a Delaware limited partnership, Landlord‘s
predecessor-in-interest, and Health Management Systems, Inc., a New York corporation, Tenant’s
predecessor-in-interest, dated July 31, 2007 (the “Lease”). Capitalized terms used herein
but not defined shall be given the meanings assigned to them in the Lease.

RECITALS:

Tenant is currently leasing Suites 100, 400, 500 and 500A consisting of 59,426 rentable square
feet of space, in the Building located at 5615 High Point Drive, Irving, Texas and commonly known
as the Corporate Point at Las Colinas under the Lease (the “Existing Premises”). Tenant
desires to lease the entire eighth (8th) floor of the Building as depicted on
Exhibit A hereto, containing approximately 24,323 rentable square feet and commonly known
as Suite 800 (the “Additional Premises”), and Landlord has agreed to lease such space to
Tenant on the terms and conditions contained herein. In addition, Tenant desires to extend the
Lease Term for the Existing Premises, and Landlord has agreed to such extension on the terms and
conditions contained herein.

AGREEMENTS:

For valuable consideration, whose receipt and sufficiency are acknowledged, Landlord and
Tenant agree as follows:

1. Additional Premises; Acceptance. Landlord hereby leases to Tenant,
and Tenant hereby leases from Landlord, the Additional Premises on the terms and
conditions of the Lease, as modified hereby; accordingly, from and after the
Effective Date (defined below), the term “Premises” shall refer collectively
to the Existing Premises and the Additional Premises. On the date hereof
(“Delivery Date”), Landlord shall deliver possession of the Additional
Premises to Tenant in broom clean condition, free and clear of any occupants or
other parties in possession in order to enable Tenant to complete its Tenant
Improvements within such Additional Premises and Tenant shall have continuous
uninterrupted access to the Additional Premises, subject to the Landlord’s right of
inspection, from and after the date hereof in order to complete such Tenant
Improvements. Tenant accepts the Additional Premises in their “AS-IS” condition
and Landlord shall not be required to perform any demolition work or tenant
finish-work therein or to provide any allowances therefore, except as expressly set
forth in Section 6 below. Landlord and Tenant stipulate that the number of rentable
square feet in the Existing Premises, the Additional Premises and the Building are
correct. As of the Delivery Date, the Additional Premises shall be deemed part of
the Premises and subject to the terms of the Lease, except for the provisions
regarding Base Rent and Additional Rent which shall be governed by the terms hereof
and which shall not apply to the Additional Premises until the Effective Date.

 

 

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

2. Lease Term.

(a) The Lease Term for the Existing Premises is hereby extended such that it expires on the
end of the Lease Month which is ten (10) years from the Effective Date. As used herein, the term
“Lease Month” shall mean each calendar month during the Lease Term (and if the Effective
Date does not occur on the first day of a calendar month, the period from the Effective Date to the
first day of the next calendar month shall be included in the first Lease Month for purposes of
determining the duration of the Lease Term and the monthly Base Rent rate applicable for such
partial month).

(b) The Lease Term for the Additional Premises shall begin on the Effective Date and shall
expire coterminously with the expiration date with respect to the Existing Premises unless sooner
terminated as provided in the Lease. As used herein, the “Effective Date” shall mean the
earliest of (a) November 1, 2009 (the “Outside Date”) and (b) the date on which the Work
(as defined in Exhibit B hereto) in the Additional Premises is Substantially Completed (as
defined in Exhibit B hereto); provided, however, that such Outside Date shall be extended
for any delays in construction of the Work caused by Force Majeure events or by Landlord’s wrongful
interference with the Work or failure to comply with its obligations hereunder and under
Exhibit B hereto. On the Effective Date, Tenant shall execute and deliver to Landlord a
letter substantially in the form of Exhibit C hereto confirming (1) the Effective Date and
(2) that Tenant has accepted the Additional Premises. However, the failure of the parties to
execute such letter shall not defer the Effective Date or otherwise invalidate the Lease.

3. Base Rent. The monthly installments of Base Rent under the Lease
for the Additional Premises shall be the following amounts for the following
periods of time, beginning on the Effective Date:

	 	 	 	 	 	 	 	 	 
	 	 	Annual Base Rent	 	 	 	 
	 	 	Rate Per Rentable	 	 	Monthly Installments of Base	 
	Time Period — Lease Month	 	Square Foot	 	 	Rent	 
	Lease Month 1 (Effective Date) — 6
	 	$	0.00	 	 	$	0.00	 
	Lease Month 7-18
	 	$	7.75	 	 	$	15,708.60	 
	Lease Month 19-48
	 	$	15.50	 	 	$	31,417.21	 
	Lease Month 49-84
	 	$	17.00	 	 	$	34,457.58	 
	Lease Month 85-120
	 	$	18.50	 	 	$	37,497.96	 

Until the Effective Date, Base Rent shall remain as currently set forth in the Lease. From
and after the Effective Date, the monthly installments of Base Rent under the Lease for the
Existing Premises shall be the following amounts for the following periods of time,
beginning on the Effective Date (and the amounts set forth in Section 8 of the Summary in the Lease
shall no longer be applicable):

	 	 	 	 	 	 	 	 	 
	 	 	Annual Base Rent	 	 	 	 
	 	 	Rate Per Rentable	 	 	Monthly Installments of Base	 
	Time Period	 	Square Foot	 	 	Rent	 
	Lease Month
1(Effective Date) — 48
	 	$	15.50	 	 	$	76,758.58	 
	Lease Month 49-84
	 	$	17.00	 	 	$	84,186.83	 
	Lease Month 85-120
	 	$	18.50	 	 	$	91,615.08	 

 

2

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

4. Additional Rent/Base Year/Tenant’s Proportionate Share. From and
after the Effective Date, (a) Tenant’s Share shall be increased to 37.47%, which is
the percentage obtained by dividing the number of rentable square feet in the
Premises
(83,749) by the number of rentable square feet in the Building (223,498), (b)
the Base Year for all purposes under the Lease shall be 2009.

5. Security Deposit. On the Effective Date, Tenant shall deliver to
Landlord $47,402.29 to be held as part of the Security Deposit under the Lease, such
that the aggregate Security Deposit held by Landlord will be $129,113.04.

6. Tenant Finish-Work. Tenant shall construct tenant improvements in
the Additional Premises in accordance with Exhibit B hereto.

7. Right of First Refusal. The definition of the “First Refusal
Space” at the beginning of Section 1.5 of the Lease is hereby amended to read as
follows: “Landlord hereby grants to the original Tenant named in this Lease and
any Affiliated Assignee (the “Original Tenant”), during the Lease Term, a
continuing right of first refusal with respect to any and all space located on the
second (2nd), third (3rd), sixth (6th), ninth
(9th) and tenth (10th) floors of the Building and made a part
hereof (collectively, the “First Refusal Space”).” Landlord represents that
there are no Superior Leases or other parties with Superior Rights with respect to
the ninth (9th) and tenth (10th) floors of the Building.
Further, until after the date which is six (6) months from the Effective Date,
Landlord agrees it (i) will not lease to any other tenant (or offer to Tenant under
Section 1.5 of the Lease) any space located on the ninth (9th) floor of
the Building, and (ii) Tenant shall have the right to add such ninth
(9th) floor to the Premises upon thirty (30) days advance notice to
Landlord, in which case the Base Rent for such ninth (9th) floor shall be
the same as the Base Rent per rentable square foot to the Premises with respect to
the Additional Premises hereunder. Tenant shall also have the right to add such
ninth (9th) floor to the Premises upon thirty (30) days’ advance notice
to Landlord at any time after such six (6) month period until Landlord has entered
into a lease with a third party with respect to such ninth (9th) floor,
in which case the Base Rent for such ninth (9th) floor shall be at the
then-current market rate. In the event Tenant exercises its right of first refusal
to the ninth (9th) floor space after the date which is six (6) months
from the Effective Date, but objects to the determination of the then-current market
rate rent determined by Landlord, the parties will determine the Base Rent in
accordance with the process set forth in Section 2.3.3 of the Lease for determining
Option Rent.

8. Option Terms. Tenant shall continue to have the right to extend the
Lease Term for up to two (2) additional periods of five (5) years each in accordance
with Section 2.3 of the Lease.

 

3

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

9. Early Termination. If at the time Tenant gives the notice required
below Tenant is not in default under the Lease beyond the expiration of applicable
notice and cure periods, and if Tenant pays to Landlord the First Early Termination
Payment (defined below) in the manner set forth below, then Tenant shall have the
right to terminate the Lease in accordance with the following provisions effective
on the date which is ninety-six (96) months after the Effective Date of this
Amendment (“First Early Termination Date”). If at the time Tenant gives the
notice required below Tenant is not in default under the Lease beyond the expiration
of applicable notice and cure periods, and if Tenant pays to Landlord the Second
Early Termination Payment (defined below) in the manner set forth below, then Tenant
shall have the right to terminate the Lease in accordance with the following
provisions effective on the date which is one hundred and eight (108) months after
the Effective Date of this Amendment (“Second Early Termination Date”).
Tenant’s right to terminate this Lease must be exercised by giving
written notice to Landlord at least twelve (12) months prior to the First Early
Termination Date or the Second Early Termination Date, respectively. If Tenant
properly gives such notice of termination and timely submits the First Early
Termination Payment or the Second Early Termination Payment, as applicable, then the
Lease shall end on the First Early Termination Date or the Second Early Termination
Date, as applicable. The Lease shall terminate on the First Early Termination Date
or the Second Early Termination Date, as applicable, as if such date were the
scheduled expiration date of the Lease. As a condition to exercising the right of
termination with respect to the First Early Termination Date, Tenant must pay to
Landlord on or before the date which is four (4) months prior to the First Early
Termination Date a cash amount (the “First Early Termination Payment”) equal
to ONE MILLION SIXTY-SEVEN THOUSAND SEVEN HUNDRED NINETY-NINE and 75/100 DOLLARS
($1,067,799.75). As a condition to exercising the right of termination with respect
to the Second Early Termination Date, Tenant must pay to Landlord on or before the
date which is is four (4) months prior to the Second Early Termination Date, a cash
amount (the “Second Early Termination Payment”) equal to FIVE HUNDRED
THIRTY-THREE THOUSAND EIGHT HUNDRED NINETY-NINE and 90/100 DOLLARS ($533,899.90).

10. Parking. Tenant shall continue to have a Parking Pass Ratio of 5.7
passes for every 1,000 square feet of the Premises. With the Additional Premises,
Tenant have the right to use an additional 139 parking passes and shall have the
right to create an additional 17 covered carports (for a total of up to 57 total
covered carports). The parking shall continue to be governed by Articles 5.2 and 28
of the Lease.

11. Estoppel Certificates. Pursuant to the terms of the Lease, Tenant
is obligated to execute and deliver to Landlord from time to time estoppel
certificates confirming and containing such factual certifications and
representations as to the Lease as Landlord may reasonably request.

12. Limitation of Liability. In addition to any other limitations of
Landlord’s liability as contained in the Lease, as amended to date, the liability of
Landlord (and its partners, shareholders or members) to Tenant (or any person or
entity claiming by, through or under Tenant) for any default by Landlord under the
terms of the Lease or any matter relating to or arising out of the occupancy or use
of the Premises and/or other areas of the Building shall be limited to Tenant’s
actual direct, but not consequential, damages therefor and shall be recoverable only
from the interest of Landlord in the Building and Landlord (and its partners,
shareholders or members) shall not be personally liable for any deficiency.

 

4

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

13. Notices. All notices and other communications given pursuant to
the Lease shall be in writing and shall be (a) mailed by first class, United States
mail, postage prepaid, certified, with return receipt requested, and addressed to
the parties hereto at the address listed below, (b) sent by a nationally recognized
overnight courier, or (c) hand delivered to the intended addressee. Notice sent by
certified mail, postage prepaid, shall be effective three business days after being
deposited in the United States mail; all other notices shall be effective upon
delivery to the address of the addressee. The parties hereto may change their
addresses by giving notice thereof to the other in conformity with this provision.
The addresses for notice set forth below shall supersede and replace any addresses
for notice set forth in the Lease.

	 	 	 
	Landlord:

	 	5615 Highpoint Irving, LLC
	 

	 	c/o Capmark Finance Inc.
	 

	 	700 North Pearl Street, Suite 2200
	 

	 	Dallas, Texas 75201
	 

	 	Attention: David W. Homsher
	 
	 	 
	with a copy to

	 	Bryan Cave LLP
	 

	 	2200 Ross Avenue, Suite 3300
	 

	 	Dallas, Texas 75206
	 

	 	Attn: Carolyn K. Brown
	 
	 	 
	Tenant:

	 	HMS Business Services Inc.
	 

	 	401 Park Avenue South
	 

	 	New York, New York 10016
	 

	 	Attention: Walter Hosp, Senior Vice President
	 

	 	and Chief Executive Officer
	 
	 	 
	 

	 	AND
	 
	 	 
	 

	 	5615 High Point Drive, Suite 100
	 

	 	Irving, Texas 75038

	 

	 	Attention: Joseph Joy, Senior Vice President and CIO
	 
	 	 
	with a copy to

	 	Wilmer Cutler Pickering Hale and Dorr
	 

	 	399 Park Avenue
	 

	 	New York, New York 10022
	 

	 	Attention: Brian N. Gurtman, Esq.

14. Brokerage. Landlord and Tenant each warrant to the other that it
has not dealt with any broker or agent in connection with the negotiation or
execution of this Amendment other than GVA Cawley Realty Services (“GVA”)
whose commission shall be paid by Landlord pursuant to a separate written agreement.
Further, reference is made to a Consultant Commission Agreement dated July  _____,
2009 (the “Consultant Agreement”) , which is attached hereto as Exhibit
D, between GVA and TCS Central Region GP, L.L.C. d/b/a Transwestern
(“Transwestern”). GVA represented Landlord and Transwestern represented
Tenant in the consummation of this Amendment, and the Consultant Agreement provides
that GVA will pay Transwestern a commission for its services in representing Tenant
in consummating this Amendment. The Consultant Agreement further provides that GVA
has assigned its rights to any commission due it from Landlord that is properly
allocable to Transwestern, and the Landlord will pay said commission directly to
Transwestern. Accordingly, Landlord shall pay Transwestern, in accordance with the
terms of the Consultant Agreement, the commission due Transwestern for its
representation of Tenant in consummating the Amendment. Tenant and Landlord shall
each indemnify the other against all costs, expenses, attorneys’ fees, and other
liability for commissions or other compensation claimed by any other broker or agent
claiming the same by, through, or under the indemnifying party.

 

5

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

15. Ratification. Tenant hereby ratifies and confirms its obligations
under the Lease, and represents and warrants to Landlord that it has no defenses
thereto. Additionally, Tenant further confirms and ratifies that, as of the date
hereof, (a) the Lease is and remains in good standing and in full force and effect,
(b) to the best of Tenant’s knowledge, Tenant has no claims, counterclaims, set-offs
or defenses against Landlord
arising out of the Lease or in any way relating thereto or arising out of any
other transaction between Landlord and Tenant, and (c) except as expressly provided
for in this Amendment and the Exhibits which are a part hereof, all tenant
finish-work allowances provided to Tenant under the Lease or otherwise, if any, have
been paid in full by Landlord to Tenant, and Landlord has no further obligations
with respect thereto. Landlord hereby represents and warrants to Tenant as of the
date hereof, the Lease is in full force and effect, and Landlord hereby ratifies and
confirms its obligations under the Lease.

16. Binding Effect; Governing Law. Except as modified hereby, the
Lease shall remain in full effect and this Amendment shall be binding upon Landlord
and Tenant and their respective successors and assigns. If any inconsistency exists
or arises between the terms of this Amendment and the terms of the Lease, the terms
of this Amendment shall prevail. This Amendment shall be governed by the laws of
the State in which the Premises are located.

17. SNDA. Notwithstanding the provisions of Section 18 of the Lease,
any subordination of the Lease shall be contingent upon Tenant’s receipt of a
Subordination, Non-Disturbance and Attornment Agreement in form and substance
reasonably satisfactory to any mortgagee or ground lessor on the Property and to
Tenant.

18. Exterior Signage. From and after the Effective Date, Tenant shall
have the right to place a sign on the second floor spandrel on the exterior of the
Building, the exact location of which shall be subject to Landlord’s reasonable
approval, and which signage shall be subject to all of the terms and conditions of
Section 24.3 of the Lease, any applicable laws, codes, conditions, restrictions,
ordinances, covenants, zoning, and any Las Colinas Association guidelines and
restrictions.

19. Exclusivity. Landlord hereby agrees that the exclusivity
provisions contained in Section 32 of the Lease shall remain in effect and Landlord
shall comply with the same throughout the Lease Term as extended hereby.

20. Counterparts. This Amendment may be executed in multiple
counterparts, each of which shall constitute an original, but all of which shall
constitute one document.

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK]

 

6

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

This Amendment is executed on the respective dates set forth below, but for reference purposes
this Amendment shall be dated as of the date first above written. If the execution date is left
blank, this Amendment shall be deemed executed as of the date first written above.

	 	 	 	 	 
	LANDLORD:	 5615 Highpoint Irving, LLC, a Delaware limited liability company

 	 
	 	By:  	CB Asset Resolution Corporation, a Delaware
 	 
	 	 	corporation, its sole member 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Execution Date: 	 	 

 

7

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

	 	 	 	 	 
	TENANT:	 HMS Business Services Inc., a New York corporation

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Execution Date: 	 	 

 

8

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

EXHIBIT A

 

 

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

EXHIBIT B

TENANT FINISH-WORK: ALLOWANCE

1. Acceptance of Additional Premises. Except as set forth in this Exhibit, Tenant
accepts the Additional Premises in their “AS-IS” condition on the date that this Amendment is
entered into.

2. Space Plans.

(a) Landlord and Tenant hereby approve the space plan prepared by Staffelbach Design
Associates (the “Architect”) depicting improvements to be installed in the Additional
Premises, attached as Exhibit B-1 hereto (the “Space Plans”).

3. Working Drawings.

(a) Preparation and Delivery. On or before the date which is forty-five (45) days
following the date of this Amendment (such date is referred to herein as the “Working Drawings
Delivery Deadline”), Tenant shall provide to Landlord for its approval final working drawings,
prepared by the Architect, of all improvements that Tenant proposes to install in the Additional
Premises; such working drawings shall include the partition layout, ceiling plan, electrical
outlets and switches, telephone outlets, drawings for any modifications to the mechanical and
plumbing systems of the Building, and detailed plans and specifications for the construction of the
improvements called for under this Exhibit in accordance with all applicable Laws.

(b) Approval Process. Landlord shall notify Tenant whether it approves of the
submitted working drawings within five business days after Tenant’s submission thereof (such
approval not to be unreasonably withheld, conditioned or delayed). Landlord’s approval shall be
limited to non-cosmetic aspects of the Work, such as to the Building Structure of the Building
Systems (as hereinafter defined). If the Working Drawings are substantially similar to the working
drawings provided to Landlord for the Existing Premises when the improvements were initially
completed or reflect improvements substantially similar to those contained in the Existing
Premises, Landlord will not unreasonably withhold its consent and will use commercially reasonable
efforts to expedite the approval process. If Landlord disapproves of such working drawings, then
Landlord shall notify Tenant thereof specifying in reasonable detail the reasons for such
disapproval, in which case Tenant shall, within five business days after such notice, revise such
working drawings in accordance with Landlord’s objections and submit the revised working drawings
to Landlord for its review and approval. Landlord shall notify Tenant in writing whether it
approves of the resubmitted working drawings within five business days after its receipt thereof.
This process shall be repeated until the working drawings have been finally approved by Tenant and
Landlord. If Landlord fails to notify Tenant that it disapproves of the initial working drawings
or any subsequent submittal in accordance with the terms of this paragraph within five business
days after the submission thereof, then Landlord shall be deemed to have approved the working
drawings in question.

 

 

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

(c) Landlord’s Approval; Performance of Work. If any of Tenant’s proposed
construction work will affect the Building’s Structure or the Building’s Systems (as hereinafter
defined), then the working drawings pertaining thereto must be approved by the Building’s engineer
of record. Landlord’s approval of such working drawings shall not be unreasonably withheld,
provided that (1) they comply with all Laws, (2) the improvements depicted thereon do not adversely
affect (in the reasonable discretion of Landlord) the Building’s Structure or the Building’s
Systems, (including the Building’s
restrooms or mechanical rooms), the exterior appearance of the Building, or the appearance of
the Building’s common areas or elevator lobby areas, (3) such working drawings are sufficiently
detailed to allow construction of the improvements in a good and workmanlike manner, and (4) the
improvements depicted thereon conform to the rules and regulations promulgated from time to time by
Landlord for the construction of tenant improvements (a copy of which has been delivered to
Tenant). As used herein, “Working Drawings” shall mean the final working drawings approved
by Landlord, as amended from time to time by any approved changes thereto, and “Work” shall
mean all improvements to be constructed in accordance with and as indicated on the Working
Drawings, together with any work required by governmental authorities to be made to other areas of
the Building as a result of the improvements indicated by the Working Drawings. All of the Work
shall be considered Tenant Improvements under the Lease. Landlord’s approval of the Working
Drawings shall not be a representation or warranty of Landlord that such drawings are adequate for
any use or comply with any Law, but shall merely be the consent of Landlord thereto. Tenant shall,
at Landlord’s request, sign the Working Drawings to evidence its review and approval thereof.
After the Working Drawings have been approved, Tenant shall cause the Work to be performed in
substantial accordance with the Working Drawings.

4. Change Orders. Tenant may initiate changes in the Work. Any material change must
receive the prior written approval of Landlord, such approval not to be unreasonably withheld or
delayed; however, if such requested change would adversely affect (in the reasonable discretion of
Landlord) (1) the Building’s Structure or the Building’s Systems (including the Building’s
restrooms or mechanical rooms), (2) the exterior appearance of the Building, or (3) the appearance
of the Building’s common areas or elevator lobby areas, Landlord may withhold its consent in its
sole and absolute discretion. If any change orders reflect changes which are substantially similar
to the buildout of the Existing Premises, Landlord will not unreasonably withhold its consent and
will use commercially reasonable efforts to expedite the approval process. If Landlord disapproves
of such change order, then Landlord shall notify Tenant thereof specifying in reasonable detail the
reasons for such disapproval, in which case Tenant shall, within five business days after such
notice, revise such change order in accordance with Landlord’s objections and submit the revised
order to Landlord for its review and approval. Landlord shall notify Tenant in writing whether it
approves of the resubmitted change order within five business days after its receipt thereof. If
Landlord fails to notify Tenant that it disapproves any change order within five business days
after the submission of the same by Tenant, then Landlord shall be deemed to have approved the
change order in question. Tenant shall, upon completion of the Work, furnish Landlord with an
accurate architectural “as-built” plan of the Work as constructed, which plan shall be incorporated
into this Exhibit B by this reference for all purposes.

5. Definitions. As used herein “Substantial Completion,” “Substantially
Completed,” and any derivations thereof mean the Work in the Additional Premises is
substantially completed (as reasonably determined by Landlord and Tenant) in substantial accordance
with the Working Drawings. Substantial Completion shall have occurred even though minor details of
construction, decoration, landscaping and mechanical adjustments remain to be completed by
Landlord. “Building’s Structure” means the Building’s exterior walls, roof, elevator
shafts, footings, foundations, structural portions of load-bearing walls, structural floors and
subfloors, and structural columns and beams; “Building’s Systems” means the Building’s
HVAC, life-safety, plumbing, electrical, and mechanical systems; and “Laws” means all
federal, state, and local laws, rules and regulations, all court orders, governmental directives,
and governmental orders, and all restrictive covenants affecting the Building, and “Law” shall mean
any of the foregoing.

6. Existing Premises Rent Obligations. Tenant’s obligation to pay Rent under the Lease
with respect to the Existing Premises shall continue at all times during the performance of the
Work.

 

 

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

7. Excess Costs. The entire cost of performing the Work (including design of the Work
and preparation of the Working Drawings, moving costs, furniture, costs of construction labor and
materials, electrical usage during construction, additional janitorial services, general tenant
signage, related taxes and insurance costs, and the construction supervision fee referenced in
Section 9 of this Exhibit, all of which costs are herein collectively called the “Total
Construction Costs”) in excess of the Construction Allowance (hereinafter defined) shall be
paid by Tenant.

8. Construction Allowance. Landlord shall provide to Tenant a construction allowance
not to exceed $30.00 per rentable square foot in the Additional Premises (the “Construction
Allowance”) to be applied toward the Total Construction Costs to the Additional Premises only.
Up to $10.00 per rentable square foot of the Construction Allowance may be used for telephone
cabling and computer cabling for the Additional Premises and the Existing Premises, moving costs,
furniture and reduction to the Base Rent for the Additional Premises. No more than $2.00 per
rentable square foot may be used for a reduction to the Base Rent. If Tenant desires to use the
Construction Allowance for a reduction of the Base Rent, Tenant shall give Landlord fifteen (15)
days prior written notice of the amount of the requested Base Rent reduction, and the Construction
Allowance shall be applied to the Base Rent due from Tenant for the month following such notice.
The Construction Allowance shall be disbursed in whole or in part at any time and from time to time
to Tenant or Tenant’s contractors and subcontractors within thirty (30) days following Tenant’s
request therefor; provided, however, Landlord shall have received and approved each of the
following, as applicable: (a) Tenant’s written request, including a description of the portion of
the Work and a cost breakdown thereof in reasonable detail, and Borrower’s certification that all
such Work has been completed lien-free and in a workmanlike manner; (b) copies of invoices for
services with detailed instructions for payment; (c) contractors’ and subcontractors’ waivers of
liens and all other statements and forms required for compliance with the mechanics’ lien laws of
the State of Texas with respect to such Work (subject to payment of the aforesaid sums when paid
directly to the Tenant’s contractors and subcontractors by Landlord); and (d) evidence, if
applicable, that the Work is completed in accordance with the City of Irving or the Las Colinas
Association requirements. The Construction Allowance must be used within twelve (12) months
following the Effective Date or shall be deemed forfeited with no further obligation by Landlord
with respect thereto. Notwithstanding the foregoing, following the expiration of such twelve (12)
month period, if any undisbursed Construction Allowance then remains, up to $2.00 per rentable
square foot of the Construction Allowance shall be automatically applied to a reduction in the Base
Rent beginning on the payment which is due following thirteen (13) months from the
Effective Date.

If Landlord fails to timely pay all or any portion of the Construction Allowance pursuant to the
provisions of this Section 8, and provided that (x) such failure continues for 90 days after Tenant
notifies Landlord of such failure that Tenant intends to set off such amount against the next
installment of Rent unless Landlord pays such amount to Tenant within such 90 day period (which
notice shall in state in bold-face type in all caps on the first page of the notice that “TENANT
INTENDS TO OFFSET RENT IF LANDLORD FAILS TO RESPOND TO THIS NOTICE WITHIN NINETY (90) DAYS”)
(“Offset Notice”), and (y) after 90 days from the Offset Notice, Landlord fails to provide notice
to the Tenant of Landlord’s dispute to Tenant’s entitlement to the amount claimed by Tenant, then
Tenant may offset such amount against the next installment of Rent coming due under this Lease. If
Landlord sends notice to Tenant within 90 days of the Offset Notice that the Landlord disputes
Tenant’s claim that Landlord has failed to pay the Construction Allowance, the parties shall submit
the claim to be resolved by binding arbitration under the Expedited Procedures provisions of the
Commercial Arbitration Rules of the American Arbitration Association (or any organization which is
the successor thereto). The decision of the arbitrators shall be conclusively binding on the
parties, and judgment upon the decision may be entered in any court having jurisdiction. Following
the determination of the arbitrator: (x) if the dispute is resolved in favor of Tenant, then Tenant
may offset the actual amount of the Construction Allowance claimed by Tenant against the next
installment of Rent due under this Lease; and (y) if the dispute is
resolved in favor of Landlord, Tenant shall pay all costs and attorney’s fees incurred by Landlord
in connection with the arbitration.

 

 

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

9. Construction Management. Landlord or its Affiliate or agent shall supervise the
Work, make disbursements required to be made to the contractor, and act as a liaison between the
contractor and Tenant and coordinate the relationship between the Work, the Building, and the
Building’s Systems. In consideration for Landlord’s construction supervision services, Tenant
shall pay to Landlord a construction supervision fee equal to three (3%) percent of the Total
Construction Costs, which fee may be deducted by Landlord from the Construction Allowance. Tenant
shall not be responsible for any other management or other supervisory or approval fees to Landlord
in connection with such Work, including, without limitation, under Section 8.1 of the Lease.

10. Construction Representatives. Landlord hereby approves Scott and Reid as Tenant’s
general contractor for the performance of the Work. Landlord’s and Tenant’s representatives for
coordination of construction and approval of change orders will be as follows, provided that either
party may change its representative upon written notice to the other:

	 	 	 
	Landlord’s Representative:

	 	Mr. Tracy Lyne
	 

	 	c/o GVA Cawley
	 

	 	14785 Preston Road, Suite 850
	 

	 	Dallas, TX 75254
	 

	 	Telephone: 972-759-7851
	 

	 	Telecopy: 972-759-7951
	 
	 	 
	Tenant’s Representative:

	 	Bill Jaeger
	 

	 	401 Park Avenue South
	 

	 	New York, New York 10016
	 

	 	Telephone: 212-857-5795
	 

	 	Telecopy: 646-205-6070

 

 

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

Exhibit B-1

SPACE PLANS

 

 

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

EXHIBIT C

CONFIRMATION OF EFFECTIVE DATE

                    , 2009

HMS Business Services Inc.

401 Park Avenue South

New York, New York 10016

Attention: Walter Hosp, Senior Vice President and Chief Executive Officer

	 	Re:	 	 First Amendment (the “Amendment”) dated                     , 2009, between
5615 Highpoint Irving, LLC, a Delaware limited liability company (“Landlord”),
and HMS Business Services Inc., a New York corporation (“Tenant”) for the lease
of approximately 24,323 square feet of additional space (the “Additional
Premises”) pursuant to the Lease (as defined in and amended by the Amendment).
Capitalized terms used herein but not defined shall be given the meanings assigned to
them in the Amendment unless otherwise indicated.

Gentlemen:

Landlord and Tenant agree as follows:

1. Condition of Additional Premises. Tenant has accepted possession of the Additional
Premises pursuant to the Amendment. Furthermore, Tenant acknowledges that the Additional Premises
are suitable for the Permitted Use (as defined in the Lease).

2. Effective Date. The Effective Date of the commencement of the Lease Term for the
Additional Premises is                     , 200_____.

3. Ratification. Tenant hereby ratifies and confirms its obligations under the Lease,
and represents and warrants to Landlord as of the date hereof, to the best of Tenant’s knowledge,
that it has no defenses thereto. Additionally, Tenant further confirms and ratifies that, as of
the date hereof, (a) the Lease is and remains in good standing and in full force and effect, and
(b) to the best of Tenant’s knowledge, Tenant has no claims, counterclaims, set-offs or defenses
against Landlord arising out of the Lease or in any way relating thereto or arising out of any
other transaction between Landlord and Tenant.

4. Binding Effect; Governing Law. Except as modified hereby, the Lease shall remain
in full effect and this letter shall be binding upon Landlord and Tenant and their respective
successors and assigns. If any inconsistency exists or arises between the terms of this letter and
the terms of the Lease, the terms of this letter shall prevail. This letter shall be governed by
the laws of the State in which the Additional Premises are located.

 

1

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

Please indicate your agreement to the above matters by signing this letter in the space
indicated below and returning an executed original to us.

Sincerely,

5615 Highpoint Irving, LLC, a Delaware limited liability

company

	 	 	 	 	 
	 	By:  	CB Asset Resolution Corporation, a Delaware
 	 
	 	 	corporation, its sole member 	 

	 	 	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	 	Execution Date: 	 	 

Agreed and accepted:

HMS Business Services Inc., a New York corporation

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 	 	Execution Date: 	 	 	 	 
	 

	 	 	 	 

	 	 

 

2

 

Corporate Point/5615 Highpoint Drive

Irving, Texas

EXHIBIT D

CONSULTANT AGREEMENT

 

1exv10w1

Exhibit 10.1

L-3 COMMUNICATIONS HOLDINGS, INC.

2008 LONG TERM PERFORMANCE PLAN

NONQUALIFIED STOCK OPTION AGREEMENT

(Version 0005)

          THIS AGREEMENT, effective as of the Grant Date (as defined below), is between L-3
Communications Holdings, Inc., a Delaware corporation (the “Company”), and the Optionee (as defined
below).

          WHEREAS, the Company has adopted the L-3 Communications Holdings, Inc. 2008 Long Term
Performance Plan (the “Plan”) in order to provide additional incentives to selected officers and
employees of the Company and its subsidiaries; and

          WHEREAS, the Committee responsible for administration of the Plan has determined to grant an
option to the Optionee as provided herein and the Company and the Optionee hereby wish to
memorialize the terms and conditions applicable to the Option (as defined below);

          WHEREAS, the following terms shall have the following meanings for purposes of this Option
Agreement:

     “Award Letter” shall mean the letter to the Optionee attached hereto as Exhibit A;

     “Common Stock” means the Company’s Common Stock, par value $0.01 per share;

     “Exercise Price” shall mean the “Grant Price” listed in the Award Letter;

     “Grant Date” shall mean the “Grant Date” listed in the Award Letter;

     “Option Agreement” or this “Agreement” shall mean this agreement including (unless the context
otherwise requires) the Award Letter.

     “Optionee” shall mean the “Participant” listed in the Award Letter; and

     “Shares” shall mean that number of shares of Common Stock listed in the Award Letter as
“Awards Granted.”

          NOW, THEREFORE, the parties hereto agree as follows:

1. Grant of Option.

               1.1 Effective as of the Grant Date, for good and valuable consideration, the Company hereby
irrevocably grants to the Optionee the right and option (the “Option”) to purchase all or any part
of the Shares, subject to, and in accordance with, the terms and conditions set forth in this
Option Agreement.

               1.2 The Option is not intended to qualify as an Incentive Stock Option within the meaning of
Section 422 of the Code.

               1.3 This Option Agreement shall be construed in accordance and consistent with, and subject
to, the terms of the Plan (the provisions of which are incorporated hereby by reference); and,
except as otherwise expressly set forth herein, the capitalized terms used in this Option Agreement
shall have the same definitions as set forth in the Plan. In the event of any conflict between one
or more of this Option Agreement, the Award Letter and the Plan, the Plan shall govern this Option
Agreement and the Award Letter, and the Option Agreement (to the extent not in conflict with the
Plan) shall govern the Award Letter.

 

 

2. Exercise Price.

          The price at which the Optionee shall be entitled to purchase the Shares upon the exercise of
the Option shall be the Exercise Price per share, subject to adjustment as provided in Section 9.

3. Duration of Option.

          The Option shall be exercisable to the extent and in the manner provided herein for a period
of ten (10) years from the Grant Date (the “Exercise Term”); provided, however,
that the Option may be earlier terminated as provided in Section 6 hereof.

4. Exercisability of Option.

          Unless otherwise provided in this Option Agreement or the Plan, the Option shall entitle the
Optionee to purchase, in whole at any time or in part from time to time, one-third
(1/3rd) of the total number of shares covered by the Option on the first anniversary of
the Grant Date, an additional one-third (1/3rd) of the total number of Shares covered by
the Option on the second anniversary of the Grant Date and the final one-third (1/3rd)
of the total number of Shares covered by the Option on the expiration of the third anniversary of
the Grant Date. Each such right of purchase shall be cumulative and shall continue, unless sooner
exercised or terminated as herein provided, during the remaining period of the Exercise Term. Any
fractional number of shares resulting from the application of the foregoing percentages shall be
rounded to the next higher whole number of Shares (not to exceed the total number of Shares granted
as provided in Section 1.1).

5. Manner of Exercise and Payment.

          5.1 Subject to the terms and conditions of this Option Agreement and the Plan, the Option may
be exercised by delivery of written notice to the Secretary of the Company (or his or her
designee), at its principal executive office. Such notice shall state that the Optionee or other
authorized person is electing to exercise the Option and the number of Shares in respect of which
the Option is being exercised and shall be signed by the person or persons exercising the Option.
In the event the Company has designated an Award Administrator (as defined below), the Option may
also be exercised by giving notice (including through electronic means) in accordance with the
procedures established from time to time by the Award Administrator. Any exercisable portion of
the Option or the entire Option, if then wholly exercisable, may be exercised in whole or in part,
provided that partial exercise shall be for whole shares of Common Stock only. If requested by the
Committee, such person or persons shall (i) deliver this Agreement (including the Award Letter) to
the Secretary of the Company who shall endorse thereon a notation of such exercise and (ii) provide
satisfactory proof as to the right of such person or persons to exercise the Option.

          5.2 The notice of exercise described in Section 5.1 shall be accompanied by either (i) payment
of the full purchase price for the Shares in respect of which the Option is being exercised and of
all applicable Withholding Taxes (as defined in Section 11) pursuant to Section 11 hereof (such
payment to be made in cash, by delivering Shares, by withholding a portion of the Shares otherwise
issuable or by any combination thereof) or (ii) instructions from the Optionee to the Company
directing the Company to deliver a specified number of Shares directly to a designated broker or
dealer pursuant to a cashless exercise election, in which case the Company must receive, prior to
the issuance of the Shares in respect of which the Option is being exercised, payment of the full
purchase price for the Shares in respect of which the Option is being exercised and all applicable
Withholding Taxes pursuant to Section 11 hereof (such payment to be made in cash, by delivering
Shares, by withholding a portion of the Shares otherwise issuable or by any combination thereof).
The value of any Shares withheld or delivered in satisfaction of the purchase price for the Shares
in respect of which the Option is being exercised and/or Withholding Taxes shall be determined by
reference to the Fair Market Value of such Shares as of the date of such

- 2 -

 

withholding or delivery. In the event that Withholding Taxes are satisfied by withholding a
portion of the Shares otherwise issuable in connection with an exercise of the Option, the Company
shall not withhold any Shares in excess of the minimum number of Shares necessary to satisfy the
applicable Withholding Taxes.

          5.3 Upon receipt of the notice of exercise and any payment or other documentation as may be
necessary pursuant to Sections 5.1 and 5.2 relating to the Shares in respect of which the Option is
being exercised, the Company shall, subject to the Plan and this Option Agreement, take such action
as may be necessary to effect the transfer to the Optionee of the number of Shares as to which such
exercise was effective.

          5.4 The Optionee shall not be deemed to be the holder of, or to have any of the rights and
privileges of a stockholder of the Company in respect of, Shares purchased upon exercise of the
Option until (i) the Option shall have been exercised pursuant to the terms of this Option
Agreement and the Optionee shall have paid the full purchase price for the number of Shares in
respect of which the Option was exercised and any applicable Withholding Taxes and (ii) the Company
shall have issued the Shares in connection with such exercise.

6. Termination of Employment.

          6.1 If, prior to the date of the initial vesting of the Option pursuant to Section 4 hereof
(the “Initial Vesting Date”), the Optionee’s employment with the Company and its subsidiaries shall
be terminated for any reason, other than death or permanent disability (as herein defined), the
Optionee’s right to exercise the Option shall terminate as of the effective date of termination
(the “Termination Date”) and all rights hereunder shall cease (unless otherwise provided for by the
Committee in accordance with the Plan). For purposes hereof, “permanent disability” means
incapacity due to physical or mental illness as a result of which the Optionee becomes eligible for
benefits under the applicable long-term disability plan or policy of the Company or the applicable
subsidiary of the Company which is in effect at the time Optionee became incapacitated.

          6.2 If the Optionee’s employment with the Company and its subsidiaries shall be terminated by
reason of death or permanent disability, the Option shall become immediately fully exercisable as
to 100% of the Shares subject to the Option, and the Optionee or the executor or administrator of
the estate of the Optionee or the person or persons to whom the Option shall have been validly
transferred by the executor or the administrator pursuant to will or the laws of descent or
distribution shall have the right, within one year from the date of the Optionee’s death or
permanent disability, to exercise the Option, subject to any other limitation contained herein on
the exercise of the Option in effect at the date of exercise.

          6.3 If, on or after the Initial Vesting Date, the Optionee’s employment with the Company and
its subsidiaries shall be terminated for any reason other than for Cause or death or permanent
disability, the Optionee shall have the right within three months after the Termination Date (or,
if the Optionee’s employment with the Company and its subsidiaries is terminated by reason of a
qualified retirement as herein defined, within three years after the Termination Date) to exercise
the Option to the extent that installments thereof shall have been or become exercisable at the
Termination Date and shall not have been exercised, subject to any other limitation contained
herein on the exercise of the Option in effect at the date of exercise, and (unless otherwise
provided for by the Committee in accordance with the Plan) the Optionee’s right to exercise any
installments of the Option that were not exercisable at the Termination Date (if any) shall
terminate as of the Termination Date. If the Optionee’s employment is terminated for Cause, the
Option shall terminate as of the Termination Date, whether or not exercisable. For purposes
hereof, “Cause” means the Optionee’s (i) intentional failure to perform reasonably assigned duties,
(ii) dishonesty or willful misconduct in the performance of duties, (iii) engaging in a transaction
in connection with the performance of duties to the Company or its subsidiaries which transaction
is adverse to the interests of the Company or its subsidiaries and is engaged in for

- 3 -

 

personal profit or (iv) willful violation of any law, rule or regulation in connection with the
performance of duties (other than traffic violations or similar offenses). In addition, “qualified
retirement” means the Optionee (a) terminates employment with the Company and its subsidiaries
other than for Cause (and is not subject to termination for Cause at the time of such termination)
more than one year after the Grant Date, (b) is available for consultation with the Company or any
of its subsidiaries at the reasonable request of the Company or one of its subsidiaries and (c)
terminates employment on or after attaining age 65 and completing at least five years of service in
the aggregate with the Company and its subsidiaries (which service must be continuous through the
date of termination except for a single break in service that does not exceed one year in length).

          6.4 If the Optionee shall die within the three-month period (or the three-year period, if
applicable) referred to in Section 6.3 above, the Optionee or the executor or administrator of the
estate of the Optionee or the person or persons to whom the Option shall have been validly
transferred by the executor or administrator pursuant to will or the laws of descent and
distribution shall have the right, within one year from the date of the Optionee’s death (or, if
longer and applicable under Section 6.3 above, within the original three-year period referred to
therein), to exercise the Option to the extent that the Option was exercisable at the date of
death, subject to any other limitation contained herein on the exercise of the Option in effect at
the date of exercise.

          6.5 The Participant’s rights with respect to the Option shall not be affected by any change in
the nature of the Participant’s employment so long as the Participant continues to be an employee
of the Company or any of its subsidiaries. Whether (and the circumstances under which) employment
has been terminated and the determination of the Termination Date for the purposes of this
Agreement shall be determined by the Committee or (with respect to any employee other than an
“Executive Officer” as defined under the Plan) its designee (who, at the date of this Agreement,
shall be the Company’s Vice President of Human Resources), whose good faith determination shall be
final, binding and conclusive; provided, that such designee may not make any such
determination with respect to his or her own employment.

7. Nontransferability.

          The Option shall not be transferable other than by will or by the laws of descent and
distribution, and during the lifetime of the Optionee, the Option shall be exercisable only by the
Optionee, except that the Option may be transferred to and exercised by a family member or family
members of the Optionee, or transferred to an irrevocable trust or trusts established for the
benefit of the Optionee’s family members during this Optionee’s lifetime. After the death of the
Optionee, any exercisable portion of the Option may, prior to the time when the Option becomes
unexercisable under Section 6.2 or 6.4, be exercised by the Optionee’s personal representative or
by any person empowered to do so under the Optionee’s will or under the then applicable laws of
descent and distribution.

8. No Right to Continued Employment.

          Nothing in this Option Agreement or the Plan shall be interpreted or construed to confer upon
the Optionee any right to continue employment by the Company or any of its subsidiaries, nor shall
this Agreement or the Plan interfere in any way with the right of the Company or any of its
subsidiaries to terminate the Optionee’s employment at any time for any reason whatsoever, whether
or not with Cause.

9. Adjustments.

          In the event that the outstanding shares of the Common Stock are, from time to time, changed
into or exchanged for a different number or kind of shares of the capital stock of the Company or
other securities of the Company by reason of a merger, consolidation, recapitalization,
reclassification, stock split, stock dividend, combination of capital stock, or other similar
increase or decrease in the number of shares outstanding without receiving compensation therefor,
the Committee shall, in

- 4 -

 

accordance with the terms of the Plan, make an appropriate and equitable adjustment in the number
and kind of Shares or other consideration as to which such Option, or portions thereof then
unexercised, shall be exercisable and the exercise price therefor. Any such adjustment made by the
Committee shall be final, binding and conclusive upon the Optionee, the Company and all other
interested persons. Any such adjustment may provide for the elimination of any fractional share
which might otherwise become subject to the Option. This paragraph shall also apply with respect
to any extraordinary dividend or other extraordinary distribution in respect of the Common Stock
(whether in the form of cash or other property).

10. Effect of a Change in Control.

          10.1 Notwithstanding anything contained in the Plan or this Agreement to the contrary, in the
event of a Change in Control, (a) the Option becomes immediately and fully exercisable as to 100%
of the Shares subject to the Option, and (b) upon termination of an Optionee’s employment with the
Company, following a Change in Control, the Option shall remain exercisable until one year after
termination, but in no event beyond the Exercise Term. The Company reserves the right to change or
modify in any way the definition of Change in Control set forth in this Option Agreement and any
such change or modification shall be binding on the Optionee.

          10.2 For the purposes of this Option Agreement, “Change in Control” shall mean the first to
occur of the following:

	 	a.	 	The acquisition by any person or group (including a group
within the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act), other
than the Company or any of its subsidiaries, of beneficial ownership (within
the meaning of Rule 13d-3 promulgated under the Exchange Act) of a majority of
the combined voting power of the Company’s then outstanding voting securities,
other than by any employee benefit plan maintained by the Company;
	 
	 	b.	 	The sale of all or substantially all the assets of the Company
and its subsidiaries taken as a whole; or
	 
	 	c.	 	The election, including the filling of vacancies, during any
period of 24 months or less, of 50% or more, of the members of the Board of
Directors, without the approval of Continuing Directors, as constituted at the
beginning of such period. “Continuing Directors” shall mean any director of
the Company who either (i) is a member of the Board of Directors on the Grant
Date, or (ii) is nominated for election to the Board of Directors by a majority
of the Board which is comprised of directors who were, at the time of such
nomination, Continuing Directors.

11. Withholding of Taxes.

          As a condition to the issuance of Shares in respect of any exercise of the Option or any other
issuance or payment to the Optionee hereunder, the Optionee shall pay to the Company (and the
Company shall have the right to deduct from any distribution of cash to the Optionee) the minimum
amount necessary to satisfy Federal, state, local and foreign withholding tax requirements, if any
(“Withholding Taxes”) with respect to such exercise, issuance or payment.

12. Optionee bound by the Plan.

          The Optionee hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all
the terms and provisions thereof.

- 5 -

 

13. Modification of Agreement.

          This Agreement may be modified, amended, suspended or terminated, and any terms or conditions
may be waived, but, subject to paragraphs 6.5 and 10.1 and to the terms and conditions of the Plan,
only by a written instrument executed by the parties hereto.

14. Severability.

          Should any provision of this Agreement be held by a court of competent jurisdiction to be
unenforceable or invalid for any reason, the remaining provisions of this Agreement shall not be
affected by such holding and shall continue in full force in accordance with their terms.

15. Governing Law.

          The validity, interpretation, construction and performance of this Agreement shall be governed
by the laws of the State of New York without giving effect to the conflicts of laws principles
thereof. If the Optionee has received a copy of this Agreement (or the Plan or any other document
related hereto or thereto) translated into a language other than English, such translated copy is
qualified in its entirety by reference to the English version thereof, and in the event of any
conflict the English version will govern.

16. Successors in Interest.

          This Agreement shall inure to the benefit of and be binding upon any successor to the Company.
This Agreement shall inure to the benefit of the Optionee or the Optionee’s legal representatives.
All obligations imposed upon the Optionee and all rights granted to the Company under this
Agreement shall be final, binding and conclusive upon the Optionee’s heirs, executors,
administrators and successors.

17. Administration.

          The Committee shall have the power to interpret the Plan and this Option Agreement and to
adopt such rules for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret or revoke any such rules. All actions taken and all
interpretations and determinations made by the Committee shall be final and binding upon the
Optionee, the Company and all other interested persons. No member of the Committee shall be
personally liable for any action determination or interpretation made in good faith with respect to
the Plan or the Options. In its absolute discretion, the Board of Directors may at any time and
from time to time exercise any and all rights and duties of the Committee under the Plan and this
Option Agreement.

18. Resolution of Disputes.

          Any dispute or disagreement which may arise under, or as a result of, or in any way related
to, the interpretation, construction or application of this Agreement shall be determined by the
Committee. Any determination made hereunder shall be final, binding and conclusive on the Optionee
and Company for all purposes.

19. Data Privacy Consent.

          As a condition of the grant of the Option, the Optionee hereby consents to the collection, use
and transfer of personal data as described in this paragraph. The Optionee understands that the
Company and its subsidiaries hold certain personal information about the Optionee, including name,
home address and telephone number, date of birth, social security number, salary, nationality, job
title, ownership interests or directorships held in the Company or its subsidiaries, and details of
all stock

- 6 -

 

options or other equity awards or other entitlements to shares of common stock awarded,
cancelled, exercised, vested or unvested (“Data”). The Optionee further understands that the
Company and its subsidiaries will transfer Data among themselves as necessary for the purposes of
implementation, administration and management of the Optionee’s participation in the Plan, and that
the Company and any of its subsidiaries may each further transfer Data to any third parties
assisting the Company in the implementation, administration and management of the Plan. The
Optionee understands that these recipients may be located in the European Economic Area or
elsewhere, such as the United States. The Optionee hereby authorizes them to receive, possess, use,
retain and transfer such Data as may be required for the administration of the Plan or the
subsequent holding of shares of common stock on the Optionee’s behalf, in electronic or other form,
for the purposes of implementing, administering and managing the Optionee’s participation in the
Plan, including any requisite transfer to a broker or other third party with whom the Optionee may
elect to deposit any shares of common stock acquired under the Plan. The Optionee may, at any time,
view such Data or require any necessary amendments to it.

20. Limitation on Rights; No Right to Future Grants; Extraordinary Item of Compensation.

          By accepting this Agreement and the grant of the Option evidenced hereby, the Optionee
expressly acknowledges that (a) the Plan is discretionary in nature and may be suspended or
terminated by the Company at any time; (b) the grant of the Option is a one-time benefit that does
not create any contractual or other right to receive future grants of options, or benefits in lieu
of options; (c) all determinations with respect to future option grants, if any, including the
grant date, the number of Shares granted, the exercise price and the exercise date or dates, will
be at the sole discretion of the Company; (d) the Optionee’s participation in the Plan is
voluntary; (e) the value of the Option is an extraordinary item of compensation that is outside the
scope of the Optionee’s employment contract, if any, and nothing can or must automatically be
inferred from such employment contract or its consequences; (f) Options are not part of normal or
expected compensation for any purpose and are not to be used for calculating any severance,
resignation, redundancy, end of service payments, bonuses, long-service awards, pension or
retirement benefits or similar payments, and the Optionee waives any claim on such basis; and (g)
the future value of the underlying Shares is unknown and cannot be predicted with certainty. In
addition, the Optionee understands, acknowledges and agrees that the Optionee will have no rights
to compensation or damages related to option proceeds in consequence of the termination of the
Optionee’s employment for any reason whatsoever and whether or not in breach of contract.

21. Subsidiary.

          As used herein, the term “subsidiary” shall mean, as to any person, any corporation,
association, partnership, joint venture or other business entity of which 50% or more of the voting
stock or other equity interests (in the case of entities other than corporations), is owned or
controlled (directly or indirectly) by that entity, or by one or more of the Subsidiaries of that
entity, or by a combination thereof.

22. Award Administrator.

          The Company may from time to time to designate a third party (an “Award Administrator”) to
assist the Company in the implementation, administration and management of the Plan and any Options
granted thereunder, including by sending Award Letters on behalf of the Company to Optionees, and
by facilitating through electronic means acceptance of Option Agreements by Optionees and Option
exercises by Optionees.

23. Book Entry Delivery of Shares.

          Whenever reference in this Agreement is made to the issuance or delivery of certificates
representing one or more Shares, the Company may elect to issue or deliver such Shares in book
entry form in lieu of certificates.

- 7 -

 

24. Acceptance.

          This Agreement shall not be enforceable until it has been executed by the Optionee. In the
event the Company has designated an Award Administrator, the acceptance (including through
electronic means) of the Option contemplated by this Option Agreement in accordance with the
procedures established from time to time by the Award Administrator shall be deemed to constitute
the Optionee’s acknowledgment and agreement to the terms and conditions of this Option Agreement
and shall have the same legal effect in all respects of the Optionee having executed this Option
Agreement by hand.

	 	 	 	 	 
	 

	 	By:
	 	L-3 COMMUNICATIONS HOLDINGS, INC.
	 
	 	 	 	 
	 

	 	 	 	/s/ Michael T. Strianese
	 

	 	 	 	 
	 

	 	 	 	Michael T. Strianese

President and Chief Executive Officer
	 
	 	 	 	 
	 

	 	 	 	/s/ Steven M. Post
	 

	 	 	 	 
	 

	 	 	 	Steven M. Post

Senior Vice President, General Counsel and 

     
Corporate Secretary
	 
	 	 	 	 
	Acknowledged and Agreed

as of the date first written above:
	 	 	 	 
	 
	 	 	 	 
	 

Optionee Signature

	 	 	 	 

- 8 -

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00161-of-00352.parquet"}]]