Document:

Separation Agreement

 EXHIBIT 10.2 
  
 SEPARATION AGREEMENT 
  
 Firearms Training Systems, Inc. (“Employer” or the “Company”) and John A. Morelli (“Employee” or “you”) agree that
the following Separation Agreement and General Release (“Agreement”) sets out their complete agreement and understanding regarding the Employee’s termination of employment with the Employer. 
  

	1.	The Employer and you agree that your last date of employment with the Employer is August 3, 2004 (your “Termination Date”). If you sign this Agreement and do not revoke
it, the Employer will provide you with the severance benefits described in paragraph 2 below. 

  

	2.	After this Agreement becomes effective you will receive the following benefits: 

  

	 	a.	The Employer will pay you one-year’s base salary of One Hundred fifty Thousand Dollars ($150,000) over an twelve-month period (the “Severance Period”) ($5,769.24
bi-weekly for twenty-six pay periods) on the Employer’s regular paydays after your Termination Date, less applicable withholdings. 

  

	 	b.	Your group medical/dental coverage will cease on your Termination Date. Thereafter, you shall have the right to continue medical/dental benefits in accordance with the Consolidated
Omnibus Budget Reconciliation Act (“COBRA”) for up to eighteen months. If you elect to continue your coverage under COBRA, the Company will reimburse your COBRA premiums during the Severance Period. 

  

	 	c.	All unused accrued vacation hours will be paid on the payday following your Termination Date. 

  

	 	d.	Stock Options: 

  
 Series H—150,000 shares of Class A, at a price of $0.01 per share. Exercisable only upon sale of company. 
  
 You will have eighteen months from the Termination Date to exercise Series H
Options only if the company changes ownership. 
  

	3.	You agree that: 

  

	 	a.	You release and discharge the Employer, its benefits plans and programs, and all of its officers, directors, employees, agents, and trustees (“collectively the “Released
Parties”) from any and all losses, expenses, liabilities, claims, rights, and entitlements of every kind and description (collectively the “Claims”), 

  

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 whether known or unknown, that you have now or may later claim to have had against any of the Released
Parties arising out of anything that has occurred up through the date you sign this Agreement, including without limitation any Claims arising out of your employment or separation of employment with the Employer, and specifically including any
claims for back pay, reinstatement, front pay, personal injuries, breach of contract (express or implied), or for recovery of any losses or other damages to you or your property based on any alleged violation of Title VII of the Civil Rights Act of
1964, 42 U.S.C. § 2000e etseq. (prohibiting discrimination on account of race, sex, color, national origin, or religion); the Americans With Disabilities Act of 1990, 42 U.S.C. § 12101 etseq. (prohibiting
discrimination on account of disabilities); the Age Discrimination in Employment Act (“ADEA”), 29 U.S.C. § 621 etseq. (prohibiting discrimination on account of age); the Employee Retirement Income Security Act of 1974,
29 U.S.C. § 1001 etseq.; the Family and Medical Leave Act of 1993, 29 U.S.C. § 2601 etseq.; 42 U.S.C. § 1981 etseq.; Vietnam Era Veterans’ Readjustment Assistance Act of 1974, 38 U.S.C.
§ 4301, etseq.; the Georgia Equal Employment for Persons with Disabilities Code, O.C.G.A. §§ 34-6A-1 to 34-6A-6 (prohibiting discrimination on account of disability); the Georgia Sex Discrimination in Employment Act,
O.C.G.A. §§ 34-5-1 to 34-5-7; or any other federal, state, county, or local statutory or common law claim. 
  

	 	b.	You have not and will not file or pursue any claims, complaints, charges, or lawsuits against any of the Released Parties about anything that has occurred before you sign this
Agreement. With respect to claims asserted under the ADEA, this subparagraph shall apply only to claims, complaints, charges, or lawsuits challenging a past employment action as a violation of the ADEA. 

  

	 	c.	You will not do or say anything which criticizes or disparages the Company or its officers, directors, managers, shareholders or employees, or its management, policies, or
practices; which disrupts or impairs the Company’s normal, ongoing business operations; or which harms the Company’s reputation with its employees, suppliers, customers, counsel, or the public. This provision does not apply on occasions
when you are subpoenaed or ordered by a court or other governmental authority to testify or give evidence and must, of course, respond truthfully, or to conduct otherwise protected by the Sarbanes-Oxley Act or any similar state laws. However, other
than claims you may believe you have against the Company with respect to your own employment, you acknowledge and affirm that you are unaware of any past, present, or contemplated actions or inactions by the Company which constitute a violation of
any federal, state, or local law, rule, or regulation. 

  

	 	d.	You agree to direct potential employers to contact Jim Hall to verify your employment with the Employer and agree that Mr. Hall will upon request confirm your dates of employment
and positions held. Mr. Hall will verify your salary if you request disclosure of such information in writing. 

  

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	 	e.	You will indemnify and hold the Released Parties harmless from any loss, cost, damage, or expense (including attorneys’ fees) incurred by them arising out of your breach of any
portion of this Agreement. Any claims you assert under the ADEA are expressly excluded from the provisions contained in this subparagraph. 

  

	 	f.	You agree to return immediately to Mr. Hall any and all Employer property in your possession or subject to your control including, but not limited to, any keys, key cards, computer
equipment, identification cards, and all written or recorded materials, documents, records, computer disks, notes, or other papers relating to the affairs of the Employer. 

  

	 	g.	You agree to keep the existence of this Agreement, its terms, and any amount paid hereunder completely confidential and will not disclose the existence, terms or any amount paid
under this Agreement to anyone. 

  

	 	h.	This Agreement is not, and shall not be interpreted or construed as, an admission or indication that the Employer or you have engaged in any wrongful or unlawful conduct of any
kind. 

  

	 	i.	You agree that you will not apply for employment with the Employer and that the Employer will have no obligation to rehire you. 

  

	 	j.	This Agreement shall be construed as a whole, according to its fair meaning, and not strictly for or against either of the parties. 

  

	 	k.	The provisions of this Agreement are severable, and the invalidity of any provision does not affect the validity of other provisions. This Agreement shall be interpreted and
governed by the law of the State of Georgia. 

  

	 	l.	This Agreement constitutes the entire agreement between parties. It supersedes all prior or contemporaneous oral or written understandings, statements, representations or promises
with respect to the terms and conditions of your employment and/or termination of your employment, including but not limited to the Employment Agreement between you and FATS dated November 1, 2000, and all subsequent amendments to that Employment
Agreement. However, this Agreement shall not affect the applicability of paragraphs 9 (Standstill) and 10 (Inventions) of the November 1, 2000 Employment Agreement which shall remain in effect. 

  

	 	m.	During the Severance Period, you will be available to respond to future inquiries or reasonable requests for assistance from the Employer related to matters arising during your
employment. 

  

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	4.	Agreement Concerning Protection of Information and Non-solicitation. 

  

	 	(a)	Definitions. For the purposes of this Agreement, the following terms shall have the following meanings: 

  

	 	(i)	“Confidential Information” shall mean any information, without regard to form, relating to Company’s customers, operation, finances, and business that derives
economic value, actual or potential, from not being generally known to other Persons, including, but not limited to, technical or nontechnical data, formulas, patterns, compilations (including compilations of customer information), programs,
devices, methods, techniques, processes, financial data or lists of actual or potential customers (including identifying information about customers), whether or not in writing. Confidential Information includes information disclosed to Company by
third parties that Company is obligated to maintain as confidential. 

  

	 	(ii)	“Person” shall mean any individual, corporation, bank, partnership, joint venture, association, joint stock company, trust, unincorporated organization or other entity.

  

	 	(iii)	“Customers” shall mean customers of FATS (1) that Employee contacted indirectly or directly on behalf of Company during the one year period preceding the Termination Date;
or (2) about whom Employee possessed Confidential Information during the one year period preceding the Termination Date. 

  

	 	(b)	Confidential Information 

  

	 	(i)	Employee shall hold in strictest confidence and shall not use, except for the benefit of Company, any Trade Secrets of Company, as that term is defined under applicable law.

  

	 	(ii)	For three (3) years after the Termination Date, Employee shall hold in strictest confidence and shall not use, except for the benefit of Company, any Confidential Information of
Company. 

  

	 	(c)	Solicitation of Customers. For two (2) years after the Termination Date, Employee will not solicit Customers for the purpose of providing firearm training simulation
services or selling products that are similar to or compete with the Company’s services. 

  

	 	(d)	Solicitation of Employees. For two (2) years after the Termination Date, Employee will not induce or solicit to leave employment with Company anyone who is an
employee of Company and was an employee of Company at any time during the one-year period preceding the Termination Date. 

  

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	5.	You acknowledge and understand that: 

  

	 	a.	This Agreement does not limit your right to make a claim for workers’ compensation, unemployment compensation, or pension benefits, nor does it waive any rights or claims that
may arise after the date when you sign it. You have twenty-one (21) days to review and consider this Agreement. You are advised to consult with an attorney before entering into this Agreement. If you decide to accept this Agreement, you must deliver
a signed copy of the Agreement to Jim Hall on or before the 21st day after you receive this Agreement. Mr. Hall’s fax number is 770-813-1914. 

  

	 	b.	This Agreement does not become enforceable or effective until seven (7) days after it is signed and submitted to Jim Hall, and you can revoke it at any time during those seven days.
If you decide to revoke this Agreement, you must deliver a signed notice of revocation to Mr. Hall on or before the end of the seven-day revocation period. Upon delivery of a timely notice of revocation, this Agreement will be null and void, and
none of the parties to this Agreement will have any rights or obligations under it. This Agreement shall be effective on the eighth day after you sign it if it has not been revoked before then by you as provided above (the “Effective
Date”). 

  

	 	c.	You have read this Agreement and you understand its terms and conditions, that you have had the opportunity to obtain all advice and information you need about matters relating to
this Agreement, that you have been advised to consult with an attorney before entering into this Agreement, that you have not been coerced into signing this Agreement and that you voluntarily agree to abide by its terms because they are satisfactory
to you, that no promise or inducement of any kind has been made to you to cause you to sign this Agreement except as described above, and that the pay and other benefits that you will receive as a result of signing this Agreement are adequate and
the only consideration for this Agreement. 

  

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 Agreed to and accepted as of this              day of
            , 2004. 
  

									
	 	 	 	 	 
				
	 	 	 	 	 	 	 
	John A. Morelli	 	 	 	 	 	Date

  
  
  

									
	FIREARMS TRAINING SYSTEMS, INC.	 	 	 	 
					
	By:	 	 	 	 	 	 	 	 
	 	 	Ron Mohling	 	 	 	 	 	Date

  

 6Second Amendment to Lease Agreement

 Exhibit 10.6E 
  
 SECOND AMENDMENT TO OFFICE LEASE 
  
 This Second Amendment to Office Lease (this “Amendment”) is entered into effective as of the 28th day of June, 2004, by and between GATEWAY CENTER LLC, a Delaware limited liability company (“Landlord”) and TERCICA, INC.
(formerly known as “Tercica Medica, Inc.”), a Delaware corporation (“Tenant”). 
  
 RECITALS 
  
 A.
Landlord and Tenant previously entered into that certain “Office Lease 651 Gateway Boulevard” dated July 24, 2003, as amended by that certain First Amendment to Office Lease dated September 24, 2003 (collectively, the “Lease”),
whereby Landlord leased to Tenant and Tenant leased from Landlord the premises located on the eighth (8th) and ninth
(9th) floor of the Building located at 651 Gateway Boulevard, South San Francisco, CA, commonly known as Suites 855,
860, 880 and 940, containing Twelve Thousand One Hundred Forty-Three (12,143) rentable square feet. (the “Premises”). 
  
 B. In addition, Tenant is the subtenant of Elan Pharmaceuticals, Inc., pursuant to ((i) that certain “Sublease 651 Gateway Boulevard (Suite 950)” dated June 24,
2002, and (ii) that certain “Sublease 651 Gateway Boulevard (Suite 980)” dated March 21, 2003 (collectively, the “Subleases”). Under the Subleases, Tenant is leasing Suite 950 and Suite 980 in the Building, (collectively, the
“Sublet Premises”). The Sublet Premises contains Nine Thousand Nine Hundred One (9,901) rentable square feet. 
  
 C. The Lease and the Subleases by their terms expire as of December 14, 2004. The parties hereto wish to amend the Lease to include the Sublet Premises in the Premises,
to extend the Lease Term, to provide for new Base Rent, and to otherwise amend the terms and conditions of the Lease as hereinafter set forth. 
  
 NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows: 
  
 AGREEMENT 
  
 1. Recitals. The foregoing recitals
are true and correct and are incorporated herein by this reference. 
  
 2.
Defined Terms. All capitalized terms used in this Amendment that are not defined herein shall have the meanings as defined in the Lease. 
  
 3. Inclusion of Sublet Premises in Premises. Landlord and Tenant hereby agree that, from and after December 15, 2004, the Sublet Premises shall be deemed to be a
part of the Premises for all purposes under the Lease. Landlord and Tenant hereby agree that, from and after December 15, 2004, the size of the Premises for all purposes under the Lease shall be Twenty Two Thousand and 

  

 
Forty-Four rentable square feet. The Lease (including Section 2.2 of the Summary) is hereby amended accordingly. 
  
 3. Extension of Term. Landlord and Tenant hereby agree that the Lease Term shall be
extended for an additional six (6) months, from December 15, 2004 until June 14, 2005 (such six (6) month period hereinafter, the “Extended Term”). The Lease (including Section 3.2 of the Summary) is hereby amended accordingly. 

 
 4. Base Rent for Extended Term. Landlord and Tenant hereby agree that the Base Rent
for the Premises for the duration of the Extended Term shall be as follows: 
  

	 	A.	Annual Base Rent: Four Hundred Forty Nine Thousand Six Hundred Ninety-Seven and 60/100 Dollars ($449,697.60); 

  

	 	B.	Monthly Installment of Base Rent: Thirty Seven Thousand Four Hundred Seventy Four and 80/100 Dollars ($37,474.80); and 

  

	 	C.	Annual Base Rental Rate Per Rentable Square Foot: Twenty and 40/100 Dollars ($20.40) 

  
 The Lease (including Section 4 of the Summary) is hereby amended accordingly. 
  
 5. Premises in “AS-IS” Condition. Tenant hereby acknowledges and agrees that it is currently in possession of the Premises
(including, without limitation, the Sublet Premises), and that, except as set forth in the Lease with respect to Landlord’s repair, maintenance and replacement obligations set forth in the Lease, Landlord has no obligation to alter, modify,
remodel or otherwise improve the Premises (including, without limitation, the Sublet Premises), it being agreed between Landlord and Tenant that Tenant shall accept the Premises (including, without limitation, the Sublet Premises) in its current
“AS-IS WHERE-IS” condition, without representation or warranty. 
  
 6.
Ratification of Lease. Landlord and Tenant hereby acknowledge that, due to an error in drafting by Landlord the Lease was originally executed by Landlord as “Gateway Center LLC, a California limited liability company.” The
actual legal entity constituting Landlord is “Gateway Center LLC, a Delaware limited liability company.” Landlord and Tenant hereby ratify the original Lease. 
  
 7. Real Estate Brokers. Landlord and Tenant hereby represent and warrant to the other that neither party hereto has authorized
or employed, or acted by implication to authorize or employ, any real estate broker or salesperson to act for it in connection with this Amendment and the extension of the Lease term contemplated herein except for BT Commercial, representing Tenant
and Landlord. Each party hereto shall indemnify, defend and hold the other harmless from and against any and all claims by any real estate broker or salesperson whom either party authorized or employed, or acted by implication to authorize or
employ, to act for such party in connection with this Amendment, other than BT Commercial. Landlord shall be solely responsible for paying all brokers commissions due in connection with this Amendment pursuant to a separate written agreement between
Landlord and BT Commercial. 
  

 7. No Change. Except as set forth herein, all of the terms and conditions of the Lease remain unchanged and in
full force and effect. 
  
 IN WITNESS WHEREOF, Landlord and Tenant
have executed this Amendment as of the day and date first written above. 
  

															
	Landlord:	 	 	 	Tenant:	 	 
			
	GATEWAY CENTER, LLC,	 	 	 	TERCICA, INC.,
	 a Delaware limited liability company
	 	 	 	 a Delaware corporation 

					
	By:	 	 BOSTON PROPERTIES LIMITED PARTNERSHIP,
	 	 	 	 By:
	 	 /s/ Timothy P. Lynch

	 	 	 a Delaware limited partnership,
 its sole member
	 	 	 	 	 	 Its:
	 	 Timothy P. Lynch

							
	 	 	By:	 	 BOSTON PROPERTIES, INC.
	 	 	 	 By:
	 	 	 	 
	 	 	 	 	 a Delaware corporation,
	 	 	 	 	 	 Its:
	 	 
	 	 	 	 	 its general partner
	 	 	 	 	 	 	 	 
								
	 	 	 	 	By:	 	 /s/ Bob Pester
	 	 	 	 	 	 	 	 
	 	 	 	 	 Name:
	 	 Bob Pester
	 	 	 	 	 	 	 	 
	 	 	 	 	 Title:
	 	 Senior Vice President and
 Regional Manager

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