Document:

Exhibit

Amendment No. 1 to Building F and Amenities Building H Lease

AMENDMENT NO. 1 TO LEASE
This AMENDMENT NO. 1 TO LEASE (“Amendment”) is dated as of this 9th day of November, 2015 (the “Amendment Date”), by and between SANTA CLARA CAMPUS PROPERTY OWNER I LLC, a Delaware limited liability company (“Landlord”) and PALO ALTO NETWORKS, INC., a Delaware corporation (“Tenant”),
RECITALS
A.Landlord and Tenant entered into that certain Lease dated as of May 28, 2015 (the “Lease”) for premises (the “Leased Premises”) estimated to contain approximately 340,000 rentable square feet of floor area (+/- 8,000 rentable square feet), consisting of the entirety of the two (2) buildings located in the City of Santa Clara, County of Santa Clara, State of California and defined in such Lease as “Building F” and “Amenities Building H,” all as more particularly described in the Lease; and  
B.Landlord and Tenant now desire to amend the Lease on the terms and conditions set forth herein.  
AGREEMENT
NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Landlord and Tenant hereby agree as follows:
1.Definitions.  All capitalized terms used in this Amendment but not otherwise defined shall have the meanings assigned to them in the Lease.  
2.Right of First Refusal to Lease.  Landlord and Tenant intend that Tenant’s rights set forth in Paragraph 16.2 of the Lease shall apply only to Building D.  Therefore:
(a)all occurrences of the term “Available Space” in Paragraph 16.2 of the Lease are hereby amended to read as follows: “Available ROFR Space,” and
(b)Paragraph 16.2(f) of the Lease is hereby amended in its entirety to read as follows:
(f)    As used herein, “Available ROFR Space” means all rentable space in Building D, subject only to Existing Superior Rights.  
3.Right of First Offer to Lease Adjacent Property.  The paragraph heading for Paragraph 16.3 of the Lease is hereby amended to read as follows: “Right of First Offer to Lease Adjacent Property.”
4.Right of First Offer to Lease Space in the Project.  Article 16 of the Lease is hereby amended by adding a new Paragraph 16.8 at the end thereof, to read as follows: 
16.8    Right of First Offer to Lease Space in the Project.  
(a)Provided that (i) Tenant is then is leasing the entirety of the Buildings, Building E, and Building G, (ii) Tenant is not then in monetary or material non-monetary default under this Lease, the Building E Lease, or the Building G Lease beyond the applicable cure period, if any, expressly set forth in this Lease, and (iii) neither Tenant nor any entity controlling Tenant has theretofore

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Amendment No. 1 to Building F and Amenities Building H Lease

filed for bankruptcy, then when there is any Available ROFO Space (as defined below) which Landlord desires to market for lease (the “Designated ROFO Space”), Landlord shall deliver a written notice (the “ROFO Notice”) to Tenant setting forth the Designated ROFO Space and offering the same to Tenant on such terms as Landlord would be willing to lease the Designated ROFO Space to a third party (the “Acceptable Terms”). 
(b)Tenant shall notify Landlord in writing within nine (9) Business Days after receipt of the ROFO Notice of Tenant’s election to lease the Designated ROFO Space on the Acceptable Terms (“Tenant’s ROFO Election Notice”).  Tenant shall not have the right to lease less than the entire Designated ROFO Space.  Anything in this Lease to the contrary notwithstanding, Tenant shall not have the right to deliver Tenant’s ROFO Election Notice during any period that Tenant is in in monetary or material non-monetary default under any of the terms, covenants or conditions of this Lease with respect to which it has received a written notice from Landlord if such default remains uncured, and the time periods provided for herein shall not be tolled or extended during Tenant’s cure thereof, but the foregoing shall not be read to prevent Tenant from curing the applicable default and then delivering Tenant’s OFO Election Notice once the default is cured if such cure is completed within the applicable cure period, if any, expressly set forth in this Lease, and Tenant’s ROFO Election Notice is delivered within the time periods provided above.
(c)Failure of Tenant to deliver Tenant’s ROFO Election Notice within the required time period (i) shall be deemed an election by Tenant to not lease the Designated ROFO Space, Landlord shall then be free to lease the Designated ROFO Space to third parties in accordance with the terms set forth in the ROFO Notice or such terms as Landlord shall elect, and Tenant shall have no further rights to lease the Designated ROFO Space; provided, however, that (i) Tenant’s rights under this Paragraph 16.8 shall continue for any portion of the Available ROFO Space which was not referenced in the ROFO Notice, (ii) Tenant’s rights under this Paragraph 16.8 with respect to the Designated ROFO Space shall continue to the extent such space becomes available for lease again during the Lease Term or any extension thereof, and (iii) in the event that Landlord proposes to lease such Designated ROFO Space at a Net Effective Rental Rate that is less (on a per rentable square foot basis) than ninety-five percent (95%) of the Net Effective Rental Rate specified in the Acceptable Terms, Tenant’s rights under this Paragraph 16.8 shall be revived as to the Designated ROFO Space and Landlord shall deliver a revised ROFO Notice (the “Revised ROFO Notice”) offering such Designated ROFO Space to Tenant at such proposed lower rate and Tenant shall have the right to lease such Designated ROFO Space on the terms set forth in such Revised ROFO Notice by notice to Landlord given within nine (9) Business Days after Tenant’s receipt thereof.  As used in this Agreement, the term “Net Effective Rental Rate” shall mean the net present value of the rent and additional rent payable under the ROFO Notice, taking into account any allowances and the fair market value of any work to be performed by Landlord at its expense in connection with any such proposed transaction using a discount rate equal to the Prime Rate plus two percent (2%) as reported in the Wall Street Journal from time to time, or any successor published from time to time as reasonably selected by Landlord.
(d)If Tenant delivers Tenant’s ROFO Election Notice within the time period required herein, Tenant shall be bound and obligated to lease from Landlord, and Landlord shall be bound and obligated to lease to Tenant, the Designated ROFO Space, and Landlord and Tenant shall within fifteen (15) days after the date Tenant delivers Tenant’s Election Notice, enter into a lease for the Designated ROFO Space in substantially the same form as this Lease (but with appropriate modifications, by reference to the Bridge Space Lease, where applicable, in the event that the Designated ROFO Space does not constitute an entire Building), but reflecting the Acceptable Terms.  
(e)Notwithstanding the foregoing, Tenant’s rights pursuant to this Paragraph 16.8 are subject only to Existing Superior Rights.

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Amendment No. 1 to Building F and Amenities Building H Lease

(f)As used herein, “Available ROFO Space” means all rentable space in Building A, Building B, and Building C, whether now existing or hereinafter constructed, subject only to Existing Superior Rights.
(g)Notwithstanding any contrary or inconsistent provision of this Lease (including the exhibits and schedules attached hereto), the rights of Tenant under this Paragraph 16.8 shall be personal to Palo Alto Networks, Inc. and shall not be assignable to or exercisable by any sublessee or assignee other than a Permitted Transferee; provided, however, if the rights of Tenant under this Paragraph 16.8 are exercised by a Permitted Transferee described in clause (i) of Paragraph 7.2(b) above, then such exercise is conditioned upon the execution and delivery by Palo Alto Networks, Inc. of a guaranty, in a form acceptable to Landlord in its reasonable discretion, of such Permitted Transferee’s obligations under its lease of the Designated ROFO Space.  
5.Right of First Offer to Purchase and Right of First Refusal to Purchase (Unsolicited Purchase Proposal).  For purposes of clarification, Landlord and Tenant acknowledge that the term “Project,” solely as used in Paragraph 16.4 and Paragraph 16.5 of the Lease, means such portion of the Project then owned by Landlord or its affiliates; provided, however, that if Landlord or its affiliates decide to sell Building D alone pursuant to either Paragraph 16.4 or Paragraph 16.5 of the Lease, then Paragraphs 16.4 and 16.5 will not be applicable to such sale if both (i) Building D is the only portion of the Project then owned by Landlord or its affiliates, and (ii) Tenant theretofore had the opportunity to purchase any of Buildings E, F, G, and Amenities Building H pursuant to Paragraph 16.4 or Paragraph 16.5 and failed to do so.
6.Estoppel Certificate.  Upon Landlord’s request from time to time, if Tenant is then Palo Alto Networks, Inc., it shall execute and deliver to Landlord an estoppel certificate confirming which buildings in the Project are then leased by Palo Alto Networks, Inc.  Such estoppel certificate may be relied upon by Landlord, by the owners of (and lenders secured by) Building A, Building B, Building C, and Building D, and by each of Landlord’s and such owners’ then-current and prospective lenders and investors, and if requested by Landlord, such estoppel certificate(s) shall be addressed to one or more of such parties.  
7.Condition Precedent To Lease Amendment. Landlord’s obligations hereunder are subject to the receipt by Landlord, no later than fifteen (15) business days after the date hereof, of the Lender’s Consent, as hereinafter defined.  Landlord hereby agrees to use diligent efforts to obtain the Lender’s Consent by such date; however, if Landlord does not receive the Lender’s Consent by such date, this Amendment shall, at Landlord’s option, thereupon be deemed terminated and of no further force or effect, and neither party shall have any further rights, obligations, or liabilities hereunder.  As used herein, the term “Lender’s Consent” means a written consent to this Amendment and the amendment to Bridge Space Lease entered into substantially concurrently with this Amendment, in form reasonably satisfactory to Landlord, executed by the holder of the promissory note secured by any deed of trust encumbering the fee interest in the real property of which the Leased Premises are a part.
8.Ratification.  The Lease, as amended by this Amendment, is hereby ratified by Landlord and Tenant and Landlord and Tenant hereby agree that the Lease, as so amended, shall continue in full force and effect.

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Amendment No. 1 to Building F and Amenities Building H Lease

9.Miscellaneous.
9.1    Voluntary Agreement.  The parties have read this Amendment and the mutual releases contained in it, and on the advice of counsel they have freely and voluntarily entered into this Amendment.
9.2    Attorney’s Fees.  If either party commences an action against the other party arising out of or in connection with this Amendment, the prevailing party shall be entitled to recover from the non-prevailing party, reasonable attorney’s fees and costs of suit.
9.3    Successors.  This Amendment shall be binding on and inure to the benefit of the parties and their successors.
9.4    Counterparts.  This Amendment may be signed in two or more counterparts.  When at least one such counterpart has been signed by each party, this Amendment shall be deemed to have been fully executed, each counterpart shall be deemed to be an original, and all counterparts shall be deemed to be one and the same agreement.
IN WITNESS WHEREOF, Landlord and Tenant have executed this Amendment as of the date first written above.
	
		
	 
	TENANT:

PALO ALTO NETWORKS, INC. , a Delaware corporation

By:  __/s/ Mark D. McLaughlin____________________________
Printed Name: Mark D. McLaughlin_______________________
Title: President

By: _/s/ Steffan Tomlinson_______________________________
Printed Name: _Steffan Tomlinson__________________________
Title:  Chief Financial Officer

	 
	 

[SIGNATURES CONTINUED ON FOLLOWING PAGE]

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Amendment No. 1 to Building F and Amenities Building H Lease

[SIGNATURES CONTINUED FROM PRIOR PAGE]

	
		
	 
	LANDLORD:

SANTA CLARA CAMPUS PROPERTY OWNER I LLC, a Delaware limited liability company

	 
	By:   Santa Clara Campus Partners LLC,
         a Delaware limited liability company,
         its Sole Member

         By:   Menlo Equities Development Company IX LLC,
                  a California limited liability company,
                  its Manager

                 By:   Menlo Equities V LLC,
                          a California limited liability company,
                          its Manager
      
                          By:   Menlo Legacy Holdings L.P.,
                                   a California limited partnership,
                                   its Managing Member
      
                                   By:/s/ Henry D. Bullock______  
                                   Henry D. Bullock, President

5EX-10.1

October 28, 2015

Drew A. Morin

1008 Howard Grove View

Davidsonville, MD 21035

Dear Drew:

As discussed, this letter confirms the details of your involuntary separation from
TeleCommunication Systems, Inc. (“TCS”), and all parent companies, subsidiaries, successors,
affiliated and/or related entities (collectively referred to as the “Company”). While these
matters never are easy, we hope that your separation can occur as smoothly as possible and on an
amicable basis. Consistent with the terms of your Employment Agreement executed as on March 5,
2010 (including any duly executed amendments thereto), the Company offers you the following
separation package contingent upon your entering into the agreement below:

1. As required by your Employment Agreement, you are hereby provided with thirty (30) days’
notice of the end of your employment. While the effective date of the end of your employment with
the Company will be November 27, 2015 (“Separation Date”), you are not expected to perform or
conduct any work on behalf of the Company after today unless you are asked. We will contact you
with any transitions question we may have and you agree to assist as needed. The parties intend
that your “last day of service” is not earlier than the date of your “separation from service” from
the Company, as all of those terms are defined in Treasury Regulations Section 1.409A-1(h).

2. The Company will continue to pay you your base salary of $359,068.78, less applicable
deductions, through your Separation Date. Thereafter, in exchange for entering into and not
revoking this Agreement and consistent with your Employment Agreement, the Company will pay you:
(a) twelve months of your current base pay of $359,068.78, less applicable deductions, in a lump
sum; and (b) six (6) months of your current base pay, less application deductions, as salary
continuation pursuant to TCS’ regular payroll process. The six (6) month severance amount shall be
paid out in substantially equal installments in accordance with the Company’s payroll practices and
will begin on the first payroll date that occurs after January 1, 2016. Solely for purposes of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), each installment
payment is considered a separate payment. The severance set forth above will not paid or commence
until all TCS company property is received, all TCS’s debts, if any, are paid in full and this
Agreement becomes effective. As no bonus payment has been calculated as of your Separation Date,
no bonus is owed pursuant to Paragraph 5.1.3(B) of your Employment Agreement.

3. In addition to the payments described in paragraph 2, you will also be paid for any unused
vacation. This payment will be made in a lump sum on the next regularly scheduled pay date. As
per Company policy, you will not receive money for unused sick or personal time.

4. Your rights to exercise your stock options as to any vested shares will be as set forth in
the applicable stock option plan. Your rights concerning stock units held by you will also be set
forth in the applicable plan documents.

5. You are entitled to continue, at your expense, your health insurance coverage for the next
18 months under COBRA. In accordance with the terms of the plan, your health insurance coverage
will end on November 30, 2015, if you do not elect COBRA. Information will be mailed to you within
fourteen days explaining COBRA election.

6. Your participation in the Company’s 401(K) Plan will end on November 27, 2015. You
can receive a distribution of your account balance in accordance with the terms of the Plan.

7. You agree that, within ten (10) days of the Separation Date, you will submit your final
documented expense reimbursement statement reflecting all business expenses you incurred through
the Separation Date, if any, for which you seek reimbursement. The Company will reimburse you for
reasonable business expenses pursuant to its regular business practice.

8. As you will be paid six months of salary continuation, you agree not to file for
unemployment benefits during this time period. If you file after this time period, the Company
will not contest any claim you make for unemployment compensation.

9. Any and all other company sponsored benefits, including long- and short-term disability and
life insurance, will end as of November 27, 2015. Any conversion and/or continuation rights that
you may have regarding such insurance will be in accordance with the terms of the insurance
policies.

10. Except as expressly provided for above, you will be entitled to no other or further
compensation, remuneration or benefits from the Company. You further acknowledge that you have
been paid for all time worked, have received all the leave, leaves of absences and leave benefits
and protections for which you may be eligible and have not suffered any on-the-job injury for which
you have not already filed a claim.

11. You agree, on behalf of yourself and anyone acting on your behalf, not to disparage the
Company, and the Company’s directors, managers, partners, employees, Board of Director members,
attorneys’, agents and affiliates, in any manner likely to be harmful to them or their business,
business reputation or personal reputation; provided that you may respond accurately and fully to
any question, inquiry or request for information when required by legal process. Similarly, the
Company will not make any public statements with the intent of disparaging you.

12. As part of your employment you had access to information of a nature not generally
disclosed to the public, you will be expected and agree to keep confidential and not disclose to
anyone, the business, proprietary and trade secret information in your possession. The
post-employment restrictive covenants contained in Section 7 of your Employment Agreement will
remain in full force and effect and by entering into this Agreement you hereby acknowledge and
agree to the enforceability of those provisions. You further understand that neither this provision
nor anything else in this Agreement or any other agreement prohibits you from reporting possible
violations of federal law or regulation to any governmental agency or entity, including but not
limited to the Department of Justice, the Securities and Exchange Commission, Congress, and any
agency Inspector General, or making other disclosures protected under the whistleblower provisions
of federal law or regulation.

13. You will return promptly all Company property, including equipment, all files, documents
and/or other records prepared for or by the Company and you understand and agree that you are not
to retain any copies thereof in any format.

14. In keeping with our intent to allow for an amicable separation, and as part of our accord,
it is agreed that you release the Company, its parent company and any of its subsidiaries,
affiliates or related companies, of and from any and all claims and causes of action, demands,
obligations, agreements, promises, liabilities, damages, costs and/or fees arising out of or
relating to your employment, including the termination of your employment. By this paragraph, you
are waiving, on behalf of yourself, your heirs, representatives and assigns, any claims which may
exist against the Company, its directors, officers, employees, agents, and all other related or
affiliated persons, firms or entities. This includes all rights and obligations under any federal,
state or local laws pertaining to employment, including, but not limited to, all employment
discrimination laws, such as the Age Discrimination in Employment Act, the Older Workers Benefit
Protection Act, Title VII of the Civil Rights Act of 1964, as amended, the Americans with
Disabilities Act, the Equal Pay Act, the Family and Medical Leave Act, the Maryland Human Rights
Act or any other state or local law, etc. Obviously, nothing in this paragraph will affect the
ability of either party to enforce rights or entitlements specially provided for under this
agreement, as set forth above, or any rights or claims that may arise after the date of this
agreement. Naturally, the Company’s obligations under this agreement are contingent upon your
compliance with the terms and conditions provided for herein.

Notwithstanding the foregoing, you are not releasing any right of indemnification you may have
for any liabilities arising from your actions within the course and scope of your employment with
the Company or within the course and scope of your role as an officer of the Company. Also
excluded from this Agreement are any claims which cannot be waived by law. Furthermore, this
release is not meant to be construed to prevent you from filing a charge or complaint with any
governmental agency or participating in any investigation or proceeding conducted by any such
agency.

15. If you assert any claim against the Company or any of the other entities or individuals in
violation of the foregoing release, you understand and agree that you may be liable for the costs
and attorneys’ fees that the Company incurs in defending against any such claim, as permitted by
law. However, nothing in this paragraph will affect the ability of either party to enforce rights
or entitlements specifically provided for under this agreement, nor will it affect any rights with
respect to any future claims arising out of events that may occur after the execution of this
agreement.

16. As required by the Older Workers Benefit Protection Act, you acknowledge and understand
that:

a. you have been advised in writing of the right to consult with an attorney before signing
this Agreement, and have been given adequate time to do so;

b. you have been given a period of at least 21 days within which to review and consider this
Agreement before signing it; and

c. you may revoke this Agreement by providing written notice to the Company within seven (7)
days following its execution, and that the Agreement shall not become effective and enforceable
until such seven day period has expired. Any notice of revocation of this Agreement shall not be
effective unless given in writing and received by the Company via personal delivery, overnight
courier or U.S. Mail, postage prepaid, to the following address:

Mr. David J. Wilson

TeleCommunication Systems, Inc.

275 West Street

Annapolis, MD 21401

17. This agreement has been entered into, and will be interpreted and enforced in accordance
with the laws of the State of Maryland. If any portion of this Agreement shall to any extent be
declared unenforceable or illegal by a court of competent jurisdiction, the remainder of this
Agreement shall not be affected thereby, and each portion and provision of this Agreement shall be
valid and enforceable to the fullest extent permitted by law.

18. This agreement, its contents and all information pertaining to its negotiations are to
remain confidential. Nothing in this paragraph will affect the Company’s obligation to make lawful
reports regarding your employment as required by law.

19. The parties intend that this Agreement will be administered in accordance with Section
409A of the Code. To the extent that any provision of this Agreement is ambiguous as to its
compliance with Section 409A of the Code, the provision shall be read in such a manner so that all
payments hereunder comply with Section 409A of the Code. The parties agree that this Agreement may
be amended, as reasonably requested by either party, and as may be necessary to fully comply with
Section 409A of the Code and all related rules and regulations in order to preserve the payments
and benefits provided hereunder without additional cost to either party. The Company, however,
makes no representation or warranty and shall have no liability to you or any other person if any
provisions of this agreement are determined to constitute deferred compensation subject to Section
409A of the Code but do not satisfy an exemption from, or the conditions of, such Section.  You
understand and acknowledge that you shall be solely responsible for reporting as income all
payments referenced above and for properly paying any taxes required by law in connection with all
separation pay, and any other benefits expressly provided under this agreement.  You agree to
defend, indemnify, and hold the Company harmless from and against any and all actual and threatened
claims, liabilities, assessments, and penalties associated with your failure to properly report as
income and/or pay any required taxes associated with this agreement or the payments or benefits
referenced above. 

20. You acknowledge that this agreement is full and accurate embodiment of the understanding
between you and the Company and that it supersedes any prior agreements or understandings made by
the parties other than your signed Employee Development, Nondisclosure and Noncompetition Agreement
and the post-employment provisions of your Employment Agreement. The terms of this agreement may
not be modified, except by mutual consent of the parties. All modifications must be reduced to
writing and signed by both parties to be effective.

21. This agreement will be binding upon and inure to the benefit of (i) your heirs, executors
and legal representatives and (ii) any successor of the Company. None of your rights to receive
any form of compensation payable pursuant to this agreement may be assigned or transferred except
by will or the laws of descent and distribution. Any other attempted assignment, transfer,
conveyance or other disposition of your right to compensation or other benefits will be null and
void.

22. Any dispute arising under this agreement will be resolved by arbitration in Baltimore,
Maryland in accordance with the then prevailing rules of JAMS, Inc., before an arbitrator or
arbitrators shall be final, binding and conclusive on the parties. The Company and you will split
equally any and all costs of the arbitration process, excluding any attorneys’ fees incurred with
regard to such arbitration.

If the terms of our proposal are acceptable, please indicate your acceptance by signing below
and returning to me a signed copy of this agreement. We will not implement the terms of this
Agreement, or begin paying you any of the severance benefits offered, unless we receive a signed
copy of the agreement back from you and the seven day revocation period has passed.

Please let me know if you have any questions.

	 	 	 	Sincerely,

	 	 	 	/s/ Richard A. Young

	 	 	Richard A. Young

Executive Vice President

Chief Operating Officer

AGREED and ACCEPTED

/s/ Drew A. Morin

     

Drew A. Morin

Date: November 18, 2015

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