Document:

exhibit.htm

EX-10.1 

 

 

SUBLEASE AGREEMENT

 

 THIS SUBLEASE AGREEMENT (this “Sublease”) is made this 1st day of February, 2012, by and between Webroot Inc. (formerly known as Webroot Software, Inc.), a Delaware corporation (the “Sublandlord”), and Avistar Communications Corporation, a Delaware corporation (the “Subtenant”).  Sublandlord and Subtenant are hereinafter sometimes collectively referred to as the “Parties.”

 

 

W I T N E S S E T H

 

 Sublandlord is party to that certain Lease Agreement, dated March 17, 2010 wherein Sublandlord, as tenant, has leased certain space as described below (the “Premises”) from Crossroads Associates, a California general partnership, and Clocktower Associates, a California general partnership (collectively, “Landlord”) in the building located at 1855 South Grant Street, San Mateo, California (the “Building”).  The document comprising the aforesaid Lease Agreement is attached hereto as Exhibit A and is referred to herein as the “Master Lease.”  Capitalized terms used and not otherwise defined herein shall have the meaning given to such terms in the Master Lease.

 

 Landlord, Sublandlord and Subtenant are entering into a separate Consent to Sublease (the “Consent to Sublease”), whereby Landlord shall acknowledge its consent to the Sublease.  A copy of the Consent to Sublease is attached hereto as Exhibit B.

 

 NOW, THEREFORE, for and in consideration of the mutual covenants and agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the Parties hereto agree and covenant as follows:

 

1. TERM.  Sublandlord hereby subleases to Subtenant, and Subtenant hereby subleases from Sublandlord, the Premises, for the term (the “Sublease Term”) of this Sublease which shall commence on the later of: (i) May 1, 2012; or (ii) the date on which a fully-executed Consent to Sublease has been delivered to Sublandlord (the “Commencement Date”) and shall terminate on April 30, 2015.  Subtenant shall have no right to extend the Sublease Term or the term of the Master Lease and shall have no right to exercise any extension rights granted to Sublandlord, as Tenant, under the Master Lease.  It is Sublandlord’s intention to  relocate out of the Premises on or before February 15, 2012 (the “Early Access Date”), and Sublandlord agrees to allow Subtenant to enter the Premises on and after the Early Access Date and prior to the Commencement Date under all of the terms of the Master Lease, with the exception of paying rent, for the purposes of installing voice and data connections and preparing the Premises for occupancy.

 

2. PREMISES.  The Premises consists of approximately 13,384 rentable square feet located on the 4th floor of the Building.  Subtenant shall have no right to expand the size of the Premises by exercise of any expansion options or rights of first refusal or rights of first offer contained in the Master Lease.  Subtenant accepts the Premises and the Building containing the Premises in their as-is, where-is condition, and accepts that the Premises were in good condition at the time possession was taken, provided, however, that the foregoing is not intended to limit Landlord’s repair and maintenance obligations under the Master Lease, if any exist.  Further, Subtenant hereby agrees that if Landlord requires the removal of any alterations or improvements made to the Premises by Subtenant in accordance with the provisions of the Master Lease, Subtenant shall remove the same and restore the Premises.

 

3. ACCESS TO PREMISES.  Subject to the terms and conditions of the Master Lease, Subtenant shall have access to the Premises 24 hours per day, 7 days per week.

 

 

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4. RENT.  Subject to Paragraph 5 below, this Sublease shall be considered a Full Service lease.  Upon execution of this Sublease, Subtenant shall pay the sum of $32,121.60 to Sublandlord as payment for the first full month of rent owed by Subtenant to Sublandlord.  Subtenant shall pay to Sublandlord (i) $0.00 per rentable square foot during the first two months of the Sublease Term, (ii) $2.40 per rentable per square foot during the third through twelfth month of the Sublease Term, (iii) $2.50 per rentable square foot during the thirteenth through twenty fourth month of the Sublease Term and (iv) $2.60 per rentable square foot during the twenty fifth through thirty sixth month of the Sublease Term (the “Fixed Rent”) in monthly payments paid on the first day of each month during the Sublease Term.  All Fixed Rent, additional rent and all other amounts payable by Subtenant under this Sublease (collectively, “Rent”), shall constitute and be collectible as rent under this Sublease, and shall be payable to Sublandlord at its address as set forth herein, unless Sublandlord shall otherwise so direct in writing.

 

5. ADDITIONAL RENT.  

 

For purposes of this Paragraph 5, the following terms shall have the meanings set forth below: (i) “Base Operating Costs” shall mean Operating Costs payable by Sublandlord for the Premises during the Base Year; (ii) “Base Year” shall mean the calendar year 2012; (iii) “Operating Costs” shall mean the categories of “Additional Rent” (as said term is described in the Master Lease) as described in Paragraph 4D of the Master Lease; and (iv) “Subtenant’s Percentage Share” shall mean 28.77% (calcaulated as 13,384 / 46,519 = .2877).

 (a)           Subtenant’s Additional Rent Obligations.  In addition to the Fixed Rent payable pursuant to Paragraph 4 (Rent”) above, from and after the expiration of the Base Year, for each calendar year of the Term, Subtenant, as Additional Rent, shall pay Subtenant’s Percentage Share of the amount by which Operating Costs payable by Sublandlord for the then-current calendar year exceed Base Operating Costs.  Specifically, the Fixed Rent shall include all costs to operate and maintain the Complex and Premises, except that Subtenant shall be responsible for 28.77% of the Operating Costs over the Base Operating Costs. Sublandlord shall give Subtenant written notice of Sublandlord’s estimate of the amount of Additional Rent per month payable pursuant to this Paragraph 5 for each calendar year after the Base Year promptly following Sublandlord’s receipt of Landlord’s estimate of the Operating Costs payable under the Master Lease.  Thereafter, the Additional Rent payable hereunder shall be determined and adjusted in accordance with the procedures outlined below. Notwithstanding anything else to the contrary, no Additional Rent shall be payable by Subtenant for Base Operating Costs unless such Base Operating Costs exceed the Base Operating Costs of the Base Year

(b)           Procedure.  The determination and adjustment of Additional Rent contemplated above shall be made in accordance with the following procedures:

(1)           Upon receipt of a statement from Landlord specifying the estimated Operating Costs to be charged to Sublandlord under the Master Lease with respect to each calendar year, or as soon after receipt of such statement as practicable, Sublandlord shall give Subtenant written notice of its estimate of Additional Rent payable for the ensuing calendar year, which estimate shall be prepared based on the estimate received from Landlord (as Landlord’s estimate may change from time to time), together with a copy of the statement received from Landlord.  On or before the first day of each month during each calendar year, Subtenant shall pay to Sublandlord as Additional Rent one-twelfth (1/12th) of such estimated amount together with the Fixed Rent; provided, that Subtenant will have thirty (30) days from the first (1st) notice from Sublandlord of the monthly installment payable hereunder in which to deliver such payment.

(2)            In the event Sublandlord’s notice is not given on or before December of the calendar year preceding the calendar year for which Sublandlord’s notice is applicable, as the case may be, then until the calendar month after such notice is delivered by Sublandlord, Subtenant shall continue to pay to Sublandlord monthly, during the ensuing calendar year, estimated payments of Additional Rent equal to the amounts payable hereunder during the calendar year just ended.  Upon receipt of any such post-December notice Subtenant shall (i) commencing as of the date that is thirty (30) days following such notice, and thereafter for the remainder of the calendar year, pay to Sublandlord monthly such new estimated payments of Additional Rent and (ii) if the monthly installment of the new estimate of such Additional Rent is greater than the monthly installment of the estimate of Additional Rent for the previous calendar year, pay to Sublandlord within thirty (30) days of the receipt of such notice an amount equal to the difference of such monthly installment multiplied by the number of full and partial calendar months of such year preceding the delivery of such notice.

 

 

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(3)           Within thirty (30) days after the receipt by Sublandlord of a final statement of Operating Costs from Landlord with respect to each calendar year, Sublandlord shall deliver to Subtenant a statement of the adjustment to be made for the calendar year just ended, together with a copy of any corresponding statement received by Sublandlord from Landlord.  If on the basis of such statement Subtenant owes an amount that is less than the estimated payments of Additional Rent actually made by Subtenant for the calendar year just ended, Sublandlord shall credit such excess to the next payments of Rent coming due or, if the term of this Sublease is about to expire, promptly refund such excess to Subtenant.  If on the basis of such statement Subtenant owes an amount that is more than the estimated payments of Additional Rent for the calendar year just ended previously made by Subtenant, Subtenant shall pay the deficiency to Sublandlord within thirty (30) days after delivery of the statement from Sublandlord to Subtenant.

 

6. SECURITY DEPOSIT.  Upon execution of this Sublease, Subtenant shall deposit the sum of $32,121.60 with Sublandlord as security for the full and faithful performance by Subtenant of the terms and conditions of this Sublease.  Sublandlord may, following the expiration of applicable cure or grace periods, apply all or any part of the security deposit required herein to cure any default of Subtenant under the terms and conditions of this Sublease or to compensate Sublandlord for any loss or damage of Sublandlord which Sublandlord may suffer by reason of Tenant’s default.  In the event of such application, Subtenant must deposit with Sublandlord an amount equal to the amount of the original security deposit minus the amount applied to cure Subtenant’s default immediately on notice from Sublandlord of the nature and amount of such application.  Sublandlord shall return the deposit to Subtenant, with any interest as may be required by law in the jurisdiction in which the Premises is located, minus any amounts deducted that have not been replaced by Subtenant within a reasonable time, not to exceed thirty (30) days, of the surrender of the Premises by Subtenant to Sublandlord

 

7. ASSIGNMENT; SUBLETTING.  Subtenant will not sublet the Premises, or any portion thereof, or assign this Sublease in whole or in part, for collateral purposes or otherwise, or permit use or occupancy of the Premises, or any portion thereof, by any other person or entity without the prior written consent of Sublandlord which consent may not be unreasonably withheld, it being understood and agreed that Sublandlord shall consider a proposed sublease or assignment by applying the terms and conditions for the same as set forth in the Master Lease; and it is further understood and agreed that Sublandlord shall not be deemed to have been unreasonable in the event that Landlord withholds its consent to an assignment or sublease proposed by Subtenant.  Landlord’s consent shall be required for any assignment or sublease proposed by Subtenant.

 

8. REFERENCE TO MASTER LEASE; SUBORDINATION.  This Sublease is expressly subject and subordinate to all of the terms and conditions of the Master Lease, and all of the terms, provisions and covenants as contained in the Master Lease are incorporated herein by reference, except to the extent inconsistent with the express terms of this Sublease (such as the rental amounts due under this Sublease, which rental amounts are governed by the terms of this Sublease), and except as otherwise expressly set forth herein.  Subtenant hereby covenants and agrees to observe all of the terms, conditions and covenants imposed upon the Tenant under the Master Lease and to perform all of the duties and obligations imposed upon the Tenant thereunder and Sublandlord shall be empowered to enforce said terms as if it were named as the “Landlord” in the Master Lease.  To the extent any provision of this Sublease is inconsistent with any provisions of the Master Lease, this Sublease shall govern and control with respect to the relationship between Subtenant and Sublandlord; provided, however, this Sublease’s silence on an issue which the Master Lease addresses shall not be considered an inconsistency.  In the event the Master Lease shall terminate for any reason, this Sublease shall also terminate.  Sublandlord shall not take any action or fail to take any action in connection with the subleased Premises as a result of which Subtenant would be in violation of any of the provisions of the Master Lease.  Sublandlord shall not voluntarily terminate the Master Lease except in accordance with the provisions thereof.

 

 

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9. INDEMNIFICATION.  Subtenant hereby agrees to indemnify, defend and hold Sublandlord and any of its guarantors harmless from and against any and all costs, claims, actions, damages, demands, expenses (including reasonable attorneys’ fees), injuries, judgments, liabilities, losses and suits, suffered, sustained or incurred by Sublandlord in connection with or as a result of any accident, act or omission, claim, hazard, injury, violation of any health, zoning, fire, building or safety code, ordinance or regulation, death or damage to person or property occurring in the Premises arising, directly or indirectly, in whole or part, out of the business conducted by Subtenant (or any subsubtenant or assignee of Subtenant) in the Premises, or the use or occupancy of the Premises by Subtenant (or any subsubtenant or assignee), or arising, directly or indirectly, in whole or in part, from any act or omission of Subtenant (or any subsubtenant or assignee) or its licensees, servants, agents, employees or contractors or the breach or default by Subtenant of any term, provision, covenant, or condition contained in this Agreement or the Master Lease which Subtenant, by virtue of its occupancy of the Premises or the provisions of this Sublease, is obligated to perform; except to the extent the damage is due to the gross negligence or willful misconduct of Sublandlord.

 

10. REPAIR AND MAINTENANCE; UTILITY COSTS; CHARGES.  Subtenant shall be responsible for, and shall maintain the Premises and shall make all repairs thereto and all maintenance thereof to keep the Premises in good order and repair in accordance with the Master Lease.  Subtenant shall be responsible to procure at its expense all permits and licenses pertaining to Subtenant’s use of the Premises; and Subtenant shall comply with all rules and regulations governing the use and occupancy of the Premises now existing or hereafter promulgated by Landlord pursuant to the Master Lease.

 

Throughout the Sublease Term, Subtenant agrees to pay for all:

 

 

a) Charges by public or private utilities for telephone and data networking equipment within the Premises; and, if Subtenant requires utility services not required under the Master Lease to be provided by Landlord without charge, charges for such additional utility usage within the Premises.

 

b) Any special services requested from time to time by Subtenant, and all sums payable, if any, (without limitation) under the Master Lease for electricity consumed in the Premises.

 

c) Any repairs and maintenance to the Premises in accordance with the Master Lease.

 

d) Any charges accrued by Subtenant as a result of Subtenant’s HVAC use outside of the Building’s normal operating hours, which charges shall be determined by Landlord per the Master Lease.

 

The foregoing list is not intended to be exhaustive of Subtenant’s obligations under this Sublease.

 

 

11. PAYMENT OF RENT; LATE CHARGES AND INTEREST.  Subtenant shall timely pay or cause to be paid to Sublandlord the Rent payable under this Sublease in order that Sublandlord may timely pay the Base Rent as Tenant to Landlord under the Master Lease.  To the extent Subtenant has not made any payments due hereunder within five (5) days after said amount is due, Subtenant shall pay to Sublandlord late charges and interest per the terms of the Master Lease.  The provisions of this section shall in no way relieve Subtenant of the obligation to make all required payments when due, nor shall these provisions in any way limit Sublandlord’s remedies under this Sublease. Sublandlord shall not do any act that (i) constitutes a non-monetary default under the Master Lease, (ii) causes the Master Lease to be terminated, (iii) causes Subtenant to become liable for any damages, costs, claims, or penalties to Landlord, or (iv) increase the basic monthly rent or other obligations of Subtenant as Tenant under the Master Lease.  In the event Landlord provides Sublandlord a termination notice as permitted under the Master Lease, Landlord agrees that a copy of such notice shall also be delivered to Subtenant in conjunction with delivery to Sublandlord or within three (3) business days thereafter.

 

 

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12. USE; QUIET ENJOYMENT.  The Premises may be used and occupied solely for general office purposes permitted by the Master Lease and for no other purpose without the prior written consent of Sublandlord.  Subtenant agrees that the Premises will not be used at any time for the storage or distribution of any hazardous materials or substances, or for any other purpose which violates any federal, state or local environmental statute, ordinance or regulation.  Sublandlord makes no representation, express or implied, with respect to the condition or fitness of the Premises for any particular purpose.

 

13. ALTERATIONS; IMPROVEMENTS. Subtenant will not make any alterations or improvements to the Premises, or any portion thereof without: (i) the prior written consent of Sublandlord in each instance being first obtained, which consent may not be unreasonably withheld by Sublandlord, and (ii) complying with the provisions of the Master Lease relating to alterations and improvements.  Landlord’s prior written consent shall be obtained for any alteration that requires Landlord’s consent under the Master Lease and Sublandlord shall not be deemed to have been unreasonable if Landlord withholds its consent.  Further, Sublandlord may withhold its consent if Landlord requires the removal of such alteration prior to or after the expiration of the term of the Master Lease unless Subtenant agrees to such removal as a condition of Sublandlord’s consent.  Sublandlord shall be entitled to all of the rights afforded Landlord under the Master Lease with respect to such alterations and improvements without diminishing any of the rights of Landlord thereunder.

 

14. INSURANCE.  During the term of this Sublease, at Subtenant’s expense, Subtenant agrees to maintain a policy of (i) commercial general liability insurance with combined limits of $1,000,000 per occurance/$2,000,000 aggregate for injuries to or death of persons and/or property damage occurring in, or about the Premises or the Complex; (ii) fire and property damage insurance insuring the personal property, inventory, trade fixtures and leasehold improvements within the Premises for the full replacement value thereof.  The proceeds from any of such policies shall be used for the repair or replacement of such items so insured; and (iii) workers compensation insurance and any other employee benefit insurance sufficient to comply with all applicable laws, if any. Landlord and Sublandlord shall be named as additional insureds, as their interests may appear.  Within ten (10) days after the date this Sublease has been fully executed and delivered, Subtenant shall deliver to Sublandlord a certificate of insurance evidencing the existence of such insurance.  At least thirty (30) days before any insurance policy shall expire, Subtenant shall deliver to Sublandlord replacement certificates of insurance together with receipted bills therefore as aforesaid. All insurance shall be primary, non-contributory and shall have a waiver of subrogation in favor of the Sublandlord.

 

15. WAIVER OF CLAIMS.  Sublandlord and Subtenant hereby mutually release each other from any and all liabilities for any loss or damage caused to their respective property by casualty, even if such casualty shall be brought about by the fault or negligence of Sublandlord or Subtenant, respectively, or any persons claiming under them, provided, however, that said waivers do not adversely affect the insurance coverages required to be maintained under the Master Lease or this Sublease or otherwise maintained by a Party and any additional costs for insurance waivers shall be paid by the Party for whose benefit said waiver is obtained.

 

Notwithstanding anything herein to the contrary, Sublandlord and Subtenant each hereby releases the other, and Subtenant hereby also releases Landlord, and Landlord, by granting its consent to this Sublease, also hereby releases Subtenant, from any and all liability or responsibility to the party granting such release (a “Releasing Party”) and anyone claiming by, through or under the Releasing Party by way of subrogation or otherwise, for loss or damage to the property of the Releasing Party, even if the loss or damage shall have been caused by the fault or negligence of the other party, or anyone for who such party may be responsible, to the extent such loss or damages is covered by any insurance policy required to be carried by Subtenant, Sublandlord, or Landlord, pursuant to the terms of this Sublease or the Master Lease.

 

 

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16. DEFAULT.  It shall be a default on the part of Subtenant under this Sublease if (i) Subtenant shall fail to make timely payment of Rent hereunder, or (ii) Subtenant shall fail to fulfill any of its other obligations, covenants and agreements set forth herein or under the Master Lease.  Upon the occurrence of an default, Sublandlord shall have all the rights and remedies with respect to such default as are provided to Landlord under the Master Lease for default by Tenant thereunder.  Sublandlord shall have the right, but shall not be obligated, to cure any breach or default by Subtenant under this Sublease or the Master Lease, and any and all costs incurred by Sublandlord in connection with the curing of any such breach or default shall become due and payable to Sublandlord within five (5) days after written demand to Subtenant therefore.

 

The right to enter any judgment for possession against Subtenant herein granted may be exercised on behalf of any assignee of the Sublandlord in his, her or their name and shall also be exercisable as often as there is default on the part of the Subtenant and a resultant termination of this Lease, not being exhausted by one or more exercises thereof.

 

17. SURRENDER.  Upon expiration of the Sublease Term, or if, at any time prior to expiration of the Sublease Term, this Sublease shall be terminated as a result of Subtenant’s default hereunder or otherwise, Subtenant shall immediately quit and surrender up to Sublandlord possession of the Premises, in a broom-clean condition and in good order and repair, ordinary wear and tear excepted, and Subtenant shall remove all of its personal property therefore, subject to the terms of the Master Lease, including, without limitation, Paragraph 8 thereof.  If such removal shall injure or damage the Premises, Subtenant, at its expense, agrees to make repairs needed as a result of the installation and subsequent removal in good and workmanlike fashion.  All alterations, additions and improvements made by or on behalf of Subtenant, and not otherwise removed by Subtenant, shall at Sublandlord’s election become Sublandlord’s property without compensation, allowance or credit to Subtenant. Subtenant agrees to indemnify and save Sublandlord harmless from and against any and all loss, cost, expense or liability (including reasonable attorneys’ fees) resulting from the failure of, or the delay by, Subtenant in surrendering the premises on or before the expiration date, including, without limitation, any claims made by Landlord or any succeeding Subtenant due to, or arising from, such failure or delay.

 

18. BROKERAGE COMMISSION.  Upon execution of this Sublease, Sublandlord shall be obligated to pay a brokerage commission to Subtenant’s broker, CT/BT Commercial, equal to $1.50 per rentable square foot, which shall be payable (i) 50% on the date of execution of this Sublease, and (ii) 50% upon Subtenant’s occupancy of the Premises.

 

19. PARKING.  During the term, Subtenant shall be entitled to its pro rata share of Sublandlord’s parking allotment at no additional charge.

 

20. SIGNAGE.                      Sublandlord and Subtenant shall reasonably work together to determine the lobby signage options available under the Master Lease or any other applicable law, rule or regulation.  Sublandlord shall permit Subtenant to install mutually agreeable signage to be determined in the ground floor lobby, as well as the elevator lobby area of the Premises, subject to any requirements and limitations under the Master Lease, including any required approvals from Landlord.

 

 

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21. FURNITURE, FIXTURES & EQUIPMENT.  Subtenant shall have access to all office and conference room furniture, workstations, chairs and tables located within the Premises for Subtenant’s exclusive use throughout the Sublease Term at no additional cost.  Attached hereto as Exhibit C, and incorporated herein by this reference, is a list of all such furniture, fixtures and equipment that Subtenant has a right to use (“Included FF&E”).  Any item not included in Exhibit C shall remain the property of Sublandlord and Subtenant shall have no rights with respect thereto.  For the avoidance of doubt, Subtenant shall not have access to any projectors, televisions, phones or other related equipment.  Subtenant shall be responsible for all damage or loss to any of the Included FF&E, ordinary wear and tear excepted.  Subtenant reserves the right to remove and reconfigure cubicles and will be responsible for the restoration of any removal or reconfiguration of said cubicles at the expiration or earlier termination of this Sublease.

 

22. NOTICES.  Any notice required or permitted to be given by either party to the other pursuant to this Sublease (a Notice) shall be in writing, addressed to the party at the following address(es):

 

If to Sublandlord:

Webroot Inc.

385 Interlocken Crescent, Suite 800

Broomfield, CO 80021

Attn:  Legal Department

If to Subtenant:

Avistar Communications Corporation

1855 S. Grant Street, 4th Floor

San Mateo, CA  94402

Attn: Deb Laudo, Manager, HR & Administrative Services

 

All such Notices shall be deemed to have been given when delivered and receipted by the party to whom addressed, in the case of personal delivery, or three (3) days after the day so mailed or one (1) day after delivery to the overnight delivery service.  Either party may, by notice as aforesaid, designate a different address or addresses for Notices intended for it.

 

 

23. MISCELLANEOUS.

 

a)   This Sublease constitutes the entire agreement of the Parties relative to the subject matter hereof, and all prior negotiations, conversations, representations, agreements and understandings are specifically merged herein and superseded hereby.  This Sublease may be modified only by a written instrument executed by the Parties hereto.  This Sublease is the result of the prior negotiations, conversations, representations, agreements and understandings of the Parties and is to be construed as the jointly prepared product of the Parties.

 

b) The terms and provisions of this Sublease shall inure to the benefit of and be binding upon the Parties and their respective successors, representatives and assigns (subject to the provisions of this Sublease).

 

c) The guarantors of the Master Lease (if any) shall be considered third party beneficiaries of this Sublease to the extent their interests may be affected by a breach of this Sublease.

 

 

d) Time is of the essence of this Sublease.

 

e) This Sublease shall be construed in accordance with and governed by the laws of the State of California.

 

f) The paragraph headings used in this Sublease have been inserted for convenience and reference only and should not be construed to limit or restrict the terms and provisions, covenants and conditions hereof.

 

 

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g) If any term or provision of this Sublease or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Sublease, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each remaining term and provision of this Sublease shall be valid and be enforced to the fullest extent permitted by law.

 

h) Whenever any provision of this Sublease requires the consent or approval of Sublandlord, Sublandlord shall not be deemed to unreasonably withhold its consent or approval if the prior consent or approval of Landlord is required under the Master Lease and Sublandlord is unable to obtain such consent or approval of Landlord without the acceptance by Sublandlord of additional liabilities or obligations or the payment of money by Sublandlord.

 

i) Any and all indemnifications and obligations of Subtenant and Sublandlord pursuant to this Sublease, including, but not limited to, those described in this Sublease, to the extent such obligations arise, commence, are created or occur during the Sublease Term, shall survive the termination of this Sublease.

 

j) All payments of Rent and other amounts due under this Sublease shall be made by Subtenant without offset or other deduction.

 

k) Subtenant shall not, under any circumstances, have the power to subject the Premises to any mechanics’ or materialmen’s liens or other liens of any kind.

 

l) Subtenant represents and warrants to Sublandlord that, except as set forth in Paragraph 18 of this Sublease, no person, company or partnership, is entitled to any real estate commission, finder’s fees or the like from Subtenant arising out of this Sublease, or based on any agreement or understanding with Subtenant.  Subtenant hereby agrees to indemnify, defend and hold Sublandlord harmless from any liability, cost and expense, including, but not limited to, reasonable attorneys fees, which may result from a breach of this warranty by Subtenant.

 

m) Within ten (10) days after Landlord or Sublandlord makes such a request, Subtenant shall deliver a written estoppel certificate, to the requesting party or its lender, it being intended that any such certificate delivered pursuant hereto may be relied upon by any party which may acquire an interest in the Premises.

 

n) Subtenant agrees to permit Landlord and Sublandlord, and their respective agents or other representatives, without abatement of Rent, after reasonable prior notice, to enter into and upon the Premises at all reasonable times for the purpose of examining the same, provided, however, that in no event shall Landlord or Sublandlord or their agents or representatives interfere with the conduct of Subtenant’s business at the Premises.  Subtenant shall have the right to require such inspectors to provide proper identification.

 

 

 

 

 

 

 

 

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    IN WITNESS WHEREOF, the parties have executed this Sublease as of the date set forth above.

 

 

	 	SUBLANDLORD:	 
	 	Webroot Inc. 	 	 
	 	
By: 

	/s/John Post 	 
	 	Name: 	John Post 	 
	 	Its:	VP, Finance	 
	 	 	 	 

	 	SUBTENANT	 
	 	Avistar Communications Corporation 	 
	
 

	
By: 

	/s/Elias MurrayMetzger 	 
	 	Name: 	Elias MurrayMetzger 	 
	 	Its: 	CFO	 
	 	 	 	 

 

 

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EXHIBIT A

 

Master Lease

 

 

(See attached.)

 

 

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EXHIBIT B

 

Consent to Sublease

 

 (See attached.)

 

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EXHIBIT C

 

Included FF&E

 

 (See attached.)

 

 

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4th Floor Inventory List

 

 

Conference Room Tables: 3

 

Conference Room Chairs: 29

 

Desk Chairs: 70

 

Visitor Chairs: 85

 

Number of Offices: 11

 

Number of Cubicles: 61Unassociated Document

Exhibit 4.1

 

BP plc

 

	 RULES OF THE BP P.L.C. SHARE VALUE PLAN
	 
	 	
Directors’ Adoption:

	
[  ] 2012

	 	
Expiry Date:

	
[  ] 2022

 

  

  

  

 

Table of Contents

 

	Contents	 	Page
	 	 	 
	
1

	
Granting Restricted Share Units

	
1

	  	  	  
	
2

	
Before Vesting

	
2

	  	  	  
	
3

	
Vesting of Restricted Share Units

	
3

	  	  	  
	
4

	
What happens when Restricted Share Units Vest

	
3

	  	  	  
	
5

	
Cessation of employment/ personal events

	
5

	  	  	  
	
6

	
Vesting in other circumstances - corporate events

	
6

	  	  	  
	
7

	
Changing the Plan and termination

	
8

	  	  	  
	
8

	
General

	
9

	  	  	  
	
9

	
Definitions

	
11

 

  

i

  

 

Rules of the BP p.l.c. Share Value Plan

 

Introduction

 

This Plan sets out the terms on which Shares may be provided to certain employees of the Company and its subsidiaries. Employees selected for participation in the Plan will be granted  Restricted Share Units which gives them a conditional entitlement to receive Shares. The extent to which Shares are released in respect of Restricted Share Units is subject to continued employment and the satisfaction of conditions over a performance period.

 

	
1

	
Granting Restricted Share Units

 

	
1.1

	
Grantor

 

The Grantor of Restricted Share Units must be:

 

	 	
1.1.1

	
the Company; or

 

	 	
1.1.2

	

any other Member of the Group.

 

Restricted Share Units granted under the Plan, and the terms of those Restricted Share Units, must be approved in advance by the Directors.

 

	
1.2

	
Eligibility

 

The Grantor may grant Restricted Share Units to anyone who is an Employee on the Grant Date in accordance with any selection criteria that the Directors in their discretion may set. However, unless the Directors consider that special circumstances exist, Restricted Share Units may not be granted to an Employee who on or before the Grant Date has given or received notice of termination of employment, whether or not such termination is lawful. However, no Restricted Share Units may be granted to any executive director of the Company without the prior shareholder approval of the shareholders in general meeting, where required under any law or regulation.

 

	
1.3

	
Timing of grant

 

Restricted Share Units may not be granted at any time after the Expiry Date.

 

	
1.4

	
Terms of Restricted Share Units

 

Restricted Share Units are subject to the rules of the Plan and any Performance Condition and must be granted by deed. The terms of the Restricted Share Units must be determined by the Grantor and approved by the Directors. The terms must be set out in the deed, including:

 

	 	
1.4.1

	
the number of Shares subject to the Restricted Share Units or the basis on which the number of Shares subject to the Restricted Share Units will be calculated;

 

	 	
1.4.2

	
any Performance Condition;

 

	 	
1.4.3

	
any other condition specified under rule 1.6;

 

	 	
1.4.4

	
the date of Vesting, unless specified in a Performance Condition; and

 

	 	
1.4.5

	
the Grant Date.

 

  

1

  

 

	
1.5

	
Performance Conditions

 

When granting Restricted Share Units, the Grantor may make Vesting conditional on the satisfaction of one or more conditions linked to the performance of the Company and/or the performance of the Participant. A Performance Condition must be objective and specified at the Grant Date. The Grantor, with the consent of the Directors, may waive or change a Performance Condition in accordance with its terms or if anything happens which causes the Grantor reasonably to consider it appropriate to do so.

 

	
1.6

	
Other conditions

 

The Grantor may impose other conditions when granting Restricted Share Units. Any condition must be specified at the Grant Date and may provide that Restricted Share Units will lapse if it is not satisfied. The Grantor, with the consent of the Directors, may waive or change a condition imposed under this rule 1.6.

 

	
1.7

	
Notification of Restricted Share Units

 

The Company may notify a Participant of the grant of Restricted Share Units and their terms in such manner as it decides.

 

	
1.8

	
No payment

 

A Participant is not required to pay for the grant of any Restricted Share Units.

 

	
1.9

	
Administrative errors

 

If the Grantor grants Restricted Share Units which are inconsistent with rule 1.2, they will lapse immediately.

 

	
1.10

	
Issue of Shares

 

Shares may not be issued or transferred from treasury to satisfy Restricted Share Units without prior approval of this Plan by shareholders of the Company.

 

	
1.11

	
ADSs

 

The Directors may determine that certain Restricted Share Units will be in respect of ADSs and references in these rules to Shares shall be construed accordingly.

 

	
2

	
Before Vesting

 

	
2.1

	
Rights

 

A Participant is not entitled to vote, to receive dividends or to have any other rights of a shareholder in respect of Shares subject to Restricted Share Units until the Shares are transferred to the Participant.

 

	
2.2

	
Restriction on disposal of interests and hedging

 

	 	
2.2.1

	
Subject to rule 2.2.2, a Participant may not sell, transfer, assign, hedge, charge or otherwise dispose of Restricted Share Units (or part of or any interest in Restricted Share Units) and must not enter into any transaction which transfers the risk of price movements with regard to the Shares subject to Restricted Share Units. If he does, whether voluntarily or involuntarily, then the Directors may determine that all of the Restricted Share Units lapse.

 

  

2

  

 

	 	
2.2.2

	
Rule 2.2.1 does not apply:

 

	 	
(i)

	
to the transmission of Restricted Share Units on the death of a Participant to his personal representatives; or

 

	 	
(ii)

	
to the assignment of Restricted Share Units, with the prior consent of the Directors, subject to any terms and conditions the Directors impose.

 

	
2.3

	
Adjustment of Restricted Share Units

 

If there is:

 

	 	
(i)

	
a variation in the equity share capital of the Company, including a capitalisation or rights issue, sub-division, consolidation or reduction of share capital;

 

	 	
(ii)

	
a demerger (in whatever form) or exempt distribution by virtue of Section 1075 of the Corporation Tax Act 2010;

 

	 	
(iii)

	
a special dividend or distribution, or

 

	 	
(iv)

	
any other corporate event which might affect the current or future value of any Restricted Share Units,

 

the Directors may adjust the number or class of Shares or securities subject to the Restricted Share Units.

 

	
3

	
Vesting of Restricted Share Units

 

	
3.1

	
Satisfying conditions

 

As soon as reasonably practicable after the end of the Performance Period, the Directors will determine whether and to what extent any Performance Condition or other condition imposed under rule 1.6 has been satisfied or waived and how many Restricted Share Units Vest.

 

	
3.2

	
Timing of Vesting

 

Subject to rules 1.6, 4.6, 5 and 6, Restricted Share Units Vest, to the extent determined under rule 3.1, on a date determined by the Directors but which shall not be earlier than the date on which the Directors make their determination under rule 3.1 or, if on that date a Dealing Restriction applies to those Restricted Share Units, the first date on which it ceases to apply.

 

	
3.3

	
Lapse

 

To the extent that any Performance Condition is not satisfied at the end of the Performance Period, the Restricted Share Units lapse, unless otherwise specified in the Performance Condition. To the extent that any other condition is not satisfied, the Restricted Share Units will lapse if so specified in the terms of that condition. If any Restricted Share Units lapse under the Plan they cannot Vest and a Participant has no rights in respect of them.

 

	
4

	
What happens when Restricted Share Units Vest

 

	
4.1

	
Transfer

 

Within 30 days of Restricted Share Units Vesting, the Grantor will arrange (subject to rules 4.4, 5.4 and 8.8) for the transfer to, or to the order of, the Participant, of the number of Shares in respect of which the Restricted Share Units have Vested. Subject to rule 4.5, the Participant will be entitled to all rights to Shares where the record dates in respect of such rights fall after the date of transfer.

 

  

3

  

 

	
4.2

	
Dividend Equivalent

 

The number of Shares in respect of which Restricted Share Units Vest shall be increased (“Additional Shares”) as determined by the Directors to take account of the Net Dividends that would have been paid on the number of Shares subject to the Restricted Share Units which have Vested between the beginning of the Performance Period and the date on which the Restricted Share Units Vest (“Dividend Equivalents). The Additional Shares shall be calculated on the basis that Net Dividends were re-invested in Shares at the time the dividends would have been paid.  Additional Shares will be credited to a Participant at Vesting.  All Additional Shares shall be subject to the rules of the Plan and the terms of the Restricted Share Units by reference to which they were granted, including the same Performance Period.

 

The Directors may at any time decide to disapply this rule 4.2 in relation to all or part of a special dividend or dividend in specie which may otherwise be included in rule 4.2.

 

For the purposes of this rule 4.2, “Net Dividends” means the amount of the dividend less any notional tax credit.

 

	
4.3

	
Cash alternative

 

The Grantor may, subject to the approval of the Directors, decide to satisfy Restricted Share Units (including any Additional Shares under rule 4.2) by paying an equivalent amount in cash (subject to rule 4.4). The cash amount must be equal to the Market Value (as at the date of Vesting) of the Shares which would but for the application of this rule have been transferred on Vesting.

 

For the purposes of this rule, “Market Value” means in relation to a Share on any day:

 

	 	
4.3.1

	
the middle market quotation (as derived from the Daily Official List of the London Stock Exchange) on the immediately preceding Business Day; or

 

	 	
4.3.2

	
in relation to an ADS the closing trading price of an ADS as derived from the New York Stock Exchange Inc. on the immediately preceding Business Day.

 

	
4.4

	
Withholding, deductions and offsets

 

	 	
4.4.1

	
The Company, the Grantor, any employing company or trustee of any employee benefit trust may withhold such amount and make such arrangements as it considers necessary to meet its withholding obligations for taxation or social security contributions in respect of Restricted Share Units. These arrangements may include the sale or reduction in number of any Shares or the Participant discharging the liability himself.

 

	 	
4.4.2

	
In addition, it shall be a condition of the Vesting of Restricted Share Units that the Company, the Grantor, any employing Company or trustee may deduct from and set off against the Shares (whether payable in cash or Shares and whenever payable) any debt, obligation, liability, or other amount owed by the Participant to a Member of the Group, including but not limited to amounts under an international assignment tax policy (as currently in effect or as amended from time to time), or amounts advanced on behalf of the Participant with respect to employment taxes, as determined in the sole discretion of the Directors.

 

  

4

  

 

	
4.5

	
Forfeiture

 

	 	
4.5.1

	
Notwithstanding any other rules of the Plan (including, without limitation, rules 5.2 and 5.4), if the Directors determine that a Participant has engaged in conduct (including, but not limited to, a violation of the BP Code of Conduct) which the Directors consider was contrary to the legitimate expectations of the Company for an employee in the Participant's position then the Directors may reduce the number of Shares subject to Restricted Share Units (including to zero) or if Restricted Share Units have already Vested but Shares have not yet been transferred (because of, for example, any Dealing Restrictions), transfer to the Participant a reduced number of Shares or no Shares at all.

 

	 	
4.5.2

	
Where a Participant has ceased to be an Employee but has retained his Restricted Share Units as a consequence of rule 5.2 the Directors retain the right to lapse his Restricted Share Units if, prior to Vesting, the Participant joins a Competitor Organisation of any Member of the Group within 12 months of ceasing to be an Employee. The Directors will have the sole discretion to determine the definition of “Competitor Organisation”.

 

	
4.6

	
Career breaks

 

	 	

4.6.1

	

If a Participant is on a Career Break on the date that his Restricted Share Units would ordinarily Vest under the Plan, then unless the Directors determine otherwise in any particular case, the Restricted Share Units will only Vest after the Directors determine that the Participant has returned to normal employment at the end of the Career Break and has continued to be in his normal employment for a period of three months from the date of return, and in that period has not given notice of termination of employment. The Shares subject to the Restricted Share Units will be transferred as soon as practicable after such determination.

 

	 	

4.6.2

	
Unless any of the reasons set out in rules 5.2, 5.4, or 6.1 apply, if the Participant ceases to be an employee or director of any Member of the Group before having returned to normal employment at the end of the Career Break or during the three month period referred to in rule 4.6.1, then his Restricted Share Units will lapse on cessation of employment. If any of the reasons set out in rules 5.2.1, 5.4 or 6.1 do apply, his Restricted Share Units will Vest in accordance with those rules.

 

	
5

	
Cessation of employment / personal events

 

	
5.1

	
General rule on leaving employment

 

Unless rule 5.2 applies, Restricted Share Units which have not Vested will lapse on the date the Participant ceases to be an Employee.

 

	
5.2

	
“Good leavers”

 

	 	
5.2.1

	
If a Participant ceases to be an Employee for any of the reasons set out below after the end of the calendar year in which his Restricted Share Units are granted, then his Restricted Share Units will Vest as described in rule 5.3 and lapse as to the balance. The reasons are:

 

	 	
(i)

	
termination by the Participant’s employing company as a result of ill-health, injury or disability;

 

	 	
(ii)

	
the Participant’s employing company ceasing to be a Member of the Group;

 

  

5

  

 

	 	
(iii)

	
a transfer of the undertaking, or the part of the undertaking, in which the Participant works to a person which is not a Member  of the Group;

 

	 	
(iv)

	
redundancy; and

 

	 	
(v)

	
any other reason, if the Directors so decide in any particular case.

 

	 	
5.2.2

	
The Directors may only exercise the discretion provided for in rule 5.2.1(v) within 80 days after cessation of the relevant Participant’s employment.

 

	
5.3

	
Vesting

 

Where rule 5.2 applies, the Restricted Share Units do not lapse, and the extent to which they will Vest is measured in accordance with rule 3.1 at the end of the Performance Period. [However, the Directors may decide in their discretion that the Performance Period in respect of Restricted Share Units should be treated as ending on the date of the termination of employment and that the Restricted Share Units should Vest immediately, to the extent that the Performance Condition has been or is likely to be satisfied (as determined by the Directors in the manner specified in the Performance Condition or in such manner as they consider reasonable).]

 

	
5.4

	
Death

 

If a Participant dies, his Restricted Share Units will Vest on the date of death in full. For the avoidance of doubt, there will be no adjustment to take into account the extent to which the Performance Condition is satisfied at that time.

 

The Grantor will only arrange for Shares to be transferred to the personal representatives of a deceased Participant if they have produced a UK grant of representation or such other documentation indicating that the transferee is the proper beneficiary of the Participant as may be accepted by the Directors.

 

	
5.5

	
Overseas transfer

 

If a Participant remains an Employee but is transferred to work in another country or changes tax resident status and, as a result he would:

 

	 	
5.5.1

	
suffer a tax disadvantage in relation to his Restricted Share Units (this being shown to the satisfaction of the Directors); or

 

	 	
5.5.2

	
become subject to restrictions on his ability to hold or deal in the Shares or the proceeds of the sale of the Shares acquired on Vesting because of the security laws or exchange control laws of the country to which he is transferred,

 

then the Directors may decide that the Restricted Share Units will Vest on a date they choose before or after the transfer takes effect. The Restricted Share Units will Vest to the extent they permit and will lapse as to the balance.

 

	
5.6

	
Meaning of “ceasing to be an Employee”

 

For the purposes of rules 4 and 5, a Participant will not be treated as ceasing to be an Employee until he is no longer an Employee of any Member of the Group or if he recommences employment with a Member of the Group within seven days.

 

	
6

	
Vesting in other circumstances - corporate events

 

	
6.1

	
Time of Vesting

 

  

6

  

 

	 	
6.1.1

	
In the event of a Change of Control Restricted Share Units Vest subject to rules 6.1.2 and 6.3. The Restricted Share Units lapse as to the balance except to the extent exchanged under rule 6.3.

 

	 	
6.1.2

	
If the Company is or may be affected by:

 

	 	
(i)

	
any demerger, delisting, distribution (other than an ordinary dividend) or other transaction which, in the opinion of the Directors, might affect the current or future value of Restricted Share Units, or

 

	 	
(ii)

	
any reverse takeover (not within rule 6.1.1 above), merger by way of a dual listed company or other significant corporate event, as determined by the Directors,

 

the Directors may allow Restricted Share Units to Vest. The Restricted Share Units will Vest to the extent specified in rule 6.2 and will lapse as to the balance unless exchanged under rule 6.3. the Directors may impose other conditions on Vesting.

 

	
6.2

	
Extent of Vesting

 

Where Restricted Share Units Vest under rule 6.1, the Directors will determine the extent to which the Performance Condition has been satisfied and the proportion of the Restricted Share Units which will Vest. In addition, unless the Directors decide otherwise the number of Restricted Share Units are reduced pro rata to reflect the acceleration of Vesting.

 

	
6.3

	
Exchange

 

Restricted Share Units will not Vest under rule 6.1 but will be exchanged on the terms set out in rule 6.6 to the extent that:

 

	 	
6.3.1

	
an offer to exchange Restricted Share Units is made and accepted by a Participant; or

 

	 	
6.3.2

	
the Directors, with the consent of the Acquiring Company, decide before Change of Control that Restricted Share Units will be automatically exchanged.

 

	
6.4

	
Directors

 

In this rule 6, “Directors” means those people who were Directors for the purposes of the Plan immediately before the Change of Control.

 

	
6.5

	
Timing of exchange

 

Where Restricted Share Units are to be exchanged under rule 6.3 the exchange is effective immediately following the Change of Control.

 

	
6.6

	
Exchange terms

 

Where a Participant is granted new Restricted Share Units in exchange for existing Restricted Share Units, the new Restricted Share Units:

 

	 	
6.6.1

	
must confer a right to receive shares in the Acquiring Company or another body corporate determined by the Acquiring Company;

 

	 	
6.6.2

	
must be equivalent, as far as possible, to the existing Restricted Share Units, subject to rule 6.6.4;

 

  

7

  

 

	 	
6.6.3

	
are treated as having been granted at the same time as the existing Restricted Share Units and, subject to rule 6.6.4, Vest in the same manner and at the same time;

 

	 	
6.6.4

	
must:

 

	 	
(i)

	
be subject to a Performance Condition which is, so far as possible, equivalent to the Performance Condition applying to the existing Restricted Share Units; or

 

	 	
(ii)

	
not be subject to any Performance Condition but be in respect of the number of shares which is equivalent to the number of Shares comprised in the existing Restricted Share Units which would have Vested under rule 6.2 and Vest at the end of the original Performance Period or on the date of Vesting set by the Directors on the grant of the Restricted Share Units; and/or

 

	 	
(iii)

	
be subject to such other terms as the Directors consider appropriate in all the circumstances.

 

	 	
6.6.5

	
is governed by the Plan as if references to Shares were references to the shares over which the new Restricted Share Units are granted and references to the Company were references to the Acquiring Company or the body corporate determined under rule 6.6.1 above.

 

	
7

	
Changing the Plan and termination

 

	
7.1

	
Powers of amendment

 

The Directors may at any time change the provisions of the Plan in any respect. Schedules may be added to the Plan rules in order to facilitate variations in the operation of the Plan in different countries.

 

	
7.2

	
Employees’ share scheme

 

No amendment or operation of the Plan will be effective to the extent that the Plan would cease to be an “employees’ share scheme” as defined in Section 1166 of the Companies Act 2006.

 

	
7.3

	
Shareholder approval

 

No amendment to the Plan which would necessitate, under any law or regulation, the Plan’s approval by the Company’s shareholders in general meeting, may be made until such approval has been obtained.

 

	
7.4

	
Notice

 

The Directors are not required to give Participants notice of any changes.

 

	
7.5

	
Termination

 

The Plan will terminate on the Expiry Date, but the Directors may terminate the Plan at any time before that date. The termination of the Plan will not affect existing Restricted Share Units.

 

  

8

  

 

	
8

	
General

 

	
8.1

	
Terms of employment

 

	 	

8.1.1

	
This rule 8.1 applies during an Employee’s employment and after the termination of an Employee’s employment, whether or not the termination is lawful.

 

	 	

8.1.2

	

Nothing in the rules or the operation of the Plan forms part of the contract of employment of an Employee. The rights and obligations arising from the employment relationship between the Employee and his employer are separate from, and are not affected by, the Plan. Participation in the Plan does not create any right to, or expectation of, continued employment.

 

	 	

8.1.3

	
No Employee has a right to participate in the Plan. Participation in the Plan or the grant of Restricted Share Units on a particular basis in any year does not create any right to or expectation of participation in the Plan or the grant of Restricted Share Units on the same basis, or at all, in any future year.

 

	 	

8.1.4

	

The terms of the Plan do not entitle the Employee to the exercise of any discretion in his favour.

 

	 	

8.1.5

	

The Employee will have no claim or right of action in respect of any decision, omission or discretion, which may operate to the disadvantage of the Employee even if it is unreasonable, irrational or might otherwise be regarded as being in breach of the duty of trust and confidence (and/or any other implied duty) between the Employee and his employer.

 

	 	

8.1.6

	

No Employee has any right to compensation for any loss in relation to the Plan, including any loss in relation to: 

 

	 	
(i)

	
any loss or reduction of rights or expectations under the Plan in any circumstances (including lawful or unlawful termination of employment);

 

	 	
(ii)

	
any exercise of a discretion or a decision taken in relation to Restricted Share Units or to the Plan, or any failure to exercise a discretion or take a decision;

 

	 	
(iii)

	
the operation, suspension, termination or amendment of the Plan.

 

	
8.2

	
Directors’ decisions final and binding

 

The decision of the Directors on the interpretation of the Plan or in any dispute relating to Restricted Share Units or matter relating to the Plan will be final and conclusive.

 

	
8.3

	
Third party rights

 

Nothing in this Plan confers any benefit, right or expectation on a person who is not a Participant. No such third party has any rights under the Contracts (Rights of Third Parties) Act 1999 or any equivalent local legislation to enforce any term of this Plan. This does not affect any other right or remedy of a third party which may exist.

 

	
8.4

	
Documents sent to shareholders

 

The Company is not required to send to Participants copies of any documents or notices normally sent to the holders of its Shares.

 

	
8.5

	
Costs

 

The Company will pay the costs of introducing and administering the Plan. The Company may ask a Participant’s employer to bear the costs in respect of Restricted Share Units granted to that Participant.

 

  

9

  

 

	
8.6

	
Employee trust

 

The Company and any Subsidiary may provide money to the trustee of any trust or any other person to enable them or him to acquire Shares to be held for the purposes of the Plan, or enter into any guarantee or indemnity for those purposes, to the extent permitted by Section 682 of the Companies Act 2006 or any applicable law.

 

	
8.7

	
Data protection

 

By participating in the Plan the Participant consents to the holding and processing of personal information provided by the Participant to any Member of the Group, trustee or third party service provider, for all purposes relating to the operation of the Plan. These include, but are not limited to:

 

	 	

8.7.1

	

administering and maintaining Participant records;

 

	 	

8.7.2

	

providing information to Members of the Group, trustees of any employee benefit trust, registrars, brokers or third party administrators of the Plan;

 

	 	

8.7.3

	

providing information to future purchasers or merger partners of the Company, the Participant’s employing company, or the business in which the Participant works;

 

	 	

8.7.4

	

transferring information about the Participant to a country or territory that may not provide the same statutory protection for the information as the Participant’s home country.

 

The Participant is entitled, on payment of a fee, to a copy of the personal information held about him or her, if anything is inaccurate the participant has the right to have it corrected.

 

	
8.8

	
Consents

 

All transfers of Shares will be subject to any necessary consents under any relevant enactments or regulations for the time being in force in the United Kingdom or elsewhere. The Participant is responsible for complying with any requirements he needs to fulfil in order to obtain or avoid the necessity for any such consent.

 

	
8.9

	
Share rights

 

Where Shares are transferred to a Participant, the Participant will be entitled to all rights attaching to the Shares by reference to a record date on or after the transfer date. The Participant will not be entitled to rights before that date.

 

	
8.10

	
Notices

 

	 	

8.10.1

	

Any information or notice to a person who is or will be eligible to be a Participant under or in connection with the Plan may be posted, or sent by electronic means, in such manner to such address as the Company considers appropriate, including publication on any intranet.

 

	 	

8.10.2

	

Any information or notice to the Company or other duly appointed agent under or in connection with the Plan may be sent by post or transmitted to it at its registered office or such other place, and by such other means, as the Directors or duly appointed agent may decide and notify Participants.

 

  

10

  

 

	 	

8.10.3

	

Notices sent by post will be deemed to have been given on the second day after the date of posting. However, notices sent by or to a Participant who is working overseas will be deemed to have been given on the seventh day after the date of posting. Notices sent by electronic means, in the absence of evidence to the contrary, will be deemed to have been received on the day after sending. 

 

	
8.11

	
Governing law and jurisdiction

 

English law governs the Plan and all Restricted Share Units and their construction. The English courts have non-exclusive jurisdiction in respect of disputes arising under or in connection with the Plan or any Restricted Share Units.

 

	
9

	
Definitions

 

In these rules:

 

“Acquiring Company” means a person who has or obtains control (within the meaning of Section 995 of the Income Tax Act 2007) of the Company;

 

“ADS” means an American depositary share representing ordinary shares of the Company;

 

“Business Day” means a day on which the London Stock Exchange (or, if relevant and if the Directors determine, any stock exchange nominated by the Directors on which the Shares are traded) is open for the transaction of business;

 

”Career Break” means an extended period of unpaid leave from normal work, without ceasing to be an employee or director of any Member of the Group, with the agreement of the Company and which is designated by the Directors as a Career Break for the purposes of these rules;

 

“Change of Control” means

 

	 	

(i)

	

when a general offer to acquire Shares made by a person (or a group of persons acting in concert) becomes wholly unconditional; or

 

	 	

(ii)

	

when, under Section 895 of the Companies Act 2006 or equivalent procedure under local legislation, a court sanctions a compromise or arrangement in connection with the acquisition of Shares; or

 

	 	

(iii)

	

a person (or a group of persons acting in concert) obtaining control (within the meaning of Section 995 of the Income Tax Act 2007) of the Company in any other way.

 

“Company” means BP p.l.c.;

 

“Dealing Restrictions” means restrictions imposed by statute, order, regulation or Government directive, or by the Model Code or any code adopted by the Company based on the Model Code and for this purpose the Model Code means the Model Code on dealings in securities set out in Listing Rule 9, annex 1 (of the London Stock Exchange), as varied from time to time;

 

“Directors” means, subject to rule 6.4, the board of directors of the Company or a duly authorised person or group of persons and for the avoidance of doubt, the application of this definition can be different in relation to the different circumstances where “Directors” are referred to in this Plan;

 

  

11

  

 

“Dividend Equivalent” means an additional number of Restricted Share Units as calculated in accordance with rule 4.2;

 

“Employee” means any employee of a Member of the Group.  Unless the Plan is approved by shareholders in general meeting (where required by any law or regulation) Employee shall not include an executive director of the Company;

 

“Expiry Date” means the tenth anniversary of the adoption of the Plan;

 

“Grant Date” means the date on which Restricted Share Units are granted by deed under rule 1.4;

 

“Grantor” means, in respect of Restricted Share Units, the entity which grants the Restricted Share Units under the Plan;

 

“London Stock Exchange” means London Stock Exchange plc;

 

“Member of the Group” means:

 

	 	

(i)

	

the Company;

 

	 	

(ii)

	

its Subsidiaries from time to time; or

 

	 	

(iii)

	

any other company which is associated with the Company and is so designated by the Directors;

 

“Participant” means a person holding Restricted Share Units or his personal representatives who have produced a UK grant of representation or such other documentation as may be accepted by the Directors;

 

“Performance Condition” means any performance condition imposed under rule1.5;

 

“Performance Period” means the period in respect of which a Performance Condition is to be satisfied;

 

“Plan” means these rules known as “The BP p.l.c. Share Value Plan”, as changed from time to time;

 

“Restricted Share Unit” means a conditional right to receive one Share, or such other number as may be determined by the Directors, granted under the Plan;

 

“Shares” means fully paid ordinary shares in the capital of the Company or where the context requires ADSs (see rule 1.11);

 

“Subsidiary” means a company which is a subsidiary of the Company within the meaning of Section 1159 of the Companies Act 2006;

 

“Vesting” means a Participant becoming entitled to have the Shares transferred to him subject to the Plan.

 

  

12

  

Schedule 1

Restricted Shares

 

	
1

	
Rules

 

The rules of the BP p.l.c. Share Value Plan (“Plan”) will apply to grants made under this Schedule 1, as amended by the terms of this Schedule 1.

 

	
2

	
Terms of Restricted Shares

 

The Grantor may determine that Restricted Shares are granted under this Schedule 1. If so, the deed referred to in rule 1.4 of the Plan must state that the grant is in the form of Restricted Shares.

 

	
3

	
Restricted Share Agreement

 

The Participant must enter into an agreement with the Grantor, that to the extent the Restricted Shares lapse under the Plan, the Shares are forfeited and he will immediately transfer his interest in the Shares, for no consideration or nominal consideration, to any person (which may include the Company, where permitted) specified by the Grantor.

 

	
4

	
Transfer of Restricted Shares

 

On or after the grant of Restricted Shares the Grantor will procure that the relevant number of Shares are transferred to the Participant or to another person to be held for the benefit of the Participant under the terms of the Plan.

 

	
5

	
Rights

 

Rule 2.1 of the Plan will be replaced with the following paragraph:

 

“Except to the extent specified in the Restricted Share Agreement a Participant will have all rights of a shareholder in respect of Restricted Shares until they lapse.”

 

	
6

	
Documents and elections

 

	
6.1

	
The Participant must sign any documentation, including a power of attorney or blank stock transfer form, requested by the Grantor. If he does not do so within a period specified by the Grantor, the Restricted Shares will lapse at the end of that period. The Grantor may retain the share certificates relating to any Restricted Shares.

 

	
6.2

	
The Participant must enter into any elections required by the Grantor, including elections under Part 7 of the Income Tax (Earnings and Pensions) Act 2003 and elections to transfer any liability, or agreements to pay, social security contributions. If he does not do so within a period specified by the Grantor, the Restricted Shares will lapse at the end of that period.

 

	
7

	
Adjustment of Restricted Shares

 

	 	

7.1.1

	

Subject to the Restricted Share Agreement, a Participant will have the same rights as any other shareholders in respect of Restricted Shares where there is a variation or other event of the sort described in rule 2.3 of the Plan. Any shares, securities or rights allotted to a Participant as a result of such an event will be:

 

	 	
(i)

	
treated as if they were granted to the Participant under the Plan in the same way and at the same time as the Restricted Shares in respect of which the rights were conferred; and

 

  

13

  

 

	 	
(ii)

	
subject to the rules of the Plan, as modified by this Schedule 1, and the terms of the Restricted Share Agreement.

 

However, securities bought by a Participant pursuant to a rights issue will not be treated as described in (i) and (ii) above except to the extent they are bought using the proceeds of sale of rights under that rights issue.

 

	
8

	
Lapse of Restricted Shares

 

On the lapse of Restricted Shares, a Participant must transfer his interest in the Shares in accordance with the Restricted Share Agreement.

 

	
9

	
Vesting of Restricted Shares

 

To the extent they have Vested, Restricted Shares will not lapse under the Plan and the restrictions referred to in paragraph 3 of this Schedule 1 and contained in the Restricted Share Agreement will cease to have effect. Any tax and social security contributions payable on Vesting will be dealt with in accordance with rule 4.4 of the Plan.

 

	
10

	
Cash alternative

 

Rule 4.3 of the Plan will not apply.

 

	
11

	
Definitions

 

“Restricted Shares” means Shares held in the name of or for the benefit of a Participant subject to the Restricted Share Agreement;

 

“Restricted Share Agreement” means the agreement referred to in paragraph 3 of this Schedule 1;

 

“Vesting” means the restrictions set out in the Restricted Share Agreement between the Participant and the Grantor, as referred to in paragraph 3 of this Schedule 1, ceasing to have effect.

 

  

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Schedule 2

Restricted Cash Units

 

	
1

	
Rules

 

The rules of the BP p.l.c. Share Value Plan (“Plan”) will apply to grants made under this Schedule 2, as modified by the terms of this Schedule 2.

 

	
2

	
Definition

 

“Restricted Cash Units” means a conditional entitlement to a payment of cash as described in paragraph 3 of this Schedule 2.

 

	
3

	
Cash Units

 

Restricted Share Units will be referred to for the purposes of this Schedule as Restricted Cash Units. Any Restricted Cash Units granted under this Schedule 2 will give Participants a right to receive a cash sum only. In addition, any Dividend Equivalents under rule 4.2 of the Plan will be paid in cash only. No Shares may be transferred in satisfaction of grants under this Schedule 2 and references to Restricted Share Units and Vesting shall be construed accordingly.

 

	
4

	
No rights as shareholders

 

As a result only of their participation under this Schedule 2, Participants will have no rights as shareholders of the Company and no rights to acquire Shares.

 

	
5

	
Payments of cash

 

After the end of the Performance Period for grants made under this Schedule 2 (and once any determinations are made under rule 3.1 of the Plan, if applicable) then the Directors will determine the number of Shares which would have Vested had a grant of Restricted Share Units been made rather than a grant of Restricted Cash Units and shall make a cash payment to the Participant in accordance with rule 4.3 of the Plan.

 

  

15

  

 

Schedule 3

US

 

This United States (“US”) Schedule has been adopted by the Directors and shall vary the terms of the Plan (and any other related documents) accordingly for all US Participants. For the purposes of this Schedule 2, a “US Participant” means a Participant who is:

 

	
(i)

	
a US citizen;

 

	
(ii)

	
a US permanent resident (as may be evidenced by a so-called “green card” and/or participation in a US tax-qualified pension plan sponsored by a Member of the Group);

 

	
(iii)

	
a non-US citizen who is posted to the United States on or after Vesting and who is (or expected to become) subject to US taxation as a resident alien; or

 

	
(iv)

	
a non-US citizen subject to US taxation, including a non-resident alien taxpayer of the United States, but only to the extent that his or her  participation in the Plan gives rise to income or deemed income from a US source subject to taxation under the Internal Revenue Code of 1986, as amended (the “Code”).

 

Rule 1.6 shall be varied by adding the following:

 

Notwithstanding anything in the Plan rules to the contrary, neither the Grantor nor the Directors may waive or change conditions which require a US Participant to remain employed or to perform services as a condition of the Vesting or release of Restricted Share Units, or in violation of Section 409A of the Code.

 

Rule 4.1 shall be varied by adding the following:

 

Notwithstanding anything in the Plan rules to the contrary, the transfer of Shares upon Vesting will occur no later than the end of the calendar year in which the Performance Period ends, or if later, by the 15th day of the third month following the end of the Performance Period.

 

Rule 4.4.2 shall be varied by adding the following:

 

Notwithstanding anything in the Plan rules to the contrary, any right of the Company, the Grantor, any employing Company or trustee to deduct from and set off against the Shares any debt, obligation, liability, or other amount owed by the Participant to a Member of the Group, shall be subject to limitations imposed by Section 409A of the Code.

 

Rule 4.6 shall be varied by adding the following:

 

Rule 4.6 is not intended to be applied to a Participant who is considered a US Participant. If applicable non-US law requires the general application of rule 4.6 to any US Participant, rule 4.6 will be applied in a manner consistent with the provisions of rule 5.2 of this US Schedule and Section 409A of the Code.

 

Rule 5.2 shall be replaced in its entirety to read as follows:

 

	
5.2 

	
Leaving in exceptional circumstances

 

If a US Participant ceases to be an Employee for any of the reasons set out below after the end of the calendar year in which his Restricted Share Units are granted or more than 12 months after the start of the Performance Period, then his Restricted Shares Units will Vest on the original Vesting date as described in rule 5.3 and lapse as to the balance.  The reasons are:

 

(1) Disability. For the purposes of this rule, a US Participant will be considered Disabled if he is (i) unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months; or (ii) by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan covering employees of a Member of the Group; or (iii) otherwise disabled within the meaning of Section 409A of the Code; or

 

  

16

  

 

(2) a US Participant’s involuntary termination of employment with any Member of the Group, other than due to such Participant’s conduct or performance. For avoidance of doubt, the following circumstances will be considered an involuntary termination of employment: (A) termination of a US Participant’s employment by his or her employer with no anticipated return to employment with a Member of the Group, or a termination considered by the Directors to have been initiated by the US Participant’s employer with no anticipated return to employment with a Member of the Group, in both cases where the termination is not based on the US Participant’s conduct or performance; (B) termination of a US Participant’s employment as a result of a Change of Control.  A transfer of employment from one Member of the Group to another will not be considered a termination of employment, nor will a reduction in hours, unless such is considered an involuntary “separation from service” within the meaning of Section 409A of the Code.

 

Rule 5.3 shall be varied by adding the following:

 

Notwithstanding the foregoing, the Directors may not treat the Performance Period in respect of Restricted Share Units granted to a US Participant as ending on the date of the termination of employment, and where rule 5.3 applies, the Shares may only be released after the end of the Performance Period, but in no event later than the end of the calendar year in which the Performance Period ends, or if later, by the 15th day of the third month following the end of the Performance Period.

 

Rule 5.4 shall be varied by adding the following:

 

The Shares will in all circumstances be delivered within 90 days after the date of the Participant’s death.

 

Rule 5.5 shall be varied by adding the following:

 

Rule 5.5 is not intended to be applied to a US Participant.

 

Rule 6.1 shall be varied by adding the following:

 

This rule 6.1 will only apply when the Change of Control or corporate event described in rule 6.1.2 constitutes a Change of Control.

 

Rule 6.2 shall be varied by adding the following:

 

Notwithstanding anything to the contrary, the transfer of Shares upon Award Vesting under rule 6.1 will be within 90 days after such corporate event.

 

Rule 6.3 shall be varied by adding the following:

 

This rule 6.3 is not intended to be applied to a US Participant.

 

  

17

  

 

Rule 9 shall be varied by adding the following:

 

Rule 9, definition of “Career Break” shall be varied by adding the following:

 

For US Participants, a Career Break shall only be recognized for purposes of this Plan if the Participant is reasonably expected to return to work with the Company after the expiration of the break and such break is approved by the Company in advance of the break’s onset.  The maximum recognized period for a Career Break for US Participants will be six (6) months (or such longer period if the Participant has a legal or contractual right to return to work with the Company immediately following the expiration of the break), with a voluntary termination of employment considered to have taken place for purposes of the Plan for any such longer period, as determined in accordance with Section 409A of the Code.

 

Rule 9, definition of “Change of Control” shall be replaced by the following:

 

“Change of Control” shall mean a change in the ownership of the Company, change in effective control of the Company or change in the ownership of a substantial portion of the Company’s assets, as such phrases are specifically defined by United States Treasury Regulations Section 1.409A-3(i)(5)(v), (vi) and (vii), as applicable to the terms herein and as may hereafter be amended.

 

The following shall be added as rule 10

 

	
10 

	
Compliance with Section 409A and Other Applicable Laws

 

Notwithstanding any provision of the Plan to the contrary, the Plan is intended to comply with the requirements of Section 409A of the Code with respect to US Participants.  Accordingly, all provisions herein, or incorporated by reference, shall be construed and interpreted to comply with Section 409A of the Code to the extent required.  Notwithstanding any provision of the Plan to the contrary, if a US Participant is a “specified employee” within the meaning of Section 409A of the Code at the time of separation from service, to the extent necessary to comply with Section 409A of the Code, any payment required under this Plan shall be held for delayed payment and shall be distributed on or immediately after the date which is six months after the date of the Participant’s separation from service, or death if earlier.  In no event may the US Participant, directly or indirectly, designate the calendar year of a payment.  Notwithstanding the provisions of rule 8.6, the Plan shall be unfunded for the purposes of Section 409A of the Code.

 

Notwithstanding any provision of this Plan to the contrary, including but not limited to rules 7.1 and 7.5, the Directors may amend or terminate the grant, Vesting and/or release of Restricted Share Units under this Plan at any time and without prior notice if the Directors determine in their sole discretion that such action is necessary or advisable to avoid or mitigate potential non-compliance with applicable law or if compliance would create unreasonable administrative burdens.  If the terms of a grant, Vesting or release of Restricted Share Units are amended or terminated, the Company is under no obligation to provide any consideration or remuneration in lieu of the grant, Vesting and/or release of Restricted Share Units.

 

All taxes, penalties, or interest imposed on any Participant due to any failure to comply with Section 409A of the Code or other tax rule shall be the Participant’s responsibility and no Member of the Group shall have any obligation to keep the Participant whole.

 

 

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