Document:

Amended and Restated 2004 Non-Employee Director Equity Plan

 Exhibit 10.1 
  
 QUICKSILVER RESOURCES INC. 
 AMENDED AND RESTATED 
 2004 NON-EMPLOYEE DIRECTOR EQUITY PLAN 
  
 1. PURPOSE 
  
 The purpose of this Amended and Restated 2004 Non-Employee Director Equity Plan of
Quicksilver Resources Inc. is to promote and closely align the interests of non-employee directors with those of the shareholders of Quicksilver Resources Inc. by providing stock based compensation. The Plan is intended to strengthen Quicksilver
Resources Inc.’s ability to attract and retain outstanding directors. 
  
 2. DEFINITIONS 
  
 The following terms shall have the meanings set forth below: 
  
 “Act” means the Securities Exchange Act of 1934, as amended. 
  
 “Beneficiary” means any person or persons designated in writing by a Participant to the Board on a form prescribed by it for that purpose, which designation shall be revocable at any time by the
Participant prior to his or her death, provided that, in the absence of such a designation or the failure of the person or persons so designated to survive the Participant, “Beneficiary” shall mean such Participant’s estate; and
further provided that no designation of Beneficiary shall be effective unless it is received by the Company before the Participant’s death. 
  
 “Board” means the Board of Directors of the Company. 
  
 “Board Approval Date” shall have the meaning given to such term in Section 14. 
  
 “Cause” means that the Optionee has ceased to be a member
of the Board due to a removal by the Company’s shareholders for cause pursuant to Section 141(k) of the Delaware General Corporation Law (or a successor provision thereto). 
  
 “Code” means the Internal Revenue Code of 1986, as amended, or the corresponding provisions of any
successor statute. 
  
 “Common Stock” means the
common stock of the Company. 
  
 “Company” means
Quicksilver Resources Inc., a Delaware corporation, or any successor corporation. 
  
 “Fair Value” has the meaning given to such term in Section 8(a). 
  
 “Market Value per Share” means the closing sales price of a share of Common Stock on the New York Stock Exchange (or such other national
securities exchange or market on which shares of Common Stock are then listed or quoted) 

 
on a particular date. In the event that there are no Common Stock transactions on such date, the Market Value per Share shall be determined by utilization of
the above formula as of the immediately preceding date on which there were Common Stock transactions. 
  
 “Non-Employee Director” means any member of the Board who is not an employee of the Company or a Subsidiary. 
  
 “Option” means an option to purchase shares of Common Stock
granted under the Plan. 
  
 “Optionee” means any
Non-Employee Director who is granted an Option under the Plan. 
  
 “Participant” means any Non-Employee Director who is granted Restricted Shares under the Plan. 
  
 “Plan” means this Amended and Restated 2004 Non-Employee Director Equity Plan of Quicksilver Resources Inc., as amended from time to
time. 
  
 “Restriction Period” means, as
to any shares included in a grant of Restricted Shares, the period during which the restrictions set forth in Section 7(a) apply to such shares. 
  
 “Restricted Shares” means shares of Common Stock granted under the Plan as to which neither the ownership restrictions nor the
restrictions on transfer referred to in Section 7(a) have expired. 
  
 “Shareholder Approval Date” shall have the meaning given to such term in Section 14. 
  
 “Subsidiary” means any corporation, partnership, or limited liability company of which the Company owns directly or indirectly at least a
majority of the outstanding shares of voting stock or other voting interest. 
  
 “Total Disability” means a Board member’s termination as a director (other than an involuntary termination for Cause) due to his or her “permanent and total disability” within the
meaning of Section 22(e)(3) of the Code and as determined by the Board. 
  
 3. ADMINISTRATION 
  
 The Plan shall be
administered by the Board. The Board shall (i) grant Restricted Shares to Participants, (ii) grant Options to Optionees, and (iii) determine the terms and conditions of such Restricted Shares or Options, all in accordance with the
provisions of the Plan. The Board shall have full authority to construe and interpret the Plan, to establish, amend and rescind rules and regulations relating to the Plan, to administer the Plan, and to take all such steps and make all such
determinations in connection with the Plan and Restricted Shares and Options granted thereunder as it may deem necessary or advisable. Each Restricted Share grant and Option granted hereunder shall be evidenced 

  

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by an agreement to be executed by the Company and the Participant or Optionee, as the case may be, containing provisions not inconsistent with the Plan
(including without limitation provisions relating to acceleration of vesting or other adjustments in the event of a change in control of or business combination involving the Company). All determinations of the Board shall be by a majority of its
members and shall be evidenced by resolution, written consent or other appropriate action, and the Board’s determinations shall be final. 
  
 4. ELIGIBILITY 
  
 All Non-Employee Directors are eligible to participate in the Plan. 
  
 5. STOCK SUBJECT TO THE PLAN 
  

Subject to the provisions of Section 10 hereof, the maximum number and kind of shares as to which Restricted Shares or Options may at any time be granted under
the Plan are 750,000 shares of Common Stock (which number has been adjusted, in accordance with the terms of the Plan, for the three-for-two stock split in the form of stock dividends issued to stockholders of record of the Company on June 15,
2005, pursuant to Section 10). Restricted Shares, or shares of Common Stock subject to Options, under the Plan may be either authorized but unissued shares or shares previously issued and reacquired by the Company. Upon the forfeiture (in whole
or in part) of a grant of Restricted Shares or the expiration, termination or cancellation (in whole or in part) of unexercised Options, shares of Common Stock subject thereto shall again be available for grant as Restricted Shares or subject to
Options granted under the Plan. 
  
 6. GRANTS OF RESTRICTED
SHARES OR OPTIONS 
  
 (a) One-Time Grant. Each
Non-Employee Director in office on the Shareholder Approval Date shall be granted as of the Shareholder Approval Date a number of Restricted Shares equal to $25,000 divided by the Market Value per Share as of the Shareholder Approval Date.

  
 (b) New Director Grants. Each individual who
first becomes a Non-Employee Director after the Shareholder Approval Date on a date other than the first business day of a calendar year shall be granted a number of Restricted Shares as of the date such individual becomes a Non-Employee Director
equal to $60,000 (if the individual becomes a Non-Employee Director prior to July 1 of any year) or $30,000 (if the individual becomes a Non-Employee Director on or after July 1 of any year) divided by the Market Value per Share as of the
date the individual first becomes a Non-Employee Director. For purposes of this Section 6(b), a Non-Employee Director who ceases to be a member of the Board and thereafter becomes a Non-Employee Director again shall be deemed to first become a
Non-Employee Director on the date that such individual again becomes a Non-Employee Director. 
  
 (c) Annual Awards. On the first business day of each calendar year beginning during the term of the Plan and after the Shareholder Approval Date, each individual who is a Non-Employee Director shall be
granted as of such first business day 

  

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(i) a number of Restricted Shares equal to $60,000 divided by the Market Value per Share as of that date, and (ii) either a number of Restricted Shares
equal to $60,000 divided by the Market Value per Share as of such first business day, or an Option to purchase a number of shares of Common Stock equal to $60,000 divided by the Fair Value as of such first business day, provided that, in either
case, the Non-Employee Director has elected in writing on or prior to the last day of the preceding calendar year to receive the Restricted Shares or the Option described in this Section 6(c)(ii) in lieu of an equivalent amount of cash
compensation from the Company. 
  
 7. TERMS AND CONDITIONS OF
AWARDS OF RESTRICTED SHARES 
  
 (a)
Restrictions. At the time of grant of Restricted Shares to a Participant, either (i) a stock certificate evidencing the shares of Common Stock granted shall be registered in the Participant’s name to be held by the Company
for his or her account or (ii) an appropriate entry evidencing the Participant’s ownership of the shares of Common Stock granted shall be made in the stock ownership records or other books and records maintained by or on behalf of the
Company. The Participant shall have the entire beneficial ownership interest in, and all rights and privileges of a shareholder as to, such Restricted Shares, including the right to vote such Restricted Shares and, unless the Board shall determine
otherwise, the right to receive dividends thereon, subject to the following: (i) subject to Section 7(c), the Participant shall not be entitled to delivery of any stock certificate evidencing such Restricted Shares until the expiration of
the Restriction Period; (ii) none of the Restricted Shares may be sold, transferred, assigned, pledged, or otherwise encumbered or disposed of during the Restriction Period; and (iii) all of the Restricted Shares shall be forfeited and all
rights of the Participant to such Restricted Shares shall terminate without further obligation on the part of the Company unless the Participant remains as a member of the Board for the entire Restriction Period, except as provided by
Section 7(c). Any shares of Common Stock or other securities or property received as a result of a transaction listed in Section 10 shall be subject to the same restrictions as such Restricted Shares. 
  
 (b) Vesting. Each grant of Restricted Shares under
Section 6 hereof shall become nonforfeitable and the restrictions described in Section 7(a) shall expire as to the total number of shares subject thereto on the first anniversary of the date of such grant of Restricted Shares; provided, in
each case, that the Non-Employee Director who received the Restricted Shares has remained a member of the Board through such first anniversary. 
  
 (c) Rights Upon Termination of Service. Upon a Participant ceasing to be a member of the Board prior to the end of a Restriction Period for
any reason, the Participant shall immediately forfeit all Restricted Shares then subject to the restrictions of Section 7(a) in accordance with the provisions thereof, unless the Board, in its discretion, allows the Participant to retain any or
all of the Restricted Shares then subject to the restrictions of Section 7(a), in which case the Restriction Period applicable to such retained Shares shall immediately expire and all restrictions applicable to such retained shares shall
immediately lapse. 
  
 (d) Payment of Restricted
Shares. At the end of the Restriction Period, or at such earlier time as provided for in Section 7(c) or as the Board, in its sole discretion, may otherwise determine, all restrictions applicable to the Restricted Shares shall lapse
and, if the Restricted Shares are evidenced by a stock certificate, a stock certificate 

  

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evidencing a number of shares of Common Stock equal to the number of Restricted Shares, free of all restrictions, shall be delivered to the Participant or
his or her Beneficiary, as the case may be. 
  
 8. TERMS AND
CONDITIONS OF OPTIONS 
  
 (a) Fair Value. As
noted in Section 6, the number of shares to be subject to any particular Option is to be determined with reference to the Fair Value which shall be either the Black Scholes Value (described below) or the value of an Option to purchase one share
of Common Stock calculated using such other valuation methodology as may at the time of grant be used by the Company to value Options for financial reporting purposes, in each case as calculated as of the particular date of grant of the Option. For
this purpose, “Black Scholes Value” means the value of an Option to purchase one share of Common Stock calculated using the Black Scholes option value model. Unless otherwise provided by the Board prior to the applicable date of grant, the
Black Scholes option valuation for an Option to be granted on a particular date shall be based on the following assumptions: 
  
 (i) the then current price of a share of Common Stock is equal to the Market Value per Share of Common Stock as of the date of grant of
the Option; 
  
 (ii) the per share exercise price
of the Option is equal to the Market Value per Share of Common Stock as of the date of grant of the Option; 
  
 (iii) the time until expiration of the Option is equal to the actual time until expiration of the Option (determined without regard to the
provisions of Sections 8(h) and 8(i)); 
  
 (iv)
the risk-free interest rate is the asked yield rate, as of the business day preceding the date of grant of the Option and as reported in the Wall Street Journal, for the U.S. Treasury Note or Bond having a maturity date that is closest to the date
that is five years after the date of grant of the Option; 
  
 (v) the volatility of the price of the Common Stock is calculated based on the closing price of a share of Common Stock on the last trading day of each month for each of the 60 months preceding the month in which the
date of grant of the Option occurs; and 
  
 (vi) the dividend yield on the Common Stock equals the rate determined by dividing the product of four and the most recent quarterly dividend on the Common Stock as of the date of grant of the Option by the Market Value per Share of Common
Stock as of the date of grant of the Option. 
  
 (b)
Exercise Price. Each Option granted hereunder shall have a per share exercise price equal to the Market Value per Share of Common Stock as of the day such Option is granted. 
  
 (c) Vesting. Each Option granted hereunder shall be exercisable only to the extent that it is vested. Except
as may otherwise be provided in the agreement evidencing the Option or as determined by the Board, each Option granted hereunder shall vest as to 

  

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1/12 of the total number of shares of Common Stock subject thereto (rounded up to the nearest whole share) on the last day of the first full calendar month
following the date of grant of the Option, as to 1/12 of the total number of shares subject thereto (rounded up to the nearest whole share) on the last day of each of the 10 succeeding calendar months, and as to the balance of the shares of Common
Stock subject thereto on the last day of the calendar month preceding the one-year anniversary of the date of grant of the Option; provided, in each case, that the Non-Employee Director who received the Option has remained a member of the Board
through the respective vesting date. 
  
 (d)
Expiration. Each Option granted hereunder shall expire at the close of business on the day before the tenth anniversary of the date of grant of the Option or at such earlier time as may be provided in the Plan or in the agreement
evidencing any such Option. 
  
 (e) Tax Status of
Options. Each Option granted under the Plan shall be a nonqualified stock option and shall not be an “incentive stock option” within the meaning of Section 422 of the Code. 
  
 (f) Payment. Shares of Common Stock purchased pursuant to the
exercise of an Option shall, at the time of purchase, be paid for in full. All, or any portion, of the Option exercise price may be paid by the surrender to the Company, at the time of exercise, of shares of previously acquired Common Stock owned by
the Optionee and held for a period of at least 6 months, to the extent that such payment does not require the surrender of a fractional share of such previously acquired Common Stock. Such shares previously acquired shall be valued at Market
Value per Share on the date the option is exercised in accordance with the procedures to be established by the Board. A holder of an Option shall have none of the rights of a shareholder until the shares of Common Stock are issued to him or her
following exercise of the Option. 
  
 (g)
Non-Transferability of Options. During an Optionee’s lifetime, the Option may be exercised only by the Optionee. Options shall not be transferable, except for exercise by the Optionee’s legal representatives or heirs;
provided, however, that an Optionee may, with prior approval from the Board (or its designee), transfer an exercisable Option to (i) a member or members of the Optionee’s immediate family, (ii) a trust, the beneficiaries of which
consist exclusively of members of the Optionee’s immediate family, (iii) a partnership, the partners of which consist exclusively of members of the Optionee’s immediate family, or (iv) any similar entity created for the exclusive
benefit of members of the Optionee’s immediate family. The Board or its designee must approve the form of any transfer of an Option to or for the benefit of any immediate family member or members before such transfer shall be recognized as
valid hereunder. For purposes of the preceding sentence, any remote, contingent interest of persons other than a member of the Optionee’s immediate family shall be disregarded. For purposes of this Section 8(g), immediate family means an
Optionee’s spouse, children and grandchildren, including step and adopted children and grandchildren. 
  
 (h) Rights Upon Termination of Service. Upon an Optionee ceasing to be a member of the Board for any reason other than death, each Option of
such Optionee shall be exercisable only as to those shares of Common Stock which were then subject to the exercise of such Option. Such Option shall expire according to the following schedule: 
  

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 (i) Retirement. Option shall expire, unless exercised, five years after the
Optionee’s retirement from the Board if the Optionee retires at or after age 55 with at least five years of service on the Board. 
  
 (ii) Disability. Option shall expire, unless exercised, five years after the date the Optionee’s service on the Board
is terminated due to the Optionee’s Total Disability. 
  
 (iii) Cause. Option shall expire upon Optionee’s service on the Board being terminated for Cause. 
  
 (iv) All Other Terminations. Option shall expire, unless exercised, three months after the date of such termination.

  
 In no event, however, shall any Option be exercisable pursuant to this
Section 8(g) subsequent to the tenth anniversary of the date on which it is granted or subsequent to any earlier termination in accordance with the terms of the agreement evidencing such Option. 
  
 (i) Death of Optionee. Upon the death of an Optionee during his
or her term of service on the Board, an Option shall be exercisable only as to those shares of Common Stock which were subject to the exercise of such Option at the time of his or her death. Such Option shall expire, unless exercised by the
Optionee’s legal representatives or heirs, five years after the date of death. 
  
 In no event, however, shall any Option be exercisable pursuant to this Section 8(i) subsequent to the tenth anniversary of the date on which it is granted or subsequent to any earlier termination in accordance with the terms of the
agreement evidencing such Option. 
  
 (j) Continuance of
Service. Except as otherwise determined by the Board, the vesting schedule applicable to an Option requires continued service through each applicable vesting date as a condition to the vesting of the applicable installment of the Option and
the rights and benefits under the Plan. Service for only a portion of a vesting period, even if substantial, will not entitle the Optionee to any proportionate vesting or avoid or mitigate a termination of rights and benefits upon or following a
termination of service as a Board member as provided in Section 8(h) or 8(i). 
  
 9. REGULATORY APPROVALS AND LISTING 
  
 The
Company shall not be required to issue to a Participant, an Optionee, or a Beneficiary, as the case may be, any Restricted Shares or shares of Common Stock upon exercise of an Option prior to (i) the obtaining of any approval from any
governmental agency which the Company, in its sole discretion, shall determine to be necessary or advisable, (ii) the admission of such shares to listing on any stock exchange on which the Common Stock may then be listed, and (iii) the
completion of any registration or other qualification of such shares under any state or Federal law or rulings or regulations of any governmental body which the Company, in its sole discretion, shall determine to be necessary or advisable.

  

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 10. ADJUSTMENT IN EVENT OF CHANGES IN CAPITALIZATION 
  
 In the event of a recapitalization, stock split, stock dividend, combination or exchange of
shares, merger, consolidation, rights offering, separation, spin-off, reorganization or liquidation, or any other change in the corporate structure or shares of the Company, the Board will make such equitable adjustments as it deems appropriate in
the number and kind of shares authorized by the Plan, in the option price of outstanding Options, and in the number of Restricted Shares or shares subject to Options. In the event of any such transaction or event, the Board, in its discretion, may
provide in substitution for any or all outstanding Restricted Shares or Options such alternative consideration as it, in good faith, may determine to be equitable in the circumstances and may require in connection with such substitution the
surrender of all Restricted Shares or Options so replaced. Moreover, the Board may on or after the date of grant provide in the award agreement under the Plan that the holder of the Restricted Shares or Option may elect to receive an equivalent
award in respect of securities of the surviving entity of any merger, consolidation or other transaction or event having a similar effect, or the Board may provide that the holder will automatically be entitled to receive such an equivalent award.

  
 The Company will not be required to issue any fractional share of Common Stock
pursuant to the Plan. The Board may provide for the elimination of fractions or for the settlement of fractions in cash. 
  
 11. TERM OF THE PLAN 
  
 No Restricted Shares or Options shall be granted pursuant to the Plan after May 18, 2014, but grants of Restricted Shares or Options theretofore granted may extend
beyond that date and the terms and conditions of the Plan shall continue to apply thereto. 
  
 12. TERMINATION OR AMENDMENT OF THE PLAN 
  
 The Board may at any time terminate the Plan with respect to any shares of Common Stock not at that time constituting outstanding Restricted Shares or subject to outstanding Options and may from time to time alter or amend the Plan or any
part thereof (including, but without limiting the generality of the foregoing, any amendment deemed necessary to ensure that the Company may obtain any approval referred to in Section 10 or to ensure that the grant of Restricted Shares or
Options, the exercise of Options or any other provision of the Plan complies with Section 16(b) of the Act), provided that no change with respect to any Restricted Shares or Options theretofore granted may be made which would impair the rights
of a Participant or an Optionee without the consent of such Participant or Optionee and, further, that without the approval of shareholders, no alteration or amendment may be made which would (i) increase the maximum number of shares of Common
Stock subject to the Plan as set forth in Section 5 (except by operation of Section 10), (ii) extend the term of the Plan, or (iii) change the class of eligible persons who may receive grants of Restricted Shares or Options under
the Plan. 
  

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 13. GENERAL PROVISIONS 
  
 (a) Neither the Plan nor the grant of any Restricted Shares or Option nor any action by the Company or the Board shall be
held or construed to confer upon any person any right to continued service as a Non-Employee Director. 
  
 (b) All questions pertaining to the construction, regulation, validity and effect of the Plan shall be determined in accordance with the laws of the State
of Delaware, without regard to conflict of laws doctrine. 
  
 (c)
It is the Company’s intention that any Restricted Shares or Option granted under the Plan shall not constitute a deferral of compensation within the meaning of Section 409A of the Code. In granting such Restricted Shares or an Option, the
Board will use its best efforts to exercise its authority under the Plan with respect to the terms of such Restricted Shares or Option in a manner that the Board determines in good faith will not cause the Restricted Shares or Option to be subject
to Section 409A of the Code and, should the Restricted Shares or an Option be subject to Section 409A of the Code, to comply with Section 409A of the Code and thereby avoid the imposition of penalty taxes and interest upon the holder
of the Restricted Shares or Option. The time or schedule of any payment to be made under the Plan may not be accelerated except to the extent permitted under Section 409A of the Code. 
  

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 14. EFFECTIVE DATE 
  
 The Plan was adopted by the Board as of April 14, 2004, and was approved by the shareholders of the Company on May 18, 2004. The
Plan was then amended and restated by the Board effective April 7, 2005 (the “Board Approval Date”), and approved by the Company’s shareholders on May 17, 2005 (the “Shareholder Approval Date”). The Plan was
subsequently amended and restated by the Board effective February 22, 2006. 
  

			
	QUICKSILVER RESOURCES INC.
		
	By:	 	 /s/ Glenn Darden

	 	 	 Glenn Darden, President and
 Chief Executive
Officer

  

 10Amendment No. 1 to Lease

 Exhibit 10.1 
  
 AMENDMENT NO. 1 TO LEASE 
  
 This AMENDMENT NO. 1 TO LEASE (this “Amendment”) is entered into as of the below date between TOUCHSTONE BUILDING LLC, a Washington limited
liability company (“Landlord”) and PORTALPLAYER, INC., a Delaware corporation (“Tenant”). 
  
 Tenant and Landlord entered into that certain Office Lease for the Premises located at 12131 113th Avenue N.E., Kirkland, WA 98034 dated January 13, 2001 (the “Lease”). Landlord and Tenant wish to amend the Lease to expand the Premises to
include the portion of the second floor area shown on Exhibit A hereto (the “New Space”) and to extend the term of the Lease, all as hereinafter set forth. Capitalized terms not defined herein shall have the meanings set forth in the
Lease. 
  
 Landlord and Tenant hereby agree as follows:

  
 1. EFFECTIVE DATE AND VOIDING OF PRIOR
AGREEMENT. Subject to the contingency set forth in Section 10 below, the terms of this Amendment shall be effective on January 1, 2006 (the “Effective Date”). Tenant had previously signed a version of Amendment No. 1 to
Lease on January 11, 2006 and Landlord had previously signed a version of Amendment No. 1 to Lease on January 13, 2006 (the “Cancelled Version of Amendment,” which is attached hereto as Exhibit B), the parties hereto agree to void and
cancel the Cancelled Version of Amendment and such Cancelled Version of Amendment is superseded by this Amendment in its entirety. 
  
 2. INITIAL EXTENSION AND EXPANSION. Subject to the contingency set forth in Section 10 below, as of the Effective Date or later if
specified: 
  
 (a) The New Space shall be added
to the Premises as of March 1, 2006, thereby increasing the area of the Premises by 6,804 rentable square feet to a total of 17,689 rentable square feet. 
  

(b) The Base Rent changes to the following amounts for the following periods: 
  
 $14,513.33/month (10,885 SF at $16.00/rsf/year) from 1/1/06
to 2/28/06 
 $23,585.33/month (17,689 SF at $16.00/rsf/year) from 3/1/06 to 12/31/06 
 $24,690.90/month (17,689 SF at $16.75/rsf/year) from 1/1/07 to 12/31/07 
 $25,427.94/month (17,689 SF at $17.25/rsf/year) from 1/1/08 to 12/31/08 
  
 (c) All references to the Premises in the Lease shall mean the original Premises as expanded by the New
Space and all provisions in the Lease shall apply with full force and effect to the original Premises and the New Space. 
  
 (d) Exhibit A to the Lease is hereby modified to include the area shown on Exhibit A hereto. 
  
 (e) As of March 1, 2006, Tenant’s Percentage under
the Lease shall be increased to 17.65% to reflect the combined square footage of the original Premises and New Space. 
  
 (f) As of March 1, 2006, Tenant shall pay Tenant’s Share of Common Expenses based on this new Tenant’s Percentage of
17.65%. 
  

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 3. SIGNAGE. Provided Tenant is not in default of the lease and has not vacated or subleased
its Premises to a third party throughout the initial term and any extensions thereof, Tenant shall be provided rights to non-exclusive signage on the exterior of the building. Tenant’s signage shall be subject to Landlord’s review and
approval and City of Kirkland signage ordinances and approvals. Such sign shall be installed and maintained by Tenant at Tenant’s sole cost and expense. At the expiration or termination of this Lease, Tenant shall remove the sign and repair any
damage caused by the sign or its removal and Tenant shall insure that there is no detriment to the appearance of the Building following removal of the sign as compared to the appearance prior to installation. 
  
 4. TENANT IMPROVEMENTS. Landlord will prepare plans and
specifications for the changes to the Premises (the “Plans and Specs”) in accordance with a Space Plan to be agreed upon, which shall include reconfiguring existing offices in the expansion space to accommodate two new project labs,
providing new carpet in the current PortalPlayer office space, and either painting or touching up the paint throughout the entire Premises. The work contained in the Plans and Specs is “Landlord’s Work”. Landlord will pay the first
$104,581 of the cost of the Landlord’s Work (the “Allowance”) and Tenant shall pay any excess. The Allowance will include construction documents, permits, and a construction management fee paid to Integrated Real Estate
Services equal to 4.0% of costs before taxes. Landlord may require Tenant to deposit the estimated excess prior to the start of construction and adjust to actual at completion or Landlord may elect to collect the excess at completion. All of
Landlord’s Work will be performed by union affiliated contracts and subcontractors. 
  
 5. OPTION TO RENEW. Provided that Tenant is not in default at the time of exercise or at commencement of the Extended Term (unless the
default is cured within any applicable cure period), and otherwise has timely cured all defaults, then Tenant shall have one option to extend the Lease term for two years (the “Extended Term”). In order to exercise such option, Tenant
shall provide written notice (“Notice of Exercise”) to Landlord of its election no later than 10 months before the end of the initial lease term. The exercise of such option to extend shall be for the then entire Premises and shall be on
the same terms and conditions as set forth in the Lease except the Base Rent shall be adjusted as set forth below. The option provided in this Rider is personal to Tenant and may not be exercised by any assignee or sublessee and may not be exercised
during any period that the entire Premises is subleased out by Tenant. If Tenant exercises an extension right, the initial Base Rent and the periodic increases for the Extended Term shall be equal to the market rent for a two year term for
comparable space located in Kirkland, Washington (“Fair Market Rent Schedule”). For purposes of this Lease, the term “Fair Market Rent Schedule” is understood to mean the rents which a landlord would receive annually by then
renting the space in question assuming the landlord to be a prudent person willing to lease but being under no compulsion to do so, assuming the tenant to be a prudent person willing to lease but under no compulsion to do so, and assuming a lease
containing the same terms and provisions as those herein contained. Fair Market Rent Schedule shall take into consideration all relevant factors including the condition of the space and other terms and conditions of the Lease. Tenant’s
estimation of the Fair Market Rent Schedule (“Tenant’s Rent Schedule”) shall be included with Tenant’s option exercise notice. Landlord shall give Tenant notice of Landlord’s estimation of the Fair Market Rent Schedule
(“Landlord’s Rent Schedule”) eight months before the end of the then existing term. If there is a disagreement on the Fair Market Rent Schedule, the parties shall promptly meet and negotiate in good faith to attempt to resolve their
differences. If the differences are not resolved at 
  

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least six months before the end of the then existing term, then Landlord and Tenant shall each select a real estate broker familiar with then current office
rental rates in the surrounding area and those two brokers shall meet and work in good faith to reach agreement on the Fair Market Rent Schedule. If they reach agreement, then their decision shall be binding on the parties. If the two brokers
aren’t able to reach agreement, then the first two brokers shall (a) put in writing their determination of the Fair Market Rent Schedule for the Extended Term (the “Landlord’s Broker’s Rent Schedule and the
“Tenant’s Broker’s Rent Schedule”, respectively), and (b) jointly select a third broker, also familiar with the current rental rates in the area of the Building. The job of the third broker will be to determine which of the
four Rent Schedules (Tenant’s Rent Schedule, Landlord’s Rent Schedule, Landlord’s Broker’s Rent Schedule and Tenant’s Broker’s Rent Schedule) most closely approximately what the third broker believes to be the Fair
Market Rent Schedule. The Fair Market Rent Schedule established by the third broker shall be binding on the parties. Each party shall pay the cost of its broker and half the cost of the third broker. 
  
 6. LETTER OF CREDIT/SECURITY DEPOSIT. On execution hereof,
Tenant shall no longer be required to provide a Letter of Credit but shall pay to Landlord $25,427.94 as a Security Deposit. 
  
 7. PARKING. Tenant leases from Landlord 17 reserved parking spaces (the “Spaces”) in the covered parking area; provided that there
shall be no charge for the use of the Spaces during the three year Initial Extension Term. No allowances shall be made for days when Tenant or any of its employees do not utilize the Spaces, including if Tenant elects not to use any of the Spaces
but Tenant may terminate its lease of any of the Spaces by 30 days written notice to Landlord. If Tenant ceases to lease any Space then Tenant’s ability to re-let that Space in the future shall depend on whether there are then Spaces
available. Tenant shall not have the right to lease or otherwise use more than the number of reserved Spaces set forth above. 
  
 8. RELOCATION. Landlord shall not have the right to relocate the Tenant. 
  
 9. SECURITY SYSTEM. At its sole expense and subject to Landlord approval, Tenant shall have the right to
install its own security card-reader system and cameras at the entrance to their premises. At the expiration or termination of this Lease, if so desired by Landlord, Tenant shall remove the card-reader system and cameras and repair any damage caused
by the system and cameras or their removal.  
  
 10.
TERMINATION CONTINGENCY. This Amendment is contingent upon (a) the execution by Mortgage IT of an agreement terminating their leasehold rights in the Building, as of midnight on February 28, 2006, on terms acceptable to Landlord; and
(b) delivery of written notification from Landlord to Tenant of the agreement by Mortgage IT to terminate their leasehold rights in the Building. 
  
 11. EARLY ENTRY. Tenant shall be allowed to enter the New Space two weeks prior to the Effective Date for installing cabling and furniture.

  

 3 

 12. NO OTHER AMENDMENTS. Except as modified by this Amendment, the Lease remains in full
force and effect and has not been modified or amended. 
  
 DATED:
February 10, 2006. 
  

			
	 TENANT:

	  
 PORTALPLAYER, INC.,
 a Delaware corporation

		
	 By:
	 	 /s/ Svend-Olav Carlsen

	Its:	 	 Vice President and Chief Financial Officer

	  
 LANDLORD:

	  
 TOUCHSTONE BUILDING, LLC,

		
	By:	 	Washington Capital Management, Inc., as Investment Manager for Locals 302 and 612 International Union of Operating Engineers-Employers Construction Industry Retirement Fund, and as Investment
Manager for the Washington Capital Joint Master Trust Real Estate Equity Fund, Managing Member
		
	By:	 	 /s/ Cory Carlson

	Its:	 	 Director, Equity Real Estate

  

 4 

 LANDLORD’S ACKNOWLEDGMENT 
  

					
	 STATE OF WASHINGTON
	 	)	  	 
	 	 	)	  	ss.
	 COUNTY OF KING
	 	)	  	 

  
 I certify that I know
or have satisfactory evidence that Cory Carlson is the person who appeared before me, and said person acknowledged that he signed this instrument, on oath stated that he was authorized to execute the instrument and acknowledged it as the Director of
Washington Capital Management, Inc. as Investment Manager for Locals 302 and 612 International Union of Operating Engineers-Employers Construction Industry Retirement Fund, and as Investment Manager for the Washington Capital Joint Master Trust Real
Estate Equity Fund, Managing Member of TOUCHSTONE BUILDING LLC, to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. 
  
 Dated: February 14, 2006. 
  

	
	 /s/ Nancy L. Maxwell

	 (Signature of Notary Public)

	
	  
 Nancy L. Maxwell

	(Printed Name of Notary Public)
	 My Appointment expires March 31, 2008

  
 TENANT’S ACKNOWLEDGMENT 
  

					
	 STATE OF CALIFORNIA
	 	)	  	 
	 	 	)	  	ss.
	COUNTY OF SANTA CLARA	 	)	  	 

  
 I certify that I know
or have satisfactory evidence that Svend-Olav Carlsen is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as
the Vice President and Chief Financial Officer of PORTALPLAYER, INC, to be the free and voluntary act of such party for the uses and purposes mentioned in this instrument. 
  
 Dated: February 10, 2006. 
  

	
	 /s/ John Arce Sr.

	 (Signature of Notary Public)

	
	  
 John Arce Sr.

	 (Printed Name of Notary Public)

	 
	 My Appointment expires March 17, 2007

  

 5 

 EXHIBIT A 
 Floor Plan Showing New Space 
  
 [Graphic Omitted] 
  

 6 

 EXHIBIT B 
  
 Canceled Version of Amendment 
  
 [Exhibit Omitted] 
  

 7

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