Document:

Exhibit 10.3

 

LEASE AND SUBLEASE

TERMINATION AGREEMENT

 

(7 and 9 Technology Park
Drive, Westford, Massachusetts)

 

This Lease and Sublease Termination Agreement (“Agreement”) is made and
entered into this 11th day of August, 2010 by and among Michelson Farm-Westford
Technology Park V and VIII Limited Partnership, as successor to the Michelson
Farm-Westford Technology Park Trust, with a notice address in care of The
Gutierrez Company, Burlington Office Park, One Wall Street, Burlington, MA
01803 (the “Landlord”), Teradyne, Inc., as successor to GenRad, Inc.,
with a notice address of 600 Riverpark Drive, North Reading, MA 01864 (the “Tenant”),
and Sonus Networks, Inc., with a notice address of 7 Technology Park
Drive, Westford, MA 01886 (the “Subtenant”).

 

RECITALS

 

WHEREAS, Landlord and Tenant executed two certain leases, both dated as
of July 26, 1996, and both amended by a certain First Amendment to Lease
dated May 20, 1997 and by a certain Amendment to Leases dated November 5,
2007 (collectively, the “Lease”), for the 230,000 rentable square feet of
premises located at 7 and 9 Technology Park Drive, Westford, Massachusetts
(collectively, the “Premises”).  At times
herein, the term “Building 8 Lease” shall refer to the Lease with respect to
the building located at 9 Technology Park Drive, Westford, Massachusetts and
containing 100,000 rentable square feet of spaces (“Building 8”), and the “Building
5 Lease” shall refer to the Lease with respect to the building located at 7
Technology Park Drive, Westford, Massachusetts and containing 130,000 rentable
square feet of space (“Building 5”); and

 

WHEREAS, the Building 5 Lease has an expiration date of June 4,
2012 and the Building 8 Lease has an expiration date of June 24, 2012; and

 

 

WHEREAS, Landlord and Tenant have agreed to terminate the Lease prior
to the applicable expiration date of the Lease, and to release each other from
any and all matters, claims, causes of action or demands, damages, real or
personal, known or unknown, arising out of or in any way related to or based
upon the Lease by Tenant of the Premises; and

 

WHEREAS, the Tenant and Subtenant executed a sublease, dated as of February 22,
2006, amended by a certain First Amendment to the Sublease dated August 14,
2006 (collectively, the “Sublease”) for Building 5 (the “Subleased Premises”).  Landlord consented to the sublease in the
Landlord Consent to Sublease dated February 22, 2006 (the “Landlord
Consent”).  The Sublease is subject to
and incorporates the terms of the Lease as set forth in the Sublease; and

 

WHEREAS, the Sublease has an expiration date of June 4, 2012; and

 

WHEREAS, Tenant and Subtenant have agreed to terminate the Sublease
prior to the expiration date of the Sublease, and Landlord, Tenant and
Subtenant agree to release each other from any and all matters, claims, causes
of action or demands, damages, real or personal known or unknown, arising out
of or in any way related to or based upon the Sublease, the Lease and/or the
Subleased Premises by the Subtenant.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the promises and the mutual
covenants contained herein, the parties hereby agree as follows:

 

1.                                      Surrender of
Premises and Subleased Premises.  Prior to the Termination Date (as hereinafter
defined), as applicable, Tenant and Subtenant shall surrender and peaceably
yield up the Premises (specifically Building 5 or Building 8, as applicable) in
such order, repair and condition as Tenant and Subtenant are required to
pursuant to Section 12.1 of the Lease and Section 15.12 of the
Sublease, respectively, and any other applicable sections of the Lease and
Sublease, and to make or cause to be made any repairs necessary as a result of
the removal of certain items required to be removed by Tenant and Subtenant,
including its personal property, all signage

 

2

 

installed by Tenant and Subtenant or on behalf of Tenant (or Subtenant)
and any communications equipment placed on the roof of Building 5 or Building
8, as applicable, by Tenant and Subtenant or on behalf of Tenant (or
Subtenant), if applicable, and repair all damage resulting therefrom; provided,
however that Subtenant shall only be responsible for up to One Hundred Fifty
Thousand and NO/100 Dollars ($150,000.00) for any such repairs.  In no event shall Tenant be responsible of
any repair or restoration issues related to Building 5 and in no event shall
Subtenant be responsible of any repair or restoration issues related to
Building 8.  Tenant shall leave the
Premises clean and neat in a tenantable condition, as required pursuant to said
Section 12.1 of the applicable Lease. 
Subtenant shall leave the Subleased Premises in broom clean condition
pursuant to Section 15.12 of the Sublease. Notwithstanding the foregoing,
Landlord, Tenant and Subtenant agree to the following: (i) that Subtenant’s
existing furniture described on Exhibit “A” attached hereto, and Subtenant’s
equipment described on Exhibit “B” attached hereto (together with the
items described on Exhibit “A”, the “Remaining Property”), except for the
lab generator, which may be removed at Subtenant’s discretion, shall remain at
the Premises and become the property of Landlord on the Termination Date, at
the cost of $1.00 to Landlord, and (ii) Tenant shall only be responsible
to restore those items within the Premises as described on Exhibit “C”
attached hereto relating to Building 8, and (iii) Subtenant shall only be
responsible to restore those items within the Premises as described on Exhibit “C”
attached hereto relating to Building 5, and (iv) the parties expressly
agree that, except as set forth in Exhibit C attached hereto, Subtenant
shall not be required to remove certain items it has been previously directed
to remove pursuant to Section 9 of the Landlord Consent.  Effective as of the Termination Date or such
date as may be extended pursuant to paragraph 4(c) below, Subtenant hereby
conveys, transfers, sets over, and grants to Landlord all of Subtenant’s right,
title and interest in and to all the Remaining Property, and on or before the
Termination Date, Subtenant

 

3

 

shall execute and deliver to Landlord a Bill of Sale with respect to
such Remaining Property, substantially in the form attached hereto as Exhibit “D”.

 

2.                                      Termination of
Lease and Sublease.  The Building
5 Lease and Sublease shall both be terminated effective December 14, 2010
(the “Building 5 Termination Date”).  The
Building 8 Lease shall be terminated effective November 28, 2010 (the “Building
8 Termination Date”).  At times, the
Building 5 Termination Date and the Building 8 Termination Date shall be
hereinafter collectively referred to as the “Termination Date”.

 

3.                                      Termination
Payment.  Tenant shall
pay to Landlord a lump sum of One Million One Hundred Thousand Dollars
($1,100,000.00) as a Termination Fee (hereinafter referred to as the “Termination
Fee”), which is Tenant’s full and final payment to Landlord under the Lease in
consideration of Landlord entering into this Agreement.  Tenant shall pay the Termination Fee to
Landlord on that certain date that is five (5) business days after Tenant
receives a fully executed original copy of both this Agreement and of the
Lender’s Consent attached hereto as Exhibit “E”.  Tenant shall be responsible to pay all Rent
allocable to the Premises under the Lease through the Termination Date, as
applicable, and any additional rent (e.g. CAM and Taxes) shall be adjusted
following the Termination Date, as provided in the Lease.  Subtenant shall pay all Rent for the
Subleased Premises under the Sublease through the Building 5 Termination
Date.  The parties acknowledge and agree
that Subtenant is under no obligation to pay the Termination Fee, in full or in
part, to neither Landlord nor Tenant nor any other party.

 

4.                                      Holdover.  (a) Conditioned upon the parties’ timely execution of
this Agreement, and further conditioned upon the parties’ timely performance of
their respective obligations hereunder, including Tenant’s surrender of
possession of the Premises to Landlord by the Building 8 Termination Date and
Subtenant’s surrender of possession of the Subleased Premises to the Landlord
and the Tenant by the Building 5 Termination Date, or such date as may be
extended pursuant to paragraph 4(c) below, and Tenant’s payment of the
Termination Fee by the date

 

4

 

stated in paragraph 3 above, the Lease and Sublease shall hereby be
terminated effective on the Termination Date, as applicable, or such date as
may be extended pursuant to paragraph 4(c) below.

 

(b)           If
Tenant fails to make the payment or fails to surrender Building 8 as required
by this Agreement, Landlord hereby reserves all rights and remedies under the
Lease, including its rights to receive payment of all rents due thereunder,
including, without limitation, collecting any holdover damages from Tenant that
may result under the Lease, as applicable. 
Subtenant shall have no liability to Landlord for Tenant’s failure to
surrender Building 8 as required by this Agreement.

 

(c)           If
Subtenant fails to surrender Building 5 as required by this Agreement, the
Subtenant shall be liable directly to Landlord, and not to Tenant, for any
holdover expenses and penalties equal to all rents due under the Sublease,
including, without limitation, collecting any holdover damages from Subtenant.
Tenant hereby waives any and all rights it may have regarding any applicable
holdover provisions under the Sublease and acknowledges that any holdover rents
and/or penalties shall be paid by Subtenant directly to Landlord and not to
Tenant.  Tenant shall have no liability
to Landlord for Subtenant’s failure to surrender Building 5 as required by this
Agreement; however, if necessary, Tenant shall, upon Landlord’s request,
reasonably cooperate with Landlord, at no cost to Tenant, in assisting Landlord
to enforce its rights against Subtenant hereunder (or the Sublease, if
necessary).  Notwithstanding the
foregoing, Landlord agrees that Subtenant shall have the right, exercisable by
giving written notice to Landlord on or before September 1, 2010, to
remain in the laboratory portion of Building 5 for up to three (3) weeks
following the Building 5 Termination Date if necessary for Tenant to maintain a
continuous laboratory operational for its business operations without incurring
any holdover expenses and penalties, provided  that, Tenant and
its employees agree to work harmoniously with Landlord and its contractors so
as to not unreasonably interfere with any work being done in the remaining

 

5

 

portions of Building 5 (excluding the existing laboratory
location).  Upon expiration of such three
(3) week time period, Tenant shall surrender and peaceably yield up
Building 5 in accordance with the foregoing provisions of this Agreement and
failure by Tenant to timely do so may subject Tenant to holdover expenses and
penalties as described above.

 

5.                                      Representations.  Landlord warrants and represents to Tenant
that it is the sole and lawful owner of all rights, title and interest in and to
the Premises.  Landlord, Tenant and
Subtenant each warrant and represent to the others that (i) it is the sole
and lawful owner of its respective rights, title and interest in and to the
Premises and Subleased Premises, including all released matters; (ii) it
has not heretofore assigned or transferred or purported to assign or transfer
to any other person or entity the Lease, Sublease or any released matter or any
portion thereof, except Landlord acknowledges that it has previously delivered
a customary Assignment of Leases and Rents to its lender, State Farm Life
Insurance Company (the “Lender”); and (iii) it has not made any claim,
demand, obligation, liability, action or cause of action arising from either
the Lease or the Sublease.

 

6.                                      Mutual
Releases.  (a) Effective as of the Termination Date, as
applicable, and subject to paragraphs 1, 2, 3 and 4, Landlord and Tenant hereby
forever release and discharge each other, their servants, agents, directors,
officers, partners and employees of and from any and all demands of every kind
and nature, in law, equity or otherwise, known or unknown, suspected or
unsuspected, disclosed or undisclosed, for damages, actual and consequential,
arising out of or any way related to or based upon the Lease, except with respect
to any claims that may survive the Lease pursuant to the express terms and
provisions thereof, if applicable.

 

(b)           Effective
as of the Building 5 Termination Date and subject to paragraphs 1, 2, 3 and
4,  Tenant and Subtenant hereby forever
release and discharge each other, their servants, agents, directors, officers,
partners and employees of and from any and all demands of every kind and
nature, in law, equity or otherwise, known or unknown, suspected or
unsuspected, disclosed or

 

6

 

undisclosed, for damages, actual and consequential, arising out of or
any way related to or based upon the Sublease or the Subleased Premises, except
with respect to any claims that may survive the Sublease pursuant to the express
terms and provisions thereof, if applicable.

 

(c)           Effective
as of the Building 5 Termination Date or such later date on which Tenant
surrenders the entire Building 5 in the event that Subtenant elects to remain
in the laboratory portion of Building 5 for such additional time as permitted
in paragraph 4(c) above, as applicable, and subject to paragraphs 1, 2, 3
and 4, Landlord and Subtenant hereby forever release and discharge each other,
their servants, agents, directors, officers, partners and employees of and from
any and all demands of every kind and nature, in law, equity or otherwise,
known or unknown, suspected or unsuspected, disclosed or undisclosed, for
damages, actual and consequential, arising out of or any way related to or
based upon the Sublease, the Building 5 Lease or the Subleased Premises, except
with respect to any claims that may survive the Sublease and/or the Building 5
Lease and/or the Landlord’s Consent, as applicable, pursuant to the express
terms and provisions thereof, if applicable.

 

(d)           It
is understood and agreed that this is a full, complete and final release of all
claims described as aforesaid, and Landlord, Tenant and Subtenant agree that it
shall apply to all unknown, unanticipated, unsuspected and undisclosed claims,
demands, liabilities, actions, or causes of action, in law, equity, or
otherwise, as well as those which are now known, anticipated, suspected or
disclosed which are predicated upon or arise from the Lease or Sublease or the
early termination of the Lease and Sublease.

 

7.                                      Continuing
Obligations.  From the
effective date of this Agreement until the Termination Date, as applicable,
Landlord, Tenant and Subtenant shall continue to perform their obligations as
set forth in the Lease and Sublease, as applicable.

 

8.             Costs.  The parties hereto agree to bear their
respective costs and attorney’s fees.

 

7

 

9.                                      Successors. This Agreement
shall bind Landlord’s, Tenant’s and Subtenant’s personal representatives,
successors and assigns and inure to the benefit of each party, their agents,
directors, officers, partners, employees, servants, successors, and assigns.

 

10.                               Interpretation. Landlord,
Tenant and Subtenant have reviewed and revised this Agreement and the normal rule of
construction that any ambiguities in this Agreement are to be resolved against
the drafting party shall not be employed in the interpretation of this
Agreement.  All capitalized terms not
otherwise defined herein shall have the meanings ascribed to them in the Lease
or Sublease, as applicable.

 

11.                               Integrated
Agreement. All agreements, covenants, representations, and
warranties expressed and implied, oral and written, of Landlord, Tenant or
Subtenant concerning the subject matter hereof, are contained herein.  No other agreements, covenants,
representations, or warranties, expressed or implied, oral or written, have
been made among Landlord and its attorneys, Tenant and its attorneys and
Subtenant and its attorneys concerning the subject matter herein.  All prior and contemporaneous conversations,
negotiations, possible and alleged agreements, representations, covenants, and
warranties among Landlord, Tenant and Subtenant covering the subject matter
hereof are merged herein.  This is an
integrated agreement.  No modification,
alteration or change of any kind may be made to this Agreement except in
writing signed by each of the parties hereto.

 

12.                               Prevailing
Party.  If any party defaults on the
terms of this Agreement, and legal action is required to enforce its
provisions, the prevailing party shall be entitled to receive from the
defaulting party(ies) a sum equal to the reasonable attorney’s fees and costs
of suit incurred by the prevailing party in enforcing its provisions, in
addition to any other damage to which the prevailing party is entitled.

 

13.                               Condition.  The effectiveness of this Agreement is
expressly contingent upon Landlord’s obtaining approval by the Lender to enter
into this Agreement, which shall be evidenced by the execution of the Consent
attached hereto as Exhibit “E” by the Lender.  If, for whatever reason, the Lender does

 

8

 

not sign the Consent within ten (10) days of the signing of this
Agreement, then: (a) this Agreement shall become null and void and of no
further force and effect for any purpose whatsoever; and (b) the Lease and
Sublease shall continue in full force and effect as if this Agreement were
never entered into.

 

14.                               Governing Law.  This Agreement shall be deemed to have been
executed and delivered within The Commonwealth of Massachusetts, and the rights
and obligations of the parties shall be construed and enforced in accordance
with, and governed by, the laws of The Commonwealth of Massachusetts.

 

15.                               Limitation of
Liability.  Except as
otherwise set forth herein, no party shall be liable to the other under any
circumstances for any exemplary, punitive, consequential or indirect damages.

 

16.                               Further
Assurances.  Each party
agrees to cooperate with the other and to execute and deliver all such further
instruments and documents and do all such further acts and things as such party
may be reasonably requested to do from time to time by the other party in order
to carry out the provisions and objectives of this Agreement.

 

17.                               Landlord
acknowledges and agrees that the effectiveness of this Agreement is not
conditioned upon Landlord’s entering into any lease or other occupancy
agreement with Subtenant or Tenant for the Premises or the Subleased Premises
or any portion thereof covering any period of time subsequent to the date of
this Agreement.

 

18.                               Notwithstanding
anything to the contrary in the Sublease, within five (5) business days
after the Building 5 Termination Date, or such later date on which Tenant
surrenders the entire Building 5 in the event that Subtenant elects to remain
in the laboratory portion of Building 5 for such additional time as permitted
in paragraph 4(c) above, Tenant shall return to Subtenant, or elsewhere at
Subtenant’s written direction, that certain Irrevocable Letter of Credit No. 68011473,
dated February 23, 2006, in the amount of $300,000.00, which is currently
held by Tenant as a security deposit for the Subleased Premises.

 

9

 

19.                               Each party
hereto agrees that any other party hereto may promptly make all filings with
any authority or securities exchange as may, in its reasonable judgment, be
required or advisable in connection with the execution and delivery of this
Agreement, the consummation of the transactions contemplated hereby, by
applicable law or by the rules and regulations of any securities exchange.

 

20.                               TERMINATION OF
NOTICE OF SUBLEASE. 
Simultaneously with the execution of this Agreement at the request of
either Tenant or Subtenant, Tenant and Subtenant shall execute, acknowledge and
deliver a Termination of Notice of Sublease in customary form for recording in
the Commonwealth of Massachusetts.

 

[Signature Page Follows]

 

10

 

IN
WITNESS WHEREOF, the parties have executed this instrument in multiple
counterparts, each of which shall have the full force and effect of an original
on the day and year first written above.

 

 

	
  LANDLORD:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  MICHELSON FARM-WESTFORD TECHNOLOGY PARK

  	
   

  	
   

  
	
  V AND VIII LIMITED PARTNERSHIP

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  The Gutierrez Company, General Partner

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Arthur J. Gutierrez, Jr.

  	
   

  	
   

  
	
  Name:

  	
  Arthur
  J. Gutierrez, Jr.

  	
   

  	
  Witness

  
	
  Its:

  	
  President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  08/11/10

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TENANT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  TERADYNE, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Gregory R. Beecher

  	
   

  	
   

  
	
  Name:

  	
  Gregory
  R. Beecher

  	
   

  	
  Witness

  
	
  Its:

  	
  Vice
  President and CFO

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  8/2/10

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SUBTENANT:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  SONUS
  NETWORKS, INC.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Wayne Pastore

  	
   

  	
   

  
	
  Name:

  	
  Wayne
  Pastore

  	
   

  	
  Witness

  
	
  Its:

  	
  Senior
  Vice President and Chief Financial Officer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  August 11,
  2010

  	
   

  	
   

  

 

11

 

EXHIBIT “A”

 

LIST OF SUBTENANT FURNITURE

 

All
Herman Miller Ethospace cubicle workstation furniture, including miscellaneous
Herman Miller components currently stored off-site at Sterling Corporation
Warehouse in Chelmsford, MA.

 

All
main café table and chairs seating furniture

 

12

 

EXHIBIT “B”

 

LIST OF SUBTENANT EQUIPMENT

 

Two
(2) Trane 40 Ton Chiller’s

 

One
(1) 100 kW Natural Gas Generator

 

13

 

EXHIBIT “C”

 

LIST OF ITEMS TO BE RESTORED

 

9
Technology Park Drive — Building 8 — Tenant’s responsibility

 

Most
recent HVAC Maintenance records of all units & sub-systems will be
provided and systems will be in good working order.

 

Most
recent Sprinkler System inspection records and system will be in good working
order.

 

Most
recent Duct Smoke Detector inspection records and detectors will be in good working
order.

 

Most
recent Fire Alarm System inspection records and system will be in good working
order.

 

Window
blinds will be repaired as necessary.

 

All
exterior doors will be in good working order.

 

UPS
system and data equipment located in the Tel/data closet in the office area
will be removed.

 

UPS
system and data equipment located in the Manufacturing area closet will be
removed.

 

UPS
system and data equipment located in the Tel/data closet on the loading dock
will be removed.

 

The
spray booth located on the loading dock will be removed to roof line.

 

The
metal cage strut and cage material located on the loading dock will be removed.

 

The
used copper pipe on the loading dock will be removed.

 

The
used electric conduit will be removed from loading dock and adjacent
maintenance service closet.

 

The
forklift battery charging station will be removed.

 

14

 

7
Technology Park Drive — Building 5 — Subtenant’s responsibility

 

Remove
all piping associated with supplemental cooling systems that will be removed

 

Remove
all pads, fencing and associated wiring and conduit for systems removed (e.g.,
UPS / generator / lieberts / chillers / ceiling projectors) utilizing good
workmanship practices

 

Repair
holes caused by the removal of equipment hanging on walls (e.g., card readers /
cameras / white boards / artwork / logos)

 

Repair
damage to walls, doors, door frames, and glass

 

Repair
damage to ceiling tiles or grid

 

Repair
ceilings where equipment has been removed (e.g., drop down screens)

 

Replace
any light bulbs that are inoperable

 

Ensure
all building fire extinguishers are in good working order and repair and/or
replace as required

 

Ensure
that all bathroom fixtures are in good working order (e.g. soap dispensers /
sanitary napkin dispensers / etc.) and repair and/or replace as required

 

Ensure
that all remaining millwork is in good working order and repair and/or replace
as required

 

Remove
interior and exterior signage

 

Remove
the water filtration system (only if non point of use type)

 

15

 

EXHIBIT “D”

 

FORM OF BILL OF SALE

 

As
of this        day of                           ,
2010, Sonus Networks, Inc. (“Seller”),
in connection with its sublease of space located at and commonly known as 7
Technology Park Drive, Westford, Massachusetts (the “Property”), for and in
consideration of the sum of ONE DOLLAR ($1.00) and other good and valuable
consideration to it paid by Michelson Farm-Westford
Technology Park V and VIII Limited Partnership (“Buyer”), the
receipt and sufficiency of which are hereby acknowledged, does hereby grant,
bargain, sell, transfer and deliver unto Buyer any and all personal property,
fixtures and equipment (whether tangible or otherwise) now located in or on the
Property and used in connection therewith as set forth in Exhibit A
attached hereto and made a part hereof (the “Personal Property”).  Seller conveys to Buyer the Personal Property
in its physical condition AS IS WHERE IS.

 

Seller
does hereby warrant to Buyer that, to Seller’s knowledge, it has good and
marketable title to the Personal Property and Seller has the right to, and
hereby does, as of the date of execution hereof, convey the Personal Property
to Buyer, free and clear of all liens and security interests.

 

TO
HAVE AND TO HOLD the Personal Property unto Buyer, its successors and assigns,
to its own use forever.

 

IN WITNESS WHEREOF, the Seller has hereunto set its hand and seal as of
the date first set forth above.

 

	
   

  	
   

  	
  SELLER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  SONUS
  NETWORKS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Printed
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
  Date:

  	
   

  
							

 

16

 

EXHIBIT A

TO BILL OF SALE

 

17

 

EXHIBIT “E”

 

CONSENT OF MORTGAGEE

 

The
undersigned Mortgagee hereby consents and approves the terms and provisions set
forth in the Lease and Sublease Termination Agreement dated as of August     ,
2010, by and between Michelson Farm-Westford Technology Park V and VIII Limited
Partnership, Teradyne, Inc. and Sonus Networks, Inc.

 

 

	
   

  	
   

  	
  MORTGAGEE:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  STATE
  FARM LIFE INSURANCE COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
  Witness

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Its:

  	
   

  

 

18Exhibit
10.7

 

 

RESTRICTED STOCK

UNIT AWARD AGREEMENT

 

This
Restricted Stock Unit Award (“Award”) is made this March 06, 2006 (“Date
of Grant”), by Motorola, Inc. (the “Company” or “Motorola”)
to Gregory Brown (the “Grantee”).

 

WHEREAS, Grantee is receiving the Award under the Motorola Omnibus
Incentive Plan of 2002, as amended (the “2002 Omnibus Plan”);

 

WHEREAS, the Award is a special grant of Motorola restricted stock
units;

 

WHEREAS, it is a condition to Grantee receiving the Award that Grantee
electronically accept the terms, conditions and restrictions applicable to the
restricted stock units as set forth in this agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein and for
other good and valuable consideration, the Company hereby awards restricted
stock units to Grantee on the following terms and conditions:

 

1.     Award of Restricted Stock Units.  The Company hereby awards to Grantee a total
of three  hundred and fifty thousand
(350,000) Motorola restricted stock units (the “Units”) subject to the
terms and conditions set forth below.

 

2.     Restrictions.  The
Units are being awarded to Grantee subject to the transfer and forfeiture
conditions set forth below (the “Restrictions”) which shall lapse, if at
all, as described in Section 3 below. 
For purposes of this Award, the term Units includes any additional Units
granted to the Grantee with respect to Units, still subject to the
Restrictions.

 

a.     Grantee may not directly or indirectly, by operation of law or
otherwise, voluntarily or involuntarily, sell, assign, pledge, encumber, charge
or otherwise transfer any of the Units still subject to Restrictions. The Units
shall be forfeited if Grantee violates or attempts to violate these transfer
restrictions.

 

b.     Any Units still subject to the Restrictions shall be
automatically forfeited upon the Grantee’s termination of employment with
Motorola or a Motorola Subsidiary for any reason, other than death or Total and
Permanent Disability, as defined in Section 3(a) below.   For purposes of this Agreement, a “Motorola
Subsidiary” is any corporation or other entity in which a 50 percent or
greater interest is held directly or indirectly by Motorola and which is
consolidated for financial reporting purposes.

 

c.     If Grantee engages, directly or indirectly, in any activity
which is in competition with any activity of Motorola or any Motorola
Subsidiary, or in any action or conduct which is in any manner adverse or in
any way contrary to the interests of Motorola or any Motorola Subsidiary, all
Units shall be forfeited.  This
determination shall be made by the Committee and Leadership Committee of the
Company’s Board of Directors (the “Committee”).

 

The
Company will not be obligated to pay Grantee any consideration whatsoever for
forfeited Units.

 

1

 

3.     Lapse of Restrictions.

 

a.     The Restrictions applicable to the Units shall lapse, as long as
the Units have not been forfeited as described in Section 2 above, as
follows:

 

(i)        50% on September 06, 2008

 

(ii)       50% on March 06, 2011

 

(iii)      Upon a Change in Control of the Company (as defined by the 2002
Omnibus Plan);

 

(iv)                  If the Grantee becomes
Totally and Permanently Disabled. A “Total and Permanent Disability”
means for (x) U.S. employees, entitlement to long term disability benefits
under the Motorola Disability Income Plan, as amended and any successor plan or
a determination of a permanent and total disability under a state workers
compensation statute and (y) non-U.S. employees, as established by
applicable Motorola policy or as required by local regulations; or

 

(v)       If the Grantee dies.

 

b.     If during the Restricted Period the Grantee takes a Leave of
Absence from Motorola or a Motorola Subsidiary and the Grantee’s employment
from Motorola or a Motorola Subsidiary is not terminated for any reason (other
than death or Total and Permanent Disability), the Units will continue to be
subject to this Agreement. If the Restricted Period expires while the Grantee
is on a Leave of Absence the Grantee will be entitled to the Units even if the
Grantee has not returned to active employment. “Leave of Absence” means
a leave of absence from Motorola or a Motorola Subsidiary that is not a
termination of employment, as determined by Motorola.

 

c.     To the extent the Restrictions lapse under this Section 3
with respect to the Units, they will be free of the terms and conditions of
this Award.

 

4.     Adjustments.  If
the number of outstanding shares of Common Stock of the Company is changed as a
result of stock dividend, stock split or the like without additional
consideration to the Company, the number of Units subject to this Award shall
be adjusted to correspond to the change in the outstanding shares of Motorola
Common Stock (“Common Stock”).

 

5.     Dividend Equivalents.  Upon the Company’s payment of a cash dividend
with respect to its Common Stock, the number of Units shall be increased by
dividing the amount of dividend the Grantee would have received had the Grantee
owned a number of shares of Common Stock equal to the number of Units then
credited to his or her account by the closing price of the Company’s Common
Stock on the last trading day before the date of the dividend payment, as
reported for the New York Stock Exchange — Composite Transaction in the Wall
Street Journal, Midwest edition.  If a
dividend is paid in shares of stock of another company or in other property,
the Grantee will be credited with the number of shares of that company or the
amount of property which would have been received had the Grantee owned a
number of shares of Common Stock equal to the number of Units credited to his
or her account.  The shares or property
so credited will be subject to the same Restrictions and other terms and
conditions applicable to Units and will be paid out in kind at the time the
Restrictions lapse.

 

6.     Delivery of Certificates or Equivalent.  Upon the lapse of Restrictions applicable to
the Units, the Company shall, at its election, either deliver to the Grantee (i) a
certificate representing a number of shares of Common Stock equal to the number
of Units upon which such Restrictions have lapsed, plus, a cash payment equal
to the value of any fractional unit then credited to the Grantee or (ii) establish
a 

 

2

 

brokerage account for the Grantee and credit to that
account the number of shares of Common Stock of the Company equal to the number
of Units upon which such Restrictions have lapsed plus, in either case, a cash
payment equal to the value of any fractional Unit then credited to the Grantee’s
account.

 

7.  Withholding Taxes.  The Company is entitled to withhold an amount
equal to Motorola’s required minimum statutory withholdings taxes for the
respective tax jurisdiction attributable to any share of Common Stock or
property deliverable in connection with the Units.  Grantee may satisfy any withholding
obligation in whole or in part by electing to have Motorola retain shares of
Common Stock deliverable in connection with the Units having a Fair Market
Value on the date the Restrictions applicable to the Units lapse equal to the
minimum amount required to be withheld. “Fair Market Value” for this purpose
shall be the closing price for a share of Motorola common stock on the last
trading day before the date the Restrictions applicable to the Units lapse as
reported for the New York Stock Exchange Composite Transaction in the Wall
Street Journal, Midwest edition.

 

8.     Voting and Other Rights.

 

a.     Grantee shall have no rights as a stockholder of the Company in
respect of the Units, including the right to vote and to receive dividends and
other distributions, until delivery of certificates representing shares of
Common Stock in satisfaction of the Units.

 

b.     The grant of Units does not confer upon Grantee any right to
continue in the employ of the Company or a Motorola Subsidiary or to interfere
with the right of the Company or a Motorola Subsidiary, to terminate Grantee’s
employment at any time.

 

9.     Funding.  No assets
or shares of Common Stock shall be segregated or earmarked by the Company in
respect of any Units awarded hereunder. 
The grant of Units hereunder shall not constitute a trust and shall be
solely for the purpose of recording an unsecured contractual obligation of the
Company.

 

10.   Governing Law.  All
questions concerning the construction, validity and interpretation of this
Award shall be governed by and construed according to the internal law and not
the law of conflicts of the State of Illinois.

 

11.   Waiver.  The failure
of the Company to enforce at any time any provision of this Award shall in no
way be construed to be a waiver of such provision or any other provision
hereof.

 

12.   Actions by the Committee. 
The Committee may delegate its authority to administer this
Agreement.  The actions and
determinations of the Committee or delegate shall be binding upon the parties.

 

13.   Acceptance of Terms and Conditions.  By electronically accepting this Award within
30 days after the date of the electronic mail notification by the Company to
you of the grant of this Award (“Email Notification Date”), you agree to be
bound by the foregoing terms and conditions, the 2002 Omnibus Plan and any and
all rules and regulations established by Motorola in connection with
awards issued under the 2002 Omnibus Plan. 
If you do not electronically accept this Award within 30 days of the
Email Notification Date you will not be entitled to the Units.

 

14.   Plan Documents.  The
2002 Omnibus Plan and the Prospectus for the 2002 Omnibus Plan are available at
http://myhr.mot.com/finances/stock_options/plan_documents.jsp or from Motorola
Global Rewards, 1303 East Algonquin Road, Schaumburg, IL 60196  (847) 576-7885.

 

3

 

 

AMENDMENT TO RESTRICTED STOCK UNIT AWARD AGREEMENT

 

This
Amendment (the “Amendment”) to the Restricted Stock Unit Award
Agreement, dated as of March 6, 2006 (the “Award”), between Motorola,
Inc. and Gregory Brown is effective September 22, 2010.  Capitalized terms used herein and not
otherwise defined shall have the meanings ascribed to such terms in the Award.

 

1.             Section 5 of the Award is
amended by adding the following two sentences at the end of Section 5:

 

Notwithstanding
anything to the contrary in the Award, the second and third sentence of this
Section 5 shall not apply with respect to the Distribution (as defined in the
Amended and Restated Master Separation and Distribution Agreement, dated as of
July 31, 2010, by and among the Company, Motorola SpinCo Holdings Corporation, and Motorola Mobility, Inc.).  In the case of the Distribution, the Units
shall be adjusted in accordance with the proviso contained in Section 4.3(b) of
the Employee Matters Agreement, dated
as of July 31, 2010, by and among the Company, Motorola SpinCo Holdings
Corporation, and Motorola Mobility, Inc., as amended from time to time.

 

2.             Except as expressly amended
by this Amendment, all terms and conditions of the Award remain in full force
and effect and are unmodified hereby.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK.]

 

4

 

IN WITNESS WHEREOF, the parties have executed
or caused this Amendment to be executed as of the day and year first above
written.

 

 

	
   

  	
  /s/
  Gregory Brown

  
	
   

  	
  Gregory
  Brown

  
	
   

  	
   

  
	
  Acknowledged and Agreed:

  	
   

  
	
   

  	
   

  
	
  Motorola, Inc.

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Michele A. Carlin

  	
   

  	
   

  
	
  Name: 

  	
  Michele A. Carlin

  	
   

  	
   

  
	
  Title:

  	
  Senior Vice President, Human Resources

  	
   

  	
   

  

 

5

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