Document:

2005 Management Incentive Bonus Plan

 Exhibit 10.3 
  
 2005 Management Incentive Bonus Plan 
  
 The goals of the 2005 Management Incentive Bonus Plan (the “Bonus Plan”) of MatrixOne, Inc. (the
“Company”) are to: 
  

	 	•	 	increase shareholder value by aligning the Company management’s performance with the interests of the stockholders; 

  

	 	•	 	retain and motivate members of Company management who are key contributors to the Company’s financial success; and 

  

	 	•	 	reward the Company management for attaining corporate financial goals, including profitability for fiscal year 2005 and improvement in financial performance over fiscal year 2004.

  
 The Bonus Plan is subject to the following
provisions: 
  

	 	•	 	awards are to be made in cash only; 

  

	 	•	 	awards shall be calculated based upon the audited financials for fiscal year 2005; and 

  

	 	•	 	individuals must be employees of the Company on the date the award is paid. 

  
 A total of $924,240 was allocated for the total potential bonus pool for executive officers under the Bonus Plan. Awards may be made under the Bonus Plan to eligible
participants based upon achievement of Company adjusted earnings per share performance targets. A threshold level of adjusted earnings that must be attained before any bonus is awarded shall be specified under the Bonus Plan, and the calculation of
the actual bonus to be paid is pro rated based upon the actual adjusted earnings per share achieved, up to a maximum of 115% of the total amount allocated under the award.Exhibit 10.1

FIRST AMENDMENT TO LEASE

THIS FIRST AMENDMENT TO LEASE AGREEMENT, made and entered into by and between VERILINK CORPORATION, a Delaware corporation (hereinafter referred to as “Landlord”) and THE BOEING COMPANY, a Delaware corporation (hereinafter referred to as “Tenant”).

WITNESSETH:

WHEREAS, by Lease Agreement dated August 2, 2002 entered into by and between Landlord and Tenant (the “Lease”), Landlord did lease and demise unto Tenant certain office space (containing approximately 109,910 square feet of floor area), together with the land and parking areas thereto located at 950 Explorer Boulevard, Huntsville, Alabama (the “Premises”) on the conditions and for the terms and rental rate set forth therein; and

WHEREAS, Landlord and Tenant desire to extend the Lease Term and adjust the Base Rent therefore; and

NOW THEREFORE, the parties hereto mutually agree that said Lease shall be amended in accordance with the following:

	
  
A.)
  	
  
The Lease Term, which, according to Article 1.6 of   the Lease, Lease Term is for a “sixty-four (64) month period”, shall   be modified such that the Lease Term shall be for a “one hundred twenty four   (124) month period”.
  
	
  
 
  	
  
 
  	

 
  
	
  B.)
  	
  
The Expiration Date, which is scheduled to occur on   November 30, 2007, as provided in Article 1.8 of the Lease, Expiration   Date, is hereby extended for sixty (60) additional, successive months   thus expiring November 30, 2012.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
C.)
  	
  
Article 2.3 of the Lease, Right to Extend Lease   Term, shall be deleted and following placed in its stead:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
“Tenant shall have five (5) successive two (2) year   options to extend the Lease. To extend the Lease Term, Tenant must give   written notice to Landlord no later than nine (9) months prior to the end of   the Lease Term (or any extensions thereof) of its intentions to extend the   Lease Term. The rent for each option period shall be at ninety-percent (90%)   of the Fair Market Rent, as defined in Paragraph 3.1.2 as amended by First   Amendment to Lease.”
  
	
  
 
  	
  
 
  	
  
 
  
	
   
  	
  
The last paragraph of Article 3.1.2 of the Lease is   replaced with the following:
  
	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
For purposes of this   Paragraph 3.1.2, the term “Comparable Buildings” shall mean office buildings   similar in size, style and condition to the Premises in Huntsville,   Alabama.  Rental rate comparisons will   be for leases (excluding subleases) for transactions completed within the   last twelve (12) months of the date of expiration of the then term of this   lease.  
  

	
  
 
  	
  
 
  	
  
The term “Fair Market   Rental Value” shall mean a rental rate equal to the market rental rate for   comparable space in Comparable Buildings (but without considering any   improvements, alterations, or additions made by Tenant at Tenant’s expense   per the attached schedule, which will be updated throughout the lease term to   reflect any additional improvements, alterations, or additions made by Tenant   at Tenant’s expense), taking into account the cost of any refurbishment to   the Premises necessary to make the Premises substantially equivalent in   condition (but without considering any improvements, alterations, or   additions made by Tenant at Tenant’s expense) to comparable space in   Comparable Buildings and any rental incentives being realized by tenants in   the Comparable Buildings and any market supported adjustments for rental rate   inflation or deflation to the commencement of the term of the applicable
Option.
  
	
   
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
Each party will hire an   MAI Appraiser with a minimum of five (5) years of experience with lease   valuation of commercial office buildings in the Huntsville area. The   appraisers will use the above referenced set of instructions. If the two   appraisers’ opinions of the market rent do not differ by more than five   percent (5%) of the lower of such two opinions, the two opinions will then be   averaged and the Fair Market Rental Value will be this average. If the two   appraisers’ opinions of the market rent differ by more than five percent (5%)   of the lower of such two opinions, then a third MAI appraiser will be   selected jointly by the two MAI appraiser already named and such third   appraiser shall be hired and paid for equally by both parties (and if the   first two appraisers cannot agree upon the third appraiser, either Landlord   or Tenant may apply to the Atlanta District Vice President of the American   Arbitration Association to appoint
a qualified third appraiser). The third   appraiser will evaluate the market, and the opinion of the other two   appraisers, and will then arrive at a market rental rate, which shall be no   higher than the higher of the other two opinions and no lower than the lower   of the other two opinions, and which shall thereupon be treated as the Fair   Market Rental Value for purposes of calculating Base Rent during the relevant   period.
  
	
  
 
  	
  
 
  	
  
 
  
	
  
D.)
  	
  
Effective December 1, 2005 or the first (1st)   day of the month immediately following full execution of this First Amendment   to Lease, whichever is the latter to occur (the “Modified Rent Commencement   Date or MRCD”), the “Rental Schedule”, as provided in Exhibit C of the   Lease shall be deleted and the following schedule shall be placed in its   stead:
  

	
  
“Period
  	
   
 	
  
Annual   Rental
  	
   
 	
  
Monthly   Rental
  	
   
 
	
  

  	
  
 
  	
  

  	
  

  	
  
 
  	
  

  	
  

  	
  
 
  
	
  
MRCD through 11/30/06
  	
  
 
  	
  
$
  	
  
775,000.00
  	
  
 
  	
  
$
  	
  
64,583.33
  	
  
 
  
	
  12/1/06 through 11/30/07
  	
  
 
  	
  
$
  	
  
794,375.04
  	
  
 
  	
  
$
  	
  
66,197.92
  	
  
 
  
	
  
12/1/07 through 11/30/08
  	
  
 
  	
  
$
  	
  
814,234.44
  	
  
 
  	
  
$
  	
  
67,852.87
  	
  
 
  
	
  
12/1/08 through 11/30/09
  	
  
 
  	
  
$
  	
  
834,590.27
  	
  
 
  	
  
$
  	
  
69,549.19
  	
  
 
  
	
  12/1/09 through 11/30/10
  	
  
 
  	
  
$
  	
  
855,455.04
  	
  
 
  	
  
$
  	
  
71,287.92
  	
  
 
  
	
  
12/1/10 through 11/30/11
  	
  
 
  	
  
$
  	
  
876,841.44
  	
  
 
  	
  
$
  	
  
73,070.12
  	
  
 
  
	
  
12/1/11 through 11/30/12
  	
  
 
  	
  
$
  	
  
898,762.48
  	
  
 
  	
  
$
  	
  
74,896.73
  	
  
 
  

	
  
E.)
  	
  
In consideration for Tenant entering into this First   Amendment to Lease, Landlord shall contribute a sum not to exceed Seven   Hundred Thousand Dollars ($700,000.00) (the “HVAC Allowance”) toward the cost   of repairing and/or replacing the existing heating, ventilating and   air-conditioning system (the “HVAC System”) servicing the Premises. Such   contribution shall be considered, for all purposes herein, a capital   contribution by Landlord and in no event shall be construed as an Operating   Expense, as that term is used in the Lease. The HVAC Allowance is not an   Operating Expense and may not be charged to Tenant in any way. Tenant shall   submit invoices to Landlord for work that has been performed for Tenant in   connection with repairing and/or replacing the HVAC System and Landlord shall   promptly pay such invoices (subject to such reasonable audit and verification   as Landlord deems appropriate) until the cumulative amount of
such invoices   reaches the HVAC Allowance. All repairs or replacements to the HVAC system   shall be performed by licensed contractors approved in writing by Landlord   and shall be performed in accordance with all applicable building codes and   ordinances.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
In the event that the cost of such repair and/or   replacement exceeds the HVAC Allowance, Landlord shall, at its sole cost and   expense, pay such excess (the “Additional Amount”) not to exceed   $500,000.00.  The Additional Amount is   not an Operating Expense and may be charged to Tenant only as provided in   this paragraph. Tenant shall submit invoices to Landlord for work that has   been performed for Tenant in connection with repairing and/or replacing the   HVAC System that exceed the HVAC Allowance and Landlord shall promptly pay   such invoices (subject to such reasonable audit and verification as Landlord   deems appropriate) until the cumulative amount of such invoices (over and   above the HVAC Allowance) reaches the Additional Amount. Tenant agrees to pay   to Landlord, as Additional Rent during each month of the Term following the   payment by Landlord of the Additional Amount, an amount that would amortize   the Additional Amount over
a period of fifteen (15) years, based on an   interest rate of nine percent (9%) per annum on the unamortized balance and   level monthly payments of principal and interest.
  
	
   
  	
  
 
  
	
  
 
  	
  
Prior to any sale, lease,   disposition, or encumbrance of the Property by Landlord, and to secure   Landlord’s obligation to pay the HVAC Allowance and the Additional Amount,   Landlord shall open an escrow at the Huntsville, Alabama office of First   American Title Insurance Company or such other title insurance company in   Huntsville, Alabama as may be designated by Tenant (the “Escrow Holder”) and   shall deposit with the Escrow Holder on or before the closing of any such   sale, lease, disposition, or encumbrance the sum of 
  

	
  
 
  	
  
One Million Two Hundred   Thousand and 00/100 Dollars ($1,200,000.00), being the total of the HVAC   Allowance and the maximum amount of the Additional Amount minus any amount of   the HVAC Allowance or the Additional Amount that has been actually paid to   Tenant by Landlord prior to that date.    Landlord and Tenant shall jointly instruct the Escrow Holder to pay to   Tenant the amounts that Tenant shall certify to the Escrow Holder that Tenant   has incurred in connection with the HVAC System up to, but not in excess of   One Million Two Hundred Thousand Dollars ($1,200,000.00).  The Escrow Holder shall be further   instructed to pay to Landlord any amount remaining in the hands of the Escrow   Holder on the earlier of (a) the date on which Tenant confirms in writing to   the Escrow Holder that Tenant has no further invoices to submit to the Escrow   Holder in connection with the HVAC System or (b) two (2) years after the date   of this First
Amendment to Lease Agreement.    The funds so deposited with the Escrow Holder shall not be payable to   Landlord or any successor Landlord prior to the earlier of said dates,   notwithstanding any agreement between Landlord and any successor to Landlord   to the contrary.  Notwithstanding   paragraph 20.3 of the Lease or any other provision of the Lease, any assignee   or successor of Landlord shall be liable to perform the obligations of   Landlord under this paragraph and shall be fully liable to Tenant for the   full amount of the HVAC Allowance and the Additional Amount (and paragraph   20.3 is hereby so amended) PROVIDED that any successor of the original   Landlord shall be discharged of such obligation to the extent of the amounts   of the HVAC Allowance and/or the Additional Amount actually paid by the   original Landlord to the Tenant or to the Escrow Holder.
  
	
   
  	
  
 
  
	
  
 
  	
  
Additionally, in reference to Article 3.2.2 of the   Lease, Exceptions, to the extent that capital costs are allowed as   Operating Expenses, the first $25,000 of such allowed capital costs in any   calendar year during the Term may be treated as an Operating Expense, and all   allowed capital improvement costs in excess of $25,000.00, in any calendar   year during the Term of the Lease, shall be amortized over a period equal to   the useful life of the system or equipment installed or fifteen (15) years,   whichever is less and on the basis of level total payments of principal and   interest (using an interest rate of nine percent (9%) per annum), and it is   hereby understood and agreed that during the Term of the Lease Tenant shall   be responsible for payment unto Landlord for said amortized cost (prorated   for partial years) to the extent that the period of such amortization falls   during the Term of the Lease.
  
	
  
 
  	
  
 
  
	
  
F.)
  	
  
Article 17, Surrender, is hereby amended by deleting   the expression “Lease Commencement Date” in the two places where it occurs   and replacing it with the expression “Relevant Return Condition Date”.  Article 17 is further amended by adding   the following sentence to the end of Article 17.  The :”Relevant Return Condition Date” is (1) the Lease   Commencement Date if the Lease is terminated prior to December 1, 2007; (2)   December 1, 2007 if the Lease expires or is terminated from December 1, 2007   through and including November 30, 2012; and (3) for each two-year option   period provided for in Paragraph C of this First Amendment to Lease, the first   day of such two-year period.
  

	
  
G.)
  	
  
Article 22.1 of the Lease, Option to Purchase,   shall be deleted and the following placed in its stead:
  
	
  
 
  	
  
 
  
	
  
 
  	
  
“Provided Tenant is not in default of any terms   and/or conditions of the Lease, Landlord hereby grants unto Tenant, the first   right to purchase the Premises expressly subject to the conditions set forth   herein. In the event Landlord receives an offer acceptable to Landlord or, in   the alternative, elects to market the Premises for sale, Landlord shall be   required to notify Tenant of such and upon receipt of such notification,   Tenant shall have fifteen (15) days to respond, in writing, as to its intent   to purchase the Premises.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
In the instance where Landlord receives a bona fide   offer from a third party which is acceptable to Landlord and the Landlord (1)   has not previously provided Tenant a notice to market the Property as set   forth in the next succeeding paragraph below and (2) is not required to   notify Tenant of such offer pursuant to the next succeeding paragraph below,   Landlord shall notify Tenant of such offer and its content whereby Tenant   shall have the right to purchase the Premises in accordance with the terms   and conditions set forth therein.
  
	
   
  	
  
 
  
	
  
 
  	
  
In the instance where Landlord elects to market the   Premises for sale, Landlord, prior to commencing its marketing effort, shall   notify Tenant of such and offer unto Tenant the minimum purchase price and   acceptable terms established by Landlord. Provided Tenant accepts the offer   in fifteen (15) days after such notice, Tenant shall consummate the purchase   of the Premises in accordance with such offer. In the event Tenant rejects   such offering or fails to respond within the fifteen-day period, as provided   hereinabove, Landlord shall be released from its obligation to offer the   Premises to Tenant hereunder and commence to market the Premises to potential   purchasers. Notwithstanding, in the event Landlord should agree to accept a   price and/or terms less favorable to Landlord than that which had been   previously offered to Tenant, prior to acceptance thereof, Landlord shall be   required to notify Tenant of such less favorable price and terms
whereby   Tenant, within the fifteen day time period set forth hereinabove, have the   right to purchase the Premises at such price and terms.
  
	
  
 
  	
  
 
  
	
  
 
  	
  
It is hereby understood and agreed that Tenant’s   failure to strictly comply with the conditions of this Article 22.1 shall   constitute forfeiture of the rights granted herein.”
  
	
  
 
  	
  
 
  
	
  
H.)
  	
  
Tenant represents and warrants that its has neither   engaged nor commissioned any party to represent its interest in regards to   this First Amendment to Lease except USI Real Estate Brokerage Inc. (“USI”)   and Concourse Group, Inc. (“Concourse”), which shall be paid by Landlord in   accordance with a separate agreement. Hence, Tenant hereby indemnifies   Landlord from and against any and all claims by other third parties for   brokerage fees or commissions.
  
	
   
  	
  
 
  
	
  
I.)
  	
  
All representations and warranties of Landlord made   with respect to the Lease shall be deemed to apply to this First Amendment to   Lease.
  
	
  
 
  	
  
 
  
	
  
J.)
  	
  
All capitalized terms, not otherwise defined, shall   have the same meaning as provided in the Lease.
  

	
  
K)
  	
  
Miscellaneous Provisions Applicable to this First   Amendment to Lease.
  

          (1)          This First Amendment to Lease will be effective immediately upon execution and delivery by the parties.

          (2)          This First Amendment to Lease may be executed in multiple counterparts, each of which shall be deemed an original, but all of which, together, shall constitute but one and the same instrument.

          (3)          This First Amendment to Lease shall be governed by the law of the State of Alabama, without reference to its choice of law rules.

          (4)          This First Amendment to Lease supersedes any prior agreements, negotiations and communications, oral or written, with respect to this subject matter and contains the entire agreement between, and the final expression of, Buyer and Seller with respect to the subject matter hereof. No subsequent agreement, representation, or promise made by either party hereto, or by or to an employee, officer, agent or representative of either party hereto shall be of any effect unless it is in writing and executed by the party to be bound thereby.

L)      Status of Agreement.

          As amended by this First Amendment to Lease, the Lease continues in full force and effect in accordance with its terms. On and after the date of this First Amendment to Lease, the Lease shall be deemed amended by this First Amendment to Lease and all references in the Agreement to “this Agreement” “this Lease” “herein” “hereof” and the like shall be deemed to be references to the Agreement as amended by this First Amendment to Lease.

     IN WITNESS WHEREOF, the
     parties hereto have set their hands and signatures this
     7th day of November, 2005.

	
  
 
  	
  
 
  	
  
LANDLORD:VERILINK CORPORATION,
  
	 	 	 	         a Delaware corporation
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
BY:
  	
  
/s/ Timothy R. Anderson
  
	
  

  	
  
 
  	
  
 
  	
  

  
	
  
Witness
  	
  
 
  	
  
TITLE:
  	
  
CFO
  
	
  
 
  	
  
 
  	
  
DATE:
  	
  
November 7, 2005
  
	
   
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
TENANT:
  	
  
THE BOEING COMPANY,
  
	
  
 
  	
  
 
  	
  
 
  	
  
a Delaware corporation
  
	
  
 
  	
  
 
  	
  
 
  	
  
 
  	
  
 
  
	
  
 
  	
  
 
  	
  
BY:
  	
  
/s/ Marc A. Poulin
  
	
  

  	
   
  	
   
  	
  

  
	
  Witness
  	
   
  	
  TITLE:
  	
  Authorized Signatory
  
	
   
  	
   
  	
  DATE:
  	
  November 4, 2005

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