Document:

Exhibit 10.5

 

WATTS WATER TECHNOLOGIES, INC.

EXECUTIVE INCENTIVE BONUS PLAN

 

Amended and Restated as of January 1, 2016

 

I.                                        ESTABLISHMENT AND PURPOSE

 

The Watts Water Technologies, Inc. Executive Incentive Bonus Plan (the “Plan”) is hereby adopted by Watts Water Technologies, Inc. (the “Company”) effective January 1, 2014.    The purpose of the Plan is to (i) attract and retain highly qualified individuals; (ii) establish performance goals based on objective criteria; (iii) underscore the importance of achieving business objectives for the short and long term; and (iv) include in such individual’s compensation package an annual incentive component which is tied directly to the achievement of those objectives.  The Plan is designed to ensure that the bonuses paid hereunder to Covered Employees (as defined below) are deductible without limit under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”), and the regulations and interpretations hereunder.

 

II.                                   EFFECTIVE DATE; TERM

 

A.                                    The Plan will be effective as of January 1, 2014, subject to approval of the Plan by the stockholders of the Company.  Once effective, the Plan shall remain in effect until such time as it shall be terminated by the Committee (as defined below) or the Plan is not reapproved by stockholders as provided in Section X.  The Committee may terminate the Plan at any time; provided, however that except in the event of a Change in Control, the Committee may not terminate the Plan during any performance period without payment of a pro rata portion of any bonus based on the period of time elapsed during the performance period and a determination as to satisfaction of pro rata Performance Goals for such period. For this purpose, a “Change in Control” shall mean (i) the dissolution or liquidation of the Company, (ii) the sale of all or substantially all of the assets of the Company on a consolidated basis to an unrelated person or entity, (iii) a merger, reorganization or consolidation in which the outstanding shares of stock of the Company are converted into or exchanged for a different kind of securities of the successor entity and the holders of the Company’s outstanding voting power immediately prior to such transaction do not own a majority of the outstanding voting power of the successor entity immediately upon completion of such transaction, or (iv) the sale of all of the stock of the Company to an unrelated person or entity.

 

III.                              ADMINISTRATION

 

A.                                    Committee.  The Plan shall be administered by the Compensation Committee of the Board of Directors of the Company (the “Committee”). The Committee shall consist at least two directors, each of whom shall qualify as “outside directors” as defined under Section 162(m) of the Code and related Treasury regulations.

 

B.                                    Authority.  The Committee shall have full power to construe and interpret the Plan, establish and amend rules and regulations for its administration, and perform all other acts

 

 

relating to the Plan, including the delegation of administrative responsibilities, that it believes reasonable and proper and in conformity with the purposes of the Plan.  For the avoidance of doubt, the Committee shall exercise any and all rights and duties under the Plan with respect to matters under Section 162(m) of the Code that are required to be determined in the sole and absolute discretion of the Committee.

 

C.                                    Determinations.  Any decision made, or action taken, by the Committee arising out of or in connection with the interpretation and/or administration of the Plan shall be final, conclusive and binding on all persons affected thereby. All powers of the Committee shall be executed in its sole discretion, in the best interest of the Company, not as a fiduciary, and in keeping with the objectives of the Plan and need not be uniform as to similarly situated individuals.

 

IV.                               ELIGIBILITY AND PARTICIPATION

 

Eligibility to participate in the Plan is limited to certain officers of the Company as determined and selected by the Committee (each a “Participant”), but including all individuals who are “covered employees” within the meaning of Code Section 162(m) and the regulations and published guidance thereunder (“Covered Employees”).

 

V.                                    BUSINESS CRITERIA

 

A.                                    Performance Goals.  A Participant may receive a bonus payment under the Plan based upon the attainment of performance objectives which are established by the Committee and relate to one or more of the business criteria listed in Appendix A with respect to the Company, any of its subsidiaries, divisions, business units, segments or regions or any individual (the “Performance Goals”), any of which may be measured either in absolute terms or as compared to any incremental increase or decrease or as compared to results of a peer group or to market performance indicators or indices.

 

B.                                    Adjustments.  At the time of establishment of the Performance Goals and within the time prescribed by, or otherwise in compliance with, Section 162(m) of the Code, the Committee may, in its sole discretion, provide that one or more objectively determinable adjustments shall be made to one or more of the Performance Goals.  Such adjustments may include one or more of the following items relating to:  (i) a change in accounting principle, (ii) financing activities, (iii) expenses for restructuring or productivity initiatives, (iv) other non-operating items, (v) acquisitions or dispositions, (vi) the business operations of an entity acquired by the Company during the performance period, (vii) discontinued operations, (viii) stock dividend, split, combination or exchange of stock, (ix) unusual or extraordinary events, transactions or developments, (x) amortization of intangible assets, (xi) other significant income or expense outside the Company’s core on-going business activities, (xii) other nonrecurring items, (xiii) goodwill or intangible writeoffs, or (xiv) changes in applicable law.  All such adjustments shall be made in compliance with Section 162(m) of the Code.

 

VI.                               BONUS DETERMINATIONS

 

A.                                    Bonus Formulas.  Any bonuses paid to Participants under the Plan shall be based upon objectively determinable bonus formulas that tie such bonuses to one or more performance

 

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objectives relating to the Performance Goals.  The Committee will select the Performance Goals applicable for each performance period.  Performance periods may be periods of one, two or three fiscal years of the Company, as specified by the Committee.  A performance period may be concurrent or consecutive.  Participants need not be employed on the first day of a performance period.  If a Participant becomes eligible to participate in the Plan during a performance period, the Committee shall determine if such Participant shall be eligible to participate in an award for such performance period and whether or not such award may be prorated for such period.

 

B.                                    Timing of Adoption.  Bonus formulas for Participants shall be adopted for each performance period by the Committee no later than the latest time permitted by Section 162(m) of the Code, but no later than 90 days after the commencement of the performance period and while the performance relating to the Performance Goal(s) remain substantially uncertain within the meaning of Section 162(m) of the Code.

 

C.                                    Reduction in Bonuses.  Although the Committee may in its sole discretion reduce a bonus payable to a Participant pursuant to the applicable bonus formula, the Committee shall have no discretion to increase the amount of a Participant’s bonus as determined under the applicable bonus formula.

 

D.                                    Limitations on Bonuses.  The maximum bonus payable to a Participant under the Plan shall not exceed $5,000,000 with respect to any performance period.

 

E.                                     Continued Employment.  The payment of a bonus to a Participant with respect to a performance period shall be conditioned upon the Participant’s employment by the Company on the date on which the bonus is paid; provided, however, that in the discretion of the Committee, (i) full bonuses may be paid to Participants who have terminated employment due to disability or following a Change in Control, or to the designee or estate of a Participant who died during such period and (2) pro rata bonuses may be paid to a Participant whose employment is terminated during the performance period based on actual performance.

 

VII.                          ADDITIONAL CONDITIONS

 

A.                                    Additional Criteria.  Once a bonus formula is established under Section VI based on one or more of the Performance Goals, the Committee may with the consent of the Participant establish (and once established, rescind, waive or amend) additional conditions and terms of payment of awards (including but not limited to the achievement of other financial, strategic or individual goals, which may be objective or subjective) as it deems desirable in carrying out the purposes of the Plan and may take into account such other factors as it deems appropriate in administering any aspect of the Plan.  However, the Committee shall have no authority to increase the amount of an award granted to any Participant or to pay an award under the Plan if the Performance Goal has not been satisfied.

 

B.                                    Compliance with 162(m).  Notwithstanding any other provision of the Plan, any bonus or award granted under this Plan shall be subject to any additional limitations set forth in Section 162(m) of the Code (including any amendment to Section 162(m) of the Code) or any regulations or rulings issued thereunder that are requirements for qualification as performance-

 

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based compensation as described in Section 162(m)(4)(C) of the Code, and the Plan shall be deemed amended to the extent necessary to conform to such requirements.

 

C.                                    Forfeiture and Claw-Back Provisions.  The Committee may provide that any bonuses paid under the Plan shall be subject to the provisions of any claw-back policy implemented by the Company, including, without limitation, any claw-back policy adopted to comply with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations thereunder, to the extent set forth in such claw-back policy.

 

VIII.                     PAYMENT OF AWARDS

 

A.                                    Form of Payment.  All awards shall be paid in (i) cash or (ii) with the consent of the Participant and the Committee, restricted stock units pursuant to the terms of the Company’s Management Stock Purchase Plan, as it may be amended from time to time, or any successor equity incentive plan thereto.

 

B.                                    Certification Required.  No awards shall be paid unless and until the Committee certifies, in writing, that (i) the amounts payable with respect to each award, (ii) no award exceeds the limitations set forth in Section VI and (iii) the amount payable to each Participant does not exceed the amount of the award granted to the Participant at the beginning of the performance period.

 

C.                                    Timing of Payments.  Awards shall be paid as soon as practicable following the end of the performance period, but in no event shall payment be made later than two and one half months following the end of the performance period.

 

IX.                              SPECIAL AWARDS AND OTHER PLANS

 

Nothing contained in the Plan shall prohibit the Company from granting awards or authorizing other compensation to any person under any other plan or authority or limit the authority of the Company to establish other special awards or incentive compensation plans providing for the payment of incentive compensation to employees (including those employees who are eligible to participate in the Plan).

 

X.                                   STOCKHOLDER APPROVAL

 

No awards shall be paid under the Plan unless and until the Company’s stockholders shall have approved the Plan and the Performance Goals as required by Section 162(m) of the Code.  So long as the Plan shall not have been previously terminated by the Company, it shall be resubmitted for approval by the Company’s stockholders in the fifth year after it shall have first been approved by the Company’s stockholders, and every fifth year thereafter.  In addition, the Plan shall be resubmitted to the Company’s stockholders for approval as required by Section 162(m) of the Code if it is amended in any way that changes the material terms of the Plan’s Performance Goals, including by materially modifying the Performance Goals, increasing the maximum bonus payable under the Plan or changing the Plan’s eligibility requirements.

 

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XI.                              AMENDMENT OF THE PLAN

 

The Committee shall have the right to amend the Plan from time to time or to repeal it entirely or to direct the discontinuance of awards either temporarily or permanently; provided, however, that no amendment of the Plan that changes the maximum award payable to any Participant or all Participants in the aggregate, as set forth in Section VI, or materially amends the definition of Performance Goals under Section V, shall be effective before approval by the affirmative vote of a majority of shares voting at a meeting of the shareholders of the Company.

 

XII.                         RIGHTS OF PLAN PARTICIPANTS

 

A.                                    No Right to Continued Employment.  Neither the Plan, nor the adoption or operation of the Plan, nor any documents describing or referring to the Plan (or any part hereof) shall confer upon any Participant any right to continue in the employ of the Company or shall interfere with or restrict in any way the rights of the Company, which are hereby expressly reserved, to discharge any Participant at any time for any reason whatsoever, with or without cause.

 

B.                                    No Right to Company Assets.  No individual to whom an award has been made or any other party shall have any interest in the cash or any other asset of the Company prior to such amount being paid.

 

C.                                    Awards Not Transferrable.  No right or interest of any Participant shall be assignable or transferable, or subject to any claims of any creditor or subject to any lien.

 

D.                                    No Right to Continued Participation.  In no event shall the Company be obligated to pay to any Participant an award for any period by reason of the Company’s payment of an award to such Participant in any other period, or by reason of the Company’s payment of an award to any other Participant or Participants in such period or in any other period.  Nothing contained in this Plan shall confer upon any person any claim or right to any payments hereunder.  Such payments shall be made at the sole discretion of the Committee.

 

E.                                     Forfeiture and Claw-Back Provisions.  The Committee may provide that any bonuses paid under the Plan shall be subject to the provisions of any claw-back policy implemented by the Company, including, without limitation, any claw-back policy adopted to comply with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations thereunder, to the extent set forth in such claw-back policy.

 

XIII.                    SECTION 409A

 

Awards under this Plan shall either be exempt from or be designed to comply with Section 409A of the Code.  Notwithstanding anything to the contrary in the Plan or any award, if and to the extent the Committee shall determine that the terms of any award may result in the failure of such award to be exempt from or comply with the requirements of Section 409A of the Code, or any applicable regulations or guidance promulgated by the Secretary of the Treasury in connection therewith, the Committee shall have authority to take such action to amend, modify, cancel or terminate the Plan or any award as it deems necessary or advisable, including without limitation:

 

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1.                                      amendment or modification of the Plan or any award to conform the Plan or such award to the requirements of Section 409A of the Code or any regulations or other guidance thereunder (including, without limitation, any amendment or modification of the terms of any award regarding vesting, exercise, or the timing or form of payment);

 

2.                                      cancellation or termination of any unvested award, or portion thereof, without any payment to the Participant holding such award.

 

Any such amendment, modification, cancellation, or termination of the Plan or any award may adversely affect the rights of an Participant with respect to such award without the Participant’s consent.

 

XIV.                     MISCELLANEOUS

 

A.                                    Withholding.  The Company shall deduct all federal, state and local taxes required by law or Company policy from any award paid hereunder.

 

B.                                    Unfunded Plan.  The Plan shall be unfunded and is not intended to be subject to the Employee Retirement Income Security Act of 1974, as amended.  Amounts payable under the Plan are not and will not be transferred into a trust or otherwise set aside.  The Company shall not be required to establish any special or separate fund or to make any other segregation of assets to assure the payment of any award under the Plan.  Any accounts under the Plan are for bookkeeping purposes only and do not represent a claim against the specific assets of the Company.

 

C.                                    Severability.  Any provision of the Plan that is prohibited or unenforceable shall be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of the Plan.

 

D.                                    Governing Law.  The Plan and the rights and obligations of the parties to the Plan shall be governed by, and construed and interpreted in accordance with, the law of the State of Delaware (without regard to principles of conflicts of law).

 

*  *  *  *  *

 

The Plan was duly authorized, approved and adopted by the Board of Directors of the Company on February 19, 2013, and was duly approved by the stockholders of the Company on May 15, 2013.

 

The Plan was amended and restated by the Committee on February 10, 2016.

 

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APPENDIX A

 

·                  earnings (either before or after one or more of the following:  (i) interest, (ii) taxes, (iii) depreciation and (iv) amortization)

 

·                  economic value-added (as determined by the Committee)

 

·                  sales or revenue

 

·                  net income (either before or after taxes)

 

·                  cash flow (including, but not limited to, operating cash flow and free cash flow)

 

·                  return on capital

 

·                  return on invested capital

 

·                  return on stockholders’ equity

 

·                  return on assets

 

·                  stockholder return

 

·                  return on sales

 

·                  gross or net profit

 

·                  productivity

 

·                  expenses

 

·                  operating margin

 

·                  operating efficiency

 

·                  customer satisfaction

 

·                  working capital

 

·                  earnings per share

 

·                  price per share of class A common stock

 

·                  market share

 

·                  costs

 

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·                  cash flow conversion rate

 

·                  improvement of financial ratings

 

·                  gross operating profit

 

·                  capital deployment

 

·                  implementation or completion of critical projects

 

·                  funds from operations

 

·                  achievement of balance sheet of income statement objectives

 

·                  organizational or succession planning

 

·                  sales growth (organic and/or inorganic)

 

·                  improvements in capital structure

 

·                  productivity ratios

 

·                  operating efficiency

 

·                  enterprise value

 

·                  safety record

 

·                  completion of acquisitions or business expansions

 

·                  completion of dispositions of assets or business units

 

·                  working capital percentage to sales

 

·                  quality record

 

·                  on-time delivery

 

·                  inventory value

 

·                  inventory turns

 

8Exhibit

Exhibit 10.53

SUBLEASE AGREEMENT

THIS SUBLEASE AGREEMENT (this “Sublease”) is made and entered into this 15th day of November, 2013 by and between HEWITT ASSOCIATES LLC, an Illinois limited liability company (“Sublandlord”), and ZEBRA TECHNOLOGIES CORPORATION, a Delaware corporation (“Subtenant”).

WITNESSETH:

A.Pursuant to the Prime Lease (hereinafter defined), Prime Landlord (hereinafter defined) has leased to Sublandlord the Sublease Premises (hereinafter defined); and

B.Sublandlord desires to sublease to Subtenant, and Subtenant desires to sublease from Sublandlord, the Sublease Premises, subject to the terms and conditions of the Prime Lease and the terms and conditions hereinafter set forth.

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Sublandlord and Subtenant hereby agree as follows:

1.Definitions.  For purposes of this Sublease, the following terms shall have the meanings indicated:

Additional Rent.  As defined in Section 5(d) hereof.

Base Rent.  As defined in Section 5(a) hereof.

Building.  The improvements commonly known as Three Overlook Point, Lincolnshire Corporate Center, Lincolnshire, Illinois (and in accordance with how “Building” is defined in the Prime Lease). The Building shall be deemed to include 290,143 square feet of rentable area.

Sublease Premises.  The portion of the Premises (as defined in the Prime Lease) consisting of the lower level, 1st, 2nd, 3rd and 4th floors, as depicted in Exhibit C. The Sublease Premises shall be deemed to include 204,676 square feet of net rentable area.

Subtenant’s Proportionate Share.  79.2% (the percentage obtained by dividing the Rentable Area of the Sublease Premises by the Rentable Area of the Building).

Prime Landlord.  Northwestern Mutual Life Insurance Company.

Prime Lease.  That certain Office Lease dated December 1, 1989, as amended by that certain First Amendment to Lease dated September 28, 2001, as amended by that certain Second Amendment to Lease of even date herewith, by and between Prime Landlord’s predecessor in interest, as “Landlord” thereunder, and Sublandlord, as “Tenant” thereunder, with respect to the Premises, a copy of which is attached hereto as Exhibit A.

Zebra Lease.  That certain Office Lease dated November 15, 2013, by and between Prime Landlord and Tenant, pursuant to which Subtenant shall lease the Premises for a term commencing on the day following the end of the term of this Sublease, a copy of which is attached hereto as Exhibit B.

All other capitalized terms used but not defined in this Sublease shall have the same meaning as those defined in the Prime Lease.

2.Demise.  Sublandlord hereby leases and demises to Subtenant, and Subtenant hereby leases and hires from Sublandlord, the Sublease Premises for the Term (as hereinafter defined) and on the terms and conditions hereinafter set forth.

3.Term.  Subject to receipt of Prime Landlord’s written consent pursuant to Section 8(g) hereof, the term of this Sublease (the “Term”) shall commence on August 1, 2014 (the “Commencement Date”).  The Term shall expire on February 28, 2017 (the “Termination Date”), unless earlier terminated in accordance with the terms hereof.

4.Condition of Sublease Premises.

(a)Commencement Date.  On the Commencement Date, Sublandlord shall deliver, and Subtenant shall accept possession of, the Sublease Premises in its “as is” condition. Subtenant acknowledges that Sublandlord makes no representation or warranty as to the condition, safety, repair or habitability of the Sublease Premises, other than as may be expressly set forth herein, and shall be under no obligation to make, or pay for, any repair, replacement, renovation or improvement to the Sublease Premises prior to or during the Term.  Subtenant taking possession of the Sublease Premises shall be conclusive evidence that Subtenant accepts the Sublease Premises as suitable for the purposes for which they are leased and that Subtenant waives any defects in the Sublease Premises and the Building. 

(b)Early Occupancy.  Subject to the terms and conditions set forth in this Sublease, upon the full execution and delivery of this Sublease, and the receipt the Prime Landlord’s consent pursuant to Section 8(g) hereof, Sublandlord shall permit Subtenant and its consultants and contractors to enter the Building and the Sublease Premises (the “Pre-Occupancy Period”) for the purpose of renovations, installation of additional furniture and fixtures, installation of IT and Telecom equipment and anything further required to prepare the Sublease Premises for Subtenant’s occupancy, including without limitation any required occupancy permit, all in accordance with the terms and conditions of this Sublease.  All of the terms and provisions of this Sublease shall apply to Subtenant’s use and occupancy of the Sublease Premises during the Pre-Occupancy Period, except Subtenant shall not be required to pay any Base Rent or Additional Rent in connection with its entry into the Sublease Premises during the Pre-Occupancy Period.

(c)Initial Improvements.  During the Pre-Occupancy Period, Subtenant shall have the right, subject to Sublandlord’s prior review and approval, to hire a general contractor of Subtenant’s choosing to perform initial improvements to the Sublease Premises (the “Initial Improvements”), which shall include the demolition and build-out of the entire Sublease Premises to Subtenant’s specifications.  Sublandlord shall cooperate with Subtenant in obtaining Prime Landlord’s consent to the Initial Improvements, provided that any Prime Landlord fee or charge related to Prime Landlord’s consent shall be at Subtenant’s sole cost and expense.  Sublandlord shall not charge Subtenant (i) any oversight fees or supervisory fees, or (ii) parking, hoisting or freight elevator charges, for the construction of the Initial Improvements except to the same extent charged to Sublandlord by the Prime Landlord.  In any instance where Sublandlord’s consent or approval is required with respect to the Initial Improvements, that consent or approval shall be deemed given if Prime Landlord has given its consent or approval.

5.Rent.

(a)Base Rent Amount.  Commencing on the Commencement Date, Subtenant shall pay minimum annual rent for the Sublease Premises in the amount of $0.00 per rentable square foot (such amount being “Base Rent” with the annual amounts for the designated 12 month time periods below being the “Annual Base Rent”, in equal monthly installments (“Monthly Base Rent” during each calendar month during the Term.

(b)Base Rent Payment.  Monthly Base Rent shall be payable to Sublandlord at such place or to such agent as Sublandlord may from time to time designate in writing, by good check, in advance, the first such payment due and payable upon execution hereof by Subtenant and each monthly payment thereafter due and payable on the first day of each calendar month thereafter during the Term, without previous notice or demand therefor, and without deduction, counterclaim or set-off.

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(c)Expenses and Taxes.  Subtenant acknowledges that, pursuant to the terms of the Prime Lease, Sublandlord, as “Tenant” thereunder, is obligated to pay Prime Landlord, as “Landlord” thereunder, among other things, Expenses and Taxes (as such terms are defined in the Prime Lease).  Subtenant agrees that, in addition to the Base Rent and any other payments or amounts due under this Sublease, commencing as of the Commencement Date, Subtenant shall pay to Sublandlord Subtenant’s Proportionate Share of Expenses and Taxes incurred by Sublandlord during the Term.  Subtenant shall pay Subtenant’s Proportionate Share of Expenses and Taxes on or prior to the date that Sublandlord is required to pay the corresponding payments of Expenses and Taxes, or installments thereof, pursuant to the terms of the Prime Lease (including without limitation the monthly installments of the estimated amounts thereof and the annual reconciliation and retroactive charges thereof due pursuant to the Prime Lease during the Term).  The amount of Expenses and Taxes shall be as charged by Prime Landlord pursuant to the terms and provisions of the Prime Lease, including without limitation any applicable gross-up provisions.

(d)Additional Rent.  Except for the Monthly Base Rent, any sums required to be paid by Subtenant under the terms of this Sublease and any charges or expenses incurred by Sublandlord on behalf of Subtenant under this Sublease, including without limitation pursuant to Section 5(c) of this Sublease, shall constitute additional rent (“Additional Rent”), and Sublandlord shall have the same rights and remedies for the non-payment thereof as are available to Sublandlord for the nonpayment of Monthly Base Rent.  Base Rent and Additional Rent are collectively known as “Rent.”  Subtenant’s obligation to pay Rent shall be an independent covenant of every other covenant or obligation hereunder.  Rent shall be due as specified within this Sublease, and if not otherwise specified in this Sublease, then it shall be due upon demand from Sublandlord,

(e)Personal Property Tax.  If applicable, Subtenant shall directly pay the taxing authority any tax levied against the personal property or trade fixtures of Subtenant in or about the Sublease Premises.  If Subtenant fails to pay before delinquency, then such amounts may be paid on behalf of Subtenant and the amount paid shall constitute Additional Rent due Sublandlord.

6.Alterations.  Subtenant shall not make or permit to be made, any improvements. additions, or alterations, painting, carpeting or decorations, structural or otherwise, in or to the Sublease Premises or the Building without (i) obtaining the prior written consent of Sublandlord, which consent shall not be unreasonably withheld, conditioned or delayed (provided that no such consent shall be required for minor alterations that are not structural in nature, including painting, carpeting or decorations), (ii) obtaining the prior written consent of Prime Landlord, such consent to be granted or withheld by Prime Landlord in accordance with the terms of the Prime Lease, and (iii) complying with all the terms and conditions of the Prime Lease related thereto, including without limitation payment of its contractors and obtaining final lien waivers from all contractors.  Subtenant shall promptly provide Sublandlord all municipal approvals and any documentation approved by Prime Landlord related to any such improvements, additions or alterations.  Additionally, in connection with the undertaking of any such work by Subtenant in the Sublease Premises, (y) Subtenant’s contractors shall comply with any and all rules and regulations with respect thereto promulgated by Sublandlord or Prime Landlord, and (z) Subtenant shall be responsible for any related payments to the Prime Landlord required under the Prime Lease for such improvements, additions or alterations. Except as may be prohibited by law, Subtenant shall indemnify Sublandlord and hold it harmless from any injury to the Sublease Premises or the Building or loss of life or injury to persons or property in or around the Sublease Premises or the Building resulting from such early occupancy by Subtenant and its contractors.

In any instance where Sublandlord’s consent or approval is required with respect to Alterations, that consent or approval shall be deemed given if the Prime Landlord has given its consent or approval.

7.Assignment and Sub-subletting.  Subtenant shall not, without the prior written consent of Sublandlord, which Sublandlord consent shall not be unreasonably withheld, conditioned or delayed, and Prime Landlord, which consent may be granted or withheld in accordance with the terms of the Prime Lease: (i) assign this Sublease or any of its rights hereunder; (ii) further sublet the Sublease Premises or any part thereof to any other person or entity; (ii) permit the use of the Sublease Premises by any person or entity other than Subtenant, or its employees and agents approved in advance by Sublandlord at Sublandlord’s sole discretion; (iv) permit the assignment or other transfer of this Sublease or any of 

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Subtenant’s rights hereunder by operation of law, or (v) violate the provisions of Section 13(a) of the Prime Lease.  Neither the consent by Sublandlord or Prime Landlord to any assignment, transfer or sub-subletting, nor the acceptance or collection of rent from any assignee, transferee or sub-subtenant, shall be construed as a release of Subtenant from liability for each and every term or obligation of this Sublease.  No consent by Sublandlord or Prime Landlord to any assignment, transfer or sub-subletting in any one instance shall constitute a waiver of the necessity for such consent in any subsequent instance.  Any attempted assignment or sub-subletting of the Sublease Premises by Subtenant in violation of the terms and provisions of this Section 7 shall be void and of no force and effect.  In the event that the consideration received by Subtenant for any sublease or assignment is in excess of the Base Rent or Additional Rent due under Section 5(c) of this Sublease, then Sublandlord and Subtenant shall share the excess amounts received by Subtenant (50% to Sublandlord and 50% to Subtenant following the reimbursement by Subtenant of all expenses incurred by Subtenant in connection with such assignment or subletting), and otherwise according to the calculation set forth in Section 13(f) of the Prime Lease (but based upon the Base Rent and Additional Rent of this Sublease).

Notwithstanding anything contained in this Section 7 to the contrary, Subtenant may sublease all or any portion of the Premises, or assign this Lease (a “Permitted Transfer”) to the following types of entities (a “Permitted Transferee”) without the written consent of Landlord:
(i)    an Affiliate of Subtenant;
(ii)    any corporation, limited partnership, limited liability partnership, limited liability company or other business entity in which or with which Subtenant, or its corporate successors or assigns, is merged or consolidated, in accordance with applicable statutory provisions governing merger and consolidation of business entities, so long as:
(1) Subtenant’s obligations hereunder are assumed, by operation of law (reasonably documented by Subtenant to Sublandlord) or by written assumption, by the entity surviving such merger or created by such consolidation; and
(2) either:
(i) the Tangible Net Worth of the surviving or created entity is not less than the Tangible Net Worth of Subtenant immediately preceding such transaction; or
(ii) immediately following such Transfer Subtenant is deemed to Meet Minimum Rating (as defined below); or
(iii)    any corporation, limited partnership, limited liability partnership, limited liability company or other business entity acquiring all or substantially all of Subtenant’s equity or assets, so long as:
(1) Subtenant’s obligations hereunder are assumed (which assumption shall be reasonably documented by Subtenant to Sublandlord) by the entity acquiring such equity or assets; and
(2) either:
(i) the Tangible Net Worth of the surviving or created entity is not less than the Tangible Net Worth of Subtenant immediately preceding such transaction; or
(ii) immediately following such Transfer Subtenant is deemed to Meet Minimum Rating (as defined below).
Subtenant shall promptly notify Sublandlord of any such Permitted Transfer.  Subtenant shall remain liable for the performance of all of the obligations of Subtenant hereunder, or if Subtenant no longer exists because of a merger, consolidation, or acquisition, the surviving or acquiring entity shall expressly assume, by operation of law (reasonably documented by Subtenant to Sublandlord) or by written assumption, the obligations of Subtenant hereunder.  Additionally, the Permitted Transferee shall comply with all of the terms and conditions of this Lease, including the permitted uses under Section 3 of this Lease, and the use of the Premises by the Permitted Transferee may not violate any other agreements affecting the Premises, the Land or Building, Landlord, or other tenants of the Building.  No later than 30 days after the effective date of any Permitted Transfer, Subtenant agrees to furnish Sublandlord with (a) copies of the instrument effecting any of the foregoing Permitted Transfers, (b) documentation establishing Subtenant’s satisfaction of the requirements set forth above applicable to any such Permitted Transfer, and (c) evidence of insurance as required under this Lease with respect to the Permitted Transferee.  The occurrence of a Permitted Transfer shall not waive Sublandlord’s rights as to any subsequent subleases of all or any portion of the Premises or assignments of this Sublease.  “Affiliate” means any person or entity which, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the party in question.  “Tangible Net Worth” means the excess of total assets over total liabilities, in each case as determined in accordance with generally accepted accounting principles consistently applied (“GAAP”), excluding, however, from the determination of total assets all assets which 

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would be classified as intangible assets under generally accepted accounting principles, including goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises.  Any subsequent sublease or assignment by a Permitted Transferee shall be subject to the terms of this Section 7.  “Affiliate” means any person or entity which, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with the party in question.
For purposes hereof, Subtenant will be deemed to “Meet Minimum Rating” at any time if, at such time, any one of the following exists: (i) Subtenant’s long-term debt is rated by Standard & Poor’s as BBB or better (with no “-“); and such rating is generally available; or (ii) Subtenant’s long-term debt is rated by Moody’s as Baa2 or better, and such rating is generally available; or (iii) so long as Hewitt Associates LLC or its successor or affiliate is the Sublandlord, Subtenant’s relative financial strength as determined by Sublandlord in Sublandlor’s sole discretion, in accordance with Sublandlord’s internal proprietary standards is at least BBB (“Subtenant’s HA Rating”).  If Subtenant does not Meet Minimum Rating based on Subtenant’s HA Rating, Sublandlord will, if Subtenant so requests, meet with Subtenant to explain, review and discuss the determination of Subtenant’s HA Rating.

8.Prime Lease.

(a)Incorporation of Prime Lease.  Sublandlord’s rights in and to the Sublease Premises are governed by the Prime Lease.  This Sublease shall be subject and subordinate in all respects to the Prime Lease, and all of the terms, covenants and conditions of the Prime Lease shall be, except as otherwise expressly provided in this Sublease, incorporated by reference into this Sublease as if completely set forth herein.  Such incorporated terms, conditions, covenants and obligations of the Prime Lease are hereby incorporated by reference herein as if Sublandlord were the “Landlord” thereunder and Subtenant were the “Tenant” thereunder, provided that the Subtenant’s obligation for Base Rent, Expenses and Taxes shall be as provided in Section 5 of this Sublease.  Subtenant hereby accepts this Sublease and the Sublease Premises and hereby agrees to perform each of the terms, conditions, covenants and obligations of the Prime Lease incorporated in this Sublease, which are binding on the “Tenant” thereunder with respect to the Sublease Premises during the Term.  If Subtenant breaches any term, covenant or condition of this Sublease, Sublandlord shall have all the rights and remedies against Subtenant as would be available to Prime Landlord under the Prime Lease.  Subtenant shall promptly furnish Sublandlord with copies of all notices relating to the Sublease Premises, which Subtenant shall receive from Prime Landlord.  Notwithstanding the foregoing, Subtenant expressly agrees and acknowledges that Sublandlord shall not be obligated to perform, and shall not be liable for the performance by Prime Landlord of any of the covenants and obligations of Prime Landlord under the Prime Lease or as incorporated into this Sublease and that Subtenant shall have no claim against Sublandlord by reason of any default by Prime Landlord In performing such covenants and obligations.

(b)Subtenant Covenant.  Subtenant shall not cause or permit any act which would cause Sublandlord to be in default of the Prime Lease or would give Prime Landlord the right to terminate the Prime Lease prior to the stated expiration of the term thereof.  Except as may be prohibited by law, Subtenant shall indemnify and hold harmless Sublandlord from and against any loss, liability, claim, cost or expense (including reasonable attorneys’ fees) incurred by Sublandlord as a result of any default under the Prime Lease or termination or attempted termination of the Prime Lease resulting from any such act or omission by Subtenant.

(c)Sublandlord Covenant.  Except as may be prohibited by law, Sublandlord shall indemnify and hold harmless Subtenant from and against any loss, liability, claim, cost or expense (including reasonable attorneys’ fees) incurred by Subtenant as a result of any default under the Prime Lease resulting from any such act or omission by Sublandlord.

(d)Termination.  Subject to Section 8(b) of this Sublease, if at any time prior to the expiration of the Term, the Prime Lease shall terminate or be terminated for any reason, or Sublandlord’s right to possession shall terminate without termination of the Prime Lease, this Sublease shall simultaneously terminate.

(e)Rights to the Sublease Premises.  Notwithstanding any provision contained herein to the contrary, during the Term, Subtenant shall have no greater rights in and to the Sublease Premises than Sublandlord shall have, from time to time, in and to the Sublease Premises under the Prime Lease.  Subtenant shall not have the 

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right to exercise any options to renew, extend, expand, negotiate or terminate the Prime Lease to the extent such options are exercisable by Sublandlord.

(f)Services and Utilities; Prime Landlord Obligations.  Subtenant acknowledges that all utilities and services to the Sublease Premises, including without limitation water, heating, air-conditioning, and janitorial, shall be provided by the Prime Landlord (or in the case of certain utilities, as provided in the Prime Lease) in accordance with, and subject to, the terms of the Prime Lease; provided, however, that in the event that the Prime Lease states that Sublandlord, as “Tenant” thereunder, is to contract for certain utilities directly with a utility provider, then Subtenant shall be deemed to have assumed that obligation as of the commencement of the Pre-Occupancy Period.  Subtenant waives all claims against Sublandlord, and, except as may be prohibited by law, shall indemnify and hold Sublandlord harmless for any damage to any property or injury to any person caused by any disruption of any utility or other services provided by the Prime Landlord.  Should Prime Landlord furnish additional services to Subtenant in addition to those normal amounts provided under the Prime Lease, Subtenant shall be responsible for the payment thereof to Prime Landlord.  Additionally, any utilities directly paid by Sublandlord for any portion of the Sublease Premises shall be paid, at Sublandlord’s option, either by Subtenant directly to the utility company providing the utility in question, directly to Prime Landlord, or as reimbursement to Sublandlord.

(g)Surrender.  Unless otherwise directed by Sublandlord, at or upon an earlier termination of the Term, Subtenant shall return the Sublease Premises and all equipment and fixtures of the Prime Landlord in the condition required by the Prime Lease for the surrender of such items at the end of the term of the Prime Lease.

(h)Prime Landlord Consent.  This Sublease shall not be effective unless and until consented to by Prime Landlord in accordance with the Prime Lease and this Section 8(g).  Subtenant agrees to promptly provide to Sublandlord any and all information regarding Subtenant, including without limitation financial statements, that Prime Landlord may request and Subtenant shall otherwise cooperate to satisfy any requirement Prime Landlord may impose as a condition to its consent to this Sublease.  This Sublease and the obligations of the parties hereunder are expressly conditioned upon Sublandlord obtaining the written consent of the Prime Landlord for this Sublease (to the extent required by the Prime Lease) (the “Sublease Consent”).  If the Sublease Consent is not given by Prime Landlord, or the Zebra Lease is not executed by Prime Landlord and Subtenant, within 60 days after the execution and delivery of this Sublease and delivery of all documents and information to the Prime Landlord as required by Section 13 of the Prime Lease, either Subtenant or Sublandlord shall have the right to terminate this Sublease by giving written notice thereof to the other at any time thereafter, but prior to the time such Subtenant.

(i)Sublandlord’s Default of the Prime Lease.  Sublandlord hereby agrees and acknowledges that any default by Sublandlord in its obligations under the Prime Lease beyond any applicable cure period shall also be deemed a default under this Sublease, for which Subtenant shall have all remedies for a default of this Sublease, including, but not limited to, any and all remedies available to Subtenant under law and at equity.  In addition, and notwithstanding anything to the contrary herein, Sublandlord agrees that if it receives any notice of default from Prime Landlord under the Prime Lease, such notice also shall serve as notice of default of Sublandlord’s obligations under this Sublease (subject to any cure provisions under the Prime Lease), and no additional notice need be sent by Subtenant to Sublandlord.  Sublandlord shall immediately forward a copy of any default notice or any notice from the Prime Landlord indicating an intention to terminate the Prime Lease sent to Sublandlord by Prime Landlord under the Prime Lease, as soon as Sublandlord becomes aware thereof.  Sublandlord shall provide Subtenant with written notices of when, if at all, a cure of such default under the Prime Lease was commenced and completed.

9.Restrictions on Use.  Subtenant shall use the Sublease Premises solely in accordance with the terms and provisions of Section 3 of the Prime Lease and for no other uses.  Subtenant shall not (i) commit waste on or to the Sublease Premises or the Building, (ii) use the Sublease Premises for any unlawful purpose or in violation of any municipal laws or regulations, insurance requirements or any certificate(s) of occupancy, or (iii) suffer any dangerous article to be brought on the Sublease Premises.  

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10.Sublandlord Right to Cure.  If Subtenant shall breach any term, covenant or condition of this Sublease with regard to the making of any payment or the doing of any act that results or may result (at such time or at a later date if the same is allowed to continue without being cured) in the occurrence of a default or breach under the Prime Lease, then in addition to any rights and remedies available to Sublandlord hereunder or under the Prime Lease, Sublandlord shall have the right to make such payment or to do such act to endeavor to cure such default.  Any payments made, and any costs or reasonable expenses (including reasonable attorneys’ fees) incurred, by Sublandlord in connection with its exercise of its rights under this Section 10, shall constitute Additional Rent and shall bear interest at the rate of interest described in Section 27(i) of the Prime Lease (except that the referenced bank shall be JP Morgan Chase and its successors instead of the First National Bank of Chicago).  Subtenant shall reimburse Sublandlord for the cost incurred by Sublandlord in making such payment or doing such act within ten (10) business days of receipt of a written notice therefor.

11.Indemnification.  In addition to the provisions of the Prime Lease incorporated herein, Subtenant shall, except as may be prohibited by law, indemnify and save Sublandlord, Prime Landlord and their respective agents and employees harmless from and against all liability. claims, suits, judgments, damages, costs and expenses (including reasonable attorneys’ fees) to which any of them may be subject or suffer, arising from or in connection with (i) the use or occupancy of the Sublease Premises, by Subtenant, its agents, contractors, invitees or anyone else for whom Subtenant is responsible, (ii) any negligent act of omission of Subtenant, any default or claimed default on the part of Sublandlord under the Prime Lease which results, directly or indirectly, from the failure of Subtenant to perform any obligation of the “Tenant” under those provisions of the Prime Lease incorporated in this Sublease; (iii) any default by Subtenant in performing any of its covenants under this Sublease; or (iv) any termination or attempted termination of the Prime Lease resulting from any act or omission of Subtenant, its employees or agents.

12.Default of Subtenant.  If (a) Subtenant shall fail to pay any installment of Monthly Base Rent or Additional Rent provided herein when due and said failure shall continue for three (3) days following written notice and demand to pay; (b) Subtenant shall violate or fail to perform any of the other conditions, covenants or agreements herein made by Subtenant and such violation or failure shall continue for a period of twenty (20) days after written notice thereof to Subtenant by Sublandlord, provided, however, that such period of time shall be extended to that period of time necessary to effectuate a cure if Subtenant commences to cure such default within such twenty (20) day period and is diligently attempting to complete such cure; (c) any default under the Prime Lease occurs which results, directly or indirectly, from the failure of Subtenant to perform any obligation of Subtenant under this Sublease, including without limitation any obligation of the “Tenant” under those provisions of the Prime Lease incorporated in this Sublease; (d) any termination of the Prime Lease occurs that results from any act or omission of Subtenant, its employees or agents; (e) any assignment, sublease, encumbrance or other transfer of this Sublease, or any interest therein, by Subtenant, whether voluntarily, by judgment, or other means, except a Permitted Transfer, without the prior written consent of Sublandlord and Prime Landlord (f) Subtenant becomes insolvent or bankrupt or admits in writing its inability to pay its debts as they mature, or makes an assignment for the benefit of creditors, or applies for or consents to the appointment of a trustee or receiver for Subtenant or for the major part of its property; (g) a trustee or receiver is appointed for Subtenant or for the major part of its property and is not discharged within 30 days after such appointment; (h) bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings for relief under any bankruptcy law, or similar law for relief of debtors, are instituted by or against Subtenant, if not dismissed within thirty (30) days, then and in any of such events (each an “Event of Default”), Sublandlord shall have all rights and remedies at law or in equity against Subtenant; and in addition thereto, Sublandlord shall have all rights and remedies against Subtenant for an Event of Default that Prime Landlord has under the Prime Lease for the occurrence of a Default (as defined in the Prime Lease) by Sublandlord as Tenant thereunder. 

If Sublandlord is entitled to possession of the Sublease Premises pursuant to any provision hereof, Sublandlord, without notice to quit or reenter, may reenter and take possession of the Sublease Premises, or any part thereof, and repossess the same as of Sublandlord’s former estate and expel Subtenant and those claiming through or under Subtenant and remove the effects of both or either, by summary proceedings, or by action at law or in equity or by force (if necessary) or otherwise, without being deemed guilty of trespass and without prejudice to any other remedy for default hereunder.

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13.Attorneys’ Fees.  If Sublandlord or Subtenant shall require the services of attorneys after a breach by Subtenant or Sublandlord of any of the terms, covenants or conditions of this Sublease, Subtenant or Sublandlord, as the case may be, shall pay (or reimburse the other party) the reasonable fees of such attorneys (regardless of whether formal legal proceedings have been commenced) and all applicable court costs.

14.Notices.  All payments or notices required or permitted hereunder shall be in writing and (i) hand delivered; (ii) mailed, certified or registered mail, postage prepaid and return receipt requested; or (iii) sent by overnight courier service as follows:

		
	If to Sublandlord:
	c/o Aon Service Corporation 
Attention: Corporate Real Estate 
200 E. Randolph, 6th Floor 
Chicago, Illinois  60601

		
	with a copy to:
	Jones Lang LaSalle 
Attention: Lease Administration 
525 William Penn Place 
3 Mellon Center, 20th floor 
Pittsburgh, Pennsylvania 15259-0001

		
	If to Subtenant
	Prior to Subtenant’s fully occupying the Sublease Premises:

Zebra Technologies Corporation
Attention:  General Counsel
475 Half Day Road, Suite 500
Lincolnshire, IL 60069

Following Subtenant’s fully occupying the 
Sublease Premises, to the Sublease Premises

All payments and notices shall be deemed given on the date the recipient actually receives the same or would have received the same if delivery is refused or otherwise fails despite compliance with this Section.  Either party may, by written notice to the other, designate a new address and/or addresses for such payments and notices.

15.Brokerage.  Sublandlord and Subtenant each represents and warrants to the other that no real estate agent, broker or finder, other than CBRE, Inc., as Sublandlord’s agent, and Jones Lang LaSalle Midwest, LLC, as Subtenant’s agent (together, “Brokers”), has acted for it with respect to this Sublease or the transaction contemplated hereby.  Sublandlord and Subtenant each does hereby indemnify and hold the other harmless from the claim of any persons other than the Brokers claiming by or through it by reason of this Sublease or the transaction contemplated hereby. Sublandlord shall pay Broker’s commissions pursuant to separate agreements. 

16.Signage.  Subject to Prime Landlord’s prior consent, Subtenant, at Subtenant’s sole cost, shall be granted the right to Subtenant’s Proportionate Share of the signage in the Sublease Premises consistent with, and subject to, the Prime Lease.

17.Execution.  The persons executing this Sublease on behalf of Sublandlord and Subtenant, respectively, each represents and warrants that (i) he is duly authorized to execute this Sublease on behalf of such party: and (ii) such party has full power and authority to execute this Sublease and perform its obligations hereunder without the consent of any other person or entity.

18.Construction.  This Sublease (i) embodies the entire integrated agreement of Sublandlord and Subtenant with respect to Subtenant’s lease and occupancy of the Sublease Premises, and supersedes all prior agreements and understandings, whether written or oral; (ii) may be executed in multiple counterparts, each of which shall constitute an original and all of which shall constitute but one and the same agreement; and (iii) shall be governed by and construed 

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in accordance with the laws of the State of Illinois.  If any provision of this Sublease conflicts with a provision of the Prime Lease, the provisions of the Prime Lease shall govern.  Subtenant specifically waives all claims against Sublandlord arising out of any such conflicts.

19.Entry by Sublandlord.  Subtenant shall permit Sublandlord and Prime Landlord or their authorized agent or representative entry into the Sublease Premises upon twenty-four (24) hours prior notice at reasonable times (or at any time in the event of an emergency in which case no prior notice shall be required), in accordance with the provisions of the Prime Lease, for the purpose of entering to make necessary repairs required to be made under the Sublease or the Prime Lease and for other purposes specified in the Prime Lease or pursuant to any other rights under the Prime Lease.

20.Binding Effect.  This Sublease shall be binding upon and inure to the benefit of Sublandlord and Subtenant and their respective successors and permitted assigns.  Sublandlord shall have the right to assign any or all of its rights and powers under this Sublease to Prime Landlord.

21.Holding Over.  If Subtenant retains possession of the Sublease Premises after the expiration of the Term without the written consent of the Prime Landlord, Subtenant (i) shall pay to Sublandlord for each month, or portion thereof, of such holdover period as rent therefor an amount equal to the amount of holdover rent and other charges that Sublandlord is obligated to pay pursuant to Section 10 of the Prime Lease, and (ii) shall, except as may be prohibited by law, indemnify Sublandlord and Prime Landlord for any and all liability, claims or damages incurred by Sublandlord and Prime Landlord as a result thereof.  Sublandlord shall have no obligation to extend the term of the Prime Lease or this Sublease beyond the Termination Date.

22.Insurance.  Subtenant, at its sole expense, shall obtain and keep in force the insurance required to be carried by Sublandlord as Tenant under the Prime Lease.

23.Fire, Casualty or Eminent Domain.  In the event of a fire or other casualty affecting the Building or the Sublease Premises, or of a taking of all or part of the Building or Sublease Premises under the power of eminent domain, in addition to any other applicable provision of this Sublease, Sublandlord shall take all reasonable actions provided for under the Prime Lease necessary to keep the Prime Lease from being terminated and require Prime Landlord to restore the Building, unless Subtenant elects in writing to allow Sublandlord to terminate the Prime Lease.  In such latter event, this Sublease shall automatically terminate without any liability to Sublandlord.  In the event Sublandlord is entitled, under the Prime Lease, to a rent abatement as a result of a fire or other casualty or as a result of a taking under the power of eminent domain, then Subtenant shall be entitled to a corresponding proportionate rent abatement applicable to the Sublease Premises under this Sublease.  All obligations under the Prime Lease imposed on Sublandlord, as “Tenant” thereunder, to repair or restore leasehold improvements, alterations, fixtures, personal property, furniture, or any other portion of the Sublease Premises with respect to a casualty occurring during the Sublease Term, shall be the responsibility of Subtenant.

24.Non-Merger.  Nothing herein shall be construed to merge the interests of Sublandlord and Subtenant, whether by operation of law or otherwise.

25.Time of Essence.  Time is of the essence with respect to all of Subtenant’s obligations under this Sublease.

26.Parking.  Subtenant shall be entitled to use, in accordance with the terms and provisions of the Prime Lease, Subtenant’s Proportionate Share of the Parking Spaces (as defined in the Prime Lease).

27.Prohibited Parties.  Sublandlord and Subtenant represent and warrant that, to their knowledge, they are not acting, directly or indirectly, for or on behalf of any person, group, entity, or nation named by the United States Treasury Department as a Specially Designated National and Blocked Person, or for or on behalf of any person, group, entity, or nation designated in Presidential Executive Order 13224 as a person who commits, threatens to commit, or supports terrorism; and that they are not engaged in this transaction directly or indirectly on behalf of, or facilitating this transaction directly or indirectly on behalf of, any such person, group, entity, or nation.  Except as may be prohibited by law, each party hereby agrees to defend, indemnify, and hold harmless the other party from and against any and all claims, 

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damages, losses, risks, liabilities, and expenses (including reasonable attorneys’ fees and costs) arising from or related to any breach of the foregoing representation and warranty.

28.Right to Expand.  Subtenant shall have the ongoing option to expand the Sublease Premises into any remaining portion of the Premises upon the same terms and conditions as this Sublease including, but not limited to, acceptance of the additional Premises in “as is” condition. Subtenant may exercise this expansion option at any time upon 30 days’ prior written notice (“Zebra Expansion Notice”). Sublandlord shall have no right to sublease any portion of the Premises to any other subtenant without the prior written approval of Subtenant, which shall not be unreasonably withheld or delayed.  Notwithstanding the foregoing, in the event that the Prime Lease is terminated with respect to any portion of the Premises, Subtenant releases Sublandlord from any liability (economic or otherwise) for such portion of the Premises.

29.Execution and Delivery.  This Sublease may be executed in counterparts, all of which shall be deemed a single Sublease.  Delivery of the signed Sublease may be made by electronic delivery of a so-called “pdf” copy or by other electronic means.

(signatures appear on the following page)

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IN WITNESS WHEREOF, the parties hereto have executed this Sublease as of the date, month, and year first above written.

Sublandlord: 

HEWITT ASSOCIATES LLC

By:  /s/ Charles Wooding
Name:  Charles Wooding
Title:  Vice President

Subtenant: 

ZEBRA TECHNOLOGIES CORPORATION

By: /s/ Michael C. Smiley
Name:  Michael C. Smiley
Title:  Chief Financial Officer

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EXHIBIT A

Prime Lease

Intentionally Omitted

EXHIBIT B

Zebra Lease

Intentionally Omitted

EXHIBIT C

Sublease Premises

Drawing Omitted

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