Document:

jnpr123111ex10.58

EXHIBIT 10.58
JUNIPER NETWORKS, INC.
CHANGE OF CONTROL AGREEMENT
This Change of Control Agreement (the “Agreement”) is made and entered into by and between ___________ (the “Employee”) and Juniper Networks, Inc., a Delaware Corporation (the “Company”), effective as of _____________, 2012 (the “Effective Date”).
RECITALS
1.    It is expected that the Company from time to time will consider the possibility of an acquisition by another company or other change of control.  The Board of Directors of the Company (the “Board”) recognizes that such consideration can be a distraction to the Employee and can cause the Employee to consider alternative employment opportunities.  The Board has determined that it is in the best interests of the Company and its stockholders to assure that the Company will have the continued dedication and objectivity of the Employee, notwithstanding the possibility, threat or occurrence of a Change of Control (as defined herein) of the Company.
2.    The Board believes that it is in the best interests of the Company and its stockholders to provide the Employee with an incentive to continue his or her employment and to motivate the Employee to maximize the value of the Company upon a Change of Control for the benefit of its stockholders.
3.    The Board believes that it is imperative to provide the Employee with certain severance benefits upon certain terminations of employment following a Change of Control.  These benefits will provide the Employee with enhanced financial security and incentive and encouragement to remain with the Company notwithstanding the possibility of a Change of Control.
4.    Certain capitalized terms used in the Agreement are defined in Section 6 below.
AGREEMENT
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the parties hereto agree as follows:
1.Term of Agreement.  This Agreement shall terminate upon the later of (i) January 1, 2015 or (ii) if a Change of Control has occurred on or before January 1, 2015 (or if a definitive agreement relating to a Change in Control has been signed by the Company on or before January 1, 2015 and the closing of that transaction occurs on or before March 31, 2015), the date that all of the obligations of the parties hereto with respect to this Agreement have been satisfied.
2.At-Will Employment.  The Company and the Employee acknowledge that the Employee's employment is and shall continue to be at-will, as defined under applicable law, except as may otherwise be specifically provided under the terms of any written formal employment agree-ment or offer letter between the Company and the Employee (an “Employment Agreement”).  If the Employee's employment terminates for any reason, including (without limitation) any termination prior to a Change of Control, the Employee shall not be entitled to any payments, benefits, damages, awards or compensation other than as provided by this Agreement or under his or her Employment Agreement, or as may otherwise be available in accordance with the Company's established employee plans. 
3.Severance Benefits.
(a)Involuntary Termination Other than for Cause or Voluntary Termination for Good Reason Following a Change of Control Period.  If (i) between the date that is four (4) months following a 

Change of Control and the date that is twelve (12) months following a Change of Control the Employee terminates his or her employment with the Company (or any parent or subsidiary of the Company) for “Good Reason” (as defined herein), provided however, that the grounds for Good Reason may arise at anytime within the twelve (12) months following the Change of Control, or (ii) within twelve (12) months following a Change of Control the Company (or any parent or subsidiary of the Company) terminates the Employee's employment for other than “Cause” (as defined herein), and the Employee signs and does not revoke a standard release of claims with the Company (in a form acceptable to the Company and effective no later than March 15 of the year following the year in which the termination occurs) (the “Release”), then the Employee shall receive the following severance from the Company:
(i)Severance Payment.  The Employee shall be entitled to receive a lump-sum severance payment (less applicable withholding taxes) equal to 100% of the Employee's annual base salary (as in effect immediately prior to (A) the Change of Control, or (B) the Employee's termination, whichever is greater) plus 100% of the Employee's target bonus for the fiscal year in which the Change of Control or the Employee's termination occurs, whichever is greater).
(ii)Equity Compensation Acceleration.  One hundred percent (100%) of Employee's then unvested outstanding stock options, stock appreciation rights, restricted stock units and other Company equity compensation awards (the “Equity Compensation Awards”) that vest based on time (such as an option that vests 25% on the first anniversary of grant and 1/48th monthly thereafter) shall immediately vest and became exercisable (and any rights of repurchase by the Company or restriction on sale shall lapse).  With respect to Equity Compensation Awards that vest wholly or in part based on factors other than time, such as performance (whether individual or based on external measures such as Company performance, market share, stock price, etc.), (i) any portion for which the measurement or performance period or performance measures have been completed and the resulting quantities have been determined or calculated, shall immediately vest and become exercisable (and any rights of repurchase by the Company or restriction on sale shall lapse) and (ii) the remaining portions shall immediately vest and become exercisable (and any rights of repurchase by the Company or restriction on sale shall lapse) in an amount equal to the number that would be calculated if the performance measures were achieved at the target level (for example, if the employee were granted 300 three year performance shares, where (a) the amount that can be earned is determined each year based on performance against annual performance targets but the entire amount vests at the end of the three years and (b) at target performance levels the employee could earn 1/3 of the amount each year and (c) the first year had been completed and the performance resulted in a calculation that 85 shares were earned and (d) the employee is terminated prior to the completion of year 2, then the amount that would vest and become immediately exercisable would be 285 shares -- representing the 85 shares calculated for year 1 and the target amount of 100 shares for each of year 2 and year 3); provided however, that if there is no “target” number, then the number that vest shall be 100% of the amounts that could vest with respect to that measurement period. Any Company stock options and stock appreciation rights shall thereafter remain exercisable following the Employee's employment termination for the period prescribed in the respective option and stock appreciation right agreements.
(iii)Continued Employee Benefits.  In lieu of continuation of benefits, Employee shall receive $36,000 (whether or not Employee elects COBRA). 
(b)Timing of Severance Payments.  
(i)Payment Timing.  One half of the severance payment to which Employee is entitled shall be paid by the Company to Employee in cash on the 60th calendar day after Employee's termination of employment, but in no case prior to the effective date of the Release. The other half of the severance payment to which Employee is entitled shall be paid by the Company to Employee in cash not later than six months after Employee's termination of employment, but in no case prior to the effective date of the Release. If the Employee should die before all amounts have been paid, such unpaid amounts shall be paid in a lump-sum payment (less any withholding taxes) to the Employee's designated beneficiary, if living, or otherwise to the personal representative of the Employee's estate.

(ii)Release Effectiveness.  The receipt of any severance pursuant to Section 3(a) will be subject to Employee signing and not revoking the Release and provided that such Release is effective within sixty (60) days following the termination of employment.  No severance pursuant to such Section will be paid or provided until the Release becomes effective.  In the event the termination occurs at a time during the calendar year where it would be possible for the Release to become effective in the calendar year following the calendar year in which the Employee's termination occurs, any severance that would be considered Deferred Compensation Separation Benefits (as defined in Section 3(f)) will be paid on the first payroll date to occur during the calendar year following the calendar year in which such termination occurs, or such later time as required by the payment schedule applicable to each payment or benefit, or Section 3(f)  
(c)Voluntary Resignation; Termination for Cause.  If the Employee's employ-ment with the Company terminates (i) voluntarily by the Employee other than for Good Reason, or (ii) for Cause by the Company, then the Employee shall not be entitled to receive severance or other benefits except for those (if any) as may then be established under the Company's then existing severance and benefits plans and practices or pursuant to other written agreements with the Company.
(d)Termination Outside of Change of Control Period.  In the event the Employee's employment is terminated for any reason, either prior to the occurrence of a Change of Control or after the twelve (12) month period following a Change of Control, or if the Employee terminates for Good Reason within four months after a Change in Control, then the Employee shall be entitled to receive severance and any other benefits only as may then be established under the Company's existing written severance and benefits plans and practices or pursuant to other written agreements with the Company. 
(e)Section 409A.  
(i)Notwithstanding anything to the contrary in this Agreement, if Employee is a “specified employee” within the meaning of Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the final regulations and any guidance promulgated thereunder (“Section 409A”) at the time of Employee's termination (other than due to death) or resignation, then the severance payable to Employee, if any, pursuant to this Agreement, when considered together with any other severance payments or separation benefits that are considered deferred compensation under Section 409A (together, the “Deferred Compensation Separation Benefits”) that are payable within the first six (6) months following Employee's termination of employment, will become payable on the first payroll date that occurs on or after the date six (6) months and one (1) day following the date of Employee's termination of employment.  All subsequent Deferred Compensation Separation Benefits, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit.  Notwithstanding anything herein to the contrary, if Employee dies following his termination but prior to the six (6) month anniversary of his termination, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of Employee's death and all other Deferred Compensation Separation Benefits will be payable in accordance with the payment schedule applicable to each payment or benefit.  Each payment and benefit payable under this Agreement is intended to constitute separate payments for purposes of Section 1.409A-2(b)(2) of the Treasury Regulations.
(ii)Any amount paid under this Agreement that satisfies the requirements of the “short-term deferral” rule set forth in Section 1.409A-1(b)(4) of the Treasury Regulations shall not constitute Deferred Compensation Separation Benefits for purposes of clause (i) above.
(iii)Any amount paid under this Agreement that qualifies as a payment made as a result of an involuntary separation from service pursuant to Section 1.409A-1(b)(9)(iii) of the Treasury Regulations that do not exceed the Section 409A Limit shall not constitute Deferred Compensation Separation Benefits for purposes of clause (i) above.  “Section 409A Limit” will mean the lesser of two (2) times: (i) Employee's annualized compensation based upon the annual rate of pay paid to Employee during the Employee's taxable year preceding the Employee's taxable year of Employee's termination of employment as determined under, and with such adjustments as are set forth in, Treasury Regulation 1.409A-1(b)(9)(iii)(A)(1) and any Internal Revenue Service guidance issued with respect thereto; or (ii) the maximum amount 

that may be taken into account under a qualified plan pursuant to Section 401(a)(17) of the Code for the year in which Employee's employment is terminated.
(iv)The foregoing provisions are intended to comply with the requirements of Section 409A so that none of the severance payments and benefits to be provided hereunder will be subject to the additional tax imposed under Section 409A, and any ambiguities herein will be interpreted to so comply.  The Company and Employee agree to work together in good faith to consider amendments to this Agreement and to take such reasonable actions which are necessary, appropriate or desirable to avoid imposition of any additional tax or income recognition prior to actual payment to Employee under Section 409A.
4.Conditional Nature of Severance Payments and Benefits.
(a)Noncompete.  Employee acknowledges that the nature of the Company's business is such that if Employee were to become employed by, or substantially involved in, the business of a competitor of the Company during the twelve (12) months following the termination of Employee's employment with the Company, it would be very difficult for Employee not to rely on or use the Company's trade secrets and confidential information.  Thus, to avoid the inevitable disclosure of the Company's trade secrets and confidential information, Employee agrees and acknowledges that Employee's right to receive the severance benefits set forth in Section 3(a) (to the extent Employee is otherwise entitled to such payments) shall be conditioned upon Employee not directly or indirectly engaging in (whether as an employee, consultant, agent, proprietor, principal, partner, stockholder, corporate officer, director or otherwise), nor having any ownership interested in or participating in the financing, operation, management or control of, any person, firm, corporation or business in Competition (as defined herein) with Company.  Notwithstanding the foregoing, Employee may, without violating this Section 4, own, as a passive investment, shares of capital stock of a corporation or other entity that engages in Competition where the number of shares of such corporation's capital stock that are owned by Employee represent less than three percent of the total number of shares of such entity's capital stock outstanding.
(b)Non-Solicitation.  Until the date twelve (12) months after the termination of Employee's employment with the Company for any reason, Employee agrees and acknowledges that Employee's right to receive the severance payments set forth in Section 3(a) (to the extent Employee is otherwise entitled to such payments) shall be conditioned upon Employee neither directly nor indirectly soliciting, inducing, recruiting or encouraging an employee to leave his or her employment either for Employee or for any other entity or person with which or whom Employee has a business relationship.
(c)Understanding of Covenants.  Employee represents that he (i) is familiar with the foregoing covenants not to compete and not to solicit, and (ii) is fully aware of his obligations hereunder, including, without limitation, the reasonableness of the length of time, scope and geographic coverage of these covenants.
(d)Remedy for Breach.  Upon any breach of this section by Employee, all severance payments and benefits pursuant to this Agreement shall immediately cease and any stock options or stock appreciation rights then held by Employee shall immediately terminate and be without further force and effect, and Employee shall return all of the consideration paid by the Company under this Section 3 and remit any shares of Restricted Stock or shares purchased under stock options to the extent vesting accelerated under Section 3 above (or the profits from the sale of such shares if they are or  have been sold).
5.Golden Parachute Excise Tax Best Results.  In the event that the severance and other benefits provided for in this agreement or otherwise payable to Employee (a) constitute “parachute payments” within the meaning of Section 280G of the Internal Revenue Code of 1986, as amended (the “Code”) and (b) would be subject to the excise tax imposed by Section 4999 of the Code, then such benefits shall be either be:
(i)delivered in full, or
(ii)delivered as to such lesser extent which would result in no portion of such severance benefits being subject to excise tax under Section 4999 of the Code,
whichever of the foregoing amounts, taking into account the applicable federal, state and local income and 

employment taxes and the excise tax imposed by Section 4999, results in the receipt by Employee, on an after-tax basis, of the greatest amount of benefits, notwithstanding that all or some portion of such benefits may be taxable under Section 4999 of the Code.  Unless the Company and Employee otherwise agree in writing, any determination required under this Section 5 will be made in writing by a national “Big Four” accounting firm selected by the Company or such other person or entity to which the parties mutually agree (the “Accountants”), whose determination will be conclusive and binding upon Employee and the Company for all purposes.  For purposes of making the calculations required by this Section 5, the Accountants may make reasonable assumptions and approximations concerning applicable taxes and may rely on reasonable, good faith interpretations concerning the application of Sections 280G and 4999 of the Code. The Company and the Employee shall furnish to the Accountants such information and documents as the Accountants may reasonably request in order to make a determination under this Section.  The Company shall bear all costs the Accountants may reasonably incur in connection with any calculations contemplated by this Section 5.  Any reduction in payments and/or benefits required by this Section 5 shall occur in the following order: (1) reduction of cash payments; and (2) reduction of other benefits paid to Employee.  In the event that acceleration of vesting of equity awards is to be reduced, such acceleration of vesting shall be cancelled in the reverse order of the date of grant for Employee's equity awards.
6.Definition of Terms.  The following terms referred to in this Agreement shall have the following meanings:
(a)Cause.  “Cause” shall mean:
(i)an act of personal dishonesty taken by the Employee in connection with his responsibilities as an employee and intended to result in substantial personal enrichment of the Employee; or
(ii)Employee being convicted of, or pleading nolo contendere to a felony; or
(iii)a willful act by the Employee which constitutes gross misconduct and which is injurious to the Company; or
(iv)following delivery to the Employee of a written demand for performance from the Company which describes the basis for the Company's reasonable belief that the Employee has not substantially performed his duties, continued violations by the Employee of the Employee's obligations to the Company which are demonstrably willful and deliberate on the Employee's part.
(b)Change of Control.  “Change of Control” means the occurrence of any of the following:
(i)Any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becomes the “beneficial owner” (as defined in Rule 13d‐3 under said Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting securities; or
(ii)Any action or event occurring within a two‐year period, as a result of which fewer than a majority of the directors are Incumbent Directors.  “Incumbent Directors” shall mean directors who either (A) are directors of the Company as of the date hereof, or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of the Incumbent Directors at the time of such election or nomination (but shall not include an individual whose election or nomination is in connection with an actual or threatened proxy contest relating to the election of directors to the Company); or
(iii)The consummation of a merger or consolidation of the Company with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation; or
(iv)The consummation of the sale, lease or other disposition by the Company of all or substantially all the Company's assets.
(c)Competition. means the development, marketing or sale of networking equipment or 

network security software or products in the United. For the avoidance of doubt, Competition includes, but is not limited to, Cisco Systems, Huawei, Alcatel, Checkpoint, and Foundry.
(d)Disability.  “Disability” shall mean that the Employee has been unable to perform his or her Company duties as the result of his incapacity due to physical or mental illness, and such inability, at least twenty-six (26) weeks after its commencement, is determined to be total and permanent by a physician selected by the Company or its insurers and acceptable to the Employee or the Employee's legal representative (such agreement as to acceptability not to be unreasonably withheld).  Termination resulting from Disability may only be effected after at least thirty (30) days' written notice by the Company of its intention to terminate the Employee's employment.  In the event that the Employee resumes the performance of substantially all of his or her duties hereunder before the termination of his or her employment becomes effective, the notice of intent to terminate shall automatically be deemed to have been revoked.
(e)Good Reason.  “Good Reason” means Employee's termination of employment following the expiration of any cure period (discussed below) following the occurrence, without Employee's express written consent, of one or more of the following: 
(i)a material reduction of the Employee's duties, title, authority or responsibilities, relative to the Employee's duties, title, authority or responsibilities as in effect immediately prior to such reduction; provided, however, that a reduction in duties, title, authority or responsibilities solely by virtue of the Company being acquired and made part of a larger entity (as, for example, when the Chief Financial Officer of the Company remains the Chief Financial Officer of the subsidiary or business unit substantially containing the Company's business following a Change of Control) shall not by itself constitute grounds for a “Voluntary Termination for Good Reason”; or
(ii)a substantial reduction of the facilities and perquisites (including office space and location) available to the Employee immediately prior to such reduction; or
(iii)a reduction by the Company in the base compensation or total target cash compensation of the Employee as in effect immediately prior to such reduction; or
(iv)a material reduction by the Company in the kind or level of benefits to which the Employee was entitled immediately prior to such reduction with the result that such Employee's overall benefits package is significantly reduced; or
(v)the relocation of the Employee to a facility or a location more than forty (40) miles from such Employee's then present location.
Employee will not resign for Good Reason without first providing the Company with written notice within sixty (60) days of the event that Employee believes constitutes “Good Reason” specifically identifying the acts or omissions constituting the grounds for Good Reason and a reasonable cure period of not less than thirty (30) days following the date of such notice.
7.Successors.
(a)The Company's Successors.  Any successor to the Company (whether direct or indirect and whether by purchase, merger, consolidation, liquidation or otherwise) to all or substantially all of the Company's business and/or assets shall assume the obligations under this Agreement and agree expressly to perform the obligations under this Agreement in the same manner and to the same extent as the Company would be required to perform such obligations in the absence of a succession.  For all purposes under this Agreement, the term “Company” shall include any successor to the Company's business and/or assets which executes and delivers the assumption agreement described in this Section 7(a) or which becomes bound by the terms of this Agreement by operation of law.
(b)The Employee's Successors.  The terms of this Agreement and all rights of the Employee hereunder shall inure to the benefit of, and be enforceable by, the Employee's personal or legal representatives, executors, administrators, successors, heirs, distributees, devisees and legatees.
8.Notice.
(a)General.  All notices and other communications required or permitted here-under shall 

be in writing, shall be effective when given, and shall in any event be deemed to be given upon receipt or, if earlier, (a) five (5) days after deposit with the U.S. Postal Service or other applicable postal service, if delivered by first class mail, postage prepaid, (b) upon delivery, if delivered by hand, (c) one (1) business day after the business day of deposit with Federal Express or similar overnight courier, freight prepaid or (d) one (1) business day after the business day of facsimile transmission, if delivered by facsimile transmission with copy by first class mail, postage prepaid, and shall be addressed (i) if to Employee, at his or her last known residential address and (ii) if to the Company, at the address of its principal corporate offices (attention:  Secretary), or in any such case at such other address as a party may designate by ten (10) days' advance written notice to the other party pursuant to the provisions above.
(b)Notice of Termination.  Any termination by the Company for Cause or by the Employee for Good Reason or Disability or as a result of a voluntary resignation shall be communi-cated by a notice of termination to the other party hereto given in accordance with Section 8(a) of this Agreement.  Such notice shall indicate the specific termination provision in this Agreement relied upon, shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination under the provision so indicated, and shall specify the termination date (which shall be not more than thirty (30) days after the giving of such notice).  The failure by the Employee to include in the notice any fact or circumstance which contributes to a showing of Good Reason or Disability shall not waive any right of the Employee hereunder or preclude the Employee from asserting such fact or circumstance in enforcing his or her rights hereunder.
9.Miscellaneous Provisions.
(a)No Duty to Mitigate.  The Employee shall not be required to mitigate the amount of any payment contemplated by this Agreement, nor shall any such payment be reduced by any earnings that the Employee may receive from any other source.
(b)Waiver.  No provision of this Agreement shall be modified, waived or discharged unless the modification, waiver or discharge is agreed to in writing and signed by the Employee and by an authorized officer of the Company (other than the Employee).  No waiver by either party of any breach of, or of compliance with, any condition or provision of this Agreement by the other party shall be considered a waiver of any other condition or provision or of the same condition or provision at another time.
(c)Headings.  All captions and section headings used in this Agreement are for convenient reference only and do not form a part of this Agreement.
(d)Entire Agreement.  This Agreement constitutes the entire agreement of the parties hereto and supersedes in their entirety all prior representations, understandings, undertakings or agreements (whether oral or written and whether expressed or implied) of the parties with respect to the subject matter hereof.
(e)Choice of Law.  The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of California.  The Superior Court of Santa Clara County and/or the United States District Court for the Northern District of California shall have exclusive jurisdiction and venue over all controversies in connection with this Agreement.
(f)Severability.  The invalidity or unenforceability of any provision or provisions of this Agreement shall not affect the validity or enforceability of any other provision hereof, which shall remain in full force and effect.
(g)Withholding.  All payments made pursuant to this Agreement will be subject to withholding of applicable income and employment taxes.
(h)Counterparts.  This Agreement may be executed in counterparts, each of which shall be deemed an original, but all of which together will constitute one and the same instrument.
IN WITNESS WHEREOF, each of the parties has executed this Agreement, in the case of the Company by its duly authorized officer, as of the day and year set forth below.

COMPANY                    JUNIPER NETWORKS, INC.
By:                            
Name:     ____________________________________
Title:                            

EMPLOYEE                                
Name:Exhibit 10.17

 

FIRST AMENDMENT OF LEASE

 

THIS FIRST AMENDMENT OF LEASE (this “Amendment”), dated November 4, 2011 for reference purposes only, is made by and between MT SPE, LLC, a Delaware limited liability company (“Landlord”) and RAMBUS INC., a Delaware corporation (“Tenant”).

 

RECITALS

 

A.            Tenant and Landlord are parties to that certain Triple Net Space Lease dated December 15, 2009 (the “Original Lease”), with respect to certain premises within that certain building located at 1050 Enterprise Way in Sunnyvale, California (the “Building”). All capitalized terms not defined herein shall have the meanings set forth in the Original Lease.

 

B.            Pursuant to the Original Lease, Tenant leases an agreed upon 125,210 rentable square feet of space consisting of a portion of Floor 1 and all of Floors 6, 7 and 8 of the Building (collectively, the “Existing Premises”), as more particularly described in the Original Lease.

 

C.            Tenant desires to expand the Existing Premises to include the remaining agreed upon 30,963 rentable square feet of space located on Floor 1 of the Building (the “Expansion Premises”), as more particularly set forth on Exhibit A attached hereto.

 

D.            Landlord and Tenant desire to amend the Original Lease to expand the Premises under the Lease, as more particularly set forth herein.

 

In consideration of the mutual promises and covenants herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

 

AGREEMENTS

 

1.             References. All references to the “Lease” or “lease” appearing in this Amendment or in the Original Lease shall mean, collectively, this Amendment and the Original Lease as amended by this Amendment.

 

2.             Term.

 

(a)           Existing Premises. The Lease Term with respect to the Existing Premises shall remain unchanged, and is currently scheduled to expire on June 30, 2020.

 

(b)           Expansion Premises. The “Expansion Premises Commencement Date” shall be the date that is the earlier to occur of (i) the date upon which Tenant first commences to conduct business in the Expansion Premises, or (ii) March 1, 2012, subject to extension pursuant to the terms and conditions of the work letter attached hereto as Exhibit B. The Lease, with respect to the Expansion Premises, shall commence on the Expansion Premises Commencement Date and shall expire, unless sooner terminated or extended as provided for in the Lease, on June 30, 2020 (the “Expansion Premises Expiration Date”), and shall be referred to herein as the “Expansion Premises Lease Term”. Within thirty (30) days following the Expansion Premises Commencement Date, Landlord and Tenant shall execute and deliver a Memorandum of

 

1

 

Commencement of Expansion Premises Lease Term substantially in the form attached hereto as Exhibit C as a confirmation of the information set forth therein.

 

(c)           Early Entry. Notwithstanding anything herein to the contrary, as of the Expansion Premises Delivery Date (as defined below), Tenant and Tenant’s invitees may enter the Expansion Premises, at Tenant’s sole risk, for the sole purpose of installation of the Expansion Premises Tenant Improvements (as defined in Section 2.1 of Exhibit B attached hereto and made a part hereof), and its furniture, fixtures and equipment (collectively, the “FF&E”). Tenant’s occupancy of the Expansion Premises prior to the Expansion Premises Commencement Date shall be solely for the purpose of constructing the Expansion Premises Tenant Improvements and installing the FF&E (and not for the conduct of Tenant’s business) and shall be on all of the terms and conditions of the Lease as though the Expansion Premises Lease Team had commenced on the Expansion Premises Delivery Date, except the obligation to pay Rent. The “Expansion Premises Delivery Date” shall mean that date on which all of the following have occurred: (a) this Amendment is fully executed and delivered by Landlord and Tenant; and (b) Tenant has delivered to Landlord (i) Rent for the Expansion Premises Lease Month 6, and (ii) evidence of the insurance described in Article VII of the Lease. Tenant shall give Landlord twenty-four (24) hours prior written notice of its initial entry into the Expansion Premises by Tenant or Tenant’s invitees pursuant to this Section 2(c) but thereafter shall not be required to provide Landlord with such notice. Tenant shall ensure that any entry by Tenant or its invitees does not unreasonably interfere with the construction or completion of any work to be performed by Landlord hereunder.

 

3.             Expansion of the Existing Premises. Effective as of the Expansion Premises Commencement Date and continuing through to and including the Expansion Premises Expiration Date, Landlord shall lease to Tenant and Tenant shall lease from Landlord the Expansion Premises on all of the terms and conditions of the Lease, as amended hereby (provided, however, no initial abatement of Rent or tenant improvement allowance provided for under the Original Lease with respect to the Existing Premises shall apply to the Expansion Premises, nor shall the provisions of the work letter for tenant improvements to the Existing Premises attached as Exhibit D to the Original Lease be applicable to the Existing Premises). As of the Expansion Premises Commencement Date and continuing through to and including the Expansion Premises Expiration Date, all references in the Lease or this Amendment to the “Premises” shall be mean the Existing Premises and the Expansion Premises.

 

4.             Condition of the Expansion Premises. Having made such inspection of the Expansion Premises, the Building, Lot 1 or the Project as it deemed prudent and appropriate (including, without limitation, testing for the presence of mold), Tenant hereby accepts the Expansion Premises in their condition existing as of the Expansion Premises Delivery Date, “AS-IS” and “WITH ALL FAULTS” subject to all applicable zoning, municipal, county and state laws, ordinances and regulations governing and regulating the use and condition of the Expansion Premises, and any covenants or restrictions, liens, encumbrances and title exceptions of record, and accepts the lease of the Expansion Premises subject thereto and to all matters disclosed thereby and by any exhibits attached to this Amendment or the Original Lease. Except as specifically set forth in this Amendment and in the Work Letter Agreement for Expansion Premises Tenant Improvements and Interior Specification Standards attached hereto as Exhibit B and made a part hereof (the “Work Letter”), Landlord shall not be obligated to provide or pay

 

2

 

for any improvement work or services related to the improvement of the Expansion Premises. Tenant acknowledges that neither Landlord nor any agent of Landlord has made any representation or warranty as to the present or future suitability of the Expansion Premises for the conduct of Tenant’s business. Neither party has been induced to enter into this Amendment by, nor is either party is relying on, any representation or warranty outside those expressly set forth in this Amendment. Neither Landlord nor anyone acting on its behalf shall be liable for, nor shall this Amendment or the Lease be subject to rescission on account of, the nondisclosure of any facts. Tenant expressly waives any right to rescission and /or damages based on nondisclosure of any facts.

 

5.             Base Rent.

 

(a)           Existing Premises. Tenant shall continue to pay Base Rent for the Existing Premises, as set forth in the Lease.

 

(b)           Expansion Premises.

 

(i)            Base Rent for the Expansion Premises. Effective as of the Expansion Premises Commencement Date and continuing through to and including the Expansion Premises Expiration Date, in addition to all other amounts payable under the Lease, Tenant shall pay Base Rent for the Expansion Premises as set forth below. The monthly installment of Base Rent for the Expansion Premises for Expansion Premises Lease Month 6 shall be paid by Tenant upon execution hereof.

 

	
Expansion Premises
   Lease Months
    	
 
    	
Annual Installment of
   Base Rent for the
   Expansion Premises
    	
 
    	
Monthly Installment
   of Base Rent for the
   Expansion Premises
    	
 
    	
Monthly Base Rent
   per Square Foot of
   Rentable Area of the
   Expansion Premises
    	
 
    
	
1-12*
    	
 
    	
$
    	
1,058,934.60
    	
 
    	
$
    	
88,244.55
    	
 
    	
$
    	
2.85
    	
 
    
	
13-24
    	
 
    	
$
    	
1,090,702.68
    	
 
    	
$
    	
90,891.89
    	
 
    	
$
    	
2.94
    	
 
    
	
25-36
    	
 
    	
$
    	
1,123,423.68
    	
 
    	
$
    	
93,618.64
    	
 
    	
$
    	
3.02
    	
 
    
	
37-48
    	
 
    	
$
    	
1,157,126.40
    	
 
    	
$
    	
96,427.20
    	
 
    	
$
    	
3.11
    	
 
    
	
49-60
    	
 
    	
$
    	
1,191,840.24
    	
 
    	
$
    	
99,320.02
    	
 
    	
$
    	
3.21
    	
 
    
	
61-72
    	
 
    	
$
    	
1,227,595.44
    	
 
    	
$
    	
102,299.62
    	
 
    	
$
    	
3.30
    	
 
    
	
73-84
    	
 
    	
$
    	
1,264,423.32
    	
 
    	
$
    	
105,368.61
    	
 
    	
$
    	
3.40
    	
 
    
	
85-96
    	
 
    	
$
    	
1,302,356.04
    	
 
    	
$
    	
108,529.67
    	
 
    	
$
    	
3.51
    	
 
    
	
97-100
    	
 
    	
$
    	
1,341,426.72
    	
 
    	
$
    	
111,785.56
    	
 
    	
$
    	
3.61
    	
 
    

 

* Base Rent for Expansion Premises Lease Months 1-5 shall be subject to abatement pursuant to the terms of Section 5(b)(ii) below.

 

(ii)           Abatement of Base Rent for Expansion Premises. Notwithstanding anything to the contrary contained in this Amendment, Landlord hereby waives Tenant’s obligation to pay Base Rent for the Expansion Premises only for the first five (5) months of the initial Expansion Premises Lease Term (the “Expansion Premises Abatement Period”). During the Expansion Premises Abatement Period, Tenant shall still be responsible for the payment of all of its other monetary obligations under the Lease (including, without limitation,

 

3

 

all Additional Rent with respect to the Expansion Premises for the Expansion Premises Abatement Period).

 

6.             Additional Rent.

 

(a)           Tenant’s Share. Commencing on the Expansion Premises Commencement Date and continuing throughout the Expansion Premises Lease Term, Tenant’s Share shall be adjusted in accordance with Section 4.05(c) of the Lease to take into account the addition of the Expansion Premises. Accordingly, as of the Expansion Premises Commencement Date (but subject to potential adjustment thereafter pursuant to Section 4.05(c) of the Lease), (i) Tenant’s Project Share shall be 9.59%, (ii) Tenant’s Lot 1 Share shall be 16.41%, and (iii) Tenant’s Building Share shall be 49.24%.

 

(b)           Expansion Premises Management Fee. For purposes of calculating the Management Fee payable by Tenant with respect to the Expansion Premises in accordance with Section 4.04 of the Original Lease, the monthly installment of Base Rent for the first five (5) months of the Expansion Premises Lease Term shall be deemed to be $88,244.55, notwithstanding any abatement of Base Rent for the Expansion Premises during the Expansion Premises Abatement Period under to Section 2(c) above.

 

7.             Parking Spaces. Commencing on the Expansion Premises Commencement Date and continuing throughout the Expansion Premises Lease Term, Landlord shall provide Tenant with a total of 473 parking spaces for the combined Existing Premises and Expansion Premises on an unreserved, non-designated non-exclusive first come-first serve basis in accordance with the provisions of Section 2.03 of the Lease.

 

8.             Expansion Premises Tenant Improvement Allowance and Test Fit Allowance; Alterations.

 

(a)           Tenant Improvement Allowance. Landlord shall provide to Tenant an Expansion Premises Tenant Improvement Allowance of One Million Eight Hundred Fifty-Seven Thousand Seven Hundred Eighty and 00/100 Dollars ($1,857,780.00) (i.e., $60.00 per square foot of Rentable Area in the Expansion Premises) to be used for the Expansion Premises Tenant Improvements as set forth in the Work Letter attached hereto as Exhibit B. The Expansion Premises Tenant Improvement Allowance shall be reduced by the “Landlord’s Work Reimbursement Amount” consisting of an amount equal to: (i) 9.76% of the costs associated with the purchase and installation of the 2000 KW Generator, enclosure and related fuel tank and transfer switch (collectively, the “Generator”) installed by Landlord, (ii) 9.76% of the costs associated with the construction of a shipping/loading area for the Building by Landlord (the “Shipping/Loading Access”), and (iii) 3.25% (Tenant’s Lot 1 Share) of the costs associated with Landlord’s construction and installation of parking gates at all entrances/exits to the parking structure known as “Parking Structure 1” (“Parking Structure 1”) located at 1060 Enterprise Way immediately behind the Building. Landlord shall also provide to Tenant an Expansion Premises Test Fit Allowance in the amount of Three Thousand Ninety-Six and 30/100 Dollars ($3,096.30) to be used toward the cost of preparing a “test-fit” of the Expansion Premises by either Landlord’s or Tenant’s architect at Tenant’s election.

 

4

 

(b)           Alterations. Notwithstanding anything to the contrary in the Lease, for the purposes of Section 6.03 of the Lease and otherwise, any and all Alterations performed by Tenant in the Existing Premises or the Expansion Premises shall be performed pursuant to the terms of the Work Letter attached to this Amendment as Exhibit B.

 

9.             Termination Fee. For purposes of Section 3.03 of the Lease, as of the Expansion Premises Commencement Date, the Termination Fee payable by Tenant should Tenant elect to exercise its right to terminate the Lease in accordance with Section 3.03 shall, in addition to those items listed in Section 3.03(b) of the Lease, also include the unamortized portion of (i) the abated Base Rent during the Expansion Premises Abatement Period, (ii) the Expansion Premises Tenant Improvement Allowance, (iii) the costs incurred by Landlord to complete any tenant improvements (including without limitation architectural and engineering fees, permit fees and other soft costs) which were not included in any other allowance provided to Tenant (including, without limitation, the cost incurred by Landlord for the test fit to be performed by Landlord pursuant to Exhibit B attached hereto), and (iv) any leasing commissions paid or incurred by Landlord in connection with this Amendment, plus interest on the cumulative sum of the items described in subsections (i) through (iv) herein accruing from the Expansion Premises Commencement Date until the Termination Fee is paid to Landlord at the rate of eight percent (8%) per annum. The parties agree to compute the Termination Fee and include it as an item in the Memorandum of Commencement of Expansion Premises Lease Term upon its execution by Landlord and Tenant.

 

10.           Tenant Representative. From and after the date of this Amendment, “Tenant’s Representative” shall be Ernst Calais, Director of Global Workplace Solutions.

 

11.           Address of Building. Landlord and Tenant acknowledge and agree that the address of the Building has been changed from 1040 Enterprise Way to 1050 Enterprise Way, and all references in the Original Lease to 1040 Enterprise Way are hereby amended to instead refer to 1050 Enterprise Way.

 

12.           Brokers. Landlord and Tenant represent and warrant to each other that they have had no dealings with any real estate broker or agent in connection with the negotiation of this Amendment, except for Cornish & Carey Commercial (the “Broker”) who represents both Landlord and Tenant, and that they know of no other real estate broker or agent who is entitled to a commission or finder’s fee in connection with this Amendment. Each party shall indemnify, protect, defend, and hold harmless the other party against all claims, demands, losses, liabilities, lawsuits, judgments, and costs and expenses (including reasonable attorneys’ fees) for any leasing commission, finder’s fee, or equivalent compensation alleged to be owning on account of the indemnifying party’s dealings with any real estate broker or agent. Landlord shall pay a commission to the Broker pursuant to the terms of a separate written agreement.

 

13.           Miscellaneous.

 

13.1         Severability. If any provision of this Amendment or the application of any provision of this Amendment to any person or circumstance is, to any extent, held to be invalid or unenforceable, the remainder of this Amendment or the application of that provision to persons or circumstances other than those as to which it is held invalid or unenforceable, will not

 

5

 

be affected, and each provision of this Amendment will be valid and be enforced to the fullest extent permitted by law.

 

13.2         Entire Agreement/Modification. This Amendment contains all of the agreements of the parties hereto with respect to the matters contained herein, and no prior agreement, arrangement or understanding pertaining to any such matters shall be effective for any purpose. Except for any subsequent amendments or modifications to the Lease made in accordance with the terms thereof, any agreement made after the date of this Amendment is ineffective to modify or amend the terms of this Amendment, in whole or in part, unless that agreement is in writing, is signed by the parties to this Amendment, and specifically states that that agreement modifies this Amendment.

 

13.3         Counterparts. This Amendment may be executed in any number of counterparts and each counterpart shall be deemed to be an original document. All executed counterparts together shall constitute one and the same document, and any counterpart signature pages may be detached and assembled to form a single original document.

 

13.4         Heirs and Successors. This Amendment shall he binding upon the heirs, legal representatives, successors and permitted assigns of the parties hereto.

 

13.5         Authority. Each individual executing this Amendment on behalf of his or her respective party represents and warrants that he or she is duly authorized to execute and deliver this Amendment on behalf of said entity in accordance with the governing documents of such entity, and that upon full execution and delivery this Amendment is binding upon said entity in accordance with its terms.

 

13.6         Drafting. In the event of a dispute between any of the parties hereto over the meaning of this Amendment, both parties shall be deemed to have been the drafter hereof, and any applicable law that states that contracts are construed against the drafter shall not apply.

 

13.7         Ratification. Except as modified by this Amendment, the Original Lease shall continue in full force and effect and Landlord and Tenant do hereby ratify and confirm all of the terms and provisions of the Original Lease, subject to the modifications contained herein.

 

Remainder of page intentionally left blank.

 

Signatures on following page.

 

6

 

IN WITNESS WHEREOF, the parties have caused this instrument to be executed as of the dates below their respective signatures.

 

 

	
 
    	
LANDLORD:
    
	
 
    	
 
    
	
 
    	
MT SPE, LLC, a Delaware limited liability company
    
	
 
    	
 
    
	
 
    	
By:
    	
Moffett Towers, LLC, a Delaware limited liability company
    
	
 
    	
Its: 
    	
Sole Member
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
Moffett Towers Management Inc., a Delaware corporation
    
	
 
    	
 
    	
Its:
    	
Managing Member
    
	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
/s/ Jay Paul
    
	
 
    	
 
    	
 
    	
 
    	
Jay Paul, President
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
TENANT:
    
	
 
    	
 
    
	
 
    	
RAMBUS INC.,
    
	
 
    	
a Delaware corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/ Harold Hughes
    
	
 
    	
Name:
    	
Harold Hughes
    
	
 
    	
 
    	
(Type or Print Name)
    
	
 
    	
Title: 
    	
CEO
    

 

7

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