Document:

Prepared by R.R. Donnelley Financial -- 1995 Stock Plan

  
 EXHIBIT 10.3A 
  
 NetIQ CORPORATION 
  
 1995 STOCK PLAN

  
 Amended and Restated as of September 16, 2002 
  
 1.  Purposes of the Plan.    The purposes of this 1995 Stock Plan are: 
  

	 	•
	to attract and retain the best available personnel for positions of substantial responsibility, 
 

  

	 	•
	to provide additional incentive to Employees, Directors and Consultants, and 
 

  

	 	•
	to promote the success of the Company’s business. 
 

  
 Options granted under the Plan may be Incentive Stock Options or Nonstatutory Stock Options, as determined by the Administrator at the time of grant. Stock Purchase Rights
may also be granted under the Plan. 
  
 2.  Definitions.    As used herein, the
following definitions shall apply: 
  
 (a)  “Administrator” means the
Board or any of its Committees as shall be administering the Plan, in accordance with Section 4 of the Plan. 
  
 (b)  “Applicable Laws” means the requirements relating to the administration of stock option plans under U. S. state corporate laws, U.S. federal and state securities laws, the Code, any stock exchange or
quotation system on which the Common Stock is listed or quoted and the applicable laws of any foreign country or jurisdiction where Options or Stock Purchase Rights are, or will be, granted under the Plan. 
  
 (c)  “Board” means the Board of Directors of the Company. 
  
 (d)  “Cause” means (i) any act of personal dishonesty taken by the Optionee in connection with
his responsibilities as an Employee which is intended to result in substantial personal enrichment of the Optionee, (ii) the Optionee’s conviction of a felony which the Board reasonably believes has had or will have a material detrimental
effect on the Company’s reputation or business, (iii) a willful act by the Optionee which constitutes misconduct and is injurious to the Company, and (iv) continued willful violations by the Optionee of the Optionee’s obligations to the
Company after there has been delivered to the Optionee a written demand for performance from the Company which describes the basis for the Company’s belief that the Optionee has not substantially performed his duties. 
  
 (e)  “Change of Control” means the occurrence of any of the following events: 

 
 (i)  the approval by shareholders of the Company 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) more than 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; 

 
 (ii)  any approval by the shareholders of the Company of a plan of complete liquidation of the
Company or an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets; 
  
 (iii)  any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended) becoming the “beneficial owner” (as defined in
Rule 13d-3 under said Act), 

 directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by
the Company’s then outstanding voting securities; or 
  
 (iv)  a change in the
composition of the Board, 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 those Directors whose election or nomination was not in connection with any transaction described in subsections (i), (ii) or (iii) or in
connection with an actual or threatened proxy contest relating to the election of directors of the Company. 
  
 (f)  “Code” means the Internal Revenue Code of 1986, as amended. 
  
 (g)  “Committee” means a committee of Directors appointed by the Board in accordance with Section 4 of the Plan. 
  
 (h)  “Common Stock” means the common stock of the Company. 
  
 (i)  “Company” means NetIQ Corporation, Inc., a Delaware corporation. 
  
 (j)  “Consultant” means any person, including an advisor, engaged by the Company or a Parent or Subsidiary to render services to
such entity. 
  
 (k)  “Director” means a member of the Board.

  
 (l)  “Disability” means total and permanent disability as defined in
Section 22(e)(3) of the Code. 
  
 (m)  “Employee” means any person,
including Officers and Directors, employed by the Company or any Parent or Subsidiary of the Company. A Service Provider shall not cease to be an Employee in the case of (i) any leave of absence approved by the Company or (ii) transfers between
locations of the Company or between the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed by statute
or contract. If reemployment upon expiration of a leave of absence approved by the Company is not so guaranteed, on the 181st day of such leave any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock Option
and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as a Director nor payment of a director’s fee by the Company shall be sufficient to constitute “employment” by the Company. 
  
 (n)  “Employee Director” means a Director who is an Employee. 
  
 (o)  “Exchange Act” means the Securities Exchange Act of 1934, as amended. 

 
 (p)  “Fair Market Value” means, as of any date, the value of Common Stock determined
as follows: 
  
 (i)  If the Common Stock is listed on any established stock exchange or a
national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value shall be the closing sales price for such stock (or the closing bid, if no sales were
reported) as quoted on such exchange or system for the last market trading day prior to the time of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable; 
  
 (ii)  If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not
reported, the Fair Market Value of a Share of Common Stock shall be the mean between the high bid and low asked prices for the Common Stock on the last market trading day prior to the day of determination, as reported in The Wall Street
Journal or such other source as the Administrator deems reliable; or 
 

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 (iii)  In the absence of an established market for the
Common Stock, the Fair Market Value shall be determined in good faith by the Administrator. 
  
 (q)  “Incentive Stock Option” means an Option intended to qualify as an incentive stock option within the meaning of Section 422 of the Code and the regulations promulgated thereunder. 

 
 (r)  “IPO Effective Date” means the date upon which the Securities and Exchange
Commission declares the initial public offering of the Company’s common stock as effective. 
  
 (s)  “Non-employee Director” means a Director who is not an Employee and who is not the “beneficial owner” (as defined in Rule 13d-3 of the Securities Exchange Act of 1934, as amended), directly
or indirectly, of securities of the Company representing 5% or more of the total voting power represented by the Company’s outstanding voting securities on the date of any grant hereunder. 
  

(t)  “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock Option. 

 
 (u)  “Notice of Grant” means a written or electronic notice evidencing certain times
and conditions of an individual Option or Stock Purchase Right grant. The Notice of Grant is part of the Option Agreement. 
  
 (v)  “Officer” means a person who is an officer of the Company within the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
  
 (w)  “Option” means a stock option granted pursuant to the Plan. 
  
 (x)  “Option Agreement” means an agreement between the Company and an Optionee evidencing the
terms and conditions of an individual Option grant. The Option Agreement is subject to the terms and conditions of the Plan. 
  
 (y)  “Option Exchange Program” means a program whereby outstanding Options are surrendered in exchange for Options with a lower exercise price. 
  
 (z)  “Optioned Stock” means the Common Stock subject to an Option or Stock Purchase Right.

  
 (aa)  “Optionee” means the holder of an outstanding Option or Stock
Purchase Right granted under the Plan. 
  
 (bb)  “Plan” means this 1995
Stock Option Plan, as amended and restated. 
  
 (cc)  “Restricted Stock”
means shares of Common Stock acquired pursuant to a grant of Stock Purchase Rights under Section 11 of the Plan. 
  
 (dd)  “Restricted Stock Purchase Agreement” means a written agreement between the Company and the Optionee evidencing the terms and restrictions applying to stock purchased under a Stock Purchase Right. The
Restricted Stock Purchase Agreement is subject to the terms and conditions of the Plan and the Notice of Grant. 
  
 (ee)  “Rule 16b-3” means Rule 16b-3 of the Exchange Act or any successor to Rule 16b-3, as in effect when discretion is being exercised with respect to the Plan. 
  
 (ff)  “Section 16(b) “ means Section 16(b) of the Exchange Act. 
  
 (gg)  “Service Provider” means an Employee, Director or Consultant. 
 

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 (hh)  “Share” means a share of the
Common Stock, as adjusted in accordance with Section 14 of the Plan. 
  
 (ii)  “Stock Purchase Right” means the right to purchase Common Stock pursuant to Section 11 of the Plan, as evidenced by a Notice of Grant. 
  
 (jj)  “Subsidiary” means a “subsidiary corporation”, whether now or hereafter existing, as defined in Section 424(f) of
the Code. 
  
 3.  Stock Subject to the Plan.    Subject to the provisions of
Section 14 of the Plan, the maximum aggregate number of Shares which may be optioned and sold under the Plan is 15,004,235 Shares, plus an annual increase to be added on the first day of the Company’s fiscal year beginning July 1, 2000 equal to
the lesser of (i) 2,600,000 shares, (ii) 5% of the outstanding shares on such date or (iii) an amount determined by the Board. The Shares may be authorized, but unissued, or reacquired Common Stock. 
  
 If an Option or Stock Purchase Right expires or becomes unexercisable without having been exercised in full, or is surrendered pursuant to
an Option Exchange Program, the unpurchased Shares which were subject thereto shall become available for future grant or sale under the Plan (unless the Plan has terminated); provided, however, that Shares that have actually been issued under the
Plan, whether upon exercise of an Option or Right, shall not be returned to the Plan and shall not become available for future distribution under the Plan, except that if Shares of Restricted Stock are repurchased by the Company at their original
purchase price, such Shares shall become available for future grant under the Plan. 
  
 4.  Administration of the Plan. 
  
 (a)  Procedure. 
  
 (i)  Multiple Administrative
Bodies.    The Plan may be administered by different Committees with respect to different groups of Service Providers. 
  
 (ii)  Section 162(m).    To the extent that the Administrator determines it to be desirable to qualify Options granted hereunder as “performance-based
compensation” within the meaning of Section 162(m) of the Code, the Plan shall be administered by a Committee of two or more “non-employee directors” within the meaning of Section 162(m) of the Code. 
  
 (iii)  Rule 16b-3.    To the extent desirable to qualify transactions hereunder as
exempt under Rule 16b-3, the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
  
 (iv)  Other Administration.    Other than as provided above, the Plan shall be administered by (A) the Board or (B) a Committee, which committee shall be
constituted to satisfy Applicable Laws. 
  
 (b)  Powers of the
Administrator.    Subject to the provisions of the Plan, and in the case of a Committee, subject to the specific duties delegated by the Board to such Committee, the Administrator shall have the authority, in its discretion:

  
 (i)  to determine the Fair Market Value; 
  
 (ii)  to select the Service Providers to whom Options and Stock Purchase Rights may be granted hereunder;

  
 (iii)  to determine the number of shares of Common Stock to be covered by each Option
and Stock Purchase Right granted hereunder; 
  
 (iv)  to approve forms of agreement for use
under the Plan; 
 

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 (v)  to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Option or Stock Purchase Right granted hereunder. Such terms and conditions include, but are not limited to, the exercise price, the time or times when Options or Stock Purchase Rights may be exercised
(which may be based on performance criteria), any vesting acceleration or waiver of forfeiture restrictions, and any restriction or limitation regarding any Option or Stock Purchase Right or the shares of Common Stock relating thereto, based in each
case on such factors as the Administrator, in its sole discretion, shall determine; 
  
 (vi)  to reduce the exercise price of any Option or Stock Purchase Right to the then current Fair Market Value if the Fair Market Value of the Common Stock covered by such Option or Stock Purchase Right shall have declined
since the date the Option or Stock Purchase Right was granted; 
  
 (vii)  to institute an
Option Exchange Program; 
  
 (viii)  to construe and interpret the terms of the Plan and
awards granted pursuant to the Plan; 
  
 (ix)  to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules and regulations relating to sub-plans established for the purpose of qualifying for preferred tax treatment under foreign tax laws; 
  
 (x)  to modify or amend each Option or Stock Purchase Right (subject to Section 16(c) of the Plan), including the discretionary authority to
extend the post-termination exercisability period of Options longer than is otherwise provided for in the Plan; 
  
 (xi)  to allow Optionees to satisfy withholding tax obligations by electing to have the Company withhold from the Shares to be issued upon exercise of an Option or Stock Purchase Right that number of Shares having a Fair
Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by an Optionee to have Shares
withheld for this purpose shall be made in such form and under such conditions as the Administrator may deem necessary or advisable; 
  
 (xii)  to authorize any person to execute on behalf of the Company any instrument required to effect the grant of an Option or Stock Purchase Right previously granted by the Administrator;

  
 (xiii)  to make all other determinations deemed necessary or advisable for
administering the Plan. 
  
 (c)  Effect of Administrator’s
Decision.    The Administrator’s decisions, determinations and interpretations shall be final and binding on all Optionees and any other holders of Options or Stock Purchase Rights. 
  
 5.  Eligibility.    Nonstatutory Stock Options and Stock Purchase Rights may be granted to Service
Providers. Incentive Stock Options may be granted only to Employees. 
  
 6.  Limitations.

  
 (a)  Each Option shall be designated in the Option Agreement as either an Incentive
Stock Option or a Nonstatutory Stock Option. However, notwithstanding such designation, to the extent that the aggregate Fair Market Value of the Shares with respect to which Incentive Stock Options are exercisable for the first time by the Optionee
during any calendar year (under all plans of the Company and any Parent or Subsidiary) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of this Section 6(a), Incentive Stock Options shall be taken into
account in the order in which they were granted. The Fair Market Value of the Shares shall be determined as of the time the Option with respect to such Shares is granted. 
 

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 (b)  Neither the Plan nor any Option or Stock Purchase
Right shall confer upon an Optionee any right with respect to continuing the Optionee’s relationship as a Service Provider with the Company, nor shall they interfere in any way with the Optionee’s right or the Company’s right to
terminate such relationship at any time, with or without cause. 
  
 (c)  The following
limitations shall apply to grants of Options: 
  
 (i)  No Service Provider shall be
granted, in any fiscal year of the Company, Options to purchase more than 333,333 Shares. 
  
 (ii)  In connection with his or her initial service, a Service Provider may be granted Options to purchase up to an additional 666,666 Shares which shall not count against the limit set forth in subsection (i) above.

  
 (iii)  The foregoing limitations shall be adjusted proportionately in connection with
any change in the Company’s capitalization as described in Section 14. 
  
 (iv)  If an
Option is cancelled in the same fiscal year of the Company in which it was granted (other than in connection with a transaction described in Section 14), the cancelled Option will be counted against the limits set forth in subsections (i) and (ii)
above. For this purpose, if the exercise price of an Option is reduced, the transaction will be treated as a cancellation of the Option and the grant of a new Option. 
  
 7.  Term of Plan.    Subject to Section 20 of the Plan, the Plan shall become effective upon its adoption by the Board. It shall
continue in effect for a term of ten (10) years unless terminated earlier under Section 16 of the Plan. 
  
 8.  Term of Option.    The term of each Option shall be stated in the Option Agreement. In the case of an Incentive Stock Option, the term shall be ten (10) years from the date of grant or such
shorter term as may be provided in the Option Agreement. Moreover, in the case of an Incentive Stock Option granted to an Optionee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company or any Parent or Subsidiary, the term of the Incentive Stock Option shall be five (5) years from the date of grant or such shorter term as may be provided in the Option Agreement.

  
 9.  Option Exercise Price and Consideration. 
  
 (a)  Exercise Price.    The per share exercise price for the Shares to be issued
pursuant to exercise of an Option shall be determined by the Administrator, subject to the following: 
  
 (i)  In the case of an Incentive Stock Option 
  
 (A)  granted
to an Employee who, at the time the Incentive Stock Option is granted, owns stock representing more than ten percent (10%) of the voting power of all classes of stock of the Company or any Parent or Subsidiary, the per Share exercise price shall be
no less than 110% of the Fair Market Value per Share on the date of grant. 
  
 (B)  granted to any Employee other than an Employee described in paragraph (A) immediately above, the per Share exercise price shall be no less than 100% of the Fair Market Value per Share on the date of grant.

  
 (ii)  In the case of a Nonstatutory Stock Option, the per Share exercise price shall be
determined by the Administrator. In the case of a Nonstatutory Stock Option intended to qualify as “performance-based compensation” within the meaning of Section 162(m) of the Code, the per Share exercise price shall be no less than 100%
of the Fair Market Value per Share on the date of grant. 
 

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 (iii)  Notwithstanding the foregoing, Options may be
granted with a per Share exercise price of less than 100% of the Fair Market Value per Share on the date of grant pursuant to a merger or other corporate transaction. 
  
 (b)  Waiting Period and Exercise Dates.    At the time an Option is granted, the Administrator shall fix the period
within which the Option may be exercised and shall determine any conditions which must be satisfied before the Option may be exercised. 
  
 (c)  Form of Consideration.    The Administrator shall determine the acceptable form of consideration for exercising an Option, including the method of payment. In
the case of an Incentive Stock Option, the Administrator shall determine the acceptable form of consideration at the time of grant. Such consideration may consist entirely of: 
  
 (i)  cash; 
  
 (ii)  check; 
  
 (iii)  promissory note; 
  
 (iv)  other Shares which (A) in the case of Shares acquired upon exercise of an option, have been owned by the
Optionee for more than six months on the date of surrender, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the Shares as to which said Option shall be exercised; 
  
 (v)  consideration received by the Company under a cashless exercise program implemented by the Company in
connection with the Plan; 
  
 (vi)  a reduction in the amount of any Company liability to
the Optionee, including any liability attributable to the Optionee’s participation in any Company-sponsored deferred compensation program or arrangement; 
  
 (vii)  any combination of the foregoing methods of payment; or 
  
 (viii)  such other consideration and method of payment for the issuance of Shares to the extent permitted by Applicable Laws. 

 
 10.  Exercise of Option. 
  
 (a)  Procedure for Exercise; Rights as a Shareholder.    Any Option granted hereunder shall be exercisable according to
the terms of the Plan and at such times and under such conditions as determined by the Administrator and set forth in the Option Agreement. Unless the Administrator provides otherwise, vesting of Options granted hereunder shall be tolled during any
unpaid leave of absence. An Option may not be exercised for a fraction of a Share. 
  
 An Option shall be deemed
exercised when the Company receives: (i) written or electronic notice of exercise (in accordance with the Option Agreement) from the person entitled to exercise the Option, and (ii) full payment for the Shares with respect to which the Option is
exercised. Full payment may consist of any consideration and method of payment authorized by the Administrator and permitted by the Option Agreement and the Plan. Shares issued upon exercise of an Option shall be issued in the name of the Optionee
or, if requested by the Optionee, in the name of the Optionee and his or her spouse. Until the Shares are issued (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), no right to
vote or receive dividends or any other rights as a shareholder shall exist with respect to the Optioned Stock, notwithstanding the exercise of the Option. The Company shall issue (or cause to be issued) such Shares promptly after the Option is
exercised. No adjustment will be made for a dividend or other right for which the record date is prior to the date the Shares are issued, except as provided in Section 14 of the Plan. 
 

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 Exercising an Option in any manner shall decrease the number of Shares thereafter
available, both for purposes of the Plan and for sale under the Option, by the number of Shares as to which the Option is exercised. 
  
 (b)  Termination of Relationship as a Service Provider.    Subject to Section 14, if an Optionee ceases to be a Service Provider (but not in the event of an
Optionee’s change of status from Employee to Consultant (in which case an Employee’s Incentive Stock Option shall automatically convert to a Nonstatutory Stock Option on the ninety-first (91st) day following such change of status) or from
Consultant to Employee), such Optionee may, but only within such period of time as is specified in the Option Agreement (but in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise his or
her Option to the extent that Optionee was entitled to exercise it at the date of such termination. In the absence of a specified time in the Option Agreement, the Option shall remain exercisable for three (3) months following the Optionee’s
termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after termination, the Optionee does not exercise his or
her Option within the time specified by the Administrator, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (c)  Disability of Optionee.    If an Optionee ceases to be a Service Provider as a result of the Optionee’s
Disability, the Optionee may, but only within twelve (12) months from the date of such termination (and in no event later than the expiration date of the term of such Option as set forth in the Option Agreement), exercise his or her Option the
extent the Option is vested on the date of termination. If, on the date of termination, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall revert to the Plan. If, after
termination, the Optionee does not exercise his or her Option within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (d)  Death of Optionee.    If an Optionee dies while a Service Provider, the Option may be exercised at any time within
twelve (12) months following the date of death (but in no event later than the expiration of the term of such Option as set forth in the Notice of Grant), by the Optionee’s estate or by a person who acquires the right to exercise the Option by
bequest or inheritance, but only to the extent that the Option is vested on the date of death. If, at the time of death, the Optionee is not vested as to his or her entire Option, the Shares covered by the unvested portion of the Option shall
immediately revert to the Plan. The Option may be exercised by the executor or administrator of the Optionee’s estate or, if none, by the person(s) entitled to exercise the Option under the Optionee’s will or the laws of descent or
distribution. If the Option is not so exercised within the time specified herein, the Option shall terminate, and the Shares covered by such Option shall revert to the Plan. 
  
 (e)  Buyout Provisions.    The Administrator may at any time offer to buy out for a payment in cash or Shares an Option
previously granted based on such terms and conditions as the Administrator shall establish and communicate to the Optionee at the time that such offer is made. 
  
 11.  Stock Purchase Rights. 
  
 (a)  Rights to Purchase.    Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards made outside of the Plan.
After the Administrator determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing or electronically, by means of a Notice of Grant, of the terms, conditions and restrictions related to the offer,
including the number of Shares that the offeree shall be entitled to purchase, the price to be paid, and the time within which the offeree must accept such offer. The offer shall be accepted by execution of a Restricted Stock Purchase Agreement in
the form determined by the Administrator. 
  
 (b)  Repurchase
Option.    Unless the Administrator determines otherwise, the Restricted Stock Purchase Agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s
service with the Company for any reason (including death or Disability). The purchase price for Shares repurchased pursuant to the Restricted Stock Purchase Agreement shall be the original price paid by the purchaser and may be paid by cancellation
of any indebtedness of the purchaser to the Company. The repurchase option shall lapse at a rate determined by the Administrator. 
 

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 (c)  Other
Provisions.    The Restricted Stock Purchase Agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Administrator in its sole discretion. 

 
 (d)  Rights as a Shareholder.    Once the Stock Purchase Right is
exercised, the purchaser shall have the rights equivalent to those of a shareholder, and shall be a shareholder when his or her purchase is entered upon the records of the duly authorized transfer agent of the Company. No adjustment will be made for
a dividend or other right for which the record date is prior to the date the Stock Purchase Right is exercised, except as provided in Section 14 of the Plan. 
  
 12.  Non-Transferability of Options and Stock Purchase Rights.    Unless determined otherwise by the Administrator, an Option or Stock Purchase Right may not be
sold, pledged, assigned, hypothecated, transferred, or disposed of in any manner other than by will or by the laws of descent or distribution and may be exercised, during the lifetime of the Optionee, only by the Optionee. If the Administrator makes
an Option or Stock Purchase Right transferable, such Option or Stock Purchase Right shall contain such additional terms and conditions as the Administrator deems appropriate. 
  
 13.  Formula Option Grants to Non-employee Directors.    Non-employee Directors shall be automatically granted Options in accordance
with the following provisions: 
  
 (a)  All Options granted pursuant to this Section shall
be Nonstatutory Stock Options and, except as otherwise provided herein, shall be subject to the other terms and conditions of the Plan. 
  
 (b)  Each person who first becomes a Non-employee Director, whether through election by the stockholders of the Company, appointment by the Board to fill a vacancy or by changing status from
an Employee Director to a Non-employee Director, shall be automatically granted an Option to purchase 30,000 Shares (the “First Option”) on the date he or she first becomes a Non-employee Director; provided, that an Employee Director who
ceases to be an Employee Director but who remains a Director shall not automatically receive a First Option, if it is determined by the Board that the grant would be inappropriate. 
  
 (c)  Each Non-employee Director shall be automatically granted an Option to purchase 7,500 Shares (a “Subsequent Option”) following each
annual meeting of the stockholders of the Company, if as of such date, he or she is continuing to serve on the Board. 
  
 (d)  The terms of each Option granted pursuant to this Section shall be as follows. 
  
 (i)  The term of the Option shall be five (5) years. 
  
 (ii)  The exercise price per Share shall be 100% of the Fair Market Value per Share on the date of grant of the Option. 
  
 (iii)  The Vesting Commencement Date shall be the dte of grant unless determined otherwise by the Board of Directors. 
  
 (iv)  The Option shall vest and become exercisable over three years as follows. The Option shall vest as to twenty-five percent (25%) of the
Shares subject to the Option on the first anniversary of the Vesting Commencement Date, an additional twenty-five percent (25%) of the Shares subject to the Option to the Option on the second anniversary of the Vesting Commencement Date and the
final fifty percent (50%) of the Shares subject to the Option on the third anniversary of the Vesting Commencement Date. 
  
 14.  Adjustments Upon Changes in Capitalization, Dissolution, Merger or Asset Sale. 
  
 (a)  Changes in Capitalization.    Subject to any required action by the shareholders of the Company, the number of shares of Common Stock covered by each outstanding Option and Stock
Purchase Right, the number of shares of Common Stock covered by First Options and Subsequent Options to be granted under the Plan, the number of shares of Common Stock which have been authorized for issuance under the Plan
 
 

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but as to which no Options or Stock Purchase Rights have yet been granted or which have been returned to the Plan upon cancellation or expiration of an Option or Stock Purchase Right and the
number of shares of Common Stock which may be added to the Plan each fiscal year (pursuant to Section 3), as well as the price per share of Common Stock covered by each such outstanding Option or Stock Purchase Right, shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the
number of issued shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Board, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an Option or Stock Purchase Right. 

 
 (b)  Dissolution or Liquidation.    In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each Optionee as soon as practicable prior to the effective date of such proposed transaction. The Administrator in its discretion may provide for an Optionee to have the
right to exercise his or her Option until ten (10) days prior to such transaction as to all of the Optioned Stock covered thereby, including Shares as to which the Option would not otherwise be exercisable. In addition, the Administrator may provide
that any Company repurchase option applicable to any Shares purchased upon exercise of an Option or Stock Purchase Right shall lapse as to all such Shares, provided the proposed dissolution or liquidation takes place at the time and in the manner
contemplated. To the extent it has not been previously exercised, an Option or Stock Purchase Right will terminate immediately prior to the consummation of such proposed action. 
  
 (c)  Merger or Asset Sale.    Subject to subsection (d), in the event of a merger of the Company with or into another
corporation, or the sale of substantially all of the assets of the Company, each outstanding Option and Stock Purchase Right shall be assumed or an equivalent option or right substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to assume or substitute for the Option or Stock Purchase Right, the Optionee shall fully vest in and have the right to exercise the Option or Stock Purchase Right as to all
of the Optioned Stock, including Shares as to which it would not otherwise be vested or exercisable. If an Option or Stock Purchase Right becomes fully vested and exercisable in lieu of assumption or substitution in the event of a merger or sale of
assets, the Administrator shall notify the Optionee in writing or electronically that the Option or Stock Purchase Right shall be fully vested and exercisable for a period of fifteen (15) days from the date of such notice, and the Option or Stock
Purchase Right shall terminate upon the expiration of such period. For the purposes of this paragraph, the Option or Stock Purchase Right shall be considered assumed if, following the merger or sale of assets, the option or right confers the right
to purchase or receive, for each Share of Optioned Stock subject to the Option or Stock Purchase Right immediately prior to the merger or sale of assets, the consideration (whether stock, cash, or other securities or property) received in the merger
or sale of assets by holders of Common Stock for each Share held on the effective date of the transaction (and if holders were offered a choice of consideration, the type of consideration chosen by the holders of a majority of the outstanding
Shares); provided, however, that if such consideration received in the merger or sale of assets is not solely common stock of the successor corporation or its Parent, the Administrator may, with the consent of the successor corporation, provide for
the consideration to be received upon the exercise of the Option or Stock Purchase Right, for each Share of Optioned Stock subject to the Option or Stock Purchase Right, to be solely common stock of the successor corporation or its Parent equal in
fair market value to the per share consideration received by holders of Common Stock in the merger or sale of assets. 
  
 (d)  Termination Following a Change of Control.    If, at any time within twelve (12) months after a Change of Control, an Optionee’s status as Employee is terminated for any reason
other than Cause or if an Optionee’s status as Director terminates other than upon a voluntary resignation by the Optionee (which shall not deemed voluntary if requested by the acquiring company), the vesting and exercisability of each
outstanding Option or Stock Purchase Right shall be automatically accelerated in full. The Option or Stock Purchase Right shall remain exercisable in accordance with Section 10 and the Option Agreement. 
 

 10 

  
 15.  Date of Grant.    The date of grant of
an Option or Stock Purchase Right shall be, for all purposes, the date on which the Administrator makes the determination granting such Option or Stock Purchase Right, or such other later date as is determined by the Administrator. Notice of the
determination shall be provided to each Optionee within a reasonable time after the date of such grant. 
  
 16.  Amendment and Termination of the Plan. 
  
 (a)  Amendment and Termination.    The Board may at any time amend, alter, suspend or terminate the Plan. 
  
 (b)  Shareholder Approval.    The Company shall obtain shareholder approval of any Plan amendment to the extent
necessary and desirable to comply with Applicable Laws. 
  
 (c)  Effect of Amendment or
Termination.    No amendment, alteration, suspension or termination of the Plan shall impair the rights of any Optionee, unless mutually agreed otherwise between the Optionee and the Administrator, which agreement must be in
writing and signed by the Optionee and the Company. Termination of the Plan shall not affect the Administrator’s ability to exercise the powers granted to it hereunder with respect to Options granted under the Plan prior to the date of such
termination. 
  
 17.  Conditions Upon Issuance of Shares. 
  
 (a)  Legal Compliance.    Shares shall not be issued pursuant to the exercise of an
Option or Stock Purchase Right unless the exercise of such Option or Stock Purchase Right and the issuance and delivery of such Shares shall comply with Applicable Laws and shall be further subject to the approval of counsel for the Company with
respect to such compliance. 
  
 (b)  Investment
Representations.    As a condition to the exercise of an Option or Stock Purchase Right, the Company may require the person exercising such Option or Stock Purchase Right to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without any present intention to sell or distribute such Shares if, in the opinion of counsel for the Company, such a representation is required. 
  
 18.  Inability to Obtain Authority.    The inability of the Company to obtain authority from any
regulatory body having jurisdiction, which authority is deemed by the Company’s counsel to be necessary to the lawful issuance and sale of any Shares hereunder, shall relieve the Company of any liability in respect of the failure to issue or
sell such Shares as to which such requisite authority shall not have been obtained. 
  
 19.  Reservation
of Shares.    The Company, during the term of this Plan, will at all times reserve and keep available such number of Shares as shall be sufficient to satisfy the requirements of the Plan. 
  
 20.  Shareholder Approval.    The Plan shall be subject to approval by the shareholders of the
Company within twelve (12) months after the date the Plan is adopted. Such shareholder approval shall be obtained in the manner and to the degree required under Applicable Laws. 
 

 11Prepared by R.R. Donnelley Financial -- Sublease

  
 EXHIBIT 10.19 
  
 SUBLEASE 
  
 THIS SUBLEASE is made as of
the 30th day of April, 2002, by and between COMPAQ COMPUTER CORPORATION, a Delaware corporation, with an address at 20555 State Highway 249, Houston, Texas 77070 (“Sublandlord”) and NetIQ CORPORATION, a Delaware corporation, with an
address at 3553 N 1st Street, San Jose Ca 95134-1803 (“Subtenant”). 
  
 W I T N E S S E T H 
  

WHEREAS, Sublandlord is the tenant under a certain lease from NWX Partners, Ltd. (“Landlord”) dated May 17, 1997, (such lease, as amended, is hereinafter
referred to as the “Prime Lease”), a true, correct and complete copy of which is attached hereto as Exhibit A. The premises leased to Sublandlord under the Prime Lease are a portion of the building (the “Building”) at
13430 North Freeway, Houston, Texas, which premises are more particularly described in the Prime Lease (the “Leased Premises”); and 
  
 WHEREAS, Subtenant wishes to sublease from Sublandlord a portion of the Leased Premises located on and being the entirety of the 11th and 12th floors of the Building shown on the plan attached hereto as Exhibit B, containing approximately 41,674 rentable square feet (the “Sublet Premises”), and Sublandlord is willing to sublet the Sublet
Premises to Subtenant on the terms and conditions herein contained. 
  
 NOW, THEREFORE, the parties hereto agree as
follows: 
  
 1.    Demise.    Sublandlord hereby subleases the Sublet
Premises to Subtenant and Subtenant hereby sublets the Sublet Premises from Sublandlord subject to the terms and conditions hereinafter stated. 
  
 2.    Term.    The term of this Sublease (the “Sublease Term”) shall commence on June 1, 2002 (the “Commencement Date”) and shall
expire on October 31, 2004, unless sooner terminated as herein provided. As used in this Sublease, the term “Sublease Year” shall mean a 12-month period commencing on the Commencement Date or an anniversary thereof (except that the last
Lease Year shall commence on an anniversary of the Commencement Date and end on the last day of the Sublease Term). Subtenant shall be permitted early access to the Sublet Premises upon receipt by Sublandlord and Subtenant of written consent of the
Landlord to this Sublease, provided that (i) Subtenant shall not conduct business from the Sublet Premises prior to the Commencement Date; and (ii) such entry upon and occupancy of the Sublet Premises shall be subject to all of the terms and
conditions of this Sublease except that no Fixed Rent shall be due or payable on account of such occupancy prior to the Commencement Date. 
  
 3.    Delivery of Sublet Premises.    Sublandlord shall deliver the Sublet Premises on the Commencement Date broom clean and free of occupants and personal property
except that Sublandlord shall leave in place the existing raised floor in the computer facility located on the 11th floor of the Building. 
  
 Subtenant expressly acknowledges that it has inspected the
Sublet Premises, is fully familiar with the physical condition thereof, and agrees to accept them in their “as is” condition. Subtenant acknowledges that, except as expressly set forth herein, Sublandlord has made no representations or
warranties regarding the Sublet Premises or the Building, and that it has relied on no such representations or warranties in accepting the Sublet Premises. Subtenant acknowledges that Sublandlord shall have no
 
 

 
obligation to do any work in or to the Sublet Premises, or to incur any expense in connection therewith, in order to make them suitable and ready for occupancy and use by Subtenant. 

 
 4.    Rent.    Subtenant shall pay to Sublandlord fixed rent (“Fixed
Rent”) without offset, deduction or demand in the amount of $18.50 per square foot of rentable area per Sublease Year, or $770,969.00 per year for each Sublease Year, payable in advance in equal monthly installments of $64,247.42 commencing on
the Commencement Date and continuing on the first day of every month thereafter. Fixed Rent shall be apportioned for any partial calendar month occurring at the beginning or end of the Sublease Term. 
  
 All payments hereunder shall be made at the following address: 
  
 Compaq Computer Corporation 
 20555 State Highway 249 
 Houston, TX 77269-2000 
 Attention: Real Estate Manager 
 MS130109 
  
 or at such other address in the continental
United States as Sublandlord may from time to time designate by written notice to Subtenant. 
  
 Subtenant shall have
no liability or obligation for any Operating Expense reimbursement pursuant to Article 5 of the Prime Lease. 
  
 All
sums which Subtenant agrees to pay under this Sublease other than Fixed Rent, or which Sublandlord pays or incurs as a result of a default by Subtenant, including without limitation interest at the Default Rate of Interest as defined in Section 13,
shall be included within the term “Rent” as used in this Sublease. 
  
 5.    Service
and Utilities.    Subject to the provisions of Sections 10 and 11.d below, services shall be provided by the Landlord in accordance with Sections 7.01 and 7.02 of the Prime Lease. Any usage by Subtenant of HVAC services
outside the days and hours specified in the Prime Lease for such service to the Leased Premises shall be at Subtenant’s sole cost and expense pursuant to Section 7.02 of the Prime Lease. Subtenant shall request such after-hours HVAC service
directly from the Landlord (unless the Landlord refuses to accept such requests from Subtenant, in which event requests shall be made to Sublandlord) and shall make all payments on account thereof to Sublandlord within ten (10) days after written
demand therefor. Sublandlord will not request any additional services under Section 7.02 of the Prime Lease for the Sublet Premises without Subtenant’s consent. 
  
 Except as set forth below, no interruption in any utility service to the Sublet Premises shall give Subtenant any right to terminate this Sublease or shall give rise to any
claim for set-off or any abatement of Rent or of any of Subtenant’s obligations under this Sublease when such interruption results from any cause other than the negligence or willful misconduct of Sublandlord or Sublandlord’s agents or
employees. 
  
 Notwithstanding the foregoing, (a) in the event that Sublandlord is entitled to an abatement of rent
under Section 7.03 of the Prime Lease by reason of Landlord’s failure to deliver essential services to a portion of the Leased Premises which includes some or all of the Sublet Premises, Subtenant shall receive a corresponding abatement of rent
under this Sublease based on the extent to which such failure by Landlord has rendered part or all of the Sublet Premises untenantable, and (b) in the event that Sublandlord would be entitled to exercise a right of self-help with respect to the
Sublet Premises pursuant to Section 7.03 of the
 
 

 2 

 
Prime Lease by reason of Landlord’s failure to deliver essential services thereto, Sublandlord shall, at the written request of Subtenant and at Subtenant’s sole cost and expense,
exercise in a reasonable manner such rights of self-help. 
  
 Subtenant shall not connect to the
Building’s electrical system any equipment which operates in excess of the current capacity of such system as specified in Section 7.01(h) of the Prime Lease without Sublandlord’s and Landlord’s prior written consent. 

 
 6.    Use.    Subtenant shall continuously use and occupy the Sublet Premises,
to the extent permitted by law, for general office use only, and for no other use or purpose. Sublandlord makes no representation or warranty as to the necessity of obtaining any license, permit or approval from any federal, state or municipal
governmental authority for such uses. 
  
 Subtenant shall not conduct any activity on the Sublet Premises, the
Building or the parcel of land upon which the Building is located (the “Land”), which is improper or offensive, which is not permitted under the Prime Lease, or which causes any noise, odor or vibration to be emitted from the Sublet
Premises, the Building or the Land. Subtenant shall comply with (i) the reasonable rules and regulations of the Building and Land as the same may be promulgated and modified by Landlord from time to time, (ii) all applicable laws, statutes,
ordinances, by-laws, regulations, restrictions, and with the requirements of all governmental approvals, licenses and permits, relating to the Sublet Premises, the Building, or the Land (collectively, “Legal Requirements”); provided,
however, that in no event shall Subtenant be required to perform any alterations or additions to the Sublet Premises, the Building or the Land which are required by Legal Requirements for general office use as opposed to any use which is
specifically made of the Sublet Premises (or any portion thereof) by Subtenant, and (iii) the provisions of all insurance policies from time to time in effect with respect to the Sublet Premises, the Building, or the Land (collectively,
“Insurance Requirements”). In addition, Subtenant shall obtain, keep in force, all governmental approvals, licenses and permits required for Subtenant’s specific use of the Sublet Premises. Sublandlord hereby represents and warrants
to Subtenant that, to the best knowledge of Paul W. Morgan, Manager, North American and Latin American Real Estate, Sublandlord has not received notice of the existence of any violation of Legal requirements or Insurance requirements with respect to
the Sublet Premises prior to the date of this Sublease. 
  
 Subtenant shall not use, generate, treat, store, or
dispose of “Hazardous Substances” (as hereinafter defined) on the Sublet Premises or anywhere in the Building or on the Land without giving prior written notification to Sublandlord, including the identity and amounts of the Hazardous
Substances which Subtenant proposes to use, and receiving prior written consent from Sublandlord, which may be withheld or conditioned in Sublandlord’s sole discretion. In all events, Subtenant’s use of Hazardous Substances must be in full
and complete accordance with all Legal Requirements applicable thereto. Subtenant shall indemnify, save harmless, and defend (with counsel reasonably satisfactory to Sublandlord) Sublandlord, its officers, directors, employees, contractors, servants
and agents, from and against all loss, costs, damages, claims, proceedings, demands, liabilities, penalties, fines and expenses, including without limitation reasonable attorneys’ fees, consultants’ fees, litigation costs, and cleanup
costs, asserted against or incurred by Sublandlord, its officers, directors, employees, contractors, servants and agents at any time and from time to time resulting from the presence of any Hazardous Substances in the Building or on the Land during
the Sublease Term arising after Subtenant’s taking possession of the Sublet Premises and resulting from (a) the negligence or willful misconduct of Subtenant, its officers, directors, employees, contractors, servants and agents, or (b)
Subtenant’s generation, storage, treatment, handling, transportation, disposal or release of any Hazardous Substances at or near the Building or the Land, or (c) the violation of any applicable law governing Hazardous Substances by Subtenant,
its officers, directors, employees, contractors, servants or agents. Sublandlord shall indemnify, save harmless, and defend (with counsel
 
 

 3 

 
reasonably satisfactory to Subtenant) Subtenant, its officers, directors, employees, contractors, servants and agents, from and against all loss, cost, damages, claims, proceedings, demands,
liabilities, penalties, fines and expenses, including without limitation reasonable attorneys’ fees, consultants’ fees, litigation costs, and clean-up costs, asserted against or incurred by Subtenant, its officers, directors, employees,
contractors, servants and agents at any time and from time to time resulting from the presence of any Hazardous Substances in the Building or on the Land during the Sublease Term and resulting from (a) the negligence or willful misconduct of
Sublandlord, its officers, directors, employed, contractors, servants and agents, or (b) Sublandlord’s generation, storage, treatment, handling, transportation, disposal or release of any Hazardous Substances at or near the Building or the
Land, or (c) the violation of any applicable law governing Hazardous Substances by Sublandlord, its officers, directors, employees, contractors, servants or agents. As used in this Sublease, “Hazardous Substances” shall mean any chemical,
substance, waste, material, gas or emission which is deemed hazardous, toxic, a pollutant, or a contaminant under federal, state or local statute, law, ordinance, rule or regulation, nor or hereafter in effect. “Hazardous Substances”
include but are not limited to petroleum, petroleum products, asbestos, chlorofluorocarbons (CFCs), radon gas and polychlorinated biphenyls (PCBs). Upon request by Sublandlord from time to time, Subtenant shall certify in writing to Sublandlord that
no portion of the Sublet Premises, the Building or the Land has been or is then being used by Subtenant or by anyone claiming under Subtenant for the use, generation, treatment, storage, or disposal of Hazardous Substances and that to the current,
actual knowledge of Subtenant, no such Hazardous Substances are present in or on the Sublet Premises except those set forth in such certification. The indemnities and duties to defend set forth in this Section shall survive the expiration or earlier
termination of this Sublease. 
  
 7.    Assignment and
Subletting.    Except as expressly set forth below, Subtenant shall not assign, transfer, mortgage or pledge this Sublease, nor sublet all or any part of the Sublet Premises, or enter into any other license or occupancy
arrangement, whether voluntary or involuntary or by operation of law (collectively a “Transfer”), without Sublandlord’s prior written consent, which consent shall not be unreasonably withheld, delayed or conditioned. 

 
 Notwithstanding the foregoing, Subtenant shall have the right, without the consent of Sublandlord, to sublease all or any
portion of the Sublet Premises or to assign its rights under this Sublease (a) to any Affiliate (using the definition set forth in the Prime Lease) of Subtenant, (b) to any successor entity to Subtenant created by merger, consolidation, liquidation
or reorganization, or (c) to any entity which acquires ownership of all or substantially all of the assets of Subtenant, whether or not there is a change in Subtenant’s name. 
  
 No Transfer, nor any collection of rent by Sublandlord from any person or entity other than Subtenant, shall relieve Subtenant of its obligations to fully observe and
perform the terms, covenants, and conditions hereof. No consent by Sublandlord in a particular instance shall be deemed a waiver of the obligation to obtain Sublandlord’s consent in another instance. Subtenant shall pay to Sublandlord as
received fifty percent (50%) of any excess of amounts received pursuant to an assignment, subletting, license or other occupancy arrangement in excess of the Rent due hereunder, net of any commissions or other expenses incurred by Subtenant in
connection therewith. For the purposes of this Sublease, the transfer of a majority ownership interest in Subtenant shall be deemed a Transfer. 
  
 8.    Insurance.    Subtenant shall maintain in full force and effect during the Sublease Term general liability insurance with a limit of not less than
$1,000,000 per occurrence for bodily injury and property damage (which coverage may be provided by an umbrella excess liability insurance policy), under which Sublandlord and Landlord are named as additional insureds as to the indemnities and
obligations expressly assumed by Subtenant hereunder. Such policy shall include Premises and Operations, Products and Completed Operations, Contractual Liability, and Personal and Advertising Injury. In addition,
 
 

 4 

 
Subtenant shall obtain and maintain in force throughout the Sublease Term, “all-risk” property insurance upon the contents of the Sublet Premises on a full replacement cost basis. Such
policies shall be issued by a responsible insurance company rated no less than “A-:VII” by A.M. Best, or the financial equivalent thereof, and which is authorized to do business in the state in which the Leased Premises are located.
Subtenant shall deliver certificates of such insurance to Sublandlord before the Commencement Date and thereafter not less than fifteen (15) days prior to each policy renewal, providing evidence that the required insurance coverage is in effect
throughout the Sublease Term. All certificates of insurance shall be mailed to Compaq Computer Corporation, 20555 State Highway 249, Houston, TX 77269-2000, Attention: Real Estate Manager, MS130109. Subtenant’s insurance policies shall provide
that they may not be cancelled, non-renewed, or materially changed so as not to comply with the foregoing insurance provisions without thirty (30) days’ prior written notice to Sublandlord. Sublandlord and Subtenant each waive all claims and
rights against the other and their respective officers, directors, employees, contractors, servants and agents, for any damage to or destruction of real or personal property of Sublandlord or Subtenant, regardless of cause or origin and regardless
of any proceeds or recoveries from any insurance policies, and all insurance policies required of Subtenant hereunder shall include a waiver of its right of subrogation against Sublandlord. All such insurance shall be obtained at Subtenant’s
sole cost and expense. Sublandlord shall have no responsibility or liability for any loss of or damage to personal property or trade fixtures of Subtenant, damage to all such property and fixtures being Subtenant sole risk. IT IS THE EXPRESS
INTENTION OF SUBLANDLORD AND SUBTENANT THAT THE WAIVERS CONTAINED IN THIS SECTION 8 APPLY TO ALL MATTERS DESCRIBED HEREIN, INCLUDING, WITHOUT LIMITATION, ANY OF THE SAME THAT ARE CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE OF SUBLANDLORD,
SUBTENANT, OR THEIR RESPECTIVE OFFICERS, DIRECTORS, EMPLOYEES, CONTRACTORS, SERVANTS AND AGENTS. 
  
 In the event
that Sublandlord receives a notice of cancellation of such insurance policy, Sublandlord may, if such cancellation is not remedied within five (5) days after written notice from Sublandlord to Subtenant, then, in addition to and without thereby
waiving any other remedies therefor, either (i) pay the premiums necessary to prevent such cancellation or (ii) obtain substitute insurance and bill Subtenant therefor. Subtenant shall reimburse Sublandlord therefor by paying such amount to
Sublandlord, as part of Rent, within ten (10) days after demand by Sublandlord. 
  
 9.    Indemnification.    To the maximum extent that this agreement may be made effective according to law, but subject to the waiver of subrogation in Section 8 above, Subtenant agrees
that it will defend and indemnify Sublandlord and save Sublandlord harmless from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation, attorneys’ fees and
expenses) imposed upon or incurred by or asserted against Sublandlord by reason of any accident, injury to, or death of persons, or damage to or loss of property other than that of Sublandlord and Subtenant, in or about the Sublet Premises, during
the Sublease Term or such other period of time as Subtenant is in occupancy or possession of all or any portion of the Sublet Premises, unless caused by the negligence or willful misconduct of Sublandlord, or its officers, directors, employees,
contractors, servants or agents. In case any action, suit or proceeding is brought against Sublandlord by reason of any such occurrence, Subtenant, upon Sublandlord’s request, shall at Subtenant’s expense, cause such action, suit or
proceeding to be resisted and defended by counsel reasonably satisfactory to Sublandlord. To the maximum extent that this agreement may be made effective according to law, but subject to the waiver of subrogation in Section 8 above, Sublandlord
agrees that it will defend and indemnify Subtenant and save Subtenant harmless from and against all liabilities, obligations, claims, damages, penalties, causes of action, costs and expenses (including, without limitation, attorneys’ fees and
expenses) imposed upon or incurred by or asserted against Subtenant by reason of any accident, injury to, or death of persons, or damage to or loss of property other than that of Sublandlord and Subtenant, in or about that portion of the
 
 

 5 

 
Leased Premises other than the Sublet Premises, unless caused by the negligence or willful misconduct of Subtenant, or its officers, directors, employees, contractors, servants or agents. In case
any action, suit or proceeding is brought against Subtenant by reason of any such occurrence, Sublandlord, upon Subtenant’s request, shall at Sublandlord’s expense, cause such action, suit or proceeding to be resisted and defended by
counsel reasonably satisfactory to Subtenant. The provisions of this Section shall survive the expiration or earlier termination of this Sublease. 
  
 10.    Maintenance and Services.    Subtenant hereby agrees that it is relying directly on Landlord’s obligations under the Prime Lease for all
maintenance, services and repairs to the Sublet Premises. If Landlord shall default in any of its obligations to Sublandlord under the Prime Lease, Sublandlord shall reasonably cooperate with Subtenant, upon written request by Subtenant and
at Subtenant’s sole cost and expense, in enforcing Sublandlord’s rights against Landlord under the Prime Lease; provided, however, that if Landlord has also defaulted in such obligations with regard to the remainder of the Leased Premises,
any correspondence, action or proceeding sent or brought by Sublandlord against Landlord shall also, at no cost to Subtenant, seek to require Landlord to resume such services with regard to the Sublet Premises. 
  
 In addition to performing all other obligations of Sublandlord under the Prime Lease relating to the repair and maintenance of the Sublet
Premises, Subtenant shall, at its expense, maintain the interior non-structural portions of the Sublet Premises in good order and condition, except for reasonable wear and tear and damage caused by fire or other casualty, taking, default by
Sublandlord hereunder, or by any negligent act or omission or willful act or omission by Sublandlord, its officers, directors, employees, contractors, servants or agents. 
  
 11.    Prime Lease. 
  
 a.    Incorporation of Prime Lease.    Except as otherwise expressly provided herein, Sublandlord grants to Subtenant, to share in common with Sublandlord, all of Sublandlord’s
rights, benefits, and interests with respect to the Sublet Premises, and Subtenant agrees to accept from Sublandlord and hereby assumes all of Sublandlord’s obligations and burdens under the Prime Lease with respect to the Sublet Premises, as
if all of such rights and obligations were set forth herein in their entirety, provided that the terms and conditions hereof shall be controlling whenever the terms and conditions of the Prime Lease are contradictory to or inconsistent with the
terms and conditions hereof, and provided further that those provisions of the Prime Lease which are protective and for the benefit of the Landlord shall in this Sublease be deemed to be protective and for the benefit of the Landlord and
Sublandlord. Notwithstanding the foregoing sentence, the following provisions of the Prime Lease are not incorporated into this Sublease and Subtenant shall have no rights or obligations with respect to the subject matter thereof: Section 2.02;
Article 3; the second paragraph of Section 7.05; Section 13.01; the second paragraph of Section 14.01; Section 16.02; Section 17.09; Section 17.10; Section 17.22; Section 17.25; Exhibit “D”; Exhibit “G”; Exhibit “H”;
Exhibit “J”; Exhibit “K”; Exhibit “L”; Exhibit “M”; Exhibit “N”; Exhibit “O”; and Exhibit “R”. 
  
 Subtenant shall have no liability or obligation under the Prime Lease with regard to (a) any portion of the Leased Premises other than the Sublet Premises, or (b) any
provisions of the Prime Lease, including provisions thereof involving the payment of rent or additional rent, which are replaced or superceded by the terms and provisions of this Sublease, or which are otherwise inapplicable to Subtenant and the
Sublet Premises. Without limiting the generality of the foregoing, Subtenant shall have no liability or obligation under the following provisions of the Prime Lease: Article 4; Article 5; Section 9.02; the last sentence of 10.01; and Exhibit
“D”. 
  
 Subtenant represents that it has read and is familiar with the terms of the Prime Lease.

 

 6 

  
 b.    Performance of Prime
Lease.    Subtenant covenants and agrees faithfully to observe and perform all of the terms, covenants and conditions of the Prime Lease on the part of Sublandlord to be performed with respect to the portion of the Leased
Premises thereunder comprising the Sublet Premises, and neither to do nor cause to be done, nor suffer nor permit any act or thing to be done, which would or might cause the Prime Lease to be canceled, terminated, forfeited or surrendered, or which
would or might make Sublandlord liable for any damages, claims or penalties. Sublandlord covenants and agrees faithfully to observe and perform all of the terms, covenants and conditions of the Prime Lease on the part of the Sublandlord to be
performed with respect to the remainder of the Leased Premises, and neither to do nor cause to be done, nor suffer nor permit any act or thing to be done, which would or might cause the Prime Lease to be cancelled, terminated, forfeited or
surrendered, or which would or might make Subtenant liable for any damages, claims or penalties. Sublandlord represents and warrants to Subtenant that Sublandlord did not exercise its termination option set forth in Exhibit “J” of the
Prime Lease. Sublandlord shall not exercise any further or additional termination options or rights with regard to the Prime Lease, other than in consequence of a casualty or taking, without Subtenant’s prior, written consent (and in connection
with a termination by Sublandlord in consequence of a casualty or taking, Sublandlord shall first consult with (but shall not be required to obtain the approval of) Subtenant). 
  
 c.    Consents.    Sublandlord shall not be required to give any consent required or permitted under the terms of this
Sublease with respect to any matter on which the Prime Lease requires the consent of Landlord until it has first obtained the written consent of the Landlord with respect to such matter. Upon written request by Subtenant, Sublandlord agrees to use
reasonable efforts (not involving the payment of money, unless Subtenant pays such money) to obtain such consent of the Landlord in a timely manner. 
  
 d.    No Sublandlord Obligation.    Except as otherwise specifically provided herein: (a) Sublandlord shall not have any obligation to construct,
maintain, alter, restore or repair the Sublet Premises, the Building, or any parking area or other facility or improvement appurtenant thereto or to provide Subtenant with any service of any kind or description whatsoever, (b) Sublandlord shall not
be deemed to have made any representation or warranty made by Landlord in the Prime Lease, and shall not be liable to Subtenant for any breach of any such representation or warranty, and (c) Sublandlord shall not be responsible for the performance
of Landlord’s obligations under the Prime Lease or be liable in damages or otherwise for any negligence of Landlord or for any damage or injury suffered by Subtenant as a result of any act or failure to act by Landlord or any default by
Landlord in fulfilling its obligations under the Prime Lease. Upon written request by Subtenant, Sublandlord agrees to use reasonable efforts (not involving the payment of money, unless Subtenant pays such money) to cause Landlord to perform its
obligations under the Prime Lease in a timely manner; provided, however, that if Landlord has also defaulted in such obligations with regard to the remainder of the Leased Premises, any correspondence, action or proceeding sent or brought by
Sublandlord against Landlord shall also, at no cost to subtenant, seek to require Landlord to cure such default with regard to the Sublet Premises. Subtenant and Sublandlord each hereby waives all claims for consequential damages against the other
arising out of any breach or failure to perform or observe the requirements and obligations created by this Sublease except with respect to claims by Sublandlord against Subtenant described in Section 28(b) below. 
  
 e.    Termination.    If the Prime Lease is terminated pursuant to any provision of the
Prime Lease or otherwise, (i) this Sublease shall terminate simultaneously therewith, and (ii) any unearned Rent paid in advance shall be refunded to Subtenant unless such termination was the result of a breach by Subtenant of any term, covenant or
condition of this Sublease. 
  
 12.    No Alterations.    Subtenant
shall make no alterations, additions or improvements to the Sublet Premises or to any portion of the Building without on each occasion first obtaining (i) the prior
 
 

 7 

 
written consent of Sublandlord, which consent shall not be unreasonably withheld, delayed or conditioned, and (ii) when required by the terms of the Prime Lease, the prior written consent of the
Landlord. Upon written request by Subtenant, Sublandlord agrees to use reasonable efforts (not involving the payment of money, unless Subtenant pays such money) to obtain such consent of the Landlord, when required under the Prime Lease, in a timely
manner. All work shall be done in accordance with the terms and conditions of the Prime Lease and all Legal Requirements and Insurance Requirements. 
  
 13.    Defaults and Remedies.    The occurrence of any of the following shall constitute an “Event of Default” hereunder: (i) if Subtenant fails
to pay any Rent when due and such failure continues for five (5) days after written notice of such failure, provided, however, that Subtenant shall not be entitled to such notice if Sublandlord has given notice to Subtenant of two (2) or more
previous such failures within a calendar year, in which event for the remainder of such calendar year such failure shall constitute a default hereunder upon the expiration of five (5) days after such payment was due, or (ii) if Subtenant fails to
perform or observe any of the terms of this Sublease other than those requiring the payment of Rent and such failure continues for fifteen (15) days after Sublandlord gives written notice of said failure or if such failure reasonably requires more
than fifteen (15) days to remedy, Subtenant has not commenced efforts to remedy such failure within such fifteen (15) day period and thereafter exercised diligent and continuous efforts to bring such remedy to a conclusion; provided,
however, that if the grace period for such default provided to Sublandlord under the Prime Lease is shorter than the foregoing, the length of Subtenant’s grace period shall be one-half of Sublandlord’s grace period; or (iii) if the
subleasehold hereby created shall be taken on execution, or by other process of law, or if any assignment shall be made of Subtenant’s property for the benefit of creditors, or if a receiver, guardian, conservator, trustee in bankruptcy or
similar officer shall be appointed to take charge of all or any part of Subtenant’s property by a court of competent jurisdiction, or if a petition is filed by Subtenant under any bankruptcy or insolvency law, or if a petition is filed against
Subtenant under any bankruptcy law and the same shall not be dismissed within sixty (60) days from the date upon which it is filed; or (iv) the occurrence, with respect to Subtenant, of any of the events described in Section 15.01(d), (e) or (f) of
the Prime Lease. 
  
 If an Event of Default occurs, Sublandlord may at its option immediately or at any time
thereafter exercise any one or more of the remedies provided in the Prime Lease with respect to a default thereunder by Sublandlord. Upon termination of this Sublease, Subtenant shall surrender the Sublet Premises to Sublandlord in accordance with
the terms of this Sublease. Subtenant’s liability hereunder shall survive such termination. 
  
 If an Event of
Default occurs, Sublandlord shall have the right, but not the obligation, without the necessity of terminating this Sublease, to enter the Sublet Premises and perform any of Subtenant’s obligations notwithstanding that no specific provision for
such substituted performance by Sublandlord is made in this Sublease. All sums so paid by Sublandlord, and all costs and expenses incurred by Sublandlord in connection with the performance of Subtenant’s obligations, plus interest thereon at
the rate of eighteen percent (18%) per annum (or, if less, the maximum rate of interest permitted at such time by law), shall be deemed part of Rent and shall be payable to Sublandlord immediately upon demand. 
  
 The rights and remedies granted to Sublandlord and Subtenant herein are cumulative and in addition to any others Sublandlord may be
entitled to at law or in equity. 
  
 In the event of any controversy, claim or dispute between Sublandlord and
Subtenant affecting or relating to the subject matter or performance of the rights, duties and obligations under this Sublease, the prevailing party shall be entitled to recover from the nonprevailing party all of the prevailing party’s
reasonable expenses, including, without limitation, attorneys’ fees, accountants’ fees, consultants’ fees, court costs and interest. 
 

 8 

  
 All sums not paid by Subtenant when due hereunder (regardless of whether or not
the applicable grace period has expired) shall bear interest at a rate equal to the lesser of (i) 1-1/2% per month or (ii) the highest rate permitted by law (the “Default Rate of Interest”), which interest shall be payable to Sublandlord
as part of Rent hereunder immediately upon demand. 
  
 In the event of any default or breach by Sublandlord under
this Sublease, Subtenant shall have identical rights and remedies with regard to this Sublease as Sublandlord has with regard to the Prime Lease pursuant to Section 15.07 of the Prime Lease except that Subtenant shall not be entitled to exercise any
right of self-help. 
  
 14.    Surrender.    Upon the expiration or
earlier termination of the Sublease Term, Subtenant shall surrender the Sublet Premises free and clear of all tenants and occupants, and in good order and condition, reasonable wear and tear and damage by casualty or taking only excepted. All
alterations, additions and improvements made by Subtenant shall remain part of the Sublet Premises and shall not be removed unless Sublandlord so requests such removal by notice to Subtenant at least thirty (30) days prior to the expiration or
earlier termination date. Subtenant shall repair any damage to the Sublet Premises caused by the removal of its property. Any property of Subtenant not removed at or prior to the expiration or within fifteen (15) days after any earlier termination
of the Sublease Term may be removed and stored or disposed of by Sublandlord as it deems appropriate in its sole discretion. Subtenant agrees to reimburse Sublandlord for all of Sublandlord’s costs resulting from such removal and storage or
disposition. 
  
 15.    Notices.    All notices relating to this
Sublease or the Sublet Premises shall be in writing and addressed, if to Subtenant, to the Sublet Premises, with a copy to Jonathan K. Newsome, Fulbright & Jaworski, L.L.P., 1301 McKinney, Suite 5100, Houston, Texas 77010-3095, and to Patrick
Bryant, NetIQ Corporation, 851 SW 6th Avenue, Suite 1200, Portland, Oregon 92704 or to such other address
in the continental United States as Subtenant shall designate in writing; and if to Sublandlord, to: Compaq Computer Corporation, 20555 State Highway 249, Houston, TX 77269-2000, Attention: Real Estate Manager, MS130109, with a copy to Compaq
Computer Corporation, 305 Rockrimmon Blvd., South, Colorado Springs, CO 80919-2302, Attention: Lease Administrator, MS: CXO3-1/D12, or to such other address in the continental United States as Sublandlord shall designate in writing. No notice from
Subtenant to Landlord shall be effective as to Sublandlord unless Subtenant delivers a copy of such notice in the manner set forth in this section to Sublandlord simultaneously with delivery of such notice to Landlord. Any notice shall be deemed
duly given (i) when delivered by hand, if so delivered and a receipt obtained, or (ii) four (4) days after being deposited with the U.S. Postal Service addressed to such address, postage prepaid, certified mail, return receipt requested, or (iii)
the next business day after being delivered to an overnight courier with acceptance signature required. 
  
 16.    Effect.    This Sublease sets forth the entire agreement of the parties hereto with respect to the Sublet Premises and shall be binding upon the parties hereto and their
respective successors and assigns. 
  
 17.    Applicable Law.    This
Sublease shall be governed by and construed in accordance with the laws of the state in which the Sublet Premises are located. 
  
 18.    Modification, etc.    Neither this Sublease nor any provision hereof may be waived, modified, amended, discharged or terminated, except by an instrument in writing signed by both
parties. 
  
 19.    Severability.    If any term or provision of this
Sublease or the application thereof to any person or circumstance shall to any extent be held invalid or unenforceable, the remainder of this Sublease or the application of such term or provision to other persons or circumstances shall not be
affected thereby,
 
 

 9 

 
and each term and provision of this Sublease shall be valid and enforceable to the fullest extent permitted by law. 
  
 20.    No Waiver.    No failure by Sublandlord or Subtenant to insist upon the strict performance of any term hereof or to
exercise any right, power or remedy consequent upon a breach thereof, and no acceptance of full or partial Rent by Sublandlord during the continuance of such breach, shall constitute a waiver of any such breach or of any such term.
Sublandlord’s consent in one instance hereunder shall not relieve Subtenant of the requirement of obtaining Sublandlord’s consent in any other instance. 
  
 21.    Broker.    Sublandlord shall be responsible for paying the brokerage commission due to Cushman & Wakefield of
Texas, Inc. (the “Broker”) in connection with this Sublease. Subtenant and Sublandlord each represents and warrants to the other that it has not dealt with any broker or agent in connection with this Sublease other than the Broker, and it
shall indemnify, defend (with counsel reasonably satisfactory to the indemnified party) and hold the other party hereto harmless from and against all claims, liabilities, losses, damages, costs and expenses arising from a breach of such
representation and warranty. 
  
 22.    Mechanics’
Liens.    Subtenant shall not cause or permit any liens for labor or materials to attach to the Sublet Premises, the Building or the Land as a result of any work performed by or on behalf of Subtenant, and shall immediately
discharge any such liens which may so attach. 
  
 23.    Confidentiality.    Except as otherwise required by Legal Requirements or order of court, all terms and conditions of this Sublease shall be kept confidential by all parties and
shall not be disclosed without the consent of the other party. 
  
 24.    Security
Deposit.    Upon the execution of this Sublease, Subtenant will pay to Sublandlord the sum of $64,247.42 (the “Security Deposit”) as security for the punctual performance of each and every obligation of Subtenant
under this Sublease. Sublandlord may commingle such amount with Sublandlord’s other funds to the extent permitted by applicable law, and no interest shall be due thereon. Sublandlord may use the Security Deposit to cure any default by
Subtenant, and Subtenant shall immediately reimburse Sublandlord, on demand, the amount so expended. Sublandlord may assign the Security Deposit to any successor holder of the Sublandlord’s interest under the Prime Lease, and thereafter
Sublandlord shall have no further responsibility therefor. The Security Deposit or the remaining portion thereof shall be refunded to Subtenant upon the expiration or earlier termination of the Sublease Term provided that Subtenant is not then in
default hereunder. 
  
 25.    Waiver of Lien.    Sublandlord
irrevocably and unconditionally waives any and all liens that would or might otherwise serve to secure the performance by Subtenant of its obligations under this Sublease. Sublandlord shall, from time to time, execute whatever further or additional
documentation is reasonably requested by Subtenant or any lender proposing to lend funds to Subtenant for the limited purpose of evidencing or confirming the waiver contained in this Section 25. 
  

26.    Right of First Offer.    In the event that at any time during the Sublease Term Sublandlord makes a final
determination to vacate for the remainder of the term of the Prime Lease all or any portion of the Leased Premises on the 10th floor of the Building, and Sublandlord does not wish to or is not able to surrender such space to the Landlord, Sublandlord shall so notify Subtenant and Subtenant shall have a right of first offer to sublease such space
subject to the provisions of this Section. 
  
 Sublandlord shall give written notice to Subtenant (the “Offer
Notice”) of the space which will be available for sublease by Subtenant (the “Offer Space”) prior to listing such space for sublease with a broker or otherwise offering it for sublease to, or entering into a sublease of it to, any
other party.
 
 

 10 

 
Sublandlord shall specify in the Offer Notice the terms (the “Offer Terms”) upon which Sublandlord is willing to sublease the Offer Space to Subtenant, which shall include: (i) a term
coterminous with this Sublease, (ii) the rent per rentable square foot of area in the Offer Space (which amount shall be (A) for Offer Notices given prior to May 1, 2003, an amount equal to the rent then payable hereunder with respect to the Sublet
Premises initially subleased by Subtenant hereunder, and (B) for Offer Notices given on or after May 1, 2003, such amount as Sublandlord reasonably determines to be fair market rent for the Offer Space for the then-remaining Sublease Term), and
(iii) such other terms and conditions as determined by Sublandlord in its sole discretion. Provided that the “Offer Conditions” (as hereafter defined) are then satisfied, Subtenant shall have the right to sublease all (but not less than
all) of the Offer Space upon the Offer Terms by providing its written unconditional acceptance of the offer set forth in the Offer Notice to Sublandlord within ten (10) days after Sublandlord gives the Offer Notice to Subtenant. 

 
 If (a) within ten (10) days after Sublandlord gives the Offer Notice to Subtenant, Subtenant does not unconditionally accept
the Offer as to all of the Offer Space, or (b) if Subtenant accepts the Offer as aforesaid but does not upon receipt from Sublandlord of an amendment to this Sublease for the subject space (an “Offer Space Sublease Amendment “) conforming
to the provisions of this Section and making no other changes to this Sublease, execute and deliver such Offer Space Sublease Amendment within fifteen (15) days after receipt thereof from Sublandlord, then Sublandlord shall be free to rent all or
any portion of the Offer Space to any party upon such terms and conditions as Sublandlord may elect in its sole discretion provided that such terms and conditions are not materially more favorable to such third party than the Offer Terms, and
Subtenant’s rights under this Section with respect to the space described in the Offer Notice shall be terminated and of no further force or effect. Expiration or termination of this Sublease shall terminate all obligations of Sublandlord and
all rights of Subtenant under this Section. 
  
 If Subtenant exercises its right of first offer in accordance with
the provisions of this Section and gives the notice to Sublandlord and delivers the Offer Space Sublease Amendment to Sublandlord within the time periods set forth above, then the Offer Space shall become subject to all of the terms of this
Sublease; provided, however, that to the extent to which the terms contained in the Offer Notice are inconsistent with any of the terms of this Sublease, the terms of the Offer Notice shall apply to the Offer Space. If Subtenant so exercises
the right to sublease set forth in this Section, Sublandlord shall deliver the Offer Space to Subtenant free of occupants and in broom clean condition, on the date set forth in the Offer Terms. Time is of the essence with respect to the provisions
of this Section. 
  
 As used herein the term “Offer Conditions” shall mean that (a) (i) the original
Subtenant named in the preamble to this Sublease, and/or (ii) its successor in interest (as approved by Sublandlord as provided in this Sublease) to the entire subtenant’s interest under this Sublease, and/or (iii) an affiliate of such original
named Subtenant or such an approved successor is then collectively occupying the entire Sublet Premises (except for such portion, if any, as is then occupied by a firm with such original named Subtenant or approved successor or affiliate then
maintains a material business relationship), (b) no default of Subtenant shall exist and be continuing at the time Sublandlord provides Subtenant with the Offer Notice or at the time of acceptance of the offer set forth in the Offer Notice by
Subtenant, and (c) Subtenant’s net worth shall not be materially less at the time of such offer than as of the date of this Sublease. 
  
 27.    Consent of Landlord.    The effectiveness of this Sublease shall be conditioned upon the receipt of written consent of the Landlord to this Sublease in form and content
acceptable to Sublandlord. All costs and expenses charged by Landlord to Sublandlord in connection with its review of this Sublease, up to but not exceeding $2,500.00, shall be paid by Subtenant, regardless of whether Landlord consents thereto.

 

 11 

  
 28.    Additional Provisions. 
  
 (a)    Sublandlord and Subtenant each hereby represents and warrants to the other that (i) it has the full right and
authority to enter into this Sublease and (ii) the person executing this Sublease on its behalf has been authorized to do so. 
  
 (b)    In the event that Subtenant fails to vacate the Sublet Premises upon the expiration or earlier termination of the Sublease Term, Subtenant shall indemnify, defend (with counsel reasonably satisfactory to
Sublandlord) and hold Sublandlord harmless from and against all claims, liabilities, losses, damages, costs and expenses arising out of or relating to such failure on the part of Subtenant so to vacate, including without limitation, all claims of
Landlord under the Prime Lease or otherwise. 
  
 (c)    Subtenant shall have the same rights as
Sublandlord to the use of building risers and the installation and use of rooftop antenna(e), which rights shall, in all cases, be exercised (i) subject to the prior exercise of any or all of such rights by Sublandlord or any other party to whom
Sublandlord has granted such rights, (ii) subject to the prior written approval of Sublandlord, which shall not be unreasonably withheld, delayed or conditioned, and of Landlord, (iii) at Subtenant’s sole cost and expense, and (iv) in
accordance with the provisions of the Prime Lease and this Sublease. Subject to the prior exercise of any or all of such rights by Sublandlord and any party to whom Sublandlord has granted such rights, all of which shall be disclosed by Sublandlord
to Subtenant in writing contemporaneously with the execution of this Sublease, the use of building risers and installation and use of rooftop equipment granted under the Prime Lease shall be shared by Sublandlord and Subtenant on a pro rata basis,
based on the square footage of the Leased Premises and the Sublet Premises. 
  
 (d)    Subtenant,
on paying the Rent and keeping and performing the conditions and covenants herein contained, shall and may peaceably and quietly enjoy the Sublet Premises for the Sublease Term, subject to all applicable laws and ordinances, applicable insurance
requirements and regulations, and the provisions of the Prime Lease and this Sublease. 
  
 IN WITNESS WHEREOF, this
Sublease has been executed under seal as of the date first written above. 
  
 
	 Sublandlord:
  
 COMPAQ COMPUTER
CORPORATION
 
	 
	 By:
 	 	      
 

	  	 	 Name:
  
 Title:
 

 
  
  
 
	 Subtenant:
  
 NetIQ
CORPORATION
 
	 
	 By:
 	 	      
 

	  	 	 Name:  James A. Barth
  
 Title:  CFO
 

 
 

 12

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