SmartUpdate installs two repositories on the Security Management server:
* License & Contract Repository, which is stored on all platforms in the directory $FWDIR\conf\.
* Package Repository, which is stored:
- on Windows machines in C:\SUroot.
- on UNIX machines in /var/suroot.
The Package Repository requires a separate license, in addition to the license for the Security Management server. This license should stipulate the number of nodes that can be managed in the Package Repository.
Reference: https://sc1.checkpoint.com/documents/R76/CP_R76_Installation_and_Upgrade_Guide- webAdmin/13128.htm#o13527

Explanation
Office Mode enables a Security Gateway to assign internal IP addresses to SecureClient users. This IP address will not be exposed to the public network, but is encapsulated inside the VPN tunnel between the client and the Gateway. The IP to be used externally should be assigned to the client in the usual way by the Internet Service provider used for the Internet connection. This mode allows a Security Administrator to control which addresses are used by remote clients inside the local network and makes them part of the local network. The mechanism is based on an IKE protocol extension through which the Security Gateway can send an internal IP address to the client.

Reference: https://sc1.checkpoint.com/documents/R77/CP_R77_VPN_AdminGuide/html_frameset.htm?topic=documents/R77/CP_R77_VPN_AdminGuide/13894