Document:

exv10w23

Exhibit 10.23

SUBLEASE AGREEMENT

     This Sublease Agreement (this “Sublease”) is made as of the 25th day of June, 2008
(the “Effective Date”) between DIECA COMMUNICATIONS INC., a Virginia corporation (“Tenant”), and
K12 INC., a Delaware corporation (“Subtenant”).

R
E C I T A L S:

     A. By a certain Deed of Lease dated July 8, 2002, made between TST Woodland Funding I, L.L.C.
(“Original Landlord”), and Tenant, as amended pursuant to the First Amendment To Deed of Lease (the
“First Amendment”) dated March 31, 2005 by ACP/300 Corporate Park Drive, LLC, a Delaware limited
liability company, successor in interest to Original Landlord (the “Master Landlord”) and Tenant
(collectively, the “Master Lease”), a copy of which is attached hereto as Exhibit A, the Master
Landlord leased to Tenant a portion of the property located at 2300 Corporate Park Drive in
Herndon, Virginia (the “Master Premises”).

     B. Tenant desires to sublet to Subtenant and Subtenant desires to sublet from Tenant a portion
of the Master Premises. Specifically, Subtenant desires to sublet from Tenant approximately 6,192
rentable square feet on the fourth (4th) floor of the building (the “Subleased
Premises”), a copy of the floor plan detailing the Subleased Premises is attached hereto as Exhibit
B, per the terms and conditions contained herein. Such Premises shall not be remeasured by Tenant
during the Term, and if remeasured by Master Landlord, in no event shall Subtenant’s costs
associated with the rentable square footage increase or decrease.

          NOW, THEREFORE, in consideration of the mutual agreements herein contained, and for other
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows:

A
G R E E M E N
T:

1. MASTER LEASE

     A. Tenant represents and warrants to Subtenant that attached hereto as Exhibit A is a true,
correct and complete copy of the Master Lease and all amendments thereto.

     B. Unless otherwise defined herein, all capitalized terms shall have the defined meanings
ascribed to them in the Master Lease.

     C. Except as set forth below and except as otherwise provided in this Sublease, the terms and
conditions of this Sublease shall include all of the terms of the Master Lease and such terms are
incorporated into this Sublease as if fully set forth herein, except to the extent they are
inapplicable to, inconsistent with, or modified by the

 

 

terms of this Sublease and except that: (i)
each reference in such incorporated sections to “Lease” shall be deemed a reference to this
“Sublease”; (ii) each reference to “Landlord” and “Tenant” shall be deemed a reference to “Tenant”
and “Subtenant”, respectively, except as otherwise expressly set forth herein; (iii) with respect
to work, services, utilities, electricity, repairs (or damage caused by Master Landlord),
restoration, insurance, indemnities, reimbursements, representations, warranties or the performance
of any other obligation of Master Landlord under the Master Lease, whether or not incorporated
herein, the sole obligation of Tenant shall be to request the same in writing from Master Landlord
as and when requested to do so by Subtenant, and to use Tenant’s commercially reasonable efforts
(which shall not include the
institution of legal proceedings by Tenant, but which may include allowing Subtenant, at
Subtenant’s sole cost and expense, to institute legal proceedings in Tenant’s name (if necessary),
by attorneys approved by Tenant, which approval shall not be unreasonably withheld, conditioned or
delayed) to obtain Master Landlord’s performance; (iv) with respect to any obligation of Tenant to
be performed under this Sublease, wherever the Master Lease grants to “Tenant” a specified number
of days to perform its obligations under the Master Lease, except as otherwise provided herein,
Subtenant shall have three (3) fewer days to perform the obligation, including, without limitation,
curing any defaults; (v) with respect to any approval required to be obtained from the “Landlord”
under the Master Lease, such approval must be obtained from both Master Landlord and Tenant, and
Tenant’s withholding of approval shall in all events be deemed reasonable if for any reason Master
Landlord’s approval is not obtained; (vi) in any case where the “Landlord” reserves or is granted
the right to manage, supervise, control, repair, alter, regulate the use of, enter or use the
Subleased Premises or any areas beneath, above or adjacent thereto, such reservation or grant of
right of entry shall be deemed to be for the benefit of both Master Landlord and Tenant; (vii) in
any case where “Tenant” is to indemnify, release or waive claims against “Landlord”, such
indemnity, release or waiver shall be deemed to run from Subtenant to both Master Landlord and
Tenant; and (viii) in any case where “Tenant” is to execute and deliver certain documents or
notices to “Landlord”, such obligation shall be deemed to run from Subtenant to both Master
Landlord and Tenant.

     D. This Sublease is and at all times shall be subject and subordinate to the Master Lease and
the rights of Master Landlord thereunder. Subtenant hereby expressly assumes and agrees for the
benefit of the Master Landlord: (i) to comply with all provisions of the Master Lease which are
assumed by Subtenant hereunder; and (ii) to perform all the obligations on the part of the “Tenant”
to be performed under the terms of the Master Lease with respect to the Subleased Premises during
the term of this Sublease. In the event the Master Lease is terminated or cancelled for any reason
whatsoever, this Sublease shall terminate simultaneously with such termination or cancellation and,
unless it is determined in a final, non-appealable judgment that such termination is a result of
Tenant’s default under the Master Lease, or Tenant’s gross negligence or willful misconduct,
without any liability of Tenant to Subtenant. In the event of a conflict between the provisions of
this Sublease and the Master Lease, as between Tenant and Subtenant, the provisions of this
Sublease shall control.

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     E. The parties acknowledge and agreement that notwithstanding anything to the contrary in this
Sublease or the Master Lease, Section 18 of the First Amendment shall not apply and have no force
nor effect with regard to the Subtenant.

2. WARRANTY BY LESSOR

Tenant warrants and represents to Subtenant that the Master Lease is in full force and effect, has
not been amended or modified except as expressly set forth herein, that all obligations of Tenant
have been satisfied, that Tenant is not now, and as of the commencement of the Term hereof will not
be, in default or breach of any of the provisions of the Master Lease, nor to the best of Tenant’s
knowledge is there any event with which the giving of notice or the passage of time or both would
become a default or breach under the Master Lease and that Tenant has no knowledge of any claim by
Master Landlord that Tenant is in default or breach of any of the provisions of the Master Lease.
Tenant has not received written notice of any violation or alleged violation of law, including but
not limited to the Americans with Disabilities Act of 1990, as may be amended (“ADA”) with respect
to the Subleased Premises. Tenant, as of the Effective Date, has not received written notice of
any mechanic’s liens charged against the Premises. During the Term of this Sublease, the Tenant
agrees not to amend or modify the Master Lease in such a manner as to increase Subtenant’s
obligations under this Sublease or adversely impact Subtenant’s rights under this Sublease without
prior written notice to and
reasonable approval by Subtenant. During the Term of this Sublease, Tenant shall not voluntarily
terminate the Master Lease with respect to the Subleased Premises, nor will Tenant knowingly act or
knowingly fail to act in such a manner as to cause the termination of the Master Lease. Should
Tenant receive written notice from Master Landlord regarding any default or other material issue
under the Master Lease or notices of any violations, mechanic’s liens or any other notices
affecting the Subleased Premises, Tenant shall provide a copy such notice(s) to Subtenant within
two (2) business days of Tenant’s receipt of said notice(s).

3. SUBLEASED PREMISES

Tenant hereby subleases to Subtenant on the terms and conditions set forth in this Sublease the
Subleased Premises. Subtenant accepts the Subleased Premises in their present “As-Is” condition and
shall be responsible, at its cost and expense, for all alterations, improvements, additions and
other work desired for its use and occupancy of the Subleased Premises, except as specifically
stated in this Sublease. For the avoidance of doubt, Tenant shall have no obligation whatsoever to
make or pay the cost of any alterations, improvements or repairs to the Subleased Premises,
including, without limitation, any improvement or repair required to comply with any law,
regulation, building code or ordinance (including the ADA). In addition, Tenant shall have no
obligation to perform any repairs or any other obligation of Master Landlord required to be
performed by Master Landlord under the terms of the Master Lease and Subtenant shall look solely to
Master Landlord for performance of said obligations. Tenant shall, however, request performance of
the same in writing from Master Landlord promptly

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after being requested to do so by Subtenant, and
shall use Tenant’s commercially reasonable efforts (which shall not include the institution of
legal proceedings by Tenant, but which may include allowing Subtenant, at Subtenant’s sole cost and
expense, to institute legal proceedings in Tenant’s name (if necessary), by attorneys approved by
Tenant, which approval shall not be unreasonably withheld, conditioned or delayed) to obtain Master
Landlord’s performance. Tenant hereby assigns to Subtenant, for so long as this Sublease shall be
in force and effect, any and all rights of Tenant under the Master Lease with respect to the
Subleased Premises and causes of action which Tenant may have against Master Landlord with respect
to the Subleased Premises due to default by Master Landlord under the Master Lease.

4. TERM

The term of this Sublease shall commence on the later of: (a) July 1, 2008; and (b) the date that
Master Landlord consents to this Sublease or possession of the Subleased Premises is delivered to
Subtenant (“Commencement Date”), and end on July 31, 2010 (“Termination Date”), unless otherwise
sooner terminated in accordance with the provisions of this Sublease. In the event the Term
commences on a date other than the Commencement Date, Tenant and Subtenant shall execute a
memorandum setting forth the actual date of commencement of the term. Possession of the Subleased
Premises shall be delivered to Subtenant on the Commencement Date; provided, however, once the
Master Landlord consents to this Sublease, Subtenant shall be permitted access to the Subleased
Premises within five (5) business days of such consent in order for Subtenant to complete (through
Subtenant’s contractor or vendor or by Subtenant’s employees or other agents) the cabling of
telephone, computer, security systems, office equipment and the like; provided that Tenant shall
not be required to provide Subtenant with such access unless Subtenant has demonstrated its
compliance with the insurance requirements provided in Section 13 of this Sublease.
Notwithstanding anything to the contrary in this Sublease, if Tenant fails, for any reason other
than the acts or omissions of either Subtenant or the Master Landlord (including without limitation
the Master Landlord’s failure to timely consent to this Sublease) or the agents or employees of
Subtenant or Master Landlord, to provide possession of the Subleased Premises on the Commencement
Date, the date the Rent (as defined below) commences will be extended for each day of delay beyond
such date and provided further that if Tenant fails to provide possession of the Subleased Premises
on or before August 1, 2008 (subject to the exceptions set forth above),
then Subtenant shall have the right to terminate this Sublease by written notice delivered to
Tenant on or before August 15, 2008, upon which the parties shall have no further obligations to
each other under this Sublease.

5. RENT

Subtenant does hereby agree, without notice, deduction or offset, to pay to Tenant, as the monthly
rent for the Subleased Premises (“Rent”), the following
amounts for the term of the Sublease:

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	July 1, 2008 – June 30, 2009:
	 	$14,964.00 each month
	July 1, 2009 – June 30, 2010:
	 	$15,562.56 each month
	July 1, 2010 – July 31, 2010:
	 	$16,185.06 each month

Rent includes all Operating Expenses and Taxes contemplated under the Master Lease and Tenant
hereby acknowledges and agrees that Subtenant shall not be responsible for any other costs not
specifically and expressly provided for herein, including but not limited to costs or charges for
Building or common area maintenance, utilities or taxes. However, except as otherwise expressly
provided in this Sublease, Subtenant shall pay any other additional costs or expenses incurred
under the Master Lease related to the Sublease Premises or Subtenant’s occupancy thereof
(including, without limitation, the cost of all overtime HVAC, energy and other services costs
provided to Subtenant and/or the Sublease Premises and not included in Operating Expenses or
Taxes). Unless such costs and expenses can be paid directly to Master Landlord, Subtenant shall
reimburse Tenant for such other amounts within ten (10) business days of receipt of an invoice
(attaching the charges of the Master Landlord) from Tenant therefor. For the purposes of this
Sublease and all of Subtenant’s obligations hereunder, Rent and any other sums due to Tenant from
Subtenant under this Sublease shall together constitute “Rent.”

All payments of Rent due under this Sublease shall be paid in advance at least three (3) business
days prior to when the corresponding payments are due and payable under the Master Lease. Said
payment shall be made to Tenant, and shall be mailed to the address of Tenant or any other address
which Tenant may in writing designate. The first month’s rent payment in the amount of $14,964.00
shall be due and payable by Subtenant to Tenant upon Subtenant’s execution of this Sublease.

6. USE OF PREMISES; ACCESS

Notwithstanding anything contrary to the Master Lease, the Subleased Premises shall be used and
occupied only for general office purposes in accordance with the applicable zoning regulations and
for no other use or purpose. Subtenant shall not use, store or dispose of, in or from the
Subleased Premises, any substances, materials, chemicals or gases which are defined and regulated
as being hazardous or toxic under applicable federal, state or local laws and regulations except
for such substances, materials, chemicals or gases in small amounts as used in the ordinary course
of the operation of Subtenant’s business which use shall at all times be in strict adherence to and
compliance with all applicable environmental laws and the terms of the Master Lease. Subject to
the terms and conditions of the Master Lease, Subtenant shall have access to the Subleased Premises
twenty-four (24) hours per each day of the year. Tenant shall provide fifty (50) of its electronic
access cards for the Subleased Premises and shall, at its sole cost and expense, cause the Master
Landlord to reprogram the electric access system such that only the foregoing 50 cards shall
provide access to the Subleased Premises (except with respect to the Master Landlord and Tenant as
permitted and limited by this Sublease), and pay the costs associated with obtaining such cards if
such cards provide access to the Master Premises in excess of the Subleased Premises.

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7. AGENCY DISCLOSURE

Subtenant and Tenant each warrant that they have dealt with no other real estate broker(s),
finder(s), or other person(s) in connection with this transaction other than The Staubach Company –
Northeast, Inc., as Subtenant’s broker, and CresaPartners, as Tenant’s agent, both of which shall
be compensated by Tenant pursuant to a separate agreement. Tenant and Subtenant each shall
indemnify and hold the other harmless from any breach by it of this representation.

8. ATTORNEYS’ FEES

If Tenant or Subtenant shall commence an action against the other arising out of or in connection
with this Sublease, the prevailing party shall be entitled to recover its costs of suit and
reasonable attorneys’ fees.

9. FURNITURE

Subtenant shall have the right to utilize certain of the existing workstations and furniture within
the Subleased Premises through the term of the Sublease at no cost to the Subtenant (excluding
certain personal property of the Tenant). The Master Landlord owns the furniture and workstations
and therefore Tenant and Subtenant have no rights to the furniture after the expiration of the
Sublease term. Attached as Exhibit C is a list of the items of furniture within the Subleased
Premises that Subtenant will retain (the “Sublease Furniture”). Any items of furniture that had
been in the Subleased Premises but are not listed on Exhibit C as Sublease Furniture shall have
been removed by Tenant, at its sole cost and expense, from the Subleased Premises prior to the
Commencement Date. Subtenant shall have no further obligation to Tenant or Master Landlord
regarding such items of furniture.

10. NOTICES

All notices and demands which may or are to be required or permitted to be given by either party on
the other hereunder shall be in writing. All notices and demands by the Tenant to Subtenant shall
be sent by United States Mail, postage prepaid, or by nationally recognized overnight carrier
addressed to the Subtenant at the Subleased Premises, and to the address hereinbelow, or to such
other place as Subtenant may from time to time designate in a notice to the Tenant. All notices
and demands by the Subtenant to Tenant shall be sent by United States Mail, postage prepaid, or by
recognized overnight carrier addressed to the Tenant at the address set forth herein, and to such
other person or place as the Tenant may from time to time designate in a notice to the Subtenant.

	 	 	 
	To Tenant:

	 	Covad Communications Company
	 

	 	110 Rio Robles
	 

	 	San Jose, CA 95134

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	 	Attn: Contract Management/Legal
	 
	 	 
	To Subtenant:

	 	K12 Inc.
	 

	 	2300 Corporate Park Drive
	 

	 	Herndon, VA 20171
	 

	 	Attn: Legal Department

11. REMOVAL OF ALTERATIONS

Notwithstanding anything in the Master Lease or this Sublease to the contrary, Subtenant shall not
be required at the termination of the Sublease to remove alterations, fixtures, equipment and other
property at the Subleased Premises unless such items or alterations are installed by or at the
request of Subtenant. Unless the Master Landlord does not require such restoration or removal,
Subtenant shall be solely responsible for the restoration of any items or alterations that are
removed by or at the request of Subtenant and/or the removal of any items or alterations that are
installed by or at the request of Subtenant.

12. CONSENTS

Each of the signatories set forth below represents and warrants that it is duly authorized to
execute and deliver this Sublease, to bind the person for which such signatory signs and that such
person has obtained all consents and approvals necessary to execute and deliver this Sublease.
Additionally, except for the consent of the Master Landlord, each party represents and warrants to
each of the other parties that it has obtained all consents and approvals necessary to execute and
deliver this Sublease.

13. INSURANCE

     A. Subtenant agrees that Subtenant will, at all times during the Term of this Sublease,
maintain and pay for such insurance as is required under the Master Lease, naming the Master
Landlord and Tenant as “additional insureds” under the policy or policies carried by Subtenant.
The Subtenant further covenants that in the event that the insurance policy evidenced in the
certificate is canceled or materially amended it will advise the Tenant in writing to this effect
forthwith. In the event that Subtenant fails to maintain the insurance required by this Section,
then the Tenant shall have the right to obtain such insurance on behalf of Subtenant. In the event
that Tenant obtains such insurance on behalf of Subtenant, then Subtenant shall reimburse Tenant
for the cost thereof within five (5) business days of Tenant’s demand for reimbursement.

     B. Tenant and Subtenant each hereby releases all causes of action and rights of recovery
against each other and their respective agents, officers and employees for any loss, regardless of
cause or origin, to the extent of any recovery to either party from any policy(s) of insurance
carried or required to be carried hereunder. Tenant and Subtenant agree that any policies
presently existing or obtained on or after the date hereof (including

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renewals of present policies)
shall include a clause or endorsement to the effect that any such release shall not adversely
affect or impair said policies or prejudice the right of the releasor to recover thereunder.

14. PARKING

Subtenant shall be entitled to use parking spaces in accordance with the terms of the Master Lease,
including but not limited to Section 13 of the First Amendment concerning reserved parking spaces
of which Subtenant shall be entitled to its proportionate share based on the ratio of Subleased
Premises to Master Premises.

15. SIGNAGE

Subtenant shall have the rights to suite entry signage and building directory signage pursuant to
the terms contained in the Master Lease.

16. CONDEMNATION

In the event of damage or destruction of the Subleased Premises or the taking of all or any part
thereof under the power of eminent domain, this Sublease shall terminate only if the Master Lease
is terminated as a result thereof.

17. EMERGENCY POWER SYSTEM

     Subject to the terms and conditions of the Master Lease, Subtenant shall have the right, with
Master Landlord’s consent pursuant to the Master Lease, to connect certain equipment into the
Master Landlord’s emergency power generator and uninterrupted power supply systems (“Emergency
Power System”). Subtenant shall pay directly to the Master Landlord all costs and expenses related
to the Subtenant’s actual usage of the Emergency Power System. In the event that Subtenant is not
permitted to pay such costs directly, then Tenant shall pay the costs and expenses of the Emergency
Power System and the Subtenant shall promptly reimburse the Tenant for Tenant’s actual costs
incurred with respect to the Subleased Premises; provided that Tenant submits reasonable supporting
documentation regarding such costs.

18. DEFAULT

Subtenant shall be in material default of its obligations under this Sublease if any of the
following events occur:

          A. Subtenant fails to pay any Rent within five (5) business days after receipt of written
notice from Tenant that such item of Rent is due and unpaid; or

          B. Subtenant fails to perform any term, covenant or condition of this Sublease (except those
requiring payment of Rent) and fails to cure such breach within

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thirty (30) days after delivery of
a written notice to Subtenant specifying the nature of the breach; provided, however, that if more
than thirty (30) days are reasonably required to remedy the failure, then Subtenant shall not be in
default if Subtenant commences the cure within the thirty (30) day period and thereafter diligently
completes the cure; or

          C. Subtenant makes a general assignment of its assets for the benefit of its creditors,
including attachment of, execution on, or the appointment of a custodian or receiver with respect
to a substantial part of Subtenant’s property or any property essential to the conduct of its
business; or

          D. Subtenant abandons (without payment of Rent) the Subleased Premises in violation of the
Master Lease; or

          E. Subtenant commits any other act or omission which constitutes a default under the Master
Lease, which has not been cured after delivery of any written notice required and passage of
three-quarters (3/4) of any applicable grace period provided in the Master Lease as modified, if at
all, by the provisions of this Sublease.

19. SECURITY DEPOSIT

Subtenant shall provide Tenant prior to the execution of this Sublease a security deposit in the
amount of $14,964.00. Tenant may use the security deposit, or any part of the deposit, to satisfy
any default of Subtenant and any expenses arising from such default. If any portion of the
security deposit is so used or applied, Subtenant shall, within five (5) business days after
written demand therefore, deposit cash with Tenant in an amount sufficient to restore the security
deposit to its original amount. Tenant may commingle
the security deposit with its own funds and Subtenant shall not be entitled to interest on the
security deposit. Any remaining balance of the Security Deposit shall be returned to Subtenant at
such time after the Termination Date that all of Subtenant’s obligations under this Sublease have
been fulfilled, but in no event later than thirty (30) days following the Termination Date.

20. ASSIGNMENT AND SUBLETTING

Subtenant’s rights to assign, transfer or hypothecate the leasehold estate under this Sublease, or
any interest therein shall be governed by the Master Landlord pursuant to Article 13 of the Master
Lease and by the Tenant pursuant to such Article 13 as incorporated into this Sublease.

21. ENTIRE AGREEMENT; AMENDMENTS

This Sublease contains all agreements between the parties with respect to any matter mentioned
herein, and no other prior or contemporaneous agreement or understanding shall be effective. This
Sublease may not be amended except by the written agreement of all parties hereto.

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22. WAIVER

If either Tenant or Subtenant waives the performance of any term, covenant or condition contained
in this Sublease, such waiver shall not be deemed to be a waiver of any subsequent breach of the
same or any other term, covenant or condition contained herein, or constitute a course of dealing
contrary to the expressed terms of this Sublease. The acceptance of Rent by Tenant shall not
constitute a waiver of any preceding breach by Subtenant of any term, covenant or condition of this
Sublease regardless of Tenant’s knowledge of such preceding breach at the time Tenant accepted such
Rent. Failure by Tenant to enforce any of the terms, covenants or conditions of the Sublease for
any length of time shall not be deemed to waive or decrease the right of Tenant to insist
thereafter upon strict performance by Subtenant. Waiver by Tenant of any term, covenant or
condition contained in this Sublease may only be made by a written document signed by Tenant, based
upon full knowledge of the circumstances.

23. RELATIONSHIP OF PARTIES

This Sublease does not and shall not create the relationship of principal and agent, or of
partnership, or of joint venture, or of any other association between Tenant and Subtenant, except
that of sublandlord and subtenant.

24. NO DRAFTING PRESUMPTION

The parties acknowledge that this Sublease has been agreed to by both the parties, that both Tenant
and Subtenant have consulted with attorneys with respect to the terms of this Sublease and that no
presumption shall be created against Tenant because Tenant drafted this Sublease.

25. COUNTERPARTS

This Sublease may be executed in one or more counterparts, each of which shall be deemed an
original, and all of which together shall constitute one and the same instrument.

26. MASTER LANDLORD’S CONSENT

     After its execution by Tenant and Subtenant, this Sublease shall be effective only upon
obtaining the written consent of Master Landlord, or its duly authorized agent. Promptly after the
execution of this Sublease by the Tenant and Subtenant, Tenant shall use its commercially
reasonable efforts to secure the Master Landlord’s consent to this Sublease and shall keep
Subtenant reasonably apprised of the status of such efforts.

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[SIGNATURE PAGE FOLLOWS]

THIS SUBLEASE SHALL BE OF NO FORCE OR EFFECT UNLESS CONSENTED TO BY MASTER LANDLORD WITHIN 30 DAYS
AFTER EXECUTION HEREOF, IF SUCH CONSENT IS REQUIRED UNDER THE TERMS OF THE MASTER LEASE.

	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	6/25/08	 	 	 	Date:	 	6/26/08	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Tenant: Dieca Communications, Inc.	 	 	 	Subtenant: K12, Inc.	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Jeff Bailey	 	 	 	By:	 	/s/ John Baule	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Title:

	 	CFO	 	 	 	Title:	 	Exec VP of Operations & CFO	 	 
	 

	 	 

	 	 	 	 	 	 

	 	 

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Exhibit A

Master Lease

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Exhibit B

Subleased Premises

Note:

1) Subleased Premises totals 6,192 rentable square feet and is illustrated as the “Covad” space in
this illustration.

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Exhibit C

Sublease Furniture

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FINAL
EXECUTED LEASE

DEED OF LEASE

TST WOODLAND FUNDING I, L.L.C.,

a Delaware limited liability company,

Landlord

and

DIECA COMMUNICATIONS, INC.,

a Virginia corporation,

Tenant

South Pointe II

2300 Corporate Park Drive

Woodland Park

Herndon, Virginia 20171

July 8, 2002

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1. BASIC LEASE PROVISIONS
	 	 	1	 
	ARTICLE 2. PREMISES, TERM, RENT
	 	 	5	 
	2.1 Lease of Premises
	 	 	5	 
	2.2 Commencement Date
	 	 	5	 
	2.3 Payment of Rent
	 	 	5	 
	2.4 First Month’s Rent
	 	 	6	 
	ARTICLE 3. USE AND OCCUPANCY
	 	 	6	 
	3.1 Permitted Uses
	 	 	6	 
	3.2 Parking Facilities
	 	 	6	 
	ARTICLE 4. CONDITION OF THE PREMISES
	 	 	7	 
	4.1 Condition
	 	 	7	 
	4.2 Landlord’s Contribution
	 	 	7	 
	4.3 Existing Furnishings
	 	 	7	 
	ARTICLE 5. ALTERATIONS
	 	 	8	 
	5.1 Tenant’s Alterations
	 	 	8	 
	5.2 Manner and Quality of Alterations
	 	 	9	 
	5.3 Removal of Tenant’s Property
	 	 	9	 
	5.4 Mechanic’s Liens
	 	 	10	 
	5.5 Labor Relations
	 	 	10	 
	5.6 Tenant’s Costs
	 	 	10	 
	5.7 Tenant’s Equipment
	 	 	10	 
	5.8 Legal Compliance
	 	 	10	 
	5.9 Floor Load
	 	 	11	 
	ARTICLE 6. REPAIRS
	 	 	11	 
	6.1 Landlord’s Repair and Maintenance
	 	 	11	 
	6.2 Tenant’s Repair and Maintenance
	 	 	11	 
	6.3 Restorative Work
	 	 	11	 
	6.4 Supplemental HVAC Units
	 	 	12	 
	6.5 Emergency Power System
	 	 	13	 
	ARTICLE 7. INCREASES IN TAXES AND OPERATING EXPENSES
	 	 	14	 
	7.1 Definitions
	 	 	14	 
	7.2 Tenant’s Tax Payment
	 	 	16	 
	7.3 Tenant’s Operating Payment
	 	 	17	 
	7.4 Non-Waiver; Disputes
	 	 	18	 
	7.5 Final Year of Term
	 	 	19	 
	7.6 No Reduction in Rent
	 	 	19	 
	ARTICLE 8. REQUIREMENTS OF LAW
	 	 	20	 
	8.1 Compliance with Requirements
	 	 	20	 
	8.2 Fire and Life Safety
	 	 	21	 
	ARTICLE 9. SUBORDINATION
	 	 	21	 
	9.1 Subordination and Attornment
	 	 	21	 

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	 	 	Page	 
	9.2 Mortgage or Superior Lease Defaults
	 	 	22	 
	9.3 Tenant’s Termination Right
	 	 	22	 
	9.4 Provisions
	 	 	23	 
	ARTICLE 10. SERVICES
	 	 	23	 
	10.1 Electricity
	 	 	23	 
	10.2 Excess Electricity
	 	 	24	 
	10.3 Elevators
	 	 	24	 
	10.4 Heating, Ventilation and Air Conditioning
	 	 	24	 
	10.5 Overtime HVAC
	 	 	25	 
	10.6 Cleaning
	 	 	25	 
	10.7 Water
	 	 	25	 
	10.8 Refuse Removal
	 	 	25	 
	10.9 Directory
	 	 	25	 
	10.10 Tenant Access to Premises
	 	 	26	 
	10.11 Service Interruptions
	 	 	26	 
	ARTICLE 11. INSURANCE; PROPERTY LOSS OR DAMAGE
	 	 	26	 
	11.1 Tenant’s Insurance
	 	 	26	 
	11.2 Waiver of Subrogation
	 	 	28	 
	11.3 Restoration
	 	 	28	 
	11.4 Landlord’s Termination Right
	 	 	29	 
	11.5 Tenant’s Termination Right
	 	 	29	 
	11.6 Final 18 Months
	 	 	29	 
	11.7 Landlord’s Liability
	 	 	30	 
	ARTICLE 12. EMINENT DOMAIN
	 	 	30	 
	12.1 Taking
	 	 	30	 
	12.2 Awards
	 	 	31	 
	12.3 Temporary Taking
	 	 	31	 
	ARTICLE 13. ASSIGNMENT AND SUBLETTING
	 	 	31	 
	13.1 Consent Requirements
	 	 	31	 
	13.2 Tenant’s Notice
	 	 	 	 
	13.3 Conditions to Assignment/Subletting
	 	 	33	 
	13.4 Binding on Tenant; Indemnification of Landlord
	 	 	34	 
	13.5 Tenant’s Failure to Complete
	 	 	34	 
	13.6 Profits
	 	 	35	 
	13.7 Transfers
	 	 	35	 
	13.8 Assumption of Obligations
	 	 	36	 
	13.9 Tenant’s Liability
	 	 	36	 
	13.10 Listings in Building Directory
	 	 	36	 
	13.11 Lease Disaffirmance or Rejection
	 	 	36	 
	ARTICLE 14. ACCESS TO PREMISES
	 	 	37	 
	14.1 Landlord’s Access
	 	 	37	 
	14.2 Building Name
	 	 	38	 
	ARTICLE 15. DEFAULT
	 	 	38	 
	15.1 Tenant’s Defaults
	 	 	38	 
	15.2 Landlord’s Remedies
	 	 	39	 

-ii-

 

	 	 	 	 	 
	 	 	Page	 
	15.3 Landlord’s Damages
	 	 	40	 
	15.4 Interest
	 	 	41	 
	15.5 Other Rights of Landlord
	 	 	41	 
	ARTICLE 16. LANDLORD’S RIGHT TO CURE; FEES AND EXPENSES
	 	 	41	 
	ARTICLE 17. NO REPRESENTATIONS BY LANDLORD; LANDLORD’S APPROVAL
	 	 	42	 
	17.1 No Representations
	 	 	42	 
	17.2 No Money Damages
	 	 	42	 
	17.3 Reasonable Efforts
	 	 	42	 
	ARTICLE 18. END OF TERM
	 	 	42	 
	18.1 Expiration
	 	 	42	 
	18.2 Holdover Rent
	 	 	42	 
	ARTICLE 19. QUIET ENJOYMENT
	 	 	43	 
	ARTICLE 20. NO SURRENDER; NO WAIVER
	 	 	43	 
	20.1 No Surrender or Release
	 	 	43	 
	20.2 No Waiver
	 	 	43	 
	ARTICLE 21. WAIVER OF TRIAL BY JURY; COUNTERCLAIM
	 	 	44	 
	21.1 Jury Trial Waiver
	 	 	44	 
	21.2 Waiver of Counterclaim
	 	 	44	 
	ARTICLE 22. NOTICES
	 	 	44	 
	ARTICLE 23. RULES AND REGULATIONS
	 	 	44	 
	ARTICLE 24. BROKER
	 	 	45	 
	ARTICLE 25. INDEMNITY
	 	 	45	 
	25.1 Tenant’s Indemnity
	 	 	45	 
	25.2 Landlord’s Indemnity
	 	 	45	 
	25.3 Defense and Settlement
	 	 	46	 
	ARTICLE 26. MISCELLANEOUS
	 	 	46	 
	26.1 Delivery
	 	 	46	 
	26.2 Transfer of Real Property
	 	 	46	 
	26.3 Limitation on Liability
	 	 	46	 
	26.4 Rent
	 	 	47	 
	26.5 Entire Document
	 	 	47	 
	26.6 Governing Law
	 	 	47	 
	26.7 Unenforceability
	 	 	47	 
	26.8 Lease Disputes
	 	 	47	 
	26.9 Landlord’s Agent
	 	 	47	 
	26.10 Estoppel
	 	 	48	 
	26.11 Certain Interpretational Rules
	 	 	48	 
	26.12 Parties Bound
	 	 	48	 
	26.13 Memorandum of Lease
	 	 	48	 
	26.14 Counterparts
	 	 	49	 
	26.15
Survival
	 	 	49	 
	26.16 Inability to Perform
	 	 	49	 
	26.17 Substitute Premises
	 	 	49	 
	26.18 Deed of Lease/Landlord’s Agent for Service of Process
	 	 	49	 
	26.19 Lien for Payment of Rent
	 	 	49	 

-iii-

 

	 	 	 	 	 
	 	 	Page	 
	26.20 Financial Statements
	 	 	49	 
	ARTICLE 27. SECURITY DEPOSIT
	 	 	49	 
	27.1 Letter of Credit
	 	 	49	 
	27.2 Application of Security
	 	 	50	 
	27.3 Transfer
	 	 	51	 

	 	 	 
	 
	 	 
	EXHIBITS
	Exhibit A
	 	Floor Plan
	Exhibit B
	 	Definitions
	Exhibit C
	 	Work Letter
	Exhibit D
	 	Cleaning Specifications
	Exhibit E
	 	Rules and Regulations
	Exhibit F
	 	Commencement Notice
	Exhibit G
	 	Existing Furnishings
	 
	 	 
	RIDERS
	Rider No. 1
	 	Extension Option
	Rider No. 2
	 	Antenna
	Rider No. 3
	 	Exterior Signage

-iv-

 

DEED OF LEASE

     This
Deed of Lease (the “Lease”) is made as of the 8th day of July, 2002
(“Effective Date”), between TST WOODLAND FUNDING I, L.L.C (“Landlord”), a Delaware limited
liability company, and DIECA COMMUNICATIONS, INC., (“Tenant”), a Virginia corporation.

     Landlord and Tenant hereby agree as follows:

ARTICLE 1

BASIC LEASE PROVISIONS

	 	 	 
	 
	 	 
	PREMISES

	 	The rentable area of the portion of the first (1st) floor of
the Building, the entire rentable area of the third (3rd)
floor of the Building and the rentable area of the portion
of the fourth (4th) floor of the Building, as more
particularly shown on Exhibit A.
	 
	 	 
	BUILDING

	 	The building, fixtures, equipment and other improvements and
appurtenances now located or hereafter erected, located or
placed upon the land known as 2300 Corporate Park Drive,
Woodland Park, Herndon, Virginia 20171 (commonly known as
South Pointe II).
	 
	 	 
	REAL PROPERTY

	 	The Building, the Common Area, the parking facilities and
the real property upon which the Building and the parking
facilities stand.
	 
	 	 
	COMMENCEMENT DATE

	 	The date which is earlier to occur of (a) the date Tenant
(or any person claiming by, through or under Tenant)
occupies any part of the Premises for the conduct of its
business, or (b) the later of (i) the date upon which the
Tenant Improvements (as described in Exhibit C attached
hereto) are Substantially Completed in accordance with the
terms of this Lease, or (ii) July 15, 2002.
	 
	 	 
	RENT COMMENCEMENT 

DATE

	 	The day following the third (3rd) monthly
anniversary of the Commencement Date.
	 
	 	 
	EXPIRATION DATE

	 	The last day of the month in which the third
(3rd) yearly anniversary of the Commencement Date
occurs, or the last day of any extension term, if the Term
of this Lease is extended in accordance with any express
provision hereof.
	 
	 	 
	TERM

	 	The period commencing on the Commencement Date and ending

- 1 -

 

	 	 	 
	 

	 	on the Expiration Date.
	 
	 	 
	PERMITTED USES

	 	Executive and general offices.
	 
	 	 
	BASE YEAR

	 	Calendar year 2002.
	 
	 	 
	TENANT’S
PROPORTIONATE SHARE

	 	23.51%
	 
	 	 
	AGREED AREA OF 

BUILDING

	 	

159,633 rentable square feet, as measured in accordance with the
BOMA standard of building measurement and mutually agreed to
by Landlord and Tenant.
	 
	 	 
	AGREED AREA OF 

PREMISES

	 	

37,517 rentable square feet, as measured in accordance with the
BOMA standard of building measurement and mutually agreed to by
Landlord and Tenant, consisting of 3,573 square feet of rentable
area on the first (1st) floor, 27,752 square feet of
rentable area on the third (3rd) floor and 6,192
square feet of rentable area on the fourth (4th) floor (the
“Fourth Floor Space”), being comprised of 3,044 square foot area
designated as “Suite 4A” on
Exhibit A and
3,148 square foot area designated as “Suite 4B”
on Exhibit A.
	 
	 	 
	FIXED RENT
	 	 

	 	      	 	 	 
	 	 	Fixed Rent per annum
	 	 	per square foot of rentable area
	Lease Year	 	of Premises
	1
	 	$	24.00	 
	2
	 	$	24.60	 
	3 through original Expiration Date
	 	$	25.22	 

	 	 	 
	 
	 	 
	LEASE YEAR

	 	Each period of twelve (12) successive months commencing on the
Commencement Date or any anniversary thereof, except that the
last Lease Year of the Term might contain fewer than twelve
(12) months if the period between the expiration of the then
preceding Lease Year and the Expiration Date contains fewer
than twelve (12) months.

- 2 -

 

	 	 	 
	ADDITIONAL RENT

	 	All sums other than Fixed Rent payable by Tenant to Landlord
under this Lease, including Tenant’s Tax Payment, Tenant’s
Operating Payment, late charges, overtime or excess service
charges, damages, and interest and other costs related to
Tenant’s failure to perform any of its obligations under this
Lease.
	 
	 	 
	RENT

	 	Fixed Rent and Additional Rent, collectively.
	 
	 	 
	INTEREST RATE

	 	The lesser of (i) 4% per annum above the then-current Base
Rate, and (ii) the maximum rate permitted by applicable law.
	 
	 	 
	SECURITY DEPOSIT

	 	$375,170.00, in the form of the Letter of Credit.
	 
	 	 
	TENANT’S ADDRESS FOR
NOTICES

	 	Until Tenant commences business operations from the Premises:
	 
	 	 
	 

	 	Dieca Communications, Inc.
	 

	 	3420 Central Expressway 
	 

	 	Santa Clara, CA 95051 
	 

	 	Attn: Director of Real Estate
	 
	 	 
	 

	 	Copy to:
	 
	 	 
	 

	 	Dieca Communications, Inc.
	 

	 	3420 Central Expressway 
	 

	 	Santa Clara, CA 95051 
	 

	 	Attn: Legal Department
	 
	 	 
	 

	 	Thereafter:
	 
	 	 
	 

	 	Dieca Communications, Inc.
	 

	 	3420 Central Expressway 
	 

	 	Santa Clara, CA 95051 
	 

	 	Attn: Director of Real Estate
	 
	 	 
	 

	 	Copy to:
	 
	 	 
	 

	 	Dieca Communications, Inc.
	 

	 	3420 Central Expressway 
	 

	 	Santa Clara, CA 95051 
	 

	 	Attn: Legal Department

- 3 -

 

	 	 	 
	 

	 	and
	 
	 	 
	 

	 	Dieca Communications, Inc.
	 

	 	2300 Corporate Park Drive
	 

	 	Woodland Park 
	 

	 	Herndon, Virginia 20171
	 
	 	 
	LANDLORD’S ADDRESS FOR
NOTICES

	 	TST Woodland Funding I, L.L.C.
	 

	 	c/o Tishman Speyer Properties, L.P.
	 

	 	520 Madison Avenue, Sixth Floor
	 

	 	New York, New York 10022
	 

	 	Attn: Chief Financial Officer
	 
	 	 
	 

	 	Copies to:
	 
	 	 
	 

	 	TST Woodland Funding I, L.L.C.
	 

	 	c/o Tishman Speyer Properties, L.P.
	 

	 	8270 Greensboro Drive, Suite 810
	 

	 	McLean, Virginia 22102
	 

	 	Attn: James A. Evans
	 
	 	 
	 

	 	and:
	 
	 	 
	 

	 	Tishman Speyer Properties, L.P.
	 

	 	520 Madison Avenue, Sixth Floor
	 

	 	New York, New York 10022
	 

	 	Attn: General Counsel
	 
	 	 
	TENANT’S BROKER

	 	Scheer Partners and Liberty Greenfield.
	 
	 	 
	LANDLORD’S AGENT

	 	Tishman Speyer Properties, L.P. or any other
person designated at any time and from time to
time by Landlord as Landlord’s Agent and their
successors and assigns.
	 
	 	 
	LANDLORD’S CONTRIBUTION

	 	$-0-.
	 
	 	 
	GUARANTOR

	 	None.

All capitalized terms used in this Lease without definition are defined in Exhibit
B-Definitions or in Exhibit C-Work Letter to this Lease.

- 4 -

 

ARTICLE 2

PREMISES, TERM, RENT

     Section 2.1 Lease of Premises. Subject to the terms of this Lease, Landlord leases to Tenant
and Tenant leases from Landlord the Premises for the Term. In addition, Landlord grants to Tenant
the right to use, on a non-exclusive basis and in common with other tenants, the Common Areas.

     Section 2.2 Commencement Date. Upon the Effective Date, the terms and provisions hereof shall
be fully binding on Landlord and Tenant, including prior to the occurrence of the Commencement
Date. The Term of this Lease shall commence on the Commencement Date and, unless sooner terminated
or extended as hereinafter provided, shall end on the Expiration Date. If Landlord does not tender
possession of the Premises to Tenant on or before any specified date, for any reason whatsoever,
Landlord shall not be liable for any damage thereby, this Lease shall not be void or voidable
thereby, and the Term shall not commence until Landlord tenders possession of the Premises to
Tenant. No failure to tender possession of the Premises to Tenant on or before any specified date
shall affect any other obligations of Tenant hereunder. Once the Commencement Date is determined,
Landlord and Tenant shall execute an agreement in the form of Exhibit F hereto stating the
Commencement Date and the Expiration Date, but the failure to do so will not affect the
determination of such dates. For purposes of determining whether Tenant has accepted possession of
the Premises, Tenant shall be deemed to have done so when Tenant first moves Tenant’s Property
and/or any of its personnel into the Premises and/or commences construction, except to the extent
that Tenant is authorized in this Lease or by Landlord’s agreement to do any of the foregoing
without being deemed to have accepted possession of the Premises.

     Notwithstanding the foregoing, if the Commencement Date has not occurred by August 1, 2002
(as such date may be extended by any Tenant Delay and/or Unavoidable Delay), Tenant shall have the
right, as Tenant’s sole remedy, to terminate this Lease by delivering written notice of such
termination (the “Termination Notice”) to Landlord at any time on or after such date but prior to
the Commencement Date with such termination being effective 30 days after Landlord’s receipt of
the Termination Notice; provided however, if the Commencement Date occurs within such 30 day
period, the Termination Notice shall be deemed null and void. If Landlord incurs an Unavoidable
Delay in connection with Landlord’s Substantial Completion of the Tenant Improvements due to any
delay in the issuance of any permits or in connection with any governmental inspections of the
Tenant Improvements, Landlord will send Tenant written notice of such Unavoidable Delay within 2
business days after Landlord obtains actual knowledge of such Unavoidable Delay. If Landlord fails
to send such notice to Tenant within such 2 business day period, then the delay will not be
treated as an Unavoidable Delay until the day on which Landlord sends such notice to Tenant.

     Section 2.3 Payment of Rent. Tenant shall pay to Landlord, without notice or demand, and
without any set-off, counterclaim, abatement or deduction whatsoever, except as may be expressly
set forth in this Lease, in lawful money of the United States by wire transfer of funds or by
check, (i) Fixed Rent in equal monthly installments, in advance, on the first day of

- 5 -

 

each month during the Term, commencing on the Commencement Date, and (ii) Additional Rent, at the
times and in the manner set forth in this Lease. The foregoing and any other provision of this
Lease to the contrary notwithstanding, Landlord hereby waives Tenant’s obligation to pay (a) Fixed
Rent for the entire Premises for the 3 month period that begins on the Commencement Date; and (b)
Fixed Rent for Suite 4A for the 6 month period that begins on the Commencement Date. Nothing
herein contained shall be deemed to diminish or relieve Tenant of its obligation to pay in
accordance with the terms of this Lease all other sums owed by Tenant to Landlord under the Lease
(other than Base Rent for the aforementioned periods).

     Section 2.4 First Month’s Rent. Tenant shall pay one month’s Fixed Rent upon the execution of
this Lease.

ARTICLE 3

USE AND OCCUPANCY

     Section 3.1 Permitted Uses. Tenant shall use and occupy the Premises for the Permitted Uses
and for no other purpose. Tenant shall not use or occupy or permit the use or occupancy of any
part of the Premises in a manner constituting a Prohibited Use. If Tenant uses the Premises for a
purpose constituting a Prohibited Use, violating any Requirement, or causing the Building to be in
violation of any Requirement, then Tenant shall promptly discontinue such use upon notice of such
violation. Tenant, at its expense, shall procure and at all times maintain and comply with the
terms and conditions of all licenses and permits required for the lawful conduct of the Permitted
Uses in the Premises, other than with respect to those licenses and permits that Landlord is
responsible for obtaining and maintaining.

     Section 3.2 Parking Facilities. Tenant shall have the right to use 3.98 parking spaces per
1,000 rentable square feet in the Premises for no additional Rent (except for Additional Rent
payable in accordance with Article 7 below) during the Term and any extension thereof (except as
set forth in Section 4 of Rider No. 1–Extension Option to the contrary). Parking spaces shall be
provided on an unreserved basis in common with other Building tenants. Notwithstanding the
foregoing, Tenant acknowledges that Landlord may temporarily relocate, or specifically designate
the location of, Tenant’s parking spaces from time to time as a result of emergencies or repair and
maintenance work. Tenant agrees that it and its employees shall observe reasonable safety
precautions in the use of the parking structure and surface lots, and shall at all times abide by
all reasonable rules and regulations promulgated by Landlord, (or any parking operator selected by
Landlord) governing the use of the parking structure and surface lots. It is understood and agreed
that Landlord does not assume any responsibility for any damage or loss to any automobiles parked
in the parking structure or surface lots or to any personal property located therein, or for any
injury sustained by any person in or about the parking structure or surface lots. Any provision of
this Lease to the contrary notwithstanding, Landlord and Tenant acknowledges that the Building
parking facilities were designed to accommodate approximately 3.98 parking spaces per 1,000
rentable square feet in the Building and that Tenant might have a need for more than 3.98 parking
spaces per 1,000 rentable square feet in the Premises. If Tenant notifies Landlord that Tenant
desires more than 3.98 parking spaces per 1,000 rentable square feet in the Premises or if Landlord
determines on its own that Tenant is consistently using more

- 6 -

 

than 3.98 parking spaces per 1,000 rentable square feet in the Premises, Landlord have the right
to attempt to accommodate Tenant’s parking needs, at Tenant’s expense, by implementing such
parking policies and procedures as Landlord determines from time to time to be reasonably
necessary to accommodate the parking needs of Tenant and of the other tenants at the Building
including, for example, restriping all or some of the parking areas; specifically designating the
location of Tenant’s parking spaces (provided, however, if Landlord specifically designates the
location of Tenant’s parking spaces, the percentage of Tenant’s total parking spaces that are
located in the parking garage shall equal or exceed the percentage of all parking spaces at the
Building that are in the parking garage. Thus, if 70% of the Building’s parking spaces are located
in the parking garage, then at least 70% of Tenant’s designated spaces must be in the parking
garage).

ARTICLE 4

CONDITION OF THE PREMISES

     Section 4.1 Condition. Tenant agrees (a) to accept possession of the Premises upon
Substantial Completion of the Premises in accordance with the terms of the Work Letter attached
hereto as Exhibit C, and (b) except for the Tenant Improvements described in the Work Letter, that
Landlord has no obligation to perform any work, supply any materials, incur any expense or make
any alterations or improvements to prepare the Premises for Tenant’s occupancy. Tenant’s occupancy
of any part of the Premises shall be conclusive evidence, as against Tenant, that (i) Landlord has
Substantially Completed any work to be performed by Landlord under this Lease, (ii) Tenant has
accepted possession of the Premises in its then current condition and (iii) at the time such
possession was taken, the Premises and the Building were in a good and satisfactory condition as
required by this Lease.

     Section 4.2 Landlord’s Contribution. [Intentionally omitted]

     Section 4.3 Existing Furnishings. Tenant acknowledges that as of the Commencement Date, the
Premises contains or will contain certain furniture, fixtures and equipment, including, without
limitation, the furniture described on Exhibit G-Existing Furnishings to this
Lease (the “Existing Furnishings”). Tenant shall have the right to use the Existing Furnishings
throughout the Term and any extension thereof, provided that (i) Tenant shall maintain he Existing
Furnishings in good condition and repair at Tenant’s expense, (ii) the Existing Furnishing shall
at all times remain Landlord’s property and shall be during the Term, (iii) at no time shall
Tenant remove any of the Existing Furnishings from the Premises, and (iv) Tenant shall be
surrender the Existing Furnishings to Landlord upon the expiration or sooner termination of this
Lease in good order and repair, reasonable wear and tear excepted. Within thirty (30) days after
written demand therefor, Tenant shall pay or reimburse Landlord for all personal property, use and
other taxes payable in connection with the Existing Furnishings.

     Section 4.3 Tenant Access. Subject to the provisions of this paragraph, Tenant will be allowed
to enter into the Premises prior to the Commencement Date so that Tenant can complete through
Tenant’s contractor or vendor the cabling of telephone, computer, security systems and specialized
office equipment, at the same time that Landlord’s contractors are working in the the

- 7 -

 

Premises. Any person granted access on behalf of Tenant pursuant to this paragraph shall comply
with all reasonable requirements that Landlord and Contractor may impose and shall strictly observe
all rules and regulations promulgated by Contractor and/or Landlord relating to the job site,
including without limitation those relating to safety. If required by Landlord, each person granted
access shall sign a release and waiver of liability form as reasonably required by Landlord. Tenant
shall have the insurance required pursuant to the Lease in full force and effect (and naming
Landlord and any construction supervisor as additional insureds thereunder) prior to entering the
Building and/or the Premises, and all relevant terms and conditions of this Lease (excluding the
payment of Fixed Rent) shall be fully applicable to Tenant’s early access of the Building and/or
the Premises. Tenant shall indemnify and hold Landlord and Contractor harmless from and against any
cost, damage, claim, liability or expense (including reasonable attorneys’ fees) arising out of or
in connection with the entry into, or activities at, the Building and/or the Premises by Tenant
and all of Tenant’s employees, agents, contractors, subcontractors and invitees. Any delay in the
construction of the Tenant Improvements which results from the entry into the Building and/or the
Premises by Tenant or Tenant’s employees, agents, contractors, subcontractors or invitees or their
activities in the Building and/or the Premises, shall constitute a Tenant Delay. The foregoing
license to enter is conditioned upon Tenant’s workmen and mechanics working in harmony and not
interfering with the Contractor or with any other tenants or their contractors. Contractor shall
use commercially reasonable efforts to facilitate and coordinate with Tenant’s vendors and
contractors. If, at any time, such entry shall cause disharmony or interference therewith, the
license granted by the terms of this paragraph may be withdrawn by Landlord on twenty-four hours
notice to Tenant’s Representative. Landlord shall not be liable in any way for any injury, loss or
damage which may occur to any of the Tenant’s installation so made, the same being solely at
Tenant’s risk.

ARTICLE 5

ALTERATIONS

     Section 5.1 Tenant’s Alterations.

          (a) Tenant shall not make any alterations, additions or other physical changes
in or about the Premises (collectively, “Alterations”), other than (A) decorative Alterations
such as painting, wall coverings and floor coverings and (B) Alterations that cost less than
$25,000 in the aggregate for a single project and that do not require the issuance of any building or
other permit (collectively, “Decorative Alterations”), without Landlord’s prior consent,
which consent shall not be unreasonably withheld if such Alterations (i) are non-structural and do
not affect any Building Systems, (ii) affect only the Premises and are not visible from outside of
the Premises, (iii) do not affect the non-residential use permit issued for the Building or the
Premises, and (iv) do not violate any Requirement.

          (b) Plans and Specifications. Prior to making any Alterations, Tenant, at its
expense, shall (i) submit to Landlord for its approval, detailed plans and specifications
(“Plans”) of each proposed Alteration (other than Decorative Alterations), and with respect to any
Alteration affecting any Building System, evidence that the Alteration has been designed by,
or

 - 8 - 

 

reviewed and approved by, Landlord’s designated engineer for the affected Building System, (ii)
obtain all permits, approvals and certificates required by any Governmental Authorities, (iii)
furnish to Landlord duplicate original policies or certificates of worker’s compensation (covering
all persons to be employed by Tenant, and Tenant’s contractors and subcontractors in connection
with such Alteration) and commercial general liability (including property damage coverage)
insurance and Builder’s Risk coverage (as described in Article 11) all in such form, with such
companies, for such periods and in such amounts as Landlord may reasonably require, naming
Landlord, Landlord’s Agent, any Lessor and any Mortgagee as additional insureds, and (iv) furnish
to Landlord reasonably satisfactory evidence of Tenant’s ability to complete and to fully pay for
such Alterations (other than Decorative Alterations). Tenant shall give Landlord a reasonably
detailed description of any Decorative Alteration made at the Premises within seven (7) days after
Landlord’s request therefor.

          (c) Governmental Approvals. Tenant, at its expense, shall, as and when required, promptly
obtain certificates of partial and final approval of such Alterations required by any Governmental
Authority and shall furnish Landlord with copies thereof, together with “as-built” Plans for such
Alterations and, if Tenant engages the services of an architect (other than Tenant’s in-house
architect(s)) in connection with the Alterations, prepared on an AutoCAD Computer Assisted
Drafting and Design System (or such other system or medium as Landlord may accept), using naming
conventions issued by the American Institute of Architects in June, 1990 (or such other naming
conventions as Landlord may accept) and magnetic computer media of such record drawings and
specifications translated in DFX format or another format acceptable to Landlord.

     Section 5.2 Manner and Quality of Alterations. All Alterations shall be performed (a) in a
good and workmanlike manner and free from defects, (b) substantially in accordance with the Plans,
and by contractors approved by Landlord, and (c) in compliance with all Requirements, the terms of
this Lease and all construction procedures and regulations then prescribed by Landlord. All
materials and equipment shall be of first quality and at least equal to the applicable standards
for the Building then established by Landlord, and no such materials or equipment (other than
Tenant’s Property) shall be subject to any lien or other encumbrance.

     Section 5.3 Removal of Tenant’s Property. Tenant’s Property shall remain the property of
Tenant and Tenant may remove the same at any time on or before the Expiration Date. If, at the time
that Landlord approves any Specialty Alterations, Landlord informs Tenant that Tenant must remove
such Specialty Alterations on or prior to the Expiration Date, then Tenant shall, at Tenant’s
expense, remove such Specialty Alterations and close up any slab penetrations in the Premises on or
prior to the Expiration Date. Landlord will not require Tenant to remove any Specialty Alterations
and slab penetrations constructed or installed by Landlord as part of the initial Tenant
Improvements at the Premises. Tenant shall repair and restore, in a good and workmanlike manner,
any damage to the Premises or the Building caused by Tenant’s removal of any Specialty Alterations
or Tenant’s Property or by the closing of any slab penetrations, and upon default thereof, Tenant
shall reimburse Landlord for Landlord’s cost of repairing and restoring such damage. Any Specialty
Alterations or Tenant’s Property not so removed shall be deemed abandoned and Landlord may remove
and dispose of same, and repair and restore any damage caused thereby, at Tenant’s cost and without
accountability to Tenant.

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All other Alterations shall become Landlord’s property upon termination of this Lease. Landlord
and Tenant agree that none of the initial Tenant Improvements (as defined in Exhibit C) are
Specialty Alterations nor shall Tenant be required to remove any of the initial Tenant
Improvements upon the expiration or earlier termination of this Lease.

     Section 5.4 Mechanic’s Liens. Tenant, at its expense, shall discharge any lien or charge
recorded or filed against the Real Property in connection with any work done or claimed to have
been done by or on behalf of, or materials furnished or claimed to have been furnished to,
Tenant, within 10 days after Tenant’s receipt of notice thereof by payment, filing the bond
required by law or otherwise in accordance with law.

     Section 5.5 Labor Relations. Tenant shall not employ, or permit the employment of, any
contractor, mechanic or laborer, or permit any materials to be delivered to or used in the
Building, if, in Landlord’s sole judgment, such employment, delivery or use will interfere or cause
any conflict with other contractors, mechanics or laborers engaged in the construction, maintenance
or operation of the Building by Landlord, Tenant or others. If such interference or conflict
occurs, upon Landlord’s request, Tenant shall cause all contractors, mechanics or laborers causing
such interference or conflict to leave the Building immediately.

     Section 5.6 Tenant’s Costs. Tenant shall pay promptly to Landlord, upon demand, all
out-of-pocket costs actually incurred by Landlord in connection with Tenant’s Alterations,
including costs incurred in connection with (a) Landlord’s review of the Alterations (including
review of requests for approval thereof) and (b) the provision of Building personnel during the
performance of any Alteration, to operate elevators or otherwise to facilitate Tenant’s
Alterations. In addition, if Tenant’s Alterations cost more than $25,000 and (i) Landlord and
Tenant agree that Landlord will supervise the construction of such Alterations, Tenant shall pay
to Landlord, upon demand, an administrative fee in an amount equal to 5% of the total cost of such
Alterations; and (ii) Landlord does not supervise the construction of such Alterations, Tenant
shall pay to Landlord, upon demand, an administrative fee in an amount equal to 2 1/2% of the
total cost of such Alterations.

     Section 5.7 Tenant’s Equipment. Tenant shall provide notice to Landlord prior to moving any
heavy machinery, heavy equipment, freight, bulky matter or fixtures
(collectively, “Equipment”)
into or out of the Building and shall pay to Landlord any costs actually incurred by Landlord in
connection therewith. If such Equipment requires special handling, Tenant agrees (a) to employ
only persons holding all necessary licenses to perform such work, (b) all work performed in
connection therewith shall comply with all applicable Requirements and (c) such work shall be done
only during hours designated by Landlord.

     Section 5.8 Legal Compliance. The approval of Plans, or consent by Landlord to the making of
any Alterations, does not constitute Landlord’s representation that such Plans or Alterations
comply with any Requirements. Landlord shall not be liable to Tenant or any other party in
connection with Landlord’s approval of any Plans, or Landlord’s consent to Tenant’s performing any
Alterations. If any Alterations made by or on behalf of Tenant, require Landlord to make any
alterations or improvements to any part of the Building in order to comply with any

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Requirements, Tenant shall pay all costs and expenses incurred by Landlord in connection with such
alterations or improvements.

     Section 5.9 Floor Load. Tenant shall not place a load upon any floor of the Premises that
exceeds 80 pounds per square foot “live load”. Landlord reserves the right to reasonably designate
the position of all Equipment which Tenant wishes to place within the Premises, and to place
limitations on the weight thereof.

ARTICLE 6

REPAIRS

     Section 6.1 Landlord’s Repair and Maintenance. Landlord shall operate, maintain and, except
as provided in Section 6.2 hereof, make all necessary repairs (both structural and nonstructural)
to (i) the Building Systems, and (ii) the Common Areas, in conformance with standards applicable
to Comparable Buildings.

     Section 6.2 Tenant’s Repair and Maintenance. Tenant shall promptly, at its expense and in
compliance with Article 5, make all nonstructural repairs to the Premises and the fixtures,
equipment and appurtenances therein (including any supplemental HVAC (other than as set forth in
Section 6.4(b) to the contrary with respect to the Supplemental HVAC Units), specialty lighting or
Specialty Alteration) (collectively “Tenant Fixtures”) as and when needed to preserve the Premises
in good working order and condition, except for reasonable wear and tear and damage for which
Tenant is not responsible. All damage to the Building or to any portion thereof, or to any Tenant
Fixtures requiring structural or nonstructural repair caused by or resulting from any act,
omission, negligence or willful misconduct on the part of a Tenant Party or during the moving of
Tenant’s Property or Equipment into, within or out of the Premises by a Tenant Party, shall be
repaired at Tenant’s expense by (i) Tenant, if the required repairs are nonstructural in nature
and do not affect any Building System, or (ii) Landlord, if the required repairs are structural in
nature, involve replacement of exterior window glass or affect any Building System. All Tenant
repairs shall be of good quality utilizing new construction materials.

     Section 6.3 Restorative Work. Landlord reserves the right to make all changes, alterations,
additions, improvements, repairs or replacements to the Building and Building Systems, including
changing the arrangement or location of entrances or passageways, doors and doorways, corridors,
elevators, stairs, toilets or other Common Areas (collectively, “Restorative Work”), as Landlord
deems necessary or desirable, and to take all material into the Premises required for the
performance of such Restorative Work provided that (a) the level of any Building service shall not
decrease in any material respect from the level required of Landlord in this Lease as a result
thereof (other than temporary changes in the level of such services during the performance of any
such Restorative Work) and (b) Tenant is not deprived of reasonable access to the Premises.
Landlord shall use reasonable efforts to minimize interference with Tenant’s use and occupancy of
the Premises during the performance of such Restorative Work. There shall be no Rent abatement or
allowance to Tenant for a diminution of rental value, no actual or constructive eviction of Tenant,
in whole or in part, no relief from any of Tenant’s other

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obligations under this Lease, and no liability on the part of Landlord by reason of inconvenience,
annoyance or injury to business arising from Landlord, Tenant or others performing, or failing to
perform, any Restorative Work, unless Landlord has not used reasonable efforts to minimize
interference with Tenant’s use and occupancy of the Premises during the performance of such
Restorative Work and such failure results in Tenant’s use and enjoyment of the Premises being
substantially interfered with.

     Section 6.4 Supplemental HVAC System.

          (a) (i) At any time during the Term, Tenant shall have the right to elect to
use the supplemental HVAC units and the equipment related thereto located at the Premises on
the date of this Lease (collectively, the “Supplemental HVAC Units”). The foregoing
notwithstanding, prior to using any Supplemental HVAC Units, Tenant shall provide Landlord
with all equipment plans and specifications relating to the loads that would be imposed upon
the Supplemental HVAC System (hereinafter defined), and Landlord shall have the right to deny
Tenant use of the Supplemental HVAC Units if Landlord determines the Supplemental HVAC
System will not or might not be adequate to meet Tenant’s demand. If Landlord approves of
Tenant’s use of the Supplemental HVAC Units, Landlord’s engineer or contractor will activate
Tenant’s use of the Supplemental HVAC Units. The minimum period for which Tenant can elect
to use a Supplemental HVAC Unit is thirty (30) days and Tenant shall provide Landlord with at
least thirty (30) days prior written notice if Tenant elects at any time to discontinue using
any Supplemental HVAC Unit.

               (ii) If Tenant does not use the Supplemental HVAC System, Landlord shall have the right to
lock-off the Supplemental HVAC Units and/or to remove the Supplemental HVAC Units from the
Premises at Landlord’s expense.

          (b) (i) Except with respect to emergency repairs, Landlord will maintain,
repair and make any capital repairs or replacements of the Supplemental HVAC Units.

               (ii) If any Supplemental HVAC Units require emergency repairs, Tenant shall send Landlord
prompt written notice of such emergency and Tenant shall make arrangements for such repairs
directly with Landlord’s Supplemental HVAC Unit contractor. Landlord will provide Tenant with
written notice from time to time of the name and telephone number of Landlord’s Supplemental HVAC
Unit contractor.

               (iii) Landlord will maintain, repair and make any capital repairs or replacements to any
equipment relating to the operation of the Supplemental HVAC Units that is not located at the
Premises, which shall include the cooling tower(s) located on the roof of the Building that
generally serve(s) the supplemental HVAC units presently located in the Building (collectively,
the “Supplemental Common Equipment”). The Supplemental HVAC Units and the Supplemental Common
Equipment are together called the “Supplemental HVAC System.”

          (c) Beginning on the date on which Tenant commences to use the
Supplemental HVAC System and continuing thereafter during the Term for so long as Tenant has
elected to use any Supplemental HVAC Unit:

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               (i) Tenant shall pay all costs incurred by Landlord and/or Tenant during the Term in
connection with the ordinary maintenance and emergency and non-emergency repairs and replacements
to the Supplemental HVAC Units (whether for parts, labor, warranty coverage or otherwise) (the
“Supplemental Maintenance Costs”). If Tenant directly incurs any Supplemental Maintenance Costs,
Tenant shall pay such Supplemental Maintenance Costs as and when due and owing to the applicable
Supplemental HVAC Unit service provider.

               (ii) Tenant shall pay Tenant’s Supplemental Share of all costs incurred by Landlord in
connection with the ordinary maintenance and emergency and non-emergency repairs and replacements
of the Supplemental Common Equipment (whether for parts, labor, warranty coverage or otherwise)
(the “Supplemental Common Costs”). “Tenant’s Supplemental Share” means a fraction, the numerator of
which shall be the tonnage rating of the Supplemental HVAC Units in the Premises and the
denominator of which shall be the tonnage rating of all supplemental HVAC units in the Building
(exclusive of any such units that are owned by a tenant of the Building) that any tenant of the
Building from time to time elects to use.

               (iii) In addition to the Supplemental Maintenance Costs and Tenant’s Supplemental Share,
Tenant shall pay to Landlord the monthly electricity charge for the Supplemental HVAC System as
reasonably established from time to time by Landlord (the
“Supplemental Charge”). The current
Supplemental Charge is $70 per ton per month.

               (iv) All sums payable by Tenant to Landlord under this Section shall constitute Additional
Rent and shall be due and payable to Landlord within thirty (30) days after Landlord sends Tenant
an invoice therefor. Landlord will be entitled to an administrative charge of ten percent (10%) of
all costs payable by Tenant under this Section, other than the Supplemental Charge (the
“Supplemental Administrative Fee”).

          (d) Landlord shall have no liability arising from any failure of the
Supplemental HVAC System or any component thereof to operate properly or at all at any time
including, without limitation, no liability if any such failure results in the Premises not
being reasonably comfortable or useable at all, any of Tenant’s equipment not functioning or not
functioning fully or properly, Tenant missing or being delayed in meeting any business or
other deadlines, or Tenant incurring any other costs or damages.

          (e) Tenant shall cooperate with Landlord and shall abide by the rules and
regulations which Landlord may reasonably prescribe for the proper functioning and protection
of the Supplemental HVAC System.

     Section 6.5 Emergency Power System.

          (a) The Building is equipped with an emergency power generator and an uninterrupted power
supply system (collectively, the “Emergency Power System”). At any time during the Term, Tenant
shall have the right to elect to connect certain equipment at the Premises to the Emergency Power
System. The foregoing notwithstanding, prior to connecting any equipment to the Emergency Power
System, Tenant shall provide Landlord with all equipment plans and specifications relating to the
loads that would be imposed upon the Emergency Power

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System, and Landlord shall have the right to deny Tenant use of the Emergency Power System to the
extent that Landlord determines that Tenant’s usage might or would exceed the usage allotment
that Landlord has determined for the Premises. If Landlord approves of Tenant’s use of the
Emergency Power System, at Landlord’s election, either Landlord’s contractor will connect
Tenant’s approved equipment to the Emergency Power System or Tenant’s contractor will connect
Tenant’s approved equipment to the Emergency Power System.

          (b) Landlord will operate, maintain, repair and make any capital repairs or
replacements to the Emergency Power System.

          (c) (i) If Tenant elects to connect any equipment to the Emergency Power
System, Tenant shall pay to Landlord Tenant’s EPS Share of all costs and expenses incurred by
Landlord on or after the date on which such equipment is connected to the Emergency Power
System in connection with the operation, maintenance, repair and replacement of the Emergency
Power System (“EPS Costs”). “Tenant’s EPS Share” means a fraction, the numerator of which
shall be the potential load (as reasonably determined by Landlord) of Tenant’s equipment that
is connected to the Emergency Power System and the denominator of which shall be the potential
load (as reasonably determined by Landlord) of all equipment that tenants of the Building from
time to time elect to have connected to the Emergency Power System.

               (ii) All sums payable by Tenant to Landlord under this Section shall constitute Additional
Rent and shall be due and payable to Landlord within thirty (30) days after Landlord sends Tenant
an invoice therefor. Landlord will be entitled to an administrative
charge of ten percent (10%) of
all costs payable by Tenant under this Section (the “EPS Fee”).

          (d) Landlord shall have no liability arising from any failure of the Emergency
Power System or any component thereof to operate properly or at all at any time including,
without limitation, no liability if any such failure results in any of Tenant’s equipment not
functioning or not functioning fully or properly, Tenant losing any data, Tenant missing or
being delayed  in meeting any business or other deadlines, or Tenant incurring any other costs or
damages.

          (e) Tenant shall cooperate with Landlord and shall abide by the rules and
regulations which Landlord may reasonably prescribe for the proper functioning and protection
of the Emergency Power System.

ARTICLE 7

INCREASES IN TAXES AND OPERATING EXPENSES

          Section 7.1 Definitions. For the purposes of this Article 7, the following terms shall
have the meanings set forth below:

          (a) “Assessed Valuation” shall mean the amount for which the Real Property is assessed
by the County Assessor of Fairfax County for the purpose of imposition of Taxes.

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          (b) “Base Operating Expenses” shall mean the Operating Expenses for the
Base Year.

          (c) “Base Taxes” shall mean the Taxes payable on account of the Base Year.

          (d) “Comparison Year” shall mean any calendar year commencing
subsequent to the Base Year.

          (e) “Operating Expenses” shall mean the aggregate of all costs and expenses
paid or incurred by or on behalf of Landlord in connection with the ownership, operation,
repair and maintenance of the Real Property, including (i) capital improvements only if such capital
improvement either (A) is reasonably intended to result in a reduction in Operating Expenses
(as for example, a labor-saving improvement) provided, the amount included in Operating Expenses
in any Comparison Year shall not exceed an amount equal to the savings reasonably anticipated
to result from the installation and operation of such improvement, and/or (B) is made during
any Comparison Year in compliance with Requirements, (ii) reasonable rent for the management
office, if any, in the Building, and (iii) all costs relating to the ownership, operation,
repair and maintenance of the Building and any parking facilities serving the Building. Such capital
improvements shall be amortized (with interest at the Base Rate) on a straight-line basis over
its useful life as Landlord shall reasonably determine, and the amount included in Operating
Expenses in any Comparison Year shall be equal to the annual amortized amount. Operating
Expenses shall not include any Excluded Expenses. If during all or part of the Base Year or
any Comparison Year, Landlord shall not furnish any particular item(s) of work or service (which
would otherwise constitute an Operating Expense) to any leasable portions of the Building for
any reason, then, for purposes of computing Operating Expenses for such period, the amount
included in Operating Expenses for such period shall be increased by an amount equal to the
costs and expenses that would have been reasonably incurred by Landlord during such period if
Landlord had furnished such item(s) of work or service to such portion of the Building. In
determining the amount of Operating Expenses for the Base Year or any Comparison Year, if
less than 95% of the Building rentable area is occupied by tenants at any time during any such
Base Year or Comparison Year, Operating Expenses that vary with the Building occupancy level
shall be determined for such Base Year or Comparison Year to be an amount equal to the like
expenses which would normally be expected to be incurred had such occupancy been 95%
throughout such Base Year or Comparison Year.

          (f) “Statement” shall mean a reasonably detailed statement containing a
comparison of (i) the Taxes payable for the Base Year and for any Comparison Year, or (ii) the
Base Operating Expenses and the Operating Expenses payable for any Comparison Year.

          (g) “Taxes” shall mean (i) all real estate taxes, assessments, sewer and water
rents, rates and charges and other governmental levies, impositions or charges, whether
general,
special, ordinary, extraordinary, foreseen or unforeseen, which may be assessed, levied or
imposed upon all or any part of the Real Property, and (ii) all expenses (including reasonable
attorneys’ fees and disbursements and experts’ and other witnesses’ fees) incurred in
contesting any of the foregoing or the Assessed Valuation of the Real Property. Taxes shall not include
(x) interest or penalties incurred by Landlord as a result of Landlord’s late payment of Taxes, or
(y)

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franchise, transfer, gift, inheritance, estate or net income taxes imposed upon Landlord. For
purposes hereof, “Taxes” for any calendar year shall be deemed to be the Taxes which are assessed,
levied or imposed for such calendar year regardless of when due or paid. If Landlord elects to pay
any assessment in annual installments, then (i) such assessment shall be deemed to have been so
divided and to be payable in the maximum number of installments permitted by law, and (ii) there
shall be deemed included in Taxes for each Comparison Year the installments of such assessment
becoming payable during such Comparison Year, together with interest payable during such
Comparison Year on such installments and on all installments thereafter becoming due as provided
by law, all as if such assessment had been so divided. If at any time the methods of taxation
prevailing on the Effective Date shall be altered so that in lieu of or as an addition to the
whole or any part of Taxes, there shall be assessed, levied or imposed (1) a tax, assessment,
levy, imposition or charge based on the income or rents received from the Real Property whether or
not wholly or partially as a capital levy or otherwise, (2) a tax, assessment, levy, imposition or
charge measured by or based in whole or in part upon all or any part of the Real Property and
imposed upon Landlord, (3) a license fee measured by the rents, or (4) any other tax, assessment,
levy, imposition, charge or license fee however described or imposed, including business
improvement district impositions then all such taxes, assessments, levies, impositions, charges or
license fees or the part thereof so measured or based shall be deemed to be Taxes.

     Section 7.2 Tenant’s Tax Payment.

          (a) If the Taxes payable for any Comparison Year exceed the Base Taxes, Tenant shall pay to
Landlord Tenant’s Proportionate Share of such excess (“Tenant’s Tax Payment”). For each Comparison
Year, Landlord shall furnish to Tenant a statement setting forth Landlord’s reasonable estimate of
Tenant’s Tax Payment for such Comparison Year (the “Tax Estimate”). Tenant shall pay to Landlord on
the 1st day of each month during such Comparison Year an amount equal to 1/12 of the Tax Estimate
for such Comparison Year. If Landlord furnishes a Tax Estimate for a Comparison Year subsequent to
the commencement thereof, then (i) until the 1st day of the month following the month in
which the Tax Estimate is furnished to Tenant, Tenant shall pay to Landlord on the 1st
day of each month an amount equal to the monthly sum payable by Tenant to Landlord under this
Section 7.2 during the last month of the preceding Comparison Year, (ii) promptly after the Tax
Estimate is furnished to Tenant or together therewith, Landlord shall give notice to Tenant stating
whether the installments of Tenant’s Tax Estimate previously made for such Comparison Year were
greater or less than the installments of Tenant’s Tax Estimate to be made for such Comparison Year
in accordance with the Tax Estimate, and (x) if there shall be a deficiency, Tenant shall pay the
amount thereof within 30 days after demand therefor, or (y) if there shall have been an
overpayment, Landlord shall credit the amount thereof against subsequent payments of Rent due
hereunder, and (iii) on the 1st day of the month following the month in which the Tax
Estimate is furnished to Tenant, and on the 1st day of each month thereafter throughout
the remainder of such Comparison Year, Tenant shall pay to Landlord an amount equal to 1/12 of the
Tax Estimate. Notwithstanding the foregoing, Tenant shall have no obligation to pay Tenant’s Tax
Payment for the first 12 months after the Commencement Date.

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          (b) As soon as reasonably practicable after Landlord has determined the Taxes
for a Comparison Year, Landlord shall furnish to Tenant a Statement for such Comparison Year.
If the Statement shall show that the sums paid by Tenant under Section 7.2(a) exceeded the
actual amount of Tenant’s Tax Payment for such Comparison Year, Landlord shall credit the
amount of such excess against subsequent payments of Rent due hereunder, or if the Term has
expired, Landlord shall refund the overpayment to Tenant within 30 days after the year-end Tax
reconciliation.. If the Statement for such Comparison Year shall show that the sums so paid
by Tenant were less than Tenant’s Tax Payment for such Comparison Year, Tenant shall pay the
amount of such deficiency within 30 days after delivery of the Statement to Tenant.

          (c) Only Landlord may institute proceedings to reduce the Assessed Valuation
of the Real Property and the filings of any such proceeding by Tenant without Landlord’s
consent shall constitute an Event of Default. If the Taxes payable for the Base Year are reduced, the
Base Taxes shall be correspondingly revised, the Additional Rent previously paid or payable on
account of Tenant’s Tax Payment hereunder for all Comparison Years shall be recomputed on
the basis of such reduction, and Tenant shall pay to Landlord within 30 days after being
billed therefor, any deficiency between the amount of such Additional Rent previously computed and
paid by Tenant to Landlord, and the amount due as a result of such recomputations. If
Landlord receives a refund of Taxes for any Comparison Year, Landlord shall credit against subsequent
payments of Rent due hereunder, an amount equal to Tenant’s Proportionate Share of the refund,
net of any expenses incurred by Landlord in achieving such refund, which amount shall not
exceed Tenant’s Tax Payment paid for such Comparison Year. Landlord shall not be obligated
to file any application or institute any proceeding seeking a reduction in Taxes or the
Assessed Valuation. The benefit of any exemption relating to all or any part of the Real Property
shall accrue solely to the benefit of Landlord and Taxes shall be
computed without taking into
account any such exemption or abatement.

          (d) Tenant shall be responsible for any applicable occupancy or rent tax now
in effect or hereafter enacted and, if payable by Landlord, Tenant shall promptly pay such
amounts to Landlord, upon Landlord’s demand.

     Section 7.3 Tenant’s Operating Payment.

          (a) If the Operating Expenses payable for any Comparison Year exceed the Base Operating
Expenses, Tenant shall pay to Landlord Tenant’s Proportionate Share of such excess (“Tenant’s
Operating Payment”). For each Comparison Year, Landlord shall furnish to Tenant a written statement
setting forth Landlord’s reasonable estimate of Tenant’s Operating Payment for such Comparison
Year, based upon such year’s budget (the “Estimate”). Tenant shall pay to Landlord on the 1st day
of each month during such Comparison Year an amount equal to 1/12 of Landlord’s estimate of
Tenant’s Operating Payment for such Comparison Year. If Landlord furnishes an Estimate for a
Comparison Year subsequent to the commencement thereof, then (a) until the 1st day of the month
following the month in which the Estimate is furnished to Tenant, Tenant shall pay to Landlord on
the 1st day of each month an amount equal to the monthly sum payable by Tenant to Landlord under
this Section 7.3 during the last month of the preceding Comparison Year, (b) promptly after the
Estimate is furnished to Tenant or together therewith, Landlord shall give notice to Tenant stating
whether the installments of

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Tenant’s Operating Payment previously made for such Comparison Year were greater or less than the
installments of Tenant’s Operating Payment to be made for such Comparison Year in accordance with
the Estimate, and (i) if there shall be a deficiency, Tenant shall pay the amount thereof within
30 days after demand therefor, or (ii) if there shall have been an overpayment, Landlord shall
credit the amount thereof against subsequent payments of Rent due hereunder, and (c) on the 1st
day of the month following the month in which the Estimate is furnished to Tenant, and on the 1st
day of each month thereafter throughout the remainder of such Comparison Year, Tenant shall pay to
Landlord an amount equal to 1/12 of Tenant’s Operating Payment shown on the Estimate.
Notwithstanding the foregoing, Tenant shall have no obligation to pay Tenant’s Operating Payment
for the first 12 months after the Commencement Date.

          (b) On or before May 1st of each Comparison Year, Landlord shall furnish to Tenant a
Statement for the immediately preceding Comparison Year. If the Statement shows that the sums paid
by Tenant under Section 7.3(a) exceeded the actual amount of Tenant’s Operating Payment for such
Comparison Year, Landlord shall credit the amount of such excess against subsequent payments of
Rent due hereunder, or if the Term has expired, Landlord shall refund the overpayment to Tenant
within 30 days after the year-end Operating Expense reconciliation. If the Statement shows that
the sums so paid by Tenant were less than Tenant’s Operating Payment for such Comparison Year,
Tenant shall pay the amount of such deficiency within 30 days after Tenant’s receipt of the
Statement.

     Section 7.4 Non-Waiver; Disputes.

          (a) Landlord’s failure to render any Statement on a timely basis with respect
to any Comparison Year shall not prejudice Landlord’s right to thereafter render a Statement
with respect to such Comparison Year or any subsequent Comparison Year, nor shall the rendering of
a Statement prejudice Landlord’s right to thereafter render a corrected Statement for that
Comparison Year.

          (b) Each Statement sent to Tenant shall be conclusively binding upon Tenant
unless Tenant (i) pays to Landlord when due the amount set forth in such Statement, without
prejudice to Tenant’s right to dispute such Statement, and (ii) within 60 days after such
Statement is sent, sends a notice to Landlord objecting to such Statement and specifying the
reasons therefor. Tenant agrees that Tenant will not employ, in connection with any dispute
under this Section, any person who is to be compensated in whole or in part, on a contingency
fee basis. If the parties are unable to resolve any dispute as to the correctness of such
Statement within 30 days following such notice of objection, either party may refer the issues raised to
a national firm reasonably acceptable to the other with at least 200 certified public
accountants, provided that the selected firm does not provide accounting or consulting services to either
party and does not otherwise have an affiliation or business relationship with either party and the
individual auditor’s area of expertise includes lease expense analysis. Notwithstanding the
immediately preceding sentence, the parties hereby agree that any of the “Big Five” public
accounting firms shall be acceptable, provided such firm has not served as an accountant for
Landlord or Tenant within the preceding 12 month period. The decision of the agreed upon
accountants shall be conclusively binding upon Landlord and Tenant. In connection therewith,
Tenant and such accountants shall execute and deliver to Landlord a confidentiality agreement, in

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form and substance reasonably satisfactory to Landlord, whereby such parties agree not to disclose
to any third party any of the information obtained in connection with such review. Tenant shall
pay the fees and expenses relating to such procedure, unless such accountants determine that
Landlord overstated Operating Expenses by more than 5% for such Comparison Year, in which case
Landlord shall pay such fees and expenses.

     Section 7.5 Final Year of Term. If the Expiration Date occurs on a date other than December
31st, any Additional Rent under this Article 7 for the Comparison Year in which such Expiration
Date occurs shall be apportioned on the basis of the number of days in the period from January 1st
to the Expiration Date. Upon the expiration or earlier termination of this Lease, any Additional
Rent under this Article 7 shall be paid or adjusted within 30 days after submission of the
Statement.

     Section 7.6 No Reduction in Rent. In no event shall any decrease in Operating Expenses or
Taxes in any Comparison Year below the Base Operating Expenses or Base Taxes, as the case may be,
result in a reduction in the Fixed Rent or any other component of Additional Rent payable
hereunder.

     Section 7.7 Cap on Controllables. Any provision of this Lease to the contrary
notwithstanding, Landlord and Tenant agree as follows:

          (a) For purposes of calculating Tenant’s liability for payment of Tenant’s
Share of Controllable Operating Expenses, Controllable Operating Expenses for any calendar
year after the Base Year shall be deemed not to have exceeded the
Cap. The “Cap” means the
product of the Controllable Operating Expenses incurred during the Base Year multiplied by
105% (compounded annually for each calendar year (or partial calendar year) after the Base
Year for which the Cap is being determined). For example, if the Controllable Operating Expenses
incurred during the Base Year were $10,000, then the Cap would be $10,500 (i.e., $10,000 x
105%) for the first calendar year after the Base Year; $11,025 (i.e., $10,500 x 105%) for the
second calendar year after the Base Year; $11,576.25 (i.e., $11,025 X 105%) for the third
calendar year after the Base Year; and so on.

          (b) “Controllable Operating Expenses” means all Operating Expenses other
than those incurred for: (i) property management fees; (ii) costs incurred to comply with
laws; (iii) [Intentionally Omitted]; (iv) property owner association dues and charges, (v) insurance
premiums, (vi) utility costs, (vii) [Intentionally Omitted], and (viii) costs incurred for ice
and snow removal.

          (c) All payment calculations under this Article shall be prorated for any partial
calendar years during the Term and all calculations shall be based upon Operating Expenses as
grossed-up in accordance with the terms of this Lease.

          (d) Taxes are not included in Operating Expenses and, therefore, Tenant’s Tax
Payments shall not be affected by the provisions of this Section.

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ARTICLE 8

REQUIREMENTS OF LAW

     Section 8.1 Compliance with Requirements.

          (a) Tenant’s Compliance. Tenant, at its expense, shall comply with all
Requirements applicable to Tenant’s use and occupancy of the Premises; provided, however, that
Tenant shall not be obligated to comply with any Requirements requiring any structural
alterations to the Building unless the application of such Requirements arises from (i) the
specific manner and nature of Tenant’s use or occupancy of the Premises, as distinct from general
office use, (ii) Alterations made by Tenant, or (iii) a breach by Tenant of any provisions of this
Lease. Any such repairs or alterations shall be made at Tenant’s expense by Tenant (1) in compliance
with Article 5 if such repairs or alterations are nonstructural and do not affect any Building
System, or (2) by Landlord if such repairs or alterations are structural or affect any
Building System. If Tenant obtains knowledge of any failure to comply with any Requirements applicable
to the Premises, Tenant shall give Landlord prompt notice thereof.

          (b) Hazardous Materials. Tenant shall not cause or permit (i) any Hazardous
Materials to be brought into the Building, (ii) the storage or use of Hazardous Materials in
any manner other than in full compliance with any Requirements, or (iii) the escape, disposal or
release of any Hazardous Materials within or in the vicinity of the Building. Nothing herein
shall be deemed to prevent Tenant’s use of any Hazardous Materials customarily used in the ordinary
course of office work, provided such use is in accordance with all Requirements. Tenant shall
be responsible, at its expense, for all matters directly or indirectly based on, or arising or
resulting from the presence of Hazardous Materials in the Building which is caused or permitted by a
Tenant Party. Tenant shall provide to Landlord copies of all communications received by Tenant
with respect to any Requirements relating to Hazardous Materials, and/or any claims made in
connection therewith. Landlord or its agents may perform environmental inspections of the
Premises at any time.

          (c) Landlord’s Compliance. Landlord shall comply with (or cause to be
complied with) all Requirements applicable to the Real Property which are not the obligation
of Tenant, to the extent that non-compliance would materially impair Tenant’s use and occupancy
of the Premises for the Permitted Uses.

          (d) Landlord’s Insurance. Tenant shall not cause or permit any action or
condition that would (i) invalidate or conflict with Landlord’s insurance policies, (ii)
violate applicable rules, regulations and guidelines of the Fire Department, Fire Insurance Rating
Organization or any other authority having jurisdiction over the Building, (iii) cause an
increase in the premiums of fire insurance for the Building over that payable with respect to
Comparable Buildings, or (iv) result in Landlord’s insurance companies’ refusing to insure the Building
or any property therein in amounts and against risks as reasonably determined by Landlord. If
fire insurance premiums increase as a result of Tenant’s failure to comply with the provisions of
this

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Section 8.1, Tenant shall promptly cure such failure and shall reimburse Landlord for the
increased fire insurance premiums paid by Landlord as a result of such failure by Tenant.

     Section 8.2 Fire and Life Safety. Landlord has installed a fire alarm and life safety system
in the Premises as part of its completion of the Building shell work. Any modifications to the fire
alarm and life safety systems installed as part of the Building shell work required by Tenant or
completed as part of the Tenant Improvements shall be at Tenant’s sole cost and expense, except
with respect to any such modifications that are part of the Tenant Improvements. If the Fire
Insurance Rating Organization or any Governmental Authority or any of Landlord’s insurers requires
or recommends any modifications and/or alterations be made or any additional equipment be supplied
in connection with the sprinkler system or fire alarm and life-safety system serving the Building
by reason of Tenant’s business, any Alterations performed by
Tenant or the location of the
partitions, Tenant’s Property, or other contents of the Premises, Landlord (to the extent outside
of the Premises) or Tenant (to the extent within the Premises) shall make such modifications and/or
Alterations, and supply such additional equipment, in either case at Tenant’s expense.

ARTICLE 9

SUBORDINATION

     Section 9.1 Subordination and Attornment.

          (a) This Lease is subject and subordinate to all Mortgages and Superior
Leases, and, at the request of any Mortgagee or Lessor, Tenant shall attorn to such Mortgagee
or Lessor, its successors in interest or any purchaser in a foreclosure sale.

          (b) If a Lessor or Mortgagee or any other person or entity shall succeed to the
rights of Landlord under this Lease, whether through possession or foreclosure action or the
delivery of a new lease or deed, then at the request of the successor landlord and upon such
successor landlord’s written agreement to accept Tenant’s attornment and to recognize Tenant’s
interest under this Lease, Tenant shall be deemed to have attorned to and recognized such
successor landlord as Landlord under this Lease. The provisions of this Section 9.1 are
self-operative and require no further instruments to give effect hereto; provided, however, that
Tenant shall promptly execute and deliver any instrument that such successor landlord may reasonably
request (i) evidencing such attornment, (ii) setting forth the terms and conditions of
Tenant’s tenancy, and (iii) containing such other terms and conditions as may be required by such
Mortgagee or Lessor, provided such terms and conditions do not increase the Rent, materially
increase Tenant’s obligations or materially and adversely affect Tenant’s rights under this
Lease. Upon such attornment this Lease shall continue in full force and effect as a direct lease
between such successor landlord and Tenant upon all of the terms, conditions and covenants set forth
in this Lease except that such successor landlord shall not be

               (i) liable for any act or omission of Landlord (except to the extent such act or omission
continues beyond the date when such successor landlord succeeds to Landlord’s interest and Tenant
gives notice of such act or omission);

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               (ii) subject to any defense, claim, counterclaim, set-off or offsets which Tenant may have
against Landlord;

               (iii) bound by any prepayment of more than one month’s Rent to any prior landlord;

               (iv) bound by any obligation to make any payment to Tenant which was required to be made
prior to the time such successor landlord succeeded to Landlord’s interest;

               (v) bound by any obligation to perform any work or to make improvements to the Premises except
for (x) repairs and maintenance required to be made by Landlord under this Lease, and (y) repairs
to the Premises as a result of damage by fire or other casualty or a partial condemnation pursuant
to the provisions of this Lease, but only to the extent that such repairs can reasonably be made
from the net proceeds of any insurance or condemnation awards, respectively, actually made
available to such successor landlord;

               (vi) bound by any modification, amendment, or renewal of this Lease made without successor
landlord’s consent after Tenant has notice of the identity of the successor landlord;

               (vii) liable for the repayment of any security deposit or surrender of any letter of credit,
unless and until such security deposit actually is paid or such letter of credit is actually
delivered to such successor landlord;

               (viii) liable for the payment of any unfunded tenant improvement allowance, refurbishment
allowance or similar obligation; or

               (ix) bound by any provisions of the Lease with respect to the Existing Furnishings.

          (c) Tenant shall from time to time within 10 days of request from Landlord execute and
deliver any documents or instruments that may be reasonably required by any Mortgagee or Lessor to
confirm any subordination.

     Section 9.2 Mortgage or Superior Lease Defaults. Any Mortgagee may elect that this Lease
shall have priority over the Mortgage and, upon notification to Tenant by such Mortgagee, this
Lease shall be deemed to have priority over such Mortgage, regardless of the date of this Lease.
In connection with any financing of the Real Property, Tenant shall consent to any reasonable
modifications of this Lease requested by any lending institution, provided such modifications do
not increase the Rent, materially increase the obligations, or materially and adversely affect the
rights, of Tenant under this Lease.

     Section 9.3 Tenant’s Termination Right. As long as any Superior Lease or Mortgage exists,
Tenant shall not seek to terminate this Lease by reason of any act or omission of Landlord until
(a) Tenant shall have given notice of such act or omission to all Lessors and/or Mortgagees, and
(b) a reasonable period of time shall have elapsed following the giving of notice of such default
and the expiration of any applicable notice or grace periods (unless such act or

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omission is not capable of being remedied within a reasonable period of time), during which period
such Lessors and/or Mortgagees shall have the right, but not the obligation, to remedy such act or
omission and thereafter diligently proceed to so remedy such act or omission. If any Lessor or
Mortgagee elects to remedy such act or omission of Landlord, Tenant shall not seek to terminate
this Lease so long as such Lessor or Mortgagee is proceeding with reasonable diligence to effect
such remedy.

     Section 9.4 Provisions. The provisions of this Article 9 shall (a) inure to the benefit of
Landlord, any future owner of the Building or the Real Property, Lessor or Mortgagee and any
sublessor thereof and (b) apply notwithstanding that, as a matter of law, this Lease may terminate
upon the termination of any such Superior Lease or Mortgage.

     Section 9.5 Nondisturbance Agreement. Any provision of this Section to the contrary
notwithstanding, Landlord shall use reasonable efforts (but without being obligated to commence
any legal or arbitration proceeding and without the expenditure of unreimbursed sums (other than
reasonable expenses that a landlord normally incurs in attempting to obtain a subordination,
non-disturbance and attornment agreement for its tenant, such as Landlord’s attorneys’ fees)) to
obtain for Tenant a subordination, non-disturbance and attornment agreement from all existing and
all future Mortgagees and Lessors, in the standard form customarily employed by such Mortgagee
and/or Lessor, provided that Tenant shall have no claim against Landlord, and Landlord shall have
no liability to Tenant and the subordination provided for in this Lease shall not be affected in
the event that Landlord is unable to obtain any such agreements.

     Section 9.6 Right to Terminate. Any provision of this Lease to the contrary notwithstanding,
if Landlord does not obtain for Tenant, within 30 days after the Effective Date (the “Delivery
Period”), a subordination, non-disturbance and attornment agreement from Landlord’s existing
Mortgagee, in the standard form customarily employed by such Mortgagee, Tenant shall have the
right, as Tenant’s sole remedy, to terminate this Lease by delivering to Landlord written notice
of such termination within the 7 day period following the Delivery Period. If Tenant so elects to
terminate this Lease, the termination shall be effective upon Landlord’s receipt of the aforesaid
notice. If Tenant fails to so terminate this Lease, Tenant shall be deemed to have waived its
right to such subordination, non-disturbance and attornment agreement.

ARTICLE 10

SERVICES

     Section 10.1 Electricity. Subject to any Requirements or any public utility rules or
regulations governing energy consumption, Landlord shall make or cause to be made, customary
arrangements with utility companies and/or public service companies to furnish electric current to
the Premises for Tenant’s use in accordance with Annex 1 to the Work Letter attached hereto. If
Landlord reasonably determines by the use of an electrical consumption survey or by other
reasonable means that Tenant is using electric current (including overhead fluorescent fixtures) in
excess of .60 kilowatt hours per square foot of usable area in the Premises per month, as

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determined on an annualized basis (“Excess Electrical Usage”), then Landlord shall have the right
to charge Tenant an amount equal to Landlord’s reasonable estimate of Tenant’s Excess Electrical
Usage, and shall have the further right to install an electric current meter, sub-meter or check
meter in the Premises (a “Meter”) to measure the amount of electric current consumed in the
Premises. The cost of such Meter special conduits, wiring and panels needed in connection
therewith and the installation, maintenance and repair thereof shall be paid by Tenant. Tenant
shall pay to Landlord, from time to time, but no more frequently than monthly, for its Excess
Electrical Usage at the Premises. The rate to be paid by Tenant for submetered electricity shall
include any taxes or other charges in connection therewith.

     Section 10.2 Excess Electricity. Tenant shall at all times comply with the rules and
regulations of the utility company supplying electricity to the Building. Tenant shall not use any
electrical equipment which, in Landlord’s reasonable judgment, would exceed the capacity of the
electrical equipment serving the Premises. If Landlord determines that Tenant’s electrical
requirements necessitate installation of any additional risers, feeders or other electrical
distribution equipment (collectively, “Electrical Equipment”), or if Tenant provides Landlord with
evidence reasonably satisfactory to Landlord of Tenant’s need for excess electricity and requests
that additional Electrical Equipment be installed, Landlord shall, at Tenant’s expense, install
such additional Electrical Equipment, provided that Landlord, in its sole judgment, determines that
(a) such installation is practicable and necessary, (b) such additional Electrical Equipment is
permissible under applicable Requirements, and (c) the installation of such Electrical Equipment
will not cause permanent damage to the Building or the Premises, cause or create a hazardous
condition, entail excessive or unreasonable alterations, interfere with or limit electrical usage
by other tenants or occupants of the Building or exceed the limits of the switchgear or other
facilities serving the Building, or require power in excess of that available from the utility
company serving the Building.

     Section 10.3 Elevators. Landlord shall provide elevator service to the Premises 24 hours per
day, 7 days per week, subject to the Rules and Regulations attached hereto as Exhibit F.

     Section 10.4 Heating, Ventilation and Air Conditioning. Landlord shall furnish to the
Premises heating, ventilation and air-conditioning (“HVAC”) in accordance with Annex 1 to the Work
Letter during Ordinary Business Hours. Landlord shall have access to all air-cooling, fan,
ventilating and machine rooms and electrical closets and all other mechanical installations of
Landlord (collectively, “Mechanical Installations”), and Tenant shall not construct partitions or
other obstructions which may interfere with Landlord’s access thereto or the moving of Landlord’s
equipment to and from the Mechanical Installations. No Tenant Party shall at any time enter the
Mechanical Installations or tamper with, adjust, or otherwise affect such Mechanical
Installations. Landlord shall not be responsible if the HVAC System fails to provide cooled or
heated air, as the case may be, to the Premises by reason of (i) any equipment installed by, for
or on behalf of Tenant, which has an electrical load in excess of the average electrical load and
human occupancy factors for the HVAC System as designed, or (ii) any rearrangement of partitioning
or other Alterations made or performed by, for or on behalf of Tenant. Tenant shall cooperate with
Landlord and shall abide by the rules and regulations which Landlord may reasonably prescribe for
the proper functioning and protection of the HVAC System. Landlord

 - 24 - 

 

shall not be responsible if the HVAC System fails to provide cooled or heated air, as the case may
be, to the Premises by reason of (i) any equipment installed by, for or on behalf of Tenant, which
has an electrical load in excess of the average electrical load and human occupancy factors for
the HVAC System as designed, or (ii) any rearrangement of partitioning or other Alterations made
or performed by, for or on behalf of Tenant. Tenant shall cooperate with Landlord and shall abide
by the rules and regulations which Landlord may reasonably prescribe for the proper functioning
and protection of the HVAC System.

     Section 10.5 Overtime HVAC. The Fixed Rent does not include any charge to Tenant for the
furnishing of HVAC to the Premises during any periods other than Ordinary Business Hours (“Overtime
Periods”). If Tenant desires HVAC services during Overtime Periods, Tenant shall deliver notice to
the Building office requesting such services by 2:00 p.m. of the Business Day on which or preceding
the date such services are requested; provided, however, that Landlord shall use reasonable efforts
to arrange such service on such shorter notice as Tenant shall provide. If Landlord furnishes HVAC
service during Overtime Periods, Tenant shall pay to Landlord the cost thereof at the then
established rates for such services in the Building. The current rate charged for HVAC during
Overtime Periods is $45.00 per hour per floor, which rate is subject to change during the Term.

     Section 10.6 Cleaning. Landlord shall cause the Premises (excluding any portions thereof used
for the storage, preparation, service or consumption of food or beverages) to be cleaned,
substantially in accordance with the standards set forth in Exhibit D. Any areas of the
Premises requiring additional cleaning such as areas used for preparation or consumption of food,
private bathrooms, computer rooms, mail rooms and trading floors shall be cleaned, at Tenant’s
expense, by Landlord’s cleaning contractor, at rates which shall be competitive with rates of
other cleaning contractors providing comparable services to Comparable Buildings. Landlord’s
cleaning contractor and its employees shall have access to the Premises at all times except
between 8:00 a.m. and 5:30 p.m. on weekdays which are not Observed Holidays.

     Section 10.7 Water. Landlord, at Landlord’s expense, shall provide water in the core
lavatories, drinking fountains and janitor’s closets on each floor of the Building. If Tenant
requires water in excess of that used by an average office building tenant of similar size using
its premises for ordinary office use, Tenant shall pay for the cost of bringing water to the
Premises and Landlord may install a meter to measure the water. Tenant shall pay the cost of such
installation, and for all maintenance, repairs and replacements thereto, and for the reasonable
charges of Landlord for the water consumed.

     Section 10.8 Refuse Removal. Landlord shall provide refuse removal services at the Building.
Tenant shall pay to Landlord, Landlord’s reasonable charge for such removal to the extent that the
refuse generated by Tenant exceeds the refuse customarily generated by general office tenants.
Tenant shall not dispose of any refuse in the Common Areas, and if Tenant does so, Tenant shall be
liable for Landlord’s reasonable charge for such removal.

     Section 10.9 Directory. Landlord shall list Tenant on the Building directory located in the
first floor lobby. The Building directory will be shared with other Building tenants.

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     Section 10.10 Tenant Access to Premises. Tenant shall have access to the Premises 24 hours a
day, 7 days a week. Outside of Ordinary Business Hours, Building and floor access will be
monitored by an electronic key security and access system installed and maintained by Landlord.
Landlord shall be responsible for access control to the Building, which access control shall be
at least to the access control standard found at typical Comparable Buildings. Tenant shall be
responsible for access control to the Premises at Tenant’s sole cost and expense. Landlord will
deliver (or cause to be delivered) to Tenant, at Landlord’s expense, 250 Building access cards.
Any additional or replacement cards will be issued at Tenant’s expense.

     Section 10.11 Service Interruptions. Landlord reserves the right to suspend any service when
necessary, by reason of Unavoidable Delays, accidents or emergencies, or for Restorative Work
which, in Landlord’s reasonable judgment, are necessary or appropriate until such Unavoidable
Delay, accident or emergency shall cease or such Restorative Work is completed and Landlord shall
not be liable for any interruption, curtailment or failure to supply services. Landlord shall use
reasonable efforts to minimize interference with Tenant’s use and occupancy of the Premises as a
result of any such failure, defect or interruption of any such service, or change in the supply,
character and/or quantity of, electrical service, and to restore any such services, remedy such
situation and minimize any interference with Tenant’s business. The exercise of any such right or
the occurrence of any such failure by Landlord shall not constitute an actual or constructive
eviction, in whole or in part, entitle Tenant to any compensation, abatement or diminution of Rent,
relieve Tenant from any of its obligations under this Lease, or impose any liability upon Landlord
or any Indemnified Party by reason of inconvenience to Tenant, or interruption of Tenant’s
business, or otherwise. Landlord shall not be liable in any way to Tenant for any failure, defect
or interruption of, or change in the supply, character and/or quantity of electrical service
furnished to the Premises for any reason except if attributable to the gross negligence or willful
misconduct of Landlord.

ARTICLE 11

INSURANCE; PROPERTY LOSS OR DAMAGE

     Section 11.1 Tenant’s Insurance.

          (a) Tenant, at its expense, shall obtain and keep in full force and effect during the
Term:

               (i) a policy of commercial general liability insurance on an occurrence basis against claims
for personal injury, bodily injury, death and/or property damage occurring in or about the
Building, under which Tenant is named as the insured and Landlord, Landlord’s Agent and any
Lessors and any Mortgagees whose names have been furnished to Tenant are named as additional
insureds (the “Insured Parties”). Such insurance shall provide primary coverage without
contribution from any other insurance carried by or for the benefit of the Insured Parties, and
Tenant shall obtain blanket broad-form contractual liability coverage to insure its indemnity
obligations set forth in Article 25. The minimum limits of liability shall be (a) a combined
single limit with respect to each occurrence in an amount of not less than $1,000,000; and (b)
Umbrella/Excess Liability with limits of not less than $10,000,000 combined

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single limit in excess of the above-referenced commercial general liability. The deductible or
self insured retention for such policy shall not exceed $25,000;

               (ii) insurance against loss or damage by fire, and such other risks and hazards as are
insurable under then available standard forms of “Special Form Causes of Loss” or “All Risk”
property insurance policies, insuring Tenant’s Property and all Alterations and improvements to the
Premises (including the initial installations) to the extent such Alterations and improvements
exceed the cost of the improvements typically performed in connection with the initial occupancy of
tenants in the Building (“Building Standard Installations”), for the full insurable value thereof
or replacement cost thereof, having a deductible amount, if any, not in excess of $25,000; and
insurance against loss or damage by fire, and such other risks and hazards as are insurable under
then available standard forms of “Special Form Causes of Loss” or “All Risk” property insurance
policies, insuring the Existing Furnishings for the full insurable value thereof or replacement
cost thereof, having a deductible amount, if any, not in excess of $25,000;

               (iii) during the performance of any Alteration, until completion thereof, Builder’s Risk
insurance on an “all risk” basis and on a completed value form including a Permission to Complete
and Occupy endorsement, for full replacement value covering the interest of Landlord and Tenant
(and their respective contractors and subcontractors) in all work incorporated in the Building and
all materials and equipment in or about the Premises;

               (iv) Workers’ Compensation Insurance, as required by law;

               (v) [Intentionally Omitted]; and

               (vi) during the Extension Term, such other insurance in such amounts as the Insured Parties
may reasonably require from time to time, but only if Landlord has informed Tenant of such other
insurance requirements prior to the date on which Tenant gives Landlord notice that Tenant elects
to lease the Premises for the Extension Term pursuant to Rider No. 1 — Extension Option.

          (b) All insurance required to be carried by Tenant (i) shall contain a provision
that (x) no act or omission of Tenant shall affect or limit the obligation of the insurance
company to pay the amount of any loss sustained, and (y) shall be noncancellable and/or no material
change in coverage shall be made thereto unless the Insured Parties receive 30 days’ prior
notice of the same, by certified mail, return receipt requested, and (ii) shall be effected under
valid and enforceable policies issued by reputable insurers permitted to do business in the Commonwealth
of Virginia and rated in Best’s Insurance Guide, or any successor thereto as having a “Best’s
Rating” of “A-” or better and a “Financial Size Category” of at least “X” or better or, if
such ratings are not then in effect, the equivalent thereof or such other financial rating as
Landlord may at any time consider appropriate.

          (c) On or prior to the Commencement Date, Tenant shall deliver to Landlord
appropriate policies of insurance, including evidence of waivers of subrogation required to be
carried pursuant to this Article 11 and that the Insured Parties are named as additional
insureds (the “Policies”). Tenant shall provide evidence of each renewal or replacement of the Policies
and shall use commercially reasonable efforts to deliver such evidence to Landlord at least 10

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days prior to the expiration of the Policies. Tenant shall also advise all Insured Parties in
writing by certified mail, return receipt requested, at least 30 days in advance of any
termination or change to the Policies that would affect the interest of any of the Insured
Parties. In lieu of the Policies, Tenant may deliver to Landlord a certification from Tenant’s
insurance company (on the form currently designated “Acord 27” (Evidence of Property Insurance)
and “Acord 25-S” (Certificate of Liability Insurance), or the equivalent, provided that attached
thereto is an endorsement to Tenant’s commercial general liability policy naming the Insured
Parties as additional insureds) which shall be binding on Tenant’s insurance company, and which
shall expressly provide that such certification conveys to the Insured Parties all the rights and
privileges afforded under the Policies as primary insurance.

     Section 11.2 Waiver of Subrogation. Landlord and Tenant shall each procure an appropriate
clause in or endorsement to any property insurance covering the Real Property and personal
property, fixtures and equipment located therein, wherein the insurer waives subrogation or
consents to a waiver of right of recovery, and Landlord and Tenant agree not to make any claim
against, or seek to recover from, the other for any loss or damage to its property or the property
of others resulting from fire or other hazards to the extent covered by such property insurance;
provided, however, that the release, discharge, exoneration and covenant not to sue contained
herein shall be limited by and be coextensive with the terms and provisions of the waiver of
subrogation or waiver of right of recovery. Tenant acknowledges that Landlord shall not carry
insurance on, and shall not be responsible for, (i) damage to any Above Building Standard
Installations, (ii) Tenant’s Property, and (iii) any loss suffered by Tenant due to interruption of
Tenant’s business.

     Section 11.3 Restoration.

          (a) If the Premises are damaged by fire or other casualty, or if the Building is damaged such
that Tenant is deprived of reasonable access to the Premises, the damage shall be repaired by
Landlord, to substantially the condition of the Premises prior to the damage, subject to the
provisions of any Mortgage or Superior Lease, but Landlord shall have no obligation to repair or
restore (i) Tenant’s Property or (ii) except as provided in Section 11.3(b), any
Alterations or improvements to the Premises, to the extent such Alterations or improvements exceed
Building Standard Installations (“Above Building Standard Installations”). So long as Tenant is
not in default beyond applicable grace or notice provisions in the payment or performance of its
obligations under this Section 11.3, and provided Tenant timely delivers to Landlord either
Tenant’s Restoration Payment (as hereinafter defined) or the Restoration Security (as hereinafter
defined) or Tenant expressly waives any obligation of Landlord to repair or restore any of Tenant’s
Above Building Standard Installations, then until the restoration of the Premises is Substantially
Completed or would have been Substantially Completed but for Tenant delay, Fixed Rent, Tenant’s Tax
Payment and Tenant’s Operating Payment shall be reduced in the proportion by which the area of the
part of the Premises which is not usable (or accessible ) and is not used by Tenant bears to the
total area of the Premises.

          (b) As a condition precedent to Landlord’s obligation to repair or restore any Above Building
Standard Installations, Tenant shall pay to Landlord upon demand a sum (“Tenant’s Restoration
Payment”) equal to the amount, if any, by which (A) the cost, as

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estimated by a reputable independent contractor designated by Landlord, of repairing and restoring
all Alterations and Tenant Improvements in the Premises to their condition prior to the damage,
exceeds (B) the cost of restoring the Premises with Building Standard Installations. If Tenant
shall fail to deliver to Landlord either (1) Tenant’s Restoration Payment, or (2) a waiver by
Tenant, in form satisfactory to Landlord, of all of Landlord’s obligations to repair or restore
any of the Above Building Standard Installations, in either case within 15 days after Landlord’s
demand therefor, Landlord shall have no obligation to restore any Above Building Standard
Installations and Tenant’s abatement of Fixed Rent, Tenant’s Tax Payment and Tenant’s Operating
Payment shall cease when the restoration of the Premises (other than any Above Building Standard
Installations) is Substantially Complete.

     Section 11.4 Landlord’s Termination Right. Notwithstanding anything to the. contrary
contained in Section 11.3, if the Premises are totally damaged or are rendered wholly
untenantable, or if the Building shall be so damaged that, in Landlord’s reasonable opinion,
substantial alteration, demolition, or reconstruction of the Building shall be required (whether
or not the Premises are so damaged or rendered untenantable), then in either of such events,
Landlord may, not later than 60 days following the date of the damage, terminate this Lease by
notice to Tenant, provided that if the Premises are not damaged, Landlord may not terminate this
Lease unless Landlord similarly terminates the leases of other tenants in the Building aggregating
at least 50% of the portion of the Building occupied for office purposes immediately prior to such
damage. If this Lease is so terminated, (a) the Term shall expire upon the 30th day after such
notice is given, (b) Tenant shall vacate the Premises and surrender the same to Landlord, (c)
Tenant’s liability for Rent shall cease as of the date of the damage, and (d) any prepaid Rent for
any period after the date of the damage shall be refunded by Landlord to Tenant.

     Section 11.5 Tenant’s Termination Right. If the Premises are totally damaged and are thereby
rendered wholly untenantable, or if the Building shall be so damaged that Tenant is deprived of
reasonable access to the Premises, and if Landlord elects to restore the Premises, Landlord shall,
within 60 days following the date of the damage, cause a contractor or architect selected by
Landlord to give notice (the “Restoration Notice”) to Tenant of the date by which such contractor
or architect estimates the restoration of the Premises (excluding any Above Building Standard
Installations) shall be Substantially Completed. If such date, as set forth in the Restoration
Notice, is more than 12 months from the date of such damage, then Tenant shall have the right to
terminate this Lease by giving notice (the “Termination Notice”) to Landlord not later than 30 days
following delivery of the Restoration Notice to Tenant. If Tenant delivers a Termination Notice,
this Lease shall be deemed to have terminated as of the date of the giving of the Termination
Notice, in the manner set forth in the second sentence of Section 11.4.

     Section 11.6 Final 18 Months. Notwithstanding anything to the contrary in this Article 11, if
any damage during the final 18 months of the Term renders the Premises wholly untenantable, either
Landlord or Tenant may terminate this Lease by notice to the other party within 30 days after the
occurrence of such damage and this Lease shall expire on the 30th day after the date of such
notice. For purposes of this Article, the Premises shall be deemed wholly untenantable if Tenant
shall be precluded from using more than 50% of the Premises for the conduct of its business and
Tenant’s inability to so use the Premises is reasonably expected to continue for more than 90
days.

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     Section 11.7 Landlord’s Liability. Any Building employee to whom any property shall be
entrusted by or on behalf of Tenant shall be deemed to be acting as Tenant’s agent with respect to
such property and neither Landlord nor its agents shall be liable for any damage to such property,
or for the loss of or damage to any property of Tenant by theft or otherwise. For example, if a
Tenant employee leaves an envelope with a Building lobby guard for pick-up by a messenger service,
Landlord will not be responsible if such package is misplaced, stolen, damaged or picked up by the
wrong messenger service. None of the Insured Parties shall be liable for any injury or damage to
persons or property or interruption of Tenant’s business resulting from fire or other casualty, any
damage caused by other tenants or persons in the Building or the parking facilities or by
construction of any private, public or quasi-public work, or any latent defect in the Premises or
in the Building or the parking facilities (except that Landlord shall be required to repair the
same to the extent provided in Article 6). No penalty shall accrue for delays which may arise by
reason of adjustment of fire insurance on the part of Landlord or Tenant, or for any Unavoidable
Delays arising from any repair or restoration of any portion of the Building, provided that
Landlord shall use reasonable efforts to minimize interference with Tenant’s use and occupancy of
the Premises during the performance of any such repair or restoration.

     Section 11.8 Landlord’s Insurance. During the Term, Landlord shall maintain in effect such
policies of insurance as are at least in such amounts (and are subject to no larger deductibles)
as are customarily carried by landlords of Comparable Buildings, including, without limitation,
insurance against loss or damage by fire, and such other risks and hazards as are insurable under
then available forms of “all risk” property insurance policies with extended coverage, insuring
the Building for the full insurable value thereof or replacement cost thereof (exclusive of
footing and foundation costs).

ARTICLE 12

EMINENT DOMAIN

     Section 12.1 Taking.

          (a) Total Taking. If all or substantially all of the Real Property, the Building or the
Premises shall be acquired or condemned for any public or quasi-public purpose (a “Taking”), this
Lease shall terminate and the Term shall end as of the date of the vesting of title and Rent shall
be prorated and adjusted as of such date.

          (b) Partial Taking. Upon a Taking of only a part of the Real Property, the Building or the
Premises then, except as hereinafter provided in this Article 12, this Lease shall continue in full
force and effect, provided that from and after the date of the vesting of title, Fixed Rent and
Tenant’s Proportionate Share shall be modified to reflect the reduction of the Premises and/or the
Building and/or Tenant’s loss of any parking rights as a result of such Taking.

          (c) Landlord’s Termination Right. Whether or not the Premises are affected, Landlord
may, by notice to Tenant, within 60 days following the date upon which Landlord receives notice of
the Taking of all or a portion of the Real Property, the Building or the

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Premises, terminate this Lease, provided that Landlord elects to terminate leases (including this
Lease) affecting at least 50% of the rentable area of the Building.

          (d) Tenant’s Termination Right. If the part of the Real Property so Taken contains more than
20% of the total area of the Premises occupied by Tenant immediately prior to such Taking, or if,
by reason of such Taking, Tenant no longer has reasonable means of access to the Premises or if
Tenant’s parking rights are totally or substantially curtailed, Tenant may terminate this Lease by
notice to Landlord given within 30 days following the date upon which Tenant is given notice of
such Taking. If Tenant so notifies Landlord, this Lease shall end and expire upon the 30th day
following the giving of such notice. If a part of the Premises shall be so Taken and this Lease is
not terminated in accordance with this Section 12.1 Landlord, without being required to spend more
than it collects as an award, shall, subject to the provisions of any Mortgage or Superior Lease,
restore that part of the Premises not so Taken to a self-contained rental unit substantially
equivalent (with respect to character, quality, appearance and services) to that which existed
immediately prior to such Taking, excluding Tenant’s Property and Above Building Standard
Installations.

          (e) Apportionment of Rent. Upon any termination of this Lease pursuant to the provisions of
this Article 12, Rent shall be apportioned as of, and shall be paid or refunded up to and
including, the date of such termination.

     Section 12.2 Awards. Upon any Taking, Landlord shall receive the entire award for any such
Taking, and Tenant shall have no claim against Landlord or the condemning authority for the value
of any unexpired portion of the Term or Tenant’s Alterations; and Tenant hereby assigns to
Landlord all of its right in and to such award. Nothing contained in this Article 12 shall be
deemed to prevent Tenant from making a separate claim in any condemnation proceedings for the then
value of any Tenant’s Property or Above Building Standard Installations included in such Taking
and for any moving expenses, provided any such award is in addition to, and does not result in a
reduction of, the award made to Landlord.

     Section 12.3 Temporary Taking. If all or any part of the Premises is Taken temporarily during
the Term for any public or quasi-public use or purpose, Tenant shall give prompt notice to
Landlord and the Term shall not be reduced or affected in any way and Tenant shall continue to pay
all Rent payable by Tenant without reduction or abatement and to perform all of its other
obligations under this Lease, except to the extent prevented from doing so by the condemning
authority, and Tenant shall be entitled to receive any award or payment from the condemning
authority for such use.

ARTICLE 13

ASSIGNMENT AND SUBLETTING

     Section 13.1 Consent Requirements.

          (a) No Assignment or Subletting. Except as expressly set forth herein, Tenant shall not
assign, mortgage, pledge, encumber, or otherwise transfer this Lease, whether by operation of law
or otherwise, and shall not sublet, or permit, or suffer the Premises or any part

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thereof to be used or occupied by others (whether for desk space, mailing privileges or
otherwise), without Landlord’s prior consent in each instance. Any assignment, sublease,
mortgage, pledge, encumbrance or transfer in contravention of the provisions of this Article 13
shall be void and shall constitute an Event of Default.

          (b) Collection of Rent. If, without Landlord’s consent, this Lease is assigned, or any part of
the Premises is sublet or occupied by anyone other than Tenant or this Lease is encumbered (by
operation of law or otherwise), Landlord may collect rent from the assignee, subtenant or occupant,
and apply the net amount collected to the Rent herein reserved. No such collection shall be deemed
a waiver of the provisions of this Article 13, an acceptance of the assignee, subtenant or occupant
as tenant, or a release of Tenant from the performance of Tenant’s covenants hereunder, and in all
cases Tenant shall remain fully liable for its obligations under this Lease.

          (c) Further Assignment/Subletting. Landlord’s consent to any assignment or subletting shall
not relieve Tenant from the obligation to obtain Landlord’s consent to any further assignment or
subletting. In no event shall any permitted subtenant assign or encumber its sublease or further
sublet any portion of its sublet space, or otherwise suffer or permit any portion of the sublet
space to be used or occupied by others.

     Section 13.2 Tenant’s Notice. If Tenant desires to assign this Lease or sublet all or any
portion of the Premises, Tenant shall give notice thereof to Landlord, which shall be accompanied
by (a) with respect to an assignment of this Lease, the date Tenant desires the assignment to be
effective; (b) with respect to a sublet of all or a part of the Premises, a description of the
portion of the Premises to be sublet and the commencement and expiration dates (together with all
extension options) of such sublet; and (c) a copy of a bona fide term sheet or letter of intent
pertaining to such proposed assignment or sublease and executed by Tenant and the proposed
assignee or subtenant. If Tenant desires to assign this Lease or if Tenant desires to sublet as
aforesaid and the term (including, if exercised, any extension option(s)) of the sublease that
will expire during the last 12 months of the then Term, such notice shall, except with respect to
a Permitted Transfer, be deemed an irrevocable offer from Tenant to Landlord of the right, at
Landlord’s option, (1) to terminate this Lease with respect
to such space as Tenant proposes to
sublease (the “Partial Space”), upon the terms and conditions hereinafter set forth, or (2) if the
proposed transaction is an assignment of this Lease, to terminate this Lease with respect to the
entire Premises. Such option may be exercised by notice from Landlord to Tenant within 30 days
after delivery of Tenant’s notice. If Landlord exercises its option to terminate all or a portion
of this Lease, (a) this Lease shall end and expire with respect to all or a portion of the
Premises, as the case may be, on the date that such assignment or sublease was to commence, (b)
Rent shall be apportioned, paid or refunded as of such date, (c) Tenant, upon Landlord’s request,
shall enter into an amendment of this Lease ratifying and confirming such total or partial
termination, and setting forth any appropriate modifications to the terms and provisions hereof,
and (d) Landlord shall be free to lease the Premises (or any part thereof) to Tenant’s prospective
assignee or subtenant. Tenant shall pay all costs to make the Partial Space a self-contained
rental unit and to install any required Building corridors.

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     Section 13.3 Conditions to Assignment/Subletting.

          (a) If
Landlord does not exercise its termination option provided under Section 13.2,
and provided no Event of Default then exists, Landlord’s consent to the proposed assignment or
subletting shall not be unreasonably withheld or delayed. Such consent shall be granted or denied
within 15 days after delivery to Landlord of (i) a true and complete statement reasonably detailing
the identity of the proposed assignee or subtenant (“Transferee”), the nature of its business and
its proposed use of the Premises, (ii) current financial information with respect to the
Transferee, including its most recent financial statements, and (iii) any other information
Landlord may reasonably request, provided that:

               (i) in Landlord’s reasonable judgment, the Transferee is engaged in a  business or
activity, and the Premises will be used in a manner, which (1) is in keeping with the then
standards of the Building, (2) is for the Permitted Uses, and (3) does not violate any restrictions
set forth in this Lease, any Mortgage or Superior Lease or any negative covenant as to use of the
Premises required by any other lease in the Building;

               (ii) the Transferee is reputable with sufficient financial means to perform all of its
obligations under this Lease or the sublease, as the case may be;

               (iii) [Intentionally Omitted];

               (iv) [Intentionally Omitted];

               (v) [Intentionally Omitted];

               (vi) Tenant shall, upon demand, reimburse Landlord for all reasonable expenses incurred by
Landlord in connection with such assignment or sublease, including any investigations as to the
acceptability of the Transferee and all legal costs (not to exceed $1,500) reasonably incurred in
connection with the granting of any requested consent; and

               (vii) the Transferee shall not be entitled, directly or indirectly, to diplomatic or
sovereign immunity, regardless of whether the Transferee agrees to waive such diplomatic or
sovereign immunity, and shall be subject to the service of process in, and the jurisdiction of the
courts of, the District of Columbia.

          (b) with respect to each and every subletting and/or assignment approved by Landlord under the
provisions of this Lease:

               (i) the form of the proposed assignment or sublease shall be reasonably satisfactory to
Landlord;

               (ii) [Intentionally Omitted];

               (iii) no Transferee shall take possession of any part of the Premises, until an executed
counterpart of such sublease or assignment has been delivered to Landlord and approved by Landlord
as provided in Section 13.3;

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               (iv) if an Event of Default occurs prior to the effective date of such assignment or
subletting, then Landlord’s consent thereto, if previously granted, shall be immediately deemed
revoked without further notice to Tenant, and if such assignment or subletting would have been
permitted without Landlord’s consent pursuant to Section 13.7, such permission shall be void and
without force and effect, and in either such case, any such assignment or subletting shall
constitute a further Event of Default hereunder; and

               (v) each sublease shall be subject and subordinate to this Lease and to the matters to which
this Lease is or shall be subordinate; and Tenant and each Transferee shall be deemed to have
agreed that upon the occurrence and during the continuation of an Event of Default hereunder,
Tenant has hereby assigned to Landlord, and Landlord may, at its option, accept such assignment of,
all right, title and interest of Tenant as sublandlord under such sublease, together with all
modifications, extensions and renewals thereof then in effect and such Transferee shall, at
Landlord’s option, attorn to Landlord pursuant to the then executory provisions of such sublease,
except that Landlord shall not be (A) liable for any previous act or omission of Tenant under such
sublease, (B) subject to any counterclaim, offset or defense not expressly provided in such
sublease, which theretofore accrued to such Transferee against Tenant, (C) bound by any previous
modification of such sublease not consented to by Landlord or by any prepayment of more than one
month’s rent, (D) bound to return such Transferee’s security deposit, if any, except to the extent
Landlord shall receive actual possession of such deposit and such Transferee shall be entitled to
the return of all or any portion of such deposit under the terms of its sublease, or (E) obligated
to make any payment to or on behalf of such Transferee, or to perform any work in the subleased
space or the Building, or in any way to prepare the subleased space for occupancy, beyond
Landlord’s obligations under this Lease. The provisions of this Section 13.3(b)(v) shall be
self-operative, and no further instrument shall be required to give effect to this provision,
provided that the Transferee shall execute and deliver to Landlord any instruments Landlord may
reasonably request to evidence and confirm such subordination and
attornment.

     Section 13.4 Binding on Tenant; Indemnification of Landlord. Notwithstanding any assignment
or subletting or any acceptance of rent by Landlord from any Transferee, Tenant shall remain fully
liable for the payment of all Rent due and for the performance of all the covenants, terms and
conditions contained in this Lease on Tenant’s part to be observed and performed, and any default
under any term, covenant or condition of this Lease by any Transferee or anyone claiming under or
through any Transferee shall be deemed to be a default under this Lease by Tenant. Tenant shall
indemnify, defend, protect and hold harmless Landlord from and against any and all Losses
resulting from any claims that may be made against Landlord by the Transferee or anyone claiming
under or through any Transferee or by any brokers or other persons claiming a commission or
similar compensation in connection with the proposed assignment or sublease, irrespective of
whether Landlord shall give or decline to give its consent to any proposed assignment or sublease,
or if Landlord shall exercise any of its options under this Article 13.

     Section 13.5 Tenant’s Failure to Complete. If Landlord consents to a proposed assignment or
sublease and Tenant fails to execute and deliver to Landlord such assignment or sublease within 90
days after the giving of such consent, then Tenant shall again comply with all

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of the provisions and conditions of Section 13.2 before assigning this Lease or subletting all or
part of the Premises.

     Section 13.6 Profits. If Tenant enters into any assignment or sublease permitted hereunder or
consented to by Landlord, Tenant shall, within 60 days of Landlord’s consent to such assignment or
sublease, deliver to Landlord a list of Tenant’s reasonable third-party brokerage fees, legal fees,
architectural fees and tenant improvement costs paid or to be paid in connection with such
transaction and any actual costs incurred by Tenant in separately demising the subleased space
(collectively, “Transaction Costs”), together with a list of all of Tenant’s Property to be
transferred to such Transferee. The Transaction Costs shall be amortized, on a straight-line basis,
over the term of any sublease. Tenant shall deliver to Landlord evidence of the payment of such
Transaction Costs promptly after the same are paid. In consideration of such assignment or
subletting, Tenant shall pay to Landlord:

          (a) In
the case of an assignment, on the effective date of the assignment, 50% of all sums
and other consideration paid to Tenant by the Transferee for or by reason of such assignment
(including sums paid for the sale or rental of Tenant’s Property, less, the then fair market or
rental value thereof) after first deducting the Transaction Costs; or

          (b) In the case of a sublease, 50% of any consideration payable under the sublease to Tenant
by the Transferee which exceeds on a per square foot basis the Fixed Rent and Additional Rent
accruing during the term of the sublease in respect of the subleased space (together with any sums
paid for the sale or rental of Tenant’s Property, less, the then fair market or rental value
thereof) after first deducting the monthly amortized amount of Transaction Costs. The sums payable
under this clause shall be paid by Tenant to Landlord monthly as and when paid by the subtenant to
Tenant.

     Section 13.7 Transfers.

          (a) Related Entities. If Tenant is a legal entity, the transfer (by one or more transfers) of
a majority of the stock or other beneficial ownership interest in Tenant (collectively “Ownership
Interests”) shall be deemed a voluntary assignment of this Lease; provided, however, that the
provisions of this Article 13 shall not apply to the transfer of Ownership Interests in Tenant if
and so long as Tenant is publicly traded on a nationally recognized stock exchange. For purposes
of this Section 13.7 the term “transfers” shall be deemed to include the issuance of new Ownership
Interests which results in a majority of the Ownership Interests in Tenant being held by a person
or entity which does not hold a majority of the Ownership Interests in Tenant on the Effective
Date.

          Any provision of this Article to the contrary notwithstanding, Tenant shall have the right to
assign this Lease or to sublease the Premises or a portion thereof to a business entity into or
with which Tenant is merged or consolidated or to which substantially all of Tenant’s assets are
transferred so long as (i) such transfer was made for a legitimate independent business purpose
and not for the purpose of transferring this Lease, (ii) the successor to Tenant has a net worth
computed in accordance with generally accepted accounting principles at least equal to the net
worth of Tenant immediately prior to such merger, consolidation or transfer, and (iii) proof
satisfactory to Landlord of such net worth is delivered to Landlord at least 10 days prior to the

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effective date of any such transaction. Tenant may also, upon prior notice to Landlord, permit any
business entity which controls, is controlled by, or is under common control with the original
Tenant (a “Related Entity”) to sublet all or part of the Premises for any Permitted Use, provided
the Related Entity is in Landlord’s reasonable judgment of a character and engaged in a business
which is in keeping with the standards for the Building and for so long as such entity remains a
Related Entity. Such sublease shall not be deemed to vest in any such Related Entity any right or
interest in this Lease nor shall it relieve, release, impair or discharge any of Tenant’s
obligations hereunder. For the purposes hereof, “control” shall be deemed to mean ownership of not
less than 50% of all of the Ownership Interests of such corporation or other business entity.
Notwithstanding the foregoing, Tenant shall have no right to assign this Lease or sublease all or
any portion of the Premises without Landlord’s consent pursuant to this Section 13.7 if Tenant is
not the initial Tenant herein named or a person or entity who acquired Tenant’s interest in this ‘
Lease in a transaction approved by Landlord.

          (b) Applicability. The limitations set forth in this Section 13.7 shall apply to Transferee(s)
and guarantor(s) of this Lease, if any, and any transfer by any such entity in violation of this
Section 13.7 shall be a transfer in violation of Section 13.1.

          (c) Modifications, Takeover Agreements. Any modification, amendment or extension of a sublease
and/or any other agreement by which a landlord of a building other than the Building agrees to
assume the obligations of Tenant under this Lease shall be deemed a sublease for the purposes of
Section 13.1 hereof.

     Section 13.8 Assumption of Obligations. No assignment or transfer shall be effective unless
and until the Transferee executes, acknowledges and delivers to Landlord an agreement in form and
substance reasonably satisfactory to Landlord whereby the assignee (a) assumes Tenant’s
obligations under this Lease and (b) agrees that, notwithstanding such assignment or transfer, the
provisions of Section 13.1 hereof shall be binding upon it in respect of all future assignments
and transfers.

     Section 13.9 Tenant’s Liability. The joint and several liability of Tenant and any
successors-in-interest of Tenant and the due performance of Tenant’s obligations under this Lease
shall not be discharged, released or impaired by any agreement or stipulation made by Landlord, or
any grantee or assignee of Landlord, extending the time, or modifying any of the terms and
provisions of this Lease, or by any waiver or failure of Landlord, or any grantee or assignee of
Landlord, to enforce any of the terms and provisions of this Lease.

     Section 13.10 Listings in Building Directory. The listing of any name other than that of
Tenant on the doors of the Premises, the Building directory or elsewhere shall not vest any right
or interest in this Lease or in the Premises, nor be deemed to constitute Landlord’s consent to
any assignment or transfer of this Lease or to any sublease of the Premises or to the use or
occupancy thereof by others. Any such listing shall constitute a privilege revocable in Landlord’s
discretion by notice to Tenant.

     Section 13.11 Lease Disaffirmance or Rejection. If at any time after an assignment by Tenant
named herein, this Lease is not affirmed or is rejected in any bankruptcy proceeding or

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any similar proceeding, or upon a termination of this Lease due to any such proceeding, Tenant
named herein, upon request of Landlord given after such disaffirmance, rejection or termination
(and actual notice thereof to Landlord in the event of a disaffirmance or rejection or in the event
of termination other than by act of Landlord), shall (a) pay to Landlord all Rent and other charges
due and owing by the assignee to Landlord under this Lease to and including the date of such
disaffirmance, rejection or termination, and (b) as “tenant,” enter into a new lease of the
Premises with Landlord for a term commencing on the effective date of such disaffirmance, rejection
or termination and ending on the Expiration Date, at the same Rent and upon the then executory
terms, covenants and conditions contained in this Lease, except that (i) the rights of Tenant named
herein under the new lease shall be subject to the possessory rights of the assignee under this
Lease and the possessory rights of any persons claiming through or under such assignee or by virtue
of any statute or of any order of any court, (ii) such new lease shall require all defaults’
existing under this Lease to be cured by Tenant named herein with due diligence, and (iii) such new
lease shall require Tenant named herein to pay all Rent which, had this Lease not been so
disaffirmed, rejected or terminated, would have become due under the provisions of this Lease after
the date of such disaffirmance, rejection or termination with respect to any period prior thereto.
If Tenant named herein defaults in its obligations to enter into such new lease for a period of 10
days after Landlord’s request, then, in addition to all other rights and remedies by reason of
default, either at law or in equity, Landlord shall have the same rights and remedies against
Tenant named herein as if it had entered into such new lease and such new lease had thereafter been
terminated as of the commencement date thereof by reason of Tenant’s default thereunder.

ARTICLE 14

ACCESS TO PREMISES

     Section 14.1 Landlord’s Access.

          (a) Landlord, Landlord’s agents and utility service providers servicing the Building may
erect, use and maintain concealed ducts, pipes and conduits in and through the Premises provided
such use does not cause the usable area of the Premises to be reduced beyond a de minimis amount.
Landlord shall promptly repair any damage to the Premises caused by any work performed pursuant to
this Article 14.

          (b) Landlord, any Lessor or Mortgagee and any other party designated by Landlord and their
respective agents shall have the right to enter the Premises at all reasonable times, upon 24-hours
prior notice (which notice may be oral) except in the case of emergency (for which no notice shall
be required), to examine the Premises, to show the Premises to prospective purchasers,
Mortgagees, Lessors or tenants and their respective agents and representatives or
others and to perform Restorative Work to the Premises or the Building.

          (c) All parts (except surfaces facing the interior of the Premises) of all walls, windows and
doors bounding the Premises, all balconies, terraces and roofs adjacent to the Premises, all space
in or adjacent to the Premises used for shafts, stacks, stairways, mail chutes, conduits and other
mechanical facilities, Building Systems; Building facilities and Common

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Areas are not part of the Premises, and Landlord shall have the use thereof and access thereto
through the Premises for the purposes of Building operation, maintenance, alteration and repair.

     Section 14.2 Building Name. Landlord has the right at any time to change the name, number or
designation by which the Building is commonly known. If Landlord elects to change the name, number
or designation by which the Building is commonly known, Landlord will endeavor to provide Tenant
with at least 15 days prior written notice of such election.

ARTICLE 15

DEFAULT

     Section 15.1 Tenant’s Defaults. Each of the following events shall be an “Event of Default”
hereunder:

          (a) Tenant fails to pay when due any installment of Rent and such default shall continue for
five (5) days after notice of such default is given to Tenant except that if Landlord shall have
given 3 such notices of default in the payment of any Rent in any 12-month period, Tenant shall not
be entitled to any further notice of its delinquency in the payment of any Rent or an extended
period in which to make payment until such time as 12 consecutive months shall have elapsed without
Tenant having failed to make any such payment when due, and the occurrence of any default in the
payment of any Rent within such 12-month period after the giving of 3 such notices shall constitute
an Event of Default; or

          (b) Tenant fails to observe or perform any other term, covenant or condition of this Lease and
such failure continues for more than 30 days (10 days with respect to a default under Article 3)
after notice by Landlord to Tenant of such default, or if such default (other than a default under
Article 3) is of a nature that it cannot be completely remedied within 30 days, failure by Tenant
to commence to remedy such failure within said 30 days, and thereafter diligently prosecute to
completion all steps necessary to remedy such default, provided in all events the same is completed
within 90 days; or

          (c) if Landlord applies or retains any part of the Security Deposit, and Tenant fails to
deposit with Landlord the amount so applied or retained by Landlord, or to provide Landlord with a
replacement Letter of Credit (as hereinafter defined), if applicable, within 5 days after notice by
Landlord to Tenant stating the amount applied or retained; or

          (d) there shall occur or exist any default under any guaranty of this Lease, which default is
not cured within any applicable notice and/or cure period set forth in such guaranty.

     Upon the occurrence of any one or more of such Events of Default, Landlord may, at its sole
option, give to Tenant notice of cancellation of this Lease (or of Tenant’s possession of the
Premises), in which event this Lease and the Term (or Tenant’s possession of the Premises) shall
terminate (whether or not the Term shall have commenced) with the same force and effect as if the
date set forth in the notice was the Expiration Date stated herein; and Tenant shall then quit and
surrender the Premises to Landlord, but Tenant shall remain liable for damages as provided

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in this Article 15. Any notice of cancellation of the Term (or Tenant’s possession of the
Premises) may be given simultaneously with any notice of default given to Tenant.

     Section 15.2 Landlord’s Remedies.

          (a) Possession/Reletting. If this Lease and the Term, or Tenant’s right to possession of the
Premises, terminate as provided in Section 15.1:

               (i) Surrender of Possession. Tenant shall quit and surrender the Premises to Landlord, and
Landlord and its agents may immediately, or at any time after such termination, re-enter the
Premises or any part thereof, without notice, either by summary proceedings, or by any other
applicable action or proceeding, or by force (to the extent permitted by law) or otherwise in
accordance with applicable legal proceedings (without being liable to indictment, prosecution or
damages therefor), and may repossess the Premises and dispossess Tenant and any other persons from
the Premises and remove any and all of their property and effects from the Premises.

               (ii) Landlord’s Reletting. Landlord, at Landlord’s option, may relet all or any part of the
Premises from time to time, either in the name of Landlord or otherwise, to such tenant or
tenants, for any term ending before, on or after the Expiration Date, at such rental and upon such
other conditions (which may include concessions and free rent periods) as Landlord, in its sole
discretion, may determine. Landlord shall have no obligation to accept any tenant offered by
Tenant and shall not be liable for failure to relet or, in the event of any such reletting, for
failure to collect any rent due upon any such reletting; and no such failure shall relieve Tenant
of, or otherwise affect, any liability under this Lease. However, to the extent required by law,
Landlord shall use reasonable efforts to mitigate its damages but shall not be required to divert
prospective tenants from any other portions of the Building. Landlord, at Landlord’s option, may
make such alterations, decorations and other physical changes in and to the Premises as Landlord,
in its sole discretion, considers advisable or necessary in connection with such reletting or
proposed reletting, without relieving Tenant of any liability under this Lease or otherwise
affecting any such liability.

          (b) Tenant’s Waiver. Tenant, on its own behalf and on behalf of all persons claiming through
or under Tenant, including all creditors, hereby waives all rights which Tenant and all such
persons might otherwise have under any Requirement (i) to the service of any notice of intention to
re-enter or to institute legal proceedings, (ii) to redeem, or to re-enter or repossess the
Premises, or (iii) to restore the operation of this Lease, after (A) Tenant shall have been
dispossessed by judgment or by warrant of any court or judge, (B) [Intentionally Omitted], or (C)
any expiration or early termination of the term of this Lease, whether such dispossess, re-entry,
expiration or termination shall be by operation of law or pursuant to the provisions of this Lease.
The words “re-enter,” “re-entry” and “re-entered” as used in this Lease shall not be deemed to be
restricted to their technical legal meanings.

          (c) Tenant’s Breach. Upon the breach or threatened breach by Tenant, or any persons claiming
through or under Tenant, of any term, covenant or condition of this Lease, Landlord shall have the
right to enjoin such breach and to invoke any other remedy allowed by law or in equity as if
re-entry, summary proceedings and other special remedies were not

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provided in this Lease for such breach. The rights to invoke the remedies set forth above are
cumulative and shall not preclude Landlord from invoking any other remedy allowed at law or in
equity.

     Section 15.3 Landlord’s Damages.

          (a) Amount of Damages. If this Lease and the Term, or Tenant’s right to possession of the
Premises, terminate as provided in Section 15.1, then:

               (i) Tenant shall pay to Landlord all items of Rent payable under this Lease by Tenant to
Landlord prior to the date of termination;

               (ii) Landlord may retain all monies, if any, paid by Tenant to Landlord,
whether as prepaid Rent, a Security Deposit or otherwise, which monies, to the extent not
otherwise applied to amounts due and owing to Landlord, shall be credited by Landlord against any
damages payable by Tenant to Landlord;

               (iii) Tenant shall pay to Landlord, in monthly installments, on the days specified in this
Lease for payment of installments of Fixed Rent, any Deficiency; it being understood that Landlord
shall be entitled to recover the Deficiency from Tenant each month as the same shall arise, and no
suit to collect the amount of the Deficiency for any month, shall prejudice Landlord’s right to
collect the Deficiency for any subsequent month by a similar proceeding; and

               (iv) whether or not Landlord shall have collected any monthly Deficiency, Tenant shall pay to
Landlord, on demand, in lieu of any further Deficiency and as liquidated and agreed final damages,
a sum equal to the amount by which the Rent for the period which otherwise would have constituted
the unexpired portion of the Term (assuming the Additional Rent during such period to be the same
as was payable for the year immediately preceding such termination or re-entry, increased in each
succeeding year by 4% (on a compounded basis)) exceeds the then fair and reasonable rental value
of the Premises, for the same period (with both amounts being discounted to present value at a
rate of interest equal to 2% below the then Base Rate) less the aggregate amount of Deficiencies
theretofore collected by Landlord pursuant to the provisions of Section 15.3(a)(iii) for the same
period. If, before presentation of proof of such liquidated damages to any court, commission or
tribunal, the Premises, or any part thereof, shall have been relet by Landlord for the period
which otherwise would have constituted the unexpired portion of the Term, or any part thereof, the
amount of rent reserved upon such reletting shall be deemed prima facie, to be the fair and
reasonable rental value for the part or the whole of the Premises so relet during the term of the
reletting.

          (b) Reletting. If the Premises, or any part thereof, shall be relet together with other space
in the Building, the rents collected or reserved under any such reletting and the expenses of any
such reletting shall be equitably apportioned for the purposes of this Section 15.3. Tenant shall
not be entitled to any rents collected or payable under any reletting, whether or not such rents
exceeds the Fixed Rent reserved in this Lease. Nothing contained in Article 15 shall be deemed to
limit or preclude the recovery by Landlord from Tenant of the maximum

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amount allowed to be obtained as damages by any Requirement, or of any sums or damages to which
Landlord may be entitled in addition to the damages set forth in this Section 15.3.

     Section 15.4 Interest. If any payment of Rent is not paid when due, interest shall accrue on
such payment, from the date such payment became due until paid at the Interest Rate. Tenant
acknowledges that late payment by Tenant of Rent will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of such costs being extremely difficult and
impracticable to fix. Such costs include, without limitation, processing and accounting charges,
and late charges that may be imposed on Landlord by the terms of any note secured by a Mortgage
covering the Premises. Therefore, in addition to interest, if any amount is not paid when due, a
late charge equal to 5% of such amount shall be assessed; provided, however, that on 2 occasions
during any calendar year of the Term, Landlord shall give Tenant notice of such  late payment and
Tenant shall have a period of 5 days thereafter in which to make such payment before any late
charge is assessed. Such interest and late charges are separate and cumulative and are in addition
to and shall not diminish or represent a substitute for any of Landlord’s rights or remedies under
any other provision of this Lease.

     Section 15.5 Other Rights of Landlord. If Tenant fails to pay any Additional Rent when due,
Landlord, in addition to any other right or remedy, shall have the same rights and remedies as in
the case of a default by Tenant in the payment of Fixed Rent. If Tenant is in arrears in the
payment of Rent, Tenant waives Tenant’s right, if any, to designate the items against which any
payments made by Tenant are to be credited, and Landlord may apply any payments made by Tenant to
any items Landlord sees fit, regardless of any request by Tenant. Landlord reserves the right,
without liability to Tenant and without constituting any claim of constructive eviction, to
suspend furnishing or rendering to Tenant any property, material, labor, utility or other service,
whenever Landlord is obligated to furnish or render the same at the expense of Tenant, in the
event that (but only for so long as) Tenant is in arrears in paying Landlord for such items for
more than 5 days after notice from Landlord to Tenant demanding the payment of such arrears.

ARTICLE 16

LANDLORD’S RIGHT TO CURE; FEES AND EXPENSES

     If Tenant defaults in the performance of its obligations under this Lease, Landlord, without
waiving such default, may perform such obligations at Tenant’s expense: (a) immediately, and
without notice, in the case of emergency or if the default (i) materially interferes with the use
by any other tenant of the Building, (ii) materially interferes with the efficient operation of
the Building, (iii) results in a violation of any Requirement, or (iv) results or will result in a
cancellation of any insurance policy maintained by Landlord, and (b) in any other case if such
default continues after 10 days from the date Landlord gives notice of Landlord’s intention to
perform the defaulted obligation. All costs and expenses reasonably incurred by Landlord in
connection with any such performance by it and all costs and expenses, including reasonable
counsel fees and disbursements, incurred by Landlord in any action or proceeding (including any
unlawful detainer proceeding) brought by Landlord to enforce any obligation of Tenant under this
Lease and/or right of Landlord in or to the Premises, shall be paid

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by Tenant to Landlord on demand, with interest thereon at the Interest Rate from the date incurred
by Landlord. Except as expressly provided to the contrary in this Lease, all costs and expenses
which, pursuant to this Lease are incurred by Landlord and payable to Landlord by Tenant, and all
charges, amounts and sums payable to Landlord by Tenant for any property, material, labor, utility
or other services which, pursuant to this Lease or at the request and for the account of Tenant,
are provided, furnished or rendered by Landlord, shall become due and payable by Tenant to
Landlord within 10 Business Days after receipt of Landlord’s invoice for such amount.

ARTICLE 17

NO REPRESENTATIONS BY LANDLORD; LANDLORD’S APPROVAL

     Section 17.1 No Representations. Except as expressly set forth herein, Landlord and
Landlord’s agents have made no warranties, representations, statements or promises with respect to
the Building, the Real Property or the Premises and no rights, easements or licenses are acquired
by Tenant by implication or otherwise. Tenant is entering into this Lease after full investigation
and is not relying upon any statement or representation made by Landlord not embodied in this
Lease.

     Section 17.2 No Money Damages. In no event shall Landlord be liable for, and Tenant, on
behalf of itself and all other Tenant Parties, hereby waives any claim for, any indirect,
consequential or punitive damages, including loss or profits or business opportunity, arising
under or in connection with this Lease.

     Section 17.3 Reasonable Efforts. For purposes of this Lease, “reasonable efforts” by Landlord
shall not include an obligation to employ contractors or labor at overtime or other premium pay
rates or to incur any other overtime costs or additional expenses whatsoever.

ARTICLE 18

END OF TERM

     Section 18.1 Expiration. Upon the expiration or other termination of this Lease, Tenant shall
quit and surrender the Premises to Landlord vacant, broom clean and in good order and condition,
ordinary wear and tear and damage for which Tenant is not responsible under the terms of this
Lease excepted, and Tenant shall remove all of Tenant’s Property and Tenant’s Specialty
Alterations.

     Section 18.2 Holdover Rent. Landlord and Tenant recognize that Landlord’s damages resulting
from Tenant’s failure to timely surrender possession of the Premises may be substantial, may exceed
the amount of the Rent payable hereunder, and will be impossible to accurately measure.
Accordingly, if possession of the Premises is not surrendered to Landlord on the Expiration Date or
sooner termination of this Lease, in addition to any other rights or remedies Landlord may have
hereunder or at law, Tenant shall (a) pay to Landlord for each month (or any portion thereof)
during which Tenant holds over in the Premises after the Expiration Date or sooner termination of
this Lease, a sum equal to 1.5 times the Rent payable under this Lease for

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the last full calendar month of the Term, (b) be liable to Landlord for (i) any payment or rent
concession which Landlord may be required to make to any tenant obtained by Landlord for all or
any part of the Premises (a “New Tenant”) in order to induce such New Tenant not to terminate its
lease by reason of the holding-over by Tenant, and (ii) the loss of the benefit of the bargain if
any New Tenant shall terminate its lease by reason of the holding-over by Tenant, and (c)
indemnify Landlord against all claims for damages by any New Tenant. No holding-over by Tenant,
nor the payment to Landlord of the amounts specified above, shall operate to extend the Term
hereof. Nothing herein contained shall be deemed to permit Tenant to retain possession of the
Premises after the Expiration Date or sooner termination of this Lease, and no acceptance by
Landlord of payments from Tenant after the Expiration Date or sooner termination of this Lease
shall be deemed to be other than on account of the amount to be paid by Tenant in accordance with
the provisions of this Section 18.2.

ARTICLE 19

QUIET ENJOYMENT

     Provided this Lease is in full force and effect and no Event of Default then exists, Tenant
may peaceably and quietly enjoy the Premises without hindrance by Landlord or any person lawfully
claiming through or under Landlord, subject to the terms and conditions of this Lease and to all
Superior Leases and Mortgages.

ARTICLE 20

NO SURRENDER; NO WAIVER

     Section 20.1 No Surrender or Release. No act or thing done by Landlord or Landlord’s agents
or employees during the Term shall be deemed an acceptance of a surrender of the Premises, and no
provision of this Lease shall be deemed to have been waived by Landlord, unless such waiver is in
writing and is signed by Landlord.

     Section 20.2 No Waiver. The failure of either party to seek redress for violation of, or to
insist upon the strict performance of, any covenant or condition of this Lease, or any of the Rules
and Regulations, shall not be construed as a waiver or relinquishment for the future performance of
such obligations of this Lease or the Rules and Regulations, or of the right to exercise such
election but the same shall continue and remain in full force and effect with respect to any
subsequent breach, act or omission. The receipt by Landlord of any Rent payable pursuant to this
Lease or any other sums with knowledge of the breach of any covenant of this Lease shall not be
deemed a waiver of such breach. No payment by Tenant or receipt by Landlord of a lesser amount than
the monthly Rent herein stipulated shall be deemed to be other than a payment on account of the
earliest stipulated Rent, or as Landlord may elect to apply such payment, nor shall any endorsement
or statement on any check or any letter accompanying any check or payment as Rent be deemed an
accord and satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the balance of such Rent or pursue any other remedy provided in this
Lease.

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ARTICLE 21

WAIVER OF TRIAL BY JURY; COUNTERCLAIM

     Section 21.1 Jury Trial Waiver. Landlord and Tenant hereby waive trial by jury in any action,
proceeding or counterclaim brought by either party against the other on any matters in any way
arising out of or connected with this Lease, the relationship of Landlord and Tenant, Tenant’s use
or occupancy of the Premises, or the enforcement of any remedy under any statute, emergency or
otherwise.

     Section 21.2 Waiver of Counterclaim. If Landlord commences any summary proceeding against
Tenant, Tenant will not interpose any counterclaim of any nature or description in any such
proceeding (unless failure to interpose such counterclaim would preclude Tenant from asserting in
a separate action the claim which is the subject of such counterclaim), and will not seek to
consolidate such proceeding with any other action which may have been or will be brought in any
other court by Tenant.

ARTICLE
22

 NOTICES

     Except as otherwise expressly provided in this Lease, all consents, notices, demands,
requests, approvals or other communications given under this Lease shall be in writing and shall
be deemed sufficiently given or rendered if delivered by hand (provided a signed receipt is
obtained) or if sent by registered or certified mail (return receipt requested) or by a nationally
recognized overnight delivery service making receipted deliveries, addressed to Landlord and
Tenant as set forth in Article 1, and to any Mortgagee or Lessee who shall require copies of
notices and whose address is provided to Tenant, or to such other address(es) as Landlord, Tenant
or any Mortgagee or Lessor may designate as its new address(es) for such purpose by notice given
to the other in accordance with the provisions of this Article 22. Any such approval, consent,
notice, demand, request or other communication shall be deemed to have been given on the date of
receipted delivery, refusal to accept delivery or when delivery is first attempted but cannot be
made due to a change of address for which no notice is given of 3 Business Days after it shall
have been mailed as provided in this Article 22, whichever is earlier.

ARTICLE 23

RULES AND REGULATIONS

     All Tenant Parties shall observe and comply with the Rules and Regulations, as supplemented or
amended from time to time. Landlord reserves the right, from time to time, to adopt additional
Rules and Regulations and to amend the Rules and Regulations then in effect. Nothing contained in
this Lease shall impose upon Landlord any obligation to enforce the Rules and Regulations or terms,
covenants or conditions in any other lease against any other Building tenant, and Landlord shall
not be liable to Tenant for violation of the same by any other tenant, its employees, agents,
visitors or licensees, provided that Landlord shall enforce the Rules or Regulations against Tenant
in a non-discriminatory fashion.

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ARTICLE 24

BROKER

     Landlord has retained Landlord’s Agent as leasing agent in connection with this Lease and
Landlord will be solely responsible for any fee that may be payable to Landlord’s Agent. Landlord
agrees to pay a commission to Scheer Partners pursuant to a separate agreement. Each of Landlord
and Tenant represents and warrants to the other that neither it nor its agents have dealt with any
broker in connection with this Lease other than Landlord’s Agent and Tenant’s Broker and that no
other broker, finder or like entity procured or negotiated this Lease or is entitled to any fee or
commission in connection herewith. Each of Landlord and Tenant shall indemnify, defend, protect and
hold the other party harmless from and against any and all Losses which the indemnified party may
incur by reason of any claim of or liability to any broker, finder or like agent (other than
Landlord’s Agent and Scheer Partners) arising out of any dealings claimed to have occurred between
the indemnifying party and the claimant in connection with this Lease, and/or the above
representation being false. Landlord will have no liability to Tenant arising from any commission,
fee or other sum that is or might become due and payable to Liberty Greenfield in connection with
this Lease. Landlord and Tenant acknowledge that any commission, fee or other sum that is or might
become due and payable to Liberty Greenfield in connection with this Lease is to be paid by Scheer
Partners pursuant to the terms of a separate agreement between Scheer Partners and Liberty
Greenfield.

ARTICLE 25

INDEMNITY

     Section 25.1 Tenant’s Indemnity. Tenant shall not do or permit to be done any act or thing
upon the Premises or the Building which may subject Landlord to any liability or responsibility
for injury, damages to persons or property or to any liability by reason of any violation of any
Requirement, and shall exercise such control over the Premises as to fully protect Landlord
against any such liability. Tenant shall indemnify, defend, protect and hold harmless each of the
Indemnitees from and against any and all Losses, resulting from any claims (i) against the
Indemnitees arising from any negligence or willful misconduct of (A) all Tenant Parties or (B)
both Landlord and Tenant, provided, however, that Tenant’s liability hereunder with respect to
matters judicially determined to have arisen out of the negligence of Landlord, which
determination shall not be subject to appeal, shall be limited to the amount of insurance coverage
carried by Tenant pursuant to Article 11, (ii) against the Indemnitees arising from any accident,
injury or damage whatsoever caused to any person or to the property of any person and occurring in
or about the Premises, and (iii) against the Indemnitees resulting from any breach, violation or
nonperformance of any covenant, condition or agreement of this Lease on the part of Tenant to be
fulfilled, kept, observed or performed.

     Section 25.2 Landlord’s Indemnity. Landlord shall indemnify, defend and hold harmless Tenant
from and against all Losses incurred by Tenant arising from (i) any accident, injury or damage
whatsoever caused to any person or the property of any person in or about the
Real Property (exclusive of the Premises) to the extent attributable to the negligence or
willful misconduct of Landlord or its employees or agents, and/or (iii) any breach, violation or

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nonperformance of any covenant, condition or agreement of this Lease on the part of Landlord to
be fulfilled, kept, observed or performed.

     Section 25.3 Defense and Settlement. If any claim, action or proceeding is made or brought
against any Indemnitee for which Tenant is obligated to indemnify such Indemnitee under Section
25.1, then upon demand by an Indemnitee, Tenant, at its sole cost and expense, shall resist or
defend such claim, action or proceeding in the Indemnitee’s name (if necessary), by attorneys
approved by the Indemnitee, which approval shall not be unreasonably withheld (attorneys for
Tenant’s insurer shall be deemed approved for purposes of this Section 25.3). Notwithstanding the
foregoing, an Indemnitee may retain its own attorneys to participate or assist in defending any
claim, action or proceeding involving potential liability in excess of the amount available under
Tenant’s liability insurance carried under Section 11.1 for such claim and Tenant  shall pay the
reasonable fees and disbursements of such attorneys. If Tenant fails to diligently defend or if
there is a legal conflict or other conflict of interest, then Landlord may retain separate counsel
at Tenant’s expense. Notwithstanding anything herein contained to the contrary, Tenant may direct
the Indemnitee to settle any claim, suit or other proceeding provided that (a) such settlement
shall involve no obligation on the part of the Indemnitee other than the payment of money, (b) any
payments to be made pursuant to such settlement shall be paid in full exclusively by Tenant at the
time such settlement is reached, (c) such settlement shall not require the Indemnitee to admit any
liability, and (d) the Indemnitee shall have received an unconditional release from the other
parties to such claim, suit or other proceeding.

ARTICLE 26

MISCELLANEOUS

     Section 26.1 Delivery. This Lease shall not be binding upon Landlord or Tenant unless and
until Landlord shall have executed and delivered a fully executed copy of this Lease to Tenant.

     Section 26.2 Transfer of Real Property. Landlord’s obligations under this Lease shall not be
binding upon the Landlord named herein after the sale, conveyance, assignment or transfer
(collectively, a “Transfer”) by such Landlord (or upon any subsequent landlord after the Transfer
by such subsequent landlord) of its interest in the Building or the Real Property, as the case
may be, and in the event of any such Transfer, Landlord (and any such subsequent Landlord) shall
be entirely freed and relieved of all covenants and obligations of Landlord hereunder arising
from and after the date of Transfer and the transferee of Landlord’s interest (or that of such
subsequent Landlord) in the Building or the Real Property, as the case may be, shall be deemed to
have assumed all obligations under this Lease arising from and after the date of Transfer.

     Section 26.3 Limitation on Liability. The liability of Landlord for Landlord’s obligations
under this Lease shall be limited to Landlord’s interest in the Real Property and Tenant shall not
look to any other property or assets of Landlord or the property or assets of any direct or
indirect partner, member, manager, shareholder, director, officer, principal, employee or agent of
Landlord (collectively, the “Parties”) in seeking either to enforce Landlord’s obligations under
this Lease or to satisfy a judgment for Landlord’s failure to perform such obligations; and

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none of the Parties shall be personally liable for the performance of Landlord’s obligations under
this Lease.

     Section 26.4 Rent. All amounts payable by Tenant to or on behalf of Landlord under this
Lease, whether or not expressly denominated Fixed Rent, Tenant’s Tax Payment, Tenant’s Operating
Payment, Additional Rent or Rent, shall constitute rent for the purposes of Section 502(b)(6) of
the United States Bankruptcy Code.

     Section 26.5 Entire Document. This Lease (including any Schedules and Exhibits referred to
herein and all supplementary agreements provided for herein) contains the entire agreement between
the parties and all prior negotiations and agreements are merged into this Lease. All of the
Schedules and Exhibits attached hereto are incorporated in and made a part of this Lease, provided
that in the event of any inconsistency between the terms and provisions of this Lease and the terms
and provisions of the Schedules and Exhibits hereto, the terms and provisions of this Lease shall
control.

     Section 26.6 Governing Law. This Lease shall be governed in all respects by the laws of the
Commonwealth of Virginia (but not including the choice of law rules thereof).

     Section 26.7 Unenforceability. If any provision of this Lease, or its application to any
person or circumstance, shall ever be held to be invalid or unenforceable, then in each such event
the remainder of this Lease or the application of such provision to any other person or any other
circumstance (other than those as to which it shall be invalid or unenforceable) shall not be
thereby affected, and each provision hereof shall remain valid and enforceable to the fullest
extent permitted by law.

     Section 26.8 Lease Disputes.

          (a) Landlord and Tenant agree that (i) all disputes arising, directly or indirectly,
out of or relating to this Lease, and all actions to enforce this Lease, shall be dealt with and
adjudicated in the state courts of the Commonwealth of Virginia or the United States District Court
for the Eastern District of Virginia and for that purpose hereby expressly and irrevocably submits
itself to the jurisdiction of such courts; and (ii) to the extent permitted under applicable law,
this consent to personal jurisdiction shall be self-operative and no further instrument or action,
other than service of process in one of the manners specified in this Lease, or as otherwise
permitted by law, shall be necessary in order to confer jurisdiction upon it in any such court.

          (b) To the extent that Tenant has or hereafter may acquire any immunity from jurisdiction of
any court or from any legal process (whether through service or notice, attachment prior to
judgment, attachment in aid of execution, execution or otherwise) with respect to itself or its
property, Tenant irrevocably waives such immunity in respect of its obligations under this Lease.

     Section 26.9 Landlord’s Agent. Unless Landlord delivers written notice to Tenant to the
contrary, Landlord’s Agent is authorized to act as Landlord’s agent in connection with the
performance of this Lease, and Tenant shall be entitled to rely upon correspondence received from
Landlord’s Agent. Tenant acknowledges that Landlord’s Agent is acting solely as agent for

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Landlord in connection with the foregoing; and neither Landlord’s Agent nor any of its direct or
indirect partners, members, managers, officers, shareholders, directors, employees, principals,
agents or representatives shall have any liability to Tenant in connection with the performance of
this Lease, and Tenant waives any and all claims against any and all of such parties arising out
of, or in any way connected with, this Lease, the Building or the Real Property.

     Section 26.10 Estoppel. Within 10 Business Days following request from Landlord, any
Mortgagee or any Lessor, Tenant shall deliver to Landlord a statement executed and acknowledged by
Tenant, in form reasonably satisfactory to Landlord, (a) stating the Commencement Date, the Rent
Commencement Date and the Expiration Date, and that this Lease is then in full force and effect
and has not been modified (or if modified, setting forth all modifications), (b) setting forth
the date to which the Fixed Rent and any Additional Rent have been paid, together with the amount
of monthly Fixed Rent and Additional, Rent then payable, (c) stating whether or not, to the best of Tenant’s knowledge, Landlord is in default under this
Lease, and, if Landlord is in default, setting forth the specific nature of all such defaults,
(d) stating the amount of the Security Deposit, if any, under this Lease, (e) stating whether there
are any subleases or assignments affecting the Premises, (f) stating the address of Tenant to
which all notices and communications under the Lease shall be sent, and (g) responding to any
other matters reasonably requested by Landlord, such Mortgagee or such Lessor. Tenant
acknowledges that any statement delivered pursuant to this Section 26.10 may be relied upon by
any purchaser or owner of the Real Property or the Building or all or any portion of Landlord’s
interest in the Real Property or the Building or any Superior Lease, or by any Mortgagee, or
assignee thereof or by any Lessor, or assignee thereof.

     Section 26.11 Certain Interpretational Rules. For purposes of this Lease, whenever the words
“include”, “includes”, or “including” are used, they shall be deemed to be followed by the words
“without limitation” and, whenever the circumstances or the context requires, the singular shall
be construed as the plural, the masculine shall be construed as the feminine and/or the neuter and
vice versa. This Lease shall be interpreted and enforced without the aid of any canon, custom or
rule of law requiring or suggesting construction against the party drafting or causing the
drafting of the provision in question.

     The captions in this Lease are inserted only as a matter of convenience and for reference and
in no way define, limit or describe the scope of this Lease or the intent of any provision hereof.

     Section 26.12 Parties Bound. The terms, covenants, conditions and agreements contained in
this Lease shall bind and inure to the benefit of Landlord and Tenant and, except as otherwise
provided in this Lease, to their respective legal representatives, successors, and assigns.

     Section 26.13 Memorandum of Lease. This Lease shall not be recorded; however, at Landlord’s
request, Landlord and Tenant shall promptly execute, acknowledge and deliver a memorandum with
respect to this Lease sufficient for recording and Landlord may record the memorandum. Within 10
days following the end of the Term. Tenant shall enter into such documentation as is reasonably
required by Landlord to remove the memorandum of record.

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     Section 26.14 Counterparts. This Lease may be executed in 2 or more counterparts, each of
which shall constitute an original, but all of which, when taken together, shall constitute but
one instrument.

     Section 26.15 Survival. All obligations and liabilities of Landlord or Tenant to the other
which accrued before the expiration or other termination of this Lease, and all such obligations
and liabilities which by their nature or under the circumstances can only be, or by the provisions
of this Lease may be, performed after such expiration or other termination, shall survive the
expiration or other termination of this Lease. Without limiting the generality of the foregoing,
the rights and obligations of the parties with respect to any indemnity under this Lease, and with
respect to any Rent and any other amounts payable under this Lease, shall survive the expiration
or other termination of this Lease.

     Section 26.16 Inability to Perform. This Lease and the obligation of Tenant to pay Rent and
to perform all of the other covenants and agreements of Tenant hereunder shall not be affected,
impaired or excused by any Unavoidable Delays. Landlord shall use reasonable efforts to promptly
notify Tenant of any Unavoidable Delay which prevents Landlord from fulfilling any of its
obligations under this Lease.

     Section 26.17 Substitute Premises. [Intentionally Omitted]

     Section 26.18 Deed of Lease/Landlord’s Agent for Service of Process. For purposes of Section
55-2, Code of Virginia (1950), as amended, this Lease is and shall be deemed to be a deed of
lease. For purposes of Section 55-218.1, Code of Virginia (1950), as amended, Landlord’s resident
agent for service of process is: James C. Brincefield, Jr., Attorney at Law, 526 King Street,
Alexandria, Virginia 22314.

     Section 26.19 Lien for Payment of Rent. [Intentionally Omitted]

     Section 26.20 Financial Statements. Tenant agrees to deliver to Landlord by April 30 of each
year a balance sheet of Tenant as of the end of the preceding calendar year and an income and loss
statement of Tenant for the 12 month period ending on such date.

ARTICLE 27

SECURITY DEPOSIT

     Section 27.1 Letter of Credit. Tenant shall deliver to Landlord, upon Tenant’s execution of
this Lease, a Letter of Credit (as hereinafter defined) in the amount specified in the Basic Lease
Information, as security for the faithful performance and observance by Tenant of the terms,
covenants and conditions of this Lease. The Letter of Credit shall be in the form of a clean,
irrevocable, non-documentary and unconditional letter of credit (the “Letter of Credit”) issued by
and drawable upon any commercial bank which is a member of the New York Clearing House Association
or other bank satisfactory to Landlord, trust company, national banking association or savings and
loan association with offices for banking purposes in the Washington, D.C. metropolitan area (or,
if the issuing bank is Wells Fargo, an office in New York City, Washington, D.C. or San Francisco,
California) (the “Issuing Bank”), which has outstanding

- 49 -

 

unsecured, uninsured and unguaranteed indebtedness, or shall have issued a letter of credit or
other credit facility that constitutes the primary security for any outstanding indebtedness (which
is otherwise uninsured and unguaranteed), that is then rated, without regard to qualification of
such rating by symbols such as “+” or “-” or numerical notation, “Aa” or better by Moody’s
Investors Service and “AA” or better by Standard & Poor’s Rating Service, and has combined capital,
surplus and undivided profits of not less than $2,000,000,000. The Letter of Credit shall (a) name
Landlord as beneficiary, (b) have a term of not less than one year, (c) permit multiple drawings,
(d) be fully transferable by Landlord without the payment of any fees or charges by Landlord, and
(e) otherwise be in form and content satisfactory to Landlord. If upon any transfer of the Letter
of Credit, any fees or charges shall be so imposed, then Landlord shall pay the first $250 of such
fees and charges and Tenant shall pay any additional fees or charges imposed in connection with
such transfer. The Letter of Credit shall provide that it shall be deemed ‘ automatically renewed,
without amendment, for consecutive periods of one year each thereafter during the Term (and in no
event shall the Letter of Credit expire prior to the 45th day following the Expiration Date) unless
the Issuing Bank sends duplicate notices (the “Non-Renewal Notices ”) to Landlord by certified mail,
return receipt requested (one of which shall be addressed “Attention, Chief Legal Officer” and the
other of which shall be addressed “Attention, Chief Financial Officer”), not less than 45 days next
preceding the then expiration date of the Letter of Credit stating that the Issuing Bank has
elected not to renew the Letter of Credit. The Issuing Bank shall agree with all drawers, endorsers
and bona fide holders that drafts drawn under and in compliance with the terms of the Letter of
Credit will be duly honored upon presentation to the Issuing Bank at an office location in the
Washington, D.C. metropolitan area. The Letter of Credit shall be subject in all respects to the
International Standby Practices 1998, International Chamber of Commerce Publication No. 500.

     Section 27.2 Application of Security. If (a) an Event of Default by Tenant occurs in the
payment or performance of any of the terms, covenants or conditions of this Lease, including the
payment of Rent, or (b) Tenant fails to make any installment of Rent as and when due, or (c)
Landlord receives a Non-Renewal Notice, Landlord shall have the right by sight draft to draw, at
its election, all or a portion of the proceeds of the Letter of Credit and thereafter hold, use,
apply, or retain the whole or any part of such proceeds, as the case may be, (x) to the extent
required for the payment of any Fixed Rent or any other sum as to which Tenant is in default
including (i) any sum which Landlord may expend or may be required to expend by reason of Tenant’s
default, and/or (ii) any damages to which Landlord is entitled pursuant to this Lease, whether
such damages accrue before or after summary proceedings or other reentry by Landlord, and/or (y)
as a cash security deposit, unless and until, in the case of clause (c) above, Tenant delivers to
Landlord a substitute Letter of Credit which meets the requirements of this Article 27. If
Landlord applies or retains any part of the proceeds of the Letter of Credit, or cash security,
Tenant, upon demand, shall deposit with Landlord the amount so applied or retained so that
Landlord shall have the full amount thereof on hand at all times during the Term. If Tenant shall
comply with all of the terms, covenants and conditions of this Lease, the Letter of Credit or cash
security, as the case may be, shall be returned to Tenant after the Expiration Date and after
delivery of possession of the Premises to Landlord in the manner required by this Lease.

- 50 -

 

     Section 27.3 Transfer. Upon a sale or other transfer of the Real Property or the Building, or
any financing of Landlord’s interest therein, Landlord shall have the right to transfer the Letter
of Credit and any cash security to its transferee or lender. With respect to the Letter of Credit,
within 5 days after notice of such transfer or financing, Tenant, at its sole cost, shall arrange
for the transfer of the Letter of Credit to the new landlord or the lender, as designated by
Landlord in the foregoing notice or have the Letter of Credit reissued in the name of the new
landlord or the lender. Upon such transfer, Tenant shall look solely to the new landlord or lender
for the return of the Letter of Credit or such cash security and the provisions hereof shall apply
to every transfer or assignment made of the Letter of Credit or such cash security to a new
landlord. Tenant shall not assign or encumber or attempt to assign or encumber the Letter of Credit
or such cash security and neither Landlord nor its successors or assigns shall be bound by any such
action or attempted assignment, or encumbrance.

[SIGNATURES FOLLOW]

- 51 -

 

     IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as of the day and year first
above written.

LANDLORD:

TST WOODLAND FUNDING I, L.L.C., 

a Delaware limited liability company

	 	 	 	 	 
	 

	 	 	 	 
	By:

	 	/s/ Gary W. Roth	 	 
	 

	 	 	 	 
	 
	 	Gary W. Roth	 	 
	Its:

	 	Vice President	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	TENANT:
	 	 
	 
	 	 	 	 
	DIECA COMMUNICATIONS, INC., 

a Virginia corporation	 	 
	 
	 	 	 	 
	By:

	 	/s/ Charles E. Hoffman	 	 
	 

	 	 	 	 
	Its:

	 	President & CEO	 	 
	 

	 	 	 	 

- 52 -

 

Exhibit A

Floor Plan

The floor plan which follows is intended solely to identify the general location of the Premises,
and should not be used for any other purpose. All areas, dimensions and locations are approximate,
and any physical conditions indicated may not exist as shown.

A-1

 

 

 

 

 

 

 

FIRST AMENDMENT TO DEED OF LEASE

     THIS FIRST AMENDMENT TO DEED OF LEASE (this “First Amendment”) is made this
31st day of March, 2005 (the “Effective Date”), by and between ACP/2300 CORPORATE PARK
DRIVE, LLC, a Delaware limited liability company (“Landlord”), and DIECA COMMUNICATIONS, INC., a Virginia corporation (“Tenant”).

W I T N E S S E T H :

     WHEREAS, pursuant to that certain Deed of Lease dated July 8, 2002 (the “Original Lease”),
TST Woodland Funding I, L.L.C. (“Original Landlord”) leased to Tenant, and Tenant leased from
Original Landlord, approximately 37,517 rentable square feet of space (the “Premises”) on the
first (1st), third (3rd) and fourth (4th) floors of the building located
at 2300 Corporate Park Drive, Herndon, Virginia (the “Building”);

     WHEREAS, Landlord purchased the Building from Original Landlord and succeeded to the
interest of Original Landlord under the Original Lease; and

     WHEREAS, Tenant desires to extend the Term for a period of five (5) years, commencing on
August 1, 2005 and expiring on July 31, 2010, and Landlord is willing to do so, subject to the
terms and conditions set forth in this First Amendment.

     NOW, THEREFORE, in consideration of the foregoing and for other good and valuable
consideration and of the mutual agreements hereinafter set forth, it is hereby mutually agreed as
follows:

     1. Incorporation of Recitals. The foregoing recitals are hereby incorporated in this First Amendment and made a part hereof by this reference.

     2. Definitions. All capitalized terms used in this First Amendment shall have the meanings
ascribed thereto in the Original Lease, unless otherwise defined herein. As used herein and
in the Original Lease, the term “Lease” shall mean the Original Lease, as amended by this First
Amendment.

     3. Extension Term. The Term is hereby extended for a period of five (5) years (the
“Extension Term”), commencing on August 1, 2005 (the “Extension Term Commencement Date”) and
ending on July 31, 2010 (the “Extension Term Expiration Date”).

     4. Improvements to the Premises.

          A. Tenant shall retain possession of the Premises on the Extension Term Commencement Date in
its then “as-is” condition, and, except as expressly set forth in this Paragraph 4, Landlord shall
have no obligation to perform or pay for any work, improvements or alterations in or to the
Premises in connection with this First Amendment or otherwise. Notwithstanding the foregoing and
provided that Tenant is not then in default of its obligations under the Lease, Landlord shall
install in the Premises, at Tenant’s sole cost and expense, subject to application of the
Refurbishment Allowance (hereinafter defined), the improvements and alterations (the “Tenant
Improvements”) described in the plans and specifications prepared by Tenant’s architect and
approved by Landlord (the “Tenant’s Plans”). Landlord shall provide Tenant with an allowance of up
to Seven Hundred Thirty-One Thousand Five Hundred Eighty-One and 50/100 Dollars ($731,581.50) (or
Nineteen and 50/100 Dollars ($19.50) per rentable square foot of the Premises) (the “Refurbishment
Allowance”) to pay for costs and expenses incurred by Tenant in connection with the design and
construction of the Tenant Improvements. Once Landlord has approved the Tenant’s Plans, Landlord
shall bid the Tenant Improvements work to three (3) general contractors selected by Landlord who
are licensed in Virginia (the “Approved Bidders”). Upon

HOLLAND & KNIGHT llp

 

 

Landlord’s receipt of fixed price bids from those of the Approved Bidders which intend to submit
bids for the construction of the Tenant Improvements, Tenant shall select the contractor which
shall undertake construction of the Tenant Improvements (the “Contractor”) from among the Approved
Bidders which Landlord determines have submitted conforming bids. Subject to Landlord’s approval of
the Tenant’s Plans, construction of the Tenant Improvements work may commence at any time after the
Effective Date. Landlord shall disburse portions of the Refurbishment Allowance from time-to-time
as Landlord incurs costs in connection with the construction of the Tenant Improvements. The
Tenant’s Plans prepared by Tenant’s architect shall be subject to Landlord’s approval in accordance
with the terms and conditions of the Original Lease, including without limitation those set forth
in Article 5 thereof (captioned, “Alterations”); provided that Landlord shall approve or reject in
its sole discretion all Tenant Improvements proposed by Tenant which affect the base Building or
the mechanical, electrical, plumbing or other any base Building system therein. The Refurbishment
Allowance shall be used by Tenant solely to pay for the cost of constructing the Tenant
Improvements in the Premises, except as otherwise expressly permitted pursuant to the terms and
conditions of Paragraph 4.C, below.

     B. All costs and expenses incurred in connection with the design and construction of
the Tenant Improvements (the “Construction Costs”) in excess of the Improvement Allowance
shall be paid solely by Tenant on or before the date such costs are due and payable (or if previously
paid by Landlord, shall be reimbursed to Landlord by Tenant within ten (10) days of receipt by Tenant
of invoices therefor from Landlord), and Tenant agrees to indemnify Landlord from and against any
such costs. All amounts payable by Tenant pursuant to this Paragraph 4.B shall be deemed to be Additional Rent
for purposes of the Lease.

     C. At any time after Tenant has completed the Tenant Improvements and obtained
lien waivers from all contractors who performed construction-related services, Tenant may;
upon ten (10) business days notice to Landlord, cause Landlord to apply any then-undisbursed portion of the
Refurbishment Allowance toward the next installment of Extension Term Monthly Fixed Rent
(hereinafter defined) and/or Additional Rent coming due under the Lease. In the event that
Landlord has not disbursed all of the Refurbishment Allowance by January 1, 2007 (the “Outside Allowance
Date”) in payment of, or reimbursement for, Tenant Improvements permitted hereunder and/or to defray
Extension Term Monthly Fixed Rent and/or Additional Rent under the Lease, Landlord shall credit such
undisbursed portion of the Refurbishment Allowance against Tenant’s obligation to pay Rent
(including without limitation Extension Term Monthly Fixed Rent and/or Additional Rent) first owing under
the Lease after the Outside Allowance Date.

     D. Landlord’s designated representative, ACP Mid-Atlantic LLC (the “Construction
Supervisor”), shall supervise the construction of the Tenant Improvements, and Tenant shall
pay the Construction Supervisor a construction supervisor fee (the “Construction Supervision Fee”)
equal to five percent (5%) of the cost of the Tenant Improvements to cover the Landlord’s cost of
supervision of construction of the Tenant Improvements. In supervising the construction of the Tenant
Improvements, the Construction Supervisor shall perform the following tasks: (1) prepare the bid package for
the construction of the Tenant Improvements; (2) discuss the bid package with Tenant; (3) submit a
bid package to each of the Approved Bidders; (4) discuss the bid package with the Approved
Bidders; (5) show the Premises to each Approved Bidder; (6) collect from the Approved Bidders fixed price
bids for the construction of the Tenant Improvements; (7) discuss each bid with Tenant, Landlord and
each Approved Bidder which submitted same; (8) approve the form of construction contract to be
executed by Landlord and the Contractor; (9) oversee the Contractor’s obtaining of permits
for, and the commencement of construction with respect to, the Tenant Improvements work; (10) supervise
construction of the Tenant Improvements; (11) determine when the Tenant Improvements have been
substantially completed by the Contractor; (12) hold a “walk through” inspection of the
Premises with Tenant and the Contractor; and (13) oversee the completion by the Contractor of all “punch
list” items noted by Tenant and confirmed by Landlord’s architect. The Construction Supervision Fee
shall be

HOLLAND & KNIGHT llp

2

 

deducted by the Landlord from the Refurbishment Allowance. Notwithstanding the foregoing,
Tenant shall be required to reimburse Landlord for any reasonable third-party costs incurred
by Landlord in connection with Landlord’s review of any plans or specifications depicting the
Tenant Improvements, within thirty (30) days after invoice by Landlord; provided however
that, before incurring any such third-party costs, Landlord shall contact Tenant and inform
it of the nature and scope of the third-party services that Landlord intends to retain.
Landlord shall deduct such third-party costs from the Refurbishment Allowance.

          E. Tenant expressly acknowledges and agrees that (1) Landlord shall undertake the Tenant
Improvements in the Premises while Tenant is in. occupancy thereof; (2) Landlord shall
perform construction activities in the Premises during regular business hours (Monday-Friday,
9:00 a.m. to 5:00 p.m.), unless Landlord elects in its sole discretion to perform some or all
of such work in the evening and on weekends; (3) Landlord shall not be liable to Tenant for
constructive eviction or for any interference to Tenant’s business operations in the Premises
arising out of Landlord’s construction of the Tenant Improvements; and (4) no delay by
Landlord in substantially completing the Tenant Improvements shall delay or otherwise affect
any of Tenant’s obligations hereunder, including without limitation its obligation to pay
full Extension Term Monthly Fixed Rent and Additional Rent from and after the Extension Term
Commencement Date. Notwithstanding the provisions of subsection (2), above, at Tenant’s
written request, received by Landlord prior to the execution by Landlord and the Contractor
of a construction contract for the construction of the Tenant Improvements, Landlord shall
cause the Contractor to undertake the construction of the Tenant Improvements during days and
hours other than regular business hours; provided however that Tenant shall bear all
additional and/or increased costs which arise out of such election by Tenant, including
without limitation an increase in the Contractor’s price to construct the Tenant Improvements
and all engineering, security and other costs incurred by Landlord as a result thereof. All
such additional and/or increased costs shall be paid by Landlord out of the Refurbishment
Allowance. Landlord agrees that, if Tenant elects to have Landlord undertake the construction
of the Tenant Improvements during regular business hours, Landlord shall use commercially
reasonable efforts to coordinate the scheduling of the Tenant Improvements with Tenant in
order to attempt to minimize the interference to Tenant’s business operations in the Premises
caused by such construction work.

     5. Fixed Rent During Extension Term. Commencing on the Extension Term Commencement Date,
and thereafter on the first day of each and every calendar month during the Extension Term,
Tenant shall pay to Landlord Fixed Rent for the Premises (“Extension Term Annual Fixed Rent”)
in the following amounts, in equal monthly installments (“Extension Term Monthly Fixed
Rent”), in advance, as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Extension Term Annual	 	 	 	 
	 	 	Fixed Rent Per Square	 	Extension Term	 	Extension Term
	        Period	 	Foot	 	Annual Fixed Rent	 	Monthly Fixed Rent
	8/1/05-7/31/06
	 	$	25.50	 	 	$	956,683.56	 	 	$	79,723.63	 
	8/1/06-7/31/07
	 	$	26.14	 	 	$	980,600.64	 	 	$	81,716.72	 
	8/1/07-7/31/08
	 	$	26.79	 	 	$	1,005,115.68	 	 	$	83,759.64	 
	8/1/08-7/31/09
	 	$	27.46	 	 	$	1,030,243.56	 	 	$	85,853.63	 
	8/1/09-7/31/10
	 	$	28.15	 	 	$	1,055,999.64	 	 	$	87,999.97	 

Tenant shall pay Landlord Extension Term Annual Fixed Rent without deduction, diminution,
setoff, counterclaims or prior notice or demand, in accordance with the terms and provisions
of Article 2 of the Original Lease (captioned, “Premises, Term, Rent”).

HOLLAND & KNIGHT llp

3

 

     6. Additional Rent During Extension Term.

          A. Commencing on January 1, 2007 and continuing thereafter throughout the Extension Term,
Tenant shall pay to Landlord: (i) Tenant’s Proportionate Share (as such term is defined in Article 1 of the Original Lease) of the amount of Operating Expenses incurred by Landlord during
any calendar year in the Extension Term which is in excess of the amount of Operating Expenses
incurred by Landlord in the E.T. Base Year (hereinafter defined) in accordance with the terms and
conditions of Section 7.3 of the Original Lease (captioned, “Tenant’s Operating Payment”); and (ii)
Tenant’s Proportionate Share of the amount of Taxes incurred by Landlord during any calendar year
in the Extension Term which is in excess of the amount of Taxes incurred by Landlord in the E.T.
Base Year in accordance with the terms and conditions of Section 7.2 of the Original Lease
(captioned, “Tenant’s Tax Payment”). As used herein, the term “E.T. Base Year” shall mean calendar
year 2006.

          B. Effective as of January 1, 2007, Section 7.7(a) of the Original Lease is amended by (1)
deleting “105%” in each instance in which such percentage is used therein and by inserting in
lieu thereof “106%”; (2) deleting the example set forth therein; and (3) inserting the following
language regarding the cumulative nature of the Cap immediately after the word “determined)” in
line 6 thereof: “Notwithstanding the foregoing, for each calendar year in which Controllable
Operating Expenses are less than 106% of Controllable Operating Expenses for the
immediately-preceding calendar year, the percentage by which actual Controllable Operating
Expenses for such year are below 106% of the prior year’s Controllable Operating Expenses shall
be added to the “Cap” for the next calendar year (and each succeeding calendar year until
actual Controllable Operating Expenses for such year exceed by more than 106% (plus any unused
“carryover” percentage from prior calendar years) of the prior year’s Controllable Operating
Expenses”.

     7. Tenant’s Continuing Obligations. Between the Effective Date and the Extension Term
Commencement Date, Tenant shall continue to pay to Landlord: (a) all Fixed Rent for the Premises in
accordance with the terms and conditions of Article 2 of the Original Lease; (b) Tenant’s
Proportionate Share of increases in Operating Expenses in accordance with the terms and conditions
of Section 7.3 of the Original Lease; (c) Tenant’s Proportionate Share of increases in Real Estate
Taxes in accordance with the terms and conditions of Section 7.2 of the Original Lease; and (d) any
and all other Additional Rent payable to Landlord under the Original Lease.

     8. Option To Extend Term.

          A. Tenant shall have and is hereby granted the option to further extend the Term hereof for
one (1) additional period of five (5) years commencing on the date immediately following the
Extension Term Expiration Date (the “Second Extension Term”), provided that: (i) Tenant
delivers written notice (the “Second Extension Notice”) to Landlord, on the date which is
twelve (12) months prior to the Extension Term Expiration Date, time being of the essence, of
Tenant’s irrevocable election to exercise such extension option, time being of the essence;
(ii) no Event of Default has occurred during the Extension Term and no event exists at the time
of the exercise of such option or arises subsequent thereto, which event by notice and/or the
passage of time would constitute an Event of Default if not cured within the applicable cure
period; and (iii) Tenant has not assigned its interest in the Lease (except to a Related
Entity) or sublet more than thirty percent (30%) of the Premises (except to a Related Entity).

          B. All terms and conditions of the Lease, including without limitation all provisions
governing the payment of Additional Rent and annual increases in Annual Fixed Rent, shall
remain in full force and effect during the Second Extension Term, except that (i) Annual Fixed
Rent (on a per rentable square foot basis) payable during the Second Extension Period shall
equal the then-current Fair Market Rental Rate (hereinafter defined) at the time of the
commencement of the Second Extension Period; (ii) Landlord shall provide a “market” improvement
allowance, rental abatement and other tenant concessions

HOLLAND & KNIGHT llp

4

 

in connection with the Second Extension Term; and (iii) the “Base Year” for Tenant’s Proportionate
Share of increases in Operating Expenses and Tenant’s Proportionate Share of increases in Real
Estate Taxes shall be calendar year 2011. As used in this Lease, the term “Fair Market Rental Rate”
shall mean the fair market rental rate that would be agreed upon between a landlord and a tenant
entering into a lease renewal for comparable space as to location, configuration, size and use, in
a comparable building as to quality, reputation and age which is located in the Dulles Toll Road
Corridor submarket, with a comparable build-out and a comparable term assuming the following: (A)
the landlord and tenant are informed and well-advised and each is acting in what it considers its
own best interests; (B) the landlord shall provide a “market” tenant improvement allowance, free
rent period and other tenant concessions (including, for example, an allowance for architectural
and engineering fees) typically provided to tenants of comparable space in comparable buildings for
leases having terms comparable to the Second Extension Period; and (C) the tenant will continue to
pay its share of increases in Operating Expenses and Real Estate Taxes as described above.

        
  C. Landlord and Tenant shall negotiate in good faith to determine the Annual Fixed
Rent for the first year of the Second Extension Term, for a period of thirty (30) days after
the date on which Landlord receives Tenant’s written notice of Tenant’s irrevocable election to exercise
the extension option provided for under this Paragraph 8. In the event Landlord and Tenant are unable to
agree upon the Annual Fixed Rent for the first year of the Second Extension Term within said thirty
(30)-day period, the Fair Market Rental Rate for the Premises shall be determined by a board of three (3)
licensed real estate brokers, one of whom shall be named by the Landlord, one of whom shall be named by
Tenant, and the two so appointed shall select a third. Each real estate broker so selected shall be
licensed in the Commonwealth of Virginia as a real estate broker specializing in the field of office leasing
in Fairfax County, having no fewer than ten (10) years experience in such field, and recognized as
ethical and reputable within the field. Landlord and Tenant agree to make their appointments promptly
within ten (10) days after the expiration of the thirty (30)-day period, or sooner if mutually agreed
upon. The two (2) brokers selected by Landlord and Tenant shall promptly select a third broker (the “Third
Broker”) within ten (10) days after they both have been appointed, and each broker, within fifteen (15)
days after the third broker is selected, shall submit his or her determination of the Fair Market Rental
Rate. The Third Broker shall determine which determination of Fair Market Rental Rate made by Landlord’s
broker or Tenant’s broker is closest to the determination of Fair Market Rental Rate made by the
Third Broker (the “Closest Determination”). The Fair Market Rental Rate hereunder shall be the mean of the
Closest Determination and the determination of Fair Market Rental Value made by the Third Broker.
Landlord and Tenant shall each pay the fee of the broker selected by it, and they shall equally share
the payment of the fee of the Third Broker.

          D. Should the Term of the Lease be extended hereunder, Tenant shall, if required by
Landlord, execute an amendment modifying the Lease within thirty (30) days after Landlord
presents same to Tenant, which agreement shall set forth the Annual Fixed Rent for the first year of
the Second Extension Term and the other economic terms and provisions in effect during the Second
Extension Term. Should Tenant fail to execute the amendment (which amendment accurately sets forth
the economic terms and provisions in effect during the Second Extension Term) within thirty (30)
days after presentation of same by Landlord, time being of the essence, Tenant’s right to further extend
the Term of the Lease shall, at Landlord’s sole option, terminate, and Landlord shall be permitted to
lease such space to any other person or entity upon whatever terms and conditions are acceptable to Landlord in
its sole discretion.

     9. Right of First Offer.

          A. Subject to (i) any renewal rights granted by Landlord, before or after the Effective
Date, to any tenant of all or any portion of the Right of First Offer Space, and (ii) the right of
any tenant of the Right of First Offer Space (or any portion thereof) to negotiate an extension of
the term

HOLLAND & KNIGHT llp

5

 

of its lease of such space or a new lease demising such space, Tenant shall be granted during the
Extension Term only the following rights with respect to the Right of First Offer Space. As used
herein, the term “Right of First Offer Space” shall mean the portion, if any, of the First Floor
Space (hereinafter defined) and/or the Fourth Floor Space (hereinafter defined) which Landlord
determines is available for lease by Tenant during the Extension Term and with respect to which
Landlord receives an Offer (hereinafter defined) to lease all or any portion of such space. As
used herein (1) the term “First Floor Space” means the space located on the first
(1st) floor of the Building which is designated as “First Floor Space” on Exhibit
A attached hereto, and (2) the term “Fourth Floor Space” means the space located on the
fourth (4th) floor of the Building which is designated as “Fourth Floor Space” on
Exhibit A-1 attached hereto. Notwithstanding any provision of the Lease to the contrary,
Tenant shall have no rights with respect to the Right of First Offer Space or any other rights of
first offer or refusal, or first right to negotiate, or any other expansion rights whatsoever,
except as expressly provided in this Paragraph 9.

          B. If, during the Extension Term, Landlord determines that any portion of the Right of First
Offer Space is, or will be, available for lease by Tenant and thereafter Landlord receives a bona
fide offer from a prospective tenant which is not related to Landlord (a “Prospective Tenant”) to
lease all or any portion of the Right of First Offer Space (an “Offer”), the financial terms of
which Landlord is prepared to accept, Landlord shall notify Tenant in writing of such Offer (the
“ROFO Notice”), and Landlord shall set forth in the ROFO Notice: (i) a description of the portion
of the Right of First Offer Space that is subject to the Offer (the “Available Space”), (ii) the
base rent, tenant concessions and other terms and conditions pursuant to which Landlord would
agree to lease the Available Space to Tenant (which terms need not be those contained in the
Offer), and (iii) the date on which Landlord anticipates that the Available Space would become
available for lease by Tenant (the “ROFO Availability Date”). Provided that (A) no Event of
Default then exists under the Lease; (B) Tenant has not assigned the Lease (except to a Related
Entity), or sublet twenty-five percent (25%) or more of the Premises (except to a Related Entity);
(C) not less than thirty-six (36) months remain in the Extension Term as of the ROFO Availability
Date; and (D) Tenant notifies Landlord, in writing, within five (5) business days after Tenant
receives the ROFO Notice, time being of the essence, of Tenant’s irrevocable election to lease all
(but not less than all) of the Available Space described in the ROFO Notice on the terms and
conditions set forth in the ROFO Notice (the “ROFO Tenant Election Notice”), Tenant shall have the
right to lease all, but not less than all, of the Available Space described in the ROFO Notice on
the terms and conditions set forth in the ROFO Notice.

          C. In the event that Tenant timely delivers a ROFO Tenant Election Notice to
Landlord, Landlord shall prepare an amendment modifying the Lease to incorporate the
Available Space (the “ROFO Amendment”), which amendment shall set forth, among other things: (i) the amount
of Annual Fixed Rent payable by Tenant for the Available Space (based on the per rentable square
foot rental rate set forth in the ROFO Notice) during each year of the Right of First Offer Space
Term (hereinafter defined); and (ii) the adjustments to Tenant’s obligation to pay Additional Rent
caused by the addition of the Available Space. The term of the demise of the Available Space (the “Right of
First Offer Space Term”) shall commence on the date on which Landlord delivers such Available Space to
Tenant (the “ROFO Space Commencement Date”), at which time all of Tenant’s obligations with respect
to the Available Space shall commence, including the obligation to pay Annual Fixed Rent. The Right
of First Offer Space Term shall be coterminous with the Extension Term, as such term may be further
extended.

          D. In the event that Landlord and Tenant enter in a ROFO Amendment, and
Landlord is unable to deliver to Tenant possession of the Available Space demised thereunder
on the ROFO Availability Date for any reason whatsoever, including without limitation the failure of
an existing tenant to vacate such space, Landlord shall not be liable or responsible for any claims,
damages or liabilities in connection therewith or by reason thereof, provided that (i) Landlord shall
use reasonable efforts to obtain possession of such space and deliver same to Tenant as soon as reasonably
practicable thereafter; and (ii) rent shall abate until Landlord delivers the Available Space to Tenant.

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          E. In the event Tenant fails timely to deliver a ROFO Tenant Election Notice to Landlord or,
having done so, Tenant fails to execute the ROFO Amendment tendered by Landlord within ten (10)
days after Landlord tenders such amendment to Tenant: (i) Landlord may lease the Available Space
(or any portion thereof) described in the ROFO Notice to any person or entity of Landlord’s
choice, on whatever terms and conditions are selected by Landlord in its sole discretion; and
(ii) this Paragraph 9 shall terminate automatically, and Tenant shall have no further right to
lease any Right of First Offer Space.

     10. Monument Sign. In the event that, at any time during the Term, Landlord elects in
its sole discretion to erect a monument sign (the “Monument”) adjacent to the main entrance of the
Building, Tenant, at Tenant’s sole cost and expense, shall be permitted to install on a
non-exclusive basis a plaque or other means of entity identification selected by Landlord in its
sole discretion and bearing Tenant’s name (the “Monument Signage”) on such Monument, in a location
selected by Landlord. All attributes of the Monument, if constructed by Landlord, shall be
determined by Landlord in its sole discretion. All attributes of the Monument Signage, including
without limitation size, materials, and color and position on Landlord’s Monument, shall be subject
to Landlord’s approval in its sole discretion. The location of other tenants’ signage on the
Monument (if built) shall be determined by Landlord in its sole discretion. In the event that the
Monument is constructed by Landlord, Tenant’s right to install the Monument Signage shall be
subject to Tenant’s receipt of all necessary permits and governmental approvals for such
installation; provided that the failure to obtain such permits or approvals shall not affect the
Lease (or Tenant’s obligations thereunder) in any way. Tenant shall be responsible for repairing
and maintaining the Monument Signage in a first-class condition throughout the Term. The Monument
Signage shall be installed by Landlord at Tenant’s sole cost and expense. The right to install the
Monument Signage shall be personal to Dieca Communications, Inc. and shall not apply to any
sublessee, assignee or other transferee of Tenant; provided that (a) if an affiliate of Tenant
occupies the Premises pursuant to this Lease or a sublease, such affiliate’s name may be on the
Monument Signage in lieu of Tenant’s name; and (b) Tenant may insert its “Covad” trade name on the
Monument Signage in lieu of its corporate name. Tenant agrees to indemnify Landlord and hold it
harmless from and against all claims, damage or liability (including reasonable attorneys’ fees)
sustained or suffered by Landlord arising out of or related to the installation, maintenance or
removal of the Monument Signage. Tenant shall remove the Monument Signage at the end of the Term,
and shall restore the portion of Landlord’s Monument affected by such removal to its condition
immediately prior to the installation of such Monument Signage, reasonable wear and tear excepted.
If Tenant fails to remove the Monument Signage from the Monument at the expiration of the Term or
fails to restore the portions of the Monument affected by such removal, Landlord may, but shall not
be obligated to remove the Monument Signage and/or restore the portion of the Monument affected
thereby, and Tenant shall reimburse Landlord for all costs and expenses incurred by Landlord with
respect to such removal and/or restoration immediately upon demand therefor.

     11. Security Deposit. Within ten (10) days after the Effective Date, time being of the essence,
Tenant shall cause the Issuing Bank to extend until October 31, 2010 the expiration date under the
Letter of Credit, and to issue to Landlord an amendment to the Letter of Credit, in form and
substance acceptable to Landlord in its sole discretion, by which the Issuing Bank has effected
such extension. Notwithstanding any contrary provision contained in Article 27 of the Original
Lease (captioned, “Security Deposit”), provided that (a) no Event of Default then exists; (b) no
event has occurred which, but for the passage of time or the giving of notice, would constitute an
Event of Default under the Lease; and (c) Tenant has not assigned the Lease or subleased all or
any portion of the Premises (collectively, the “Reduction Conditions”), then, upon the earlier to
occur of (i) the date which is ten (10) days after that on which Tenant evidences to Landlord’s
reasonable satisfaction that, for four (4) successive three (3) calendar month periods during the
Extension Term, Guarantor (hereinafter defined) has been Profitable (hereinafter defined); or (ii)
August 31, 2008, the Letter of Credit shall be reduced by an amount (the “First Reduction Amount”)
sufficient to cause the Letter of Credit to be in an amount equal to three (3) times the
then-current Extension Term Monthly Fixed Rent. As used herein, the term “Profitable” means that,
at the end of each three (3) calendar month period described above, Tenant demonstrates to

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Landlord’s reasonable satisfaction that (A) Guarantor has achieved an after-tax profit (i.e., net
income after taxes) for such period, (B) Guarantor has an owner’s equity net of unamortized
intangibles and. goodwill (i.e., total assets less total liabilities and less any unamortized
intangible assets and any good will) equal to or greater than such owner’s equity as of the
Effective Date, and (C) the ratio of Guarantor’s total debt (long-term and short term) to
owner’s equity (net of unamortized intangibles and goodwill) is
less than 1:2 (i.e. total debt
 ̧
owner’s equity and less any unamortized intangible assets and any good will is less than .50).
The foregoing ratios and amounts for each three (3) calendar month period in question shall be
determined based upon Guarantor’s quarterly financial statements delivered to Landlord which have
been prepared in accordance with generally accepted accounting principles consistently applied
and certified to as such by Guarantor’s chief financial officer. Notwithstanding the foregoing,
the Issuing Bank (as such term is defined in Section 27.1 of the Original Lease) shall not reduce
the Letter of Credit as aforesaid unless and until Landlord delivers to such bank a written notice
confirming that all conditions precedent to such reduction have been satisfied. In addition,
provided that the Letter of Credit is reduced by the First Reduction Amount prior to August 31,
2008 in accordance with the provisions of Subparagraph (i), above, and provided that Guarantor’s
Net Worth (hereinafter defined) and Profitability have not declined between the date of such
initial reduction in the Letter of Credit and August 31, 2008, then within thirty (30) days after
August 31, 2008, provided that the Reduction Conditions are satisfied by Tenant as of this date,
the Letter of Credit shall be further reduced by an amount (the “Second Reduction Amount”)
sufficient to cause the Letter of Credit to be in an amount equal to two (2) times the then-current
Extension Term Monthly Fixed Rent. In no event shall the Letter of Credit be further reduced by
the Issuing Bank unless and until the Issuing Bank receives from Landlord written confirmation that
Tenant has timely satisfied the conditions set forth above, and that Tenant is then entitled to a
reduction in the Letter of Credit in me amount of the Second Reduction Amount. As used herein,
the term “Net Worth” means total assets (exclusive of intangible assets, including goodwill) minus
total liabilities.

     12. Second Floor Storage Systems Furniture. Subject to the terms and conditions set
forth below, Tenant shall have and is hereby granted a one-time right of first offer to use, during
the Extension Term,’at no additional cost to Tenant, the systems furniture currently being stored
by Landlord on the second (2nd) floor of the Building, which furniture consists of
approximately twenty-four (24) work station cubicles (the “Second Floor Storage Systems
Furniture”). In the event that Landlord notifies Tenant in writing that Landlord intends to
utilize the Second Floor Storage Systems Furniture during the Extension Term, Tenant shall have
five (5) business days within which to notify Landlord in writing (the “Furniture Election Notice”)
of Tenant’s election to use the Second Floor Storage Systems Furniture during the Extension Term.
In the event that Tenant timely delivers the Furniture Election Notice to Landlord, Landlord, at
Tenant’s sole cost and expense, shall deliver the Second Floor Storage Systems Furniture to the
Premises on the Furniture Delivery Date in its then “as-is” condition. As used herein, the term
“Furniture Delivery Date” means the later to occur of: (i) the Extension Term Commencement Date;
or (ii) thirty (30) days after Landlord’s receipt of the Furniture Election Notice. Tenant hereby
expressly acknowledges and that Landlord shall have no obligation to provide or purchase any
supplemental components that may be necessary to assemble or otherwise use the Second Floor
Storage Systems Furniture. Throughout the Extension Term, Tenant shall be solely responsible for
the installation, maintenance, repair and/or replacement of the Second Floor Storage Systems
Furniture. At the expiration or other termination of the Extension Term, Tenant shall surrender
and deliver the Second Floor Storage Systems Furniture, to Landlord in the same condition and
repair as it existed on the Extension Term Commencement Date (except as repaired, rebuilt, or
replaced), ordinary wear and tear excepted. If Tenant fails to properly maintain, repair or
replace any of the Second Floor Storage Systems Furniture, Landlord may (but shall not be obligated
to) undertake such maintenance, repair or replacement, and Tenant shall reimburse Landlord for all
costs incurred by Landlord in connection therewith within five (5) days after demand by Landlord.
Notwithstanding any contrary provisions contained in the last sentence of Section 4.3 of the
Original Lease, provided (a) no Event of Default then exists, and (b) no event has occurred which,
but for the passage of time or the giving of notice, would constitute an Event of Default

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under the Lease, Tenant shall have the right, upon delivery of written notice to Landlord on or
before the date which is thirty (30) days prior to the Extension Term Expiration Date, time being
of the essence, to purchase the Existing Furnishings (as such term is defined in Section 4.3 of
the Original Lease) and the Second Floor Storage Systems Furniture from Landlord for One Dollar
($1.00), whereupon Landlord and Tenant shall enter into a bill of sale evidencing such purchase.

     13. Parking.

          A. Notwithstanding any contrary provision contained in Section 3.2 of the Original
Lease (captioned, “Parking Facilities”) , throughout the Extension Term, Landlord shall
provide Tenant with the right to use, without additional charge, an additional five (5) reserved parking
spaces (the “Reserved Parking Spaces”) in a location selected by Landlord in its sole discretion on the
surface lot adjacent to the Building and/or in the parking facility serving the Building. Landlord shall
have no obligation to “police” the Reserved Parking Spaces in order to assure that automobiles parked
in such Reserved Parking Spaces belong to Tenant’s employees or guests only.

          B. Tenant agrees that it and its employees shall observe reasonable safety
precautions in the use of the parking garage, and shall at all times abide by all reasonable
rules and regulations promulgated by Landlord or the parking garage operator governing the use of the
parking garage. It is understood and agreed that Landlord does not assume any responsibility for any
damage or loss to any automobiles parked in the parking garage or to any personal property located
therein, or for any injury sustained by any person in or about the parking garage.

     14. Exterior Signage.

          A. Paragraph 1 of Rider No. 3 attached to the Original Lease is amended by
deleting the third (3rd) sentence thereof (which begins “The Exterior Sign shall
not exceed...”) and inserting in lieu thereof the following: “The Exterior Sign shall not exceed its size as of
March 1, 2005”.

          B. Exhibit R-3-A attached to the Original Lease is deleted in its entirety, and
Exhibit R-3-A attached hereto is substituted therefor as though initially attached to the
Original Lease.

     15. Landlord’s and Tenant’s Notice Addresses.

          A. Article 1 of the Original Lease is amended by deleting the names and addresses set
forth opposite “Tenant’s Address for Notices”, and inserting in lieu thereof the following:

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	“TENANT’S ADDRESS	 	 	 	 
	 

	 	FOR NOTICES:
	 	Covad Communications	 	 
	 

	 	 	 	Attn: Legal Department	 	 
	 

	 	 	 	110 Rio Robles	 	 
	 

	 	 	 	San Jose, California 95134”	 	 

          B. Article 1 of the Original Lease is amended by deleting the names and addresses set
forth opposite “Landlord’s Address for Notices”, and inserting in lieu thereof the following:

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	“LANDLORD’S ADDRESS	 	 	 	 
	 

	 	FOR NOTICES:
	 	ACP/2350 Corporate Park Drive, LLC	 	 
	 

	 	 	 	Attn: Chief Operating Officer	 	 
	 

	 	 	 	444 Brickell Avenue	 	 
	 

	 	 	 	Suite 900	 	 
	 

	 	 	 	Miami, Florida 33131	 	 

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	 	With copies to:	 	 
	 
	 	 	 	 
	 

	 	ACP/2350 Corporate Park Drive, LLC	 	 
	 

	 	c/o ACP Mid-Atlantic LLC, as Agent	 	 
	 

	 	Attn: Asset Manager	 	 
	 

	 	2350 Corporate Park Drive	 	 
	 

	 	Suite 110	 	 
	 

	 	Herndon, Virginia 20171	 	 
	 
	 	 	 	 
	 

	 	and to:	 	 
	 
	 	 	 	 
	 

	 	Holland & Knight LLP	 	 
	 

	 	2099 Pennsylvania Avenue, NW	 	 
	 

	 	Suite 100	 	 
	 

	 	Washington, DC 20006	 	 
	 

	 	Attn: David S. Kahn, Esq.”	 	 

     16. USA Patriot Act and Anti-Terrorism Laws. As of the Effective Date, the Original
Lease is hereby amended by adding the following language as new Article 28 thereof:

“ARTICLE 28

USA PATRIOT ACT AND ANTI-TERRORISM LAWS

(a) Tenant represents and warrants to, and covenants with, Landlord that neither
Tenant nor any of its respective constituent owners or affiliates currently are, or
shall be at any time during the Term hereof, in violation of any laws relating to terrorism or
money laundering (collectively, the “Anti-Terrorism Laws”), including without
limitation Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 and
relating to Blocking Property and Prohibiting Transactions With Persons Who Commit,
Threaten to Commit, or Support Terrorism (the “Executive Order”) and/or the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001 (Public Law 107-56) (the “USA Patriot Act”).

(b) Tenant covenants with Landlord that neither Tenant nor any of its respective
constituent owners or affiliates is or shall be during the Term hereof a “Prohibited
Person,” which is defined as follows: (i) a person or entity that is listed in the
Annex to, or is otherwise subject to, the provisions of the Executive Order; (ii) a person or
entity owned or controlled by, or acting for or on behalf of, any person or entity that is
listed in the Annex to, or is otherwise subject to the provisions of, the Executive Order; (iii)
a person or entity with whom Landlord is prohibited from dealing with or otherwise
engaging in any transaction by any Anti-Terrorism Law, including without limitation the
Executive Order and the USA Patriot Act; (iv) a person or entity who commits, threatens
or conspires to commit or support “terrorism” as defined in Section 3(d) of the
Executive Order; (v) a person or entity that is named as a“specially designated national and blocked
person” on the then-most current list published by the U.S. Treasury Department Office of Foreign Assets Control at its official website,
http://www.treas.gov/offices/eotffc/ofac/sdn/tllsdn.pdf, or at any replacement website or other replacement official publication of such list; and (vi) a person or entity who is
affiliated with a person or entity listed in items (i) through (v); above.

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(c) At any time and from time-to-time during the Term, Tenant shall deliver to
Landlord, within ten (10) days after receipt of a written request therefor, a
written certification reasonably acceptable to Landlord evidencing and confirming
Tenant’s compliance with this Article 28.”

     17. Deletion of Tenant’s Termination Right. As of the Effective Date, Paragraph 9.6 of
the Original Lease (captioned “Right to Terminate”) is deleted in its entirety, and it shall
be of no further force or effect.

     18. Guaranty. Simultaneously with Tenant’s execution and delivery to Landlord of this First Amendment, Covad Communications Group, Inc. (“Guarantor”) shall execute and deliver to
Landlord the Guaranty of Deed of Lease attached hereto as Exhibit C (the “Guaranty”).

     19. Low Voltage Cabling. All voice, data, video, audio, and other low-voltage control
transport system cabling and/or cable bundles installed in the Building shall be (a) plenum
rated and/or have a composition makeup suited for its environmental use in accordance with NFPA 70/National
Electrical Code; (b) labeled every 3 meters with the Tenant’s name and origination and
destination points; (c) installed in accordance with all EIA/TIA standards and the National Electric Code; (d)
installed and routed in accordance with a routing plan showing “as built” or “as installed” configurations
of cable pathways, outlet identification numbers, locations of all wall, ceiling and floor
penetrations, riser cable routing and conduit routing if applicable, and such other information as Landlord may request.
The routing plan shall be available to Landlord and its agents at the Building upon request.

     20. Brokers. Landlord and Tenant recognize ACP Mid-Atlantic LLC, as Landlord’s agent,
and Liberty-Greenfield, LLP and Scheer Partners, as Tenant’s agent, as the sole brokers (the
“Brokers”) with respect to this First Amendment. Landlord shall be responsible for the payment of any
leasing commission owed to the Brokers in accordance with the terms of separate commission agreements
entered into between Landlord and the Brokers. Landlord and Tenant each represent and warrant
to the other that no other broker has been employed in carrying on any negotiations relating to this
First Amendment and shall each indemnify and hold harmless the other from any claim for brokerage or
other commission arising from or out of any breach of the foregoing representation and warranty.

     21. Counterpart Copies. This First Amendment may be executed in two (2) or more
counterpart copies, all of which counterparts shall have the same force and effect as if all
parties hereto had executed a single copy of this First Amendment.

     22. Miscellaneous. This First Amendment (a) shall be binding upon and inure to the benefit
of the parties hereto and their respective representatives, transferees, successors and
assigns and (b) shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia.

     23. Ratification. Except as expressly amended by this First Amendment, all other terms,
conditions and provisions of the Lease are hereby ratified and confirmed and shall continue in
full force and effect.

[signatures on next page]

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     IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to Deed of Lease
under seal as of the day and year first hereinabove written.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	LANDLORD:	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	ACP/2300 CORPORATE PARK DRIVE, LLC, a	 	 	 	 
	 	 	 	 	Delaware limited
liability company	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	ACP/Woodland Park, LLC, a Delaware limited

liability company, its sole member	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	 	 	By:	 	ACP/Woodland Park Manager, LLC, a

Delaware limited liability company, its

manager
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/    

	 	 	 	 	 	 	 	By:
	 	/s/ Doug Fleit	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Name :  Doug Fleit	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Title:     Managing Member	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	TENANT:	 	 	 	 
	ATTEST:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	DIECA COMMUNICATIONS, INC., a Virginia
corporation	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	/s/    	 	 	 	By:	 	/s/ Charles E. Hoffman	 	 
	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name :  CHARLES E. HOFFMAN	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Title:	 	PRESIDENT & CEO	 	 	 	 	 	 	 	 

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EXHIBIT A

FLOOR PLAN OF FIRST FLOOR SPACE

[Attach]

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EXHIBIT A-l

FLOOR PLAN OF FOURTH FLOOR SPACE

[Attach]

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EXHIBIT B

INTENTIONALLY OMITTED

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EXHIBIT R-3-A

LOCATION OF EXTERIOR SIGNAGE

[Attach]

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EXHIBIT
R-3-A
LOCATION OF EXTERIOR SIGNAGE

 

 

EXHIBIT C

GUARANTY OF DEED OF LEASE

     THIS
GUARANTY OF DEED OF LEASE (this “Guaranty”) is made and given as of the ___ day of March,
2005, by COVAD COMMUNICATIONS GROUP, INC., a Delaware corporation (“Guarantor”), to and for the
benefit of ACP/2300 CORPORATE PARK DRIVE, LLC, a Delaware limited liability company, and its
successors and assigns (“Landlord”).

W I T N E S S E T H:

     WHEREAS, concurrently with the execution of this Guaranty, Landlord and Dieca Communications,
Inc. (“Tenant”) have entered into that certain First Amendment to Deed of Lease, of even date
herewith (the “First Amendment”), pursuant to which Landlord and Tenant have amended the terms of
that certain Deed of Lease, dated July 8, 2002 (the “Original Lease”) demising certain premises
(the “Premises”) in the building known as South Pointe II located at 2300 Corporate Park Drive,
Herndon, Virginia (the “Building”) (the Original Lease, as amended by the First Amendment, is
hereinafter referred to as the “Lease”); and

     WHEREAS, the Guarantor has a direct and/or indirect financial interest in Tenant; and

     WHEREAS, the parties recognize that the terms and conditions contained in the First Amendment
were agreed to by Landlord solely because the Guarantor has agreed to guarantee the performance of
the obligations of Tenant and its respective successors and assigns under the Lease, and such
guarantee was and is a material inducement to the execution and delivery of the First Amendment by
Landlord; and

     WHEREAS, the Guarantor warrants and acknowledges that because of its financial interest,
direct and/or indirect, in Tenant and in the benefits and advantages which will result from the
First Amendment, the Guarantor will be significantly benefited by the First Amendment.

     NOW, THEREFORE, in consideration of the foregoing and as an inducement for the granting,
execution and delivery of the Lease, the sum of Ten Dollars ($10.00), and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the Guarantor hereby
unconditionally and irrevocably guarantees, promises and agrees as follows:

     1. The above recitals are by this reference incorporated herein as if fully restated herein.

     2. The Guarantor hereby guarantees to Landlord, absolutely, unconditionally
and irrevocably: (a) the full and prompt payment of all sums which may at any time become due
under the Lease, including, but not limited to, monthly rent, additional rent, and all other sums
and charges (including without limitation Landlord’s attorneys’ fees and disbursements)
(hereinafter sometimes collectively referred to as the “Monetary Obligations”) which Tenant is
obligated to pay to or on behalf of Landlord or to pay to third parties under the provisions of the
Lease, and (b) the full and timely performance and observance of all of the covenants, terms,
conditions and agreements provided in the Lease to be performed and observed by Tenant (hereinafter
sometimes collectively referred to as the “Non-Monetary
Obligations”). The Guarantor hereby
covenants and agrees to and with Landlord that if at any time Tenant shall fail to make payment
when due of any of the Monetary Obligations, or if at any time Tenant shall fail to perform and
observe when and as required any of the Non-Monetary Obligations, the Guarantor shall forthwith pay
the Monetary Obligations to Landlord and any arrears thereof, and shall

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forthwith faithfully and punctually perform and fulfill all of the Non-Monetary Obligations and,
in addition thereto, shall forthwith pay to Landlord all reasonable attorneys’ fees and
disbursements incurred by Landlord or caused by any such default or the enforcement of this
Guaranty.

     3. This Guaranty is an absolute and unconditional guaranty of payment (and not merely of
collection) and of performance. The liabilities of the Guarantor are primary, irrevocable and
co-extensive with that of Tenant and also joint and several, and this Guaranty shall be
enforceable against the Guarantor without the necessity of any suit or proceeding on Landlord’s
part of any kind or nature whatsoever against Tenant and without the necessity of any notice of
non-payment, non-performance or non-observance or of any notice of acceptance of this Guaranty or
of any other notice or demand to which the Guarantor might otherwise be entitled, all of which the
Guarantor hereby expressly waives. The Guarantor hereby expressly agrees that the validity of this
Guaranty and the obligations of the Guarantor hereunder shall in no way be terminated, affected,
diminished or impaired by reason of (a) the assertion of, or the failure to assert by Landlord,
against Tenant any of the rights or remedies reserved to Landlord pursuant to the terms, covenants
and conditions of the Lease, or (b) any non-liability of Tenant under the Lease, whether by
insolvency, discharge in bankruptcy, or any other defect or defense which may now or hereafter
exist in favor of Tenant.

     4. This Guaranty guarantees the performance of all of the obligations of Tenant, its
successors and assigns, under the Lease.

     5. This Guaranty shall be a continuing guaranty, and it is expressly agreed that the liability
of the Guarantor hereunder shall in no way be affected, modified or diminished by reason of (a)
any sublease of all or any portion of the Premises or assignment, renewal, modification, amendment,
extension or waiver of the Lease or any of the terms, covenants and conditions thereof, even if the
effect of such sublease, assignment, renewal, modification, amendment, extension or waiver shall be
to increase the obligations of the Guarantor hereunder, or (b) any extension of time that may be
granted by Landlord to Tenant, or (c) any consent, release, indulgence or other action, inaction or
omission under or in respect of the Lease, or (d) any dealings or transactions or matter or thing
occurring between Landlord and Tenant relating to the Building or the Lease, or (e) any bankruptcy,
insolvency, reorganization, liquidation, arrangement, assignment for the benefit of creditors,
receivership, trusteeship or similar proceeding affecting Tenant, or (f) any obligation of
Tenant under the Lease having become unenforceable as against Tenant, whether or not notice of any
of the aforesaid (a) through (f) is given to the Guarantor.

     6. Should Landlord be obligated by any bankruptcy or other law to repay to Tenant or to the
Guarantor or to any trustee, receiver or other representative of any of them, any amounts
previously paid, this Guaranty shall be reinstated in the amount of such repayments. Landlord
shall not be required to litigate or otherwise dispute its obligations to make such repayments if
it in good faith believes that such obligation exists.

     7. No delay on the part of Landlord in exercising any right, power or privilege under this
Guaranty or failure to exercise the same shall operate as a waiver of or otherwise affect any such
right, power or privilege, nor shall any single or partial exercise thereof preclude any other or
further exercise thereof or the exercise of any other right, power or
privilege.

     8. No waiver or modification of any provision of this Guaranty nor any termination of this
Guaranty shall be effective unless in writing and signed by Landlord; nor shall any such waiver be
applicable except in the specific instance for which it is given.

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     9. All of Landlord’s rights and remedies under the Lease and under this Guaranty, now or
hereafter existing at law or in equity or by statute or otherwise, are intended to be distinct,
separate and cumulative and no exercise or partial exercise of any such right or remedy therein or
herein mentioned is intended to be in exclusion of or a waiver of any of the others.

     10. The Guarantor agrees that whenever at any time or from time to time the Guarantor shall
make any payment to Landlord or perform or fulfill any term, covenant or condition hereunder on
account of the liability of the Guarantor, hereunder, the Guarantor will notify Landlord in writing
that such payment or performance, as the case may be, is for such purpose. No such payment or
performance by the Guarantor pursuant to any provision hereof or otherwise shall entitle the
Guarantor, by subrogation or otherwise, to the rights of Landlord to any payment by Tenant, or out
of the property of Tenant, except after payment of all sums and fulfillment of all covenants,
terms, conditions or agreements to be paid or performed by Tenant and its successors or assigns
under the Lease.

     11. The Guarantor agrees that it will, at any time and from time to time, within ten (10) days
following written request by Landlord, execute, acknowledge and deliver to Landlord a statement
certifying that this Guaranty is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as modified and stating such
modification). The Guarantor agrees that such certificate may be relied on by anyone holding or
proposing to acquire any interest in the Premises or the Building of which the Premises is a part
from or through Landlord or by the holder of any mortgage or prospective holder of any mortgage or
of any interest therein.

     12. As a further inducement to Landlord to make and enter into the Lease and in
consideration thereof, Landlord and the Guarantor covenant and agree that in any action or
proceeding brought on, under or by virtue of this Guaranty., Landlord and the Guarantor shall and
do hereby waive trial by jury.

     13. This Guaranty may be enforced by Landlord without the necessity of its signature appearing
hereon.

     14. All notices and other communications permitted or required by the provisions of this
Guaranty shall be in writing and shall be deemed given either (a) three (3) business days after
being mailed through the United States Postal Service, designated as registered or certified mail,
return receipt requested, bearing adequate postage and addressed as hereinafter provided, or (b)
when delivered by hand or by means of a nationally-recognized commercial delivery service (such as
FedEx) which obtains a signed receipt to confirm delivery. Rejection or refusal to accept or
inability to deliver because of change of address of which no notice was given as provided herein
shall be deemed to be receipt of the notice or other communication sent. By giving to the other
party hereto at least ten (10) days’ notice thereof, any party hereto shall have the right from
time to time to change its address for purposes of this Guaranty to any other address. Each notice
or other communication to Guarantor or Landlord shall be addressed, until such notice of change of
address, as follows:

	 	 	 
	If to Guarantor:

	 	Covad Communications Group, Inc.
	 
	 	110 Rio Robles
	 
	 	San Jose, California 95134
	 
	 	Attention: Legal Department
	 
	 	 
	If
to Landlord:

	 	ACP/2350 Corporate Park Drive, LLC
	 
	 	444 Brickell Avenue, Suite 900
	 
	 	Miami, Florida 33131
	 
	 	Attention: Chief Operating Officer

HOLLAND & KNIGHT llp

Exhibit C, Page 3

 

 

	 	 	 
	and to:

	 	ACP/2350 Corporate Park Drive, LLC
	 

	 	c/o ACP Mid-Atlantic LLC, as Agent
	 

	 	2350 Corporate Park Drive, Suite 110
	 

	 	Herndon, Virginia 20171
	 

	 	Attention: Asset Manager
	 
	 	 
	with a copy to:

	 	Holland & Knight LLP
	 

	 	2099 Pennsylvania Avenue, NW
	 

	 	Suite 100
	 

	 	Washington, DC 20006
	 

	 	Attention: David S. Kahn, Esquire

     16. If
any provision of this Guaranty shall be declared to be unenforceable in whole or
in part by a court of competent jurisdiction, that part of the Guaranty found to be
unenforceable shall be deemed stricken and severed and the remaining provisions and portions
shall continue in fall force and effect.

     17. The Guarantor agrees that this Guaranty shall inure to the benefit of, and may be
enforced by, Landlord and its successors and assigns, and shall be binding upon and
enforceable against the Guarantor, and its heirs, successors and assigns.

     18. This Guaranty, the rights and obligations of the parties hereto, and any claims or
disputes relating thereto, shall be governed by and construed in accordance with the laws of
Commonwealth of Virginia.

     IN WITNESS WHEREOF, Guarantor has executed this Guaranty of Deed of Lease under seal
on the
                     day of March, 2005.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Guarantor:	 	 
	 
	 	 	 	 	 	 	 	 
	WITNESS:	 	 	 	COVAD COMMUNICATIONS GROUP, INC.,

a Delaware corporation	 	 
	 
	 	 	 	 	 	 	 	 
	/s/

	 	 	 	By
	 	/s/ Charles E. Hoffman	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: CHARLES E. HOFFMAN	 	 
	 

	 	 	 	 	 	Title:   PRESIDENT & CEO	 	 

HOLLAND
& KNIGHT llp

Exhibit C, Page 4exv10w1

Exhibit 10.1

EMPLOYMENT AGREEMENT

     AGREEMENT, dated as of October 1, 1997, previously restated as of February 26, 2003, and
hereby further restated to be effective as of August 1, 2008, by and between M.D.C. Holdings, Inc.
(the “Company”), and Larry A. Mizel (the “Executive”).

     WHEREAS, the Executive has served the Company in various capacities for over thirty-five
years;

     WHEREAS, the Company desires to assure itself of the services of the Executive for the period
provided in this Agreement; and

     WHEREAS, the Executive is willing to serve in the employ of the Company for such period upon
the terms and conditions hereinafter provided;

     NOW, THEREFORE, in consideration of Executive’s past, present and future performance of
services for the Company and in consideration of the mutual promises and agreements hereinafter set
forth, the Company and the Executive agree as follows:

     1. Employment and Duties. The Company shall employ the Executive, and the Executive
shall be employed by the Company, as Chairman of the Board and Chief Executive Officer, at the
Company’s headquarters in Denver, Colorado (or such other location as the Executive and Company
may agree) for the term of this Agreement. In this capacity, the Executive shall perform such
services, consistent with his office, as from time to time shall be assigned to him by the Board
of Directors of the Company, devoting such time and effort to manage, operate and direct the
activities of the Company and perform all of the functions of the offices held by him, as directed
by the Board of Directors from time-to-time; provided however that the Executive may also engage
in other activities (subject to Section 6(b) below) consistent with his prior practices while
employed by the Company so long as such activities do not adversely affect the performance by the
Executive of his duties and responsibilities hereunder.

     2. Term. The term of the Executive’s employment hereunder shall begin on August 1,
2008 and shall continue through December 31, 2010 (the “Initial Term”); provided, however, that
the term of employment shall be automatically extended beyond the Initial Term for successive
two-year periods (each, an “Additional Term”) unless the Company or the Executive shall give
written notice to the other party hereto of its or his intent to terminate this Agreement at the
end of the then current Term, such notice to be given at least six months prior to the expiration
of the Initial Term or any extension thereof (the Initial Term and any and all Additional Terms
are hereinafter collectively referred to as the “Employment Term”).

     3. Compensation and Benefits.

          (a) Base Salary. During each calendar year of the Employment Term, the Company shall
pay the Executive a base salary at a rate of not less than $1,000,000 per year (the “Base Salary”),
payable in substantially equal semi-monthly installments. Not less frequently than annually,
Executive will be eligible for periodic increases in Base Salary under the Company’s normal
policies and procedures for executive salary increases which currently

 

 

provide for annual reviews of executive salaries. Executive’s Base Salary for any year may
not be reduced below the Executive’s Base Salary for the prior year without the consent of both
Executive and the Company.

          (b) Annual Incentive Compensation. For calendar year 2008 and the remainder of the
Employment Term, Executive will continue to participate in the Company’s Executive Officer
Performance Based Compensation Plan as it may be amended, and any successor or supplementary
incentive compensation plans established by the Company (the “Performance Plans”) and shall be
entitled to incentive payments as provided thereunder and as otherwise provided by the Company.
The payments the Executive is entitled to receive under the Performance Plans and this Section 3(b)
shall be referred to herein as the “Annual Incentive Compensation” for the year to which they are
attributable, regardless of the year in which they are paid.

          (c) Long-Term Incentive Compensation. The Executive shall continue to participate in
the Company’s Employee Equity Incentive Plan, as it may be amended, and any successor or
supplementary compensation and incentive plans or programs established by the Company (the “Equity
Plans”).

          (d) Retirement Benefit. The Company shall pay the Executive a retirement benefit
(“Retirement Benefit”) as hereinafter defined in consideration of the Executive’s past, present and
future services to the Company. The present Retirement Benefit in which the Executive is vested as
of the date of this Agreement is a benefit for life equal to $700,000 per year. Upon completion of
service at the conclusion of the Initial Term, the Retirement Benefit shall be increased to a
benefit for life equal to $1,000,000 per year, and the amount of the annual benefit for life shall
be increased with the completion of each succeeding Additional Term by $333,333.33 up to an
aggregate amount of annual lifetime benefit not to exceed $2,000,000 per year. Except as otherwise
expressly provided in Section 4, the Retirement Benefit shall be paid in equal monthly installments
commencing on the first day of the month following the Executive’s retirement from the Company (the
“Commencement Date”) and shall continue for the duration of Executive’s lifetime. Retirement shall
occur at the time the Executive has a separation from service with the Company consistent with the
provisions for separation from service contained in Treas. Reg. § 1.409A-1(h). Notwithstanding the
preceding or any other provision of this Agreement to the contrary, the Retirement Benefit shall be
$2,000,000 per year in the event the Executive’s employment is terminated prior to the expiration
of the Initial Term or each Additional Term pursuant to (1) the Executive’s death (in which event
the provisions of Section 4(a)(ii) regarding payment to a Beneficiary shall apply) or his becoming
Totally Disabled in accordance with Section 4(a), (2) a termination by the Company without Cause in
accordance with Section 4(c) or (3) the Executive’s election to terminate his employment in
accordance with Section 4(d), provided that such termination results in a separation from service
with the Company consistent with the provisions for separation from service contained in Treas.
Reg. § 1.409A-1(h).

          (e) Medical Insurance Benefits. During the Employment Term and for the duration of
Executive’s lifetime after the Commencement Date, the Company shall pay for and make available
medical insurance coverage for Executive for the duration of Executive’s life. The medical
insurance coverage shall provide coverage and benefits that are at least comparable

2

 

to that provided to the Executive at the time of execution of this Agreement. In addition
such medical insurance shall provide comparable coverage for the Executive’s spouse for the
duration of Executive’s life and if she survives him for an additional sixty months after
Executive’s death.

          (f) Expense Reimbursement. The Company promptly shall pay, or reimburse the Executive
for, all ordinary and necessary business expenses incurred by him in the performance of his duties
hereunder including, but not limited to, expenses and dues associated with Executive’s involvement
with professional, industry, community, civic and charitable organizations, provided that the
Executive properly accounts for all such expenses in accordance with Company policy.

          (g) Other Benefits Plans, Fringe Benefits and Vacations. The Executive shall be
eligible to participate in each of the Company’s present employee benefit plans, policies or
arrangements and any such plans, policies or arrangements that the Company may maintain or
establish during the Employment Term and receive all fringe benefits and vacations for which his
position makes him eligible in accordance with the Company’s policies and the terms and provisions
of such plans, policies or arrangements including, but not limited to, the following:

               (i) The Company shall provide to the Executive (whether through insurance or otherwise)
long-term disability benefits in an amount such that the after-tax amount per year received by the
Executive shall be equal to the after-tax amount of the Executive’s Base Salary in effect for the
year in which the Executive becomes disabled. Such disability benefit shall be payable monthly,
until the earlier of (1) the end of the Executive’s disability prior to his becoming Totally
Disabled or (2) the Commencement Date of the Executive’s Retirement Benefit.

               (ii) The Company shall, to the fullest extent permitted by Section 145 of the General
Corporation Law of the State of Delaware, as the same may be amended and supplemented, or by any
successor thereto, indemnify the Executive from and against any and all of the expenses,
liabilities or other matters referred to in or covered by said Section. The Company shall advance
expenses to the fullest extent permitted by said Section. The Company shall cover the Executive
under such insurance policies as the Company may procure for executive liability and
indemnification insurance, to the same extent and providing limits of liability, deductibles and
exclusions as may be provided for the Company’s Senior Executive Officers and outside directors.
(For purposes of this Agreement, the “Senior Executive Officers” of the Company shall be the four
officers of the Company having the highest annual base salaries.) These covenants shall survive
termination of this Agreement for any reason for a period of five years from the date of such
termination.

               (iii) Each calendar year during the Employment Term, but without carryover from year to year
(regardless of the Company’s general vacation policy), the Executive shall be entitled to vacation
of not less than six weeks. The Executive hereby waives any right to vacation days accrued by the
Executive prior to January 1, 2000, and agrees that, in lieu thereof, Executive will receive
payment in the amount of $418,846 no later than December 31, 2008. This amount shall be subject to
appropriate withholding taxes.

3

 

               The Company shall not terminate or change, in such a way as to affect adversely the
Executive’s rights or reduce his benefits under any Company benefit plan, policy or arrangement now
in effect or which may hereafter be established and in which the Executive is eligible to
participate, including, without limitation, the Executive Officer Performance Based Compensation
Plan, the Company’s Equity Plans, the Retirement Benefit, life insurance, medical and disability
plans.

     4. Termination.

          (a) Death and Disability.

               (i) The Executive’s employment hereunder and the Employment Term shall terminate upon his
death or upon his becoming Totally Disabled. For purposes of this Agreement, the Executive shall
be “Totally Disabled” if he is physically or mentally incapacitated so as to render him incapable
of performing his usual and customary duties as an executive for a period expected to last not less
than 12 consecutive months during which he receives income replacement benefits from an
employer-provided health and accident plan for at least twelve months. The Executive’s receipt of
Social Security disability benefits shall be deemed conclusive evidence of Total Disability for
purposes of this Agreement; provided, however, that in the absence of his receipt of such Social
Security benefits, the Board of Directors of the Company may, in its reasonable discretion, but
based upon appropriate medical evidence, determine that the Executive is Totally Disabled as
provided in Treas. Reg. § 1.409A-3(i)(4).

               (ii) In the event of the Executive’s death (while Totally Disabled or otherwise) after his
Retirement Benefit has commenced to be paid, the Company shall continue to pay such Retirement
Benefit to his Beneficiary until five years after such commencement. If the Executive’s Retirement
Benefit pursuant to Section 3(d) hereof has not commenced to be paid on the date of his death, such
benefit shall commence to be paid to his Beneficiary on the first day of the month next following
his date of death, as if such payments had commenced at his Commencement Date and shall continue
for five years after his date of death. For purposes of this Agreement, the Executive’s
“Beneficiary” shall be deemed to be his spouse; if his spouse predeceases him (or if he is not
married at the time of his death), his Beneficiary shall be deemed to be his estate.

               (iii) If Executive dies or becomes Totally Disabled during the Employment Term, the Executive
or his estate, as the case may be, shall be entitled to receive all benefits earned under the
Performance Plans and Equity Plans as and for so long as provided in such plans.

          (b) For Cause. The Executive’s employment hereunder may be terminated for Cause. For
purposes of this Agreement, the term “Cause” shall mean: (i) the Executive’s willful refusal to
perform material duties reasonably required or requested of him hereunder (other than as a result
of total or partial incapacity due to physical or mental illness) by the Board of Directors for 30
days after having received written notice of such refusal from the Board of Directors and having
failed to commence to perform such duties within such period, (ii) the Executive’s commission of
material acts of fraud, dishonesty or misrepresentation in the

4

 

performance of his duties hereunder, (iii) any final, non-appealable conviction of Executive
for an act or acts on the Executive’s part constituting a felony under the laws of the United
States or any state thereof which results or was intended to result directly or indirectly in gain
or personal enrichment by Executive at the expense of the Company, or (iv) any material uncured
breach of the provisions of Sections 6(a) and 6(b) hereof which continues for 30 days after the
Executive has received written notice of such breach. If the Executive’s employment is terminated
for Cause, Executive shall be entitled only to the amount of his Base Salary earned through the
date of termination, and shall not be entitled to any other amounts or benefits hereunder,
including, but not limited to, his Retirement Benefit, incentive compensation, or medical
insurance.

          (c) Without Cause. If the Executive’s employment hereunder is terminated without
Cause (which shall include, without limitation, the Company’s election not to renew this Agreement
pursuant to Section 2 hereof, the Company’s termination of the Performance Plans or the Company’s
amendment of the Performance Plans to provide for payments to Executive in any calendar year which
are less than the amount calculated in accordance with Article III of the Performance Plans, as the
same may be amended from time to time) as soon as practicable (but not later than 30 days) after
such termination, but in no event (other than for specified employee restrictions provided for
below) later than two and one-half months after the end of the calendar year during which the
Executive’s employment is terminated without Cause, he shall receive a lump sum cash payment equal
to the sum of: (i) an amount equal to the aggregate Base Salary earned by him during the three
years prior to such termination; and (ii) a cash amount equal to three hundred percent (300%) of
the Annual Incentive Compensation (including any stock awards under the Performance Plans valued
pursuant to the terms of the plans) which the Executive was paid pursuant to Section 3(b) hereof
for the year prior to that in which such termination occurs. In addition, the Company shall pay
Executive the Retirement Benefit payable in accordance with Section 3(d) in the amount of
$2,000,000 per year, commencing on the date of termination and the vesting of all options, dividend
equivalents and other rights granted to Executive under the Equity Incentive Plans and any other
Company plans shall be accelerated so as to permit Executive fully to exercise all outstanding
options and rights, if any, granted to Executive during the Employment Term pursuant to such plans.
The Company shall also provide Executive and his spouse the medical insurance benefits described
in Section 3(e).

          (d) Change in Control; Material Change.

               (i) If a Change in Control Event (as defined in Appendix A hereto) occurs, all options,
dividend equivalents and other rights granted to Executive under the Equity Incentive Plans and any
other Company plans shall be accelerated and shall become exercisable immediately prior to the
occurrence of the transaction giving rise to the Change in Control Event at Executive’s election,
so as to permit Executive fully to exercise all outstanding options and rights. In the event that
such transaction fails to be consummated, Executive’s election pursuant hereto shall be of no
effect and Executive’s options shall remain subject to the restrictions to which they were
originally subject.

               (ii) If a Change in Control Event or a Material Change (as defined in Appendix A hereto)
occurs, the Executive shall, if he so elects by written notice to the Company within two years
after a Change in Control Event or within thirty days of a Material Change that is not corrected
following notice, be entitled to terminate his employment, if not already

5

 

terminated by the Company. In the event of the Executive’s election hereunder to terminate
his employment due to a Change in Control Event, then the Executive shall receive the amounts set
forth in Section 4(c) above, and the Executive shall be entitled to the accelerated vesting of all
options and rights as provided in paragraph 4(d)(i) above and, at Executive’s election, in the
event the Change in Control Event involves a two-tier tender offer, the Company will pay Executive
the difference between the exercise price of the otherwise unvested options and the price offered
in the first tier, or adjust the option terms to provide Executive with an equivalent value. In
the event of the Executive’s election to terminate his employment due to a Material Change, or a
termination of employment by the Company without Cause upon or within two years following a Change
in Control Event, the Executive shall receive the amounts set forth in Section 4(c)(i) and (ii)
above. In the event of the Executive’s election to terminate his employment due to a Change in
Control, a Material Change or termination of employment by the company without cause, the Executive
shall receive, with respect to the Retirement Benefit, and the Company shall pay to the Executive,
in a lump sum cash payment, an amount equal to the actuarial present value (determined on the basis
of the applicable mortality table and applicable interest rate as specified in Section 417(e)(3) of
the Internal Revenue Code as of the effective date of the Executive’s termination date) of the
Retirement Benefit payments payable to the Executive under Section 3(d), commencing on his
termination date, and any such lump sum cash payment to the Executive shall be in complete
discharge of the Company’s obligation with respect to the Executive’s Retirement Benefit.

               (iii) Notwithstanding anything to the contrary herein, if the aggregate amounts payable
pursuant to subparagraph (ii) of this paragraph (d), either alone or together with any other
payments which the Executive has the right to receive either directly or indirectly from the
Company or any of its affiliates, would be subject to an excise tax as an “excess parachute
payment” under Section 4999 of the Internal Revenue Code, the Executive hereby agrees that such
aggregate amounts payable hereunder shall be paid in annual installments over the shortest period
of time over which such aggregate amounts may be paid and not be treated as “excess parachute
payments” under Section 4999. All determinations called for in this subparagraph (iii) shall be
made by Ernst & Young LLP or such other independent public accounting firm with a national
reputation as shall be selected by the Company. The Company shall bear all costs associated with
obtaining such determinations.

     5. Specified Employee Status. Executive is likely to be a specified employee (as
defined in Treas. Reg. §1.409A—1(i)) as of the date of a separation from service.
Notwithstanding anything contained herein to the contrary, all payments hereunder that are
subject to the restrictions contained in Section 409A of the Internal Revenue Code and are to be
made due to a separation from service or Change in Control may not be made before the date that is
six months after the date of separation from service (or, if earlier than the end of the six-month
period, the date of the Executive’ death). For this purpose, if the Executive is not a specified
employee as of the date of a separation from service, he will not be treated as subject to this
requirement even if he would have become a specified employee had he continued to provide services
through the next specified employee effective date. Similarly, if the Executive is treated as a
specified employee as of the date of a separation from service, he will be subject to this
requirement even if he would not have been treated as a specified employee after the next
specified employee effective date had he continued providing services through the next specified
employee effective date.

6

 

     6. Covenants.

          (a) Confidentiality. The Executive agrees that, during or at any time after the
Employment Term, he shall not divulge, furnish or make accessible to any person, corporation,
partnership, trust or other organization or entity, any information, trade secrets, technical data
or know-how relating to the business, business practices, methods, attorney-client communications,
pending or contemplated acquisitions or other transactions, products, processes, equipment or any
confidential or secret aspect of the business of the Company without the prior written consent of
the Company, unless such information shall have become public knowledge or shall have become known
generally to competitors of the Company through sources other than the Executive.

          (b) Competitive Activity. Until the end of the Employment Term, and for a
period of eighteen months beginning on (1) the last day of the Employment Term or (2) a termination
of the Executive’s employment by the Company for Cause, the Executive shall not, without the
written consent of the Board of Directors of the Company, directly or indirectly, knowingly engage
or be interested in (as owner, partner, shareholder, employee, director, officer, agent, consultant
or otherwise), with or without compensation, any business whose principal activities are in
competition with the most important business activities engaged in or contemplated by the Company
during the Employment Term and such eighteen month period. The most important business activities
presently engaged in or contemplated by the Company include:

	 	•	 	the acquisition and development of residential real estate for owner occupied single
family detached housing;
	 
	 	•	 	construction of single family detached homes;
	 
	 	•	 	mortgage lending to purchasers of single family homes sold by the Company; and
	 
	 	•	 	the sale of insurance products to purchasers or owners of single-family homes sold by
the Company.

A decision by the Company to enter a market in which the Executive has a pre-existing interest does
not constitute competitive activity if, after the Company enters that market, the nature and extent
of the Executive’s interest does not substantially change to the detriment of the Company and the
Executive has provided the Company with written notice of the existence of the interest.
Nothing herein, however, shall prohibit the Executive from acquiring or holding not more than
ten percent (10%) of any class of publicly-traded securities of any such business.

          (c) Remedy for Breach. The Executive acknowledges that the provisions of this Section
6 are reasonable and necessary for the protection of the Company and that the Company will be
irrevocably damaged if such covenants are not specifically enforced. Accordingly, the Executive
agrees that, in addition to any other relief to which the Company may be entitled, the Company
shall be entitled to seek and obtain injunctive relief (without the requirement of any bond) from a
court of competent jurisdiction for the purposes of restraining the Executive from any actual or
threatened breach of such covenants.

7

 

     7. Miscellaneous.

          (a) Governing Law. This Agreement shall be governed by and construed in accordance
with the laws of the State of Delaware applicable to agreements made and to be performed in that
State.

          (b) Notices. Any notice, consent or other communication made or given in connection
with this Agreement shall be in writing and shall be deemed to have been duly given when delivered
by United States registered or certified mail, return receipt requested, to the parties at the
following addresses or at such other address as a party may specify by notice to the other.

To the Executive:

Larry A. Mizel

c/o M.D.C. Holdings, Inc.

4350 South Monaco Street

Suite 500

Denver, CO 80237

To the Company:

M.D.C. Holdings, Inc.

4350 South Monaco Street

Suite 500

Denver, CO 80237

Attention: Michael Touff, General Counsel

          (c) Entire Agreement; Construction; Amendment. This Agreement shall supersede any and
all existing agreements between the Executive and the Company or any of its affiliates or
subsidiaries relating to the terms of his employment. The parties acknowledge that options have
been granted to the Executive under the Equity Plans. Accordingly, to the extent the provisions of
this Agreement may conflict with the Equity Plans, the Equity Plans shall control. To the extent
the provisions of this Agreement may conflict with provisions in any option agreement or option
certificate between the Executive and the Company, the provisions of this Agreement shall control.
This Agreement may not be amended except by a written agreement signed by both parties.

          (d) Waiver. The failure of a party to insist upon strict adherence to any term of
this Agreement on any occasion shall not be considered a waiver thereof or deprive that party of
the right thereafter to insist upon strict adherence to that term or any other term of this
Agreement.

          (e) Assignment. Except as otherwise provided in this paragraph, this Agreement shall
inure to the benefit of and be binding upon the parties hereto and their respective heirs,
representatives, successors and assigns. This Agreement shall not be assignable

8

 

by the Executive, and shall be assignable by the Company only to any corporation or other
entity resulting from the reorganization, merger or consolidation of the Company with any other
corporation or entity or any corporation or entity to which the Company may sell all or
substantially all of its assets, and it must be so assigned by the Company to, and accepted as
binding upon it, by such other corporation or entity in connection with any such reorganization,
merger, consolidation or sale.

          (f) Litigation Costs. In the event that the Executive shall successfully prosecute a
proceeding to enforce any provision of this Agreement, in addition to any other relief awarded the
Executive in such action, the parties agree that the decision rendered shall award the Executive
all of his attorneys’ fees, disbursements and other costs incurred by the Executive in prosecuting
such case.

          (g) Severability. If any provision of this Agreement is invalid or unenforceable, the
balance of the Agreement shall remain in effect, and if any provision is inapplicable to any person
or circumstance, it shall nevertheless remain applicable to all other persons and circumstances.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement, including Appendix A
hereto, as evidence of their adoption as of the dates set forth above.

	 	 	 	 	 	 	 
	 	 	M.D.C. HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Christopher M. Anderson
 

Christopher M. Anderson
	 	 
	 

	 	Title:
	 	Senior Vice President and
Chief Financial Officer	 	 
	 

	 	Date:
	 	September 26, 2008	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Larry A. Mizel	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Larry A. Mizel	 	 
	 

	 	Date:
	 	September 26, 2008	 	 

9

 

APPENDIX A

          This Appendix A is attached to and shall form a part of the Employment Agreement (the
“Agreement”), dated as of October 1, 1997, previously restated as of February 26, 2003, and hereby
further restated as of August 1, 2008, by and between M.D.C. HOLDINGS, INC. (the “Company”), and
LARRY A. MIZEL (the “Executive”).

          (a) For purposes of the Agreement, a “Change in Control Event” shall occur if:

               (i) a report on Schedule 13D is filed with the Securities and Exchange Commission pursuant to
Section 13(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) disclosing that any
person (within the meaning of Section 13(d) of the Exchange Act), other than the Company (or one of
its subsidiaries) or any employee benefit plan sponsored by the Company (or one of its
subsidiaries), or any director of the Company as of the date of the Agreement or affiliate of such
director, is the beneficial owner, directly or indirectly, of twenty percent (20%) or more of the
combined voting power of the then-outstanding securities of the Company;

               (ii) any person (within the meaning of Section 13(d) of the Exchange Act), other than the
Company (or one of its subsidiaries) or any employee benefit plan sponsored by the Company (or one
of its subsidiaries), or any director of the Company as of the date of the Agreement or affiliate
of such director, shall purchase securities pursuant to a tender offer or exchange offer to acquire
any common stock of the Company (or securities convertible into common stock) for cash, securities
or any other consideration, provided that after consummation of the offer, the person in question
is the beneficial owner (as such term is defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of twenty percent (20%) or more of the combined voting power of the then outstanding
securities of the Company (as determined under paragraph (d) of Rule 13d-3 under the Exchange Act,
in the case of rights to acquire common stock);

               (iii) the stockholders of the Company shall approve: (A) any consolidation or merger of the
Company (1) in which the Company is not the continuing or surviving corporation; or (2) pursuant to
which shares of common stock of the Company would be converted into cash, securities or other
property; or: (B) any sale, lease, exchange or other transfer (in one transaction or a series of
related transactions) of all or substantially all the assets of the Company; or

               (iv) there shall have been a change in a majority of the members of the Board of Directors of
the Company within a twelve month period, unless the election or nomination for election by the
Company’s stockholders of each new director during such twelve month period was approved by the
vote of two-thirds of the directors then still in office who were directors at the beginning of
such twelve month period.

          (b) For purposes of the Agreement, a “Material Change” shall occur if:

               (i) the Company makes any change in the Executive’s functions, duties or responsibilities from
the positions that the Executive occupied on August 1, 2008 or, if

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the Agreement is renewed or extended, the date of the last renewal or extension, but only if
such change would cause:

                    (A) the Executive to report to anyone other than the Board of Directors of the Company,

                    (B) the Executive to no longer be the Chairman of the Board and Chief Executive Officer of the
Company or its successor,

                    (C) even if the Executive maintains the positions of Chairman of the Board and Chief Executive
Officer, his responsibilities to be reduced (without his written permission) from those in effect
on August 1, 2008 or the date of the last renewal or extension of the Agreement, as applicable, or

                    (D) the Executive’s position with the Company to become one of lesser importance or scope;

                    (E) the Company’s termination of the Performance Plans or the Company’s amendment of the
Performance Plans to provide for payments to Executive in any calendar year which are less than the
amount calculated in accordance with Article III of the Performance Plans.

               (ii) the Company assigns or reassigns the Executive to another place of employment at least
fifty miles from his residence;

               (iii) the Company reduces the Executive’s Base Salary, annual or long-term incentive
compensation or the manner in which such compensation is determined, or retirement benefits, or the
Company breaches the terms of the Agreement; or

               (iv) a purchaser of all or substantially all of the Company’s assets or any successor or
assignee of the Company fails to assume the Agreement.

It is intended that each of the foregoing conditions will be applied consistently with the
requirements of the regulations under Section 409A of the Internal Revenue Code.

	 	 	 	 	 	 	 
	 	 	M.D.C. HOLDINGS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Christopher M. Anderson
 

Christopher M. Anderson
	 	 
	 

	 	Title:
	 	Senior Vice President
and Chief Financial Officer	 	 
	 

	 	Date:
	 	September 26, 2008	 	 

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	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	/s/ Larry A. Mizel	 	 
	 	 	 	 	 
	 

	 	Name:
	 	Larry A. Mizel	 	 
	 

	 	Date:
	 	September 26, 2008	 	 

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