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EXHIBIT 10.8    
    

LEASE AGREEMENT  

 by and between  

 FARRAGUT CENTER LLC

("Landlord")  

 and  

 LECG, LLC

("Tenant")  

 December 27, 2000  

 Property:  

 1725 Eye Street, N.W.

Washington, D.C.  

 
 

TABLE OF CONTENTS    
    

	Paragraph
 
	 	Page

	1.	 	Definitions	 	1
	2.	 	Demised Premises	 	9
	3.	 	Term	 	10
	 	 	3.1	 	Initial Term	 	10
	 	 	3.2	 	Adjustment of Lease Commencement Date	 	10
	 	 	3.3	 	Declaration	 	11
	 	 	3.4	 	Effective Date	 	12
	4.	 	Rent; Monthly Base Rent	 	12
	5.	 	Cost-of-Living Adjustment [Intentionally omitted.]	 	12
	6.	 	Increases in Operating Expenses, Char Service Costs and Real Estate Taxes	 	12
	 	 	6.1	 	Tenant's Share	 	12
	 	 	6.2	 	Monthly Payments	 	12
	 	 	6.3	 	Expense Statements	 	13
	 	 	6.4	 	Real Estate Tax Contests	 	14
	 	 	6.5	 	Audit Procedures	 	14
	7.	 	Sales, Use or Other Taxes	 	15
	8.	 	Personal Property Taxes	 	15
	 	 	8.1	 	Levied on Tenant	 	15
	 	 	8.2	 	Levied on Landlord	 	15
	9.	 	Late Charge; Interest	 	15
	10.	 	Deposits	 	16
	 	 	10.1	 	First Installment of Monthly Base Rent [Intentionally omitted.]	 	16
	 	 	10.2	 	Security Deposit	 	16
	 	 	10.3	 	Transfer of Landlord's Interest	 	16
	 	 	10.4	 	Landlord Remedies	 	17
	11.	 	Laws and Ordinances	 	17
	12.	 	Use of Demised Premises	 	17
	13.	 	Repairs by Tenant	 	18
	14.	 	Repairs by Landlord	 	18
	15.	 	Furniture; Fixtures; Electrical Equipment	 	19
	 	 	15.1	 	Floor Loading	 	19
	 	 	15.2	 	Office Equipment	 	19
	16.	 	Shell Condition; Tenant's Work; Alterations	 	20
	 	 	16.1	 	Shell Condition	 	20
	 	 	16.2	 	Alterations by Tenant	 	22
	 	 	16.3	 	Compliance with Codes; No Liens	 	22
	 	 	16.4	 	As-Built Plans	 	23
	17.	 	Ownership of Alterations and Equipment and Other Property; Removal of Tenant's Personal Property	 	23
	 	 	17.1	 	Landlord's Property	 	23
	 	 	17.2	 	Removal	 	24
	18.	 	Damage or Destruction	 	25
	 	 	18.1	 	Notice	 	25
	 	 	18.2	 	Restoration	 	25
	 	 	18.3	 	Termination	 	25
	 	 	18.4	 	No Liability 	 	25
	19.	 	Condemnation
 	 	25
	 	 	19.1	 	Compensation Award	 	25
	 	 	19.2	 	Termination 	 	26
	20.	 	Defaults; Landlord's Remedies
 	 	26
	 	 	20.1	 	Events of Default 	 	26
	 	 	 	 	 	 	 

 

	 	 	20.2	 	Landlord's Remedies 	 	27
	 	 	20.3	 	Extent of Liabilities 	 	28
	 	 	20.4	 	Tenant's Waiver 	 	28
	 	 	20.5	 	Landlord's Lien. [Intentionally omitted.]	 	28
	 	 	20.6	 	Remedies Cumulative 	 	28
	 	 	20.7	 	Tenant's Agent for Process. [Intentionally omitted.]	 	29
	21.	 	Utilities and Services
 	 	29
	 	 	21.1	 	Landlord to Furnish 	 	29
	 	 	21.2	 	Recycling 	 	30
	 	 	21.3	 	Charges to Tenant 	 	30
	 	 	21.4	 	Repairs; Interruptions 	 	30
	 	 	21.5	 	Government or Other Requirements 	 	31
	 	 	21.6	 	Access 	 	31
	 	 	21.7	 	Fitness Facility	 	31
	22.	 	Insurance
 	 	32
	 	 	22.1	 	Liability Insurance	 	32
	 	 	22.2	 	Tenant's Property Insurance and Other Insurance	 	32
	 	 	22.3	 	Policy Requirements	 	33
	 	 	22.4	 	Additional Insurance	 	33
	 	 	22.5	 	Effect of Tenant's Activities on Insurance	 	33
	 	 	22.6	 	Termination Right	 	33
	 	 	22.7	 	Tenant's Contractor's Insurance	 	34
	 	 	22.8	 	Landlord's Insurance	 	34
	23.	 	Waiver of Subrogation
 	 	35
	24.	 	Property at Tenant's Risk
 	 	35
	25.	 	Assignment and Subletting
 	 	35
	 	 	25.1	 	Consent Required	 	35
	 	 	25.2	 	Landlord's Options	 	36
	 	 	25.3	 	Costs	 	37
	 	 	25.4	 	Sublease with Cushman Realty Corporation	 	37
	26.	 	Signs
 	 	38
	27.	 	Rules and Regulations
 	 	38
	28.	 	Landlord Access
 	 	38
	29.	 	Subordination
 	 	38
	 	 	29.1	 	Automatic Subordination	 	38
	 	 	29.2	 	Instruments of Subordination	 	39
	30.	 	Estoppel Certificates; Financial Statements
 	 	40
	 	 	30.1	 	Estoppel Certificate	 	40
	 	 	30.2	 	Financial Statements	 	40
	31.	 	Hold-Over
 	 	41
	32.	 	Quiet Enjoyment
 	 	41
	33.	 	Certain Rights Reserved by Landlord
 	 	41
	34.	 	Landlord's Successors
 	 	42
	35.	 	Relocation of Tenant [Intentionally omitted.]	 	42
	36.	 	Modifications to Lease
 	 	42
	37.	 	Attorneys' Fees
 	 	43
	38.	 	Notices
 	 	43
	39.	 	Remedies Cumulative; No Waiver
 	 	43
	40.	 	Final Agreement
 	 	44
	41.	 	Waiver of Jury Trial
 	 	44
	 	 	 	 	 	 	 

ii

 

	42.	 	Force Majeure
 	 	44
	43.	 	Gender; Assigns and Successors; Joint and Several Liability
 	 	44
	44.	 	Severability
 	 	44
	45.	 	Time is of the Essence [Intentionally omitted.]	 	45
	46.	 	Indemnities
 	 	45
	 	 	46.1	 	Tenant's Indemnity	 	45
	 	 	46.2	 	Landlord's Indemnity	 	45
	47.	 	Limitation on Landlord Liability
 	 	45
	48.	 	No Partnership
 	 	45
	49.	 	Brokerage
 	 	45
	50.	 	Tenant's Authority
 	 	46
	51.	 	Applicable Law
 	 	46
	52.	 	Parking
 	 	46
	53.	 	Hazardous Materials
 	 	46
	 	 	53.1	 	Definition	 	46
	 	 	53.2	 	General Prohibition	 	46
	 	 	53.3	 	Notice	 	47
	 	 	53.4	 	Landlord's Obligation	 	47
	 	 	53.5	 	Survival	 	47
	54.	 	Landlord's Right to Terminate [Intentionally Omitted.]	 	47
	55.	 	Option to Extend
 	 	47
	56.	 	Conference Center
 	 	48
	57.	 	Storage Space
 	 	49
	58.	 	Right of First Offer
 	 	50
	 	 	58.1	 	Available Space	 	50
	 	 	58.2	 	Notice; Exercise	 	50
	 	 	58.3	 	Execution of Lease Amendment	 	51
	 	 	58.4	 	Miscellaneous Provisions	 	52
	59.	 	Antenna License
 	 	52

iii

 

EXHIBIT
A—Floor Plan

EXHIBIT B—Declaration by Landlord and Tenant

EXHIBIT C—Rules and Regulations

EXHIBIT D—[Intentionally omitted.]

EXHIBIT E—Definition of Shell Condition

EXHIBIT F—Cleaning Specifications

EXHIBIT G—Plan of Storage Space 

iv

 
 

LEASE AGREEMENT    
    

        THIS LEASE AGREEMENT ("Lease") is made this 27th day of December 2000, by and between FARRAGUT CENTER LLC, a District of Columbia limited liability
company, ("Landlord") and LECG, LLC, a California limited liability company ("Tenant"). 

W I T N E S S E T H  

        1.    Definitions    

        Except
as otherwise expressly provided or unless the context otherwise requires, the following terms shall have the meanings assigned to them in this Paragraph: 

        A.    Definitions of Business Terms    

        1.     Base
Rent: The following per annum: 

	Lease

Year
	 	Base Rent

Per Square Foot

Per Annum
	 	Annual

Base Rent
	 	Monthly

Base Rent

	  1	 	$	44.00	 	$	2,156,044.00	 	$	179,670.33
	  2	 	$	44.88	 	$	2,199,164.88	 	$	183,263.74
	  3	 	$	45.78	 	$	2,243,265.78	 	$	186,938.82
	  4	 	$	46.70	 	$	2,288,346.70	 	$	190,695.56
	  5	 	$	47.63	 	$	2,333,917.63	 	$	194,493.14
	  6	 	$	49.63	 	$	2,431,919.63	 	$	202,659.97
	  7	 	$	50.62	 	$	2,480,430.62	 	$	206,702.55
	  8	 	$	51.63	 	$	2,529,921.63	 	$	210,826.80
	  9	 	$	52.66	 	$	2,580,392.66	 	$	215,032.72
	10	 	$	53.71	 	$	2,631,843.71	 	$	219,320.31

        2.     Base
Year: Calendar year 2001. 

        3.     Broker:
Trammell Crow Real Estate Services, Inc., as agent of Landlord, and Cushman Realty Corporation, as agent of Tenant. 

        4.     Building:
The building located at 1725 Eye Street, N.W., Washington, D.C., in which the Demised Premises are located. The term "Building" includes all portions of such
building, the Demised Premises, the Common Areas and the garage. 

        5.     Cost-of-Living
Adjustment: [Intentionally omitted.] 

        6.     Demised
Premises: Approximately 49,001 rentable square feet of office space, consisting of (i) the approximately 24,516 rentable square feet comprising the entire
eighth (8th) floor of the Building and known as Suite 800 and (ii) approximately 24,485 rentable square feet comprising the entire ninth (9th) floor of the Building and known as
Suite 950, as measured in accordance with the Greater Washington Commercial Association of REALTORS(R) Standard Method of Measurement adopted June 13, 1995 (the "GWCAR Standard Method of
Measurement"), as determined by Landlord, and modified to include a proportionate share of the conference center in the Building, as shown on the floor plan attached hereto as Exhibit A, and
modified to include a proportionate share of that portion of the rentable area of the Conference Center (as hereinafter defined in Paragraph 56 hereof) in the Building which exceeds two thousand five
hundred (2,500) square feet, which proportionate share shall be the same percentage as Tenant's Percentage of Increased Operating Expenses [as defined in Paragraph
1.A.15(1) hereof]. Within ninety (90) days following the Lease Commencement Date, Landlord's architect shall remeasure the Demised Premises and Building in accordance with the GWCAR
Standard Method of Measurement and certify the results of said measurement to Landlord (the remeasurement as to the Demised Premises is referred to as the "Final Determination"). Landlord shall
promptly provide a copy of such Final Determination to Tenant, and Tenant may elect to have Tenant's architect review and 

 

confirm
said Final Determination in accordance with the GWCAR Standard of Measurement within ten (10) days following Landlord's delivery of said Final Determination to Tenant. In the event
Tenant's architect disagrees with the Final Determination, Landlord's architect and Tenant's architect shall confer and, within five (5) business days of Tenant's architect's review, will
endeavor to reach agreement as to the measurement of the Demised Premises in accordance with the GWCAR Standard Method of Measurement; provided, however, that in the event that after such conference,
Tenant's architect and Landlord's architect do not agree as to the measurement, Landlord's architect shall certify the Final Determination of the measurement of the Demised Premises in accordance with
the GWCAR Standard of Measurement and such determination shall be final and binding on Landlord and Tenant. The remeasurement of the Building by Landlord's architect in accordance with the GWCAR
Standard Method of Measurement shall be final and binding on Landlord and Tenant. Within fifteen (15) days after the Final Determination of the rentable floor area of the Demised Premises and
remeasurement of the Building, Landlord shall prepare, and Landlord and Tenant shall each promptly execute, an amendment to this Lease pursuant to which the Base Rent, Tenant's Percentage of Increased
Operating Expenses, Tenant's Percentage of Increased Char Service Costs, Tenant's Percentage of Increased Real Estate Taxes and any other affected provisions of this Lease are recalculated to reflect
such increase or decrease in the rentable floor area of the Demised Premises or Building, or both, which amendment shall be effective as of the Lease Commencement Date, even if executed after the
Lease Commencement Date. However, the area and plan of the Demised Premises may change in the event of the exercise of any option to expand or contract the Demised Premises set forth in this Lease,
and the Demised Premises will be remeasured following any such expansion or contraction in accordance with the GWCAR Standard Method of Measurement. 

        7.     Guarantor:
None. 

        8.     Land:
That parcel of land known as Lot 61 in Square 126 in Washington, D.C., including all easements, rights and appurtenances thereto. 

        9.     Landlord's
Address: 

c/o
Cafritz Company

Vice President—Commercial Management

1825 K Street, N.W.

Washington, D.C. 20006 

        10.   Lease
Commencement Date: May 1, 2001, or as may be adjusted pursuant to Paragraph 3. 

        11.   Parking
Spaces: Thirty (30). 

        12.   Rent
Commencement Date: The same date as the Lease Commencement Date, subject to abatement of a portion of the Base Rent as hereinafter provided in Paragraph
4(b) hereof. 

        13.   Security
Deposit: Seven Hundred Eighteen Thousand Six Hundred Eighty-One and 32/100 Dollars ($718,681.32). 

        14.   Tenant's
Legal Notice Address: 

Ms.
Denise Wilkins

Director of Operations

LECG, LLC

2000 Powell Street

Suite 600

Emeryville, California 94608 

2

 

And
to: 

Ms.
Tina Bussone

Attention: Manager, Administrative Operations

LECG, LLC

1725 I Street, N.W.

Washington, D.C. 20006 

With
a copy to: 

Folger,
Levin & Kahn LLP

275 Battery Street

23rd Floor

San Francisco, California 94111

Attention: Adam Sachs, Esq. 

        15.   (1)  Tenant's
Percentage of Increased Operating Expenses: 20.21% of Increased Operating Expenses, which shall be the number of square feet of rentable area
in the Demised Premises divided by the total number of square feet of rentable area of office space and retail space in the Building (242,516 square feet as of the date of execution of this Lease). 

        (2)   Tenant's
Percentage of Increased Char Service Costs: 21.58% of Increased Char Service Costs, which shall be the number of square feet of rentable area in the Demised
Premises divided by the total number of square feet of rentable area of office space in the Building (227,066 square feet as of the date of execution of this Lease). 

        (3)   Tenant's
Percentage of Increased Real Estate Taxes: 20.21% of Increased Real Estate Taxes, which shall be the number of square feet of rentable area in the Demised
Premises divided by the total number of square feet of rentable area of office space and retail space in the Building (242,516 square feet as of the date of execution of this Lease). 

        16.   Term:
Ten (10) years, plus all renewal periods of this Lease as set forth in Paragraph 55 hereof. 

        B.    Additional Definitions    

        1.     Additional
Rent: Any amounts required to be paid by Tenant under the terms of this Lease (including, but not limited to the payments to be made pursuant to Paragraphs 6
and 9, but not including Monthly Base Rent) and any charges or expenses paid or incurred by Landlord on behalf of Tenant. 

        2.     Adjustment
Date: [Intentionally omitted.] 

        3.     Alterations:
Any improvements, alterations, fixed decorations or modifications, structural or otherwise, to the Demised Premises, the Building or the Land, including, but
not limited to, the installation, substitution, alteration, or modification of carpeting, partitions, fixtures, counters, doors, air conditioning ducts, plumbing, piping, lighting fixtures and wiring
of any kind (but excluding wiring to the extent a permit is not required therefor), hardware, locks, ceilings, window and wall coverings and the like. 

        4.     Common
Areas: Those areas of the Building and/or Land, as the case may be, made available by Landlord for use by Tenant in common with Landlord, other tenants of the
Building and the employees, agents and invitees of Landlord and of such other tenants. 

        5.     Consumer
Price Index: [Intentionally omitted.] 

3

 

        6.     Ground
Leases: All ground and other underlying leases from which Landlord's title to the Land and/or the Building is or may in the future be derived. "Ground Lessors"
shall denote those persons and entities holding such ground or underlying leases. 

        7.     Holidays:
New Year's Day, Martin Luther King, Jr.'s Birthday, Presidents Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day, in addition
to such future holidays (if any) designated by a future executive order of the President of the United States or by a future Act of Congress and selected by Landlord to be observed as additional
holidays at the Building. 

        8.     (1)  Increased
Operating Expenses: Operating Expenses for any calendar year in excess of all Operating Expenses incurred during the Base Year. 

        (2)   Increased
Char Service Costs: Char Service Costs for any calendar year in excess of Char Service Costs incurred during the Base Year. 

        (3)   Increased
Real Estate Taxes: Real Estate Taxes incurred during any calendar year in excess of Real Estate Taxes incurred during the Base Year. 

        9.     Landlord's
Work: [Intentionally omitted.] 

        10.   Lease
Year: That period of twelve (12) consecutive calendar months commencing on the first day of the calendar month in which the Lease Commencement Date occurs, and
each consecutive twelve-month period thereafter. 

        11.   Monthly
Base Rent: Equal monthly installments of one-twelfth (1/12th) of the Base Rent. 

        12.   Operating
Expenses: Any and all expenses incurred by Landlord in each calendar year in connection with the ownership, operation, management, maintenance and repair of
the Building and the Land, excluding Char Service Costs which are treated separately in Paragraph 6 below. By way of example, but without limitation, Operating Expenses shall include any and all of
the following: salaries, wages, medical, surgical and general welfare benefits (including health, accident and group life insurance) and pension payments for employees of Landlord engaged in the
operation, management, maintenance or repair of the Building; payroll taxes; license fees, costs incurred to achieve compliance with governmental laws, rules, regulations and orders; electricity and
other utilities (except as charged directly to tenants); repairs and maintenance but not costs of repairing, improving or altering any space in preparation for occupancy of any new or renewal tenant;
cost of materials; any local or state surcharges or special charges; utility taxes; water and sewer charges; capital expenditures made by Landlord during the Term, provided, that such expenditures
shall be limited to (i) those replacements of Building elements with other Building elements and improvements which serve similar purposes and which in Landlord's reasonable judgment will
increase the efficiency of the Building (i.e., are reasonably anticipated by Landlord to reduce Operating Expenses (to an extent reasonably commensurate with the costs such replacements or
improvements) as they relate to the item which is the subject of the capital expenditure or which are reasonably anticipated by Landlord to reduce the rate of increase in Operating Expenses (to an
extent reasonably commensurate with the costs of such replacements or improvements) as they relate to the item which is the subject of the capital expenditure from what it otherwise would have been in
the absence of such capital expenditure) and will not change the character of the Building, and (ii) those replacements and improvements which are required to comply with the requirements of
any laws, regulations, or insurance or utility company requirements, except with respect to conditions and laws existing as of the Lease Commencement Date, together with any financing charges incurred
in connection therewith, provided that such costs shall be amortized over the useful life of the improvements and only the portion attributable to the calendar year for which the calculation is being
made shall be included in Operating Expenses for that calendar year; premiums for casualty, liability, elevator, worker's compensation, 

4

 

boiler
and machinery, sprinkler leakage, rent loss, use and occupancy or other insurance; access control system and lobby attendant; Building supplies; uniforms and dry cleaning; consulting fees to
the extent that they relate to the management or operation of the Building which consulting fees shall be appropriately allocated (as reasonably determined by Landlord) if such consulting fees do not
relate solely to the Building; costs of continuing education for Landlord's on-site employees [including an appropriate allocation (as reasonably determined by Landlord) of any of such
costs related to Landlord's employees which are part-time on- site employees] for education regarding the operation and maintenance of Building systems, including, but not limited to, such
education as is required to maintain any license pertaining to any such employee's employment and the cost of any such license [it being agreed that Tenant's Percentage of such costs in
any calendar year shall not exceed Two Thousand Five Hundred Dollars ($2,500.00), as such amount is increased, commencing on January 1, 2002 and on each January 1 thereafter during the
Term, by three percent (3%) on a compounded basis] and professional and trade association dues for Building management staff; concierge expenses; environmental expenses; vault space
rentals and public space rentals; any costs, charges or other assessments made by or for any entity operating a business improvement district in which the Building is located; recycling expenses;
personal property taxes; window cleaning; trash removal; snow removal; repair and maintenance of the grounds, including costs of landscaping, gardening and planting; service or management contracts
with independent contractors, including, but not limited to access control and energy management services; management fees, which (A) shall be deemed to be, and shall be calculated as, an
amount equal to three percent (3%) of all gross revenues from the Building during the calendar year for which the management fee is being calculated (including, but not limited to, the Base Year),
notwithstanding the fact that the rate of the
management fee actually paid by Landlord for such calendar year may be less than or greater than three percent (3%) of all gross revenues from the Building, and (B) shall be grossed up for any
calendar year (including, but not limited to, the Base Year) to include in gross revenues from the Building any "free rent" or rent abatement with respect to any portion of such calendar year; legal
and accounting fees (subject to the exclusions set forth below); costs of operation, use, maintenance, and repair of the Conference Center (as hereinafter defined) in the Building; rent for a
management office in the Building; telephone, telegraph, postage, stationery supplies and other materials and expenses required for the routine operation of the Building, and all other expenses and
charges of any nature whatsoever, whether or not herein mentioned, which are incurred by Landlord in connection with the ownership, operation, management, maintenance and repair of the Building and
the Land. 

        Operating
Expenses shall not include any of the following expenses: capital improvements and expenses for work which Landlord performs for specific tenants; interest and amortization of
funds borrowed by Landlord, whether secured or unsecured; leasing commissions incurred in procuring tenants for the Building; income, excess profits, franchise taxes or other such taxes imposed on or
measured by the net income of Landlord from the operation of the Building; Real Estate Taxes; and costs incurred by Landlord for the repair of damage to the Building to the extent that Landlord is
reimbursed for same by insurance proceeds. 

        (a)   Notwithstanding
anything to the contrary set forth in this Lease, Operating Expenses shall not include the following items: 

        (i)    Any
ground lease rental, except to the extent that it is for Real Estate Taxes, insurance premiums or the like; 

        (ii)   Depreciation,
amortization and rentals for items (except when needed in connection with normal repairs and maintenance of permanent systems) which, if purchased, rather
than rented, would constitute a capital expenditure which is specifically excluded pursuant to the first subparagraph of this Paragraph 1.B.12 (excluding, however, 

5

 

equipment
not affixed to the Building which is used in providing janitorial or similar services); 

        (iii)  Costs
incurred by Landlord for the repair of damage to the Building, to the extent that Landlord is reimbursed therefor by insurance proceeds; 

        (iv)  Costs,
including permit, license and inspection costs, incurred with respect to the installation of tenants' or other occupants' improvements in the Building or
incurred in renovating or otherwise
improving, decorating, painting or redecorating vacant space for tenants or other occupants of the Building; 

        (v)   Marketing
costs including, without limitation, leasing commissions, attorneys' fees in connection with the negotiation and preparation of letters, deal memos, letters of
intent, leases, subleases and/or assignments, space planning costs, and other costs and expenses incurred in connection with lease, sublease and/or assignment negotiations and transactions with
present or prospective tenants or other occupants of the Building; 

        (vi)  Expenses
in connection with services or other benefits which are not offered to Tenant or for which Tenant is charged directly but which are provided to another tenant
or occupant of the Building; 

        (vii)   Overhead
and profit increment paid to Landlord or to subsidiaries or affiliates of Landlord for goods and/or services in or to the Building to the extent
the same exceeds the costs of such goods and/or services rendered by unaffiliated third parties on a competitive basis; 

        (viii)   Interest,
principal, points and fees on debts or amortization on any mortgage or mortgages or any other debt instrument encumbering the Building or the
Land (except as otherwise expressly permitted by this Paragraph 1.B.12; 

        (ix)  Landlord's
general corporate overhead and general and administrative expenses; 

        (x)   Any
compensation paid to clerks, attendants or other persons in commercial concessions operated by Landlord or in the parking garage of the Building or wherever Tenant
is granted its parking privileges and/or all fees paid to any parking facility operator (on or off the land), provided, however, that if Landlord provides such parking to Tenant free of charge or at a
reduced rate, to the extent that Tenant's Percentage Share of such expenses exceeds any amount paid by Tenant for such parking, these expenses may be included as a part of Operating Expenses; 

        (xi)  Advertising
and promotional expenditures, and costs of signs in or on the Building identifying the owner of the Building or other tenants' signs other than those signs
regarding emergency services of if required by law; 

        (xii)   Electric
power costs for which any tenant directly contracts with the local public service company or of which any tenant is separately metered or
sub-metered and pays Landlord directly, provided, however, that if any tenant in the Building contracts directly for electric power service or is separately metered or submetered during any portion of
the relevant period, the total electric power costs for the Building shall be "grossed up" to reflect what those costs would have been had each tenant in the Building used the Building-standard amount
of electric power; 

6

  

        (xiii)   Services
and utilities provided, taxes attributable to, and costs incurred in connection with the operation of the retail and restaurant operations in
the Building, except to the extent the square footage of such operations are included in the rentable square feet of the Building and do not exceed the services, utility and tax costs which would have
been incurred had the retail and/or restaurant space been used for general office purposes; 

        (xiv)   Tax
penalties incurred as a result of Landlord's negligence, inability or unwillingness to make payments and/or to file any tax or informational returns
when due; provided that Tenant was then current in the payment of all Rent due and payable under this Lease; 

        (xv)   Costs
arising from the gross negligence or willful misconduct of other tenants (to the extent recovered from such other tenants) or Landlord or its
agents, contractors, or providers of materials or services selected, hired or engaged by Landlord or its agents including, without limitation, the selection of Building materials; 

        (xvi) Notwithstanding
anything to the contrary contained in this Lease, including, without limitation, any provision relating to capital expenditures, any and all costs
arising from the presence of hazardous materials or substances (as defined by applicable laws in effect on the date the Lease is executed) in or about the Demised Premises, the Building or the site
including, without limitation, hazardous substances in the ground water or soil, not placed in the Demised Premises, the Building or the site by Tenant; 

        (xvii)  Costs
arising from Landlord's charitable or political contributions, except trade association fees and dues, it being agreed that such trade association
fees and dues shall be included in the Base Year and that Tenant's Percentage of such trade association fees and dues in any calendar year shall not exceed Two Thousand Five Hundred Dollars
($2,500.00), as such amount is increased, commencing on January 1, 2002 and on each January 1 thereafter during the Term, by three percent (3%) on a compounded bases; 

        (xviii)  Except
to the extent includable in Operating Expenses as a capital expenditure above (which shall continue to be includable therein), Operating
Expenses shall exclude costs arising from latent defects in the base, shell or core of the Building or improvements installed by Landlord or repair thereof, to the extent that Landlord is reimbursed
therefor by insurance proceeds and warranties; 

        (xix) Costs
arising from any mandatory or voluntary special assessment on the Building or the Land by any transit district authority or any other governmental entity having
the authority to impose such assessment, except Business Improvement District assessments; 

        (xx) Costs,
other than those incurred in ordinary maintenance (for such objects as may be located within the Common Areas) for sculptures, paintings or other objects of art
in the event that any of same are of investment quality, other than (A) permitted Building signage and (B) holiday decorations; 

        (xxi) Costs
(including in connection therewith all attorneys' fees and costs of settlement judgments and payments in lieu thereof) arising from claims, disputes or potential
disputes in connection with potential or actual claims litigation or arbitrations pertaining to Landlord and/or the Building and/or the Land; 

        (xxii)  Costs
associated with the operation of the business of the partnership or entity which constitutes Landlord as the same are distinguished from the costs
of operation of the Building, including partnership accounting and legal matters, costs of defending any 

7

 

lawsuits
with any mortgagee (except as the actions of Tenant may be in issue), costs of selling, syndicating, financing, mortgaging or hypothecating any of Landlord's interest in the Building, costs
of any disputes between Landlord and its employees (if any) not engaged in Building operation, disputes of Landlord with Building management, or outside fees paid in connection with monetary disputes
with other tenants and non-monetary disputes with other tenants to the extent that they are collected by Landlord from other tenants; 

        (xxiii)  Costs
of any "tap fees" or any sewer or water connection fees for the benefit of any particular tenant in the Building; 

        (xxiv)  Costs
incurred in connection with any environmental clean-up, response action, or remediation on, in, under or about the Premises or the Building of the
Land, including but not limited to, costs and expenses associated with the defense, administration, settlement, monitoring or management thereof; 

        (xxv)  Any
travel expenses outside of the Washington, D.C. metropolitan area for any purpose, and any entertainment (except Building functions to which all
tenants of the Building are invited); 

        (xxvi)  Any
flowers, gifts or balloons provided to any entity whatsoever, to include, but not limited to, Tenant, other tenants, employees, vendors,
contractors, prospective tenants and agents to the extent not made available to all tenants of the Building; 

        (xxvii)  Any
"validated" parking for any entity; 

        (xxviii)  Any
"finders fees", brokerage commissions, job placement costs or job advertising costs, other than with respect to a receptionist or secretary in the
Building office, once per year; 

        (xxix)  Any
"above-standard" cleaning, including, but not limited to, construction cleanup or special cleanings associated with parties or events and specific
tenant requirements in excess of services provided to Tenant, including related trash collection, removal, hauling and dumping; 

        (xxx)  The
cost of any magazine, newspaper, trade or other subscriptions; and 

        (xxxi)  "In-house"
legal and/or accounting fees. 

        "Char
Service Costs" are any and all expenses incurred for char service in or about office space in the Building. 

        In
the event that, during any calendar year or portion thereof during the Term (including, but not limited to, the Base Year), Landlord shall furnish any utility or service which is
included in the definition of Operating Expenses or Char Service Costs to less than ninety-five percent (95%) of the rentable area of the Building because (i) less than all of the rentable area
of the Building is occupied, (ii) any such utility or service is not desired or required by any tenant, or (iii) any tenant is itself obtaining or providing any such utility or service,
then the Operating Expenses or Char Service Costs, or both, as applicable, for such calendar year (including, but not limited to, the Base Year) shall be increased to equal the total expenses that
Landlord reasonably estimates it would have incurred if Landlord had provided all such utilities and services to ninety-five percent (95%) of the rentable area of the Building for the entire calendar
year. For example, if the average occupancy rate of the Building during a calendar year is eighty percent (80%), the janitorial contractor's charges are $1.00 per occupied rentable square foot per
year, and the Building contains one hundred thousand (100,000) rentable square feet of space, then it would be reasonable for Landlord to estimate that, if the Building had been ninety-five percent
(95%) 

8

 

occupied
during the entire calendar year, janitorial charges for such calendar year would have been Ninety-Five Thousand Dollars ($95,000) and to compute the Char Service Costs for such calendar year
accordingly. In no event shall the provisions of this paragraph be used to enable Landlord to collect from the tenants of the Building more than one hundred percent (100%) of the costs and expenses
incurred by Landlord in managing, operating and maintaining the Building and the Land. 

        13.   Real
Estate Taxes: Taxes and assessments, general or special, ordinary or extraordinary, foreseen or unforeseen, assessed, levied or imposed upon the Building or the
Land, or assessed, levied or imposed upon the fixtures, machinery, equipment or systems in, upon or used in connection with the operation of the Building or the Land under the current or any future
taxation or assessment system or modification of, supplement to, or substitute for such system, and whether or not based on or measured by the receipts or revenues from the Building or the Land
(including all taxes and assessments for public improvements or any other governmental purpose and any gross receipts or similar taxes). Real Estate Taxes shall include the reasonable expenses
(including but not limited to reasonable attorneys' fees) incurred by Landlord in obtaining or attempting to obtain a reduction of such taxes, rates or assessments. In making the decision to attempt
to obtain a reduction of such taxes, rates or assessments Landlord shall make reasonable efforts to determine that such expenses are in Landlord's judgment not excessive. The term Real Estate Taxes
shall specifically exclude any capital levy, franchise, transfer or recordation taxes, as well as any other interest or penalty arising by reason of late payment of any Real Estate Taxes, so long as
the reason for such late payment was not contributed to by Tenant's failure to pay any portion of Rent which was due and payable under this Lease. Real Estate Taxes shall also exclude any federal or
state tax which is assessed upon Landlord's net income, i.e. any tax which will directly vary based upon the amount of Landlord's net income (for example, the present District of Columbia
Unincorporated Business Tax). The foregoing exclusion is not intended to exclude a tax which is based upon an assessment which takes into consideration, among other factors, the Landlord's net rents
or net income, which latter tax shall be included in Real Estate Taxes. 

        14.   Rent:
All Base Rent and Additional Rent. 

        15.   Tenant's
Personal Property: All equipment, machinery, improvements, furniture, furnishings and other property now or hereafter installed or placed in or on the Demised
Premises by and at the sole expense of Tenant or with Tenant's permission (other than any property of Landlord) with respect to which Tenant has not been granted any credit or allowance by Landlord
and which (a) is not used, or was not procured for use, in connection with the operation, maintenance or protection of the Demised Premises, the Building, or the Land, and (b) is
removable without damage to the Demised Premises, the Building, or the Land, and (c) is not a replacement of any property of Landlord, whether such replacement is made at Tenant's expense or
otherwise. Notwithstanding any other provision of this Lease, Tenant's Personal Property shall not include any Alterations or any improvements or other property installed or placed in or on the
Demised Premises as part of Tenant's work, whether or not any such property was purchased or installed at Tenant's expense. 

        2.    Demised Premises    

        For
and in consideration of the Rent reserved and the mutual covenants contained in this Lease, Landlord does hereby lease and demise unto Tenant, and Tenant does hereby lease and accept
from Landlord, the Demised Premises for the Term and upon the terms and conditions set forth in this Lease. It is specifically understood that for purposes of calculating any payments or prorations
hereunder, the number of rentable square feet set forth in Paragraph 1.A.6 above shall control. Any approximations of such square footage shall in no way affect the payment of Rent under this Lease
should any variance be found to exist between said approximation and the actual square footage. 

9

 

        3.    Term    

        3.1    Initial Term.    The Term shall begin on the Lease Commencement Date and shall end on (a) the day
preceding the tenth (10th) anniversary of the Lease Commencement Date, if the Lease Commencement Date occurs on the first day of a month or (b) the last day of the month which includes the
tenth (10th) anniversary of the Lease Commencement Date, if the Lease Commencement Date occurs on a day which is other than the first day of a month, unless sooner terminated in accordance with the
terms of this Lease. 

        3.2    Adjustment of Lease Commencement Date.    

        (a)   If
Tenant commences beneficial use of the Demised Premises prior to any date specified as the Lease Commencement Date under any provision of Paragraph 1.A.10 or any
provision of this Paragraph 3.2, the Lease Commencement Date shall be the date on which Tenant commences beneficial use of the Demised Premises (irrespective of whether Tenant's Work is substantially
complete). Notwithstanding the foregoing sentence, in no event [except as provided in
Paragraph 3.2(d) hereof] shall the Lease Commencement Date be later than May 20, 2001. Tenant shall be deemed to have commenced beneficial use of the Demised Premises when
Tenant begins commencing conducting business in the Demised Premises and such beneficial use shall be deemed to be an acceptance of the nature and sufficiency of the Demised Premises. 

        (b)   Provided
that on or before January 1, 2001 Landlord (i) delivers possession of the Demised Premises (in Shell Condition pursuant to Paragraph 16.1 hereof) to
Tenant, or (ii) provides access to Tenant's general contractor or subcontractors for the purpose of performing Tenant's Work (as defined in Paragraph 16.1 hereof) and prior to May 1,
2001 Tenant substantially completes Tenant's Work (as reasonably determined by Landlord's architect) but Tenant has not commenced beneficial use of the Demised Premises (as defined in Paragraph 3.2
(a)), then the Lease Commencement Date shall be the earlier of (i) May 1, 2001, or (ii) the date on which Tenant commences beneficial use of the Demised Premises (as defined in Paragraph
3.2(a)), but in no event (including, without limitation, an event of Force Majeure described in Paragraph 42 hereof) shall the Lease Commencement Date be later than May 20, 2001. 

        (c)   Provided
that on or before January 1, 2001 Landlord (i) delivers possession of the Demised Premises (in Shell Condition pursuant to Paragraph 16.1 hereof) to
Tenant, or (ii) provides access to Tenant's general contractor or subcontractors for the purpose of performing Tenant's Work (as defined in Paragraph 16.1 hereof) and on or after May 1,
2001 Tenant substantially completes Tenant's Work (as reasonably determined by Landlord's architect), then the Lease Commencement Date shall be the date on which Tenant so substantially completes
Tenant's Work [notwithstanding Paragraph 3.2(a) above and irrespective of whether Tenant commences conducting business in the Demised Premises] but in no event
(including, without limitation, any event of Force Majeure described in Paragraph 42 hereof) shall the Lease Commencement Date be later than May 20, 2001. 

        (d)   If
Landlord for any reason does not, until a date which is after January 1, 2001, either (i) deliver possession of the Demised Premises (in Shell Condition
pursuant to Paragraph 16.1 hereof) to Tenant or (ii) provide access to Tenant's general contractor and subcontractors for the purpose of performing Tenant's Work (as defined in Paragraph 16.1
hereof) (each of the delivery of possession in clause (i) or provision of access in clause (ii) is referred to herein as a "Landlord Condition"), then a Landlord Delay shall be deemed to
have occurred and the May 1, 2001 date set forth in Paragraph 1.A.10. of this Lease shall be extended one day for each day during the period commencing on January 2, 2001 through and
including the date on which Landlord satisfies either of the Landlord Conditions (such 

10

 

extended
date being referred to as the "Extended Date") and in such event the Extended Date shall be the Lease Commencement Date, subject to adjustment as follows: 

        (1)   Subject
to clause (3) below, if Tenant substantially completes Tenant's Work (as reasonably determined by Landlord's architect) prior to such Extended Date, the
Lease Commencement Date shall be the earlier of (x) the Extended Date, or (y) the date on which Tenant commences conducting business in the Demised Premises; or 

        (2)   Subject
to clause (3) below, if Tenant substantially completes Tenant's Work (as reasonably determined by Landlord's architect) on or after the Extended Date, the
Lease Commencement Date shall be the date on which Tenant so substantially completes Tenant's Work; or 

        (3)   If
this Paragraph 3.2(d) is applicable and under any circumstances (including, without limitation, an Event of Force Majeure described in Paragraph 42 hereof) the
Lease Commencement Date would be a date which is later than one hundred forty (140) calendar days after the date on which Landlord has satisfied either of the Landlord Conditions, then the Lease
Commencement Date shall be that date which is 140 calendar days after the date on which Landlord has satisfied either of such Landlord Conditions. 

        The
Lease Commencement Date may occur after May 20, 2001 only as provided in this Paragraph 3.2(d) and not under any other circumstances. 

        (e)   In
the event that on or before January 20, 2001 Landlord does not deliver the Demised Premises to Tenant (in Shell Condition pursuant to Paragraph 16.1 hereof) or
provide such access to Tenant's general contractor or subcontractors for the purpose of performing Tenant's Work (as defined in Paragraph 16.1 hereof) for any reason (including, but not limited to,
the existence of any circumstance which would otherwise be subject to the provisions of Paragraph 42 hereof, but excluding any reason which is the result of any act or omission on the part of Tenant
which delays, impedes, interferes with or precludes Landlord's delivery of the Demised Premises to Tenant in Shell Condition, or providing such access as aforesaid), and in the event that such delay
by Landlord is the sole cause of substantial completion of Tenant's Work being delayed beyond May 31, 2001 (as reasonably determined by Landlord's architect), then, for so long as Tenant has
not commenced conducting business in the Demised Premises, in such event Landlord shall pay to Tenant as liquidated damages (and as Tenant's sole remedy) the amount of Thirty-One Thousand Seven
Hundred Thirty-Three and 53/100 Dollars ($31,733.53) per calendar month for each month or portion thereof after May 31, 2001 that substantial completion of Tenant's Work does not occur solely
as a result of such delay by Landlord in so delivering the Demised Premises or providing access as aforesaid. However, if any such delay is primarily the result of any act or failure to act by Tenant,
its agents or employees, no such amount per day shall be payable to Landlord. 

        Landlord
shall also use reasonable efforts to substantially complete construction of the Building lobby by April 1, 2001, and Landlord shall in fact substantially complete
construction of the Building lobby by the Lease Commencement Date. 

        (f)    For
purposes of this Paragraph 3, Tenant's Work shall be considered "substantially complete" on the date on which Tenant's Work has been completed in conformity with
Tenant's Plans, except for (a) punchlist items of construction, which do not materially interfere with Tenant's use of the Demised Premises, or (b) custom or specialty items and other
items which cannot be completed until said custom or specialty items are delivered or work requiring use of such items is completed. 

        3.3    Declaration.    Landlord and Tenant agree to execute a Declaration, in the form attached hereto as
Exhibit B, to confirm the Lease Commencement Date, the Rent Commencement Date, 

11

 

and
the Term. Failure to execute the Declaration shall not affect the commencement or expiration of the Term. 

        3.4    Effective Date.    The rights and obligations set forth in this Lease, except for the obligation to pay Base
Rent and the Additional Rent provided for in Paragraph 6 hereof and as otherwise specifically provided herein to the contrary, shall become effective on the date of final execution of this Lease. 

        4.    Rent; Monthly Base Rent    

        (a)   The
first full payment of Monthly Base Rent shall be due and payable upon the Rent Commencement Date and each subsequent payment of Monthly Base Rent shall be due and
payable on the first day of each and every month following the Rent Commencement Date during the Term. If the Rent Commencement Date is a date other than the first day of a month, then Monthly Base
Rent for the period commencing with and including the Rent Commencement Date and ending on and including the day prior to the first day of the following month shall be prorated at the rate of one-
thirtieth (1/30th) of the Monthly Base Rent per day and shall be due and payable on the Rent Commencement Date and the first full payment of Monthly Base Rent shall be applied to the first full month
immediately following the Rent Commencement Date. All payments of Rent shall be payable to Landlord or its designated agent, c/o Cafritz Company, Attn: Financial Services Department, 1825 K Street,
N.W., Washington, D.C. 20006, in lawful money of the United States, without previous notice or demand and without deduction, set-off or counterclaim whatsoever. Landlord shall have the right to change
the place where Rent shall be paid, by written notice to Tenant. 

        (b)   Subject
to Paragraph 20.2(d), Monthly Base Rent shall be abated with respect to a portion of the Demised Premises which comprises 8,898 rentable square feet, in the
amount of Thirty-Two Thousand Six Hundred Twenty-Six Dollars ($32,626.00) per month, for each of the first six (6) months of the Term of this Lease. 

        5.    Cost-of-Living Adjustment    [Intentionally omitted.] 

        6.    Increases in Operating Expenses, Char Service Costs and Real Estate Taxes    

        6.1    Tenant's Share.    Commencing on the first (1st) anniversary of the Lease Commencement Date, for each calendar
year or fraction thereof during the Term, Tenant shall pay to Landlord Tenant's Percentage of Increased Operating Expenses, Tenant's Percentage of Increased Char Service Costs, and Tenant's Percentage
of Increased Real Estate Taxes. 

        6.2    Monthly Payments.    Prior to determination of the actual amount payable by Tenant under Paragraph 6.1,
commencing on the first (1st) anniversary of the Lease Commencement Date Tenant shall make monthly installment payments toward such share on an estimated basis, based on Landlord's reasonable estimate
of Tenant's Percentage of Increased Operating Expenses, Tenant's Percentage of Increased Char Service Costs, and Tenant's Percentage of Increased Real Estate Taxes for such calendar year. Tenant shall
pay Landlord, commencing with the first installment of Monthly Base Rent payable on or after the first anniversary of the Lease Commencement Date, and on the first day of each month thereafter,
(i) one-twelfth (l/12th) of Landlord's estimate of Tenant's Percentage of Increased Operating Expenses, (ii) one-twelfth (1/l2th) of Landlord's estimate of Tenant's Percentage of
Increased Char Service Costs, and (iii) one-twelfth (l/12th) of Landlord's estimate of Tenant's Percentage of Increased Real Estate Taxes. Notwithstanding the foregoing provisions of this
Paragraph 6.2, in determining such estimated payments of Tenant's Percentage of Increased Operating Expenses for any such calendar year, the portion of Increased Operating Expenses estimated for the
entire Building for such calendar year which constitute estimated Controllable Operating Expenses for the Building (as hereinafter defined) shall not exceed one hundred five percent (105%) of the
amount of estimated 

12

 

Controllable
Operating Expenses for the Building (as hereinafter defined) for the immediately preceding calendar year (the "Estimated Controllable Operating Expenses Cap"); provided, however, that the
Estimated Controllable Operating Expenses Cap (i) will not be implemented and applied unless Landlord overestimates (by comparison to the actual amount of Controllable Operating Expenses for
the Building) the Controllable Operating Expenses estimated for the Building by more than five percent (5%) in each of two (2) consecutive calendar years, and (ii) will not be
implemented or applied in any way which would require Landlord to change any estimated payment amount after the calendar year has commenced. As used herein, "Controllable Operating Expenses for the
Building" shall mean all Operating Expenses for the Building except for (i) license and permit fees of any nature, (ii) property taxes, personal property taxes or other taxes of any
nature, except to the extent that any of same are excluded from Operating Expenses pursuant to Paragraph 1.B.12 hereof, (iii) utilities costs, (iv) insurance premiums and costs,
(v) costs of snow removal, (vi) costs of compliance with governmental requirements (including, without limitation, minimum wage requirements), (vii) vault space rentals and public
space rentals, and (viii) costs of trash removal; provided always, however, that the foregoing shall only apply to the calculation of estimated payments as aforesaid under this Paragraph 6.2 and shall
not apply any cap to, or modify the calculation of, or modify Tenant's obligation to pay, Tenant's Percentage of Increased Operating Expenses under Paragraph 6.1 hereof. 

        If
Landlord does not determine its estimate for the then current year of Tenant's Percentage of Increased Operating Expenses, Tenant's Percentage of Increased Char Service Costs, and
Tenant's Percentage of Increased Real Estate Taxes until February 1 or later, the first such installments after such estimate shall include the monthly payments retroactive to January 1
of the same calendar year. 

        6.3    Expense Statements.    After the end of the calendar year which includes the first (1st) anniversary of the
Lease Commencement Date, and after the end of each calendar year thereafter, Landlord shall determine the Increased Operating Expenses, Increased Char Service Costs and Increased Real Estate Taxes for
such calendar year. Landlord shall provide to Tenant after the end of each calendar year a statement of the amount payable as Tenant's Percentage of Increased Operating Expenses, Tenant's Percentage
of Increased Char Service Costs and Tenant's Percentage of Increased Real Estate Taxes. Within thirty (30) days after the delivery of such statement, Tenant shall pay to Landlord any deficiency
between the amount shown as Tenant's Percentage of Increased Operating Expenses, Tenant's Percentage of Increased Char Service Costs and Tenant's Percentage of Increased Real Estate Taxes and the
estimated payments made by Tenant toward such amounts in accordance with Paragraph 6.2. In the case of excess estimated payments (which Landlord shall determine to the extent information is available
within 180 days after the end of such calendar year, except for Real Estate Taxes), such excess shall be credited to Tenant pro rata over the following calendar year (commencing not later than 180
days after the end of such calendar year and subject to further adjustment as to unavailable information and Real Estate Taxes), provided, however, that if the Lease shall have expired, Landlord shall
refund such excess, without interest, within forty-five (45) days following the delivery of the expense statement. In the event the Term commences or expires during a calendar year, Tenant's
Percentage of Increased Operating Expenses, Tenant's Percentage of Increased Char Service Costs and Tenant's Percentage of Increased Real Estate Taxes shall be determined by multiplying the amount of
each applicable Tenant's Percentage for the full calendar year by a fraction, the numerator of which is the number of calendar months during such calendar year falling within the Term and the
denominator of which is 12. Tenant's liability for the final payment of Tenant's Percentage of Increased Operating Expenses, Tenant's Percentage of Increased Char Service Costs and Tenant's Percentage
of Increased Real Estate Taxes shall survive the expiration of the Term. 

13

  

        6.4    Real Estate Tax Contests.    If there is any change by the taxing body in the period for which any of the Real
Estate Taxes are levied, assessed or imposed, Landlord shall have the right, in its reasonable discretion, to make appropriate adjustments with respect to computing increases in Real Estate Taxes
provided Tenant is not thereby unduly prejudiced. Real Estate Taxes which are being contested by Landlord shall be included for purposes of computing Tenant's Percentage of Increased Real Estate Taxes
under this paragraph, but if Tenant shall have paid an amount of Real Estate Taxes because of such inclusion of contested Real Estate Taxes and Landlord thereafter receives a refund of such Taxes,
Tenant shall be credited with the excess toward estimated payments of Increased Real Estate Taxes proportionate with the refund of Increased Real Estate Taxes, reduced by the proportionate cost of
obtaining such refund. The credit shall be prorated over the following calendar year. Landlord shall have no obligation to contest, object to or litigate any levying, assessment or imposition of Real
Estate Taxes, and may settle, compromise, consent to, waive or otherwise determine any such Real Estate Taxes without the consent of Tenant. 

        6.5    Audit Procedures.    Each Operating Expenses, Char Services and Real Estate Taxes statement given by Landlord
pursuant to this Lease shall be conclusive and binding upon Tenant unless, within seven hundred thirty (730) calendar days after the receipt of the statement, Tenant shall notify Landlord in writing
that it disputes the correctness of the statement, specifying the particular respects in which the statement is claimed to be incorrect (the "Tenant Audit Notice"). Tenant shall have the right to
employ an independent auditor employed only on a non-contingent fee basis to assist Tenant to inspect and audit Landlord's books and records relating to Operating Expenses, Char Services and Real
Estate Taxes for the calendar year in question, but Tenant shall have no right to audit any calendar year more than once or to audit any period more than two (2) years before the date of the
Tenant Audit Notice given as aforesaid. If Tenant elects to employ such independent auditor, Tenant shall provide Landlord not less than fifteen (15) days notice of the date(s) on which such
accountant desires to examine Landlord's books and records during regular business hours, and Landlord shall cooperate with Tenant and such auditor, and shall provide same with access to Landlord's
books and records, which audit or inspection shall be conducted in Landlord's management office in the Washington, D.C. metropolitan area where such books and records are kept, which is currently
located at Cafritz Company, 1825 K Street, N.W., Washington, D.C. All information provided by Landlord pursuant to this Paragraph 6.5 shall be confidential, and shall not be disclosed by Tenant or
such auditor to any third party (other than arbitrators appointed in the event of a dispute as hereinafter provided). If as a result of such audit, Tenant continues to dispute the correctness of the
statement, and if such dispute shall not have been settled by agreement, either party may submit the dispute to arbitration within sixty (60) days after Landlord's receipt of written notice from
Tenant that Tenant disputes the statement in question. The decision of any board of arbitration pursuant to an arbitration conducted in accordance with the commercial arbitration rules of the
American Arbitration Association, shall be binding on all parties. Pending the resolution of such dispute by agreement or arbitration as aforesaid, Tenant shall pay all Rent and Additional Rent due
under this Lease, including the amount of Tenant's Percentage of Increased Operating Expenses, the amount of Tenant's Percentage of Increased Char Service Costs, the amount of Tenant's Percentage of
Increased Real Estate Taxes, or all of them, as the case may be, as are claimed by Landlord in accordance with the statement, without prejudice to Tenant's position, as herein provided. If the dispute
shall be resolved in Tenant's favor and it is determined that the Tenant's Percentage of Operating Expenses, Tenant's Percentage of Increased Char Service Costs or Tenant's Percentage of Real Estate
Taxes set forth on the annual statement delivered by Landlord in any category were more than 105% of Tenant's Percentage of the Operating Expenses, Tenant's Percentage of Increased Char Service Costs
or Tenant's Percentage of Real Estate Taxes, respectively, set forth on the corrected statement, Landlord shall promptly pay to Tenant the amount of Tenant's overpayment 

14

 

and
Tenant's costs (including reasonable attorneys' and accountants' fees) directly related to the audit and arbitration proceeding. If the dispute shall be resolved in Tenant's favor and it is
determined that the delivered statement was not more than 105% of the corrected statement in any category, each party shall pay its own costs related to the arbitration (and share equally any common
costs, but not the cost of Tenant's in-house accountant), and Landlord shall promptly pay to Tenant the amount of Tenant's overpayment. If the dispute shall be resolved in Landlord's favor, Tenant
shall promptly pay all costs and expenses (including reasonable attorneys' and accountants' fees) incurred by Landlord in connection with such dispute, including those directly related to the
arbitration. 

        7.    Sales, Use or Other Taxes    

        If
during the Term, any governmental authority having jurisdiction levies, assesses or imposes any tax on Landlord, the Demised Premises, the Land or the Building or the rents payable
hereunder, in the nature of a sales tax, a use tax (including a gross receipts tax) or any other tax except (a) income taxes (including corporate franchise or unincorporated business taxes);
(b) estate or inheritance taxes; or (c) Real Estate Taxes, Tenant shall pay the same to Landlord as Additional Rent at the time of, and together with, the first payment of Monthly Base Rent due
following receipt by Tenant of written notice of the amount of such tax. If any such tax is levied, assessed or imposed and the amount of the tax required to be paid by Tenant is not ascertainable
because the tax relates to more than the Demised Premises or the rents payable hereunder, then Tenant shall pay such share of the total taxes that Landlord shall reasonably estimate. 

        8.    Personal Property Taxes    

        8.1    Levied on Tenant.    Tenant shall pay, before delinquency, all taxes, assessments, license fees and other
charges that are levied or assessed against Tenant's Personal Property installed or located in or on the Demised Premises and against the value of leasehold improvements that become payable during the
Term. On demand by Landlord, Tenant shall furnish Landlord with satisfactory evidence of these payments. 

        8.2    Levied on Landlord.    If any taxes on Tenant's Personal Property are levied against Landlord or Landlord's
property, or if the assessed value of the Land or the Building is increased by the inclusion of a value placed on Tenant's Personal Property, and if Landlord pays the taxes on any of these items or
the taxes based on the increased assessment of these items, Tenant, on demand, shall reimburse Landlord for the sum of the taxes levied against Landlord, or the proportion of the taxes resulting from
the increase in Landlord's assessment. Landlord shall have the right to pay these taxes regardless of the validity of the levy. 

        9.    Late Charge; Interest    

        All
payments of Additional Rent shall be paid to Landlord, without notice or demand, and without any setoff, deduction (except as otherwise specifically provided herein) or counterclaim
whatsoever, with the installment of Monthly Base Rent next due after such Additional Rent shall have accrued. Nothing contained in Paragraphs 6, 7, and 8 shall be construed at any time to reduce the
amount of Monthly Base Rent as increased each year. Notwithstanding any dispute which may arise in connection with the computation or estimate of the amount of Additional Rent due, Tenant shall be
obligated to pay the amount specified by Landlord, pending the resolution of any dispute. Any installment of Monthly Base Rent or Additional Rent not paid within five (5) days of the due date
thereof shall be subject to a late charge of five percent (5%) of such installment. In addition, commencing on the thirtieth (30th) day after the due date, any such unpaid installment shall bear
interest until paid at the rate of eighteen percent (18%) per annum. Notwithstanding the foregoing, for each of the first two (2) occasions during any consecutive period of twenty-four (24) months
where a late charge would be due (and Tenant received notice thereof from Landlord) under the preceding sentences, Landlord shall waive such first two (2) late charges to which it would
otherwise be entitled pursuant to this Paragraph 

15

 

9
if any installment of Monthly Base Rent or Additional Rent which was not paid on its due date is paid not later than the fifth (5th) day following such due date. In the event any payment from Tenant
by check is returned by the financial institution on which it is drawn for any reason, a service charge of One Hundred Dollars ($100.00) shall be due and payable as Additional Rent in addition to the
late charge set forth above. In addition, Tenant shall pay to Landlord, within ten (10) days of receipt of an invoice therefor, any fee imposed upon Landlord by its bank as a result of any
returned check. Tenant's obligations to pay any amounts of Additional Rent shall survive the expiration or termination of this Lease. 

        10.    Deposits    

        10.1    First Installment of Monthly Base Rent    [Intentionally omitted.] 

        10.2    Security Deposit.    Landlord also acknowledges receipt from Tenant of the Security Deposit to be held as
collateral security and not prepaid rent, for the payment of Monthly Base Rent and Additional Rent and for the faithful performance by Tenant of all other covenants, conditions and agreements of this
Lease. Landlord shall maintain the Security Deposit in a separate interest-bearing account, which Security Deposit shall be repaid to Tenant, with such interest as is earned thereon in such account,
after the termination of this Lease, provided Tenant shall have made all such payments and performed all such covenants and agreements of this Lease; provided, however, that (i) the Security
Deposit shall be reduced by Three Hundred Fifty-Nine Thousand Three Hundred Forty and 66/100 Dollars ($359,340.66) upon the expiration of sixty (60) days following the later to occur of
(a) occupancy by Tenant and its approved subtenants of all of the Demised Premises or (b) the Lease Commencement Date, if as of such sixtieth (60th) day there has not occurred any Event
of Default on the part of Tenant under this Lease between the date of execution hereof and such sixtieth (60th) day and there is not then pending any Pending Default, which shall mean any circumstance
which, with the giving of notice, the passage of time or both would constitute an Event of Default, and (ii) upon the expiration of the fifth (5th) Lease Year, the Security Deposit shall be
further reduced by One Hundred Seventy-Nine Thousand Six Hundred Seventy and 33/100 Dollars ($179,670.33) if there has not been any Event of Default on the part of Tenant under this Lease between the
date of execution hereof and the
expiration of said fifth (5th) Lease Year and there is not then pending any Pending Default; provided, however, that if at the time that any reduction in the Security Deposit is scheduled to occur all
other conditions as set forth above concerning the scheduled reduction in the Security Deposit have been satisfied, then the scheduled reduction in the Security Deposit shall be deferred until the
Pending Default has been cured, at which time such scheduled reduction in the Security Deposit shall occur. The Security Deposit shall not be mortgaged, assigned, transferred or encumbered by Tenant
without the prior written consent of Landlord and any such act on the part of Tenant shall be without force and effect and shall not be binding upon Landlord. If any of the Rent payable by Tenant to
Landlord shall be overdue and unpaid, or should Landlord make payments on behalf of Tenant, or should Tenant fail to perform any of the terms of this Lease, then Landlord, at its option and without
prejudice to any other remedy which Landlord may have on account thereof, may appropriate and apply the entire Security Deposit or so much thereof as may be necessary to compensate Landlord toward the
payment of Monthly Base Rent or Additional Rent or loss or damage sustained by Landlord due to such breach on the part of Tenant; and Tenant upon demand shall restore the Security Deposit to the
original sum deposited. In the event of bankruptcy or other creditor-debtor proceedings against Tenant, the Security Deposit shall be deemed to be applied first to the payment of Monthly Base Rent and
any Additional Rent due Landlord under the terms and conditions contained in this Lease. 

        10.3    Transfer of Landlord's Interest.    In the event of a sale or transfer of Landlord's estate or interest in the
Land and Building, Landlord shall transfer the Security Deposit to the vendee or transferee, and Landlord shall be considered released by Tenant from all liability for the return of 

16

 

the
Security Deposit. Tenant shall look solely to the transferee for the return of the Security Deposit, and it is agreed that all of the foregoing shall apply to every transfer or assignment made of
the Security Deposit to a new transferee. No mortgagee or purchaser of any or all of the Building at any foreclosure proceeding brought under the provisions of any mortgage shall (regardless of
whether the Lease is at the time in question subordinated to the lien of any mortgage) be liable to Tenant or any other person for any or all of such sum (or any other or additional security deposit
or other payment made by Tenant under the provisions of this Lease), unless Landlord has actually delivered it in cash to such mortgagee or purchaser, as the case may be. In the event of any rightful
and permitted assignment of Tenant's interest in this Lease, the Security Deposit shall be deemed to be held by Landlord as a deposit made by the assignee, and Landlord shall have no further liability
to the assignor with respect to the return of the Security Deposit. 

        10.4    Landlord Remedies.    No right or remedy available to Landlord in this Lease shall preclude or extinguish any
other right to which Landlord may be entitled. It is understood that if Tenant fails to perform its obligations and to take possession of the Demised Premises as provided in this Lease, the first
installment of Monthly Base Rent and the Security Deposit shall not be deemed liquidated damages. Landlord may apply such sums to reduce Landlord's damages and such application of funds shall not
preclude Landlord from recovering from Tenant all additional damages incurred by Landlord. 

        11.    Laws and Ordinances    

        Tenant
will, at its own cost, promptly comply with and carry out all orders, requirements or conditions now or hereafter imposed upon Tenant or the Demised Premises by the ordinances,
laws, rules, orders or regulations of the Federal government and the municipality, county or state in which the Demised Premises is located, whether required of Landlord or otherwise, in the conduct
of Tenant's business except that Landlord shall comply with any orders affecting structural walls, roof and columns, Common Areas and Building systems unless the orders are due to Tenant's particular
business or use of the Demised Premises. Tenant will defend, indemnify and save Landlord harmless from all penalties, liabilities, damages, costs, expenses, suits, claims and demands to the extent
resulting from Tenant's failure or negligence in this respect. 

        12.    Use of Demised Premises    

        The
Demised Premises shall be used and occupied by Tenant, solely for the purpose of general office use and for no other purpose whatsoever. The Demised Premises shall not be used for
any illegal purpose or in violation of any regulation of any governmental body, or in any manner to (i) create any nuisance or trespass; (ii) vitiate any insurance; or (iii) alter
the classification or increase the rate of any type of insurance on the Building or any part thereof. Landlord shall make a good faith effort to impose substantially the same such conditions as are
set forth in this Paragraph 12 on all other tenants in the Building which have not executed leases as of the date of Tenant's execution of this Lease. 

        For
so long as LECG, LLC, a California limited liability company, is itself in occupancy of not less than fifty percent (50%) of the entire Demised Premises, Landlord agrees that:
(a) at any time while this Lease is in effect, Landlord will not enter into a lease for any office space in the Building, with any governmental entity represented by the United States General
Services Administration (or its broker for leasing to a governmental entity) but this restriction shall not apply to the following: (i) the National Cooperative Bank (its successors and
assigns) is a tenant in the Building, (ii) Presidential Commissions, and (iii) entities such as Fannie Mae and Sallie Mae (other quasi-governmental entities) and similar entities, and
(b) prior to the date on which one hundred percent (100%) of the office rentable area of the Building has been initially leased to tenants, Landlord will not enter into leases for office space
in the Building with the Federal Deposit Insurance Corporation, the Organization of American States or the International Monetary Fund/World Bank, where the aggregate of the rentable 

17

 

square
footage of office spaces under all such leases with said entities would exceed one (1) full floor of office space in the Building. Tenant agrees that (x) until the date on which one
hundred percent (100%) of the office rentable area of the Building has been initially leased to tenants, Tenant shall not sublease in the aggregate in excess of one (1) full floor of the
Demised Premises, or assign this Lease, to any of the entities identified in Paragraph 12(b) immediately above, and (y) (i) Landlord receives a written offer from any of the entities
identified in this Paragraph 12(b) immediately above, (ii) Landlord notifies Tenant in writing that Landlord would accept such offer but for the provisions of this Paragraph
12(b) and requests in such notice that Tenant advise Landlord as to whether Tenant wishes to have the provisions of this Paragraph 12(b) enforced, and (iii) within three
(3) business days following Tenant's receipt of Landlord's notice pursuant to the immediately preceding clause (ii), Tenant advises Landlord in writing that Tenant does wish to have the
provisions of this Paragraph 12(b) enforced, then, in such event, Tenant shall indemnify, defend and save harmless Landlord, Landlord's managing agent, and their respective servants, agents or
employees from and against any claims, judgments, liabilities and costs (including, without limitation, attorneys fees) arising out of or related to any or all of the foregoing provisions of this
paragraph [it being agreed that if Tenant makes no response to Landlord's notice, or advises Landlord in writing that Tenant does not wish to have the provisions of this Paragraph
12(b) enforced, or makes any other response to Landlord's notice, Tenant shall be deemed to have waived its right to have the provisions of this Paragraph 12(b) enforced]. 

        13.    Repairs by Tenant    

        Tenant
agrees to maintain the Demised Premises and the fixtures therein in good order, repair and condition, during the Term at its sole cost and expense, and will, at the expiration or
other termination of the Term, surrender and deliver the same and all keys, locks and other fixtures connected therewith (except only Tenant's Personal Property) in the same good order, repair and
condition as they are now in or shall be in at the Lease Commencement Date, except as repaired, rebuilt, restored, altered or added to as permitted or required by this Lease, and ordinary wear and
tear for a ten (10) year lease term and major casualty events (other than those caused by the willful misconduct of Tenant) excepted. Tenant shall make all repairs to the Demised Premises
necessitated by any act or omission of Tenant or its agents, employees, or invitees. 

        In
addition, unless covered by Landlord's insurance, all damage to the Demised Premises or the Building, caused by moving the property of Tenant into, in or out of the Building and all
breakage, damage or injury done by Tenant or the agents, servants and employees of Tenant, and, to the extent covered by Tenant's insurance, the invitees, visitors or guests of Tenant shall be
repaired by Tenant, at the sole cost and expense of Tenant. In the event Tenant shall fail to do so after written notice from Landlord, then Landlord shall have the right to make such necessary
repairs or alterations and any charge or cost so incurred by Landlord shall be paid by Tenant as Additional Rent. This provision shall be construed as an additional remedy granted to Landlord and not
in limitation of any other rights or remedies which Landlord has or may have in said circumstances. 

        14.    Repairs by Landlord    

        Landlord
agrees to endeavor to maintain the structural components of the Building, the Common Areas and Building systems, in good order, repair and condition, during the Term, and shall
make such repairs thereto as become necessary after obtaining actual knowledge of the need for such repairs, all costs of which shall be included in Operating Expenses, unless the need for any such
maintenance or repair is brought about by any act or omission of Tenant, its agents, employees or invitees, in which event, Tenant shall have the obligation to make, at its sole cost and expense, such
structural repairs. Landlord shall have no duty to Tenant to maintain or to make any repairs or improvements to the Demised Premises. Landlord shall not be liable for any damage caused to the person
or property of Tenant, its agents, employees, sublessees, contractors, or, to the extent covered by insurance, its invitees, due to the improper construction or repair of the Demised Premises or the
Building or any 

18

 

part
or appurtenances or arising from the leaking of gas, water, sewer or steam pipes, or from electricity, or from any other cause whatsoever, except for actual damages (but in no event any
consequential damages) resulting directly from the negligence or intentional misconduct of Landlord or its agents. Tenant agrees to report promptly in writing to Landlord any defective condition in or
about the Demised Premises or the Building which becomes known to Tenant. 

        15.    Furniture; Fixtures; Electrical Equipment    

        15.1    Floor Loading.    Tenant shall not place a load upon the floor of the Demised Premises contrary to the weight,
method of installment and position prescribed by Landlord. Landlord hereby advises Tenant that, as of the date of execution of this Lease, the average permissible floor load for the Building is eighty
(80) pounds per square foot for live loads and twenty (20) pounds per square foot for dead loads. Business machines, mechanical equipment and materials belonging to Tenant which cause vibration,
noise, cold, heat or fumes that may be transmitted to the Building or to any other leased space therein to such a degree as to be objectionable to Landlord or to any other Tenant in the Building shall
be placed, maintained, isolated, stored and/or vented by Tenant at its sole expense so as to absorb and prevent such vibration, noise, cold, heat or fumes. Tenant shall defend, indemnify and hold
Landlord harmless against any and all liability, damage, cost, expense, injury, suits, claims or demands (including attorneys' fees) resulting from the moving of Tenant's equipment, furnishings and
materials into or out of the Demised Premises or from the storage or operation of the same. Any and all damage or injury to the Demised Premises, the Building or the Land caused by such moving,
storage or operation shall be promptly repaired by Tenant at Tenant's sole cost, subject to and in compliance with the provisions of the Lease. 

        15.2    Office Equipment.    Tenant will not install or operate in the Demised Premises any electrically operated
equipment, computers or other machinery, other than personal computers, high speed copy and facsimile machines, electric typewriters or adding machines and such other small electrically operated
office equipment as is commonly used in modern offices (specifically excluding any electrically operated equipment using more than 120 volts), without first obtaining the prior written consent of
Landlord, which may condition such consent upon the payment by Tenant of Additional Rent in compensation for such excess consumption of water and/or electricity or wiring as may be occasioned by the
operation of such equipment or machinery (but notwithstanding the restrictions in the foregoing parenthetical Tenant may install, at its own cost and expense and subject to Landlord's approval as to
location and specifications, one (1) 240 volt electrical outlet for the exclusive use of Tenant's high speed photocopier, provided that Tenant shall pay Additional Rent as aforesaid for excess
consumption occasioned thereby; nor shall Tenant install any other equipment whatsoever which will or may cause noise or vibrations that may be transmitted to areas outside of the Demised Premises to
such a degree as to be objectionable to Landlord or any other Tenant in the Building, or which will or may necessitate any changes, replacements or additions to or require the use of the water system,
plumbing system, heating system, air conditioning system, security system or the electrical system of the Demised Premises without the prior written consent of Landlord. 

        Notwithstanding
anything to the contrary set forth in Paragraph 15.2 above, Landlord agrees that Tenant's use of any equipment in the Demised Premises shall not render Tenant liable for
excess consumption occasioned thereby except as determined in accordance with this subparagraph of this Paragraph 15.2, as follows: In the event that Landlord has a basis for believing that any
equipment or other machinery causes Tenant to use more electricity than the average consumption per square foot which is reasonably estimated by Landlord to be used by law firms in Comparable
Buildings (as hereinafter defined in Paragraph 22.4) (the "Average Law Firm Electricity Use"), Landlord shall have the right to cause a survey to be made by an independent electrical engineer or
consulting firm to determine the amount of electricity consumed by Tenant in excess of the Average Law Firm Electricity Use, and in the event that such survey confirms that Tenant is using more
electricity than the Average 

19

 

Law
Firm Electricity Use, (i) Tenant shall reimburse Landlord for the cost of completion of said survey, (ii) Landlord shall have the right to install one or more separate electrical
meters for the Demised Premises and Tenant shall reimburse Landlord for the cost thereof (including installation), (iii) Landlord shall have the right, in its sole discretion, to install
additional transformers, distribution panels, wiring and other applicable equipment at the expense of Tenant, and (iv) Tenant shall pay as Additional Rent the cost of any electricity in excess
of the Average Law Firm Electricity Use, at the rate charged by the utility company providing such electricity, assuming continuous business hours, within ten (10) business days after receipt
of any bill therefor from Landlord. None of the equipment so installed by Landlord pursuant to this subparagraph shall be deemed to be Tenant's Personal Property. 

        16.    Shell Condition; Tenant's Work; Alterations    

        16.1    Shell Condition.    Landlord shall deliver the Demised Premises to Tenant in Shell Condition, as defined in
Exhibit E attached hereto and made a part hereof, which shall include the delivery of the ninth (9th) floor component of the Demised Premises in Shell Condition as if it were to be used as a
multi-tenanted floor. Landlord is under no obligation to make any other improvements of any nature to the Demised Premises. Notwithstanding the foregoing, Landlord shall make available for the
performance of Tenant's Work (as hereinafter defined) an allowance (the "Tenant Allowance") in an amount equal to the product of (a) Fifty-Eight and 46/100 Dollars ($58.46) multiplied by
(b) the number of square feet of rentable area comprising the Demised Premises. Landlord shall pay the Tenant Allowance to Tenant following Tenant's completion of Tenant's Work (as hereinafter
defined) and Landlord's receipt from Tenant of (i) a written certification signed by an officer of Tenant (or Ms. Tina Bussone as Tenant's representative) requesting such payment, and
(ii) invoices reasonably evidencing work or services performed with respect to Tenant's Work (as hereinafter defined), and (iii) receipted bills or other evidence that the aforesaid invoices
have been paid in full, and (iv) waivers or releases of liens from each of Tenant's contractors, subcontractors and suppliers in connection with the work performed or materials supplied as
evidenced by the aforesaid invoices. Payment of portions of the Tenant Allowance pursuant to the terms of this Paragraph 16.1 shall not be requested more often than once during any calendar month, and
commencing with the second (2nd) request, each request shall be delivered to Landlord not sooner than thirty (30) days following the date of the previous request. Landlord shall make payment of the
appropriate amount of the Tenant Allowance requested by Tenant in each request within thirty (30) days following Landlord's receipt of the request with all of the conditions set forth in this
Paragraph 16.1 having been satisfied by Tenant. 

        Tenant,
at its cost and expense, shall provide the design services of an architect and engineer selected by Tenant and approved by Landlord who shall prepare complete architectural,
structural, mechanical, electrical and plumbing plans and specifications as necessary to obtain final governmental permits and approvals and to construct all of the improvements to the Demised
Premises to be performed by Tenant (the "Preliminary Plans and Specifications"), which Preliminary Plans and Specifications shall be submitted by Tenant to Landlord and shall be subject to Landlord's
prior written approval, which approval shall not be unreasonably withheld or delayed with respect to items which do not affect any of the structural components of the Building or any of the Building's
systems or the exterior aesthetics of the Building. Landlord hereby approves Group Goetz Architects as Tenant's architect, META Engineers as the mechanical 

20

  

electrical
and plumbing engineer, and KCE Structural Engineers as the structural engineer with respect to Tenant's Work. Such Preliminary Plans and Specifications may include Tenant's proposed
upgrades to the common areas on the Ninth Floor (a multitenant floor) of the Building, which upgrades shall be in accordance with Landlord's Building standard design, shall be subject to Landlord's
prior written approval, in Landlord's sole and absolute judgment (notwithstanding any standard of approval otherwise applicable), and the construction of which upgrades and the design thereof shall be
solely at Tenant's cost and expense. Landlord shall make diligent efforts to provide Landlord's approval (or disapproval, with the reasons therefor) of the Preliminary Plans and Specifications within
eight (8) business days following Tenant's submission of the Preliminary Plans and Specifications to Landlord. In the event that Landlord fails to approve or disapprove the Preliminary Plans
and Specifications within twelve (12) business days following Tenant's submission of the Preliminary Plans and Specifications to Landlord, such the Preliminary Plans and Specifications shall be deemed
approved by Landlord. If any Preliminary Plans and Specifications are disapproved by Landlord, a specific reason shall be given therefor. In the event Landlord provides specific comments as aforesaid,
Tenant shall incorporate said specific comments and resubmit the Preliminary Plans and Specifications as so revised to Landlord not later than the tenth (10th) business day after Tenant's receipt of
Landlord's comments, and, if Landlord's comments have been fully incorporated therein to Landlord's satisfaction, Landlord shall deliver such Preliminary Plans and Specifications to Tenant with
Landlord's final approval, not later than five (5) business days following such resubmission. The final Preliminary Plans and Specifications so approved by Landlord are referred to herein as
the "Tenant's Plans" and the work set forth therein is referred to as the "Tenant's Work". Tenant shall improve the Demised Premises with the Tenant's Work in accordance with the Tenant's Plans. From
and after the date of Landlord's approval of the Tenant's Plans, any changes to the Tenant's Plans shall not be binding unless approved in writing by both Landlord and Tenant. Landlord's approval of
the Tenant's Plans shall constitute approval of Tenant's design concept only and shall in no event be deemed a representation or warranty by Landlord as to whether the Tenant's Plans comply with any
and all legal requirements applicable to the Tenant's Plans and Tenant's Work. 

        In
the performance of Tenant's Work, Tenant shall comply with all applicable laws, codes and regulations. Tenant shall obtain all permits, certificates and other governmental approvals
from all governmental entities having jurisdiction thereover which are necessary for the prosecution and completion of Tenant's Work. Tenant's Work shall include, but not be limited to, the cost of
all permits and governmental inspections, all architectural and engineering fees, and a construction oversight fee to Landlord in the amount of Sixteen Thousand Four Hundred Dollars ($16,400.00). 

        Prior
to commencing Tenant's Work, Tenant shall provide to Landlord the name and address of each contractor and subcontractor which Tenant intends to employ to perform Tenant's Work, the
use of which subcontractors and contractors shall be subject to Landlord's prior written approval (which as to the initial subcontractors identified shall be given or withheld within three
(3) business days of written request therefor and as to replacement subcontractors during the course of Tenant's Work shall be given or withheld within two (2) business days of written
request therefor), which shall not be unreasonably withheld, conditioned or delayed if (1) the contractor or subcontractor is properly licensed, (2) Landlord has had no prior experience
with such contractor or subcontractor which was unsatisfactory to Landlord, and (3) Landlord knows of no prior unsatisfactory experience that a third party has had with such contractor or
subcontractor. Notwithstanding the foregoing, Landlord hereby agrees and acknowledges that the following contractors are approved by Landlord: Hitt Contracting, James G. Davis, Rand Construction
Corporation and Corbett Construction; and C2C, Inc., as Tenant's construction manager; provided, however, that if, in Landlord's sole opinion, there has been a substantial change in the
financial condition or general performance level of such contractor(s) as of the date that Tenant submits Tenant's Plan to Landlord, then Landlord may withdraw its approval of such contractor(s) upon 

21

 

written
notice to Tenant. Prior to the commencement of any of Tenant's Work, Tenant shall deliver to Landlord, with respect to each contractor and subcontractor which Tenant intends to employ to
perform any of Tenant's Work, a certificate of insurance from each such contractor or subcontractor specifying Landlord, Landlord's mortgagee and Landlord's property management agent as named insureds
and evidencing that each such contractor or subcontractor has obtained the insurance coverages set forth in Paragraph 22.7 of this Lease. Said contractors and subcontractors shall also comply with
other reasonable industry requirements of Landlord. 

        Landlord
will notify Tenant promptly of its approval or disapproval of any subcontractors. In the event that Landlord fails to notify Tenant of Landlord's approval or disapproval of such
subcontractor(s) within three (3) business days of Tenant's submission of such requested approval to Landlord, such subcontractor(s) shall be deemed approved by Landlord. 

        Tenant
may use the unused portion, if any, of the Tenant Allowance, not to exceed Ten Dollars ($10.00) per square foot of floor area in the Demised Premises (the "Unused Portion"), for
Tenant's soft costs and moving related expenses, including, but not limited to, cabling and furniture for the Demised Premises. In the event that, after completion of Tenant's Work, there is any
remaining amount of such Unused Portion then, upon not less than thirty (30) days' prior written notice by Tenant to Landlord, Tenant may have such remaining amount of the Unused Portion credited to
the installment(s) of Base Rent next coming due. 

        16.2    Alterations by Tenant.    Tenant will not make or permit any Alterations to the Demised Premises or to the
Building without the prior written consent of Landlord, which consent shall not be unreasonably withheld or delayed with respect to items which do not affect any of the structural components of the
Building or any of the Building's systems or the exterior aesthetics of the Building; provided, however, that the consent of Landlord shall not be required for (i) painting or carpeting of the
Premises or (ii) Alterations costing less than Twenty-Five Thousand Dollars ($25,000) in the aggregate in any period
of twenty-four (24) consecutive months which do not affect any of the Building's operating systems or any of the structural components of the Building or the exterior aesthetics of the Building;
further provided, that Tenant shall give Landlord at least ten (10) days' prior written notice of any such Alterations not requiring Landlord's consent and Tenant shall observe all reasonable
rules and regulations promulgated by Landlord with respect to the performance of Alterations. If Landlord consents to any Alterations, Landlord may impose any conditions it deems appropriate,
including, without limitation, the approval of plans and specifications, supervision of the work by Landlord's architect or contractor (at Tenant's expense), and a statement from Tenant confirming
Tenant's reasonably satisfactory arrangements to pay for such Alterations. 

        16.3    Compliance with Codes; No Liens.    Alterations may be made only at Tenant's expense by contractors or
subcontractors approved in writing by Landlord, and only after Tenant shall have obtained any necessary permits from governmental authorities having jurisdiction, and furnished copies of the permits
to Landlord. All Alterations must conform to all rules and regulations established from time to time by the Board of Fire Underwriters having jurisdiction or similar body exercising similar
functions and to all laws, regulations and requirements of state, county and municipal governments. Tenant shall obtain and deliver to Landlord written, unconditional waivers of mechanic's and
materialmen's liens against the Building and the Land from all contractors, subcontractors and material suppliers for all work to be performed and materials to be furnished in connection with the
Alterations within fifteen (15) business days following the completion of the Alterations. Notwithstanding the foregoing, if any mechanic's lien is filed against the Landlord with respect to its
interest in the Building or the Land for work or materials done for or furnished to Tenant, or claimed to have been done for or furnished to Tenant, the lien shall be discharged by Tenant within ten
(10) days thereafter, solely at Tenant's expense, by paying off or bonding the lien. If Tenant fails to discharge such lien Landlord may do so and treat the cost thereof as 

22

 

Additional
Rent; but such discharge by Landlord shall not be deemed to waive the default of Tenant in not discharging the same. Tenant will defend, indemnify and hold Landlord harmless from and
against any and all liabilities, costs (including attorneys' fees), expenses, liens, suits, claims, demands or damage to persons or property which may arise from the making of any Alterations. If any
Alteration is made without the prior written consent of Landlord, Landlord may correct or remove the Alteration at Tenant's expense, and all costs and expenses incurred by Landlord in connection with
the removal of any mechanic's lien or the correction or removal of any Alteration shall be payable as Additional Rent with the next due payment of Monthly Base Rent. 

        16.4    As-Built Plans.    Within thirty (30) days following completion of (i) Tenant's Work or (ii) any
Alterations thereafter which require Landlord's approval hereunder, Tenant shall deliver to Landlord a complete set of "as-built" plans showing Tenant's Work or Alterations, as applicable, in hard
copy and an acceptable (in Landlord's reasonable opinion) electronic version except, with respect to Tenant's Work, as to changes from the initial Tenant's Plans where the work pursuant to such
changes does not require a permit, and in the event that Tenant does not furnish such "as-built" plans within thirty (30) days following completion of the Tenant's Work or Alterations, as applicable,
Tenant shall reimburse Landlord for any expenses incurred by Landlord in causing the Building plans to be modified to reflect such Tenant's Work, Alterations or both. 

        17.    Ownership of Alterations and Equipment and Other Property; Removal of Tenant's Personal Property    

        17.1    Landlord's Property.    Any Alterations and other property installed or located in the Demised Premises by or
on behalf of either party (i) shall (except for Tenant's Personal Property) immediately become the property of Landlord and be subject to this Lease, and (ii) shall remain upon and be
surrendered to Landlord with the Demised Premises as a part thereof upon the expiration or termination of the Term; provided, however, that if Tenant is not in default under this Lease, Tenant shall
have the right to remove, prior to the expiration of the Term, Tenant's Personal Property (except that if Tenant is then in default in the payment of any Rent due under this Lease, Tenant shall not
have the right to remove Tenant's Personal Property unless Tenant cures such default within five (5) business days following the date of expiration or termination of the Term, in which case
Tenant shall have the right to remove Tenant's Personal Property on or before such fifth (5th) business day following the date of expiration or termination of the Term), and provided further, that if
Landlord shall elect that any Alterations be removed at the expiration of the Term, Tenant shall cause the same to be removed at Tenant's expense and shall surrender the Demised Premises to Landlord
in the condition in which the Demised Premises were originally received from Landlord, except as repaired, rebuilt, restored, altered or added to as permitted or required under this Lease and except
for ordinary wear and tear, or shall reimburse Landlord for the cost of doing so. Notwithstanding anything to the contrary set forth in this Lease, if Landlord has made commercially reasonable efforts
to lease the Demised Premises to a tenant which would not require the removal of the interior stairwell which Tenant intends to install as part of Tenant's Work (the "Interior Stairwell") but has
either leased the Demised Premises to a party which does require removal of the Interior Stairwell or has not then leased the Demised Premises, Landlord shall have the right, which shall be
exercisable by written notice given to Tenant not later than six (6) months prior to the expiration of the Term (unless the Term is terminated earlier than its scheduled expiration date
pursuant to the provisions of Paragraphs 18, 19 or 20 hereof, in which case said twelve (12) month requirement shall not apply), to require Tenant to cause the Interior Stairwell to be removed at the
expiration or earlier termination of the Term at Tenant's expense, in which case Tenant shall remove such interior stairwell and restore the area which is affected by such removal to the condition in
which that portion of the Demised Premises was originally received from Landlord (the "Interior Stairwell Pre-Existing Condition"), failing which Tenant shall 

23

 

reimburse
Landlord for the cost of doing so; provided, however, that in no event shall Tenant's cost to remove the Interior Stairwell and restore the area which is affected by such removal to the
Interior Stairwell Pre-Existing Condition exceed the "Interior Stairwell Removal/Restoration Cap" (as hereinafter defined). As used herein, the term "Interior Stairwell Removal/Restoration Cap" shall
mean the amount of Fifty Thousand Dollars ($50,000) as such amount has been increased by increases in the Consumer Price Index (which shall mean the revised monthly Consumer Price Index for Urban Wage
Earners and Clerical Workers for the Washington-Baltimore, DC-MD-VA-WV CMSA (All Items, November 1996 = 100) promulgated by the Bureau of Labor Statistics of the United States Department of
Labor) between the date of execution of this Lease by Tenant and the date of expiration or earlier termination of the Term of this Lease. In the event that Landlord's actual costs of removal of the
Interior Stairwell restoration of the area which is affected by such removal to the Interior Stairwell Pre-Existing Condition exceed the Interior Stairwell Removal/Restoration Cap, Landlord shall
reimburse Tenant for the portion of such costs which is in excess of such Interior Stairwell Removal/Restoration Cap. Any such reimbursement obligation, whether on the part of Tenant or Landlord,
pursuant to this Paragraph 17.1, shall survive the expiration or earlier termination of this Lease, notwithstanding anything to the contrary set forth herein. 

        17.2    Removal.    

        (a)   Except
for Tenant's Work performed pursuant to Paragraph 16.1 hereof, Tenant shall remove all of Tenant's Personal Property from the Demised Premises at the expiration
or termination of this Lease. Any property belonging to Tenant or any other person, which is left in the Demised Premises after the date the Lease has expired or is terminated for any reason shall be
deemed to have been abandoned (provided, however, that so long as Tenant is not then conducting any business operations in the Demised Premises, Tenant shall have five (5) business days after
termination in which to remove Tenant's Personal Property in the event that this Lease is terminated for any other reason other than an Event of Default prior to the expiration of the Term of this
Lease; provided, further, however, that Landlord shall give notice to Tenant prior to such early termination of this Lease if Landlord has notice thereof, and provided, further, however, that
Paragraphs 18 and 19 shall apply in the circumstances described in said Paragraphs 18 and 19, and this parenthetical shall not be applicable thereto). In such event, Landlord shall have the right to
declare itself owner of such property and to dispose of it in whatever manner Landlord considers appropriate without waiving its right to claim from Tenant all expenses and damage caused by Tenant's
failure to remove the property, and Tenant shall not have any right to compensation or claim against Landlord as a result. 

        (b)   Notwithstanding
the foregoing, Tenant, upon submitting its request to Landlord to make Alterations, shall have the right to request therein that Landlord specify whether
and to what extent Landlord will require Tenant to remove the Alterations in question at the end of the Term, provided that Tenant refers therein to the provisions of this Paragraph 17.2(b). If Tenant
shall fail to request such information in its request to make any Alterations, such right shall be deemed null and void as to the Alterations in question, and all such Alterations shall thereafter be
subject to the exercise of Landlord's rights and to Tenant's obligations set forth in Paragraph 17.2(a) hereof. If Tenant submits its request for such information in accordance with the
foregoing provisions and Landlord consents to the Alterations requested, Landlord shall, together with its consent, specify in writing whether and to what extent it will require Tenant to remove the
Alterations in question at the end of the Term, and if Landlord fails so to specify, Tenant shall have no further obligation to remove the Alterations which were the subject of Tenant's request. 

24

 

        18.    Damage or Destruction    

        18.1    Notice.    If the Demised Premises or any part thereof shall be damaged by fire or any other cause, Tenant
shall give prompt notice thereof to Landlord. 

        18.2    Restoration.    If restoration of the Demised Premises is possible (and provided that such damage was not
caused by any act or omission of Tenant, its agents, servants or invitees), in accordance with Landlord's reasonable estimate, within a period of six (6) months [or if the damage
affects more than fifty percent (50%) of the Demised Premises or more than fifty percent (50%) of the Building, then within a period of nine (9) months] from the date of the damage:
(i) Landlord shall restore the Demised Premises at Landlord's expense up to the limit of insurance proceeds received subject to any prior rights of any mortgagee to such proceeds (provided,
however, that Landlord shall have no obligation to repair damage to or replace Tenant's Personal Property, any Alterations (other than Tenant's Work up to an amount of $58.46 for each rentable square
foot of the Demised Premises as to which such restoration is required) or any other property located in the Demised Premises); and (ii) if the Demised Premises are untenantable for Tenant's
permitted uses, in whole or in part, during such restoration, the Monthly Base Rent and Additional Rent hereunder shall be abated proportionately to the extent and for the period of such
untenantability, that is, the Rent abated shall be that portion which the amount of square foot area which is unusable bears to the total square foot area of the Demised Premises. If such damage or
destruction shall result from the fault of Tenant, or Tenant's agents, employees, visitors or licensees, Tenant shall not be entitled to any abatement of Monthly Base Rent and Additional Rent. 

        18.3    Termination.    If restoration is not possible, in accordance with Landlord's reasonable estimate, within a
period of six (6) months [or if the damage affects more than fifty percent (50%) of the Demised Premises or more than fifty percent (50%) of the Building, then within a period of
nine (9) months] from the date of the damage, Landlord, at its sole option, shall have the right to terminate this Lease by giving written notice thereof to Tenant within seventy-five (75)
days after the occurrence of such damage, in which event this Lease and the tenancy hereunder, shall terminate as of the date specified in such notice, which date shall be no later than ninety (90)
days after the occurrence of such damage. In case the Building generally is so severely damaged by fire or other casualty (although the Demised Premises may not be affected) that Landlord shall decide
in its sole discretion not to rebuild or reconstruct the Building, then this Lease, and the tenancy hereunder, shall terminate on the date specified by Landlord in a notice which shall be given no
later than seventy-five (75) days after the casualty. 

        18.4    No Liability.    No compensation or claim or diminution of rent will be allowed or paid by Landlord by reason
of inconvenience, annoyance or injury to business, arising from the necessity of repairing the Demised Premises or any portion of the Building, however the necessity may occur, as determined in the
sole discretion of Landlord. Landlord shall have no obligation to replace or repair Tenant's Personal Property. 

        19.    Condemnation    

        19.1    Compensation Award.    If the Demised Premises or any part thereof shall be taken or threatened to be taken by
any governmental or quasi-governmental authority pursuant to the power of eminent domain, or by deed in lieu thereof, Tenant agrees to make no claim for compensation in the proceedings, and hereby
assigns to Landlord any rights which Tenant may have to any portion of any award made as a result of any such taking, and this Lease shall terminate as to the portion of the Demised Premises actually
taken by the condemning authority and Monthly Base Rent and Additional Rent shall be adjusted to such date. The foregoing notwithstanding, Tenant shall be entitled to claim in the condemnation
proceedings, such awards as may be allowed for its relocation expenses and for movable trade fixtures installed by it which shall 

25

 

not,
under the terms of this Lease, be or become the property of Landlord at the termination or expiration hereof, but only if such awards shall be made by the condemnation court in addition to and
stated separately from the award made by it for the Land and the Building or part thereof so taken. In no event shall Tenant be entitled to any award for the unexpired portion of the Term of this
Lease. 

        19.2    Termination.    If the nature, location or extent of any proposed condemnation affecting the Building or the
Land is such that Landlord elects to demolish all or a portion of the Building, then Landlord may terminate this Lease by giving at least sixty (60) days written notice of termination to Tenant at any
time after such condemnation and this Lease shall terminate on the date specified in such notice. Monthly Base Rent and Additional Rent shall be adjusted to such date and Tenant shall be entitled to
make any claim permitted by Paragraph 19.1 hereof. 

        20.    Defaults; Landlord's Remedies    

        20.1    Events of Default.    Any of the following occurrences or acts shall constitute an event of default ("Event of
Default") under this Lease: 

        (a)   If
Tenant shall fail to pay any Monthly Base Rent or any Additional Rent when the same shall become due and payable and such failure continues for a period of five
(5) business days after written notice to Tenant of such failure; or 

        (b)   If
Tenant shall fail to observe or perform any of the covenants, conditions and agreements of this Lease (other than as specified in Paragraphs 20.1(a), 20.1(c) through
(g), 16.3, 29.1, 30.1, 30.2, 35 and 36) and such failure shall continue for a period of ten (10) days after written notice to Tenant of such failure; provided, however, that if such failure is
not reasonably capable of being cured within such ten (10) day period, then so long as Tenant has commenced curative action within such period and thereafter continues to pursue diligently such
curative action, such ten (10) day period shall be extended for the period necessary to cure such default, but not more than sixty (60) days, inclusive of the original 10-day period; or 

        (c)   If
Tenant shall fail, within five (5) days after written notice by Landlord, to restore any deficiency in the amount of the Security Deposit; or 

        (d)   If
the Demised Premises shall become vacant, deserted or abandoned for a period of at least fifteen (15) consecutive days; provided, however, that if (i) Tenant
pays the full amount of all Rent when due under this Lease while the Demised Premises are vacant, and (ii) the fact that the Demised Premises are vacant does not adversely affect the Building
or other tenants therein and does not result in any liability to, or additional expenditure of funds by, Landlord and in such event only, Tenant shall not be deemed to be in default under this
Paragraph 20.l(d); or 

        (e)   If
Tenant shall file a petition in bankruptcy or for reorganization or for an arrangement pursuant to any federal or state bankruptcy law or any similar federal or state
law, or shall be adjudicated a bankrupt or become insolvent or shall make an assignment for the benefit of creditors or shall admit in writing its inability to pay its debts generally as they become
due; or 

        (f)    If
a petition or answer proposing the adjudication of Tenant as a bankrupt or its reorganization pursuant to any federal or state bankruptcy law or any similar federal
or state law shall be filed in any court and Tenant shall consent to or acquiesce in the filing thereof or such petition or answer shall not be discharged or denied within thirty (30) days after the
filing thereof; or 

        (g)   If
a receiver, trustee or liquidator of Tenant, of all or substantially all of the assets of Tenant, or of the Demised Premises or Tenant's estate therein shall be
appointed in any 

26

 

proceeding
brought by Tenant, or if any such receiver, trustee or liquidator shall be appointed in any proceeding brought against Tenant and shall not be discharged within thirty (30) days after such
appointment. 

        20.2    Landlord's Remedies.    If an Event of Default shall have occurred and is continuing Landlord shall have the
following rights and remedies then or at any time thereafter, the election of which, singly or one or more in combination with each other, shall be at the sole option of Landlord: 

        (a)   To
make any payment required to be made by Tenant or to do any act required to be done by Tenant, provided that the making of any such payment or the expense of doing
such act by Landlord shall constitute Additional Rent hereunder due and payable together with interest and late charges with the installment of Monthly Base Rent next due, but the making of such
payment or the doing of such act by Landlord shall not operate to cure such Event of Default or to estop Landlord from the pursuit of any remedy to which Landlord would otherwise be entitled. 

        (b)   To
terminate this Lease by written notice to Tenant, whereupon this Lease shall end and all rights of Tenant (but not the liability of Tenant) hereunder shall expire and
terminate. Upon such termination by Landlord, Tenant will at once surrender possession of the Demised Premises to Landlord and remove all of Tenant's Personal Property therefrom, and Landlord may
forthwith re-enter and repossess the Demised Premises and remove all persons and effects therefrom, by summary proceeding, ejectment or other legal action or by using such force as may be permitted.
Landlord shall be under no liability by reason of any such reentry, repossession or removal. 

        (c)   To
enter upon and take possession of the Demised Premises and expel or remove Tenant and any other person who may be occupying the Demised Premises or any part thereof,
without being liable for prosecution or any claim for any damages or liability therefor and without terminating this Lease, and, if Landlord so elects, make such Alterations and repairs as, in
Landlord's absolute discretion, may be necessary to relet the Demised Premises or any part thereof, without notice to Tenant, for such rent and such use, and for such period of time and subject to
such terms and conditions as Landlord may deem advisable, and receive the rent therefor. Upon each such reletting, all rent received by Landlord from such reletting shall be applied, first, to the
payment of any indebtedness, including interest thereon, other than any Rent; second, to the payment of any costs and expenses of such reletting, including brokerage fees, reasonable attorneys' fees
and the costs of Alterations and repairs; third, to the payment of any Monthly Base Rent and Additional Rent due and unpaid, together with interest and late charges; and the residue, if any, shall be
held by Landlord and applied in payment of future Rent as the same may become due and payable hereunder. Tenant agrees to pay Landlord, on demand, any deficiency that may arise by reason of such
reletting. Landlord shall not be liable for any failure to relet the Demised Premises or any part thereof or for any failure to collect any rent due upon any such reletting. Notwithstanding any such
reletting without termination, Landlord may at any time thereafter elect to terminate this Lease for such prior default. 

        (d)   To
require Tenant to pay, within fifteen (15) days after notice, Monthly Base Rent for (i) the period commencing on the Lease Commencement Date and ending on the
Rent Commencement Date and (ii) for all periods during which Monthly Base Rent shall then have been abated in accordance with Paragraph 4(b) hereof, and further to require Tenant to
forfeit the right to abate Monthly Base Rent for all other periods mentioned in said Paragraph 4(b) hereof. 

27

 

        20.3    Extent of Liabilities.    If Landlord terminates this Lease pursuant to Paragraph 20.2 hereof: 

        (a)   Tenant
shall remain liable for and shall pay on demand by Landlord (i) the full amount of all Monthly Base Rent and Additional Rent which would have accrued until
the date on which this Lease would have expired had such termination not occurred, and any and all damages and expenses incurred by Landlord in reentering and repossessing the Demised Premises, in
making good any default of Tenant, in making any Alterations to the Demised Premises, in protecting and preserving the Demised
Premises, and in reletting the Demised Premises, and any and all expenses which Landlord may incur during the occupancy of any new Tenant, less
(ii) the net proceeds of any reletting of the Demised Premises which has occurred at the time of the aforesaid demand by Landlord to Tenant. Tenant agrees to pay to Landlord the difference
between items (i) and (ii) above for the period through and including the date on which this Lease would have expired if it had not been terminated. Landlord shall be entitled to any
excess with no credit to Tenant. Landlord may, in its sole discretion, make demand on Tenant as aforesaid on any one or more occasions, and any suit brought by Landlord to enforce collection of such
difference for any one month shall not prejudice Landlord's right to enforce the collection of any difference for any subsequent month or months. In addition to the foregoing, and without regard to
whether this Lease has been terminated, Tenant shall pay to Landlord all costs incurred by Landlord, including reasonable attorneys' fees, with respect to any lawsuit or action instituted or taken by
Landlord to enforce the provisions of this Lease. Tenant's liability shall survive the institution of summary proceedings and the issuance of any warrant hereunder. 

        (b)   If
Landlord determines that it is impracticable or extremely difficult to fix the actual damages, then, as an alternative to the remedy set forth in subparagraph (a),
Tenant will pay to Landlord on demand, liquidated and agreed final damages for Tenant's default calculated in accordance with this paragraph. Liquidated damages hereunder shall be an amount equal to
the excess, if any, of (i) all Monthly Base Rent and Additional Rent payable under this Lease from the date of such demand for what would be the then unexpired term of this Lease in the absence
of such termination, over (ii) the then fair market rental value of the Demised Premises (as determined by Landlord). If any law shall limit the amount agreed upon, Landlord shall be entitled
to the maximum amount allowable under such law. Nothing herein shall be construed to affect or prejudice Landlord's right to prove, and claim in full, unpaid rent accrued prior to termination of this
Lease. 

        20.4    Tenant's Waiver.    Tenant, on its own behalf and on behalf of all persons claiming through or under Tenant,
including, but not limited to, all creditors, does hereby specifically waive any and all rights and privileges which Tenant and all such persons might otherwise have under any present or future law
(a) to the service of any notice to quit or of Landlord's intention to re-enter or to institute legal proceedings, which notice may otherwise be required to be given, (b) to redeem the
Demised Premises, (c) to re-enter or repossess the Demised Premises, (d) to restore the operation of this Lease with respect to any dispossession of Tenant by judgment or warrant of any
court or judge, or any re-entry by Landlord, or any expiration or termination of this Lease, whether such dispossession, re-entry, expiration or termination shall be by operation of law or pursuant to
the provisions of this Lease or (e) to the benefit of any law which exempts property from liability for debt or for distress for rent. 

        20.5    Landlord's Lien.    [Intentionally omitted.] 

        20.6    Remedies Cumulative.    Pursuit of any of the foregoing remedies shall not preclude Landlord from pursuing any
other remedies herein or at law or in equity provided, nor shall pursuit of any remedy by Landlord constitute a forfeiture or waiver of any Monthly Base Rent or 

28

 

Additional
Rent due hereunder or of any damages accruing to Landlord by reason of Tenant's violation of any provisions of this Lease. If any Event of Default occurs under this Lease, then regardless
of what remedy Landlord elects to pursue, Landlord shall be entitled to collect all expenses incurred by Landlord in connection therewith, including, but not limited to, reasonable attorneys' fees. 

        20.7    Tenant's Agent for Process.    [Intentionally omitted.] 

        21.    Utilities and Services    

        21.1    Landlord to Furnish.    Landlord covenants and agrees that it will, without additional charge, other than as
included in Operating Expenses, furnish the following services: 

        (a)   At
least one elevator, for common use, subject to call at all times, including Saturdays, Sundays and Holidays (it being understood and agreed that the phrase "for
common use, subject to call at all times" shall not preclude Landlord from requiring the use of a card key for operation of the elevators between the hours of 6:00 p.m. through 8:00 a.m.
Monday through Friday and all day on Saturdays, Sundays and Holidays); 

        (b)   Janitorial
and char services in accordance with the cleaning specifications (which are attached hereto as Exhibit F and made a part hereof) in a manner comparable
to the manner in which such services are provided in comparable first class office buildings in Washington, D.C., Monday through Friday of each week after 6:00 p.m., except Holidays; 

        (c)   Central
heating and air conditioning from 8:00 a.m. until 8:00 p.m. on weekdays and from 9:00 a.m. until 4:00 p.m. on Saturdays, exclusive of
Holidays, during the seasons of the year and within the temperature ranges usually furnished in comparable office buildings in Washington, D.C. Landlord shall provide heat and air conditioning at
other times at Tenant's expense, provided that Tenant gives Landlord notice by 1:00 p.m. on weekdays for after-hour service on the next weekday, two (2) business days' notice before a
Holiday for service on such Holiday and two (2) business days' notice for after-hour service on Saturday or Sunday. Landlord hereby represents and warrants to Tenant that the Building has been
designed to provide heating and air conditioning in accordance with the following specifications: 

	Outdoor Conditions:
	

Summer:	
 	

95° dry bulb, 78° F wet bulb
	Winter:	 	0° F dry bulb
	

Inside Conditions:
	

Summer:	
 	

75° F dry bulb (± 2° F)
	Winter:	 	72° F dry bulb (± 2° F)

assuming
the proper functioning of the heating and air conditioning equipment and proper distribution of such heating and cooling through the distribution system which Tenant will install as part of
Tenant's Work, but Tenant acknowledges that Landlord's provision of the foregoing information is not, and is not intended to be, a representation, warranty or covenant on the part of Landlord that the
heating and air conditioning system serving the Building and the Demised Premises will actually provide heating and air conditioning in the Demised Premises in accordance with such design
specifications; 

        (d)   Replacement
of standard light tubes and standard light bulbs; 

29

  

        (e)   Restroom
facilities and necessary lavatory supplies, including hot and cold running water at the points of supply, provided for general use, excluding any equipment or
appliance requiring heavier than normal use of water, and routine maintenance for all public areas of the Building; 

        (f)    Uninterrupted
access to the Demised Premises 365 days a year, 24 hours a day, subject to such reasonable access control procedures, restrictions and other regulations as
Landlord may promulgate; 

        (g)   For
Tenant, the greater of (i) forty-seven (47) directory listings in the Building lobby directory, or (ii) the number of directory listings in the
Building lobby directory which is equal to the same proportion of all spaces for listings on the lobby directory as the rentable square footage of the Demised Premises bears to the rentable square
footage of office area in the Building; 

        (h)   Landlord
shall provide Tenant with after-hours access to the Building via an electronic or other access control system; and 

        (i)    Electric
service to the Demised Premises as set forth in subsections C.2 and C.3 of Exhibit F to this Lease. 

        21.2    Recycling.    Without limiting the foregoing, Tenant covenants and agrees, at its sole cost and expense, to
comply with all present and future laws, orders, and regulations of the jurisdiction in which the Demised Premises are located, federal, municipal, and local governments, departments, commissions,
agencies and boards to the extent that they or this Lease impose on Tenant duties and responsibilities regarding the collection, sorting, separation, and recycling of trash. Tenant shall pay all
costs, expenses, fines, penalties, or damages that may be imposed on Landlord or Tenant by reason of Tenant's failure to comply with the provisions of this Section and, at Tenant's sole cost
and expense, shall indemnify, defend and hold Landlord harmless (including legal fees and expenses) from and against any actions, claims, and suits arising from such noncompliance, using counsel
reasonably satisfactory to Landlord. 

        21.3    Charges to Tenant.    Overtime HVAC services will be provided upon Tenant's request and will be charged to
Tenant at such rates as Landlord shall reasonably determine. 

        21.4    Repairs; Interruptions.    Landlord reserves the right to interrupt, curtail, stop or suspend (i) the
furnishing of heat and air conditioning, electrical services, elevator, janitor and char services and (ii) the operation of the water and sewer systems, when necessary by reason of accident or
emergency, or for repairs, alterations, replacements or improvements which in the reasonable judgment of Landlord are desirable or necessary to be made; or in the event of difficulty or inability in
securing supplies or labor by Landlord, or any other cause, until the cause has been removed. There shall be no diminution or abatement of Monthly Base Rent or Additional Rent or other compensation
due from Tenant to Landlord hereunder, and Landlord shall have no responsibility or liability for any such interruption, curtailment, stoppage or suspension of services or systems as provided
in this paragraph, except that Landlord shall exercise reasonable diligence to eliminate the cause of same. Notwithstanding the foregoing, in the event any essential service [it being
agreed that the service described in Paragraph 21.1(d) is not essential] is interrupted (A) for a period of five (5) consecutive business days and such interruption is
not due to the fault of Tenant or any circumstance which would be governed by the provisions of Paragraph 42 hereof, Tenant shall be permitted to abate Base Rent and Additional Rent coming due under
Paragraph 6 hereof commencing on the sixth (6th) consecutive business day of such interruption, or (B) for a period of ten (10) consecutive business days and such interruption is not due
to the fault of Tenant but is due to a circumstance which would be governed by the provisions of Paragraph 42 hereof, Tenant shall be permitted to abate Base Rent and Additional Rent coming due under
Paragraph 6 

30

 

hereof
commencing on the eleventh (11th) consecutive business day of such interruption, and, in each case [i.e., in the case of an
interruption which is described in clause (A) of this sentence and in the case of an interruption which is described in clause (B) of this sentence], such abatement shall
continue until such utility is restored, but the foregoing abatement shall be applicable only in those circumstances where the interruption of the utility materially adversely affects Tenant's ability
to conduct business in the Demised Premises; provided, however, that with respect to the abatement of Rent based upon an interruption in the service which is described in Paragraph
21.1.(b) hereof, and which qualifies for rent abatement under either clause (A) of this sentence or clause (B) of this sentence, there shall be no abatement of Additional Rent and
the abatement of Base Rent shall be limited to an amount equal to the actual cost, determined on a per square foot basis with respect to the rentable square footage of the Demised Premises, of
Landlord's provision of such janitorial and char services to the Demised Premises. 

        21.5    Government or Other Requirements.    If any public utility, insurance carrier, or governmental body shall
require Landlord or Tenant to restrict the consumption of any utility or reduce any service to the Demised Premises or the Building, Landlord and Tenant shall comply with such requirements whether or
not the utilities and services referred to in this paragraph are thereby reduced or otherwise affected, without any abatement, reduction, set-off, rebate or adjustment of the Monthly Base Rent or
Additional Rent. 

        21.6    Access.    Upon such notice to Tenant as is reasonable under the circumstances (which notice may be given
orally and which notice shall not be required in the event of an emergency), Landlord and its agents shall be permitted reasonable access to the Demised Premises and the right to install facilities
within or through the Demised Premises in order to install and service the systems deemed necessary by Landlord to provide to other tenants of the Building the services and utilities referred to in
this paragraph. In the exercise of its right of access pursuant to this Paragraph 21.6, Landlord shall (i) use
reasonable efforts to minimize any interference with the conduct of Tenant's business operations in the Demised Premises and (ii) use its best efforts to avoid the necessity of Tenant having to
cease its business operations in the Demised Premises because of the work being performed by Landlord therein. 

        21.7    Fitness Facility.    Landlord will construct, at Landlord's expense (including, but not limited to, the
construction costs of the initial buildout), a fitness center in the Building not exceeding 3,000 rentable square feet and of not less than approximately 2,000 rentable square feet (the "Fitness
Facility"). The Fitness Facility shall be operated and maintained for the exclusive use of Landlord, its agents, employees or invitees and the office tenants of the Building, including Tenant and its
employees; provided, however, that (i) Landlord shall not be required to provide an attendant for the Fitness Facility, and (ii) such use shall be at Tenant's sole risk and Landlord assumes no
liability therefor. Admission to the Fitness Facility will be obtained through the use of the Building security system. Use of the Fitness Facility and the hours of operation thereof will be subject
to such rules and regulations that Landlord or its agent may promulgate, and amend, from time to time. It is understood that no person shall be entitled to use the Fitness Facility until
(a) such person has signed a waiver to be prepared by Landlord, and (b) if Landlord charges a fee for the use of the Fitness Facility, until such person has paid such fee; it being
understood and agreed that Landlord shall not charge any fees for use of the Fitness Facility, other than for specialty services. The Fitness Facility shall contain separate men's and women's locker
rooms each containing no less than two (2) shower stalls, which will be kept clean and tidy throughout each day of the week. Cleaning will be extended to weekends and Holidays if permitted use
warrants. All out-of-pocket expenses of operating the Fitness Facility (including, but not limited to, equipment leases but excluding any rental payments for the premises occupied by the Fitness
Facility) other than the initial construction and the initial equipment installed therein shall be includable in Operating Expenses (it being agreed that all equipment installed in the Fitness 

31

 

Facility
shall be leased and not purchased by Landlord). Any fees charged by Landlord for use of the Fitness Facility, other than specialty fees for specific services (which will be applied to the
cost of such specific services) shall be an offset against Operating Expenses. Provided that this indemnity shall not apply as to any such employee, agent or invitee as to whom Tenant has delivered to
Landlord a release and waiver of claims and liabilities in favor of Landlord and executed by such employee, agent or invitee and by Tenant, in a form provided by Landlord, Tenant agrees to indemnify
and hold harmless Landlord for any loss, liability or other cost (including, but not limited to, reasonable attorneys' fees) Landlord may suffer arising out of any injury to any employee, agent or
invitee of Tenant in the Fitness Facility irrespective of whether such person is authorized to use the Fitness Facility; provided, however, that the foregoing shall not apply to any such injury that
results from Landlord's, its agents', employees' or contractors' failure to properly maintain the Fitness Facility or the equipment installed therein or from the negligence or willful misconduct of
Landlord or its agents, employees or contractors. Landlord reserves the right to change the location (but not the maximum or minimum size) of the Fitness Facility within the Building at any time and
from time to time; provided that Landlord provides Tenant with prior written notice of such relocation, and that Landlord promptly commences and diligently pursues to completion such relocation such
that the Fitness Facility shall not be out of operation for more than twenty (20) days as the result of any such relocation thereof by Landlord. 

        22.    Insurance    

        22.1    Liability Insurance.    

        (a)   Tenant,
at Tenant's expense, shall carry and keep in full force and effect at all times during the Term of this Lease for the protection of Landlord and Tenant, an
Insurance Services Office ("ISO") commercial general liability insurance policy, or its equivalent, or such successor comparable form of coverage in the broadest form then available written on an
"occurrence basis", including, without limitation, blanket contractual liability coverage, broad form property damage coverage, independent contractor's coverage and personal injury coverage, of not
less than $3,000,000 combined single limit per occurrence for bodily injury (including death) or property damage, with an insurance company approved by Landlord, and deliver to Landlord a copy of said
policy or certificate showing the same to be in full force and effect. 

        (b)   If
Tenant makes use of any automobile(s) in the normal course of its business, Tenant shall carry and maintain comprehensive automobile liability insurance for owned,
non-owned, and hired vehicles with limits for each occurrence of not less than One Million Dollars ($1,000,000) with respect to bodily injury or death and One Million Dollars ($1,000,000) with respect
to property damage. 

        22.2    Tenant's Property Insurance and Other Insurance.    Tenant, agrees that it shall, at all times during the Term
of this Lease, at Tenant's own expense, keep in full force and effect the following coverages: 

        (a)   "All-risk"
or "special" insurance coverage for property damage, with full replacement cost endorsement, covering all of Tenant's personal property in the Demised
Premises and all leasehold improvements in the Demised Premises, regardless of whether installed by Landlord, Tenant or by whomever else installed. All proceeds of such insurance shall be used to
repair or replace the items so insured. 

        (b)   Business
interruption coverage in an amount sufficient to continue in business for a period of nine (9) months, including loss of rents coverage payable to
Landlord. Tenant's insurance shall be primary to any other policies that may be in effect. 

        (c)   Worker's
compensation and employer's liability insurance in form and amounts required by law and reasonably satisfactory to Landlord. 

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        22.3    Policy Requirements.    The insurance policies required by Paragraphs 22.1 and 22.2 hereof and any other
insurance policies carried by Tenant with respect to the Demised Premises shall (i) be issued in form acceptable to Landlord by good and solvent insurance companies qualified to do business in
the
jurisdiction in which the Building is located and approved by Landlord; (ii) designate as additional insureds Landlord, Cafritz Company, mortgagees and ground lessors with respect to the Land
or the Building, and any other parties in interest from time to time designated in writing by notice from Landlord to Tenant; (iii) be written as primary policy coverage and not contributing to
or in excess of any coverage which Landlord may carry; (iv) provide for thirty (30) days prior written notice to Landlord of any cancellation or non-renewal of, or any material change which affects
the amount or scope of coverage in, such policy or any defaults thereunder; and (v) contain an express waiver of any right of subrogation by the insurance company against Landlord, Cafritz
Company, mortgagees and ground lessors with respect to the Land or the Building, and the employees and agents of each of the foregoing. Neither the issuance of, nor failure to carry any insurance
policy required hereunder nor the minimum limits specified herein with respect to Tenant's insurance coverage shall be deemed to limit or restrict in any way Tenant's liability arising under or out of
this Lease. 

        On
or before the Lease Commencement Date and, thereafter, not less than thirty (30) days before the expiration of the insurance policy in question, Tenant shall deliver to Landlord a
certificate of insurance issued by the insurer or its agent. Such certificate shall name the Landlord and Landlord's managing agent, mortgagees and others designated by Landlord, as additional
insureds. 

        22.4    Additional Insurance.    Tenant, at its expense, shall obtain such additional amounts of insurance and such
additional types of coverage as Landlord may reasonably request from time to time [but not more than once per calendar year, based upon the amounts and types of coverages required with
respect to other comparable first-class office buildings in the Central Business District of Washington, D.C., taking into account the age, finishes on the Lease Commencement Date, method of
construction and system design of such comparable buildings ("Comparable "Buildings")]. 

        22.5    Effect of Tenant's Activities on Insurance.    Tenant shall not conduct or permit to be conducted any
activity, or place any equipment in or about the Land, the Building or the Demised Premises which will increase the rate of, or make void or voidable, any fire or other insurance maintained or
required to be maintained by Landlord or any mortgagee on the Building, the Land or the property kept thereon or therein, which will conflict with the provisions of any such insurance policy or which
will make it impracticable for Landlord to obtain insurance covering any risks against which Landlord reasonably deems it advisable to obtain insurance. In the event any increases in the rates of such
insurance are, in Landlord's reasonable judgement, due to Tenant's presence in the Building, to any activity conducted or property installed or placed by Tenant on or about the Land, the Building or
the Demised Premises or to Alterations installed by Tenant or at Tenant's request (other than Building Standard Work, as defined in the Work Agreement), Tenant shall reimburse Landlord for the amount
of such increases promptly upon demand therefor. Statements by the applicable insurance company or insurance rating bureau that such increases are due to any activity, property or improvements shall
be conclusive for the purposes of determining Tenant's liability hereunder. 

        22.6    Termination Right.    Landlord shall have the right to terminate this Lease upon ninety (90) days notice to
Tenant in the event Landlord receives notice from any of Landlord's insurance carriers that such carrier intends to cancel its insurance on the Building, or to increase the cost of such insurance by
more than one hundred percent (100%) above the premium payable by Landlord immediately prior to such notice, due to the activities of Tenant or the presence of Tenant in the Building; provided,
however, that if Landlord receives written notice from its insurance carrier that such carrier intends to cancel its insurance on the Building or to increase the 

33

 

cost
of such insurance by more than one hundred percent (100%) above the premium payable by Landlord immediately prior to such notice and Landlord is provided with the opportunity to cure such
condition or circumstance by a specific date in order to avoid such cancellation or increase, Landlord shall, within two (2) business days following Landlord's receipt of same, provide Tenant
with a copy of such notice and Tenant shall have the right to effect the cure of such condition or circumstance prior to the date specified in the insurance carrier's notice to Landlord. However,
Landlord shall not terminate this Lease in the event Landlord is able, with good faith efforts, to obtain equivalent insurance from an insurance carrier satisfactory to Landlord at a premium not more
than one hundred percent (100%) greater than the premium for the canceled insurance; provided that Tenant shall reimburse Landlord for all additional premiums charged to Landlord by such new insurance
carrier. Notwithstanding anything to the contrary set forth in this Paragraph 22.6, Landlord shall not have the right to terminate this Lease pursuant to this Paragraph 22.6 based upon Landlord's
insurance carrier's intended cancellation of its insurance on the Building or intended increase in the cost of such insurance by more than one hundred percent (100%) above the premium payable by
Landlord immediately prior to such notice if Tenant's use of the Demised Premises is in accordance with the provisions of Paragraph 12 hereof regarding use of the Demised Premises and Tenant is
otherwise in compliance with all of its obligations under this Lease and under all laws and governmental regulations which are applicable with respect to the Demised Premises. 

        22.7    Tenant's Contractor's Insurance.    (a) Tenant shall require any contractor of Tenant performing work
on the Demised Premises to carry and maintain, at no expense to Landlord: 

        (i)    Commercial
comprehensive general liability insurance, on a standard ISO form or its equivalent, which shall include independent contractor's liability coverage,
contractual liability coverage, products and completed operations coverage, and a "per project" endorsement, to afford protection, with limits for each occurrence, of not less than Five Million
Dollars ($5,000,000) combined single limit with respect to bodily injury and property damage; 

        (ii)   comprehensive
automobile liability insurance for owned, non-owned, and hired vehicles with limits for each occurrence of not less than Three Million Dollars
($3,000,000) with respect to bodily injury or death and One Million Dollars ($1,000,000) with respect to property damage; and 

        (iii)  worker's
compensation and employer's liability insurance in form and amounts required by law and satisfactory to Landlord. 

        (b)   Tenant
shall require and cause all of its contractor(s) performing work or services in or to the Demised Premises (i) to waive subrogation against Landlord, and
its partners, directors, officers, employees, agents and mortgagees, and (ii) to hold harmless, defend and indemnify Landlord, and its partners, directors, officers, employees, agents and
mortgagees, against any and all claims arising from any contractor's work or operations, except such injuries as are caused by Landlord's sole negligence, and such waiver shall be so stated in all
insurance policies which such contractor(s) are required to provide in accordance with this Paragraph 22.7(b). 

        (c)   Tenant
shall not permit or suffer any contractor to commence any work in the Building or the Demised Premises until Tenant has provided Landlord with a valid copy of
such contractor's certificate of insurance satisfying the above requirements. 

        22.8    Landlord's Insurance.    

        Landlord
shall maintain in force such "all risk" property insurance and liability insurance with respect to the Building as are required by any first mortgagee or ground lessor or, if at
any time there 

34

 

is
no first mortgagee and no ground lessor, Landlord shall maintain in force such property insurance and liability insurance as Landlord, in its reasonable judgment, determines to be appropriate based
upon coverages in force with respect to comparable buildings in downtown Washington, D.C.; provided, however, that in no event shall the property insurance be less than what would be required to
prevent Landlord from being considered a co-insurer. 

        23.    Waiver of Subrogation    

        Landlord
and Tenant each hereby release the other and its agents and employees, from any claims for damage or loss to any person or to the Demised Premises, the Building, the Land and
any property contained therein or thereon, caused by or resulting from any risks insured against under any insurance policies carried or required by this Lease to be carried by Landlord or Tenant and
in force at the time of any such damage or loss, regardless of the cause of the damage or loss (including the negligence of Landlord or Tenant or their respective agents or employees) to the extent of
proceeds actually recovered. 

        24.    Property at Tenant's Risk    

        All
Tenant's Personal Property and all personal property of Tenant's agents, employees, contractors or invitees in the Demised Premises shall remain at Tenant's sole risk and Landlord
shall not assume any liability or be liable for any damage to or loss of such personal property, arising from the bursting, overflowing or leaking of the roof or of water, sewer or steam pipes, or
from heating or plumbing fixtures or from the handling of electric wires or fixtures or from any other cause whatsoever. Paragraph 18 of this Lease shall be controlling as to the circumstances
described in that Paragraph. 

        25.    Assignment and Subletting    

        25.1    Consent Required.    

        (a)   Tenant
shall not (i) assign, transfer, mortgage or otherwise encumber, this Lease or any of its rights hereunder, (ii) except as hereinafter provided in
the next sentence, permit the use of the Demised Premises or any part thereof by any persons other than Tenant or its employees, agents and invitees, or (iii) permit the assignment or other
transfer of this Lease or any of Tenant's rights hereunder by operation of law, in each case without the prior written consent of Landlord, which consent may be granted or denied at the sole and
absolute discretion of the Landlord. Landlord agrees that it shall not unreasonably withhold, condition or delay its consent to a proposed subletting, provided that all of the following conditions are
satisfied: (1) there shall be no occurrence of an Event of Default at the time of the proposed subletting, (2) the proposed subtenant shall be creditworthy (considering the portion of
the Demised Premises to be sublet and the length of the proposed sublease term), (3) the proposed subtenant shall not be a governmental entity or a person or entity enjoying sovereign or
diplomatic immunity, (4) the use of the Demised Premises by the proposed subtenant shall not attract a volume, frequency or type of visitor or employee to the Building which is not consistent
with the standards of a high-quality office building, (5) the proposed subtenant shall specifically covenant and agree to perform the obligations of Tenant for the portion of the Demised
Premises subleased hereunder and to occupy the Demised Premises subject to the provisions of this Lease, and (6) Tenant remains liable for the faithful performance of this Lease, and in the
event that fewer than all of the criteria set forth in the foregoing clauses (1) through (6) have been satisfied, Landlord shall have the right to grant or deny its consent in its sole
and absolute discretion. The consent by Landlord to any assignment, transfer, or subletting to any person is not to be construed as a waiver or release of Tenant from any provision of this Lease nor
as a waiver of the necessity for such consent in a subsequent instance. In the event of any subletting, transfer or assignment, Tenant shall remain fully liable as a principal and not as a guarantor
or surety under this Lease. Even if the Landlord accepts or collects rent from any such assignee, transferee, subtenant or 

35

 

occupant,
Tenant will not be released from any provision of this Lease. If Tenant is in default hereunder, Tenant hereby assigns to Landlord the rent due from any subtenant of Tenant and hereby
authorizes each such subtenant to pay said rent directly to Landlord. Payment of such rent directly to Landlord shall not establish a landlord and Tenant relationship between Landlord and said
subtenant. 

        (b)   For
purposes of this paragraph a transfer or transfers of fifty percent (50%) or more in interest of Tenant (whether stock, partnership interest or other form of
ownership or control) by any person or
persons having an interest in ownership or control of Tenant, or the merger of Tenant into another organization after which merger Tenant shall not be the surviving entity, shall be deemed an
assignment of this Lease for which the Landlord's consent must be obtained; provided, however, that Landlord's right to terminate under Paragraph 25.2(a) hereof shall not apply to such
assignment under this Paragraph 25.1(b) if Landlord so consents to it. 

        (c)   Any
lawful levy or sale or execution or other legal process shall be classified as an assignment within the meaning of this Lease, as shall be an adjudication in
bankruptcy, voluntary or involuntary, or an appointment of a receiver by a state or Federal Court, or insolvency of Tenant, or the execution of a deed or other instrument for the benefit of creditors. 

        25.2    Landlord's Options.    

        (a)   If
Tenant desires to assign this Lease, Tenant shall give written notice thereof to Landlord and Landlord may terminate this Lease effective sixty (60) days after
notification by Landlord to Tenant; provided, however, that if Tenant notifies Landlord within ten (10) days after receipt of Landlord's notice that it is withdrawing its request to assign this
Lease, Landlord's notice of termination shall be of no force and effect. 

        (b)   If
Tenant desires to sublet (i) all of the Demised Premises, or (ii) any portion of the Demised Premises consisting of an aggregate of more than 5,000
rentable square feet, Tenant shall first offer in writing ("Tenant's Proposal Notice") to sublet such space to Landlord at the rate of Rent (pro-rated based on square footage) and upon the other
terms, covenants and conditions set forth in this Lease, and said Tenant's Proposal Notice shall set forth the approximate rentable square footage which Tenant proposes to sublease and the approximate
term of such proposed sublease. Landlord shall have thirty (30) days following receipt of Tenant's Proposal Notice in which to elect to sublease the Demised Premises, or said part of the Demised
Premises, at the rate of Rent (pro-rated based on square footage) and upon the other terms, covenants and conditions set forth in this Lease. If Landlord accepts such sublease, Landlord shall notify
Tenant, and Tenant may, within ten (10) days following the date of Landlord's notification to Tenant, withdraw its Tenant's Proposal Notice and the offer contained therein, in the event of
which withdrawal Landlord shall have no right to sublease such space. If Landlord elects to sublease such space from Tenant, Landlord may then freely sublet such space on any terms and conditions it
selects. If Landlord shall fail to give notice of election to sublet the space within the applicable time limit, Tenant may sublet such space to a third party at a rent and upon such terms and
conditions not more favorable to such third party than the Third Party Terms as contained in the writing submitted by Tenant to Landlord as aforesaid, provided however that any such sublease shall be
(a) for a portion of the Demised Premises the rentable square footage of which is not more than twenty percent (20%) different from the number of rentable square feet set forth in Tenant's Proposal
Notice, (b) for a term which is not more than six (6) months longer or shorter than the term contained in Tenant's Proposal Notice, (c) subject to the prior written consent of
Landlord as set forth in Paragraph 25.2(b) hereof as to the proposed sublessee and as to the form of such 

36

 

sublease
and (d) executed by Tenant and the proposed sublessee within one hundred eighty (180) days following the expiration of Landlord's election period. 

        (c)   If
Tenant subleases all or part of the Demised Premises or assigns this Lease at a rent (or other charges) in excess of the sum of (i) the Rent payable to
Landlord hereunder plus (ii) all reasonable expenses actually incurred by Tenant in connection with such subleasing or assignment for marketing expenses, brokerage commissions, attorneys' fees
and Tenant improvements, Landlord shall be entitled to receive fifty percent (50%) of such excess, whether such excess is paid in the form of increased rent, a lump sum or any other form. Landlord,
upon reasonable prior notice but not more often than twice per year, shall have the right to inspect Tenant's books and records with respect to any subleased space. If an audit reveals an underpayment
to Landlord, Tenant shall, within three (3) days, pay Landlord the amount necessary to satisfy such deficiency. If any audit reveals an error of more than five percent (5%) of the total rent
payable to Tenant from any subtenant, then Tenant shall promptly pay all costs and expenses of the audit. 

        (d)   In
the event that Landlord consents to a proposed sublease or assignment by Tenant, Landlord shall have the right to require Tenant to use Landlord's form of sublease or
assignment document, as the case may be, to document such transaction, provided that any such form does not impose any obligations on Tenant or on the proposed subtenant or assignee that are not
provided for in this Lease. 

        (e)   In
the event that Landlord consents to a proposed sublease by Tenant, Landlord shall make available to such subtenant the services which are available to Tenant with
respect to the Demised Premises, but such subtenant shall have no privity with Landlord and no right to proceed against Landlord directly in the event of any failure or interruption of such services;
rather, in the event of any such failure or interruption, subtenant's sole right shall be to request that Tenant pursue such rights as Tenant may have under this Lease with respect to any such failure
or interruption of services. 

        25.3    Costs.    Tenant agrees to pay to Landlord as Additional Rent hereunder an administrative fee in the amount of
One Thousand Five Hundred Dollars ($1,500), plus reasonable attorneys' fees incurred by Landlord, in connection with any request by Tenant for Landlord to give its consent to any assignment, transfer,
mortgage, encumbrance, or subletting by Tenant; provided, however, that Landlord shall waive such administrative fee and other costs under this Paragraph 25.3 for the first two (2) proposed
subleases (the "Initial Proposed Subleases") of which Tenant gives Landlord written notice, provided further that (i) Tenant shall use Landlord's form of sublease for such Initial Proposed
Subleases, with only minimal changes or additions (ii) Tenant shall submit such Initial Proposed Subleases to Landlord for Landlord's approval within six (6) months following the Lease
Commencement Date, (iii) the Initial Proposed Subleases shall be for a portion of the Demised Premises comprising in the aggregate less than 5,000 rentable square feet, and
(iv) Landlord's waiver of such costs shall only apply to such Initial Proposed Sublease whether or not such Initial Proposed Sublease is executed by Landlord, Tenant and the proposed subtenant. 

        25.4    Sublease with Cushman Realty Corporation.    Landlord hereby approves of the sublease by Tenant to Cushman
Realty Corporation ("Cushman") of a portion of the ninth (9th) floor component of the Demised Premises, which portion shall comprise up to approximately 8,898 rentable square feet, subject to
Landlord's approval of the form of sublease agreement (the "Cushman Sublease") between Tenant and Cushman, which approval shall not be unreasonably withheld, conditioned or delayed if the Cushman
Sublease does not purport to afford Cushman the right to enforce any of the provisions of this Lease or of said sublease against Landlord. Landlord hereby waives the administrative fee which is
provided for in Paragraph 25.3 hereof (but not the reasonable attorneys' fees incurred by Landlord) with respect to the Cushman Sublease. The provisions of this Paragraph 25.4 shall be in addition to
those set forth in Paragraph 25.3 hereof with respect to the Initial Proposed Subleases and the Cushman Sublease shall not constitute one of the Initial Proposed Subleases. 

37

   
        26.    Signs    

        No
sign, advertisement or notice shall be affixed or displayed on the windows or exterior walls of the Demised Premises or on any public area of the Building, except the directories and
the office doors, and then only in such places, numbers, size, colors, formats and styles as are approved by Landlord in its sole and absolute discretion and which conform to all applicable laws
and/or ordinances. Landlord shall, at all times, have the right to remove any sign, advertisement or notice, which is placed without Landlord's prior written approval. Tenant shall be liable for any
and all expenses incurred by Landlord in connection with such removal. Notwithstanding the foregoing, Tenant may install on all full floors leased by Tenant, Tenant's interior sign of such size,
materials, design, color and method of fabrication as are approved by Landlord in its sole and absolute discretion and which conform to all applicable laws and/or ordinances. 

        Provided
that (i) Tenant is leasing (and only during the continuance of such lease) at least two (2) entire floors of the Building (which Landlord hereby acknowledges is
the case as of the date of execution of this Lease) and occupying (and only during the continuance of such occupancy) at least one (1) full floor of the Building, and (ii) there is no Event of
Default then existing, Tenant shall have the right to display its sign on the facade of the Building at street level in a location which is determined by Landlord in its sole and absolute discretion.
Tenant shall submit to Landlord Tenant's plans and specifications for such exterior sign, which plans and specifications (including, but not limited to, the height, width, depth, materials, design,
color and method of fabrication of such sign) shall be subject to Landlord's prior written approval, in Landlord's sole and absolute discretion. Tenant shall be responsible for the installation,
maintenance, repair and replacement of any such exterior sign and shall bear all costs thereof. At all times during the Term that such exterior sign may be displayed on the Building, Tenant shall
ensure that such exterior sign complies with all applicable laws and governmental regulations and shall maintain any such exterior sign in compliance with the requirements of this Lease. 

        27.    Rules and Regulations    

        Tenant
shall comply with the rules and regulations set forth in Exhibit C attached hereto and with any additions thereto and modifications thereof adopted from time to time
by Landlord which are generally applicable to all office tenants in the Building, and of which Tenant is notified, and each such rule or regulation shall be deemed to be a covenant of this
Lease to be performed and observed by Tenant. Landlord shall use reasonable good faith efforts to avoid discrimination against Tenant in its enforcement of the rules and regulations. 

        28.    Landlord Access    

        Landlord
may enter the Demised Premises at any time in case of any emergency and at reasonable hours (i) to exhibit the same to prospective purchasers, mortgagees or, within the
last twelve (12) months of the Term of the Lease, tenants, (ii) to inspect the Demised Premises to see that Tenant is complying with all its obligations hereunder, (iii) to make repairs
required of Landlord under the terms hereof or (iv) to make repairs to any adjoining property of Landlord or any entity affiliated with Landlord. 

        29.    Subordination    

        29.1    Automatic Subordination.    This Lease is subject and subordinate to the lien of any and all mortgages (which
term "mortgages" shall include deeds of trust and similar security instruments) and ground or other underlying leases which may now or hereafter encumber or otherwise affect the Land, the Building, or
both, as well as the obligation to pay any and all renewals, extensions, modifications, recastings or refinancing thereof; provided, however, that in the event the mortgagee under any such mortgage,
or ground lessor under any such ground lease, shall require this Lease to be superior and paramount to such mortgage or ground lease, Tenant agrees to execute and deliver any documents required for
such purpose within five (5) days after delivery of such documents to Tenant. 

38

 

        29.2    Instruments of Subordination.    This paragraph shall be self-operative and no further instruments of
subordination need be required by any mortgagee, trustee or Ground Lessor. Nevertheless, if requested by Landlord, Tenant shall promptly execute any certificate or other document specified by Landlord
in confirmation of this subordination. Tenant agrees that, if any proceedings are brought for the foreclosure of any such mortgage, Tenant, if requested to do so by the purchaser at the foreclosure
sale, shall attorn to the purchaser, shall recognize the purchaser as Landlord under this Lease, and shall make all payments required hereunder to such new Landlord without deduction or setoff, and
Landlord agrees that Tenant shall have no liability to Landlord for any payments which Tenant makes to such purchaser in accordance with this Lease. Tenant waives the provisions of any law or
regulation, now or hereafter in effect, which may give or purport to give Tenant any right to terminate or otherwise adversely affect this Lease or the obligations of Tenant hereunder in the event
that any such foreclosure or termination or other proceeding is prosecuted or completed. Landlord shall (a) obtain from the current mortgagee of the Building and the Land (the "Current
Mortgagee") a non-disturbance agreement for the benefit of Tenant in such Current Mortgagee's current form (and Landlord shall pay any fee imposed by the Current Mortgagee related thereto);
(b) obtain from any future mortgagee of the Building and the Land Which places a mortgage thereon prior to December 1, 2001 (a "Pre-December 1, 2001 Mortgagee") a non-disturbance
agreement for the benefit of Tenant in such Pre-December 1, 2001 Mortgagee's current form (and Landlord shall pay any fee imposed by such Pre-December 1, 2001 Mortgagee related thereto);
(c) during the initial Term of this Lease, provided that (1) Tenant's net worth in excess of good will is at least Six Million Dollars ($6,000,000.00) and (2) there does not then
exist any default with respect to the payment of Rent under this Lease or any Event of Default of any nature, obtain from any mortgagee of the Building and the Land which places a mortgage thereon on
or after December 1, 2001 (each a "Future Mortgagee") a non-disturbance agreement for the benefit of Tenant in such Future Mortgagee's then current form; and (d) use reasonable efforts
to obtain from any Future Mortgagee (other than any Pre-December 1, 2001 Mortgagee and any Future Mortgagee where all of the conditions set forth in the immediately preceding clause
(c) have been satisfied) a non-disturbance agreement for the benefit of Tenant in such Future Mortgagee's then current form; provided, however, that (i) notwithstanding any other
provision of this Paragraph 29, this Lease shall not be subordinate to the deed of trust for the benefit of the Current Mortgagee, any Pre-December 1, 2001 Mortgagee or Future Mortgagee with
respect to which all of the conditions set forth in clause (c) of this sentence have been satisfied unless Landlord obtains from the Current Mortgagee, Pre-December 1, 2001 Mortgagee or Future
Mortgagee with respect to which all of the conditions set forth in clause (c) have been satisfied, as applicable, a non-disturbance agreement in the then current form of such Current Mortgagee,
any Pre-December 1, 2001 Mortgagee or Future Mortgagee with respect to which all of the conditions set forth in clause (c) of this sentence have been satisfied, as applicable,
(ii) in the event that Landlord does not obtain a non-disturbance agreement which it is obligated to obtain pursuant to Paragraph 29.2(a) hereof, then Tenant's sole remedy shall be that
this Lease shall not be subject and subordinate to the lien of the deed of trust or mortgage for the benefit of the Current Mortgagee, any Pre-December 1, 2001 Mortgagee or Future Mortgagee
with respect to which all of the conditions set forth in clause (c) of this sentence have been satisfied, as applicable, and Landlord shall have no liability to Tenant on account of Landlord's
failure to obtain a non-disturbance agreement, (iii) Tenant shall pay all costs actually incurred by Landlord which are imposed by any Future Mortgagee or ground lessor, as the case may be,
with respect to the negotiation, documentation and processing of such non-disturbance agreement (as opposed to any origination fees, points or increased interest) and (iv) in the event that
Landlord does not obtain any such non-disturbance agreement from any Future Mortgagee (except for any Future Mortgagee as to which all of the conditions set forth in clause (c) of this sentence
have been satisfied) or ground lessor, as the case may be, this Lease shall be and remain subject and subordinate to the lien of said mortgage or ground lease, as the case may be, and to any and all
renewals, extensions, modifications, recastings and refinancings thereof. 

39

 

        30.    Estoppel Certificates; Financial Statements    

        30.1    Estoppel Certificate.    Tenant shall, without charge, at any time and from time to time, within ten
(10) business days of Landlord's request or within ten (10) business days of the request of any ground lessor, if any, the holder of any indebtedness secured by the Land, the Building,
or both, any purchaser of the Land, the Building, or both, or any person designated by Landlord, execute, acknowledge and deliver to such requesting party a written estoppel certificate certifying, as
of the date of such estoppel certificate, the following to the extent that they are true: (a) whether or not Tenant is in possession of the Demised Premises; (b) whether or not this
Lease is unmodified and in full force and effect (or if there has been a modification, that the Lease is in full force and effect as modified and setting forth such modifications); (c) that the
Term has commenced and the full rental is now accruing; (d) the amounts of Monthly Base Rent and Additional Rent currently due and payable by Tenant; (e) that Tenant has accepted
possession of the Demised Premises and is currently operating its business therein; (f) that any improvements required by the Lease have been made by Landlord to the satisfaction of Tenant;
(g) whether or not there are then existing any setoffs, charges, liens, claims or defenses against the enforcement of any right hereunder, including Monthly Base Rent or Additional Rent (and,
if so, specifying the same in detail); (h) that no Monthly Base Rent (except the first installment thereof) had been paid more than thirty (30) days in advance of its due date; (i) that
Tenant has no knowledge of any then uncured defaults by Landlord of its obligations under this Lease (or, if Tenant has such knowledge, specifying the same in detail); (j) that Tenant is not in
default; (k) that the address to which notices to Tenant should be sent is as set forth in the Lease (or, if not, specifying the correct address); and (l) any other certifications requested by
Landlord. Any statement delivered pursuant to this paragraph may be relied on by an owner of the Building, any prospective purchaser of the Building, any ground lessor or prospective ground lessor,
any mortgagee or prospective mortgagee of the Building, the Land or both or of Landlord's interest therein, or any prospective assignee of such mortgagee. Landlord shall, without charge, within thirty
(30) days after receipt of any request therefor from Tenant, execute and deliver to Tenant a certificate stating to Landlord's knowledge and to the extent accurate: (i) whether this Lease is
unmodified and in full force and effect (or if there have been modifications, that this Lease is in full force and effect and setting forth all such modifications); (ii) whether there then exist any
defenses against the enforcement of any right of Tenant hereunder (and, if so, specifying the same in detail); (iii) the dates to which Rent and any other charges hereunder have been paid by
Tenant; (iv) whether Landlord has knowledge of any then uncured defaults under this Lease (or, if Landlord has knowledge of any such defaults, specifying the same in detail); (v) whether
Landlord has knowledge of any event that will or may result in the termination of this Lease (or if Landlord has such knowledge, specifying the same in detail); and (vi) the address to which
notices to Landlord are to be sent; provided, however, that in no event may Tenant request that Landlord provide such a certificate more than once in any twelve (12) month period of the Term of this
Lease, unless Tenant's request therefor is required by any proposed transfer or sale of Tenant's ownership interests or the financing of Tenant's equipment located within the Demised Premises. 

        30.2    Financial Statements.    Tenant covenants and agrees that, not more frequently than once a year (except in the
event of a proposed or actual sale or financing of the Building, the Land or both) at any time, within thirty (30) days after notice and demand by Landlord, Tenant will furnish to Landlord certified
financial statements as of the end of Tenant's last calendar year and Tenant consents to the delivery of same by Landlord to lenders or prospective lenders or purchasers of all or part of the
Building, the Land or both or of any interest therein. Notwithstanding the foregoing, in the event that if, after Tenant provides such financial statement to Landlord following Landlord's request
therefor, Tenant's financial statement is changed, Tenant shall provide Landlord with a revised financial statement within ten (10) days following the date of its preparation. Landlord shall
use reasonable efforts to preserve the confidentiality of the information contained in such statements, except for (a) employees of Landlord and Landlord's asset manager, property 

40

 

manager,
accountants and attorneys and others who provide services to Landlord and have a reasonable need to have access to such information, (b) prospective purchasers of the Land, the
Building or both or any interest therein, and (c) prospective lenders to Landlord, all of whom shall be advised by Landlord of the provisions of this Paragraph 30.2. and shall acknowledge in writing
to Landlord their own obligation to use reasonable efforts to preserve the confidentiality of such information. 

        31.    Hold-Over    

        If
Tenant shall not immediately surrender the Demised Premises on the day after the expiration or termination of the Term, then Tenant shall, by virtue of this Lease, become a Tenant at
sufferance (i) during the first sixty (60) days of such holdover occupancy at a monthly rental equal to one hundred fifty percent (150%) of the Monthly Base Rent due under the terms of this
Lease, and (ii) thereafter, at a monthly rental equal to two hundred percent (200%) of the Monthly Base Rent due under the terms of this Lease. Tenant, as a Tenant at sufferance, shall be
subject to all of the conditions and covenants of this Lease (including payment of Additional Rent) as though the tenancy had originally been a monthly tenancy. During any holdover period each party
shall give to the other at least thirty (30) days prior written notice to quit the Demised Premises, except in the event of a nonpayment of Monthly Base Rent or of Additional Rent when due, or of the
breach of any other covenant by Tenant, in either of which events Tenant shall not be entitled to any notice to quit, the usual thirty (30) days notice to quit being expressly waived; provided,
however, that in the event that Tenant shall hold over after expiration of the Term, then at any time prior to the acceptance, Landlord, at its election or option, may re-enter and take possession of
the Demised Premises forthwith, without process, or by any legal action or process in force in the jurisdiction in which the Building is located. 

        32.    Quiet Enjoyment    

        Landlord
covenants that it has the right to make this Lease and that, if Tenant pays all of the Monthly Base Rent and the Additional Rent, performs all of its obligations provided for
hereunder and observes all of the other provisions hereof, Tenant shall have the right, during the Term and subject to the provisions of this Lease, to quietly occupy and enjoy the Demised Premises
without hindrance by
Landlord or its successors and assigns, subject to the provisions of this Lease, including, without limitation, Paragraphs 29 and 31 hereof. In the performance of, and in permitting the performance
of, any work in connection with the buildout of premises on floors immediately above and below the Demised Premises, Landlord shall use reasonable efforts to avoid unreasonable interference with
Tenant's business operations during the Building's normal business hours, and Landlord shall perform any required core drilling on such floors during hours other than the Building's normal business
hours (except for emergencies), and shall use reasonable efforts (except for emergencies) to perform the placement of wall studs on such floors before 9:00 a.m. (except that this sentence shall
not apply as to weekends or Holidays). 

        33.    Certain Rights Reserved by Landlord    

        Landlord
shall have the following rights, exercisable without notice and without liability to Tenant for damage or injury to property, person or business and without effecting any
eviction, constructive or actual, or disturbance of Tenant's use or possession of the Demised Premises or giving rise to any claim for setoff or abatement of Monthly Base Rent or Additional Rent: 

        (a)   To
change the Building's name or street address upon one hundred twenty (120) days' written notice to Tenant, unless a shorter period is required by a governmental
agency which mandates such change; 

        (b)   To
affix, maintain and remove any and all signs on the exterior and interior of the Building. 

41

 

        (c)   To
designate and approve, prior to installation, all window shades, blinds, drapes, awnings, window ventilators, lighting and other similar equipment to be installed by
Tenant that may be visible from the exterior of the Demised Premises or the Building. 

        (d)   To
decorate or to make repairs, alterations, additions or improvements, whether structural or otherwise, in and about the Building, or any part thereof, including, but
not limited to, the installation of a sprinkler system and sprinkler heads, and for such purposes to enter the Demised Premises and, during the continuance of any such work, to temporarily close
doors, entry ways, common or public spaces and corridors in the Building and to interrupt or temporarily suspend Building services and facilities, all without affecting any of Tenant's obligations
hereunder, so long as the Demised Premises are reasonably accessible. 

        (e)   To
grant to anyone the exclusive right to conduct any business or render any service in the Building, provided Tenant is not thereby excluded from uses expressly
permitted herein. 

        (f)    To
alter, relocate, reconfigure and reduce the Common Areas of the Building, as long as the Demised Premises remain reasonably accessible. 

        (g)   To
alter, relocate, reconfigure, reduce and withdraw the Common Areas located outside the Building, including parking and access roads, as long as there is not more than
a de minimus adverse effect on Tenant. 

        (h)   To
erect, use and maintain pipes and conduits in and through the Demised Premises. 

        (i)    To
operate and maintain, or cause to be operated and maintained, the Common Areas in a manner deemed by Landlord to be reasonable and appropriate and in the best
interest of the Building, but all Common Areas shall be subject to the exclusive control and management of Landlord. 

        In
exercising its rights under this Paragraph 33, Landlord shall perform any such work in such a manner as to minimize any disruption of Tenant's business operations. 

        34.    Landlord's Successors    

        Landlord
(and any successor or affiliate of Landlord) may freely sell, assign or otherwise transfer all or any portion of its interest under this Lease or in the Demised Premises or the
Building or the Land, and in the event of any such sale, assignment or other transfer, the party originally executing this Lease as Landlord, and any successor or affiliate of such party, shall
without further agreement between Landlord and Tenant or between Landlord and/or Tenant and the person who is the purchaser, assignee or other transferee of Landlord, be relieved of any and all of its
obligations under this Lease, and Tenant shall thereafter be bound to such purchaser, assignee or other transferee, with the same effect as though the latter had been the original Landlord hereunder,
provided that the purchaser, assignee or other transferee assumes and agrees to carry out all the obligations of Landlord hereunder arising after the date of such sale, assignment or transfer. 

        35.    Relocation of Tenant    [Intentionally omitted.] 

        36.    Modifications to Lease    

        In
the event any of Landlord's insurance carriers or any Mortgagee requests modifications to this Lease, Tenant shall execute a written amendment incorporating such requested
modifications within thirty (30) days after the same has been submitted to Tenant by Landlord, provided that such modifications (i) do not adversely affect Tenant's use of the Premises as
herein permitted, (ii) increase the rentals and other sums payable by Tenant hereunder, (iii) do not affect any other economic terms of this Lease (including, but not limited to, the
Tenant Allowance), (iv) do not affect the area, configuration or location of the Demised Premises, (v) do not affect the Term of this Lease (including the Renewal Option, as hereinafter
defined), (vi) do not affect Tenant's expansion rights under Paragraph 56 hereof, (vii) do not affect Tenant's right to lease Available Space (as hereinafter defined), 

42

 

(viii) do
not affect Tenant's right to receive a non-disturbance agreement from the Current Mortgagee upon the terms and conditions set forth in Paragraph 29.2 hereof or Landlord's obligation
to use reasonable efforts to seek a non-disturbance agreement from any other future mortgagee upon the terms and conditions set forth in Paragraph 29.2 hereof, (ix) do not reduce Tenant's cure
periods provided in Paragraph 20 of this Lease or extend any of Landlord's cure periods with respect to a default by Landlord under this Lease, and (x) do not materially adversely affect any of
Tenant's other rights or obligations under this Lease. In the event Tenant refuses or fails to execute such amendment within such 30-day period, Landlord shall have the right, at its sole option, in
addition to Landlord's other remedies for an Event of Default, to terminate and cancel this Lease by written notice to Tenant specifying the date on which this Lease will terminate. From and after
said termination date, both Landlord and Tenant shall be relieved of any and all further obligations hereunder, except liabilities arising prior to the date of termination. 

        37.    Attorneys' Fees    

        In
the event of any default hereunder, Tenant shall pay to Landlord all reasonable attorneys' fees incurred by Landlord in connection with such default or the enforcement of Landlord's
rights or remedies arising in connection therewith, whether or not this Lease is terminated and whether or not Landlord institutes any lawsuit against Tenant as a result of such default. In addition
to the foregoing, whether or not this Lease is terminated, Tenant shall pay to Landlord all other costs incurred by Landlord with respect to any lawsuit instituted or action taken by Landlord to
enforce the provisions of this Lease. 

        38.    Notices    

        All
notices required or desired to be given by either party to the other shall be addressed and sent, by registered or certified mail, return receipt requested, first-class postage
prepaid, or by personal delivery, or overnight mail or courier that provides written notice of delivery to the Landlord's Address, or Tenant's Legal Notice Address, as the case may be. Either party
may, by written notice to the other, designate a new address to which such notices shall be directed. Such communications, if sent by overnight courier or registered or certified mail, shall be deemed
to have been given two (2) days after the date of mailing. If any mortgagee shall notify Tenant in writing that it is the holder of a mortgage
affecting the Demised Premises, no notice, request or demand thereafter sent by Tenant to Landlord shall be effective until a copy of same shall be sent to such mortgagee in the manner prescribed in
this Section at such address as such mortgagee shall designate to Tenant in writing. 

        39.    Remedies Cumulative; No Waiver    

        All
rights and remedies given herein and/or by law or in equity to Landlord are separate, distinct and cumulative, and none of them, whether exercised by Landlord or not, shall be deemed
to be in exclusion of any other. No failure of Landlord to exercise any power given Landlord hereunder, and no custom or practice of the parties at variance with the terms, hereof shall constitute a
waiver of Landlord's right to demand exact compliance with the terms hereof. Receipt by Landlord or payment by Tenant of any Monthly Base Rent or Additional Rent with knowledge of the breach of any
provisions hereof shall not constitute a waiver of such breach or a waiver of any party's rights with respect to any matter which had been disputed in writing and no waiver by Landlord or Tenant of
any provision hereof or of any rights with respect to any matter which had been disputed in writing shall be deemed to have been made unless made in writing. 

43

   
        40.    Final Agreement    

        This
Lease, including all Addenda and Exhibits hereto, is intended by the parties as the final expression of their agreement and as a complete and exclusive statement of the terms
between the parties having been incorporated herein. No course of prior dealings between the parties or their affiliates shall be relevant or admissible to determine the meaning of any of the terms of
this Lease. No representations, understandings or agreements have been made or relied upon in the making of this Lease other than those specifically set forth herein. This Lease can only be modified
by a writing signed by all of the parties hereto or their duly authorized agents. 

        41.    Waiver of Jury Trial    

        Tenant
and Landlord hereby waive all right to trial by jury in any claim, action, proceeding or counterclaim by either party against the other on any matters arising out of or in any way
connected with this Lease, the relationship of Landlord and Tenant, or Tenant's use or occupancy of the Demised Premises. 

        42.    Force Majeure    

        Landlord
shall not be required to perform any of its obligations under this Lease, nor be liable for loss or damage for failure to do so, nor shall Tenant thereby be released from any of
its obligations under this Lease, where such failure arises from or through any cause beyond the reasonable control of Landlord. 

        Tenant
shall not be required to perform any of its non-monetary obligations under this Lease, nor shall Tenant be liable for loss or damage for failure to do so, nor shall Landlord
thereby be released from any of its obligations under this Lease, where such failure arises from or through any cause beyond the reasonable control of Tenant, but in no event shall this Paragraph 42
be interpreted to relieve Tenant of any of its obligations to pay all Rent in the amounts and when due under this Lease. 

        43.    Gender; Assigns and Successors; Joint and Several Liability    

        Feminine
or neuter pronouns may be substituted for those of the masculine form, and the plural may be substituted for the singular number, in this Lease where the context may require.
The term "Landlord" means only the owner of the Landlord's interest in this Lease; and, in the event of the sale, assignment or transfer by such owner of the Landlord's interest in this Lease, such
owner shall thereupon be released and discharged of all covenants and obligations of Landlord thereafter accruing. If two or more individuals, corporations, partnerships or other business associations
(or any combination of two or more thereof) shall sign this Lease as Tenant, the liability of each such individual, corporation, partnership or other business association to pay the Rent and perform
all other obligations hereunder shall be deemed to be joint and several and all notices, payments and agreements given or made by, with or to any one of such individuals, corporations, partnerships or
other business associations shall be deemed to have been given or made by, with or to all of them. In like manner, if Tenant shall be a partnership or other business association, the members of which
are, by virtue of statute or federal law, subject to personal liability, the liability of each such member shall be joint and several. 

        44.    Severability    

        If
any term, covenant or condition of this Lease or the application thereof to any person or circumstance shall be held invalid or unenforceable, the remainder of this Lease or the
application of such term, covenant or condition to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each term, covenant or
condition of this Lease shall be valid and enforced to the fullest extent permitted by law. 

44

 

        45.    Time is of the Essence    [Intentionally omitted.] 

        46.    Indemnities    

        46.1    Tenant's Indemnity.    Tenant agrees it will defend all actions against Landlord (including any partners,
officers, directors, employees, agents, or mortgagees) and that it will indemnify to the fullest extent permitted by law and save Landlord harmless from and against any and all liabilities, losses,
damages, causes of action, suits, claims, demands, judgments, costs and expenses of any kind (including court costs and reasonable attorneys' fees but excluding any consequential damages except any to
which Landlord may become entitled pursuant to Paragraphs 31 or 53 hereof) relating to or arising from or in connection with (i) any act or omission of Tenant in connection with the possession,
use, occupancy, management, repair, maintenance or control of the Demised Premises or any portion thereof; (ii) any
act or omission of Tenant or Tenant's agents, sublessees, contractors, employees or invitees related to this Lease or to the Demised Premises; (iii) any default, violation or injury to person
or property or loss of life sustained in or about the Demised Premises from Tenant's act or omission; (iv) any violation or breach of this Lease by Tenant; (v) any other matter arising
from Tenant's use of the Demised Premises or any act or omission of Tenant, its agents, sublessees, contractors, employees or invitees; (vi) any discrimination by Tenant, or any of its
servants, agents or employees, against any employee of Tenant, any applicant for employment with Tenant, or any other person, because of race, color, religion, sex, national origin or any other
classification protected by law; and (vii) any sexual harassment of any person by Tenant or any of its servants, agents or employees. 

        46.2    Landlord's Indemnity.    Landlord hereby agrees to indemnify Tenant and hold Tenant harmless from and against
any cost, damage, liability or expense incurred by Tenant, except for consequential damages, which results from any willful misconduct or gross negligence of Landlord or its agents. 

        47.    Limitation on Landlord Liability    

        Notwithstanding
any provision to the contrary contained herein, Tenant shall look solely to the estate and property of Landlord in and to the Land and the Building in the event of any
claim against Landlord arising out of or in connection with this Lease, the relationship of Landlord and Tenant, or Tenant's use of the Demised Premises, and Tenant agrees that the liability of
Landlord arising out of or in connection with this Lease, the relationship of Landlord and Tenant, or Tenant's use of the Demised Premises, shall be limited to such estate and property of Landlord in
and to the Land and the Building. No properties or assets of Landlord other than the estate and property of Landlord in the Land and the Building and no property owned by any partner or owner of
Landlord shall be subject to levy, execution or other enforcement proceedings or other judicial process for the satisfaction of any judgment or for the satisfaction of any other remedy of Tenant
arising out of or in connection with this Lease, the relationship of Landlord and Tenant or Tenant's use of the Demised Premises. 

        48.    No Partnership    

        Nothing
contained in this Lease shall be deemed or construed to create a partnership or joint venture between Landlord and Tenant or create any other relationship between the parties
hereto other than that of Landlord and Tenant. 

        49.    Brokerage    

        Landlord
and Tenant each represent that they have had no dealings with any real estate broker, finder or other person, with respect to this Lease in any manner, except the Broker. Tenant
agrees to indemnify and hold harmless Landlord against and from any claim for brokerage commissions or other fees and all costs, expenses and liabilities in connection therewith, including, without
limitation, attorneys' fees and expenses, arising out of any dealings Tenant had with any broker, finder or other 

45

 

persons
other than the Broker. Landlord shall pay any commissions or fees that are payable to the Broker with respect to this Lease in accordance with the provisions of a separate commission contract. 

        50.    Tenant's Authority    

        If
Tenant is a corporation or if Tenant is a partnership, it shall, concurrently with the signing of this Lease, at Landlord's option, furnish to Landlord certified copies of the
resolutions of its board of directors (or of the executive committee of its board of directors) or partnership consent authorizing Tenant to enter into this Lease. Moreover, each individual executing
this Lease on behalf of Tenant hereby represents and warrants that he or she is duly authorized to execute and deliver this Lease and that Tenant is a duly organized corporation, limited liability
company partnership under the laws of the state of its incorporation or formation, is, to the extent required by applicable law, qualified to do business in the jurisdiction in which the Building is
located, is in good standing under the laws of the state of its incorporation or formation and the laws of the jurisdiction in which the Building is located, and has the power and authority to enter
into this Lease, and that all corporate or partnership action requisite to authorize Tenant to enter into this Lease has been duly taken. 

        51.    Applicable Law    

        This
Lease shall be construed under the laws of the jurisdiction in which the Building is located. 

        52.    Parking    

        Throughout
the Term, Tenant shall have the right to obtain parking space contracts in the Building garage for the Parking Spaces; provided, however, that in the event that, as of the
Lease Commencement Date, Tenant has not elected to contract for all of the Parking Spaces which Tenant has the right to obtain pursuant to Paragraph 1.A.11 hereof, thereafter Tenant shall give
Landlord sixty (60) days' written notice of Tenant's election to contract for any such additional number of Tenant's permitted parking space(s) as Tenant may elect (and is permitted) to obtain under
this Lease. Tenant shall pay to the garage operator the market rate for each such Parking Space, as determined from time to time by the garage operator. No specific parking spaces will be designated
for use by Tenant. Tenant, its agents, servants, invitees, employees, licensees, subtenants, assignees, customers, clients, guests and
visitors shall observe reasonable safety precautions in the use of the garage or parking lot and shall at all times abide by all rules and regulations promulgated by Landlord or the garage
operator governing use of the garage or parking lot. Landlord does not assume any responsibility for, and shall not be held liable for, any damage or loss to any automobile parked in the garage or
parking lot, or to any personal property located therein, or for any injury sustained by any person in or about the garage or parking lot. 

        53.    Hazardous Materials    

        53.1    Definition.    As used in this Lease, the term "Hazardous Material" means any flammable items, explosives,
radioactive materials, hazardous or toxic substances, material or waste or related materials, including any substances defined as or included in the definition of "hazardous substances", "hazardous
wastes", "infectious wastes", "hazardous materials" or "toxic substances" now or subsequently regulated under any federal, state or local laws, regulations or ordinances including, without limitation,
oil, petroleum-based products, paints, solvents, lead, cyanide, DDT, printing inks, acids, pesticides, ammonia compounds and other chemical products, asbestos, PCBs and similar compounds, and
including any different products and materials which are subsequently found to have adverse effects on the environment or the health and safety of persons. 

        53.2    General Prohibition.    Tenant shall not cause or permit any Hazardous Material to be generated, produced,
brought upon, used, stored, treated, discharged, released, spilled or disposed of on, in, under or about the Demised Premises, the Building, or the Land (hereinafter referred to 

46

 

collectively
as the "Property") by Tenant, its affiliates, agents, employees, contractors, subtenants, assignees or invitees. Tenant shall indemnify, defend and hold Landlord harmless from and against
any and all actions (including, without limitation, remedial or enforcement actions of any kind, administrative or judicial proceedings, and orders or judgments arising out of or resulting therefrom),
costs, claims, damages (including without limitation, attorneys', consultants', and experts' fees, court costs and amount paid in settlement of any claims or actions), fines, forfeitures or other
civil, administrative or criminal penalties, injunctive or other relief (whether or not based upon personal injury, property damage, or contamination of, or adverse effects upon, the environment,
water tables or natural resources), liabilities or losses arising from a breach of this prohibition by Tenant, its affiliates, agents, employees, contractors, subtenants, assignees or invitees. 

        53.3    Notice.    In the event that Hazardous Materials are discovered upon, in, or under the Property, and any
governmental agency or entity having jurisdiction over the Property requires the removal of such Hazardous Materials, Tenant shall be responsible for removing those Hazardous Materials arising out of
or related to the use or occupancy of the Property by Tenant or its affiliates, agents, employees, contractors, subtenants, assignees or invitees but not those of its predecessors. Notwithstanding the
foregoing, Tenant shall not take any remedial action in or about the Property or any portion thereof without first notifying Landlord of Tenant's intention to do so and affording Landlord the
opportunity to protect Landlord's interest with respect thereto. Tenant immediately shall notify Landlord in writing
of: (i) any spill, release, discharge or disposal of any Hazardous Material in, on or under the Property or any portion thereof; (ii) any enforcement, cleanup, removal or other
governmental or regulatory action instituted, contemplated, or threatened (if Tenant has notice thereof) pursuant to any laws respecting Hazardous Materials; (iii) any claim made or threatened
by any person against Tenant or the Property or any portion thereof relating to damage, contribution, cost recovery, compensation, loss or injury resulting from or claimed to result from any Hazardous
Materials; and (iv) any reports made to any governmental agency or entity arising out of or in connection with any Hazardous Materials in, on under or about or removed from the Property or any
portion thereof, including any complaints, notices, warnings, reports or asserted violations in connection therewith. Tenant also shall supply to Landlord as promptly as possible, and in any event
within five (5) business days after Tenant first receives or sends the same, copies of all claims, reports, complaints, notices, warnings or asserted violations relating in any way to the
Demised Premises, the Property or Tenant's use or occupancy thereof. 

        53.4    Landlord's Obligation.    In the event that Landlord obtains actual knowledge of the presence of Hazardous
Materials in the Demised Premises or in any of the Common Areas of the Building which are utilized by Tenant in a quantity and of a nature that violate any applicable governmental requirements and
that were not introduced to the Building by Tenant, Landlord shall take such action, if any, as may be required to comply with such governmental requirements; provided, however, that Landlord shall
have the right to contest any such notice of violation, in which case Landlords' obligation to cure shall not arise until after the final adjudication of the validity of the violation notice. 

        53.5    Survival.    The respective rights and obligations of Landlord and Tenant under this Paragraph 53 shall
survive the expiration or earlier termination of this Lease. 

        54.    Landlord's Right to Terminate    [Intentionally omitted.] 

        55.    Option to Extend    

        Provided
that (a) there is not then in existence an Event of Default and (b) there have not been more than two (2) Events of Default during the period of the
preceding two (2) years with respect to any obligations of Tenant under this Lease (including, without limitation, the payment of any Rent 

47

 

under
this Lease), in each case both at the time of exercise of the Renewal Option, as hereinafter defined, in question, and at the commencement of the Renewal Period, as hereinafter defined, and
(c) Tenant is then in occupancy of the entire eighth (8th) floor portion of the Demised Premises at the time of exercise of the Renewal Option, as hereinafter defined, and at the time of the
commencement of the Renewal Period, as hereinafter defined, in question, Tenant shall have one (1) option (the "Renewal Option") to extend the Term of the Lease for one (1) additional
five (5) year period (the "Renewal Period") after the expiration of the initial Term. The Renewal Option shall be exercisable only by written notice given by Tenant to Landlord not later than
twelve (12) months, nor earlier than twenty (20) months, prior to the expiration of the initial Term. In the event that Tenant does not timely exercise the Renewal Option, said Renewal Option shall be
null and void and of no further force or effect, time being of the essence in the exercise of the Renewal Option and it being acknowledged and agreed by Tenant that Landlord shall be entitled to rely
on any failure by Tenant to give written notice of its exercise of its Renewal Option by the date set forth herein for such exercise thereof. 

        All
terms and conditions of this Lease shall be applicable during the Renewal Period except that the amount of Base Rent charged for each Renewal Period shall be the then "Prevailing
Market Rent", which shall be the rent for comparable office space in comparable buildings in Washington, D.C. for renewal tenants, taking into account, among other things, such concessions,
improvements, allowances, the Base Year, the annual escalator and abatements, if any, as are then being offered by landlords offering such comparable space in comparable buildings to renewal tenants.
If within thirty (30) days following delivery of Tenant's notice, Landlord and Tenant have not mutually agreed on the Prevailing Market Rent for the Renewal Period in question, then within ten (10)
days after the expiration of such thirty-day period, each party shall give written notice to the other setting forth the name and address of a Broker (as hereinafter defined) selected by such party
who has agreed to act in such capacity, to determine the Prevailing Market Rent. If either party shall fail to select a Broker as aforesaid, the Prevailing Market Rent shall be determined by the
Broker selected by the other party. Each Broker shall thereupon independently make his determination of the Prevailing Market Rent within twenty (20) days after the appointment of the second Broker.
If the two Brokers' determinations are not the same, but the higher of such two values is not more than one hundred five percent (105%) of the lower of them, then the Prevailing Market Rent shall be
deemed to be the average of the two values. If the higher of such two values is more than one hundred five percent (105%) of the lower of them, then the two Brokers shall jointly appoint a third
Broker [which such Broker has not been previously engaged by Landlord or Tenant in the immediately preceding five (5) years] within ten (10) days after the second
of the two determinations described above has been rendered. The third Broker shall independently make his determination of the Prevailing Market Rent within twenty (20) days after his appointment.
The highest and the lowest determinations of value among the three Brokers shall be disregarded and the remaining determination shall be deemed to be the Prevailing Market Rent. 

        Within
thirty (30) days after the Prevailing Market Rent is determined as aforesaid, the parties shall execute an amendment to this Lease setting forth the new Rent to be paid for the
Renewal Period. 

        For
the purposes of this Paragraph 55, "Broker" shall mean a real estate broker licensed in the District of Columbia, who has been regularly engaged in such capacity in the business of
commercial office leasing in the District of Columbia for at least ten (10) years immediately preceding such person's appointment hereunder. Each party shall pay for the cost of its Broker and
one-half of the cost of the third Broker. 

        56.    Conference Center    

        Landlord
covenants to construct prior to the Lease Commencement Date and maintain throughout the Term in the Building a conference center (the "Conference Center") consisting of at least
2,500 square feet. Landlord shall provide the set-up, break-down and cleaning of all chairs, tables and other 

48

 

equipment
in the Conference Center used by Tenant and shall provide maintenance service following Tenant's use of the Conference Center, and Tenant shall reimburse Landlord for all costs of such set-
up, break-down, cleaning and maintenance service (including, but not limited to, overtime costs incurred by Landlord) within fifteen (15) business days following Landlord's issuance of an invoice to
Tenant for such costs. All costs of operation, use, maintenance, repair and replacement of the conference center in the Building (but not any rental factor or any costs reimbursed pursuant to the
immediately preceding sentence) shall be includable in Operating Expenses, except to the extent specifically excluded therefrom pursuant to Paragraph 1.B.12. hereof or charged directly to Tenant
pursuant to the immediately preceding sentence of this Paragraph 56 or to other tenants of the Building pursuant to similar provisions in their leases. 

        Landlord
shall designate a representative to coordinate scheduling of the use of the Conference Center by tenants of the Building. Priority regarding the reservation of and use of the
Conference Center shall be on a "first-come, first-served" basis, and if available when requested, Tenant and other tenants of the Building shall have the right to reserve the Conference Center for
monthly meetings for one (1) day per month for the following six (6) months (in addition to whatever reservations Tenant and such other tenants may wish to make for available times);
furthermore, the use of and reservation of the Conference Center shall be pursuant to rules and regulations regarding the Conference Center which shall be determined by, and applied by,
Landlord in its sole and absolute discretion; provided, however, that Landlord shall use reasonable efforts not to discriminate in its application of such rules and regulations. 

        57.    Storage Space    

        Landlord
hereby leases to Tenant, and Tenant hereby leases from Landlord, in its "as is" condition, that certain storage space comprising approximately one thousand one hundred
twenty-six (1,126) usable square feet of floor area known as B407 on the basement level of the Building in the location
shown on Exhibit G attached hereto and made a part hereof (the "Storage Space"). From and after the Lease Commencement Date, Tenant shall pay to Landlord rent for such Storage Space (the
"Storage Space Rent") in the following amounts: 

	Lease

Year
	 	Storage

Space Rent

Per Square Foot

Per Annum
	 	Storage

Space Rent

Per Annum
	 	Monthly

Storage Space

Rent

	1	 	$	18.00	 	$	20,268.00	 	$	1,689.00
	2	 	$	18.45	 	$	20,774.70	 	$	1,731.23
	3	 	$	18.91	 	$	21,292.66	 	$	1,774.39
	4	 	$	19.38	 	$	21,821.88	 	$	1,818.49
	5	 	$	19.86	 	$	22,362.36	 	$	1,863.53
	6	 	$	20.36	 	$	22,925.36	 	$	1,910.45
	7	 	$	20.87	 	$	23,499.62	 	$	1,958.30
	8	 	$	21.39	 	$	24,085.14	 	$	2,007.10
	9	 	$	21.92	 	$	24,681.92	 	$	2,056.83
	10	 	$	22.47	 	$	25,301.22	 	$	2,108.44

The
Storage Space will not be included in any calculation of the area of the Demised Premises. Tenant may terminate its lease of the Storage Space at any time following ninety (90) days' written
notice to Landlord. Tenant's Storage Space shall not be subject to any additional passthroughs by Landlord to Tenant of operating costs, real estate taxes, or char costs with respect to the Storage
Space. Landlord shall provide only electric lighting in the Storage Space as and to the extent determined by Landlord; provided, however, that Tenant shall not use the electric current supplied for
such lighting for any other purpose, it being expressly agreed that any electric outlets or electric current for purposes other than said lighting are not provided by Landlord and shall be at Tenant's
sole cost and expense. Except as 

49

 

aforesaid,
Landlord shall have no obligation to provide any build out, finishing work or improvements, maintenance, repairs, or any services or utilities to Tenant or to the Storage Space. Tenant
shall not install or operate in the Storage Space any equipment or other machinery, without the prior written consent of Landlord in Landlord's sole and absolute discretion. 

        58.    Right of First Offer    

        58.1    Available Space.    Provided that (a) there is not then in existence an Event of Default and
(b) there have not been more than two (2) Events of Default during the period of the preceding two (2) years with respect to any obligations of Tenant under this Lease (including,
without limitation the payment of any Rent under this Lease), in each case both at the time of Landlord's Offer, as hereinafter defined, and at the time of the commencement of the Term as to the
Available Space, as hereinafter defined, and (c) Tenant is then in occupancy of at least seventy percent (70%) of the Demised Premises at the time of Landlord's Offer, as hereinafter defined,
and at the time of the commencement of the term as to the Available Space, as hereinafter defined, and provided further that the right and option of Tenant hereinafter granted shall be subject and
subordinate to (i) the right of Landlord to lease the Available Space to initial tenant(s) thereof [solely pursuant to the initial lease(s) to such initial tenant(s) and any
extension or renewal options contained in such initial lease] and (ii) the prior rights and options of all such initial tenants as to said Available Space, then solely during the
period commencing on the date of expiration of the tenancy of each such initial Tenant and ending on the last day of the initial Term, Tenant shall have a right to receive from Landlord, an offer to
lease the Available Space to Tenant on the terms set forth in Landlord's Offer, which offer shall be accepted or rejected at Tenant's option and which right shall be a one-time right as to each
portion of the Available Space which is offered by Landlord to Tenant (or a one-time right as to all of the Available Space if it is offered by Landlord to Tenant in its entirety at one time).
"Available Space" means only that office space which is contiguous to the Demised Premises and located on the ninth (9th) floor of
the Building or that office space located on the tenth (10th) floor of the Building, or both, as said space may become available for lease after the initial leasing thereof by Landlord to another
Tenant; provided, however, that Tenant shall not have the right to lease any Available Space located on the tenth (10th) floor of the Building after the expiration of the seventh (7th) Lease Year of
the initial Term unless Tenant simultaneously exercises its Renewal Option as to the entire Demised Premises (that is, the Demised Premises originally demised under this Lease and any other Available
Space which has already been leased by Tenant, together with the Available Space located on the tenth (10th) floor of the Building which is the subject of the offer from Landlord) and simultaneously
executes an amendment to this Lease with respect to the first (1st) Renewal Period; further provided, that if at the time that Tenant exercises such right to lease Available Space on the tenth (10th)
floor of the Building and simultaneously exercises its first Renewal Option, there is less than fifteen (15) months remaining in the initial Term, then the procedures set forth in Paragraph 55 hereof
for determining the Prevailing Market Rent for the Renewal Period shall commence fifteen (15) months prior to the expiration of the initial Term. The Available Space shall be offered to and accepted
(if at all) by Tenant on the terms and conditions set forth in Landlord's offer to Tenant as to such Available Space ("Landlord's Offer"), which may include an offer of all of the Available Space at
one time or offers of portions of the Available Space in multiple offers made by Landlord, as determined by Landlord in its sole and absolute discretion. 

        58.2    Notice; Exercise.    Tenant shall give to Landlord written notice of Tenant's exercise of its option to so
lease the Available Space within ten (10) business days after the date on which Landlord gives Landlord's Offer to Tenant. If Tenant shall fail to exercise its option to lease the Available Space
within said ten (10) business days after the date on which Landlord's Offer is so given by Landlord, then Landlord shall be free to offer to lease and to lease such Available Space to others
and Tenant's right to lease said Available Space shall be void and of no force or effect 

50

 

for
the remainder of the Term of this Lease (Tenant's right hereunder being a one-time right as to such Available Space), and Landlord may lease said Available Space to others upon such terms and for
such periods as shall be acceptable to Landlord (it being agreed that time shall be of the essence in Tenant's delivery of the aforesaid notice to Landlord and that, if such written notice is not so
delivered within the time aforesaid, Landlord will rely to its detriment on Tenant's failure to give such written notice). 

        58.3    Execution of Lease Amendment.    Within thirty (30) days (subject to written extension by Landlord) after the
date Tenant gives written notice to Landlord of the exercise of Tenant's option hereunder, Landlord shall prepare and Landlord and Tenant shall execute an amendment to this Lease setting forth the
terms set forth in Landlord's Offer as to the Available Space. The Available Space, when so leased to Tenant, shall become part of the Demised Premises and shall be subject to the terms and conditions
of this Lease then prevailing, except as follows: 

        (a)   The
term as to the Available Space leased by Tenant pursuant to this Paragraph 58 shall commence on the "Available Space Effective Date" and shall continue for the
remainder of the Term existing as of the Available Space Effective Date, and the exercise of any option to extend the Term by Tenant pursuant to Paragraph 55 of this Lease shall also include extension
of the Term for a like period as to the Available Space leased to Tenant as of the commencement date of such extension period. 

        (b)   The
Base Rent for the Available Space shall be at the same rental rate per square foot then in effect for the original Demised Premises and shall thereafter be subject
to the same increases as apply to the original Demised Premises. 

        (c)   Landlord
shall deliver to Tenant and Tenant shall accept delivery of possession of the Available Space in its then AS-IS condition. Notwithstanding the foregoing, if
Tenant has exercised its option to lease Available Space in accordance with Paragraph 58.1, Landlord shall provide to Tenant an allowance (the "Available Space Tenant Allowance") in an amount per
rentable square foot of floor area comprising such Available Space equal to the product of (a) Fifty-Eight and 46/100 Dollars ($58.46) multiplied by (b) the quotient of (x) the number of
Lease Years remaining in the initial Term as of the Available Space Effective Date divided by (y) ten (10); provided, however, that for purposes of this formula, a partial Lease Year shall be counted
as a fraction of twelve (12) months (expressed as a percentage). All terms of Paragraph 16.1 shall apply to the Tenant improvement work to be done in the Available Space except the amount of the
Tenant Allowance. 

        (d)   From
and after the Available Space Effective Date as to the Available Space, such Available Space shall be included in the term "Demised Premises" as used in this Lease,
and Tenant's Percentage of Increased Operating Expenses, Tenant's Percentage of Increased Char Service Costs and Tenant's Percentage of Increased Real Estate Taxes shall all be increased
proportionately. 

51

  

        If Tenant shall fail to execute said Lease Amendment (or said new lease, as the case may be) for the Available Space within such thirty (30) day period (as the same may be extended as
aforesaid), then Landlord shall have the right, at Landlord's option exercisable by written notice to Tenant: (a) to cancel the exercise by Tenant of Tenant's option and to offer to lease and
to lease such Available Space to others upon such terms and conditions as shall be acceptable to Landlord, and to hold Tenant liable for any damages to Landlord from such cancellation, or
(b) to not cancel the exercise by Tenant of Tenant's option, in which case Tenant shall remain bound by the exercise thereof and Tenant shall be deemed to be in default of this Lease. 

        58.4    Miscellaneous Provisions.    Nothing set forth in this Paragraph 58 shall be construed to give Tenant a
superior right to lease any Available Space or any other space in the Building (i) that is leased to another tenant and that is subject to any written option on the part of such other Tenant to
renew or extend the term thereof, (ii) that is or will be leased by Landlord to initial tenants thereof (except to the extent that such initial tenants do not have a renewal option in their
initial lease), or (iii) the prior rights and options of all such initial tenants. Any lease of Available Space entered into pursuant to the terms of this Paragraph 58 shall be effective upon
the date of the amendment to this Lease (or upon the date of such new lease, as the case may be) and the term thereof and the obligation to pay rental thereunder shall commence upon the date
determined pursuant to the provisions of Landlord's offer, as set forth in such amendment or new Lease. During the period that any Landlord's Offer is outstanding, Landlord may proceed with
negotiations with prospective tenants other than Tenant with respect to any or all of the Available Space in question, provided that Landlord may only enter into leases with respect to any such
Available Space upon complying with all of the terms and conditions regarding Tenant's right of first offer, as set forth in this Paragraph 58. Tenant may only take Available Space hereunder in whole
but not in part. 

        59.    Antenna License    

        Subject
to the terms of this Paragraph 59, Landlord hereby grants to Tenant a license during the Term, provided that there then exists no Event of Default under this Lease, to install
and operate one (1) eighteen inch (18") satellite dish antenna (solely for Tenant's business as conducted within the Demised Premises, and not for any resale or other commercial purpose), in
accordance with specifications and at locations approved by Landlord in writing in advance, in Landlord's sole discretion (such antenna being hereinafter referred to as the "Antenna"). Landlord shall
also have the right to relocate the Antenna to another location on the roof of the Building, which shall be accomplished at Landlord's sole expense, and which right shall not be exercised by Landlord
in a manner which would deprive Tenant of a clear reception, within the requirements of the Federal Communications Commission governing the Antenna. 

        Any
provision hereof to the contrary notwithstanding, Landlord shall have the right, in its sole discretion, to require Tenant to use a contractor specified by Landlord to install the
Antenna, all at Tenant's sole cost and expense, or to have a contractor specified by Landlord supervise the installation of the Antenna by Tenant's contractor and in such event Tenant agrees to pay
Landlord's contractor's reasonable supervision fees. 

        In
the event Tenant undertakes installation of the Antenna, Tenant shall pay to Landlord, in advance, a license fee (the "Antenna Fee"), as Additional Rent hereunder, commencing on the
first day of the month in which the Antenna is installed. The Antenna Fee shall be in the amount of Five Hundred Dollars ($500.00) per month and shall be payable on or before the first day of each
month during the Term, without demand, deduction, set-off or counterclaim; provided, however, that commencing on the first day of the second (2nd) Lease Year of the Term and on the first day of each
subsequent Lease year of the Term thereafter, the Antenna Fee shall be increased to an amount equal to one hundred two percent (102%) of the Antenna Fee in effect for the previous Lease Year. If 

52

 

Tenant
undertakes installation of the Antenna on a date other than the first day of a calendar month, Tenant shall receive a credit equal to (a) the Antenna Fee multiplied by (b) the
quotient of the number of days in said calendar month prior to such installation date divided by the number of days in such month, which credit shall be applied toward the installment of the Antenna
Fee next due hereunder. 

        This
Paragraph 59 shall be subject at all times to the following conditions (the failure of any of which shall be a material breach of this Paragraph 59 by Tenant and shall give Landlord
the right to terminate Tenant's access and use of the roof for said Antenna): 

        (a)   The
Antenna shall be installed and at all times operated, maintained and repaired by Tenant, at Tenant's sole cost and expense. All penetrations into any Building
surfaces shall be sealed so as to prevent any water leakage. Tenant shall not undertake or engage in any installation of the Antenna without first submitting to Landlord detailed working plans of all
such installations and obtaining prior written approval of Landlord. 

        (b)   Throughout
the period of such installation, and thereafter during any operation, maintenance or repair of the Antenna, Tenant shall install and utilize, at Tenant's sole
expense, such screening supports, walk boards, and such other materials as may be required by Landlord to protect the Building or any part thereof, the Building generally, pedestrians, vehicles on
adjacent roadways and any other property or owners of property adjacent to the Building. 

        (c)   The
Antenna installed or operated by Tenant hereunder shall be installed, operated, maintained and repaired by Tenant in a good and workmanlike manner and in a manner
which shall not impair the
structure, value, rental value or rentability of, or detract from the appearance of, the Building or any part thereof. 

        (d)   The
Antenna installed or operated by Tenant hereunder shall be installed, operated, maintained and repaired by Tenant in a manner which shall not cause a violation of
any mortgage, deed of trust, ground lease or other financing instrument now existing or hereafter recorded with respect to the Building or any agreements or warranties with respect to the Building or
any part thereof as are now or hereafter shall be held by or entered into by Landlord or Landlord's management agent. 

        (e)   The
Antenna installed or operated by Tenant hereunder shall be installed, operated, maintained and repaired by Tenant in a manner which shall not interfere with or
disturb Landlord or any Tenant or other occupant of the Building. 

        (f)    The
Antenna shall not cause interference with any other equipment of any nature in, on or about the Building or any other equipment owned by any other person,
irrespective of where located and irrespective of whether such person has any interest in the Building. In the event Tenant's equipment causes such interference, Tenant agrees it will take all steps
necessary to correct and eliminate the interference consistent with appropriate government rules and regulations upon receipt of written notification of the interference. If the interference is
not corrected within one (1) business day of receipt of notification, Tenant will cease operation of the equipment causing such interference until such interference is cured. 

        (g)   Neither
the Antenna nor Tenant shall interfere with the use of the roof of the Building or any other part of the Building by Landlord or any Tenant or occupant of the
Building or any other person or entity. 

        (h)   Prior
to the installation of the Antenna, Tenant shall obtain, and shall thereafter comply with and keep in force throughout the Term, all permits, licenses, inspections
and other governmental requirements and authorizations required by all governmental authorities 

53

 

having
jurisdiction over the Building, the Antenna, Tenant, or the business operations in which the Antenna shall be utilized. 

        (i)    The
installation, operation, maintenance and repair of the Antenna shall be performed by Tenant in accordance with all applicable laws, regulations and other
requirements of all federal and local governmental and quasi-governmental entities and authorities. 

        Tenant
acknowledges and agrees that Landlord has not made any representation, warranty or other statement to Tenant (and none is implied) regarding the feasibility of installing or
operating the Antenna hereunder. 

        Landlord
agrees to permit Tenant reasonable, non-exclusive access to portions of the Building as necessary so as to facilitate the installation, operation, maintenance, repair, and
removal of the Antenna in accordance with this Paragraph 59. Notwithstanding the foregoing, if Landlord shall require Tenant to be accompanied to the roof of the Building by an employee, agent or
contractor of Landlord, then Tenant shall notify Landlord in advance when Tenant requires access to the roof of the Building and shall not attempt to gain such access to the roof of the Building
without being accompanied by an employee, agent or contractor of Landlord. 

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

	WITNESS:	 	LANDLORD:
	

 	

 	

 	
 	

FARRAGUT CENTER LLC, a District of Columbia limited liability company
	

 	

/s/  [ILLEGIBLE]      	
 	

By:	

/s/  CALVIN CAFRITZ      
	 	
	 	 	
 Calvin Cafritz

Managing Member
	

WITNESS:	
 	

TENANT:
	

 	

 	

 	
 	

 	

 	

 
	 	 	 	 	LECG, LLC, a California limited liability company
	

By:	

/s/  [ILLEGIBLE]      	
 	

By:	

/s/  [ILLEGIBLE]      
	 	
	 	 	

	 	Its	Assistant Secretary	 	 	Its:	CHIEF FINANCIAL OFFICER
	 	 	
	 	 	 	

54

 
 
 

EXHIBITS    
    

	Exhibit
	 	Description
 

	A	 	Floor Plan
	

B	
 	

Declaration to Confirm Lease Commencement Date
	

C	
 	

Rules and Regulations
	

D	
 	

[Intentionally omitted.]
	

E	
 	

Definition of Shell Condition
	

F	
 	

Cleaning Specifications
	

G	
 	

Plan of Storage Space

55

 
 

EXHIBIT A    
    

Floor Plan  

  

 

  

NINTH FLOOR  

A-2

  

 
 

EXHIBIT B
  
    DECLARATION BY LANDLORD AND TENANT    
    

        Attached to and made part of the Lease entered into by and between FARRAGUT CENTER LLC, a District of Columbia limited liability company, as Landlord, and LECG,
LLC, a California limited liability company, as Tenant. 

        Landlord
and Tenant do hereby declare that: 

	1.
	The
execution date of the Lease is                        .

	2.
	The
Lease Commencement Date is                        .

	3.
	The
Rent Commencement Date is                        .

	4.
	The
Lease Expiration Date is                        .

	5.
	The
Lease is in full force and effect as of the date hereof, Landlord has fulfilled all of its obligations under the Lease required to be fulfilled by Landlord on or prior to such
date, and Tenant has no right of set-off against any rentals. 

	WITNESS:	 	LANDLORD:
	

 	

 	

 	
 	

FARRAGUT CENTER LLC, a District of Columbia limited liability company
	

 	

 	
 	

By:	

 
	 	
	 	 	
 Calvin Cafritz

Managing Member
	

WITNESS:	
 	

TENANT:
	

 	

 	

 	
 	

 	

 	

 
	 	 	 	 	LECG, LLC, a California limited liability company
	

By:	

 	
 	

By:	

 
	 	
	 	 	

	 	Its	 	 	 	Its:	 
	 	 	
	 	 	 	

[NOTE:
NOT TO BE SIGNED AT TIME OF EXECUTION OF LEASE] 

B-1

  

 
 

EXHIBIT C
  
    RULES AND REGULATIONS    
    

        The following rules and regulations have been formulated for the safety and well-being of all the tenants of the Building. Any violation of these
rules and regulations by any Tenant which continues after notice from Landlord shall be sufficient cause for termination, at the option of Landlord, of the Tenant's lease. 

        Landlord
may, upon request by any Tenant, waive the compliance by such Tenant of any of the following rules and regulations, provided that (a) no waiver shall be effective
unless signed by Landlord or Landlord's authorized agent, (b) any such waiver shall not relieve the Tenant from the obligation to comply with such rule or regulation in the future unless
expressly consented to, in writing by Landlord, and (c) no waiver of a rule or regulation granted to any Tenant shall relieve any other Tenant from the obligation unless such other
Tenant has received a similar waiver in writing from Landlord. 

        1.     The
sidewalks, entrances, passages, courts, elevators, vestibules, stairways, corridors or halls or other parts of the Building not occupied by any Tenant (hereinafter
"Common Areas") shall not be obstructed or encumbered by any Tenant or used for any purpose other than ingress and egress to and from the Tenant's Demised Premises. Landlord shall have the right to
control and operate the Common Areas, and the facilities furnished for the common use of the Tenant in such manner as Landlord, in its sole discretion, deems best for the benefit of the tenants
generally. No Tenant shall permit the visit to its Demised Premises of persons in such number or under such conditions as to interfere with the use and enjoyment by other tenants of the Common Areas. 

        2.     No
awnings or other projections shall be attached to the outside walls of the Building. No drapes, blinds, shades or screens shall be attached to or hung in, or used in
connection with, any window or door of a Tenant's Demised Premises which is or are visible from outside of the Demised Premises. 

        3.     No
sign, advertisement, notice or other lettering or material(s) shall be exhibited, inscribed, painted or affixed by any Tenant on any part of the outside or inside of
the Tenant's Demised Premises, the Building or elevators. In the event of the violation of the foregoing by any Tenant, Landlord may remove same without any liability, and may charge the expense
incurred by such removal to the Tenant or tenants violating this rule. All interior signs on the doors and directory table shall be inscribed, painted or affixed for each Tenant by Landlord at the
expense of such Tenant, and shall be of a size, color and style acceptable to Landlord. 

        4.     No
show cases or other articles shall be put in front of or affixed to any part of the exterior of the Building, nor placed in the Common Areas. 

        5.     The
water and wash closets and other plumbing fixtures shall not be used for any purposes other than those for which they were constructed, and no sweepings, rubbish,
rags or other substances shall be thrown or placed therein. All damages resulting from any misuse of the fixtures shall be borne by the Tenant whose employees, agents, visitors or licensees shall have
caused the same. 

        6.     There
shall be no marking, painting, drilling into or other form of defacing or damage of any part of a Tenant's Demised Premises or the Building. No boring, cutting or
stringing of wires shall be permitted. No Tenant shall construct, maintain, use or operate within its Demised Premises or elsewhere within or on the outside of the Building, any electrical device,
wiring or apparatus in connection with a loud speaker system or other sound system. Landlord will, however, permit a Tenant to install Muzak or other internal music system within the Tenant's Demised
Premises if the music system cannot be heard outside of the Demised Premises. 

        7.     No
Tenant shall make or permit to be made any disturbing noises or disturb or interfere with the occupants of the Building or neighboring Buildings or premises or those
having business with them, 

C-1

 

as
determined by Landlord in its reasonable judgment, whether by the use of any musical instrument, radio, tape recorder, whistling, singing or any other way. No Tenant shall throw anything out of the
doors or windows, off the balconies or down the corridors or stairs. 

        8.     No
bicycles, vehicles or animals, birds or pets of any kind shall be brought into or kept in or about a Tenant's Demised Premises. Notwithstanding the foregoing, Landlord
shall install a bicycle rack in the Building garage for use by the tenants of the Building. No cooking shall be done or permitted by any Tenant on its Demised Premises, except that a Tenant may
install and operate for the convenience of its employees, a lounge or coffee room with microwave oven, sink (subject to the provision of Paragraph 16 hereof) and refrigerator. No Tenant shall cause or
permit any unusual or objectionable odors to originate from its Demised Premises. Each Tenant shall be obligated to maintain sanitary conditions in any area approved by the Landlord for food and
beverage preparation and consumption. 

        9.     No
space in or about the Building shall be used by any Tenant for the manufacture, storage, or sale or auction of merchandise, goods or property of any kind. 

        10.   No
flammable, combustible, explosive, hazardous or toxic fluid, chemical or substance shall be brought into or kept upon a Tenant's Demised Premises. 

        11.   No
additional locks or bolts of any kind shall be placed upon any of the doors or windows by any Tenant, nor shall any changes be made in existing locks or the mechanism
thereof. The doors leading to the Common Areas shall be kept closed during business hours except as they may be used for ingress and egress. Each Tenant shall, upon the expiration or termination of
its tenancy, return to Landlord all keys used in connection with its Demised Premises, including any keys to the Demised Premises, to rooms and offices within the Demised Premises, to storage rooms
and closets, to cabinets and other built-in furniture, and to toilet rooms whether or not such keys were furnished by Landlord or procured by Tenant, and in the event of the loss of any such keys,
such Tenant shall pay to Landlord the cost of replacing the locks. On the expiration or termination of a Tenant's lease, the Tenant shall disclose to Landlord the combination of all locks for safes,
safe cabinets and vault doors, if any, remaining in the Demised Premises. 

        12.   All
deliveries and removals, or the carrying in or out of any safes, freight, furniture or bulky matter or material of any description, must take place in such manner
and during such hours as Landlord may require. Landlord reserves the right to inspect all freight, furniture or bulky matter or materials to be brought into the Building and to exclude from the
Building all or any of such which violates any of these rules and regulations or the Lease. 

        13.   Any
person employed by any Tenant to do janitorial work within the Tenant's Demised Premises must obtain Landlord's written consent prior to commencing such work, and
such person shall, while in the Building and outside of said Demised Premises, comply with all instructions issued by the superintendent of the Building. No Tenant shall engage or pay any employees on
the Tenant's Demised Premises, except those actually working for such Tenant on said Demised Premises. 

        14.   No
Tenant shall purchase spring water, ice, coffee, soft drinks, towels, or other like merchandise or service from any company or person whose repeated violations of
Building regulations have caused, in Landlord's sole opinion, a hazard or nuisance to the Building and/or its occupants. 

        15.   Landlord
shall have the right to prohibit any advertising by any Tenant that states the Building's address or name or Landlord's name and which, in Landlord's reasonable
opinion, tends to impair the reputation of the Building or its desirability as a Building for offices, and upon written notice from Landlord, such Tenant shall refrain from or discontinue such
advertising. 

        16.   Landlord
reserves the right to exclude from the Building at all times any person who is not known or does not properly identify himself to the Building management or its
agents. Landlord may at its option require all persons admitted to or leaving the Building between the hours of 6:00 p.m. and 

C-2

 

8:00 a.m.,
Monday through Friday, and at all times on Saturdays, Sundays and holidays, to register. Each Tenant shall be responsible for all persons for whom it authorizes entry into the
Building, to the extent provided in the Lease. 

        17.   Each
Tenant, before closing and leaving its Demised Premises at any time, shall assure that all lights are turned off and the Demised Premises are locked. 

        18.   The
requirements of tenants will be attended to only upon application at the office of the Building. Building employees shall not perform, and shall not be requested by
any Tenant to perform, any work or do anything outside of their regular duties, unless under special instructions from the Building management. 

        19.   Canvassing,
soliciting and peddling in the Building is prohibited and each Tenant shall cooperate to prevent the same. 

        20.   No
water cooler, plumbing or electrical fixtures which are connected to any of the Building's operating systems shall be installed by the Tenant without Landlord's prior
written consent. 

        21.   There
shall not be used in any space, or in the Common Areas of the Building, either by any Tenant or by jobbers or others in the delivery or receipt of merchandise, any
hand trucks, except those equipped with rubber tires and side guards. 

        22.   Mats,
trash or other objects shall not be placed in the Common Areas. 

        23.   Landlord
shall not maintain or repair suite finishes or fixtures which are non-standard, including, but not limited to, kitchens, bathrooms, wallpaper, and special
lights. However, should the need for maintenance or repairs arise, Landlord shall, at Tenant's request, arrange for the work to be done at the Tenant's expense. 

        24.   No
space demised to any Tenant shall be used, or permitted to be used, for lodging or sleeping or for any immoral or illegal purpose. 

        25.   Employees
of Landlord other than those expressly authorized are prohibited from receiving any packages or other articles delivered to the Building for any Tenant and,
should any such employee receive any such package or article, he or she in so doing shall be the agent of such Tenant and not Landlord. 

        26.   No
Tenant shall install or permit or allow installation of a television antenna in the windows or upon the exterior of its Demised Premises or the Building. 

        27.   No
Tenant shall tie in, or permit others to tie in, to the electrical or water supply of the Building without prior written consent of the Building management. 

        28.   No
Tenant shall remove, alter or replace the Building standard ceiling, light diffusers or air conditioning terminals in any portion of its Demised Premises without the
prior written consent of Landlord. 

        29.   No
vending machines shall be permitted to be placed or installed in any part of the Building by any Tenant, except those which are for use only by Tenant's employees and
business visitors in the Demised Premises. Landlord reserves the right to place or install vending machines in any of the Common Areas of the Building. 

        30.   Landlord
reserves the right to specify where in the space demised to any Tenant business machines and mechanical equipment shall be placed or maintained in order, in
Landlord's judgment, to absorb and prevent vibration, noise, and annoyance to other tenants of the Building. 

        31.   Landlord
reserves the right to rescind, amend, alter or waive any of the foregoing rules and regulations at any time when, in its sole judgment, it deems it
necessary, desirable or proper for its best 

C-3

 

interest
and for the best interests of the tenants, and no such rescission, amendment, alteration or waiver or any rule or regulation in favor of one Tenant shall operate as an alteration or
waiver in favor of any other Tenant. Landlord shall not be responsible to any Tenant for the non-observance or violation by any other Tenant of any of these rules and regulations at any time. 

C-4

  

 
  EXHIBIT D
  
    [Intentionally omitted.]    

D-1

  

 
 

EXHIBIT E    
    
    Definition of Shell Condition    
    

Shell Building Description  

	A.
	Architectural Items

	1.
	All
perimeter and core walls to be primed drywall ready for paint.

	2.
	All
columns to be furred with plumb drywall enclosures.

	3.
	Provide
1" mini-blinds at all perimeter windows.

	4.
	All
core doors to be stained and sealed.

	5.
	Concrete
slabs to ACI 201 levelness (1/4" per 10 feet non-cumulative).

	6.
	Stainless
steel elevator doors and jambs.

	7.
	Core
graphics for all stairs, mechanical, electrical and other required locations (ADA code compliant).

	8.
	Complete
core toilet rooms.

	9.
	Substantial
completion of the common areas on the Ninth Floor (a multitenant floor) in accordance with Attachment 1 to this Exhibit E.

	B.
	Mechanical

	1.
	VAV
system served by chilled water source air handling units at PH. The air handling units shall be able to allow incremental portions of a floor to be operated in an after-hours mode.
VAV boxes shall be in accordance with Attachment 2 to this Exhibit E.

	2.
	DDC
control system to all VAV boxes with thermostats provided at each location.

	3.
	All
interior zones to include ductwork to VAV boxes.

	4.
	All
exterior zones to provide ductwork to VAV boxes.

	5.
	Condenser
water riser with taps, valves and blank flanges at each floor.

	6.
	Wet
stacks with sanitary waste, vent and cold water stubbed at core.

	7.
	Toilet
exhaust riser available for future Tenant exhaust tie-in.

	C.
	Electrical

	1.
	Buss
Riser with future taps at each floor.

	2.
	High
voltage panel (480/277V) sized for 3.0 watts per foot lighting plus HVAC loads, complete with breakers.

	3.
	K-type
transformer feeding low voltage panels (208/120V) sized for 5.0 watts per foot. Complete with breakers and oversize neutrals.

	4.
	Isolated
ground riser with lug on each floor.

	5.
	Emergency
power units in 277V and 120V sized for code requirements.

	D.
	Sprinkler Systems

	1.
	Provide
fully monitored, automatic sprinkler system per NFPA and local code. 

E-1

 

	2.
	Stand
pipes at each stairwell with fire department connections, control assembly, express drain and flow taper switches.

	3.
	On-floor
steel sprinkler distribution grid in a ratio of 1/200SF with upturned pendant heads.

	4.
	All
core areas to have installed heads (fully recessed with covers).

	E.
	Fire Alarm System

	1.
	Provide
fully supervised, voice alarm system conforming to local code and ADA requirements for all core and proposed Tenant areas.

	2.
	System
to have adequately sized panels, modules and associated infrastructure on Tenant's floor to support all Tenant devices required by DC code.

	F.
	Elevators

	1.
	All
cabs to comply with DC code and ADA requirements.

	2.
	All
cabs to have floor by floor lockout capability in the controllers along with receiving wiring in the traveling cables to support card readers and security phones in each cab. 

E-2

 
  ATTACHMENT 1
  TO EXHIBIT E    
    

NINTH FLOOR COMMON AREAS 

        

  

 
 

ATTACHMENT 2
  TO EXHIBIT E    
    

         

  

  

 
 

EXHIBIT F    
    
    Cleaning Specifications    
    

LAVATORIES: 

        Lavatories—Daily:

Wash: 

	a.
	Shelves

	b.
	Brightwork
(Handles, Piping, Hinges) 
	c.
	Sinks 
	d.
	Urinals 
	e.
	Toilets 
	f.
	Floors

	g.
	Tile
Walls—Spot Clean 
	h.
	Partitions
and Legs 
	i.
	Vents

	j.
	Receptacles

	k.
	Mirrors 

Stock with supplies furnished by contractor: 

	a.
	Handsoap 
	b.
	Towels

	c.
	Tissue

	d.
	Sanitary
Napkins 
	e.
	Seat
Covers 

Polish to remove water spots: 

	a.
	Brightwork 
	b.
	Mirrors 
	c.
	Shelves

	d.
	Partitions

LAVATORIES—SPECIAL
INSTRUCTIONS 

 Tile Floors  

Tile
floors will be mopped daily using a germicidal detergent. Any stained areas will be machine scrubbed daily as required to maintain a uniform appearance. Floors will be stripped and waxed as
needed. 

 Tile Walls  

Tile
walls will be spot cleaned with disinfectant. Walls will be completely cleaned monthly or as needed. 

 Partitions  

Partitions
will be entirely wiped clean daily. Supporting legs will be cleaned monthly or as needed. 

F-1

 

 Trash Receptacles  

Trash
will be removed daily. Plastic liners will be provided and changed daily in all types of receptacles. 

 Hand Soap Dispensers  

Hand
soap dispensers will be checked daily for adequate supply levels and will be filled as necessary. 

 Paper Supplies  

All
paper dispensers will be filled completely each night. In some areas, it may be necessary to place extra rolls of wrapped paper so that no shortages occur. 

 High Dusting  

All
high fixtures and lights will be dusted as needed. 

 Carpeted Floors  

All
carpeted bathroom areas will be vacuumed daily and shampooed as needed. 

OFFICES,
HALLWAYS, AND PUBLIC AREAS: 

 Waste Baskets—Daily  

Waste
baskets to be emptied daily. Plastic liners to be provided to tenant waste baskets and changed as needed. Only remove trash in waste can or clearly marked "trash". 

 Ashtrays—Daily  

Ashtrays
to be emptied and wiped clean daily. Sand levels will be maintained in cigarette urns. 

 Dusting—Daily  

All
furniture and flat surfaces will be dusted daily with a treated cloth. Desks and tables not cleared of paper and work materials will only be dusted where desk is exposed.  Papers are not to be moved.
Telephones, glass desk tops and tables will be damp wiped. 

 Spot Cleaning—Daily  

All
hand prints and spots will be removed from doors and light switches. Woodwork and interior glass will be spot cleaned as needed. 

 Vacuuming—Daily/Weekly  

All
rugs and carpets will be vacuumed daily in all traffic areas. Hard-to-reach spots, such as corners, under desks and chairs, behind plants, etc., shall be vacuumed weekly with accessory tools, with
light furniture moved to accomplish cleaning. 

 Carpet Spot Cleaning—Daily  

An
effort will be made to remove carpet spots and stains. 

F-2

 

 Tile Floors—Daily  

All
tile floors will be dusted daily and mopped as needed. Extreme care shall be exercised in all mopping so as to avoid splashing walls, furniture, or carpet. All tile floors will be buffed as
required to maintain a lustrous finish. 

 Water Coolers—Daily  

Water
coolers shall be cleaned and polished. 

 Main Lobby and Corridor Floors  

Mop
floors daily and buff as required to maintain a lustrous finish. 

 Elevators—Daily  

Interior
surfaces and all doors to be spot cleaned for fingerprints. 

 Entrance Door Glass—Daily  

All
entrance door glass shall be spot cleaned. 

 Stairways and Landings—Weekly  

Spot
cleaning of walls and doors will be done weekly. Handrails, ledges, fire points, and miscellaneous hardware will be cleaned weekly. Day porter will be responsible for sweeping and mopping
stairwells and landings weekly. 

 Elevators—Monthly  

Carpets
will be shampooed as needed. 

 Glass Partitions and Doors—Monthly  

All
glass partitions and doors will be cleaned with ammonia using a squeegee, clean rag, or paper towels. 

 Air Conditioning Grills—Monthly  

All
areas around air conditioning and return air grills will be cleaned once each month or more often, if necessary. Care will be taken so as to prevent dirt from falling on floor or other surfaces. 

 Tile Floors—Monthly  

Machine
stripping and/or scrubbing shall be accomplished as needed to remove dirt-embedded finishes, stains, spillage and wax buildup. New wax and sealer, if required, will then be applied. 

 Venetian Blinds—Monthly  

All
venetian blinds will be dusted and/or damp wiped as needed. 

 Entrance Mats—Monthly  

Entrance
mats will be shampooed as needed. 

F-3

 

 High Dusting—Quarterly  

Pipes,
ledges, ceilings, sprinklers, moldings, picture frames, etc., will be dusted every three months or more frequently if necessary. 

 Lavatories—Quarterly  

Strip
and wax tile floors completely. 

 Carpet "Shampooing"—Annually  

All
carpeted public areas to be "shampooed". 

 Special Floor Coverings—As Necessary  

Parquet,
quarry, ceramic, raised computer floors, and other special floor coverings will be treated with appropriate methods and materials. 

 Walls, Woodwork and Partitions—As Necessary  

All
walls and ceilings will be brushed down as necessary with approved wall duster or a vacuum cleaner. 

EXTERIOR
WINDOW CLEANING—three (3) times per year 

F-4

  

 
 

EXHIBIT G    
    
    Plan of Storage Space    
    

         

  

G-1

QuickLinks

EXHIBIT 10.8

TABLE OF CONTENTS

LEASE AGREEMENT

EXHIBITS

EXHIBIT A

EXHIBIT B DECLARATION BY LANDLORD AND TENANT

EXHIBIT C RULES AND REGULATIONS

EXHIBIT D [Intentionally omitted.]

EXHIBIT E Definition of Shell Condition

ATTACHMENT 1 TO EXHIBIT E

ATTACHMENT 2 TO EXHIBIT E

EXHIBIT F Cleaning Specifications

EXHIBIT G Plan of Storage SpaceQuickLinks
 -- Click here to rapidly navigate through this document

 
 

EXHIBIT 10.9    
    

[LECG
LETTERHEAD] 

October 13,
2000 

PERSONAL & CONFIDENTIAL  

Dr. Walter Vandaele

3034 Cleveland Avenue N.W.

Washington, DC 20008 

Dear
Walter: 

        LECG,
LLC ("LECG" or "the Company") would be pleased to have you join as us a Director in our Washington, DC office effective as soon as practical. This letter outlines LECG's terms and
conditions for Directors. 

Exclusivity and Use of LECG Staff  

        As a Director in LECG, you agree to be exclusive to the Company and to bill all of your professional consulting activities through LECG (except under special
circumstances, which must be approved by me, when it may be desirable for your fees to be billed separately). You also agree to obtain needed staff support from LECG unless you and the Company agree
that the staff resources required for a particular project cannot be provided by the Company. When you need staff support that extends beyond your local office, you should contact the Directors of our
offices, or me. 

Firm Management  

        LECG would like you to serve on both the LECG Governing Board and our Advisory Council. Your service on the Board of Directors will be welcomed, and we will
provide a seat for you on the Board at the first anniversary of our closing. Upon joining the Board, you will have a minimum term of at least two (2) years; provided, however, that your
election to the Board would immediately terminate upon any termination of your employment. 

Signing Bonus  

        LECG will provide you with a signing bonus of $150,000. 

Business Development Account  

        LECG will provide you with a Business Development account of up to $20,000 per year, which is equal to the highest level offered within the firm. I will also work
with you to fund other reasonable investments as needed. You may instruct staff to perform business development work for you within this limit. 

        Business
development expenses above any agreed-upon limits will normally be charged to your own account and you will be responsible for reimbursing the Company for costs associated with
this work. 

Compensation  

        You will receive a guaranteed draw of $350,000 per annum (pro-rated and paid on a monthly basis) against your fees for at least two (2) years. At the end
of two years, we would be willing to discuss extension of this provision. 

        At
the Director level, compensation is determined by your professional fees billed, and any finder's fees you earn. Each month we will compute your earnings as discussed in the  Fee Pass Through and
Project Origination Fees sections below. From these earnings, we will deduct the
bonus pool participation (also discussed below.) 

 

—Fee Pass Through  

        Your fee pass-through earnings will be determined as follows. As a Director, you will receive 100% of your collected professional billings, except when the
Company or another Director brings business to you. Ordinarily in these circumstances, 90% of your collected professional billings will be passed through to you. 

        As
an LECG Director, you determine the number of hours you wish to devote to professional consulting activities and you have no obligation to accept offers of work provided by the
Company or by other Directors. 

        LECG
will bill your time at the hourly rate you establish. We understand that this rate may change on a case-by-case basis, and may be different in different geographic markets. You
agree to discuss your rate with me and to advise me of any changes in rate that you may contemplate making. Fee pass-through earnings will ordinarily be paid to you by the 15th day (or next regular
business day) of the month following the month in which your professional billings are collected by LECG. It is expected that LECG professional fees will be at least twice your own professional fees. 

        The
firm reserves the right to modify these policies as circumstances warrant in the future. 

—Project Origination Fees  

        As a Director, you will receive up to 14% of the total collected professional LECG staff billings on all projects that you source, net of all expenses, your own
fees and the fees of other Directors and Affiliates, in accordance with our standard policy. Thus on a $500,000 project in which there is
$100,000 in travel, telephone, copying and other expenses including your expert fees, you would receive a $56,000 ($400,000 X .14) project origination fee after payment has been received from the
client. In circumstances where you are the finder and someone else is the expert, and the expert's pass-through rate has been reduced, your project origination fee will be grossed up by 10% of the
fees collected on behalf of that expert. Such monies will generally be distributed within 90 days of receipt. 

        When
other Directors assist you in securing a project, the project origination fees will be split according to each Director's contribution to securing the project. Normally the
Directors involved can work this out amicably. Any dispute will be resolved by me. Project origination fees will ordinarily be paid to you within 90 days of the time they are collected by LECG. If
your association with LECG terminates for any reason, you will nevertheless be paid all fee pass-through earnings and project origination fees described above, for payments related to fees earned
during your association with LECG but collected after your association terminates. 

—Bonus Pool  

        As a Director in the firm, 5% of your total earnings will be placed in a bonus pool holdback. 

        The
payment of any amount from this bonus pool will be discretionary, and will be contingent upon factors such as the size and needs of the staff bonus pool and your contribution to the
firm, particularly with respect to staff mentoring, recruitment of top talent to the firm, teamwork, and collegiality within the organization. The total bonus amount reserved from your earnings cannot
exceed $50,000 in any one year. 

        Any
bonus paid from the pool will be paid in February/March of the following year. 

Equity and Equity Prospects  

        LECG will extend to you the opportunity to purchase up to $1.0 million of Series Preferred and Common Stock in the New LECG at the same price and other terms as
other LECG investors. This option will remain in effect through November 30, 2000. 

2

 

        Subject
to Board approval, you will receive 40,000 shares of LECG stock in the form of a "grant" (at a price of one (1) cent per share and subject to a four-year vesting
schedule), and 10,000 stock options (with a four-year vesting schedule.) With respect to the 40,000 shares, LECG will cooperate with you in the filing of an election under
Section 83(b) of the Internal Revenue code. 

Benefits  

        You will be eligible to participate in any and all benefit plans established by LECG and available to Directors. For purpose of your participation in LECG's
Benefits Programs and any other programs that depend on tenure with LECG, LECG shall treat the full period of your tenure with PHB and PHB Hagler Bailly, as if it had been service with LECG. The
tenure at PHB, PHB Hagler Bailly started as of June 13, 1988. 

Write-downs and bad debt  

        LECG has adopted a policy regarding the write-down of invoices which gives guidance as to how these will be handled. A copy of this policy is attached for your
review. 

Moving Expenses  

        LECG will pay all reasonable expenses associated with your move from your present office to LECG's office, including all expenses associated with client file and
record transfers. 

Term  

        Your association with LECG is based on the mutual consent of you and LECG, and accordingly either you or LECG may terminate the relationship at will, with or
without cause, at any time. If your association with LECG terminates for any reason, you will nevertheless be paid all fee pass-through earnings and project origination fees described above, for
payments related to fees earned during your association with LECG but collected by LECG after your association terminates. Any guaranteed compensation arrangements will end with termination of your
relationship with LECG. 

Administrative Support  

        LECG provides Directors with office space and appropriate furniture and equipment. Our standard arrangement is for Directors to provide their own administrative
support. If you wish, LECG will hire an Executive Analyst for you at an agreed upon salary. As such, you would be responsible for all cash costs associated with such employment in excess of amounts
billed and collected on cases in which the Executive Analyst might work. Such amounts, if any, shall be calculated at the end of the year. 

Final Agreement  

        This Agreement is final and supersedes any prior understandings you may believe existed. The Agreement is dependent upon signing of the standard Non-Solicit
Agreement, a copy of which is attached. 

        LECG
reserves the right to change any of their policies from time to time, including policies discussed in this agreement, as business conditions warrant. Any such changes will be
communicated to the Directors upon their adoption. 

3

 

        All
of us at LECG very much look forward to having you as a Director on our team. Please sign below to indicate your acceptance of the terms contained in this letter. 

Sincerely,

/s/
David P. Kaplan

David P. Kaplan

President 

Enclosures

cc:
Advisory Council 

Agreed
to and Accepted: 

	/s/ Walter Vandaele
 Name	 	Oct 30, 2000
 Date
	

Oct 30, 2000
 Expected Start Date	
 	

 

4

QuickLinks

EXHIBIT 10.9

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