Document:

exv10w1

 

EXHIBIT 10.1

COSTAR
GROUP,
INC.

1998 STOCK
INCENTIVE
PLAN

(AS
LAST 
AMENDED 
ON
JUNE 18, 2002)

I.    Purpose

         CoStar Group, Inc., a Delaware corporation “CoStar” or the “Company”),
wishes to recruit, reward, and retain employees and outside directors. To
further these objectives, the Company hereby sets forth the CoStar Group, Inc.
1998 Stock Incentive Plan (the “Plan”) to provide options (“Options”) or direct
grants (“Stock Grants” and, together with the Options, “Awards”) to employees
and outside directors with respect to shares of the Company’s common stock (the
“Common Stock”). The Plan is effective as of the effective date (the
“Effective Date”) of the Company’s registration under Section 12 of the
Securities Exchange Act of 1934 (the “Exchange Act”) with respect to its
initial public offering (“IPO”).

II.    Participants

         All Employees of CoStar and any Eligible Subsidiaries are eligible for
Options and Stock Grants under this Plan, as are the directors of CoStar and
the Eligible Subsidiaries who are not employees (“Eligible Directors”).
Eligible employees and directors become “optionees” when the Administrator
grants them an option under this Plan or “recipients” when they receive a
direct grant of Common Stock. (Optionees and recipients are referred to
collectively as “participants.” The term participant also includes, where
appropriate, a person authorized to exercise an Award in place of the original
optionee.) The Administrator may also grant Options or make Stock Grants to
certain other service providers.

         Employee means any person employed as a common law employee of the Company
or an Eligible Subsidiary.

III.    Administrator

         The Administrator will be the Compensation Committee of the Board of
Directors of CoStar (the “Compensation Committee”), unless the Board specifies
another committee. The Board may also act under the Plan as though it were the
Compensation Committee.

         The Administrator is responsible for the general operation and
administration of the Plan and for carrying out its provisions and has full
discretion in interpreting and administering the provisions of the Plan.
Subject to the express provisions of the Plan, the Administrator may exercise
such powers and authority of the Board as the Administrator may find necessary
or appropriate to carry out its functions. The Administrator may delegate its
functions (other than those described in the Granting of Awards section) to
officers or employees of CoStar.

         The Administrator’s powers will include, but not be limited to, the power
to amend, waive, or extend any provision or limitation of any Award. The
Administrator may act through meetings of a majority of its members or by
unanimous consent.

IV.     Granting of Awards

         Subject to the terms of the Plan, the Administrator will, in its sole
discretion, determine:

 

 

	 	(a)	 	the participants who receive Awards,
	 
	 	(b)	 	the terms of such Awards,
	 
	 	(c)	 	the schedule for exercisability or nonforfeitability
(including any requirements that the participant or the Company
satisfy performance criteria),
	 
	 	(d)	 	the time and conditions for expiration of the Award, and
	 
	 	(e)	 	the form of payment due upon exercise, if any.

         The Administrator’s determinations under the Plan need not be uniform and
need not consider whether possible participants are similarly situated.

         Options granted to employees may be nonqualified stock options (“NQSOs”)
or “incentive stock options” (“ISOs”) within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended from time to time (the “Code”), or
the corresponding provision of any subsequently enacted tax statute. Options
granted to Eligible Directors must be NQSOs. The Administrator will not grant
ISOs unless the stockholders have approved the Plan.

         The Administrator may impose such conditions on or charge such price for
the Stock Grants as it deems appropriate.

         Substitutions.   The Administrator may also grant Awards in substitution for
options or other equity interests held by individuals (i) as a result of their
employment by or services to Realty Information Group, L.P. or (ii) who become
Employees of the Company or of an Eligible Subsidiary as a result of the
Company’s acquiring or merging with the individual’s employer or acquiring its
assets. If necessary to conform the Awards to the interests for which they are
substitutes, the Administrator may grant substitute Awards under terms and
conditions that vary from those the Plan otherwise requires.

V.     Director Automatic Option Grants

         At the first meeting of the Board of Directors following each annual
meeting of stockholders, the Chairman of the Board of Directors and each
non-employee director serving on the Board of Directors shall receive an annual
automatic grant of options to purchase 5,000 shares of Common Stock of the
Company. These options shall have an exercise price equal to the Fair Market
Value (as defined below) of the Common Stock on the date of grant, and
one-fourth of the options will vest and become exercisable on each anniversary
of the date of grant, as long as such director is still serving on the
Company’s Board of Directors on such vesting date.

         In addition, at the first meeting of the Board of Directors following each
annual meeting of stockholders, the Chairman of each Board committee of the
Company shall receive an annual automatic grant of options to purchase 1,000
shares of Common Stock of the Company. These options shall have an exercise
price equal to the Fair Market Value of the Common Stock on the date of grant,
and one-fourth of the options will vest and become exercisable on each
anniversary of the date of grant, as long as such director is still serving on
the Company’s Board of Directors on such vesting date.

VI.     Date of Grant

         The Date of Grant will be the date as of which this Plan or the
Administrator grants an Award to a participant, as specified in the Plan or in
the Administrator’s minutes.

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VII.    Exercise Price

         The Exercise Price is the value of the consideration that a participant
must provide in exchange for one share of Common Stock. The Administrator will
determine the Exercise Price under each Award and may set the Exercise Price
without regard to the Exercise Price of any other Awards granted at the same or
any other time. The Company may use the consideration it receives from the
participant for general corporate purposes.

         The Exercise Price per share for NQSOs may not be less than 100% of the
Fair Market Value of a share on the Date of Grant. If an Option is intended to
be an ISO, the Exercise Price per share may not be less than 100% of the Fair
Market Value (on the Date of Grant) of a share of Common Stock covered by the
Option; provided, however, that if the Administrator decides to grant an ISO to
someone covered by Sections 422(b)(6) and 424(d) (as a
more-than-10%-stock-owner), the Exercise Price of the Option must be at least
110% of the Fair Market Value (on the Date of Grant).

         The Administrator may satisfy any state law requirements regarding
adequate consideration for Stock Grants by (i) issuing Common Stock held as
treasury stock or (ii) charging the recipients at least the par value for the
shares covered by the Stock Grant. The Administrator may designate that a
recipient may satisfy (ii) either by direct payments or by the Administrator’s
withholding from other payments due to the recipient.

         Fair
Market Value. Fair Market Value of a share of Common Stock for
purposes of the Plan will be determined as follows:

		
	 	         (a)   if the Common Stock is traded on a national securities exchange,
the closing sale price on that date;
	 
	 	         (b)   if the Common Stock is not traded on any such exchange, the
closing sale price as reported by the National Association of Securities
Dealers, Inc. Automated Quotation System (“Nasdaq”) for such date;
	 
	 	         (c)   if no such closing sale price information is available, the
average of the closing bid and asked prices as reported by Nasdaq for
such date; or
	 
	 	         (d)   if there are no such closing bid and asked prices, the average
of the closing bid and asked prices as reported by any other commercial
service for such date.

         For any date that is not a trading day, the Fair Market Value of a share
of Common Stock for such date shall be determined by using the closing sale
price or the average of the closing bid and asked prices, as appropriate, for
the immediately preceding trading day.

         The Fair Market Value will be deemed equal to the IPO price for any
Options granted as of the date on which the IPO’s underwriters price the IPO.

VIII.    Exercisability

         The Administrator will determine the times and conditions for exercise of
or purchase under each Award but may not extend the period for exercise beyond
the tenth anniversary of its Date of Grant (or five years for ISOs granted to
10% owners covered by Code Sections 422(b)(6) and 424(d)).

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         Awards will become exercisable at such times and in such manner as the
Administrator determines and the Award Agreement, if any, indicates; provided,
however, that the Administrator may, on such terms and conditions as it
determines appropriate, accelerate the time at which the participant may
exercise any portion of an Award or at which restrictions on Stock Grants
lapse. For Stock Grants, “exercise” refers to acceptance of the Award or lapse
of restrictions, as appropriate in context.

         If the Administrator does not specify otherwise, Options will become
exercisable and restrictions on Stock Grants (other than the Director Formula
Grants) will lapse as to one-third of the covered shares on each of the first,
second, and third anniversaries of the Date of Grant.

         No portion of an Award that is unexercisable at a participant’s
termination of employment will thereafter become exercisable, unless the Award
Agreement provides otherwise, either initially or by amendment.

         Change of Control. Upon a Change of Control (as defined below), all
Options held by current Employees and directors will become fully exercisable
and all restrictions on Stock Grants will lapse. A Change of Control for this
purpose means the occurrence, after the Company’s IPO, of any one or more of
the following events:

		
	 	         (a)      a person, entity, or group (other than the Company, any Company
subsidiary, any Company benefit plan, or any underwriter temporarily
holding securities for an offering of such securities) acquires ownership
of more than 80% of the undiluted total voting power of the Company’s
then-outstanding securities eligible to vote to elect members of the
Board (“Company Voting Securities”);
	 
	 	         (b)      consummation of a merger or consolidation of the Company into
any other entity — unless the holders of the Company Voting Securities
outstanding immediately before such consummation, together with any
trustee or other fiduciary holding securities under a Company benefit
plan, hold securities that represent immediately after such merger or
consolidation at least 20% of the combined voting power of the then
outstanding voting securities of either the Company or the other
surviving entity or its parent; or
	 
	 	         (c)      the stockholders of the Company approve (i) a plan of complete
liquidation or dissolution of the Company or (ii) an agreement for the
Company’s sale or disposition of all or substantially all the Company’s
assets, and such liquidation, dissolution, sale, or disposition is
consummated.

         Even if other tests are met, a Change of Control has not occurred under
any circumstance in which the Company files for bankruptcy protection or is
reorganized following a bankruptcy filing.

         The Adjustment Upon Changes in Capital Stock provisions will also apply if
the Change of Control is a Substantial Corporate Change (as defined in those
provisions).

IX.     Limitation on ISOs

         An Option granted to an employee will be an ISO only to the extent that
the aggregate Fair Market Value (determined at the Date of Grant) of the stock
with respect to which ISOs are exercisable for the first time by the optionee
during any calendar year (under the Plan and all other plans of the Company and
its subsidiary corporations, within the meaning of Code Section 422(d)), does
not exceed $100,000. This

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 limitation will be applied by taking Options into account in the order in
which such Options were granted. If, by design or operation, the Option
exceeds this limit, the excess will be treated as an NQSO.

X.     Method of Exercise

         To exercise any exercisable portion of an Award, the participant must:

		
	 	         (a)      Deliver a written notice of exercise to the Secretary of the
Company (or to whomever the Administrator designates), in a form
complying with any rules the Administrator may issue, signed by the
participant, and specifying the number of shares of Common Stock
underlying the portion of the Award the participant is exercising;
	 
	 	         (b)      Pay the full Exercise Price, if any, by cashier’s or certified
check for the shares of Common Stock with respect to which the Award is
being exercised, unless the Administrator consents to another form of
payment (which could include the use of Common Stock); and
	 
	 	         (c)      Deliver to the Administrator such representations and documents
as the Administrator, in its sole discretion, may consider necessary or
advisable.

         Payment in full of the Exercise Price need not accompany the written
notice of exercise provided the notice directs that the stock certificates for
the shares issued upon the exercise be delivered to a licensed broker
acceptable to the Company as the agent for the individual exercising the option
and at the time of closing of the sale of the Common Stock issued upon exercise
of the Option, the broker will tender to the Company cash or cash equivalents
acceptable to the Company and equal to the Exercise Price.

         If the Administrator agrees to payment through the tender to the Company
of shares of Common Stock, the individual must have held the stock being
tendered for at least six months at the time of surrender. Shares of stock
offered as payment will be valued, for purposes of determining the extent to
which the participant has paid the Exercise Price, at their Fair Market Value
on the date of exercise. The Administrator may also, in its discretion, accept
attestation of ownership of Common Stock and issue a net number of shares upon
Option exercise.

XI.    Award Expiration

         No one may exercise an Award more than ten years after its Date of Grant
(or five years, for an ISO granted to a more-than-10% shareholder). Unless the
Award Agreement provides otherwise, either initially or by amendment, no one
may exercise an Award after the first to occur of:

         Employment Termination. The 90th day after the date of termination of
employment (other than for death or Disability), where termination of
employment means the time when the employer-employee or other service-providing
relationship between the employee and the Company ends for any reason,
including retirement. Unless the Award Agreement provides otherwise,
termination of employment does not include instances in which the Company
immediately rehires a common law employee as an independent contractor. The
Administrator, in its sole discretion, will determine all questions of whether
particular terminations or leaves of absence are terminations of employment;

         Disability. For disability, the earlier of (i) the first anniversary of
the participant’s termination of employment for disability and (ii) thirty (30)
days after the participant no longer has a disability, where

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 “disability” means the inability to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment
that can be expected to result in death or that has lasted or can be expected
to last for a continuous period of not less than twelve months; or

	 	 	Death.    The date twelve months after the participant’s death.

         If exercise is permitted after termination of employment, the Award will
nevertheless expire as of the date that the former service provider violates
any covenant not to compete in effect between the Company and the former
employee. In addition, an optionee who exercises an Option more than 90 days
after termination of employment with the Company and/or the Eligible
Subsidiaries will only receive ISO treatment to the extent permitted by law,
and becoming or remaining an employee of another related company (that is not
an Eligible Subsidiary) or an independent contractor to the Company will not
prevent loss of ISO status as a result of the formal termination of employment.

         Nothing in this Plan extends the term of an Award beyond the tenth
anniversary of its Date of Grant, nor does anything in this Award Expiration
section make an Award exercisable that has not otherwise become exercisable.

XII.    Award Agreement

         Option Agreements will set forth the terms of each Option and will include
such terms and conditions, consistent with the Plan, as the Administrator may
determine are necessary or advisable. To the extent the agreement is
inconsistent with the Plan, the Plan will govern. The Option Agreements may
contain special rules. The Administrator may, but is not required to, issue
agreements for Stock Grants.

XIII.    Stock Subject to Plan

         Except as adjusted below under Corporate Changes, the aggregate number of
shares of Common Stock that may be issued under the Awards (whether ISOs,
NQSOs, or Stock Grants) may not exceed 3,750,000 shares and the maximum number
of shares that may be granted under Awards for a single individual in a
calendar year may not exceed 400,000 shares. (The individual maximum applies
only to Awards first made under this Plan and not to Awards made in
substitution of a prior employer’s options or other incentives, except as Code
Section 162(m) otherwise requires.) The Common Stock will come from either
authorized but unissued shares or from previously issued shares that the
Company reacquires, including shares it purchases on the open market. If any
Award expires, is canceled, or terminates for any other reason, the shares of
Common Stock available under that Award will again be available for the
granting of new Awards (but will be counted against that calendar year’s limit
for a given individual).

         No adjustment will be made for a dividend or other right for which the
record date precedes the date of exercise.

         The participant will have no rights of a stockholder with respect to the
shares of stock subject to an Award except to the extent that the Company has
issued certificates for, or otherwise confirmed ownership of, such shares upon
the exercise of the Award.

         The Company will not issue fractional shares pursuant to the exercise of
an Award, but the Administrator may, in its discretion, direct the Company to
make a cash payment in lieu of fractional shares.

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XIV.    Person Who May Exercise

         During the participant’s lifetime, only the participant or his duly
appointed guardian or personal representative may exercise the Awards. After
his death, his personal representative or any other person authorized under a
will or under the laws of descent and distribution may exercise any then
exercisable portion of an Award. If someone other than the original recipient
seeks to exercise any portion of an Award, the Administrator may request such
proof as it may consider necessary or appropriate of the person’s right to
exercise the Award.

XV.    Adjustments upon Changes in Capital Stock

         Subject to any required action by the Company (which it shall promptly
take) or its stockholders, and subject to the provisions of applicable
corporate law, if, after the Date of Grant of an Award:

		
	 	         (a)      the outstanding shares of Common Stock increase or decrease or
change into or are exchanged for a different number or kind of security
by reason of any recapitalization, reclassification, stock split, reverse
stock split, combination of shares, exchange of shares, stock dividend,
or other distribution payable in capital stock, or
	 
	 	         (b)      some other increase or decrease in such Common Stock occurs
without the Company’s receiving consideration,

         the Administrator may make a proportionate and appropriate adjustment in
the number of shares of Common Stock underlying each Award, so that the
proportionate interest of the participant immediately following such event
will, to the extent practicable, be the same as immediately before such event.
(This adjustment does not apply to Common Stock that the optionee has already
purchased nor to Stock Grants that are already nonforfeitable, except to the
extent of similar treatment for all stockholders.) Unless the Administrator
determines another method would be appropriate, any such adjustment to an Award
will not change the total price with respect to shares of Common Stock
underlying the unexercised portion of the Award but will include a
corresponding proportionate adjustment in the Award’s Exercise Price.

         The Administrator will make a commensurate change to the maximum number
and kind of shares provided in the Stock Subject to Plan section.

         Any issue by the Company of any class of preferred stock, or securities
convertible into shares of common or preferred stock of any class, will not
affect, and no adjustment by reason thereof will be made with respect to, the
number of shares of Common Stock subject to any Award or the Exercise Price
except as this Adjustments section specifically provides. The grant of an
Award under the Plan will not affect in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure, or to merge or to consolidate, or to
dissolve, liquidate, sell, or transfer all or any part of its business or
assets.

         Substantial Corporate Change. Upon a Substantial Corporate Change, the
Plan and any unexercised Awards will terminate unless provision is made in
writing in connection with such transaction for:

		
	 	         (a)     the assumption or continuation of outstanding
Awards, or

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	 	         (b)     the substitution for such options or grants of any options or
grants covering the stock or securities of a successor employer
corporation, or a parent or subsidiary of such successor, with
appropriate adjustments as to the number and kind of shares of stock
and prices, in which event the Awards will continue in the manner and
under the terms so provided.

         Unless the Board determines otherwise, if an Award would otherwise
terminate pursuant to the preceding sentence, participants who are then
Employees or directors of the Company will have the right, at such time before
the consummation of the transaction causing such termination as the Board
reasonably designates, to exercise any unexercised portions of the Award,
whether or not they had previously become exercisable. However, unless the
Board determines otherwise, the acceleration will not occur if it would render
unavailable “pooling of interest” accounting for any reorganization, merger, or
consolidation of the Company.

	 	 	A Substantial Corporate Change means the:

		
	 	         (a)      dissolution or liquidation of the Company,
	 
	 	         (b)      merger, consolidation, or reorganization of the Company with one
or more corporations in which the Company is not the surviving
corporation,
	 
	 	         (c)      the sale of substantially all of the assets of the Company to
another corporation, or
	 
	 	         (d)      any transaction (including a merger or reorganization in which
the Company survives) approved by the Board that results in any person or
entity (other than any affiliate of the Company as defined in Rule
144(a)(1) under the Securities Act) owning 100% of the combined voting
power of all classes of stock of the Company.

XVI.    Subsidiary Employees

         Employees of Company Subsidiaries will be entitled to participate in the
Plan, except as otherwise designated by the Board of Directors or the
Committee.

         Eligible Subsidiary means each of the Company’s Subsidiaries, except as
the Board otherwise specifies. For ISO grants, Subsidiary means any corporation
(other than the Company) in an unbroken chain of corporations beginning with
the Company if, at the time an ISO is granted to a Participant under the Plan,
each of the corporations (other than the last corporation in the unbroken
chain) owns stock possessing 50% or more of the total combined voting power of
all classes of stock in one of the other corporations in such chain. For
NQSOs, the Board or the Committee can use a different definition of Subsidiary
in its discretion.

XVII.    Legal Compliance

         The Company will not issue any shares of Common Stock under an Award until
all applicable requirements imposed by Federal and state securities and other
laws, rules, and regulations, and by any applicable regulatory agencies or
stock exchanges, have been fully met. To that end, the Company may require the
participant to take any reasonable action to comply with such requirements
before issuing such shares. No provision in the Plan or action taken under it
authorizes any action that is otherwise prohibited by Federal or state laws.

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         The Plan is intended to conform to the extent necessary with all
provisions of the Securities Act of 1933 (“Securities
Act”) and the Exchange
Act and all regulations and rules the Securities and Exchange Commission issues
under those laws. Notwithstanding anything in the Plan to the contrary, the
Administrator
must administer the Plan, and Awards may be granted and exercised, only in
a way that conforms to such laws, rules, and regulations. To the extent
permitted by applicable law, the Plan and any Awards will be deemed amended to
the extent necessary to conform to such laws, rules, and regulations.

XVIII.    Purchase for Investment and Other Restrictions

         Unless a registration statement under the Securities Act covers the shares
of Common Stock a participant receives upon exercise of his Award, the
Administrator may require, at the time of such exercise or receipt of a grant,
that the participant agree in writing to acquire such shares for investment and
not for public resale or distribution, unless and until the shares subject to
the Award are registered under the Securities Act. Unless the shares are
registered under the Securities Act, the participant must acknowledge:

	 	(a)	 	that the shares purchased on exercise of the
Award are not so registered, and
	 
	 	(b)	 	that the participant may not sell or otherwise
transfer the shares unless:

	 	(1)	 	the shares have been registered under
the Securities Act in connection with the sale or
transfer thereof, or
	 
	 	(2)	 	counsel satisfactory to the Company
has issued an opinion satisfactory to the Company that
the sale or other transfer of such shares is exempt from
registration under the Securities Act, and
	 
	 	(3)	 	such sale or transfer complies with
all other applicable laws, rules, and regulations,
including all applicable Federal and state securities
laws, rules, and regulations.

         Additionally, the Common Stock, when issued upon the exercise of an Award,
will be subject to any other transfer restrictions, rights of first refusal,
and rights of repurchase set forth in or incorporated by reference into other
applicable documents, including the Company’s articles or certificate of
incorporation, by-laws, or generally applicable stockholders’ agreements.

         The Administrator may, in its sole discretion, take whatever additional
actions it deems appropriate to comply with such restrictions and applicable
laws, including placing legends on certificates and issuing stop-transfer
orders to transfer agents and registrars.

XIX.    Tax Withholding

         The participant must satisfy all applicable Federal, state, and local
income and employment tax withholding requirements before the Company will
deliver stock certificates upon the exercise of an Award. The Company may
decide to satisfy the withholding obligations through additional withholding on
salary or wages. If the Company does not or cannot withhold from other
compensation, the participant must pay the Company, with a cashier’s check or
certified check, the full amounts required by withholding. Payment of
withholding obligations is due before the Company issues shares with respect to
the Award. If the Committee so determines, the participant may instead satisfy
the withholding obligations by directing the Company to

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retain shares from the
Award exercise, by tendering previously owned shares, or by attesting to his
ownership of shares (with the distribution of net shares).

XX.     Transfers, Assignments and Pledges

         Unless the Administrator otherwise approves in advance in writing, an
Award may not be assigned, pledged, or otherwise transferred in any way,
whether by operation of law or otherwise or through any legal or equitable
proceedings (including bankruptcy), by the participant to any person, except by
will or by operation of applicable laws of descent and distribution. If Rule
16b-3 then applies to an Award, the participant may not transfer or pledge
shares of Common Stock acquired under a Stock Grant or upon exercise of an
Option until at least six (6) months have elapsed from (but excluding) the Date
of Grant, unless the Administrator approves otherwise in advance in writing.

XXI.    Amendment or Termination of Plan and Options

         The Board may amend, suspend, or terminate the Plan at any time, without
the consent of the participants or their beneficiaries; provided, however, that
no amendment will deprive any participant or beneficiary of any previously
declared Award. Except as required by law or by the Corporate Changes section,
the Administrator may not, without the participant’s or beneficiary’s consent,
modify the terms and conditions of an Award so as to adversely affect the
participant. No amendment, suspension, or termination of the Plan will,
without the participant’s or beneficiary’s consent, terminate or adversely
affect any right or obligations under any outstanding Awards.

XXII.    Privileges of Stock Ownership

         No participant and no beneficiary or other person claiming under or
through such participant will have any right, title, or interest in or to any
shares of Common Stock allocated or reserved under the Plan or subject to any
Award except as to such shares of Common Stock, if any, that have been issued
to such participant.

XXIII.    Effect on Other Plans

         Whether exercising or receiving an Award causes the participant to accrue
or receive additional benefits under any pension or other plan is governed
solely by the terms of such other plan.

XXIV.    Limitations on Liability

         Notwithstanding any other provisions of the Plan, no individual acting as
a director, employee, or agent of the Company shall be liable to any
participant, former participant, spouse, beneficiary, or any other person for
any claim, loss, liability, or expense incurred in connection with the Plan,
nor shall such individual be personally liable because of any contract or other
instrument he executes in such other capacity. The Company will indemnify and
hold harmless each director, employee, or agent of the Company to whom any duty
or power relating to the administration or interpretation of the Plan has been
or will be delegated, against any cost or expense (including attorneys’ fees)
or liability (including any sum paid in settlement of a claim with the Board’s
approval) arising out of any act or omission to act concerning this Plan unless
arising out of such person’s own fraud or bad faith.

XXV.    No Employment Contract

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         Nothing contained in this Plan constitutes an employment contract between
the Company and the participants. The Plan does not give any participant any
right to be retained in the Company’s employ, nor does it enlarge or diminish
the Company’s right to terminate the participant’s employment.

XXVI.    Applicable Law

         The laws of the State of Delaware (other than its choice of law
provisions) govern this Plan and its interpretation.

XXVII.    Duration of Plan

         Unless the Board extends the Plan’s term, the Administrator may not grant
Awards after May 8, 2008. The Plan will then terminate but will continue to
govern unexercised and unexpired Awards.

11exv10w2

 

EXHIBIT 10.2

SUBLEASE

         THIS SUBLEASE (this “Sublease”) is made and entered into as of the 14th
day of June, 2002, by and between GATEWAY, INC., a Delaware corporation
(hereinafter called “Sublandlord”), as sublandlord, and COSTAR REALTY
INFORMATION, INC., a Delaware corporation (hereinafter called “CRII”), and
COSTAR GROUP, INC., a Delaware corporation (hereinafter called “CGI”; CRII and
CGI are hereinafter collectively called “Subtenant”), jointly and severally, as
subtenant.

W I T N E S S E T H:

         WHEREAS, by that certain Amended and Restated Lease dated as of April 15,
1999 (the “Original Lease”), as amended by that certain First Amendment to
Amended and Restated Lease Agreement dated as of April 17, 2000 (the “First
Amendment”; the Original Lease and the First Amendment are hereinafter
collectively referred to with all amendments and agreements regarding same as
the “Prime Lease”), a copy of which Prime Lease is attached hereto as Exhibit
“A” and by this reference made a part hereof, Carramerica Development, Inc., a
Delaware corporation (hereinafter, together with its successors and assigns,
called “Landlord”), leased to Sublandlord the entirety of a building located at
4535 Towne Centre Court in San Diego, California containing approximately
41,551 gross rentable square feet (the “Premises” and sometimes also referred
to herein as the “Building”); and

         WHEREAS, subject to the consent of Landlord, Subtenant desires to sublease
from Sublandlord, and Sublandlord desires to sublease to Subtenant, the
Premises, all upon the terms and subject to the conditions and provisions
hereinafter set forth;

         NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and promises contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby mutually
acknowledged, Sublandlord and Subtenant hereby agree as follows:

         1.     Demise; Use. Sublandlord hereby leases to Subtenant and Subtenant
hereby leases from Sublandlord the Premises for the term and rental and upon
the other terms and conditions hereinafter set forth, to be used and occupied
by Subtenant solely for the purpose of general office purposes and for no other
purpose.

         2.     Term. The term of this Sublease shall commence (the “Commencement
Date”) on September 1, 2002 and, unless sooner terminated pursuant to the
provisions hereof, shall terminate on the earlier of August 31, 2007 and the
prior termination of the term of the Prime Lease. As used herein, the phrase
“Lease Year” shall mean the twelve calendar month period commencing on the Rent
Commencement Date (as hereinafter defined)(or, if the Rent Commencement Date is
not the first day of a calendar month, then commencing on the first day of the
calendar month during which the Rent Commencement Date occurs) and each
anniversary thereof, except that (a) the last Lease Year may not be twelve
calendar months and shall terminate on the last day of the term of this
Sublease, and (b) the first Lease Year shall

 

 

include that period of time from the
Commencement Date to and including the Rent Commencement Date. Notwithstanding
the foregoing, solely for purposes of performing certain improvements,
alterations and/or additions to the Premises, Subtenant shall be permitted
access to the Premises following Landlord’s consent to this Sublease but prior
to the Commencement Date (which Sublandlord and Subtenant anticipate as of the
time of the full execution of this Sublease shall be on or about the date upon
which this Sublease is fully executed and Landlord’s consent hereto is
obtained); provided, however, (1) in no event shall the foregoing be deemed to
be Sublandlord’s consent to any such alterations, additions and/or
improvements, which such alterations, additions and/or improvements shall be
performed in strict accordance with the terms and provisions of this Sublease,
(2) in the event that Subtenant occupies any portion of the Premises for the
conduct of its business operations therein prior to the Commencement Date, then
the Commencement Date shall be deemed to have occurred on the date upon which
Subtenant commenced the conduct of its business from the Premises,
notwithstanding that the conditions set forth above for the occurrence of the
Commencement Date have not been met, and (3) although Subtenant shall not be
obligated to pay any Minimum Rent during such pre-term occupancy, Subtenant
shall be responsible to comply with all of the other terms and conditions of
this Sublease with respect to such pre-term occupancy, including, without
limitation, the obligation to pay for any and all additional costs (including
pass-throughs from the Prime Lease) and all utilities provided to the Premises
during such period of time.

	 	3.	 	Base Rent.

		
	 	         (a) Commencing on the Rent Commencement Date, Subtenant shall pay to
Sublandlord base annual rental (hereinafter called “Minimum Rent”) for
the Premises as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annual Minimum	 	 	 	 	 	 	 	 
	 	 	Rent Rate Per	 	Annual Minimum Rent	 	 	 	 
	 	 	Rentable Square	 	(based on 41,551	 	Monthly
	Time Period	 	Foot	 	Rentable Square Feet)	 	Installments
	
	 	
	 	
	 	

	1st Lease Year
	 	$	20.64	 	 	$	857,612.64	 	 	$	71,467.72	 
	
	
	
	

	2nd Lease Year
	 	$	21.26	 	 	$	883,374.26	 	 	$	73,614.52	 
	
	
	
	

	3rd Lease Year
	 	$	21.90	 	 	$	909,966.90	 	 	$	75,830.58	 
	
	
	
	

	4th Lease Year
	 	$	22.55	 	 	$	936,975.05	 	 	$	78,081.25	 
	
	
	
	

	5th Lease Year
	 	$	23.23	 	 	$	965,229.73	 	 	$	80,435.81	 

	 	 	Annual Minimum Rent shall be due and payable in twelve equal
installments. Each such installment shall be due and payable in advance
on the fifth day prior to the first day of each calendar month of the
term hereof. If the term of this Sublease commences on a day other than
the first day of a month or ends on a day other than the last day of a
month, Minimum Rent for such month shall be prorated; prorated Minimum
Rent for any such 

2

 

	 	 	partial first month of the term hereof shall be paid on
the date on which the term commences. Notwithstanding anything in this
Sublease to the contrary, Subtenant shall pay to
Sublandlord the first monthly installment of Minimum Rent due under this
Sublease upon the execution and delivery of this Sublease by Subtenant to
Sublandlord.

		
	 	         (b) All Minimum Rent and additional rent shall be paid without
setoff or deduction whatsoever and shall be paid to Sublandlord at its
office at the following address: Real Estate Administration, Gateway,
Inc., 610 Gateway Drive Y91, North Sioux City, South Dakota 97049 or at
such other place as Sublandlord may designate by notice to Subtenant.
	 
	 	         (c) Sublandlord and Subtenant acknowledge and agree that so long as
Subtenant is not then in default under this Sublease, Subtenant shall be
entitled to an abatement of the Minimum Rent due and owing under this
Sublease for the first sixty (60) days of the term of this Sublease
following the Commencement Date (the expiration of such sixty (60) day
period is hereinafter referred to as the “Rent Commencement Date”);
provided, however, during such abatement period, Subtenant shall remain
responsible to pay under this Sublease any and all amounts due and owing
for additional rent due hereunder (including all pass-throughs from the
Prime Lease) and all utilities provided to the Premises.

	 	4.	 	Additional Rent; Payments; Interest.

		
	 	         (a) Except for “Base Rent” (as such term is defined in the Prime
Lease and for the payment of which Subtenant shall have no obligation
under this Sublease), Subtenant shall also pay to Sublandlord all other
amounts payable by Sublandlord under the Prime Lease which are
attributable to the Premises or attributable to Subtenant, its agents,
employees, customers or invitees, including without limitation, the
Operating Cost Share Rent, the Tax Share Rent, the Parking Rent, if any,
and the Additional Rent (as such terms are defined in the Prime Lease).
By way of example and not by way of limitation, charges by Landlord for
furnishing air conditioning or heating to the Premises at times in
addition to those certain times specified in the Prime Lease, costs
incurred by Landlord in repairing damage to the Building caused by an
employee of Subtenant, increased insurance premiums due as a result of
Subtenant’s use of the Premises, and amounts expended or incurred by
Landlord on account of any default by Subtenant which gives rise to a
default under the Prime Lease would be amounts payable by Subtenant
pursuant to this Subsection 4(a).
	 
	 	         (b) Each amount due to Sublandlord pursuant to Subsection 4(a) above
and each other amount payable by Subtenant hereunder, unless a date for
payment of such amount is provided for elsewhere in this Sublease, shall
be due and payable on the fifth day following the date on which Landlord
or Sublandlord has given notice to Subtenant of the amount thereof, but
in no event later than the date on which any such amount is due and
payable under the Prime Lease.
	 
	 	         (c) All amounts other than Minimum Rent payable to Sublandlord under this

3

 

		
	 	Sublease shall be deemed to be additional rent due under this
Sublease. All past due installments of Minimum Rent and additional rent
shall bear interest from the date due until paid at the rate per annum
equal to five percent (5%) in excess of the Prime Rate (as hereinafter
defined) in effect from time to time, which rate shall change from time
to time as of the effective date of each change in the Prime Rate, unless a lesser
rate shall then be the maximum rate permissible by law with respect
thereto, in which event said lesser rate shall be charged. For the
purposes of this Sublease, the term “Prime Rate” shall mean the rate of
interest announced from time to time by Bank One, N.A. as its prime or
corporate base rate.

		
	 	         (d) Subtenant shall pay Landlord on the due dates for services
requested by Subtenant which are billed by Landlord directly to Subtenant
rather than Sublandlord.
	 
	 	         (e) In addition to the Minimum Rent payable pursuant to Section 3
above, from and after the Commencement Date, for each calendar year of
the term, Subtenant, as additional rent, shall pay Subtenant’s Percentage
Share (which Sublandlord and Subtenant acknowledge and agree is equal to
100%) of Operating Cost Share Rent, Tax Share Rent, Parking Rent, if any,
and Additional Rent payable by Sublandlord for the then current calendar
year. Sublandlord shall give Subtenant written notice of Sublandlord’s
estimate of the amount of additional rent per month payable pursuant to
this Subsection for each calendar year following Sublandlord’s receipt
of Landlord’s estimate of such amounts payable under the Prime Lease.
Thereafter, the additional rent payable pursuant to this Subsection shall
be determined and adjusted in accordance with the provisions below.

		
	 	         (f) The determination and adjustment of additional rent contemplated
under Subsection 4(e) above shall be made in accordance with the
following procedures:

		
	 	         (1) Upon receipt of a statement from Landlord specifying the
estimated Operating Cost Share Rent, Tax Share Rent, Parking Rent,
if any, and Additional Rent to be charged to Sublandlord under the
Prime Lease with respect to each calendar year, or as soon after
receipt of such statement as practicable, Sublandlord shall give
Subtenant written notice of its estimate of additional rent payable
under Subsection 4(e) for the ensuing calendar year, which estimate
shall be prepared based on the estimate received from Landlord (as
Landlord’s estimate may change from time to time), together with a
copy of the statement received from Landlord. Sublandlord’s
estimate of additional rent to be paid by Subtenant pursuant to
this Sublease shall not exceed Subtenant’s Percentage Share of
Landlord’s estimate delivered to Sublandlord pursuant to the Prime
Lease (as Landlord’s estimate may change from time to time). On or
before the first day of each month during each calendar year,
Subtenant shall pay to Sublandlord as additional rent one-twelfth
(1/12th) of such estimated amount together with the Minimum Rent.
	 
	 	         (2) In the event Sublandlord’s notice set forth in Subsection
4(f)(1) is not given in December of the calendar year preceding the
calendar year for which Sublandlord’s notice is applicable, as the
case may be, then until the

4

 

		
	 	calendar month after such notice is
delivered by Sublandlord, Subtenant shall continue to pay to
Sublandlord monthly, during the ensuing calendar year, estimated
payments equal to the amounts payable hereunder during the calendar
year just ended. Upon receipt of any such post-December notice
Subtenant shall (i) commence as of the immediately following
calendar month, and continue for the remainder of the calendar
year, to pay to Sublandlord monthly such new estimated payments
and (ii) if the monthly installment of the new estimate of
such additional rent is greater than the monthly installment of the
estimate for the previous calendar year, pay to Sublandlord within
thirty (30) days of the receipt of such notice an amount equal to
the difference of such monthly installment multiplied by the number
of full and partial calendar months of such year preceding the
delivery of such notice.

		
	 	         (3) Within thirty (30) days after the receipt by Sublandlord
of a final statement of such costs from Landlord with respect to
each calendar year, Sublandlord shall deliver to Subtenant a
statement of the adjustment to be made pursuant to Section 4(f)
hereof for the calendar year just ended, together with a copy of
the statement received by Sublandlord from Landlord. If on the
basis of such statement Subtenant owes an amount that is less than
the estimated payments for the calendar year just ended previously
paid by Subtenant, Sublandlord shall credit such excess to the next
payments of rent coming due or, if the term of this Sublease is
about to expire, so long as Subtenant is not in default under this
Sublease, promptly refund such excess to Subtenant. If on the
basis of such statement Subtenant owes an amount that is more than
the estimated payments for the calendar year just ended previously
made by Subtenant, Subtenant shall pay the deficiency to
Sublandlord within thirty (30) days after delivery of the statement
from Sublandlord to Subtenant.
	 
	 	         (4) For partial calendar years during the term of this
Sublease, the amount of additional rent payable pursuant to
Subsection 4(f) that is applicable to that partial calendar year
shall be prorated based on the ratio of the number of days of such
partial calendar year falling during the term of this Sublease to
365. The expiration or earlier termination of this Sublease shall
not affect the obligations of Sublandlord and Subtenant pursuant to
this Section 4, and such obligations shall survive and remain to be
performed after any expiration or earlier termination of this
Sublease.

	 	5.	 	Condition of Premises and Construction of Improvements.

		
	 	         Subtenant hereby acknowledges and agrees that it is to demise the
Premises in an “as-is” condition and Subtenant’s taking possession of
the Premises shall be conclusive evidence as against Subtenant that
the Premises were in good order and satisfactory condition when
Subtenant took possession. No promise of Sublandlord to alter,
remodel or improve the Premises, and no representation respecting the
condition of the Premises have been made by Sublandlord to Subtenant.
Upon the expiration of the term hereof, or upon any earlier
termination of the term hereof or of Subtenant’s right to possession,
Subtenant shall surrender the Premises in at least as good condition
as at the 

5

 

		
	 	commencement of the term of this Sublease, ordinary wear and
tear excepted.

	 	6.	 	The Prime Lease.

		
	 	         (a) This Sublease and all rights of Subtenant hereunder and with
respect to the Premises are subject to the terms, conditions and
provisions of the Prime Lease. Subtenant hereby assumes and agrees to
perform faithfully and be bound by, with respect to the Premises, all of
Sublandlord’s obligations, covenants, agreements and liabilities under
the Prime Lease and all terms, conditions, provisions and restrictions
contained in the Prime Lease except:

		
	 	         (i) for the payment of “Base Rent” (as such term is defined in
the Prime Lease);
	 
	 	         (ii) that Subtenant shall not have any obligations to
construct or install tenant improvements except as may be provided
herein; and
	 
	 	         (iii) that the following provisions of the Prime Lease do not
apply to this Sublease: any provisions in the Prime Lease allowing
or purporting to allow Sublandlord any rent concessions or
abatements or construction or refurbishment allowances, any
provisions allowing Sublandlord to extend or renew the term of the
Prime Lease (including, without limitation, Section 30 of the Prime
Lease), any provisions of the Prime Lease granting any option to
purchase or lease the Building or any other space in the Building
or Project (including, without limitation, Section 39 of the Prime
Lease), Section 17.E. of the Prime Lease, Section 26.J. of the
Prime Lease, Section 28.H. of the Prime Lease, and Section 36 of
the Prime Lease.

		
	 	         (b) Without limitation of the foregoing:

		
	 	         (i) Subtenant shall not make any changes, alterations or
additions in or to the Premises except as otherwise expressly
provided herein. In connection therewith, Sublandlord and Subtenant
acknowledge and agree that Subtenant may desire to make certain
alterations, additions and/or improvements to the Premises
following its occupancy thereof (hereinafter referred to as the
“Subtenant Work”). Such Subtenant Work shall be performed at the
sole cost and expense of Subtenant and shall strictly conform to
all the terms and provisions of the Prime Lease. Subtenant shall
obtain the approval of both the Landlord and Sublandlord with
respect to any and all aspects of the Subtenant Work prior to
commencing same;
	 
	 	         (ii) If Subtenant desires to take any other action and the
Prime Lease would require that Sublandlord obtain the consent of
Landlord before undertaking any action of the same kind, Subtenant
shall not undertake the same without the prior written consent of
Sublandlord. Sublandlord may condition its consent on the consent
of Landlord being obtained and may require Subtenant to contact
Landlord directly for such consent;

6

 

		
	 	         (iii) All rights given to Landlord and its agents and
representatives by the Prime Lease to enter the premises covered by
the Prime Lease shall inure to the benefit of Sublandlord and their
respective agents and representatives with respect to the Premises;
	 
	 	         (iv) Sublandlord shall also have all other rights, and all
privileges, options, reservations and remedies, granted or allowed
to, or held by, Landlord under the Prime Lease;
	 
	 	         (v) Subtenant shall maintain insurance of the kinds and in the
amounts required to be maintained by Sublandlord under the Prime
Lease. All policies of liability insurance shall name as
additional insureds the Landlord and Sublandlord and their
respective officers, directors or partners, as the case may be, and
the respective agents and employees of each of them; and
	 
	 	         (vi) Subtenant shall not do anything or suffer or permit
anything to be done which could result in a default under the
Prime Lease or permit the Prime Lease to be canceled or terminated.

		
	 	         (c) Notwithstanding anything contained herein or in the Prime Lease
which may appear to be to the contrary, Sublandlord and Subtenant hereby
agree as follows:

		
	 	         (i) (A) Subtenant shall not, without the
prior written consent of Sublandlord, assign, mortgage,
pledge, hypothecate or otherwise transfer or permit the
transfer of this Sublease or any interest of Subtenant in
this Sublease, by operation of law or otherwise, or permit
the use of the Premises or any part thereof by any persons
other than Subtenant and Subtenant’s employees, or sublet
the Premises or any part thereof. Sublandlord shall not
unreasonably withhold, condition or delay its consent to
any such transfer; provided, however, it shall not be
unreasonable for Sublandlord to withhold its consent to
such transfer if (1) Subtenant is then in default under
any of the terms and conditions of this Sublease, (2) the
proposed transferee is not sufficiently creditworthy, in
Sublandlord’s sole determination, and (3) the proposed
transferee is a competitor of Sublandlord or is a
governmental agency (the foregoing reasons are not meant
to be an exhaustive list of the bases upon which
Sublandlord may withhold its consent to such a transfer);
	 
	 	               (B) Notwithstanding the foregoing, in no event shall
Subtenant be obligated to obtain the consent of Sublandlord
in connection with any sub-sublet of all or any portion of
the Premises to any entity which is in control of, under
common control, or controlled by, Subtenant (any such entity
is referred to herein as an “Affiliate”) or an assignment of
Subtenant’s interest hereunder to any Affiliate of Subtenant
or in connection with the merger, consolidation or
reorganization of Subtenant with any other entity or the sale
of all or substantially all of Subtenant’s 

7

 

		
	 	stock or assets
provided the following conditions are met: (1) to the extent
that the Landlord’s
consent under the Prime Lease is required in connection with
such a transfer, Subtenant obtains same at its sole cost and
expense and provides evidence of same to Sublandlord, (2)
Subtenant provides written notice to Sublandlord and Landlord
not less than ten (10) business days prior to the
effectiveness of such transfer, (3) in the case of a
sub-sublet or actual assignment of this Sublease (as opposed
to a transfer by operation of law, such as a merger), such
sub-subtenant or assignee enters into an agreement in form
and content reasonably satisfactory to Sublandlord assuming
all of the obligations of the Subtenant hereunder, whether
accruing prior to or after the effectiveness of the transfer,
(4) there is no release of the Subtenant in connection with
any such transfer, (5) the net worth of the Subtenant entity
which is liable for the terms and provisions of this Sublease
immediately following such transfer is satisfactory to
Sublandlord, and (6) no default has occurred under this
Sublease beyond applicable notice and cure periods (the
transfers noted in this clause (B) are referred to herein as
“Permitted Transfers”);

		
	 	         (C) Further, other than in connection with any
Permitted Transfers, in the event of any assignment of this
Sublease or sub-sublease of the Premises by Subtenant,
Subtenant shall pay to Sublandlord fifty percent (50%) of any
consideration received by Subtenant for such assignment or
sub-sublease, as the case may be, in excess of the rent
payable under this Sublease and the reasonable actual
out-of-pocket cost incurred by Subtenant solely for brokerage
commissions, legal fees and any costs of alterations
necessary to effect such transfer, such payment to be
provided to Sublandlord no later than thirty (30) days after
the determination thereof and the date such excess rent is
received by Subtenant;

		
	 	         (ii) neither rental nor other payments hereunder shall abate
by reason of any damage to or destruction of the Premises, the
premises subject to the Prime Lease, or the Building or any part
thereof, unless, and then only to the extent that, rental and such
other payments actually abate under the Prime Lease with respect to
the Premises on account of such event;
	 
	 	         (iii) notwithstanding clause (c)(ii) above, in the event that
Sublandlord receives an abatement of rent due under the Prime Lease
pursuant to the provisions of Section 4.F. thereof, then Subtenant
shall be entitled the same abatement of rent under this Sublease;
	 
	 	         (iv) Subtenant shall not have any right to any portion of the
proceeds of any award for a condemnation or other taking, or a
conveyance in lieu thereof, of all or any portion of the Premises;
	 
	 	         (v) If the Prime Lease gives Sublandlord any right to
terminate the

8

 

		
	 	Prime Lease in the event of any casualty or
condemnation of the Premises, so long as (1) Subtenant is not in
default under this Sublease beyond applicable notice and
cure periods, and (2) such right to so terminate the Prime Lease is
then effective and applicable, Subtenant shall be entitled to the
same right to so terminate this Sublease as afforded to Sublandlord
under the Prime Lease except that Subtenant shall be required to
give notice to Sublandlord of such election to so terminate this
Sublease with sufficient time so as to provide Sublandlord with not
less than ten (10) business days following Sublandlord’s receipt of
such written notice of Subtenant’s election to so terminate this
Sublease to permit Sublandlord to elect to terminate the Prime
Lease pursuant to the terms and conditions of the Prime Lease;
	 
	 	         (vi) Notwithstanding anything contained in Section 22.J. of
the Prime Lease, following a written request from Subtenant,
Sublandlord shall subordinate any statutory or contractual lien and
security interest it may have on Subtenant’s equipment, furniture,
moveable trade fixtures or other personal property owned by
Subtenant and kept at the Premises to the lien of any bona fide
vendor or institutional lender providing financing for Subtenant to
acquire such equipment, furniture, moveable trade fixtures or other
personal property, such subordination to be pursuant to an
instrument which is reasonably satisfactory to Sublandlord;
	 
	 	         (vii) Subtenant shall not have any right to exercise or have
Sublandlord exercise any option under the Prime Lease, including,
without limitation, any option to extend the term of the Prime
Lease or lease additional space; and
	 
	 	         (viii) In the event of any conflict between the terms,
conditions and provisions of the Prime Lease and of this Sublease,
the terms, conditions and provisions of this Sublease shall, in all
instances, govern and control.

		
	 	         (d) It is expressly understood and agreed that Sublandlord does not
assume and shall not have any of the obligations or liabilities of
Landlord under the Prime Lease and that Sublandlord is not making the
representations, warranties or indemnifications, if any, made by Landlord
in the Prime Lease. With respect to work, services, repairs and
restoration or the performance of other obligations required of Landlord
under the Prime Lease, Sublandlord’s sole obligation with respect thereto
shall be to request the same, upon written request from Subtenant, and to
use reasonable efforts, at Subtenant’s sole cost and expense, to obtain
the same from Landlord. Sublandlord shall not be liable in damages, nor
shall rent abate hereunder, for or on account of any failure by Landlord
to perform the obligations and duties imposed on it under the Prime
Lease. Sublandlord and Subtenant acknowledge and agree that any repair,
maintenance and/or replacement obligations with respect to the Premises
which are the responsibility of the Sublandlord, as tenant under the
Prime Lease, shall be performed by Subtenant at Subtenant’s sole cost and
expense. In the event that a condition exists in the Premises that
Landlord is obligated to repair under the terms of the Prime Lease,
Subtenant shall so advise Sublandlord, and Sublandlord, in turn, shall
promptly advise Landlord thereof. At Subtenant’s request, in the event
that Landlord fails to fulfill any repair or maintenance obligation under
the terms of the 

9

 

		
	 	Prime Lease with respect to the Premises, Sublandlord
shall use its good faith, due diligent and commercially reasonable
efforts to have Landlord fulfill such repair and maintenance obligations,
all of which reasonable efforts shall at be Subtenant’s sole cost and
expense. All such amounts which are payable by
Subtenant hereunder shall be deemed additional rent due under this
Sublease. Sublandlord and Subtenant acknowledge and agree that the
provisions of Section 26.J. of the Prime Lease provide the “Tenant” under
the Prime Lease certain self-help and offset rights under the Prime Lease
in the event of a default thereunder by the Landlord. In connection
therewith, in the event of such a default by the Landlord under the Prime
Lease, upon written request by Subtenant, Sublandlord shall be entitled
(but shall have no obligation) to take such steps as are reasonably
necessary and permitted under the Prime Lease to effect such self-help
and offset rights under the Prime Lease. Subtenant hereby covenants and
agrees that it shall be responsible to reimburse to Sublandlord any and
all of the costs and expenses incurred by Sublandlord in effecting such
cure, to the extent same are not offset against the rent owed by
Sublandlord under the Prime Lease. Such amounts shall be deemed
additional rent due and owing under this Sublease. Alternatively,
Sublandlord may elect to have Subtenant perform such self-help rights
under the Prime Lease upon the following terms and conditions: (i) such
rights are exercised by Subtenant at its sole cost and expense, (ii)
Subtenant obtains the prior written approval by Sublandlord of the acts
to be taken by Subtenant with respect to such self-help rights and (iii)
Subtenant performs such self-help rights in strict accordance with the
terms and provisions of the Prime Lease. In the event that Subtenant
performs such self-help
acts in accordance with the foregoing terms and
provisions and as a result thereof, Sublandlord receives an offset of the
rent due under the Prime Lease, then Subtenant shall receive the same
offset against the rent due under this Sublease.

		
	 	         (e) Nothing contained in this Sublease shall be construed to create
privity of estate or contract between Subtenant and Landlord, except the
agreements of Subtenant in Sections 10 and 11 hereof in favor of
Landlord, and then only to the extent of the same.
	 
	 	         (f) Sublandlord hereby represents and warrants as to the following:
(i) as of the date of Sublandlord’s execution of this Sublease,
Sublandlord has received no notice of default under the Prime Lease from
Landlord, (ii) as of the date of Sublandlord’s execution of this
Sublease, Sublandlord has not forwarded any notice of default to Landlord
under the Prime Lease which has not been cured, and (iii) as of the date
of Sublandlord’s execution of this Sublease, to Sublandlord’s actual
knowledge (with no investigation or inquiry), Sublandlord has received no
notice that the Premises is not in compliance with applicable laws,
codes, rules and/or regulations of applicable governing authorities.

		
	 	         (g) Subject to the terms and provisions of the Prime Lease and this
Sublease, so long as Subtenant shall perform all of its obligations
under this Sublease, Subtenant shall enjoy peaceful and quiet possession
of the Premises in accordance with the terms and provisions of this
Sublease against any party claiming through or under Sublandlord. In
addition to the foregoing, Sublandlord hereby covenants and agrees that
it shall not enter into any modification or amendment to the Prime Lease
which materially and

10

 

		
	 	adversely affect Subtenant’s rights under this Sublease.

	 	7.	 	Default by Subtenant.

		
	 	         (a) Upon the happening of any of the following:

		
	 	         (i) Subtenant fails to pay any Minimum Rent within five (5)
days after the date it is due;
	 
	 	         (ii) Subtenant fails to pay any other amount due from
Subtenant hereunder and such failure continues for three (3) days
after notice thereof from Sublandlord to Subtenant;
	 
	 	         (iii) Subtenant fails to perform or observe any other covenant
or agreement set forth in this Sublease and such failure continues
for seven (7) days after notice thereof from Sublandlord to
Subtenant; or
	 
	 	         (iv) any other event occurs which involves Subtenant or the
Premises and which would constitute a default under the Prime Lease
if it involved Sublandlord or the premises covered by the Prime
Lease;

	 	 	Subtenant shall be deemed to be in default hereunder, and Sublandlord may
exercise, without limitation of any other rights and remedies available
to it hereunder or at law or in equity, any and all rights and remedies
of Landlord set forth in the Prime Lease in the event of a default by
Sublandlord thereunder.

		
	 	         (b) In the event Subtenant fails or refuses to make any payment or
perform any covenant or agreement to be performed hereunder by Subtenant,
Sublandlord may make such payment or undertake to perform such covenant
or agreement (but shall not have any obligation to Subtenant to do so).
In such event, amounts so paid and amounts expended in undertaking such
performance, together with all costs, expenses and attorneys’ fees
incurred by Sublandlord in connection therewith, shall be additional rent
hereunder.

         8.     Nonwaiver. Failure of Sublandlord to declare any default or delay in
taking any action in connection therewith shall not waive such default. No
receipt of moneys by Sublandlord from Subtenant after the termination in any
way of the term or of Subtenant’s right of possession hereunder or after the
giving of any notice shall reinstate, continue or extend the term or affect any
notice given to Subtenant or any suit commenced or judgment entered prior to
receipt of such moneys.

         9.     Cumulative Rights and Remedies. All rights and remedies of Sublandlord
under this Sublease shall be cumulative and none shall exclude any other rights
or remedies allowed by law.

11

 

         10.     Waiver of Claims and Indemnity.

                  (a) Subtenant hereby releases and waives any and all claims against
Landlord and Sublandlord and each of their respective officers, directors,
partners, agents and employees for injury or damage to person, property or
business sustained in or about the Building or the Premises by Subtenant other
than by reason of gross negligence or willful misconduct and except in any case
which would render this release and waiver void under law.

		
	 	         (b) Subtenant agrees to indemnify, defend and hold harmless Landlord
and its beneficiaries, Sublandlord and the managing agent of the Building
and each of their respective officers, directors, partners, agents and
employees, from and against any and all claims, demands, costs and
expenses of every kind and nature, including attorneys’ fees and
litigation expenses, arising from Subtenant’s occupancy of the Premises,
Subtenant’s construction of any leasehold improvements in the Premises or
from any breach or default on the part of Subtenant in the performance of
any agreement or covenant of Subtenant to be performed or performed under
this Sublease or pursuant to the terms of this Sublease, or from any act
or neglect of Subtenant or its agents, officers, employees, guests,
servants, invitees or customers in or about the Premises. In case any
such proceeding is brought against any of said indemnified parties,
Subtenant covenants, if requested by Sublandlord, to defend such
proceeding at its sole cost and expense by legal counsel reasonably
satisfactory to Sublandlord.

         11.     Waiver of Subrogation. Anything in this Sublease to the contrary
notwithstanding, Sublandlord and Subtenant each hereby waive any and all rights
of recovery, claims, actions or causes of action against the other and the
officers, directors, partners, agents and employees of each of them, and
Subtenant hereby waives any and all rights of recovery, claims, actions or
causes of action against Landlord and its agents and employees for any loss or
damage that may occur to the Premises or any improvements thereto, or any
personal property of any person therein or in the Building, by reason of fire,
the elements or any other cause insured against under valid and collectible
fire and extended coverage insurance policies, regardless of cause or origin,
including negligence, except in any case which would render this waiver void
under law, to the extent that such loss or damage is actually recovered under
said insurance policies.

         12.     Brokerage Commissions. Each party hereby represents and warrants to
the other that other than Julien J. Studley, Inc. and BRE Commercial Real
Estate (whose commissions shall be paid by Sublandlord) it has had no dealings
with any real estate broker or agent in connection with this Sublease, and that
it knows of no real estate broker or agent who is or might be entitled to a
commission in connection with this Sublease. Each party agrees to protect,
defend, indemnify and hold the other harmless from and against any and all
claims inconsistent with the foregoing representations and warranties for any
brokerage, finder’s or similar fee or commission in connection with this
Sublease, if such claims are based on or relate to any act of the indemnifying
party which is contrary to the foregoing representations and warranties.

         13.     Successors and Assigns. This Sublease shall be binding upon and inure
to the benefit of the successors and assigns of Sublandlord and shall be
binding upon and inure to the benefit of the successors of Subtenant and, to
the extent any such assignment may be approved,

12

 

Subtenant’s assigns. The provisions of Subsection 6(e) and Sections 10 and 11 hereof shall inure to
the benefit of the successors and assigns of Landlord.

         14.     Entire Agreement. This Sublease contains all the terms, covenants,
conditions and agreements between Sublandlord and Subtenant relating in any
manner to the rental, use and occupancy of the Premises. No prior agreement or
understanding pertaining to the same shall be valid or of any force or effect.
The terms, covenants and conditions of this Sublease cannot be altered,
changed, modified or added to except by a written instrument signed by
Sublandlord and Subtenant.

         15.     Notices.

                  (a) In the event any notice from the Landlord or otherwise relating to the
Prime Lease is delivered to the Premises or is otherwise received by Subtenant,
Subtenant shall, as soon thereafter as possible, but in any event within
twenty-four (24) hours, deliver such notice to Sublandlord if such notice is
written or advise Sublandlord thereof by telephone if such notice is oral.

		
	 	         (b) Notices and demands required or permitted to be given by either
party to the other with respect hereto or to the Premises shall be in
writing and shall not be effective for any purpose unless the same shall
be served either by personal delivery with a receipt requested, by
overnight air courier service or by United States certified or registered
mail, return receipt requested, postage prepaid; provided, however, that
all notices of default shall be served either by personal delivery with a
receipt requested or by overnight air courier service, addressed as
follows:

	 	 	 
	if to Sublandlord:	 	
c/o GATEWAY, INC.

Real Estate Administration

610 Gateway Drive Y91

North Sioux City, South Dakota 97049
	 
	and	 	
c/o GATEWAY, INC.

14303 Gateway Place

Poway, California 92064

Attn: General Counsel
	 
	if to Subtenant:	 	
COSTAR REALTY INFORMATION, INC.

4535  Towne Centre Court

San Diego, California

Attn.: Facility Manager
	 
	and	 	
COSTAR GROUP, INC.

2 Bethesda Metro Center, 10th Floor

Bethesda, Maryland 20814

Attn: Director of Facilities

	 	 	 	Notices and demands shall be deemed to have been given two (2) days after
mailing, if mailed, or, if made by personal delivery or by overnight air
courier service, then upon 

13

 

	 	 	 	such delivery. Either party may change its address for receipt of notices by
giving notice to the other party.

         16.     Authority. Subject to Section 19 hereof, each party represents and
warrants to the other that this Sublease has been duly authorized, executed and
delivered by and on behalf of such party and constitutes the valid, enforceable
and binding agreement of such party.

         17.     Limitation on Liability. Sublandlord shall not be liable for
personal injury or property damage to Subtenant, its officers, agents,
employees, invitees, guests, licensees or any other person in the Premises,
regardless of how such injury or damage may be caused; provided, however solely
as such waiver relates to claims of property damage, the foregoing shall not
limit or restrict any liability which may arise solely and directly due to the
gross negligence or willful misconduct of Sublandlord. Any property of
Subtenant kept or stored in the Premises shall be kept or stored at the sole
risk of Subtenant. Subtenant shall hold Sublandlord harmless from any claims
arising out of any personal injury or property damage occurring in the
Premises, including subrogation claims by Subtenant’s insurance carrier(s)
except to the extent noted in the first sentence of this Section 17.

         18.     Consents and Approvals. In any instance when Sublandlord’s consent
or approval is required under this Sublease, Sublandlord’s refusal to consent
to or approve any matter or thing shall be deemed reasonable if, among other
matters, such consent or approval is required under the provisions of the Prime
Lease incorporated herein by reference but has not been obtained from Landlord.
Except as otherwise provided herein, Sublandlord shall not unreasonably
withhold or delay its consent to or approval of a matter if such consent or
approval is required under the provisions of the Prime Lease and Landlord has
consented to or approved of such matter. If Subtenant shall seek the approval
by or consent of Sublandlord and Sublandlord shall fail or refuse to give such
consent or approval, Subtenant shall not be entitled to any damages for any
withholding or delay of such approval or consent by Sublandlord, it being
agreed that Subtenant’s sole remedy in connection with an alleged wrongful
refusal or failure to approve or consent shall be an action for injunction or
specific performance shall be available only in those cases where Sublandlord
shall have expressly agreed in this Sublease not to unreasonably withhold or
delay its consent.

         19.     Consent of Landlord. The obligations of Sublandlord and Subtenant
under this Sublease are conditioned and contingent upon the Landlord consenting
hereto. In the event Landlord’s consent is not obtained within thirty (30)
days after the date hereof this Sublease shall automatically terminate and
become null and void, and neither Sublandlord nor Subtenant shall have any
further obligations or liability hereunder or to each other with respect to the
Premises. Sublandlord hereby covenants and agrees to use its commercially
reasonable efforts to obtain Landlord’s consent to this Sublease as promptly as
reasonably possible following the full execution and delivery of this Sublease.

         20.     Examination. Submission of this instrument for examination or
signature by Subtenant does not constitute a reservation of or option for the
Premises or in any manner bind Sublandlord, and no lease, sublease or
obligation on Sublandlord shall arise until this instrument is signed and
delivered by Sublandlord and Subtenant and the consent of Landlord is obtained
as described in Section 19 above.

14

 

         21.     Security Deposit. Subtenant concurrently with the execution of this
Sublease, shall deposit with Sublandlord the sum of $284,440.41 (which
Sublandlord and Subtenant acknowledge and agree is equal to three (3) months’
gross rent due under this Sublease) as security for the faithful performance by
Subtenant of all terms, covenants and conditions of this Sublease in the form
of a letter of credit as more particularly set forth below. Such letter of
credit shall be in a form consistent with that form of letter of credit
attached to this Sublease as Exhibit “C” and issued upon a bank with a minimum
long term capital rating of “AA”, with a branch in San Diego, California for
purposes of Sublandlord’s ability to draw thereon and shall otherwise be
satisfactory to Sublandlord (in its sole and absolute discretion). Further,
such letter of credit shall be irrevocable, “evergreen”, “clean” and in the
full amount required naming Sublandlord as beneficiary, and providing for
partial and multiple draws and shall otherwise be satisfactory to Sublandlord
as set forth hereinabove. Such letter of credit shall be held by Sublandlord
as security for the faithful performance by Subtenant of all terms, covenants
and conditions of this Sublease. Subtenant agrees that Sublandlord may apply
(or draw upon, as the case may be) the security deposit to remedy any failure
by Subtenant to repair or maintain the Premises or to perform any other terms,
covenants and conditions contained herein or make any payment owing hereunder,
all following the expiration of applicable notice and cure periods. If
Subtenant has kept and performed all terms, covenants and conditions of this
Sublease during the term, Sublandlord will, within thirty (30) days after the
expiration hereof, promptly return the security deposit to Subtenant or the
last permitted assignee of Subtenant’s interest hereunder. Should Sublandlord
use (or draw upon, as the case may be) any portion of the security deposit to
cure any default by Subtenant hereunder, Subtenant shall forthwith replenish
the security deposit to the original amount. Sublandlord shall not be required
to keep the security deposit separate from its general funds, and Subtenant
shall not be entitled to interest on any such deposit. Subtenant hereby
acknowledges and agrees that Sublandlord may draw upon such letter of credit at
such time as Sublandlord is permitted to do so under this paragraph 21 or if
Subtenant fails to provide Sublandlord with a replacement letter of credit no
later than thirty (30) days prior to the expiration date of any then held
letter of credit in Sublandlord’s possession. In the event Sublandlord draws
down such letter of credit, then Sublandlord shall hold such cash security
deposit in accordance with the terms and provisions of this paragraph 21.

         22. Furniture. Sublandlord and Subtenant acknowledge and agree that
Subtenant shall be entitled to use, at no additional cost, fee or charge to
Subtenant imposed by Sublandlord, the furniture currently located within the
Premises and scheduled on Exhibit “B” hereto (the “Furniture”) during the term
of this Sublease, and any extensions thereof. During the term of this
Sublease, Subtenant shall be responsible, at Subtenant’s sole cost and expense,
to maintain such Furniture in good condition and repair and shall surrender
same to Sublandlord upon the expiration of the term of this Sublease or earlier
termination hereof in good condition and repair, subject to reasonable wear and
tear from Subtenant’s use of such Furniture during the term of this Sublease.
Subtenant acknowledges and agrees that it shall accept such furniture in its
“as-is” condition and in no event does Sublandlord make any representation or
warranty of any kind with respect to the Furniture or its adequacy for
Subtenant’s purposes and Sublandlord hereby disclaims the delivery of any such
warranties, including any warranty of merchantability, fitness for a particular
purpose or any thing or nature whatsoever.

15

 

         23.     Security System. Sublandlord and Subtenant acknowledge and agree that
there is currently located within the Premises a security system servicing the
Premises (except that Sublandlord acknowledge and agree that the data
processing equipment (the “Data Equipment”) for such security system is located
in a building adjacent to the Premises. Subtenant shall be entitled to use, at
no additional cost, fee or charge to Subtenant imposed by Sublandlord, the
security system currently located within the Premises and scheduled on Exhibit
“B-1” attached hereto (the “Security System”) during the term of this Sublease,
and any extensions thereof. Subtenant shall be responsible, at Subtenant’s
sole cost and expense, to surrender such Security System to Sublandlord upon
the expiration of the term of this Sublease or earlier termination hereof in
the condition and in the manner required under the Prime Lease. Subtenant
acknowledges and agrees it shall accept such security system in its “as-is”
condition and that in no event does Sublandlord make any representation or
warranty of any kind with respect to the Security System or its adequacy for
Subtenant’s purposes and Sublandlord hereby disclaims the delivery of any such
warranties, including any warranty of merchantability, fitness for a particular
purpose or any thing or nature whatsoever. Further, Subtenant hereby
acknowledges and agrees that in no event shall Subtenant have any right to use
or access the Data Equipment.

         24.     Server Infrastructure Network. Sublandlord and Subtenant acknowledge
and agree that there is currently located within the Premises server room
hardware, air conditioners and a fire suppression system (and related
furniture). Subtenant shall be entitled to use, at no additional cost, fee or
charge to Subtenant imposed by Sublandlord, such server room hardware, air
conditioners and a fire suppression system (and related furniture currently
located within the Premises and scheduled on Exhibit “B-2” attached hereto (the
“Server Infrastructure Network”) during the term of this Sublease, and any
extensions thereof. Subtenant shall be responsible, at Subtenant’s sole cost
and expense, to surrender such Server Infrastructure Network to Sublandlord
upon the expiration of the term of this Sublease or earlier termination hereof
in the condition and in the manner required under the Prime Lease. Subtenant
acknowledges and agrees it shall accept such Server Infrastructure Network in
its “as-is” condition and that in no event does Sublandlord make any
representation or warranty of any kind with respect to the Server
Infrastructure Network or its adequacy for Subtenant’s purposes and Sublandlord
hereby disclaims the delivery of any such warranties, including any warranty of
merchantability, fitness for a particular purpose or any thing or nature
whatsoever.

         25.     Parking. During the term of this Sublease, so long as Subtenant is
not in default under this Sublease, Subtenant and its employees shall be
entitled to use Subtenant’s Percentage Share of the parking rights granted to
Sublandlord, as Tenant, under the Prime Lease, including, without limitation,
the terms and provisions of Section 4.G. of the Prime Lease. Subtenant
acknowledges and agrees that its right to use such parking area shall be upon
the terms and conditions set forth in the Prime Lease, including, without
limitation, any and all regulations promulgated by Landlord with respect
thereto.

         26.     Signage. Sublandlord and Subtenant hereby acknowledge and agree that
so long as Subtenant is not in default under this Sublease, Subtenant shall be
granted the right provided to Sublandlord, as Tenant under the Prime Lease, to
install the Building Sign as set

16

 

forth in Section 31 of the Prime Lease,
subject to the following terms and conditions: (i) in no event shall Subtenant
be permitted to install such Building Sign unless and until Subtenant obtains
any and all necessary approvals in connection therewith, including, without
limitation, the approval of Landlord, Sublandlord and any necessary governmental entity or agency having
jurisdiction over the Premises; and (ii) Subtenant shall comply with all the
terms and provisions of the Prime Lease and this Sublease in connection with
the installation of same. Further, Sublandlord and Subtenant acknowledge and
agree that subject to approval by Sublandlord (such approval not to be
unreasonably withheld, conditioned or delayed) and Landlord, Subtenant shall
have the right to utilize Subtenant’s Percentage Share of the remaining signage
rights granted to Sublandlord under the Prime Lease, at Subtenant’s sole cost
and expense. Such signage rights shall be subject to clauses (i) and (ii) set
forth hereinabove with respect to the Building Sign. Any and all signage
installed by Subtenant at the Premises shall be the responsibility and at the
sole cost of Subtenant to repair, maintain, replace, and remove upon the
expiration of the term of this Sublease or earlier termination hereof.
Subtenant shall repair any damage caused to the Premises as a result of any
such repair, maintenance, placement and/or removal of such signage.

         27.     Option to Extend. Sublandlord and Subtenant acknowledge and agree
that Subtenant shall have the right to extend the term of this Sublease through
August 31, 2012 (which is the expiration of the term of the Prime Lease) upon
the following terms and conditions: (i) Subtenant shall provide Sublandlord
with prior written notice of Subtenant’s election to so extend the term of this
Sublease not less than nine (9) months prior the expiration of the then current
term of this Sublease, time being of the essence; (ii) all of the terms and
conditions of such extension term shall be the same as during the initial term
of this Sublease except that the Minimum Rent shall be equal to the then
current fair market rental rate for the Premises as agreed to between
Sublandlord and Subtenant in their reasonable and good faith determination (if
Sublandlord and Subtenant are unable to agree upon the then current fair market
rental rate for the Premises within thirty (30) days following Sublandlord’s
receipt of Subtenant’s exercise of its option to extend the Sublease term as
set forth herein, then the parties shall submit such dispute to arbitration in
accordance with the then current rules of the American Arbitration Association
in order to resolve such dispute, with each party bearing one-half (1/2) of the
cost of such arbitration); and (iii) Subtenant shall have no right to extend
the term of this Sublease (a) if upon the exercise thereof by Subtenant and/or
on the date upon which such extended term is to begin Subtenant is in default
under this Sublease and/or (b) if Subtenant has assigned this Sublease or
sublet all or any portion of the Premises to any party other than an Affiliate
(as defined in Section 6(c)(i) of this Sublease).

         28.     Counterparts; Execution; Joint and Several Liability. This Sublease
may be executed in any number of counterparts, each of which when so executed
and delivered shall be deemed to be an original and all of which counterparts
taken together shall constitute but one and the same instrument. Signature
pages may be detached from the counterparts and attached to a single copy of
this Sublease to physically form one document. This Sublease may also be
delivered by telefacsimile and any signature of a party on a telefacsimile copy
shall be binding. Any party delivering an executed counterpart of this
Sublease by telefacsimile shall also deliver by overnight service to the other
party or parties an original counterpart of this Sublease, provided the failure
to deliver an original counterpart shall not affect the validity,
enforceability and binding effect of this Sublease. The obligations of CRII and
CGI shall be

17

 

joint and several and each of CRII and CGI shall be fully liable
for the obligations imposed on the Subtenant under this Sublease regardless of
the obligations of the other party. In no event shall Sublandlord be required
to proceed against one of the parties comprising Subtenant hereunder prior to
proceeding under this Sublease against the other party comprising Subtenant
hereunder.

         IN WITNESS WHEREOF, Sublandlord and Subtenant have executed this Sublease
as of the date aforesaid.

	 	 	 	 	 
	 	 	 	 	SUBLANDLORD:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	ATTEST:	 	GATEWAY, INC., a Delaware corporation
	
	
	
	

	By:	 	 	 	By:  /s/  Stephen Smurthwaite
	 	 	
	 	 Its:  Vice President
	   Its:	 	 	 	   
	 	 	

	 	 
	 	 	 	 	 
	
	
	
	

	 	 	 	 	SUBTENANT:
	
	
	
	

	 	 	 	 	 
	
	
	
	

	ATTEST:	 	COSTAR REALTY INFORMATION, INC.,

a Delaware corporation
	
	
	
	

	 	 	 	 	 
	
	
	
	

	By:  

   Its:	 	
/s/  Carla Garrett

  Secretary
	 	By:  /s/  Andrew Florance

   Its:  Chief Executive Officer
	
	
	
	

	 	 	 	 	 
	
	
	
	

	ATTEST:	 	COSTAR GROUP, INC.,

a Delaware corporation
	
	
	
	

	 	 	 	 	 
	
	
	
	

	By:  

   Its:	 	
/s/  Carla Garrett

  Secretary
	 	By:  /s/  Andrew Florance

   Its:  Chief Executive Officer

18

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