Document:

exv10w32

 

Exhibit 10.32

GLOBAL SECURE CORP.

INDEMNIFICATION AGREEMENT

     This Indemnification Agreement (the “Agreement”) is made as of August ___, 2005, by and
between Global Secure Corp., a Delaware corporation (the “Company”) and [name of indemnified
person]«Name» (the “Indemnitee”).

     A. The Company is aware that competent and experienced persons are increasingly reluctant to
serve as directors, officers, advisors, or agents of corporations unless they are protected by
comprehensive liability insurance or indemnification, due to increased exposure to litigation costs
and risks resulting from their service to such corporations, and due to the fact that the exposure
frequently bears no reasonable relationship to the compensation of such directors, officers,
advisors, and other agents.

     B. The statutes and judicial decisions regarding the duties of directors and officers are
often difficult to apply, ambiguous, or conflicting, and therefore fail to provide such directors,
officers, advisors, and agents with adequate, reliable knowledge of legal risks to which they are
exposed or information regarding the proper course of action to take.

     C. Plaintiffs often seek damages in such large amounts and the costs of litigation may be so
enormous (whether or not the case is meritorious), that the defense and/or settlement of such
litigation is often beyond the personal resources of directors, officers, advisors, and other
agents.

     D. The Company believes that it is unfair for its directors, officers, advisors, and agents
and the directors, officers, advisors, and agents of its subsidiaries to assume the risk of huge
judgments and other expenses which may occur in cases in which the director, officer, advisor, or
agent received no personal profit and in cases where the director, officer, advisor, or agent was
not culpable.

     E. The Company recognizes that the issues in controversy in litigation against a director,
officer, advisor, or agent of a corporation such as the Company or its subsidiaries are often
related to the knowledge, motives and intent of such director, officer, advisor, or agent, that he
is usually the only witness with knowledge of the essential facts and exculpating circumstances
regarding such matters, and that the long period of time which usually elapses before the trial or
other disposition of such litigation often extends beyond the time that the director, officer,
advisor, or agent can reasonably recall such matters and may extend beyond the normal time for
retirement for such director, officer, advisor, or agent with the result that he, after retirement
or in the event of his death, his spouse, heirs, executors or administrators, may be faced with
limited ability and undue hardship in maintaining an adequate defense, which may discourage such a
director, officer, advisor, or agent from serving in that position.

 

 

     F. Based upon their experience as business managers, the Board of Directors of the Company has
concluded that, to retain and attract talented and experienced individuals to serve as directors,
officers, advisors, and agents of the Company and its subsidiaries and to encourage such
individuals to take the business risks necessary for the success of the Company and its
subsidiaries, it is necessary for the Company to contractually indemnify its directors, officers,
advisors, and agents and the directors, officers, advisors, and agents of its subsidiaries, and to
assume for itself maximum liability for expenses and damages in connection with claims against such
directors, officers, advisors, and agents in connection with their service to the Company and its
subsidiaries, and has further concluded that the failure to provide such contractual
indemnification could result in great harm to the Company and its subsidiaries and the Company’s
stockholders.

     G. Section 145 of the General Corporation Law of Delaware, under which the Company is
organized, empowers the Company to indemnify its directors, officers, employees and agents by
agreement and to indemnify persons who serve, at the request of the Company, as the directors,
officers, employees or agents of other corporations or enterprises, and expressly provides that the
indemnification provided by Section 145 is not exclusive.

     H. The Company’s Certificate of Incorporation (as amended to date) (the “Certificate”) and
By-Laws (as amended to date) (the “By-Laws” and together with the Certificate, the “Charter
Documents”), do not prohibit or restrict contracts between the Company and its directors, officers,
advisors or agents with respect to indemnification of such directors, officers, advisors and
agents.

     I. The Company desires and has requested the Indemnitee to serve or continue to serve as a
director, officer, advisor, or agent of the Company and/or one or more subsidiaries of the Company
free from undue concern for claims for damages arising out of or related to such services to the
Company and/or one or more subsidiaries of the Company.

     J. Indemnitee is willing to serve, or to continue to serve, the Company and/or one or more
subsidiaries of the Company, provided that he is furnished the indemnity provided for herein.

     NOW, THEREFORE, to induce the Indemnitee to serve or continue to serve the Company and/or one
or more subsidiaries of the Company and in consideration of these premises and the mutual
agreements set forth in this Agreement, as well as other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and the Indemnitee hereby
agree as follows:

     1. Agreement to Serve. The Indemnitee agrees to serve the Company as a
[director/officer/advisor/agent] at the Company’s will (or under separate agreement, if such
agreement exists), in the capacity in which the Indemnitee has been requested to serve by the
Company, for so long as the Indemnitee is duly appointed or elected and qualified in accordance
with the Charter Documents, or until such time as the Indemnitee tenders the Indemnitee’s
resignation in writing or Indemnitee’s employment contract with the Company, if the same exists,
expires without extension or renewal or is terminated; provided, however, that the
Indemnitee may at any time and for any reason resign from such position, subject to any contractual
obligation that the Indemnitee may have assumed apart from this Agreement; and provided
further, that neither the Company nor any Subsidiary (as defined below) shall have any
obligation under this Agreement to continue the Indemnitee in any such position or at any
particular compensation.

     2. Indemnification.

          (a) Third Party Proceedings. The Company shall indemnify Indemnitee, to the fullest
extent permitted by law, if Indemnitee is or was a party or is threatened to be made a party to or
is

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otherwise involved in (including, without limitation, as a witness) any threatened, pending or
completed action, suit, arbitration, or other alternate dispute resolution mechanism, or
investigation, inquiry, administrative hearing or any other actual, threatened or completed
proceeding, whether civil, criminal, administrative or investigative, including, without
limitation, any appeal therefrom (collectively, “Proceeding”) (other than a Proceeding by or in the
right of the Company and/or any of its Subsidiaries to procure a judgment in its favor) by reason
of (or arising in part out of) any event or occurrence related to the fact that Indemnitee is or
was a director, officer, employee, advisor, and/or agent of the Company or any Subsidiary, or is or
was serving at the request of the Company as a director, officer, employee, advisor, or agent of
another corporation, partnership, joint venture, trust or other enterprise (collectively,
“Corporate Status”), or by reason of any action alleged to have been taken or omitted on the part
of Indemnitee while serving in such capacity, against all Expenses (as defined below), judgments,
penalties, fines and amounts paid in settlement, including without limitation all interest,
assessments and other charges paid or payable in connection with or in respect of the foregoing,
actually and reasonably incurred by Indemnitee or on his behalf in connection with such Proceeding
or any claim, issue or matter therein, provided Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best interests of the Company
or such Subsidiary, and, with respect to any criminal action or proceeding, had no reasonable cause
to believe Indemnitee’s conduct was unlawful.

          As used herein, (i) “Subsidiary” shall mean any corporation, limited liability company,
partnership, joint venture, trust or other entity of which more than 50% of the outstanding voting
securities are owned directly or indirectly by the Company, by the Company and one or more other
Subsidiaries, or by one or more other Subsidiaries, and (ii) “Expenses” shall mean all attorneys’
fees, retainers, court costs, transcript costs, fees of experts, witness fees, travel expenses,
duplicating costs, printing and binding costs, telephone charges, postage, delivery service fees,
and all other disbursements or expenses of the types customarily incurred in connection with
prosecuting, defending, preparing to prosecute or defend, investigating, being or preparing to be a
witness in, or otherwise participating in a Proceeding.

          (b) Proceedings by or in the Right of the Company. The Company shall indemnify
Indemnitee, to the fullest extent permitted by law, if, by reason of his Corporate Status, or by
reason of any action alleged to have been taken or omitted on the part of Indemnitee while serving
in such capacity, Indemnitee was or is a party or is threatened to be made a party to or is
otherwise involved in (e.g. as a witness) any threatened, pending or completed Proceeding brought
by or in the right of the Company or any Subsidiary to procure a judgment in its favor, against all
Expenses, and, to the extent permitted by law, amounts paid in settlement, including without
limitation all interest, assessments and other charges paid or payable in connection with or in
respect of the foregoing, actually and reasonably incurred by Indemnitee or on his behalf in
connection with such Proceeding or any claim, issue or matter therein, provided Indemnitee acted in
good faith and in a manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company or such Subsidiary, except that, if applicable law so provides, no such
indemnification shall be made under this Section 2(b) in respect of any Proceeding, claim, issue or
matter as to which Indemnitee shall have been finally adjudicated by court orders or judgment to be
liable to the Company or such Subsidiary, unless and only to the extent that the Delaware Court of
Chancery or any other court in which such Proceeding is or was brought shall determine upon
application that, despite the adjudication of liability but in view of all the circumstances of the
case, Indemnitee is fairly and reasonably entitled to indemnity for such reasonable Expenses and
other amounts as the Court of Chancery or other such court shall deem proper.

          (c) Mandatory Payment of Expenses. Notwithstanding any other provision of this
Agreement, to the extent that Indemnitee has been successful, on the merits or otherwise, in
defense of any Proceeding referred to in Section 2(a) or Section 2(b) above, or in defense of any
claim, issue or matter therein, Indemnitee shall be indemnified against all Expenses actually and
reasonably incurred by

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Indemnitee in connection therewith. Without limiting the generality of the foregoing, if any
Proceeding is disposed of, on the merits or otherwise (including a disposition without prejudice),
without (i) the disposition being adverse to the Indemnitee, (ii) an adjudication that the
Indemnitee was liable to the Company, (iii) a plea of guilty or nolo contendere by
the Indemnitee, (iv) an adjudication that the Indemnitee did not act in good faith and in a manner
he reasonably believed to be in or not opposed to the best interests of the Company, and (v) with
respect to any criminal action or proceeding, an adjudication that the Indemnitee had reasonable
cause to believe his conduct was unlawful, the Indemnitee shall be considered for the purpose
hereof to have been wholly successful with respect thereto. If Indemnitee is not wholly successful
in defense of such Proceeding but is successful, on the merits or otherwise, as to one or more but
less than all claims, issues or matters in such Proceeding, the Company shall indemnify Indemnitee
against all Expenses actually and reasonably incurred by him or on his behalf in connection with
each successfully resolved claim, issue or matter.

          (d) Advancement of Expenses. The Company shall advance, without duplication, all
Expenses actually and reasonably incurred by or on behalf of Indemnitee in connection with any
Proceeding referenced in Section 2(a) or 2(b) above (including, without limitation, retainers and
prepaid, deposited or escrowed amounts), in the event of the receipt by the Company of a statement
or statements from Indemnitee requesting such advance or advances from time to time. Such
statement or statements shall reasonably evidence the Expenses incurred by Indemnitee and shall
include or be preceded or accompanied by an undertaking by or on behalf of Indemnitee to repay any
Expenses advanced if it shall ultimately be determined that Indemnitee is not entitled to be
indemnified against such Expenses. All such undertakings shall be unsecured, shall bear no interest
and shall be accepted without reference to the financial ability of the Indemnitee to make
repayment.

          (e) Security. To the extent requested by the Indemnitee and approved by the Company’s
Board of Directors, the Company may at any time and from time to time provide security to the
Indemnitee for the Company’s obligations hereunder through an irrevocable bank letter of credit,
funded trust or other collateral. Any such security, once provided to the Indemnitee, may not be
revoked or released without the prior written consent of Indemnitee.

     3. Notice of Proceeding and Review of Indemnification Request.

          (a) Notice. Indemnitee shall give the Company notice in writing, as soon as
practicable, of any Proceeding for which Indemnitee expects to or will seek indemnification under
this Agreement. Such notice shall include a written request for indemnification, and shall be
accompanied by a copy of any summons, citation, subpoena, complaint, indictment, investigation,
and/or inquiry received by Indemnitee, as well as any other documentation and information as is
reasonably available to Indemnitee and is reasonably necessary to determine whether and to what
extent Indemnitee is entitled to indemnification. Indemnitee shall direct such notice, request and
documentation to the Senior Vice President and General Counsel of the Company at the address shown
in the notices section of this Agreement. Notwithstanding the foregoing, any failure of Indemnitee
to provide such notice to the Company shall not relieve the Company of any liability that it may
have to Indemnitee unless and to the extent such failure materially prejudices the interests of the
Company.

          (b) Assumption of Defense and Selection of Counsel; Settlement. With respect to any
Proceeding of which the Company is notified under the preceding Section 3(a), the Company shall be
entitled to participate therein at its own expense and/or, if appropriate, to assume the defense
thereof at its own expense, with legal counsel approved by Indemnitee, which approval shall not be
unreasonably withheld, upon the delivery to Indemnitee of written notice of its election to do so,
in which case Indemnitee shall provide the Company such information and cooperation as the Company
may reasonably require in connection with such defense and as shall be within Indemnitee’s power to
so provide. After

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delivery of such notice from the Company to the Indemnitee of its intention to assume the
defense of the Proceeding, Indemnitee’s approval of Company counsel, and the retention of such
counsel by the Company, the Company will not be liable to Indemnitee under this Agreement for any
fees and expenses of counsel subsequently incurred by Indemnitee with respect to such Proceeding,
other than as provided below. The Indemnitee shall have the right to employ his own counsel in
connection with such Proceeding, but the fees and expenses of such counsel incurred after such
notice, approval and retention shall be at the expense of the Indemnitee, unless (i) the employment
of counsel by the Indemnitee has been authorized by the Company, (ii) counsel to the Indemnitee
shall have reasonably concluded that there may be a conflict of interest or position on any
significant issue between the Company and the Indemnitee in the conduct of the defense of such
action or (iii) the Company shall not in fact have employed counsel to assume the defense of such
action, in each of which cases the fees and expenses of counsel for the Indemnitee shall be at the
expense of the Company, except as otherwise expressly provided by this Agreement. The Company
shall not be entitled, without the consent of the Indemnitee, to assume the defense of any claim
brought by or in the right of the Company or as to which counsel for the Indemnitee shall have
reasonably made the conclusion provided for in clause (ii) above. Notwithstanding any of the
foregoing, the Company shall not be permitted to settle any Proceeding, or any claim, issue or
matter therein, on behalf of the Indemnitee, without the prior written consent of Indemnitee,
unless (A) the Company assumes full and sole responsibility for such settlement, (B) such
settlement does not contain any admission of guilt by, on behalf or, or with respect to Indemnitee,
(C) such settlement does not contain and will not result in any penalty or sanction of Indemnitee,
and (D) such settlement grants the Indemnitee a complete and unqualified release in respect of any
potential or resulting liability of Indemnitee, in law and in equity, or Indemnitee is otherwise
fully indemnified against all such liability.

          (c) Payment; Procedure for Review; Reviewing Party. Any indemnification and Expense
advances provided for in Section 2 and this Section 3 shall be made by the Company promptly, and in
any event within forty-five (45) days after receipt by the Company of the applicable written
request of the Indemnitee, except that Expense advances pursuant to Section 2(d) shall be made no
later than ten (10) days after such receipt (each, a “Payment Period”), unless in any case with
respect to such requests [under Section 2(a) or 2(b)]1 the Company determines, by clear
and convincing evidence, prior to expiration of the applicable Payment Period that the Indemnitee
did not meet the applicable standard of conduct for indemnification set forth in this Agreement.
The Company’s determination as to whether the Indemnitee meets the applicable standard of conduct
shall be made, within the applicable Payment Period, as follows: (i) if a Change in Control shall
have occurred (other than a Change in Control which has been approved by a majority of the
Company’s Board of Directors who were directors immediately prior to such Change in Control), then,
with respect to all matters thereafter arising concerning the rights of Indemnitee to
indemnification under this Agreement or any other agreement, or under the Company’s Charter
Documents, the Company’s determination shall be made by Independent Legal Counsel (as defined
below), in a written legal opinion to Company and Indemnitee, such Independent Legal Counsel to be
selected in accordance with the procedures set forth in Section 3(d) below; or (ii) if a Change in
Control shall not have occurred (or if a Change in Control occurred but was approved by a majority
of the Company’s Board of Directors who were directors immediately prior to such Change in
Control), the Company’s determination shall be made, at the election of the Board of Directors, by:
(A) a majority vote of the directors of the Company who are not at that time parties to the
Proceeding in question (“Disinterested Directors”), even though less than a quorum of the Board; or
(B) a committee of such Disinterested Directors designated by majority vote of such Disinterested
Directors, even though less than a quorum of the Board; or (C) if there are no such Disinterested
Directors, or if such Disinterested Directors so direct, by Independent Legal Counsel in a written
opinion to the Company, a copy of which shall be promptly delivered to the Indemnitee (the party
making the determination in accordance with the

 

			
	1	 	Bracketed language for non-employee directors only.

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foregoing as to whether the Indemnitee meets the applicable standard of conduct being referred
to herein as the “Reviewing Party”).

     “Change in Control” means the occurrence after the date of this Agreement of any of the
following: (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the Securities
Exchange Act of 1934, as amended (the “Act”)), other than a trustee or other fiduciary holding
securities under an employee benefit plan of the Company acting in such capacity or a corporation
owned directly or indirectly by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company, becomes the “beneficial owner” (as defined
in Rule 13d-3 under the Act), directly or indirectly, of securities of the Company representing 20%
or more of the total voting power represented by the Company’s then outstanding voting securities;
(ii) during any period of two consecutive years, individuals who at the beginning of such period
constitute the Board of Directors of the Company cease to be a majority thereof (otherwise than
through death, disability or retirement in accordance with the Company’s normal retirement
policies); (iii) the stockholders of the Company approve a merger or consolidation of the Company
with any other corporation, limited liability company, partnership, joint venture, trust or other
entity other than a merger or consolidation which would result in the voting securities of the
Company outstanding immediately prior thereto continuing to represent (either by remaining
outstanding or by being converted into voting securities of the surviving entity) at least 80% of
the total voting power represented by the voting securities of the Company or such surviving entity
outstanding immediately after such a merger or consolidation; or (iv) the stockholders of the
Company approve a plan of complete or substantial liquidation of the Company or an agreement for
the sale or disposition by the Company of (in one transaction or a series of related transactions)
all or substantially all of the Company’s assets.

     “Independent Legal Counsel” shall mean a law firm, or a member of a law firm, that is
experienced in matters of corporation law and neither presently is, nor in the past five years has
been, retained to represent: (i) the Company or Indemnitee in any matter material to either such
party (other than with respect to matters concerning the Indemnitee under this Agreement, or of
other indemnitees under similar indemnification agreements), or (ii) any other party to the
Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing,
the term Independent Legal Counsel shall not include any person who, under the applicable standards
of professional conduct then prevailing, would have a conflict of interest in representing either
the Company or Indemnitee in an action to determine Indemnitee’s rights under this Agreement.

          (d) Procedure for Selecting of Independent Legal Counsel. Whenever pursuant to this
Agreement Independent Legal Counsel is to be selected for purposes of determining Indemnitee’s
entitlement to indemnification, such selection shall be made in accordance with the provisions of
this Section 3(d). If a Change in Control shall not have occurred, the Independent Counsel shall
be selected by the Board, and the Company shall give written notice to Indemnitee advising him of
the identity of the Independent Counsel so selected. If a Change in Control shall have occurred
(for which Independent Counsel is to be selected in accordance with Section 3(c)), the Independent
Counsel shall be selected by Indemnitee (unless Indemnitee shall request that such selection be
made by the Board, in which event the preceding sentence shall apply), and Indemnitee shall give
written notice to the Company advising it of the identity of the Independent Counsel so selected.
In either event, Indemnitee or the Company, as the case may be, may, within 10 days after such
written notice of selection shall have been given, deliver to the Company or to Indemnitee, as the
case may be, a written objection to such selection; provided, however, that such
objection may be asserted only on the ground that the Independent Counsel so selected does not meet
the requirements of “Independent Counsel” as defined above, and the objection shall set forth with
particularity the factual basis of such assertion. Absent a proper and timely objection, the
person so selected shall act as Independent Legal Counsel. If a written objection is made and

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substantiated, the Independent Legal Counsel selected may not serve as Independent Legal
Counsel unless and until such objection is withdrawn or a court has determined that such objection
is without merit. If, within 5 business days after submission by Indemnitee of a written request
for indemnification pursuant to Section 3(a) hereof which is to be addressed by Independent Legal
Counsel in accordance with the foregoing provisions, no Independent Legal Counsel shall have been
selected and not objected to, either the Company or Indemnitee, as the case may be, may petition
the Court of Chancery of the State of Delaware for resolution of any objection which shall have
been made by the Company or Indemnitee to the other’s selection of Independent Counsel and/or for
the appointment as Independent Counsel of a person selected by the Court or by such other person as
the Court shall designate, and the person with respect to whom all objections are so resolved or
the person so appointed shall act as Independent Counsel under Section 3(d) hereof. The Company
agrees to abide by the opinion of Independent Legal Counsel and to pay any and all reasonable fees
and expenses of Independent Counsel incurred by such Independent Counsel in connection with acting
pursuant to this Agreement, including, without limitation, paying all reasonable fees and expenses
incident to the procedures of this Section 3(d), regardless of the manner in which such Independent
Counsel was selected or appointed. Notwithstanding any other provision of this Agreement, the
Company shall not be required to pay Expenses of more than one Independent Legal Counsel in
connection with all matters concerning a single Indemnitee, and such Independent Legal Counsel
shall be the Independent Legal Counsel for any or all other Indemnitees unless (i) the employment
of separate counsel by one or more Indemnitees has been previously authorized by the Company in
writing, or (ii) an Indemnitee shall have provided to the Company a written statement that such
Indemnitee has reasonably concluded that there may be a conflict of interest between such
Indemnitee and the other Indemnitees with respect to the matters arising under this Agreement.

          (e) Notice to Insurers. If, at the time of the receipt by the Company of a notice of
a Proceeding pursuant to Section 3(a) hereof, the Company has director and officer liability
insurance in effect, the Company shall give prompt notice of the commencement, or the threat of the
commencement, of such Proceeding to the insurers in accordance with the procedures set forth in the
respective applicable insurance policies. The Company shall thereafter take all necessary action
to cause such insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of such
Proceeding in accordance with the terms of such policies; provided that no such payments by such
insurers shall relieve the Company of any liability or obligation which it may have to the
Indemnitee except as and to the extent expressly provided under this Agreement.

     4. Indemnitee’s Right to Enforce Indemnification Provisions; Presumptions and Burden of
Proof; Expenses of Enforcement.

          (a) Right to Enforce Indemnification. If the Company denies Indemnitee’s request for
indemnification or Expense advances provided for in this Agreement, in whole or in part, or if
disposition and payment thereof is otherwise not made within the applicable Payment Period(s), the
right to such indemnification or Expense advances shall be enforceable by the Indemnitee in the
Delaware Court of Chancery or any other court of competent jurisdiction.

          (b) Presumptions; Burden of Proof. For purposes of this Agreement, the termination of
any Proceeding by judgment, order, settlement (whether with or without court approval) or
conviction, or upon a plea of nolo contendere, or its equivalent, shall not create a presumption
that Indemnitee did not meet any particular standard of conduct or have any particular belief or
that a court has determined that indemnification is not permitted by this Agreement or applicable
law. In addition, neither the failure of any Reviewing Party to have made a determination as to
whether an Indemnitee has met any particular standard of conduct or had any particular belief, nor
an actual determination by any Reviewing Party that an Indemnitee has not met such standard of
conduct or did not have such belief, prior to the

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commencement of legal proceedings by such Indemnitee to secure a judicial determination that
such Indemnitee should be indemnified under this Agreement or applicable law, shall be a defense to
such Indemnitee’s claim or create a presumption that such Indemnitee has not met any particular
standard of conduct or did not have any particular belief. For purposes of any determination of
good faith, Indemnitee shall be deemed to have acted in good faith if Indemnitee’s action is based
on the records or books of account of the Company or relevant Subsidiary, including financial
statements, or on information supplied to Indemnitee by the officers of the Company or relevant
Subsidiary in the course of their duties, or on the advice of legal counsel for the Company or
relevant Subsidiary, by an independent certified public accountant or by an appraiser or other
expert selected with reasonable care by the Company or relevant Subsidiary. The knowledge and/or
actions, or failure to act, of any other director, officer, advisor, agent or employee of the
Company or any of its Subsidiaries shall not be imputed to Indemnitee for purposes of determining
the right to indemnification under this Agreement. The provisions of this Section 4(b) shall not be
deemed to be exclusive or to limit in any way the other circumstances in which the Indemnitee may
be deemed to have met the applicable standard of conduct set forth in this Agreement.

          (c) The Company shall be precluded from asserting in any judicial proceeding commenced
pursuant to this Section 4 that the procedures and presumptions of this Agreement are not valid,
binding and enforceable and shall stipulate in any such court that the Company is bound by all the
provisions of this Agreement.

          (d) In the event that a determination shall have been made pursuant to Section 3(c) of this
Agreement that Indemnitee is not entitled to indemnification, any judicial proceeding commenced
pursuant to this Section 4 shall be conducted in all respects as a de novo trial, on the merits,
and Indemnitee shall not be prejudiced by reason of that adverse determination.

          (e) Expenses of Enforcing Indemnification. In the event that any action is instituted
by or in the name of Indemnitee or the Company under this Agreement or under any liability
insurance policies maintained by the Company to enforce or interpret any of the terms hereof or
thereof, Indemnitee shall be entitled to be indemnified for all Expenses incurred by Indemnitee
with respect to such action, regardless of whether Indemnitee is ultimately successful in such
action, and shall be entitled to the advancement of Expenses with respect to such action pursuant
to comparable procedures as those set forth in Section 2(d) above with respect to advancement of
Expenses for indemnification claims under Sections 2(a) and 2(b), unless as a part of such action a
court having jurisdiction over such action makes a final judicial determination (as to which all
rights of appeal therefrom have been exhausted or lapsed) that each of the material assertions made
by Indemnitee as a basis for such action was not made in good faith or was frivolous.

     5. Additional Indemnification Rights.

          (a) Scope. Notwithstanding any other provision of this Agreement, the Company hereby
agrees to indemnify the Indemnitee to the fullest extent permitted by law, notwithstanding that
such indemnification is not specifically authorized by the other provisions of this Agreement, the
Company’s Charter Documents or by statute. In the event of any change, after the date of this
Agreement, in any applicable law, statute, or rule which expands the right of a Delaware
corporation to indemnify a member of its Board of Directors, an officer, an advisor, or an agent,
such changes shall be, ipso facto, within the purview of Indemnitee’s rights and the Company’s
obligations under this Agreement. In the event of any change in any applicable law, statute or
rule which narrows the right of a Delaware corporation to indemnify a member of its Board of
Directors or an officer, such changes, to the extent not

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otherwise required by such law, statute or rule to be applied to this Agreement shall have no
effect on this Agreement or the parties’ rights and obligations hereunder.

          (b) Nonexclusivity; Effectiveness; Survival of Rights. The indemnification provided
by this Agreement shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company’s Charter Documents, any other agreement, any vote of stockholders or directors,
the DGCL or other applicable law, or otherwise, both as to action taken or omitted in Indemnitee’s
official capacity and as to action taken or omitted in another capacity while holding such office.
This Agreement shall be effective as of the date set forth on the first page and shall apply to
acts or omissions of Indemnitee that occurred prior to, on, and/or after such date,
provided that Indemnitee was serving in an indemnified capacity at the time such act or
omission occurred. Without limiting the generality of the foregoing, the indemnification provided
under this Agreement shall continue as to Indemnitee for any action taken or not taken while
serving in an indemnified capacity even though he or she may have ceased to serve in any such
capacity at the time of the applicable action, suit or other covered Proceeding.

          (c) Company Amendments. The Company shall not adopt any amendment to the Company’s
Charter Documents, the effect of which would be to deny, diminish or encumber the Indemnitee’s
rights to indemnity pursuant to this Agreement, the Charter Documents, the DGCL or any other
applicable law as applied to any act or failure to act occurring in whole or in part prior to the
date upon which the amendment was approved by the Board of Directors or the stockholders, as the
case may be. Without limiting the generality of the foregoing, all rights and obligations of the
Company and the Indemnitee hereunder shall continue in full force and effect despite the subsequent
amendment or modification of the Company’s Charter Documents, as such are in effect on the date
hereof, and such rights and obligations shall not be affected by any such amendment or
modification, any resolution of Directors or stockholders of the Company, or by any other corporate
action which conflicts with or purports to amend, modify, limit or eliminate any of the rights or
obligations of the Company or the Indemnitee hereunder.

     6. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the Expenses, judgments,
penalties, fines and amounts paid in settlement (including without limitation all interest,
assessments and other charges paid or payable in connection with or in respect of such Expenses,
judgments, penalties, fines and amounts paid in settlement) actually and reasonably incurred by him
or on his behalf in connection with such Proceeding or any claim, issue or matter therein, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the
portion to which Indemnitee is entitled.

     7. Exceptions. Any other provision herein to the contrary notwithstanding, the
Company shall not be obligated pursuant to the terms of this Agreement:

          (a) Claims Initiated by Indemnitee. To indemnify or advance Expenses to Indemnitee
with respect to any Proceedings initiated or brought voluntarily by Indemnitee and not by way of
defense, counterclaim or crossclaim, except (i) to the extent not otherwise prohibited by this
Agreement, with respect to Proceedings brought to establish or enforce a right to indemnification
under this Agreement or any other agreement or insurance policy or under the Company’s Charter
Documents or any applicable statute or other law, (ii) in specific cases if the Board of Directors
has approved the initiation or bringing of such Proceeding, or (iii) as otherwise required under
Section 145 of the Delaware General Corporation Law, regardless of whether Indemnitee ultimately is
determined to be entitled to such indemnification, or insurance recovery, as the case may be; or

9

 

          (b) Lack of Good Faith. To indemnify Indemnitee with respect to any Proceedings
instituted by Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction finally determines that each of the material assertions made by Indemnitee in such
Proceeding was not made in good faith or was frivolous; or

          (c) Insured Claims. To indemnify Indemnitee for Expenses or liabilities of any type
whatsoever (including, but not limited to, judgments, fines, penalties, and amounts paid in
settlement) to the extent such Expenses or liabilities have been paid directly to Indemnitee by an
insurance carrier under a policy of insurance; or

          (d) Claims under Section 16(b). To indemnify Indemnitee for the payment of profits
inuring to and recoverable by the Company pursuant to Section 16(b) of the Securities Exchange Act
of 1934, as amended, or any similar successor statute, and any Expenses incurred with respect
thereto; or

          (e) Other Court Determinations. To indemnify Indemnitee for any acts or omissions, or
transactions, from which a court of competent jurisdiction finally determines an officer or
director, as applicable, may not be relieved of liability under applicable law or pertinent public
policy; or

          (f) Fraud. To indemnify Indemnitee with respect to any matter as to which a court of
competent jurisdiction finally determines that Indemnitee has committed fraud on the Company.

     8. Contribution. If the indemnification provided for in Section 2 above is unavailable
for any reason other than the statutory limitations set forth in the DGCL, then in respect of any
claim, incident or other Proceeding in which the Company is jointly liable with the Indemnitee (or
would be if joined in such claim, incident or other Proceeding) the Company shall contribute to the
amount of the Indemnitee’s Expenses in such proportion as is appropriate to reflect (a) the
relative benefits received by the Company on the one hand and by the Indemnitee on the other hand
from the transaction from which such claim, incident or Proceeding arose, and (b) the relative
fault of the Company on the one hand and of the Indemnitee on the other hand in connection with the
events which resulted in such Expenses, as well as any other relevant equitable considerations.
The relative fault of the Company on the one hand and of the Indemnitee on the other shall be
determined by reference to, among other things, the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent the circumstances resulting in such Expenses. The
Company agrees that it would not be just and equitable if contribution pursuant to this Section 8
were determined by pro rata or per capita allocation or any other method of allocation which does
not take account of the equitable considerations referred to in the immediately preceding sentence.
The foregoing provisions notwithstanding, no person found guilty of fraudulent misrepresentation
(within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from
any person who was not found guilty of such fraudulent misrepresentation.

     9. Mutual Acknowledgement regarding Public Policy. Both the Company and Indemnitee
acknowledge that in certain instances, federal law or applicable public policy may prohibit the
Company from indemnifying its directors and officers under this Agreement or otherwise. Indemnitee
understands and acknowledges that the Company has undertaken or may be required in the future to
undertake with the Securities and Exchange Commission to submit the question of indemnification to
a court in certain circumstances for a determination of the Company’s right under public policy to
indemnify Indemnitee.

     10. Director and Officer Liability Insurance. The Company hereby covenants and agrees
that, so long as the Indemnitee shall continue to serve as a director, officer, employee, advisor,
or agent of the Company or any Subsidiary and thereafter so long as the Indemnitee shall be subject
to any possible Proceeding by reason of the fact that the Indemnitee was a director, officer,
employee, advisor, or agent

10

 

of the Company or any Subsidiary, the Company shall promptly obtain and maintain in full force
and effect a policy or policies of insurance with reputable insurance companies providing the
officers and directors of the Company with coverage for losses from wrongful acts, and to ensure
the Company’s performance of its indemnification obligations under this Agreement. To the extent
possible, such policy or policies shall be structured so as to best ensure that such coverage shall
survive intact any bankruptcy, insolvency, or similar proceeding or condition involving the
Company. In all policies of director and officer liability insurance, Indemnitee shall be named as
an insured in such a manner as to provide Indemnitee the same rights and benefits as are accorded
to the most favorably insured of the Company’s directors, if Indemnitee is a director of the
Company or a Subsidiary; or of the Company’s officers, if Indemnitee is not a director of the
Company or a Subsidiary but is an officer thereof. Notwithstanding the foregoing, the Company
shall have no obligation to obtain or maintain such insurance if the Company determines in good
faith that such insurance is not reasonably available, if the premium costs for such insurance are
disproportionate to the amount of coverage provided, if the coverage provided by such insurance is
limited by exclusions so as to provide an insufficient benefit, or if Indemnitee is covered by
similar insurance maintained by a Subsidiary or parent of the Company. The Company shall promptly
notify Indemnitee of any good faith determination not to provide such coverage.

     11. No Duplication of Payments. Notwithstanding any provision in this Agreement to
the contrary, the Company shall not be liable under this Agreement to make any payment in
connection with any Proceeding against Indemnitee to the extent such Indemnitee has actually
received payment (under any insurance policy, provision of the Charter Documents or otherwise) of
the amounts otherwise indemnifiable hereunder. In the event the Company makes any indemnification
payments to Indemnitee and Indemnitee later receives payments from the proceeds of insurance
covering the same Expenses, judgments, fines, penalties or amounts paid in settlement so
indemnified by the Company, Indemnitee shall promptly refund such indemnification payments to the
Company to the extent of such insurance reimbursement.

     12. Miscellaneous.

          (a) Governing Law. This Agreement and all acts and transactions pursuant hereto and
the rights and obligations of the parties hereto shall be governed, construed and interpreted in
accordance with the laws of the State of Delaware, without giving effect to principles of conflict
of law.

          (b) Consent to Jurisdiction. The Company and the Indemnitee each hereby irrevocably
consent to the exclusive jurisdiction of the Court of Chancery of Delaware for any purpose in
connection with any actions or proceedings that arise out of or relate to this Agreement.

          (c) Entire Agreement; Amendments; Enforcement of Rights. This Agreement sets forth
the entire agreement and understanding of the parties relating to the subject matter herein and
merges all prior discussions between them. No modification of or amendment to this Agreement, nor
any waiver of any rights under this Agreement, shall be effective unless in writing signed by
Indemnitee and an authorized officer of the Company who is not Indemnitee. No amendment, alteration
or repeal of this Agreement or of any provision hereof shall limit or restrict any right of
Indemnitee under this Agreement in respect of any action taken or omitted by such Indemnitee in his
Corporate Status prior to such amendment, alteration or repeal. The failure by either party to
enforce any rights under this Agreement shall not be construed as a waiver of any rights of such
party.

          (d) Construction of Ambiguities. This Agreement is the result of negotiations
between, and has been reviewed by, each of the parties hereto and their respective counsel, if any;

11

 

accordingly, this Agreement shall be deemed to be the product of all of the parties hereto,
and no ambiguity shall be construed in favor of or against any one of the parties hereto.

          (e) Notices. All notices, request, demands and other communications hereunder shall
be in writing and shall be deemed to have been duly given (i) upon delivery, if delivered by hand
and receipted for by the party to whom said notice or other communication shall have been directed,
(ii) on the first business day after the date on which it is mailed by overnight courier service,
(iii) on the date of transmission, if transmitted via facsimile or (iv) on the third business day
after the date on which it is mailed by certified or registered mail with postage prepaid:

               (i) If to Indemnitee, at the address specified on the signature page of his Agreement; and

               (ii)If to the Company to:

	 	 	 
	 

	 	Global Secure Corp.
	 

	 	2600 Virginia Avenue, NW
	 

	 	Suite 600
	 

	 	Washington, DC 20037
	 

	 	Attention: Senior Vice President and General Counsel

12

 

	 	 	 
	with a copy to:
	 	 
	 
	 	 
	 

	 	DLA Piper Rudnick Gray Cary US LLP
	 

	 	1200 Nineteenth Street, NW
	 

	 	Washington, DC 20036-2412

	 

	 	Attention: Anthony H. Rickert, Esq.

or to such other address as may have been furnished in writing to Indemnitee by the Company or to
the Company by Indemnitee, as the case may be.

          (f) Counterparts. This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original and all of which together shall constitute one instrument.

          (g) Successors And Assigns. This Agreement shall be binding upon the Company and its
successors and assigns, including without limitation any direct or indirect successor by purchase,
merger, consolidation or otherwise to all, substantially all or a substantial part of the business
or assets of the Company. This Agreement shall inure to the benefit of Indemnitee and Indemnitee’s
heirs, legal representatives, executives and administrators. The Company shall require and cause
any successor (whether direct or indirect, and whether by purchase, merger, consolidation or
otherwise) to all, substantially all or a substantial part of the business or assets of the
Company, by written agreement in form and substance satisfactory to the Indemnitee, expressly to
assume and agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform if no such succession had taken place.

          (h) Subrogation. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall
execute all documents required and shall do all acts that may be necessary to secure such rights
and to enable the Company to effectively bring suit to enforce such rights.

          (i) Company Acknowledgement regarding Consideration. The Company expressly confirms
and agrees that it has entered into this Agreement and assumed the obligations imposed on it hereby
in order to induce Indemnitee to serve as a director, officer, employee, advisor, and/or agent of
the Company and/or any of its Subsidiaries, and the Company acknowledges that Indemnitee is relying
upon this Agreement in serving in such capacity.

          (j) Severability. If any provision or provisions of this Agreement shall be held to
be invalid, illegal or unenforceable for any reason whatsoever: (a) the validity, legality and
enforceability of the remaining provisions of this Agreement (including, without limitation, each
portion of any Section of this Agreement containing any such provision held to be invalid, illegal
or unenforceable, that is not itself invalid, illegal or unenforceable) shall not in any way be
affected or impaired thereby; (b) such provision or provisions shall be deemed reformed to the
extent necessary to conform to applicable law and to give the maximum effect to the intent of the
parties hereto; and (c) to the fullest extent possible, the provisions of this Agreement
(including, without limitation, each portion of any Section of this Agreement containing any such
provision held to be invalid, illegal or unenforceable, that is not itself invalid, illegal or
unenforceable) shall be construed so as to give effect to the intent manifested thereby. Without
limiting the generality of the foregoing, if this Agreement or any portion hereof shall be
invalidated on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the fullest extent permitted by any applicable portion of this
Agreement that shall not have been invalidated, and the balance of this Agreement not so
invalidated shall be enforceable in accordance with its terms.

13

 

          (k) Construction of Certain Phrases.

               (i) For purposes of this Agreement, references to the “Company” shall include, in addition to
Global Secure Corp., any constituent corporation (including any constituent of a constituent)
absorbed in a consolidation or merger to which Global Secure Corp. (or any of its Subsidiaries) is
a party which, if its separate existence had continued, would have had power and authority to
indemnify its directors, officers, and employees or agents, so that if Indemnitee is or was a
director, officer, employee or agent of such constituent corporation, or is or was serving at the
request of such constituent corporation as a director, officer, employee or agent of another
corporation, partnership, joint venture, trust or other enterprise, Indemnitee shall stand in the
same position under the provisions of this Agreement with respect to the resulting or surviving
corporation as Indemnitee would have with respect to such constituent corporation if its separate
existence had continued.

               (ii) For purposes of this Agreement, without limitation, references to “other enterprises”
shall include employee benefit plans; references to “fines” shall include any excise taxes assessed
on Indemnitee with respect to an employee benefit plan; and references to “serving at the request
of the Company” shall include any service as a director, officer, employee, advisor or agent of the
Company or any Subsidiary, which imposes any duties on, or involves services by Indemnitee with
respect to an employee benefit plan, its participants, or beneficiaries.

          (l) Company Compliance with Law. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in violation of applicable
law. The Company’s inability, pursuant to court order, to perform its obligations under this
Agreement shall not constitute a breach of this Agreement.

[SIGNATURES ON NEXT PAGE]

14

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above
written.

	 	 	 	 	 
	COMPANY	 	 
	 
	 	 	 	 
	GLOBAL SECURE CORP.	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

	 	 

	 	 	 	 	 
	Print Name:

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	Title:

	 	 	 	 
	 

	 	 	 	 

	 	 	 	 	 
	INDEMNITEE	 	 
	 
	 	 	 	 
	Signed:
	 	 	 	 
	 

	 	 	 	 
	 

	 	[Name of Indemnitee]	 	 
	 
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	 	 	 

15exv10w53

 

EXHIBIT 10.53

1033 NORTH FAIRFAX STREET

ALEXANDRIA, VA

LEASE AGREEMENT

     THIS LEASE AGREEMENT (the “Lease”) is made as of the 4th day of August 2005 by and
between AMERICAN PHYSICAL THERAPY PROPERTIES, INC., a Virginia Corporation (“Landlord”), and Global
Secure (“Tenant”).

RECITALS:

     A. Landlord is the owner of an office building (the “Building”), located at 1033 North
Fairfax Street, Alexandria, Virginia, in an office building complex known as TransPotomac
Plaza (“Complex”).

     B. Tenant desires to hire and lease space in the Building and Landlord is willing to
demise and lease space in the Building to Tenant, upon the terms and conditions, covenants
and agreements set forth herein.

     NOW, THEREFORE, the parties hereto, intending legally to be bound, hereby covenant and
agree as set forth below.

ARTICLE I

THE PREMISES

     SECTION 1.1

     Landlord hereby demises and leases to Tenant and Tenant hereby hires and leases from Landlord,
for the term and upon the term, conditions, covenants and agreements herein provided space located
on the 3rd floor of the Building (Suite 302) which space consists of 3110 square feet of
rentable area (such space being hereinafter referred to as the “Premises”). The said approximation
of square footage, which has been determined in accordance with the Washington, D.C. Association of
Realtors modified standard area floor measure standards issued January 1, 1989, shall in no way
affect the fixed rental hereunder should any variance be found to exist between said approximation
and actual square footage. The lease of the Premises includes the right, together with other
tenants of the Building and members of the public, to use the common public area of the Building
and the common public areas of the Complex but includes no other rights not specifically set forth
herein.

     SECTION 1.2

     Landlord shall provide new paint, carpet repair and the creation of new, expanded entrance to
the suite.

 

 

ARTICLE II

TERM

     SECTION 2.1

     (a) The term of this Lease (“Lease Term”) shall commence on the Lease Commencement Date
(hereinafter defined), as determined pursuant to Section 2.2 hereof, and shall continue for five
full years through August 7, 2010, unless the Lease Term is terminated earlier in accordance with
the provisions of this Lease.

     (b) The term “Base Year” means calendar year 2006, which shall be grossed up to reflect 100%
building occupancy. The term “Lease Year” means each consecutive twelve (12) month period
commencing on the first day of the first full calendar month after the Lease Commencement Date (as
defined below) occurs (or, if the Lease Commencement Date occurs on the first day of a month, such
day will begin the first Lease Year) and ending on the last day of the prior calendar month during
the next year.

     SECTION 2.2

     The lease commencement date for the Premises (the “Lease Commencement Date”) shall be August
8, 2005. Tenant shall be deemed to have commenced beneficial use of the premises on Lease
Commencement Date.

ARTICLE III

FIXED RENT

     SECTION 3.1

     Tenant shall pay to Landlord as fixed monthly rent for the Premises, without set-off,
deduction or demand, the sum of Five Thousand Seven Hundred One Dollar and 67/100 ($5,701.67) which
sum is subject to adjustment as provided in Section 3.2 hereof. Said sum shall be payable on the
Lease Commencement Date and thereafter monthly, in advance, on the eighth day of each month during
the Lease Term with the exception of the months of September and October, 2005. Fixed rent for the
premises is abated for the months of September and October 2005.

     SECTION 3.2

     Commencing on the first (1st) day of the second (2nd) Lease Year and the
first day of each Lease Year thereafter during the Lease Term, the fixed monthly rent set forth in
Section 3.1, hereof shall be increased by an amount equal to three percent (3%) compounded.

     SECTION 3.3

     All rent shall be paid to Landlord in legal tender of the United States at the address to
which notices to Landlord are to be given or to such other party or to such other address as
Landlord may designate from time to time by written notice to Tenant. If Landlord shall at any
time accept rent after it shall become due and payable, such acceptance shall not excuse a delay

2

 

upon subsequent occasions or constitute or be construed as a waiver of any Landlord’s rights
hereunder.

ARTICLE IV

ADDITIONAL RENT

     SECTION 4.1

     (a) With respect to calendar year 2007 and each succeeding calendar year all or part of which
falls within the Lease Term, Tenant shall pay Landlord its proportionate share of the amount by
which the Annual Operating Charges (as hereinafter defined) incurred by Landlord in operation of
the Building during such calendar year exceed the Annual Operating Charges incurred by Landlord in
such operation during the Base Year (including, without limitation, real estate taxes charged for
such year). For purposes of this Section 4.1, Tenant’s proportionate share of such increase shall
be nine and one half percent (9.5%), representing the agreed-upon proportion that the total
rentable area in the Premises bears to the total rentable area in the Building.

     (b) The Annual Operating Charges are defined as the sum of the following costs and expenses:
(i) real estate taxes, including general and special assessments, if any, and any other taxes or
government charges, now or hereafter levied, that are in the nature of, or in substitution of, real
estate taxes which are imposed upon or assessed against the Building or the land upon which it is
situated; (ii) gas, water, sewer, electricity, and other utility charges (including surcharges) of
every type and nature; (iii) insurance; (iv) Building personnel costs, including but not limited
to, salaries, wages, fringe benefits, and other direct and indirect costs of engineers,
superintendents, watchmen, porters, and any other Building personnel; (v) costs of service and
maintenance contracts, including but not limited to, chillers, boilers, controls, elevators, mail
chute, window, janitorial and general cleaning, security services, and reasonable management fees;
(vi) all other maintenance, repair, replacement expenses and supplies which are deducted by
Landlord in computing its federal income tax liability; (vii) depreciation (on a straight-line
basis) for capital expenditures made by Landlord to reduce operating expenses; (viii) any other
costs and expenses incurred by Landlord in the operation of the Building, including ground rent, if
any; (ix) any other costs and expenses allocable to the Building (such allocation to be determined
in accordance with generally accepted accounting principles), including but not limited to the
items in (i) through (viii) above, incurred by Landlord in contributing its share for the operation
of the common elements of the Complex (including, without limitation, all costs associated with any
parking structures); (x) the costs of any additional services not provided to the Building or the
Complex by the Lease Commencement Date but thereafter provided by Landlord in the prudent
management of the Building or in the operation of the Complex.

     Annual Operating Charges shall not include (i) principal or interest payments on any
mortgages, deeds of trust or other financing encumbrances; (ii) leasing commissions payable by
Landlord; (iii) deductions for depreciation of the Building or the Complex, except as provided
above; (iv) the cost of capital improvements that are depreciated by Landlord in computing its
federal income tax liability, except to the extent that such capital improvements result in an
overall savings in operating expenses which are otherwise included above; (v) the costs of special
services and utilities separately chargeable to individual tenants of the Building or the

3

 

Complex; or (vi) the items specifically covered under the attached “Exclusions to Real Estate
Taxes and Operating Expenses.”

     (c) Except as provided in subsection (d) below, following completion of each calendar year
with respect to which Tenant is obligated to pay its proportionate share under subsection (a)
above, Landlord shall submit to Tenant a detailed statement setting forth the amount payable by
Tenant pursuant to this Section 4.1 with respect to the completed calendar year. Within thirty
(30) days after receipt of such statement, Tenant shall pay to Landlord the amount shown thereon.

     (d) In lieu of accepting from Tenant one annual payment for Tenant’s proportionate share of
increases in the Annual Operating Charges, Landlord shall have the right to require Tenant to make
estimated monthly payments on account of the amount Tenant will be obligated to pay pursuant to
this Section 4.1 for each calendar year falling entirely or partly within the Lease Term. If
Landlord exercises such right, Landlord shall submit to Tenant a statement setting forth Landlord’s
reasonable estimate of the amount Tenant will be obligated to pay pursuant to this Section 4.1 for
the calendar year in question, which reasonable estimate may be revised from time to time during
the calendar year, and Tenant shall pay to Landlord on the first (1st) day of each month
following receipt of such statement during such calendar year an amount equal to such estimated
amount multiplied by a fraction, the numerator of which is one (1) and denominator of which is the
number of months during such calendar year which fall within the Lease Term and follow the date of
the foregoing statement. Within ninety (90) days after the expiration of such calendar year, or as
soon thereafter as reasonably practical, Landlord shall submit to Tenant a detailed statement
showing Tenant’s proportionate share of the increase in the Annual Operating Charges incurred
during such calendar and the aggregate amount of the estimated payments made by Tenant on account
thereof. If the aggregate amount of such estimated payments exceeds Tenant’s actual liability for
such increase, Tenant shall deduct the net overpayment from its next estimated payment or payments
on account of future increases in the Annual Operating Charges. If Tenant’s actual liability for
such increase exceeds the estimated payments made by Tenant on account thereof, then Tenant shall
within thirty (30) days pay to Landlord the total amount of such deficiency.

     (e) In the event the Lease Term commences or expires during a calendar year, the increase in
the Annual Operating Charges to be paid by Tenant for such calendar year shall be determined by
multiplying the amount of Tenant’s proportionate share thereof for the full calendar year by a
fraction, the numerator of which is the number of days during such calendar year falling within the
Lease Term, and the denominator of which is 365. At least thirty (30) days prior to the end of the
Lease Term, Landlord shall present to Tenant a written statement containing an estimate of the
amount of Annual Operating Charges Tenant would be liable for if the actual operating charges for
the calendar year had been determined. Tenant shall be required to pay such estimated amount on or
before the last day of the Lease Term, and if all or any portion of the payment is not made within
applicable notice and cure periods, Landlord shall be entitled to deduct such amount from Tenant’s
security deposit, if any. Once the Annual Operating Charges for the last calendar year of the
Lease Term have been determined, Landlord shall provide Tenant with a statement of the actual
operating charges for which Tenant is liable. If Tenant owes an additional amount, such amount is
due on or before thirty (30) days after receipt of the statement. If Tenant is entitled to a
refund, Landlord shall have thirty (30) days

4

 

from the date of the statement within which to remit payment to Tenant. Notwithstanding any
dispute which may arise in connection with the computation of estimate of the amount due under this
Article IV, the Tenant shall be obligated to pay the amount specified by the Landlord, without
set-off or deduction, pending the resolution of any dispute.

     (f) Tenant shall have the right, at Tenant’s expense, through an authorized representative of
Tenant, to examine Landlord’s records relating to Annual Operating Charges at Landlord’s facilities
during regular business hours during the Lease Term and for a period of ninety (90) days
thereafter. If Tenant believes that such an examination reveals any inaccuracies in the
computation of the amount payable by Tenant pursuant to this Section 4.1, then Tenant shall provide
Landlord with written notice of such inaccuracies. If Landlord and Tenant reconcile their
differences in writing, then the calculation of the amount payable by Tenant pursuant to this
Section 4.1 shall be adjusted accordingly and shall be become final and binding on the parties. If
(A) the amount payable by Tenant pursuant to this Section 4.1, as determined by such adjustment, is
less than (B) the amount paid by Tenant pursuant to (i) a detailed statement under Section 4.1(c)
setting forth the amount payable by Tenant under Section 4.1, (ii) a statement under Section 4.1(d)
showing Tenant’s proportionate share of the increase in Annual Operating Charges incurred during
the relevant calendar year, or (iii) a statement under Section 4.1(e) of the actual operating
charges for which Tenant is liable, then Landlord shall pay Tenant the reasonable costs of Tenant’s
examination of Landlord’s records relating to Annual Operating Charges minus $500; provided,
however, that Landlord shall not be required to pay Tenant the reasonable cost of such examination
unless the difference between (A) and (B) above exceeds 5% of (A) above.

     SECTION 4.2

     All payments required to be made by Tenant pursuant to this Lease, except for fixed monthly
rent, shall be additional rent, whether or not specifically so defined, and shall be paid to
Landlord, without set-off or deduction, in the same manner as fixed monthly rent is payable
pursuant to Article III hereof. Notwithstanding any dispute which may arise in connection with the
computation or estimate of the amount due under this Article IV, Tenant shall be obligated to pay
the amount specified by Landlord, without set-off or deduction, pending the resolution of any
dispute.

     SECTION 4.3

     In the event that any business, rent, or other taxes, or any governmental charges that are now
or hereafter levied upon Tenant’s use or occupancy of the Premises or Tenant’s business at the
Premises, are charged, enacted, changed, or altered so that any of such taxes are levied against
Landlord, or the mode of collection of such taxes is changed so that Landlord is responsible for
collection or payment of such taxes, Tenant shall pay any such taxes to Landlord upon written
demand from Landlord. Tenant shall have the right to review any such requests for payments
received by Landlord.

5

 

ARTICLE V

SECURITY DEPOSIT

     SECTION 5.1

     Simultaneously with the execution of this Lease, Tenant shall give to Landlord the sum of five
thousand seven hundred one dollar and 66/100 ($5,701.66) as a security deposit. Landlord shall not
be required to maintain such deposit in a separate account. Such security deposit shall not earn
interest, unless required to do so by any provision of law. Such security deposit shall be
security for the performance by Tenant of all of Tenant’s obligations, covenants, conditions and
agreements under this Lease. Upon the expiration of the Lease Term, and provided Tenant is not in
default hereunder, Landlord shall return such security deposit to Tenant, less such portion thereof
as landlord shall have applied or be entitled to apply to satisfy any default by Tenant hereunder
within thirty (30) days. In the event of any uncured default by Tenant hereunder during the Lease
Term, Landlord shall have the right, but shall not be obligated, to use, apply, or retain all or
any portion of the security deposit for (i) the payment of any fixed or additional rent or any
other sum as to which Tenant is in default beyond applicable notice and cure period, or (ii) the
payment of any amount which Tenant may be obligated to pay to repair physical damage to the
Premises or the Building pursuant to Section 9.2 hereof, or (iii) the payment of any amount which
Tenant may be obligated to pay for the compensation to Landlord for any losses incurred by reason
of Tenant’s default beyond applicable notice and cure period, including but not limited to, any
damage or deficiency arising in connection with the reletting of the Premises. If any portion of
said security deposit is so used or applied, within ten (10) business days after written notice to
Tenant of such use or application, Tenant shall deposit with Landlord cash in an amount sufficient
to restore the security deposit to its original amount, and Tenant’s failure to do so shall
constitute a default under this Lease. In the event of the sale or transfer of Landlord’s interest
in the Building, Landlord shall have the right to transfer the security deposit to such a
purchaser, in which event Tenant shall look only to the new landlord for the return of the security
deposit, and Landlord shall thereupon be released from all liability to Tenant for the return of
such security deposit. Landlord will notify Tenant if security deposit is transferred in the event
of a sale or transfer of Landlord’s interest in the Building. Tenant hereby acknowledges that
Tenant will not look to the holder of any mortgage (defined in Section 21.1 hereof) encumbering the
Building for return of the security deposit if such holder or its successor or assigns shall
succeed to the ownership of the Building whether by foreclosure or deed in lieu thereof, except if
and to the extent such security deposit is actually transferred to such holder.

ARTICLE VI

USE

     SECTION 6.1

     Tenant shall use and occupy the Premises solely for general office purposes and for no other
use or purpose without the prior written consent of Landlord. Tenant shall not use or occupy the
Premises for any unlawful purpose or in any manner that will constitute waste, nuisance or
unreasonable annoyance to Landlord, or other tenants of the Building. Tenant shall comply with all
present and future laws, ordinances (including zoning ordinances and land use

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requirements), regulations, and orders of the United States of America, the Commonwealth of
Virginia, the City of Alexandria, and any other public or quasi-public authority having
jurisdiction over the Premises concerning the use, occupancy, and condition of the Premises and all
machinery, equipment, and furnishing therein. If any present or future law, ordinance, regulation,
or order requires an occupancy permit for the Premises, Tenant will obtain such permit at Tenant’s
sole expense.

ARTICLE VII

PARKING SPACES

     SECTION 7.1

     Tenant shall have the right to lease during the term, in addition to the Premises, six (6)
unreserved parking spaces in the garage of the Building throughout the term of this Lease at Ninety
Five dollars ($95) per space per month of which rates are subject to increase pursuant to Section
3.2 hereof.

ARTICLE VIII

ASSIGNMENT AND SUBLETTING

     SECTION 8.1

     (a) Tenant shall not assign, transfer, mortgage, or otherwise encumber this Lease or its
interest therein (collectively “assign”) or sublet, rent or permit anyone to occupy the Premises,
or any part thereof (collectively “sublet”), without obtaining the prior written consent of
Landlord, which consent shall not be unreasonably withheld, delayed or conditioned. No assignment
or transfer of this Lease or the right of occupancy hereunder may be effectuated by operation of
law or otherwise without the prior written consent of Landlord. The consent of Landlord to any
assignment or subletting shall not be construed as a waiver or release of Tenant from liability for
the performance of all covenants and obligations to be performed by Tenant under the Lease, nor
shall the collection or acceptance of rent from any assignee, subtenant, or occupant constitute a
waiver or release of Tenant from any of its liabilities or obligations under this Lease.
Landlord’s consent to any assignment or subletting shall not be construed as relieving Tenant from
the obligation of obtaining Landlord’s prior written consent to any subsequent assignment or
subletting. 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. With respect to Tenant’s request to assign or sublet, Tenant agrees to and shall pay any
and all costs, including but not limited to attorneys’ fees incurred by Landlord, not to exceed
$500, whether or not Landlord consents to any such assignment or subletting.

     (b) If Tenant desires to sublet all or any portion of the Premises or to assign or otherwise
encumber this Lease, Tenant shall give to Landlord notice of Tenant’s intention to do so not less
than thirty (30) days prior to the proposed assignment or subletting. Tenant’s notice shall set
forth the price and all other terms of the proposed subletting or assignment. Within twenty (20)
days after receipt of said notice, Landlord shall have the right to sublet the Premises from Tenant
at the same rental stipulated in the notice of intent to sublet, or to purchase Tenant’s

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interest in this Lease, or take an assignment thereof, or to terminate this Lease upon payment
to Tenant of the cash consideration set forth in Tenant’s notice of intent. In the event that the
terms of the proposed assignment would allow an assignee to pay the cash consideration for the
assignment in installments or with a promissory note, Landlord shall be able to make payment on
such terms. If Landlord does not respond to Tenant’s notice within twenty (20) days, Tenant may
then submit the name and address of the proposed sublessee or assignee, with the price and all
other terms of the proposed subletting or assignment the same as initially submitted to Landlord.

     (c) Anything herein to the contrary notwithstanding, if Landlord shall not elect to exercise
the rights set forth in the immediately preceding paragraph, such election shall not under any
circumstances be deemed a consent to the proposed subletting, assignment, sale, or other transfer
of Tenant’s interest in and to this Lease and/or the Premises and it is expressly understood that
any determination by Landlord not to exercise such rights shall not preclude Landlord from
withholding its consent to such proposed subletting, assignment, sale or other transfer, as the
case may be.

     (d) If the rental paid under any sublease, after Tenant deducts reasonable expenses incurred
to sublease the space, of all or any part of the Premises exceeds the rental or pro rata portion of
the rental, as the case may be for the Premises, Tenant shall pay Landlord each month, as
additional rent, at the same time as the monthly installments of fixed rent become due hereunder,
fifty percent (50%) of the net excess of the rental paid under the sublease over the rental (or pro
rata portion of the rental) paid under this lease.

     SECTION 8.2

     If Tenant is a partnership, a withdrawal or change, whether voluntary, involuntary or by
operation of law, of partners owning a controlling interest in Tenant shall be deemed a voluntary
assignment of this Lease and subject to the provisions of Section 8.1. If Tenant is a corporation,
any dissolution, merger, consolidation or other reorganization of Tenant, or the sale or transfer
(whether by way of one or more sales or transfers) of a controlling interest of the capital stock
of Tenant shall be deemed a voluntary assignment of this Lease and subject to the provisions of
Section 8.1. However, the preceding sentence shall not apply to corporations the stock of which is
traded through a national or regional exchange or over-the-counter.

ARTICLE IX

TENANT’S MAINTENANCE AND REPAIRS

     SECTION 9.1

     Tenant will keep and maintain the Premises and all fixtures and equipment located therein in a
clean, safe and sanitary condition, will take good care thereof and make all required repairs
thereto, will suffer no waste or injury thereto, and will, at the expiration or other termination
of the Lease Term, surrender the Premises, broom clean, in the same order and condition they were
in on the Lease Commencement Date, with the exception of ordinary wear and tear and unavoidable
reasonable damage by the elements.

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     SECTION 9.2

     Except as otherwise provided in Article XVIII hereof, all injury, breakage and damage to the
Premises and to any other part of the Building caused by any sole act or omission of Tenant or any
agent, employee, subtenant, licensee, contractor, customer, client, family member, or invitee of
Tenant, shall be repaired by and at the sole expense of Tenant, except that Landlord shall have the
right, at its sole option, to make such repairs and to charge Tenant for all reasonable costs and
expenses incurred in connection therewith as additional rent hereunder. The liability of Tenant
for such costs and expenses shall be reduced by the amount of any insurance proceeds received by
Landlord on account of such injury, breakage or damage.

     SECTION 9.3

     During the term of this lease, for the Premises Tenant shall, at its own cost and expense,
promptly observe and comply with all present and future laws, ordinances, requirements, orders,
directives, rules, and regulations of the federal, state, county, town, village, and city
governments and of all governmental authorities affecting the Premises and appurtenances thereto or
any part thereof, whether the same are in force at the lease Commencement Date or may in the future
be passed, enacted, or directed, and Tenant shall pay all costs, expenses, liabilities, losses,
damages, fines, penalties, claims, and demands, including reasonable counsel fees, that may in any
manner arise out of or be imposed because of the failure of Tenant to comply with the covenants of
this Section 9.3.

     SECTION 9.4

     Notwithstanding the foregoing, Landlord shall be responsible for causing the common areas of
the Building to comply with fire/life safety requirements as applied to the City of Alexandria,
Virginia, and for insuring that the initial construction of the Premises complies with such
requirements and with all applicable codes, laws, ordinances and regulations relating to the
initial construction of the Premises but not the use thereof, which shall be Tenant’s sole
responsibility. Landlord shall also be responsible for insuring that the common areas of the
Building and the initial construction of the Premises comply with the Americans with Disabilities
Act of 1990 (“ADA”) as reasonably determined by Landlord or subsequently determined by a court of
competent jurisdiction. If Tenant shall make any renovations or improvement to the Premises,
Tenant shall, at its sole expense, be responsible for compliance with the requirements of the ADA
in connection therewith. Landlord acknowledges that the Building currently meets all ADA and City
fire/life safety requirements.

ARTICLE X

TENANT ALTERATIONS

     SECTION 10.1

     It is understood and agreed that Landlord will not make, and is under no obligation to make,
any structural or other alterations, decorations, additions or improvements in or to the Premises
other than those described in this Lease.

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     Tenant will not make or permit anyone to make any alterations, decorations, additions, or
improvements (hereinafter referred to collectively as “Improvements”), structural or otherwise, in
or to the Premises or the Building without the prior written consent of Landlord, not to be
unreasonably withheld. When granting its consent it shall not be unreasonable for Landlord to
require the approval of plans and specifications, approval of the contractor or other persons to
perform the work, and the obtaining of specified insurance. All Improvements permitted by the
Landlord must conform to all rules and regulations established from time to time by the Board of
Fire Underwriters having jurisdiction or any similar body exercising similar functions, and to all
laws, regulations, and requirements of the federal, Virginia, and/or City of Alexandria
governments. As a condition precedent to such written consent of Landlord, Tenant agrees to obtain
and deliver to Landlord written, unconditional waivers of mechanic’s and materialmen’s liens
against the Building and the land upon which it is situated from all work, labor, and services to
be performed and materials to be furnished in connection with Improvements to the Premises. If,
notwithstanding the foregoing, any mechanic’s or materialmen’ s lien is filed against the Premises,
the Building, and/or the land upon which it is situated for work claimed to have been done for, or
materials claimed to have been furnished to, the Premises, such lien shall be discharged by Tenant
within five (5) days after notice, at Tenant’s sole cost and expense, by the payment thereof or by
the filing of a bond. If Tenant shall fail to discharge any such mechanic’s or materialsmen’s
lien, Landlord may, at its sole option, discharge such lien and treat the cost thereof (including
attorney’s fees incurred in connection therewith) as additional rent payable with the next fixed
monthly rental payment falling due. It is expressly agreed that such discharge by Landlord shall
not be deemed to waive or release the default of Tenant in not discharging such lien. It is
further understood and agreed that any alterations, decorations, additions, or improvements to the
Premises shall be conducted on behalf of Tenant and not on behalf of Landlord, and that Tenant
shall not be deemed to be agent of Landlord. It is further understood and agreed that in the event
Landlord shall give its written consent to the making of any improvements to the Premises, such
written consent shall not be deemed to be an agreement or consent by Landlord to subject its
interest in the Premises, the Building or the land upon which it is situated to any mechanic’s or
materialmen’s liens which may be filed in connection therewith.

     SECTION 10.2

     Tenant shall indemnify and hold Landlord harmless from and against any and all expenses,
liens, claims, liabilities, and damages based on or arising directly or indirectly by reason of the
making of any Improvements to the Premises. If any Improvements are made, Landlord shall have the
right to remove and correct such Improvements and restore the Premises to their condition
immediately prior thereto and Tenant shall be liable for all expenses incurred by Landlord in
connection therewith. All Improvements to the Premises or the Building made by either party shall
immediately become the property of Landlord and shall remain upon and be surrendered with the
Premises as part thereof at the end of the Lease Term except that if Tenant is not in default under
this Lease, Tenant shall have the right to remove, prior to the expiration of the Lease Term, all
movable furniture, furnishings and equipment installed in the Premises solely at the expense of
Tenant. All damage and injury to the Premises or the Building caused by such removal shall be
repaired by Tenant, at Tenant’s sole expense. If such property of Tenant is not removed by Tenant
prior to the expiration of termination of this Lease, the same shall become the property of
Landlord and shall be surrendered with the Premises as a part thereof.

10

 

ARTICLE XI

SIGNS AND FURNISHINGS

     SECTION 11.1

     No sign, advertisement, or notice referring to Tenant shall be inscribed, painted, affixed, or
otherwise displayed on any part of the exterior or the interior of the Building except on the
directories and the doors of the offices or beside suite entries and such other areas as are
designated by Landlord, and then only in such place, number, size, color, and style as are
compatible with the Building design, signage and graphic program and are approved by Landlord. All
of Tenant’s signs that are approved by Landlord shall be installed by Landlord at Tenant’s sole
cost and expense, with the exception of the initial building standard directory listings and suite
entry signage, which is at Landlord’s expense. Tenant shall reimburse Landlord for such amount
upon written demand from Landlord. If any sign, advertisement or notice that has not been approved
by Landlord is exhibited or installed by Tenant, Landlord shall have the right to remove the same
at Tenant’s expense. Landlord shall have the right to prohibit any advertisement of or by Tenant
which in Landlord’s opinion tends to impair the reputation of the Building or its desirability as a
high-quality office building and, upon written notice from Landlord, Tenant shall immediately
refrain from and discontinue any such advertisement. Landlord reserves the right to affix,
install, and display signs, advertisement, and notices on any part of the exterior or interior of
the Building except the Premises.

     SECTION 11.2

     Landlord shall have the right to prescribe the weight and position of file systems, safes,
computer systems, and other heavy items, equipment, and fixtures, which shall, if considered
necessary by the Landlord, be positioned in consultation with Landlord in order to distribute their
weight. Any and all damage or injury to the Premises or the Building caused by moving the property
of Tenant into or out of the Premises, or due to the same being in or upon the Premises shall be
repaired by and at the sole cost of Tenant. No furniture, equipment, or other bulky matter of any
description will be received into the Building or carried in the elevators except as approved by
Landlord and all such furniture, equipment, and other bulky matter shall be delivered only through
the designated delivery entrance of the Building and the designated freight elevator. All moving
of furniture, equipment, and other materials shall be under the direct control and supervision of
the Landlord who shall not, however, be responsible for any damage to or charges for moving the
same. Tenant agrees promptly to remove from the sidewalks adjacent to the Building any of Tenant’s
furniture, equipment, or other materials there delivered or deposited.

ARTICLE XII

TENANT’S EQUIPMENT

     SECTION 12.1

     Tenant will not install or operate in the Premises anything other than normal office equipment
and appliances without first obtaining the prior written consent of Landlord, who may condition
such consent upon the payment by Tenant of additional rent in compensation for the

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excess consumption of electricity or other utilities (including, but not limited to any excess
utility, sales or other taxes and resultant increases in electricity charges for the Building) and
for the cost of any additional wiring or apparatus that may be occasioned by the operation of such
equipment or machinery. Tenant shall not install any equipment of any type or nature that will or
may necessitate any changes, replacement or additions to, or in the use of, the water system,
heating system, plumbing system, air conditioning system or electrical system of the Premises or in
the Building, without first obtaining the prior written consent of Landlord and shall provide
Landlord with a list of any additional equipment to be used in Premises, including type,
manufacturer, model number and power required. Landlord may refuse to grant such permission unless
Tenant shall agree to pay Landlord’s costs for installation of supplementary air conditioning
capacity or electrical systems as necessitated by such equipment. Business machines and mechanical
equipment belonging to Tenant which causes noise or vibrations that may be transmitted to the
structure of the Building or to any space therein to such a degree as to be objectionable to
Landlord or to any tenant in the Building shall be installed and maintained by Tenant, at Tenant’s
expense, on vibration eliminators or other devices sufficient to reduce such noise and vibration to
a level satisfactory to Landlord.

ARTICLE XIII

INSPECTION BY LANDLORD

     SECTION 13.1

     Tenant will permit Landlord or its agents or representatives to enter the Premises, at any
time and from time to time in case of emergency or after giving Tenant twenty-four (24) hours’
notice, without charge therefore to Landlord and without diminution of the rent payable by Tenant,
to examine, inspect, and protect the Premises and the Building, to make such alterations and/or
repairs as in Landlord’s sole judgment may be deemed necessary, to exhibit the same to prospective
mortgages and, during the last ninety (90) days of the Lease Term, to prospective tenants. In
connection with any such entry, Landlord shall endeavor to minimize the disruption to Tenant’s use
of the Premises.

ARTICLE XIV

INSURANCE

     SECTION 14.1

     Tenant shall not conduct or permit to be conducted any activity, or place any equipment in or
about the Premises or the Building, which will in any way increase the rate of fire insurance or
other insurance on the Building. If any increase in the rate of fire insurance or other insurance
is due to any activity or equipment of Tenant in or about the Premises or the Building; Tenant
shall be liable for the amount of such increase. Tenant shall reimburse Landlord for such amount
upon determination and liability and written demand from Landlord and any such sum shall be
considered additional rent payable hereunder.

     SECTION 14.2

     Throughout the Lease Term, Tenant shall obtain and maintain commercial general liability
insurance, including contractual liability, with minimum limits of One Million and

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no/100 Dollars ($1,000,000.00) for each occurrence and One Million and no/100 Dollars
($1,000,000.00) General Aggregate. Such insurance shall be in a company or companies licensed to
do business in the Commonwealth of Virginia. Said insurance shall name Landlord as an additional
insured thereunder, shall contain an endorsement that such policy shall remain in full force and
effect notwithstanding that the insured has waived its right of action against any party prior to
the occurrence of a loss, shall contain a standard waiver of subrogation endorsement, and at the
request of Landlord shall include any mortgagee or ground lessor as additional insureds. Receipts
evidencing payment of the premium for such insurance shall be delivered by Tenant at least
annually, and each such policy shall contain an endorsement prohibiting cancellation or reduction
of coverage without first giving Landlord thirty (30) days prior written notice of such proposed
action. Tenant shall provide a copy of said Insurance Policy to the Landlord prior to taking
occupancy.

ARTICLE XV

SERVICES AND UTILITIES

     SECTION 15.1

     Landlord shall furnish to the Premises air conditioning, heat and ventilation, during the
seasons when they are required, as determined in Landlord’s reasonable judgment. Landlord shall
also provide reasonably adequate water, exterior window-cleaning service, and janitorial service on
Monday through Friday only (excluding legal holidays), as required in Landlord’s sole but not
unreasonable judgment. Tenant shall have the right to use up to 6 watts per rentable square foot
of total electrical usage with the Premises, excluding Building lighting and HVAC equipment, during
the normal hours of operation of the Building. Landlord will also provide elevator service;
provided, however that Landlord shall have the right to remove elevators from service as may be
required for moving freight, or for servicing or maintaining the elevators and/or the Building.
Landlord shall make every reasonable attempt to maintain one elevator in service at all times. The
normal hours of operation of the Building will be 6:00 a.m. to 8:00 p.m. on Monday through Friday
(except legal holidays), 8:00 a.m. to 2:00 p.m. on Saturday (except legal holidays), and 8:00 am to
2:00 pm on Sunday. Access to the buildings during any hours outside of 8:00 am to 5:00 pm Monday
through Friday will require a security access card or key. There will be no normal hours of
operation of the Building on legal holidays and Landlord shall not be obligated to maintain or
operate the Building at such times unless special arrangements are made by Tenant. Tenant shall
have access to the Building and the premises twenty-four (24) hours per day, three hundred
sixty-five (365) days per year via an electronic access system. Subject to exclusion during
emergencies or repairs if, in landlord’s sole judgment, such exclusion is necessary. Landlord, at
Tenant’s expense, shall supply cards for the electronic access system at Ten dollars ($10) per
card. The security system shall control entry into the Building and parking garage. Landlord will
furnish all services and utilities required by this Lease only during the normal hours of operation
of the Building unless otherwise specified herein. It is also agreed that if Tenant requires
air-conditioning or heat beyond the normal hours of operation set forth herein, Landlord will
furnish such air conditioning or heat provided Tenant gives Landlord’s agent sufficient advance
notice of such requirement and Tenant agrees to pay for the cost of such extra service (including
administrative fees) in accordance with Landlord’s then-current schedule costs and assessments for
such extra service. Tenant shall also be

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responsible for the cost of all above-standard or non-standard uses of the utilities and
service provided to the Premises.

     SECTION 15.2

     It is understood and agreed that Landlord shall not have liability to Tenant as a result of
Landlord’s failure or inability to furnish any of the utilities or services required to be
furnished by Landlord hereunder, whether resulting from breakdown, removal from service for
maintenance or repairs, strikes, scarcity of labor or materials, acts of God, governmental
requirements, etc. It is further agreed that any such failure or inability to furnish the
utilities or services required hereunder shall not be considered an eviction, actual or
constructive, of Tenant from the Premises and shall not entitle Tenant to terminate this Lease.
Notwithstanding the foregoing, if any such failure or inability to furnish such utilities or
services required hereunder which renders the Premises untenantable for five (5) consecutive days,
Tenant shall be entitled to a pro rata abatement of any rent payable hereunder for the period
thereafter until the Premises are tenantable.

     SECTION 15.3

     The parties hereto agree to comply with all mandatory energy, water, or other conservation
controls or requirements applicable to office buildings instituted by the federal, Virginia, or
City of Alexandria governments including, without limitation, controls on the permitted range of
temperature settings in office buildings or requirements necessitating curtailment of the volume of
energy consumption or the hours of operation of the Building. Any terms or conditions of this
Lease that conflict or interfere with compliance with such controls or requirements shall be
suspended for the duration of such controls or requirements. It is further agreed that compliance
with such controls or requirements shall not be considered an eviction, actual or constructive, of
Tenant from the Premises and shall not entitle Tenant to terminate this Lease or to an abatement or
reduction of any rent payable hereunder.

ARTICLE XVI

LIABILITY OF LANDLORD

     SECTION 16.1

     Landlord shall not be liable to Tenant, its employees, agents, business invitees, licensees,
customers, clients, family members or guests for any damage, injury, loss, compensation, or claim,
including but not limited to claims for the interruption of loss of Tenant’s business, based on,
arising out of, or resulting from, including but not limited to the following: repairs to any
portion of the Premises or the Building; interruption of the use of the Premises; any accident or
damage resulting from the use or operation (by Landlord, Tenant, or any other person or persons) of
elevator, or of the heating, cooling, electrical, or plumbing equipment or apparatus; the
termination of this Lease by reason of the destruction of the Premises; any fire, robbery, theft,
mysterious disappearance, and/or any other casualty; the actions of any other tenants of the
Building or of any other person or persons; any leakage in any part or portion of the Premises or
the Building, or from water, rain or snow that may leak into, or flow from, any part of the
Premises or the Building, or from drains, pipes or plumbing work in the Building. Any goods,

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property, or personal effects stored or placed by Tenant or its employees in or about the
Premises or Building shall be at the sole risk of Tenant, and Landlord shall not in any manner be
held responsible therefore. It is understood that the employees of Landlord are prohibited from
receiving any packages or other articles delivered to the Building for Tenant, and if any such
employee receives any such package or articles, such employee shall be acting as the agent of
Tenant for such purposes and not as the agent of Landlord. Notwithstanding the foregoing
provisions of this Section 16.1, Landlord shall not be released from liability to Tenant for any
damage or injury caused by the willful misconduct or negligence of Landlord or its employees.

     SECTION 16.2

     Tenant hereby agrees to indemnify and hold Landlord harmless from and against all demands,
actions, causes of action, costs, damages, claims, liabilities, and expenses (including attorneys’
fees) suffered by or claimed against Landlord, directly or indirectly, based on, arising out of, or
resulting from (i) Tenant’s use and occupancy of the Premises or the business conducted by Tenant
therein (ii) any act or omission by Tenant or its employees, agents, or invitees, or (iii) any
breach or default by Tenant in the performance or observance of its covenants or obligations under
this Lease.

     Landlord hereby agrees to indemnify and hold Tenant harmless from and against all demands,
actions, causes of action, costs, damages, claims, liabilities, and expenses (including attorneys’
fees) suffered by or claimed against Tenant, directly or indirectly, based on, arising out of, or
resulting from (i) Landlord’s use and occupancy of the Premises or the business conducted by
Landlord therein (ii) any act or omission by Landlord or its employees, agents, or invitees, or
(iii) any breach or default by Landlord in the performance or observance of its covenants or
obligations under this Lease.

     SECTION 16.3

     In the event that at any time Landlord shall sell or transfer the Building, the Landlord named
herein shall not be liable to Tenant for any obligations or liabilities based on or arising out of
events or conditions occurring on or after the date of such sale or transfer.

     SECTION 16.4

     In the event that at any time during the Lease Term Tenant shall have a claim against
Landlord, Tenant shall not have the right to deduct the amount allegedly owed to Tenant from any
rent or other sums payable to Landlord hereunder, it being understood that Tenant’s sold method for
recovering upon such claim shall be to institute an independent action against Landlord.

     If, as a result of any alleged breach or default in the performance of any of the provisions
of the Lease by Tenant, Landlord uses the service of an attorney in order to secure compliance with
such provisions or recover damages therefore or possession of the Premises, or if Landlord is made
a party to any action as a result of any alleged act or failure to act of Tenant, then Tenant shall
reimburse Landlord, for any and all reasonable attorneys’ fees and expenses so incurred by Landlord
as additional rent within five (5) days of determination of Tenant’s fault.

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     If, as a result of any alleged breach or default in the performance of any of the provisions
of this Lease by Landlord, Tenant uses the services of an attorney in order to secure compliance
with such provisions or recover damages therefore or possession of the Premises, or if Tenant made
a party to any action as a result of any alleged act or failure to act of Landlord, then Landlord
shall reimburse Tenant, upon demand for any and all reasonable attorney’s fees and expenses so
incurred by Tenant within five (5) days after Tenant’s demand therefore.

     SECTION 16.5

     Tenant agrees that if Tenant is awarded a money judgment against Landlord, Tenant’s sole
recourse for satisfaction of such judgment shall be limited to execution against Landlord’s
interest in the Complex. In no event shall any partner, shareholder, officer, director, or any
principal of Landlord or any other persons be held to have any personal liability for satisfaction
of any claims or judgment that Tenant may have against Landlord.

ARTICLE XVII

RULES AND REGULATIONS

     SECTION 17.1

     Tenant and its agents, employees, invitees, licensees, customers, clients, family members,
guests and permitted subtenants shall at all times abide by and observe the rules and regulations
promulgated by Landlord and attached hereto as Exhibit A and made a part hereof. In
addition, Tenant and its agents, employees, invitees, licensees, customers, clients, family
members, guests and permitted subtenants shall abide by and observe all other rules or regulations
that Landlord may promulgate from time to time for the operation and maintenance of the Building,
provided that notice thereof is given to Tenant and such rules and regulations are not inconsistent
with provisions of this Lease. Nothing contained in this Lease shall be construed as imposing upon
Landlord any duty or obligation to enforce such rules and regulations or the terms, and conditions,
or covenants contained in any other lease, as against any other tenant, and Landlord shall not be
liable to Tenant for the violation of such rules or regulations by any other tenant or its
employees, agents, business invitees, licensees, customers, clients, family members or guests.

ARTICLE XVIII

DAMAGE OR DESTRUCTION

     SECTION 18.1

     If during the Lease Term the Premises or the Building are totally or partially damaged or
destroyed from any cause, thereby rendering the Premises totally or partially inaccessible or
unusable, Landlord shall diligently (taking into account the time necessary to effectuate a
satisfactory settlement with any insurance company involved) restore and repair the Premises and
the Building to substantially the same condition they were in prior to such damage; provided,
however, if the repairs and restoration cannot be completed within ninety (90) days after the
occurrence of such damage (taking into account the time needed for removal of debris, preparation
of plans, and issuance of all required governmental permits), Landlord shall have the right, at its
sole option, to terminate this Lease by giving written notice of termination to Tenant within
forty-five (45) days after the occurrence of such damage. If this Lease is terminated

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pursuant to the preceding sentence, all rent payable hereunder shall be apportioned and paid
to the date of the occurrence of such damage. If the repairs and restoration are not completed
within one hundred eighty (180) days after the occurrence of such damage (the “Restoration
Period”), Tenant shall have the right, at its sole option, to terminate this Lease by giving
written notice of termination to Landlord within thirty (30) days after the expiration of the
Restoration Period. If this Lease is not terminated as a result of damage, and provided that such
damage was not caused by the act or omission of Tenant or any of its employees, agents, licensees,
subtenants, customers, clients, family members, or guests, until the repair and restoration of the
Premises is completed Tenant shall be required to pay fixed monthly rent and additional rent only
for that part of the Premises that Tenant is able to use while repairs are being made, based on the
ratio that the amount of usable rentable area bears to the total rentable area in the Premises.
Landlord shall bear the costs and expenses of repairing and restoring the Premises, except that if
such damage or destruction was caused by the act or omission of Tenant or any of its employees,
agents, licensees, subtenants, customers, clients, family members, or guests, upon written demand
from Landlord, Tenant shall pay to Landlord the amount by which such costs and expenses exceed the
insurance proceeds, if any, received by Landlord on account of such damage or destruction.

     SECTION 18.2

     If Landlord repairs and restores the Premises as provided in Section 18.1, Landlord shall not
be required to repair or restore any decorations, alterations, or Improvements to the Premises
previously made by Tenant or any trade fixtures, furnishings, equipment, or personal property
belonging to Tenant. It shall be Tenant’s sole responsibility to repair and restore all such
items.

     SECTION 18.3

     Notwithstanding anything to the contrary herein, if there is a destruction of the Building
that exceeds twenty-five percent (25%) of the replacement value of the Building from any risk,
whether or not the Premises are damaged or destroyed, Landlord shall have right to terminate this
Lease by written notice to Tenant.

ARTICLE XIX

CONDEMNATION

     SECTION 19.1

     If the whole or a substantial part (as hereinafter defined) of the Premises and/or the
Building or the use or occupancy of the Premises shall be taken or condemned by any governmental or
quasi-governmental authority for any public or quasi-public use or purpose (including a sale
thereof under treat of such taking), then this lease shall terminate on the date title thereto
vests in such governmental or quasi-governmental authority, and all rent payable hereunder shall be
apportioned as of such date. If less than a substantial part of the Premises (or the use and
occupancy thereof) is taken or condemned by any governmental or quasi-governmental authority for
any public or quasi-public use or purpose (including a sale thereof under threat of such a taking),
this Lease shall continue in full force and effect, but the fixed monthly rent and additional rent
thereafter payable hereunder shall be equitably adjusted (on the

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basis of the ratio of the number of square feet of rentable area taken to the total rentable
area in the Premises prior to such taking) as of the date title vests in the governmental or
quasi-governmental authority. For purposes of this Section 19.1, a substantial part of the
Premises shall be considered to have been taken if more than twenty-five percent (25%) (in the case
of a temporary taking only if for a term greater than one year) of the Premises is rendered
unusable as a result of such taking.

     SECTION 19.2

     All awards, damages, and other compensation paid by the condemning authority on account of the
taking or condemnation (or sale under threat of such a taking) shall belong to Landlord, and Tenant
hereby assigns to Landlord all rights to such awards, damages and compensation. Tenant agrees not
to make any claim against Landlord or the condemning authority for any portion of such award or
compensation attributable to damages to the Premises, the value of the unexpired term of this
Lease, the loss of profits or goodwill, leasehold improvements or severance damages. Nothing
contained herein, however, shall prevent Tenant from pursuing a separate claim against the
condemning authority for the value of furnishings, equipment and trade fixtures installed in the
Premises at Tenant’s expense and for relocation expenses, provided that such claim shall in no way
diminish the award or compensation payable to or recoverable by Landlord in connection with such
taking or condemnation.

ARTICLE XX

DEFAULT BY TENANT

     SECTION 20.1

     The occurrence of any of the following shall constitute a default by Tenant under this Lease:

     (a) Tenant fails to make any payment of fixed monthly rent, additional rent, or any other sum
due under this Lease within five (5) business days of the due date;

     (b) if Tenant shall violate or fail to perform any other term, condition, covenant or
agreement to be performed or observed by Tenant under this Lease;

     (c) if Tenant shall abandon the Premises;

     (d) if Tenant or any guarantor (i) is voluntarily adjudicated as bankrupt or insolvent, (ii)
seeks or consents to the appointment of a receiver of trustee for itself or for all or a part of
its property, (iii) files a petition seeking relief under the bankruptcy or similar laws of the
United States or any state of any other jurisdiction, (iv) makes a general assignment for the
benefit of creditors, or (v) admits in writing its inability to pay its debts as they mature;

     (e) if a petition shall be filed against Tenant or any guarantor seeking any reorganization,
arrangement, composition, readjustment, liquidation, dissolution, or similar relief under any
present or future federal or state law or other statute, law, or regulation and shall remain
undismissed or unstayed for thirty (30) days, or if any trustee, receiver or liquidator of Tenant
or any guarantor, or of all or any substantial part of its properties, shall be appointed with

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the consent or acquiescence of Tenant or any guarantor, and such appointment shall remain
unvacated or unstayed for thirty (30) days; or

     (f) If any attachment or execution of any type shall be issued against Tenant or any
guarantor, or Tenant’s property located on the Premises, or Tenant’s rights or interest in the
Lease, or guarantor’s or Tenant’s assets of any type or nature whatsoever, including but not
limited to federal, state, or municipal tax liens, and such is not dismissed or released within ten
(10) days thereafter.

     Notwithstanding the provisions of this Section 20.1, a default shall not be deemed to have
occurred if Tenant shall fail to make any payment of fixed monthly rent, additional rent, or any
other sum due under this Lease within five (5) business days of the due date if Tenant makes such
payment within five (5) business days after written notice of the late payment is given to Tenant
by Landlord.

     Notwithstanding the provisions of this Section 20.1, a default shall not be deemed to have
occurred if Tenant shall fail to comply with any term, provision or covenant of this Lease, other
than payment of fixed monthly rent or additional rent, if such failure is cured or removed within
thirty (30) days after written notice is given to Tenant by Landlord setting forth the nature of
such default, or for a default which cannot be cured with such period, so long as Tenant shall
commence to remove or cure the same within such 30-day period and shall diligently and
expeditiously proceed to complete the cure or removal thereof.

     SECTION 20.2

     If Tenant shall be in default under this Lease, Landlord shall have the right, at its sole
option, to terminate this Lease. With or without terminating this Lease, Landlord may re-enter and
take possession of the Premises and the provision of this Article XX shall operate as a notice to
quit, and any other notice to quit or notice of Landlord’s intention to re-enter the Premises is
hereby expressly waived. If necessary, Landlord may proceed to recover possession of the Premises
under and by virtue of the laws of the Commonwealth of Virginia, or by such other proceedings,
including re-entry and possession, as may be applicable. If Landlord elects to terminate this
Lease, everything contained in this Lease on the part of the Landlord to be done and performed
shall cease without prejudice, however, to the right of Landlord to recover from Tenant all rent
and other sums accrued up to the time of termination or recovery of possession by Landlord,
whichever is later. Whether or not this Lease is terminated by reason of Tenant’s default, the
Premises may be relet by Landlord for such rent and upon such terms as Landlord deems reasonable
under the circumstances and, if the full rental provided herein plus the costs, expenses and
damages described below shall not be realized by Landlord, Tenant shall be liable for all damages
sustained by Landlord, including, without limitation, deficiency in fixed and additional rent,
reasonable attorney’s fees, brokerage fees, and the expenses of placing the Premises in first-class
rentable condition. Any damages or loss of rent sustained by Landlord may be recovered by
Landlord, at Landlord’s option, at the time of the reletting or in separate actions, from time to
time, as said damage shall have been made more easily ascertainable by successive relettings, or,
at Landlord’s option, may be deferred until expiration of the Lease Term, in which event Tenant
hereby agrees that the cause of action shall not be deemed to have accrued until the date of
expiration of the Lease Term. The provisions contained in this Section

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20.2 shall be in addition to, and shall not prevent the enforcement of any claim Landlord may
have against Tenant for anticipatory breach of this Lease.

     SECTION 20.3

     At Landlord’s sole option, in the event of a default by Tenant the entire sum, including, but
not limited to fixed monthly rent, additional rent, any payments due or to be due Landlord for
Improvements to the Premises, and all other sums due or to be due Landlord at any time during the
Lease Term shall become immediately due and payable. In the event that Landlord opts to accelerate
the amounts due as hereby permitted and Landlord relets the Premises, Tenant shall be entitled, on
a monthly basis, to the amount of money, if any, which Landlord receives as a result of such
reletting which is in excess of the amount paid for that month by Tenant. In the event that
Landlord chooses not to accelerate the amounts due as herein permitted, Tenant shall remain liable
for any deficiency between fixed monthly rent and other amounts received by Landlord upon
reletting, if any, of the Premises as compared with the fixed monthly rent and other amounts
reserved with Landlord, that Landlord would have been entitled to receive over the unexpired
portion of the Lease Term. Tenant also shall not be entitled to receive any excess of any such
rents collected over the rents reserved herein.

     SECTION 20.4

     All rights and remedies of Landlord set forth herein are in addition to all other rights and
remedies available to Landlord at law or in equity. All right and remedies available to Landlord
hereunder at law or in equity are expressly declared to be cumulative. The exercise by Landlord of
any such right or remedy shall not prevent the concurrent or subsequent exercise of any other right
or remedy. No delay in the enforcement or exercise of any such right or remedy shall constitute a
waiver of any default by Tenant hereunder or of any of Landlord’s rights or remedies in connection
therewith. Landlord shall not be deemed to have waived any default by Tenant hereunder unless such
waiver is set forth in a written instrument signed by Landlord. If Landlord waives in writing any
default by Tenant, such waiver shall not be construed as a waiver of any covenant, condition, or
agreement set forth in this Lease except as to the specific circumstances described in such written
waiver.

     SECTION 20.5

     If Landlord shall institute proceedings against Tenant and a compromise or settlement thereof
shall be made, the same shall not constitute a waiver of the same or any other covenant, condition,
or agreement set forth herein nor of any of Landlords rights hereunder unless expressly agreed in
writing. Neither the payment by Tenant of a lesser amount than the installments of fixed rent,
additional rent, or of any sums due hereunder nor any endorsement or statement on any check or
letter accompanying a check for payment or rent of other sums payable hereunder shall be deemed an
accord and satisfaction, and Landlord may accept such check or payment without prejudice to
Landlord’s right to recover the balance of such rent or other sums or to pursue any other remedy
available to Landlord. No reentry by Landlord, and no acceptance by Landlord of keys from Tenant,
shall be considered an acceptance of a surrender of this Lease.

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     SECTION 20.6

     If Tenant defaults in the making of any payment or in the doing of any act herein required to
be made or done by Tenant, then Landlord may, but shall not be required to, make such payment or do
such act. If Landlord elects to make such payment or do such act, all costs and expenses incurred
by Landlord, plus interest thereon at the rate per annum which is two percent (2%) higher than the
“prime rate” then being charged by a national bank reasonably selected by Landlord, from the date
paid by Landlord to the date of payment thereof by Tenant, shall be immediately paid by Tenant to
Landlord; provided, however, that nothing contained herein shall be construed as permitting
Landlord to charge or receive interest in excess of the maximum legal rate then allowed by law.
The taking of such action by Landlord shall not be considered as a cure of such default by Tenant
or prevent Landlord from pursuing any remedy it is otherwise entitled to pursue in connection with
such default.

     SECTION 20.7

     If Tenant fails to make any payment of fixed monthly rent or of additional rent within five
(5) business days from the date such payment is due and payable, Tenant shall pay to Landlord a
late charge of five percent (5%) of the amount of such payment. In addition, Tenant shall pay
interest on the amount of the late payment at the rate of six percent (6%) per annum from the date
such payment became due to the date of payment thereof by Tenant; provided, however, that if such
interest is in an amount higher than the maximum legal rate, Tenant shall be obligated to pay only
an amount equal to the highest amount permitted by law. Such late charge and interest shall
constitute additional rent due and shall be payable hereunder within five (5) days of written
demand therefore.

ARTICLE XXI

SUBORDINATION AND ATTORNMENT

     SECTION 21.1

     (a) Subordination. This Lease is and shall remain subject and subordinate to the lien
of any and all current and future mortgages and/or any ground leases (which term “mortgages” shall
include both construction and permanent financing and shall include deeds of trust and similar
security instruments) which may now encumber the Building and/or the Complex, and to all and any
renewals, extensions, modifications, recasting, or refinancings thereof. At any time after the
execution of this Lease, the holder of any mortgage to which this Lease is subordinate shall have
the right to declare this Lease to be superior to the lien of such mortgage and Tenant agrees to
execute all documents required by such holder in confirmation thereof.

     In confirmation of the foregoing subordination, Tenant shall, at Landlord’s request, promptly
execute any requisite or appropriate certificate or other document.

     (b) Attornment. Tenant agrees that in the event any proceedings are brought for the
foreclosure of any mortgage encumbering the Building or the termination of any ground lease
affecting the Building, Tenant shall attorn to the purchaser at such foreclosure sale or any ground
lessor, as the case may be, if requested to do so by such party, and shall recognize such party as
the Landlord under this Lease, and Tenant waives the provisions of any statute or rule of law,

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now or hereafter in effect, which may give or purport to give Tenant any right to terminate or
otherwise adversely affect this Lease and the obligations of Tenant hereunder in the event any such
foreclosure proceeding is prosecuted or completed.

ARTICLE XXII

HOLDING OVER

     SECTION 22.1

     In the event that Tenant shall not immediately surrender the Premises on the date of the
expiration of the Lease Term, Tenant shall become a tenant by the month at one hundred fifty
percent (150%) of the fixed monthly rent in effect during the last month of the Lease Term, plus
one hundred fifty percent (150%) of all additional rent in effect during the last month of the
Lease Term. Said pro-rata monthly tenancy shall commence on the first day following the expiration
of the Lease Term. As a month-to month tenant, Tenant shall be subject to all the terms,
conditions, covenants, and agreements of this Lease, except as to the amount of the monthly rent,
which shall be in the amount specified in this Section 22.1. After becoming a month-to-month
tenant, Tenant shall give to Landlord at least thirty (30) days written notice of any intention to
quit the Premises, and Tenant shall be entitled to thirty (30) days written notice to quit the
Premises, unless Tenant is in default hereunder, in which event Tenant shall not be entitled to any
notice to quit, the usual thirty (30) days notice to quit being hereby expressly waived.
Notwithstanding the foregoing provisions of this Section 22.1, in the event Tenant shall hold over
after the expiration of the Lease Term, and if Landlord shall desire to regain possession of the
Premises promptly at the expiration of the Lease Term, then at any time prior to Landlord’s
acceptance of rent from Tenant as monthly tenant hereunder, Landlord, at its option, may forthwith
reenter and take possession of the Premises with process, or by any legal process in force in the
Commonwealth of Virginia. To the extent permitted by law, Landlord may accept rent in the holdover
amount and concurrently commence legal proceedings to regain possession of the Premises. Tenant
shall also pay to Landlord all damages sustained by Landlord resulting from retention of possession
by Tenant, including the loss of any proposed subsequent tenant for all or any position of the
Premises.

ARTICLE XXIII

COVENANTS OF LANDLORD

     SECTION 23.1

     Landlord covenants that it has the right to make this Lease for the term aforesaid and that if
Tenant shall pay all rent when due and punctually perform all of the covenants, terms, conditions,
and agreements of this Lease to be performed by Tenant, Tenant shall have the right, during the
term hereby created, to freely, peaceable, and quietly occupy and enjoy the full possession of the
Premises with molestation or hindrance by Landlord or any party claiming through or under Landlord,
subject to the provisions of Sections 21.1 and 23.2 hereof.

     SECTION 23.2

     Landlord hereby reserves to itself and its successors and assigns the following right (all of
which are hereby consented to by Tenant): (i) to change the street address and/or name of the

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Building and/or the arrangement and/or location of entrances, passageways, doors, doorways,
corridors, elevators, stairs, toilets, or other public parts of the Building and to change the
design or configuration of the Building, but only to the extend required by any governmental
authority; (ii) to decorate and make repairs, alterations, additions and improvements, whether
structural or otherwise, in, to and about the Building and any part thereof, and, during the
continuance of any such work, to temporarily close doors, entry ways, and common areas in the
Building and to interrupt or temporarily suspend Building Services and facilities, all without
affecting Tenant’s obligations hereunder, so long as the Premises remain reasonably accessible to
Tenant’s customers and business invitees; (iii) to alter, relocate, reconfigure and reduce the
common areas of the Building, as long as the Premises remain reasonably accessible to Tenant’s
customers or business invitees; (iv) to alter, relocate, reconfigure, reduce and withdraw the
common areas located outside the Building, including parking and access roads, but not so as to
render the Premises reasonably inaccessible; (v) to erect, use and maintain pipes and conduits in
and through the Premises; and (vi) to grant to anyone the exclusive right to conduct any particular
business or undertaking in the Building. Landlord may exercise any or all of the foregoing rights
without being deemed to be guilty of an eviction, actual or constructive, or a disturbance or
interruption of the business of Tenant or of Tenant’s use or occupancy of the Premises or giving
rise to any claim for set-off, abatement of rent or otherwise.

ARTICLE XXIV

GENERAL PROVISIONS

     SECTION 24.1 NO REPRESENTATIONS

     Tenant acknowledges that neither Landlord nor any broker, agent, or employee of Landlord has
made any representations or promises with respect to the Premises or the Building except as herein
expressly set forth, and no rights, privileges, easements, or licenses are acquired by Tenant
except as herein expressly set forth.

     SECTION 24.2 FINANCING REQUIREMENTS

     If any person, including but not limited to any bank, insurance company, university, pension
or welfare fund, savings and loan association, real estate investment trust, business trust, or
other financial institution providing the first mortgage interim construction financing for the
Building or the Complex and/or the first mortgage permanent financing for the Building requires, as
a condition of such financing, that modifications to this Lease be obtained, and provide that such
modifications (i) do not materially adversely affect Tenant’s use of the Premises as herein
permitted, (ii) do not increase the rentals and other sums required to be paid by Tenant hereunder,
Landlord shall submit such required modifications to Tenant, and if Tenant does not enter into and
execute a written amendment hereto incorporating such required modifications within thirty (30)
days after the same have be submitted to Tenant by Landlord, then Landlord shall thereafter have
the right , at its sole option, to (1) cancel this Lease, (2) to sign on behalf of Tenant pursuant
to a power of attorney, which is expressly granted to the Landlord by Tenant, or (3) to declare an
event of default under this Lease. Such options shall be exercisable by Landlord giving Tenant
written notice of the option elected.

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     SECTION 24.3 NO PARTNERSHIP

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

     SECTION 24.4 BROKERS

     Landlord and Tenant recognize Randall Hagner and Scheer Partners as the brokers procuring the
Lease. Landlord and Tenant each represent and warrant to the other that, except as provided above,
neither of them has employed or dealt with any broker, agent, or finder in carrying on the
negotiations relating to this Lease, nor is any other broker, agent or finder entitled to any fee,
commission or other compensation as a result of any service provided to or engagement by Landlord
and Tenant, as the case may be relating to the duration of this Lease. Landlord shall indemnify
and hold Tenant harmless, and Tenant shall indemnify and hold Landlord harmless, from and against
any claim or claims for brokerage or other commissions arising from or out of any breach of the
foregoing representation and warranty by the respective indemnitor.

     Landlord will not be held responsible for payment of any broker fees resulting from execution
of the renewal period(s) contained within this Lease.

     SECTION 24.5 TENANT ESTOPPEL CERTIFICATES

     Tenant agrees, at any time from time to time, upon not less that ten (10) business days prior
written notice by Landlord, to execute, acknowledge and deliver to Landlord a statement in writing
(i) certifying that this Lease is unmodified and in full force and effect (or if there have been
modifications, that the Lease is in full force and effect as modified and stating the
modifications); (ii) stating the dates to which the rent and any other charges hereunder have been
paid by Tenant; (iii) stating whether or not, to the best knowledge of Tenant, Landlord is in
default in the performance of any covenant, agreement, or condition contained in this Lease and, if
so, specifying the nature of such default; (iv) stating that all Tenant work has been
satisfactorily completed or, if not, providing a list of items excepted; (v) any other
certification reasonably required by Landlord; and (vi) stating the address to which notices to
Tenant are to be sent. Any such statement delivered by Tenant may be relied upon by any owner of
the Building or the land upon which it is situated, any prospective purchaser of the Building or
such land, any mortgagee or prospective mortgagee of the Building or such land or of Landlord’s
interest therein, or any prospective assignee of any such mortgagee.

     SECTION 24.6 WAIVER OF JURY TRIAL

     Landlord and Tenant each hereby waive trial by jury in any action, proceeding, or counterclaim
brought by either of them against the other in connection with any matter arising out of or in any
way connected with this lease. The relationship of Landlord and Tenant hereunder, Tenant’s use or
occupancy of the Premises, and/or any claim of injury or damage.

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     SECTION 24.7 NOTICES

     Whenever any notice, demand or request is required or permitted hereunder, such notice, demand
or request shall be in writing and shall be hand-delivered in person, sent by established overnight
commercial courier (such as Federal Express) with delivery charges prepaid, or sent by United
States Mail, registered or certified, return receipt requested, postage pre-paid, to the addresses
set forth below:

	 	 	 
	TENANT:

	 	Global Secure
	 

	 	1033 North Fairfax Street
	 

	 	Alexandria, VA 22314
	 
	 	 
	LANDLORD:

	 	American Physical Therapy Properties, Inc.
	 

	 	1111 North Fairfax Street
	 

	 	Alexandria, Virginia 22314

     Any notice, demand, or request which shall be served upon either of the parties in the manner
aforesaid shall be deemed sufficiently given for all purposes hereunder (i) at the time such
notice, demand, or request is hand-delivered in person, (ii) one (1) business day after such notice
is thus delivered to such overnight commercial courier, (iii) upon confirmation of receipt after
delivery via facsimile or (iv) on the third day after the mailing of such notice, demand, or
request in accordance with the preceding portion of this Section 24.7.

     Either party may change its address for the giving of notices by notice given in accordance
with this Section 24.7.

     SECTION 24.8 HAZARDOUS WASTE

     Landlord represents that, except as permitted under applicable law, no hazardous wastes have
been treated, stored or disposed of by Landlord in the Building and that no petroleum or hazardous
substances have been disposed of by Landlord in the Building.

     SECTION 24.9 ENFORCEMENT OF LAW

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

     SECTION 24.10 PRONOUNS

     Feminine or neuter pronouns shall be substituted for those of masculine form, and the plural
shall be substituted for the singular number, in any place or places herein in which the context
may require such substitution.

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     SECTION 24.11 SUCCESSORS AND ASSIGNS

     The provisions of this Lease shall be binding upon, and shall inure to the benefit of, the
parties hereto and each of their respective representatives, successors, and assigns, subject to
the provisions hereof prohibiting assignment or subletting by Tenant.

     SECTION 24.12 ENTIRE AGREEMENT

     The Lease and the Exhibits hereto contain the entire agreement of the parties hereto, and no
representations, inducements, or agreements, oral or otherwise, not contained in this Lease shall
be of any force or effect. This Lease may not be modified or changed in whole or in part in any
manner other than by an instrument in writing duly signed by both parties hereto.

     SECTION 24.13 VIRGINIA LAW

     This Lease shall be governed by and construed in accordance with the laws of the Commonwealth
of Virginia.

     SECTION 24.14 SECTION HEADINGS

     Article and section headings are used herein for the convenience of reference and shall not be
considered when construing or interpreting this Lease.

     SECTION 24.15 ON OFFER

     The submission of an unsigned copy of this document to Tenant for Tenant’s consideration does
not constitute an offer to lease the Premises or an option to or for the Premises. This document
shall become effective and binding only upon the execution and delivery of this Lease by both
Landlord and Tenant.

     SECTION 24.16 MULTIPLE COUNTERPARTS

     This Lease may be executed in multiple counterparts, each of which shall be deemed an original
and all of which together shall constitute one and the same document.

     SECTION 24.17 TIME OF ESSENCE

     Time is of the essence in Tenant’s and Landlord’s carrying out of each and every term and
provision of this Lease.

     SECTION 24.18 CONFLICT

     In the event of any conflict between the Lease, the Rules and Regulations, Exhibit A
hereto, and the Exclusions to Real Estate Taxes and Operating Expenses, the provisions of this
Lease shall prevail.

     SECTION 24.19 EXECUTION BY TENANT

     If Tenant signs as a corporation, each of the persons executing this Lease on behalf of Tenant
does hereby covenant and warrant that Tenant is a duly authorized and existing corporation,
qualified to do business in the Commonwealth of Virginia, that the corporation has

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full right and authority to enter into this Lease, and that each and both of the persons
signing on behalf of the corporation were authorized to do so.

     SECTION 24.20 FORCE MAJEURE

     In the event that either party hereto shall be delayed or hindered in or prevented from the
performance of any act required hereunder by reason of a labor strike, lockout, inability to
procure materials, failure of power, riot insurrection, war, or other reason of a like nature not
the fault of the party delayed in performing work or doing acts required under the terms of this
Lease, then performance of such act shall be excused for a period equivalent to the period of such
delay. The provisions of this Section shall not operate to excuse Tenant from prompt payment of
fixed monthly rent, additional rent, or any other payment required by the terms of this Lease.

     SECTION 24.21 NO CONSTRUCTION OF LEASE AGAINST DRAFTER

     Should any provision of this Lease require judicial interpretation, it is agreed that the
court interpreting or considering same shall not apply the presumption that the terms hereof shall
be more strictly construed against a party by reason of the rule or conclusion that a document
should be construed more strictly against the party who itself or through its agent prepared the
same, it being agreed that all parties hereto have participated in the preparation of this Lease
and that legal counsel was consulted by each party hereto (or opportunity for such legal
consultation afforded to each party) before the execution of this Lease.

ARTICLE XXV

TERMINATION OPTION

     SECTION 25.1

     Provided Tenant is not in default, Tenant shall have the one time right to terminate this
Lease at the end of three (3) lease years (effective August 7, 2008) by giving Landlord six (6)
months prior written notice and by paying Landlord a termination fee equal to two months of its
then current rent and the unamortized costs of real estate broker fees. The fee would be payable
to Landlord when Tenant produces written notice to Landlord. A final release of Lease would be
prepared by Landlord and signed by Tenant before termination becomes effective.

     SECTION 25.2

     This option to terminate is personal to Tenant. If at the time of the “option to terminate” Tenant
has sublet any of the Premises or has assigned its interest in the Lease therein, this option to
terminate shall be null and void.

27

 

     Landlord and Tenant have executed this Lease on the day and year hereinabove written.

LANDLORD:

AMERICAN PHYSICAL THERAPY PROPERTIES, INC.

 

 

Charles L. Martin, Jr.

Senior Vice President

TENANT:

GLOBAL SECURE

 

 

Eric Shaffer

President

28

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