Document:

EXHIBIT
4.1

 

 

(LECG
LOGO)

 

SHARES

 

__________________________

NUMBER

 

INCORPORATED
UNDER THE LAWS OF

THE STATE  OF DELAWARE

 

COMMON
STOCK

 

__________________________

SHARES

 

 

SEE
REVERSE FOR

CERTAIN DEFINITIONS

 

CUSIP
523234 10 2

 

 

THIS CERTIFIES THAT _________________________________________________________________

 

IS THE RECORD HOLDER OF
____________________________________________________________

 

 

FULLY
PAID AND NON-ASSESSABLE SHARES OF THE COMMON STOCK,

$0.001 PAR VALUE PER SHARE, OF

 

LECG
CORPORATION

 

transferable only on the books of the
Corporation by the holder hereof in person or by duly authorized Attorney upon
surrender of this certificate properly endorsed. This certificate is not valid
until countersigned by the Transfer Agent and Registrar.

 

                Witness
the facsimile seal of the Corporation and the facsimile signatures of its duly
authorized officers.

 

[CERTIFICATE
OF STOCK]

 

 

Dated:________________

 

 

(SEAL)

 

 

 

	
  /s/ MARVIN A. TENENBAUM

  	
   

  	
  /s/ DAVID J. TEECE

  
	
  CORPORATE SECRETARY

  	
   

  	
  CHAIRMAN

  
	
   

  	
   

  	
   

  

 

 

LECG
CORPORATION

 

THE CORPORATION WILL FURNISH WITHOUT CHARGE
TO EACH STOCKHOLDER WHO SO REQUESTS THE POWERS, DESIGNATIONS, PREFERENCES AND
RELATIVE PARTICIPATING, OPTIONAL OR OTHER SPECIAL RIGHTS OF EACH CLASS OF STOCK
OR SERIES THEREOF AND THE QUALIFICATIONS, LIMITATIONS OR RESTRICTIONS OF SUCH
PREFERENCES AND/OR RIGHTS. SUCH REQUEST MUST BE MADE TO THE CORPORATION'S
SECRETARY AT THE PRINCIPAL EXECUTIVE OFFICE OF THE CORPORATION.

 

Keep this certificate in a safe place. If it
is lost, stolen or destroyed, the Corporation will require a bond of indemnity
as a condition to the issuance of a replacement certificate.

 

                The
following abbreviations, when used in the inscription on the face of this
certificate, shall be construed as though they were written out in full
according to applicable laws or regulations:

 

 

	
   

  	
   

  	
  UNIF GIFT MIN ACT:

  	
   

  	
  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  under Uniform Gifts to Minors Act

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (State)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TEN COM

  	
  - as tenants in common

  	
  UNIF TRANS MIN ACT:

  	
   

  	
  Custodian

  	
   

  
	
  TEN ENT

  	
  - as tenants by the
  entireties

  	
   

  	
  (Cust)

  	
   

  	
  (Minor)

  
	
  JT TEN

  	
  - as joint tenants with
  right of survivorship

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  and not as tenants in common

  	
  under Uniform Transfers to Minors Act

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (State)

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

                Additional
abbreviations may also be used though not in the above list.

 

FOR VALUE RECEIVED, ________________________
hereby sell, assign and transfer unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER

   
IDENTIFYING NUMBER OF ASSIGNEE

 

___________________________________________________________________________________________

 

___________________________________________________________________________________________

 

(PLEASE
PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

 

____________________________________________________________________________________Shares

represented by the within Certificate, and do
hereby irrevocably constitute and appoint ___________________

____________________________________________________Attorney
to transfer the said shares on the books of the within named corporation with
full power of substitution in the premises.

 

Dated ____________________________

 

 

	
   

  	
  X

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  X

  
	
   

  	
  NOTICE: THIS SIGNATURE TO
  THIS ASSIGNMENT MUST CORRESPOND WITH THE NAME AS WRITTEN UPON THE FACE OF THE
  CERTIFICATE IN EVERY PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT, OR ANY
  CHANGE WHATEVER.

  

 

 

In presence of

 

 

____________________________________

 

____________________________________

 

SIGNATURE (S) GUARANTEED

 

By:

 

 

________________________________________________________________________

THE SIGNATURE(S) SHOULD BE GUARANTEED BY AN
ELIGIBLE GUARANTOR

INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND
LOAN ASSOCIATIONS

AND CREDIT UNIONS WITH MEMBERSHIP IN AN
APPROVED SIGNATURE

GUARANTEE MEDALLION PROGRAM), PURSUANT TO
S.E.C. RULE 17Ad-15.QuickLinks
 -- Click here to rapidly navigate through this document

[CONFIDENTIAL TREATMENT REQUESTED. CONFIDENTIAL PORTIONS OF THIS AGREEMENT HAVE BEEN REDACTED AND HAVE BEEN SEPARATELY FILED WITH THE SECURITIES AND EXCHANGE COMMISSION.] 

 
 

EXHIBIT 10.5    
    

        PRIVILEGED AND CONFIDENTIAL  

 ASSET PURCHASE AGREEMENT  

 Dated as of September 29, 2000  

 Among  

 NAVIGANT CONSULTING, INC.  

 LECG, INC.  

 LECG HOLDING COMPANY, LLC  

 and  

 LECG, LLC  

 

	ARTICLE I

DEFINITIONS
	1.1	 	Definitions	 	1
	
ARTICLE II

PURCHASE AND SALE
	2.1	 	Purchased Assets	 	4
	2.2	 	Excluded Assets	 	6
	2.3	 	Assumed Liabilities	 	6
	2.4	 	Excluded Liabilities	 	6
	
ARTICLE III

PURCHASE PRICE
	3.1	 	Purchase Price	 	7
	3.2	 	Allocation of Purchase Price	 	7
	3.3	 	Deferred Purchase Price	 	7
	
ARTICLE IV

CLOSING
	4.1	 	Closing Date	 	8
	4.2	 	Payment on Closing Date	 	8
	4.3	 	Buyer Additional Deliveries	 	8
	4.4	 	Parent and Seller Deliveries	 	9
	
ARTICLE V

REPRESENTATIONS AND WARRANTIES OF PARENT AND SELLER
	5.1	 	Organization of Parent and Seller	 	10
	5.2	 	Authority	 	10
	5.3	 	Subsidiaries	 	10
	5.4	 	Financial Statements	 	11
	5.5	 	Absence of Certain Changes or Events	 	11
	5.6	 	Title to Purchased Assets	 	11
	5.7	 	No Finder	 	11
	5.8	 	No Proceedings	 	12
	5.9	 	Employee Benefit Plans; Employee Matters	 	12
	5.10	 	Intellectual Property	 	12
	5.11	 	Intellectual Property	 	12
	5.12	 	NO OTHER REPRESENTATIONS; LIMITATIONS	 	12
	
ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF BUYER PARENT AND BUYER
	6.1	 	Organization of Buyer and Buyer Parent	 	13
	6.2	 	Authority of Buyer Parent, Buyer and the Members	 	13
	6.3	 	No Finder	 	14
	6.4	 	No Proceedings	 	14
	6.5	 	Compliance with WARN Act	 	14
	6.6	 	Antitrust Compliance	 	14
	
ARTICLE VII

ADDITIONAL AGREEMENTS
	7.1	 	Additional Payments	 	14
	7.2	 	Taxes	 	15
	7.3	 	Employees and Consultants	 	15
	7.4	 	New Members	 	15
	 	 	 	 	 

i

 

	7.5	 	Change of Name	 	15
	7.6	 	Delivery of Funds	 	16
	7.7	 	Directors and Officers Insurance	 	16
	7.8	 	Assigned Claims; Cooperation	 	16
	7.9	 	Payment of Excluded Expert Fees	 	16
	
ARTICLE VIII

CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER PARENT AND BUYER
	8.1	 	No Misrepresentation or Breach of Covenants and Warranties	 	18
	8.2	 	No Restraint or Litigation	 	18
	8.3	 	Necessary Governmental Approvals	 	18
	8.4	 	Necessary Consents	 	18
	8.5	 	Delivery of Documents	 	18
	
ARTICLE IX

CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT AND SELLER
	9.1	 	No Misrepresentation or Breach of Covenants and Warranties	 	19
	9.2	 	No Restraint or Litigation	 	19
	9.3	 	Necessary Governmental Approvals	 	19
	9.4	 	Delivery of Documents	 	19
	
ARTICLE X

INDEMNIFICATION
	10.1	 	Indemnification by Parent and Seller	 	19
	10.2	 	Indemnification by Buyer Parent and Buyer	 	19
	10.3	 	Notice of Claims	 	20
	10.4	 	Third Person Claims	 	21
	
ARTICLE XI

GENERAL PROVISIONS
	11.1	 	Survival of Obligations	 	22
	11.2	 	Confidential Nature of Information	 	22
	11.3	 	No Public Announcement	 	23
	11.4	 	Notices	 	23
	11.5	 	Successors and Assigns	 	24
	11.6	 	Access to Records after Closing	 	24
	11.7	 	Entire Agreement; Amendments	 	24
	11.8	 	Interpretation	 	25
	11.9	 	Waivers	 	25
	11.10	 	Expenses	 	25
	11.11	 	Partial Invalidity	 	25
	11.12	 	Execution in Counterparts	 	25
	11.13	 	Governing Law	 	25
	11.14	 	Dispute Resolution	 	25

	

SCHEDULES:
	

1.1	
 	

Agreed Accounting Principles
	2.1(c)	 	Real Estate Leases
	2.1(d)	 	NCI Assets Being Purchased
	2.1(k)	 	Employees
	2.3	 	Excluded Employees
	 	 	 

ii

 

	3.1	 	Purchase Price Adjustments
	3.2	 	Allocation Schedule
	3.3	 	Certain Persons
	5.3	 	Subsidiaries
	5.4	 	Financial Statements
	5.9	 	Employee Benefit Plans
	5.11	 	Personal Property
	8.4	 	Consents
	10.1	 	Shareholder Litigation
	

EXHIBITS:
	

A	
 	

Instrument of Assignment
	B	 	Instrument of Assumption
	C	 	Opinion of Counsel to Buyer
	D	 	Transition Services Agreement
	E	 	Termination Agreement
	F	 	Subleases
	G	 	Opinion of Counsel to Parent

iii

  

 
 

ASSET PURCHASE AGREEMENT    
    

        ASSET PURCHASE AGREEMENT, dated as of September 29, 2000, among Navigant Consulting, Inc, a Delaware corporation ("Parent"),
LECG, Inc., a California corporation ("Seller"), LECG Holding Company, LLC, a California limited liability company ("Buyer Parent"), and LECG, LLC, a California limited liability company
("Buyer"). 

        WHEREAS, Parent owns all of the outstanding shares of capital stock of Seller and Seller is engaged in the business of providing economic
and financial analysis, expert testimony and litigation support (such business conducted by Seller being referred to as the "Business"); 

        WHEREAS, Buyer Parent owns all of the outstanding membership interests of Buyer; 

        WHEREAS, Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, on a going concern basis, substantially all of the
assets, properties and business of Seller, all on the terms and subject to the conditions set forth herein; and 

        WHEREAS, Buyer and Buyer Parent were organized by certain of the consultants who have performed services for Seller since 1988 for
purposes of conducting a management buyout of Seller's business on a going concern basis and continuing the performance of services on behalf of Seller's clients 

        NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, it is hereby agreed among the parties as
follows: 

 
 

ARTICLE I
  
    DEFINITIONS    
    

        1.1.    Definitions.    In this Agreement, the following terms have the meanings
specified or
referred to in this Section 1.1 and shall be equally applicable to both the singular and plural forms. Any agreement referred to below shall mean
such agreement as amended, supplemented and modified from time to time to the extent permitted by the applicable provisions thereof and by this Agreement. 

        "Affiliate" means, with respect to any Person, any other Person which directly or indirectly controls, is controlled by or is under common
control with such Person. 

        "Agreed Accounting Principles" means the accounting principles applied in the preparation of the Balance Sheet which are consistent with
generally accepted accounting principles, except as described in the Balance Sheet and related footnotes or as specified in Schedule 1.1. 

        "Agreement" means, unless the context otherwise requires, this Asset Purchase Agreement, together with the Schedules and the Exhibits
attached hereto. 

        "Allocation Schedule" has the meaning specified in Section 3.2. 

        "Assumed Liabilities" has the meaning specified in Section 2.3. 

        "Balance Sheet" means the consolidated statement of net assets of Seller as of April 30, 2000 included in  Schedule 5.4. 

        "Balance Sheet Date" means April 30, 2000. 

        "Business" has the meaning specified in the first recital to the Agreement. 

        "Buyer" has the meaning specified in the first paragraph of this Agreement. 

        "Buyer Ancillary Agreements" means all agreements, instruments and documents being or to be executed and delivered by Buyer Parent, Buyer
or a Member under this Agreement or in connection 

1

 

herewith,
including, without limitation, the Subordinated Convertible Seller Notes, executed and delivered by Buyer Parent to Parent. 

        "Buyer Group Member" means Buyer Parent, Buyer, the Members, each of Buyer's managers and officers and each of their respective Affiliates
and each of their respective successors and assigns. 

        "Buyer Parent" has the meaning specified in the first paragraph of this Agreement. 

        "Claim Notice" has the meaning specified in Section 10.3(a). 

        "Closing" means the closing of the transactions contemplated by this Agreement, the Buyer Ancillary Agreements and the Seller Ancillary
Agreements. 

        "Closing Date" has the meaning specified in Section 4.1. 

        "Code" means the Internal Revenue Code of 1986, as amended. 

        "Court Order" means any judgment, order, award or decree of any foreign, federal, state, local or other court or tribunal and any award in
any arbitration proceeding. 

        "Credit Agreement" means the Credit Agreement dated as of September 29, 2000 by and among LECG Holding Company, LLC, as parent,
LECG, LLC, as borrower, the Lenders who are or may become party thereto, as lenders, First Union National Bank, as administrative agent and U.S. Bank National Association, as documentation agent, and
shall include, without limitation, and any and all agreements refinancing, refunding or replacing the Credit Agreement. 

        "Departed Employee" has the meaning set forth in Section 3.3. 

        "Dispute" has the meaning specified in Section 11.14. 

        "Employee Benefit Plan" means all plans, contracts, schemes, programs, funds, commitments or arrangements providing money, services,
property or other benefits, whether written or oral, formal or informal, qualified or non-qualified, funded or unfunded (and including any that have been frozen or terminated), which pertain to any
employee, former employee, director, officer, shareholder, consultant or independent contractor of Seller or its Subsidiaries and that are listed on  Schedule 5.9. 

        "Encumbrance" means any lien, charge, security interest, mortgage, pledge, easement, conditional sale or other title retention agreement
or defect in title. 

        "Enforceability Limitations" shall mean (i) bankruptcy, insolvency, reorganization, moratorium or similar laws now or hereafter in
effect affecting or limiting the enforcement of creditors' rights generally and (ii) the discretion of the appropriate court with respect to specific performance, injunctive relief of other
terms of equitable remedies. 

        "ERISA" means the Employee Retirement Income Security Act of 1974, as amended. 

        "Excluded Assets" has the meaning specified in Section 2.2. 

        "Excluded Employee Claims" has the meaning specified in Section 2.2.(g). 

        "Excluded Expert Fees" has the meaning specified in Section 7.9. 

        "Excluded Liabilities" has the meaning specified in Section 2.4. 

        "Expenses" means any and all expenses incurred in connection with investigating, defending or asserting any claim, action, suit or
proceeding incident to any matter indemnified against hereunder (including, without limitation, court filing fees, court costs, arbitration fees or costs, witness fees, and reasonable fees and
disbursements of legal counsel, investigators, expert witnesses, consultants, accountants and other professionals). 

        "Financial Statements" has the meaning specified in Section 5.3. 

2

  

        "Governmental Body" means any foreign, federal, state, local or other governmental authority or regulatory body. 

        "HSR Act" shall mean the Hart-Scott Rodino Antitrust Improvements Act of 1976, as amended. 

        "Indemnified Party" has the meaning specified in Section 10.3. 

        "Indemnitor" has the meaning specified in Section 10.3. 

        "Instrument of Assignment" means the Instrument of Assignment in the form of  Exhibit A. 

        "Instrument of Assumption" means the Instrument of Assumption in the form of Exhibit B.

        "Intellectual Property" means (a) all trademarks, service marks, trade dress, logos, trade names, domain names and corporate names,
together with all translations, adaptations, derivations and combinations thereof, and all applications, registrations and renewals in connection therewith, (b) all copyrightable works, all
copyrights, and all applications, registrations and renewals in connection therewith, (c) all trade secrets and confidential business information (including, without limitation, all ideas, research,
techniques, models, databases, specifications, customer and supplier lists, pricing and cost information, and business and marketing plans and proposals), (d) all computer software (including data and
related documentation), (e) all other proprietary rights, (f) all copies and tangible embodiments of Intellectual Property (in whatever form or medium), and (g) any remedies against infringements
thereof and rights to protection of interest therein under the laws of all jurisdictions (including foreign jurisdictions). 

        "Knowledge" with respect to (i) Parent or Seller shall mean the actual knowledge of an executive officer of Parent after an investigation
which consists solely of (A) making inquiries of officers of Parent or Seller (other than officers who are or will be managers, executive officers or employees of Buyer) who have primary
responsibility for the subject matter of the applicable representation or warranty and (B) with respect to Section 5.3, causing the Parent to obtain good standing certificates from the relevant
governmental authorities and causing employees of Seller to conduct a review of the relevant corporate minute books of Parent, Seller and the Subsidiaries and (ii) Buyer Parent or Buyer shall mean the
actual knowledge of any executive officer of Buyer Parent or Buyer or the Members after an investigation which consists solely of making inquiries of officers of Buyer Parent, Buyer and the Members
who have primary responsibility for the subject matter of the applicable representation or warranty. 

        "Leases" has the meaning specified in Section 2.1. 

        "Losses" means any and all losses, costs, obligations, liabilities, settlement payments, awards, judgments, fines, penalties, damages,
expenses, deficiencies or other charges. 

        "Material" and "Materially" means, with respect to any Person or group of one or more
Persons, any event or circumstance that would have a material adverse effect on the business, operations, employee or client relations, properties, assets (including intangible assets), financial
condition or results of operations of such Person or group of one or more Persons taken as a whole. 

        "Members" means collectively all Persons holding membership interests (of any class) of Buyer or Buyer Parent. 

        "Parent" has the meaning specified in the first paragraph of this Agreement. 

        "Permitted Encumbrances" means (a) liens for taxes and other governmental charges and assessments which are not yet due and payable, (b)
liens of landlords and liens of carriers, warehousemen, mechanics and materialmen and other like liens which are not Material and which arise in the ordinary course of business for sums not yet due
and payable and (c) other liens or 

3

 

imperfections
on property which are not Material in amount or do not Materially detract from the value of or Materially impair the existing use of the property affected by such lien or imperfection. 

        "Person" means any individual, corporation, partnership, joint venture, limited liability company, association, joint-stock company,
trust, unincorporated organization or Governmental Body. 

        "Post-Closing Departed Employee" has the meaning set forth in Section 3.3. 

        "Purchase Price" has the meaning specified in Section 3.1. 

        "Purchased Assets" has the meaning specified in Section 2.1. 

        "Requirements of Laws" means any foreign, federal, state and local laws, statutes, regulations, rules, codes or ordinances enacted,
adopted, issued or promulgated by any Governmental Body (including, without limitation, those pertaining to electrical, building, zoning, environmental and occupational safety and health requirements)
or common law. 

        "Seller" has the meaning specified in the first paragraph of this Agreement. 

        "Seller Agreements" has the meaning specified in Section 2.1. 

        "Seller Ancillary Agreements" means all agreements, instruments and documents being or to be executed and delivered by Parent or Seller
under this Agreement or in connection herewith. 

        "Seller Group Member" means Parent and Seller, each of their directors and officers and each of their respective Affiliates and their
respective successors and assigns. 

        "Subleases" has the meaning specified in Section 4.3. 

        "Subsidiaries" means all of the direct or indirect subsidiaries of the Seller listed on Schedule
5.3. 

        "Subordination Agreement" means the Subordination Agreement dated as of September 29, 2000 by and among LECG Holding Company, LLC, LECG,
LLC, Navigant Consulting, Inc. and First Union National Bank, as Administrative Agent for the benefit of itself and the lenders under the Credit Agreement. 

        "Tax" means any federal, state, local or foreign net income, alternative or add-on minimum, gross income, gross receipts, property, sales,
use, transfer, gains, license, excise, employment, payroll, withholding or minimum tax, or any other tax custom, duty, governmental fee or other like assessment or charge of any kind whatsoever,
together with any interest or any penalty, addition to tax or additional amount imposed by any Governmental Body. 

        "Tax Return" means any return, report or similar statement required to be filed with respect to any Taxes (including, without limitation,
any attached schedules), including, without limitation, any information return, claim for refund, amended return and declaration of estimated Tax. 

        "Termination Agreements" has the meaning specified in Section 4.3(g). 

        'Third Party Claim" has the meaning specified in Section 10.4. 

        "Transferred Permits" has the meaning specified in Section 2.1(j). 

        "WARN Act" has the meaning specified in Section 6.5. 

 
 

ARTICLE II    
    
    PURCHASE AND SALE    
    

        2.1.    Purchased Assets.    Upon the terms and subject to the conditions of this
Agreement,
on the Closing Date, Parent and Seller shall sell, transfer, assign, convey and deliver to Buyer, and Buyer shall 

4

 

purchase
from Parent and Seller, on a going concern basis, free and clear of all Encumbrances (except for Permitted Encumbrances), the assets and properties of Seller wherever located, real, personal
or mixed, tangible or intangible, other than Excluded Assets, as the same shall exist on the Closing Date (herein collectively called the "Purchased Assets"), including, without limitation, all right,
title and interest of Parent and Seller in, to and under: 

        (a)   all
of the assets, other than Excluded Assets, reflected on the Balance Sheet, except those disposed of after the Balance Sheet Date in the ordinary course of business
consistent with past practice (including with respect to quantity and frequency); 

        (b)   all
notes, accounts receivable and unbilled client work in process of Seller on the Closing Date; 

        (c)   the
real estate leases (the "Leases") listed on Schedule 2.1(c) and all leasehold interests created thereby, all
leasehold improvements, fixtures and fittings owned or held by Seller under the Leases, and all easements, rights of way and other appurtenants under the Leases; 

        (d)   the
inventories, equipment, vehicles, furniture and other tangible personal property owned or used by Seller primarily in connection with the Business and the tangible
personal property of Parent listed on Schedule 2.1(d);

        (e)   all
Intellectual Property owned or used by Seller primarily in connection with the Business and the goodwill associated therewith; 

        (f)    the
contracts, agreements or understandings, written or oral, entered into by Seller, including all equipment leases, work orders, client engagement letters and other
agreements or arrangements relating primarily to the Business (the "Seller Agreements"); 

        (g)   all
of Seller's deposits under the Leases (including deposits from subtenants), all of Seller's rights of set-off, rights of recovery and claims or causes of action
against third parties relating to the assets, properties, business or operations of the Business arising out of transactions occurring prior to the Closing Date (except for refunds of Taxes to the
extent provided in Section 2.2(d)); 

        (h)   all
files, documents, correspondence, creative materials, advertising and promotional materials, studies, reports, books and records of Seller (including all data and
other information stored on discs, tapes or other media), customer lists, customer or credit data, computer programs, software, and hardware owned or used by Seller primarily in connection with the
Business; and 

        (i)    all
securities (such as the capital stock in the Subsidiaries), corporate minute books, stock transfer books and corporate seals of the Subsidiaries in the possession of
Parent; 

        (j)    to
the extent transferable to Buyer, all franchises, approvals, permits, licenses, orders, registrations, certificates, variances and similar rights obtained by Seller
from a Governmental Body (the "Transferred Permits"); 

        (k)   all
rights of Parent and Seller under all employment, consulting and noncompete agreements with, and all relationships of Seller with, the employees listed on  Schedule 2.1 (k), except to the extent
terminated pursuant to the Termination Agreements; 

        (l)    all
general intangibles used primarily in the Business including without limitation, all good will as a going concern and any all causes of action or claims of Seller
against any Person that arose or will arise primarily in connection with the Business prior to the Closing Date, other than Excluded Employee Claims and causes of action or claims against Parent,
Seller or any of their officers, directors, employees or agents or causes of action or claims as to which Parent, Seller or their Affiliates may be required to provide indemnification. 

5

  

        (m)  cash
in amount equal to $100,000. 

        2.2.    Excluded Assets.    Notwithstanding the provisions of Section
2.1, the Purchased Assets shall not include the following (herein referred to as the "Excluded Assets"): 

        (a)   all
cash and cash equivalents of Seller, other than $100,000; 

        (b)   all
contracts of insurance; 

        (c)   all
corporate minute books and stock transfer books and the corporate seal of Seller; and 

        (d)   all
refunds of any Tax for which Seller is liable pursuant to Section 7.2; and 

        (e)   any
contracts, agreements or understandings between Seller and Parent or Parent's affiliates (other than the Subsidiaries), if any; 

        (f)    all
securities, shares of capital stock, corporate minute books, stock transfer books and corporate seals of any subsidiary of Parent or Seller not listed on  Schedule 5.3; and 

        (g)   any
claim, demand, rights of recovery, cause of action or other rights against or with respect to any Departed Employee or Post-Closing Departed Employee ("Excluded
Employee Claims"). 

        2.3.    Assumed Liabilities.    On the Closing Date, Buyer shall deliver to Seller
the
Instrument of Assumption pursuant to which Buyer shall assume and agree to discharge, in accordance with their respective terms and subject to the respective conditions thereof, the following
obligations and liabilities: 

        (a)   all
liabilities reflected on the Balance Sheet, including, without limitation, all accrued expenses and accounts payable (including expert fees, other than the Excluded
Expert Fees); 

        (b)   all
liabilities and obligations of Seller to be paid or performed after the Closing Date under (i) the Seller Agreements, (ii) the Leases and (iii) all employment
agreements between Seller and its employees or between Parent and employees of Parent who become employees of Buyer after the Closing, other than the employees listed on  Schedule 2.3, except to the
extent terminated pursuant to the Termination Agreements; 

        (c)   any
liabilities in respect of Taxes for which Buyer is liable pursuant to Section 7.2; and 

        (d)   all
liabilities and obligations of Seller arising out of any actions or omissions of employees, consultants, independent contractors and experts arising out of or
relating to the performance of services for clients of Seller prior to the Closing Date; 

All
of the foregoing liabilities and obligations to be assumed by Buyer hereunder (excluding any Excluded Liabilities) are referred to herein as the "Assumed Liabilities." 

        2.4.    Excluded Liabilities.    Notwithstanding anything to the contrary in 
Section 2.3, Buyer will not assume or be liable for, and Seller will retain and remain responsible for all of Seller's liabilities and obligations of
any nature whatsoever, other than the Assumed Liabilities, whether accrued, absolute or contingent, whether known or unknown, whether due or to become due and whether related to the Purchased Assets
or otherwise, and regardless of when asserted (the "Excluded Liabilities"). Without limiting the preceding sentence, none of the following shall be Assumed Liabilities for purposes of this Agreement: 

        (a)   any
liabilities in respect of Taxes for which Seller is liable pursuant to Section 7.2;

        (b)   any
costs and expenses incurred by Seller incident to its negotiation and preparation of this Agreement and its performance and compliance with the agreements and
conditions contained herein; 

6

 

        (c)   the
litigation described in Schedule 10.1; or 

        (d)   the
obligation to pay the Excluded Expert Fees. 

 
 

ARTICLE III
  
    PURCHASE PRICE    
    

        3.1.    Purchase Price.    The purchase price for the Purchased Assets (the "Purchase
Price")
shall be equal to up to $55,000,000, consisting of (a) a cash payment (the "Cash Payment") equal to $37,000,000, plus (i) the aggregate amount of
vacation accrual paid by Parent or Seller to employees of LECG, as set forth on Schedule 3.1, (ii) the expenditures incurred by Parent or Seller set
forth on Schedule 3.1, and less (x) the accrual of expert fees for the "5% Program" as set forth on  Schedule 3.1 and (y) $500,000 for client fees on account and all other deposits and deferred revenue not being transferred to Buyer, (b) deferred
payments of up to $10,000,000 (plus interest as set forth in Section 3.3) on the terms and subject to the provisions of Section
3.3 and (c) the Subordinated Convertible Seller Notes of Buyer Parent in the aggregate principal amount of $8,000,000. 

        3.2.    Allocation of Purchase Price.    Attached hereto as Schedule
3.2 is a preliminary Schedule allocating the Purchase Price among the Purchased Assets. On or before the Closing, Buyer and
Seller shall agree upon and execute a final allocation schedule (the "Allocation Schedule"), which shall be reasonable and shall be prepared on a basis consistent with  Schedule 3.2 and in
accordance with Section 1060 of the Code and the regulations thereunder. Promptly following the Closing, Buyer and Seller
each agrees to file Internal Revenue Service Form 8594, and all federal, state, local and foreign Tax Returns, in accordance with the Allocation Schedule. Buyer and Seller each agrees to provide the
other promptly with any other information required to complete Form 8594. 

        3.3.    Deferred Purchase Price Payments.    (a) Subject to the terms and conditions
of the
Subordination Agreement and Section 11.15 of the Credit Agreement, on the first anniversary of the Closing Date Buyer shall (and Buyer Parent shall cause Buyer to) pay to Seller an amount (the
"Payment Amount") in cash equal to the excess, if any, of $5,000,000 over the sum of (i) any Excluded Expert Fees which are due but not paid by Seller pursuant to Section 7.9  and (ii) if on or prior to
the first anniversary of the Closing Date any person listed on Schedule 3.3(a) resigns or terminates
their employment, consulting, contracting and other relationships with Buyer, Parent, Buyer and their Affiliates (excluding, without limitation, any retirement at normal retirement age or any
termination by Buyer Parent, Buyer or their Affiliates) (any such person being referred to as a "Post-Closing Departed Employee"), an amount (not to exceed $5,000,000) equal to the aggregate amount
set forth opposite the names of all such Post-Closing Departed Employees under the column "Discount Amount" on Schedule 3.3(a). In addition, on
such anniversary Buyer shall (and Buyer Parent shall cause Buyer to) pay to Seller an additional amount equal to interest on the Payment Amount at an annual rate equal to seven percent (7%) from the
six month anniversary of the Closing Date until the date of payment. 

        (b)   Subject
to the terms and conditions of the Subordination Agreement and Section 11.15 of the Credit Agreement, if, from time to time, on or prior to the third
anniversary of the Closing Date, any person listed on Schedule 3.3(b) (any such person being referred to as a Departed Employee") becomes an
employee of Buyer Parent, Buyer or any of their Affiliates, or is otherwise retained by or affiliated with Buyer Parent or Buyer or any of their Affiliates, as an employee, officer, independent
contractor or agent (except to complete assignments in place as of the Closing Date or to refer such assignments in the event of a conflict), then within ten days thereafter Buyer shall (and Buyer
Parent shall cause Buyer to) pay to Seller an amount equal to the amount (not to exceed $5,000,000) set forth opposite the name of such Departed Employee under the column "Discount Amounts" on  Schedule 3.3(b)
. 

7

 

        (c)   If
Buyer shall fail to pay when due any payment pursuant to this Section 3.3, interest shall accrue on the unpaid
amount of all such payments on a quarterly basis on the first day of each calendar quarter, at a per annum rate equal to the Applicable Rate. As used herein, (i) "Applicable Rate" means
(A) from and after the date such payment was due until the first anniversary of the date such payment was due, a per annum rate equal to the Base Rate plus three percent (3%), (B) from
and after such first anniversary until the second anniversary of the date such payment was due, a per annum rate equal to the Base Rate plus four percent (4%) and (C) from and after such second
anniversary until such payment is made, a per annum rate equal to the Base Rate plus five percent (5%) and (ii) "Base Rate" means the prime rate announced from time to time in  The Wall Street Journal, Midwest
Edition.

 
 

ARTICLE IV    
    
    CLOSING    
    

        4.1.    Closing Date.    The Closing shall be consummated at 10:00 A.M., local time,
on the
date of this Agreement at the offices of Sidley & Austin, Chicago, Illinois, or at such other place or at such other time as shall be agreed upon by Buyer and Seller. The time and date on which the
Closing is actually held are sometimes referred to herein as the "Closing Date." 

        4.2.    Payment on the Closing Date.    Subject to fulfillment or waiver of the
conditions set
forth in Article VIII, at Closing Buyer shall pay to Seller an amount equal to the Cash Payment, by wire transfer of
immediately available funds to the account in the United States specified by Seller in writing to Buyer at least two business days prior to the Closing. 

        4.3.    Buyer Additional Deliveries.    Subject to fulfillment or waiver of the
conditions set
forth in Article VIII, at Closing Buyer Parent and Buyer shall deliver, or cause to be delivered, to Parent and Seller all the following: 

        (a)   Copies
of Buyer's and Buyer Parent's Articles of Organization certified as of a recent date by the Secretary of State of the State of California; 

        (b)   Certificate
of Status of Buyer and Buyer Parent issued as of a recent date by the Secretary of State of the State of California; 

        (c)   Certificate
of an executive officer of Buyer Parent, dated the Closing Date, in form and substance reasonably satisfactory to Seller, (i) certifying there have
been no amendments to the Articles of Organization of Buyer or Buyer Parent since formation; (ii) attaching a true and correct copy of the Operating Agreement of Buyer and Buyer Parent;
(iii) attaching a true and correct copy of the action of the manager of Buyer and Buyer Parent authorizing the execution and performance of this Agreement and the transactions contemplated
hereby; and (iv) certifying as to the incumbency and signatures of the executive officers of Buyer Parent and Buyer executing this Agreement and any Buyer Ancillary Agreement; 

        (d)   An
opinion of counsel to Buyer in the form of Exhibit C; 

        (e)   The
Instrument of Assumption duly executed by Buyer; 

        (f)    The
Transition Services Agreement in the form of Exhibit D duly executed by Buyer (the "Transition Services
Agreement"); 

        (g)   A
duly executed Termination Agreement between Parent, Seller and each Member in the form of Exhibit E, duly
executed by each Member who is or was an employee, consultant or expert of Seller or Parent (the "Termination Agreements"); and 

8

 

        (h)   A
duly executed sublease agreement for Parent or one of its Affiliates to sublease from Buyer a portion of the space of each of the Leases for Toronto, Canada, Los
Angeles, California, Seattle, Washington, and Salt Lake City, Utah in the form of Exhibit F (the "Subleases"). 

        4.4.    Parent and Seller Deliveries.    Subject to fulfillment or waiver of the
conditions
set forth in Article IX, at Closing Parent and Seller shall deliver to Buyer Parent and Buyer all the following: 

        (a)   Copies
of the Articles of Incorporation of Parent and Seller, each certified as of a recent date by the Secretary of State of the state of its incorporation; 

        (b)   A
Certificate of good standing of Parent and Seller, issued as of a recent date by the Secretary of State of the State of its incorporation; 

        (c)   Certificate
of the secretary or an assistant secretary of Parent, dated the Closing Date, in form and substance reasonably satisfactory to Buyer, (i) certifying
there have been no amendments to the articles of incorporation of Parent and Seller since a specified date, (ii) attaching true and correct copies of the by-laws of Parent and Seller;
(iii) attaching true and correct copies of the resolutions of the Board of Directors of Parent and Seller authorizing the execution and performance of this Agreement and the transactions
contemplated hereby; and (iv) incumbency and signatures of the officers of Parent and Seller executing this Agreement and any Seller Ancillary Agreement; 

        (d)   An
opinion of Counsel to Parent in the form of Exhibit H; 

        (e) The
Instrument of Assignment duly executed by Seller; 

        (f) Certificates
of title or origin (or like documents) with respect to any property included in the Purchased Assets for which a certificate of title or origin is required in
order to transfer title; 

        (g)   The
Transition Services Agreement duly executed by Parent; 

        (h)   All
certificates representing the securities of the Subsidiaries (or acceptable substitutes) with appropriate stock power(s) attached and endorsed in blank; 

        (i)    Such
other bills of sale, assignments and other instruments of transfer or conveyance as Buyer may reasonably request or as may be otherwise necessary to evidence and
effect the sale, assignment, transfer, conveyance and delivery of the Purchased Assets to Buyer, including, without limitation, any release of any liens or conveyances from lenders to Parent and
Seller relating to the Purchased Assets; and 

        (j)    The
Subleases, duly executed by Parent or its applicable Affiliate. 

9

  

 
 

ARTICLE V
  
    REPRESENTATIONS AND WARRANTIES OF PARENT AND SELLER    
    

        As an inducement to Buyer Parent and Buyer to enter into this Agreement and to consummate the transactions contemplated hereby, Parent and Seller jointly and
severally represent and warrant to Buyer Parent and Buyer and agree as follows: 

        5.1.    Organization of Parent and Seller.    Each of Parent and Seller is a
corporation duly
organized, validly existing and in good standing under the laws of the state of its incorporation. Seller has full power and authority to own or lease and to operate and use the Purchased Assets owned
by it and to carry on the Business as now conducted by it. 

        True
and complete copies of the certificate or articles of incorporation and all amendments thereto and of the By-laws, as amended to date, of Parent and Seller have been delivered to
Buyer. Parent owns, beneficially or of record, all shares of capital stock of Seller. 

        5.2.    Authority.    Each of Parent and Seller has full power and authority to
execute,
deliver and perform this Agreement and all of the Seller Ancillary Agreements to be executed and delivered by it. The execution, delivery and performance of this Agreement and each Seller Ancillary
Agreement to which each of Parent and Seller is a party have been duly authorized and approved by each of Parent and Seller, as applicable, and do not require any further authorization or consent of
Seller or of Parent or its stockholders. This Agreement has been duly authorized, executed and delivered by each of Parent and Seller and is the legal, valid and binding obligation of each,
enforceable in accordance with its terms, except as such enforcement may be limited by the Enforceability Limitations, and each of the Seller Ancillary Agreements has been duly authorized by each of
Parent or Seller to the extent it is a party thereto, and upon execution and delivery by it will be a legal, valid and binding obligation of it enforceable in accordance with its terms, except as such
enforcement may be limited by the Enforceability Limitations. 

        Neither
the execution and delivery of this Agreement or any of the Seller Ancillary Agreements or the consummation of any of the transactions contemplated hereby or thereby nor
compliance with or fulfillment of the terms, conditions and provisions hereof or thereof will: 

          (i)  conflict
in any Material way with, result in a Material breach of the terms, conditions or provisions of, or constitute a Material default, a Material event of default
or an event creating rights of acceleration, termination or cancellation or a Material loss of rights under, or result in the creation or imposition of any Encumbrance upon any of the Purchased
Assets, under (1) the articles of incorporation or By-laws of Parent or Seller, (2) any material note, instrument, agreement, mortgage, lease, license, franchise, permit or other authorization, right,
restriction or obligation to which Parent or Seller is a party or any of the Purchased Assets is subject or by which Parent or Seller is bound, (3) any Court Order to which Parent or Seller is a party
or by which Parent or Seller is bound, or (4) any Requirements of Laws affecting Parent or Seller or the Purchased Assets; or 

         (ii)  require
the approval, consent, authorization or act of, or the making by Parent or Seller of any declaration, filing or registration with, any Person. 

        5.3.    Subsidiaries.    Schedule 5.3 sets
forth all of the Subsidiaries and their respective capitalization and jurisdictions of organization. Except as set forth in Schedule 5.3, Seller owns,
legally and beneficially, all of the shares of capital stock free and clear of any Encumbrance (other than any Permitted Encumbrance). Since August 19, 1998 and to the Knowledge of Parent, the
Subsidiaries are validly existing and in good standing under Requirements of Laws of their respective jurisdictions of organization. To the Knowledge of Parent and Seller, each Subsidiary has the
corporate power and authority to conduct the business in which it is engaged and to own and use the properties owned and 

10

 

used
by it. Other than this Agreement, to the Knowledge of Parent and Seller, (i) there are no outstanding or authorized options, warrants, purchase rights, subscription rights, conversion rights,
exchange rights or other contracts or commitments that require Seller to sell, transfer or otherwise dispose of any capital stock of the Subsidiaries or that require a Subsidiary to sell, transfer,
issue or otherwise cause to become outstanding any of its own capital stock and (ii) there are no voting trusts, proxies or other agreements or understandings with respect to the voting of any capital
stock of any Subsidiary. 

        5.4.    Financial Statements.    Schedule 5.4
contains (i) the consolidated statement of net assets of Seller as of April 30, 2000 and the consolidated statement of operations of Seller for the four-month period then ended
and (ii) the audited consolidated statement of net assets of Seller as of December 31, 1999 and the audited consolidated statements of operations and cash flows of Seller for year ended December 31,
1999 (collectively, the "Financial Statements"). Except as set forth therein or in the notes thereto, the Financial Statements have been prepared in conformity with the Agreed Accounting Principles
consistently applied and such Financial Statements present fairly the financial position and results of operations of Seller as of their respective dates and for the respective periods covered
thereby. Seller is not subject to any Material liability, debt or obligation which would be required to be shown on the Financial Statements and which is not so shown or reserved for in the Financial
Statements, other than liabilities, debts or obligations of the same nature as those set forth in the Financial Statements and the notes thereto or reasonably incurred in the ordinary course of
business after the Balance Sheet Date. Parent and Seller have no Knowledge of any reason why the notes and accounts receivable reflected on
the Financial Statements should not be collectible in the ordinary course of business, subject to the allowance for doubtful accounts on the Financial Statements. 

        5.5.    Absence of Certain Changes or Events.    Since the Balance Sheet Date, Seller
and its
Subsidiaries have conducted the Business in the ordinary course and in a manner consistent with past practice and, since the Balance Sheet Date there has not been (a) any Material damage,
destruction or loss (whether or not covered by insurance) with respect to Seller or any of the Subsidiaries; (b) any change in Seller's accounting methods, principles or practices;
(c) any increase in dividends or employee compensation or benefits payable by Seller, except for increases in compensation or benefits consistent with past practice; or (d) to the
Knowledge of Seller, any agreement and/or understanding entered into which alters or amends any licensing or contractual arrangement with respect to Intellectual Property, other than in the ordinary
course of business. 

        5.6.    Title to Purchased Assets.    Seller has good and marketable title to, or a
valid
leasehold interest in, each of the Purchased Assets, free and clear of all Encumbrances (except for Permitted Encumbrances) and, upon the execution and delivery by Seller to Buyer of the Instrument of
Assignment pursuant to the terms of this Agreement, Seller will convey to Buyer good and marketable title to and, as applicable, a valid leasehold interest in, the Purchased Assets, free and clear of
all Encumbrances (except for Permitted Encumbrances). 

        5.7.    No Finder.    Except for Lehman Brothers, Inc. in the case of Seller and
Parent, and whose fees and commissions shall be paid by Parent, neither Parent, Seller nor any Person acting on its or their behalf has paid or become obligated to pay any fee or commission to any
broker, finder or intermediary for or on account of the transactions contemplated by this Agreement. 

11

  

        5.8.    No Proceedings.    There is no action, suit, proceeding or Court Order
pending, or to
the Knowledge of Parent threatened by any Person or Governmental Body, against Parent or Seller which questions the legality, or propriety of the transactions contemplated by this Agreement. There are
no suits, legal or administrative proceedings or investigations pending or to the Knowledge or Parent or Seller threatened against Seller or the Purchased Assets, at law or in equity or before any
court, municipality or other Governmental Body. Since August 19, 1998 Seller has not been subject to any Material Court Order, stipulation or consent decree of or with any Court of Governmental
Body. 

        5.9.    Employee Benefit Plans; Employee Matters.    Since August 19, 1998, each
of
Seller's Employee Benefit Plans has at all times complied in all Material respects with all applicable laws relating to labor and employee benefits, including without limitation, all applicable
provisions of ERISA and the Code, any laws relating to wages, termination pay, vacation pay, fringe benefits, collective bargaining and the payment and/or accrual of the same and all taxes, insurance
and other costs and expenses applicable thereto. Seller and its Subsidiaries have disclosed to Buyer all their written employee handbooks, policies and programs. To the Knowledge of Parent and Seller,
no key employee or independent contractor has informed Parent of any plans to terminate their employment with Seller or its Subsidiaries, including as a result of the transactions contemplated by this
Agreement. Neither Seller nor its Subsidiaries is a party to or bound by any collective bargaining agreement and neither Seller nor its Subsidiaries has experienced any Material strikes, grievances,
other collective bargaining disputes or claims of unfair labor practices. Neither Seller nor its Subsidiaries has any Knowledge of any organizational effort presently being made or threatened by or on
behalf of any labor union with respect to employees of Seller and its Subsidiaries. To the Knowledge of Parent and Seller, all persons employed by Seller and its Subsidiaries are employees at will or
otherwise are employed such that Seller and its Subsidiaries may terminate their employment at any time, with or without cause, without giving rise to any Material liability of Seller and its
Subsidiaries for breach of contract. 

        5.10.    Intellectual Property.    The Purchased Assets include all Intellectual
Property
owned or used by Seller primarily in connection with the Business. Since August 19, 1998, and to the Knowledge of Parent and Seller, (a) there have been no claims or demands in writing
that any of the Intellectual Property of Seller included in the Purchased Assets infringes or conflicts in any Material way with the Intellectual Property of any third Person and (b) Seller has made
all Material registrations and filings under applicable Requirements of Laws with respect to Intellectual Property included in the Purchased Assets. 

        5.11.    Properties.    Attached hereto as  Schedule 2.1
(c) is a list of the Leases. Also attached hereto as Schedule 5.11 is an
inventory of each item of personal property utilized by the Seller primarily in connection of the Business having a book or fair market value in excess of $150,000 as of the date hereof. The Seller
and the Parent have delivered to Buyer copies of all the Leases. To the Knowledge of Parent, the operation of the Purchased Assets and Business in the manner in which they are now
and have been operated does not violate any Requirements of Laws except for any such violations which would not, individually or in the aggregate, have a Material adverse effect. 

        5.12.    NO OTHER REPRESENTATIONS; LIMITATIONS.    (a) NOTWITHSTANDING ANYTHING
TO THE
CONTRARY SET FORTH IN THIS AGREEMENT OR ANY OTHER AGREEMENT, INSTRUMENT OR DOCUMENT EXECUTED PURSUANT TO THIS AGREEMENT, THE PURCHASED ASSETS AND THE BUSINESS ARE BEING SOLD "AS IS" AND, EXCEPT AS
EXPLICITLY SET FORTH ELSEWHERE IN THIS ARTICLE V, PARENT AND SELLER MAKE NO, AND HEREBY DISCLAIM AND EXCLUDE ANY, EXPRESS, ORAL OR IMPLIED REPRESENTATION OR WARRANTY (INCLUDING ANY REPRESENTATION OR
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE) WHATSOEVER. 

12

 

        (b)   Notwithstanding
anything to the contrary contained herein, (i) any matter which is actually known by any Member or by any executive officer of Buyer or Buyer
Parent prior to the Closing shall not constitute a breach of any representation or warranty of Parent or Seller herein and (ii) any matter, event or omission which existed prior to or as of
August 19, 1998 relating to the Business, the Purchased Assets or otherwise shall not constitute a breach of any representation or warranty of Parent or Seller herein, so long as Parent or
Seller does not have Knowledge of such matter, event or omission prior to the date hereof. 

 
 

ARTICLE VI    
    
    REPRESENTATIONS AND WARRANTIES OF BUYER PARENT AND BUYER    
    

        As an inducement to Parent and Seller to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer Parent and Buyer hereby jointly
and severally represent and warrant to Parent and Seller and agree as follows: 

        6.1.    Organization of Buyer and Buyer Parent.    Each of Buyer and Buyer Parent is
a limited
liability company duly organized, validly existing and in good standing under the laws of the State of California and has full power and authority to own or lease and to operate and use its properties
and assets and to carry on its business as now conducted. True and complete copies of the Articles of Organization and Operating Agreement of Buyer and Buyer Parent have been delivered to Parent.
Buyer Parent owns in the aggregate, beneficially or of record, all membership interests of Buyer outstanding on the Closing Date. 

        6.2.    Authority of Buyer Parent, Buyer and the Members.    (a) Each of Buyer
Parent
and Buyer has full power and authority to execute, deliver and perform this Agreement and all of the Buyer Ancillary Agreements executed and delivered by it. Each Member has full power, capacity and
authority to execute, deliver and perform all of the Buyer Ancillary Agreements executed and delivered by such Member. The execution, delivery and performance of this Agreement and each Buyer
Ancillary Agreement have been duly authorized and approved by the Board of Managers of Buyer and Buyer Parent and do not require any further authorization or consent of Buyer, Buyer Parent or their
respective members. This Agreement has been duly authorized, executed and delivered by each of Buyer Parent and Buyer and is the legal, valid and binding agreement of each, enforceable in accordance
with its terms, except as such enforcement may be limited by the Enforceability Limitations, and each of the Buyer Ancillary Agreements has been duly authorized by Buyer Parent, Buyer and each Member
to the extent it is a party thereto and upon execution and delivery by it will be a legal, valid and binding obligation of it enforceable in accordance with its terms, except as such enforcement may
be limited by the Enforceability Limitations. 

        (b)   Neither
the execution and delivery of this Agreement or any of the Buyer Ancillary Agreements or the consummation of any of the transactions contemplated hereby or
thereby nor compliance with or fulfillment of the terms, conditions and provisions hereof or thereof will: 

          (i)  conflict
in any Material way with, result in a Material breach of the terms, conditions or provisions of, or constitute a material default, a Material event of default
or an event creating rights of acceleration, termination or cancellation or a Material loss of rights under (1) the Articles of Organization or Operating Agreement of Buyer Parent or Buyer, (2)
any material note, instrument, agreement, mortgage, lease, license, franchise, permit or other authorization, right, restriction or obligation to which Buyer Parent, Buyer or any Member is a party or
any of its on their properties is subject or by which Buyer or any Member is bound, (3) any Court Order to which Buyer Parent, Buyer or any Member is a party or by which it is bound or
(4) any Requirements of Laws affecting Buyer Parent, Buyer or any Member; or 

13

  

         (ii)  require
the approval, consent, authorization or act of, or the making by Buyer Parent, Buyer or any Member of any declaration, filing or registration with, any Person. 

        6.3.    No Finder.    Neither Buyer Parent, Buyer, any Member nor any Person acting
on its
behalf has paid or become obligated to pay any fee or commission to any broker, finder or intermediary for or on account of the transactions contemplated by this Agreement. 

        6.4.    No Proceedings.    There is no action, suit or proceeding pending, or to the
Knowledge
of Buyer threatened, against Buyer Parent, Buyer or any Member which questions the legality, or propriety of the transactions contemplated by this Agreement. 

        6.5.    Compliance with WARN Act.    Buyer Parent and Buyer assume all
responsibilities for
any notices or liability which may be required by or arise under the Worker Adjustment and Retraining Notification Act, 29 U.S.C. §2101 et
seq (the "WARN Act") as a result of the transactions contemplated by this Agreement; provided that Seller shall not take any
action prior to the Closing Date to cause any employees to be included in an " employment loss" for purposes of the WARN Act, without the prior written consent of Buyer. 

        6.6.    Antitrust Compliance.    As of the Closing, (i) no Person or entity owns 50%
or more
of the aggregate membership interests or other equity interests of Buyer Parent or has the right to 50% or more of Buyer Parent's profits or assets upon dissolution, (ii) neither Buyer nor Buyer
Parent has a regularly prepared balance sheet or annual statement of income or (iii) the value of all assets held by Buyer and Buyer Parent (less all cash that will be used as consideration for the
Purchased Assets, and less all cash that will be used for expenses incidental to the acquisition of the Purchased Assets), is less than $10,000,000. There is no required filing under the HSR Act, and
no applicable waiting period under the HSR Act, as a result of the transactions contemplated by this Agreement. 

 
 

ARTICLE VII    
    
    ADDITIONAL AGREEMENTS    
    

        7.1.    Additional Payments.    (a) In the event that within one year after the
Closing Date
Buyer Parent, Buyer or their respective successors or assigns or holders of membership interests or other interests in Buyer Parent, Buyer or their respective successors or assigns consummate or enter
into a written agreement, letter of intent or written understanding with respect to any transaction involving a public offering of its equity securities, the sale of all or a substantial portion of
its assets, the sale of membership interests or other equity interests (except as expressly permitted by this Section 7.1), or a merger, consolidation,
recapitalization, reorganization, joint venture, partnership or other transaction involving the sale or other disposition of the Business (as operated by Buyer or its successors or assigns after the
Closing Date), (a "Transaction") then, upon the closing of any such Transaction or Transactions, Buyer shall pay to Seller, simultaneously with such closing, an amount in cash equal to the excess, if
any, of the Buyer Value (as defined below) over the Purchase Price; provided, however, that the foregoing shall not restrict in any way Buyer Parent or
Buyer from engaging in any discussions prior to the first anniversary of the Closing Date, and the existence of such discussions shall not entitle Seller to any payments under this  Section 7.1, so
long as no such agreement, letter of intent or understanding is entered into or reached. As used herein "Buyer Value" shall mean
an amount equal to the aggregate valuation of Buyer or its successors or assigns reflected in the Transaction or Transactions, including the amount of cash, the assumption of indebtedness and the fair
value of all non-cash consideration received in the Transaction or Transactions (including, without limitation, all amounts paid or distributed to holders of membership interests, capital stock or
other equity interests in the Company) less the aggregate purchase price of any acquisitions made by Buyer after the Closing. Notwithstanding the foregoing, a "Transaction" shall not include a sale by
Buyer Parent of membership interests as part of (i) a capital raising transaction in which no member of Buyer Parent sells any membership interests, (ii) a business acquisition by Buyer Parent or
Buyer of an unaffiliated third 

14

 

Person,
(iii) transfers of membership interests by individual members of Buyer Parent to unaffiliated third Persons constituting in the aggregate less than 10% of Buyer Parent's total membership
interest in the aggregate or (iv) repurchases or redemptions of membership interests pursuant to that certain Securityholders' Agreement of Buyer Parent dated as of the date hereof, that certain
Buy/Sell Agreement of Buyer Parent dated as of the date hereof, or that certain Limited Liability Company Agreement of Buyer Parent dated as of the date hereof. Any payment made pursuant to this  Section 7.1 shall be treated by Parent, Seller, Buyer Parent and Buyer as an increase to the Purchase Price. 

        7.2.    Taxes.    (a) Seller and Parent shall be jointly and severally liable for and
shall
pay all Taxes (whether assessed or unassessed) applicable to the Business, the Purchased Assets and each Subsidiary whose stock is being purchased by Buyer pursuant to this Agreement, in each case
attributable to periods (or
potions thereof) ending on or prior to the Closing Date, including (i) all income Taxes of Seller or Parent arising in connection with the consummation of the transactions contemplated by this
Agreement and (ii) any liability of Seller for the unpaid Taxes of any Person under Treasury Regulation Section 1.1502-6 (or any similar provision of state, local or foreign law) as a transferee or
successor (by contract or otherwise). Buyer Parent and Buyer shall be jointly and severally liable for and shall pay all Taxes (whether assessed or unassessed) applicable to the Business, the
Purchased Assets and each Subsidiary whose stock is being purchased by Buyer pursuant to this Agreement, in each case attributable to periods (or portions thereof) beginning after the Closing Date.
For purposes of this paragraph (a), any period beginning before and ending after the Closing Date shall be treated as two partial periods, one ending on the Closing Date and the other beginning after
the Closing Date except that Taxes (such as property Taxes) imposed on a periodic basis shall be allocated on a daily basis. 

        (b)   Notwithstanding
Section 7.2(a), any sales Tax, use Tax, real property transfer or gains Tax, documentary stamp Tax
or similar Tax attributable to the sale or transfer of the Purchased Assets shall be paid by Buyer. Seller agrees to timely sign and deliver such certificates or forms as may be necessary or
appropriate to establish an exemption from (or otherwise reduce), or make a report with respect to, such Taxes. 

        (c)   Seller
or Buyer, as the case may be, shall provide reimbursement for any Tax paid by one party all or a portion of which is the responsibility of the other party in
accordance with the terms of this Section 7.2. Within a reasonable time prior to the payment of any said Tax, the party paying such Tax shall
give notice to the other party of the Tax payable and the portion which is the liability of each party, although failure to do so will not relieve the other party from its liability hereunder. 

        7.3.    Employees and Consultants.    Buyer shall offer employment or consultancy to
employees
or consultants of Seller (other than the employees listed on Schedule 2.3) on substantially the same terms as Seller currently employs such employee or
consultant; provided that Buyer shall have no continuing obligation after the Closing Date to offer such employment or consultancy to or to employ or
continue the employment or consultancy of any employee or consultant, or to maintain the compensation of any employee or consultant, at any particular level. Seller will retain Anitra Wood and Linda
Bonner as employees of Seller and such employees will retain all benefits of employment, including medical insurance, short and long term disability and life insurance coverage. At such time as either
employee is eligible to return to active service, Buyer shall extend to such employee an offer of employment. 

        7.4.    New Members.    After the Closing, neither Buyer, Buyer Parent nor any of
their
Affiliates shall issue any securities to or admit as a member any person who is or was an employee, consultant or expert of Seller or Parent (or any of such Person's Affiliates) unless such Person has
duly executed and delivered to Seller and Parent a Termination Agreement in the form of Exhibit F. 

        7.5.    Change of Name.    After the Closing, Seller shall provide an amendment to
the
Articles of Incorporation of Seller, certified as of a date within three days after the Closing Date by the Secretary 

15

 

of
State of the state of its incorporation, that Seller has changed its name from LECG, Inc. to a name not including "LECG", "Law and Economics" or any similar name. 

        7.6.    Delivery of Funds.    (a) If Seller or Parent or any of their Affiliates
receive any
funds or other assets that are a part of the Purchased Assets ("Buyer Funds") after the Closing Date, Seller or Parent shall within five business days deliver such Buyer Funds to Buyer and take all
steps necessary to vest title to such funds and assets in Buyer. The Seller and Parent hereby designate Buyer as their true and lawful attorney-in-fact, with full power to substitution, to execute or
endorse for the benefit of Buyer any checks, notes or other documents received by the Seller or Parent in connection with any Buyer Funds. The Seller and Parent hereby acknowledge and agree that the
power of attorney set forth in the preceding sentence is coupled with an interest, and further agree to execute and deliver to Buyer from time to time any documents or instruments reasonably requested
by Buyer to evidence such power of attorney. Further, if Seller or Parent determines (either internally or after notification from a client) that a client overpaid Seller or Parent on invoices paid by
such client prior to the Closing Date, excluding any accounts receivable or unbilled client amounts transferred to Buyer at Closing (an "Overpayment"), then, subject to recovery by Seller of any
Excluded Expert Fees paid by Seller with respect to such invoices pursuant to Section 7.9, Seller or Parent, as the case may be, will promptly
reimburse the client for the Overpayment and the obligation to repay to the client the Overpayment will be an Excluded Liability for purposes of  Section 2.4 hereof. 

        (b)   If
Buyer, Buyer Parent or any of their Affiliates receive any funds or other assets of Parent or Seller that are part of the Excluded Assets ("Seller Funds") after the
Closing Date, Buyer shall within five business days deliver such Seller Funds to Parent or Seller, as the case may be, or and take all steps necessary to vest title to such funds and assets in Parent
or Seller, as the case may be. Buyer and Buyer Parent hereby designate Parent as their true and lawful attorney-in-fact, with full power of substitution, to execute or endorse for the benefit of
Parent any checks, notes or other documents received by Buyer or Buyer Parent in connection with any Seller Funds. Buyer and Buyer Parent hereby acknowledge and agree that the power of attorney set
forth in the preceding sentence is coupled with an interest, and further agree to execute and deliver to Parent from time to time any documents or instruments reasonably requested by Seller to
evidence such power of attorney. 

        7.7.    Directors and Officers Insurance.    Parent shall, for a period of not less
than one
year from the Closing Date, continue Parent's current directors and officers insurance policies and errors and omissions insurance policies (or a substantially comparable policy or policies) (the
"Insurance") or, if such insurance coverage is not available, the best available coverage; provided, however, that Parent shall not be required to pay
an annual premium for the Insurance in excess of the last annual premiums paid prior to the date hereof, but in such case shall purchase as much coverage as possible for such amount. 

        7.8    Assigned Claims; Cooperation.    (a) Buyer Parent and Buyer hereby assign to
Parent and
Seller any claim, demand, right of recovery, cause of action or other right that Buyer Parent or Buyer has or may have against any Departed Employee arising prior to the Closing or against any
Post-Closing Departed Employee (the "Assigned Claims"). 

        (b)   Buyer
Parent, Buyer and each of their respective Affiliates shall assist and cooperate in all reasonable respects with Parent, Seller and their respective Affiliates to
permit Parent and Seller to pursue any Excluded Employee Claim or any Assigned Claim including, without limitation, producing relevant documents and making available officers, employees and agents of
Buyer Parent and Buyer as witnesses in connection with any proceeding with respect thereto. Parent or Seller shall reimburse Buyer Parent and Buyer for their reasonable and documented out-of-pocket
costs incurred pursuant to this Section 7.8(b). 

        7.9.    Payment of Excluded Expert Fees.    Seller shall pay, on approximately
October 8, 2000
(but no later than October 15, 2000), the amounts due to experts of Seller (and not subject to dispute, although 

16

 

upon
resolution of such dispute Seller shall promptly thereafter make the payment, after reflecting such resolution), except for Departed Experts, which are due on such date which arise from and
relate specifically to an account receivable of Seller if (i) such account receivable was billed to a client of Seller prior to the Closing Date and collected from such client prior to the Closing
Date and (ii) the funds so collected by Seller were retained by Seller as an Excluded Asset (any such payments being referred to herein as the "Excluded Expert Fees"). 

        7.10.    Transfer of Flexible Spending Accounts.    Promptly following the Closing
Date,
Seller will transfer to Buyer immediately available funds in an amount representing the net account balances of the flexible spending accounts of the employees of Buyer after the Closing Date under
the Navigant Consulting, Inc. Flexible Benefits Plan. As soon as practicable Closing Date, Buyer agrees to (i) establish a successor cafeteria plan, which allows health care and dependent care
flexible spending accounts; (ii) apply such transferred assets to the appropriate accounts for the benefit of such employees under such successor plan; and (iii) recognize for purposes of the
successor plan all elections made by such employees with respect to their flexible spending accounts under the Navigant Consulting, Inc. Flexible Benefits Plan. 

        7.11.    401(k) Plan.    As soon as practicable after the Closing Date, Seller agrees
to take
any and all actions necessary to identify Buyer as a "participating employer" under the Navigant Consulting, Inc. 401(k) Plan ("Seller's Plan"), and to notify the trustee and any other necessary party
of such designation. As a participating employer under Seller's Plan, Buyer shall assume the responsibility for making contributions due to the Seller's Plan on behalf of employees of Buyer after the
Closing Date in accordance with the terms of Seller's Plan, until such time as a plan-to-plan transfer of assets occurs in accordance with this Section 7.11. 

        Buyer
agrees to establish a defined contribution plan which is qualified under Section 401(a) of the Code ("Buyer's Plan"), effective no later than December 31, 2000. In accordance with
the provisions of this paragraph, Seller agrees to cause the trustee of Seller's Plan to transfer to the trustee of Buyer's Plan the Total Transfer Amount (the date of such transfer being called the
"Transfer Date"). The "Total Transfer Amount" shall be an amount equal to the account balances in Seller's Plan attributable to the participants in such plan that are employees of Buyer after the
Closing Date and their beneficiaries, as shown on the valuation report for the monthly valuation date occurring on, or immediately before, the Transfer Date (excluding any amounts accrued as of such
date but not yet contributed to the Seller's Plan, but including amounts contributed but not yet allocated to the accounts of such employees). The Total Transfer Amount shall take into consideration
any distributions, in-service withdrawals or participant loans received by such employees from the Seller's Plan, including any such distributions, withdrawals or loans received after the Closing
Date. The Total Transfer Amount shall be transferred to the Buyer's Plan entirely (1) in cash or other assets acceptable to the trustee of Buyer's Plan; and (2) notes which represent the participant
loans of such employees. 

        Seller
shall cause the trustee of the Seller's Plan to make the plan-to-plan transfer of assets in an amount equal to the Total Transfer Amount as soon as practicable after (i) Buyer has
established the Buyer's Plan and the trustee of the Buyer's Plan is prepared to accept such transfer, and (ii) Seller has completed the allocation of investment earnings on, and reconciliation of the
account balances of participants and beneficiaries in the Seller's Plan as of the monthly valuation date occurring on, or immediately preceding, the Transfer Date, provided that such Transfer Date
shall occur no later than February 1, 2001. 

17

  

        Seller agrees to prepare and provide to Buyer, as soon as practicable following the Closing Date, a list of the employees of Buyer after the Closing Date who were participants in or
otherwise entitled to benefits under the Seller's Plan, as of the Closing Date, together with a list of each such employee's term of service for eligibility and vesting purposes under the Seller's
Plan, and a listing of such employee's account balance thereunder, and Buyer and Seller agree to provide one another with such additional information in the possession of one company and not already
in the possession of the other as may be reasonably requested by either of them and necessary in order for Buyer to establish and administer the transferred account balances of such employees. In
addition, with respect to any amounts payable prior to the Transfer Date by such employees on participant loans received from the Seller's Plan or as salary deferrals to Seller's Plan, Buyer shall
execute whatever actions and make whatever arrangements may be necessary to permit the periodic repayment of such loan amounts through payroll deduction and the remittance of the loan payments and
salary deferral contributions to the Seller's Plan. 

        Before
the expiration of the remedial amendment period that applies under Section 401(b) of the Code to the Buyer's Plan for determination of its initial qualification under Section
401(a) of the Code, Buyer will apply for a determination by the IRS to the effect that the Buyer's Plan satisfies the requirements for qualification under Section 401(a) of the Code, and Buyer shall
take all reasonable actions to ensure continued qualification of the Buyer's Plan under Section 401(a) of the Code. 

 
 

ARTICLE VIII    
    
    CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER PARENT AND BUYER    
    

        The obligations of Buyer Parent and Buyer under this Agreement shall at the option of Buyer be subject to the satisfaction, on or prior to the Closing Date, of
the following conditions: 

        8.1.    No Misrepresentation or Breach of Covenants and Warranties.    There shall
have been
no Material breach by Parent or Seller in the performance of any of its covenants and agreements herein; each of the representations and warranties of Parent and Seller contained or referred to herein
shall be true and correct in all Material respects on the Closing Date as though made on the Closing Date, except for changes therein specifically permitted by this Agreement or resulting from any
transaction expressly consented to in writing by Buyer or any transaction permitted by Section 7.3. 

        8.2.    No Restraint or Litigation.    No action, suit, investigation or proceeding
shall have
been instituted or threatened to restrain, prohibit or otherwise challenge the legality or validity of the transactions contemplated hereby. 

        8.3.    Necessary Governmental Approvals.    The parties shall have received all
approvals and
actions of or by all Governmental Bodies which are necessary to consummate the transactions contemplated hereby and which are required to be obtained prior to the Closing by applicable Requirements of
Laws. 

        8.4.    Necessary Consents.    Seller shall have received consents, in form and
substance
reasonably satisfactory to Buyer, to the transactions contemplated hereby from the other parties to all contracts, Leases, agreements and permits to which Seller is a party or by which Seller or any
of the Purchased Assets is affected and which are specified in Schedule 8.4 or are otherwise necessary to prevent a material adverse change in the
Purchased Assets or the Business. 

        8.5.    Delivery of Documents.    Parent and Seller will have made the deliveries
required
under Section 4.4. 

18

 

 
 

ARTICLE IX    
    
    CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT AND SELLER    
    

        The obligations of Parent and Seller under this Agreement shall, at the option of Parent and Seller, be subject to the satisfaction, on or prior to the Closing
Date, of the following conditions: 

        9.1.    No Misrepresentation or Breach of Covenants and Warranties.    There shall
have been
no Material breach by Buyer Parent or Buyer in the performance of any of its covenants and agreements herein; each of the representations and warranties of Buyer Parent and Buyer contained or referred
to herein shall be true and correct in all Material respects on the Closing Date as though made on the Closing Date, except for changes therein specifically permitted by this Agreement or resulting
from any transaction expressly consented to in writing by Parent. 

        9.2.    No Restraint or Litigation.    No action, suit or proceeding shall have been
instituted or threatened to restrain, prohibit or otherwise challenge the legality or validity of the transactions contemplated hereby. 

        9.3.    Necessary Governmental Approvals.    The parties shall have received all
approvals and
actions of or by all Governmental Bodies which are necessary to consummate the transactions contemplated hereby and which are required to be obtained prior to the Closing by applicable Requirements of
Laws. 

        9.4.    Delivery of Documents.    Buyer Parent and Buyer will have made the
deliveries
required under Section 4.3. 

 
 

ARTICLE X    
    
    INDEMNIFICATION    
    

        10.1.    Indemnification by Parent and Seller.    Each of Parent and Seller jointly
and
severally agree to indemnify and hold harmless each Buyer Group Member from and against any and all Losses and Expense incurred by such Buyer Group Member in connection with or arising from: 

          (i)  any
breach by Parent or Seller of any of its covenants or agreements in this Agreement or in any Seller Ancillary Agreement; 

         (ii)  any
failure by Parent or Seller to perform any of its obligations in this Agreement or in any Seller Ancillary Agreement; 

        (iii)  any
breach of any warranty or the inaccuracy of any representation of Parent or Seller contained or referred to in this Agreement or any Seller Ancillary Agreement or
any certificate delivered by or on behalf of Parent or Seller pursuant hereto; 

        (iv)  the
litigation described in Schedule 10.1; and 

         (v)  any
failure of Parent or Seller to pay or discharge the excluded liabilities described in Section 2.4; 

provided, however, that (A) Parent and Seller shall be required to indemnify and hold harmless under clause (iii) of this  Section 10.1 only to the extent that
the aggregate amount of such Losses and Expense incurred by Buyer Group Members exceeds $250,000; and (B) the
aggregate amount that Parent and Seller shall be required to indemnify and hold harmless under clause (iii) of this Section 10.1 shall not exceed
$5,000,000. 

        10.2.    Indemnification by Buyer Parent and Buyer.    Buyer Parent and Buyer jointly
and
severally agree to indemnify and hold harmless each Seller Group Member from and against any and all Losses and Expense incurred by such Seller Group Member in connection with or arising from: 

19

 

          (i)  any
breach by Buyer Parent, Buyer or any Member of any of its covenants or agreements in this Agreement or in any Buyer Ancillary Agreement; 

         (ii)  any
failure by Buyer Parent, Buyer or any Member to perform any of its obligations in this Agreement or in any Buyer Ancillary Agreement; 

        (iii)  any
breach of any warranty or the inaccuracy of any representation of Buyer Parent or Buyer contained or referred to in this Agreement or any Buyer Ancillary Agreement
or in any certificate delivered by or on behalf of Buyer Parent and Buyer hereto; and 

        (iv)  any
failure by Buyer to assume and discharge any Assumed Liability; 

provided, however, that (A) Buyer Parent and Buyer shall be required to indemnify and hold harmless under clause (iii) of this  Section 10.2 (other than Loss
and Expense incurred as a result of inaccuracies of the representations and warranties contained in  Section 6.6) only to the extent that the aggregate amount of such Losses and Expense incurred by
Parent and Seller exceeds $250,000; and (B) the
aggregate amount that Buyer Parent and Buyer shall be required to indemnify and hold harmless under clause (iii) of this Section 10.2 shall not exceed
$5,000,000. 

        10.3.    Notice of Claims.    (a) Any Buyer Group Member or Seller Group Member (the
"Indemnified Party") seeking indemnification hereunder shall give to the party obligated to provide indemnification to such
Indemnified Party (the "Indemnitor") a notice (a "Claim Notice") describing in reasonable detail the facts giving rise to any claim for indemnification hereunder and shall include in such Claim Notice
(if then known) the amount or the method of computation of the amount of such claim, and a reference to the provision of this Agreement or any other agreement, document or instrument executed
hereunder or in connection herewith upon which such claim is based; provided, that a Claim Notice in respect of any action at law or suit in equity by
or against a third Person as to which indemnification will be sought shall be given promptly after the action or suit is commenced; provided further
that failure to give such notice shall not relieve the Indemnitor of its obligations hereunder except to the extent it shall have been prejudiced by such failure. 

        (b)   After
the giving of any Claim Notice pursuant hereto, the amount of indemnification to which an Indemnified Party shall be entitled under this  Article XI shall be finally determined: (i) by the written
agreement between the Indemnified Party and the Indemnitor or (ii) pursuant to the provisions
of Section 11.14; or (iii) by any other means to which the Indemnified Party and the Indemnitor shall agree. The Indemnified Party shall have the burden
of proof in establishing the amount of Loss and Expense suffered by it. 

        (c)   In
calculating any Loss or Expense there shall be deducted any insurance recovery in respect thereof, whether such recovery is made by Parent, Seller, Buyer Parent or
Buyer. 

20

  

        10.4.    Third Person Claims.    (a) If any third Person claim, action or suit is
brought as
to which indemnification will be sought pursuant to this Agreement (a "Third Party Claim") and (i) the Third Party Claim is solely for money damages and such Third Party Claim will have no continuing
effect in any material respect on the business or assets or the Indemnified Party and (ii) the amount claimed pursuant to such Third Party Claim or the potential liability arising out of such Third
Party Claim (in the judgment of the Indemnified Party) does not, after taking into account all other indemnification obligations of the Indemnitor pursuant to this Agreement, exceed the Indemnitor's
maximum indemnification obligations pursuant to this Agreement, then the Indemnitor shall be entitled to participate in the defense of such Third Party Claim and, if the Indemnitor so chooses (and
provided that the Indemnitor so notifies the Indemnified Party in writing within ten (10) days after delivery of the Claim Notice with respect to such Third Party Claim and acknowledges the
Indemnitor's obligation to indemnify the Indemnified Party with respect to such Third Party Claim), to assume primary responsibility for the defense, compromise or settlement of such Third Party
Claim, with counsel selected by the Indemnitor and not reasonably objected to by the Indemnified Party. If the Indemnitor assumes such responsibility as set forth in this paragraph, then (x) in no
event shall the Indemnified Party admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the Indemnitor's prior written consent and (y) the Indemnified
Party shall be entitled to participate in, but not control, the defense of such Third Party Claim with its own counsel at its own expense. If the Indemnitor does not assume such responsibility as
described above, the Indemnified Party may defend, compromise or settle such Third Party Claim in such manner as it may deem appropriate (including without limitation, settling such claim on such
terms as the Indemnified Party may deem appropriate). Notwithstanding the foregoing, the Indemnified Party shall have the right to defend, compromise or settle any Third Party Claim described in this  Section 11.4(a)
 if the Indemnified Party waives in writing any right to indemnification by the Indemnitor with respect to such Third Party Claim.
 

        (b)   If
any Third Party Claim is brought as to which indemnification will be sought pursuant to this Agreement (other than a Third Party Claim described in clauses (i) and
(ii) of Section 10.4(a)), the Indemnified Party shall have the right to defend, compromise or settle such Third Party Claim, with counsel selected by
the Indemnified Party and not reasonably objected to by the Indemnitor. If the Indemnified Party defends such Third Party Claim as set forth in this paragraph, then (i) in no event shall the
Indemnitor admit any liability with respect to, or settle, compromise or discharge, such Third Party Claim without the Indemnified Party's prior written consent and (ii) the Indemnitor shall be
entitled to participate in, but not control, the defense of such Third Party Claim with its own counsel and at its own expense. If the Indemnified Party does not defend such Third Party Claim, the
Indemnitor may defend, compromise or settle such Third Party Claim in such manner as it may deem appropriate (including, without limitation, settling such Third Party Claim, after giving twenty (20)
days prior written notice of such settlement to the Indemnified Party, on such terms as the Indemnitor may deem appropriate). 

        (c)   In
the event that, pursuant to Section 10.4(b), the Indemnified Party defends any Third Party Claim and the
Indemnified Party proposes to settle such Third Party Claim for an amount which, after taking into account all other indemnification obligations of the Indemnitor pursuant to this Agreement, exceeds
the Indemnitor's maximum indemnification obligations pursuant to this Agreement, then, provided that the Indemnitor has acknowledged its obligation to indemnify the Indemnified Party, the Indemnified
Party shall give the Indemintor twenty (20) days prior written notice of such proposed settlement. The Indemnitor shall notify the Indemnified Party prior to the end of such twenty (20) day period
whether the Indemnitor accepts or rejects such proposed settlement; provided, however, that notwithstanding anything to the contrary contained in this Agreement (including any limitation on the
liability of the Indemnitor otherwise provided in this Agreement), if the Indemnitor rejects such proposed settlement, the Indemnitor shall be liable for, and shall prior to the expiration of such
20-day period post a performance bond, letter of credit or other similar security (in any such case containing 

21

 

terms
and conditions acceptable to the Indemnified Party in its sole discretion) in an amount which equals the amount by which (i) the amount claimed pursuant to such Third Party Claim or, if
greater, the potential liability arising out of such Third Party Claim (in the good faith judgment of the Indemnified Party) exceeds (ii) the portion of the proposed settlement that the
Indemnified Party would be required to pay and not be indemnified for pursuant to such proposed settlement. 

        (d)   The
party having primary responsibility for the defense of any Third Party Claim shall at all times keep the other party informed as to the status of such Third Party
Claim. The party not having primary responsibility for the defense of any Third Party Claim shall cooperate fully with the party having such responsibility in connection with such defense, including,
without limitation, furnishing such records, information and testimony and attending such conferences, discovery proceedings, hearings, trials and appeals as may be reasonably requested. 

        10.5.    Set-Off.    If the amount of indemnification to which an Indemnified Party
shall be
entitled to under this Article X shall be finally determined by (i) written agreement between the Indemnified Party and the Indemnitor or (ii) a final judgment of a court (after
the time for appeal, if any, shall have expired and no appeal shall have been taken or when all appeals taken shall have been finally determined), then the Indemnified Party shall be entitled to set
off such amount against any payment it may be obligated to make to the Indemnitor, to the extent that such payment has not been made by the Indemnitor. 

 
 

ARTICLE XI    
    
    GENERAL PROVISIONS    
    

        11.1.    Survival of Obligations.    All representations, warranties, covenants and
obligations contained in this Agreement shall survive the consummation of the transactions contemplated by this Agreement; provided that no party shall
be entitled to make a claim for indemnification (other than a claim based on inaccuracies of the representations and warranties contained in  Section 6.6 or a claim based on Section 7.1 or  Schedule 10.1) unless such party shall have given the other parties written notice of such claim prior to the first anniversary of the Closing
Date. 

        11.2.    Confidential Nature of Information.    Each party agrees that it will treat
in
confidence all documents, materials and other information which it shall have obtained regarding the other party during the course of the negotiations leading to the consummation of the transactions
contemplated hereby (whether obtained before or after the date of this Agreement), the investigation provided for herein and the preparation of this Agreement and other related documents, and, in the
event the transactions contemplated hereby shall not be consummated, each party will return to the other party all copies of nonpublic documents and materials which have been furnished in connection
therewith. Such documents, materials and information shall not be communicated to any third Person (other than, in the case of Buyer Parent and Buyer, to their counsel, accountants, financial advisors
or lenders, and in the case of Parent and Seller, to their counsel, accountants or financial advisors). No other party shall use any confidential information in any manner whatsoever except solely for
the purpose of evaluating the proposed purchase and sale of the Purchased Assets; provided, however, that after the Closing Buyer Parent and Buyer may
use or disclose any confidential information included in the Purchased Assets or otherwise reasonably related to the Business or the Purchased Assets and Seller and Parent will be obligated to
preserve the confidential information included in the Purchased Assets and otherwise reasonably related to the Business or the Purchased Assets as confidential information of Buyer. If a party (the
"Recipient") is requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose the confidential
information of another party (the "Disclosing Party"), the Recipient must provide the Disclosing Party with prompt notice of such request(s) so the Disclosing Party may seek an appropriate protective
order or other appropriate remedy and/or waive compliance with the confidentiality 

22

 

provisions
of this Agreement. In the event that such protective order or other remedy is not obtained, or the Disclosing Party grants a waiver hereunder, the Recipient may furnish that portion (and
only that portion) of the confidential information which it is legally compelled to disclose and must exercise its reasonable efforts to obtain reliable assurance that confidential treatment will be
accorded any confidential information so furnished. The obligation of each party to treat such documents, materials and other information in confidence shall not apply to any information which
(i) is or becomes available to such party from a source other than such party, (ii) is or becomes available to the public other than as a result of disclosure by such party or its
agents, (iii) is required to be disclosed under applicable law or judicial process, but only to the extent it must be disclosed, or (iv) such party reasonably deems necessary to disclose
to obtain any of the consents or approvals contemplated hereby. Money damages would be both incalculable and an insufficient remedy for any breach of this  Section 11.2 by a party and any such
breach would cause another party irreparable harm. In the event of any breach or threatened breach of this
Section 11.2, in addition to any other remedies at law or in equity it may have, a party will be entitled to seek, without the requirement of
posting a bond or other security, equitable relief, including injunctive relief and specific performance. 

        11.3.    No Public Announcement.    No party may issue any press release or make any
public
announcement relating to the subject matter of this Agreement prior to the Closing without the prior written consent of all other parties; provided,
however, that a party may make any public disclosure it believes in good faith is required by applicable law or any listing or trading agreement concerning its publicly-traded
securities (in which case the disclosing party will use its best efforts to advise the other parties prior to making that disclosure). 

        11.4.    Notices.    All notices or other communications required or permitted
hereunder shall
be in writing and shall be deemed given or delivered when delivered personally or when sent by registered or certified mail or by private courier addressed as follows: 

If
to Buyer Parent or Buyer, to: 

LECG,
LLC

2000 Powell Street

Suite 600

Emeryville, CA 94608

Attention: David Teece 

with
a copies to: 

Folger
Levin & Kahn, LLP

275 Battery Street, 28th Floor

San Francisco, CA 94111

Attention: Teressa K. Lippert

                   and

Thoma Cressey Equity Partners

600 Montgomery Street, 27th Floor

San Francisco, CA 94111

Attention: Jeanne Plessinger 

23

  

If
to Parent or Seller, to: 

Navigant
Consulting, Inc.

615 North Wabash Avenue

Chicago, Illinois 60611

Attention: Philip Steptoe 

with
a copy to: 

Sidley
& Austin

One First National Plaza

Chicago, Illinois 60603

Attention: Steven Sutherland 

or
to such other address as such party may indicate by a notice to the other party hereto. 

        11.5.    Successors and Assigns.    (a) Following the Closing, no party may assign
any of its
rights hereunder without the prior written consent of the others and, in any event, any permitted assignment shall not relieve the assigning party of its obligations hereunder. 

        (b)   This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their successors and permitted assigns. Nothing in this Agreement, expressed or
implied, is intended or shall be construed to confer upon any Person other than the parties and successors and assigns permitted by this Section 11.5
any right, remedy or claim under or by reason of this Agreement. 

        11.6    Access to Records after Closing.    For a period of six years after the
Closing Date,
Parent and Seller, and their representatives shall have reasonable access to all of the books and records of Seller transferred to Buyer hereunder to the extent that such access may reasonably be
required by Parent or Seller in connection with matters relating to or affected by the operations of Seller prior to the Closing Date. Such access shall be afforded by Buyer upon receipt of reasonable
advance notice and during normal business hours. Parent and Seller shall be solely responsible for any costs or expenses incurred
by them pursuant to this Section 11.6. If Buyer shall desire to dispose of any of such books and records prior to the expiration of such six-year
period, Buyer shall, prior to such disposition, give Parent and Seller a reasonable opportunity, at their expense, to segregate and remove such books and records as they may select. 

        For
a period of six years after the Closing Date, Buyer Parent, Buyer and their representatives shall have reasonable access to all of the books and records relating to the Business
which Parent or Seller may retain after the Closing Date (including any corporate books and stock transfer books of Seller) to the extent such access may reasonably be required by Buyer Parent or
Buyer in connection with matters relating to or affected by the operations of Seller prior to the Closing Date. Such access shall be afforded by Parent or Seller upon receipt of reasonable advance
notice and during normal business hours. Buyer Parent and Buyer shall be solely responsible for any costs and expenses incurred by them pursuant to this Section
11.6. If Parent or Seller shall desire to dispose of any of such books and records prior to the expiration of such six-year period, it shall, prior to such disposition, give
Buyer Parent and Buyer a reasonable opportunity, at their expense, to segregate and remove such books and records as they may select. 

        11.7.    Entire Agreement: Amendments.    This Agreement contains the entire
understanding of
the parties hereto with regard to the subject matter contained herein or therein, and supersedes all prior agreements, understandings or letters of intent between or among any of the parties hereto,
including without limitation the letter of intent dated May 22, 2000 among Parent, Seller, David Teece and David Kaplan. This Agreement shall not be amended, modified or supplemented except by
a written instrument signed by an authorized representative of each of the parties hereto. 

24

 

        11.8.    Interpretation.    Article titles and headings to sections herein are
inserted for
convenience of reference only and are not intended to be a part of or to affect the meaning or interpretation of this Agreement. The Schedules and Exhibits referred to herein shall be construed with
and as an integral part of this Agreement to the same extent as if they were set forth verbatim herein. 

        11.9.    Waivers.    Any term or provision of this Agreement may be waived, or the
time for
its performance may be extended, by the party or parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any
party, it is authorized in writing by an authorized representative of such party. The failure of any party hereto to enforce at any time any provision of this Agreement shall not be construed to be a
waiver of such provision, nor in any way to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any
breach of this Agreement shall be held to constitute a waiver of any other or subsequent breach. 

        11.10.    Expenses.    Each party hereto will pay all costs and expenses incident to
its
negotiation and preparation of this Agreement and to its performance and compliance with all agreements and conditions contained herein on its part to be performed or complied with, including the
fees, expenses and disbursements of its counsel and accountants. 

        11.11.    Partial Invalidity.    Wherever possible, each provision hereof shall be
interpreted
in such manner as to be effective and valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable
in any respect, such provision shall be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such invalid,
illegal or unenforceable provision or provisions or any other provisions hereof, unless such a construction would be unreasonable. 

        11.12.    Execution in Counterparts.    This Agreement may be executed in one or more
counterparts, each of which shall be considered an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have
been signed by each of the parties hereto and delivered to each of Parent, Buyer, Buyer Parent and Seller. 

        11.13.    Governing Law.    This Agreement shall be governed by and construed in
accordance
with the internal laws (as opposed to the conflicts of law provisions) of the State of Illinois. 

        11.14.    Dispute Resolution.    Any dispute, controversy or claim (including any
dispute
arising under Article X of this Agreement), whether based on contract, tort, statute, fraud, misrepresentation or any other legal theory (a "Dispute")
between Parent or Seller, on the one hand, and Buyer Parent or Buyer, on the other hand (including their respective Affiliates) arising out of or relating to this Agreement, any obligations hereunder
or the relationship of the parties under Agreement shall be resolved first in accordance with the procedures described in this Section. The parties hereto agree to establish an internal hierarchy to
facilitate resolution of these issues as set forth below: 

        (a)   Upon
written request of either Parent or Seller, on the one hand, or Buyer Parent or Buyer, on the other hand, each will appoint a designated representative whose task
it will be to meet for the purpose of endeavoring to resolve such Dispute. 

        (b)   The
designated representatives shall meet as often as the parties reasonably deem necessary to discuss the Dispute in an effort to resolve the Dispute without the
necessity of any formal proceeding. During the discussions, all reasonable requests by a party to another party for non-privileged information reasonably related to the Dispute shall be honored in
order that each party may be fully advised of the other party's position. 

        (c)   Formal
proceedings in a court of law for the resolution of a Dispute may not be commenced until the earlier of: 

25

 

	(i)
	the
designated representatives concluding in good faith that amicable resolution through continued negotiation of the matter does not appear likely; or

	(ii)
	the
expiration of the fifteen (15) day period immediately following the initial request to negotiate the Dispute; 

provided, however, that this Section 11.14 will not be construed to prevent a party from instituting
formal proceedings earlier to avoid the expiration of any applicable limitations period or to preserve a superior position with respect to other creditors. 

        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed the day and year first above written. 

	

 	
 	
NAVIGANT CONSULTING, INC.
	

 	
 	

By	
 	

/s/  JEFFREY H. STOECKLEIN      
 Jeffrey H. Stoecklein

Vice President
	

 	
 	
LECG, INC.
	

 	
 	

By	
 	

/s/  PHILIP P. STEPTOE      
 Philip P. Steptoe

Vice President
	

 	
 	
LECG HOLDING COMPANY, LLC
	

 	
 	

By	
 	

/s/  J. GEOFFREY COLTON      
 J. Geoffrey Colton

Secretary
	

 	
 	
LECG, LLC
	

 	
 	

By:	
 	

LECG HOLDING COMPANY, LLC
	

 	
 	

 	
 	

By	
 	

/s/  J. GEOFFREY COLTON      
 J. Geoffrey Colton

Secretary

26

Schedule

1.1 Agreed Accounting Principles

 

None

 

 

Schedule

2.1 (c) Real Estate Leases

 

Attached

 

 

Schedule 2.1 (c)

Real Estate Leases

 

Los Angeles, CA

Emeryville, CA

Washington, D.C.

Evanston, IL

Cambridge, MA

New York, NY

College Station, TX

Salt Lake, City, UT

Toronto, Canada

London, England

Wellington, New Zealand

Buenos Aires, Argentina

 

 

Schedule

2.1 (d) NCI Assets Being Purchased

 

Attached

 

 

Schedule 2.1 (d)

 

September 21, 2000

 

4:01 PM

 

Navigant Consulting, Inc.

NET BOOK VALUE REPORT

 

Book: Internal   FY: December

 

	
  SYS No

  	
   

  	
  Co Asset
  No

  	
   

  	
  Desc

  	
   

  	
  In-Svc

  Date

  	
   

  	
  Dep

  Meth

  	
   

  	
  Rem

  Life

  	
   

  	
  Unadjusted

  Basis - 5179

  	
   

  	
  Salvage

  Value

  	
   

  	
  Curr

  Thru

  	
   

  	
  Current
  Accum

  Depreciation

  	
   

  	
  Sec 179

  	
   

  	
  Net Bk
  Value

  	
   

  	
  Pct

  Dep

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  005810

  	
   

  	
   

  	
   

  	
  WinNT
  Serv

  	
   

  	
  04/04/00

  	
   

  	
  SLMM

  	
   

  	
  02 07

  	
   

  	
  1012.86

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  140.67

  	
   

  	
  0.00

  	
   

  	
  872.19

  	
   

  	
  13.9

  	
   

  
	
  005838

  	
   

  	
   

  	
   

  	
  Cisco
  2924

  	
   

  	
  04/11/00

  	
   

  	
  SLMM

  	
   

  	
  02 07

  	
   

  	
  2527.43

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  351.03

  	
   

  	
  0.00

  	
   

  	
  2176.40

  	
   

  	
  13.9

  	
   

  
	
  005852

  	
   

  	
   

  	
   

  	
  Thinkpad  5

  	
   

  	
  12/30/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  2779.63

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  617.69

  	
   

  	
  0.00

  	
   

  	
  2161.94

  	
   

  	
  22.2

  	
   

  
	
  005853

  	
   

  	
   

  	
   

  	
  (2)
  F3/500

  	
   

  	
  11/09/99

  	
   

  	
  SLMM

  	
   

  	
  02 02

  	
   

  	
  29?5.99

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  829.44

  	
   

  	
  0.00

  	
   

  	
  2156.55

  	
   

  	
  27.8

  	
   

  
	
  005859

  	
   

  	
   

  	
   

  	
  Smt
  Array

  	
   

  	
  11/23/99

  	
   

  	
  SLMM

  	
   

  	
  02 03

  	
   

  	
  3682.79

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  320.71

  	
   

  	
  0.00

  	
   

  	
  2752.08

  	
   

  	
  25.0

  	
   

  
	
  005870

  	
   

  	
   

  	
   

  	
  (4)
  Keyboa

  	
   

  	
  12/15/99

  	
   

  	
  SLMM

  	
   

  	
  02 03

  	
   

  	
  5312.91

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  1326.22

  	
   

  	
  0.00

  	
   

  	
  3984.69

  	
   

  	
  25.0

  	
   

  
	
  005871

  	
   

  	
   

  	
   

  	
  (4)
  Rack/K

  	
   

  	
  12/16/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  10279.42

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  2264.31

  	
   

  	
  0.00

  	
   

  	
  7995.11

  	
   

  	
  22.2

  	
   

  
	
  005873

  	
   

  	
   

  	
   

  	
  (15)
  EX-AM

  	
   

  	
  12/22/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  1065.20

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  236.71

  	
   

  	
  0.00

  	
   

  	
  82?.49

  	
   

  	
  22.2

  	
   

  
	
  005875

  	
   

  	
   

  	
   

  	
  IBM
  Deskto

  	
   

  	
  12/22/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  2220.10

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  493.35

  	
   

  	
  0.00

  	
   

  	
  1726.75

  	
   

  	
  22.2

  	
   

  
	
  005891

  	
   

  	
   

  	
   

  	
  IBM
  570, 6

  	
   

  	
  12/2?/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  3233.07

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  718.46

  	
   

  	
  0.00

  	
   

  	
  2514.61

  	
   

  	
  22.2

  	
   

  
	
  005896

  	
   

  	
   

  	
   

  	
  IBM
  570 -

  	
   

  	
  12/29/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  3052.65

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  678.36

  	
   

  	
  0.00

  	
   

  	
  2374.29

  	
   

  	
  22.2

  	
   

  
	
  005897

  	
   

  	
   

  	
   

  	
  64
  MB Ram,

  	
   

  	
  12/29/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  1151.78

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  255.95

  	
   

  	
  0.00

  	
   

  	
  895.83

  	
   

  	
  22.2

  	
   

  
	
  005902

  	
   

  	
   

  	
   

  	
  IBM
  570, 6

  	
   

  	
  01/03/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  4012.80

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  ?91.73

  	
   

  	
  0.00

  	
   

  	
  3121.07

  	
   

  	
  22.2

  	
   

  
	
  005935

  	
   

  	
   

  	
   

  	
  HP
  SOON -

  	
   

  	
  01/13/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  1950.00

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  433.33

  	
   

  	
  0.00

  	
   

  	
  1516.67

  	
   

  	
  22.2

  	
   

  
	
  005939

  	
   

  	
   

  	
   

  	
  PC
  300 GL

  	
   

  	
  01/14/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  26577.60

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  5906.13

  	
   

  	
  0.00

  	
   

  	
  20671.47

  	
   

  	
  22.2

  	
   

  
	
  005940

  	
   

  	
   

  	
   

  	
  TP
  570 Vlt

  	
   

  	
  01/19/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  170.35

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  33.12

  	
   

  	
  0.00

  	
   

  	
  137.23

  	
   

  	
  19.4

  	
   

  
	
  005941

  	
   

  	
   

  	
   

  	
  (16)
  64 MB

  	
   

  	
  01/13/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  9065.70

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  2014.60

  	
   

  	
  0.00

  	
   

  	
  7051.10

  	
   

  	
  22.2

  	
   

  
	
  005954

  	
   

  	
   

  	
   

  	
  IBM
  Thinkp

  	
   

  	
  01/07/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  3061.56

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  680.34

  	
   

  	
  0.00

  	
   

  	
  23?1.22

  	
   

  	
  22.2

  	
   

  
	
  005959

  	
   

  	
   

  	
   

  	
  Completion

  	
   

  	
  01/14/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  13069.22

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  2904.27

  	
   

  	
  0.00

  	
   

  	
  10164.95

  	
   

  	
  22.2

  	
   

  
	
  005960

  	
   

  	
   

  	
   

  	
  Port
  Fast

  	
   

  	
  01/20/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  13372.90

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  2600.29

  	
   

  	
  0.00

  	
   

  	
  10772.61

  	
   

  	
  19.4

  	
   

  
	
  005961

  	
   

  	
   

  	
   

  	
  Installatl

  	
   

  	
  01/14/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  8841.69

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  1964.82

  	
   

  	
  0.00

  	
   

  	
  6876.87

  	
   

  	
  22.2

  	
   

  
	
  005962

  	
   

  	
   

  	
   

  	
  Rackmount

  	
   

  	
  01/31/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  9122.64

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  1773.89

  	
   

  	
  0.00

  	
   

  	
  7348.95

  	
   

  	
  19.4

  	
   

  
	
  005964

  	
   

  	
   

  	
   

  	
  (15)
  Ean68

  	
   

  	
  01/03/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  3011.6?

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  224.82

  	
   

  	
  0.00

  	
   

  	
  786.?6

  	
   

  	
  22.2

  	
   

  
	
  005965

  	
   

  	
   

  	
   

  	
  P2
  Pent II

  	
   

  	
  01/05/00

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  223.86

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  49.74

  	
   

  	
  0.00

  	
   

  	
  174.12

  	
   

  	
  22.2

  	
   

  
	
  006006

  	
   

  	
   

  	
   

  	
  TEAD
  Selec

  	
   

  	
  01/20/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  1188.99

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  231.19

  	
   

  	
  0.00

  	
   

  	
  957.?0

  	
   

  	
  19.4

  	
   

  
	
  006017

  	
   

  	
   

  	
   

  	
  Server
  Upg

  	
   

  	
  09/30/99

  	
   

  	
  SLMM

  	
   

  	
  02 01

  	
   

  	
  7189.24

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  2196.70

  	
   

  	
  0.00

  	
   

  	
  4992.54

  	
   

  	
  30.6

  	
   

  
	
  006045

  	
   

  	
   

  	
   

  	
  (5)
  MXA 00

  	
   

  	
  02/10/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  1694.11

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  329.41

  	
   

  	
  0.00

  	
   

  	
  1364.70

  	
   

  	
  19.4

  	
   

  
	
  006046

  	
   

  	
   

  	
   

  	
  MAtrix
  500

  	
   

  	
  02/16/00

  	
   

  	
  SLMM

  	
   

  	
  02 06

  	
   

  	
  21579.64

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  3596.61

  	
   

  	
  0.00

  	
   

  	
  17983.03

  	
   

  	
  16.7

  	
   

  
	
  006047

  	
   

  	
   

  	
   

  	
  Ethernet
  2

  	
   

  	
  02/03/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  1790.35

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  34?.12

  	
   

  	
  0.00

  	
   

  	
  1442.23

  	
   

  	
  19.4

  	
   

  
	
  006048

  	
   

  	
   

  	
   

  	
  Prolient
  1

  	
   

  	
  12/16/99

  	
   

  	
  SLMM

  	
   

  	
  02 04

  	
   

  	
  657.08

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  146.02

  	
   

  	
  0.00

  	
   

  	
  511.06

  	
   

  	
  22.2

  	
   

  
	
  006076

  	
   

  	
   

  	
   

  	
  (2)
  9.1 GB

  	
   

  	
  02/27/00

  	
   

  	
  SLMM

  	
   

  	
  02 06

  	
   

  	
  1518.76

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  253.13

  	
   

  	
  0.00

  	
   

  	
  1265.63

  	
   

  	
  16.7

  	
   

  
	
  006077

  	
   

  	
   

  	
   

  	
  DLT
  35/70

  	
   

  	
  03/29/00

  	
   

  	
  SLMM

  	
   

  	
  02 07

  	
   

  	
  5619.77

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  780.52

  	
   

  	
  0.00

  	
   

  	
  4839.25

  	
   

  	
  13.9

  	
   

  
	
  006078

  	
   

  	
   

  	
   

  	
  7
  pk Tape

  	
   

  	
  03/29/00

  	
   

  	
  SLMM

  	
   

  	
  02 07

  	
   

  	
  2217.43

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  307.98

  	
   

  	
  0.00

  	
   

  	
  1909.45

  	
   

  	
  13.9

  	
   

  
	
  006079

  	
   

  	
   

  	
   

  	
  Prolient
  1

  	
   

  	
  03/29/00

  	
   

  	
  SLMM

  	
   

  	
  02 07

  	
   

  	
  16241.19

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  2255.72

  	
   

  	
  0.00

  	
   

  	
  13905.47

  	
   

  	
  13.9

  	
   

  
	
  006080

  	
   

  	
   

  	
   

  	
  (4)
  Lector

  	
   

  	
  03/06/00

  	
   

  	
  SLMM

  	
   

  	
  02 06

  	
   

  	
  265.72

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  44.26

  	
   

  	
  0.00

  	
   

  	
  221.44

  	
   

  	
  16.7

  	
   

  
	
  006082

  	
   

  	
   

  	
   

  	
  Prolient
  8

  	
   

  	
  02/04/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  20895.40

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  4062.99

  	
   

  	
  0.00

  	
   

  	
  16?32.41

  	
   

  	
  19.4

  	
   

  
	
  006083

  	
   

  	
   

  	
   

  	
  Pentium
  II

  	
   

  	
  02/10/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  3200.24

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  622.26

  	
   

  	
  0.00

  	
   

  	
  2577.98

  	
   

  	
  19.4

  	
   

  
	
  006131

  	
   

  	
   

  	
   

  	
  IBM
  570 -

  	
   

  	
  01/19/00

  	
   

  	
  SLMM

  	
   

  	
  02 05

  	
   

  	
  2996.25

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  582.61

  	
   

  	
  0.00

  	
   

  	
  2413.64

  	
   

  	
  19.4

  	
   

  
	
  006149

  	
   

  	
   

  	
   

  	
  256
  MB RAM

  	
   

  	
  05/24/00

  	
   

  	
  SLMM

  	
   

  	
  02 09

  	
   

  	
  1264.00

  	
   

  	
  0.00

  	
   

  	
  08/00

  	
   

  	
  105.33

  	
   

  	
  0.00

  	
   

  	
  1158.67

  	
   

  	
  8.3

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Class C

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Count=

  	
   

  	
  39

  	
   

  	
  218102

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  44195

  	
   

  	
  0

  	
   

  	
  173907

  	
   

  	
   

  	
   

  
	
  Less disposals

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  218102

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  44195

  	
   

  	
  0

  	
   

  	
  173907

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Grand Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Count=

  	
   

  	
  39

  	
   

  	
  218102

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  44195

  	
   

  	
  0

  	
   

  	
  173907

  	
   

  	
   

  	
   

  

 

1

 

	
  SYS No

  	
   

  	
  Co Asset
  No

  	
   

  	
  Desc

  	
   

  	
  In-Svc

  Date

  	
   

  	
  Dep

  Meth

  	
   

  	
  Rem

  Life

  	
   

  	
  Unadjusted

  Basis - 5179

  	
   

  	
  Salvage

  Value

  	
   

  	
  Curr

  Thru

  	
   

  	
  Current
  Accum

  Depreciation

  	
   

  	
  Sec 179

  	
   

  	
  Net Bk
  Value

  	
   

  	
  Pct

  Dep

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Less disposals

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Net

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  218102

  	
   

  	
  0

  	
   

  	
   

  	
   

  	
  44195

  	
   

  	
  0

  	
   

  	
  173907

  	
   

  	
   

  	
   

  

 

Calculation Assumptions

 

	
  Book

  	
   

  	
  Short
  Years

  	
   

  	
  Midquarter
  Convention

  	
   

  	
  Adjustment
  Convention

  	
   

  
	
  Internal

  	
   

  	
  [N]

  	
   

  	
  [N]

  	
   

  	
  None

  	
   

  

 

Asset Grouping/Sorting

 

Group: 2000 Additions

 

Include Assets
that meet the following conditions:

 

Company Name is LECG

 

Sort Assets
by:

 

Class in ascending order and report subtotals

 

2

 

Schedule

2.1(k) Employees/ Consultants

 

	
  DELLEPIANE, SANTIAGO

  	
   

  	
  BUENOS AIRES, ARGENTINA

  
	
  GARCIA TORRES, MARCELA

  	
   

  	
  BUENOS AIRES, ARGENTINA

  
	
  ORTENZI, THOMAS A

  	
   

  	
  BUENOS AIRES, ARGENTINA

  
	
  PALEY, NORMA

  	
   

  	
  BUENOS AIRES, ARGENTINA

  
	
  SPIES, ANDREA

  	
   

  	
  BUENOS AIRES, ARGENTINA

  
	
  BOGUSLASKI, CHARLES R

  	
   

  	
  CAMBRIDGE, MA

  
	
  BRODERICK, ERIN A

  	
   

  	
  CAMBRIDGE, MA

  
	
  CADWALADER, MICHAEL D

  	
   

  	
  CAMBRIDGE, MA

  
	
  CAMACHO, JASPER L

  	
   

  	
  CAMBRIDGE, MA

  
	
  CHANDLEY, JOHN D

  	
   

  	
  CAMBRIDGE, MA

  
	
  COLLINS, KEITH N

  	
   

  	
  CAMBRIDGE, MA

  
	
  FARMER, JOHNNIE

  	
   

  	
  CAMBRIDGE, MA

  
	
  FENESTOR, TANYA

  	
   

  	
  CAMBRIDGE, MA

  
	
  GEER, HILAH H

  	
   

  	
  CAMBRIDGE, MA

  
	
  GONAZALEZ-PALOMARES, ANA L

  	
   

  	
  CAMBRIDGE, MA

  
	
  HARTSHORN, ANDREW P

  	
   

  	
  CAMBRIDGE, MA

  
	
  HARVEY, SCOTT M

  	
   

  	
  CAMBRIDGE, MA

  
	
  HOGAN, WILLIAM W

  	
   

  	
  CAMBRIDGE, MA

  
	
  JANKOWSKI, JOHN R

  	
   

  	
  CAMBRIDGE, MA

  
	
  JIMINEZ, CHRISTINE

  	
   

  	
  CAMBRIDGE, MA

  
	
  KASPER, DANIEL M

  	
   

  	
  CAMBRIDGE, MA

  
	
  KUNKLE, MATTHEW D

  	
   

  	
  CAMBRIDGE, MA

  
	
  LEE, DARIN N

  	
   

  	
  CAMBRIDGE, MA

  
	
  POPE, SUSAN L

  	
   

  	
  CAMBRIDGE, MA

  
	
  RYTHER, CHRISTIAN C

  	
   

  	
  CAMBRIDGE, MA

  
	
  VANDERHART, JENNIFER K

  	
   

  	
  CAMBRIDGE, MA

  
	
  ABDALA, MANUEL A

  	
   

  	
  COLLEGE STATION, TX

  
	
  CHEN, ANDREW H

  	
   

  	
  COLLEGE STATION, TX

  
	
  ELMER, NICOLE A

  	
   

  	
  COLLEGE STATION, TX

  
	
  HICKMAN, BRENDA M

  	
   

  	
  COLLEGE STATION, TX

  
	
  MANESS, ROBERT S

  	
   

  	
  COLLEGE STATION, TX

  
	
  NAJVAR, DAVID J

  	
   

  	
  COLLEGE STATION, TX

  
	
  NEIDEFFER, MATTHEW T

  	
   

  	
  COLLEGE STATION, TX

  
	
  NOFFSKER, BRADLEY E

  	
   

  	
  COLLEGE STATION, TX

  
	
  RONN, EHUD I

  	
   

  	
  COLLEGE STATION, TX

  
	
  THOMAS, YONDELL J

  	
   

  	
  COLLEGE STATION, TX

  
	
  WHALEY, KAREN M

  	
   

  	
  COLLEGE STATION, TX

  
	
  WOOD, ANITRA B

  	
   

  	
  COLLEGE STATION, TX

  
	
  ADAMS, NANCY P

  	
   

  	
  EMERYVILLE, CA

  
	
  AKEMANN, MICHAEL P

  	
   

  	
  EMERYVILLE, CA

  
	
  ALPER, ROMAN

  	
   

  	
  EMERYVILLE, CA

  
	
  ALZARO, NAFEZ J

  	
   

  	
  EMERYVILLE, CA

  
	
  ANDERSON, ERIK

  	
   

  	
  EMERYVILLE, CA

  
	
  ANDRADE, DAVID

  	
   

  	
  EMERYVILLE, CA

  
	
  BAJAJ, MUKESH

  	
   

  	
  EMERYVILLE, CA

  
	
  BARNES, KAREN

  	
   

  	
  EMERYVILLE, CA

  
	
  BONDOC, ELSIE G

  	
   

  	
  EMERYVILLE, CA

  
	
  BULLIS, ROSEANNA

  	
   

  	
  EMERYVILLE, CA

  
	
  CARNALL, MICHAEL A

  	
   

  	
  EMERYVILLE, CA

  

 

 

	
  COLATOSTI, MARK

  	
   

  	
  EMERYVILLE, CA

  
	
  COLTON, GEOFF

  	
   

  	
  EMERYVILLE, CA

  
	
  CORREA, LUIZ F

  	
   

  	
  EMERYVILLE, CA

  
	
  DARNLEY, FRANCES R

  	
   

  	
  EMERYVILLE, CA

  
	
  DICKEY, BRET M

  	
   

  	
  EMERYVILLE, CA

  
	
  DONNERT, NIKLAS

  	
   

  	
  EMERYVILLE, CA

  
	
  ELGIN, MEREDITH B

  	
   

  	
  EMERYVILLE, CA

  
	
  FENG, KAROLEEN

  	
   

  	
  EMERYVILLE, CA

  
	
  FITZSIMMONS, WILLIAM L

  	
   

  	
  EMERYVILLE, CA

  
	
  FLYNN, MICHAEL A

  	
   

  	
  EMERYVILLE, CA

  
	
  FOOS (FIFIELD), KATHARINE R

  	
   

  	
  EMERYVILLE, CA

  
	
  GALDAMEZ, KARINA

  	
   

  	
  EMERYVILLE, CA

  
	
  GAZERANI, MASOUD

  	
   

  	
  EMERYVILLE, CA

  
	
  GILBERT, RICHARD

  	
   

  	
  EMERYVILLE, CA

  
	
  GREEN, JAMES R

  	
   

  	
  EMERYVILLE, CA

  
	
  GRIFFIN, PAUL

  	
   

  	
  EMERYVILLE, CA

  
	
  GROVES, CHRISTOPHER E

  	
   

  	
  EMERYVILLE, CA

  
	
  HAMASAKI, SHOGO

  	
   

  	
  EMERYVILLE, CA

  
	
  HAMM, WILLIAM G

  	
   

  	
  EMERYVILLE, CA

  
	
  HANSEN, NOEL F

  	
   

  	
  EMERYVILLE, CA

  
	
  HARRIS, ROBERT G

  	
   

  	
  EMERYVILLE, CA

  
	
  HATCHETT, KIM L

  	
   

  	
  EMERYVILLE, CA

  
	
  HEIN, JOYCE L

  	
   

  	
  EMERYVILLE, CA

  
	
  HENRY, LWUHAN

  	
   

  	
  EMERYVILLE, CA

  
	
  HERNANDEZ, LILIANA

  	
   

  	
  EMERYVILLE, CA

  
	
  HINES, FRANCES M

  	
   

  	
  EMERYVILLE, CA

  
	
  HUANG, KELVIN

  	
   

  	
  EMERYVILLE, CA

  
	
  HUTCHISON, CLAUDE B

  	
   

  	
  EMERYVILLE, CA

  
	
  ILIZALITURRI, JULISSA F

  	
   

  	
  EMERYVILLE, CA

  
	
  INGBERMAN, DANIEL E

  	
   

  	
  EMERYVILLE, CA

  
	
  ISOM, TONYA L

  	
   

  	
  EMERYVILLE, CA

  
	
  JENKINS, ALISON

  	
   

  	
  EMERYVILLE, CA

  
	
  JORDE, THOMAS

  	
   

  	
  EMERYVILLE, CA

  
	
  KAN, KEVIN L

  	
   

  	
  EMERYVILLE, CA

  
	
  KANG, ROGER J

  	
   

  	
  EMERYVILLE, CA

  
	
  KANG, YONG-JOO

  	
   

  	
  EMERYVILLE, CA

  
	
  KOS, ALEXANDER I

  	
   

  	
  EMERYVILLE, CA

  
	
  KUAN, CHI-YI

  	
   

  	
  EMERYVILLE, CA

  
	
  LANGENFELD, JAMES

  	
   

  	
  EMERYVILLE, CA

  
	
  LASHELL, LINDSAY D

  	
   

  	
  EMERYVILLE, CA

  
	
  LEDERMAN, JAIMEE

  	
   

  	
  EMERYVILLE, CA

  
	
  LEI, SUZANNA

  	
   

  	
  EMERYVILLE, CA

  
	
  LENT, LORI S

  	
   

  	
  EMERYVILLE, CA

  
	
  LYCETT, SUEZ M

  	
   

  	
  EMERYVILLE, CA

  
	
  MAKLER, HARRY

  	
   

  	
  EMERYVILLE, CA

  
	
  MAZUMDAR, SUMON C

  	
   

  	
  EMERYVILLE, CA

  
	
  MCDERMOTT, ANN K

  	
   

  	
  EMERYVILLE, CA

  
	
  MCGRORY, MARY D

  	
   

  	
  EMERYVILLE, CA

  
	
  MCKEE, GREG J

  	
   

  	
  EMERYVILLE, CA

  
	
  MICHON, SEEMA

  	
   

  	
  EMERYVILLE, CA

  
	
  MISAKA, ANNE M

  	
   

  	
  EMERYVILLE, CA

  
	
  MORALES, RYAN

  	
   

  	
  EMERYVILLE, CA

  

 

 

	
  MOSLEY, REGINALD

  	
   

  	
  EMERYVILLE, CA

  
	
  MUIR, BONNIE K

  	
   

  	
  EMERYVILLE, CA

  
	
  NACH-TWEY, GREGORY J

  	
   

  	
  EMERYVILLE, CA

  
	
  NADEL, ERNEST

  	
   

  	
  EMERYVILLE, CA

  
	
  NORDBY, KELLY K

  	
   

  	
  EMERYVILLE, CA

  
	
  O’BRIEN, VINCENT E

  	
   

  	
  EMERYVILLE, CA

  
	
  O’NEILL, JACQUELINE

  	
   

  	
  EMERYVILLE, CA

  
	
  PLEATSIKAS, CHRISTOPHER

  	
   

  	
  EMERYVILLE, CA

  
	
  RANDLETT, THOMAS E

  	
   

  	
  EMERYVILLE, CA

  
	
  RASCHER, DANIEL A

  	
   

  	
  EMERYVILLE, CA

  
	
  RATLIFF, JAMES D

  	
   

  	
  EMERYVILLE, CA

  
	
  RAVAL, NETIKA R

  	
   

  	
  EMERYVILLE, CA

  
	
  REED, MELANIE

  	
   

  	
  EMERYVILLE, CA

  
	
  ROBINETT, JAMES

  	
   

  	
  EMERYVILLE, CA

  
	
  ROSE, JULIE

  	
   

  	
  EMERYVILLE, CA

  
	
  RUBINFELD, DANIEL L

  	
   

  	
  EMERYVILLE, CA

  
	
  SALINERO, SHELLEY R

  	
   

  	
  EMERYVILLE, CA

  
	
  SANDHU, PAUL

  	
   

  	
  EMERYVILLE, CA

  
	
  SCHIFF, ERIC T

  	
   

  	
  EMERYVILLE, CA

  
	
  SCHMIDT, RONALD H

  	
   

  	
  EMERYVILLE, CA

  
	
  SCHWARZ, ANDREW D

  	
   

  	
  EMERYVILLE, CA

  
	
  SHAH, TIKO

  	
   

  	
  EMERYVILLE, CA

  
	
  SHARABY, SARI

  	
   

  	
  EMERYVILLE, CA

  
	
  SHELLY, ERICH

  	
   

  	
  EMERYVILLE, CA

  
	
  SHERRY, EDWARD F

  	
   

  	
  EMERYVILLE, CA

  
	
  SPARKS, MICHELLE D

  	
   

  	
  EMERYVILLE, CA

  
	
  SPILLER, ADDY

  	
   

  	
  EMERYVILLE, CA

  
	
  SPILLER, PABLO T

  	
   

  	
  EMERYVILLE, CA

  
	
  ST. PETERS, LORI

  	
   

  	
  EMERYVILLE, CA

  
	
  STALDER, SHEILA

  	
   

  	
  EMERYVILLE, CA

  
	
  STUMP, DEBRA

  	
   

  	
  EMERYVILLE, CA

  
	
  SU, YINGTING

  	
   

  	
  EMERYVILLE, CA

  
	
  TATOS, TED

  	
   

  	
  EMERYVILLE, CA

  
	
  TEECE, DAVID J

  	
   

  	
  EMERYVILLE, CA

  
	
  TEISCH, ABIGAIL

  	
   

  	
  EMERYVILLE, CA

  
	
  TUTOR, JUDITH A

  	
   

  	
  EMERYVILLE, CA

  
	
  TYSON, LAURA D

  	
   

  	
  EMERYVILLE, CA

  
	
  UNNI, SANJAY

  	
   

  	
  EMERYVILLE, CA

  
	
  VERMA, AVINASH K

  	
   

  	
  EMERYVILLE, CA

  
	
  WEIXELMANN, JULIE

  	
   

  	
  EMERYVILLE, CA

  
	
  WILEY, KARLA

  	
   

  	
  EMERYVILLE, CA

  
	
  WILKINS, DENISE E

  	
   

  	
  EMERYVILLE, CA

  
	
  WILSON, CHERYL C

  	
   

  	
  EMERYVILLE, CA

  
	
  WINN RASNER, MIEMIE

  	
   

  	
  EMERYVILLE, CA

  
	
  WITTMANN, MARION

  	
   

  	
  EMERYVILLE, CA

  
	
  YOUNG, MEREDITH L

  	
   

  	
  EMERYVILLE, CA

  
	
  YU, ADAM

  	
   

  	
  EMERYVILLE, CA

  
	
  KELLER, CHAD

  	
   

  	
  EMERYVILLE, CA

  
	
  OLIVER, STEVE

  	
   

  	
  EMERYVILLE, CA

  
	
  ARON, DEBRA J

  	
   

  	
  EVANSTON, IL

  
	
  BARBETTA, VINCENZO E

  	
   

  	
  EVANSTON, IL

  
	
  BURNSTEIN, DAVID E

  	
   

  	
  EVANSTON, IL

  

 

 

	
  CORBETT, MICHAELYN C

  	
   

  	
  EVANSTON, IL

  
	
  DANIES, ANA C

  	
   

  	
  EVANSTON, IL

  
	
  FRANKEL, ALAN S

  	
   

  	
  EVANSTON, IL

  
	
  GREEN, GORDON R

  	
   

  	
  EVANSTON, IL

  
	
  GYFTEAS, PETER B

  	
   

  	
  EVANSTON, IL

  
	
  HOUMPAVLIS, SPIRO J

  	
   

  	
  EVANSTON, IL

  
	
  JAMES, LAURISSA L

  	
   

  	
  EVANSTON, IL

  
	
  JOHANSON, DAVID E

  	
   

  	
  EVANSTON, IL

  
	
  LI, WENQING

  	
   

  	
  EVANSTON, IL

  
	
  MCINTYRE, LAURA L

  	
   

  	
  EVANSTON, IL

  
	
  NEMETH, MADELINE M

  	
   

  	
  EVANSTON, IL

  
	
  PALMER, WILLIAM C

  	
   

  	
  EVANSTON, IL

  
	
  PAMPUSH, FRANK X

  	
   

  	
  EVANSTON, IL

  
	
  PANZAR, JOHN C

  	
   

  	
  EVANSTON, IL

  
	
  PHELPS, CURTIS M

  	
   

  	
  EVANSTON, IL

  
	
  ROHLMAN, ALISSA H

  	
   

  	
  EVANSTON, IL

  
	
  SCALISE, CRAIG T

  	
   

  	
  EVANSTON, IL

  
	
  TALBERT, NANCY L

  	
   

  	
  EVANSTON, IL

  
	
  WHITE, WILLIAM D

  	
   

  	
  EVANSTON, IL

  
	
  WILDMAN, STEVEN S

  	
   

  	
  EVANSTON, IL

  
	
  WILNER, BENJAMIN S

  	
   

  	
  EVANSTON, IL

  
	
  WISE, JEREMIAH

  	
   

  	
  EVANSTON, IL

  
	
  AARONSON, ROBIN H

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  AFFUSO, LUISA

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  BRAMLEY, CHANTELLE C

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  CANTWELL, JOHN A

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  DRIESENS, ANKE

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  GLANVILLE, JACOB A

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  GRINDLEY, PETER C

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  HALL, BRONWYN H

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  HINDLEY, BRIAN

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  MARTINIS, PANAGIOTIS

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  NEWBERRY, DAVID M

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  NORIEGA, RAQUEL R

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  PARR, MICHAEL F

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  SCARSI, GIAN CARLO

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  SIMMONDS, MATTHEW

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  SMITH, ANNA

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  WAVERMAN, LEONARD

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  WYNN, ANDREW

  	
   

  	
  LONDON, UK - CHANCERY EP

  
	
  YOUNG, ROBERT

  	
   

  	
  LONDON, UK - RICHMOND SDG

  
	
  BRODY, NEAL S

  	
   

  	
  LOS ANGELES, CA

  
	
  CAMERON, DUNCAN J

  	
   

  	
  LOS ANGELES, CA

  
	
  CARLSON, HENRY T

  	
   

  	
  LOS ANGELES, CA

  
	
  FRANKS, SCOTT G

  	
   

  	
  LOS ANGELES, CA

  
	
  FRUITS, ERIC A

  	
   

  	
  LOS ANGELES, CA

  
	
  LACKEY, DANIELLE A

  	
   

  	
  LOS ANGELES, CA

  
	
  MARTIN, ROBERT N

  	
   

  	
  LOS ANGELES, CA

  
	
  OWEN, MARY

  	
   

  	
  LOS ANGELES, CA

  
	
  PRICE, BRENNAN J

  	
   

  	
  LOS ANGELES, CA

  
	
  REILLY, THOMAS H

  	
   

  	
  LOS ANGELES, CA

  
	
  THORNTON, ANDREW

  	
   

  	
  LOS ANGELES, CA

  

 

 

	
  TOMLIN, JONATHAN T

  	
   

  	
  LOS ANGELES, CA

  
	
  WAZZAN, CHRISTOPHER P

  	
   

  	
  LOS ANGELES, CA

  
	
  ANTLE, RICK L

  	
   

  	
  NEW YORK-LECG

  
	
  BUBNA, AMIT

  	
   

  	
  NEW YORK-LECG

  
	
  CASTRO, IVAN J

  	
   

  	
  NEW YORK-LECG

  
	
  EINLOTH, JAMES T

  	
   

  	
  NEW YORK-LECG

  
	
  LICHTENBERG, FRANK R

  	
   

  	
  NEW YORK-LECG

  
	
  NALEBUFF, BARRY

  	
   

  	
  NEW YORK-LECG

  
	
  PRATHER, BREE A

  	
   

  	
  NEW YORK-LECG

  
	
  SCHEFFMAN, DAVID

  	
   

  	
  NEW YORK-LECG

  
	
  WINN, RICHARD M

  	
   

  	
  NEW YORK-LECG

  
	
  ADAMS, GREGORY D

  	
   

  	
  SALT LAKE CITY, UT

  
	
  BOUDREAUX, HEATHER L

  	
   

  	
  SALT LAKE CITY, UT

  
	
  KEARL, JAMES R

  	
   

  	
  SALT LAKE CITY, UT

  
	
  LOVERIDGE, BRANDON

  	
   

  	
  SALT LAKE CITY, UT

  
	
  RUESCH, DAVID

  	
   

  	
  SALT LAKE CITY, UT

  
	
  SEAVER, LAURELLEE

  	
   

  	
  SALT LAKE CITY, UT

  
	
  SYMKOVIAK, BRYAN

  	
   

  	
  SALT LAKE CITY, UT

  
	
  VANDRE, PETER A

  	
   

  	
  SALT LAKE CITY, UT

  
	
  WATERS, STEVEN M

  	
   

  	
  SALT LAKE CITY, UT

  
	
  AKEY, ROSEMARY

  	
   

  	
  SF, CA - BUSH ST WILK

  
	
  DANNER, CARL R

  	
   

  	
  SF, CA - BUSH ST WILK

  
	
  SCADDING, JOHN L

  	
   

  	
  SF, CA - BUSH ST WILK

  
	
  WILK, G. M

  	
   

  	
  SF, CA - BUSH ST WILK

  
	
  ALEXANDROFF, ALAN S

  	
   

  	
  TORONTO (EP), CANADA

  
	
  ANGINER, DENIZ D

  	
   

  	
  TORONTO (EP), CANADA

  
	
  BAZILIAUSKAS, ANDRIUS

  	
   

  	
  TORONTO (EP), CANADA

  
	
  CAO, HOANG V

  	
   

  	
  TORONTO (EP), CANADA

  
	
  CHAN, KAI L

  	
   

  	
  TORONTO (EP), CANADA

  
	
  FUSS, MELVYN A

  	
   

  	
  TORONTO (EP), CANADA

  
	
  KONGMANY, PHETSAMONE

  	
   

  	
  TORONTO (EP), CANADA

  
	
  RIVARD, BRIAN A

  	
   

  	
  TORONTO (EP), CANADA

  
	
  WARE, ROGER

  	
   

  	
  TORONTO (EP), CANADA

  
	
  BACON, GAIL

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BAKER, LAURIE D

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BECKER, BRIAN C

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BONER, LINDA H

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BREMSER, ALBERT W

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BROOKS, JAMES G

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BROWN, CHARLOTTE L

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BRYANT, JEFFREY C

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BUDD, ROBERT K

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BURMESTER, KIRSTEN

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BURNS, DENISE M

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BURTIS, MICHELLE M

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BUSSONE, TINA M

  	
   

  	
  WASH, DC - M ST LECG

  
	
  CANTOR, ROBIN A

  	
   

  	
  WASH, DC - M ST LECG

  
	
  CASTALDO, CHRISTIAN J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  CHAKRABORTY, APURBA K

  	
   

  	
  WASH, DC - M ST LECG

  
	
  COLEMAN, MARY T

  	
   

  	
  WASH, DC - M ST LECG

  
	
  COOK, JOSEPH P

  	
   

  	
  WASH, DC - M ST LECG

  
	
  CORNDORF, ADAM B

  	
   

  	
  WASH, DC - M ST LECG

  

 

 

	
  COX, TIMOTHY E

  	
   

  	
  WASH, DC - M ST LECG

  
	
  DECKER, ALICE E

  	
   

  	
  WASH, DC - M ST LECG

  
	
  DEVINE, ELIZABETH J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  DURAND, BENOIT

  	
   

  	
  WASH, DC - M ST LECG

  
	
  FESSELMEYER, ERIC JR C

  	
   

  	
  WASH, DC - M ST LECG

  
	
  FLYNN,GAIL T

  	
   

  	
  WASH, DC - M ST LECG

  
	
  FORD, GARY T

  	
   

  	
  WASH, DC - M ST LECG

  
	
  GARY, KAREEMUS N

  	
   

  	
  WASH, DC - M ST LECG

  
	
  GILREATH, KIM

  	
   

  	
  WASH, DC - M ST LECG

  
	
  GLUECK, MARK J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  GUNASEKERA, SHIVANTHI N

  	
   

  	
  WASH, DC - M ST LECG

  
	
  GUTZLER, GARY L

  	
   

  	
  WASH, DC - M ST LECG

  
	
  HAMAL, CLIFF W

  	
   

  	
  WASH, DC - M ST LECG

  
	
  HOREWITZ, JESSICA B

  	
   

  	
  WASH, DC - M ST LECG

  
	
  JACKSON, CHARLES L

  	
   

  	
  WASH, DC - M ST LECG

  
	
  JUST, RICHARD E

  	
   

  	
  WASH, DC - M ST LECG

  
	
  KAHWATY, HENRY J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  KAPLAN, DAVID P

  	
   

  	
  WASH, DC - M ST LECG

  
	
  KHADKA, RAM B

  	
   

  	
  WASH, DC - M ST LECG

  
	
  LAU,YAU YEUNG J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  LEE, JERMAO A

  	
   

  	
  WASH, DC - M ST LECG

  
	
  LEE, KATHERINE J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  MCNALLY, LISA

  	
   

  	
  WASH, DC - M ST LECG

  
	
  MEHTA, ANIK D

  	
   

  	
  WASH, DC - M ST LECG

  
	
  MEYER, JAMI

  	
   

  	
  WASH, DC - M ST LECG

  
	
  MODY, NISHA M

  	
   

  	
  WASH, DC - M ST LECG

  
	
  NATH,ANKU

  	
   

  	
  WASH, DC - M ST LECG

  
	
  NEFF, BRADLEY J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  NIEBERDING, JAMES F

  	
   

  	
  WASH, DC - M ST LECG

  
	
  PACE, JOE D

  	
   

  	
  WASH, DC - M ST LECG

  
	
  PAINTER, DAVID T

  	
   

  	
  WASH, DC - M ST LECG

  
	
  PETERMAN, JOHN L

  	
   

  	
  WASH, DC - M ST LECG

  
	
  PFLANZ, EMILY G

  	
   

  	
  WASH, DC - M ST LECG

  
	
  POPE, PHYLLIS P

  	
   

  	
  WASH, DC - M ST LECG

  
	
  RODENRYS, KATHLEEN J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  SCHINK, GEORGE R

  	
   

  	
  WASH, DC - M ST LECG

  
	
  SCOPPETTONE, MARC R

  	
   

  	
  WASH, DC - M ST LECG

  
	
  SHARMA, ARUN

  	
   

  	
  WASH, DC - M ST LECG

  
	
  SHEA, PAUL J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  SMITH, SHARON K

  	
   

  	
  WASH, DC - M ST LECG

  
	
  SUTER, JORDAN F

  	
   

  	
  WASH, DC - M ST LECG

  
	
  TEGENFELOT, MARK H

  	
   

  	
  WASH, DC - M ST LECG

  
	
  TUOHY, STEPHEN W

  	
   

  	
  WASH, DC - M ST LECG

  
	
  VEILLETTE, MATHIEU

  	
   

  	
  WASH, DC - M ST LECG

  
	
  WARD, APRIL J

  	
   

  	
  WASH, DC - M ST LECG

  
	
  WATERSTREDT, SCOTT M

  	
   

  	
  WASH, DC - M ST LECG

  
	
  WEISKOPF,DAVID A

  	
   

  	
  WASH, DC - M ST LECG

  
	
  WILSON, JAMES F

  	
   

  	
  WASH, DC - M ST LECG

  
	
  WROTEN, PAMELA M

  	
   

  	
  WASH, DC - M ST LECG

  
	
  YAO, DENNIS A

  	
   

  	
  WASH, DC - M ST LECG

  
	
  YEOH, MELISSA

  	
   

  	
  WASH, DC - M ST LECG

  
	
  YERMAN, ROBERT N

  	
   

  	
  WASH, DC - M ST LECG

  

 

 

	
  YOUNG, REGINA Y

  	
   

  	
  WASH, DC - M ST LECG

  
	
  BARKER, GEORGE R

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  CHEAH, CHEE-WAH

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  CHENG, WEN LI

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  GLASS, HAYDEN K

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  HANSEN, CARL

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  IRWIN, TIMOTHY C

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  JERA, NATHAN BROCK

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  KLUS, RITA

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  KNOX, DANIEL J

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  LAU, STEPHEN

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  LYNCH, COLIN

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  MURRAY, KIERAN

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  RUSSELL, ADELLE

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  SCOTT, GRAHAM C

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  SMELT, SIMON

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  WATT, JANN

  	
   

  	
  WELLINGTON, NEW ZEALAND

  
	
  YAMSHIKOVA, MARSHA

  	
   

  	
  WELLINGTON, NEW ZEALAND

  

 

 

Schedule

2.3 Excluded Employees

 

The Leased Employees set forth
on Annex A of the Transition Services Agreement.

 

 

Schedule

3.1 Purchase Price Adjustments

 

Vacation Accrual paid on September 29, 2000 of $190,380.70

 

Buyer expenses incurred by Seller of $99,011.00

 

Expert “5% Program” accrual of $481,790.95

 

 

LECG Vacation Accrual Payout

 

	
   

  	
   

  	
  Employee Name

  	
   

  	
  Accrued

  	
   

  	
  Transferred

  	
   

  	
  Paid Hrs

  	
   

  	
  Rate

  	
   

  	
  Paid $

  	
   

  
	
  855

  	
   

  	
  Akemann, Michael

  	
   

  	
  170.11

  	
   

  	
  10.00

  	
   

  	
  160.11

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  954

  	
   

  	
  Alzaro, Nafez J

  	
   

  	
  66.99

  	
   

  	
  —

  	
   

  	
  66.99

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  900

  	
   

  	
  Becker, Brian

  	
   

  	
  67.02

  	
   

  	
  —

  	
   

  	
  67.02

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  597

  	
   

  	
  Budd, Robert

  	
   

  	
  197.98

  	
   

  	
  80.00

  	
   

  	
  117.98

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  817

  	
   

  	
  Carison, Henry T

  	
   

  	
  145.92

  	
   

  	
  75.92

  	
   

  	
  70.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  499

  	
   

  	
  Camall, Michael

  	
   

  	
  144.73

  	
   

  	
  64.73

  	
   

  	
  80.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  747

  	
   

  	
  Franks, Scott

  	
   

  	
  125.14

  	
   

  	
  40.00

  	
   

  	
  85.14

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  980

  	
   

  	
  Galdamez, Karina

  	
   

  	
  13.34

  	
   

  	
  —

  	
   

  	
  13.34

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105537

  	
   

  	
  Gilreath, Kim

  	
   

  	
  17.96

  	
   

  	
  —

  	
   

  	
  17.96

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  463

  	
   

  	
  Groves, Chris

  	
   

  	
  127.53

  	
   

  	
  16.00

  	
   

  	
  111.53

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  481

  	
   

  	
  Hickman, Brenda

  	
   

  	
  20.29

  	
   

  	
  7.50

  	
   

  	
  12.79

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  995

  	
   

  	
  Hines, Frances

  	
   

  	
  43.96

  	
   

  	
  16.00

  	
   

  	
  27.96

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  907

  	
   

  	
  Horewitz, Jessica B

  	
   

  	
  126.33

  	
   

  	
  40.00

  	
   

  	
  86.33

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105329

  	
   

  	
  Jenkins, Alison

  	
   

  	
  40.00

  	
   

  	
  24.00

  	
   

  	
  16.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  491

  	
   

  	
  Martin, Robert

  	
   

  	
  5?.94

  	
   

  	
  40.00

  	
   

  	
  16.94

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  789

  	
   

  	
  Mazumdar, Sumon C

  	
   

  	
  276.94

  	
   

  	
  —

  	
   

  	
  276.94

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  829

  	
   

  	
  Mosly, Reginald

  	
   

  	
  80.00

  	
   

  	
  —

  	
   

  	
  80.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105162

  	
   

  	
  Najvar, David J

  	
   

  	
  86.26

  	
   

  	
  40.00

  	
   

  	
  28.26

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  859

  	
   

  	
  Neff, Bradley J

  	
   

  	
  80.00

  	
   

  	
  32.00

  	
   

  	
  48.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105313

  	
   

  	
  Maness, Robert

  	
   

  	
  1?9.4?

  	
   

  	
  60.00

  	
   

  	
  109.46

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  462

  	
   

  	
  Noffsker, Brad

  	
   

  	
  182.71

  	
   

  	
  102.71

  	
   

  	
  80.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  851

  	
   

  	
  Nordby, Kelly

  	
   

  	
  31.90

  	
   

  	
  —

  	
   

  	
  31.90

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105124

  	
   

  	
  Pampush, Francis

  	
   

  	
  72.16

  	
   

  	
  50.00

  	
   

  	
  22.18

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  882

  	
   

  	
  Pflanz, Emily

  	
   

  	
  147.10

  	
   

  	
  120.00

  	
   

  	
  27.10

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  606

  	
   

  	
  Phelps, Curtis

  	
   

  	
  140.12

  	
   

  	
  —

  	
   

  	
  140.12

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  779

  	
   

  	
  Pope, Phyllis

  	
   

  	
  9.00

  	
   

  	
  —

  	
   

  	
  9.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  703

  	
   

  	
  Ratliff, Jim

  	
   

  	
  134.59

  	
   

  	
  24.00

  	
   

  	
  110.59

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  714

  	
   

  	
  Reusch, David

  	
   

  	
  12.31

  	
   

  	
  2.31

  	
   

  	
  10.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  393

  	
   

  	
  Rascher, Daniel

  	
   

  	
  130.45

  	
   

  	
  —

  	
   

  	
  130.45

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105600

  	
   

  	
  Rodenrys, Kathleen

  	
   

  	
  293.55

  	
   

  	
  80.00

  	
   

  	
  213.55

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105164

  	
   

  	
  Sandhu., Paul

  	
   

  	
  80.00

  	
   

  	
  —

  	
   

  	
  80.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  612

  	
   

  	
  Schmidt, Ronald H

  	
   

  	
  105.25

  	
   

  	
  40.00

  	
   

  	
  65.25

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  670

  	
   

  	
  Schwaiz, Andrew D

  	
   

  	
  201.00

  	
   

  	
  —

  	
   

  	
  201.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  365

  	
   

  	
  Sherry, Edward F

  	
   

  	
  415.42

  	
   

  	
  —

  	
   

  	
  415.42

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  923

  	
   

  	
  Stalder, Sheila

  	
   

  	
  57.14

  	
   

  	
  —

  	
   

  	
  57.14

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  934

  	
   

  	
  Suter, Jordan

  	
   

  	
  69.58

  	
   

  	
  32.00

  	
   

  	
  37.56

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  959

  	
   

  	
  Thomas, Yondell

  	
   

  	
  33.50

  	
   

  	
  —

  	
   

  	
  33.50

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  753

  	
   

  	
  Tomlin, Jon

  	
   

  	
  5?.9?

  	
   

  	
  —

  	
   

  	
  56.96

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  818

  	
   

  	
  Tuohy, Stephen

  	
   

  	
  178.84

  	
   

  	
  80.00

  	
   

  	
  98.84

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  105401

  	
   

  	
  Unni, Sanjay

  	
   

  	
  40.00

  	
   

  	
  —

  	
   

  	
  40.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  804

  	
   

  	
  Vandre, Peter

  	
   

  	
  85.18

  	
   

  	
  25.00

  	
   

  	
  40.18

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  737

  	
   

  	
  Verma, Avinash

  	
   

  	
  190.08

  	
   

  	
  —

  	
   

  	
  190.08

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  539

  	
   

  	
  Waters, Steven

  	
   

  	
  138.91

  	
   

  	
  38.91

  	
   

  	
  100.00

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  743

  	
   

  	
  Wazzan, Christopher

  	
   

  	
  88.88

  	
   

  	
  —

  	
   

  	
  86.66

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  897

  	
   

  	
  Weiskopf, David A

  	
   

  	
  115.29

  	
   

  	
  16.00

  	
   

  	
  99.29

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  948

  	
   

  	
  Whaley, Karen

  	
   

  	
  50.45

  	
   

  	
  10.00

  	
   

  	
  40.46

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  958

  	
   

  	
  Wood, Anitra

  	
   

  	
  25.38

  	
   

  	
  —

  	
   

  	
  25.38

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  5,102.44

  	
   

  	
  1,167.08

  	
   

  	
  3,935.38

  	
   

  	
   

  	
   

  	
  190,380.70

  	
   

  

 

Navigant Consulting, Inc. Confidential

 

9/28/2000

Prepared by Linda Rejmenczak

 

1

 

Increases

 

	
  Name

  	
   

  	
  SSN

  	
   

  	
  Current
  Salary

  	
   

  	
  New Salary

  	
   

  	
  Effective
  Date

  	
   

  	
  Amount of
  Charge

  	
   

  
	
  Hein, Joyce

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Huang, Kelvin

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Shelly, Erich

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Hanaan, Noel

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Sparks, Shelly

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Kongmarty, Phetsamone

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Can, Vu Hoang

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Anginer, Dentz

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
  [***]

  	
   

  

 

2

 

New
Hires

 

LaShell, Linday

 

[***]

 

 

account 1130001, LECG prepaid expense

 

	
  Date paid

  	
   

  	
  Invoice

  	
   

  	
  Vendor

  	
   

  	
  Description

  	
   

  	
  Amount

  	
   

  
	
  27-Sep

  	
   

  	
  18

  	
   

  	
  Turner Construction

  	
   

  	
  NYC office buildout

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  20-Sep

  	
   

  	
  901900

  	
   

  	
  The Trucker’s Friend

  	
   

  	
  Database

  	
   

  	
  [***]

  	
   

  
	
  12-Sep

  	
   

  	
  c812

  	
   

  	
  Empire Office

  	
   

  	
  Shelving, NYC buildout

  	
   

  	
  [***]

  	
   

  
	
  18-Sep

  	
   

  	
  144753

  	
   

  	
  Miller Gove Northbres

  	
   

  	
  Air travel-Mimi Petrilich

  	
   

  	
  [***]

  	
   

  
	
  14-Sep

  	
   

  	
  15463

  	
   

  	
  Express Signs

  	
   

  	
  Install new logo

  	
   

  	
  [***]

  	
   

  
	
  14-Sep

  	
   

  	
   

  	
   

  	
  Tuscany

  	
   

  	
  Christmas party deposit

  	
   

  	
  [***]

  	
   

  
	
  5-Sep

  	
   

  	
  evrgrnoo 01

  	
   

  	
  Voice Pro

  	
   

  	
  Phone system support through ?/01

  	
   

  	
  [***]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  $

  	
  [***]

  	
   

  

 

 

Economics And Policy Group

5% Program - Accrued and Cash Basis

Through August 31, 2000

 

NOTE : Net of FY 1999 Refund

 

	
  ID

  	
   

  	
  Name

  	
   

  	
  5% Program

  Accrued_Amt

  	
   

  	
  5% Program

  Cash_Amt

  	
   

  
	
  GDA

  	
   

  	
  Adams, Greg

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  DSA

  	
   

  	
  Andrade, David F.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  DJA

  	
   

  	
  Aron, Debra

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  DFB

  	
   

  	
  Babbel, David F.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  MXB

  	
   

  	
  Bajaj, Mukesh

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  NSB

  	
   

  	
  Brody, Neal S.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  RAC

  	
   

  	
  Cantor, Robin

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  CGC

  	
   

  	
  Cardilli, Carlo

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  JDC

  	
   

  	
  Chandley, John

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  MTC

  	
   

  	
  Coleman, Mary

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  CRD

  	
   

  	
  Danner, Carl

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  RJE

  	
   

  	
  Epstein, Roy J.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  MAF

  	
   

  	
  Flynn, Michael A.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  ASF

  	
   

  	
  Frankel, Alan

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  RJG

  	
   

  	
  Gilbert, Richard J.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  MJG

  	
   

  	
  Glueck, Mark J.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  WGH

  	
   

  	
  Hamm, William

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  RGH

  	
   

  	
  Harris, Robert G.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  TMJ

  	
   

  	
  Jorde, Tom

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  HJK

  	
   

  	
  Kahwaty, Henry

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  DMK

  	
   

  	
  Kasper, Dan

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  CJM

  	
   

  	
  McCann, Craig

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  VEO

  	
   

  	
  O’Brien, Vince

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  DTS

  	
   

  	
  Scheffman, David T.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  GRS

  	
   

  	
  Schnik, George

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  DJT

  	
   

  	
  Teece, David

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  SNW

  	
   

  	
  Wiggins, Steven N.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  GMW

  	
   

  	
  Wilk, Mitchell

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  RNY

  	
   

  	
  Yerman, Robert N.

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  RBY

  	
   

  	
  Young, Robert

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  [***]

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
  $

  	
  [***]

  	
   

  	
  $

  	
  481,790.96

  	
   

  

 

 

Schedule 3.2

 

LECG – PURCHASE PRICE ALLOCATION

 

BASED ON LECG
SEPTEMBER FORECAST NET ASSET STATEMENT

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  FORM 8594

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CASH

  	
   

  	
   

  	
   

  	
  (350,000

  	
  )

  	
  100,000

  	
   

  	
  CLASS I

  	
   

  
	
  UNBILLED A/R

  	
   

  	
  9,500,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALLOWANCE

  	
   

  	
  (1,800,000

  	
  )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A/R

  	
   

  	
  24,000,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ALLOWANCE

  	
   

  	
  (1,400,000

  	
  )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
  30,300,000

  	
   

  	
  30,300,000

  	
   

  	
  CLASS III

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PREPAIDS

  	
   

  	
   

  	
   

  	
  440,000

  	
   

  	
  440,000

  	
   

  	
  CLASS III

  	
   

  
	
  OTHER CURRENT ASSETS

  	
   

  	
   

  	
   

  	
  1,744,000

  	
   

  	
  1,619,000

  	
   

  	
  CLASS III

  	
   

  
	
  FIXED ASSETS

  	
   

  	
  9,400,000

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ACCUM DEPR

  	
   

  	
  (6,450,000

  	
  )

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NET

  	
   

  	
   

  	
   

  	
  2,950,000

  	
   

  	
  2,950,000

  	
   

  	
  CLASS III

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  OTHER ASSETS

  	
   

  	
   

  	
   

  	
  492,000

  	
   

  	
  167,000

  	
   

  	
  CLASS III

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL ASSETS

  	
   

  	
   

  	
   

  	
  35,576,000

  	
   

  	
  35,576,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  INTANGIBLES

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  9,424,000

  	
   

  	
  CLASS VI &V

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  TOTAL

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  45,000,000

  	
   

  	
  FORM 8594

  	
   

  

 

 

Schedule 3.3 (a) Post-Closing Departed
Employees

 

 

	
  Name

  	
   

  	
  Sourced

  Billings

  	
   

  	
  Expert

  Billings

  	
   

  	
  Total Revenue

  by Expert

  	
   

  	
  Annualized

  Total Revenue

  	
   

  	
  Discount

  Factor

  	
   

  	
  Discount

  Amount

  	
   

  
	
  Teece, David

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Jorde, Tom

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Harris , Robert G.

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Scheffman, David T

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Langenfeld , James

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
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  Rausser, Gordon

  	
   

  	
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  Kaplan, David P

  	
   

  	
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  Gilbert , Richard J.

  	
   

  	
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  Hamm , William

  	
   

  	
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  Rubinfeld, Daniel

  	
   

  	
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  Babbel , David F.

  	
   

  	
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  Kasper , Dan

  	
   

  	
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  Bajaj, Mukesh

  	
   

  	
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  Yerman , Robert N.

  	
   

  	
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  Hogan, William

  	
   

  	
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  Randlett, Thomas

  	
   

  	
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  Glueck, Mark J.

  	
   

  	
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  Wechsler, Andrew

  	
   

  	
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  Kearl , Jim

  	
   

  	
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  Aron , Debra

  	
   

  	
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  Aaronson, Robin

  	
   

  	
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  Burtis, Michelle

  	
   

  	
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  Frankel , Alan

  	
   

  	
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  Schink , George

  	
   

  	
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  Palmer, William C.

  	
   

  	
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  Spiller , Pablo

  	
   

  	
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  Pace, Joe

  	
   

  	
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  O’ Brien, Vince

  	
   

  	
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  Hamal, Cliff

  	
   

  	
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  Shapiro, Alan

  	
   

  	
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  Fitzsimmons, Bill

  	
   

  	
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  Salant , David

  	
   

  	
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  Waverman , Leonard

  	
   

  	
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  Wiggins , Steven N.

  	
   

  	
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  Coleman, Mary

  	
   

  	
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  Abdala, Manuel

  	
   

  	
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  Cameron , Duncan

  	
   

  	
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  Harvey, Scott M.

  	
   

  	
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  Kahwaty, Henry

  	
   

  	
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  Retained Law Firm

  	
   

  	
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  McCann, Craig

  	
   

  	
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  Pope, Susan

  	
   

  	
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  Alexandroff , Alan S.

  	
   

  	
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  Peterman , John

  	
   

  	
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  Hoenn , Tom

  	
   

  	
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  Ingberman, Dan

  	
   

  	
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  Epstein, Roy J.

  	
   

  	
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  Cadwalsder, Mike

  	
   

  	
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  Chandley, John

  	
   

  	
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  Name

  	
   

  	
  Sourced

  Billings

  	
   

  	
  Expert

  Billings

  	
   

  	
  Total Revenue

  by Expert

  	
   

  	
  Annualized

  Total Revenue

  	
   

  	
  Discount

  Factor

  	
   

  	
  Discount

  Amount

  	
   

  
	
  Painter , David T

  	
   

  	
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  McLeod , Phil

  	
   

  	
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  Adams, Greg

  	
   

  	
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  Nachtwey , Greg

  	
   

  	
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  Cantor, Robin

  	
   

  	
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  Sidak, J. Gregor

  	
   

  	
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  Dranove , David

  	
   

  	
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  Barker , George

  	
   

  	
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  Just , Richard E.

  	
   

  	
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  Newman, Mathew

  	
   

  	
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  Newbery , David

  	
   

  	
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  Hutchison, Claude

  	
   

  	
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  Wilk, Mitchell

  	
   

  	
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  Syzmanski , Stefan

  	
   

  	
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  Cardilli, Carlo

  	
   

  	
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  Tyson , Laura D.

  	
   

  	
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  Wildman , Steven S.

  	
   

  	
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  Glennie, John

  	
   

  	
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  Ware, Roger

  	
   

  	
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  Clowery, Grant M.

  	
   

  	
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  Young, Robert

  	
   

  	
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  Oswal, Laura

  	
   

  	
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  McConnell, John J.

  	
   

  	
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  Farrell , Joseph

  	
   

  	
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  Flynn, Michael A.

  	
   

  	
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  Danner, Carl

  	
   

  	
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  Nadel , Ernie

  	
   

  	
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  Wilson, James F.

  	
   

  	
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  Sarin, Atulya

  	
   

  	
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  McCullough, Gerard

  	
   

  	
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  Fargeix, Andre

  	
   

  	
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  Fuss , Melvyn

  	
   

  	
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  Hekman, John S

  	
   

  	
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  Miller, George

  	
   

  	
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  Ladan, Richard A.

  	
   

  	
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  Ford, Gary

  	
   

  	
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  Pleatsikas, Chris

  	
   

  	
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  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
															

 

 

Schedule 3.3 (b) Departed Employees

 

	
  Name

  	
   

  	
  Sourced

  Billings

  	
   

  	
  Expert

  Billings

  	
   

  	
  Total Revenue

  by Expert

  	
   

  	
  Annualized

  Total Revenue

  	
   

  	
  Discount

  Factor

  	
   

  	
  Discount

  Amount

  	
   

  
	
  Rausser, Gordon

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Babbel , David F.

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Kearl , Jim

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  
	
  Adams, Greg

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  	
  [***]

  	
   

  

 

 

 

Schedule

5.3 Subsidiaries

 

LECG Limited (UK) (includes branch offices in France and Belgium)

 

Law and Economics Consulting Group, Ltd. (New Zealand)

 

 

Schedule

5.4 Financial Statements

 

 

LECG, INC. AND SUBSIDIARIES

 

Consolidated Financial Statements

 

December 31, 1999

 

(With Independent Auditors’ Report Thereon)

 

 

LECG, INC. AND SUBSIDIARIES

INDEX TO THE FINANCIAL STATEMENTS

 

	
  Independent Auditors’ Report

  
	
  Consolidated Statement of Net Assets as of
  December 31, 1999

  
	
  Consolidated Statement of Operations for
  the year ended December 31, 1999

  
	
  Consolidated Statement of Cash Flows for
  the year ended December 31, 1999

  
	
  Notes to Consolidated Financial Statements

  

 

1

 

Independent Auditors’ Report

 

The Board of Directors

Navigant Consulting, Inc.

 

We have audited the accompanying consolidated statement of net assets
of LECG, Inc. and subsidiaries (the Company), a wholly owned subsidiary of
Navigant Consulting, Inc. (the Parent), as of December 31, 1999 and the related
consolidated statements of operations and cash flows for the year then ended.  These consolidated financial statements are
the responsibility of the Company’s management.  Our responsibility is to express an opinion on the consolidated
financial statements based on our audit.

 

We conducted our audit in accordance with generally accepted auditing
standards.  Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement.  An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements.  An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation.  We believe that our audit
provides a reasonable basis for our opinion.

 

The accompanying consolidated financial statements were prepared on the
basis of presentation described in note 2. 
The accompanying consolidated financial statements include allocations
for common services provided by the Parent and are not necessarily indicative
of the financial position, results of operations and cash flows had the Company
operated as a stand-alone entity.

 

In our opinion, the consolidated financial statements referred to above
present fairly, in all material respects, the net assets of LECG, Inc. and
subsidiaries, a wholly owned subsidiary of Navigant Consulting, Inc., as of
December 31, 1999, and the results of their operations and their cash flows for
the year then ended, as prepared on the basis described in note 2, in
conformity with generally accepted accounting principles.

 

 

Chicago, Illinois

June 20, 2000

 

2

 

LECG,
INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF NET ASSETS

DECEMBER 31, 1999

(In thousands)

 

	
  ASSETS

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  
	
  Cash

  	
   

  	
  $

  	
  (64

  	
  )

  
	
  Accounts receivable, net

  	
   

  	
  25,547

  	
   

  
	
  Prepaid expenses

  	
   

  	
  469

  	
   

  
	
  Deferred income taxes

  	
   

  	
  430

  	
   

  
	
  Other current assets

  	
   

  	
  1,201

  	
   

  
	
  Total current assets

  	
   

  	
  27,583

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Property and equipment, net

  	
   

  	
  4,064

  	
   

  
	
  Deferred income taxes

  	
   

  	
  143

  	
   

  
	
  Other assets

  	
   

  	
  334

  	
   

  
	
  Total assets

  	
   

  	
  $

  	
  32,124

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES AND NET ASSETS

  	
   

  	
   

  	
   

  
	
  Current liabilities:

  	
   

  	
   

  	
   

  
	
  Accounts payable and accrued liabilities

  	
   

  	
  $

  	
  735

  	
   

  
	
  Accrued expert and project origination fees

  	
   

  	
  14,968

  	
   

  
	
  Accrued compensation

  	
   

  	
  3,040

  	
   

  
	
  Deferred revenue

  	
   

  	
  785

  	
   

  
	
  Other current liabilities

  	
   

  	
  642

  	
   

  
	
  Total current liabilities

  	
   

  	
  20,170

  	
   

  
	
  Net assets

  	
   

  	
  $

  	
  11,954

  	
   

  

 

See accompanying notes to the consolidated
financial statements.

 

3

 

LECG,
INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE YEAR ENDED DECEMBER 31, 1999

(In thousands)

 

	
  Revenues:

  	
   

  	
   

  	
   

  
	
  Project personnel

  	
   

  	
  $

  	
  54,943

  	
   

  
	
  Experts

  	
   

  	
  17,964

  	
   

  
	
  Billable expenses

  	
   

  	
  3,582

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Total revenues

  	
   

  	
  76,489

  	
   

  
	
  Cost-of services:

  	
   

  	
   

  	
   

  
	
  Project personnel

  	
   

  	
  21,557

  	
   

  
	
  Expert and project origination fees

  	
   

  	
  24,821

  	
   

  
	
  Other project expenses

  	
   

  	
  4,463

  	
   

  
	
  Total cost of services

  	
   

  	
  50,841

  	
   

  
	
  Gross profit

  	
   

  	
  25,648

  	
   

  
	
  General and administrative expenses

  	
   

  	
  15,262

  	
   

  
	
  NCI corporate services allocation

  	
   

  	
  1,732

  	
   

  
	
  Operating income

  	
   

  	
  8,654

  	
   

  
	
  Other income:

  	
   

  	
   

  	
   

  
	
  Interest income

  	
   

  	
  (95

  	
  )

  
	
  Other, net

  	
   

  	
  (81

  	
  )

  
	
  Total other income

  	
   

  	
  (176

  	
  )

  
	
  Income before income tax expense

  	
   

  	
  8,830

  	
   

  
	
  Income tax expense

  	
   

  	
  3,744

  	
   

  
	
  Net income

  	
   

  	
  $

  	
  5,086

  	
   

  

 

See accompanying notes to the consolidated
financial statements.

 

4

 

LECG,
INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 1999

(In thousands)

 

	
  Cash flows from operating activities:

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  $

  	
  5,086

  	
   

  
	
  Adjustments to reconcile net income to net
  cash provided by operating activities:

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  2,236

  	
   

  
	
  Provision for bad debts

  	
   

  	
  1,950

  	
   

  
	
  Deferred income taxes

  	
   

  	
  (1,362

  	
  )

  
	
  Changes in assets and liabilities:

  	
   

  	
   

  	
   

  
	
  Accounts receivable

  	
   

  	
  1,805

  	
   

  
	
  Prepaid expenses

  	
   

  	
  303

  	
   

  
	
  Other current assets

  	
   

  	
  (185

  	
  )

  
	
  Accounts payable and accrued liabilities

  	
   

  	
  328

  	
   

  
	
  Accrued expert and project origination fees

  	
   

  	
  944

  	
   

  
	
  Accrued compensation

  	
   

  	
  2,050

  	
   

  
	
  Deferred revenue

  	
   

  	
  (52

  	
  )

  
	
  Other current liabilities

  	
   

  	
  (185

  	
  )

  
	
  Net cash provided by operating activities

  	
   

  	
  12,918

  	
   

  
	
  Cash flows from investing activities:

  	
   

  	
   

  	
   

  
	
  Purchase of property and equipment

  	
   

  	
  (845

  	
  )

  
	
  Other, net

  	
   

  	
  (70

  	
  )

  
	
  Net cash used in investing activities

  	
   

  	
  (915

  	
  )

  
	
  Cash flows from financing activities:

  	
   

  	
   

  	
   

  
	
  Net transfers to NCI

  	
   

  	
  (16,732

  	
  )

  
	
   

  	
   

  	
   

  	
   

  
	
  Net decrease in cash

  	
   

  	
  (4,729

  	
  )

  
	
  Cash at beginning of period

  	
   

  	
  4,665

  	
   

  
	
  Cash at end of period

  	
   

  	
  $

  	
  (64

  	
  )

  

 

See accompanying notes to consolidated
financial statements.

 

5

 

LECG,
INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL
STATEMENTS

 

1. DESCRIPTION OF BUSINESS

 

The accompanying consolidated financial statements present the
consolidated financial position and results of operations of LECG, Inc. (“LECG”
or the “Company”), a California corporation formed in 1988, and its wholly
owned subsidiaries: LECG Limited (United Kingdom) and LECG Limited (also known
as Law and Economics Consulting Group, Limited), (New Zealand).

 

LECG is a provider of economic consulting services in matters related
to complex litigation, regulation, public policy and strategic management and
derives its revenues almost exclusively therefrom.  LECG provides its economic consulting services to a broad client
base, which includes national governments, regulatory agencies, and development
institutes and agencies in the United States and abroad.  Services are provided by academics, industry
leaders and former high-level government officials (Experts), who are supported
by professional staff.  LECG has offices
in the United States in California, Washington, D.C., Illinois, New York,
Texas, Utah and Massachusetts, as well as Toronto, Canada; Wellington, New
Zealand; London, United Kingdom; Brussels, Belgium; and Toulouse, France.

 

LECG is a wholly owned subsidiary of Navigant Consulting, Inc. (“NCI”
or the “Parent”).  NCI is pursuing a
possible sale of the business and operations that now comprise LECG, and the
associated assets and liabilities of such businesses and operations (the
“Separation”).

 

LECG and NCI will enter into, on or prior to the Separation, certain
agreements governing various interim and ongoing relationships between LECG and
NCI after the completion of the anticipated Separation.

 

2. BASIS OF PRESENTATION

 

The consolidated financial statements reflect the results of
operations, financial position and changes in cash flows of the net assets of
LECG as a separate entity for the period presented.  The consolidated financial statements have been prepared on a historical
basis.  Intercompany balances with NCI
have been excluded from the consolidated statement of net assets.

 

The accompanying financial statements include general and
administrative expenses which have been assigned to LECG by NCI on a specific
identification basis.  Additionally,
LECG shares certain administrative functions, employees and other resources
with NCI.  Allocations from NCI for
indirect expenses for such shared resources have been made on a proportional
cost allocation method based on fee revenues. 
Management believes these allocations are reasonable; however, they may
not necessarily reflect LECG’s costs in the future or what they would have been
had LECG been a separate, stand-alone entity during the period presented.

 

The allowance for doubtful accounts has been allocated based on the NCI
reserve methodology excluding accounts receivable which have associated accrued
expert and project origination fees.

 

6

 

3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Use of Estimates

 

The preparation of financial statements in conformity with generally
accepted accounting principles requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and disclosure
of contingent liabilities at the date of the financial statements and the
reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those
estimates.

 

Property and Equipment

 

Property and equipment are recorded at cost.  Depreciation is computed using the straight-line method based on
the estimated useful lives, ranging from three to forty years, of the various
classes of property and equipment. 
Amortization of leasehold improvements is computed over the shorter of
the lease term or the estimated useful life of the asset.

 

Fair Value of Financial Instruments

 

The Company considers the recorded value of its financial assets and
liabilities, which consist primarily of accounts receivable and accrued expenses,
to approximate the fair value of the respective assets and liabilities at
December 31, 1999.

 

Revenue Recognition

 

The Company recognizes revenues as the related services are
provided.  Services are provided by
academics, recognized industry leaders and former high-level government
officials (“Experts”) who are supported by a professional staff, most of whom
have Ph.D.s or advanced degrees in economics, finance or related disciplines
(“Project Personnel”).  The Experts
include those who provide services to the Company on an exclusive basis
(“Principals”) and on a non-exclusive basis (“Affiliates”).  As of December 31, 1999, the Company had 41
Principals and approximately 45 Affiliates. 
In most cases, the Principals and Affiliates execute agreements with the
Company.  The agreements with the
Principals provide for the Principal to consult exclusively for the Company in
consideration for consulting fees determined by the time billed by the
Principal and actually collected by the Company, as well as project origination
fees for work secured or managed by the Principal.  The agreements with the Affiliates are substantially the same as
the agreements with the Principals except they do not include an exclusivity
provision and provide slightly reduced fees to the Affiliates.  The agreements with the Principals are
terminable at will and do not restrict competition with the Company following
termination.  From time to time, the
Company also engages experts not otherwise associated with the Company to work
on a particular matter.

 

Direct project expenses, which are billable to clients, are recognized
as revenue as the associated services are provided.

 

Certain contracts are accounted for on the percentage of completion
method whereby revenues are recognized based upon costs incurred in relation to
total estimated costs at completion. 
Provision is made for the entire amount of estimated losses, if any, at
the time when they are known.

 

7

 

Project Personnel Costs

 

LECG expenses the cost of project personnel as incurred.  Project personnel costs consist primarily of
salaries, incentive compensation and employee benefits for LECG personnel
available for client assignments.  As of
December 31, 1999, the Company’s Project Personnel consisted of approximately
200 employees.

 

Income Taxes

 

Historically, LECG’s results have been included in NCI’s consolidated
federal and state income tax returns. 
The income tax provision is calculated and deferred tax assets and
liabilities are recorded as if LECG had operated as an independent entity.  Income taxes are accounted for in accordance
with the asset and liability method. 
Deferred tax assets and liabilities are recognized for the future tax
consequences attributable to differences between the financial statement
carrying amounts of existing assets and liabilities and their respective tax
bases.  Deferred tax assets and
liabilities are measured using enacted tax rates expected to apply to taxable
income in the years in which those temporary differences are expected to be
recovered or settled.  The effect on
deferred tax assets and liabilities of a change in tax rates is recognized in
income in the period that includes the enactment date.

 

The Company is included in NCI’s consolidated federal and state returns
as a member of an affiliated group.  The
provision for income taxes is made pursuant to an intercompany tax sharing
agreement between the Company and NCI wherein taxes are computed as though the
Company filed its own tax return.  The
associated tax liability has been recorded through the intercompany account and
therefore has been excluded from the liability section of the consolidated
statement of net assets.

 

Foreign Currency Translation

 

The balance sheets of the Company’s foreign subsidiaries are translated
into U.S.  dollars using the year-end
exchange rate, and sales and expenses are translated using the average exchange
rate for the year.

 

4. ACCOUNTS RECEIVABLE

 

The components of accounts receivable as of December 31, 1999 were as
follows (in thousands):

 

	
  Billed amounts

  	
   

  	
  $

  	
  19,433

  	
   

  
	
  Engagements in process

  	
   

  	
  7,705

  	
   

  
	
  Allowance for uncollectible accounts

  	
   

  	
  (1,591

  	
  )

  
	
   

  	
   

  	
  $

  	
  25,547

  	
   

  

 

Engagements in process represent balances accrued by the Company for
services that have been performed but have not been billed to the customer.

 

8

 

5. PROPERTY AND EQUIPMENT

 

Property and equipment, at cost, as of December 31, 1999 consisted of
(in thousands):

 

	
  Furniture, fixtures and equipment

  	
   

  	
  $

  	
  1,979

  	
   

  
	
  Computers and telecommunications equipment

  	
   

  	
  5,236

  	
   

  
	
  Leasehold improvements

  	
   

  	
  2,148

  	
   

  
	
   

  	
   

  	
  9,363

  	
   

  
	
  Less: accumulated depreciation and
  amortization

  	
   

  	
  (5,299

  	
  )

  
	
   

  	
   

  	
  $

  	
  4,064

  	
   

  

 

Based upon a review of the Company’s long-lived assets, the Company
recorded a non-cash charge to depreciation expense of $.8 million in 1999.  This charge reflects the write-down of a
portion of the recorded asset values of certain computer equipment and
software.  No additional assets were
deemed to be impaired.

 

6. LEASE COMMITMENTS

 

The Company leases its office facilities and certain equipment under
operating lease arrangements which expire at various dates through 2008.  The Company leases office facilities under
noncancelable operating leases which include fixed or minimum payments plus, in
some cases, scheduled base rent increases over the term of the lease and
additional rents based on the Consumer Price Index.  Certain leases provide for monthly payments of real estate taxes,
insurance and other operating expenses applicable to the property.  In addition, the Company leases equipment
under noncancelable operating leases. 
Future minimum annual lease payments, for the years subsequent to 1999
and in the aggregate, are as follows (in thousands):

 

	
  Year Ending December 31,

  	
   

  	
  Amount

  	
   

  
	
  2000

  	
   

  	
  $

  	
  2,724

  	
   

  
	
  2001

  	
   

  	
  2,759

  	
   

  
	
  2002

  	
   

  	
  2,140

  	
   

  
	
  2003

  	
   

  	
  1,005

  	
   

  
	
  2004

  	
   

  	
  503

  	
   

  
	
  Thereafter

  	
   

  	
  1,904

  	
   

  
	
   

  	
   

  	
  $

  	
  11,035

  	
   

  

 

Rent expense for operating leases entered into by the Company and
charged to operations amounted to $3.5 million for the year ended December 31,
1999.

 

9

 

7. INCOME TAX EXPENSE

 

Income tax expense for the year ended December 31, 1999 consists of the
following (in thousands):

 

	
  Federal:

  	
   

  	
   

  	
   

  
	
  Current

  	
   

  	
  $

  	
  4,288

  	
   

  
	
  Deferred

  	
   

  	
  (1,106

  	
  )

  
	
  Total

  	
   

  	
  3,182

  	
   

  
	
  State:

  	
   

  	
   

  	
   

  
	
  Current

  	
   

  	
  1,008

  	
   

  
	
  Deferred

  	
   

  	
  (256

  	
  )

  
	
  Total

  	
   

  	
  752

  	
   

  
	
  Foreign

  	
   

  	
  (190

  	
  )

  
	
  Total federal, state and foreign income tax
  expense

  	
   

  	
  $

  	
  3,744

  	
   

  

 

Income tax expense for the year ended December 31, 1999 differs from
the amounts estimated by applying the statutory income tax rates to income
before income tax expense as follows:

 

	
  Federal tax at statutory rate

  	
   

  	
  35.00

  	
  %

  
	
  State tax at statutory rate, net of federal
  tax benefits

  	
   

  	
  4.90

  	
   

  
	
  Effect of other non-deductible expenses

  	
   

  	
  0.70

  	
   

  
	
  Other

  	
   

  	
  1.80

  	
   

  
	
   

  	
   

  	
  42.40

  	
  %

  

 

Deferred income taxes result from temporary differences between years
in the recognition of certain expense items for income tax and financial
reporting purposes.  The source and
income tax effect of these differences as of December 31, 1999 are as follows
(in thousands):

 

	
  Deferred tax assets:

  	
   

  	
   

  	
   

  
	
  Allowance for uncollectible receivables

  	
   

  	
  441

  	
   

  
	
  Book depreciation in excess of tax
  depreciation

  	
   

  	
  169

  	
   

  
	
  Total deferred tax assets

  	
   

  	
  610

  	
   

  
	
  Deferred tax liabilities:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  State income taxes

  	
   

  	
  $

  	
  (37

  	
  )

  
	
  Net deferred tax assets

  	
   

  	
  $

  	
  573

  	
   

  

 

The Company has not recorded a valuation allowance as management
believes it is more likely than not that the net deferred tax asset is
recoverable through the results of future operations.

 

10

 

8. EMPLOYEE BENEFIT PLANS

 

NCI maintains profit sharing and savings plans for eligible LECG
employees.  Eligible employees may
contribute a portion of their compensation to their respective operating
subsidiary’s plan.  NCI, as sponsor of
the plans, uses independent third parties to provide administrative services to
the plans.  NCI has the right to
terminate the plans at any time.  NCI
contributions charged to operations for the benefit of LECG employees under the
plans were $.2 million in the year ended December 31, 1999.

 

9. LITIGATION

 

The Company has been a party to
various lawsuits and claims in the ordinary course of business from time to
time.  While the outcome of those
lawsuits or claims cannot be predicted with certainty, management does not
believe that any of those lawsuits or claims will have a material adverse
effect on the Company.

 

11

 

LECG, INC. AND SUBSIDIARIES

 

Consolidated Financial Statements

 

April 30, 2000

 

(With Independent Auditors’ Review Report
Thereon)

 

 

LECG, INC. 
AND SUBSIDIARIES 

INDEX

 

 

	
  Independent
  Auditors’ Review Report

  
	
  Unaudited
  Consolidated Statement of Net Assets as of April 30, 2000

  
	
  Unaudited Consolidated Statement of
  Operations for the four months ended April 30, 2000

  
	
  Unaudited Consolidated Statement of Cash
  Flows for the four months ended April 30, 2000

  
	
  Notes to Unaudited Consolidated Financial
  Statements

  

 

1

 

Independent Accountants’ Review Report

 

The Board of Directors

Navigant Consulting, Inc.:

 

We have reviewed the accompanying consolidated statement of net assets
of LECG, Inc. and subsidiaries, a wholly owned subsidiary of Navigant
Consulting, Inc. (the Parent), as of April 30, 2000, and the related
consolidated statements of operations and cash flows for the four month period
then ended, in accordance with Statements on Standards for Accounting and
Review Services issued by the American Institute of Certified Public
Accountants.  All information included
in these consolidated financial statements is the representation of the
management of LECG, Inc.

A review consists principally of inquiries of Company personnel and
analytical procedures applied to financial data.  It is substantially less in scope than an audit in accordance
with generally accepted auditing standards, the objective of which is the
expression of an opinion regarding the financial statements taken as a
whole.  Accordingly, we do not express
such an opinion.

The accompanying consolidated financial statements were prepared on the
basis of presentation described in note 2. 
The accompanying consolidated financial statements include allocations
for common services provided by the Parent and are not necessarily indicative
of the financial position, results of operations and cash flows had the Company
operated as a stand-alone entity.

Based on our reviews, we are not aware of any material modifications
that should be made to the accompanying consolidated financial statements in
order for them to be in conformity with generally accepted accounting
principles, on the basis described in note 2.

 

 

Chicago, Illinois

June 20, 2000

 

2

 

LECG,
INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF NET ASSETS

APRIL 30, 2000

(In thousands)

 

 

	
  ASSETS

  	
   

  	
   

  	
   

  
	
  Current assets:

  	
   

  	
   

  	
   

  
	
  Cash

  	
   

  	
  $

  	
  (573

  	
  )

  
	
  Accounts receivable, net

  	
   

  	
  29,361

  	
   

  
	
  Prepaid expenses

  	
   

  	
  443

  	
   

  
	
  Deferred income taxes

  	
   

  	
  534

  	
   

  
	
  Other current assets

  	
   

  	
  598

  	
   

  
	
  Total current assets

  	
   

  	
  30,363

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Property and equipment, net

  	
   

  	
  3,145

  	
   

  
	
  Deferred income taxes

  	
   

  	
  167

  	
   

  
	
  Other assets

  	
   

  	
  332

  	
   

  
	
  Total assets

  	
   

  	
  $

  	
  34,007

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  LIABILITIES AND NET ASSETS

  	
   

  	
   

  	
   

  
	
  Current liabilities:

  	
   

  	
   

  	
   

  
	
  Accounts payable and accrued liabilities

  	
   

  	
  $

  	
  420

  	
   

  
	
  Accrued expert and project origination fees

  	
   

  	
  13,320

  	
   

  
	
  Accrued compensation

  	
   

  	
  1,294

  	
   

  
	
  Deferred revenue

  	
   

  	
  672

  	
   

  
	
  Other current liabilities

  	
   

  	
  356

  	
   

  
	
  Total current liabilities

  	
   

  	
  16,062

  	
   

  
	
  Net assets

  	
   

  	
  $

  	
  17,945

  	
   

  

 

See accompanying notes to the consolidated
financial statements.

 

3

 

LECG, INC. AND
SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

FOR THE FOUR MONTHS ENDED APRIL 30, 2000

(In thousands)

 

 

	
  Revenues:

  	
   

  	
   

  	
   

  
	
  Project personnel

  	
   

  	
  $

  	
  16,770

  	
   

  
	
  Experts

  	
   

  	
  6,669

  	
   

  
	
  Billable expenses

  	
   

  	
  1,612

  	
   

  
	
  Total revenues

  	
   

  	
  25,051

  	
   

  
	
  Cost of services:

  	
   

  	
   

  	
   

  
	
  Project personnel

  	
   

  	
  7,652

  	
   

  
	
  Expert and project origination fees

  	
   

  	
  8,784

  	
   

  
	
  Other project expenses

  	
   

  	
  1,807

  	
   

  
	
  Total cost of services

  	
   

  	
  18,243

  	
   

  
	
  Gross profit

  	
   

  	
  6,808

  	
   

  
	
  General and administrative expenses

  	
   

  	
  3,658

  	
   

  
	
  NCI corporate services allocation

  	
   

  	
  962

  	
   

  
	
  Operating income

  	
   

  	
  2,188

  	
   

  
	
  Other expense (income):

  	
   

  	
   

  	
   

  
	
  Interest expense

  	
   

  	
  5

  	
   

  
	
  Other, net

  	
   

  	
  (30

  	
  )

  
	
  Total other expense (income)

  	
   

  	
  (25

  	
  )

  
	
  Income before income tax expense

  	
   

  	
  2,213

  	
   

  
	
  Income tax expense

  	
   

  	
  938

  	
   

  
	
  Net income

  	
   

  	
  $

  	
  1,275

  	
   

  

 

See accompanying notes to the consolidated
financial statements.

 

4

 

LECG, INC. AND
SUBSIDIARIES

CONSOLIDATED STATEMENT OF CASH FLOWS

FOR THE FOUR MONTHS ENDED APRIL 30, 2000

(In thousands)

 

 

	
  Cash flows from operating activities:

  	
   

  	
   

  	
   

  
	
  Net income

  	
   

  	
  $

  	
  1,275

  	
   

  
	
  Adjustments to reconcile net income to net
  cash used in operating activities:

  	
   

  	
   

  	
   

  
	
  Depreciation and amortization

  	
   

  	
  573

  	
   

  
	
  Provision for bad debts

  	
   

  	
  160

  	
   

  
	
  Deferred income taxes

  	
   

  	
  (129

  	
  )

  
	
  Changes in assets and liabilities:

  	
   

  	
   

  	
   

  
	
  Accounts receivable

  	
   

  	
  (3,975

  	
  )

  
	
  Prepaid expenses

  	
   

  	
  26

  	
   

  
	
  Other current assets

  	
   

  	
  603

  	
   

  
	
  Accounts payable and accrued liabilities

  	
   

  	
  (315

  	
  )

  
	
  Accrued expert and project origination fees

  	
   

  	
  (1,648

  	
  )

  
	
  Accrued compensation

  	
   

  	
  (1,746

  	
  )

  
	
  Deferred revenue

  	
   

  	
  (113

  	
  )

  
	
  Other current liabilities

  	
   

  	
  (285

  	
  )

  
	
  Net cash used in operating activities

  	
   

  	
  (5,574

  	
  )

  
	
  Cash flows from investing activities:

  	
   

  	
   

  	
   

  
	
  Purchase of property and equipment

  	
   

  	
  (147

  	
  )

  
	
  Other, net

  	
   

  	
  1

  	
   

  
	
  Net cash used in investing activities

  	
   

  	
  (146

  	
  )

  
	
  Cash flows from financing activities:

  	
   

  	
   

  	
   

  
	
  Net transfers from NCI

  	
   

  	
  5,210

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Net decrease in cash

  	
   

  	
  (510

  	
  )

  
	
  Cash at beginning of period

  	
   

  	
  (64

  	
  )

  
	
  Cash at end of period

  	
   

  	
  $

  	
  (574

  	
  )

  

 

See accompanying notes to consolidated
financial statements.

 

5

 

LECG, INC. AND SUBSIDIARIES

NOTES
TO UNAUDITED CONSOLIDATED
FINANCIAL STATEMENTS

 

1.
DESCRIPTION OF BUSINESS

 

The accompanying
unaudited interim consolidated financial statements present the consolidated
financial position and results of operations of LECG, Inc. (“LECG” or the
“Company”), a California corporation formed in 1988, and its wholly owned
subsidiaries; LECG Limited (United Kingdom) and LECG Limited (also known as Law
and Economics Consulting Group, Limited), (New Zealand).

 

LECG is a
provider of economic consulting services in matters related to complex
litigation, regulation, public policy and strategic management and derives its
revenues almost exclusively therefrom. LECG provides its economic consulting
services to a broad client base, which includes national governments,
regulatory agencies, and development institutes and agencies in the United
States and abroad. Services are provided by academics, industry leaders and
former high-level government officials (Experts), who are supported by
professional staff. LECG has offices in the United States in California,
Washington, D.C., Illinois, New York, Texas, Utah and Massachusetts, as well as
Toronto, Canada; Wellington, New Zealand, London, United Kingdom; Brussels,
Belgium; and Toulouse, France.

 

LECG is a
wholly owned subsidiary of Navigant Consulting, Inc. (“NCI” or the “Parent”).
NCI is pursuing a possible sale of the business and operations that now
comprise LECG, and the associated assets and liabilities of such businesses and
operations (the “Separation”).

 

LECG and NCI
will enter into, on or prior to the Separation, certain agreements governing
various interim and ongoing relationships between LECG and NCI after the
completion of the anticipated Separation.

 

2.
BASIS OF PRESENTATION

 

The
consolidated financial statements reflect the results of operations, financial
position and changes in cash flows of the net assets of LECG as a separate
entity for the period presented. The consolidated financial statements have
been prepared on a historical basis. Intercompany balances with NCI have been
excluded from the consolidated statement of net assets.

 

These financial
statements do not include all of the information and note disclosures required
by generally accepted accounting principles. The information furnished herein
includes all adjustments, consisting of normal recurring adjustments except
where indicated, which are, in the opinion of management, necessary for a fair
presentation of results for these interim periods.

 

The results of operations for
the four months ended April 30, 2000 are not necessarily indicative of the
results to be expected for the entire year ending December 31, 2000.

 

These
financial statements should be read in conjunction with the Company’s audited
consolidated financial statements and notes thereto as of and for the year
ended December 31, 1999.

 

6

 

The accompanying financial
statements include general and administrative expenses which have been assigned
to LECG by NCI on a specific identification basis. Additionally, LECG shares
certain administrative functions, employees and other resources with NCI.
Allocations from NCI for indirect expenses for such shared resources have been
made primarily on a proportional cost allocation method based on fee revenues.
Management believes these allocations are reasonable; however, they may not
necessarily reflect LECG’s costs in the future or what they would have been had
it been a separate, stand-alone entity during the period presented.

 

The allowance
for doubtful accounts has been allocated based on the NCI reserve methodology
excluding accounts receivable which have associated accrued expert and project
origination fees.

 

7

 

Schedule

5.9 Employee Benefit Plans

 

	
  Coverage &

  Provider

  	
   

  	
  Policy
  Number

  
	
   

  	
   

  	
   

  
	
  MEDICAL

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BLUE CROSS/

  BLUE SHIELD OF

  ILLINOIS

  	
   

  	
  PPO – 084352

  POS – 071030

  International - 084365

  
	
   

  	
   

  	
   

  
	
  DENTAL

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  DELTA DENTAL

  	
   

  	
  2084

  
	
   

  	
   

  	
   

  
	
  LIFE/AD&D, LTD & STD

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FORTIS BENEFITS

  	
   

  	
  Life &
  LTD-4027369

  STD - 1000248

  
	
   

  	
   

  	
   

  
	
  VISION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  VISION SERVICE PLAN

  	
   

  	
  12101877

  
	
   

  	
   

  	
   

  
	
  VOLUNTARY LIFE/AD&D

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  FORTIS BENEFITS

  	
   

  	
  100-1009906

  
	
   

  	
   

  	
   

  
	
  FLEX PLAN

  	
   

  	
  D97702

  
	
   

  	
   

  	
   

  
	
  CERIDIAN BENEFIT SERVICES

  	
   

  	
   

  

 

Eligibility

 

Employees who work 30 hours per week or more are eligible for coverage
in the following plans on the first of the month following their hire date:

 

Medical Insurance

 

Medical insurance is provided through Blue
Cross/Blue Shield of Illinois under a PPO (Preferred Provider
Organization) plan to all eligible Navigant Consulting employees. BlueChoice (a
Point of Service plan) is also offered to Navigant Consulting employees who
live in California.

 

 

Highlights of the PPO plan
include:

 

•                  Network
of providers: a broad network of doctors and hospitals throughout the
country and network hospitals internationally

•                  Deductible:
$250 individual, $500 family

•                  Coverage:
90% coverage when you use network providers; 70% out-of-network

•                  Co-pay:
a $10 office visit co-pay at network doctors

•                  Drug
card: a $5 generic/$10 brand-name prescription drug co-pay at retail
pharmacies

•                  Mail-order
prescription drugs: 90-day supply for maintenance drugs, including oral
contraceptives; $5 co-pay

•                  Lifetime
benefit: unlimited lifetime coverage

 

Highlights of
the BlueChoice (POS) plan (California only) include:

 

•                  Network of
providers: a broad network of doctors and hospitals throughout the country
and network hospitals internationally. You must select a Primary Care Physician
(PCP) for yourself and covered dependents.

•                  Deductible:
$0

•                  Inpatient
Hospital: $50 co-pay then 100%

•                  Coverage:
90% coverage when you your network provider; 70% out-of-network

•                  Co-pay: a
$5 office visit co-pay at network ; 70% (50% well care) out-of-network

•                  Drug card:
a $5 generic/$10 brand-name prescription drug co-pay at retail pharmacies

•                  Mail-order
prescription drugs: 90-day supply for maintenance drugs, including oral
contraceptives; $5 generic

•                  Lifetime
benefit: unlimited lifetime coverage

 

Directory of
providers: Employees can obtain the most current information about
participating providers by calling 1-800-810-BLUE (2583) or checking their
website at www.bluecares.com/bluecard. (For the POS plan call 1-800-424-6521 or
www.blueshieldca.com.)

 

Employee Medical Premium Costs

Quality
medical and dental insurance is expensive in the U.S. today; yet, it is very
important to us that employees are able to secure such coverage at reasonable
costs. Navigant Consulting, Inc. will pay a significant portion of the total
cost to insure employees, but asks employees to contribute a share of the cost
on the following basis.

 

 

	
   

  	
   

  	
  PPO Plan

  	
   

  	
  POS Plan
  (CA only)

  	
   

  
	
   

  	
   

  	
  (per month)

  	
   

  	
  (per month)

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Employee

  	
   

  	
  $

  	
  16.00

  	
   

  	
  $

  	
  15.00

  	
   

  
	
  Employee + 1

  	
   

  	
  $

  	
  110.00

  	
   

  	
  $

  	
  90.00

  	
   

  
	
  Family

  	
   

  	
  $

  	
  210.00

  	
   

  	
  $

  	
  201.00

  	
   

  

 

Dental
Insurance

 

The dental insurance program
provided through Delta Dental
covers services of a dentist of your choice. Highlights of the dental
program include:

 

•                  Deductible:    $50 individual/$150 family (waived for
preventive work)

•                  Coverage:      100% for preventive work

80% for basic restorative work*

50% for major restorative work**

 

*                          coverage is 90% if using a
Delta Preferred Option Network dentist

**                   coverage is 60% if using a Delta
Preferred Option Network dentist

50% for orthodontia to a maximum lifetime payment of $1,000 per
dependent child

•                    Calendar
year maximum: $1,500 per covered person

 

Employee Dental Premium Costs

The cost per
month to employees who elect dental coverage are as follows:

 

	
   

  	
   

  	
  Dental

  	
   

  
	
   

  	
   

  	
  (per
  month)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Employee

  	
   

  	
  $

  	
  2.20

  	
   

  
	
  Employee + 1

  	
   

  	
  $

  	
  17.60

  	
   

  
	
  Family

  	
   

  	
  $

  	
  35.20

  	
   

  

 

Identification Cards

 

Employees who
elect coverage under the medical and/or dental plan will receive identification
cards at their home within 30 days.

 

Vision Insurance

 

Vision
insurance provided through Vision Service
Plan (VSP) offers coverage for eye exams, lenses and frames through
an extensive national network of

 

 

providers. You can obtain the
most current provider information by checking out VSP’s website at www.vsp.com.
(Use “VSP” as the “Doctor Network ID”.) The plan also provides allowances for
non-network doctors.

 

Highlights of the vision
program include:

 

•                  100%
coverage for eye exams (in network) once every 12 months after a $10 co-pay

•                  100%
coverage for lenses (every 12 months) after a $25 co-pay

•                  $125
allowance for contact lenses in lieu of spectacle lenses and frame (every 12
months)

•                  100%
coverage for frames from an approved selection (every 24 months)

•                  Discounts
on PRK and Lasik surgery are available through contracted surgery centers.

 

Employee Vision Premium Costs

 

The cost per
month to employees who elect vision coverage are as follows:

 

	
   

  	
   

  	
  Vision

  	
   

  
	
   

  	
   

  	
  (per
  month)

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Employee

  	
   

  	
  $

  	
  8.00

  	
   

  
	
  Employee + 1

  	
   

  	
  $

  	
  12.00

  	
   

  
	
  Family

  	
   

  	
  $

  	
  22.00

  	
   

  

 

Medical
and Dental Cafeteria Features

 

Premiums for healthcare
insurance will be deducted from your paycheck on a pre-tax basis; in other
words, medical, dental, and vision premiums will not be taxable to you.

 

Employees who have coverage
under another medical and/or dental plan may choose to waive coverage under the
Navigant Consulting program. Proof of other coverage will be requested. These
employees will be entitled to receive a monthly payment of $73 (medical) and
$10 (dental) for coverage they waive.

 

Flexible
Spending Accounts

 

Employees may elect to
participate in the Health Care and/or Dependent Care Flexible Spending
Accounts, which allow contributions to be made on a pre-tax basis from an
employee’s paycheck. The Health Care account is used to reimburse participants
for healthcare expenses incurred on or after the employee’s participation date
which will not be reimbursed through a medical, dental, or vision plan. The
Dependent Care account is used to reimburse participants for eligible dependent
day care expenses incurred on or after the employee’s participation date. The
maximum plan year contribution amount is $3,500 (health care account) and
$5,000 (dependent care account).

 

 

Long-Term
Disability (LTD) Insurance

 

Employees who become disabled
following a 90-day waiting period may be eligible to receive a long-term
disability benefit of 60% of the total of their basic monthly salary, plus an
average of the last 24 months’ of their Navigant Consulting, Inc. annual
incentive bonus, to a maximum of $15,000 per month. LTD insurance, provided
through Fortis Benefits, is offered at no cost to the employee.

 

To eliminate the tax
implications of receiving a fully taxable LTD benefit payment, employees may
elect to pay the monthly LTD premium on an after-tax basis. The monthly premium
amount is $.24 per $100 of monthly salary to a maximum of $25,000 monthly
salary.

 

Basic
Life and Accidental Death and Dismemberment (AD&D) Insurance

 

Navigant Consulting provides
eligible employees with life and AD&D insurance in an amount equal to the
total of their basic annual salary plus the average of the last 24 months’ of
their Navigant Consulting, Inc. annual incentive bonus to a maximum benefit of
$500,000. This coverage, provided through Fortis Benefits, is offered at no
cost to the employee. Employees are asked to name a beneficiary on the
“Benefits Enrollment and Change Form.”

 

Voluntary
Life and Accidental Death and Dismemberment (AD&D) Insurance

 

In addition to company-paid
basic life insurance, employees may purchase up to $750,000 of life insurance
and up to $500,000 in AD&D insurance for themselves, as well as additional
life insurance for their spouse and dependent children. Premiums are payroll
deducted on an after-tax basis and depend on the age of the covered person and
amount of coverage elected. This coverage, provided through Fortis Benefits, is
portable, meaning you may continue the policy even if you leave the Company.

 

401(k)
Saving Plan

 

Eligible employees may elect to
contribute up to 15% of their compensation on a pre-tax basis, subject to IRS
limitations, into the Company’s 401(k) plan. A dollar for dollar company match
of up to 3% of a participant’s eligible compensation based on the employee’s
401(k) election is made per pay period. The maximum company match for 2000 is
$5,100. Enrollment is held the month prior to each calendar year quarter.

 

 

Employee
Stock Purchase Plan

 

Eligible employees may elect to
purchase Navigant Consulting, Inc. (stock symbol NCI) stock on a quarterly
basis through the Employee Stock Purchase Plan.  The employee may elect to contribute up to 15% of their salary
that will then be used to purchase the Company’s stock on a quarterly
basis.  The stock purchase price is
determined each quarter as follows:  the
lower of the closing price of the
stock on the first day of the quarter and the last day of the quarter, less a
15% employee discount.  Enrollment is
held the month prior to each calendar year quarter.

 

Employee
Assistance Program (EAP)

 

The Employee Assistance Program
(EAP) offers a confidential problem-solving resource on a variety of situations
and topics to employees and their immediate family members.  EAP counselors are available 24 hours per
day, seven days a week through a toll-free number.  Enhanced work/life services, which include legal consultation,
budget and financial counseling, referrals for child and adult care programs,
and timesavers (personal needs, health and wellness, and pet care) are also
available through the EAP.

 

Benefits
Continuation (COBRA)

 

If an employee or a dependent
covered under Navigant Consulting’s group health plans loses coverage as a
result of a Qualifying Event (termination of employment, reduction of hours
worked, retirement, divorce or legal separation, death, entitlement to
Medicare, or ceasing to qualify as a dependent under the plan), continuation of
the group health plan coverage will be offered under the Federal Consolidated
Omnibus Budget

 

 

Schedule

5.11 Personal Property

 

None

 

 

Schedule

8.4 Consents

 

None

 

 

Schedule

10.1 Shareholder Litigation

 

Claims against Parent made by
Chandler Street and Charles Grimes

 

Actions brought by or on behalf
of Gordon Rausser by reason of (or arising in part out of) the Parent’s alleged
refusal to allow Mr. Rausser to sell certain restricted shares of the Parent’s
common stock in 1998 and 1999

 

Actions brought by or on behalf
of Gordon Rausser against any Buyer Group Member if such action is brought (i)
as a counterclaim to any action brought by or on behalf of Parent against
Gordon Rausser or (ii) otherwise within one (1) year after any action brought
by or on behalf of Parent against Gordon Rausser.

 

Please also see attached

 

 

1.                                       Stearns
v. Navigant Consulting, Inc., et al., 99 C 7617

 

2.                                       Friedman
v. Navigant Consulting, Inc., et al., 99 C 7633

 

3.                                       Levitin
v. Navigant Consulting, Inc., et al., 99 C 7664

 

4.                                       Bell
v. Navigant Consulting, Inc., et al., 99 C 7668

 

5.                                       Greb
v. Navigant Consulting, Inc., et al., 99 C 7669

 

6.                                       Piven
v. Navigant Consulting, Inc., et al., 99 C 7674

 

7.                                       Ladig
v. Navigant Consulting, Inc., et al., 99 C 7684

 

8.                                       Applebaum
v. Navigant Consulting, Inc., et al., 99 C 7686

 

9.                                       Crown
Holdings v. Navigant Consulting, Inc., et al., 99 C 99 C 7754

 

10.                                 Mulvihill
v. Navigant Consulting, Inc., et al., 99 C 7836

 

11.                                 Morrison
v. Navigant Consulting, Inc., et al., 99 C 7868

 

12.                                 Rosenwald
v. Navigant Consulting, Inc., et al., 99 C 7951

 

13.                                 Abdullah
v. Navigant Consulting, Inc., et al., 99 C 7970

 

14.                                 Mirsky
v. Navigant Consulting, Inc., et al., 99 C 7984

 

15.                                 Klar
v. Navigant Consulting, Inc., et al., 99 C 8020

 

16.                                 Martin
v. Navigant Consulting, Inc., et al., 99 C 8162

 

17.                                 Pasternak
v. Navigant Consulting, Inc., et al., 99 C 8187

 

18.                                 McGuire
v. Navigant Consulting, Inc., et al., 99 C 8207

 

19.                                 Cleenput
v. Navigant Consulting, Inc., et al., 00 C 0’26

 

20.                                 Neumann
v. Navigant Consulting, Inc., et al., 00 C 0379

 

21.                                 Amin
v. Navigant Consulting, Inc., et al., 00 C 0448 (pro se filing)

 

 

Exhibit A

 

 

INSTRUMENT OF ASSIGNMENT

 

Instrument of
Assignment dated September 29, 2000 (“Instrument of Assignment”) by
LECG, Inc., a California corporation (“Seller”), and Navigant
Consulting, Inc., a Delaware corporation (“Parent”), in favor of LECG, LLC. a
California limited liability company (“Buyer”).

 

Pursuant to
the Asset Purchase Agreement dated as of September 29, 2000 (the “Agreement”)
among Seller, Parent and LECG Holding Company, LLC, a California limited
liability company, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, Seller and Parent do hereby sell,
transfer, assign, convey and deliver unto Buyer each and all of the Purchased
Assets (as such term is defined in the Agreement), other than the Leases (as
such term is defined in the Agreement), intending hereby to convey all of the
right, title and interest of Seller and Parent in such Purchased Assets.

 

This
Instrument of Assignment shall be binding upon the successors and assigns of
Seller and Parent and shall inure to the benefit of the successors and assigns
of Buyer.

 

IN WITNESS WHEREOF,
Seller and Parent has caused this Instrument of Assignment to be duly executed
and delivered as of the date first set forth above.

 

	
   

  	
   

  	
  LECG, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Philip
  P. Steptoe

  	
   

  
	
   

  	
   

  	
  Philip P.
  Steptoe

  
	
   

  	
   

  	
  Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NAVIGANT
  CONSULTING, INC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey
  H. Stoecklein

  	
   

  
	
   

  	
   

  	
  Jeffrey H.
  Stoecklein

  
	
   

  	
   

  	
  Vice
  President

  

 

 

Exhibit B

 

 

INSTRUMENT OF ASSUMPTION

 

Instrument of
Assumption dated September 29, 2000 (“Instrument of Assumption”) by
LECG, Inc., a California limited liability company (“Buyer”), in favor
of LECG, Inc., a California corporation (“Seller”) and Navigant
Consulting, Inc., a Delaware corporation (“Parent”).

 

Pursuant to
the Asset Purchase Agreement dated as of September 29, 2000 (the “Agreement”)
among Buyer, Seller, Parent and LECG Holding Company, LLC, a California limited
liability company, Seller and Parent are concurrently herewith selling,
transferring, assigning, conveying and delivering to Buyer each and all of the
Purchased Assets (as such term is defined in the Agreement).

 

In partial
consideration for such sale, transfer, assignment, conveyance and delivery to
Buyer of the Purchased Assets, Section 2.3 of the Agreement requires Buyer to
assume and agree to discharge certain obligations and liabilities of Seller.

 

Pursuant to
the terms of the Agreement and for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, Buyer hereby assumes and
agrees to discharge in accordance with the terms thereof each of the Assumed
Liabilities (as such term is defined in the Agreement).

 

This
Instrument of Assumption shall be binding upon the successors and assigns of
Buyer and shall inure to the benefit of the successors and assigns of Seller
and Parent.

 

IN WITNESS WHEREOF,
Buyer has caused this Instrument of Assumption to be duly executed and
delivered as of the date first set forth above.

 

	
   

  	
  LECG, INC.

  
	
   

  	
   

  
	
   

  	
  By: LECG
  HOLDING COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J. Geoffrey
  Colton

  	
   

  
	
   

  	
   

  	
  J. Geoffrey
  Colton

  
	
   

  	
   

  	
  Secretary

  

 

 

Exhibit C

 

SIDLEY & AUSTIN

A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS

 

	
  DALLAS

  	
   

  	
  BANK ONE PLAZA

  	
   

  	
  HONG KONG

  
	
  LOS ANGELES

  	
   

  	
  10 S. DEARBORN STREET

  	
   

  	
  LONDON

  
	
  NEW YORK

  	
   

  	
  CHICAGO, ILLINOIS 60603

  	
   

  	
  SHANGHAI

  
	
  SEATTLE

  	
   

  	
  TELEPHONE 312 853 7000

  	
   

  	
  SINGAPORE

  
	
  WASHINGTON, D. C.

  	
   

  	
  FACSIMILE 312 853 7036

  	
   

  	
  TOKYO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FOUNDED 1866

  	
   

  	
   

  

 

 

September 29, 2000

 

LECG Holding Company, LLC

LECG, LLC

2000 Powell Street

Suite 600

Emeryville, CA 94608

 

Ladies and Gentlemen:

 

We have acted
as counsel for Navigant Consulting, Inc., a Delaware corporation (“Parent”),
and LECG, Inc., a California corporation (“Seller”), in connection with
the execution and delivery of the Asset Purchase Agreement, dated as of
September 29, 2000 (the “Agreement”), among Parent, Seller, LECG Holding
Company, LLC, a California limited liability company (“Buyer Parent”),
and LECG, LLC, a California limited liability company (“Buyer”), and the
transactions contemplated thereby.  Each
capitalized term not defined herein shall have the meaning ascribed to such
term in the Agreement.

 

Pursuant to
the requirements of Section 4.4(d) of the Agreement, we are of the opinion
that.

 

1.                                       Parent
is validly existing and in good standing under the laws of the State of Delaware.  Seller is validly existing and in good
standing under the laws of the State of California.

 

2.                                       Parent
has the corporate power and authority to execute, deliver and perform the
Agreement and each Seller Ancillary Agreement to be executed, delivered or
performed by Parent (the “Parent Instruments”).  Seller has the corporate power and authority
to execute, deliver and perform the Agreement and each Seller Ancillary
Agreement to be executed, delivered or performed by Seller (the “Seller
Instruments”).

 

3.                                       Each
Seller Instrument has been duly authorized, executed and delivered by Seller
and constitutes the valid and binding obligation of Seller enforceable against
Seller in accordance with its terms, except to the extent enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and

 

 

	
  SIDLEY &
  AUSTIN

  	
   

  	
  CHICAGO

  
	
   

  	
   

  	
   

  
	
  LECG Holding
  Company, LLC

  LECG, LLC

  September 29, 2000

  	
   

  	
   

  

 

 

contracting parties’ rights
generally or general principles of equity (regardless of whether enforceability
is considered in a proceeding in equity or at law).

 

4.                                       Each
Parent Instrument has been duly authorized, executed and delivered by Parent
and constitutes the valid and binding obligation of Parent enforceable against
Parent in accordance with its terms, except to the extent enforceability may be
limited by applicable bankruptcy, insolvency, reorganization, moratorium or
similar laws affecting creditors’ and contracting parties’ rights generally or
general principles of equity (regardless of whether enforceability is
considered in a proceeding in equity or at law).

 

5.                                       Neither
the execution and delivery of the Agreement or any of the Seller Instruments or
the consummation of the transactions contemplated thereby, nor compliance with
or fulfillment of the terms, conditions and provisions thereof will conflict
with, result in a breach of the terms, conditions or provisions of, or
constitute a default, an event of default or an event creating rights of
acceleration, termination or cancellation or a loss of rights under (a) the
Certificate of Incorporation or By-laws of Seller or (b) to our knowledge (1)
any material note, instrument, agreement, mortgage, lease, license, franchise,
permit or other authorization, right, restriction or obligation to which Seller
is a party or any of its properties is subject or by which Seller is bound, (2)
any Court Order to which Seller is party or by which it is bound or (3) any
Requirements of Laws affecting Seller.

 

6.                                       Neither
the execution and delivery of the Agreement or any of the Parent Instruments or
the consummation of the transactions contemplated thereby, nor compliance with
or fulfillment of the terms, conditions and provisions thereof will conflict
with, result in a breach of the terms, conditions or provisions of, or
constitute a default, an event of default or an event creating rights of
acceleration, termination or cancellation or a loss of rights under (a) the
Certificate of Incorporation or By-laws or Parent or (b) to our knowledge (1)
any material note, instrument, agreement, mortgage, lease, license, franchise,
permit or other authorization, right, restriction or obligation to which Parent
is a party or any of its properties is subject or by which Parent is bound, (2)
any Court Order to which Parent is party or by which it is bound or (3) any
Requirements of Laws affecting Parent.

 

7.                                       No
approval, consent or authorization of, or declaration, filing or registration
with, any federal or state governmental authority or regulatory body, is
required for the valid execution an delivery of the Agreement and the Seller
Ancillary Agreements, the consummation by Parent or Seller of the transactions
contemplated thereby or compliance by Parent or Seller with the terms, conditions
and provisions thereof.

 

For purposes
of rendering the foregoing opinions, we have relied, as to various questions of
fact material to such opinions, upon the representations of Parent, Seller,
Buyer Parent and Buyer made in the Agreement and upon certificates of officers
of Parent and Seller.

 

2

 

We have also examined
originals, or copies of originals certified to our satisfaction, of such
agreements, documents, certificates and other statements of government
officials and other instruments, have examined such questions of law and have
satisfied ourselves as to such matters of fact as we have considered relevant
and necessary as a basis for this opinion. 
We have assumed the authenticity of all documents submitted to us as
originals, the genuineness of all signatures, the legal capacity of all natural
persons and the conformity with the original documents of any copies thereof
submitted to us for our examination.

 

Any opinion or
statement herein that is expressed to be “to our knowledge” or is otherwise
qualified by words of like import is intended to signify that, during the
course of our representation of Parent and Seller, no information has come to
the attention of lawyers currently practicing law with the firm who have had an
active involvement in negotiating the Agreement that would give them actual
knowledge of facts contrary to such opinion or statement.  However, we have not undertaken any
independent investigation to determine the existence or absence of such facts,
and no inference as to our knowledge of the existence or absence of such facts
should be drawn from our representation of Parent or Seller.

 

This opinion
letter is limited to the laws of the State of Illinois, the General Corporation
Law of the State of Delaware and the federal laws of the United States of
America.

 

This opinion
letter is being delivered solely for the benefit of the person to whom it is
addressed; accordingly, it may not be quoted, filed with any governmental
authority or other regulatory agency or otherwise circulated or utilized for
any other purpose without my prior written consent.  This opinion letter speaks as of the time of its delivery on the
date it bears.  We do not assume any
obligation to provide you with any subsequent opinion or advice by reason of
any fact about which we do not have a current conscious awareness at that time,
by reason of any change subsequent to that time in any law covered by any of
the foregoing opinions or for any other reason.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  /s/ SIDLEY
  & AUSTIN

  	
   

  

 

3

 

Exhibit D

 

 

TRANSITION SERVICES AGREEMENT

 

This
Transition Services Agreement (“Agreement”)
is entered into this 29th day of September, 2000, between NAVIGANT
CONSULTING, INC., a Delaware corporation (“Parent”),
and LECG, LLC, a California limited liability company (“Buyer”).

 

Recitals:

 

A.                                    Pursuant to that
certain Asset Purchase Agreement (the “Purchase
Agreement”), dated September 29, 2000, among Parent, LECG, Inc., a
California corporation (“Seller”),
Buyer and LECG Holding Company, LLC, a California limited liability company.
Seller is selling to Buyer, and Buyer is purchasing from Seller, substantially
all of Seller’s assets and Buyer is assuming certain liabilities of Seller.

 

B.                                    Subsequent to the
execution and delivery of the Purchase Agreement, the Buyer will use the
Purchased Assets to operate a business providing economic and financial
analysis, expert testimony and litigation support and consulting services (the
“Transferred Business”).

 

C.                                    Pursuant to Section
4.3(f) of the Purchase Agreement, Parent has agreed to make available to
Buyer certain services, and Buyer has agreed to procure such services, during
the Transition Period (as defined in Section 2.1 below).

 

D.                                    Capitalized terms
used but not defined herein shall have the same meanings attributed thereto in
the Purchase Agreement.

 

Agreement

 

In consideration of the foregoing and the
mutual agreements, provisions and covenants contained herein and for other good
and valuable consideration, the receipt and legal sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

 

1.                                      Performance of Services.

 

1.1                               In order for Buyer to
support the operation of the Transferred Business through the Transition Period
in a manner substantially similar to the manner in which the Transferred
Business was operated immediately prior to the Closing Date, from and after the
date hereof through the Transition Period, Parent shall use commercially reasonable
efforts to provide Buyer with (i) certain employees of Seller listed on Annex
A at the cost set forth next to each employee’s listed therein (the “Leased Employees”), and (ii) certain
Services (as defined below) of Parent in consideration for payments by Buyer
described in Section 1.3.

 

 

1.2                               The Services shall
consist of the services necessary for Buyer to support reasonably the operation
of the Transferred Business through the Transition Period, including without
limitation, administrative, technical support, financial and accounting,
telephone, travel-related services, and weekly data back-up (each as more fully
described, and at the cost set forth, on Annex B hereto) provided in a
manner consistent with the manner and level of care with which the Services
were previously performed by the Seller and/or Parent, provided that in no
event shall the Services include (i) executive management, (ii) legal services,
(iii) insurance, or (iv) financial support (each individually a “Service” and collectively, the “Services”). To the extent Buyer wishes to
terminate any Service, Buyer shall give the Parent at least three (3) weeks
prior written notice identifying those Services that Buyer, in its sole
discretion, has determined it no longer wishes to purchase. After such three
(3) week notice period elapses, Parent shall have no further obligation to
provide such terminated Services, and Buyer shall have no further financial
obligations in connection with such terminated Services.

 

1.3                               Buyer shall reimburse
Parent, in accordance with Section 1.4, for the expenses incurred by
Parent, as set forth on Annexes A and B, respectively, in
connection with the provision of the Leased Employees and Services (the costs
therefor collectively referred to as the “Incurred
Costs”).  For the Leased
Employees, the Incurred Costs shall include (i) 150% of the annual base salary
for those individuals who, from time to time, constitute Leased Employees in
accordance with Section 1.2 hereof. For the Services, the Incurred Costs
shall include (i) the actual and reasonably documented cost of any supplies,
materials and services used by Parent in connection with providing the Services
plus 150% of the annual base salary of the employees of Parent performing
services (pro rated on an hourly basis), and (ii) the actual and reasonably
documented expenses of Parent under any contracts related to the Transferred
Business that are not Purchased Assets or Assumed Liabilities assumed by Buyer
but which relate to Services that Buyer has reasonably requested.

 

1.4                               The Incurred Costs will
be paid by Buyer by not later than thirty (30) days after receipt of an invoice
from Parent of the Incurred Costs.

 

1.5                               Parent shall maintain
records of the Leased Employees and the Services provided pursuant to the terms
of this Agreement and of all Incurred Costs properly incurred by Parent in
connection therewith and shall make the same available to Buyer for inspection
at Buyer’s reasonable request and in connection with any final accounting of
Incurred Expenses.

 

1.6                               All employees performing
services shall be the employees of Parent and not Buyer.  Buyer shall offer employment to each Leased
Employee as soon as all necessary immigration fillings have been made and
authorization received allowing the Buyer to legally employ such Leased
Employee. Subject to the provisions of Sections 1.3 and 1.4,
Parent shall be solely responsible for all hiring and termination decisions
with respect to such employees and for the payment of all salaries, taxes,
benefits and other amounts with respect to such employees. Parent’s obligation
to provide any Leased Employee shall continue only so long as that Leased
Employee continues to be employed by Parent with the duties performed by the
Leased Employee for Parent prior to the Closing Date. While Parent will use its
commercially reasonable efforts to cause the Leased Employees to continue as
employees of Parent during the

 

2

 

Transition Period, Parent shall
have no obligation or liability if any Leased Employee voluntarily terminates
his or her employment or is terminated by Parent for cause or with the consent
of Buyer.

 

2.                                      Term
and Termination.

 

2.1                               Parent agrees (A) to
make Leased Employees available until the earlier of (i) such time as the
Parent notifies the Buyer in writing that all approvals and other necessary
actions with respect to the transfer of work visas from the Parent to the Buyer
have been obtained or (ii) six (6) months from the date hereof and (B) to make
the Services available to Buyer for the period commencing on the date hereof
and ending on the earlier of (a) December 31, 2000, or (b) ten (10) business
days after receipt of written notice from Buyer of its desire to terminate this
Agreement (the “Transition Period”).

 

2.2                               If at any time during
the Transition Period, Buyer fails to make payments in full of the amounts
required hereunder for a period of more than ten (10) days after such payments
are otherwise due and payable, and Parent has provided a notice of such default
with a 10-day cure period, Parent may terminate this Agreement.  Neither party shall be liable to the other
by reason of this Agreement or the transactions contemplated hereby for
consequential or special damages.

 

2.3                               The cancellation or
termination of this Agreement (howsoever occasioned) shall be without prejudice
to any obligations or rights on the part of any party which may have accrued up
to the date of such cancellation or termination.

 

3.                                      No
Partnership; No Conflict of Interest; Other Disclaimers.

 

3.1                               Nothing contained herein
shall create, or shall be construed as creating, a partnership or joint venture
of any kind or as imposing upon any party hereto any partnership duty,
obligation or liability to the other party. 
Parent is an independent contractor hereunder and neither party is the
agent of the other.

 

3.2                               Nothing herein shall be
deemed to restrict Parent or Buyer or any of their directors, officers,
employees or affiliates from engaging in any business or from contracting with
other parties.

 

4.                                      Confidentiality.

 

4.1                               The provisions of
Section 11.2 of the Purchase Agreement shall apply to all documents, materials
and other information that either party obtains regarding the other pursuant to
this Agreement including but not limited to all information relating to any
client engagement, contract or agreement relating to the Transferred Business.

 

3

 

5.                                      Miscellaneous.

 

5.1                               Notices.  All notices and other communications
hereunder shall be in writing and shall be delivered by hand or mailed by
registered or certified mail (return receipt requested) or transmitted by
facsimile to the parties at the following addresses (or at such other addresses
for a party as shall be specified by like notice) and shall be deemed given on
the date on which such notice is received:

 

	
  If to Parent:

  
	
   

  
	
  Navigant Consulting, Inc.

  
	
  615 North Wabash Avenue

  
	
  Chicago, IL 60611

  
	
  Attention:

  	
  Philip
  Steptoe

  
	
  Fax No.:

  	
  (312)
  573-5676

  
	
  Tel No.:

  	
  (312)
  573-5603

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Sidley & Austin

  
	
  One First National Plaza

  
	
  Chicago, IL 60603

  
	
  Attention:

  	
  Steven
  Sutherland

  
	
  Fax No.:

  	
  (312)
  853-7036

  
	
   

  	
   

  
	
  Tel No.:

  	
  (312)
  853-7000

  
	
   

  	
   

  
	
   

  
	
  If to Buyer:

  
	
   

  
	
  LECG, LLC

  
	
  2000 Powell Street, Suite 600

  
	
  Emeryville, CA 94608

  
	
  Attention:

  	
  David Teece

  
	
  Fax No.:

  	
  510.653.6213

  
	
  Tel No.:

  	
  510.450.6799

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  Folger Levin & Kahn, LLP

  
	
  275 Battery Street, 28th Floor

  
	
  San Francisco, CA 94111

  
	
  Attention:

  	
  Carol Kerr

  
	
  Fax No.:

  	
  (415)
  986-2827

  
	
  Tel No.:

  	
  (415)
  986-2800

  

 

4

 

5.2                               This Agreement shall be
governed by and construed in accordance with the internal laws, and not the
laws of conflicts, of the State of Illinois.

 

5.3                               Each party upon the
request of the other agrees to perform such further acts and execute and
deliver such further documents as may be reasonably necessary to effectually
carry out the terms and intent of this Agreement.

 

5.4                               This Agreement
constitutes the entire agreement between the parties with respect to the
subject matter hereof and supersedes all prior agreements and undertakings,
both written and oral.  No statement,
representation, warranty, covenant or agreement of any kind not expressly set
forth in this Agreement shall effect, or be used to interpret, change or
restrict, the express terms and provisions of this Agreement.

 

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

 

5.6                               Neither party may assign
or delegate its rights, interests, obligations or liabilities under this
Agreement without the prior written consent of the other party.  The obligations of either party may be assigned
to any affiliate of that party or by operation of law or with the prior written
consent of the other party.  Each party
shall provide the other with at least fifteen (15) days prior written notice of
any requested consent to assignment.

 

5.7                               This Agreement may not
be amended or modified except by an instrument in writing signed by the parties
hereto.  The terms and provisions of
this Agreement may be waived, or consent for the departure therefrom granted,
only by a written document executed by the party or parties entitled to the
benefits of such terms or provisions. 
No such waiver or consent shall be deemed to be or shall constitute a
waiver or consent with respect to any other terms or provisions of this Agreement,
whether or not similar.

 

5.8                               This Agreement may be
executed in counterparts and signatures sent by facsimile shall be binding as
evidence of execution and acceptance of the terms hereof.  Signatures may be exchanged by telecopy with
original signatures to follow.  Each
party to this Agreement agrees that it will be bound by its own telecopied
signature and that it accepts the telecopied signature of the other party to
this Agreement.

 

[THIS SPACE INTENTIONALLY LEFT BLANK]

 

5

 

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

 

	
   

  	
  BUYER:

  
	
   

  	
   

  
	
   

  	
  LECG, LLC

  
	
   

  	
  By: LECG Holding Company, LLC

  
	
   

  	
  Its Sole Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.
  GEOFFREY COLTON

  
	
   

  	
   

  	
  By: J.
  Geoffrey Colton

  
	
   

  	
   

  	
  Its: Chief
  Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  LECG, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ P.
  STEPTOE

  
	
   

  	
   

  	
  By: P.
  Steptoe

  
	
   

  	
   

  	
  Its: V.P.

  
	
   

  	
   

  
	
   

  	
  PARENT:

  
	
   

  	
   

  
	
   

  	
  NAVIGANT CONSULTING, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ J.
  STOECKLEIN

  
	
   

  	
   

  	
  By: J.
  Stoecklein

  
	
   

  	
   

  	
  Its: V.P.

  

 

8

 

ANNEX A

 

TO TRANSITION SERVICES AGREEMENT

 

Initial
Leased Employees

 

	
  Employee Name

  	
   

  	
  Current
  Base Salary

  
	
   

  	
   

  	
   

  
	
  Gina Dalma

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Chi-Yi Kuan

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Darin Lee

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Ana L.
  Gonazalez-Palomares

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Andrew P.
  Hartshorn

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Panagiotis
  Martinis

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Shivanthi N.
  Gunasekera

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Netika R.
  Raval

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Arun Sharma

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Alan S.
  Alexandroff

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Deniz D.
  Anginer

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Andrius
  Baziliauskas

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Hoang V. Cao

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Kai L. Chan

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Melvyn A.
  Fuss

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Phetsamone
  Kongmany

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Brian A.
  Rivard

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Roger Ware

  	
   

  	
   

  

 

9

 

ANNEX B

 

TO TRANSITION SERVICES AGREEMENT

 

 

List
of Services

 

 

	
  Service

  	
   

  	
  Description

  
	
  Human
  Resources Support

  	
   

  	
  Service Description:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                       Use
  of ABRA System to ensure reconciliation of Data

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                       International
  office employment issues

  
	
   

  	
   

  	
   

  
	
  Accounting

  	
   

  	
  Service Description:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                       Receivable
  collection and remittance

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                       Consultation
  regarding asset and liability balances

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                       Training
  in accounting methods and project accounting services

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  •                       Cooperation
  in transferring ELITE and FAS Systems

  
	
   

  	
   

  	
   

  
	
  Other

  	
   

  	
  •                       As
  mutually agreed to by the parties

  

 

10

 

Exhibit E

 

Form of

TERMINATION AGREEMENT

 

This
Termination Agreement is entered into as of September 29, 2000 between Navigant
Consulting, Inc., a Delaware corporation (the “Company”), LECG, Inc., a
California corporation (“Seller”) and                          (the “Member”)

 

WHEREAS, the
Company, Seller, LECG Holding Company, LLC, a California limited liability
company (“Buyer Parent”), and LECG, LLC, a California limited liability company
(“Buyer”) have entered into an Asset Purchase Agreement (the “Purchase
Agreement”), pursuant to which Seller is selling substantially all of the assets,
properties and business of Seller to Buyer; and

 

WHEREAS, as a
condition to the willingness of the Company and Seller to enter into the
Purchase Agreement and to consummate the transactions contemplated thereby, and
in consideration of the terms set forth in the Purchase Agreement and in this
Agreement, the Company and the Member desire to enter into this Agreement to
provide (i) that at the Closing (as such term is defined in the Purchase
Agreement) any and all options to purchase common shares of the Company held by
the Member (the “Options”) shall be cancelled, including, without limitation,
the options to purchase shares of common stock of the Company listed on  Schedule A hereto; (ii) that at the
Closing, each employment, consulting, retention or similar agreement, if any,
and each agreement relating to any Option (collectively, the “Terminated
Agreements”) between the Member and the Company (including, without limitation,
the agreements listed on Schedule B hereto) shall be cancelled and
terminated, other than obligations of Member thereunder, if any, to keep
confidential and not disclose any trade secrets or confidential documents,
instruments or information of the Company or its affiliates, other than Seller
(the “Continuing Obligations”) and (iii) for the other provisions herein.

 

NOW,
THEREFORE, in consideration of the mutual promises and agreements contained
herein, the adequacy and sufficiency of which are hereby acknowledged, the
Company, Seller and the Member hereby agree as follows:

 

1.                                       Cancellation of Options.  At the Closing, the Options which are
outstanding immediately prior to the Closing shall be cancelled and returned to
the Company and the Company shall have no obligation or liability with respect
to the Options.

 

2.                                       Cancellation and Termination of Terminated Agreements.  At the Closing, the Terminated Agreements
shall be cancelled and terminate, and the Member and the Company shall have no
obligation or liability with respect to the Terminated Agreements other than
the Continuing Obligations.

 

3.                                       Release.

 

(a)(1)                    Except
as provided in Section 3(a)(2) below, the Member, on behalf of the Member and
anyone claiming through the Member, including, but not limited to, the

 

 

Member’s past,
present and future spouses, family members, relatives (of any degree of
kinship), agents, attorneys, representatives, heirs, executors and
administrators, and the predecessors, successors and assigns of each of them,
hereby releases, forever discharges and agrees not to sue the Company, Seller,
any division, subsidiary, Affiliate or other related entity of the Company or
Seller (whether or not such entity is wholly owned), the predecessors,
successors and assigns of any of them and any current or former director,
officer, employee or agent of each of them (hereinafter jointly referred to as
the “Released Parties”), with respect to any and all claims, demands,
causes of action, orders, agreements, debts and liabilities, whether in state,
federal or local court, commission, department, or agency or otherwise, which
the Member now has, has ever had, or may in the future have, whether known or
unknown, against any of the Released Parties for or related to anything
occurring on or prior to the date hereof, including without limiting the
generality of the foregoing, (i) any claims under Title VII of the Civil Rights
Act of 1964, as amended, the Civil Rights Act of 1866, as amended, the Civil
Rights Act of 1991, as amended, the Americans With Disabilities Act, as
amended, the Worker Adjustment and Retraining Notification Act, the Employee
Retirement Income Security Act of 1974, as amended, the California Fair
Employment and Housing Act, as amended, or the Age Discrimination in Employment
Act of 1967, as amended; (ii) any and all claims, demands, causes of action, orders,
agreements, debts and liabilities which in any way result from, arise out of,
or relate to, any rights to indemnification or reimbursement from the Company
or Seller or the Member’s employment by the Company or Seller, including, but
not limited to, compensation (including deferred compensation), debts and sums
of money; (iii) any and all rights which the Member may have in respect of the
Options or the Terminated Agreements, including, without limitation, any and
all claims and rights against the Company, Seller or any of their Affiliates
(as such term is defined in the Purchase Agreement) for any other consideration
in respect of the Options or the Terminated Agreements; and (iv) any and all
claims, demands, causes of action, orders, agreements, debts and liabilities
which in any way result from, arise out of, or relate to, the ownership,
purchase, sale or pricing of any shares of the Company or any options to
purchase shares of the Company (all of the foregoing collectively being
referred to as the “Released Claims”).

 

(2)  Notwithstanding anything to the contrary in
Section 3(a)(1), the Released Claims do not include and nothing contained in
this Section 3 shall apply to, or release any of the Released Parties from (i)
any obligation of Company or Seller contained in the Purchase Agreement, and
any instrument, document, or agreement made pursuant to the Purchase Agreement
and the transactions contemplated therein or (ii) any obligation of Company or
Seller to provide indemnification to the Member with respect to acts or
failures to act by the Member prior to the Closing in connection with the
Member’s employment with or consulting for the Company or Seller.  The Member hereby represents and warrants to
the Company and Seller that such Member does not know of any matter for which
the Member will seek indemnification pursuant to any such obligation.

 

(b)                                 If
the Member is a resident of California, the Member also acknowledges that
Member is aware of, familiar with and has read the provisions of California Civil
Code Section 1542, which provides as follows:

 

2

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES
NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE
WHICH IF KNOWN BY HIM MUST HAVE MATERIALLY AFFECTED HIS SETTLEMENT WITH THE
DEBTOR”

 

Having
reviewed this provision, the Member nevertheless hereby voluntarily waives any
and all rights under this statutory provision with respect to the Released
Claims.

 

(c)                                  The
Member hereby irrevocably covenants to refrain from, directly or indirectly
asserting any Released Claim against any Released Party, or commencing,
instituting or causing to be commenced, any proceeding of any kind against any
Released Party, based upon any Released Claim.

 

(d)                                 Without
in any way limiting any of the rights and remedies otherwise available to any
Released Party, and subject to the qualifications contained in this Section 3,
the Member shall indemnify and hold harmless each Released Party from and
against any and all Loss and Expense (as such terms are defined in the Purchase
Agreement) whether or not involving third party claims, incurred by any
Released Party in connection with or arising from the assertion against any
Released Party by or on behalf of the Member of any Released Claim.

 

(e)                                  Nothing
in this Agreement is intended to or shall be construed as an admission by the
Company, Seller or any of the other Released Parties that any of them violated
any law, interfered with any right, breached any obligation or otherwise
engaged in any improper or illegal conduct with respect to the Member or
otherwise.  Each of the Released Parties
expressly denies any such illegal or wrongful conduct.

 

4.                                       General. (a)  The Member has consulted such legal, financial, tax or other
advisors as the Member deems necessary or desirable before entering into this
Agreement.  The Member hereby represents
and warrants to the Company and Seller that the Member has read, knows,
understands and agrees with the terms and conditions of this Agreement.  The Member has not relied upon any oral
representations of the Released Parties in entering into this Agreement. The
Member hereby represents and warrants to the Company and Seller that (a) except
for the Options listed on Schedule A hereto, the Member owns or holds no
other Options and (b) except for the Terminated Agreements listed on Schedule
B hereto, the Member is not a party to any other employment, consulting,
retention on similar agreement with or with respect to the Company, Seller or
any of their Affiliates.  The Member
represents and warrants to the Company and Seller that (a) the Member has not
filed or initiated any legal, equitable, administrative, or other proceeding(s)
against any of the Released Parties, (b) no such proceeding(s) have been
initiated against any of the Released Parties on the Member’s behalf; (c) the
Member is the sole owner of the Released Claims; (d) the Released Claims have
not been transferred or assigned or caused to be transferred or assigned to any
other person, firm, corporation or other legal entity; and (e) the Member has
the full right and power to grant, execute, and deliver the releases,
undertakings, and agreements contained in this Agreement.

 

(b)                                 The
Company and Seller have consulted such legal, financial, tax or other advisors
as they deem necessary or desirable before entering into this Agreement. The
Company

 

3

 

and Seller each represent and
warrant to the Member that it has read, knows, understands and agrees with the terms
and conditions of this Agreement. 
Neither the Company nor Seller have relied on any oral representations
of Member in entering into this Agreement.

 

5.                                       Entitlement
to Indemnification. The Company and Seller hereby acknowledge
and agree that the Member is a Buyer Group Member (as defined in the Purchase
Agreement) and is entitled to indemnification by the Company and Seller under
Article X of the Purchase Agreement, on the terms and subject to the provisions
of the Purchase Agreement.

 

6.                                       Successors; Binding Agreement. This
Agreement shall inure to the benefit of and be enforceable by the parties
hereto and their successors and permitted assigns: provided,  however,
that neither party may assign any of his, her or its rights or obligations
hereunder without the prior written consent of the other parties.

 

7.                                       Notices. All notices and other
communications required or permitted under this Agreement shall be in writing
and shall be deemed to have been duly given when given in accordance with
Section 11.4 of the Purchase Agreement and (i) if to the Company or Seller
addressed to the addresses given pursuant to Section 11.4 of the Purchase
Agreement and (ii) if to the Member, addressed to the address set forth below
the Member’s name on the signature page to this Agreement.

 

8.                                       Governing Law; Validity.  The interpretation, construction and
performance of this Agreement shall be governed by and construed and enforced
in accordance with the internal laws of the State of Illinois without regard to
the applicable principles of conflicts of laws. Wherever possible, each
provision hereof shall be interpreted in such manner as to be effective and
valid under applicable law, but in case any one or more of the provisions
contained herein shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such provision shall be ineffective to the
extent, but only to the extent, of such invalidity, illegality or
enforceability without invalidating the remainder of such provision or
provisions or any other provisions hereof, unless such a construction would be
unreasonable.

 

9.                                       Counterparts. This Agreement may be
executed in two counterparts, each of which shall be deemed to be an original
and both of which together shall constitute one and the same instrument.

 

10.                                 Miscellaneous. No provision of this
Agreement may be modified or waived unless such modification or waiver is
agreed to in writing and executed by the Member and by a duly authorized
officer of the Company. No waiver by either party hereto at any time of any
breach by the other party hereto of, or failure to comply with, any condition
or provision of this Agreement to be performed or complied with by such other
party shall be deemed a waiver of any similar or dissimilar conditions or
provisions at the same or at any prior or subsequent time.  Failure by the Member or the Company to
insist upon strict compliance with any provision of this Agreement or to assert
any right which the Member or the Company may have hereunder shall not be
deemed to be a waiver of such provision or right or any other provision of or
right under this Agreement.

 

4

 

IN WITNESS
WHEREOF each of the Company and Seller has caused this Agreement to be executed
by its duly authorized officer and the Member has executed this Agreement as of
the day and year first above written.

 

	
   

  	
  NAVIGANT
  CONSULTING, INC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:. 

  
	
   

  	
  Title:  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  LECG, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  
	
   

  	
  Title:  

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MEMBER:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

5

 

SPOUSAL CONSENT

 

I am married
to                                  , the Member as defined in the Termination
Agreement dated as of September 29, 2000 (the “Termination Agreement”)  I acknowledge that I have read the
Termination Agreement and that I know its contents, particularly Section 3 of
the Termination Agreement.  I am aware
that by the provisions of the Termination Agreement (including Section 3
thereof) that the Member and anyone claiming through the Member (including
spouses) releases, forever discharges and agrees not to sue any of the Released
Parties (as defined in the Termination Agreement) with respect to any Released
Claim (as defined in the Termination Agreement).

 

I hereby
consent to such release pursuant to the terms of the Termination Agreement,
approve of the provisions of the Termination Agreement pertaining to such
release, and agree that I will take no action at any time to hinder the
enforcement of the Termination Agreement.

 

 

	
  Dated:    September
  29, 2000

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Print Name)

  

 

6

 

Schedule A

 

Options

 

 

 

7

 

Schedule B

 

Terminated Agreements

 

 

 

 

 

 

 

8

 

FOLGER LEVIN & KAHN LLP

 

ADDENDUM TO TERMINATION AGREEMENT

 

	
   

  	
  ATTORNEYS AT
  LAW

  
	
   

  	
   

  
	
   

  	
  1900 Avenue
  of the Stars, 28th Floor

  
	
   

  	
  Los Angeles,
  California 90067

  
	
   

  	
  Telephone
  310.556.3700

  
	
   

  	
  Fax number
  310.556.3770

  
	
   

  	
   

  
	
   

  	
  San
  Francisco Office

  
	
   

  	
  Embarcadero
  Center West,

  
	
   

  	
  275 Battery
  Street, 23rd Floor

  
	
   

  	
  San
  Francisco, California 94111

  
	
   

  	
  Telephone
  415.986.2800

  
	
   

  	
  [ILLEGIBLE]

  
	
   

  	
  www.flk.com

  

 

This Addendum
to Termination Agreement is entered into as of September 29, 2000 between
Navigant Consulting, Inc., a Delaware corporation (“Company”), LECG, Inc., a
California corporation (“Seller”) and the undersigned (“Member”).

 

RECITALS

 

A.                                   Member,
Company and Seller are parties to that certain Termination Agreement dated as
of September 29, 2000 (the “Termination Agreement”), providing for, among other
things, a release of claims by Member against Company and Seller.

 

B.                                     All
terms with initial capital letters not otherwise defined herein have the
meanings given in the Termination Agreement and, except as modified hereby, the
Termination Agreement is expressly incorporated herein by this reference.

 

C.                                     Member,
Company and Seller have agreed that the Termination Agreement, and the release
of claims set forth therein, will not apply to the Accrued Expert Fees to the
extent set forth herein.

 

NOW,
THEREFORE, in consideration of the foregoing, Member, Seller and Company agree
as follows:

 

1.                                       Accuracy
of Final Statement. Company has provided Member with a final statement
reflecting the amount of all expert fees and finder’s fees (collectively, the
“Accrued Expert Fees”) due and payable to such Member under the terms of the
Purchase Agreement (the “Final Statement”). 
Each of Seller and Company represent and warrant that, to the best of
its knowledge, the amount of Accrued Expert Fees set forth on the Final
Statement is true and correct and represents all unpaid Accrued Expert Fees due
to Member on or prior to September 29, 2000 (the “Closing Date”) as a result of
account receivables billed to a client of Seller prior to the Closing Date and
retained by Seller as an “Excluded Asset” under the Purchase Agreement.

 

2.                                       Exclusion
from Released Claims.  The
Termination Agreement is expressly modified and amended to provide that the
Released Claims under Section 3(a)(1) of the Termination Agreement do not
include the following types of claims:

 

2.1                                 Any
claim by Member for Accrued Expert Fees with respect to the matters (each, a
“Disputed Matter”) listed on Schedule A hereto. Member hereby represents and
warrants that each Disputed Matter, if any, is subject to a bona fide
dispute and that, if possible based on the information available to Member,
Member has made a good faith estimate of the amount of Accrued Expert Fees due
to Member with respect to such Disputed Matter.

 

2.2                                 A
claim by Member for Accrued Expert Fees not paid by Seller or Company (the
“Unpaid Fees”) if all of the following conditions are met:

 

 

(a)                                  Member
makes a claim for Unpaid Fees under this Section 2.2 on or before March 31,
2001;

 

(b)                                 the
Unpaid Fees arise from or relate to accounts receivable that Company or Seller
mistakenly believed had not been paid, but that, in fact, such accounts
receivable actually were paid by a client or clients during the period
beginning on January 1, 2000 and ending on the Closing Date (the “Open Period”)
and retained by Seller as an “Excluded Asset” under the Purchase Agreement;

 

(c)                                  Member
furnishes documentation establishing that payment on the account receivable had
been made during the Open Period and that Accrued Expert Fees were not paid by
Seller or Company during the Open Period.

 

3.                                       Payment
of Accrued Expert Fees. Promptly upon receipt of both the Termination
Agreement and this Addendum duly executed by Member, Company will pay the
Member all Accrued Expert Fees reflected on the Final Statement other than
Accrued Expert Fees relating to Disputed Matters, if any.

 

4.                                       No
Other Modifications. Except as expressly set forth in this Addendum, the
terms and conditions of the Termination Agreement are not modified or amended
in any respect and remain in full force and effect.

 

5.                                       Counterparts.
This Addendum may be executed in one or more counterparts, each of which will
be deemed to be an original and both of which together will constitute one and
the same instrument.

 

2

 

IN WITNESS
WHEREOF, this Addendum to Termination Agreement was entered into by Member,
Company and Seller effective as of the date first above written.

 

 

	
  NAVIGANT
  CONSULTING, INC.

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  LECG, INC.

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Name:

  
	
  Title:

  
	
   

  
	
   

  
	
  MEMBER:

  
	
   

  
	
   

  
	
   

  	
   

  
	
  Name:

  
	
   

  
	
   

  
	
  Address:

  
	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  

 

3

 

SCHEDULE A

 

DISPUTED MATTERS

 

[to be completed by each Member]

 

Matter Name:

 

Disputed Amount:

 

4

 

Exhibit F

 

[LECG ECONOMICS • FINANCE LOGO]

 

September 28, 2000

 

 

Philip Steptoe, Vice President

Navigant Consulting Inc.

615 N. Wabash

Chicago, IL 60611

 

RE:                              Office Space Occupancy
Agreement between LECG and Navigant Consulting Inc., and or its subsidiaries
and affiliates (“Navigant”) - 201 South Main, Suite 450, Salt Lake City, UT
84111

 

Dear Mr. Steptoe:

 

Pursuant to your prior conversations with Denise Wilkins, LECG will
gladly accommodate Navigant’s need for office space in our Salt Lake City
office under the following agreement.

 

As of the first day of the month following the divestiture date, LECG
will lease one (1) office to Navigant on an indefinite basis.  In exchange for the opportunity to occupy
space in LECG’s Salt Lake City Office, Navigant will pay $713 to LECG, on a
monthly basis (see attached itemization). 
For any partial month rent will be prorated.  Navigant’s monthly rent will be abated on a prorated basis if its
affairs and cubicles are not accessible.

 

In addition to office rent and utilities, this figure also includes
basic office supplies, reception coverage, basic phone service and access to
basic network and Internet.  This figure
is an estimate of our actual costs. 
Beginning January 1, 2001, the estimated cost will be based on the
prior four (4) month historical information. 
Going forward from this date, the estimated cost will be reviewed in
June and December and adjusted accordingly.  Thereafter, the review will take place on an annual basis.

 

Navigant will be separately charged, on a monthly basis, for special
supply orders, long distance phone charges, couriers, overnight delivery
services, postage, facsimiles and photocopies. 
The cost for these services will be passed through to Navigant without
any mark-up.  You will be charged an
hourly rate for any administrative and technical support in an amount which
reflects actual costs.  The monthly
parking cost will also be included as a separate line item.

 

The number of offices and cubicles that LECG can provide at any given
time is subject to change.  It is
assumed that Navigant’s space requirements will vary in time as well.  Therefore, it is mutually agreed that either
party may terminate the agreement as it pertains to a particular office or
cubicle, or all offices and cubicles, with sixty-days’ (60) written advance
notice to the other party.

 

If the above agreement is acceptable, please sign below.

 

If you have any questions or would like to make an alternate suggestion
regarding the above, please call me.  I
would be happy to discuss this further.

 

Sincerely,

 

 

	
   

  	
  /s/ JOYCE L. HEIN

  	
   

  	
   

  
	
   

  	
  Joyce L. Hein

  	
   

  
	
   

  	
  Manager, Real Estate & Purchasing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attached

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ PHILIP STEPTOE

  	
   

  	
  9/28/00

  	
   

  
	
   

  	
  Philip Steptoe

  	
  Date

  

 

2000 Powell Street, Suite 600  •  Emeryville,
California 94608  •  Telephone:
(510) 653-9800 Fax: (510) 653-9898  •  www.lecg.com

 

 

Operating Office Costs - Salt Lake City

 

	
  Operations
  Per Unit

  	
   

  	
  Yearly Cost

  	
   

  	
  Monthly Cost

  	
   

  	
  Unit Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Equip./Furn. Main

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Property Tax

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Gross Office Rent-Total 13 Units

  	
   

  	
  $

  	
  76,493

  	
   

  	
  6374

  	
   

  	
  490

  	
   

  
	
  1 Office = 1 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  490

  	
   

  
	
  20% Netting Up Base Rent

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  98

  	
   

  
	
  Depreciation Exp. Furniture

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Computers

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Telephones

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Amort. Exp.-Leasehold Imprvmnt

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  588

  	
   

  
									

 

	
  Operations
  Per Person

  	
   

  	
  Est. Cost*

  	
   

  	
  # Of People

  	
   

  	
  Total Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water, Coffee, Equitrac

  	
   

  	
  125

  	
   

  	
  1

  	
   

  	
  125

  	
   

  
	
  Internet & Telephone Access

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  125

  	
   

  

 

*Estimate based on a cost of $125 per month per person.

 

	
  Name

  	
   

  	
  Occupying #

  of Units

  	
   

  	
  Total

  Unit Cost

  	
   

  	
  Total Per

  Person Cost

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NCI/RMI

  	
   

  	
  1

  	
   

  	
  588

  	
   

  	
  125

  	
   

  	
  713

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  713

  	
   

  

 

 

[LECG ECONOMICS • FINANCE LOGO]

 

September 28,
2000

 

 

Philip Steptoe, Vice President

Navigant Consulting Inc.

615 N. Wabash

Chicago, IL 60611

 

RE:                              Office Space Occupancy
Agreement between LECG and Navigant Consulting Inc., and or its subsidiaries
and affiliates (“Navigant”) - 2000 Powell Street, Suite 600, Emeryville, CA
94068

 

Dear Mr. Steptoe:

 

Pursuant to your prior conversations with Demise Wilkins, LECG will
gladly accommodate Navigant’s need for office space in our Emeryville office
under the following agreement.

 

As of the first day of the month following the divestiture date, LECG
will lease two (2) offices to Navigant on an indefinite basis.  In exchange for the opportunity to occupy
space in LECG’s Emeryville Office, Navigant will pay $1,702 to LECG, on a
monthly basis (see attached itemization). 
For any partial month, rent will be prorated.  Navigant’s monthly rent will be abated on a prorated basis if its
affairs and cubicles are not accessible.

 

In addition to office rent and utilities, this figure also includes
basis office supplies, reception coverage, basic phone service and access to
basic network and Internet.  This figure
is an estimate of our actual costs. 
Beginning January 1, 2001, the estimated cost will be based on
prior four (4) month historical information. 
Going forward from this date, the estimated cost will be reviewed in
June and December and adjusted accordingly.  Thereafter, the review will take place on an annual basis.

 

Navigant will be separately charged, on a monthly basis, for special
supply orders, long distance phone charges, couriers, overnight delivery
services, postage, facsimiles and photocopies. 
The cost for these services will be passed through to Navigant without
any mark-up.  You will be charged an
hourly rate for any administrative and technical support in an amount, which
reflects actual costs.  The monthly
parking cost will also be included as a separate line item.

 

The number of offices and cubicles that LECG can provide at any given
time is subject to change.  It is
assumed that Navigant’s space requirements will vary in time as well.  Therefore, it is mutually agreed that either
party may terminate the agreement as it pertains to a particular office or
cubicle, or all officers and cubicles, with sixty-days’ (60) written advance
notice to the other party.

 

If the above agreement is acceptable, please sign below.

 

If you have any questions or would like to make an alternate suggestion
regarding the above, please call me.  I would
be happy to discuss this further.

 

Sincerely,

 

 

	
   

  	
  /s/ JOYCE L. HEIN

  	
   

  	
   

  
	
   

  	
  Joyce L. Hein

  	
   

  
	
   

  	
  Manager, Real Estate & Purchasing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attached

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ PHILIP STEPTOE

  	
   

  	
  9/28/00

  	
   

  
	
   

  	
  Philip Steptoe

  	
  Date

  

 

2000 Powell Street, Suite 600  •  Emeryville,
California 94608  •  Telephone:
(510) 653-9800 Fax: (510) 653-9898  •  www.lecg.com

 

 

Operating Office Costs - Emeryville

 

	
  Operations
  Per Unit

  	
   

  	
  Yearly Cost

  	
   

  	
  Monthly Cost

  	
   

  	
  Unit Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Equip./Furn. Main

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Property Tax

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Gross Office Rent-Total 139 Units

  	
   

  	
  $

  	
  1,008,895

  	
   

  	
  84075

  	
   

  	
  605

  	
   

  
	
  2 Offices = 2 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  1210

  	
   

  
	
  20% Netting Up Base Rent

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  242

  	
   

  
	
  Depreciation Exp. Furniture

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Computers

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Telephones

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Amort. Exp.-Leasehold Imprvmnt

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  1452

  	
   

  
									

 

	
  Operations
  Per Person

  	
   

  	
  Est. Cost*

  	
   

  	
  # Of People

  	
   

  	
  Total Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water, Coffee, Equitrac

  	
   

  	
  125

  	
   

  	
  2

  	
   

  	
  250

  	
   

  
	
  Internet & Telephone Access

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  250

  	
   

  

 

*Estimate based on a cost of $125 per month per person.

 

	
  Name

  	
   

  	
  Occupying #

  of Units

  	
   

  	
  Total

  Unit Cost

  	
   

  	
  Total Per

  Person Cost

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NCI/RMI

  	
   

  	
  2

  	
   

  	
  1452

  	
   

  	
  250

  	
   

  	
  1702

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  1702

  	
   

  

 

 

[LECG ECONOMICS • FINANCE LOGO]

 

September 28, 2000

 

Philip Steptoe, Vice President

Navigant Consulting Inc.

615 N. Wabash

Chicago, IL 60611

 

RE:                              Office Space Occupancy
Agreement between LECG and Navigant Consulting Inc., and or its subsidiaries
and affiliates (“Navigant”) - 333 South Grand Avenue, Suite 3750, Los Angeles,
CA 90071

 

Dear Mr. Steptoe:

 

Pursuant to your prior conversations with Denise Wilkins, LECG will
gladly accommodate Navigant’s need for office space in our Los Angeles office
under the following agreement.

 

As of the first day of the month following the divestiture date, LECG
will lease two (2) large offices, five (5) regular offices and six (6) cubes to
Navigant on an indefinite basis.  In
exchange for the opportunity to occupy space in LECG’s Los Angeles Office,
Navigant will pay $ 7,525 to LECG, on a monthly basis (see attached
itemization).  For any partial month
rent will be prorated.  Navigant’s
monthly rent will be abated on a prorated basis if its affairs and cubicles are
not accessible.

 

In addition to office rent and utilities, this figure also includes
basic office supplies, reception coverage, basic phone service and access to
basic network and Internet.  This figure
is an estimate of our actual costs. 
Beginning January 1, 2001, the estimated cost will be based on the
prior four (4) month historical information. 
Going forward from this date, the estimated cost will be reviewed in
June and December and adjusted accordingly.  Thereafter, the review will take place on an annual basis.

 

Navigant will be separately charged, on a monthly basis, for special
supply orders, long distance phone charges, couriers, overnight delivery
services, postage, facsimiles and photocopies. 
The cost for these services will be passed through to Navigant without any
mark-up.  You will be charged an hourly
rate for any administrative and technical support in an amount, which reflects
actual costs.

 

The number of offices and cubicles that LECG can provide at any given
time is subject to change.  It is
assumed that Navigant space requirements will very in time as well.  Therefore, it is mutually agreed that either
party may terminate the agreement as it pertains to a particular office or
cubicle, or all offices and cubicles, with sixty-days’ (60) written advance
notice to the other party.

 

If the above agreement is acceptable, please sign below.

 

If you have any questions or would like to make an alternate suggestion
regarding the above, please call me.  I
would be happy to discuss this further.

 

Sincerely,

 

 

	
   

  	
  /s/ JOYCE L. HEIN

  	
   

  	
   

  
	
   

  	
  Joyce L. Hein

  	
   

  
	
   

  	
  Manager, Real Estate & Purchasing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attached

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ PHILIP STEPTOE

  	
   

  	
  9/28/00

  	
   

  
	
   

  	
  Philip Steptoe

  	
  Date

  

 

2000 Powell Street, Suite 600  •  Emeryville,
California 94608  •  Telephone: (510) 653-9800
Fax: (510) 653-9898  •  www.lecg.com

 

 

Operating Office Costs - Los Angeles

 

	
  Operations Per Unit

  	
   

  	
  Yearly
  Cost

  	
   

  	
  Monthly
  Cost

  	
   

  	
  Unit Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Equip./Furn. Main

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Property Tax

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Gross Office Rent - Total 37 Units

  	
   

  	
  $

  	
  198,452

  	
   

  	
  16538

  	
   

  	
  447

  	
   

  
	
  2 Large Offices = 3 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  1341

  	
   

  
	
  5 Regular Offices = 5 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  2235

  	
   

  
	
  6 Cubes = 3 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  1341

  	
   

  
	
  20% Netting Up Base Rent

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  963

  	
   

  
	
  Depreciation Exp. Furniture

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Computers

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Telephones

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Amort. Exp.-Leasehold Imprvmnt

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  5900

  	
   

  
									

 

	
  Operations Per Person

  	
   

  	
  Est. Cost*

  	
   

  	
  # Of
  People

  	
   

  	
  Total Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water, Coffee, Equitrac

  	
   

  	
  125

  	
   

  	
  13

  	
   

  	
  1625

  	
   

  
	
  Internet & Telephone Access

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  1625

  	
   

  

 

*Estimate based on a cost of $
125 per month per person.

 

	
  Name

  	
   

  	
  Occupying #

  of Units

  	
   

  	
  Total

  Unit Cost

  	
   

  	
  Total Per

  Person Cost

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NCI/Peterson Risk Consulting

  	
   

  	
  11

  	
   

  	
  5900

  	
   

  	
  1625

  	
   

  	
  7525

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  7525

  	
   

  

 

 

[LECG ECONOMICS • FINANCE LOGO]

 

September 28, 2000

 

Philip Steptoe, Vice President

Navigant Consulting Inc.

615 N. Wabash

Chicago, IL  60611

 

RE:                              Office Space Occupancy
Agreement between LECG and Navigant Consulting Inc., and or its subsidiaries
and affiliates (“Navigant”) - 180 Floor Street West, Suite 1400, Toronto,
Ontario M5S 2V6, Canada

 

Dear Mr. Steptoe:

 

Pursuant to your prior conversations with Denise Wilkins, LECG will
gladly accommodate Navigant’s need for office space in our Toronto office under
the following agreement.

 

As of the first day of the month following the divestiture date, LECG
will lease three (3) window offices and three (3) cubes to Navigant on an
indefinite basis.  In exchange for the
opportunity to occupy space in LECG’s Toronto Office, Navigant will pay $ 1,472
(US$) to LECG, on a monthly basis (see attached itemization).  For any partial month, rent will be
prorated.  Navigant’s monthly rent will
be abated on a prorated basis if its affairs and cubicles are not accessible.

 

In addition to office rent and utilities, this figure also includes
basic office supplies, reception coverage, basic phone service and access to
basic network and Internet.  This figure
is an estimate of our actual costs. 
Beginning January 1, 2001, the estimated cost will be based on the
prior four (4) month historical information. 
Going forward from this date, the estimated cost will be reviewed in
June and December and adjusted accordingly.  Thereafter, the review will take place on an annual basis.

 

Navigant will be separately charged, on a monthly basis, for special
supply orders, long distance phone charges, couriers, overnight delivery
services, postage, facsimiles and photocopies. 
The cost for these services will be passed through to Navigant without
any mark-up.  You will be charged an hourly
rate for any administrative and technical support in an amount, which reflects
actual costs.

 

The number of offices and cubicles that LECG can provide at any given
time is subject to change.  It is
assumed that Navigant’s space requirements will vary in time as well.  Therefore, it is mutually agreed that either
party may terminate the agreement as it pertains to a particular office or
cubicle, or all offices and cubicles, with sixty-days’ (60) written advance notice
to the other party.

 

If the above agreement is acceptable, please sign below.

 

If you have any questions or would like to make an alternate suggestion
regarding the above, please call me.  I
would be happy to discuss this further.

 

Sincerely,

 

 

	
   

  	
  /s/ JOYCE L. HEIN

  	
   

  	
   

  
	
   

  	
  Joyce L. Hein

  	
   

  
	
   

  	
  Manager, Real Estate & Purchasing

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Attached

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  /s/ PHILIP STEPTOE

  	
   

  	
  9/28/00

  	
   

  
	
   

  	
  Philip Steptoe

  	
  Date

  

 

2000 Powell Street, Suite 600  •  Emeryville,
California 94608  •  Telephone:
(510) 653-9800 Fax: (510) 653-9898  •  www.lecg.com

 

 

Operating Office Costs - Toronto

 

	
  Operations Per Unit

  	
   

  	
  Yearly
  Cost CNS

  	
   

  	
  Monthly
  cost CNS

  	
   

  	
  Unit Cost
  CNS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Telephone

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Equip/Furn. Main

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Property Tax

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Gross Office Rent-Total 18 Units

  	
   

  	
  $

  	
  62,500

  	
   

  	
  5208

  	
   

  	
  289

  	
   

  
	
  3 Regular Office = 3 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  580

  	
   

  
	
  3 Cubes = 1.5 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  434

  	
   

  
	
  20% Netting Up Base Rent

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  260

  	
   

  
	
  Depreciation Exp. Furniture

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Computers

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Telephones

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Amont. Exp.-Leasehold imprvmnt

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  1563

  	
   

  
									

 

	
  Operations Per Person

  	
   

  	
  Est. Cost*

  	
   

  	
  # Of
  People

  	
   

  	
  Total Cost
  CNS

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water, Coffee, Equitrac

  	
   

  	
  90

  	
   

  	
  6

  	
   

  	
  540

  	
   

  
	
  Internet & Telephone Access

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  540

  	
   

  

 

*Estimate based on a US cost of
$125 per month per person.

 

	
  Name

  	
   

  	
  Occupying
  #

  of Units

  	
   

  	
  Total

  Unit Cost

  	
   

  	
  Total Per

  Person Cost

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Read Consulting

  	
   

  	
  3.5

  	
   

  	
  1563

  	
   

  	
  540

  	
   

  	
  2103

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  2103

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total Converted To US Dollars

  	
   

  	
  1472

  	
   

  

 

 

[LECG ECONOMICS • FINANCE LOGO]

 

September 28, 2000

 

 

Karbrooke, Inc.

Crystal Park Plaza

2700 E. Bypass

College Station, TX 77840

 

Re:                               Lease Agreement dated
July 1, 1996 between Karbrooke, Inc. a Texas Corporation (“Landlord”) and
Law and Economics Consulting Group, Inc. (“Tenant”) for the Property located at
2700 Ease Rudder Freeway South, Suite 4800, College Station, TX, 77845 (the
“Lease”)

 

To Whom It May Concern:

 

Pursuant to Section 28 of the above referenced Lease, LECG, Inc,
(“Company”) is required to advise you in writing of a change of ownership.  In the very near future, the Company intends
to enter into an Asset Purchase Agreement with LECG, LLC for the sale of all
substantially all the assets of LECG, Inc to LECG, LLC.  The transaction should close by
September 30, 2000.

 

LECG, Inc., and LECG, LLC respectively requested your consent to this
transaction.  Please acknowledge your
consent by executing this letter and returning to this undersigned via
facsimile, keep a copy for your file and, in due course, forward the original
to the above address.

 

If you require any further information you may call me at (310)
450-5447.

 

Sincerely,

 

 

	
   

  	
  /s/ J. GEOFFREY COLTON

  	
   

  
	
   

  	
  J. Geoffrey Colton

  
	
   

  	
  Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  AGREED AND CONSENTED TO

  
	
   

  	
  this 28 day of Sep, 2000

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ [ILLEGIBLE]

  	
   

  
	
   

  	
  LANDLORD

  

 

2000 Powell Street, Suite 600  •  Emeryville,
California 94608  •  Telephone:
(510) 653-9800 Fax: (510) 653-9898  •  www.lecg.com

 

 

[LECG ECONOMICS • FINANCE LOGO]

 

September 28, 2000

 

Philip Steptoe, Vice President

Navigant Consulting Inc.

615 N. Wabash

Chicago, IL 60611

 

 

	
  RE:

  	
   

  	
  Office Space
  Occupancy Agreement between LECG and Navigant Consulting Inc., and or its
  subsidiaries and affiliates (“Navigant”) • 2700 Rudder Freeway
  South, Suite 4800, College Stations, TX 77845

  

 

Dear Mr. Steptoe:

 

Pursuant to your prior
conversations with Denise Wilkins, LECG will gladly accommodate Navigant’s need
for office space in our College Station office under the following agreement.

 

As of the first day of the
month following the divestiture date, LECG will lease one (1) office to
Navigant on an indefinite basis.  In
exchange for the opportunity to occupy space in LECG’s College Station Office.
Navigant will pay $571 to LECG, on a monthly basis (see attached
itemization).  For any partial month,
rent will be prorated.  Navigant’s
monthly rent will be abated on a prorated basis if its affairs and cubicles are
not accessible.

 

In addition to office rent and
utilities, this figure also includes basic office supplies, reception coverage,
basic phone service and access to basic network and Internet.  This figure is an estimate of our actual
costs.  Beginning January 1, 2001, the
estimated cost will be based on the prior four (4) month historical
information.  Going forward from this
date, the estimated cost will be reviewed in June and December and adjusted
accordingly.  Thereafter, the review
will take place on an annual basis.

 

Navigant will be separately
charged, on a monthly basis, for special supply orders, long distance phone
charges, couriers, overnight delivery services, postage, facsimiles and
photocopies.  The cost for these
services will be passed through to Navigant without any mark-up.  You will be charged an hourly rate for any
administrative and technical support in an amount, which reflects actual costs.

 

The number of offices and
cubicles that LECG can provide at any given time is subject to change.  It is assumed that Navigant’s space
requirements will vary in time as well. 
Therefore, it is mutually agreed that either party may terminate the
agreement as it pertains to a particular office or cubicle, or all offices and
cubicles, with sixty-days’ (60) written advance notice to the other party.

 

If the above agreement is
acceptable, please sign below.

 

If you have any questions or
would like to make an alternate suggestion regarding the above, please call
me.  I would be happy to discuss this
further.

 

Sincerely,

 

	
  /s/ JOYCE L.
  HEIN

  	
   

  
	
  Joyce L.
  Hein

  
	
  Manager,
  Real Estate & Purchasing

  
	
   

  
	
  Attached

  
	
   

  
	
  /s/ PHILIP
  STEPTOE

  	
   

  	
  9/28/00

  	
   

  
	
  Philip Steptoe

  	
  Date

  

 

2000 Powell Street, Suite 600  •  Emeryville,
California 94608  •  Telephone:
(510) 653-9800 Fax: (510) 653-9898  •  www.lecg.com

 

 

Operating Office Costs - College Station

 

	
  Operations Per Unit

  	
   

  	
  Yearly Cost

  	
   

  	
  Monthly Cost

  	
   

  	
  Unit Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Telephone

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Equip./Furn.Main

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Property Tax

  	
   

  	
  $

  	
  58,000

  	
   

  	
  4833

  	
   

  	
  372

  	
   

  
	
  Gross Office Rent = Total 13 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  372

  	
   

  
	
  1 Regular Offices = 1 Units

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  74

  	
   

  
	
  20% Netting Up Base Rent

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Furniture

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Computers

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Depreciation Exp. Telephones

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
  Amort. Exp.-Leasehold imprvmnt

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  N/A

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  446

  	
   

  
									

 

 

	
  Operations Per Person

  	
   

  	
  Est. Cost*

  	
   

  	
  # Of People

  	
   

  	
  Total Cost

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Water, Coffee, Equitrac

  	
   

  	
  125

  	
   

  	
  1

  	
   

  	
  125

  	
   

  
	
  Internet & Telephone Access

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  125

  	
   

  

 

*Estimate based on a cost of
$125 per month per person.

 

	
  Name

  	
   

  	
  Occupying #

  of Units

  	
   

  	
  Total

  Unit Cost

  	
   

  	
  Total Per Person Cost

  	
   

  	
  Total

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  NCI/Reed Consulting

  	
   

  	
  1

  	
   

  	
  446

  	
   

  	
  125

  	
   

  	
  571

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
  0

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  0

  	
   

  	
  0

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  571

  	
   

  

 

 

Exhibit G

 

	
   

  	
   

  	
  ATTORNEYS AT
  LAW

  
	
   

  	
   

  	
   

  
	
  FOLGER LEVIN
  & KAHN LLP

  	
   

  	
  Embarcadero
  Center West

  
	
   

  	
   

  	
  275 Battery
  Street, 23rd Floor

  
	
   

  	
   

  	
  San
  Francisco, California 94111

  
	
   

  	
   

  	
  Telephone
  415.986.1800

  
	
   

  	
   

  	
  Facsimile
  415.986.2827

  
	
   

  	
  September
  29, 2000

  	
   

  	
   

  
	
   

  	
   

  	
  Los Angeles
  Office

  
	
   

  	
   

  	
  1900 Avenue
  of the Stars, 28th Floor

  
	
  BY OVERNIGHT COURIER

  	
   

  	
  Los Angeles,
  California 90067

  
	
   

  	
   

  	
  Telephone
  310.556.3700

  
	
  Navigant
  Consulting, Inc.

  	
   

  	
  Facsimile
  310.556.3772

  
	
  615 North
  Wabash

  	
   

  	
   

  
	
  Chicago, IL
  60611

  	
   

  	
  www.flk.com

  
	
   

  
	
   

  
	
  LECG, Inc.

  
	
  2000 Powell
  Street

  
	
  Suite 600

  
	
  Emeryville,
  CA 94608

  
				

 

Dear Ladies and Gentlemen:

 

We have acted
as counsel to LECG, LLC, a California limited liability company (“Buyer”),
and LECG Holding Company, LLC, a California limited liability company (“Buyer
Parent”), in connection with the execution and delivery of the Asset
Purchase Agreement dated as of September 29, 2000 (the “Agreement”)
among Navigant Consulting, Inc., a Delaware corporation (“Parent”), LECG, Inc., a California corporation
(“Seller”), Buyer, and Buyer Parent, the execution and delivery of the
“Buyer Ancillary Agreements” as defined in the Agreement (collectively, with
the Agreement, the “Transaction Documents”), and the transactions
contemplated thereby.

 

Pursuant to
Section 4.4(d) of the Agreement, you have requested that we render this
opinion.  Any capitalized term not
defined herein shall have the meaning ascribed to such term in the Agreement.

 

In connection
with our rendition of this opinion, we have reviewed and relied upon the
following:

 

A.                                   a
certificate signed on behalf of Buyer, certifying as to certain factual matters
(the “Buyer’s Factual Certificate”), a copy of which is attached to this
letter;

 

 

	
   

  	
  Navigant Consulting, Inc.

  LECG, Inc.

  September 29, 2000

  

 

B.                                     a
certificate signed on behalf of Buyer Parent, certifying as to certain factual
matters (the “Buyer Parent’s Factual Certificate”), a copy of which is
attached to this letter;

 

C.                                     a
certificate from the Secretary of State of the State of California dated August
10, 2000, as to the status of Buyer;

 

D.                                    a
certificate from the Secretary of State of the State of California dated
September 27, 2000, as to the status of Buyer Parent; and

 

E.                                      telephonic
confirmation from the Secretary of State of the State of California as of
September 29, 2000 as to the status of Buyer and Buyer Parent.

 

In giving the
opinions expressed below, we have relied on the foregoing documents and
telephonic confirmation; we have also relied on the accuracy of the Buyer’s and
Buyer Parent’s Factual Certificates as to the factual matters expressed therein
and, unless otherwise expressly noted, we have conducted no independent
investigation as to such factual matters. 
Whenever a statement herein is qualified by “to our current actual
knowledge” or any similar phrase, it is intended to indicate that, during the
course of our representation of Buyer and Buyer Parent in connection with the
Agreement, no information that would give us current actual knowledge of the
inaccuracy of such statement has come to the attention of those attorneys
working on this transaction.  However,
except as otherwise expressly indicated, we have not undertaken any independent
investigation to determine the accuracy of such statement, any limited inquiry
undertaken by us during the preparation of this opinion letter should not be
regarded as such an investigation, and no inference as to our knowledge of any
matters bearing on the accuracy of any such statement should be drawn from the
fact of our representation of Buyer and Buyer Parent in connection with the Agreement.

 

Further, for
the purposes of this letter, we have assumed (i) that the execution, delivery
and performance of the Agreement and the Seller Ancillary Instruments by Parent
have been duly authorized by all necessary actions, are within the powers of
Parent and are in compliance with all laws, regulations and agreements to which
Parent is subject; (ii) that the Agreement and the Seller Ancillary Instruments
have been duly executed and delivered by Parent; (iii) that Parent is duly
organized, validly existing and in good standing under the laws of the
jurisdiction in which Parent is organized; (iv) that to the extent required by
the laws of the State of California, Parent is qualified to transact business
in the State of California and is in good standing under its laws; (v) that the
execution, delivery and performance of the Agreement

 

2

 

and the Seller Ancillary
Instruments by Seller have been duly authorized by all necessary actions, are
within the powers of Seller and are in compliance with all laws, regulations
and agreements to which Seller is subject; (vi) that the Agreement and the
Seller Ancillary Instruments have been duly executed and delivered by Seller,
(vii) that Seller is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which Seller is organized; (viii) that
the signatures on all documents which we have examined are genuine; (ix) the
legal capacity of natural persons; and (x) the authenticity of all documents
tendered to us as originals and the conformity to the originals of all
documents submitted to us as certified, telecopied or photostatic copies.

 

All opinions
expressed in this letter are made with reference to the 1989 Report of the
Committee on Corporations of the Business Law Section of the State Bar of
California Regarding Legal Opinions in Business Transactions (August 1989).

 

Based solely
upon the foregoing, and subject to the assumptions, reliances, qualifications,
limitations and exceptions set forth herein, we are of the opinion that the
following statements are true as of the date of this letter:

 

1.             Buyer is a limited liability
company validly existing, duly organized and in good legal standing under the
laws of the State of California.  Buyer
Parent is a limited liability company validly existing, duly organized, and in
good legal standing under the laws of the State of California.  With the exception of Argentina, Utah,
Illinois, Massachusetts and Texas, where Buyer’s applications for qualification
are filed but currently pending.  Buyer
is duly qualified to do business as a foreign limited liability company and in
good standing in all other jurisdictions that require such qualification except
to the extent that failure to so qualify would not have a material adverse
effect on Buyer.  Buyer has the
organizational power and authority to own its properties and assets and to
carry on its business as it is currently conducted.  Buyer Parent has the organizational power and authority to own
its properties and assets and to carry on its business as it is currently
conducted.

 

2.             Buyer has the organizational power
and authority to execute and deliver the Agreement and each Buyer Ancillary
Agreement, to perform its respective obligations thereunder, and to consummate
the transactions evidenced thereby. 
Buyer Parent has the organizational power and authority to execute and
deliver the Agreement and each Buyer Ancillary Agreement, to perform its
respective obligations thereunder, and to consummates the transactions
evidenced thereby.

 

3

 

3.             Buyer’s execution and delivery of
the Agreement and of each Buyer Ancillary Agreement have been duly authorized
by all necessary action on the part of Buyer, and the Agreement and the Buyer
Ancillary Agreements have been duly executed and delivered by Buyer.  Buyer Parent’s execution and delivery of the
Agreement and of each Buyer Ancillary Agreement have been duly authorized by
all necessary action on the part of Buyer Parent, and the Agreement and the
Buyer Ancillary Agreements have been duly executed and delivered by Buyer
Parent.

 

4.             Neither the execution and delivery
of the Transaction Documents, nor the consummation of the transactions
contemplated thereby, nor compliance with or fulfillment of the terms,
conditions and provisions thereof will conflict with, result in a breach of the
terms, conditions or provisions of, or constitute a default, an event of
default or an event creating rights of acceleration, termination or
cancellation or a loss of rights under (a) the Articles of Organization or
Operating Agreement of Buyer or Buyer Parent or (b) to our current actual
knowledge, (i) any material note, instrument, agreement, mortgage, lease,
license, franchise, permit or other authorization, right or restriction to
which Buyer or Buyer Parent is a party or by which Buyer or Buyer Parent is
bound, (ii) any Court Order to which Buyer or Buyer Parent is a party or by
which it is bound or (iii) any requirements of laws affecting Buyer or Buyer
Parent.

 

5.             No approval, authorization,
license, permit, or other consent of, or declaration or filing with, any
federal or state governmental authority is required of Buyer or Buyer Parent on
or prior to the Closing Date for the execution and delivery of the Transaction
Documents or for the consummation by Buyer Parent of the transactions
contemplated thereunder.

 

6.             The Transaction Documents are valid
and binding obligations of Buyer and Buyer Parent and are enforceable against
Buyer and Buyer Parent in accordance with their respective terms, except as the
enforceability thereof maybe subject to or limited by the following:

 

a.             Bankruptcy, insolvency,
reorganization, montorium and other similar laws of general application now or
hereafter in effect relating to or affecting the enforcements of rights of
creditors;

 

b.             General principles of equity
including, without limitation, concepts of materiality, reasonableness,
unconscionability, good faith and fair dealing and the possible unavailability
of specific performance or injunctive relief, regardless of whether considered
in a proceeding in equity or law;

 

4

 

c.             Applicable public policy affecting
enforcement of indemnification or contribution provisions, enforcement of
release provisions to the extent such release provisions purport to release a
contracting party from the consequences of its own acts or omissions, or
enforcement of provisions that purport to waive rights available to Buyer or
Buyer Parent by Statute, constitution, common law or equity; and

 

d.             To the extent provisions of the
Transaction Documents purport to bind persons who are not currently parties to
the Transaction Documents, we express no opinion as to the validity or
enforceability of such provisions with respect to persons who are not currently
parties to the Transaction Documents.

 

Our opinions
set forth above are limited to the matters expressly set forth in this opinion
letter, and no opinion is to be implied or inferred beyond the matters
expressly so stated.

 

The statements
of fact, opinions of law and other matters set forth in this opinion letter
apply solely as of the date hereof.  We
disclaim any responsibility to alert you to any events or circumstances,
including (but not limited to) changes in facts stated herein and changes in
law, occurring in the future.

 

We have not
reviewed, and are not expressing any opinion as to, (i) ERISA laws, rules and
regulations or (ii) federal or state taxation, banking insurance, securities or
“blue sky” laws, rules or regulations.

 

We are
licensed to practice law only in the State of California.  Accordingly, the foregoing opinions apply
only insofar as the laws of the State of California or its political
subdivisions (or relevant federal laws) are applicable, and we express no
opinion with respect to the laws of any other jurisdiction or with respect to
the conflicts of laws principles applicable under the laws of any jurisdiction
(including conflicts of laws principles applicable under the laws of the State
of California).

 

We understand
that the delivery of this opinion to you is a condition to your completion of
the transactions contemplated by the Agreement and that you are relying upon
this opinion in so doing.  This opinion
is furnished to you solely for your benefit with respect to the Agreement and
the transaction contemplated by it and may not be used or relied upon by you
for any other purpose, nor may it be disclosed to or used or relied upon by any
other person for any purpose (except for disclosure to and realize by the
lender(s) to Buyer shown on Annex 1, and

 

5

 

their successors and assigns,
with respect to the contemplated transactions only) without our prior written
consent in each instance.

 

 

	
   

  	
   

  	
  Very truly
  yours,

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  FOLGER LEVIN
  & KAHN LLP

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  [ILLEGIBLE]

  	
   

  
							

 

6

QuickLinks

EXHIBIT 10.5

ASSET PURCHASE AGREEMENT

ARTICLE I DEFINITIONS

ARTICLE II PURCHASE AND SALE

ARTICLE III PURCHASE PRICE

ARTICLE IV CLOSING

ARTICLE V REPRESENTATIONS AND WARRANTIES OF PARENT AND SELLER

ARTICLE VI REPRESENTATIONS AND WARRANTIES OF BUYER PARENT AND BUYER

ARTICLE VII ADDITIONAL AGREEMENTS

ARTICLE VIII CONDITIONS PRECEDENT TO OBLIGATIONS OF BUYER PARENT AND BUYER

ARTICLE IX CONDITIONS PRECEDENT TO OBLIGATIONS OF PARENT AND SELLER

ARTICLE X INDEMNIFICATION

ARTICLE XI GENERAL PROVISIONS

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