Document:

rest_stockform-frenchsubform.htm

    Exhibit
10.10

     

    
      

      

    

    

                                                         ̈      Participant’s
Copy

                                                         ̈      Company’s
Copy

      

      COSTAR
GROUP, INC.

      FORM
OF RESTRICTED STOCK AGREEMENT

      2007
STOCK INCENTIVE PLAN

      FRENCH
SUB-PLAN

      

      

      To:  «Name»

      

      

      CoStar
Group, Inc. (the “Company”) has granted you an
award of Restricted Stock under the French Sub-Plan (the “French Sub-Plan”) of the
CoStar Group, Inc. 2007 Stock Incentive Plan (the “US Plan”), as amended from
time to time (together, the “Plan”), on the terms and
conditions set forth below.  This grant of Restricted Stock is
intended to qualify for the favorable tax and social security treatment in
France applicable to shares granted for no consideration under
Sections L. 225-197-1 to L. 225-197-5 of the French Commercial
Code, as amended (“French-Qualified Restricted
Stock”).  Capitalized terms used herein, but not otherwise
defined, shall have the meanings ascribed in the French Sub-Plan.

       

      1.  Grant of Restricted
Stock.  The Company hereby grants to you the right (the “Stock Grant”) to receive [_________
(______)] shares (the “Shares”) of common shares of
the Company (the “Common
Shares”) free of charge, subject to the terms and conditions set forth
below.  The Date of Grant is [_________, 20__] (the “Date of Grant”).

       

      2.  Governing
Plan.  This Stock Grant is subject in all respects to the
applicable provisions of the Plan, a copy of the current form of which is
attached, except as otherwise noted.  By signing this agreement (the
“Agreement”), you
acknowledge that you have received and read the Plan.  This Agreement
incorporates the Plan by reference and specifies other applicable terms and
conditions.  All capitalized terms not defined by this Agreement have
the meanings given in the Plan.  Whenever a conflict may arise between
the terms of this Agreement and the terms of the Plan, the terms of the Plan
shall control.

       

      3.  Vesting.  The
schedule on which the Shares shall become non-forfeitable and vested is as
follows:

       

      
        	
                a.  

              	
                [Insert Vesting
      Schedule];

              

      

      .

      
        	
                b.  

              	
                Notwithstanding
      anything to the contrary in the Plan, you will not have any rights to
      dividends nor voting rights with respect to unvested
      Shares.  With respect to vested Shares, subject to the
      provisions of the Plan and this Agreement, you shall have all of the
      powers, preferences, and rights of a holder of Common Shares, including
      the right to vote the Shares and the right to dividends and other
      distributions, if any.  You agree and understand that nothing
      contained in this Agreement provides, or is intended to provide, you any
      protection against potential future dilution of your stockholder interest
      in the Company for any reason, except as otherwise stated within the
      Plan.  Any stock dividends paid in respect of any vested portion
      of the Shares will be subject to the same restrictions and other terms and
      conditions that apply to all Common Shares for which such stock dividends
      are issued.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        	
                c.  

              	
                If
      your service as a [insert title] of [Grecam S.A.S.] [Insert appropriate entity
      name] is terminated, the Stock Grant shall immediately terminate
      and be cancelled to the extent it is not vested on the date of your
      termination, and any Shares subject to this Agreement which have not
      vested on or before that date shall be forfeited without the payment of
      any additional consideration.  [For the avoidance of doubt, the
      foregoing shall be without prejudice to the separate cash payments
      provided under Section 8 of that certain Grecam – Director’s Remuneration
      Proposal, among Hugues Kirichian, Claude Ogier and CoStar Limited, dated
      December 21, 2006, as amended.] [Insert last sentence, if
      applicable.]

              

      

       

      4.  Transfer
Restrictions.  You shall not be permitted to sell, transfer,
hypothecate, pledge or otherwise dispose of any Restricted Stock:

       

      
        	
                a.  

              	
                prior
      to the expiration of a two-year period running from the applicable Vest
      Date, or such other period as the Compensation Committee of the Company’s
      Board of Directors (or other administrator of the Plan, the “Plan
      Administrator”) informs you is required to comply with the minimum
      mandatory holding period under Section L. 225-197-1 of the
      French Commercial Code as amended, as applicable to employees or managing
      directors of subsidiaries of issuers of French-Qualified Restricted
      Stock.

              

      

       

      This
minimum holding period shall be deemed to have been complied with if, as a
result of a merger, spin-off, tender-offer, split-off or similar reorganization
of the Company, you receive shares in exchange for vested Restricted Stock, and
you hold such shares for the unexpired balance of the holding period which was
applicable to the Restricted Stock exchanged; and

    

     

    
      
        
          	
                  b.  

                	
                  during
      any Blackout Period, which shall mean the
  periods

                

        

         

      

      (i) from the
tenth (10th) trading day preceding through the tenth (10th) trading day
following the date on which the consolidated accounts or annual corporate
accounts of the Company are made public, and from the date on which the
governing bodies of the Company have knowledge of information which, if made
public, could have a significant impact on the market price of the Common Shares
through the tenth (10th) trading day after such information has been made
public; or

       

      (ii) or such
other black-out periods applicable to the sale of Common Shares of the Company
under US insider trading legislation or imposed by the Company.

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      You may
not assign or transfer the Stock Grant to anyone other than by will or the laws
of descent and distribution until the Shares become vested in accordance with
Section 3 hereof and the Restricted Stock has met the holding period requirement
set forth in Section 4. a. above.  Any attempt to sell, transfer,
hypothecate, pledge or otherwise dispose of any Restricted Stock or the Stock
Grant in violation of this Section 4 shall be null and void.

       

      5.  Procedure for Recording of
Stock Grant and Issuance of Certificates for Vested
Shares.  This Stock Grant shall be recorded in your name in an
account with the Company but Common Shares shall not be issued to, nor title
recorded in your name until the Vest Date.  Following the Vest Date,
certificates representing Shares which have vested shall be issued in your name
provided, that (a) you have complied with any requests for representations under
the Plan; (b) the Company has received proof satisfactory to the Company that a
person seeking to receive the Shares after your death or disability, if
applicable, is authorized and entitled to receive the Shares; and (c) you have
satisfied your Withholding Obligations (as defined below). However, for the
period during which such Shares shall be subject to transfer restrictions
described in Section 4. a. above, the certificates shall remain in the custody
of the Company or its transfer agent, or be held in such other manner as the
Company may otherwise determine in order to ensure compliance with the minimum
holding periods specified above and under applicable French law. Notwithstanding
the foregoing, the Company, in its sole discretion, may also use alternatives to
issuing physical stock certificates, such as “book entry only”
recordation.   At your request, the Plan Administrator shall
provide, or shall ensure that the Company or its transfer agent provides, you
with written evidence of your ownership of the Shares which have
vested.

       

      The
Company will round down any fractional Shares but will not make any cash or
other payments in settlement of fractional shares eliminated by
rounding.  If the Stock Grant has not then fully vested, the Company
will carry forward the fractional Shares rather than eliminating
them.

       

      6.  Death or
Disability.

       

      Upon
written request from your heirs within six months of your date of death, in a
form satisfactory to the Company, the Company shall transfer any vested
Restricted Stock, and at the sole discretion of the Plan Administrator to the
extent such discretion is permitted by French law for French-Qualified
Restricted Stock, any unvested Restricted Stock under this Stock Grant to your
heirs, who shall not be required to comply with any further vesting conditions
or restrictions on the sale of such Shares, unless compliance is required for
French-Qualified Restricted Stock treatment under French law as
amended.

       

      In the
event you become disabled as defined within the second or third categories of
disability defined in Article L341-4 of the French Code of Social Security, the
rules set forth in the preceding paragraph with respect to your death shall
apply mutatis mutandis
as of the date of disability.

      

      7.  Compliance with Securities
Laws.  Upon the acquisition of any Shares pursuant to this
Agreement, you shall enter into such written representations, warranties and
agreements as the Company may reasonably request in order to comply with
applicable securities laws or this Agreement.  Nothing herein
obligates the Company to register or qualify the Shares pursuant to any French
or U.S. federal or state securities laws.

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

      8.  Compliance with
Laws.  Notwithstanding any of the other provisions hereof, you
agree that the Company will not be obligated to issue any Shares pursuant to
this Agreement, if issuing the Shares would violate any provision of any law or
regulation of any governmental authority.  Notwithstanding anything to
the contrary in Section 5, the certificates representing the Common Shares
issued pursuant to this Agreement will be stamped or otherwise imprinted with
legends in such form as the Company may require with respect to any applicable
restrictions on sale or transfer.

       

      9.  Withholding of Tax and
Social Security Contributions.

      

      
        	
                a.  

              	
                You
      understand and agree that the Company has not advised you regarding your
      income tax or social security contribution liability in connection with
      the grant or vesting of the Shares.  You understand that you
      (and not the Company) shall be solely responsible for your own tax and
      social security contribution liability that may arise as a result of the
      transactions contemplated by this Agreement.  The grant and
      vesting of the Shares shall be subject to all applicable income tax and
      social security contribution withholdings.  The Company may
      refuse to release the restriction on any Shares to you until you satisfy
      all applicable tax and social security contribution withholding
      obligations applicable to you (“Withholding Obligations”).  You
      acknowledge that the Company has the right, in its discretion, to deduct
      and retain without notice from shares issuable upon vesting of the Shares
      (or any portion thereof) or, unless otherwise determined by the Plan
      Administrator, from director’s fees or other amounts payable to you,
      shares or cash having a value sufficient to satisfy the Withholding
      Obligations.

              

      

      

      
        	
                b.  

              	
                To
      the extent required by applicable French or U.S. federal, state, or local
      law, you shall make arrangements satisfactory to the Company in its sole
      discretion for the satisfaction of any Withholding Obligations that arise
      by reason of vesting of the Shares or disposition of shares issued as a
      result of such vesting.  By accepting the Stock Grant, you agree
      that, unless and to the extent you have otherwise satisfied your
      Withholding Obligations in a manner permitted or required by the Plan
      Administrator pursuant to the Plan, the Company is authorized (but not
      required) to deduct and retain without notice from the Shares in respect
      of the vested portion of the Shares the whole number of shares (rounding
      down) having a Fair Market Value on the vesting date or, if not a trading
      day, the first trading day before the vesting date (as determined by the
      Company consistent with any applicable tax requirements) sufficient to
      satisfy the applicable  Withholding Obligations. If the withheld
      shares are not sufficient to satisfy the Withholding Obligations, you
      agree to pay to the Company as soon as practicable, by cash or check or,
      unless otherwise determined by the Plan Administrator, deducted from
      amounts payable to you, any amount of the Withholding Obligation that is
      not satisfied by the withholding of  Shares described
      above.  Furthermore, the Company shall have the right to deduct
      and withhold any such applicable taxes from, or in respect of, any
      dividends or other distributions paid on or in respect of the vested
      Common Shares comprising the
Shares.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

         

      

      
        	
                c.  

              	
                You
      are ultimately liable and responsible for all taxes and social security
      contributions owed by you in connection with the Shares, regardless of any
      action the Company takes or any transaction pursuant to this Section 9
      with respect to any Withholding Obligations that arise in connection with
      the Shares. The Company makes no representation or undertaking regarding
      the tax treatment of the grant, issuance, or vesting of the Shares or the
      subsequent sale of any of the Shares acquired upon vesting of the Shares.
      The Company does not commit and is under no obligation to structure the
      Common Shares to reduce or eliminate your tax liability[, and none of the
      Company or any of its affiliates has any further obligations under the
      second paragraph of Section 7 of that certain Grecam – Directors’
      Remuneration Proposal, among Hugues Kirichian, Claude Ogier and CoStar
      Limited, dated December 21, 2006].  [Insert last clause, as
      applicable.]

              

      

       

      10.  Extraordinary Corporate
Transactions.  You understand and agree that the existence of
this Stock Grant will not affect in any way the right or power of the Company or
its stockholders to make or authorize any or all adjustments, recapitalizations,
reorganizations, or other changes in the Company’s capital structure or its
business or any merger or consolidation of the Company, or any issuance of
bonds, debentures, preferred or other stocks with preference ahead of or
convertible into, or otherwise affecting the Common Shares or the rights
thereof, or the dissolution or liquidation of the Company, or any sale or
transfer of all or any part of its assets or business, or any other corporate
act or proceeding, whether of a similar character or otherwise.

      
        	 
      
	
                11.  Data
      Protection. By entering into
      this Agreement and accepting the Stock Grant, you (a) explicitly and
      unambiguously consent to the collection, use and transfer outside the
      European Union, in electronic or other form, of any of your personal data
      that is necessary to facilitate the implementation, administration and
      management of the Stock Grant and the Plan, (b) understand that the
      Company and [Grecam S.A.S.] [Insert appropriate entity
      name] may, for the purpose of implementing, administering and
      managing the Plan, hold certain personal information about you, including,
      but not limited to, your name, home address and telephone number, date of
      birth, social security number or other identification number, nationality,
      job title, and details of all awards or entitlements to Common Shares
      granted to you under the Plan or otherwise (“Data”), (c) understand
      that Data may be transferred to any third parties, including outside the
      European Union, assisting in the implementation, administration and
      management of the Plan, including any broker with whom the Shares issued
      upon vesting may be deposited, and that these recipients may be located in
      your country or elsewhere, and that the recipient’s country may have
      different data privacy laws and protections than your country; (d)
      authorize the Company, its subsidiaries and its agents to store and
      transmit such information in electronic form, (e) understand you may, at
      any time, review the Data, request additional information about the
      storage and processing of Data, request any necessary amendments to Data,
      or refuse or withdraw your consent herein, in any case without cost to
      you, by contacting the Company in writing, and (f) further understand that
      refusing or withdrawing consent may affect your ability to participate in
      the Plan.

              

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

      
      

       

      
        	
                12.  No Right to
      Re-appointment.  [Nothing in this Agreement restricts the
      right of the Company or any of its affiliates to terminate your
      appointment or fail to reappoint you as a mandataire social at
      any time, with or without cause.  The termination of your
      appointment or failure to re-appoint you, whether by the Company or any of
      its affiliates or otherwise, and regardless of the reason therefore, has
      the consequences provided for hereunder, under the Plan and under any
      applicable contractual agreement.]  [Nothing in this Agreement
      restricts the right of the Company or any of its affiliates to terminate
      your employment at any time, with or without cause.  The
      termination of employment, whether by the Company or any of its affiliates
      or otherwise, and regardless of the reason therefore, has the consequences
      provided for hereunder, under the Plan and under any applicable employment
      or severance agreement.]  [Use applicable provision,
      depending upon grantee’s position.]

              
	 
      
	
                13.  Language. If you have received
      this Agreement or any other document related to the Plan or the Stock
      Grant translated into a language other than English and if the translated
      version is different than the English version, the English version will
      control.

              

      

      

      14.  Foreign Currency Exchange
Controls. To
the extent required by French law, you agree to declare in your personal income
tax return all foreign accounts holding shares issued pursuant to this Stock
Grant and to declare to the appropriate customs and excise authorities any cash
or securities derived from this Stock Grant that you import or export without
the use of a financial institution.

       

      15.  Resolution of
Disputes.  As a condition of this Stock Grant, you, on behalf
of yourself, your heirs, successors and personal representatives (“you and your successors”),
agree that any dispute or disagreement which may arise hereunder shall be
decided by the Plan Administrator.  You and your successors agree to
accept as binding, conclusive and final all decisions or interpretations of the
Plan Administrator concerning any questions arising under the Plan with respect
to the Stock Grant

       

      16.  General.

      

      
        	
                a.  

              	
                This
      Agreement and the Plan constitute the entire understanding between you and
      the Company regarding the Stock Grant.  Any prior agreements,
      commitments or negotiations concerning the Stock Grant are
      superseded.

              

      

      

      
        	
                b.  

              	
                The
      laws of the State of Delaware will govern all matters relating to this
      Agreement, without regard to the principles of conflict of
      laws.

              

      

      

      
        	
                c.  

              	
                Any
      notice you give to the Company must be in writing and either
      hand-delivered or mailed to the Corporate Secretary of the Company (or to
      the Chief Financial Officer if either you would receive the notice or the
      position is vacant).  If mailed, it should be sent by certified
      mail and be addressed to the foregoing executive at the Company’s then
      corporate headquarters.  Any notice given to you will be
      addressed to you at your address as reflected on the personnel records of
      the Company.  You may change the address for notice by like
      notice to the Company.  Notice will be deemed to have been duly
      delivered when hand-delivered, or, if mailed, two business days after such
      notice is postmarked.

              

      

      

      
        	
                d.  

              	
                In
      the event that any provision of this Agreement is declared to be illegal,
      invalid or otherwise unenforceable by a court of competent jurisdiction,
      such provision shall be reformed, if possible, to the extent necessary to
      render it legal, valid and enforceable, or otherwise deleted, and the
      remainder of the terms hereunder shall not be affected except to the
      extent necessary to reform or delete such illegal, invalid or
      unenforceable provision.

              

      

      

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      
        	
                e.  

              	
                This
      Agreement shall inure to the benefit of and be binding upon the parties
      hereto and their respective permitted heirs, beneficiaries, successors and
      assigns.

              

      

      

      
        	
                f.  

              	
                The
      headings preceding the text of the sections hereof are inserted solely for
      convenience of reference, and shall not constitute a part of this
      Agreement, nor shall they affect its meaning, construction or
      effect.

              

      

      

      

      

      COSTAR
GROUP, INC.

      

      By____________________________________

      Name:
___________________________

      Title:
____________________________

      
        
          
             

          

           

        

        
          7

          
            

          

        

        
           

        

      

      ACKNOWLEDGMENT

      

      I
acknowledge receipt of a copy of the attached Plan.  I represent that
I have read and am familiar with the Plan’s terms.  I accept the Stock
Grant subject to all of the terms and provisions of this Agreement and of the
Plan under which it is granted, as the Plan may be amended in accordance with
its terms.  I agree to accept as binding, conclusive, and final all
decisions or interpretations of the Plan Administrator concerning any questions
arising under the Plan with respect to the Stock Grant.

      

      

      Date:                      ________________                           ________________________________________

      Signature
of Stock Grantee

      

      

      No
one may sell, transfer, or distribute this Stock Grant or the securities that
may be issued in connection with this Stock Grant without an effective
registration statement relating thereto or an opinion of counsel satisfactory to
the Company or other information and representations satisfactory to the Company
that such registration is not required.

      

      

      
        
          
          

        

        
          8pm_service-agmt.htm

    Exhibit
10.14

      

       

      
        	
                Dated  16 FEBRUARY
      2007

              

      

       

      (1)  PROPERTY
INVESTMENT EXCHANGE LIMITED

       

      –
and –

       

      (2)  PAUL
MARPLES

      
        

         

        

      

       

      EXECUTIVE
SERVICE CONTRACT

       

      Subject
to Contract

      
        

         

      

      
        
          
            GIBSON,
DUNN & CRUTCHER LLP

            __________

             

            Telephone
House

             

            2-4
Temple Avenue, London EC4Y 0HB

             

            020 7071
4000           020 7071
4244  Fax

             

             

          

        

         

         

      

      

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      CONTENTS

       

      
        	
                Clause

              	Subject
      Matter	
                Page

              

      

       

      
        	
                1.

              	
                DEFINITIONS 

              	
                1

              

      

      
        	
                2.

              	
                COMMENCEMENT 

              	
                1

              

      

      
        	
                3.

              	
                ROLE
      AND RESPONSIBILITIES 

              	
                2

              

      

      
        	
                4.

              	
                DIRECTORSHIPS 

              	
                3

              

      

      
        	
                5.

              	
                TIME
      COMMITMENT 

              	
                3

              

      

      
        	
                6.

              	
                OUTSIDE
      BUSINESS INTERESTS 

              	
                4

              

      

      
        	
                7.

              	
                SALARY 

              	
                4

              

      

      
        	
                8.

              	
                BONUS 

              	
                4

              

      

      
        	
                9.

              	
                BENEFITS 

              	
                5

              

      

      
        	
                10.

              	
                INSURANCE
      BENEFITS 

              	
                6

              

      

      
        	
                11.

              	
                VACATION 

              	
                7

              

      

      
        	
                12.

              	
                SICKNESS 

              	
                7

              

      

      
        	
                13.

              	
                BUSINESS
      EXPENSES 

              	
                7

              

      

      
        	
                14.

              	
                CONFIDENTIAL
      INFORMATION 

              	
                7

              

      

      
        	
                15.

              	
                DATA
      PROTECTION 

              	
                9

              

      

      
        	
                16.

              	
                INTELLECTUAL
      PROPERTY 

              	
                9

              

      

      
        	
                17.

              	
                DURATION
      AND TERMINATION 

              	
                10

              

      

      
        	
                18.

              	
                GARDEN
      LEAVE 

              	
                11

              

      

      
        	
                19.

              	
                PAYMENT
      IN LIEU OF NOTICE 

              	
                11

              

      

      
        	
                20.

              	
                OBLIGATIONS
      ON TERMINATION 

              	
                12

              

      

      
        	
                21.

              	
                RESTRICTIONS
      AFTER TERMINATION 

              	
                13

              

      

      
        	
                22.

              	
                DEFINITIONS 

              	
                14

              

      

      
        	
                23.

              	
                RECONSTRUCTION
      AND AMALGAMATION 

              	
                15

              

      

      
        	
                24.

              	
                DISCIPLINARY
      AND GRIEVANCE PROCEDURES 

              	
                15

              

      

      
        	
                25.

              	
                NOTICES 

              	
                16

              

      

      
        	
                26.

              	ENTIRE
      AGREEMENT AND PREVIOUS
      CONTRACTS                                
      	
                16

              

      

      
        	
                27.

              	
                PROPER
      LAW 

              	
                17

              

      

      
        	
                28.

              	
                CONSTRUCTION 

              	
                17

              

      

       

       

      
        
          
             

          

          i

        

        
           

          
            

          

        

        
           

        

      

      

       

      EXECUTIVE
SERVICE CONTRACT

       

      DATE OF CONTRACT: 16 FEBRUARY 2007

       

      
        PARTIES:

      

       

      
        	
                (1)

              	
                PROPERTY INVESTMENT EXCHANGE
      LIMITED, whose registered office is at 25 Harley Street, London,
      W1G 9BR (the "Company");
      and

              

      

       

      
        	
                (2)

              	
                PAUL MARPLES, of 115
      Palewell Park, London SW14 8JJ (the "Executive").

              

      

       

      
        THE
FOLLOWING TERMS HAVE BEEN AGREED BETWEEN THE PARTIES:

      

       

      
        	
                1.  

              	
                DEFINITIONS

              

      

       

      In this
agreement (unless the context requires otherwise):

       

      "Board" means the board of
directors from time to time of the Company (including any committee of the board
duly appointed by it);

       

      "Commencement Date" means the
date of this Agreement;

       

      "CoStar" means CoStar Group,
Inc.;

       

      "Family Member" means the
Executive, his spouse, cohabitee, child, stepchild or parent;

       

      "FOCUS" means FOCUS
Information Limited;

       

      "Group Company" means the
Company, CoStar or any subsidiary undertaking (as defined in section 258 of the
Companies Act 1985) or associated company (as defined in sections 416 et seq. of
the Income and Corporation Taxes Act 1988) of CoStar and "Group Companies" means all of
them;

       

      "HMRC" means Her Majesty's
Revenue & Customs and, where relevant, any predecessor body which carried
out part of its functions;

       

      
        	
                2.  

              	
                COMMENCEMENT

              

      

       

      
        	
                2.1  

              	
                The
      Executive's employment on the terms of this agreement (the "Appointment") shall
      commence on the Commencement Date.

              

      

       

      
        	
                2.2  

              	
                The
      Executive's period of employment with the Company began on 1 September
      2000.

              

      

       

      
        	
                2.3  

              	
                The
      Executive represents and warrants to the Company that he is neither
      prevented nor restricted by any court order or any obligation to any third
      party (whether express or implied) from entering into this agreement or
      performing any of his obligations under it and undertakes to indemnify the
      Company against any claims, costs, damages, liabilities or expenses which
      the Company may incur as a result of any claim that he is in breach of any
      such obligations.

              

      

       

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      
        	
                2.4  

              	
                The
      Executive has been provided with details of any rules, policies and
      procedures appropriate to his employment.  These do not form
      part of the Executive's contract of employment with the
      Company.  To the extent that there is a conflict between the
      terms of this agreement and any such rules, policies or procedures then
      this agreement shall prevail.

              

      

       

      
        	
                3.  

              	
                ROLE
      AND RESPONSIBILITIES

              

      

       

      
        	
                3.1  

              	
                The
      Executive shall perform the duties of European Product Director or such
      other role as the Board, acting by the Chief Executive Officer or such
      other officer as the Board determines ("CEO"), may consider
      appropriate.

              

      

       

      
        	
                3.2  

              	
                The
      Executive shall:

              

      

       

      
        	
                3.2.1  

              	
                devote
      the whole of his working time and attention to the duties assigned to
      him

              

      

       

      
        	
                3.2.2  

              	
                faithfully
      and diligently serve the Company (and all Group
  Companies);

              

      

       

      
        	
                3.2.3  

              	
                use
      his best endeavours to promote and protect the interests of the Company
      (and all Group Companies);

              

      

       

      
        	
                3.2.4  

              	
                comply
      with his fiduciary duties;

              

      

       

      
        	
                3.2.5  

              	
                obey
      all reasonable and lawful directions given to him by or under the
      authority of the Board and the CEO;

              

      

       

      
        	
                3.2.6  

              	
                perform
      services for and hold offices in any Group Company without additional
      remuneration (except as otherwise
agreed);

              

      

       

      
        	
                3.2.7  

              	
                carry
      out his duties and exercise his powers jointly with such person or persons
      as the Board may appoint to act jointly with
  him;

              

      

       

      
        	
                3.2.8  

              	
                work
      at such of the Company's offices within the Greater London Metropolitan
      area as the Board may from time to time
require;

              

      

       

      
        	
                3.2.9  

              	
                travel
      to such places (whether in or outside the United Kingdom) by such means
      and on such occasions as the Board may from time to time
      require;

              

      

       

      
        	
                3.2.10  

              	
                make
      such reports to the CEO, the Board and the board of directors of the
      Company's holding company on any matters concerning the affairs of the
      Company or any Group Company as are reasonably
  required;

              

      

       

      
        	
                3.2.11  

              	
                not
      enter into any arrangement on behalf of any Group Company which is outside
      its normal course of business or his normal duties or which contains
      unusual or onerous terms;

              

      

       

      
        	
                3.2.12  

              	
                comply
      with any code of practice issued by the Company or CoStar from time to
      time and all requirements, recommendations, rules and regulations (as
      amended from time to time) of all regulatory authorities relevant to the
      Company and any Group Company with which the Executive is concerned;
      and

              

      

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      
        	
                3.2.13  

              	
                consent
      to the Company monitoring and recording any use that he makes of its
      telecommunication or computer systems and will comply with any policies
      that it may issue from time to time concerning the use of such
      systems.

              

      

       

      
        	
                4.  

              	
                DIRECTORSHIPS

              

      

       

      
        	
                4.1  

              	
                The
      Executive:

              

      

       

      
        	
                4.1.1  

              	
                shall
      hold such offices as a director or secretary (an "Office") in the Company
      or any Group Company as the Board may from time to time
      require;

              

      

       

      
        	
                4.1.2  

              	
                shall
      not be entitled to any additional remuneration by reason of his holding
      any Office in the Company or any Group
Company;

              

      

       

      
        	
                4.1.3  

              	
                (shall
      if the Board so requests) immediately resign without claim for
      compensation from any Office held in the Company and any Group Company and
      the Executive irrevocably appoints the Company to be his attorney to
      execute and do any such instrument or thing and generally to use his name
      for the purpose of giving the Company or its nominee the full benefit of
      this clause;

              

      

       

      
        	
                4.1.4  

              	
                shall
      not do anything that would cause him to be disqualified from holding any
      Office;

              

      

       

      
        	
                4.1.5  

              	
                shall
      not (without the prior written approval of the Board) resign from any
      Office which he holds in the Company or any Group Company or any
      trusteeship which he holds as a result of the
  Appointment;

              

      

       

      
        	
                4.1.6  

              	
                shall
      hold any Office in the Company (or any Group Company) subject to the
      articles of association of the Company (or the relevant Group Company) as
      amended from time to time.

              

      

       

      
        	
                5.  

              	
                TIME
      COMMITMENT

              

      

       

      
        	
                5.1  

              	
                The
      Executive shall work such hours as are necessary for the proper
      performance of his duties.

              

      

       

      
        	
                5.2  

              	
                Regulation
      4(1) of the Working Time
      Regulations 1998 (the "Regulations") limits the
      average working week (calculated in accordance with the Regulations) of
      each worker to a maximum of 48 hours.  Whilst the parties
      consider that the nature of the Executive's position is such that his
      employment is not and cannot be measured and so his employment falls
      within the scope of Regulation 20 of the Working Time
      Regulations 1998, the Executive agrees to opt out of Regulation 4
      of the Regulations, to the extent that it applies to his employment (if at
      all).  Should the Executive wish to terminate this opt-out then
      he may do so by giving the Company not less than three months' written
      notice.

              

      

       

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      
        	
                6.  

              	
                OUTSIDE
      BUSINESS INTERESTS

              

      

       

      
        	
                6.1  

              	
                Save
      as a representative of the Company or with the prior written approval of
      the Board, the Executive shall not at any time during the Appointment
      (whether directly or indirectly, paid or
  unpaid):

              

      

       

      
        	
                6.1.1  

              	
                be
      engaged or concerned in the conduct
of;

              

      

       

      
        	
                6.1.2  

              	
                be
      or become an employee, agent, partner, consultant or director of;
      or

              

      

       

      
        	
                6.1.3  

              	
                assist
      or have any financial interest in, 

                 

                any
      other actual or prospective business or profession.  For the
      avoidance of doubt, the Executive shall be deemed to have an indirect
      involvement or financial interest in an actual or prospective business or
      profession in which a Family Member or any trust established for the
      benefit of, or company controlled by, a Family Member is involved or
      financially interested where such business or profession competes with the
      business of any Group Company.

              

      

       

      
        	
                6.2  

              	
                The
      Executive shall be permitted to hold shares or securities of a company any
      of whose shares or securities are quoted or dealt in on any recognised
      investment exchange provided that:

              

      

       

      
        	
                6.2.1  

              	
                any
      such holding shall not exceed one per cent. of the issued share capital of
      the company concerned and is held by way of bona fide investment only
      ("Investment");
      and

              

      

       

      
        	
                6.2.2  

              	
                he
      complies with any applicable rules of the Company, any Group Company or
      any Regulatory Authority covering the holding of shares or
      securities.

              

      

       

      
        	
                7.  

              	
                SALARY

              

      

       

      
        	
                7.1  

              	
                The
      Executive shall be paid a salary of £140,000 per annum or such other rate
      as may be agreed from time to time (the "Salary") subject to such
      deductions as are required by law.  The Salary shall accrue from
      day to day.  The Salary shall be payable by bank credit transfer
      in equal monthly instalments in arrears on or about the last working day
      of each calendar month.

              

      

       

      
        	
                7.2  

              	
                The
      Company may deduct from any sums owed to the Executive all sums which he
      properly owes the Company or any Group Company from time to
      time.

              

      

       

      
        	
                8.  

              	
                BONUS

              

      

       

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      
        	
                8.1  

              	
                The
      Board may (at its absolute discretion) award the Executive bonus payments
      of such amounts, being up to an annual aggregate maximum of 40% of Salary,
      as the CEO may determine in his or her absolute discretion having regard
      to the Executive's performance against such reasonable goals and
      objectives for individual and/or Company and/or Group Company performance
      as set from time to time by the CEO.  If the Executive receives
      any bonus payment then the Company is not obliged to make any further
      bonus payments and any bonus payment will not be part of the contractual
      remuneration or Salary hereunder. If the Executive's employment terminates
      (or notice is served to terminate his employment) (for whatever reason) he
      will not be entitled to receive any bonus payments in respect of any
      period.  The provisions of this clause shall not create any
      contractual obligation upon the Company to pay to the Executive any bonus
      in respect of any period.  During the first year of the
      Appointment only, the Executive bonus range will be between 10% and 40% of
      Salary.

              

      

       

      
        	
                9.  

              	
                BENEFITS

              

      

       

      
        	
                9.1  

              	
                The
      Executive shall be entitled to:

              

      

       

      
        	
                9.1.1  

              	
                participate
      in the CoStar 1998 Stock Incentive Plan (the "Plan"), subject to the
      rules of the Plan as amended from time to time provided, however, that the
      Executive hereby agrees that following the termination of the Appointment
      for whatever reason he shall not have any claim against the Company or any
      Group Company under this Agreement in respect of any rights he may have
      acquired under the Plan.  The Company shall, subject to the
      Executive entering into and complying with the terms of this Agreement,
      award the Executive 10,000 shares of restricted common stock (the "Restricted Stock") of
      CoStar, vesting one-fourth on the first anniversary of the date of this
      Agreement, one-fourth on the second anniversary of the date of this
      Agreement, one-fourth on the third anniversary of the date of this
      Agreement, and one fourth on the fourth anniversary of the date of this
      Agreement.  Any grant of Restricted Stock and all determinations
      with regard to the Restricted Stock award shall be subject to and made in
      accordance with the terms of the Plan and CoStar's form of grant agreement
      thereunder; and

              

      

       

      
        	
                9.1.2  

              	
                certain
      insurance benefits as provided in clause 10
  below.

              

      

       

      
        	
                9.2  

              	
                During
      the Appointment the Company shall contribute an amount equal to x% of the Salary in
      equal monthly instalments in arrears to such HMRC approved pension scheme
      (the "Pension
      Scheme") established for the benefit of the Executive as the
      Executive may notify to the Company in writing.  The Executive's
      contributions to the Pension Scheme shall be made by way of deduction from
      the Salary.  The Company's contributions to the Pension scheme
      shall be subject to the rules of the scheme and the requirements of HMRC
      as amended from time to time.  For the purpose of this clause
      x shall be
      calculated having regard to the amount of the Executive's contribution to
      the Pension Scheme, and as set out
below:

              

      

       

      

      
        	
                Executive
      Contribution to the Pension Scheme (as a % of Salary)

              	
                x equals

                (as
      a % of Salary)

              
	
                Less
      than 6%

              	
                4%

              
	
                6%

              	
                41⁄2%

              
	
                7%

              	
                5%

              
	
                8%

              	
                51⁄2%

              
	
                9%

              	
                6%

              

      

       

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      
        	
                9.3  

              	
                The
      Executive's rights under the benefit plans and schemes detailed in this
      clause 9 and clause 10 below, including rights arising upon termination of
      the Appointment (howsoever such termination arises) shall be exclusively
      governed by the rules of such plans and schemes and the Executive shall
      have no rights under this Agreement (or any alleged breach of it) to any
      compensation under or in respect of such benefits, whether upon
      termination of the Appointment or
otherwise.

              

      

       

      
        	
                10.  

              	
                INSURANCE
      BENEFITS

              

      

       

      
        	
                10.1  

              	
                Subject
      to clauses 10.1.1 to 10.1.4 below, during the Appointment the Executive
      may participate in any permanent health insurance scheme and any life
      assurance scheme with a third party insurer provided by the Company
      subject to the terms and conditions of those schemes as amended from time
      to time, the rules of the relevant insurance policy as amended from time
      to time and his satisfying the requirements of the scheme
      insurers.  The Executive's participation in such a scheme shall
      be on the basis that:

              

      

       

      
        	
                10.1.1  

              	
                In
      the case of any permanent health insurance
  scheme:

              

      

       

      
        	
                (a)  

              	
                the
      Company shall only be obliged to make payments to the Executive to the
      extent that it has received payment from the scheme insurers for that
      purpose and, for the avoidance of doubt, no other sums will be due to the
      Executive from the Company.  The Company shall use reasonable
      endeavours to assist the Executive in making and pursuing any bona fide
      claim for benefits under the
scheme;

              

      

       

      
        	
                (b)  

              	
                if
      the Executive is receiving benefits under any such scheme then he will, if
      requested by the Company, immediately resign from any Office held in the
      Company or any Group Company

              

      

       

      
        	
                (c)  

              	
                the
      Company may by notice and with immediate effect discontinue payment (in
      whole or in part) of the Salary and the provision of any benefits in
      respect of any period during which the Executive shall be in receipt of
      any benefits under the scheme.

              

      

       

      
        	
                10.1.2  

              	
                without
      prejudice to the Executive's statutory rights, the Company may terminate
      the Executive's employment even if to do so would result in an actual or
      prospective loss of entitlement to benefits under the
    scheme;

              

      

       

      
        	
                10.1.3  

              	
                the
      Executive's health is not such that the Company is unable to obtain cover
      or to obtain cover on terms and at a premium which the Company considers
      reasonable;

              

      

       

      
        	
                10.1.4  

              	
                the
      Company may, as part of a review of insurance benefits provided to
      employees within the Company or its Group Companies, change the provider
      of such insurance and/or the level of cover provided and/or amend the
      scheme in any other way and/or terminate the benefit of such insurance on
      notice to the Executive provided that any such change, amendment or
      termination is consistent with the treatment of other senior employees of
      the Group Companies based in the United
Kingdom.

              

      

       

      
        
           

        

        
          6

          
            

          

        

        
           

        

      

       

      
        	
                11.  

              	
                VACATION

              

      

       

      
        	
                11.1  

              	
                The
      Executive shall be entitled to 25 working days' paid vacation (in addition
      to the usual eight English public holidays) in each complete leave year
      worked in accordance with the Company's vacation
  policy.

              

      

       

      
        	
                12.  

              	
                SICKNESS

              

      

       

      
        	
                12.1  

              	
                Provided
      the Executive complies with the Company's rules on notification and
      evidence of absence due to illness or injury (as amended from time to
      time) he shall be paid the Salary and receive his contractual benefits
      during any absence from work due to illness or injury for an aggregate of
      up to 65 working days in any period of 12 months.  Such payments
      shall be reduced by the amount of any insurance or other benefit to which
      he is entitled as a result of his incapacity and any sickness or other
      benefit to which he is entitled under social security legislation for the
      time being in force.  Thereafter, the Company may by notice and
      with immediate effect (or from a future date specified in the notice)
      discontinue payment (in whole or part) of the Salary and provision of any
      benefits until such incapacity shall
cease.

              

      

       

      
        	
                12.2  

              	
                The
      Company may require the Executive to undergo examinations by medical
      advisers appointed or approved by the Board and the Executive authorises
      such advisers to disclose to the Company the results of such examinations
      and to discuss with it any matter arising from such
      examinations.

              

      

       

      
        	
                12.3  

              	
                If
      the Executive is unable to perform his duties under this agreement as a
      result of ill health, accident or injury caused by actionable negligence,
      nuisance or breach of any statutory duty on the part of any third party in
      respect of which damages may be recoverable then the Executive will (if
      requested to do so by the Board) pursue a claim against that third party
      in respect of his loss of earnings for the period during which he was paid
      by the Company but unable to perform his duties under this agreement and
      will account to the Company for sums recovered in respect of such loss,
      less any costs borne by him in connection with the recovery of such
      damages or compensation.

              

      

       

      
        	
                13.  

              	
                BUSINESS
      EXPENSES

              

      

       

      The
Company shall reimburse the Executive for all reasonable travel, accommodation
and other expenses wholly, exclusively and necessarily incurred in or about the
performance of his duties hereunder and in accordance with the FOCUS expenses
policy and which expenses shall be evidenced as required by FOCUS.

       

      
        	
                14.  

              	
                CONFIDENTIAL
      INFORMATION

              

      

       

      
        	
                14.1  

              	
                Without
      prejudice to his common law duties, the Executive shall not directly or
      indirectly  (save in the proper course of his duties, as
      required by law or as authorised by the Board) use or communicate to any
      person (and shall use his best endeavours to prevent the use or
      communication of) any trade or business secrets or confidential
      information of or relating to the Company or any Group Company (including
      but not limited to details of (i) financial and business information,
      such as information with respect to costs, commissions, fees, profits,
      sales, markets, mailing lists, strategies and plans for future business,
      new business, product or other development, potential acquisitions or
      divestitures, and new marketing ideas; (ii) product and technical
      information, such as product formulations, new and innovative product
      ideas, methods, procedures, devices, machines, equipment, data processing
      programs, software, software codes, computer models, and research and
      development projects; (iii) marketing information, such as the identity of
      the Company’s customers or any Group Company's, customers, distributors
      and suppliers and their names and addresses, the names of representatives
      of the Company’s or any Group Company's customers, distributors or
      suppliers responsible for entering into contracts with the Company or any
      Group Company, the amounts paid by such customers to the Company or any
      Group Company, specific customer needs and requirements, and leads and
      referrals to prospective customers; (iv) personnel information, such
      as the identity and number of the Company’s or any Group Company's
      employees, their salaries, bonuses, benefits, skills, qualifications, and
      abilities; and (v) research methods, methods of compiling real estate
      information, methods of creating the Company’s or any Group Company's
      database, procedures, devices, machines, equipment, data processing
      programs, software, computer models, research projects, and other means
      used by the Company or any Group Company in the conduct of its business)
      which he creates, develops, receives or obtains while in the service of
      the Company or any Group Company.  Subject to clause 14.2 below,
      This restriction shall continue to apply after the termination of the
      Appointment howsoever arising without limit in
  time.

              

      

       

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      
        	
                14.2  

              	
                Reference
      to confidential information in this clause 14 shall not include
      information which is in the public domain at the time of its disclosure or
      which comes into the public domain after its disclosure otherwise than by
      reason of a breach of this agreement, information which was already
      demonstrably known to the receiving party at the date of disclosure and
      had not been received in confidence from the Company or information which
      is required to be disclosed as a matter of law.  It shall
      include information in the public domain for so long as the Executive is
      in a position to use such information more readily than others who have
      not worked for the Company.

              

      

       

      
        	
                14.3  

              	
                During
      the Appointment the Executive shall not make (other than for the benefit
      of the Company) any record (whether on paper, computer memory, disc or
      otherwise) relating to any matter within the scope of the business of the
      Company or any Group Company or their customers and suppliers or
      concerning its or their dealings or affairs or (either during the
      Appointment or afterwards) use such records (or allow them to be used)
      other than for the benefit of the Company or the relevant Group
      Company.  All such records (and any copies of them) shall belong
      to the Company or the relevant Group
Company.

              

      

       

      
        	
                14.4  

              	
                The
      Executive shall not during the Appointment either directly or indirectly
      publish any opinion, fact or material on any matter within the scope of
      the business of the Company or any Group Company (whether confidential or
      not);

              

      

       

      
        	
                14.5  

              	
                The
      Executive shall not, either during the Appointment or following its
      termination, make any misleading, derogatory or untrue comments or
      statements (whether orally or in writing) concerning the Company, any
      Group Company, its or their directors, officers or
    employees.

              

      

       

      
        
           

        

        
          8

          
            

          

        

        
           

        

      

       

      
        	
                15.  

              	
                DATA
      PROTECTION

              

      

       

      
        	
                15.1  

              	
                The
      Executive consents to the Company and other Group Companies holding and
      processing information about him (for legal, personnel, administrative and
      management purposes) and, in particular, holding and
      processing:

              

      

       

      
        	
                15.1.1  

              	
                his
      health records and any medical reports given to or obtained by the
      Company, to monitor sick leave and take decisions as to his fitness to
      work or the need for adjustments in the
  workplace;

              

      

       

      
        	
                15.1.2  

              	
                any
      information relating to criminal proceedings in which he has been or is
      involved, for any insurance purposes and to comply with legal requirements
      and obligations to third parties.

              

      

       

      
        	
                15.2  

              	
                The
      Company may make such information available to Group Companies, those who
      provide products or services to the Company and Group Companies (such as
      advisers and payroll administrators), regulatory authorities, potential or
      future employers, governmental or quasi-governmental organisations and
      potential purchasers of the Company or the business in which the Executive
      works.

              

      

       

      
        	
                15.3  

              	
                The
      Executive consents to the transfer of such information to the Company's
      Group Companies outside the European Economic Area in order to further its
      business interests.

              

      

       

      
        	
                16.  

              	
                INTELLECTUAL
      PROPERTY

              

      

       

      
        	
                16.1  

              	
                For
      the purposes of this clause "Intellectual Property
      Rights" means any and all patents, trade marks, service marks,
      rights in designs, get-up, trade, business or domain names, goodwill
      associated with the foregoing, copyright (including rights in computer
      software and databases), topography rights (in each case whether
      registered or not and any applications to register or rights to apply for
      registration of any of the foregoing), rights in inventions, knowhow,
      trade secrets and other confidential information, rights in databases and
      all other intellectual property rights of a similar or corresponding
      character which may now or in the future subsist in any part of the
      world.

              

      

       

      
        	
                16.2  

              	
                The
      Executive acknowledges that because of the nature of his duties and the
      particular responsibilities arising as a result of such duties which he
      owes to the Company and the Group Companies he has a special obligation to
      further the interests of the Company and the Group
      Companies.  In particular, the Executive's duties will include
      reviewing the products and services of the Company and Group Companies
      with a view to identifying and implementing potential
      improvements.

              

      

       

      
        	
                16.3  

              	
                The
      Executive shall promptly disclose to the Board any idea, invention or work
      which is relevant to (or capable of use in) the business of the Company or
      any Group Company now or in the future made by him in the course of his
      employment (whether or not in the course of his duties).  The
      Executive acknowledges that all Intellectual Property Rights subsisting
      (or which may in the future subsist) in any such ideas, inventions or
      works will, on creation, vest in and be the exclusive property of the
      Company and if they do not do so he shall assign them to the Company (upon
      its request and at its cost).  The Executive irrevocably waives
      any "Moral Rights" which he may have in any such ideas, inventions or
      works under chapter IV of part I of the Copyright,
      Designs  and Patents Act
1988.

              

      

       

      
        
           

        

        
          9

          
            

          

        

        
           

        

      

       

      
        	
                16.4  

              	
                The
      Executive hereby irrevocably appoints the Company to be his attorney in
      his name and on his behalf to execute and do any such instrument or thing
      and generally to use his name for the purpose of giving to the Company or
      its nominee the full benefit of this clause and acknowledges in favour of
      any third party that a certificate in writing signed by any director or
      secretary of the Company that any instrument or act falls within the
      authority hereby conferred shall be conclusive evidence that such is the
      case.

              

      

       

      
        	
                17.  

              	
                DURATION
      AND TERMINATION

              

      

       

      
        	
                17.1  

              	
                The
      Appointment shall continue until
terminated:

              

      

       

      
        	
                17.1.1  

              	
                as
      provided for elsewhere in this
Agreement;

              

      

       

      
        	
                17.1.2  

              	
                by
      the Executive giving to the Company not less than three months' prior
      written notice which notice may not be given so as to expire before the
      second anniversary of the Commencement Date.  Provided that,
      following service of notice by the Executive all remuneration, contractual
      benefits and/or bonus entitlements, save for Salary shall
      cease;

              

      

       

      
        	
                17.1.3  

              	
                by
      the Company giving to the Executive not less than six months' prior
      written notice, which notice may not be given so as to expire before the
      second anniversary of the Commencement Date;
or

              

      

       

      
        	
                17.1.4  

              	
                automatically
      on the Executive's 65th birthday (being the contractual retirement
      date).

              

      

       

      
        	
                17.2  

              	
                The
      Company may terminate the Appointment by notice but with immediate effect
      if the Executive shall have committed any serious breach or (after warning
      in writing) any repeated or continued material breach of his obligations
      to the Company or (in the reasonable opinion of the Board and after
      warning in writing) shall have failed to perform his duties to a
      satisfactory standard or shall have been guilty of any act of gross
      negligence, dishonesty or serious misconduct or any conduct which (in the
      reasonable opinion of the Board) tends to bring himself, the Company or
      any Group Company into disrepute or shall be declared bankrupt or shall
      compound with his creditors or shall have been convicted of any criminal
      offence (other than an offence under any road traffic legislation in the
      United Kingdom or elsewhere for which a fine or non-custodial penalty is
      imposed); or shall have been disqualified from holding any office which he
      holds in any Group Company or resigns from such office without prior
      written approval of the Board; or shall have been prevented by illness,
      injury or other incapacity from fully performing his obligations to the
      Company for an aggregate of one hundred and thirty working days in any
      period of twelve months; or shall have committed any breach of the Stock
      Purchase Agreement entered into by the Company and any Group Company dated
      as of the Commencement Date or shall have refused or failed to abide by or
      comply with the directives of the Board or of CoStar or shall have
      materially violated the CoStar Code of Conduct or abuses alcohol or drugs
      (legal or illegal) other than prescription drugs taken under the
      directions of a physician and in accordance with those
      directions.

              

      

       

      
        
           

        

        
          10

          
            

          

        

        
           

        

      

       

      
        	
                17.3  

              	
                In
      the event of termination by the Company in accordance with
      Clause 17.2 above, the Executive shall forfeit all unvested
      Restricted Stock and any claim in respect of unpaid bonus for any period
      whatsoever.

              

      

       

      
        	
                17.4  

              	
                Any
      delay by the Company in exercising such right to terminate shall not
      constitute a waiver thereof.

              

      

       

      
        	
                18.  

              	
                GARDEN
      LEAVE

              

      

       

      
        	
                18.1  

              	
                Notwithstanding
      any other provision in this agreement the Company is under no obligation
      to provide the Executive with work and the Board may (if either party
      serves notice to terminate the Appointment or if the Executive purports to
      terminate the Appointment without due notice and the Company has not
      accepted that resignation) require the Executive to perform no duties
      whatsoever or such duties as it may reasonably require and may exclude the
      Executive from any premises of any Group Company without having to give
      any reason for so doing.

              

      

       

      
        	
                18.2  

              	
                During
      any period in which the Company exercises its rights under clause 18.1
      ("Garden Leave")
      the Executive shall:

              

      

       

      
        	
                18.2.1  

              	
                remain
      an employee of the Company and be bound by the terms of this agreement (in
      particular clauses 6 and 14 and
16);

              

      

       

      
        	
                18.2.2  

              	
                not
      have any contact or communication with any client or customer, employee,
      officer, director, agent or consultant of the Company or any Group Company
      except any member of the Board;

              

      

       

      
        	
                18.2.3  

              	
                take
      and be deemed to be taking any period of accrued but unused holiday
      entitlement;

              

      

       

      
        	
                18.2.4  

              	
                keep
      the Board informed of his whereabouts (except during any periods taken as
      holiday) so that he can be called upon to perform any appropriate duties
      as required by the Board;

              

      

       

      
        	
                18.2.5  

              	
                comply
      with his obligations under this Agreement;
and

              

      

       

      
        	
                18.2.6  

              	
                continue
      to receive the Salary and contractual benefits (but not, for the avoidance
      of doubt, any bonus) in the usual
way.

              

      

       

      
        	
                19.  

              	
                PAYMENT
      IN LIEU OF NOTICE

              

      

       

      
        	
                19.1  

              	
                The
      Company may (at the sole and absolute discretion of the Board) terminate
      the Appointment at any time and with immediate effect by making the
      Executive a payment in lieu of the notice period set forth in clause
      17.1.3 (or, if applicable, the remainder of the notice period) and
      calculated as set out below (the "Payment in Lieu of
      Notice"):

              

      

       

      
        	
                19.1.1  

              	
                In
      circumstances where the Payment in Lieu of Notice is paid to the Executive
      by the Company before the first anniversary of the Commencement Date (the
      "First
      Anniversary") it shall be calculated as an amount equal to twelve
      months' Salary (at the date of termination) and shall exclude the value of
      any contractual benefits or bonus which the Executive would have received
      during any period of notice or
otherwise;

              

      

       

      
        
           

        

        
          11

          
            

          

        

        
           

        

      

       

      
        	
                19.1.2  

              	
                In
      circumstances where the Payment in Lieu of Notice is paid to the Executive
      by the Company on or after the First Anniversary but before the second
      anniversary of the Commencement Date (the "Second Anniversary") it
      shall be calculated as an amount equal to nine months' Salary (at the date
      of termination) and shall exclude the value of any contractual benefits or
      bonus which the Executive would have received during any period of notice
      or otherwise; and

              

      

       

      
        	
                19.1.3  

              	
                In
      circumstances where the Payment in Lieu of Notice is paid by the Company
      to the Executive on or after the Second Anniversary it shall be calculated
      as an amount equal to six months' Salary (at the date of termination) and
      shall exclude the value of any contractual benefits or bonus which the
      Executive would have received during any period of notice or
      otherwise.

              

      

       

      
        	
                19.2  

              	
                The
      Company shall pay any Payment in Lieu of Notice in instalments over a
      period of 12 months (in the case of a payment under clause 19.1.1), nine
      months (in the case of a payment under clause 19.1.2) and six months (in
      the case of a payment under clause 19.1.3).  Such payments will
      be subject to income tax and national insurance
    contributions.

              

      

       

      
        	
                19.3  

              	
                It
      shall be a condition of payment of any Payment in Lieu of Notice that the
      Executive shall have previously executed an agreement in a form
      satisfactory to the Company releasing the Company and each Group Company
      from all claims and rights of action arising from the termination of the
      Executive's employment.

              

      

       

      
        	
                20.  

              	
                OBLIGATIONS
      ON TERMINATION

              

      

       

      
        	
                20.1.1  

              	
                Upon
      whichever is the first to occur of termination of the Appointment
      howsoever arising or the Company sending the Executive on Garden Leave the
      Executive shall (if the Board so
requests):

              

      

       

      
        	
                20.1.2  

              	
                immediately
      resign without claim for compensation from all Offices held in any Group
      Company and membership of any organisation and any Office in any other
      company acquired by reason of or in connection with the Appointment and
      the Executive hereby irrevocably appoints the Company to be his attorney
      in his name and on his behalf to execute any documents and to do any
      things necessary or requisite to give effect to this
    clause;

              

      

       

      
        	
                20.1.3  

              	
                deliver
      to the Company all documents (including, but not limited to,
      correspondence, lists of clients or customers, plans, drawings, accounts
      and other documents of whatsoever nature and all copies thereof, whether
      on paper, computer memory or otherwise) made, compiled or acquired by him
      during the Appointment and relating to the business, finances or affairs
      of the Company or any Group Company or its or their clients and any other
      property of any Group Company which is in his possession, custody, care or
      control.  This clause shall not apply to any property provided
      to the Executive as a benefit during any period of Garden Leave provided,
      however, that such property shall be returned to the Company at the end of
      the Garden Leave period.  The Executive shall, if requested to
      do so by the Company, confirm in writing his compliance with his
      obligations under this clause;

              

      

       

      
        
           

        

        
          12

          
            

          

        

        
           

        

      

       

      
        	
                20.1.4  

              	
                irretrievably
      delete any information relating to the business of the Company or any
      Group Company stored on any magnetic or optical disc or memory and all
      matter derived therefrom which is in his possession, custody, care or
      control outside the premises of the Company and shall produce such
      evidence of compliance with this sub-clause as the Company may
      require;

              

      

       

      
        	
                21.  

              	
                RESTRICTIONS
      AFTER TERMINATION

              

      

       

      
        	
                21.1  

              	
                The
      Executive acknowledges that because of the nature of his duties and the
      particular responsibilities arising as a result of such duties owed to the
      Company and each Group Company he has knowledge of trade secrets and
      confidential business information (including details of customers and
      business associates) and is therefore in a position to harm their
      legitimate business interests if he were to make use of such trade secrets
      or confidential business information for his own purposes or the purposes
      of another.  Accordingly, having regard to the above, and having
      taken independent legal advice the Executive accepts that the restrictions
      in this clause are reasonable.

              

      

       

      
        	
                21.2  

              	
                The
      Executive covenants to the Company (for itself and as trustee for each
      Group Company) that in order to protect the confidential information,
      trade secrets and business connections of the Company and each Group
      Company he shall not for the following periods after Termination for
      whatever reason (but excluding repudiatory breach of this agreement by the
      Company) save with the prior written consent of the Board directly or
      indirectly, either alone or jointly with or on behalf of any third party
      and whether on his own account or as principal, partner, shareholder,
      director, employee, consultant or in any other capacity
      whatsoever:

              

      

       

      
        	
                21.2.1  

              	
                for
      twelve months following Termination in the Relevant Territory and in
      competition with the Company or any Relevant Group Company engage, assist
      or be interested in any undertaking which provides Services (which by way
      of example only shall include but not be limited to, as at the date of
      this agreement, the following undertakings: LoopNet, Inc, Xceligent, Inc.;
      Black's Guide; Dorey Publishing; Commercial Search; Cityfeet.com, Inc.;
      Octane Ventures, Officespace.com; Marchall & Swift; Yale Robbins;
      Reis, Inc; Investment Property Databank Limited; Reed Business Information
      Limited; and Experian Limited;

              

      

       

      
        	
                21.2.2  

              	
                for
      twelve months following Termination and in competition with the Company or
      any Relevant Group Company solicit or interfere with or endeavour to
      entice away from the Company or any Relevant Group Company any Customer in
      relation to the supply of Services;

              

      

       

      
        	
                21.2.3  

              	
                for
      twelve months following Termination in the Relevant Territory and in
      competition with the Company or any Relevant Group Company be concerned
      with the supply of Services to any
Customer;

              

      

       

      
        	
                21.2.4  

              	
                for
      twelve months following Termination and in competition with the Company or
      any Relevant Group Company solicit or interfere with or endeavour to
      entice away from the Company or any Relevant Group Company any Potential
      Acquisition Candidate in relation to the supply of
    Services;

              

      

       

      
        
           

        

        
          13

          
            

          

        

        
           

        

      

       

      
        	
                21.2.5  

              	
                for
      twelve months following Termination solicit the employment or engagement
      of or endeavour to entice away from the Company or any Relevant Group
      Company any Key Employee  (whether or not such person would
      breach their contract of employment or engagement by reason of leaving the
      service of the business in which they work);
and

              

      

       

      
        	
                21.2.6  

              	
                at
      any time following Termination represent himself as being in any way
      connected with or interested in the business of the Company or any
      Relevant Group Company.

              

      

       

      
        	
                21.3  

              	
                Each
      of the obligations in this clause is an entire, separate and independent
      restriction on the Executive, despite the fact that they may be contained
      in the same phrase and if any part is found to be invalid or unenforceable
      the remainder will remain valid and
enforceable.

              

      

       

      
        	
                21.4  

              	
                The
      Executive acknowledges that each and every restriction contained within
      this clause is intended by the parties to apply after Termination whether
      Termination is lawful or otherwise.  The restrictions, which are
      acknowledged to be ancillary in nature, will apply even where Termination
      results from a breach of a provision within this
  agreement.

              

      

       

      
        	
                21.5  

              	
                While
      the restrictions are considered by the parties to be fair and reasonable
      in the circumstances, it is agreed that if any of them should be judged to
      be void or ineffective for any reason, but would be treated as valid and
      effective if part of the wording was deleted, they shall apply with such
      modifications as necessary to make them valid and
    effective.

              

      

       

      
        	
                21.6  

              	
                The
      Executive will (at the request of the Board and cost of the Company) enter
      into a direct agreement with any Group Company under which he will accept
      restrictions corresponding to the restrictions contained in this clause
      (or such as will be appropriate in the circumstances) in relation to such
      Group Company.

              

      

       

      
        	
                21.7  

              	
                The
      provisions of this clause will not prevent the Executive from holding an
      Investment.

              

      

       

      
        	
                22.  

              	
                DEFINITIONS

              

      

       

      For the
purposes of clause 21:

       

      
        	
                (a)  

              	
                "Customer" means any
      person, firm, company or entity which was a customer of the Company or any
      Relevant Group Company at any time during the 12 months prior to
      Termination and with which the Executive was materially concerned or had
      personal contact at any time during the said period of
      12 months;

              

      

       

      
        	
                (b)  

              	
                "Key Employee" means any
      person who immediately prior to Termination was an employee or consultant
      of the Company or any Relevant Group Company occupying a senior or
      managerial position who was likely to
be:

              

      

       

      
        	
                (i)  

              	
                in
      possession of confidential information belonging to the Company;
      or

              

      

       

      
        	
                (ii)  

              	
                able
      to influence the customer relationships or trade connections of the
      Company,

              

      

       

      and with
whom the Executive worked closely at any time during the period of
12 months prior to Termination;

       

      
        
           

        

        
          14

          
            

          

        

        
           

        

      

       

      
        	
                (c)  

              	
                "Potential
      Acquisition Candidate" means any person, firm, company or entity
      with whom any Group Company was in discussions, or who or which had been
      identified by any Group Company, in each case as a potential target for
      acquisition by or a joint venture or other material business partnership
      with any Group Company and with which potential acquisition, joint venture
      or partnership the Executive was involved or about which he was otherwise
      in possession of confidential
information;

              

      

       

      
        	
                (d)  

              	
                "Relevant Group Company"
      means any Group Company (and, if applicable, its predecessors in business)
      for which the Executive performed services to a material degree or in
      which he held office or concerning which he was in possession of
      confidential information at any time during the 12 months prior to
      Termination;

              

      

       

      
        	
                (e)  

              	
                "Relevant Territory"
      means geographical area constituting the market of the Company and any
      Relevant Group Company for Services in the period of 12 months prior
      to Termination and with which area the Executive was materially concerned
      at any time during the said period of 12
months;

              

      

       

      
        	
                (f)  

              	
                "Services" means services
      which are competitive with those supplied by the Company or any Relevant
      Group Company in the 12 months prior to Termination and with the supply of
      which the Executive was materially concerned at any time during the said
      period of 12 months; and

              

      

       

      
        	
                (g)  

              	
                "Termination" means the
      date of termination of the
Appointment.

              

      

       

      
        	
                23.  

              	
                RECONSTRUCTION
      AND AMALGAMATION

              

      

       

      If the
Executive's employment is terminated at any time in connection with any
reconstruction or amalgamation of the Company or any Group Company whether by
winding up or otherwise and he receives an offer of employment on terms which
(considered in their entirety) are no less favourable to any material extent
than the terms of this agreement from an undertaking involved in or resulting
from such reconstruction or amalgamation he shall have no claim whatsoever
against the Company or any such undertaking arising out of or connected with
such termination.

       

      
        	
                24.  

              	
                DISCIPLINARY
      AND GRIEVANCE PROCEDURES

              

      

       

      
        	
                24.1  

              	
                Any
      dismissal, disciplinary action or grievance proceedings shall be carried
      out in accordance with such procedures as the Board deem
      appropriate.  For the avoidance of doubt, these procedures are
      not intended to be contractually binding.  If the Executive is
      not satisfied with any disciplinary decision, decision to dismiss taken in
      relation to him, or decision in respect of a grievance he may apply in
      writing within 14 days of that decision to the Chairman of the Board from
      time to time, whose decision shall be final.  If the Executive
      has any grievance in relation to his employment he may raise it in writing
      with the Chairman of the Board from time to
  time.

              

      

       

      
        
           

        

        
          15

          
            

          

        

        
           

        

      

       

      
        	
                24.2  

              	
                The
      Board may at any time suspend the Executive for a period of up to twelve
      weeks for the purposes of investigating any allegation of misconduct or
      neglect against him and during this period he will continue to receive his
      salary and all contractual benefits but will not (except with the prior
      written approval of the Board) attend any premises of or contact any
      employee (other than any director) or customer of the Company or any Group
      Company.

              

      

       

      
        	
                25.  

              	
                NOTICES

              

      

       

      Any
notice to be given hereunder shall be in writing.  Notices may be
given by either party by personal delivery or post or by fax or e-mail addressed
to the other party at (in the case of the Company) its registered office for the
time being and copied to CoStar as below and (in the case of the Executive) his
last known address.  Any such notice given by letter or fax or e-mail
shall be deemed to have been served at the time at which the notice was
delivered personally or transmitted by fax or (if sent by post) would be
delivered in the ordinary course of post:

       

      
        	
                (a)  

              	
                If
      to the CoStar:

              

      

       

      Andrew C.
Florance

      Chief
Executive Officer

      2
Bethesda Metro Center

      10th
Floor

      Bethesda,
Maryland   20814

      Telefax:
301-718-2444

       

      with a
copy to:

       

      Jonathan
Coleman

      General
Counsel

      2
Bethesda Metro Center

      10th
Floor

      Bethesda,
Maryland 20814

      Telefax:
301-664-9176

       

      
        	
                26.  

              	
                ENTIRE
      AGREEMENT AND PREVIOUS CONTRACTS

              

      

       

      
        	
                26.1  

              	
                Each
      party on behalf of itself and (in the case of the Company, as agent for
      the Group Companies) acknowledges and agrees with the other party (the
      Company acting on behalf of itself and as agent for each Group Company)
      that this agreement constitutes the entire and only agreement between the
      Executive and any Group Company relating to his employment with the
      Company.

              

      

       

      
        	
                26.2  

              	
                This
      agreement may be varied only by a document signed by each of the parties
      and expressly incorporating the terms of this agreement as varied into
      that document.

              

      

       

      
        
           

        

        
          16

          
            

          

        

        
           

        

      

       

      
        	
                26.3  

              	
                The
      Company shall discharge its obligations to make payments or provide
      benefits to the Executive hereunder in the event that such payments are
      made or benefits are provided to the Executive by a Group
      Company.

              

      

       

      
        	
                26.4  

              	
                Any
      previous agreement or arrangement between the Company or any Group Company
      and the Executive shall be deemed to have been terminated by mutual
      consent as from the commencement of the Appointment and the Executive
      agrees that the said termination of such subsisting agreement shall
      constitute a waiver by the Executive of any claims, rights and remedies
      which the Executive has or would have arising under or in connection with
      any such subsisting agreements.

              

      

       

      
        	
                27.  

              	
                PROPER
      LAW

              

      

       

      
        	
                27.1  

              	
                This
      agreement (and any dispute, controversy, proceedings or claim of whatever
      nature arising out of or in any way relating to this agreement or its
      formation) shall be governed by and construed in accordance with English
      law.

              

      

       

      
        	
                27.2  

              	
                Each
      of the parties to this agreement irrevocably agrees that the courts of
      England shall have exclusive jurisdiction to hear and decide any suit,
      action or proceedings, and/or to settle any disputes which may arise out
      of or in connection with this agreement and, for these purposes, each
      party irrevocably submits to the jurisdiction of the courts of
      England.

              

      

       

      
        	
                28.  

              	
                CONSTRUCTION

              

      

       

      
        	
                28.1  

              	
                The
      headings in this agreement are inserted for convenience only and shall not
      affect its construction.

              

      

       

      
        	
                28.2  

              	
                Any
      reference to a statutory provision shall be construed as a reference to
      any statutory modification or re-enactment thereof (whether before or
      after the date hereof) for the time being in
  force.

              

      

       

      
        	
                28.3  

              	
                No
      modification, variation or amendment to this agreement shall be effective
      unless such modification, variation or amendment is in writing and has
      been signed by or on behalf of both
parties.

              

      

       

      This document has been signed
by the parties as a deed and delivered on the date first stated on
page 1

      
        
          
             

          

           

        

        
          17

          
            

          

        

        
           

        

      

      
        	
                EXECUTED
      as a Deed by PROPERTY
      INVESTMENT EXCHANGE LIMITED acting by

                 

                /s/
      Jonathan
      Bray                  
      

                Director

                 

                /s/

                Director/Company
      Secretary

              	 
      	 
      
	
                 

                 

                 

                SIGNED
      by

                PAUL
      MARPLES

              	
                )

                )

                )

                 

                 

                /s/ Paul Marples

              	 
      
	
                in
      the presence of:

              	 
      	 
      
	 /s/
      Raymond Taylor 	 
      	 
      
	
                Signature

                 

                RL
      Taylor

              	 
      	 
      
	
                Name

                 

              	 
      	 
      
	
                Address

                 

              	 
      	 
      
	
                 

                Solicitor

              	 
      	 
      
	
                Occupation

              	 
      	 
      

      

      

      

      
        
          
            Paul Marples Service Agreement
Execution Copy   

          

           

        

        
          18

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