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                                                                   EXHIBIT 10.26

                          141 NATIONAL BUSINESS PARKWAY
                             NATIONAL BUSINESS PARK

     THIS AGREEMENT OF LEASE, made this 30th day of September, 1991, by and
between THE KMS GROUP, INC., a Maryland corporation, Agent for Owner
(hereinafter referred to as "Landlord") and J. G. VAN DYKE & ASSOCIATES, INC., a
Maryland corporation (hereinafter referred to as "Tenant"), witnesseth that the
parties hereby agree as follows:

     1.  PREMISES. Landlord is the owner of that certain building situate within
the National Business Park and having an address of 141 National Business
Parkway, Annapolis Junction, Maryland 20701 (hereinafter referred to as the
"Building").

     Landlord does hereby lease unto Tenant, and Tenant does hereby rent from
Landlord, that portion of the Building on the second floor designated as Suite
210 containing the agreed upon equivalent of 17,786 square feet of rentable area
(hereinafter referred to as the "Premises" or "Leased Premises") described on
the schedule attached hereto as Exhibit "A" and made a part hereof. In addition
thereto, Tenant shall have the right to use, on a non-exclusive basis, and in
common with the other tenants of the Building the Common Areas of the Building
(as that term is defined in Section 5.2.6 hereof).

     2.  TERM/RENEWAL TERM.

     2.1    COMMENCEMENT DATE AND TERM. This Lease shall commence on the
"Commencement Date" (as herein defined) and shall be for a term (hereinafter the
"Term" or the "Lease Term") of five (5) years, plus the portion of a calendar
month, if any, from the Commencement Date to the last day of the calendar month
in which such Commencement Date occurs. As used in this Lease, the term
"Commencement Date", as advanced or postponed pursuant to the terms hereof,
shall be defined as the earlier to occur of (a) Tenant's occupancy of the
Premises, or (b) the date which is fifteen (15) days following that date which
is the first on which all of the following events have occurred, namely (i) the
Premises are "substantially completed", as defined in Section 2.2 following,
(ii) Landlord has given Tenant written notice that the Premises are
"substantially completed", and (iii) the "Target Date" as defined in Section 2.2
following has arrived.

     2.2    SUBSTANTIAL COMPLETION. Landlord shall use its best efforts to
"substantially complete" the Premises by December 14, 1991 ("Target Date").
"Substantially complete" means that: (i) the construction of the Tenant
Improvements (as defined in Section 34) have been completed so that Tenant can
use the Premises for their intended purposes without material interference to
Tenant conducting its ordinary business activities, (ii) the Premises have been
approved for occupancy by governmental authorities having jurisdiction, (iii)
the Tenant has ready access to the Building and Premises through the lobby,
hallways and elevators, and (iv) the Premises are ready for installation of any
equipment, furniture, fixtures or decoration that Tenant will install. Landlord
shall keep Tenant advised as to its progress with regard to "substantially
completing" the Premises by the Target Date.

     2.3.   RENEWAL TERM. Provided Tenant is not in default of any term,
covenant or condition of this Lease beyond any applicable cure periods, Tenant
shall have the option to extend the Term of this Lease for one (1) additional
period of five (5) years (the "Renewal Term") to commence immediately upon the
expiration of the initial Term referenced in Section 2.1 hereof, upon the same
terms, covenants and conditions as contained in this Lease except that Tenant
shall pay to Landlord during such Renewal Term as Base Rent that amount equal to
ninety-five percent (95%) of the "Prevailing Market Rate," as hereinafter
defined.

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     For the purposes of this Section 2.3, the term "Prevailing Market Rate"
shall mean the average annual rental including all market concessions, expressed
in dollars per square foot, for space in the Building then being obtained by
Landlord for leasing under leases of not less than three (3) years covering an
area in the Building of not less than 10,000 square feet. If no such area is
then being offered for leasing in the Building, the Prevailing Market Rate shall
be equal to the average annual rental including all market concessions,
expressed in dollars per square foot, for areas in comparable office buildings
located within the Columbia, Maryland market place area taking into
consideration the age of the building and the size of the tenant.

     In order to exercise the option granted herein, Tenant shall so notify
Landlord in writing not less than two hundred and seventy (270) days prior to
the expiration of the initial Term referenced in Section 2.1 hereof. If Tenant
exercises the foregoing option, Landlord and Tenant shall execute a writing
acknowledging such renewal and setting forth the Base Rent with respect to said
Renewal Term.

     The option, however, shall be void if Tenant is in default beyond any
applicable cure periods under any of the terms of this Lease at that time, or if
Tenant does not deliver the requisite notice thereof within the time period
specified above. The option granted herein shall not be severed from this Lease,
or separately sold, assigned or transferred.

     3.  SECURITY DEPOSIT. Tenant shall upon execution of this Lease pay to
Landlord the sum of Twenty-Two Thousand Nine Hundred Seventy-Three Dollars and
Fifty-Eight Cents ($22,973.58) to be held by Landlord as security for the
performance by Tenant of all obligations imposed on Tenant hereunder. If Tenant
shall perform all such obligations, said sum shall be refunded to Tenant,
without interest, at the end of the Lease Term. If Tenant shall default in any
such obligation, Landlord shall be entitled to apply such sum, pro tanto, toward
Landlord's damages. Notwithstanding the above Tenant shall have the right to
replace the cash earlier delivered to Landlord or to initially substitute for
same by delivery to Landlord of an unconditional and irrevocable Letter of
Credit from an area banking institution approved by Landlord in the amount of
Twenty-Two Thousand Nine Hundred Seventy-Three Dollars and Fifty-Eight Cents
($22,973.58) to be held by Landlord as a guaranty for the performance by Tenant
of all those covenants and obligations of Tenant as set forth in the Lease. Said
Letter of Credit shall contain terms whereby it can be drawn on by Landlord at
sight on any date during the Term of the Lease on which issuer shall receive
from Landlord a certification signed by Landlord stating that Tenant is in
material default under the terms of the Lease. Landlord shall after five (5)
days written notice first given to Tenant have the right to make such
certification upon any material breach of any provision of this Lease by Tenant
and to apply said sum against all amounts then due and owing by Tenant hereunder
and/or against sums required to be and actually expended by Landlord hereunder
to correct existing defaults by Tenant. Any balance left of the sum received
from drawing on the Letter of Credit, after the correction of defaults by Tenant
and/or the payment of amounts due by Tenant, shall be credited against the next
Rent payment due to Landlord. In the event Landlord shall draw on any Letter of
Credit as provided by Tenant, all as set forth herein, Tenant shall replace same
no later than thirty (30) days after the date of such drawing, and if same is
not replaced it shall constitute a default under the terms of the Lease and
Landlord shall have the benefit of all remedies permitted pursuant to the terms
of the Lease and the laws of the State of Maryland.

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         Tenant acknowledges and agrees that it shall keep the Letter of Credit
in full force and effect throughout the Term of this Lease and any extension or
renewal thereof. In the event the term of the Letter of Credit is not
coterminous with the Term of this Lease, then not more than forty-five (45) days
prior to any expiration date of the Letter of Credit, Tenant shall provide
Landlord with the appropriate documentation that said Letter of Credit has been
extended and provide Landlord with the new expiration date of same. Should
Tenant fail to provide Landlord with such documentation on or before the
expiration date of the Letter of Credit, Landlord shall have the right to draw
on the entire amount of said Letter of Credit and hold it, without interest, for
the benefit of Landlord as security for the faithful performance of the Lease
until the Letter of Credit is reinstated or the Term of the Lease expires. If
the Letter of Credit is not reinstated, the amount drawn by Landlord shall be
returned to Tenant, less all costs incurred by Landlord in correcting or
satisfying any default of the Lease, within a reasonable time after the
execution or earlier termination of the Lease.

     4.  USE. Tenant expressly agrees that the Leased Premises shall be used and
occupied solely for general office purposes in accordance with applicable zoning
regulations, including the conduct of "classified work", operation of a raised
floor computer room and operation of a "SCIF" facility and for no other purpose.
Landlord represents and warrants that as of the date hereof this use is allowed
and permitted under applicable zoning and subdivision rules and regulations.

     5.  RENT.

     5.1    BASE RENT. As rent for the Premises during each year of the Term,
Tenant shall pay to Landlord an annual base rent of Two Hundred Seventy-Five
Thousand Six Hundred Eighty-Two Dollars and Ninety-Six Cents ($275,682.96)
(herein "Base Rent") in equal monthly installments of Twenty-Two Thousand, Nine
Hundred Seventy-Three Dollars and Fifty-Eight Cents ($22,973.58) each, in
advance on the first day of each calendar month during the Term, and without
deduction, setoff or demand. In addition to the Base Rent, if the Term should
commence on a day other than the first day of a calendar month, Tenant shall pay
to Landlord upon the Commencement Date, a sum equaling that percentage of the
monthly rent installment which equals the percentage of such calendar month
falling within the Term.

     Notwithstanding the foregoing and anything contained in this Lease to the
contrary, Base Rent hereunder shall be abated and not payable by Tenant for that
period of the Term commencing with the Commencement Date and continuing through
the one hundred eighty-third calendar day of the Term. This period of Base Rent
equals One Hundred Thirty-Seven Thousand Eight Hundred Forty-One Dollars and
Forty-Eight Cents ($137,841.48) which for the purposes of this Lease shall be
the "Rent Abatement". In consideration of the Rent Abatement, if Tenant for any
reason materially defaults under this Lease during the initial five-year Term
set forth in Section 2.1 hereof, or if Tenant shall fail to complete the initial
five-year Term of this Lease, then in addition to paying all rents and other
sums to which Landlord shall have a claim against Tenant as a result of said
default, Tenant shall owe and be indebted to Landlord in that amount derived by
multiplying the Rent Abatement by a fraction, the numerator of which shall be
the number of unexpired months remaining within the initial Term as of the date
of such a material default by Tenant hereunder, and the denominator

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of which shall equal the total number of months within the initial Term, which
amount Tenant covenants and agrees to pay over to Landlord on the date of such a
material default hereunder.

     5.2    DEFINITIONS. For the purposes hereof, the following definitions
shall apply:

     5.2.1     "Property" shall mean the Building, the land upon which same is
situated and all fixtures and equipment thereon or therein, all commonly owned
or shared appurtenances, including but not limited to, parking areas, walkways,
landscaping and utilities, whether located on the land upon which the Building
is situated or elsewhere.

     5.2.2     "Building Expenses" shall be all those expenses paid or incurred
by Landlord in connection with the owning, maintaining, operating and repairing
of the Property or any part thereof, in a manner deemed reasonable and
appropriate by Landlord and usual and customary to similar first class office
buildings in the market area in which the Building is located, and shall
include, without limitation, the following:

            1.    All costs and expenses of operating, repairing, cleaning, and
insuring (including liability for personal injury, death and property damage and
workers' compensation insurance covering personnel) the Property or any part
thereof, as well as all costs incurred in removing snow, ice and debris
therefrom and of policing and regulating traffic with respect thereto, and
depreciation of all machinery and equipment used therein or thereon, replacing
or repairing of pavement, parking areas, curbs, walkways, drainage, lighting
facilities, landscaping (including replanting and replacing flowers and other
planting);

            2.    Electricity, steam and fuel used in lighting, heating,
ventilating and air conditioning only the Common Areas;

            3.    Maintenance of mechanical and electrical equipment including
heating, ventilating and air conditioning equipment subject to the terms of
Section 22 hereof;

            4.    Window cleaning and janitor service, including equipment,
uniforms, and supplies and sundries;

            5.    Maintenance of elevators, stairways, rest rooms, lobbies,
hallways and other Common Areas (but excluding costs of repair or replacement
caused directly by defects in construction or installation of such Common Area
facilities);

            6.    Repainting and redecoration of all Common Areas;

            7.    Sales or use taxes on supplies or services;

            8.    Management fees, wages, salaries and compensation of all
persons directly engaged in the maintenance, operation or repair of the Property
(including Landlord's share of all payroll taxes);

            9.    Legal, accounting and engineering fees and expenses, except
for those related to disputes with tenants or which are a result of and/or are
based on Landlord's negligence or other tortious conduct; and

            10.   All other expenses which under generally accepted accounting
principles would be considered as an expense of owning, maintaining, operating,
or repairing the Property; excluding,

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however, those expenses which would be considered capital in nature under
generally accepted accounting principles.

     5.2.3     "Taxes" shall mean all real property taxes including currently
due installments of assessments, sewer rents, ad valorem charges, water rates,
rents and charges, front foot benefit charges, and all other governmental
impositions in the nature of any of the foregoing. Excluded from Taxes are (i)
federal, state or local income taxes, (ii) franchise, gift, transfer, excise,
capital stock, estate or inheritance taxes, and (iii) penalties or interest
charged for late payment of Taxes. If at any time during the Lease Term the
method of taxation prevailing at the commencement of the Term shall be altered
so as to cause the whole or any part of the items listed in the first sentence
of this subparagraph 5.2.3 to be levied, assessed or imposed, wholly or partly
as a capital levy, or otherwise, on the rents received from the Building, wholly
or partly in lieu of imposition of or in addition to the increase of taxes in
the nature of real estate taxes issued against the Property, then the charge to
the Landlord resulting from such altered additional method of taxation shall be
deemed to be within the definition of "Taxes."

     5.2.4     "Base Year Building Expenses" shall mean $ 2.25 per rentable
square foot, which amount represents Landlord's estimate of the cost to the
Landlord for providing to or for the Premises all of the services or other items
included in Building Expenses for a one (1) year period.

     5.2.5     "Base Year Taxes" shall mean $0.94 per rentable square foot
incurred by Landlord during the tax year commencing July 1, 1991 and expiring
June 30, 1992, as computed on a per rentable square foot basis, except that if
Landlord's current appeal results in a decrease of said sum Landlord will notify
Tenant to that effect with documentation of the new amount and said new figure
shall be substituted for the above set forth amount.

     5.2.6     "Common Areas" shall mean those areas and facilities which may be
from time to time furnished to the Building by Landlord for the non-exclusive
general common use of tenants and other occupants of the Building, their
officers, employees, and invitees, including (without limitation) the hallways,
stairs, parking facilities, washrooms, smoking rooms and elevators.

     5.3    RENT ADJUSTMENTS FOR TAXES.

     5.3.1     At or after the time that Taxes are due and payable, Landlord
shall total the Taxes and shall allocate such Taxes to the rentable area within
the Building in the following manner: Taxes shall be totaled and such total
shall be divided by the total rentable square feet in the Building thereby
deriving the "Cost of Taxes Per Square Foot" of rentable area.

     5.3.2     In the event that the Cost of Taxes Per Square Foot assessed for
any tax year which is wholly or partly within the Lease Term are greater than
the Base Year Taxes, Tenant shall pay to Landlord, as additional rent at the
time such Taxes are due and payable, the amount of such excess times the number
of rentable square feet in the Leased Premises. Any additional rent due Landlord
under this Section 5.3 shall be due and payable within thirty (30) days after
Landlord shall have submitted a written statement to Tenant showing the amount
due. For Tenant's obligation for such additional rent at the beginning or end of
the Lease, see Section 5.6. Landlord may, in its discretion, make a reasonable
estimate of such additional rent with respect to Taxes, and require Tenant to
pay each month during such year 1/12 of such amount, at the time of payment of
monthly installments of Base

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Rent. In such event, Tenant shall pay, or Landlord shall refund or credit to
Tenant's account, any underpayment or overpayment of such additional rent within
thirty (30) days of Landlord's annual written statement of Taxes due. Tenant
shall have the right to examine, at Tenant's sole expense, Landlord's records
with respect to any such increases in rent; provided, however, that unless
Tenant shall have given Landlord written notice of exception to any such
statement within sixty (60) days after delivery thereof, the same shall be
conclusive and binding on Tenant. No credit shall be given to Tenant if the cost
of Taxes Per Square Foot are less than the Base Year Taxes.

     As of the date of this Lease, the tax year is a fiscal year commencing
July 1. If the appropriate authorities shall hereafter change the tax year to a
calendar year, or to a fiscal year commencing on a date other than July 1,
appropriate adjustments shall be made in the computation of any additional rent
due hereunder.

     All reasonable expenses incurred by Landlord (including attorneys',
appraisers' and consultants' fees, and other costs) in contesting any increase
in Taxes or any increase in the assessment of the Property shall be included as
an item of Taxes for the purpose of computing additional rent due hereunder.

     5.4    RENT ADJUSTMENTS FOR BUILDING EXPENSES.

     5.4.1     After the end of each calendar year, Landlord shall compute the
Building Expenses for such year and shall allocate such costs to the rentable
area within the Building in the following manner: Building Expenses shall be
totaled and such total shall be divided by the total rentable square feet in the
Office Building thereby deriving the "Cost of Building Expenses Per Square Foot"
of rentable area.

     5.4.2     In the event that the cost of Building Expenses Per Square Foot
of rentable area for any year which is wholly or partly within the Term are
greater than the Base Year Building Expenses, Tenant shall pay to Landlord, as
additional rent, the amount of such excess times the number of rentable square
feet in the Leased Premises, as set forth in Section 1 above. If occupancy of
the Building during any calendar year is less than ninety percent (90%), then
Building Expenses for that calendar year shall be "grossed up" to that amount of
Building Expenses that, using reasonable and customary projections, would
normally be expected to be incurred during the calendar year in question if the
Building was ninety percent (90%) occupied during the applicable calendar year
period, as determined under generally accepted accounting principles; it being
understood that the written statement submitted to Tenant shall provide a
reasonably detailed description of how the Building Expenses were grossed up and
that only those component expenses, such as, but not limited to, utilities,
janitorial and trash removal, that are affected by variations in occupancy
levels shall be grossed up. Such additional rent shall be computed on a
year-to-year basis. Any such additional rent shall be due within thirty (30)
days after the Landlord has submitted a written statement to Tenant showing the
amount due. Landlord may, in its discretion, make a reasonable estimate of such
additional rent with respect to any calendar year, and require Tenant to pay
each month during such year 1/12 of such amount, at the time of payment of
monthly installments of Base Rent. In such event, Tenant shall pay, or Landlord
shall refund or credit to Tenant's account, any underpayment or overpayment of
such additional rent within thirty (30) days of Landlord's written statement of
actual Building Expenses for the Calendar year. Tenant shall have the right to
examine, at Tenant's sole expense,

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Landlord's records with respect to any such increases in rent; provided,
however, that unless Tenant shall have given Landlord written notice of
exception to any such statement within sixty (60) days after delivery thereof,
the same shall be conclusive and binding on Tenant. No credit shall be given to
the Tenant if the cost of Building Expenses Per Square Foot are less than the
Base Year Building Expenses. Notwithstanding anything to the contrary contained
herein Landlord shall use diligent efforts to keep Building Expenses at
reasonable amounts, while maintaining the Building as a first class office
building.

     Notwithstanding the foregoing and anything contained in this Lease to the
contrary, Tenant's obligation to pay any rent adjustment for Building Expenses
as set forth above which shall be attributable to or incurred by Landlord that
for that period of the Term which is one (1) year from and after the
Commencement Date shall be abated and not payable by Tenant; and, further, in no
event shall Tenant's obligation to pay rent adjustments for Building Expenses
(exclusive of Common Area electricity charges and snow removal) for any calendar
year during the Term and any extension or renewal thereof exceed that amount
equal to one hundred and seven (107%) percent of the amount of adjustments for
Building Expenses (exclusive of Common Area electricity charges and snow
removal) payable by Tenant for the immediately preceding calendar year (provided
that in the event Tenant shall exercise its option for additional rentable space
under Section 46 hereof, such amounts shall be computed on a per rentable square
foot basis.)

     5.5    RENT ADJUSTMENTS FOR CONSUMER PRICE INDEX.

     5.5.1     The Base Rent specified in Section 5.1 shall be subject to an
upward but not downward adjustment, based on the Consumer Price Index, one year
after the Commencement Date of this Lease and at the end of each subsequent year
during the term of this Lease, in accordance with the following procedure:

     5.5.2     The index to be used for this adjustment shall be the Consumer
Price Index (U.S., All Urban Consumers, All Items, 1982-84 equaling a base of
100, from the U.S. Department of Labor, Bureau of Labor Statistics, Washington,
D.C.).

     5.5.3     The Consumer Price Index of 136.2 for the month of July, 1991, or
its equivalent, shall be the "Base Period Consumer Price Index" for the purposes
of all rental adjustments.

     5.5.4     The Consumer Price Index for the month of July of each succeeding
year shall be determined from the published figures and shall be the "Adjustment
Period Consumer Price Index."

     5.5.5     The Base Period Consumer Price Index shall be subtracted from the
Adjustment Period Consumer Price Index; the difference shall be divided by the
Base Period Consumer Price Index. This quotient shall then be multiplied by the
Base Rent, and thirty-five percent (35%) of the result shall then be added to
the Base Rent. This arithmetical sum shall then be the Adjusted Base Rent for
the immediately succeeding leasehold year which shall be paid in monthly
payments.

     5.5.6     If the Consumer Price Index is, at any time during the term of
this Lease, discontinued by the government, then the most nearly comparable
index of inflation published by the government shall be substituted for the
purpose of this calculation.

     5.5.7.    Notwithstanding any other provision of this Section 5.5, the Base
Rent during the initial Term of this Lease shall not be increased in any one
year more than an average cumulative three

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percent (3%) over the Term because of adjustments due to changes in the Consumer
Price Index.

     5.6    ADDITIONAL RENT PAYMENTS. Tenant's obligation to pay any additional
rent accruing during the Lease Term pursuant to Sections 5.3 and 5.4 hereof
shall apply pro rata to the proportionate part of a tax year as to Taxes, and
calendar year, as to Building Expenses, in which this Lease begins or ends, for
the portion of each such year during which this Lease is in effect. Such
obligation to make payments of such additional rent shall survive the expiration
or sooner termination of the Lease Term, whether or not this Lease is superseded
by a subsequent lease of the Leased Premises or of any other space or Tenant
leaves the Building; any such superseding lease shall not serve to supersede
Tenant's obligation for any such additional rent unless it makes express
reference thereto and recites that such additional rent is abated in
consideration of the superseding lease. Landlord shall give Tenant notice of any
such additional rent accruals within sixty (60) days of the termination of this
Lease.

     5.7    PAYMENTS. All payments or installments of any rent hereunder and all
sums whatsoever due under this Lease (including but not limited to court costs
and reasonable attorneys fees) shall be deemed rent, shall be paid to Landlord
at the address designated by Landlord, and if not paid within ten (10) days from
the date of Landlord's written notice to Tenant that the same was not paid when
due, shall bear interest at the rate of 15% per annum (but not more than the
maximum allowable legal rate applicable to Tenant) until paid. Where legal
proceedings are instituted by either party against the other, the prevailing
party in such action shall be entitled to recover from the other party its
reasonable attorney's fees, and if such prevailing party shall be Landlord, then
Landlord's reasonable attorney's fees shall be paid by Tenant as additional rent
hereunder. Time is of the essence in this Lease.

     6.  REQUIREMENTS OF APPLICABLE LAW. Landlord warrants that on the
Commencement Date, the Premises will comply with all applicable laws,
ordinances, rules and regulations of governmental authorities having
jurisdiction over the Property ("Applicable Laws"). Tenant, at its sole cost and
expense, shall thereafter comply promptly with all Applicable Laws applicable to
Tenant's use of the Leased Premises, for the correction, prevention and
abatement of nuisances or violations in, upon or connected with the Leased
Premises during the Lease Term and for the prevention of fires; provided,
however, that Landlord and not Tenant shall make at Landlord's sole cost and
expense all structural changes and correct all structural defects in the
Building necessary to comply with Applicable Laws, and make all repairs, changes
or alterations necessary because the Building was not constructed in compliance
with any of said Applicable Laws.

     Likewise, Landlord shall at all times and at its sole cost and expense
comply promptly with all Applicable Laws as the same pertain to Landlord's
rights, duties and obligations under this Lease.

     7.  CERTIFICATE OF OCCUPANCY. Tenant will not use or occupy the Leased
Premises in violation of any certificate of occupancy, permit, or other
governmental consent issued for the Building. If any governmental authority,
after the commencement of the Lease Term, shall contend or declare that the
Leased Premises are being used for a purpose which is in violation of such
certificate of occupancy, permit, or consent, then Tenant shall, upon five (5)
days' notice from Landlord, immediately discontinue such use of the Leased
Premises. If thereafter the governmental authority asserting such violation
threatens, commences or continues criminal or civil proceedings against Landlord
for Tenant's failure to discontinue such use, in addition to any and all rights,
privileges

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and remedies given to Landlord under this Lease for default therein, Landlord
shall have the right to terminate this Lease forthwith. Tenant shall indemnify
and hold Landlord harmless of and from any and all liability for any such
violation or violations. Landlord represents and warrants that Tenant's
permitted use and occupancy of the Premises in accordance with the terms of
Section 4 hereof during the Term of this Lease, as the same may be extended or
renewed, will not violate any certificate of occupancy issued for the Premises.

     8.  CONTEST-STATUTE, ORDINANCE, etc. Tenant may, after notice to Landlord,
by appropriate proceedings conducted promptly at Tenant's own expense in
Tenant's name and whenever necessary in Landlord's name, contest in good faith
the validity or enforcement of any such statute, ordinance, law, order,
regulation or requirement and may similarly contest any assertion of violation
of any certificate of occupancy, permit, or any consent issued for the Building.
Tenant may, pending such contest, defer compliance therewith if, in the opinion
of counsel for Landlord, such deferral will not subject either the Landlord or
the Leased Premises or the Property (or any part thereof) to any penalty, fine
or forfeiture, and if Tenant shall post a bond with corporate surety approved by
Landlord sufficient, in Landlord's opinion, fully to indemnify Landlord from
loss.

     9.  TENANT'S IMPROVEMENTS. Except to the extent that Landlord is
responsible for making improvements to the Leased Premises pursuant to
Section 34 of this Lease, Tenant agrees that it will make such improvements to
the Leased Premises as it may deem necessary at its sole cost and expense.
However, Tenant shall not make any alterations, decorations, installations,
additions or improvements to the Leased Premises (excluding cosmetic changes,
the estimated cost of shall be less than $2,000), including but not limited to,
the installation of any fixtures, amenities, equipment, appliances, or other
apparatus (except moveable office furniture and ordinary moveable business
machines and equipment), without Landlord's prior written consent, and then only
by contractors or mechanics employed or approved by Landlord, such approval not
to be unreasonably withheld, conditioned or delayed. All such work, alterations,
decorations, installations, additions or improvements shall be done at Tenant's
sole expense and at such times and in such manner as Landlord may from time to
time reasonably designate. All alterations, decorations, installations,
additions or improvements made by either of the parties hereto upon the Leased
Premises, except movable office furniture and moveable office equipment put in
at the expense of Tenant and other items as mutually agreed upon in writing,
shall be the property of Landlord and shall remain upon and be surrendered with
the Leased Premises at the termination of this Lease without molestation or
injury. Notwithstanding the foregoing, Tenant shall on termination of this Lease
at its cost and expense remove the modular Tempest enclosure, and Landlord will
with its approval of any alterations notify Tenant as to whether or not Tenant
will be required to remove such alterations from the Premises on termination of
this Lease. Said items that are to be removed from the Premises by Tenant shall
be removed at Tenant's sole cost and expense, and all damage to the Building and
Premises caused by the installation and removal of said items shall be repaired,
replaced and/or restored by Tenant at Tenant's sole cost and expense.

     10. REPAIRS AND MAINTENANCE.

     10.1   TENANT'S CARE OF THE PREMISES AND BUILDING. During the Lease Term
Tenant shall:

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         (i)   keep the Premises and the fixtures, appurtenances and
improvements therein in good order and condition;

         (ii)  make repairs and replacements to the Premises required because of
Tenant's misuse or primary negligence, except to the extent that the repairs or
replacements are covered by Landlord's insurance as required hereunder;

         (iii) maintain, repair and replace special equipment or decorative
treatments installed by or at Tenant's request and that serve the Premises only
(including but not limited to any supplemental heating, ventilating and
air-conditioning equipment pursuant to the terms of Section 23 hereof), except
to the extent the repairs or replacements are needed because of Landlord's
misuse or primary negligence, and are not covered by Tenant's insurance as
required hereunder;

         (iv)  pay for all damage to the Building, its fixtures and
appurtenances, as well as all damages sustained by Tenant or occupants of the
Building due to any waste, misuse or neglect of the Leased Premises, its
fixtures and appurtenances by Tenant, except to the extent that the repair of
such damage is covered by Landlord's insurance as required hereunder; and

         (v)   not commit waste.

     In addition Tenant shall not place a load upon any floor of the Leased
Premises exceeding the floor load per square foot area which such floor was
designed to carry and which may be allowed under Applicable Laws. Landlord
reserves the right to prescribe the weight and position of all heavy equipment
brought onto the Premises and prescribe any reinforcing required under the
circumstances, all such reinforcing to be at Tenant's expense.

     10.2   LANDLORD'S REPAIRS. Except for the repairs and replacements that
Tenant is required to make pursuant to Section 10.1 above, Landlord shall pay
for and make all other repairs and replacements to the Premises, Common Areas
and Building (including Building fixtures and equipment) as shall be reasonably
deemed necessary to maintain the Building in a condition comparable to other
first class suburban office buildings in the Baltimore-Washington corridor area.
This maintenance shall include the roof, foundation, exterior walls, interior
structural walls, all structural components, and all systems such as mechanical,
electrical, HVAC (exclusive of Tenant's supplemental HVAC referenced in Section
10.1 above), and plumbing. There shall be no allowance to Tenant for a
diminution of rental value, no abatement of rent, and no liability on the part
of Landlord by reason of inconvenience, annoyance or injury to business arising
from Landlord, Tenant or others making any repairs or performing maintenance as
provided for herein; provided, however, Landlord shall use reasonable diligence
to prevent and mitigate such inconvenience, annoyance or injury to Tenant's
business.

     10.3   TIME FOR REPAIRS. Repairs or replacements required pursuant to
Section 10.l and 10.2 above shall be made within a reasonable time (depending on
the nature of the repair or replacement needed - generally no more than fifteen
(15) days) after receiving notice or having actual knowledge of the need for a
repair or replacement.

     10.4   SURRENDER OF THE PREMISES. Upon the termination of this Lease,
Tenant shall surrender the Premises to Landlord in the same broom clean
condition that the Premises were in on the Commencement Date except for:

         (i)   ordinary wear and tear;

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         (ii)  damage by the elements, fire, and other casualty unless Tenant
would be required to repair under the provisions of this Lease.

         (iii) damage arising from any cause not required to be repaired or
replaced by Tenant; and

         (iv)  alterations as permitted by this Lease unless consent was
conditioned on their removal.

     On surrender Tenant shall remove from the Premises its personal property,
trade fixtures and any alterations required to be removed pursuant to the terms
of this Lease and repair any damage to the Premises caused by this removal. Any
items not removed by Tenant as required above shall be considered abandoned.
Landlord may dispose of abandoned items as Landlord chooses and bill Tenant for
the cost of their disposal.

     11. CONDUCT ON PREMISES. Landlord represents as of the date of execution of
this Lease that Tenant's permitted use of the Premises pursuant to the terms of
Section 4 hereof will not increase the rate of fire insurance on the Building,
fixtures or on property kept therein. Tenant shall not do, or permit anything to
be done in the Leased Premises, or bring or keep anything therein which will, in
any way, increase the rate of fire insurance on the Building, or invalidate or
conflict with the fire insurance policies on the Building, fixtures or on
property kept therein, or obstruct or interfere with the rights of the Landlord
or of other tenants, or in any other way injure or annoy Landlord or the other
tenants, or subject Landlord to any liability for injury to persons or damage to
property, or interfere with the good order of the Building, or conflict with
Applicable Laws, or the Maryland Fire Underwriters Rating Bureau. Similarly,
Tenant covenants and agrees that it will not use or allow the Premises to be
used for the storage, use, treatment or disposal of any "hazardous substance,"
as defined under either the Comprehensive Environmental Response, Compensation
and Liability Act of 1980, as amended (42 USC 9601 et seq.), or Section 7-218 et
seq. of the Maryland Health and Environmental Code, annotated, as amended.
Tenant agrees that any increase of fire insurance premiums on the Building or
contents caused by the occupancy of Tenant and any expense or cost incurred in
consequence of negligence or carelessness or the willful action of Tenant,
Tenant's employees, agents, servants, or invitees shall, as they accrue be added
to the rent heretofore reserved and be paid as a part thereof; and Landlord
shall have all the rights and remedies for the collection of same as are
conferred upon the Landlord for the collection of rent provided to be paid
pursuant to the terms of this Lease.

     12. INSURANCE.

     12.1   TENANT'S INSURANCE. Tenant will keep in force at its own expense, so
long as this Lease remains in effect, (a) public liability insurance, including
insurance against assumed or contractual liability under this Lease, with
respect to the Premises, to afford protection with limits, per person and for
each occurrence, of not less than One Million Dollars ($1,000,000), combined
single limit, with respect to personal injury and death and property damage,
such insurance to provide for only a reasonable deductible, (b) all-risk
property and casualty insurance, including theft, written at replacement cost
value and with replacement cost endorsement, covering all of Tenant's personal
property in the Premises and all of Tenant's Improvements as defined in Section
34 and installed in the Premises by or on behalf of Tenant, such insurance to
provide for only a reasonable deductible, and (c) if, and to the extent,
required by law,

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workmen's compensation or similar insurance offering statutory coverage and
containing statutory limits. Such policies will be maintained in companies and
in form reasonably acceptable to Landlord and will be written as primary policy
coverage and not contributing with, or in excess of, any coverage which Landlord
shall carry. Tenant will deposit the policy or policies of such required
insurance or certificates thereof with Landlord prior to the Commencement Date,
which policies shall name Landlord or its designee and, at the request of
Landlord, its mortgages, as additional named insured and shall also contain a
provision stating that such policy or policies shall not be canceled except
after thirty (30) day's written notice to Landlord or its designees. All such
policies of insurance shall be effective as of the date Tenant occupies the
Premises and shall be maintained in force at all times during the Term of this
Lease and all other times during which Tenant shall occupy the Premises. In
addition to the foregoing insurance coverage, Tenant shall require any
contractor retained by it to perform work on the Premises to carry and maintain,
at no expense to Landlord, during such times as contractor is working in the
Premises, a (i) comprehensive general liability insurance policy, including, but
not limited to, contractor's liability coverage, contractual liability coverage,
completed operations coverage, broad form property damage endorsement and
contractor's protective liability coverage, to afford protection with limits per
person and for each occurrence, of not less than Two Hundred Thousand Dollars
($200,000.00), combined single limit, with respect to personal injury and death
and property damage, such insurance to provide for no deductible, and (ii)
workmen's compensation insurance or similar insurance in form and amounts as
required by law. In the event of damage to or destruction of the Premises and
the termination of this Lease by Landlord pursuant to Section 17 herein, Tenant
agrees that it will pay Landlord all of its insurance proceeds relating to
improvements made in the Premises by or on behalf of Tenant. If Tenant fails to
comply with its covenants made in this Section, if such insurance would
terminate or if Landlord has reason to believe such insurance is about to be
terminated, Landlord may at its option cause such insurance as it in its sole
judgment deems necessary to be issued, and in such event Tenant agrees to pay
promptly upon Landlord's demand, as Additional Rent the premiums for such
insurance.

     12.2   LANDLORD'S INSURANCE. Landlord will keep in force at its own expense
(a) contractual and comprehensive general liability insurance, including public
liability and property damage, with a minimum combined single limit of liability
of Two Million Dollars ($2,000,000.00) for personal injuries or death of persons
occurring in or about the Building and Premises, and (b) all-risk property and
casualty insurance written at replacement cost value covering the Building and
all of Landlord's improvements in and about same.

     12.3   WAIVER OF SUBROGATION. Each party hereto waives claims arising in
any manner in its favor and against the other party and agrees that neither
party hereto shall be liable to the other party or to any insurance company (by
way of subrogation or otherwise) insuring the other party for any loss or damage
to the Building, the Premises or other tangible property, or any resulting loss
of income, or losses under worker's compensation laws and benefits, or against
liability on or about the Building, even though such loss or damage might have
been occasioned by the negligence of such party, its agents or employees if any
such loss or damage is covered by insurance benefiting the party suffering such
loss or damage as was required to be covered by insurance carried pursuant to
this Lease. Landlord shall cause each insurance policy carried by it insuring
against liability on or about the Building or insuring the Premises and the
Building or income resulting therefrom against loss by fire or any of the
casualties covered by

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the all-risk insurance carried by it hereunder to be written in such a manner as
to provide that the insurer waives all right of recovery by way of subrogation
against Tenant in connection with any loss or damage covered by such policies.
Tenant will cause each insurance policy carried by it insuring against liability
or insuring the Premises (including the contents thereof and Tenant's
improvements installed therein by Tenant or on its behalf) against loss by fire
or any of the casualties covered by the all-risk insurance required hereunder to
be written in such a manner as to provide that the insurer waives all right of
recovery by way of subrogation against Landlord in connection with any loss or
damage covered by such policies.

     13. RULES AND REGULATIONS. Tenant agrees to be bound by the rules and
regulations set forth on the schedule attached hereto as Exhibit "B" and made a
part hereof. Landlord shall have the right, from time to time, to issue
reasonable additional or reasonable amended rules and regulations regarding the
use of the Building, so long as said rules shall be reasonable and
non-discriminatory between tenants. When so issued and when Landlord shall
provide Tenant written notice of same, such reasonable additional or reasonable
amended rules and regulations shall be considered a part of this Lease and
Tenant covenants that the same shall likewise be faithfully observed by Tenant,
the employees of Tenant and all persons invited by Tenant into the Building,
provided, that said additional or amended rules are made applicable to all
office tenants similarly situated as Tenant. Landlord shall not be liable to
Tenant for the violation of any of the said rules and regulations, or the breach
of any covenant or condition in any lease, by any other tenant in the Building.

     14. MECHANICS' LIENS. Tenant shall not do or suffer to be done any act,
matter or thing whereby Tenant's interest in the Leased Premises, or any part
thereof, may be encumbered by any mechanics' lien. Tenant shall discharge,
within thirty (30) days after the date of filing, any mechanics' liens filed
against Tenant's interest in the Leased Premises, or any part thereof,
purporting to be for labor or material furnished or to be furnished to Tenant.
Landlord shall not be liable for any labor or materials furnished or to be
furnished to Tenant upon credit, and no mechanics' or other lien for labor or
materials shall attach to or affect the reversionary or other estate or interest
of Landlord in and to the Leased Premises, or the Property.

     15. TENANT'S FAILURE TO REPAIR. In the event that Tenant fails after
reasonable prior written notice from Landlord, to keep the Leased Premises in a
good state of condition and repair pursuant to Section 10 above, or to do any
act or make any payment required under this Lease or otherwise fails to comply
herewith, Landlord may, at its option (but without being obliged to do so)
immediately, or at any time thereafter and without notice, perform the same for
the account of Tenant, including the right to enter upon the Leased Premises at
all reasonable hours to make such repairs, or do any act or make any payment or
compliance which Tenant has failed to do, and upon demand, Tenant shall
reimburse Landlord for any such expense incurred by Landlord including but not
limited to any reasonable costs, damages and reasonable attorney's fees. Any
moneys expended by Landlord, as aforesaid, shall be deemed additional rent,
collectible as such by Landlord. All rights given to Landlord in this section
shall be in addition to any other right or remedy of Landlord herein contained.

     16. PROPERTY -- LOSS, DAMAGE. Landlord, its agents and employees shall not
be liable for any damage to property in the possession of Tenant placed in the
custody of its employees, nor for the loss of any such property by theft or
otherwise. Landlord

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shall be liable for damage or injury to person or property only if such damage
or injury is due to Landlord's negligence; Landlord or its agents shall not be
liable for interference with the light, air, or other incorporeal hereditaments.
Tenant shall reimburse Landlord as additional rent for all expenses, all damages
awarded Landlord as a result of legal proceedings, and/or all fines incurred or
suffered by Landlord by reason of any breach, violation or nonperformance by
Tenant, or Tenant's employees, agents or visitors, of any covenant or provision
of this Lease, or by reason of damage or injury to persons or property caused by
moving property of or for Tenant in and/or out of the Building, or by the
installation or removal of furniture or other property of or for Tenant, or by
reason of or arising out of the occupancy or use by Tenant of the Leased
Premises or of the Property, or any part of either thereof, or from any other
cause due to the carelessness, negligence or improper conduct of Tenant or
Tenant's contractors, servants, employees, agents or invitees. Tenant shall not
move any safe, heavy machines, heavy equipment, freight, bulky matter or
fixtures requiring special handling. Tenant agrees to employ only persons
holding a proper license to do said work, and that all work in connection
therewith shall comply with any applicable Federal, State, County or other
governing laws, rules or regulations. Notwithstanding said consent of Landlord,
Tenant shall indemnify Landlord for and hold Landlord harmless and free from
damages or injuries sustained by person or property and for any damages or
moneys paid out by Landlord in settlement of any claims or judgments, as well as
for all reasonable expenses and reasonable attorney's fees, incurred in
connection therewith and all reasonable costs incurred in repairing any damage
to the Building or appurtenances caused by Tenant's moving activities.

     17. DESTRUCTION -- FIRE OR OTHER CASUALTY. In case of partial damage to the
Leased Premises by fire or other casualty insured against by Landlord, Tenant
shall give immediate notice thereof to Landlord, who shall thereupon cause
damage to all property owned by it to be repaired with reasonable speed at the
sole expense of Landlord, due allowance being made for reasonable delay which
may arise by reason of adjustment of loss under insurance policies on the part
of Landlord and/or Tenant, and for reasonable delay on account of "labor
troubles" or any other cause beyond Landlord's control, and to the extent that
the Leased Premises are rendered untenantable the rent shall proportionately
abate from the date of such casualty, provided the damage above mentioned
occurred without the fault or neglect of Tenant, Tenant's servants, employees,
agents or visitors. If such partial damage is due to the fault or neglect of
Tenant, or Tenant's servants, employees, agents, or invitees, the damage shall
be repaired by Landlord to the extent of Landlord's insurance coverage, but
there shall be no apportionment or abatement of rent. In the event the damage
shall be so extensive to the whole Building as to render it uneconomical, in
Landlord's opinion, to restore for its present uses and Landlord shall decide
not to repair or rebuild the Building, this Lease, at the option of Landlord,
shall be terminated upon written notice to Tenant and the rent shall, in such
event, be paid to or adjusted as of the date of such damage, and the terms of
this Lease shall expire by lapse of time and conditional limitation upon the
third day after such notice is mailed, and Tenant shall thereupon vacate the
Leased Premises and surrender the same to Landlord, but no such termination
shall release Tenant from any liability to Landlord arising from such damage or
from any breach of the obligations imposed on Tenant hereunder, or from any
obligations accrued hereunder prior to such termination.

     Notwithstanding anything contained in this Section 17 to the contrary, if
any damage causes the Premises to be untenable and if

                                       14
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Landlord or Tenant determines, in good faith that the repair or restoration work
cannot be completed within one hundred and twenty (120) days of the date of
occurrence causing such damage, then Landlord, or Tenant provided Tenant shall
not otherwise be in default hereunder, shall have the option, exercisable by
fifteen (15) days advance written notice thereof to the other given no later
than thirty (30) days following such determination, to cancel and terminate this
Lease as of the date of such loss, whereupon all rent due hereunder shall be
adjusted as of the date of such damage and Tenant shall thereupon vacate the
Premises and surrender the same to Landlord, but no such termination shall
release Tenant from any liability to Landlord arising from any obligations
accrued hereunder prior to such termination.

     18. EMINENT DOMAIN. If (1) the whole or more than twenty percent (20%) of
the floor area of the Leased Premises shall be taken or condemned by Eminent
Domain for any public or quasi-public use or purpose, and either party shall
elect, by giving written notice to the other, or (2) more than twenty-five
percent (25%) of the floor area of the Building shall be so taken, and Landlord
shall elect, in its sole discretion, by giving written notice to the Tenant, any
said written notice to be given not more than sixty (60) days after the date on
which title shall vest in such condemnation proceeding, to terminate this Lease,
then, in either such event, the term of this Lease shall cease and terminate as
of the date of title vesting. In case of any taking or condemnation, whether or
not the term of this Lease shall cease and terminate, the entire award shall be
the property of Landlord, and Tenant hereby assigns to Landlord all its right,
title and interest in and to any such award, except that Tenant shall be
entitled to claim, prove and receive in the proceedings such awards as may be
allowed for moving expenses, loss of profit and fixtures and other equipment
installed by it which shall not, under the terms of this Lease, be or become the
property of Landlord at the termination hereof, but only if such awards shall be
made by the condemnation, court or other authority in addition to, and be stated
separately from, the award made by it for the Property or part thereof so taken.

     19. ASSIGNMENT. So long as Tenant is not in default beyond any applicable
cure periods of any of the terms and conditions hereof, and further provided
that Tenant has fully and faithfully performed all of the terms and conditions
of this Lease, Landlord will not unreasonably withhold its consent to an
assignment of this Lease or sublease of the Premises for any of the then
remaining portion of the unexpired Term provided: (i) the net assets of the
assignee shall not be less than the net assets of Tenant at the time of the
signing of this Lease; (ii) in the event of an assignment, such assignee shall
assume in writing all of Tenant's obligations under this Lease; (iii) in the
event of a sublease, such sublease shall in all respects be subject to and in
conformance with the terms of this Lease with exception to rent; and (iv) in all
events Tenant continues to remain liable on this Lease for the performance of
all terms, including but not limited to, payment of all rent due hereunder.
Landlord and Tenant acknowledge and agree that it shall not be unreasonable for
Landlord to withhold its consent to an assignment if in Landlord's sole and
reasonable business judgment, the assignee lacks sufficient business experience
or net worth to successfully operate its business within the Premises in
accordance with the terms, covenants and conditions of this Lease. If this Lease
be assigned, or if the Premises or any part thereof be underlet or occupied by
anybody other than Tenant, Landlord may, after default by Tenant, collect rent
from the assignee, undertenant or occupant and apply the net amount collected to
the rent herein reserved, but no such collection shall be deemed a waiver of
this covenant, or the

                                       15
<Page>

acceptance of the assignee, undertenant or occupant as tenant, or a release of
Tenant from the further observance and performance by Tenant of the covenants
herein contained. For purposes of the foregoing, a transfer by operation of law
or transfer of a controlling interest in Tenant as same exists as of the date
hereof, shall be deemed to be an assignment of this Lease. No assignment or
sublease, regardless of whether Landlord's consent has been granted or withheld,
shall be deemed to release Tenant from any of its obligations nor shall the same
be deemed to release any person guaranteeing the obligations of Tenant hereunder
from their obligations as guarantor.

     20. DEFAULT; REMEDIES; BANKRUPTCY OF TENANT. Any one or more of the
following events shall constitute an "Event of Default" hereunder, at Landlord's
election: (a) the sale of Tenant's interest in the Premises under attachment,
execution or similar legal process or, the adjudication of Tenant as a bankrupt
or insolvent, unless such adjudication is vacated within thirty (30) days; (b)
the filing of a voluntary petition proposing the adjudication of Tenant (or any
guarantor of Tenant's obligations hereunder) as a bankrupt or insolvent, or the
reorganization of Tenant (or any such guarantor), or an arrangement by Tenant
(or any such guarantor) with its creditors, whether pursuant to the Federal
Bankruptcy Code or any similar federal or state proceeding, unless such petition
is filed by a party other than Tenant (or any such guarantor) and is withdrawn
or dismissed within thirty (30) days after the date of its filing; (c) the
admission, in writing, by Tenant (or any such guarantor) of its inability to pay
its debts when due; (d) the appointment of a receiver or trustee for the
business or property of Tenant (or any such guarantor), unless such appointment
is vacated within thirty (30) days of its entry; (e) the making by Tenant (or
any such guarantor) of an assignment for the benefit of its creditors, or if, in
any other manner, Tenant's interest in this Lease shall pass to another by
operation of law; (f) the failure of Tenant to pay any rent, additional rent or
other sum of money when due and such failure continues for a period of ten (10)
days after receipt of written notice that the same is past due hereunder; (g)
the Tenant shall fail to move into or take possession of the Leased Premises
within ninety (90) days after commencement of the Lease Term or having taken
possession shall thereafter abandon and/or vacate the Premises, and (h) the
default by Tenant in the performance or observance of any covenant or agreement
of this Lease (other than a default involving the payment of money), which
default is not cured within thirty (30) days after the giving of notice thereof
by Landlord, unless such default is of such nature that it cannot be cured
within such thirty (30) day period, in which case no Event of Default shall
occur so long as Tenant shall commence the curing of the default within such
thirty (30) day period and shall thereafter diligently prosecute the curing of
same.

     Upon the occurrence and continuance of an Event of Default, Landlord upon
giving five (5) days prior written notice to Tenant may do any one or more of
the following: (a) sell, at public or private sale, all or any part of the
goods, chattels, fixtures and other personal property belonging to Tenant (but
excluding any such personal property which is not owned by Tenant, or Tenant's
confidential materials) which are or may be put into the Premises during the
Lease Term, whether or not exempt from sale under execution or attachment (it
being agreed that said property shall at all times be bound with a lien in favor
of Landlord and shall be chargeable for all rent and for the fulfillment of the
other covenants and agreements herein contained), and apply the proceeds of such
sale, first, to the payment of all costs and expenses of conducting the sale or
caring for or storing said property; second, toward the payment of any
indebtedness, including, without

                                       16
<Page>

limitation, indebtedness for rent, which may be or may become due from Tenant to
Landlord; and third, to pay the Tenant, on demand in writing, any surplus
remaining after all indebtedness of Tenant to Landlord has been fully paid; (b)
perform, on behalf and at the expense of Tenant, any obligation of Tenant under
this Lease which Tenant has failed to perform and of which Landlord shall have
given Tenant notice, the cost of which performance by Landlord, together, with
interest thereon at the rate of eighteen percent (18%) per annum, from the date
of such expenditure, shall be deemed additional rent and shall be payable by
Tenant to Landlord upon demand; (c) elect to terminate this Lease and the
tenancy created hereby by giving notice of such election to Tenant, and reenter
the Premises, by summary proceedings or otherwise, and remove Tenant and all
other persons and property from the Premises, and store such property in a
public warehouse or elsewhere at the cost and for the account of Tenant, without
resort to legal process and without Landlord being deemed guilty of trespass or
becoming liable for any loss or damage occasioned thereby; and also the
obligation to make a good faith effort to re-let the Leased Premises for any
unexpired balance of the Lease Term, and collect the rent therefor. In the event
of such re-letting by Landlord, the reletting shall be on such terms, conditions
and rental as are appropriate to the real estate market (of which the Building
is a part) at the time of such re-letting, and the proceeds that may be
collected from the same, less the expense of re-letting (including reasonable
leasing fees and commissions and reasonable costs of renovating the Leased
Premises), shall be applied upon the Tenant's rental obligation as set forth in
this Lease for the unexpired portion of the Lease Term. Tenant shall be liable
for any balance that may be due under this Lease, although Tenant shall have no
further right of possession of the Leased Premises; and (d) exercise any other
legal or equitable right or remedy which it may have at law or in equity.
Notwithstanding the provisions of clause (b) above and regardless of whether an
Event of Default shall have occurred, Landlord may exercise the remedy described
in clause (b) without any notice to Tenant if Landlord, in its good faith
judgment, believes it would be materially injured by the failure to take rapid
action, or if the unperformed obligation of Tenant constitutes an emergency.

     To the extent permitted by law, Tenant hereby expressly waives any and all
rights of redemption, granted by or under any present or future laws in the
event of Tenant's being evicted or dispossessed for any cause, or in the event
of Landlord's obtaining possession of the Leased Premises, by reason of the
violation by Tenant of any of the covenants and conditions of this Lease, or
otherwise. Landlord and Tenant hereby expressly waive trial by jury in any
action or proceeding or counterclaim brought by either party hereto against the
other party on any and every matter, directly or indirectly arising out of or
with respect to this Lease, including, without limitation, the relationship of
Landlord and Tenant, the use and occupancy by Tenant of the Premises, any
statutory remedy and/or claim of injury or damage regarding this Lease.

     Any costs and expenses incurred by Landlord (including, without limitation,
reasonable attorneys' fees) in enforcing any of its rights or remedies under
this Lease shall be deemed to be additional rent and shall be repaid to Landlord
by Tenant upon demand.

     Notwithstanding any of the other provisions of this Lease, in the event
Tenant shall voluntarily or involuntarily come under the jurisdiction of the
Federal Bankruptcy Code and thereafter Tenant or its trustee in bankruptcy,
under the authority of and pursuant to applicable provisions thereof, shall have
the power and so using same determine to assign this Lease, Tenant agrees that
(i) Tenant or its trustee will provide to Landlord sufficient information

                                       17
<Page>

enabling it to independently determine whether Landlord will incur actual and
substantial detriment by reason of such assignment and (ii) "adequate assurance
of future performance" under this Lease, as that term is generally defined under
the Federal Bankruptcy Code, will be provided to Landlord by Tenant and its
assignee as a condition of said assignment.

     21. DAMAGES. If this Lease is terminated by Landlord pursuant to
Section 20, Tenant shall, nevertheless, remain liable for all rent and damages
which may be due or sustained prior to such termination, and all reasonable
costs, fees and expenses including, but not limited to, reasonable attorneys'
fees, costs and expenses incurred by Landlord in pursuit of its remedies
hereunder, or in renting the Premises to others from time to time and additional
damages (the "Liquidated Damages"), which shall be an amount equal to the total
rent which, but for termination of this Lease, would have become due during the
remainder of the Term, less the amount of rent, if any, which Landlord shall
receive during such period from others to whom the Premises may be rented (other
than any additional rent received by Landlord as a result of any failure of such
other person to perform any of its obligations to Landlord), in which case such
Liquidated Damages shall be computed and payable in monthly installments, in
advance on the first day of each calendar month following termination of the
Lease and continuing until the date on which the Lease Term would have expired
but for such termination, and any suit or action brought to collect any such
Liquidated Damages for any month shall not in any manner prejudice the right of
Landlord to collect any Liquidated Damages for any subsequent month by a similar
proceeding.

     If this Lease is terminated pursuant to Section 20, Landlord may relet the
Premises or any part thereof, alone or together with other premises, for such
term(s) which may be greater or less than the period which otherwise would have
constituted the balance of the Term and on such terms and conditions (which may
include concessions, free rent and/or alterations of the Premises) as are
appropriate to the real estate market (of which the Building is a part) at the
time of such re-letting, but Landlord shall not be liable for, nor shall
Tenant's obligations hereunder be diminished by reason of, any failure by
Landlord to relet the Premises or any failure by Landlord to collect any rent
due upon such reletting, unless Landlord fails to use reasonable efforts to
re-let the Premises.

     22. SERVICES AND UTILITIES. Landlord shall provide the following listed
services and utilities, namely:

     (a) automatic passenger elevators providing adequate service leading to the
floor on which the Premises are located;

     (b) freight elevators providing service to the floor on which the Premises
are located as reasonable scheduling permits;

     (c) evening janitorial services to the Premises including removal of trash;

     (d) hot and cold water sufficient for drinking, lavatory toilet and
ordinary cleaning purposes from fixtures either within the Premises (if provided
pursuant to this Lease) or on the floor on which the Premises are located;

     (e) replacement of lighting tubes, lamp ballasts and bulbs;

     (f) extermination and pest control when and if necessary; and

                                       18
<Page>

     (g) maintenance of Common Areas in a manner comparable to other first class
suburban office buildings in the Baltimore-Washington corridor.

     Notwithstanding the foregoing, if at any time during the Term and any
extension or renewal thereof, Landlord shall, after reasonable investigation
determine that trash and similar waste generated by Tenant and/or emanating from
the Premises is in excess of that of other standard office tenants within the
Building leasing a premises of the same or similar size to that of the Premises,
Landlord shall bill Tenant and Tenant shall pay to Landlord as additional rent
hereunder within thirty (30) days of the date of Landlord's invoice for the
same, those costs and expenses of trash removal which are reasonably
attributable to such excess trash and similar waste generated by Tenant and/or
emanating from the Premises. "Normal Business Hours" as used herein is defined
from 8:00 a.m. to 6:00 p.m. on business days and from 8:00 a.m. to 1:00 p.m. on
Saturdays. Unless otherwise specifically provided in this Section 22, Landlord
shall have no responsibility to provide any services or utilities under this
Section 22 except during Normal Business Hours unless arrangements for
after-hours services have been made pursuant to terms and conditions acceptable
to Landlord and embodied in a separate written agreement between Landlord and
Tenant. Landlord reserves the right to stop service of the HVAC, elevator,
plumbing and electric systems, when necessary, by reason of accident, or
emergency, or for repairs, alterations, replacements, or improvements, which in
the judgment of Landlord are desirable or necessary to be made, until said
repairs, alterations, replacements, or improvements shall have been completed,
provided that in such instances, Landlord shall use reasonable efforts to stop
service to the HVAC, elevator, plumbing and electric systems after Normal
Business Hours. Landlord shall have no responsibility or liability for failure
by Landlord or any other entity to supply HVAC, elevator, plumbing, cleaning,
and electric service, during said period or when prevented from so doing by
laws, orders, or regulations of any Federal, State, County or Municipal
authority or by strikes, accidents or by any other cause whatsoever beyond
Landlord's control. Landlord's obligations to supply services and utilities are
subject to applicable laws and regulations as to energy conservation and other
such restrictions. Any additional air conditioning system, fire protection
system or security system installed by or at the request of Tenant which is not
part of Landlord's base standard tenant improvements for other tenants within
the Building shall be the responsibility of Tenant, and Tenant shall directly
pay all costs of maintenance, repair and operation of the same (including but
not limited to Landlord's costs of operation of its cooling tower or of
Landlord's other mechanical facilities required for Tenant to operate such
additional systems). In the event Tenant shall require any supplemental heat or
air conditioning service for the Premises or any part thereof, Landlord's costs
for the operation of Landlord's cooling tower or of Landlord's other mechanical
facilities required for such supplemental services shall be paid by Tenant to
Landlord as Additional Rent hereunder within thirty (30) days of Landlord's
invoice(s) to Tenant for such costs.

     All of Landlord's costs related to Tenant's use or occupancy of the
Premises after Normal Business Hours, including but not limited to Landlord's
costs for (i) services required to maintain any Common Areas resulting from
Tenant's use or occupancy of the Premises after Normal Business Hours, and (ii)
particular services as may be requested by Tenant shall be charged to Tenant at
reasonable rates to be determined by Landlord in accordance with the terms of a
separate letter agreement between Landlord and Tenant to be entered into at such
time hereafter as Landlord has determined such costs based upon expenses of
Tenant's operations

                                       19
<Page>

within the Building. Tenant shall pay for such services as additional rent
hereunder in accordance with the terms of the aforesaid letter agreement between
Landlord and Tenant. Landlord's obligations to supply services after Normal
Business Hours are subject to applicable laws and regulations as to energy
conservation and other such restrictions.

     23. ELECTRIC SERVICE AND HEATING, VENTILATION AND AIR CONDITIONING.

     23.1   ELECTRIC SERVICE TO THE PREMISES. As a part of Landlord's completion
of improvements to the Premises described in Section 34 hereof, Landlord shall
cause the Premises to be separately metered for electricity. Tenant shall pay
directly to the utility company or public authority providing such electric
service as and when the same shall be due and payable, all charges, including
adjustment, for electrical services supplied exclusively to the Premises by such
utility company or public authority.

     23.2   HEATING, VENTILATING AND AIR CONDITIONING. As a part of Landlord's
improvements to the Premises described in Section 34, Landlord shall install
facilities for heating, ventilating and air conditioning of the Premises
("HVAC"). At all times during the Term of this Lease, Tenant shall be
responsible for and promptly pay, as and when the same become due and payable,
all charges for electrical energy used to operate said HVAC and related
electrical equipment serving the Premises, directly to the utility company or
public authority providing such electrical energy pursuant to the terms of the
preceding Section 23.1.

     24. SEVERAL LIABILITY. If the Tenant shall become one or more individuals,
corporations or other entities, whether or not operating as a partnership or
joint venture, then each such individual, corporation, entity, joint venturer or
partner shall be deemed to be both jointly and severally liable for the payment
of the entire rent and other payments specified herein.

     25. ACCEPTANCE OF LEASED PREMISES. Tenant shall have reasonable
opportunity, provided it does not thereby interfere with Landlord's work, to
examine the Leased Premises to determine the condition thereof. Upon taking
possession of the Leased Premises, Tenant shall be deemed to have accepted same
as being satisfactory and in the condition called for hereunder, except for
latent defects and punch list items. Tenant shall give Landlord prompt written
notice of such punch list items and Landlord shall use its best efforts to
complete such punch list items within thirty (30) days of the date of such
notice.

     26. INABILITY TO PERFORM. This Lease and the obligation of Tenant to pay
rent hereunder and perform all of the other covenants and agreements hereunder
on the part of Tenant to be performed shall in no way be affected, impaired or
excused because Landlord is unable to fulfill any of its obligations under this
Lease or to supply, or is delayed in supplying, any service to be supplied by it
under the terms of this Lease or is unable to make, or is delayed in making any
repairs, additions, alterations, or decorations or is unable to supply, or is
delayed in supplying, any equipment or fixtures if Landlord is prevented or
delayed from so doing by reason of strikes or labor troubles or any outside
cause whatsoever including, but not limited to, governmental preemption in
connection with a National Emergency, or by reason of any rule, order or
regulation of any department or subdivision of any government agency or by
reason of the conditions of supply and demand which have been or are affected by
war or other emergency. Similarly, Landlord shall not be liable for any
interference with any services supplied to Tenant by others if such interference
is

                                       20
<Page>

caused by any of the reasons listed in this Section 26. Nothing contained in
this Section 26 shall be deemed to impose any obligation on Landlord not
expressly imposed by other sections of this Lease; provided, however, that
Landlord shall be liable to Tenant for all reasonable costs incurred by Tenant
in the event Landlord fails to use due diligence or fails to minimize or
mitigate performance under Landlord's control.

     27. NO WAIVERS. The failure of Landlord to insist, in any one or more
instances, upon a strict performance of any of the covenants of this Lease, or
to exercise any option herein contained, shall not be construed as a waiver, or
a relinquishment for the future, of such covenant or option, but the same shall
continue and remain in full force and effect. The receipt by Landlord of rent,
with knowledge of the breach of any covenant hereof, shall not be deemed a
waiver of such breach, and no waiver by Landlord of any provision hereof shall
be deemed to have been made unless expressed in writing and signed by Landlord.

     28. ACCESS TO PREMISES AND CHANGE IN SERVICES. Upon advance notice to
Tenant (except in case of accident or emergency as reasonably determined by
Landlord, and except in case of Landlord's janitorial services provided to the
Premises pursuant to the terms of Section 22 hereof) Landlord shall have the
right, without abatement of rent, to enter the Leased Premises at any hour to
examine the same, or to make such repairs and alterations as Landlord shall deem
necessary for the safety and preservation of the Building, and also to exhibit
the Leased Premises to be let. Landlord shall also have the right at any time,
without the same constituting an actual or constructive eviction and without
incurring and liability to Tenant therefor, to change the arrangement and/or
location of entrances or passageways, doors and doorways, and corridors, stairs,
toilets, elevators, or other public parts of the Building, and to change the
name by which the Building is commonly known and/or its mailing address.

     29. ESTOPPEL CERTIFICATES. Tenant agrees at any time and from time to time
upon not less than fifteen (15) days' prior notice by Landlord to execute,
acknowledge and deliver to Landlord a statement in writing certifying that this
Lease is unmodified and in full force (or if there have been modifications, that
the same is in full force and effect as modified and stating the modifications)
and the dates to which the rent and other charges have been paid in advance, if
any, and stating whether or not to the best knowledge of the signer of such
certificate Landlord is in default in performance of any covenant, agreement or
condition contained in this Lease and, if so, specifying each such default of
which the signer may have knowledge, it being intended that any such statement
delivered hereunder may be relied upon by third parties not a party to this
Lease.

     Tenant agrees to execute the Estoppel Certificate in the form attached
hereto as Exhibit "D" upon acceptance of the Premises.

     30. SUBORDINATION. Tenant accepts this Lease, and the tenancy created
hereunder, subject and subordinate to any mortgages, overleases, leasehold
mortgages or other security interests now or hereafter a lien upon or affecting
the Building or the Property or any part thereof. Tenant shall, at any time
hereafter, on request, execute any instruments or leases or other documents that
may be required by any mortgage or mortgagor or overlandlord for the purpose of
subjecting or subordinating this Lease and the tenancy created hereunder to the
lien of any such mortgage or mortgages or underlying lease, and the failure of
Tenant to execute any such instruments, releases or documents shall constitute a
default hereunder.

                                       21
<Page>

     31. ATTORNMENT. Tenant agrees that upon any termination of Landlord's
interest in the Leased Premises, Tenant will, upon request, attorn to the person
or organization then holding title to the reversion of the Leased Premises (the
"Successor") and to all subsequent Successors, and will pay to the Successor all
of the rents and other monies required to be paid by the Tenant hereunder and
perform all of the other terms, covenants, conditions and obligations in this
Lease contained; provided, however, that if in connection with such attornment
Tenant shall so request from such Successor in writing, such Successor will
execute and deliver to Tenant an instrument wherein such Successor agrees that
as long as Tenant performs all of the terms, covenants and conditions of this
Lease, on Tenant's part to be performed, Tenant's possession under the
provisions of this Lease shall not be disturbed by such Successor.

     32. NOTICES. All notices, demands and requests required under this Lease
shall be in writing. All such notices, demands and requests shall be deemed to
have been properly given if either sent by United States registered or certified
mail, or overnight by any nationally recognized overnight delivery service,
postage prepaid, addressed (i) if to the Landlord at 8808 Centre Park Drive,
Columbia, Maryland 21045, with copies sent to John Harris Gurley, Esquire, 8808
Centre Park Drive, Columbia, Maryland 21045 or (ii) if to Tenant at the Leased
Premises.

     Any party may designate a change of address by written notice to the above
parties, given at least ten (10) days before such change of address is to become
effective.

     33. RELOCATION. Intentionally Deleted.

     34. TENANT'S SPACE. Attached hereto as Exhibit "C" is a copy of a final
floor plan of the Premises and specifications for improvements to the Premises
as agreed upon by Landlord and Tenant (hereinafter the "Final Plans and
Specifications") specifying the manner in which, at Landlord's expense, Landlord
shall finish the Premises. Landlord will cause all work necessary to renovate
the Premises in accordance with the Final Plans and Specifications to be
commenced promptly upon execution of this Lease and thereafter duly completed.
The improvements to be constructed or installed within the Premises by Landlord
pursuant to this Section 34 and the Final Plans and Specifications are
hereinafter referred to as the "Tenant Improvements".

     All alterations, modifications and/or deviations to the Final Plans and
Specifications requested by Tenant shall be made in the form of written change
orders prepared at Tenant's cost and submitted by Tenant to Landlord in writing
for Landlord's prior approval, which approval by Landlord shall not be
unreasonably withheld. All costs incurred for work and material described in
those written change orders requested by Tenant and approved by Landlord shall
be paid by Tenant as additional rent hereunder within thirty (30) days of the
date of Landlord's invoice(s) to Tenant for the same, and the costs of such work
as described in the aforesaid written change orders shall include all costs of
labor and materials incurred by Landlord in the performance of such work, plus
ten (10%) percent for overhead and ten (10%) percent for profit. At Tenant's
request, Landlord shall fully cooperate with Tenant to establish such costs or
estimates thereof in advance of performing the work.

     35. QUIET ENJOYMENT. Tenant, upon the payment of rent and the performance
of all the terms of this Lease, shall at all times during the Lease Term and
during any extension or renewal term peaceably and quietly enjoy the Premises
without any disturbance

                                       22
<Page>

from the Landlord or any other person claiming through the Landlord.

     36. VACATION OF PREMISES. Tenant shall vacate the Premises at the end of
the Term of this Lease or any extension or renewal thereof. If Tenant fails to
vacate at such time there shall be payable to Landlord an amount equal to (i)
one hundred and fifty percent (150%) of the monthly Base Rent in effect
immediately prior to the expiration of the Term (as renewed or extended) for the
first thirty (30) days or any part thereof that Tenant holds over, and (ii)
thereafter double the Base Rent in effect immediately prior to the expiration of
the Term (as renewed or extended) for each month or part of a month that Tenant
holds over, plus all other payments provided for herein, and the payment and
acceptance of such payments shall not constitute an extension or renewal of this
Lease. In event of any such holdover, Landlord shall also be entitled to all
remedies provided by law for the speedy eviction of tenants, and to the payment
of all attorneys' fees and expenses incurred in connection therewith.

     37. PARTNERS' LIABILITY. It is understood that the Owner of the Building is
a Maryland Limited Partnership. All obligations of said Owner hereunder are
limited to the net assets of the Owner from time to time. No General or Limited
Partner of Owner, or of any successor partnership, whether now or hereafter a
partner, shall have any personal responsibility or liability for the obligations
of Owner hereunder.

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

     39. INDEMNIFICATION. To the maximum extent permitted by law and subject to
the waiver and insurance provisions of Section 12.3 herein, each party hereto
agrees that it will indemnify, defend and hold harmless the other party from
claims from personal injury, death or property damage related to incidents
occurring in or about the Premises or the Building which are caused by the
negligence or willful misconduct of that party, its agents, employees or
invitees. When the claim is caused by the joint negligence or willful misconduct
of both Tenant and Landlord, each party's duty to defend, indemnify, and hold
harmless the other party shall be in proportion to that party's allocable share
of the joint negligence or willful misconduct.

     40. CAPTIONS. All headings anywhere contained in this Lease are intended
for convenience or reference only and are not to be deemed or taken as a summary
of the provisions to which they pertain or as a construction thereof.

     41. BROKERS. Tenant represents that Tenant has dealt directly with, only
with, Smithy Braedon, and Spaulding & Slye Colliers as brokers in connection
with this Lease, and Tenant warrants that no other broker negotiated this Lease
or is entitled to any commissions in connection with this Lease.

     42. RECORDATION. Tenant covenants that it will not, without Landlord's
prior written consent, record this Lease or any memorandum of this Lease or
offer this Lease or any memorandum of this Lease for recordation. If at any time
Landlord or any mortgagee of Landlord's interest in the Leased Premises shall

                                       23
<Page>

require the recordation of this Lease or any memorandum of this Lease, such
recordation shall be at Landlord's expense. If at any time Tenant shall require
the recordation of this Lease or any memorandum of this Lease, such recordation
shall be at Tenant's expense. If the recordation of this Lease or any
memorandum of this Lease shall be required by any valid governmental order, or
if any government authority having jurisdiction in the matter shall assess and
be entitled to collect transfer taxes or documentary stamp taxes, or both
transfer taxes and documentary stamp taxes on this Lease or any memorandum of
this Lease, Tenant will execute such acknowledgments as may be necessary to
effect such recordations and pay, upon request of Landlord, one half of all
recording fees, transfer taxes and documentary stamp taxes payable on, or in
connection with this Lease or any memorandum of this Lease or such recordation.

     43. SUCCESSORS AND ASSIGNS. The covenants, conditions and agreements
contained in this Lease shall bind and inure to the benefit of Landlord and
Tenant, and their respective heirs, personal representatives, successors and
assigns (subject, however, to the terms of Article 19 hereof).

     44. MODIFICATION. It is understood and agreed that the terms of this Lease
shall be modified, if so required, for the purpose of complying with or
fulfilling the requirements of any party secured under any mortgage or deed of
trust or ground lease now or hereafter of record with respect to the property
provided that such modification shall not be in substantial derogation or
diminution of any of the rights of the Tenant hereto, nor substantially increase
any of the obligations or liabilities of the Tenant.

     Failure of Tenant to execute any such modification within fifteen (15) days
after written request will constitute a material default hereunder.

     45. INTEGRATION OF AGREEMENTS. This writing is intended by the Parties as a
final expression of their agreement and is a complete and exclusive statement of
its terms, and all negotiations, considerations and representations between the
Parties are incorporated. No course of prior dealings between the Parties or
their affiliates shall be relevant or admissible to supplement, explain, or vary
any of the terms of this Lease. Acceptance of, or acquiescence to, a course of
performance rendered under this Lease or any prior agreement between the Parties
or their affiliates shall not be relevant or admissible to determine the meaning
of any of the terms or covenants of this Lease. Other than as specifically set
forth in this Lease, no representations, understandings, or agreements have been
made or relied upon in the making of this Lease.

     46. TENANT'S RIGHT-OF-FIRST REFUSAL. Provided Tenant is not in default of
any of the terms, covenants and conditions of this Lease, Tenant shall have a
continuing right-of-first refusal to lease from Landlord all or any portion of
that certain area containing 5,061 rentable square feet in the aggregate as
shown cross-hatched on Exhibit "E" attached hereto and made a part hereof (the
"Expansion Suite"). At any time during the Term, as the same may be renewed or
extended, as Landlord shall enter into good faith meaningful negotiations with a
third party to lease the Expansion Suite, Landlord shall so notify Tenant.
Tenant shall exercise the foregoing right-of-first refusal by delivering written
notice thereof to Landlord within five (5) days of Tenant's receipt of
Landlord's notice. If such right is exercised by Tenant at any time during the
first nine (9) full calendar months of the Term hereof, such Expansion Suite
shall be leased for a term running concurrent with the Term hereof, as the same
may be renewed or

                                       24
<Page>

extended, at the same Base Rent, and otherwise on substantially the same terms
and conditions (as computed on a per rentable square foot basis) as herein set
forth for the Premises, including those conditions pertaining to leasehold
improvements. If such right-of-first refusal is exercised after the expiration
of the ninth (9th) full calendar month of the Term, the leasing of such
Expansion Suite shall be on those commercially standard terms and conditions as
are mutually acceptable to Landlord and Tenant.

     In the event that Tenant exercises the right-of-first refusal granted
herein, Landlord and Tenant shall enter into either an amendment to this Lease
or a new lease agreement for the Expansion Suite within thirty (30) calendar
days of receipt by Landlord of Tenant's notice exercising said right-of-first
refusal. In the event Tenant (i) declines to exercise its right as
above-provided, (ii) Tenant fails to deliver notice thereof within the five (5)
day calendar period, (iii) Tenant fails to execute a lease agreement or an
amendment to this Lease for the Expansion Suite within said thirty (30) day
period, or (iv) an Event of Default has occurred and shall be continuing
hereunder at such time as Tenant shall exercise its right-of-first refusal, then
in any of such events, Landlord may lease the Expansion Suite to such third
party whereupon Tenant's right-of-first refusal as to the Expansion Suite shall
lapse until said space shall again for whatever reason become available for
lease.

     47. TENANT'S MOVING ALLOWANCE. Landlord agrees to reimburse Tenant those
reasonable moving and telecommunication change costs and expenses paid or
incurred by Tenant in moving to the Premises in any amount up to but not
exceeding Thirty-Five Thousand Five Hundred and Seventy-Two Dollars ($35,572.00)
(the "Tenant Moving Allowance"). The Tenant Moving Allowance shall be paid by
Landlord to Tenant within thirty (30) days of the date of Tenant's invoice(s) to
Landlord for the costs and expenses paid or incurred by Tenant in moving to the
Premises (which invoice shall be submitted by Tenant to Landlord within fifteen
(15) days of the Commencement Date and shall include reasonable supporting
documentation). In the event Tenant's actual moving costs as shown on its
invoice to Landlord shall be less than the Tenant Moving Allowance, then
Landlord shall apply the difference between Tenant's actual moving costs and
expenses and the Tenant Moving Allowance as a partial credit against Base Rent
first due and payable under Section 5.1.

     IN WITNESS WHEREOF, Landlord and Tenant have respectively affixed their
hands and seals to this Lease as of the day and year first above written.

WITNESS OR ATTEST:                        LANDLORD:
                                          THE KMS GROUP, INC.,
                                          Agent for Owner

  /s/                                     By: /s/ J. Richard Uhlig        (SEAL)
-------------------------------               -----------------------------
                                              Vice President

WITNESS OR ATTEST:                        TENANT:

                                          J. G. VAN DYKE & ASSOCIATES, INC.,
                                          a Maryland corporation

  /s/                                     By: /s/ J. Gary O. Van Dyke     (SEAL)
-------------------------------               -----------------------------
                                              Title: President
                                                     ---------------------------

                                       25
<Page>

STATE OF MARYLAND, COUNTY OF Howard, TO WIT:

     I HEREBY CERTIFY, that on this 30th day of September, 1991, before me, the
undersigned Notary Public of said State, personally appeared J. RICHARD
UHLIG, who acknowledged himself to be Vice President of THE KMS GROUP,
INC., Agent for Owner, a Maryland corporation, known to me (or satisfactorily
proven) to be the person whose name is subscribed to the within instrument, and
acknowledged that he executed the same for the purposes therein contained as the
duly authorized Agent by signing the name of the corporation by himself as
Agent.

     WITNESS my hand and Notarial Seal.

                                          /s/
                                          --------------------------------
                                          Notary Public

My Commission Expires: 05/01/94

STATE OF Maryland, CITY/COUNTY OF Frederick, TO WIT:

     I HEREBY CERTIFY, that on this 27th day of September, 1991, before me, the
undersigned Notary Public of said State, personally appeared J. Gary O. Van
Dyke, who acknowledged himself/herself to be a President of J. G. VAN DYKE &
ASSOCIATES, INC., a Maryland corporation, known to me (or satisfactorily proven)
to be the person whose name is subscribed to the within instrument, and
acknowledged that he/she executed the same for the purposes therein contained as
the duly authorized President of said corporation by signing the name of the
corporation by himself/herself as President.

     WITNESS my hand and Notarial Seal.

                                          /s/ Audrey Rayfield
                                          --------------------------------
                                          Notary Public

My Commission Expires: February 1, 1992

                                       26
<Page>

               FIRST AMENDMENT AND EXTENSION TO AGREEMENT OF LEASE

     THIS FIRST AMENDMENT AND EXTENSION TO AGREEMENT OF LEASE (this
"Amendment"), made this 30th day of December, 1996, by and between CONSTELLATION
REAL ESTATE, INC., Maryland corporation and Agent for Owner ("Landlord"), and
J.G VAN DYKE & ASSOCIATES, INC., a Maryland corporation ("Tenant").

                              W I T N E S S E T H:

     WHEREAS, Landlord, as successor to The KMS Group, Inc., and Tenant have
heretofore entered into that certain Agreement of Lease dated September 30, 1991
(the "Lease"), by the terms of which Landlord leases to Tenant and Tenant rents
from Landlord that premises containing the agreed upon equivalent of 17,786
rentable square feet (the "Premises") more particularly described in the Lease
and situate on the second floor of Landlord's building known as 141 National
Business Parkway, Annapolis Junction, Maryland 20701 (the "Building") for an
initial term which will expire on December 31, 1996; and

     WHEREAS, Landlord and Tenant mutually desire to renew the Term of the Lease
for an additional five (5) year term and to amend the Lease as more particularly
set forth below.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant hereby amend
the Lease as follows:

1.   EXTENSION OF TERM. The Term of the Lease is hereby extended for an
additional period of five (5) years, commencing on January 1, 1997 and expiring
on December 31, 2001 (the "First Renewal Term"). As used in the Lease, the word
"Term" shall refer to the initial term described in the Lease, the First Renewal
Term and the Second Renewal Term, if any.

2.   AMENDMENT OF SECTION 2.3. The first and second paragraphs of SECTION 2.3
are hereby deleted in its entirety and the following paragraphs are inserted in
lieu thereof:

                    Provided that Tenant is not in default of any
            term, covenant or condition of this Lease beyond any
            applicable cure periods, Tenant shall have the option
            to extend the Term of this Lease for one (1)
            additional period of five (5) years (the "Second
            Renewal Term"), to commence on January 1, 2002, upon
            the same terms, covenants and conditions as contained
            in this Lease, except that Tenant shall pay to
            Landlord during the Second Renewal Term, as Base Rent
            that amount equal to the "Prevailing Market Rate," as
            hereinafter defined.

                    For the purposes of this Section 2.3, the
            term "Prevailing Market Rate" shall mean the average
            annual rental including all market concessions,
            expressed in dollars per square foot, for space in
            the Building then being obtained by Landlord for the
            renewal of leases of not less than three (3) years,
            covering an area in the Building of not less than
            10,000 square feet. If no such area is then being
            offered for leasing in the Building, the Prevailing
            Market Rate shall be equal to the average annual
            rental including all market concessions, expressed in
            dollars per square foot, for renewal leases in
            comparable office buildings located within the
            Columbia, Maryland market place area taking into
            consideration the age of the building and the size of
            the tenant.

<Page>

3.   BASE RENT DURING FIRST RENEWAL TERM.

     3.1    Section 5.1 is hereby amended to include the following amounts of
Annual Base Rent to be payable during the First Renewal Term:

<Table>
<Caption>
                                                          Monthly Installment
Renewal Term         Rent p.s.f.    Annual Base Rent      of Annual Base Rent
------------         -----------    ----------------     ----------------------
<S>                  <C>            <C>                  <C>
1/01/97-12/31/97     $ 15.35        $ 273,015.12         $ 22,751.26
1/01/98-12/31/98     $ 15.79        $ 280,840.92         $ 23,403.41
1/01/99-12/31/99     $ 16.24        $ 288,844.68         $ 24,070.39
1/01/00-12/31/00     $ 16.70        $ 297,026.16         $ 24,752.18
1/01/01-12/31/01     $ 17.18        $ 305,563.44         $ 25,463.62
</Table>

     3.2    Commencing on the first day of the Renewal Term, Section 5.5 shall
be deleted in its entirety.

4.   AMENDMENT OF "BASE YEAR BUILDING EXPENSES". Section 5.2.4 is hereby amended
by adding the following sentence at the end thereof:

            Commencing on the first day of the First Renewal Term
            and continuing thereafter, "Base Year Building
            Expenses" shall mean the actual Building Expenses
            which Landlord incurs in calendar year 1997.

5.   AMENDMENT OF "BASE YEAR TAXES". Section 5.2.5 is hereby amended by adding
the following sentence at the end thereof:

            Commencing on the first day of the First Renewal Term
            and continuing thereafter, "Base Year Taxes" shall
            mean the actual Taxes which Landlord incurs during
            the tax year commencing on July 1, 1996 and expiring
            on June 30, 1997.

6.   TENANT IMPROVEMENT ALLOWANCE. Landlord agrees to reimburse Tenant for the
costs and expenses paid or incurred by Tenant in making certain improvements to
the Premises in an amount up to but not exceeding One Hundred Twenty-Four
Thousand Five Hundred Two Dollars ($124,502.00) (the "Allowance"). In the event
Tenant's actual improvement costs shall be less than the Allowance, then
Landlord shall apply the difference between Tenant's actual improvement costs
and expenses and the Allowance as a partial credit against the amount of Base
Rent then due and payable under Section 5.1. All improvements shall be made in
accordance with Section 9 of the Lease.

7.   AMENDMENT OF SECTION 3--RELEASE OF LETTER OF CREDIT. The following sentence
shall be added to the end of SECTION 3:

            Notwithstanding anything in this Section 3 to the
            contrary, Landlord shall return to Tenant the Letter
            of Credit on or before January 1, 1997, and provided
            that Tenant is not in default under the terms of this
            Lease after the giving of all required notices and
            the expiration of all cure periods, Tenant shall not
            be required to deposit with Landlord any funds as a
            security deposit during the Renewal Term.

8.   RATIFICATION OF LEASE. All other terms, covenants and conditions of the
Lease shall remain the same and continue in full force and effect, and shall be
deemed unchanged, except as such terms, covenants and conditions of the Lease
have been amended or modified by this Amendment, and this Amendment shall, by
this reference, constitute a part of the Lease.

                                        2
<Page>

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment under
their respective seals as of the day and year first-above written.

WITNESS/ATTEST:                           LANDLORD:
                                          CONSTELLATION REAL ESTATE, INC.,
                                          Agent for Owner

/s/                                       BY: /s/ J. Richard Uhlig        (SEAL)
-----------------------------------          -----------------------------
                                              J. Richard Uhlig,
                                              Senior Vice President

WITNESS/ATTEST:                           TENANT:
                                          J.G. VAN DYKE & ASSOCIATES, INC.

/s/                                       BY: /s/ J. Gary O. Van Dyke     (SEAL)
-----------------------------------          -----------------------------
                                          Name:   J. GARY O. VAN DYKE
                                               --------------------------------
                                          Title:  President
                                                -------------------------------

STATE OF MARYLAND, COUNTY OF [ILLEGIBLE], to wit:

     I HEREBY CERTIFY, that on this 30th day of December, 1996, before me, the
subscriber, a Notary Public of the State of Maryland, personally appeared
J. RICHARD UHLIG known to me or satisfactorily proven to be the Senior Vice
President of CONSTELLATION REAL ESTATE, INC., a Maryland corporation, Agent for
Owner, and acknowledged that he executed the foregoing instrument for the
purposes therein contained by signing the name of the Corporation by himself as
such Senior Vice President.

     WITNESS my hand and Notarial Seal.

                                          /s/
                                          -------------------------------------
                                                        Notary Public

My Commission Expires: 9-1-00

STATE OF MARYLAND, COUNTY OF Frederick, to wit:

     I HEREBY CERTIFY, that on this 16th day of December, 1996, before me, the
subscriber, a Notary Public of the State of Maryland, personally appeared
J. Gary O. Van Dyke, known to me or satisfactorily proven to be the President of
J. G. VAN DYKE & ASSOCIATES, INC., a Maryland corporation, and acknowledged that
he/she executed the foregoing instrument for the purposes therein contained by
signing the name of the Corporation by himself/herself as President.

     WITNESS my hand and Notarial Seal.

                                          /s/
                                          -------------------------------------
                                                        Notary Public

My Commission Expires: 10/1/99

                                        3
<Page>

              SECOND AMENDMENT AND EXTENSION TO AGREEMENT OF LEASE

     THIS SECOND AMENDMENT AND EXTENSION TO AGREEMENT OF LEASE (this
"Amendment"), made this 8th day of May, 2001, by and between NBP 131-133-141,
LLC ("Landlord"), and GETRONICS GOVERNMENT SOLUTIONS, L.L.C., formerly known as
Wang Government Services, Inc. ("Tenant").

                              W I T N E S S E T H:

     WHEREAS, Landlord, as successor to The KMS Group, Inc., and J.G. Van Dyke &
Associates, Inc. (the "Original Tenant") have heretofore entered into that
certain Agreement of Lease dated September 30, 1991 and that certain First
Amendment and Extension to Agreement of Lease dated December 30, 1996
(collectively, the "Lease"), by the terms of which Landlord leases to Tenant and
Tenant rents from Landlord that premises containing the agreed upon equivalent
of 17,786 rentable square feet (the "Premises") more particularly described in
the Lease and situate on the second floor of Landlord's building known as 141
National Business Parkway, Annapolis Junction, Maryland 20701 (the "Building")
for a renewal term which will expire on December 31, 2001; and

     WHEREAS, pursuant to that certain Assignment and Assumption of Lease dated
January 12, 2000, Original Tenant assigned all of its right, title and interest
under the Lease to Tenant; and

     WHEREAS, Landlord and Tenant mutually desire to renew the Term of the Lease
for an additional five (5) year term and to amend the Lease as more particularly
set forth below.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant hereby amend
the Lease as follows:

1.   EXTENSION OF TERM. The Term of the Lease is hereby extended for an
additional period of five (5) years, commencing on January 1, 2002 and expiring
on December 31, 2006 (the "Second Renewal Term"). As used in the Lease, the word
"Term" shall refer to the initial term described in the Lease, the First Renewal
Term and the Second Renewal Term.

2.   FURTHER RENEWAL RIGHTS. Provided that Tenant is not in default of any term,
covenant or condition of this Lease beyond any applicable cure periods, Tenant
shall have the option to extend the Term of this Lease for one (1) additional
period of five (5) years (the "Third Renewal Term"), to commence on January 1,
2007, upon the same terms, covenants and conditions as contained in this Lease,
except that Tenant shall pay to Landlord during the Third Renewal Term, as Base
Rent that amount equal to the "Prevailing Market Rate," as hereinafter defined.

     For the purposes of this SECTION 2, the term "Prevailing Market Rate" shall
mean the average annual rental including all market concessions, expressed in
dollars per square foot, for space in the Building then being obtained by
Landlord for the renewal of leases of not less than three (3) years, covering an
area in the Building of not less than 10,000 square feet. If no such area is
then being offered for leasing in the Building, the Prevailing Market Rate shall
be equal to the average annual rental including all market concessions,
expressed in dollars per square foot, for renewal leases in comparable office
buildings located within the Columbia, Maryland market place area taking into
consideration the age of the building and the size of the tenant.

<Page>

3.   BASE RENT DURING SECOND RENEWAL TERM. SECTION 5.1 is hereby amended to
include the following amounts of Annual Base Rent to be payable during the
Second Renewal Term:

<Table>
<Caption>
                                                            Monthly Installment
Renewal Term         Rent p.s.f.    Annual Base Rent        of Annual Base Rent
------------         -----------    ----------------        -------------------
<S>                  <C>            <C>                     <C>
1/01/02-12/31/02     $ 20.25        $ 360,166.56            $ 30,013.88
1/01/03-12/31/03     $ 20.86        $ 370,971.56            $ 30,914.30
1/01/04-12/31/04     $ 21.48        $ 382,100.70            $ 31,841.73
1/01/05-12/31/05     $ 22.13        $ 393,563.72            $ 32,796.98
1/01/06-12/31/06     $ 22.79        $ 405,370.64            $ 33,780.89
</Table>

4.   AMENDMENT OF "BASE YEAR BUILDING EXPENSES". Section 5.2.4 is hereby amended
by adding the following sentence at the end thereof:

            Commencing on the first day of the Second Renewal
            Term and continuing thereafter, "Base Year Building
            Expenses" shall mean the actual Building Expenses
            which Landlord incurs in calendar year 2001.

5.   AMENDMENT OF "BASE YEAR TAXES". Section 5.2.5 is hereby amended by adding
the following sentence at the end thereof:

            Commencing on the first day of the First Renewal Term
            and continuing thereafter, "Base Year Taxes" shall
            mean the actual Taxes which Landlord incurs during
            the tax year commencing on July 1, 2001 and expiring
            on June 30, 2002.

6.   TENANT IMPROVEMENT ALLOWANCE. Landlord agrees to reimburse Tenant for the
costs and expenses paid or incurred by Tenant in making certain improvements to
the Premises in an amount up to but not exceeding Eighty-Eight Thousand Nine
Hundred Thirty Dollars ($88,930.00) (the "Allowance"). In the event Tenant's
actual improvement costs shall be less than the Allowance, then Landlord shall
apply the difference between Tenant's actual improvement costs and expenses and
the Allowance as a partial credit against the amount of Base Rent then due and
payable under Section 5.1. All improvements shall be made in accordance with
SECTION 9 of the Lease. Tenant shall have the right to engage its internal
personnel to make the improvements to the Premises which are non-structural in
nature and do not affect any of the mechanical, electrical, or plumbing systems
serving the Premises. The Allowance will be disbursed in accordance with the
following provisions:

     (a)    Fifty percent (50%) of the Allowance shall be paid by Landlord to
Tenant upon completion of fifty percent (50%) of Tenant's Work, to reimburse
Tenant for amounts actually paid by Tenant in connection therewith to Tenant's
vendors, suppliers or contractors, provided that Landlord shall have received
(i) a certificate signed by Tenant and Tenant's architect setting forth (a) that
the sum then requested was paid by Tenant to contractors, subcontractors,
materialmen, engineers and other persons who have rendered services or furnished
materials in connection with work on the Tenant Work, (b) a complete description
of such services and materials and the amounts paid or to be paid to each of
such persons in respect thereof, and (c) that the work described in the
certificate has been completed substantially in accordance with the Approved
Plans and Specifications and (ii) paid receipts or such other proof of payment
as Landlord shall reasonably require for all such work completed. Landlord shall
reimburse Tenant within thirty (30) days after Landlord's receipt of a written
request for reimbursement from Tenant and shall debit the Allowance therefor.

     (b)    The portion of Allowance not advanced pursuant to subsection (a)
above shall be paid by Landlord to Tenant upon completion of the Tenant's Work,
to reimburse Tenant for amounts actually paid by Tenant in connection therewith
to Tenant's vendors, suppliers or contractors,

                                        2
<Page>

provided that Landlord shall have received (i) a certificate in accordance
with the requirements of subsection (a) above, accompanied by lien waivers
satisfactory to Landlord executed by any contractors or subcontractors for
whose labor or material Tenant has previously been reimbursed pursuant to
subsection (a) above, (ii) paid receipts or such other proof of payment as
Landlord shall reasonably require evidencing that final payment has been made
for all materials and labor furnished in connection with the Tenant Work, and
(iii) a copy of a final unconditional certificate of occupancy evidencing
that Tenant may commence occupancy of the Premises for all purposes set forth
in this Lease.

7.   TENANT'S TERMINATION RIGHT. Tenant shall have the one time right to
terminate this Lease at the expiration of the fourth Lease Year of the Second
Renewal Term, provided that (i) Tenant gives Landlord at least one (1) year
prior written notice of its intent to terminate the Lease, (ii) there is no
outstanding Event of Default at the time that Tenant notifies Landlord of its
intent to terminate the Lease or as of the date of termination, and (iii)
simultaneously with the delivery of its termination notice, Tenant pays to
Landlord a termination fee in the amount equal to the unamortized amount of
the Allowance paid by Landlord to Tenant in accordance with the provisions of
SECTION 6 applying an interest rate of ten percent (10%) per annum. If Tenant
fails to exercise its termination rights strictly in accordance with the
foregoing provision, this Lease shall remain in full force and effect and
Tenant shall have no further right to terminate this Lease.

8.   RATIFICATION OF LEASE. All other terms, covenants and conditions of the
Lease shall remain the same and continue in full force and effect, and shall
be deemed unchanged, except as such terms, covenants and conditions of the
Lease have been amended or modified by this Amendment, and this Amendment
shall, by this reference, constitute a part of the Lease.

9.   BROKER. Tenant represents that Tenant has not dealt directly with any
broker in connection with this Amendment and Tenant warrants that no broker
negotiated this Amendment or is entitled to any commissions in connection
with this Amendment.

     IN WITNESS WHEREOF, the parties hereto have executed this Amendment
under their respective seals as of the day and year first-above written.

WITNESS/ATTEST:               LANDLORD:
                              NBP 131-133-141, LLC

/s/                           BY: /s/ Roger A. Waesche, Jr. (SEAL)
------------------------      ------------------------------
                                  Roger A. Waesche, Jr.
                                  Senior Vice President

WITNESS/ATTEST:               TENANT:
                              GETRONICS GOVERNMENT SOLUTIONS, L.L.C.

/s/ Carly Mauck               BY: /s/ Alfred Willis         (SEAL)
------------------------      ------------------------------
                              Name: Alfred Willis
                              Title: Director, Facilities & Real Estate Services

                                        3
<Page>

STATE OF Maryland COUNTY OF Howard, TO WIT:

     I HEREBY CERTIFY, that on this 8th day of May, 2001, before me, undersigned
Notary Public of said State, personally appeared Roger A. Waesche, Jr., known to
me or satisfactorily proven to be the person whose name is subscribed to the
within instrument, who acknowledged himself to be the Senior Vice President of
NBP 131-133-141, LLC, a Maryland limited liability company, and acknowledged
that he executed the same for the purposes therein contained as the duly
authorized Senior Vice President of said limited liability company by signing
the name of the limited liability company by himself as Senior Vice President.

     IN WITNESS WHEREOF, I have set my hand and Notarial Seal, the day and year
first above written.

[SEAL]                                    /s/ Zarae Pitts
                                          -------------------------------------
                                          Notary Public

My commission expires: November 25, 2002

STATE OF Virginia, COUNTY OF Fairfax, to wit:

     I HEREBY CERTIFY, that on this 4th day of May, 2001, before me, the
subscriber, a Notary Public of the State of Virginia, personally appeared Alfred
Willis, known to me or satisfactorily proven to be a Director of GETRONICS
GOVERNMENT SOLUTIONS, L.L.C., a Delaware limited liability company, and
acknowledged that he/she executed the foregoing instrument for the purposes
therein contained by signing the name of the limited liability company by
himself/herself as Director.

     WITNESS my hand and Notarial Seal.

                                                        /s/ Karen L. Sear
                                                   ----------------------------
                                                          Notary Public

My Commission Expires: Sept. 30, 2002

                                        4
<Page>

                      THIRD AMENDMENT TO AGREEMENT OF LEASE

     THIS THIRD AMENDMENT TO AGREEMENT OF LEASE (this "Amendment"), made this
27th day of September, 2001, and is effective as of May 8, 2001, by and between
NBP 131-133-141, LLC ("Landlord"), and GETRONICS GOVERNMENT SOLUTIONS, L.L.C.,
formerly known as Wang Government Services, Inc. ("Tenant").

                              W I T N E S S E T H:

     WHEREAS, Landlord, as successor to The KMS Group, Inc., and J.G. Van Dyke &
Associates, Inc. (the "Original Tenant") have heretofore entered into that
certain Agreement of Lease dated September 30, 1991 and that certain First
Amendment and Extension to Agreement of Lease dated December 30, 1996 and that
certain Second Amendment and Extension to Agreement of Lease dated May 8, 2001
(collectively, the "Lease"), by the terms of which Landlord leases to Tenant and
Tenant rents from Landlord that premises containing the agreed upon equivalent
of 17,786 rentable square feet (the "Premises") more particularly described in
the Lease and situate on the second floor of Landlord's building known as 141
National Business Parkway, Annapolis Junction, Maryland 20701 (the "Building");
and

     WHEREAS, pursuant to that certain Assignment and Assumption of Lease dated
January 12, 2000, Original Tenant assigned all of its right, title and interest
under the Lease to Tenant; and

     WHEREAS, Landlord and Tenant mutually desire to make certain modifications
to the terms of the Second Amendment, as more particularly set forth below.

     NOW, THEREFORE, in consideration of the mutual covenants and conditions
herein contained, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Landlord and Tenant hereby amend
the Lease as follows:

1.   EFFECTIVE DATE. The Effective Date of this Amendment is May 8, 2001.

2.   AMENDMENT TO SECTION 2 OF THE SECOND AMENDMENT (FURTHER RENEWAL RIGHTS).
     The following provision is added to the end of SECTION 2 of the Second
     Amendment:

     In order to exercise its option granted herein, Tenant shall notify
     Landlord in writing of its intent to renew not less than two hundred
     seventy (270) days prior to the expiration of the Second Renewal Term.

3.   AMENDMENT TO SECTION 5 OF THE SECOND AMENDMENT (AMENDMENT OF "BASE YEAR
     TAXES") SECTION 5 of the Second Amendment is deleted and the following is
     inserted in lieu thereof:

     Commencing on the first day of the Second Renewal Term and continuing
     thereafter, "Base Year Taxes" shall mean the actual Taxes which Landlord
     incurs during the tax year commencing on July 1, 2001 and expiring on June
     30, 2002.

4.   RATIFICATION OF LEASE. All other terms, covenants and conditions of the
     Lease shall remain the same and continue in full force and effect, and
     shall be deemed unchanged, except as such terms, covenants and conditions
     of the Lease have been amended or modified by this Amendment, and this
     Amendment shall, by this reference, constitute a part of the Lease.

5.   BROKER. Tenant represents that Tenant has not dealt directly with any
     broker in connection with this Amendment and Tenant warrants that no broker
     negotiated this Amendment or is entitled to any commissions in connection
     with this Amendment.

<Page>

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment
under their respective seals as of the day and year first-above written.

WITNESS/ATTEST:                           LANDLORD:
                                          NBP 131-133-141, LLC

/s/                                       BY: /s/ Roger A. Waesche, Jr.   (SEAL)
------------------------                      ----------------------------
                                                  Roger A. Waesche, Jr.
                                                  Senior Vice President

WITNESS/ATTEST:                           TENANT:
                                          GETRONICS GOVERNMENT SOLUTIONS, L.L.C.

/s/ Carly Mauck                           BY: /s/ Alfred Willis           (SEAL)
------------------------                      ----------------------------
                                          Name:   Alfred Willis
                                          Title:  Director, Facilities & Real
                                                  Estate Services

STATE OF     MD                       COUNTY OF    HOWARD    , TO WIT:
         -----------                            -------------

         I HEREBY CERTIFY, that on this 27th day of Sept., 2001, before me,
undersigned Notary Public of said State, personally appeared Roger A. Waesche,
Jr., known to me or satisfactorily proven to be the person whose name is
subscribed to the within instrument, who acknowledged himself to be the Senior
Vice President of AIRPORT SQUARE XIV, LLC, a Maryland limited liability company,
and acknowledged that he executed the same for the purposes therein contained as
the duly authorized Senior Vice President of said limited liability company by
signing the name of the limited liability company by himself as Senior Vice
President.

         IN WITNESS WHEREOF, I have set my hand and Notarial Seal, the day and
year first above written.

[SEAL]                                    /s/ Eileen A. Cassell
                                          --------------------------------------
                                          Notary Public

My commission expires:   2/2/02

STATE OF VIRGINIA, COUNTY OF FAIRFAX, to wit:

         I HEREBY CERTIFY, that on this 25th day of September, 2001, before me,
the subscriber, a Notary Public of the State of Maryland, personally appeared
Alfred Willis, known to me or satisfactorily proven to be the Dir. of Facilities
of GETRONICS GOVERNMENT SOLUTIONS, L.L.C., a Delaware limited liability company,
and acknowledged that he/she executed the foregoing instrument for the purposes
therein contained by signing the name of the limited liability company by
himself/herself as Director.

         WITNESS my hand and Notarial Seal.

                                          /s/ Karen L. Sears
                                          --------------------------------------
                                                    Notary Public

My Commission Expires:  Sept. 30, 2002

                                       2

<Page>

                       ASSIGNMENT AND ASSUMPTION OF LEASE
                                       AND
                              CONSENT TO ASSIGNMENT

     THIS ASSIGNMENT AND ASSUMPTION OF LEASE AND CONSENT TO ASSIGNMENT (this
"Assignment") is made and entered into this 12th day of January, 2000 by and
among J.G. Van Dyke & Associates, Inc. a Maryland corporation ("Assignor"), Wang
Government Services, Inc., a Delaware corporation ("Assignee") and NBP
131-133-141, LLC a Maryland Limited Liability Company ("Landlord").

     FOR GOOD AND VALUABLE CONSIDERATION, the receipt and sufficiency of which
are acknowledged, the parties agree as follows,

     1.     DEFINITIONS. As used in this Assignment, each of the following terms
            shall have the indicated meaning:

            1.1     "Lease" means the Lease Agreement, dated December 30th, 1996
                    between Landlord and Assignor covering the Premises.

            1.2     "Premises" means the premises located at Suite 200 (17,786
                    rentable square feet), 141 National Business Park located at
                    141 National Business Parkway, Annapolis Junction, Maryland.

     2.     ASSIGNMENT AND ASSUMPTION. Effective as of January 15, 2000,
            Assignor hereby assigns, transfers, conveys and sets over to
            Assignee, its successors and permitted assigns, all of Assignor's
            right, title and interest in and to, and all of Assignor's
            obligations under the Lease. Assignee hereby accepts this Assignment
            and assumes and agrees to be bound by, and to perform all of the
            terms, covenants and conditions to be performed by the tenant under
            the Lease. Such assignment and assumption are subject to all of the
            provisions of this Assignment and the Lease, and to the conditions
            set forth in the Consent to Assignment of Landlord.

     3.     CONSENT TO ASSIGNMENT of Landlord, Subject to the following
            conditions, Landlord hereby consents to the assignment of the Lease
            by Assignor to Assignee:

            3.1     Assignor shall not be relieved of any obligation to be paid
            or per-formed by the tenant under the Lease, whether occurring
            before, on or after the date of this Assignment, but rather Assignor
            and Assignee shall be jointly and severally primarily liable for
            such payment and performance;

            3.2     This consent shall not be deemed or construed to modify,
            amend or affect the provisions of the Lease or the tenant's
            obligations under the Lease, which shall continue to apply to the
            Premises and the occupants of the Premises as if the Assignment had
            not been made;

            3.3     Assignee may not further assign the Lease or sublet the
            Premises without the prior written consent of Landlord in each
            instance, which consent shall not be unreasonably withheld,
            conditioned or delayed, except as expressly provided otherwise in
            the Lease; and

            3.4     Unless agreed otherwise in writing by the Assignor, Assignor
            shall be fully released of any and all obligations under the Lease
            at the expiration date of the original term of the Lease- or the
            current term, as the case may be.

<Page>

     4.     GENERAL PROVISIONS. A modification of or amendment to any provision
            contained in this Assignment shall be effective only if the
            modification or amendment is in writing and signed by the parties to
            this Assignment. This Assignment shall inure to the benefit of, and
            be binding on, the parties and their respective successors and
            permitted assigns. This Assignment shall be governed by, and
            construed and interpreted in accordance with, the laws (excluding
            the choice of laws, rules) of the State of Maryland, This Assignment
            may be executed in any number of duplicate originals or
            counterparts, each of which when so executed shall constitute in the
            aggregate but one and the same document.

IN WITNESS WHEREOF, Assignor, Assignee and Landlord have executed this
Assignment on the date set forth below.

                                          ASSIGNOR:

                                          J.G. Van Dyke & Associates, Inc.

                                          By /s/ Alan Rosenberg
                                            -----------------------------------

                                            Alan Rosenberg

                                          Its Executive Vice President

                                          Date     1/12/00
                                              ----------------------------------

                                          ASSIGNEE:

                                          Wang Government Services, Inc.

                                          By /s/ James J. Hogan
                                            -----------------------------------

                                            James J. Hogan

                                          Its President and CEO

                                          Date     1/12/00
                                              ----------------------------------

                                          LANDLORD:

                                          NBP 131-133-141, LLC
                                          A Maryland Limited Liability Company

                                          By /s/ Roger A. Waesche, Jr.
                                            -----------------------------------

                                          Print or Type Name of Signatory:

                                                   Roger A. Waesche, Jr.
                                          Its      Senior Vice President
                                              ----------------------------------

                                          Date          2/18/00
                                              ----------------------------------02052003 8K Exhibit 10.1

                                                 Exhibit 10.1

ACCRUE SOFTWARE, INC.

 

 

 

 

SECURED CONVERTIBLE NOTE

PURCHASE AGREEMENT

 

 

 

 

February 4, 2003

ACCRUE SOFTWARE, INC.

SECURED CONVERTIBLE NOTE

PURCHASE AGREEMENT

This Secured Convertible Note Purchase Agreement (the
"Agreement") is made as of the 4th day of February, 2003 by and between
Accrue Software, Inc., a Delaware corporation (the "Company") and each of
the purchasers listed on Exhibit A attached to this Agreement (each
a "Purchaser" and together the "Purchasers").

RECITALS

The Company desires to issue and sell, and each
Purchaser desires to purchase, a secured convertible promissory note in
substantially the form attached to this Agreement as Exhibit B (the
"Note") which shall be convertible on the terms stated therein into
equity securities of the Company. The Notes and the equity securities issuable
upon conversion thereof (and the securities issuable upon conversion of
such equity securities) are collectively referred to herein as the
"Securities."

AGREEMENT

In consideration of the mutual promises contained
herein and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties to this Agreement agree as follows:

1.Purchase and Sale of Notes.

(a)Sale and Issuance of Notes. Subject
to the terms and conditions of this Agreement, each Purchaser agrees to purchase
at the Closing (as defined below) and the Company agrees to sell and issue to
each Purchaser a Note in the principal amount set forth opposite such
Purchaser's name on Exhibit A. The purchase price of each Note shall be
equal to 100% of the principal amount of such Note. The Company's agreements
with each of the Purchasers are separate agreements, and the sales of the Notes
to each of the Purchasers are separate sales, subject to Section 6(c)
hereof.

(b)Closing; Delivery. 

(i) The purchase and sale of the Notes
shall take place at the offices of Venture Law Group, a Professional
Corporation, 2775 Sand Hill Road, Menlo Park, California, at 10:00 a.m., on
February 4th, 2003, or at such other time and place as the Company and the
Purchasers mutually agree upon, orally or in writing (which time and place are
designated as the "Initial Closing"). In the event there is more than one
closing, the term "Closing" shall apply to each such closing, unless otherwise
specified herein.

(ii)At each Closing, the Company shall deliver to each
Purchaser the Note to be purchased by such Purchaser against (1) payment of the
purchase price therefor by check payable to the Company or by wire transfer to a
bank designated by the Company, (2) delivery of counterpart signature pages to
this Agreement and the Note, and (3) delivery of a validly completed and
executed IRS Form W-8 BEN or IRS Form W-9, as applicable, establishing such
Purchaser's exemption from withholding tax, which forms are attached to this
Agreement as Exhibit C.

(iii)Until the earlier of (A) such time as the aggregate
amount of principal indebtedness evidenced by the Notes equals a total of
$810,000, or (B) the date 150 days from the date hereof, the Company may sell
additional Notes to such persons or entities as determined by the Company, or to
any Purchaser who desires to acquire additional Notes. All such sales shall be
made on the terms and conditions set forth in this Agreement. For purposes of
this Agreement, and all other agreements contemplated hereby, any additional
purchaser so acquiring Notes shall be deemed to be a "Purchaser" for purposes of
this Agreement, and any notes so acquired by such additional purchaser shall be
deemed to be "Notes" and "Securities" as applicable.

2.Stock Purchase Agreement. Each Purchaser
understands and agrees that the conversion of the Notes into equity
securities of the Company in connection with a proposed equity financing of the
Company will require such Purchaser's execution of certain agreements relating
to the purchase and sale of such securities as well as any rights relating to
such equity securities.

3.Security Interest. The indebtedness
represented by the Notes shall be secured by certain of the assets of the
Company and its direct and indirect United States subsidiaries (the
"Collateral") in accordance with the provisions of the Note. 

4.Representations and Warranties of the
Company. The Company hereby represents and warrants to, and covenants
with, the Purchasers, as follows:

(a)Organization, Good Standing and
Qualification. The Company is a corporation duly organized, validly
existing and in good standing under the laws of the State of Delaware and has
all requisite corporate power and authority to carry on its business as now
conducted and as proposed to be conducted. The Company is duly qualified to
transact business and is in good standing in each jurisdiction in which the
failure so to qualify would have a material adverse effect on its business,
financial condition or properties (a "Material Adverse Effect").

(b)Authorization. The Agreement and the
Notes, and the Common Stock issuable upon conversion of the Notes, have been
duly authorized by the Board of Directors of the Company. The Agreement and the
Notes, when executed and delivered by the Company, shall constitute valid and
legally binding obligations of the Company, enforceable against the Company in
accordance with their respective terms except as limited by applicable
bankruptcy, insolvency, reorganization, moratorium, fraudulent conveyance, and
other laws of general application affecting enforcement of creditors' rights
generally, as limited by laws relating to the availability of specific
performance, injunctive relief, or other equitable remedies.

(c)Non-Contravention. The execution and
delivery of this Agreement, the issuance and sale of the Notes (and the stock
issuable upon conversion of the Notes), to be sold by the Company under this
Agreement, the fulfillment of the terms of this Agreement and the consummation
of the transactions contemplated hereby will not (A) conflict with or constitute
a violation of, or default (with the passage of time or otherwise) under, (i)
any material bond, debenture, note or other evidence of indebtedness, or any
material lease, contract, indenture, mortgage, deed of trust, loan agreement,
joint venture or other agreement or instrument to which the Company is a party
or by which it or its property is bound, (ii) the certificate of incorporation,
by-laws or other organizational documents of the Company, or (iii) any law,
administrative regulation, ordinance or order of any court or governmental
agency, arbitration panel or authority binding as of the Closing upon the
Company or its property which is reasonably likely to result in a Material
Adverse Effect. No consent, approval, authorization or other order of, or
registration, qualification or filing with, any regulatory body, administrative
agency, or other governmental body in the United States is required for the
execution and delivery of this Agreement and the valid issuance and sale of the
Notes to be sold pursuant to this Agreement, other than such as have been made
or obtained, and except for any securities filings required to be made under
federal or state securities laws or the requirements of the National Association
of Securities Dealers, Inc. and which may be required to be made after the
Closing. For purposes of clauses (i) and (iii) of this paragraph (c), "the
Company" shall be deemed to include all direct and indirect United States
subsidiaries of the Company.

(d)Capitalization.
The capitalization of the Company is described in the Company's filings (the
"SEC Documents") with the Securities and Exchange Commission (the "SEC")
as of the dates set forth therein. The Company has not issued any capital stock
since September 21, 2000, other than pursuant to employee benefit plans
disclosed in the Company's SEC Documents. Except as set forth in or contemplated
by the Company's SEC Documents, there are no outstanding rights (including,
without limitation, preemptive rights), warrants or options to acquire, or
instruments convertible into or exchangeable for, any unissued shares of capital
stock or other equity interest in the Company, or any contract, commitment,
agreement, understanding or arrangement of any kind to which the Company is a
party and relating to the issuance or sale of any capital stock of the Company,
any such convertible or exchangeable securities or any such rights, warrants or
options. No preemptive right, co-sale right, registration right or limitation or
restriction on granting the registration rights set forth in Section 10 hereof,
right of first refusal or other similar right exists (or has not been waived)
with respect to the issuance and sale of the Notes. 

(e)Legal Proceedings. There is no legal
or governmental proceeding pending, or, to the knowledge of the Company,
threatened, to which the Company or any subsidiary of the Company is a party or
of which the business or property of the Company or any subsidiary of the
Company is subject that is not disclosed in the Company's SEC Documents, which
is reasonably likely to result in a Material Adverse Effect.

(f)No Violations. The Company is not in
violation of its certificate of incorporation, bylaws or other organizational
document, or, except as otherwise described in the SEC Documents, violation of
any law, administrative regulation, ordinance or order of any court or
governmental agency, arbitration panel or authority applicable to the Company,
which violation, individually or in the aggregate, has had, or would be
reasonably likely to have, a Material Adverse Effect, and the Company is not in
default (and there exists no condition which, with the passage of time or
otherwise, would constitute a material default) in the performance of any bond,
debenture, note or any other evidence of indebtedness in any indenture,
mortgage, deed of trust or any other agreement or instrument to which the
Company is a party or by which the Company is bound or by which the property of
the Company is bound, which has had, or would be reasonably likely to have,
individually or in the aggregate, a Material Adverse Effect. For purposes of
this paragraph (f), "the Company" shall be deemed to include all direct and
indirect subsidiaries of the Company.

(g)Reporting Status. The Company has
filed all reports, schedules, registration statements, forms and other documents
required to be filed by the Company with the SEC, including those that the
Company may file with the SEC after the date of this Agreement until the Closing
("SEC Filings") required to be filed as of the date hereof. The SEC
Filings (i) were or will be filed on a timely basis, (ii) at the time filed,
were or will be prepared in compliance in all material respects with the
applicable requirements of the Securities Act and the Exchange Act, as the case
may be, and the rules and regulations of the SEC thereunder applicable to such
SEC Filings, and (iii) did not or will not at the time they were or are filed
contain any untrue statement of a material fact or omit to state a material fact
required to be stated in such SEC Filings or necessary in order to make the
statements in such SEC Filings, in the light of the circumstances under which
they were made, not misleading.

(h)Collateral.The Company and each of
its direct and indirect United States subsidiaries has good title to the
Collateral, free of any Liens except Permitted Liens. This Agreement creates in
favor of the Purchasers a valid security interest in all of the Company's right,
title and interest in and to the Collateral, and upon the filing of appropriate
UCC financing statements with the Delaware Secretary of State, the Purchasers'
security interest hereunder and under the Notes will be duly perfected in all of
the Collateral in which a security interest may be perfected by such filing.

5.Representations and Warranties of the
Purchasers. Each Purchaser hereby represents and warrants to the Company
that:

(a)Authorization. Such Purchaser has full
power and authority to enter into this Agreement. This Agreement, when executed
and delivered by the Purchaser, will constitute a valid and legally binding
obligation of the Purchaser, enforceable in accordance with its terms, except as
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
fraudulent conveyance, and any other laws of general application affecting
enforcement of creditors' rights generally, and as limited by laws relating to
the availability of a specific performance, injunctive relief, or other
equitable remedies. 

(b)Purchase Entirely for Own Account. This
Agreement is made with the Purchaser in reliance upon the Purchaser's
representation to the Company, which by the Purchaser's execution of this
Agreement, the Purchaser hereby confirms, that the Securities to be acquired by
the Purchaser will be acquired for investment for the Purchaser's own account,
not as a nominee or agent, and not with a view to the resale or distribution of
any part thereof, and that the Purchaser has no present intention of selling,
granting any participation in, or otherwise distributing the same. By executing
this Agreement, the Purchaser further represents that the Purchaser does not
presently have any contract, undertaking, agreement or arrangement with any
person to sell, transfer or grant participations to such person or to any third
person, with respect to any of the Securities. The Purchaser has not been formed
for the specific purpose of acquiring any of the Securities.

(c)Knowledge. The Purchaser is aware of the
Company's business affairs and financial condition and has acquired sufficient
information about the Company to reach an informed and knowledgeable decision to
acquire the Securities.

(d)Restricted Securities. The Purchaser
understands that the Securities have not been, and will not be, registered under
the Securities Act of 1933, as amended (the "Securities Act"), by reason of a
specific exemption from the registration provisions of the Securities Act which
depends upon, among other things, the bona fide nature of the investment intent
and the accuracy of the Purchaser's representations as expressed herein. The
Purchaser understands that the Securities are "restricted securities" under
applicable U.S. federal and state securities laws and that, pursuant to these
laws, the Purchaser must hold the Securities indefinitely unless
they are registered with the Securities and Exchange Commission and qualified by
state authorities, or an exemption from such registration and qualification
requirements is available. The Purchaser acknowledges that, except as expressly
set forth herein, the Company has no obligation to register or qualify the
Securities for resale. The Purchaser further acknowledges that if an exemption
from registration or qualification is available, it may be conditioned on
various requirements including, but not limited to, the time and manner of sale,
the holding period for the Securities, and on requirements relating to the
Company which are outside of the Purchaser's control, and which the Company is
under no obligation and may not be able to satisfy.

(e)Not a Listed Security. The Purchaser
understands that the Company's stock is not listed on a national securities
exchange, and that the Company has made no assurances that the Company's stock
will ever be traded on a national securities exchange.

(f)Legends. The Purchaser understands that
the Securities, and any securities issued in respect thereof or exchange
therefor, may bear one or all of the following legends:

(i)"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE
NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND HAVE BEEN ACQUIRED FOR
INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE SALE OR
DISTRIBUTION THEREOF. EXCEPT IN COMPLIANCE WITH RULE 144 PROMULGATED UNDER THE
SECURITIES ACT OF 1933 OR ANY OTHER AVAILABLE EXEMPTION FROM REGISTRATION, NO
SUCH SALE OR DISTRIBUTION MAY BE EFFECTED WITHOUT AN EFFECTIVE REGISTRATION
STATEMENT RELATED THERETO OR AN OPINION OF COUNSEL IN A FORM SATISFACTORY TO THE
COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OF
1933."

(ii) THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE HELD BY A PERSON
WHO MAY BE DEEMED TO BE AN AFFILIATE OF THE ISSUER FOR PURPOSES OF RULE 144
PROMULGATED UNDER THE ACT.

(iii)Any legend required by the Blue Sky laws of any state to the extent
such laws are applicable to the shares represented by the certificate so
legended.

(g)Accredited Investor. The Purchaser is an
accredited investor as defined in Rule 501(a) of Regulation D promulgated under
the Securities Act.

(h)Foreign Investors. If a Purchaser
is not a United States person (as defined by Rule 902(k) under the Securities
Act), such Purchaser hereby represents that it has satisfied itself as to the
full observance of the laws of its jurisdiction in connection with any
invitation to subscribe for the Securities or any use of this Agreement,
including (i) the legal requirements within its jurisdiction for the purchase of
the Securities, (ii) any foreign exchange restrictions applicable to such
purchase, (iii) any governmental or other consents that may need to be obtained
and (iv) the income tax and other tax consequences, if any, that may be relevant
to the purchase, holding, redemption, sale or transfer of the Securities. Such
Purchaser's subscription and payment for, and his or her continued beneficial
ownership of the Securities, will not violate any applicable securities or other
laws of Purchaser's jurisdiction. Such Purchaser also hereby represents that
such Purchaser is not a "10-percent shareholder" as defined in Section 871(h) of
the Internal Revenue Code of 1986, as amended.

6. Conditions of the Purchasers' Obligations at
Closing. The obligations of each Purchaser to the Company under this
Agreement are subject to the fulfillment, on or before the Closing, of each of
the following conditions, unless otherwise waived:

(a)Representations and Warranties. The
representations and warranties of the Company contained in Section 4 shall
be true on and as of the Closing with the same effect as though such
representations and warranties had been made on and as of the date of the
Closing.

(b)Qualifications. All authorizations,
approvals or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the
lawful issuance and sale of the Securities pursuant to this Agreement shall be
obtained and effective as of the Closing.

(c)Minimum Amount. A minimum of $500,000
aggregate principal amount of the Notes shall be purchased by the Purchasers at
the initial Closing under this Agreement.

7.Conditions of the Company's Obligations at
Closing. The obligations of the Company to each Purchaser under this
Agreement are subject to the fulfillment, on or before the Closing, of each of
the following conditions, unless otherwise waived:

(a)Representations and Warranties. The
representations and warranties of each Purchaser contained in Section 5
shall be true on and as of the Closing with the same effect as though such
representations and warranties had been made on and as of the Closing.

(b)Qualifications. All authorizations,
approvals or permits, if any, of any governmental authority or regulatory body
of the United States or of any state that are required in connection with the
lawful issuance and sale of the Securities pursuant to this Agreement shall be
obtained and effective as of the Closing. 

(c)Delivery of Form W-8 BEN or Form W-9.
Each Purchaser shall have completed and delivered to the Company a validly
executed IRS Form W-8 BEN or IRS Form W-9, as applicable, establishing such
Purchaser's exemption from withholding tax.

8.Covenants of the Company. 

(a)Negative Covenants. Until the earlier to occur of the
conversion or repayment in full of the Notes, the Company shall not do any of
the following without the prior written consent of Purchasers holding a majority
of the outstanding principal amount of the Notes, which consent will not be
unreasonably withheld or delayed:

(i)Secured Indebtedness. Create, incur, assume, or be
liable for any secured Indebtedness which is senior in right of payment to the
Notes other than Permitted Indebtedness or Permitted Senior Indebtedness.

(ii)Liens. Create, incur, or allow any Lien on any of its
property, except for Permitted Liens.

(iii)Dividends and Distributions. Pay any dividends or make
any distribution or payment other than dividends payable solely in the Company's
Common Stock or redeem, retire or purchase any capital stock except for
repurchases of stock from former employees, consultants, or directors of Company
under the terms of applicable repurchase agreements, provided that no Event of
Default (as defined in the Notes) has occurred, is continuing or would exist
after giving effect to the repurchases. 

(b)Affirmative Covenants.

(i)Registration of Intellectual Property.
The Company shall, within a period of thirty (30) days following the initial
Closing, file with the U.S. Copyright Office (the "CO") registrations
with respect to all material copyrights of the Company, provided that the legal,
registration and other related costs and expenses associated with such
registrations and filings do not exceed $2,000 in the aggregate. With respect to
any registrations so filed, the Company shall also concurrently make such
filings as are required such that the Purchasers have a first priority security
interest in such copyrights (subject to Permitted Liens created to secure Senior
Permitted Indebtedness). At the request of the Purchasers holding a majority of
the outstanding principal amount of the Notes, the Company shall also take
commercially reasonable actions to register any additional copyrights developed
or acquired hereafter with the CO.

(ii)Perfection of Security Interest. The
Company shall file any amendments to UCC-1 financing statements or filings with
the CO and PTO, and shall make new filings, as are required in order to perfect
the Purchasers' security interest in the Collateral (including Collateral
developed or acquired hereafter), including without limitation as required upon
the reorganization of the Company under the laws of a jurisdiction other than
the State of Delaware.

(iii)Preservation of Collateral. The
Company shall keep all of its inventory in good and marketable condition, free
from material defects. Returns and allowances between the Company and its
account debtors will follow the Company's customary practices in the ordinary
course of business. 

(iv)Additional Closings. The Company shall
use reasonable efforts to sell the remaining amount of Notes authorized for sale
hereunder ($810,000 less the principal amount of Notes sold in the Initial
Closing) within the time period provided by Section 1(b) hereof (provided,
however, that the Company shall not be required to sell Notes in any transaction
that would not comply with applicable law). 
(c)Certain Definitions. As used in this
Agreement, the following capitalized terms have the following
meanings:

(i)"Indebtedness" shall mean indebtedness owed by
the Company to banks, commercial finance lenders, insurance companies, leasing
or equipment financing institutions, lending institutions or any other parties,
which is for money borrowed or the deferred purchase price or leasing of
equipment, whether or not secured.

(ii)"Lien" shall mean, with respect to any asset
or property of the Company, any security interest, mortgage, pledge, lien,
claim, charge or other encumbrance in, of, or on such property or the income
therefrom, including, without limitation, the interest of a vendor or lessor
under a conditional sale agreement, capital lease or other title retention
agreement, or any agreement to provide any of the foregoing, and the filing of
any financing statement or similar instrument under the Uniform Commercial Code
or comparable law of any jurisdiction.

(iii)"Permitted Indebtedness" shall mean: (i)
Indebtedness to trade creditors incurred in the ordinary course of business;
(ii) Indebtedness secured by Permitted Liens; (v) Indebtedness of Company to any
of its subsidiaries; (iii) Indebtedness which is first applied to fully pay all
amounts due under the Notes; and (iv) extensions, refinancings, modifications,
amendments and restatements of any items of Permitted Indebtedness set forth
above, provided that the principal amount thereof is not increased or the terms
thereof are not modified to impose more burdensome terms upon Company, as the
case may be.

(iv)"Permitted Senior Indebtedness" shall mean Indebtedness
secured by the Permitted Liens described in subsections (iv), (v), (x) and (xii)
of the definition of Permitted Liens.

(v)"Permitted Liens" means (i) Liens for
taxes not yet delinquent or Liens for taxes being contested in good faith and by
appropriate proceedings for which adequate reserves have been established;
(ii) Liens in respect of property or assets imposed by law which were
incurred in the ordinary course of business, such as carriers', warehousemen's,
materialmen's and mechanics' Liens and other similar Liens arising in the
ordinary course of business which are not delinquent or remain payable without
penalty or which are being contested in good faith and by appropriate
proceedings; (iii) Liens incurred or deposits made in the ordinary course
of business in connection with workers' compensation, unemployment insurance and
other types of social security, statutory obligations, contract bids, government
contracts, performance and return of money bonds and other similar obligations,
incurred in the ordinary course of business, whether pursuant to statutory
requirements, common law or consensual arrangements; (iv) Liens securing
obligations under a capital lease if such Liens do not extend to property other
than the property leased under such capital lease; (v) Liens upon any
equipment or other property acquired or held by Company or any of its
subsidiaries to secure the purchase price of such equipment or other property or
Indebtedness incurred solely for the purpose of financing the acquisition of
such equipment or other property, so long as such Lien extends only to the
equipment or other property financed, and any accessions, replacements,
substitutions and proceeds (including insurance proceeds) thereof or thereto;
(vi) Liens in favor of customs and revenue authorities arising as a matter
of law to secure payments of customs duties in connection with the importation
of goods; (vii) Liens which constitute rights of setoff of a customary
nature or banker's liens, whether arising by law or by contract;
(viii) Leases or subleases and licenses or sublicenses granted in the
ordinary course of Company's business; (ix) Liens securing Indebtedness which is
first applied to fully pay all amounts due under the Notes; (x) Liens securing
indebtedness of a Person (other than an existing subsidiary of the Company)
existing at the time such Person becomes a subsidiary of the Company or is
merged with or into the Company or a subsidiary of the Company or Liens securing
Indebtedness incurred in connection with an acquisition, merger or
consolidation; provided, that such Liens were in existence prior to the
date of such acquisition, merger or consolidation, were not incurred in
anticipation thereof, and do not extend to any other assets; (xi) Liens which
are expressly subordinate to the Notes; and (xii) Liens upon property or assets
purchased or otherwise acquired for consideration after the date hereof that do
not extend to any other property or assets except those purchased or otherwise
acquired; provided that, with respect to clauses (x)(but only if the primary
purpose of such acquisition, merger or consolidation is capital raising) and
(xii) above, the Company's consolidated net tangible assets are equal to or
greater than 250% of the Company's aggregate secured indebtedness (including the
Notes and the proposed secured indebtedness to be secured by such Liens).

(vi)"Person" means any corporation,
individual, limited liability company, joint stock company, joint venture,
partnership, unincorporated association, governmental regulatory entity,
country, state or political subdivision thereof, trust, municipality or other
entity.

9. Covenant of the Holders.

(a) Further Assurances. At any time and from time to time,
upon the written request of the Company and at the Company's expense, the
Holders will promptly and duly authenticate and deliver such instruments and
documents and take such further action as the Company may reasonably request
for the purpose of enabling the Company to incur Permitted Indebtedness and
Senior Permitted Indebtedness and otherwise preserving such rights under this
Agreement including, without limitation, filing any financing statements or
amendments thereto under the UCC as in effect with respect to Permitted
Liens.

10. Registration Rights.

10.1Definitions. As used in this Section 10:

(a)The terms "register," "registered," and
"registration" refer to a registration effected by preparing and filing a
registration statement in compliance with the Securities Act of 1933, as amended
(the "Securities Act"), and the subsequent declaration or ordering of the
effectiveness of such registration statement;

(b)The term "Registrable Securities" means: (i) the
shares of the Company's Common Stock issued or issuable upon conversion of the
Notes (including Common Stock issued or issuable upon conversion of Preferred
Stock which is issued upon conversion of the Notes); and (ii) any other shares
of Common Stock of the Purchaser issued as (or issuable upon the conversion or
exercise of any warrant, right or other security which is issued as) a dividend
or other distribution with respect to, or in exchange for or in replacement of,
the Securities, excluding in all cases, however, any Registrable Securities sold
by a person in a transaction in which such person's rights under this Agreement
and the Note are not assigned; provided, however, that Common
Stock or other securities shall only be treated as Registrable Securities if and
so long as they have not been (A) sold to or through a broker or dealer or
underwriter in a public distribution or a public securities transaction, or
(B) sold in a transaction exempt from the registration and prospectus
delivery requirements of the Securities Act under Section 4(1) thereof so
that all transfer restrictions, and restrictive legends with respect thereto, if
any, are removed upon the consummation of such sale;

(c)The number of shares of "Registrable Securities then
outstanding" shall mean the number of shares of Common Stock outstanding
which are, and the number of shares of Common Stock issuable pursuant to the
then exercisable or convertible securities which are, Registrable
Securities;

(d)The term "Holder" means any holder of outstanding
Registrable Securities who, subject to the limitations set forth in Section 10.7
below, acquired such Registrable Securities in a transaction or series of
transactions not involving any registered public offering; and

(e)The term "Form S-3" means such form under the
Securities Act as in effect on the date hereof or any registration form under
the Securities Act subsequently adopted by the Securities and Exchange
Commission ("SEC") which permits inclusion or incorporation of
substantial information by reference to other documents filed by the Purchaser
with the SEC.

10.2Company Registration. If (but without any obligation to
do so) the Company proposes to register (including for this purpose a
registration effected by the Company for stockholders other than the Holders)
any of its stock under the Securities Act in connection with the public offering
of such securities solely for cash (other than a registration relating solely to
the sale of securities to participants in a Company stock plan or a transaction
covered by Rule 145 under the Securities Act, a registration in which the
only stock being registered is Common Stock issuable upon conversion of debt
securities which are also being registered), the Company shall, at such time,
promptly give each Holder written notice of such registration. Upon the written
request of each Holder given within 20 days after mailing of such notice by the
Company in accordance with Section 11(e), the Company shall, subject to the
provisions of Section 10.6, cause to be registered under the Securities Act
all of the Registrable Securities that each such Holder has requested to be
registered.

10.3Form S-3 Registration. In case the
Company shall receive from any Holder or Holders of not less than fifty percent
(50%) of the Registrable Securities then outstanding a written request or
requests that the Company effect a registration on Form S-3 and any related
qualification or compliance with respect to all or a part of the Registrable
Securities owned by such Holder or Holders, the Company will:

(a)promptly give written notice of the proposed registration, and any
related qualification or compliance, to all other Holders;

(b)as soon as practicable, effect such registration and all such
qualifications and compliances as may be so requested and as would permit or
facilitate the sale and distribution of all or such portion of such Holder's or
Holders' Registrable Securities as are specified in such request, together with
all or such portion of the Registrable Securities of any other Holder or Holders
joining in such request as are specified in a written request given within 15
days after receipt of such written notice from the Company; provided, however,
that the Company shall not be obligated to effect any such registration,
qualification or compliance, pursuant to this Section 10.3: (1) if
Form S-3 is not available for such offering by the Holders; (2) if the
Company shall furnish to the Holders a certificate signed by the President of
the Company stating that in the good faith judgment of the Board of Directors of
the Company, it would be seriously detrimental to the Company and its
shareholders for such Form S-3 Registration to be effected at such time, in
which event the Company shall have the right to defer the filing of the
Form S-3 registration statement for a period of not more than 90 days after
receipt of the request of the Holder or Holders under this Section 10.3;
provided, however, that the Company shall not utilize this right more than once
in any twelve month period; (3) if the Company has, within the
12 month period preceding the date of such request, already effected two
registrations on Form S-3 for the Holders; or (4) in any particular
jurisdiction in which the Company would be required to qualify to do business or
to execute a general consent to service of process in effecting such
registration, qualification or compliance; and

(c)Subject to the foregoing, the Company shall file a registration
statement on Form S-3 covering the Registrable Securities and other securities
so requested to be registered promptly after receipt of the request or requests
of the Holders. 

10.4Obligations of the Company. Whenever
required under this Section 10 to effect the registration of any
Registrable Securities, the Company shall, as expeditiously as reasonably
possible:

(a)Prepare and file with the SEC a registration statement with respect to
such Registrable Securities and use its commercially reasonable efforts to cause
such registration statement to become effective, and, upon the request of the
Holders of a majority of the Registrable Securities registered thereunder, keep
such registration statement effective for up to 90 days;

(b)Prepare and file with the SEC such amendments and supplements to such
registration statement and the prospectus used in connection with such
registration statement as may be necessary to comply with the provisions of the
Act with respect to the disposition of all securities covered by such
registration statement;

(c)Furnish to the Holders such numbers of copies of a prospectus,
including a preliminary prospectus, in conformity with the requirements of the
Act, and such other documents as they may reasonably request in order to
facilitate the disposition of Registrable Securities owned by them;

(d)Cause all such Registrable Securities registered pursuant hereunder to
be listed on each securities exchange on which similar securities issued by the
Company are then listed.

10.5Furnish Information. It shall be a condition
precedent to the obligations of the Company to take any action pursuant to this
Section 10 with respect to the Registrable Securities of any selling Holder
that such Holder shall furnish to the Company such information regarding itself,
the Registrable Securities held by it, and the intended method of disposition of
such securities as shall be required to effect the registration of such Holder's
Registrable Securities. 

10.6Expenses of Registration.

(a)Company Registration. All expenses
other than underwriting discounts and commissions incurred in connection with
registrations, filings or qualifications of Registrable Securities pursuant to
Section 10.2 for each Holder (which right may be assigned as provided in
Section 10.10), including (without limitation) all registration, filing,
and qualification fees, printers' and accounting fees, fees and disbursements of
counsel for the Company shall be borne by the Company. The Company shall not be
required to pay the fees or expenses of separate counsel to the selling
Holders.

(b)Registration on Form S-3. All expenses
incurred in connection with a registration requested pursuant to
Section 10.3, including (without limitation) all registration, filing,
qualification, printer and accounting fees shall be borne by the Company.
The Company shall not be required to pay any underwriters' or brokers' fees,
discounts or commissions relating to the Registrable Securities, or the fees or
expenses of separate counsel to the selling Holders.

10.7Underwriting Requirements. In connection with any
offering involving an underwriting of shares of the Company's capital stock, the
Company shall not be required under Section 10.2 to include any of the
Holders' securities in such underwriting unless they accept the terms of the
underwriting as agreed upon between the Company and the underwriters selected by
it (or by other persons entitled to select the underwriters), and then only in
such quantity as the underwriters determine in their sole discretion will not
jeopardize the success of the offering by the Company. If the total amount of
securities, including Registrable Securities, requested by stockholders to be
included in such offering exceeds the amount of securities sold other than by
the Company that the underwriters determine in their sole discretion is
compatible with the success of the offering, then the Company shall be required
to include in the offering only that number of such securities, including
Registrable Securities, which the underwriters determine in their sole
discretion will not jeopardize the success of the offering (the securities so
included to be apportioned pro rata among the selling stockholders according to
the total amount of securities entitled to be included therein owned by each
selling stockholder or in such other proportions as shall mutually be agreed to
by such selling stockholders) but in no event shall the amount of securities of
the selling Holders included in the offering be reduced below 20% of the total
amount of securities included in such offering. For purposes of the preceding
parenthetical concerning apportionment, for any selling stockholder which is a
holder of Registrable Securities and which is a partnership or corporation, the
partners, retired partners and stockholders of such holder, or the estates and
family members of any such partners and retired partners and any trusts for the
benefit of any of the foregoing persons shall be deemed to be a single
"selling stockholder," and any pro-rata reduction with respect to such
"selling stockholder" shall be based upon the aggregate amount of shares
carrying registration rights owned by all entities and individuals included in
such "selling stockholder," as defined in this sentence.

10.8Indemnification. In the event any Registrable
Securities are included in a registration statement under this
Section 10:

(a)To the extent permitted by law, the Company will indemnify
and hold harmless each Holder and each person, if any, who controls such Holder
within the meaning of the Securities Act or the Securities Exchange Act of 1934,
as amended (the "Exchange Act"), against any losses, claims, damages, or
liabilities (joint or several) to which any of the foregoing persons may become
subject, under the Securities Act, the Exchange Act or other federal or state
law, insofar as such losses, claims, damages, or liabilities (or actions in
respect thereof) arise out of or are based upon any of the following statements,
omissions or violations (collectively a "Violation"): (i) any untrue
statement or alleged untrue statement of a material fact contained in such
registration statement, including any final prospectus contained therein or any
amendments or supplements thereto, (ii) the omission or alleged omission to
state therein a material fact required to be stated therein, or necessary to
make the statements therein not misleading, or (iii) any violation or
alleged violation by the Company of the Securities Act, the Exchange Act,
any state securities law or any rule or regulation promulgated under the
Securities Act, the Exchange Act or any state securities law; and the Company
will pay, as incurred, any legal or other expenses reasonably incurred by any
person intended to be indemnified pursuant to this subsection 10.8(a), in
connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity agreement contained
in this subsection 10.8(a) shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability, or action if such settlement is
effected without the consent of the Company, which consent shall not be
unreasonably withheld, nor shall the Company be liable in any such case for any
such loss, claim, damage, liability, or action to the extent that it arises out
of or is based upon a Violation which occurs in reliance upon and in
conformity with written information furnished expressly for use in connection
with such registration by such Holder or controlling person;

(b)To the extent permitted by law, each selling Holder will
indemnify and hold harmless the Company, each of its directors, each of its
officers who has signed the registration statement, each person, if any, who
controls the Company within the meaning of the Securities Act or the Exchange
Act, any other Holder selling securities in such registration statement and any
controlling person of any such other Holder, against any losses, claims,
damages, or liabilities (joint or several) to which any of the foregoing persons
may become subject, under the Securities Act, the Exchange Act or other federal
or state law, insofar as such losses, claims, damages, or liabilities (or
actions in respect thereof) arise out of or are based upon any Violation, in
each case to the extent (and only to the extent) that such Violation occurs in
reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such
Holder will pay, as incurred, any legal or other expenses reasonably incurred by
any person intended to be indemnified pursuant to this subsection 10.8(b),
in connection with investigating or defending any such loss, claim, damage,
liability, or action; provided, however, that the indemnity agreement contained
in this subsection 10.8(b) shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably
withheld; provided that in no event shall any indemnity under this
subsection 10.8(b) exceed the gross proceeds from the offering received by
such Holder;

(c)Promptly after receipt by an indemnified party under this
Section 10.8 of notice of the commencement of any action (including any
governmental action), such indemnified party will, if a claim in respect thereof
is to be made against any indemnifying party under this Section 10.8,
deliver to the indemnifying party a written notice of the commencement thereof
and the indemnifying party shall have the right to participate in, and, to the
extent the indemnifying party so desires, jointly with any other indemnifying
party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however, that an indemnified party shall
have the right to retain its own counsel, with the fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend such
action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section 10.8, but the omission so to
deliver written notice to the indemnifying party will not relieve it of any
liability that it may have to any indemnified party otherwise than under this
Section 10.8;

(d)If the indemnification provided in this Section 10.8 is
held by a court of competent jurisdiction to be unavailable to an indemnified
party with respect to any loss, liability, claim, damage or expense referred to
therein, then the indemnifying party, in lieu of indemnifying such indemnified
party hereunder, shall contribute to the amount paid or payable by such
indemnified party as a result of such loss, liability, claim, damage or expense
in such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and of the indemnified party on the other in
connection with the statements or omissions that resulted in such loss,
liability, claim, damage or expense as well as any other relevant equitable
considerations. The relative fault of the indemnifying party and of the
indemnified party shall be determined by reference to, among other things,
whether the untrue or alleged untrue statement of a material fact or the
omission to state a material fact relates to information supplied by the
indemnifying party or by the indemnified party and the parties' relative intent,
knowledge, access to information, and opportunity to correct or prevent such
statement or omission; and

(e)The obligations of the Company and Holders under this
Section 10.8 shall survive the completion of any offering of Registrable
Securities in a registration statement under this Section 10, and
otherwise.

10.9Reports Under Securities Exchange Act of 1934.
With a view to making available to the Holders the benefits of Rule 144
promulgated under the Securities Act ("Rule 144") and any other rule
or regulation of the SEC that may at any time permit a Holder to sell securities
of the Company to the public without registration, the Company agrees to use its
best efforts to:

(a)make and keep public information available, as those terms
are understood and defined in Rule 144, at all times;

(b)file with the SEC in a timely manner all reports and other
documents required of the Company under the Securities Act and the Exchange Act;
and

(c)furnish to any Holder, so long as the Holder owns any
Registrable Securities, forthwith upon request (i) a written statement by
the Company that it has complied with the reporting requirements of Rule 144,
the Securities Act and the Exchange Act, (ii) a copy of the most recent
annual or quarterly report of the Company and such other reports and documents
so filed by the Company, and (iii) such other information as may be
reasonably requested in availing any Holder of any rule or regulation of the SEC
which permits the selling of any such securities without registration.

10.10Assignment of Registration Rights. The rights
to cause the Company to register Registrable Securities pursuant to this
Section 10 may only be assigned by a Holder to a transferee or assignee of
all of such Holder's interest in Holder's Note, and shall be subject to the
restrictions on transfers contained in such Note. Such assignment shall be
effective only if immediately following such transfer the further disposition of
such securities by the transferee or assignee is restricted under the Securities
Act. 

10.11Termination of Registration
Rights. The rights granted under this Section 10 shall terminate upon
the earlier of (a) five (5) years following the date of this Agreement, or
(b) with respect to any Holder, at such time as such Holder may sell all of
such Holder's Registrable Securities in any one three month period pursuant to
Rule 144 or such successor rule as may be adopted.

11.Miscellaneous.

(a)Successors and Assigns. The terms
and conditions of this Agreement shall inure to the benefit of and be binding
upon the respective successors and assigns of the parties. Nothing in this
Agreement, express or implied, is intended to confer upon any party other than
the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

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

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

(d)Titles and Subtitles. The titles and
subtitles used in this Agreement are used for convenience only and are not
to be considered in construing or interpreting this Agreement.

(e)Notices. Any notice required or
permitted by this Agreement shall be in writing and shall be deemed sufficient
upon receipt, when delivered personally or by courier, overnight delivery
service or confirmed facsimile, or 48 hours after being deposited in the U.S.
mail as certified or registered mail with postage prepaid, if such notice is
addressed to the party to be notified at such party's address or facsimile
number as set forth below or as subsequently modified by written
notice.

(f)Finder's Fee. Each party represents that
it neither is nor will be obligated for any finder's fee or commission in
connection with this transaction. Each Purchaser agrees to indemnify and to hold
harmless the Company from any liability for any commission or compensation in
the nature of a finder's fee (and the costs and expenses of defending
against such liability or asserted liability) for which each Purchaser or
any of its officers, employees, or representatives is responsible. The Company
agrees to indemnify and hold harmless each Purchaser from any liability for any
commission or compensation in the nature of a finder's fee (and the costs
and expenses of defending against such liability or asserted liability) for
which the Company or any of its officers, employees or representatives
is responsible.

(g)Amendments and Waivers. Any term of this
Agreement may only be amended or waived with the written consent of the Company
and the holders of at least a majority of the outstanding principal amount of
the Notes (provided that amendment of Section 10 hereof shall instead require
the written consent of the holders of at least of majority of the Registrable
Securities then outstanding). Any amendment or waiver effected in accordance
with this Section 11(g) shall be binding upon each Purchaser and each transferee
of the Securities, each future holder of all such Securities, and the
Company.

(h)Severability. If one or more provisions
of this Agreement are held to be unenforceable under applicable law, the
parties agree to renegotiate such provision in good faith, in order to maintain
the economic position enjoyed by each party as close as possible to that under
the provision rendered unenforceable. In the event that the parties cannot reach
a mutually agreeable and enforceable replacement for such provision, then
(i) such provision shall be excluded from this Agreement, (ii) the
balance of the Agreement shall be interpreted as if such provision were so
excluded and (iii) the balance of the Agreement shall be enforceable in
accordance with its terms.

(i)Entire Agreement. This Agreement, and
the documents referred to herein constitute the entire agreement between the
parties hereto pertaining to the subject matter hereof, and any and all other
written or oral agreements existing between the parties hereto are expressly
canceled.

(j)Exculpation Among Purchasers. Each
Purchaser acknowledges that it is not relying upon any person, firm or
corporation, other than the Company and its officers and directors, in making
its investment or decision to invest in the Company. Each Purchaser agrees that
no Purchaser nor the respective controlling persons, officers, directors,
partners, agents, or employees of any Purchaser shall be liable for any action
heretofore or hereafter taken or omitted to be taken by any of them in
connection with the Securities.

(k)Advice of Legal Counsel. Each party
acknowledges and represents that, in executing this Agreement, it has had the
opportunity to seek advice as to its legal rights from legal counsel and that
the person signing on its behalf has read and understood all of the terms and
provisions of this Agreement. This Agreement shall not be construed against any
party by reason of the drafting or preparation thereof.

(l)Fees and Expenses. The Company shall pay
promptly after the Closing the fees and expenses of Fenwick & West, the
counsel for the Purchasers, incurred in connection with performing due diligence
with respect to this Agreement, the documents referred to herein and the
transactions contemplated hereby and thereby, provided such fees and expenses do
not exceed, in the aggregate, $15,000.

(m)Corporate Securities Law. THE SALE OF
THE SECURITIES WHICH ARE THE SUBJECT OF THIS AGREEMENT HAS NOT BEEN QUALIFIED
WITH THE COMMISSIONER OF CORPORATIONS OF THE STATE OF CALIFORNIA AND THE
ISSUANCE OF THE SECURITIES OR THE PAYMENT OR RECEIPT OF ANY PART OF THE
CONSIDERATION THEREFOR PRIOR TO THE QUALIFICATION IS UNLAWFUL, UNLESS THE SALE
OF SECURITIES IS EXEMPT FROM THE QUALIFICATION BY SECTION 25100, 25102 OR
25105 OF THE CALIFORNIA CORPORATIONS CODE. THE RIGHTS OF ALL PARTIES TO THIS
AGREEMENT ARE EXPRESSLY CONDITIONED UPON THE QUALIFICATION BEING OBTAINED UNLESS
THE SALE IS SO EXEMPT.

[Signature Pages Follow]

The parties have executed this Secured Convertible Note
Purchase Agreement as of the date first written above.
COMPANY:

ACCRUE SOFTWARE, INC.

 

By: /s/ Jonathan D. Becher
President and CEO

Name: Jonathan D. Becher

Address: 48634 Milmont Drive
Fremont, CA 94538-7353

Facsimile Number: (510) 580-4501

 

PURCHASERS:

 

RS Orphan Fund, LP

By: /s/ Paul H. Stephens

Name: Paul H. Stephens

Title: Investment Advisory

General Partner
Address: 388 Market St.

San Francisco, CA 94111

Facsimile Number: 

 

PURCHASERS:

RS Orphan Offshore Fund, LP

By: /s/ Paul H. Stephens

Name: Paul H. Stephens

Title: Investment Advisory

 General Partner
Address: 388 Market St.

San Francisco, CA 94111

Facsimile Number: 

 

Sterling Payot Capital, LP

By: /s/ Robert M. Smelick

Name: Robert M. Smelick

Title: General Partner
Address: 65 Cloudview Rd.

Sausalito, CA 94956

Facsimile Number: 

 

Robert M. Smelick

/s/ Robert M. Smelick

Robert M. Smelick

Address: 65 Cloudview Rd.

Sausalito, CA 94956

Facsimile Number: 

PURCHASERS:

 

ELIZABETH W. KORRELL

/s/ Elizabeth W. Korrell

Elizabeth W. Korrell

Address: 2607 Ninth Avenue West

Seattle, WA 98119

Facsimile Number: 206-266-1860

Exhibit A -Schedule of Purchasers

Exhibit B -Form of Promissory Note

Exhibit C -Purchaser Withholding Exemptions

EXHIBIT A

SCHEDULE OF PURCHASERS

FIRST CLOSING

	

Purchaser Name and Address
	
Type of

Consideration
	
Original Principal Amount of
Note

	
 

RS Orphan Fund, LP

388 Market Street

San Francisco, CA 94111

 

RS Orphan Offshore Fund, LP

388 Market Street

San Francisco, CA 94111
	
 

Cash

 

 

 

Cash
	
 

$79,000

 

 

 

$21,000

 

 

 

	
Sterling Payot Capital, LP

65 Cloudview Rd.

Sausalito, CA 94956
	
Forgiveness of indebtedness
	
$335,573.57

	
Robert M. Smelick

65 Cloudview Rd.

Sausalito, CA 94956
	
Forgiveness of indebtedness
	
$60,349.72

	
Elizabeth W. Korrell

2607 Ninth Avenue West

Seattle WA 98119
	
Cash
	
$5,000.00

EXHIBIT B

 

 

FORM OF SECURED CONVERTIBLE PROMISSORY NOTE

EXHIBIT C

 

PURCHASER WITHHOLDING EXEMPTIONS

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