Document:

Exhibit
10.12

 

AGREEMENT BETWEEN

METROPOLITAN GOVERNMENT OF NASHVILLE

AND DAVIDSON COUNTY

AND

ADVANCED TECHNOLOGY SYSTEMS, INC

FOR

LICENSING OF SOFFWARE PRODUCTS AND SERVICES

This contract is
entered into on this ___ day of _________, 2006, by and between The
Metropolitan Government of Nashville and Davidson County, a municipal
corporation of the State of Tennessee (“Metro”) and Advanced Technology Systems
(CONTRACTOR), a Virginia Corporation, registered and licensed to do business in
the State of Tennessee whose business address is:  7915 Jones Branch Drive, McLean, Virginia
22102.

This contract
consists of the following documents:

a)                                      any
properly executed amendment or change order to this contract (most recent with
first priority),

b)                                     This
Contract,

c)                                      Contractor’s
Best and Final Offer,

d)                                     Contractor’s
Payment Schedule,

e)                                      ATS
and Subcontractor Software License Agreement

f)                                        Denali
Software License Agreement,

g)                                     Contractor’s
Supplemental Response to Request for Proposal 05-72,

h)                                     Contractor’s
Response to Request for Proposal 05-72,

i)                                         Contractor’s
Software End-User License Agreement,

j)                                         Request
for Proposal 05-72, including Amendments 1, 2, 3, 4, and 5,

k)                                      Source
Code Escrow Agreement,

1)                                      Performance
Bond,

m)                                   Certificate
of Insurance, and

n)                                     Affidavit.

In the event of
conflicting provisions, all documents shall be construed according to the
following priorities:

a)                                      any
properly executed amendment or change order to this contract (most recent with
first priority),

b)                                     This
Contract,

c)                                      Contractor’s
Best and Final Offer,

d)                                     Contractor’s
Payment Schedule,

e)                                      ATS
and Subcontractor, Software License Agreement

f)                                        Denali
Software License Agreement,

g)                                     Contractor’s
Supplemental Response to Request for Proposal 05-72,

h)                                     Contractor’s
Response to Request for Proposal 05- 72,

i)                                         Contractor’s
Software End-User License Agreement,

j)                                         Request
for Proposal 05-72, including Amendments 1, 2, 3, 4, and 5,

k)                                      Source
Code Escrow Agreement,

1)                                      Performance
Bond,

m)                                   Certificate
of Insurance, and

n)                                     Affidavit.

 

1.             Definition

The following
terms are defined for the purpose of this Agreement as follows:

(a)           “Software”
means Contractor’s software programs (i) which contain systematic manipulative
compilations of industry data, (ii) which meet those requirements agreed
upon by Contractor and Metro set forth in RFP, which is incorporated into and
made a part of this Agreement by this reference, and (iii) which will be
specifically modified by Contractor to meet those requirements agreed upon by
Contractor and Metro and set forth in Contractor’s Response to Request For
Proposal 05-72, to be attached hereto upon such agreement and to be
incorporated into and made a part of this Agreement by this reference. Software
includes software programs and all future versions of this program, regardless
of the computer language used to write them, and documentation provided in
direct machine executable for human-readable, printed or imprinted form.

The Software can be used in conjunction with Microsoft
Access, Microsoft SQL Server and Oracle database products. This contract
provides appropriate licensing with SQL Server, via Client Access Licenses and
Embedded Server Licenses to support the Advanced Records Management
application.

(b)                                 “Source
Code” means that series of machine instructions in human-readable form from
which Object Code may be generated.

(c)                                  “Object
Code” means a series of instructions in direct machine executable form, which
cause a computer to perform its functions or to perform specific tasks in a
pre-assigned order.

(d)                                 “Derivative
Works” means a revision, modification, translation, abridgement, compilation,
condensation or expansion of the applicable underlying work or any form in
which that work may be recast, transformed or adapted, and which, if prepared
without the consent of the copyright owner, would be a copyright infringement.

(e)                                  “Underlying
Works” means all works of authorship fixed in any tangible medium of expression
that: (a) had already been conceived, invented, created or acquired by
Contractor or a third party prior to the effective date of this Contract and
that were not conceived, invented or created for Metro’s use or benefit in
connection with this Contract; or (b) are conceived, invented, created or
acquired by Contractor or a third party after such effective date, but only to
the extent such works of authorship 

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do not constitute Work Product.  An Underlying Work includes all intermediate
and partial versions thereof, as well as all source code, object code,
documentation, formulae, processes, algorithms, designs, specifications,
inventions, discoveries, concepts, improvements, materials, program materials,
software, flow charts, notes, outlines, lists, compilations, manuscripts,
writings, pictorial materials, schematics, apparatus, methods, techniques,
other creations, and the like, whether or not patented or patentable or
otherwise protectable by law

(f)                                    “Work
Product” means all works of authorship fixed in any tangible medium of
expression (including, without limitation, computer programs), and all
intermediate and partial versions thereof, as well as all source code, object
code, documentation, formulae, process, algorithms, designs, specifications,
inventions, discoveries, concepts, improvements, ideas, know-how, techniques,
materials, program materials, software, flow charts, notes, outlines, lists,
compilations, manuscripts, writings, pictorial materials, schematics,
apparatus, methods, techniques, other creations, and the like, whether or not
patented or patentable or subject to copyright, or otherwise protectable by law,
that are created, invented or conceived for the use or benefit of Metro in
connection with this Contract: 9a) by any of Contractor’s personnel, any Metro
personnel, where “personnel’ includes employees, contractors (including, in the
case of Contractor, its subcontractors), agents and the like, (b) any person
who was an employee of Metro and then became an employee of Contractor or any
of its contractors (including subcontractors) or agents, where, although
creation or reduction-to-practice is completed while the person is an employee
of Contractor or such contractors (including subcontractors) or agents, any
portion of the same was created, invented or conceived by such person while an
employee of Metro.  InPursuit
RMS software delivered pursuant to this agreement and any enhancements or
customizations to InPursuit RMS software are
specifically excluded from the definition of “Work Product”.  MNPD is licensed pursuant to Exhibit “D” to
use RMS software.

(g)                                 “Metropolitan
Nashville Police Department Purposes License” (or “MNPD License”) means a
non-transferable, perpetual, fully paid-up, royalty free license to possess,
use, copy and modify Work Product exclusively by and for the Metropolitan
Nashville Police Department , to store and retrieve information on crimes and
arrests in Nashville and Davidson County and its customers within the standard
Metropolitan Statistical Area including the following counties: Montgomery,
Robertson, Sumner, Macon, Jackson, Clay, Overton, Pickett, Fentress, Trousdale,
Dickson, Cheatham, Davidson, Wilson, Smith, Putnam, Cumberland, White, DeKalb,
Rutherford, Williamson, Hickman, Lewis, Maury, Marshall, Bedford, Cannon,
Coffee, Warren, Van Buren, Bledsoe, Rhea, Meigs, Hamilton, Sequatchie, Marion,
Grundy, Franklin, Moore, Lincoln, Giles, and Lawrence.

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Further Contract and
Service Agreement Definitions can be found in Exhibit B, “MNPD CONTRACT
DEFINITIONS”.

2.             Duties and Responsibilities of
Contractor

Upon execution of
the Agreement, Metro and Contractor shall begin work on the Developed Documents
as defined in paragraph 1.02.  The
Developed Documents shall be completed within 90 days.  When the Developed Documents are completed
and agreed to by the parties, such Developed Documents shall become part of
this Agreement by amendment thereto.

In the event that
Metro and Contractor cannot agree with the Developed Documents, Metro reserves
the right to terminate the Agreement within ten days written notice to
Contractor after delivery of the Developed Documents to Metro.  In the event that the Developed Documents
materially modify Contractor’s Proposal and the material modification is
introduced by Contractor, Metro may reject the Developed Documents, at its sole
option, and be relieved of any obligation in the Agreement and contractor shall
refund to Metro any payments made to Contractor under this Agreement in excess
of the costs incurred by Contractor in preparing the Developed Documents.

2.01         Contractor shall provide Metro with a
system and software for an integrated, full-featured Advanced Records
Management and Automated Field Reporting System for the Metropolitan Nashville
Police Department (MNPD).  Contractor
shall provide the software set forth in Contractor’s response to Request For
Proposal, which is attached hereto and incorporated by reference herein.  Contractor shall provide maintenance, support
and services for this system software during delivery, installation and
testing.  Contractor shall provide
maintenance, service and support for this system pursuant to the service and
support agreements attached hereto.

2.02         This contract shall have two phases:

Phase I shall
include the development and completion of Developed Documents consisting of:
project work plan with specific assignments; hardware and software schedule;
functional specifications and detailed design document; customization
specifications; training plan; set-up of a pilot/test environment for Metro,
and Acceptance Test plan.  These
documents shall be known, collectively, as the “Developed Documents”.

i)                                         Metro
and Contractor recognize the critical nature of system performance on the
success of the system installation. 
During Phase I of this Agreement, Contractor and Metro will develop
specifications for hardware, software, and network configurations.  With these configurations, Contractor and
Metro will agree to a range of expected system response times for critical
system functions.  Overall, the system 

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shall be configured such that 95% of all transactions complete within 1
second and 99% of all transactions complete within 2 seconds.  Transaction timing is from keyboard transmit
to the start of screen response.  These
configurations and expected system response times will be a part of the
Phase I deliverable and will represent a commitment from Contractor to
deliver the response times specified.  If
during subsequent phases of this Agreement, response times exceed the range
specified, and Metro can demonstrate that it has deployed the hardware,
software and network equipment as specified in the Phase I deliverable,
then Contractor will be notified of the response time deficiency.  Contractor will be given 10 (ten) days to
cure the response time deficiency.  If
the response time deficiency is not cured in that timeframe, Contractor will be
responsible for all cost related to additional equipment, software, or network
infrastructure necessary to bring the response time to the specified
level.  If the response time deficiency
is not cured within 30 (thirty) days, Metro will be entitled to liquidated
damages in the amount of $1,000 per day. 
Liquidated damages shall be calculated from the date of notification to
Contractor, and will continue until the response times issue is resolved up to
a maximum of $90,000.

ii)                                      Phase II
shall include the delivery and installation of the equipment and software as
required by this contract and the Developed Documents, the completion of the
software customization and the implementation of network connectivity.  Phase II shall include the provision of
documentation, training and testing, in accordance with the Acceptance Test
Plan within the Developed Documents.  The
date of acceptance of the system shall be the business day immediately
following the successful acceptance testing of the system.  The parties shall sign a document acknowledging
the successful acceptance testing on the date of acceptance.  Acceptance of the system activates the one
year application warranty coverage and post implementation support.

2.03                           System
Acceptance of and Phase II shall be completed in accordance with the
Developed Documents.  Completion of the
Project is dependent upon deliverables from both Contractor and Metro.  Should Metro and MNPD fail to meet their
deliverable dates as defined in the Developed Documents, the resultant time
delay will be added to the completion date.

2.04                           Contractor
warrants that the software provided pursuant to this Agreement shall meet the
requirements as specified in Metro’s Request For Proposal and Contractor’s
response to Request For Proposal.

2.05                           Contractor
shall assume the overall responsibility for the work, including the
application, and shall provide the project management and expertise necessary
to complete Phases I and II in a professional and timely manner in accordance
with the Contract and the Developed Documents

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2.06                           Contractor
will develop a project control system to control items which directly affect
project progress, such as design change control, resource assignment and
allocations, project schedules and problem/issue escalation and resolution.

2.07                           All
performance (which includes services, materials, supplies and equipment
furnished or utilized in the performance of this Contract, and workmanship in
the performance of services) shall be subject to inspection and test by Metro
and MNPD at all times during the term of this Contract.  Vendor shall provide adequate cooperation to
any inspector assigned by Metro to permit him or her to determine Vendor’s
conformity with the specifications and the adequacy of the services being
provided under this Contract.  All
inspection by Metro and MNPD shall be made in such a manner as not to unduly
interfere with Vendor’s performance.

3.             Term.

3.01                           The
term of this contract is five (5) years.

3.02                           This
contract may be may not be extended.

4.             Compensation.

4.01                           The
total cost for this contract will not exceed $4,599,366, unless properly
amended upon completion of Phase I of this agreement.  Reimbursements to Contractor for travel and
expenses shall be in accordance with Metro’s travel regulations.  There will be no other charges or fees for
the performance of this contract without a properly executed amendment to the
Contract.  All payments by Metro shall be
made within thirty (30) days of receipt and approval of invoice.

4.02                           Subject
to and in accordance with the provisions of this Section, Metro may withhold
payment of any invoice from Contractor (or part thereof) that it in good faith
disputes as due or owing.  In such case,
Metro shall pay any undisputed amounts and provide a written explanation to
Contractor of the reason it disputes the amount.  The failure of Metro to pay a disputed
invoice, or to pay the disputed part of an invoice, shall not constitute a
breach or default by Metro, so loping as Metro complies with the provisions of
this Section 3.03.  All of Contractor’s
obligations under this Contract shall continue unabated during the resolution
of the dispute.

5.             Taxes.

Metro shall not be responsible for any taxes that are imposed on
Contractor.  Furthermore, Contractor
understands that it cannot claim exemption from taxes by virtue of any
exemption that is provided to Metro.

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6.             Warranty.

6.01                           Warranty
of Title - Contractor represents and warrants to Metro that Contractor (“Developer”)
is the owner of the System Software (“the Software”) and that Contractor has
the right to grant to Metro the license and rights set forth in this
Contract.  In the event of breach or
threatened breach of the foregoing representation and warranty, the Contractor
may, at its option i.) procure, at Contractor’s expense, the right to use the
Software, ii.) replace the Software, or any part thereof that is in breach,
with software of comparable functionality that does not cause any breach, or
iii.) refund to Metro the full amount of the license fee upon the return of the
Software and all copies thereof to Contractor.

6.02                           Warranty
of Functionality - Contractor represents and warrants that during the term of
the Agreement that (1) the Software licensed in this Agreement constitute all
the software, applications required to operate the system as specified in the
RFP; (2) the Software shall perform according to Developer’s published software
manuals operate as per specifications provided by the user documentation
provided with the system including any updated Software, as per the
specifications in the RFP; (3) the Software as delivered to User, will meet
these specifications, without the need for customization or modification, or
the delivery of any additional services; (4) the Software will be free of any
defect in material of the medium in which the programs are delivered, or any
virus, other program routine designed to erase or otherwise harm User’s
hardware, data, or their programs.

6.03                           Performance
of the Services - Contractor represents and warrants to Metro that it has the
skills, resources and expertise to provide all services in accordance with the
terms of this Contract.  Without limiting
the generality of the foregoing, Contractor represents and warrants to Metro
that all services provided under this Contract shall be provided in a timely,
professional and workmanlike manner consistent with industry standards of
quality and integrity provided, however, that where this Contract specifies a
particular standard or criteria for performance, this warranty is not intended
to and does not diminish that standard or criteria for performance.

6.04                           Viruses
and Disabling Devices.  Contractor shall
implement and use industry best practices to identify, screen, and prevent, and
shall not introduce, and Disabling Device in hardware, software or other
resources utilized by Contractor, Metro or any third party in connection with
the services.  A “Disabling
Device” is any virus, timer, clock, counter, time lock, time bomb,
Trojan horse, worms, file inflectors, boot sector infectors or other limiting
design, instruction or routine and surveillance software or routines or data
gathering or collecting software or devices that could, if triggered, erase
data or programming, have an adverse impact on the services, cause the
hardware, software or other resources to become inoperable or otherwise
incapable of being used in the full manner for which such hardware, software or
other resources were intended to be used, or that collect data or
information.  At no cost or expense to
Metro and without adversely a impacting the services, Contractor shall reduce
and/or eliminate the effects of any Disabling Device including, without
limitation, by restoring and/or bearing the cost to recreate any lost data
and/or software programming.

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7.             License.

7.01                           Contractor
has the right to grant to Metro the rights set forth in this agreement.

7.02                           Contractor
hereby grants to Metro a perpetual, non-exclusive license to use the Software
in Davidson County and the Nashville MSA as set forth in this agreement.

703                              Metro
understands the confidential nature of the Software licensed by Contractor and
agrees to use all reasonable controls to protect the confidential nature of all
Software licensed by Contractor or licensed to Contractor by a third party
which shall in no event be less than the same standard of care which User uses
to protect its own most proprietary, confidential information.  Contractor understands and recognizes that
Metro is a government entity and as such is subject to the Tennessee Open
Records Act.  In the event that a request
is received under or with reference to that Act, Metro agrees to so notify
Contactor at its earliest convenience. 
Contractor understands and recognizes that Metro will comply with the
Tennessee Open Records Act even if it conflicts with the terms of this Agreement.  Therefore, Contractor agrees that compliance
with the Tennessee Open Records Act is not a breach of this Agreement and
Contractor will not be entitled to:  terminate the License granted
herein, a cause of action against Metro, and/or any damages for Metro’s
complying with the Tennessee Open Records Act.

7.04                           Metro
as the Holder of a “Metropolitan Nashville Police Department (MNPD) Purposes”
License to Work Product, Metro shall be the sole and exclusive holder of a “MNPD
Purposes” License to possess and use all Work Product for the Metropolitan
Government of Nashville and Davidson County, Tennessee, to store and retrieve
information on crimes and arrests in Nashville and Davidson County, and
notwithstanding all other interests to the Work Product that may be held by
Contractor or any other entity or person, in the nature of copyright, patent,
trademark, trade secret, and other proprietary rights in and to the Work
Product.  Ownership of the MNPD License
to the Work Product shall inure to the benefit of Metro from the date of
conception, creation, or fixation of the Work Product in a tangible medium of
expression (whichever occurs first). 
Contractor shall obtain similar written undertakings from all
subcontractors, employees and consultants who will perform any services for
this Contract, so as to ensure Metro’s ownership of the “MNPD Purposes” License
to possess and use the Work Product as provided herein, and shall not commence
the deployment of any such subcontractor, employee or consultant until such a
written undertaking has been obtained from any such subcontractor, employee or
consultant and delivered to Contractor. 
Metro shall have unrestricted access to all Contractor materials,
premises and computer files containing the Work Product, for any and all
purposes within the “MNPD Purposes” license. 
The parties will cooperate with each other and execute such other
documents as may be appropriate to achieve the objectives of this Section.

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7.05                           [Text
deleted] 7.06                Intellectual
Property.  Contractor promptly and fully
shall disclose in writing and deliver to Metro a copy of all Work Product,
which delivery, in the case of computer programs, shall include object code and
all available user manuals and other documentation, including any documentation
specifically requested by Metro. 
Contractor shall deposit all source code in strict accordance with the
Escrow Agreement marked as Exhibit D, hereto. 
Contractor shall provide to MNPD, on a quarterly basis, a written report
identifying all items of information within the body of Work Product

7.07                           Contractor’s
Underlying and Derivative Works. 
Notwithstanding anything to the contrary contained in this Contract,
including this Section 6, Contractor shall be the sole and exclusive owner
of all of Contractor’s Underlying Works and all Derivative Works.

7.08                           Third-Party
Underlying and Derivative Works. 
Notwithstanding anything to the contrary contained in this Contract,
including this Section 6, the sole and exclusive owner of any third party’s
Underlying Works, Work Product and of all Derivative Works thereof that are
created, invented, conceived, and fixed in a tangible medium of expression by
such third party shall be the applicable third party; provided, however, that
Contractor shall not implement or utilize any third-party Works in the
provision of any services unless the third-party Works are commercially
available or Contractor has obtained from such third parties all rights and
licenses required to deliver the MNPD Purposes License to the MNPD and required
to perform the services under this Contract. 
The terms and conditions of all such rights and licenses shall be
subject to the review and approval of Metro prior to their implementation by
Contractor under this Contract.  With
respect to all technology used and to be used by Contractor to perform the
services hereunder, whether proprietary to 
Contractor or known to be proprietary to any other person, Contractor
hereby grants and agrees to grant to Metro, or shall cause to be granted by the
licenses thereof, as the case may be, without additional charge, such licenses
and sublicenses as may be necessary in order for Metro, and its authorized
representatives (including third party service providers), to use, or receive
the benefit of the use by contractor of, such technology in connection with the
services under this Contract.

7.09                           Advance
Consents.  Contractor shall obtain
advance consents from Contractor’s licensors and lessors to the conveyance or
assignment, at no cost to Metro, for all licenses and leases related to the
services under this Contract upon Disengagement.  If such advance consents cannot be obtained,
contractor shall promptly notify Metro so that Metro shall have the option to
enter into the applicable license or lease in its own name.

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7.10                           Metro
Data.  Metro shall permit Contractor to
have access to Metro data solely to the extent that Contractor requires access
to such data to provide the services in accordance with the terms of this
Contract.  Contractor may only access and
process Metro data in connection herewith or as directed by Metro in writing
and may not otherwise modify Metro date, merge it with other data, commercially
exploit it or engage in any other practice or activity that may in any manner
adversely affect the integrity, security or confidentiality of such data, other
than as specifically permitted herein or as directed by Metro in writing.  Contractor understands and agrees that Metro
owns all right, title, and interest in and to the Metro data and in and to any
modification, compilation or Derivative Works therefrom.

7.11.                        Cooperation.  If at any time Metro brings or investigates
the possibility of bringing, any claim against any person for infringement of
any patent, trademark, copyright or similar proprietary right of Metro, including
misappropriation of trade secrets and misuse of confidential information, then
Contractor, upon the request and at the expense of Metro, shall cooperate with
and assist Metro in the investigation or pursuit of such claim, and provide
Metro with any information, in Contractor’s possession that may be of use to
Metro in the investigation or pursuit of such claim.

8.             Copyright, Trademark, Service Mark,
or Patent Infringement.

8.01                           Contractor
shall, at its own expense, be entitled to and shall have the duty to defend any
suit which may be brought against Metro to the extent that it is based on a
claim that the products or services furnished infringe a United States
copyright, Trademark, Service Mark, or patent. 
Contractor shall further indemnify and hold harmless Metro against any
award of damages and costs made against Metro by a final judgment of a court of
last resort in any such suit.  Metro
shall provide Contractor immediate notice in writing of the existence of such
claim and full right and opportunity to conduct the defense thereof, together
with all available information and reasonable cooperation, assistance and
authority to enable Contractor to do so. 
No costs or expenses shall be incurred for the account of Contractor
without its written consent.  Metro
reserves the right to participate in the defense of any such action.  Contractor shall have the right to enter into
negotiations for and the right to effect settlement or compromise of any such
action, but no such settlement or compromise shall be binding upon Metro unless
approved by the Metro Department of Law Settlement Committee and, where
required, the Metro Council.

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8.02                           If
the products or services furnished under this contract are likely to, or do
become, the subject of such a claim of infringement, then without diminishing
Contractor’s obligation to satisfy the final award, Contractor may at its
option and expense:

i)                                         Procure
for Metro the right to continue using the products or services.

ii)                                      Replace
or modify the alleged infringing products or services with other equally
suitable products or services that are satisfactory to Metro, so that they
become non-infringing.

iii)                                   Remove
the products or discontinue the services and cancel any future charges
pertaining thereto.

iv)                                  Provided,
however, that Contractor will not exercise option b.iii until Contractor
and Metro have determined that options b.i. and b.ii. are impractical.

8.03                           Contractor
shall have no liability to Metro, however, if any such infringement or claim
thereof is based upon or arises out of:

i)                                         The
use of the products or services in combination with apparatus or devices not
supplied or else approved by Contractor.

ii)                                      The
use of the products or services in a manner for which the products or services
were neither designated nor contemplated.

iii)                                   The
claimed infringement in which Metro has any direct or indirect interest by
license or otherwise, separate from that granted herein.

8.04                           Contractor
is not liable if any infringement claim is based upon (i) the interconnection,
operation or use of the equipment or software product in combination with
equipment, software or other devices not made or supplied by Contractor, (ii)
use of operation of the equipment or software product in a manner for which it
was not designed or recommended by Contractor or (iii) alteration, adaptation
or modification of the equipment of software Subject to the limitation of
liability provision herein, Contractor shall pay damages finally awarded for
any settlement made with Contractor’s prior written authorization.

9.             Termination-Breach.

Should Contractor fail to fulfill in a timely and proper manner its
obligations under this contract or if it should violate any of the terms of
this contract, Metro shall have the right to immediately terminate the contract.  Such termination shall not relieve Contractor
of any liability to Metro for damages sustained by virtue of any breach by
Contractor.  The foregoing
notwithstanding, Metro shall provide Contractor written notice of the alleged
violation or breach and Contractor shall have 30 days in which to cure said
alleged violation or breach.  If at the
end of such 30 day period Contractor has failed to cure any such violation or
breach, Metro may terminate this contract In the event that contract is so
terminated Metro shall not be liable for any further payments under the
Contract, and Contractor shall, within 30 days following termination, refund to
Metro the system software and services by paying to Metro an amount equal to
the sums theretofore paid by Metro.

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10.          Termination-Funding.

Should funding for this contract be discontinued, Metro shall have the
right to terminate the contract immediately upon written notice to
Contractor.  In the event that contract
is so terminated Metro shall not be liable for any further payments under the
Contract.  In the event Metro terminates
this contract under this provision, Metro shall remain liable to Contractor for
any accumulated payments due prior to the effective date of the written notice
of termination for services performed under this contract.

11.          Termination-Notice.

Metro may terminate this contract at any time upon thirty (30) days
written notice to Contractor.  In the
event that contract is so terminated, Metro shall not be liable for any further
payments under the Contract In the event Metro terminates this contract under
this provision, Metro shall remain liable to Contractor for any accumulated
payments due prior to the effective date of the written notice of termination
for services performed under this contract.

12.          Disentanglement.

12.1                                                General
Obligations.  Upon any
termination or expirations of this Contract, Contractor shall provide the
Disentanglement (as defined herein) services as set forth in this Section.  Contractor shall accomplish a complete
transitions pf any terminated services from Contractor and its subcontractors
to Metro, its departments and/or to any replacement provider(s) designated by
Metro (collectively, the “Replacement Providers”), without causing any
unnecessary interruption of or causing and unnecessary adverse impact on, the
services under this Contract and/or services provided by any third parties (the
“Disentanglement”).  Without limiting the
generality of the foregoing, Contractor shall: (a) cooperate with Metro,
its departments and/or the Replacement Providers, including promptly taking all
steps required to assist Metro in effecting a complete Disentanglement;
(b) provide to Metro, its departments and/or the Replacement Providers all
information regarding the services as needed for disentanglement including,
without limitation, data conversions, interface specifications and related
professional services; (c) provide for the prompt and orderly conclusion of all
work, as Metro may direct, including documentation of work in progress and
other measures to provide an orderly transition to Metro, its departments
and/or the Replacement Providers; and (d) accomplish the other specific
obligations described in this Section 11. 
Contractor and Metro shall discuss in good faith a plan for determining
the nature and extent of Contractor’s Disentanglement obligations and for the
transfer of services in process; provided, however, that Contractor’s
obligation under this Contract to provide all services necessary for
Disentanglement shall not be lessened in any respect.  All services related to disentanglement shall
be deemed a part of the services and included within the fees; provided,
however, that the parties shall reach agreement on, and set forth in a separate
schedule, those Disentanglement services that will require no additional
charges over and above those set forth in this Contract, and those 

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Disentanglement services that are either new or require additional
charges.  Contractor’s obligation to
provide the services shall not cease until a Disentanglement that is
satisfactory to Metro has been completed, including the performance by
Contractor of all asset transfers, if any, and other obligations of Contractor
set forth in this Section 11.

12.02                                         Disentanglement
Period.  The process to effectuate
the Disentanglement shall begin on any of the following
dates:  (a) the date designated by Metro in connection with
expiration of the term of this Contract, which shall not be earlier than one
hundred eighty (180) calendar days prior to the end of the term; or (b) the
termination date specified in any termination notice under Sections 8, 9 and
10, and shall continue: (c) in the case of subsection (a), until expiration of
the term; or (d) in all other cases, for a period of up to twelve (12) months
thereafter, at Metro’s option (with the applicable date on which Contractor’s
obligation to perform the services expires being referred to as the (“Expiration
Date”).  If requested by Metro,
Contractor shall perform its Disentanglement obligations on an expedited basis
if metro terminates this Contract pursuant to Sections 8, 9 or 10.

12.03                                         Specific
Obligations.  Disentanglement
shall include, without limitations, the performance of the specific obligations
described in this Section.  In connection
with subsections 12.3.2, 12.3.3 and 12.3.4 below, Contractor shall as soon as
reasonable possible following its issuance or receipt of a termination notice,
but in no event longer than ten (10) business days thereafter, provide to Metro
a complete and accurate list of all items that will be subject to conveyance or
re-conveyance to Metro as provided in such Sections. Contractor agrees that its
agreements with all third parties relating to this Contract, including
subcontractors, shall not include any terms that would prohibit or otherwise
restrict such third parties, including subcontractors, from entering into
agreements with Metro and/or the Replacement provider (whether directly or
through an assignment) as provided herein.

12.3.1.                                   Full
Cooperation, Information and Knowledge Transfer.  During disentanglement, the parties shall
cooperate fully with one another to facilitate a smooth transition of the
terminated services from Contractor and its subcontractors to Metro, its
Departments and/or the Replacement Providers.  Contractor shall provide such cooperation both
before and after the expiration date, and such cooperation shall include,
without limitation, provisions of full, complete, detailed, and sufficient
information (including all information then being utilized by Contractor with
respect to programs, tools, utilities and other resources used to provide the
services) and knowledge transfer with respect 

 13
 

to all such information in order to enable Metro’s,
its departments’ and/or the Replacement Provider’s personnel (or that of third
parties) to fully assume, become self-reliant with respect to, and continue
without interruption, the provisions of the services. Contractor shall
cooperate with Metro and all of Metro’s other service providers to provide a
smooth transition at the time of Disentanglement, with no unnecessary
interruption of services, no unnecessary adverse impact on the provision of
services or Metro’s activities and no unnecessary interruptions of, or
unnecessary adverse impact on, any services provided by third parties.

12.3.2.                                   Third
Party Authorizations.  Without
limiting the obligations of Contractor under this contract and subject to the
terms of any third party contracts, if requested by Metro as part of the
Disentanglement, Contractor shall procure at no charge to Metro any third party
authorizations necessary to grant Metro the use and benefit of any third party
contracts between Contractor and third party contractors used to provide the
services hereunder, pending their assignment to Metro pursuant to subsection
11.3.5.

12.3.3.                                   MNPD
Licenses to Software.  Without
changing Metro’s rights in and to the licenses previously granted to Metro
pursuant to Section 6, which licenses Metro shall have the right to retain
following the Expirations Date, if and as requested by Metro as part of the
Disentanglement, Contractor shall: (a) re-assign to Metro and/or the
Replacement Provider(s) any licenses assigned to contractor to provide the
services under this Contract; and (b) grant to the Replacement Provider(s) the
MNPD License to all Contractor-Owned Software and Contractor-licensed
third-party Software used to provide the services as identified in the list
provided by Contractor pursuant to Section 11.3.  Contractor shall provide Metro with a copy of
each such program, in such media as requested by Metro, together with object
code and appropriate documentation (and make available source code in strict
accordance with the Escrow Agreement marked as Exhibit D, hereto).  Contractor shall also offer to Metro
maintenance (including all enhancements and upgrades) and support with respect
to such contractor-owned Software and Contractor-licensed third party Software
for so long as Metro requires, at rates comparable to rates that Contractor is
offering to other major customers for services of a similar nature and
scope.  In addition, although Metro 

 14
 

acknowledges that Contractor does not control third
party software vendors (if any), if requested by Metro, contractor shall assist
Metro, its departments, and/or the Replacement Provider(s) in securing
maintenance (including all enhancements and upgrades) and support with respect
to any such software for so long as Metro requires at competitive rates.

12.3.4.                                   Assignment
of Contracts.  If and as
requested by Metro as part of the Disentanglement, Contractor shall assign to
Metro and or the Replacement Provider(s), from among those leases, maintenance,
support and other contracts used by Contractor, Metro or any other person in
connection with the services provided under this Contract, such contracts as
Metro might select from the list provided by Contractor pursuant to subsection
11.3.  Contractor’s obligation under this
subsection 11.3.4 shall include Contractor’s performance of all obligations
under such leases, maintenance, support and other contracts to be performed by
it with respect to periods prior to the date of assignment, and contractor
shall reimburse Metro for any losses resulting from any claim that Contractor
did not perform such obligations.

12.3.5.                                   Delivery
of Documentation and Data.  If
and as requested by Metro, contractor shall deliver to Metro its departments
including MNPD, and/or the Replacement Provider(s) all documentation and data
related to Contractor’s provision of the services under this Contract,
including the Metro Data, as well as all procedures, standards and operating
schedules, held by contractor. 
Notwithstanding the foregoing, Contractor may retain copies of such
documentation and data, excluding Metro data, for archival purposes, warranty
support and/or the fulfillment of other customers’ requirements.

12.4.                                             Preparation
for Disentanglement.

12.4.1.                                   Complete
Documentation.  Contractor shall
provide to Metro complete information, including complete documentation, in
accordance with the standards and methodologies to be implemented by
Contractor, for all Software (including applications developed as part of the
services under this Contract) and hardware, that is sufficient to enable Metro,
its departments including MNPD, and/or the Replacement Provider(s), to fully
assume the provision of such services to Metro.

 15
 

12.4.2.                                   Maintenance
of Assets.  Contractor shall
maintain all of the hardware, Software, systems, networks, technologies, and
other assets utilized in providing services under this Contract to Metro
(including leased and licensed assets) in good condition and in such locations
and configurations as to be readily identifiable and transferable back to Metro
or its designees in accordance with the provisions of this Contract; in addition,
contractor shall insure such assets in accordance with the requirements of
Section 19.

12.4.3.                                   Advance
Written Consents.  In accordance
with subsection 6.08, at all times during the term hereof, Contractor shall
obtain advance written consents from all licensors and lessors to the
conveyance or assignment of licenses and leases to Metro and/or the Replacement
Provider(s) upon Disentanglement. 
Contractor also shall obtain for Metro the right, upon Disentanglement, to
obtain maintenance (including all enhancements and upgrades) and support with
respect to the assets that are subject of such leases and licenses at the price
of which, and for so long as, such maintenance and support is made commercially
available to other customers of such third parties.

12.4.4.                                   All
Necessary Cooperation and Actions.  Contractor
shall provide all cooperation, take such additional actions, and perform such
additional tasks, as may be necessary to ensure a timely Disentanglement in
compliance with the provisions of this Section 11.

12.4.5.                                   Payment
for Disentanglement.  If Metro
terminates this contract, or any portion thereof, for convenience, or if this
Contract, or any portion thereof, is terminated due to a material default of
Metro, then Metro shall pay any applicable fees associated with Disentanglement
services that it has requested.  If this
Contract, or any portion thereof, is terminated for any other reason including,
but not limited to, breach and Force Majeure, then Contractor shall pay the
applicable fees associated with Disentanglement.

13.          Compliance with laws.

Contractor agrees to comply with any applicable federal, state and
local laws and regulations.

14.          Security and Confidentiality.

14.1.                     General.  Contractor shall provide all services under
this Contract utilizing security technologies and techniques and in accordance
with standard industry practices and Metro’s security policies, procedures and
requirements, including those relating to the prevention and detection of fraud
or other inappropriate use of or access to systems and networks.  Without limiting the generality of the
foregoing, Contractor shall 

 16
 

implement and/or use network management and maintenance applications
and tools and appropriate fraud prevention and detections and encryption
technologies.  In no event shall
contractor’s action or inaction result in any situation that is less secure
than: (a) the security Metro provided as of the Effective Date of this
Contract; or (b) the security Contractor then provides for its own systems and
data, whichever is greater.

14.2                        Information
Access.  Prior to performing any
services under this Contract, Contractor and its employees, agents and
subcontractors who may access Metro data and software shall execute the parties’
agreements and forms concerning access protection and data/software security
consistent with the terms and conditions of this Contract.  Contractor and its employees, agents and
subcontractors shall comply with all policies and procedures of Metro regarding
data access, privacy and security, include any that prohibit or restrict remote
access to Metro systems and data. Metro may authorize, and Contractor shall
issue, any necessary information-access mechanisms, including access Ids and
passwords, and contractor agrees that the same shall be used only by the
personnel to whom they are issued. 
Contractor shall provide to such personnel only such level of access as
is minimally necessary to perform the tasks and functions for which such
personnel are responsible.  Contractor
shall from time-to-time, upon request from Metro but in the absence of any such
request at least quarterly, provide Metro and MNPD with an updated list of
those Contractor personnel having access to Metro’s systems, software, and
data, and the level of such access. 
Computer data and software, including Metro data, provided by Metro or
accessed (or accessible) by Contractor personnel or contractor’s subcontractors’
personnel, shall be used by such personnel only in connection with the
obligations provided hereunder, and shall not be commercially exploited by
Contractor or its subcontractors in any manner whatsoever.  Failure of Contractor or its subcontractors
to comply with the provisions of this Section 13 may, at Metro’s sole
discretion, result in Metro restricting offending personnel from access to
Metro’s computer systems or Metro data or the termination of this contract for
material breach.  It shall be Contractor’s
responsibility to maintain and ensure the confidentiality and security of Metro’s
data.

14.3.                     Background Checks.  If Contractor assigns persons
(whether employees, contractors, subcontractors and/or agents), other than
employees specifically exempted in writing by Metro/MNPD, to perform work at
any site of Metro’s or Metro’s customer(s), Contractor may conduct an initial
background check on all such persons and review the results of the background
check of each person to verify that the person meets Contractor’s standards for
employment before presenting the summary results of the background check to
Metro/MNPD and requesting that Metro grant access to any such person at any
site of Metro’s or Metro’s customer(s). 
No such person shall have access to any Metro site prior to an
additional background check to be conducted by MNPD in accordance with MNPD’s
standards and approval of such person. 
Metro/MNPD shall 

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be permitted, at its sole option to refuse access to any site of Metro’s
or Metro’s customers.  Any background
check conducted by Contractor shall be on a form generally used by Contractor
in its initial hiring of employees or contracting for contractors (including
subcontractors and/or agents) or, as applicable, during the
employment-screening process but must at a minimum, have been performed within
the preceding twelve (12) month period and detail the individual’s arrest
record, credit history and employment history.

15.          Notices and Designation of Agent for
Service of Process.

Notice of assignment of any rights to money due to Contractor under
this contract must be mailed or hand delivered to the attention of Metro’s
Chief Accountant, Division of Accounts, Department of Finance, 222 Third
Avenue North, Suite 750, Nashville, Tennessee 37201, with a copy to
the recipient for Metro notices listed below. 
All other notices to Metro shall be mailed or hand delivered to:

Department: Metro Police
Department

Mr. Ricky Vaughn

200 James Robertson Parkway

Nashville, TN 37201

a)             Notices to
Contractor shall be mailed or hand delivered to:

	
   

  	
   

  	
  Advanced Technology Systems

  	
   

  	
   

  
	
   

  	
   

  	
  Mr. Eric Moe

  	
   

  	
   

  
	
   

  	
   

  	
  7915 Jones Branch Drive

  	
   

  	
   

  
	
   

  	
   

  	
  McClean, Virginia 22102

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
  Telephone:   

  	
   

  	
  703 506 0088

  
	
     

  	
   

  	
  Fax:   

  	
   

  	
  703 903 0415

  
	
     

  	
   

  	
  e-mail:   

  	
   

  	
  ekmoe@atsva.com

  
							

 

b)            Contractor
designates the following as the Contractor’s agent for service of process and
will waive any objection to service of process if process is served upon this
agent:

	
   

  	
   

  	
  Advanced Technology Systems

  	
   

  	
   

  
	
   

  	
   

  	
  Mr. Eric Moe

  	
   

  	
   

  
	
   

  	
   

  	
  7915 Jones Branch Drive

  	
   

  	
   

  
	
   

  	
   

  	
  McClean, Virginia 22102

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
     

  	
   

  	
  Telephone:   

  	
   

  	
  703 506 0088

  
	
     

  	
   

  	
  Fax:   

  	
   

  	
  703 903 0415

  
	
     

  	
   

  	
  e-mail:   

  	
   

  	
  ekmoe@atsva.com

  
							

 

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16.          Maintenance of Records.

Contractor shall maintain documentation for all charges against
Metro.  The books, records, and documents
of Contractor, insofar as they relate to work performed or money received under
the contract, shall be maintained for a period of three (3) full years from the
date of final payment and will be subject to audit, at any reasonable time and
upon reasonable notice by Metro or its duly appointed representatives.  The records shall be maintained in accordance
with generally accepted accounting principles.

17.          Monitoring.

The Contractor’s activities conducted and records maintained pursuant
to this Contract shall be subject to monitoring and evaluation by Metro, the
Metro Department of Finance/Division of Internal Audit, or their duly appointed
representatives.

18.          Metro Property.

Any Metro property, including but not limited to books, records and
equipment that is in Contractor’s possession shall be maintained by Contractor
in good condition and repair, and shall be returned to Metro by Contractor upon
termination of the contract.

19.          Modification of Contract.

This contract may be modified only by written amendment executed by all
parties and their signatories hereto. 
All change orders, where required, shall be executed in conformance with
section. 4.24 020 of the Metropolitan Code of Laws.

20.          Partnership/Joint Venture.

Nothing herein shall in any way be construed or intended to create a
partnership or joint venture between the parties or to create the relationship
of principal and agent between or among any of the parties.  None of the parties hereto shall hold itself
out in a manner contrary to the terms of this paragraph.  No party shall become liable for any
representation, act or omission of any other party contrary to the terms of
this paragraph.

21.          Waiver.

No waiver of any provision of this contract shall affect the right of
any party thereafter to enforce such provision or to exercise any right or
remedy available to it in the event of any other default.

 19
 

22.          Employment.

Contractor shall not subscribe to any personnel policy which permits or
allows for the promotion, demotion, employment, dismissal or laying off of any
individual due to race, creed, color, national origin, age, sex, or which is in
violation of applicable laws concerning the employment of individuals with
disabilities.

23.          Insurance.

During the term of this Contract, Contractor shall at its sole expense
obtain and maintain in full force and effect for the duration of the Agreement
and any extension hereof at least the following types and amounts of insurance
for claims which may arise from or in connection with this Agreement.

1)             Commercial General
Liability Insurance occurrence version commercial general liability insurance
or equivalent form with a limit of not less than one million ($1,000,000.00)
dollars each occurrence for bodily injury, personal injury, and property
damage.  If such insurance contains a
general aggregate limit, it shall apply separately to the work/location in this
Agreement or be no less than two times the occurrence limit.  Such insurance shall:

a)                                      Contain
or be endorsed to contain a provision that includes Metro, its officials,
officers, employees, and volunteers as additional insured with respect to
liability arising out of work or operations performed by or on behalf of the
Contractor including materials, parts, or equipment furnished in connection
with such work or operations. The coverage shall contain no special limitations
on the scope of its protection afforded to the above-listed insured.

b)                                     For
any claims related to this agreement, Contractor’s insurance coverage shall be
primary insurance as respects Metro, its officers, officials, employees, and
volunteers.  Any insurance or self-insurance
programs covering Metro, its officials, officers, employees, and volunteers
shall be excess of Contractor’s insurance and shall not contribute with it.

2)             Automotive
Liability Insurance including vehicles owned, hired, and non-owned, with a combined
single limit of not less than one million ($1,000,000.00) dollars each
accident.  Such insurance shall include
coverage for loading and unloading hazards. 
Insurance shall contain or be endorsed to contain a provision that
includes Metro, its officials, officers, employees, and volunteers as
additional insured’s with respect to liability arising out of automobiles
owned, leased, hired, or borrowed by or on behalf of Contractor.

3)             Worker’s
Compensation (If applicable), Contractor shall maintain workers’ compensation
insurance with statutory limits as required by the State of Tennessee or other
applicable laws and employers’ liability insurance with limits of not less than
$100,000.  Contractor shall require each
of its subcontractors to provide Workers’ Compensation for all of the latter’s
employees to be engaged in such work unless such employees are covered by
Contractor’s workers’ compensation insurance coverage.

4)             Other Insurance:
None.

 20
 

5)             Other Insurance
Requirements.  Contractor shall:

a.             Prior to
commencement of services, furnish Metro with original certificates and
amendatory endorsements effecting coverage required by this section and provide
that such insurance shall not be cancelled, allowed to expire, or, be
materially reduced in coverage except on 30 days’ prior written notice to Metro’s
Law Department, 222 Third Avenue North, Suite 501, Nashville, TN 37201.

b.             Provide certified
copies of endorsements and policies if requested by Metro in lieu of or in
addition to certificates of insurance.

c.             Replace
certificates, policies, and/or endorsements for any such insurance expiring
prior to completion of services.

d.             Maintain such
insurance from the time services commence until services are completed.  Failure to maintain or renew coverage or to
provide evidence of renewal may be treated by Metro as a material breach of
contract.

e.             Place such
insurance with insurer licensed to do business in Tennessee and having A.M.
Best Company ratings of no less than A-. 
Modification of this standard may be considered upon appeal to the Metro
Director of Risk Management Services.

f.              Require all
subcontractors to maintain during the term of the agreement Commercial General
Liability insurance, Business Automobile Liability insurance, and Worker’s
Compensation/Employers Liability insurance (unless subcontractor’s employees
are covered by Contractor’s insurance) in the same manner as specified for
Contractor.  Contractor shall furnish
subcontractor’s certificates of insurance to Metro without expense immediately
upon request.

g.             Any deductibles
and/or self-insured retentions greater than $25,000.00 must be disclosed to and
approved by Metro prior to the commencement of services.

h.             If the Contractor
has or obtains primary and excess policy(ies), there shall be no gap between
the limits of the primary policy and the deductible features of the excess
policies.

24.          Contingent Fees.

Contractor hereby represents that Contractor has not been retained or
retained any persons to solicit or secure a Metropolitan Government contract
upon an agreement or understanding for a contingent commission, percentage, or
brokerage fee, except for retention of bona fide employees or bona fide
established commercial selling agencies for the purpose of securing business.  Breach of provisions of this paragraph is, in
addition to a breach of this contract, a breach of ethical standards which may
result in civil or criminal sanction and/or debarment or suspension from being
a contractor or subcontractor under Metropolitan Government contracts.

 21
 

25.          Gratuities and Kickbacks.

It shall be a breach of ethical standards for any person to offer, give
or agree to give any employee or former employee, or for any employee or former
employee to solicit, demand, accept or agree to accept from another person, a
gratuity or an offer of employment in connection with any decision, approval,
disapproval, recommendation, preparation of any part of a program requirement
or a purchase request, influencing the content of any specification or
procurement standard, rendering of advice, investigation, auditing or in any
other advisory capacity in any proceeding or application, request for ruling,
determination, claim or controversy or other particular matter, pertaining to
any program requirement of a contract or subcontract or to any solicitation or
proposal therefore.  It shall be a breach
of ethical standards for any payment, gratuity or offer of employment to be
made by or on behalf of a subcontractor under a contract to the prime
contractor or higher tier subcontractor or a person associated therewith, as an
inducement for the award of a subcontract or order. Breach of the provisions of
this paragraph is, in addition to a breach of this contract, a breach of
ethical standards which may result in civil or criminal sanction and/or
debarment or suspension from being a contractor or subcontractor under
Metropolitan Government contracts.

26.          Indemnification and Hold Harmless.

Contractor shall defend indemnify and hold harmless Metro, its
officers, agents and employees from:

i)              Any claims,
damages, costs and attorney fees for injuries or damages arising, in part or in
whole, from the negligent or intentional acts or omissions of Contractor, its
officers, employees and/or agents, including its sub or independent contractors,
in connection with the performance of the contract, and,

ii)             Any claims,
damages, penalties, costs and attorney fees arising from any failure of
Contractor, its officers, employees and/or agents, including it sub or
independent contractors, to observe applicable laws, including, but not limited
to, labor laws and minimum wage laws

iii)            Metro will not
indemnify, defend or hold harmless in any fashion the Contractor from any
claims arising from any failure, regardless of any language in any attachment
or other document that the Contractor may provide.

iv)           Contractor shall pay
Metro any expenses incurred as a result of Contractor’s failure to fulfill any
obligation in a professional and timely manner under this Contract.

v)            If Contractor
declines to assume the defense of a claim as provided in this Section: (a)
Metro may assume such defense and, if such defense is assumed, unless the
parties otherwise agree in writing, Contractor thereafter shall be barred from
assuming such defense at a later time; and (b) if it is later determined by a
court of competent jurisdiction, without right of further appeal, that such
claim was eligible for indemnifications by Contractor under this Section 22,
within thirty (30) calendar days following such determination, contractor shall
reimburse Metro in full for all settlements, judgments, costs and expenses
(including attorneys’ fees) incurred by Metro in connection with such claim.

 22
 

27.          Attorney Fees.

Reserved

28.          Assignment—Consent Required.

The provisions of this contract shall inure to the benefit of and shall
be binding upon the respective successors and assignees of the parties
hereto.  Except for rights to money due
to Contractor under this contract, neither this contract nor any of the rights
and obligations of Contractor hereunder shall be assigned or transferred in
whole or in part without the prior written consent of Metro.  Any assignment or transfer shall not release
Contractor from its obligations hereunder. 
Metro shall not assign or otherwise transfer the Software or this
Contract to anyone, including any parent, subsidiaries, affiliated entities or
third patties, or as part of the sale of any portion of its business, or
pursuant to any merger, consolidation or reorganization, without Contractor’s
prior written consent.

NOTICE OF ASSIGNMENT OF ANY RIGHTS TO MONEY DUE TO CONTRACTOR UNDER
THIS CONTRACT MUST BE SENT TO THE ATTENTION OF METRO’S CHIEF ACCOUNTANT,
DIVISION OF ACCOUNTS, DEPARTMENT OF FINANCE, 222 THIRD AVENUE NORTH,
SUITE 750, NASHVILLE, TN 37201.

29.          Entire contract.

This contract sets forth the entire agreement between the parties with
respect to the subject matter hereof and shall govern the respective duties and
obligations of the parties.

30.          Force Majeure.

No party shall have any liability to the other hereunder by reason of
any delay or failure to perform any obligation or covenant if the delay or
failure to perform is occasioned by force majeure, meaning any act of God,
storm, fire, casualty, unanticipated work stoppage, strike, lockout, labor dispute,
civil disturbance, riot, war, national emergency, act of Government, act of
public enemy, or other cause of similar or dissimilar nature beyond its
control.  The parties will promptly
inform and consult with each other as to any of the above causes that in their
judgment may or could be the cause of a delay in the performance of this
Contract.

31.          Governing Law.

The validity, construction and effect of this contract and any and all
extensions and/or modifications thereof shall be governed by the laws of the
State of Tennessee.  Tennessee law shall
govern regardless of any language in any attachment or other document that the
Contractor may provide.

 23
 

32.          Venue.

Any action between the parties arising from this agreement shall be
maintained in the courts of Davidson County, Tennessee.

33.          Severability.

Should any provision of this contract be declared to be invalid by any
court of competent jurisdiction, such provision shall be severed and shall not
affect the validity of the remaining provisions of this contract.

34.          Escrow of Source Code.

Contractor shall place in escrow the source code of software as
implemented by Metro including all updates and customizations thereto and
confirm to Metro in writing each time it places any source code in escrow. Metro
will have access to software source code, pursuant to the attached Escrow
Agreement, Exhibit D, or proposed agreement acceptable to Metro.

35.          Effective Date.

This contract shall not be binding upon the parties until it has been
signed first by the Contractor and then by the authorized representatives of
the Metropolitan Government and has been filed in the office of the
Metropolitan Clerk.  When it has been so
signed and filed, this contract shall be effective as of the date first written
above.

	
  THE METROPOLITAN GOVERNMENT OF NASHVILLE AND
  DAVIDSON COUNTY:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchasing Agent: 

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RECOMMENDED:

  	
   

  	
   

  	
   

  	
   

  
	
  Department Head

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Department:

  	
   

  	
   

  	
   

  	
   

  
	
  Metropolitan Nashville Police Department
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPROVED AS TO AVAILABILITY OF FUNDS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Director of
  Finance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPROVED AS TO
  INSURANCE:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Director of
  Insurance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  

 

 24
 

 

	
  APPROVED AS TO FORM AND LEGALITY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  THE METROPOLITAN GOVERNMENT OF NASHVILLE AND
  DAVIDSON COUNTY:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Purchasing
  Agent:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  RECOMMENDED:

  	
   

  	
   

  	
   

  	
   

  
	
  Department Head

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Department:
  Metropolitan Nashville Police Department

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPROVED AS TO AVAILABILITY OF FUNDS:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Director of
  Finance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPROVED AS TO
  INSURANCE:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Director of
  Insurance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  APPROVED AS TO FORM AND LEGALITY:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Metropolitan
  Attorney

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FILED IN THE OFFICE OF THE METROPOLITAN CLERK:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CONTRACTOR:

  	
   

  	
   

  	
   

  	
   

  

 

	
  By:

  	
   

  	
  /s/ Eric Moe

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  General Counsel

  	
   

  	
   

  

 

Sworn to and subscribed
to before me, a Notary Public, this 1st days of  May, 2006 by Eric Moe, the General Counsel of
Contractor and duly authorized to execute this instrument on Contractor’s
behalf.

	
  /s/ Carolyn L. Suber

  	
   

  	
   

  	
   

  	
   

  
	
  Notary Public

  	
   

  	
   

  	
   

  	
   

  
	
  My Commission
  expires

  	
   

  	
  May 30, 2009

  	
   

  	
   

  

 

	
  Date:

  	
   

  	
  May 1, 2006

  	
   

  	
   

  

 

 25

AMENDMENT NO. 2 TO
CONTRACT NO. 16269 BETWEEN

THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY

AND ADVANCED TECHNOLOGY SYSTEMS, INC.

This Amendment is entered
into on this 24th day of October, 2006 by and between THE METROPOLITAN
GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY (“Metro”), a municipal corporation
of the State of Tennessee and ADVANCED TECHNOLOGY SYSTEMS, INC. (ATS) a
Virginia corporation registered and licensed to do business in the State of
Tennessee whose business address is 7915 Jones Branch Drive,
McClean, Virginia 22102.

W I T N E S E T H

WHEREAS, the parties
desire to modify the terms and conditions and to add or delete certain other
terms and conditions to their original agreement dated May 9, 2006,
Metro Contract No 16269, hereinafter the “Contract,” the parties hereby
agree as set forth below:

Bonding Requirements -
Performance Bond

The Contractor must
provide a performance bond in an amount not less than $4,439,266.00.  Metropolitan Government of Nashville and
Davidson County (Obligee) will accept an annual performance bond; however,
neither non-renewal (or cancellation, if applicable) by the Surety, nor failure
or inability of the Principal to file a replacement bond in the event the
Surety exercises its right to not renew this bond, shall itself constitute a
loss to the Obligee recoverable under this bond or any extension thereof. In
the event Contractor’s current Surety does not renew a bond or write a new
bond, the Surety shall provide thirty (30) days advance written notice to
Obligee and Contractor shall provide a bond from another surety.  Failure to provide a bond from another surety
may be treated as a default of a material condition by Metro as to Contractor
so long as any such provision in the bond does not purport to describe any
contractual obligation of the Obligor to the Obligee.”  If any conflict or inconsistency exists
between the Surety’s obligations or undertakings as described in the bond and
this contract, then the terms of the bond shall prevail.

Pursuant to Amendment #4 to
Request For Proposal #05-72, Metro hereby adds Traffic Violations Bureau Scope
to Contract 16269.  Contractor will
provide software, implementation and support services pursuant to requirements
of Amendment #4.  Purchase of traffic
violations software, implementation and support services shall be purchased in
accordance with the terms and conditions under Contract 16269, with exception
to the special conditions listed below. 
In the event of conflict between the conditions listed in this Amendment
and Contract 16269, the conditions listed in this amendment will prevail
for the Traffic Violations implementation only. 
The terms and conditions listed in Contract 16269 are not modified for
the implementation of the Advanced Records Management System.

This amendment consists of the
following documents:

a)                                      Amendment
#4 to Request For Proposal #05-72,

b)                                      Amendment
#5 to Request For Proposal #05-72

c)                                      Contractor’s
response to Amendment #4 to Request For Proposal #05-72,

d)                                      ATS
Best and Final Offer (BAFO), including 1) Appendix C - ATS TVMS BAFOv2, 2) Req
#3 Effort Estimates BAFOv2, 3) BAFO Review Questions 060720 response, 4)
Amcad Standard Maintenance Agreement, and 5) Software License Agreement

In the event of conflicting
provisions, all documents shall be construed according to the following
priorities:

a)                                      Amendment
#4 to Request For Proposal #05-72,

b)                                      Amendment
#5 to Request For Proposal #05-72,

c)                                      ATS
Best and Final Offer (BAFO), including 1) Appendix C - ATS TVMS BAFOv2, 2) Req #3
Effort Estimates BAFOv2, 3) BAFO Review Questions 060720 response, 4) Amcad
Standard Maintenance Agreement, and 5) Software License Agreement and

d)                                      Contractor’s
response to Amendment #4 to Request For Proposal #05-72

SPECIAL CONDITIONS OF AMENDMENT #2 TO CONTRACT
16269

1.             Duties and Responsibilities of Contractor

Upon execution of the
Agreement, Metro and Contractor shall begin work on the Developed Documents as
defined in paragraph 1.02.  The Developed
Documents shall be completed within 90 days. 
When the Developed Documents are completed and agreed to by the parties,
such Developed Documents shall become part of this Agreement by amendment
thereto.

In the event that Metro
and Contractor cannot agree with the Developed Documents, Metro reserves the
right to terminate the Agreement within ten days written notice to Contractor
after delivery of the Developed Documents to Metro.  In the event that the Developed Documents
materially modify Contractor’s Proposal and the material modification is
introduced by Contractor, Metro may reject the Developed Documents, at its sole
option, and be relieved of any obligation in the Agreement and Contractor shall
refund to Metro any payments made to Contractor by Metro under this Agreement.

1.01         Contractor shall provide Metro with a
system and software for an integrated, full-featured Traffic Violations
Management System for the Metropolitan Traffic Violations Bureau. Contractor
shall provide the software set forth in Contractor’s response to Amendment #4
of Request For Proposal 05-72, which is attached hereto and incorporated by
reference herein.  Contractor shall
provide maintenance, support and services for this system software during
delivery, installation and testing. 
Contractor shall provide maintenance, service and support for this
system pursuant to the service and support agreements attached hereto.

1.02         This contract shall have two phases:

Phase I shall
include the development and completion of Developed Documents consisting of:
project work plan; hardware and software schedule; functional specifications;
customization specifications and set-up of a pilot/test environment for
Metro.  These documents shall be known,
collectively, as the “Developed Documents”

i)                                         Metro
and Contractor recognize the critical nature of system performance on the
success of the system installation. 
During Phase I of this Agreement, Contractor and Metro will develop
specifications for hardware, software and network configurations.  With these configurations, Contractor and
Metro will agree to a range of expected system response times for critical
system functions.  Overall, the system
shall be configured such that 95% of all transactions complete within an
acceptable time by Metro and 99% of daily transactions complete within an
acceptable time by Metro.  Transaction
timing is from keyboard transmit to the start of screen response.  These configurations and expected system
response times will be a part of the Phase I deliverable and will
represent a commitment from Contractor to deliver the response times
specified.  If during subsequent phases
of this Agreement, response times exceed the range specified, and Metro can
demonstrate that it has deployed the hardware, software and network equipment
as specified in the Phase I deliverable, then Contractor will be notified
of the response time deficiency. 
Contractor will be given 10 (ten) days to cure the response time
deficiency.  If the response time
deficiency is not cured in that timeframe, Contractor will be responsible for
all cost related to additional equipment, software, or network infrastructure
necessary to bring the response time to the specified level.  If the response time deficiency is not cured
within 30 (thirty) days, Metro will be entitled to liquidated damages in the
amount of $1,000 per day.  Liquidated
damages shall be calculated from the date of notification to Contractor, and
will continue until the response times issue is resolved.

ii)                                      Phase
II shall include the delivery and installation of the equipment and software as
required by this contract and the Developed Documents, the completion of the
software customization and the implementation of network connectivity.  Phase II shall include the provision of
documentation, training and testing, in accordance with the Acceptance Test Plan
within the Developed Documents. The date of acceptance of the system shall be
the business day immediately following the successful acceptance testing of the
system. The parties shall sign a document acknowledging the successful
acceptance testing on the date of acceptance. 
The one year application warranty coverage and post implementation
support period will begin 30 days after the “go-live” date of the system.

1.03         System Acceptance of and Phase II
shall be completed in accordance with the Developed Documents. Completion of
the Project is dependent upon deliverables from both Contractor and Metro.  Should Metro and Traffic Violations Bureau
fail to meet their deliverable dates as defined in the Developed Documents, the
resultant time delay will be added to the completion date.

1.04         Contractor warrants that the software
provided pursuant to this Agreement shall meet the requirements as specified in
Metro’s Request for Proposal and Contractor’s response to Request For Proposal.

1.05         Contractor shall assume the overall
responsibility for the work, including the application, and shall provide the
project management and expertise necessary to complete Phases I and II in a
professional and timely manner in accordance with the Contract and the
Developed Documents

1.06         Contractor will develop a project
control system to control items which directly affect project progress, such as
design change control, resource assignment and allocations, project schedules
and problem/issue escalation and resolution.

1.07         All performance (which includes
services, materials, supplies and equipment furnished or utilized in the
performance of this Contract, and workmanship in the performance of services)
shall be subject to inspection and test by Metro at all times during the term
of this Contract.  Vendor shall provide
adequate cooperation to any inspector assigned by Metro to permit him or her to
determine Vendor’s conformity with the specifications and the adequacy of the
services being provided under this Contract. All inspection by Metro shall be
made in such a manner as not to unduly interfere with Vendor’s performance.

2.             Compensation.

2.01                           Contractor
shall be paid as due in accordance with Contractor’s response to Metro’s
Request For Proposal as described below. No invoice will be considered “received”
until said service is successfully completed and approved by Metro. Travel
expenses are included in the payment schedule below.

2.02         Payment Schedule.

Milestone Payment
Schedule - Milestone Schedule will be pushed back by two weeks from September
25, 2006.

	
   

  	
   

  	
  

  Phase I

  	
   

  	
  Delivery Date

  	
   

  	
  

  Category

  	
   

  	
  

  Effort

  	
   

  	
  

  Amount

  	
   

  
	
  6.1.2.1

  	
   

  	
  Conduct On-Site
  Assessment Completed

  	
   

  	
  10/24/06

  	
   

  	
  Labor

  	
   

  	
  7

  	
  %

  	
  $

  	
  60,257

  	
   

  
	
  6.1.2.3

  	
   

  	
  Deliver Draft
  Update SRS (Functional Spec)

  	
   

  	
  11/17/06

  	
   

  	
  Labor

  	
   

  	
  8

  	
  %

  	
  $

  	
  68,865

  	
   

  
	
  6.1.2.3

  	
   

  	
  Delver Draft
  Work Plan

  	
   

  	
  11/27/06

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.1.2.7

  	
   

  	
  Accept Final SRS
  (Functional Spec) & Work Plan

  	
   

  	
  12/27/06

  	
   

  	
  Labor

  	
   

  	
  8

  	
  %

  	
  $

  	
  68,865

  	
   

  
	
   

  	
   

  	
  Phase I
  Complete

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Initial Software
  Delivery

  	
   

  	
  1/1/07

  	
   

  	
  ODC

  	
   

  	
  30

  	
  %

  	
  $

  	
  153,551

  	
   

  
	
  6.2

  	
   

  	
  Phase II —
  Dev/Test/Imp

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.2.1.2

  	
   

  	
  Approve Message
  Interface Formats

  	
   

  	
  1/26/07

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.3.2.2.6

  	
   

  	
  Delivery Initial
  Training and Test Acceptance Plans

  	
   

  	
  1/26/07

  	
   

  	
  Labor

  	
   

  	
  1

  	
  %

  	
  $

  	
  8,608

  	
   

  
	
  6.2.4.3.2

  	
   

  	
  Design Citation
  Form Component Complete

  	
   

  	
  2/9/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.2.2

  	
   

  	
  Design RMS
  System Complete

  	
   

  	
  2/16/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.3.1.2

  	
   

  	
  Design Web
  Payment System Complete

  	
   

  	
  2/16/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.4.1.2

  	
   

  	
  Design Docket
  Component Complete

  	
   

  	
  2/16/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.5.2

  	
   

  	
  Design POS
  System Complete

  	
   

  	
  2/16/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
   

  	
   

  	
  Initial
  Component Design Complete

  	
   

  	
  2/16/07

  	
   

  	
  Labor

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
  6.2.3.1.3

  	
   

  	
  Develop Web
  Payment System Complete

  	
   

  	
  3/5/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.4.3.3

  	
   

  	
  Develop Citation
  Form Component Complete

  	
   

  	
  3/5/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.4.3.4

  	
   

  	
  Test Citation
  Form Component Complete

  	
   

  	
  3/12/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  6.2.3.1.4

  	
   

  	
  Test Web Payment
  System Compete

  	
   

  	
  3/19/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  6.2.4.1.3

  	
   

  	
  Develop Docket
  Component Complete

  	
   

  	
  3/19/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.5.3

  	
   

  	
  Develop POS
  System Complete

  	
   

  	
  3/19/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
   

  	
   

  	
  Iteration 1
  Complete

  	
   

  	
  3/19/07

  	
   

  	
  Labor

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
  Interim License
  Fees

  	
   

  	
  4/1/07

  	
   

  	
  ODC

  	
   

  	
  20

  	
  %

  	
  $

  	
  102,367

  	
   

  
	
  6.2.4.4.2

  	
   

  	
  Design
  Collection Process Component
  Complete

  	
   

  	
  3/26/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.3.2.2

  	
   

  	
  Design IVR
  System Complete

  	
   

  	
  4/2/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.4.1.4

  	
   

  	
  Test Docket
  Component Complete

  	
   

  	
  4/2/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  6.2.5.4

  	
   

  	
  Test POS System
  Complete

  	
   

  	
  4/2/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  6.2.4.2.2

  	
   

  	
  Design Citation
  Review Component Complete

  	
   

  	
  4/9/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.3.2.3

  	
   

  	
  Develop IVR
  System Complete

  	
   

  	
  4/16/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.2.3

  	
   

  	
  Develop RMS
  System Complete

  	
   

  	
  4/23/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.4.4.3

  	
   

  	
  Develop
  Collection Process Component Complete

  	
   

  	
  4/23/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.6.2

  	
   

  	
  Deliver
  Accounting System

  	
   

  	
  4/23/07

  	
   

  	
  Labor

  	
   

  	
  1

  	
  %

  	
  $

  	
  8,608

  	
   

  
	
   

  	
   

  	
  Iteration 2
  Complete

  	
   

  	
  4/23/07

  	
   

  	
  Labor

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
  1.3.2.2.6

  	
   

  	
  Deliver Final
  Test Acceptance Plan

  	
   

  	
  4/30/07

  	
   

  	
  Labor

  	
   

  	
  1

  	
  %

  	
  $

  	
  8,608

  	
   

  
	
  6.2.3.2.4

  	
   

  	
  Test IVR System
  Complete

  	
   

  	
  4/30/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  6.2.4.2.3

  	
   

  	
  Develop Citation
  Review Component Complete

  	
   

  	
  4/30/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  6.2.4.4.4

  	
   

  	
  Test Collection
  Process Component Complete

  	
   

  	
  4/30/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  6.2.2.4

  	
   

  	
  Test RMS System
  Complete

  	
   

  	
  5/7/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  6.2.4.2.4

  	
   

  	
  Test Citation
  Review Component Complete

  	
   

  	
  5/7/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  4.1.11.5

  	
   

  	
  Deliver Training
  Materials

  	
   

  	
  5/7/07

  	
   

  	
  Labor

  	
   

  	
  1

  	
  %

  	
  $

  	
  8,608

  	
   

  
	
  6.2.7.2

  	
   

  	
  Data Conversion
  Complete

  	
   

  	
  5/14/07

  	
   

  	
  Labor

  	
   

  	
  3

  	
  %

  	
  $

  	
  25,825

  	
   

  
	
  4.1.12.4

  	
   

  	
  Deliver
  Developer Test Results & Imp Schedule

  	
   

  	
  5/14/07

  	
   

  	
  Labor

  	
   

  	
  1

  	
  %

  	
  $

  	
  8,608

  	
   

  
	
   

  	
   

  	
  Iteration 3
  Complete

  	
   

  	
  5/14/07

  	
   

  	
  Labor

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
  Interim License
  Fees

  	
   

  	
  6/1/07

  	
   

  	
  ODC

  	
   

  	
  10

  	
  %

  	
  $

  	
  51,184

  	
   

  
	
  4.1.10.4

  	
   

  	
  Integration,
  System, Performance Testing Complete

  	
   

  	
  5/29/07

  	
   

  	
  Labor

  	
   

  	
  4

  	
  %

  	
  $

  	
  34,433

  	
   

  
	
  5.3

  	
   

  	
  Conduct User
  Training

  	
   

  	
  6/4/07

  	
   

  	
  Labor

  	
   

  	
  4

  	
  %

  	
  $

  	
  34,433

  	
   

  
	
  4.2.4

  	
   

  	
  Deliver
  Functional System Test Results

  	
   

  	
  6/8/07

  	
   

  	
  Labor

  	
   

  	
  2

  	
  %

  	
  $

  	
  17,216

  	
   

  
	
  5.1

  	
   

  	
  Start System
  Support

  	
   

  	
  6/30/07

  	
   

  	
  Labor

  	
   

  	
   

  	
   

  	
  $

  	
  —

  	
   

  
	
   

  	
   

  	
  Final License
  Fees

  	
   

  	
  10/1/07

  	
   

  	
  ODC

  	
   

  	
  40

  	
  %

  	
  $

  	
  204,734

  	
   

  
	
   

  	
   

  	
  Final Payment

  	
   

  	
  10/1/07

  	
   

  	
  Labor

  	
   

  	
  1

  	
  %

  	
  $

  	
  8,608

  	
   

  

 

	
  Monthly
  Payment Schedule

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  October

  	
   

  	
  10/06

  	
   

  	
  $

  	
  60,257

  	
   

  
	
  November

  	
   

  	
  11/06

  	
   

  	
  $

  	
  86,082

  	
   

  
	
  December

  	
   

  	
  12/06

  	
   

  	
  $

  	
  68,865

  	
   

  
	
  January

  	
   

  	
  01/07

  	
   

  	
  $

  	
  162,519

  	
   

  
	
  February

  	
   

  	
  02/07

  	
   

  	
  $

  	
  86,082

  	
   

  
	
  March

  	
   

  	
  03/07

  	
   

  	
  $

  	
  137,731

  	
   

  
	
  April

  	
   

  	
  04/07

  	
   

  	
  $

  	
  326,180

  	
   

  
	
  May

  	
   

  	
  05/07

  	
   

  	
  $

  	
  129,123

  	
   

  
	
  June

  	
   

  	
  06/07

  	
   

  	
  $

  	
  102,833

  	
   

  
	
  July

  	
   

  	
  07/07

  	
   

  	
  $

  	
  —

  	
   

  
	
  August

  	
   

  	
  08/07

  	
   

  	
  $

  	
  —

  	
   

  
	
  September

  	
   

  	
  09/07

  	
   

  	
  $

  	
  —

  	
   

  
	
  October

  	
   

  	
  10/07

  	
   

  	
  $

  	
  213,343

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  $

  	
  1,372,654

  	
   

  

 

 

2.03                           The
total cost for this contract amendment will not exceed $1,372,654.00,
unless properly amended upon completion of Phase I of this amendment.

Contractor:  Advanced Technology Systems

	
  By:

  	
   

  	
  /s/ Eric Moe

  	
      Print/Type name: 

  	
  Eric Moe

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title: 

  	
   

  	
  Vice President Contracts

  	
   

  	
   

  

 

Sworn to and subscribed
before me /s/ Carolyn L. Suber, a Notary Public, this 26th day of October 2006.  My commission expires May 30, 2009.

The Metropolitan Government of
Nashville and Davidson County:

	
  Department:

  	
   

  	
  Approved:

  
	
   

  	
   

  	
   

  
	
  /s/ Name illegible

  	
   

  	
  /s/ Bill Purcell

  
	
   

  	
   

  	
  Bill Purcell, Mayor

  
	
  Police
  Department

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Department:

  	
   

  	
  ATTEST:

  
	
   

  	
   

  	
   

  
	
  /s/ Name illegible

  	
   

  	
  /s/ Marilyn S.
  Swing

  
	
  Traffic
  Violations Bureau

  	
   

  	
  Metropolitan Clerk

  
	
   

  	
   

  	
   

  
	
  Approved:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Jeff Gossage

  	
   

  	
   

  
	
  Jeff Gossage,
  Purchasing Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Approved as to
  availability of funds:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Name illegible

  	
   

  	
   

  
	
  Director of
  Finance

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Approved as to
  form and legality:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/ Name illegible

  	
   

  	
   

  
	
  Metropolitan
  Attorney

  	
   

  	
   

  

 

AMENDMENT
NO. 3 TO CONTRACT NO. 16269 BETWEEN

THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY

AND ADVANCED TECHNOLOGY SYSTEMS, INC.

This Amendment is entered
into on this 27th day of October, 2006, by and between THE METROPOLITAN
GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY (“Metro’), a municipal corporation
of the State of Tennessee, and ADVANCED TECHNOLOGY SYSTEMS, INC

W I T N E S E T H

WHEREAS, the parties desire to
modify the terms and conditions and to add or delete certain other terms and
conditions to their original agreement dated May 9, 2006 (Metro Contract No. 16269),
the parties hereby agree as set forth below:

1.              In
accordance with Section 2 of the Contract, Metro and Advanced Technology
Systems, Inc. hereby acknowledge receipt of and acceptance of the Phase I
Developed Documents (as such term is defined in the Contract) attached hereto,
and the parties hereby acknowledge and agree that delivery and acceptance shall
be deemed to have been made in accordance with the time frames set out in the
Contract.  Phase I Developed
Documents consist of the following:

·                  Architectural Specifications v1-1

·                  Functional Specifications vl-1r1

·                  MNPD Master Test and Acceptance Plan v1-1

·                  Optional Customizations Not Included in BAFO

·                  Phase II Workplan v1-1

·                  Section 4 - RTM v5

·                  Training Strategy and Logistics Plan v1r3

2.              Phase I
Developed Documents contain “Optional Customizations Not Included in BAFO”
(copy attached) which identifies certain enhancements that are desired by
Metro.  The additional functional
requirements identified in the “Optional Customizations” are hereby made a part
of the contract.  Additional costs to
Metro are $299,580.

3.              Except
for the foregoing, the remaining terms and conditions of the Contract remain in
full force and effect.

4.              This
Amendment shall not be binding upon the parties until it has been signed first
by Advanced Technology Systems, Inc., then by the representatives of Metro, and
has been filed in the Office of the Metropolitan Clerk.  When it has been so signed and filed, this
Amendment shall be effective as of the date first written above.

Contractor:

	
  By:

  	
   

  	
  /s/ Eric Moe

  	
   

  	
  Print/type name:

  	
   

  	
  Eric Moe

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
  VP of Contracts

  	
   

  	
   

  	
   

  	
   

  

 

Sworn
to and subscribed before me /s/ Carolyn S. Suber, a Notary Public, this 27th day of November 2006.  My commission expires May 30, 2009.

The Metropolitan Government of Nashville and Davidson County:

	
  Approved:

  	
   

  	
  Approved:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Jeff Gossage

  	
   

  	
  /s/ Bill Purcell

  	
   

  	
   

  
	
  Jeff Gossage,
  Asst. Director of Finance

  	
   

  	
  Bill Purcell, Mayor

  	
   

  	
   

  
	
  Purchasing and
  Contract Management

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Approved:

  	
   

  	
  ATTEST:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Name illegible

  	
   

  	
  /s/ Marilyn S.
  Swing

  	
   

  	
   

  
	
  Metropolitan
  Police Department

  	
   

  	
  Metropolitan Clerk

  	
   

  	
  1/02/2007

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Approved as to
  availability of funds:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Name illegible

  	
   

  	
   

  	
   

  	
   

  
	
  Director of
  Finance

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Approved as to
  form and legality:

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  /s/ Name illegible

  	
   

  	
   

  	
   

  	
   

  
	
  Metropolitan
  AttorneyExhibit 10.13

 

 

DEED OF LEASE

BETWEEN

WEST*GROUP
PROPERTIES LLC

(Landlord)

AND

ADVANCED TECHNOLOGY SYSTEMS, INC.

(Tenant)

 

 

AMHERST BUILDING

7915 Jones Branch
Drive

McLean, Virginia 22102

Date:  June 22, 1998

 

TABLE OF CONTENTS

	
  

  	
   

  	
  

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I

  	
   

  	
  BASIC LEASE INFORMATION AND DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II

  	
   

  	
  DEMISING OF PREMISES

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III

  	
   

  	
  PARKING

  	
   

  	
  3

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV

  	
   

  	
  IMPROVEMENTS

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V

  	
   

  	
  COMMENCEMENT DATE; DELIVERY OF PREMISES

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI

  	
   

  	
  RENT

  	
   

  	
  6

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII

  	
   

  	
  DEPOSIT

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII

  	
   

  	
  SERVICES OF LANDLORD

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX

  	
   

  	
  OPERATING COSTS

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X

  	
   

  	
  ALTERATIONS

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI

  	
   

  	
  REPAIRS

  	
   

  	
  14

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII

  	
   

  	
  CONDUCT OF BUSINESS BY TENANT

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII

  	
   

  	
  INSURANCE AND INDEMNITY

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV

  	
   

  	
  DESTRUCTION OF PREMISES

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV

  	
   

  	
  CONDEMNATION

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XVI

  	
   

  	
  ASSIGNMENT AND SUBLETTING

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XVII

  	
   

  	
  FINANCING AND SUBORDINATION

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XVIII

  	
   

  	
  DEFAULT OF TENANT

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIX

  	
   

  	
  ACCESS BY LANDLORD

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XX

  	
   

  	
  SURRENDER; HOLDING OVER

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XXI

  	
   

  	
  NOTICES

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XXII

  	
   

  	
  HAZARDOUS MATERIALS

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XXIII

  	
   

  	
  MISCELLANEOUS

  	
   

  	
  35

  

 i
 

EXHIBITS

	
  EXHIBIT A

  	
   

  	
  LAND

  	
   

  	
  Attached

  	
   

  
	
  EXHIBIT
  B

  	
   

  	
  FORM OF COMMENCEMENT
  NOTICE

  	
   

  	
  Attached

  	
   

  
	
  EXHIBIT
  C

  	
   

  	
  RULES AND REGULATIONS

  	
   

  	
  Attached

  	
   

  
	
  EXHIBIT D

  	
   

  	
  FORM LETTER OF CREDIT

  	
   

  	
  Attached

  	
   

  

 

 ii

 

DEED OF LEASE

THIS DEED OF LEASE (“Lease”) is made and entered into as of the 22nd
day of June, 1998, by and between WEST*GROUP PROPERTIES LLC, a Virginia limited
liabi1ity company (“Landlord”), and ADVANCED TECHNOLOGY SYSTEMS, INC., a
Virginia corporation (“Tenant”)

ARTICLE I

BASIC LEASE INFORMATION AND DEFINITIONS

The terms used in this Lease shall have the meanings set forth below.

A.            Premises:  The entire Building.

B.            Building:  The building located on the Land, commonly
known as the Amherst Building, having an address of 7915 Jones Branch Drive,
McLean, Virginia 22102.

C.            Land:  That certain parcel of real property located
in WEST*PARK Office Park, as shown on Exhibit A attached hereto.

D.            Project:  The Land, the Building, and all other
improvements located on the Land.

E.             Common Areas:  The sidewalks, parking areas and other areas
located on the Land other than the Building.

F.             Commencement
Date:  February 1, 1999, subject to
the requirements of Article V hereof.

G.            Expiration Date:  The last day of the month in which the tenth (10th) anniversary of the
Commencement Date occurs.

H.            Term:  Approximately ten (10) years, beginning on
the Commencement Date and ending on the Expiration Date, unless earlier
terminated as provided herein.

I.              Rent:  Base Rent and Additional Rent.

J.             Base Rent:  Two Million One Hundred Sixty-One thousand
Five Hundred and NO/100 Dollars ($2,161,500.00) per annum ($180,125.00 per
month), subject to increase pursuant to Article VI hereof.

K.            Deposit:  One Hundred Eighty Thousand One Hundred
Twenty-Five and NO/100 Dollars ($180,125.00), to be held by Landlord in
accordance with Article VII hereof; however, the Deposit shall be reduced to
One Hundred Thousand and NO/100 Dollars ($100,000.00) after the fifth (5th)
anniversary of the Commencement Date, provided that Tenant shall not have
committed a Default prior thereto.

L.             Broker:  Laughlin Commercial.

M.           Area of the
Building:  One hundred thirty-one
thousand (131,000) square feet.

N.            Tenants Pro Rata
Share:  One hundred percent (100%).

O.            Permitted Use:  General office purposes.

P.             Landlord’s Address for Notice:

WEST*GROUP PROPERTIES LLC

c/o G.T. Halpin

1600 Anderson Road

McLean, VA 22102

with a copy to:

WEST*GROUP MANAGEMENT LLC

ATTN:  General Counsel

1600 Anderson Road

McLean, VA 22102

Q.            Landlord’s Address for Payment:

WEST*GROUP PROPERTIES LLC

c/o WEST*GROUP MANAGEMENT
LLC —Accounting Dept.

1600 Anderson Road

McLean, VA 22102

R.            Tenant’s Address for Notice:  At the Premises;

with
a copy to:

Bruce L. Christman, Esq.

Hazel & Thomas, P.C.

3110 Fairview Park Drive, Suite 1400

Falls Church, VA 22042

ARTICLE II

DEMISING OF
PREMISES

Landlord hereby leases and demises the Premises to Tenant for the Term, and Tenant hereby leases
and rents the Premises from Landlord for the Term, together with the right to
use

 2
 

the
Common Areas, subject to the terms, covenants and conditions contained herein,
and also subject to all deeds of trust, mortgages, easements, covenants,
restrictions, agreements, governmental ordinances and other encumbrances now or (subject to
Article XVII hereof) hereafter
affecting the Project. Subject to the foregoing, and provided that Tenant is
not in Default, Landlord hereby covenants and warrants that Tenant shall have
peaceful and quiet enjoyment of the Premises during the Term.

ARTICLE III

PARKING

Tenant, and its
agents, employees, clients, customers, licensees and invitees, shall have the
exclusive right (except as otherwise set forth herein) to park their automotive
vehicles in the parking spaces serving the Project; however, notwithstanding
the foregoing, Landlord and its agents, employees and contractors, shall have
the right to use the parking spaces serving the Project when such parties are
performing activities associated with the Project.

ARTICLE IV

IMPROVEMENTS

Except as otherwise provided herein, Tenant shall accept the Premises
in “as-is” condition.  As soon as
reasonably practicable after the Commencement Date, Landlord shall remove the
existing sign on the facade of the Building, and the existing communications
equipment on the roof of the Building, and shall restore the facade and roof as
Landlord deems necessary or desirable. 
Except as otherwise expressly set forth in this Lease, Landlord shall
not be obligated to make any other repairs, alterations or improvements in or
to the Premises, except as may be required by law or other governmental authority as a prerequisite to obtaining a
nonresidential use permit for the Premises.

ARTICLE V

COMMENCEMENT DATE; DELIVERY OF PREMISES

Section
5.01.  Commencement Date.  The Commencement Date shall be the date set
forth in Section 1.01.F hereof.

Section
5.02.  Commencement Notice.  Once Tenant has taken possession of the
entire Building pursuant to Section 5.03 hereof, Landlord and Tenant shall
execute a Commencement Notice in the form attached hereto as Exhibit B;
provided, however, that Landlord’s failure to prepare and present the
Commencement Notice to Tenant, or Tenant’s failure to execute the same, shall
not diminish the effectiveness of this Lease, nor affect either party’s
liability hereunder.

 3
 

Section
5.03.  Partial Occupancy by Tenant.  Except as otherwise provided in this Section
5.03, if BDM (hereinafter defined) fails to vacate, prior to February 1, 1999,
any portion of the Premises demised under the BDM Lease (hereinafter defined),
then this Lease and the terms hereof shall apply only to the portion of the
Premises which BDM does not occupy as of the Commencement Date, and the amount
of Rent due hereunder shall be proportionately adjusted to reflect the portion
of the Premises not occupied by BDM. 
This Lease and the terms hereof shall apply to the entire Premises
effective as of the date on which BDM has vacated the entire Building, and
Tenant shall thereupon be liable for the entire amount of Rent due hereunder in
accordance with the terms of Article VI hereof. 
Notwithstanding the foregoing, in the event BDM remains in a portion of
the Premises after January 31, 1999 pursuant to a sublease between Tenant and
BDM, then, effective as of February 1, 1999, the Lease and the terms hereof
(including the amount of Rent due hereunder) shall, also apply (as between
Landlord and Tenant) to the portion of the Premises subleased by BDM. For
purposes hereof, the term “BDM shall refer to BDM International, Inc. (or any
successor thereto), being the tenant under that certain lease, dated February
4, 1976, as amended (the “BDM Lease”),
between BDM and Landlord,
whereby BDM leased the Building from Landlord.

Section
5.04.  Occupancy.  Occupancy of the Premises, or any portion
thereof, by Tenant during the Term shall be conclusive evidence that Tenant (a)
has accepted the Premises as being in a good and satisfactory condition (except
for any punchlist items or latent defects), and (b) has accepted the Common
Areas as being in good and satisfactory condition.

Section
5.05.  Expiration of Lease Between Landlord and
BDM.  Landlord agrees to notify BDM
at least thirty (30) days prior to the expiration date (i.e., January 31, 1999)
of the BDM Lease that BDM shall
be required to vacate and surrender to Landlord, on or before January 31, 1999, the premises demised under
the BDM Lease. In the event BDM fails to vacate, by January 31, 1999, a portion
of the Premises which BDM is not otherwise permitted to occupy pursuant to a
sublease between Tenant and BDM, then, upon Tenant’s written request, Landlord
shall promptly initiate an action to evict BDM from such portion of the
Premises, and shall thereafter diligently prosecute such action until BDM shall
have either vacated, or been evicted from, the Premises.

Section
5.06.  Non-Residential Use Permit.  Landlord agrees to obtain, at Landlord’s
expense, a non-residential use permit for the Premises prior to the
Commencement Date.  However, if Landlord
fails to obtain a non-residential use permit prior to the Commencement Date,
and, as a result thereof, Tenant is denied the right to occupy any portion of
the Premises, then this Lease and the terms hereof shall not apply to the
portion of the Premises which Tenant does not yet have the right to occupy, and
the amount of Rent due hereunder shall be proportionately adjusted to reflect
the portion of the Premises not occupied by Tenant, until such time as Landlord
has obtained a non-residential use permit for such portion of the Premises.  In order to facilitate Landlord’s ability to
timely obtain a non-residential use permit pursuant to this Section 5.06,
Tenant agrees not to initiate, engage in, or apply for a building permit for,
the construction or demolition of any improvements in the Premises, until after
Landlord has obtained the non-residential use permit.  Tenant
acknowledges that the nonresidential use permit obtained by Landlord pursuant
to this Section 5.06 shall provide for the same permitted use, as defined in
the Fairfax County Zoning Ordinance, as is set forth in the nonresidential use
permit for the Building in effect as of the date of this Lease.

 4
 

ARTICLE VI

RENT

Section
6.01.  Base Rent.  Tenant hereby covenants and agrees to pay
Landlord Base Rent, in equal monthly installments, in advance, on the first day
of each calendar month during the Term; provided, however, that the first
monthly installment shall be paid in advance on the date Tenant executes this
Lease, and shall be applied to the first monthly installment of Base Rent due
hereunder.

Section
6.02.  Base Rent Escalation.  On the first (1st) anniversary of the
Commencement Date and on each anniversary thereafter during the Term (each of
such dates being hereinafter referred to as an “Adjustment Date”), the Base
Rent shall be increased in accordance with the following schedule:

	
  2nd Year of Term

  	
   

  	
  $2,226,345.00

  	
   

  	
  ($185,528.75 per month)

  	
   

  
	
  3rd Year of Term

  	
   

  	
  $2,293,135.00

  	
   

  	
  ($191,094.59 per month)

  	
   

  
	
  4th Year of Term

  	
   

  	
  $2,361,929.00

  	
   

  	
  ($196,827.42 per month)

  	
   

  
	
  5th Year of Term

  	
   

  	
  $2,432,787.00

  	
   

  	
  ($202,732.25 per month)

  	
   

  
	
  6th Year of Term

  	
   

  	
  $2,636,770.00

  	
   

  	
  ($219,730.84 per month)

  	
   

  
	
  7th Year of Term

  	
   

  	
  $2,846,874.00

  	
   

  	
  ($237,239.50 per month)

  	
   

  
	
  8th Year of Term

  	
   

  	
  $2,932,280.00

  	
   

  	
  ($244,356.67 per month)

  	
   

  
	
  9th Year of Term

  	
   

  	
  $3,020,248.00

  	
   

  	
  ($251,687.34 per month)

  	
   

  
	
  10th Year of Term

  	
   

  	
  $3,110,856.00

  	
   

  	
  ($259,238.00 per month)

  	
   

  

 

The
Base Rent, as adjusted, shall be due and payable as of such Adjustment Date and
on the first (1st) day of each month thereafter until the next Adjustment Date
or the end of the Term, as applicable.

Section
6.03.  Definitions and Payments.  All sums of money required to be paid by
Tenant under this Lease other than Base Rent shall be deemed “Additional Rent”,
and all remedies applicable to the non-payment of Base Rent shall apply
thereto. All Rent shall be paid without prior notice or demand therefor, and
without any counterclaim, set-off, deduction, recoupment, credit or defense, it
being understood and agreed that Tenant’s covenant to pay the Rent is
independent of the obligations of Landlord hereunder.  Any Additional Rent due as a result of a
default by Tenant shall be deemed payable on the first day of the month next
following such default, except as otherwise provided in this Lease.  Any partial payment by Tenant of an
outstanding obligation hereunder shall be credited against the earliest due
installment of such obligation.  No
endorsement or statement on any check or letter or other communication
accompanying a check for payment of any Rent shall be deemed an accord and
satisfaction, unless otherwise expressly agreed to in writing by Landlord.  No receipt or acceptance by Landlord of any
sums shall be deemed a waiver of any Tenant default. If the Term begins on a
day other than the first day of a calendar month or ends on a day other than
the last day of a calendar month, then the Rent for such month(s) shall
be prorated accordingly.  Tenant’s
obligation to pay Rent during the Term shall survive the expiration of this
Lease.

 5
 

Section 6.04.  Late Payment Charges and Interest.  Tenant shall pay a late charge of five
percent (5%) of the amount of any payment
of Rent not paid within five (5) days after having received a delinquency notice therefor (which notice may
be sent via regular mail and need not be sent in the manner required by
Article XXI hereof). In addition
to the foregoing late charge, any payment of Rent not paid within five (5) days after the due date shall incur
interest from the due date until paid at the rate (“Interest Rate”) of four
percent (4%) above the prime rate of interest from time to time publicly
announced by NationsBank, or any successor thereof; provided, however, that the
Interest Rate shall not exceed the maximum rate permitted under applicable
state or federal laws.

ARTICLE VII

DEPOSIT

Tenant shall pay the Deposit to Landlord upon execution of this Lease
as security for the faithful performance by Tenant of the terms of this Lease.
The Deposit may, in Tenant’s discretion, be paid by letter of credit, in form
attached hereto as Exhibit D.  The
Deposit shall not constitute Rent for any period.  Landlord shall have the right to commingle
the Deposit with other funds held by Landlord. Landlord may apply all or part
of the Deposit on account of a Tenant Default, whereupon Tenant shall be required
to restore the resulting deficiency in the Deposit within five (5) days after Landlord notifies Tenant of the application thereof.  Provided that Tenant shall not have committed
a Default prior to the fifth (5th) anniversary of the Commencement Date,
Landlord shall return to Tenant, upon Tenant’s written request, a portion of
the Deposit, in the amount of $80,125.00, whereupon the total amount of the
Deposit shall be $100,000.00 (or, if the Deposit is in the form of a letter of
credit, the letter of credit shall be amended to reflect the reduced amount). The
remainder of the Deposit, without
interest, shall be repaid to Tenant after the termination of this Lease,
provided Tenant shall have made all payments and performed all obligations required hereunder.

ARTICLE VIII

SERVICES OF LANDLORD; UTILITIES

Section
8.01.  HVAC Service.  Landlord shall provide heat or air conditioning service (as appropriate) to
the Building during the Term.  The hours
of operation of such service shall be determined by Tenant.  If Tenant desires to make any change in hours of operation of such
service, Tenant shall so inform
Landlord in writing, and Landlord shall thereupon make the appropriate adjustments to the HVAC system to effect such change.  Tenant shall reimburse Landlord, as an Operating Cost, for any costs incurred by Landlord in changing the hours of operation of such service.

Section 8.02.  Electric
Service.  Tenant shall be
responsible for making arrangements
directly with the appropriate utility supplier for obtaining electric service to the Premises, and shall be
liable for all costs (including any
initial set-up fees) associated with the delivery of such service

 6
 

to
the Premises.  The cost of having
electric service delivered to the Premises shall not constitute an Operating
Cost pursuant to Article IX hereof, but, rather, shall be a direct cost for
which Tenant shall be solely liable effective upon the commencement of the
Term.

Section
8.03.  Other Utility Services.  Landlord shall furnish Tenant, during the Term,
with the following services seven (7) days per week, twenty-four (24) hours per
day, three hundred sixty-five (365) days per year: water, sewer, and public
lavatory facilities and supplies. Landlord shall furnish Tenant, during the
Term, with janitorial services Monday through Friday, except Holidays. For
purposes hereof, “Holidays” shall refer to New Year’s Day, President’s Day,
Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas Day.

Section
8.04.  Regulations; Discontinuation of Services.

Landlord’s
obligation to furnish utility services pursuant to this Article VIII shall be
subject to the rules and regulations of the supplier of such utility services
and the rules and regulations of any governmental authority regulating suppliers
of such utility services. No failure to furnish, nor any stoppage of, the
services referred to in this Article VIII resulting from any cause shall make
Landlord liable in any respect for damages to any person, property or business,
or be construed as an eviction of Tenant, or entitle Tenant to any relief from
any of Tenant’s obligations under this Lease. 
Notwithstanding the foregoing, if the water, HVAC or electric service to
the Premises is discontinued for more than three (3) consecutive business days
for reasons solely within Landlord’s control, and if, as a result thereof,
Tenant is unable to conduct its business in the Premises, then Landlord shall
abate Rent every day thereafter until such service is restored.

Section
8.05.  Access to Premises.  Tenant shall have access to the Project
twenty-four (24) hours per day, seven (7) days per week, three hundred
sixty-five (365) days per year.  Access
to the Building shall be governed by the pre-existing electronic
key-card entry system serving the Building
prior to the date hereof.  All costs and fees, including but not limited to maintenance and monitoring fees, associated
with the entry system shall constitute Operating
Costs.

ARTICLE IX

OPERATING COSTS

Section
9.01.  Tenant’s Operating Costs Payment.  Tenant shall pay, as Additional Rent, the
amount (“Tenant’s Operating Costs Payment”) by which Tenant’s Pro Rata Share of
Operating Costs (as hereinafter defined) exceeds the Base Operating Costs (as
hereinafter defined), such amount to be calculated and paid as follows:

A.            On or before April 1
of the 2000 calendar year and each calendar year thereafter, Landlord shall
furnish Tenant with an estimate (“Estimate”) of Tenant’s Operating Costs
Payment for the then current calendar year. On the first day of each month
during such year, Tenant shall pay to Landlord one-twelfth (1/12th) of Tenant’s Operating
Costs Payment, as shown on the
Estimate.  For the period extending from the beginning of the
calendar year to the date Landlord delivers the Estimate to Tenant, Tenant
shall continue to pay Tenant’s Operating

 7
 

Costs
Payment payable for the previous year. 
After receiving the Estimate, Tenant shall promptly pay to Landlord the
difference (if any) between the amount due for the current calendar year (as
set forth in the Estimate), and the amount Tenant had actually paid for such
year. If Landlord determines, in its reasonable discretion, that an Estimate
for the current year is inaccurate, Landlord shall have the right to adjust
such Estimate.

B.            On or before April 1
of each calendar year during which Tenant’s Operating Costs Payment is due, Landlord shall furnish Tenant
with a statement of the actual Operating
Costs for the previous calendar year. 
Within thirty (30) days after Landlord’s delivery of such statement, Tenant shall make a lump sum payment to
Landlord in the amount (if any) by which Tenant’s Operating Costs Payment
for the subject calendar year, as shown
on Landlord’s statement,
exceeds the aggregate of the monthly installments of Tenant’s Operating Costs Payments paid during such calendar year.  If Tenant’s Pro Rata Share of Operating Costs
is less than the aggregate of the monthly installments paid by Tenant during
such calendar year, then Landlord shall apply such amount to the next
installment(s) of Rent due hereunder until fully credited to Tenant, or
shall refund such amounts upon
expiration of this Lease.

Section 9.02.  Operating Costs; Taxes.

A.            (i)            The tern “Operating Costs” shall refer to all
expenses, costs and disbursements which Landlord pays or incurs in connection
with the operation, management, repair and maintenance of the Project, unless expressly excluded
pursuant to this Section 9.02.  All
Operating Costs shall be determined according to generally accepted accounting
principles which shall be consistently applied. 
Operating Costs shall include, but not be limited to, the
following:  (a) Wages, salaries, benefits
and fees of personnel or entities engaged in the operation, repair,
maintenance or security of the Project; (b)
Cost of all service agreements for maintenance,
janitorial services, access control, alarm service, window cleaning, elevator
maintenance and landscaping for the Project; (c) All utilities for the Project
other than electricity; (d) Cost of all insurance for the Project which
Landlord may carry from time to time, together with all appraisal and
consultants’ fees in connection with such insurance; (e) All Taxes (as
hereinafter defined); (f) Legal and accounting costs incurred by Landlord or paid by Landlord to third
parties (other than legal fees with respect to disputes with individual
tenants, negotiations of tenant leases, or operating the entity which
constitutes the Landlord); (g) Cost of non-capitalized repairs and general
maintenance of the Project; (h) Project management office rent or rental value;
(i) A management fee (not to exceed five percent (5%) of Rent and all other
receivables due to Landlord pursuant to the terms of this Lease) and all items
reimbursable to the Project manager, if any, pursuant to any management
contract for the Project; and (j) Cost of capital improvements
(amortized on a straight-line basis over the useful life of the capital
improvement) which are (1) for the purpose of reducing Operating Costs, (2) required by any governmental authority,
or (3) considered to be operating costs (notwithstanding their capital nature) under generally accepted accounting
principles.  If any amounts comprising
Operating Costs are incurred not just with respect to the Project, but also
with respect to one or more other buildings outside the Project, then Landlord
shall reasonably allocate such amounts between the Project and such other
buildings or areas.  There shall be no
duplication of costs or reimbursement.

 8
 

(ii)           “Operating Costs”
shall not include (a) expenses for which Landlord is reimbursed by an insurer,
condemnor, warrantor or tenant; (b) expenses incurred in leasing or procuring tenants for the Project (including lease commissions,
advertising expenses and expenses of renovating space for tenants); (c)
interest or amortization payments on any mortgages or debts; (d) costs of any
services sold or provided to tenants other than Tenant; (e) costs or fees
relating to the defense of Landlord’s title or interest in the
Land; (f) the cost of capital improvements other than those expressly permitted
in the preceding paragraph; (g) administrative costs of operating the entity
which constitutes the Landlord; (h) compensation paid to officers of Landlord
or officers of the management agent who do not perform property management
related activities; (i) interest or penalties arising by reason of Landlord’s
failure to timely pay any expenses; and (j) costs incurred
to remove any Hazardous Substances, unless the presence thereof is due to the
acts or omissions of Tenant, or its
agents, employees, contractors,
licensees or invitees.

B.            The term “Taxes”
shall mean (i) all taxes, assessments, and other governmental charges
applicable to or assessed against the Project, or any portion thereof, or
applicable to or assessed against Landlord’s personal property used in
connection therewith, whether federal, state, county or municipal, and whether
assessed by taxing districts or authorities presently taxing the Project, or by
other taxing authorities subsequently created, (ii) any expenses incurred by
Landlord in contesting any taxes or the assessed valuation of all or any part
of the Project, and (iii) any charge which is based upon rents from the Project
(such as a gross receipts tax), or the transactions represented by leases or
the occupancy or use of the Project. 
Taxes shall not include: (i) income or net profits taxes, unless
the same are substituted for real estate taxes, (ii) transfer taxes assessed
against Landlord or the Project, (iii) penalties or interest on any late
payments of Taxes by Landlord, (iv) personal property taxes of tenants in the Project,
and (v) net worth or franchise taxes.

C.            The term “Base
Operating Costs” shall refer to all Operating Costs accruing during the 1999
calendar year (“Base Year”).

Section
9.03.  Gross-Up of Certain Operating Costs.  If
the Building is not fully occupied during any full or fractional year of the
Term (including the Base Year), the Operating Costs for services which vary
based upon the level of occupancy in the Building (e.g., water service) shall
be adjusted for such year to an amount which Landlord reasonably estimates
would have been incurred if the Building had been fully occupied.

Section
9.04.  Tenant’s Right to Audit.  Tenant shall have the right to audit Landlord’s
statement of Operating Costs. Tenant must commence its audit within thirty (30)
days after receipt of the statement and shall complete its audit within one
hundred eighty (180) days after receipt of the statement.  The cost of any such audit shall be paid by
Tenant, except that, if it is determined on the basis of such audit (or if, in
accordance with the following provisions, it is otherwise ultimately
determined) that the amount of Tenant’s obligations for Operating Costs for any
calendar year was overstated by more than ten percent (10%), then the
reasonable cost of the audit shall be paid by Landlord. Landlord shall refund
to Tenant any overpayment for the calendar year in question within thirty (30)
days after the amount of the overpayment has been established by the audit or
as otherwise provided in this Section 9.04. 
If Tenant fails to exercise its right of audit within the thirty (30)
day period, the amount of Tenant’s obligations for

 9
 

Operating
Costs shall be conclusively established as the amount set forth in the
statement,. If, however, Tenant timely exercises its right of audit, the amount
of Tenant’s obligations for Operating Costs shall be conclusively established
as the amount determined by such audit unless, within ninety (90) days after
receipt of a report of the same from Tenant’s auditors, Landlord, at its
expense, shall contest the amount thereof, in which event Tenant shall be
entitled to pursue any legal remedies it may have to finally ascertain the
amount thereof and, if appropriate, a refund on account thereof.

ARTICLE X

ALTERTIONS

Section
10.01.  Alterations.  Tenant shall not make any alterations,
repairs or improvements in or to the structural components of, or building
systems in,
the Premises, or which would
require Landlord to make additional alterations, repairs or improvements in or
to the Premises or the Building, without Landlord’s prior written consent,
which Landlord may withhold, condition or delay in Landlord’s sole and absolute discretion.  Tenant shall not make any other types
of alterations, repairs or improvements in or to the Premises without Landlord’s
prior written consent, which Landlord shall not unreasonably withhold,
condition or delay. Notwithstanding the foregoing,
Tenant shall have the right to make decorative alterations or to rearrange
trade fixtures without obtaining
Landlord’s prior consent.

Section
10.02.  Mechanic’s Liens.  If a mechanic’s lien is filed against the
Premises or the Project, or any interest
therein, as a result of any services, labor or materials provided (or claimed to have been provided) on Tenant’s behalf,
Tenant shall (i) upon receiving notice thereof, immediately notify
Landlord of such lien, and (ii) within fifteen (15) days after receiving notice
(from Landlord or any other source) of the filing of any such lien, discharge
and cancel such lien by payment or bonding, in accordance with the laws of the
Commonwealth, at Tenant’s sole cost and expense.

Section
10.03.  Removal.  All leasehold improvements and alterations
made to the Premises shall be Landlord’s property (except for Tenant’s moveable
trade fixtures, which shall be
Tenant’s property), and shall
not be removed from the Premises during the Term. Upon the expiration of
the Term, Tenant shall, at Tenant’s
expense, remove from the Premises (i) any leasehold improvements and alterations which Landlord
directed Tenant to remove at the time Landlord approved the same, and (ii) all
of Tenant’s decorative alterations and moveable trade fixtures. Tenant shall
promptly repair, or reimburse Landlord for the cost of repairing, any damage to
the Premises caused by such removal.

 10

 

ARTICLE XI

REPAIRS

Section
11.01.  By Landlord.  Except as expressly otherwise set forth
herein, Landlord shall perform all maintenance and shall make all repairs and replacements to the Project.  In addition to Tenant’ s obligation to
reimburse Landlord for
maintenance, repairs and replacements
pursuant to Article IX hereof, Tenant shall reimburse Landlord for the
cost of (a) all repairs and replacements to the Premises performed by Landlord
at the request of Tenant (i.e., those
repairs and replacements which Landlord is not otherwise required to perform pursuant to the terms of this Lease),
and (b) all repairs and replacements to
the Project which are necessitated as a result of the acts or omissions of
Tenant, or its agents, employees, contractors, licensees or invitees. Amounts
payable by Tenant pursuant to this Section 11.01 shall be due and payable
within ten (10) days after receipt of an invoice therefor from Landlord.
Landlord has no obligation and has made no promise to maintain, alter, remodel,
improve, repair, decorate or paint the Premises, except as expressly set forth
in this Lease. In no event shall Landlord have any obligation to maintain,
repair or replace any movable trade fixtures or personal property of Tenant.

Section
11.02.  By Tenant.  Subject to Landlord’s obligations pursuant to
the terms of this Lease, Tenant shall keep the Premises in good order, and in a
safe, neat and clean condition. Unless expressly authorized elsewhere in this
Lease, Tenant shall not perform any
maintenance or repair work or make
any replacement in or to the Premises, but rather shall promptly notify
Landlord of the need for such
maintenance, repair or replacement so that Landlord may proceed to
perform the same.

Section 11.03.  Extraordinary Repairs to HVAC System.

Notwithstanding Tenant’s
obligation to pay for maintenance and repair of the Building systems pursuant to Article IX of this Lease,
Landlord shall pay for any extraordinary costs associated with the HVAC system
serving the Building.  For purposes hereof,
“extraordinary costs” shall refer to the cost of replacing the HVAC system or
any major components thereof, or the cost of overhauling the system, but shall
expressly exclude the cost of routine or preventive maintenance of the system,
or the cost of replacing expendable components (e.g., filters, refrigerant,
oil) which are routinely replaced as part of Landlord’ s general maintenance
program.

ARTICLE XII

CONDUCT OF BUSINESS BY TENANT

Section
12.01.  Use of Premises.  Tenant (and any sublessee or assignee
of Tenant) shall use and occupy the Premises during the Term solely for the
Permitted Use set forth in Article I hereof and for no other purpose. The
Premises shall not be used for the storage of personal property (other than as
may be incidental to the conduct of its business) unless expressly permitted by
the terms of this Lease. Tenant shall procure and maintain, at Tenant’s
expense, any governmental licenses or permits which may be required for the
proper and lawful conduct of Tenant’s

 11
 

business
in the Building (other than the non-residential use permit, which shall
be obtained by Landlord at Landlord’ s expense pursuant to Section 5.06 hereof).

Section 12.02.  Operation of Business.  Tenant covenants and agrees that, in the operation of its business
within the Premises, Tenant shall (a)
pay before delinquency all taxes, assessments and public charges levied,
assessed or imposed upon Tenant’s business, Tenant’s leasehold interest, or
Tenant’s fixtures, furnishings or equipment in the Premises, and pay when due
all such license fees, permit fees and similar charges for Tenant’s conduct of
business in the Premises; (b) observe the Rules and Regulations attached
hereto as Exhibit C, and all other reasonable rules and regulations
established by Landlord from time to time, provided Tenant shall be given
written notice thereof (the delivery of which need not conform to the
requirements of Article XXI hereof); and (c) not use any space outside the
Premises for storage or any other undertaking (other than parking pursuant to
Article III hereof).

Section
12.03.  Care of Premises. 
Tenant shall not move any safe, heavy machinery, heavy equipment or
fixtures into or out of the Premises without Landlord’s prior written consent,
which shall not be unreasonably withheld, conditioned or delayed.  Tenant agrees that it will not place a load
on the floor which exceeds the maximum live load of 100 pounds per square foot,
and will not install, operate or maintain in the Premises any heavy equipment,
except in such manner as to achieve a proper distribution of weight.

Section
12.04.  Signage.  To the extent legally permitted, so long as
Tenant leases the entire Building, Tenant shall have the exclusive right to
install a sign on the Building, in a location mutually acceptable to Landlord
and Tenant.  Tenant shall coordinate the
installation of the sign with Landlord’s property manager, and shall perform
the installation in accordance with Landlord’s guidelines. The installation of
the sign shall be completed in a workmanlike manner and in accordance with all
applicable laws and regulations.  Tenant
shall be solely responsible for obtaining any permits or licenses necessary to
install the sign, and shall
indemnify Landlord for any costs which Landlord might incur due to the installation
or maintenance thereof. Tenant shall cause its general liability and casualty
policies to cover the sign. Upon the expiration or termination of this Lease,
or if Tenant is in Default as a result of Tenant’s failure to pay Rent when
due, or if Tenant ceases to lease at least fifty percent (50%) of the Building,
then, in such event, Tenant shall remove the sign at Tenant’s sole cost and
expense, and shall restore the Building to its condition prior to the
installation of the sign (other than ordinary weathering); and, if Tenant fails
to remove the same, then the sign shall be deemed abandoned, and Landlord may
cause the same to be removed, and the Building to be restored, at Tenant’s
expense, which expense shall be considered Additional Rent. If the real estate
taxes or insurance premiums for the Building are increased as a result of the
installation of the sign, then Tenant shall pay its share of any such increase
directly attributable to such installation upon receipt of adequate
documentation. Notwithstanding the terms of this paragraph, Landlord makes no
representations as to whether a sign is presently permitted under the current
zoning ordinances affecting the Project. Tenant shall have no right to install
any other sign on the Project without the prior written consent of Landlord.

Section
12.05.  Legal Requirements.  Tenant shall, at its own expense, comply with
all laws, orders, ordinances and regulations of federal, state and local authorities, and with all rules,
recommendations, requirements and regulations of Landlord’s insurance companies
(to the

 12
 

extent
Tenant has received notice thereof), the Board of Fire Underwriters, and any
other organization establishing insurance rates in the geographical area where
the Project is located.

Section
l2.06.  Satellite Dish.  To the extent legally permitted, and so long
as Tenant is leasing all or substantially all of the Building, Tenant shall
have the non-exclusive right, together with Landlord, to install certain
communications equipment (e.g., a satellite dish or antenna, and related
equipment) on the roof of the Building, in a location mutually acceptable to
Landlord and Tenant.  Tenant shall
coordinate the installation of, and access to, the communications equipment
with Landlord’s property manager, and shall perform the installation in
accordance with Landlord’s guidelines. 
The installation of the communications equipment shall be completed in a
workmanlike manner and in accordance with all applicable laws and regulations.
Tenant shall install the communications equipment in a manner acceptable to
Landlord, and shall comply with all roof and floor load limitations.  Tenant shall be solely responsible for
obtaining any permits or licenses necessary to install the communications
equipment, and shall indemnify Landlord for any costs which Landlord might
incur due to the installation, operation and maintenance thereof. Tenant shall
cause its general liability and casualty policies to cover the communications
equipment.  Upon the expiration or
termination of this Lease, Tenant shall remove the communications
equipment at Tenant’s sole cost and expense, and shall restore the Project to its original condition, reasonable wear and
tear excepted; and, if Tenant fails to remove the same, then the communications
equipment shall be deemed abandoned, and Landlord may cause the same to be
removed, and the Project to be restored, at Tenant’s expense, which expense
shall be considered Additional Rent.  If
the real estate taxes or insurance premiums for the Building are increased as a result of the installation of
the communications equipment, then Tenant shall pay its share of any such
increase directly attributable to such installation upon receipt of adequate
documentation.  Notwithstanding the terms
of this Section 12.06, Landlord makes no representations as to whether any such
communications equipment is presently permitted under the current zoning
ordinances affecting the Project. In the event that Landlord installs any
communications equipment on the roof of the Building, Landlord agrees to
perform such installation in a manner which will not materially impair the
rights of Tenant pursuant to this
Section 12.06.

ARTICLE XIII

INSURANCE AND
INDEMNITY

Section
13.01.  Insurance to be Procured by Landlord.  Landlord shall obtain, and maintain in effect
throughout the Term, property insurance providing coverage in an amount equal
to the replacement value of the Building, and commercial general liability
insurance containing contractual liability coverage of at least Five Million
and NO/l00 Dollars ($5,000,000.00), combined single limit, written on an
occurrence basis.  Such insurance shall
be issued by an insurance company licensed to do business in the Commonwealth.
Landlord agrees to provide Tenant with a certificate of insurance for each
policy which Landlord is required to procure pursuant to this Section 13.01.

 13
 

Section
13.02.  Insurance to be Procured by Tenant.  Tenant, at Tenant’s sole cost and expense,
shall obtain, and maintain in effect throughout the Term, policies providing
for the following coverage:

A.            Commercial general
liability insurance protecting against liability occasioned by any occurrence
in the Premises and on the Project, and containing contractual liability
coverage of at least Five Million and NO/100 Dollars ($5,000,000.00), combined single limit, written on an
occurrence basis.  If it becomes
customary for a significant number of tenants of commercial office buildings in
the area to be required to provide insurance policies to their landlords with
additional coverages or coverage limits higher than the foregoing
limits, then Tenant shall be required, at Landlord’s request, to obtain
insurance policies having limits which
are commensurate with the then customary limits.

B.            Property insurance covering Tenant’s
fixtures, equipment, furnishings,
merchandise and other contents located
in the Premises, insuring against vandalism, malicious mischief and sprinkler
damage, and all perils included under the classification “Fire and Extended
Coverage”.

C.            Tenant’s worker’s
compensation insurance affording statutory coverage and containing statutory
limits required under the Commonwealth’s worker’s compensation statutes.

Section
13.03.  General Provisions.  The insurance policies required under Section
13.02 hereof shall (i) be issued by insurance companies licensed to do business
in the Commonwealth which have a Best’s Rating of A:XII or better; (ii) be
written as primary policy coverage and not contributing with or in excess of
any coverage which Landlord may carry; and (iii) name Landlord and any
mortgagee of the Project as additional insureds.  Neither the issuance of any insurance policy required hereunder,
nor the minimum limits specified herein with respect to Tenant’s insurance coverage, shall be deemed to limit or restrict Tenant’s liability arising hereunder.  Tenant shall deliver to Landlord, on or
before the Commencement Date, a certificate of insurance for each policy which
Tenant is required to procure pursuant to this Article XIII.  Tenant shall also deliver to Landlord, on or
before the expiration or cancellation of a policy, a certificate of insurance
evidencing an extension of such policy or the issuance of a replacement
policy.  Each insurance policy which
Tenant is required to procure shall provide (and any certificate evidencing the
existence of each such insurance policy shall certify) that the insurance
carrier shall not cancel, fail to renew, or make material changes to, such
insurance policy, without in each instance providing Landlord with at least
thirty (30) days prior written notice thereof. 
If Tenant shall fail to obtain any insurance coverage which Tenant is required to procure hereunder,
Landlord shall have the right to obtain the same and pay the premium therefor for a period not exceeding
one (1) year, and the premium so
paid by Landlord together with an administrative
fee of ten percent (10%) of
such premium shall be
immediately payable by Tenant to Landlord as Additional Rent.

Section
13.04.  Insurance Requirements.  Tenant shall promptly comply with all rules,
orders, regulations, or requirements of the insurance services office having
jurisdiction (to the extent Tenant has received notice thereof). Tenant shall
not do or permit to be done any act or thing upon the Premises that will
invalidate or be in conflict with any insurance policies covering the Project,
or which shall increase the rate of any insurance covering the Project, or any property

 14
 

located
therein. If, as a result of Tenant’s failure to comply with the provisions of
this Section, the rates of any insurance covering the Project shall increase,
then Tenant shall reimburse Landlord on demand as Additional Rent for that part of the premium charged as a result of such violation by
Tenant.

Section
13.05.  Indemnification.

A.            Tenant hereby waives
all claims against Landlord for damage to any property, or injury to or death of any person, in or upon the Premises or the Project, arising at any time and from any cause other than the negligence or willful misconduct of Landlord, its
agents or employees.  Tenant shall
indemnify and hold Landlord harmless from any damage to any property, or injury
to or death of any person, arising from the use and occupancy of the Premises
by Tenant, its agents, employees, contractors, licensees or invitees, unless
such damage is caused by the negligence or willful misconduct of Landlord, its
agents or employees.  Tenant’s foregoing
indemnity shall include attorneys’ fees, investigation costs, and all other reasonable costs and expenses incurred
by Landlord in connection
therewith.

B.            Landlord shall
indemnify and hold Tenant harmless from any damage to any property, or injury to or death
of any person, arising from the negligence or willful misconduct of
Landlord.  In addition, Landlord shall indemnify
and hold Tenant harmless from any damage to any property, or injury to or death
of any person, arising from the use or occupancy of the Common Areas, unless
such damage is caused by the negligence or willful misconduct of Tenant, its agents, employees, contractors, licensees or invitees.

C.            The provisions of
this Section 13.05 shall survive the termination of this Lease with respect to
any occurrence prior to such termination.

Section
13.06.  Mutual Waiver of Claims.  Tenant and Landlord each hereby release and
relieve each other, and waive their entire right to recovery against the other,
for loss or damage insured by the casualty policies required herein or any
other casualty policies actually held by either Tenant or Landlord, whether due
to the negligence, respectively, of Landlord or Tenant, or their agents,
employees, contractors, licensees or invitees. Tenant and Landlord shall cause
their respective casualty policies to contain a provision allowing the
foregoing waiver of claims.

ARTICLE XIV

DESTRUCTION OF PREMISES

Section
14.01.  Destruction of Premises.  Tenant shall give prompt notice to Landlord
of any fire or other damage to the Premises or the Building of which Tenant
becomes aware.  If (i) twenty percent (20%) or more of the Building shall be damaged by fire
or other casualty, or (ii) any damage to the Premises or Building cannot
reasonably be repaired within one (1) year after the damage occurred, or (iii)
the cost to repair the damage exceeds One Hundred Fifty Thousand and NO/100 Dollars
($150,000.00) and the mortgagee of the Project requires Landlord to use the
insurance proceeds under the policies referred to in Section 13.0l hereof to
pay down the mortgage rather than to pay for the cost to repair the damage, or
(iv) the Premises or Building

 15
 

shall
be damaged as a result of a risk which is not covered by Landlord’s insurance,
then Landlord may terminate this Lease by notice given within ninety (90) days
after the date of such damage.  In
addition, Landlord shall notify Tenant, in writing, within ninety (90) days
after the date the damage occurred, if Landlord has reasonably determined that
it will take more than one (1) year from the date the damage occurred to
rebuild the Premises, whereupon Tenant shall have the right to terminate this
Lease upon written notice to Landlord delivered not more than thirty (30) days
after Landlord delivers said notice to Tenant. 
Furthermore, in the event that Landlord fails to complete the rebuilding
of the Premises within one (1) year after the date the damage occurred, then,
upon the expiration of the aforesaid one (1) year period, Tenant shall have the
right to notify Landlord in writing that Tenant intends to terminate this Lease
if Landlord does not complete the rebuilding of the Premises within forty-five
(45) days after the date such notice is delivered to Landlord.  If Landlord does not complete the rebuilding
of the Premises within the aforesaid forty-five (45) day period, then Tenant
shall have the right to terminate this Lease upon delivering written notice
thereof to Landlord.  However, Tenant’s
right to terminate this Lease pursuant to this paragraph shall become null and
void if Landlord completes the
rebuilding of the Premises either (a) within the aforesaid forty-five (45) day
period, or (b) after the expiration of the aforesaid forty-five (45) day period
but before Tenant delivers to Landlord written notice of Tenant’s election to
terminate this Lease.

Section
14.02.  Obligation to Rebuild.  If the premises are damaged by fire or other
casualty and this Lease is not terminated pursuant to Section 14.01, then all
insurance proceeds under the policies referred to in Article XIII hereof that
are recovered on account of any such
damage shall be made available to pay for the cost of repairing such damage,
and, as soon as practicable (subject to Section 14.01 hereof) after such
damage occurs, Landlord shall repair or
rebuild the Premises to a condition substantially similar to their condition immediately prior to such occurrence.
However, in no event shall Landlord be
obligated to repair or replace Tenant’s trade fixtures, equipment or
personalty.

Section
14.03.  Rent Abatement.  In the event of any repair or rebuilding pursuant to Section 14.02
hereof, then an equitable portion of
the Rent shall be abated during the existence of such damage, based upon the
portion of the Premises which is rendered untenantable and the duration thereof. Except as expressly set
forth in this Article XIV, Landlord shall not be liable or obligated to Tenant
if the Premises are damaged by fire or other casualty.  Except as
provided herein, Tenant hereby waives any and all rights to terminate this
Lease that it may have, by reason of damage to the Premises by fire or
other casualty, pursuant to any presently existing or hereafter enacted law.

ARTICLE XV

CONDEMNATI ON

Section
15.01.  Condemnation of Premises or Project.  If all or substantially all of the Premises
or the Project is taken or condemned by condemnation or conveyance in lieu
thereof (such taking, condemnation or conveyance in lieu thereof being
hereinafter referred to as “Condemnation”),

 16
 

this
Lease shall terminate on the earlier of the date the condemning authority takes
possession or the date title vests in the condemning authority.

Section
15.02.  Partial Taking of Project.  If
any portion of the Project shall be taken by Condemnation (whether or not such
taking includes any portion of the Premises) and (i) such taking, in Landlord’s
judgment, results in a condition where the Project cannot be restored in an economically
feasible manner for use substantially as originally designed, or (ii) Landlord’s
mortgagee requires Landlord to use the proceeds thereof to pay down the
mortgage, then Landlord shall have the right, at Landlord’s option, to
terminate this Lease effective as of the date specified by Landlord in a
written notice of termination to Tenant.

Section
15.03.  Partial Taking of Premises.  If a portion, but less than substantially
all, of the Premises shall be taken by Condemnation, then this Lease shall be
terminated as of the date of Condemnation as to the portion of the Premises so
taken, unless Tenant reasonably determines that it shall no longer be able to
conduct its business in the remainder of the Premises, whereupon Tenant shall
have the right to terminate this Lease effective as of a date not later than
sixty (60) days after the date of Condemnation, as specified by Tenant in a
written notice of termination delivered to Landlord within ten (10) days after
the date of Condemnation.

Section
15.04.  Condemnation Award.  All compensation awarded or paid upon a
Condemnation of any portion of the Project shall belong to and be the property
of Landlord, without participation by Tenant. Notwithstanding the foregoing,
Tenant shall have the right to prosecute any claim directly against the
condemning authority for loss of business, loss of goodwill, moving expenses,
and damage to and cost of removal of trade fixtures, furniture and other
personal property belonging to Tenant, so long as Tenant’s claim shall not
diminish or adversely affect any award claimed or recovered by Landlord.

ARTICLE XVI

ASSIGNNENT AND SUBLETTING

Section
16.01.  Assignment or Sublease by Tenant.

A.            Tenant shall not
sublet the Premises (or any portion thereof) or assign this Lease (or any
interest herein), nor shall any assignment or sublease occur by operation of
law, without the prior written consent of Landlord, which Landlord shall not unreasonably
withhold. Notwithstanding the foregoing, as an alternative to granting consent to a proposed sublease or
assignment, Landlord shall have the right, in its sole discretion, to elect: (i) if Tenant desires to sublet (in
the aggregate) more than fifty percent (50%) of the Premises, to sublet from Tenant
the portion of the Premises proposed by Tenant to be sublet upon the
same terms as the proposed
sublet (but in no event shall the rental rate thereunder be greater than the rental rate hereunder); or
(ii) if Tenant desires to assign this Lease (other than pursuant to Section 16.01.C
hereof), to terminate this Lease as of the proposed effective date of
the assignment.  In no event, however,
shall Tenant be permitted to sublease the Premises or assign this Lease if
Tenant is then in Default under this
Lease. In the event of any assignment or sublease pursuant to the terms of this Article XVI, Tenant shall remain
liable for all of its obligations under this Lease, including but

 17
 

not limited to payment of
Rent. Landlord’s consent to particular assignment or sublease pursuant to this
Article XVI shall not constitute consent to any other assignment or sublease.

B.            If Tenant should
desire to assign this Lease or sublet the Premises, Tenant shall give Landlord
written notice thereof specifying: (i) the name, current address and business
of the proposed assignee or sublessee, (ii) the amount and location of the
space within the Premises proposed to be so subleased, (iii) the proposed
effective date and duration of the assignment or sublease, (iv) the proposed
rent and other consideration to be paid to Tenant by such assignee or
sublessee, and (v) all other information reasonably required by Landlord to
evaluate the proposed assignment or sublease. Landlord agrees to notify
Tenant in writing, within ten
(10) business days after Tenant’s written request, whether Landlord consents to
a proposed sublease. If Landlord fails to respond to Tenant within the
aforesaid ten (10) business day period, Tenant shall have the right to send a
second (2nd) written notice to Landlord, stipulating, in bold lettering, that,
pursuant to this Section l6.01.A hereof, Landlord shall be deemed to have
consented to the proposed sublease if Landlord fails to respond to Tenant’s
request within five (5) business days
after Landlord’s receipt
thereof. If Landlord fails to notify Tenant whether Landlord consents to the
proposed sublease within five (5) business days after receiving such notice,
and so long as such notice is in the form stipulated herein, then Landlord
shall be deemed to have consented to such sublease.  If Landlord consents to such assignment or
sublease, Tenant shall deliver to Landlord copies of all documents executed in
connection therewith, which documents shall be in form and substance reasonably
satisfactory to Landlord, and which documents shall require such assignee at
sublessee to comply with all terms of this Lease on Tenant’s part to be
performed:  No acceptance by Landlord of
any rent or any other sum of money from any sublessee or assignee shall be
deemed to constitute Landlord’s consent to any assignment or sublease.  If Landlord permits Tenant to sublet the
Premises or assign this Lease, and the rental rate thereunder exceeds the rental rate hereunder, Tenant shall remit
to Landlord as Additional Rent, as and when Rent hereunder becomes due, fifty
percent (50%) of the difference
between the rent due under the sublease or
assignment and the Rent due
hereunder, less reasonable expenses incurred by Tenant in subleasing the
space or assigning this Lease.

C.            Notwithstanding
the foregoing provisions of this
Section 16.01, Tenant shall have the right, upon prior written notice to Landlord, but without Landlord’s
consent, and provided Tenant is not
then in Default, to assign this Lease, or to sublet all or any part of the
Premises, to (i) any entity resulting from a merger or consolidation with
Tenant, (ii) any corporation succeeding to all the business and assets of
Tenant, or (iii) any affiliate of Tenant; provided, however, that the net worth
of the surviving or successor entity or the affiliate is at least equal to the
net worth of Tenant as of the date of this Lease; and provided, further, that
Tenant shall remain unconditionally liable for Tenants obligations under this
Lease. For purposes hereof, an affiliate of Tenant is any entity which
controls, is controlled by, or is under common control with Tenant.

Section
16.02.  Assignment Under Bankruptcy Code.  Any person or entity to which this Lease is
assigned pursuant to the provisions of the Bankruptcy Code shall be deemed,
without further act or deed, to have assumed and be subject to all of the
obligations, conditions and provisions under this Lease as of the date of such
assignment.  Notwithstanding the
foregoing, to the extent allowed by law, this Lease shall not be assignable by
voluntary or involuntary bankruptcy,

 18
 

insolvency
or reorganization proceedings, nor shall this Lease, or any rights or
privileges hereunder, be an asset of Tenant under any bankruptcy, insolvency or
reorganization proceedings.

Section
16.03.  Assignment by Landlord.  The term “Landlord” shall be limited to mean
only the owner or owners, at the time in question, of the fee title to, or a
lessee’s interest in a ground lease of, the Project. In the event of any
transfer, assignment or conveyance of any such title or interest, the
Landlord-transferor shall be automatically freed and relieved, from and after
the date of such transfer, assignment or conveyance, of all obligations of
Landlord hereunder, and, unless otherwise agreed to, the Landlord-transferee of
such title or interest shall be deemed to have assumed all obligations of
Landlord hereunder.  Tenant hereby
acknowledges that Landlord may transfer its interest in the Lease or the
Project without the consent of Tenant.

ARTICLE XVII

FINANCING AND SUBORDINATION

Section
17.01.  Subordination; Attornment.

A.            This Lease is
subject and subordinate to all
current ground leases, deeds of trust, mortgages or other security
instruments covering any portion
of the Project, or any interest of Landlord therein, as the same may be amended
from time to time. This provision shall be self-operative, and
no further instrument shall be required to effect such subordination of this
Lease. Upon demand, however, Tenant shall execute, acknowledge and deliver to
Landlord any further instruments evidencing such subordination as Landlord, and
any mortgagee or lessor of Landlord, shall reasonably require.  Provided that Landlord obtains a
nondisturbance agreement from any future ground lessor or mortgagee of the
Building pursuant to 17.03 hereof, this Lease shall be subject and subordinate
to such future ground lease, deed of trust, mortgage or other security
instrument covering any portion of the Project, or any interest of Landlord
therein, as the same may be amended from time to time. Notwithstanding the
foregoing, any mortgagee or lessor of Landlord shall have the right at any time
to subordinate any such deed of trust or mortgage or underlying lease to this
Lease, on such terms and subject to such conditions as such mortgagee or lessor
of Landlord may deem appropriate.

B.            Upon any transfer of
Landlord’s interest in the Project, Tenant shall, upon request of such
transferee (“successor landlord”) automatically attorn to and become the Tenant
of the successor landlord, without change in the terms of this Lease. This agreement
of Tenant to attorn to a successor landlord shall survive any foreclosure sale,
trustee’s sale, conveyance in lieu thereof or termination of any underlying
lease.  Tenant shall, upon demand at any
time, before or after any such foreclosure or termination, execute, acknowledge
and deliver to the successor landlord any written instruments evidencing such
attornment as such successor landlord may reasonably require.

Section 17.02.  Mortgagee’s Right to Cure.  In the event of any default by
Landlord hereunder, Tenant shall, prior to taking any action to
remedy such default or to cancel this Lease, send to:  Principal Mutual Life Insurance Company, 711
High Street, Des Moines, Iowa 50392-1450, Attention: Commercial Real Estate
Loan Administration (Loan No. 751622/751623), or to any

 19
 

subsequent
mortgagee of which Tenant has notice, by certified mail, return receipt
requested, a notice specifying the default by Landlord, whereupon such
mortgagee shall have a reasonable period of time to cure such default on behalf
of Landlord. Tenant shall have no right to take any other action as a result of
Landlord’s default unless and until Tenant complies with the provisions of this
paragraph.

Section
17.03.  Nondisturbance Agreement.  Notwithstanding the terms of this Article
XVII, Landlord agrees to obtain and deliver to Tenant an executed
nondisturbance agreement from the current mortgagee of the Building in form
reasonably acceptable to Tenant.  In
addition, Landlord shall endeavor in good faith to obtain such an agreement
from any future ground lessor or mortgagee of the Building, provided that the
same can be obtained at no cost or liability to Landlord.

ARTICLE XVIII

DEFAULT OF TENANT

Section
18.01.  Defaults.  Each of the following occurrences shall
constitute a “Default” by Tenant:

A.            If Tenant fails to
pay any installment of Rent when the same shall become due and payable, and
such failure shall continue for five (5) days after written notice thereof.

B.            If Tenant refuses to
take possession of the Premises within ten (10) days after the Commencement
Date, or abandons the Premises during the Term (unless due to casualty or
condemnation).

C.            If any execution,
levy, attachment or other process of law occurs upon Tenant’s interest in the
Premises, and Tenant fails to discharge or bond-off the same within ten (10)
days after receiving notice thereof (from Landlord or otherwise).

D.            If a mechanic’s lien
is filed against the Premises or the Project as a result of any services or
labor provided, or materials furnished, on Tenant’s behalf, and Tenant fails to
timely cause such lien to be discharged, or bond such lien or post such
security, as is required by Section 10.02.

E.             If Tenant violates
the sublease or assignment provisions set forth in Article XVI hereof.

F.             If Tenant fails to
maintain in force all policies of insurance required by this Lease.

G.            If Tenant
fails to provide Landlord with the financial statements or the estoppel certificates within the time periods
referenced in Sections 23.16 and 23.17 hereof, respectively.

H.            Subject to the terms
of the Bankruptcy Code, if (i)
Tenant, Tenant’s guarantor or
any permitted assignee or sublessee, shall (a) make an assignment for the
benefit of creditors,

 20
 

(b) file
or acquiesce in a petition in any court (whether or not pursuant to any statute
of the United States or of any state) in any bankruptcy, reorganization or
insolvency proceedings, or (c) make an application in any such proceedings
for or acquiesce in the appointment of a trustee or receiver for it or all or
any portion of its property; or (ii) any petition shall be filed against
Tenant, Tenant’s guarantor or any permitted assignee or sublessee, in any
bankruptcy, reorganization or insolvency proceedings and (x) Tenant, Tenant’s
guarantor or any permitted assignee or sublessee shall thereafter be
adjudicated bankrupt, or (y) such petition shall be approved by any such court,
or (z) such proceedings shall not be dismissed, discontinued or vacated within
ninety (90) days after such petition is filed; or (iii) a receiver or trustee
shall be appointed for Tenant, Tenant’s guarantor or a permitted assignee or
sublessee, for all or any portion of their property, and such receivership or
trusteeship shall not be set aside within sixty (60) days after such appointment.

I.              If Tenant fails to
perform or observe any other term of this Lease which is not specifically referred
to in this Section 18.01, and such
failure continues for
more than thirty (30) days after written notice from Landlord, except that such
thirty (30) day period shall be extended for such additional period of time as
may reasonably be necessary to cure such default, if such default, by its
nature, cannot be cured within such thirty (30) day period, provided that
Tenant commences to cure such default within such thirty (30) day period and is
at all times thereafter in the process of diligently curing the same, and does
in fact cure such default prior to the time that a failure to cure could cause
the Landlord to be subject to prosecution for violation of any law, rule,
ordinance or regulation or could cause a default under any mortgage, lease or
other agreement applicable to the Project.

J.             If Tenant fails to
perform any of its obligations under this Lease three (3) or more times within
any twelve (12) month period, notwithstanding any subsequent cure of such failure as provided
in this Section 18.01.

Section
18.02.  Landlord’s Remedies.  In the event of a Default, Landlord may
pursue any or all of the following remedies:

A.            Landlord shall have
the right to terminate this Lease by delivering to Tenant written notice
thereof, whereupon Tenant shall be required to immediately vacate and surrender
the Premises.

B.            Landlord shall have the right, without
notice, to reenter the Premises and dispossess, by summary proceedings, self
help or otherwise, Tenant and any other occupants of the Premises, and Tenant
shall have no further claim or right hereunder.

C.            Landlord shall have
the right to bring a special proceeding to recover possession of the Premises
from Tenant.

D.            If Landlord
exercises its rights under paragraphs B or C above, Landlord may remove all
persons from the Premises, and may treat all property as abandoned and dispose
of same in accordance with Section 20.02 of this Lease.

E.             Landlord may
exercise its rights under paragraphs B or C above with or without terminating
the Lease, and in no event shall any such exercise be construed as an election
to

 21
 

terminate
this Lease or operate to release Tenant from any of its obligations for the
remainder of the Term, or give rise to any claim for trespass.  If Landlord exercises its rights under
paragraphs B or C above without terminating the Lease, Landlord may from time
to time make such alterations and repairs as necessary in order to relet the
Premises, and may thereafter relet the Premises or any part thereof for such
rent and upon such other terms and conditions as Landlord may determine
advisable in its sole discretion.  Upon
each such reletting, all rentals and other sums received by Landlord from such
reletting shall be applied as follows: 
first, to the payment of any costs and expenses of such reletting;
second, to the payment of any indebtedness other than Rent due and unpaid
hereunder; and third, to the payment of Rent due and unpaid hereunder.  If such rentals and other sums received from
such reletting during any month are less than the amounts due pursuant to the
foregoing schedule for application of proceeds, Tenant shall pay such
deficiency to Landlord; if such rentals and other sums shall be more, Tenant
shall have no right to, and shall receive no credit for, the excess. Such
deficiency shall be calculated and paid monthly. Notwithstanding any such
reletting without termination, Landlord may at any time elect to terminate this
Lease for such previous breach.  The
failure or refusal of Landlord to relet the Premises shall not affect Tenant’s
liability hereunder.

F.             Landlord may
recover its lost Rent and other damages due hereunder (i) at the time of
the re-entry or termination, in separate actions, from time to time, as the
lost Rent shall accrue, or (ii) in a single proceeding deferred until the expiration of the Term (in which
event Tenant hereby agrees that the cause of action shall not be deemed to have
accrued until the date of expiration of the Term).  Notwithstanding the foregoing, if Landlord
terminates this Lease as a result of a Tenant Default, Landlord may, as an alternative to the remedies set forth in the preceding sentence,
recover upon demand the following liquidated damages (which the parties hereto
agree shall not be deemed a penalty) upon written notice thereof to
Tenant:  The sum of:  (i) all past-due, unpaid Rent as of the
termination date of this Lease, plus (ii) the amount of Landlord’s Costs
(hereinafter defined) which remains unamortized as of the termination date of
this Lease, plus (iii) the lesser of (a) the amount of Rent due for the
remainder of the Term, or (b) the amount of Rent due for the twelve (12)
month period immediately following the termination date of this Lease. Landlord
and Tenant acknowledge that they have agreed to the foregoing amount as
liquidated damages because of the difficulty of ascertaining in advance the amount of damages Landlord is
likely to incur as a result of Tenant’s
Default and Landlord’s subsequent termination of this Lease.  Landlord agrees that Landlord shall have no
right to “accelerate” the Rent due hereunder except for Landlord’s right to
recover liquidated damages pursuant to this Section 18.02.F.  For purposes hereof, the term “Landlord’s Costs”
shall refer to the sum of (i) all real estate brokerage commissions incurred by
Landlord in connection with the Lease, (ii) all costs and expenses incurred by Landlord
in connection with the construction
and/or installation of any leasehold improvements, (iii) any rental abatements,
(iv) any allowances granted to Tenant, and (v) any other costs and expenses
incurred by Landlord in connection with the Lease. In addition to any other
damages for which Tenant shall be liable hereunder, Tenant shall be liable for
all attorneys’ fees and court costs incurred by Landlord as a result of Tenant’s
Default.

Section
18.03.  Waiver of
Trial by Jury. 
Landlord and Tenant hereby waive all right to trial by jury regarding any matter
connected with this Lease.

 22

 

Section
18.04.  Injunction.  In addition to the other remedies provided
in this Lease, and anything contained herein to the contrary notwithstanding, Landlord shall be
entitled to restraint by injunction of any default or violation, or attempted
or threatened default or violation, of any of the terms of this Lease.

Section
18.05.  Landlord’s Right to Perform for Account of
Tenant.  If Tenant shall Default,
Landlord may cure such Default for the account and at the expense
of Tenant.  Tenant agrees to pay
Landlord, on demand, with interest at the Interest Rate, the amount so paid,
expended or incurred by Landlord, and any
and all expenses, including attorneys’ fees and court costs, incurred by
Landlord as a result of such Default.

Section
18.06.  Additional Remedies; Waivers.  The rights and remedies of Landlord set forth
in this Article XVIII shall be in addition to any other right and remedy now or
hereafter available at law or in equity, and all such rights and remedies shall
be cumulative rather than exclusive (except that, upon Landlord’s recovery of
liquidated damages pursuant to Section 18.02.F hereof, Landlord shall be
precluded from recovering any further sums on account of future Rent due hereunder).
Landlord may exercise such rights and
remedies at such times, in such order, to such extent, and as often as Landlord
deems advisable, without regard to whether the exercise of one right or
remedy precedes, coincides with or succeeds the exercise of another. A single
or partial exercise of a right or remedy shall not preclude a further exercise
thereof, or the exercise of another right or remedy. No waiver of a Default
shall be effective unless it is expressly agreed to in writing by Landlord.

Section
18.07.  Landlord’s Failure to Perform.  In the event Landlord shall fail to perform
any of its material obligations hereunder and such failure continues for a
period of thirty (30) days after having received written notice thereof from
Tenant (or if such failure to perform is not reasonably capable of being cured
within thirty (30) days, such additional period as may reasonably be necessary
to cure the same), then Tenant shall be entitled (a) to pursue its rights and
remedies available at law or in equity; and/or (b) to take such action as may
be commercially reasonable under the circumstance to rectify Landlord’s failure
to perform. If Tenant exercises its right to act in accordance with clause (b)
of the preceding sentence, then Landlord shall be required to reimburse Tenant
for all costs reasonably incurred in the exercise of such right within thirty
(30) days after written demand therefor, accompanied by appropriate
invoices and other information reasonably requested by Landlord.

ARTICLE
XIX

ACCESS BY LANDLORD

Landlord may, at any time, upon prior reasonable notice
to Tenant (except in the case of
emergency), enter the Premises for the purpose of:  (i) inspecting the Premises; (ii) making
repairs, replacements or alterations; or (iii) showing the Premises to
prospective purchasers or tenants. No such entry by Landlord shall constitute
actual or constructive eviction of Tenant. During the course of any such entry,
Landlord shall use reasonable efforts to avoid disrupting Tenant’s business operations.

 23
 

ARTICLE XX

SURRENDER; HOLDING OVER

Section
20.01.  Surrender.  Upon the expiration of this Lease, or upon
re-entry by Landlord without terminating this Lease pursuant to Article XVIII
hereof, Tenant shall peacefully vacate and surrender the Premises to Landlord
in good order, broom clean and
in the same condition as at the beginning of the Term, reasonable wear and tear
and damage by casualty excepted.  Tenant
shall also remove its trade fixtures, furniture and other personal property
from the Premises along with any leasehold improvements or other additions
which Tenant is required to remove pursuant to Section 10.03 hereof.

Section
20.02.  Personal Property.  If Tenant fails to timely remove its property
in accordance with Section 20.01, Landlord shall have the right, on the tenth
(10th) day after Landlord’s delivery of written notice to Tenant, to deem such
property abandoned by Tenant.  Landlord may
thereafter remove or otherwise deal
with the abandoned property in a commercially reasonable manner at Tenant’s
sole cost and expense, and
Landlord shall have no liability to Tenant with respect to such abandoned
property.  Tenant specifically
acknowledges and agrees that Landlord shall not be considered a bailee of such
property.  Tenant hereby agrees to indemnify
Landlord against any loss, cost, expense, claim or cause of action arising in
connection with Landlord’s exercise of its rights under this Section 20.02
including, without limitation, any claim
by a third party for conversion or trespass
as to chattels.

Section
20.03.  Holding Over.  If
Tenant shall hold possession of the Premises after the expiration of this
Lease, Landlord shall have the right, in its sole discretion, to deem Tenant
either (i) a trespasser, whereupon Landlord shall be entitled to the benefit of all laws relating to the speedy
recovery of the possession of the Premises; or (ii) a month-to-month
tenant subject to the provisions and obligations of this Lease (insofar as the same are applicable to a month-to-month
tenancy), except that Tenant shall be
required to pay to Landlord a
monthly rental equal to two (2) times the amount of Rent payable during the last month of the Term; provided, however, that if Landlord expressly consents in writing to
Tenant’s month-to-month tenancy, then the monthly rental during such month-to-month
tenancy shall be equal to the monthly rental payable during the last month of the Term.  Unless Landlord notifies Tenant in writing to the contrary within thirty (30)
days after the expiration of this Lease, Tenant’s tenancy shall automatically become
month-to-month.  The terms of this Article XX shall survive the
expiration of this Lease.

ARTICLE XXI

NOTICES

Except as may be
expressly provided to the contrary in this Lease, all notices, consents,
demands, requests or other communications (other than payment of
Rent) required or permitted hereunder
(collectively, “notices”) shall be
deemed given when dispatched to the other party by hand delivery (with signed receipt), or one (1) day after being dispatched to the other party by
air

 24
 

express courier for
overnight delivery (with signed receipt), or three (3) days after being deposited in the United States
Mail, postage prepaid, certified or registered, return receipt requested. The
addresses of the parties for notices shall be those set forth in Article I
hereof, or any other address subsequently specified by either party in a notice
given pursuant to this Article XXI.

ARTICLE XXII

HAZARDOUS MATERIALS

Section
22.01.  Environmental Requirements.  Tenant’s use and occupancy of the Premises
shall at all times be in strict compliance with all federal, state and local
laws, rules, regulations, orders, guidelines, ordinances and standards, as they
may now or hereafter exist, relating in any
way to the protection of human health, safety, the environment and natural
resources, including but not limited to the Comprehensive Environmental Response,
Compensation and Liability Act (“CERCLA”);
the Resource Conservation and Recovery Act; the Toxic Substances Control Act;
the Federal Insecticide, Fungicide and Rodenticide Act; the Clean Air Act; the
Federal Water Pollution Control Act; the Occupational Safety and Health Act;
the Safe Drinking Water Act, and their applicable state and local counterparts or equivalents
(“Environmental Laws”).

Section
22.02.  Clean-Up.  If Tenant becomes aware of a Release
(hereinafter defined), threat of a Release or the presence of any Hazardous
Substance (hereinafter defined) affecting the Premises or surrounding areas,
Tenant shall immediately notify Landlord in writing thereof, and shall take all reasonably necessary steps to
ensure that any future activities by Tenant do not exacerbate the Release,
threat of a Release or the presence of Hazardous Substance. If a Release,
threat of a Release or the presence of any Hazardous Substance affecting the
Premises or surrounding areas is caused by the acts or omissions of Tenant, or
its agents, employees, contractors, licensees or invitees, Tenant shall immediately
take all measures necessary to
contain, remove and dispose off the Premises, or surrounding areas, all such materials
present or Released (or threatened to
be Released), and shall remedy
and mitigate all threats to public health or the environment relating to such
presence or Release, or threat thereof. 
If Tenant shall fail to take the measures described above, or shall fail
to comply with the requirements of any Environmental Laws, Landlord may give
such notice and/or cause such work to be performed at the Premises or
surrounding areas, and/or take any and all other actions as Landlord shall deem
necessary to restore the Premises or surrounding areas to the condition in
which they existed as of the date of this Lease. Such actions by Landlord shall
not affect Tenant’s obligations under this Lease.

Section
22.03.  Indemnification.  Tenant shall indemnify, defend and hold
harmless Landlord from and against any and all claims, liens, suits, actions,
debts, damages, costs, losses (including, without limitation, any loss of value
of, loss of use of, or loss of income from, the Premises), liabilities,
obligations, judgments and expenses (including, without limitation, court costs
and attorneys’ fees), arising from or relating to any of the following
occurrences caused by the acts or omissions of Tenant, its agents,
employees, contractors, licensees or invitees: 
(i) a failure to comply with any Environmental Laws, or (ii) a
Release, threat of a Release or the presence of

 25
 

any
Hazardous Substance affecting the Premises or surrounding areas. Tenant’s
obligations under this Lease shall arise whether or not any governmental
authority or individual has taken or threatened to take any action in
connection with the presence of any Hazardous Substance.

Section
22.04.  Definitions.  As used herein, the term “Hazardous Substance”
shall mean petroleum or petroleum by-products, asbestos, and/or any chemicals,
substances or wastes which are defined as or included in the definition of “hazardous
substance”, “hazardous waste”, “hazardous material”, “toxic substance”, “toxic
pollutant”, or words of similar import, under any Environmental
Laws. The term “Hazardous Substance” shall
include building materials and building components
including, without limitation, asbestos or asbestos containing materials. The
term “Release” shall have the meaning set forth in Section 101(22) of CERCLA.

Section
22.05.  Operations.  Tenant shall not engage in operations which
involve the generation, manufacturing, refining, transportation, treatment,
storage, disposal or handling of any Hazardous Substance, other than
office equipment and cleaning solutions that are customarily found in office buildings, provided that the use,
generation, handling or storage of such equipment and solutions is reasonably
necessary for the operation and maintenance
of the Premises as permitted pursuant to the terms of this Lease, and is
in strict compliance with Environmental Laws.

Section 22.06.  Inspection.  Tenant agrees
to permit Landlord and its authorized representatives to enter, inspect
and assess the Premises at reasonable times and after reasonable notice (except
in the case of emergency) for the purpose of determining Tenant’s compliance with the provisions of this
Article XXII.  Such inspections and
assessments may include obtaining samples and performing tests of building
materials, soil, surface water, groundwater or other media.

Section
22.07.  Survival.  This entire Article XXII shall survive the
expiration of this Lease.

ARTICLE XXIII

MISCELLANEOUS

Section
23.01.  Professional Fees.  To the extent permitted by law, in any action
or proceeding brought by either party against the other under this Lease, the
prevailing party shall be entitled to recover from the other party the
professional fees incurred by the prevailing party, such as appraisers’,
accountants’ and attorneys’ fees, investigation costs, and other legal expenses
and court costs.

Section
23.02.  No Partnership.  Nothing contained herein shall be deemed to
create a partnership, joint venture, or any other relationship between the
parties hereto except landlord and tenant.

Section
23.03.  Brokerage.  Landlord and Tenant each warrant and
represent to the other that no broker or agent on Landlord’s or Tenant’s behalf
was involved in negotiating this Lease or addressing matters concerning the
renting of the Premises, other than Broker and WEST*GROUP, Inc. (or its
successor-in-interest, WEST*GROUP MANAGEMENT LLC), 

 26
 

whose
commissions shall be paid in full by Landlord in accordance with
separate agreements.  Landlord and Tenant each agree to indemnity and hold the other harmless against
any claims for brokerage or other
commissions arising from a breach by Landlord or Tenant of the foregoing representation
and warranty.

Section
23.04.  Interpretation.

A.            Every provision of
this Lease which imposes an obligation on a party hereto shall be deemed
to be a covenant by such party.

B.            This Lease may be
executed in several counterparts which shall constitute one and the same
instrument.

C.            Any restriction or
requirement imposed upon Tenant hereunder shall be deemed to extend to Tenant’s
guarantors, sublessees, assignees, licensees and invitees, and it shall be Tenant’s obligation to cause the
foregoing persons to comply with such restriction or requirement.

D.            Any reference to the
expiration of this Lease or the Expiration Date shall include the earlier
termination of this Lease.

E.             The term “mortgagee”
shall also refer to any beneficiary of a deed of trust, or any other individual
or entity having a security interest in the Project.

F.             The term “Commonwealth”
shall refer to the Commonwealth of Virginia.

Section
23.05.  Recording.  Neither this Lease, nor any memorandum
hereof, may be recorded among the land records without the express written
consent of Landlord, which Landlord may condition or withhold in its sole and
absolute discretion.

Section
23.06.  Severability.  Every agreement contained in this Lease shall
be construed as a separate and independent agreement. If any term of this
Lease, or the application thereof to any person or circumstance, shall be
invalid or unenforceable, the remaining agreements contained in this Lease
shall not be affected.

Section
23.07.  Waiver of Redemption.  If, as a result of a Tenant Default, Landlord
terminates this Lease, or obtains possession of the Premises without
terminating this Lease, Tenant hereby expressly waives, to the extent legally
permissible, any right of redemption or right to restore the operation of this
Lease pursuant to Va. Code Section 55-247 or any other present or future law.

Section
23.08.  Limitation of Landlord’s Liability.  Anything contained in this Lease to the
contrary notwithstanding, Tenant agrees to look solely to the estate and
property of Landlord in the Project for the collection of any judgment or other
judicial process requiring the payment of money by Landlord for any default or
breach by Landlord under this Lease, subject, however, to the prior rights of
any mortgagee or lessor of the Project. No other assets of Landlord, or any
partners, shareholders or other principals of Landlord, shall be subject to
levy, execution or other judicial process for the satisfaction of Tenant’s
claim.

 27
 

Section
23.09.  Force Majeure.  Whenever a period of time is herein
prescribed for action to be taken by Landlord or Tenant (except payment of
Rent), such party shall not be liable or responsible for, and there shall be
excluded from the computation for
any such period of time, any delays due
to force majeure, which term shall include strikes, riots, acts of God,
shortages of labor or materials, war, governmental approvals, laws, regulations
or restrictions, or any other cause which is beyond the reasonable control of
such party.

Section
23.10.  Heading.  The article headings contained in this Lease
are for convenience only and
shall not enlarge or limit the scope or meaning of the terms
hereof.  Words in the singular number
shall be held to include the plural, unless the context otherwise requires.

Section
23.11.  Successors and Assigns.  If there be more than one Tenant, the
obligations hereunder imposed upon Tenant shall be joint and several, and all
agreements and covenants herein contained shall be binding upon the respective
heirs, personal representatives, successors and assigns of the parties
hereto.  Notwithstanding the foregoing,
nothing contained in this Section 23.11 shall be deemed to override the terms
of Article XVI.

Section 23.12.  Entire Agreement Amendments.  This Lease, and the exhibits and riders (if any) attached hereto, set forth
the entire agreement between the parties,
and no representations, inducements or agreements, oral or written, between Landlord
and Tenant shall have any force
or effect, unless the same are set forth in this Lease.  No amendment or modification of this Lease
shall be binding or valid unless expressed in a document signed by both parties
hereto.

Section
23.13.  Governing Law.  This Lease shall be governed by and construed
under the laws of the Commonwealth, without reference to its conflicts of laws
principles.  Landlord and Tenant hereby
consent to jurisdiction in the Circuit Court for Fairfax County, Virginia, if
any suit is brought relating to this Lease. Should any provision of this Lease
require judicial interpretation, Landlord and Tenant hereby agree and stipulate
that the court interpreting or
considering same shall not apply the presumption that the terms hereof should
be more strictly construed against the party who drafted the same, it being
agreed that all parties hereto have participated in the preparation of this
Lease, and that each party has had full opportunity to consult legal counsel of
its choice before executing this Lease.

Section
23.14.  Time of Essence.  Time is of the essence in this Lease.

Section
23.l5.  Acceptance by Landlord.  The submission of this Lease to Tenant shall
not be construed as an offer, and Tenant shall not have any rights with respect
thereto unless and until Landlord executes a copy of this Lease and delivers
the same to Tenant.

Section
23.16.  Financial Statements.  At any time during the Term, Tenant shall, upon ten (10)
days prior written notice from Landlord, provide Landlord with a current
financial statement and financial statements of the two (2) years prior to the
current financial statement year. Such statements shall be prepared in
accordance with generally accepted accounting principles, consistently applied,
and, if such is the normal practice of Tenant, shall be audited by an
independent certified public accountant. If it is not the normal practice of
Tenant to prepare audited statements, then the unaudited statements shall be
certified by Tenant’s chief financial officer.

 28
 

Section
23.17.  Estoppel Certificates.  Tenant shall, from time to time, within ten
(10) days after request from Landlord or its mortgagee, execute,
acknowledge and deliver in recordable form an estoppel certificate regarding
the terms and status of this Lease and the tenancy hereunder, and such other matters as may be
reasonably requested by Landlord or its mortgagee.  Tenant’s failure to execute and deliver such statement within the allotted time shall be
conclusive evidence that Tenant acknowledges that the contents of the proffered
estoppel are accurate.  At Tenant’s
request, Landlord shall, from time to time, execute and deliver an estoppel
certificate regarding the terms and
status of this Lease and the tenancy hereunder.

Section 23.18.  ERISA Covenant.  Tenant represents and warrants to Landlord
and any mortgagee of Landlord that no source of Tenant’s funds (except income
that may be received from pension plan clients in the ordinary course of
business) constitutes “plan assets” as defined in the Employee Retirement
Income Security Act of 1974, as amended (“ERISA”) and within the meaning of 29
C.F.R. § 2510.3-101, nor assets of any government plan within the meaning of
Section 3(32) of ERISA, and that Tenant is not (i) a pension fund, employee
benefit plan or other fund subject to the provisions of ERISA, (ii) a “government
plan” as defined in Section 3(32) of ERISA, or (iii) a “party in interest” as
defined in ERISA with respect to any of the above (except with regard to its
own pension plan).  Tenant covenants that
it will maintain the same status throughout the Term, except as may be
consented to by Landlord from time to time, in Landlord’s sole and absolute
discretion, and will re-certify the foregoing to Landlord within ten (10) days
after Landlord’s written request. 
Tenant hereby warrants that its
pension plan has no economic interest in this Lease. Tenant hereby agrees to
indemnify, defend and hold Landlord and any and all mortgagees (past, present or future) harmless from and against any and all claims, suits, actions, proceedings,
liability, damages, penalties, losses, costs and expenses (including court
costs and attorneys’ fees) which they may incur as a result of a breach of the
foregoing representations, warranties and covenants.  In addition, such a breach shall constitute a
Default.

Section
23.19.  Authority of Parties.  Execution hereof shall constitute a
representation and warranty by each party hereto that such party has complied
with all applicable laws, rules and governmental regulations relative to that
party’s right to do business in the Commonwealth, that such party has the full
right and authority to enter into this Lease, and that all persons signing on behalf of such party were authorized to do
so by all necessary or appropriate legal actions.

 29
 

IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease
under seal as of the date first above written.

	
  

  	
   

  	
  LANDLORD:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  WEST*GROUP PROPERTIES LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ G.T. Halpin

  	
   [SEAL]

  
	
   

  	
   

  	
   

  	
   

  	
  G.T. Halpin, President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ADVANCED TECHNOLOGY SYSTEMS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Claude H. Rumsey, Jr.

  	
   [SEAL]

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Claude H. Rumsey, Jr.

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Vice President

  

 

 30

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