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Exhibit 10.37  

 
 

LOUDOUN TECH CENTER    
    
    OFFICE LEASE    
    
    BY AND BETWEEN    
    
    MERRITT-LT1, LLC, LANDLORD AND    
    
    NEUSTAR, INC., TENANT    
    
    TABLE OF CONTENTS

    

	1.	Rental	 	4
	

2.	

Use	
 	

4
	

3.	

Services and Utilities	
 	

5
	

4.	

Compliance with Laws	
 	

5
	

5.	

Assignment and Subletting	
 	

6
	

6.	

Operating Costs	
 	

6
	

7.	

Increase in Landlord's Insurance Rates	
 	

7
	

8.	

Insurance—Indemnity	
 	

8
	

9.	

Alterations	
 	

11
	

10.	

Removal of Alterations	
 	

11
	

11.	

Repairs and Maintenance	
 	

11
	

12.	

Default	
 	

13
	

13.	

Damage or Destruction	
 	

14
	

14.	

Possession	
 	

15
	

15.	

Exterior of Premises—Signs	
 	

15
	

16.	

Parking	
 	

15
	

17.	

For Rent/Sale Signs	
 	

15
	

18.	

Water and Other Damage	
 	

15
	

19.	

Right of Entry	
 	

16
	

20.	

Termination of Term	
 	

16
	

21.	

Condemnation	
 	

16
	

22.	

Subordination	
 	

17
	

23.	

Landord's Right to Perform Tenant's Covenants	
 	

17
	

24.	

Attornment	
 	

17
	

25.	

Non-Waiver of Future Enforcement	
 	

18
	

26.	

Personal Property Taxes	
 	

18
	 	 	 	 

1

 

	

27.	

Recordation of Lease	
 	

18
	

28.	

Notices	
 	

18
	

29.	

Waiver of Jury Trial	
 	

18
	

30.	

Severability	
 	

19
	

31.	

Non-Waiver	
 	

19
	

32.	

Successors and Assigns	
 	

19
	

33.	

Security Deposit	
 	

19
	

34.	

Notices to Mortgagee	
 	

20
	

35.	

Estoppel Certificate	
 	

20
	

36.	

Bankruptcy	
 	

21
	

37.	

Broker's Commission	
 	

23
	

38.	

Rules and Regulations	
 	

23
	

39.	

Environmental Provisions	
 	

23
	

40.	

Emergency Generator	
 	

24
	

41.	

Hours of Operation	
 	

25
	

42.	

Captions	
 	

25
	

43.	

Final and Entire Agreement	
 	

25
	

44.	

Tenant Representative	
 	

25

 
 

EXHIBITS    
    

A—Site
Plan 

B—Work
Letter 

C—Floor
Plan 

2

   
        THIS LEASE, made this 19th day of May, 2000, by and between MERRITT-LT1,
LLC, a Maryland limited liability company, hereinafter called "Landlord," and NEUSTAR, INC. a corporation of the State of
Delaware, hereinafter called "Tenant." 

        WITNESSETH, that in consideration of the rentals hereinafter agreed upon and the performance of all the conditions and covenants
hereinafter set forth on the part of the Tenant to be performed, the Landlord does hereby lease unto the said Tenant, and the latter does hereby rent from the former the following premises
(hereinafter sometimes called the "premises"): 

        BEING all those premises containing approximately forty thousand four hundred forty (40,440) rentable square feet, within the building
(hereinafter sometimes called the "Building") shown on the Lease Plan attached hereto as Exhibit A, which Building is known as Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza,
Sterling, Virginia 20166 located in Loudoun County, Virginia and shown on the Space Plan attached hereto as Exhibit A-1, within the development known as the "Loudoun Tech Center"; 

        TOGETHER WITH the right of Tenant, its agents, officers, contractors, employees and invitees, to the use of the parking and other common
areas shown on Exhibit A (the "Common Areas") and also together with the right of access over the roads and driveways throughout the Park (as defined in Section 6 hereof) for ingress and
egress to and from the Building; 

for
the term of ten (10) years, beginning on August 1, 2000 (the "Scheduled Commencement Date") and terminating July 31, 2010 (the "Scheduled Expiration Date"), provided Landlord
has substantially completed Landlord's Work as hereinafter defined. Landlord agrees that it will, at its sole cost and expense, as soon as reasonably possible after the execution of this Lease,
commence and pursue to completion the Landlord's Work set forth on Exhibit B and at the location and including the improvements shown on Exhibit C. Landlord shall provide Tenant with not
less than 15 days prior written notice of the date on which Landlord reasonably anticipates it will have substantially completed Landlord's Work, and not less than 5 days prior written
notice of the actual date on which substantial completion will have occurred. The date that each of the foregoing conditions has been satisfied is hereinafter referred to as the "Commencement Date".
In the event Landlord fails to substantially complete Landlord's Work and provide the required notices on or before the Scheduled Commencement Date, then: 

	(a)
	the
actual date upon which Landlord substantially completes Landlord's Work (provided Landlord has given the required notices as set forth above) shall be the Commencement Date, and
the actual date of the expiration of the Lease term (the "Expiration Date") shall be the date ten (10) years following the first day of the first full calendar month of the Lease Term; and

	(b)
	Tenant
shall be entitled to an abatement of base rent and all other charges payable under this Lease of two (2) days for each one (1) day of delay beyond
September 30, 2000 if Landlord does not substantially complete Landlord's Work by September 30, 2000, which abatement shall terminate upon substantial completion of Landlord's Work; and

	(c)
	Tenant
may terminate this Lease and shall thereupon be entitled to a return of any security deposit, base rent or other amounts paid to Landlord if Landlord does not substantially
complete Landlord's Work by November 30, 2000; provided Tenant gives Landlord written notice of Tenant's election to terminate this Lease at any time after October 31, 2000, so long as
such notice is given before substantial completion of Landlord's Work. 

The
parties hereto covenant and agree that if the term of this Lease commences on a date other than the Scheduled Commencement Date, they will, upon the request of either of them, execute an agreement
in recordable form setting forth the new Commencement Date and Termination Date of the Lease term. Under no circumstances shall Landlord be under any liability for failure to deliver 

3

 

possession
of the premises to Tenant on the date herein specified. For purposes of this Lease, "substantial completion" shall mean completion of Landlord's Work pursuant to approved plans and
specification, notwithstanding the fact that minor details of construction which do not materially interfere with Tenant's use and conduct of its business (items normally referred to as "punch list
items") remain to be performed. 

        This
Lease is made subject to the following additional terms, covenants and conditions: 

        1.    Rental.    

        (a)   The
annual base rental for the first full year of the Lease term shall be Five Hundred Eighty-Six Thousand Three Hundred Eighty Dollars ($586,380.00) payable
in equal monthly installments of Forty-Eight Thousand Eight Hundred Sixty-Five Dollars ($48,865.00) each. Should the Commencement Date occur other than on the first day of a calendar
month, the base rental for such partial month shall be prorated and paid to Landlord on the fifth day
following the Commencement Date, and the first year of the Lease term shall be deemed to expire on the last day of the twelfth (12th) full month following the Commencement Date. During each subsequent
Lease year, the base rental shall be increased by three percent (3%) over the base rental for the preceding Lease year. Tenant covenants and agrees to pay all rentals reserved hereunder to Landlord,
without notice or demand, in advance on or before the first day of each month during the term of this Lease (except that if the Lease commences on a date other than the first (1st) day of a month, the
rental for such partial month shall be payable five (5) days after the Lease commencement date as set forth above), without setoff or deduction. 

        (b)   All
rentals shall be paid to Landlord c/o Merritt Properties, LLC, 2066 Lord Baltimore Drive, Baltimore, Maryland 21244, or at such other place or to such appointee of
the Landlord as the Landlord may from time to time designate in writing. 

        (c)   Tenant
covenants and agrees to pay the rental herein reserved and each installment thereof promptly when and as due, without setoff or deduction whatsoever.
Simultaneously with the execution of this Lease, Tenant has paid Landlord the sum of Forty-Eight Thousand Three Hundred Thirty-Three Dollars Thirty-Three Cents ($48,333.33) as prepaid rent for the
first (1st) month of the Lease term, the receipt of which is hereby acknowledged by Landlord. 

        (d)   If
the actual "as-built" premises is more or less than forty thousand (40,000) rentable square feet (which shall be computed by measuring the circumference
of the primary external face of the Building wall and certified to Tenant and Landlord by Landlord's architect), the base annual rental for the first (1st) rental year shall be recomputed so that the
base annual rental for such first (1st) rental shall be an amount equal to Fourteen Dollars and Fifty Cents ($14.50) times the actual rentable square footage of the as-built premises. In
the event the rent is recomputed as hereinabove set forth, the parties hereto shall execute an addendum to this Lease specifying such recomputation. 

        2.    Use.    Tenant covenants and agrees to use and occupy the premises solely for the
following purposes: offices for the use of Tenant, its officers, agents and employees, and other uses incidental thereto not prohibited by applicable law. Tenant agrees to comply with all applicable
zoning and other laws and regulations, and provide and install at its own expense any additional equipment or alterations required to comply with all such laws and regulations as required from time to
time. Tenant further agrees not to make, or cause or permit to be made, any use of the premises which shall constitute a nuisance or shall interfere with the rights of other tenants in the Building to
quietly enjoy, use and occupy the premises leased by them and the common areas of the Building. Tenant will not permit, allow or cause any public or private auction sales or sheriffs' or constables'
sales to be conducted on or from the premises. 

4

 

        3.    Services and Utilities.    

        (a)   Subject
to the provisions of paragraph (c) below, Landlord agrees that all water, sewer, electricity, gas, telephone and other utilities will be available to the
Premises in sufficient quantities to meet Tenant's reasonably anticipated requirements for general office use. 

        (b)   Tenant
agrees to pay directly to the service provider or, if not separately billed, to Landlord as additional rent, all water rent and sewer service charges chargeable
to the Building. Tenant shall pay all costs of electricity, gas, telephone and other utilities used or consumed on the premises, together with all taxes, levies or other charges on such utilities. If
Tenant defaults in payment of any such utilities, charges or taxes, Landlord may, at its option following not less than ten (10) days prior written notice to Tenant, pay the same for and on
Tenant's account, in which Tenant shall promptly reimburse Landlord therefor. 

        (c)   Landlord
agrees to provide reasonable roof and exterior Building and exterior site maintenance, repair, refurbishing, and landscaping, maintenance, repair, refuse
removal from the exterior dumpster (it being understood that Tenant will be responsible for its own refuse removal within the interior of the premises), snow removal, illumination of the parking and
common areas within the Property (as defined in Section 6, below). Tenant shall, at its own expense, provide its own janitorial and maintenance services for maintenance of the interior of the
Premises throughout the term of the Lease, and shall keep all trash and debris properly stored until picked up at Tenant's expense. 

        (d)   Landlord
shall not be in default hereunder or be liable for any damages directly or indirectly resulting from, nor shall the rent be abated by reason of (i) the
installation, use of interruption of use of any equipment in connection with the furnishing of any of the services to be furnished by Landlord as set forth in this Lease; (ii) failure to
furnish or delay in furnishing any such services where such failure or delay is caused by accident or any condition or event beyond the reasonable control of Landlord, or by the making of necessary
repairs or improvements to the premises or Building; or (iii) the limitation, curtailment or rationing of, or restrictions on, use of water, gas or any other form of energy serving the premises
of Building, except in each case to the extent caused by Landlord's negligence and willful acts and that of Landlord's agents, employees, contractors, invitees and licensees. Landlord shall not be
liable under any circumstances for a loss of or injury to property or business, however occurring, through or in connection with or incidental to failure to furnish any such services, except to the
extent caused by Landlord's negligence and willful acts and that of Landlord's agents, employees, contractors, invitees and licensees. 

        4.    Compliance with Laws.    Tenant covenants and agrees that it will, at its own expense,
observe, comply with and execute all laws, orders, rules, requirements and regulations of any and all governmental departments, bodies, bureaus, agencies and officers, and all rules, directions,
requirements and recommendations of the local board of fire underwriters and the fire insurance rating organizations having jurisdiction over the area in which the premises are situated, or other
bodies or agencies now or hereafter exercising similar functions in the area in which the premises are situated, in any way pertaining to the premises or the use and occupancy thereof. In the event
Tenant shall fail or neglect to comply with any of the aforesaid laws, orders, rules, requirements or recommendations, Landlord or its agents may, following not less than ten (10) days prior
written notice (provided that in the event of an emergency, the notice period may be decreased commensurate with the emergency), enter the premises and take all such action and do all such work in or
to the premises as may be necessary in order to cause compliance with such laws, orders, rules, requirements or recommendations, and Tenant covenants and agrees to reimburse Landlord promptly upon
demand for the reasonable expenses incurred by Landlord in taking such action and performing such work. 

5

 

        5.    Assignment and Subletting.    

        (a)   Tenant
covenants and agrees not to assign this Lease, in whole or in part, nor sublet the premises, or any part or portion thereof, nor grant any license or concession
for all or any part thereof, without the prior written consent of the Landlord in each instance first had and obtained, which Landlord shall unreasonably withhold, condition or delay. If such
assignment or subletting is permitted, Tenant shall not be relieved from any liability whatsoever under this Lease. In the event that the amount of the rent or other consideration to be paid to the
Tenant by any assignee or sublessee is greater than the rent required to be paid by the Tenant to the Landlord pursuant to this Lease after reimbursement of any reasonable costs incurred by Tenant
(such as tenant improvements, legal fees, broker commissions, and the like) incurred by Tenant is securing such assignment or sublease (the "Profit"), Tenant shall pay fifty percent (50%) of the
Profit to Landlord when and as received by Tenant from such assignee or sublessee. Any consent by Landlord to an assignment or subletting of this Lease shall not constitute a waiver of the necessity
of such consent as to any subsequent assignment or subletting. An assignment for the benefit of Tenant's creditors or otherwise by operation of law shall not be effective to transfer or assign
Tenant's interest under this Lease unless Landlord shall have first consented thereto in writing. 

        (b)   In
the event Tenant desires to assign this Lease or to sublease all, or any substantial portion (more than 50% in the aggregate) of the premises, Landlord shall have the
right and option to terminate this Lease, which right or option shall be exercisable by written notice from Landlord to Tenant within thirty (30) days from the date Tenant gives Landlord
written notice of its desire to assign or sublease. 

        6.    Operating Costs.    

        (a)   "Operating
Costs" are all of Landlord's costs of operating and insuring the Building and the land and all common areas and facilities adjacent to the Building as shown
on Exhibit A on which the Building is located (the "Property") and of maintaining, repairing, and refurbishing the exterior of the Building and all common areas, including, but not limited to,
loading areas, parking areas, pavements and walkways, landscaping, gardening, storm drainage and other utility systems; trash removal services furnished by Landlord with respect to the exterior
parking and common areas; the cost of utilities for such common areas and facilities; fire protection and security services, if any; traffic control equipment; repairs; parking lot striping; lighting;
sanitary control; removal of snow, trash, rubbish, garbage and other refuse from the parking and common areas; the cost of personnel to implement such services; insurance kept, or caused to be kept,
by Landlord out of or in connection with the ownership of the Building and common areas, including, but not limited to, insurance insuring the same against loss or damage by, or abatement of rental
income resulting from, fire and other such hazards, casualties and contingencies, and liability and indemnity insurance. Such costs shall not include (i) the cost of any capital improvements to
the Building, the Property or the Premises as determined under generally accepted accounting principles; (ii) work which Landlord performs specifically for or at the expense of any tenant of
the Building; (iii) maintenance of the HVAC system serving the premises and maintenance of any other HVAC systems serving other portions of the Building; (iv) trash removal from the
dumpster located on the exterior of the Building; (v) costs related to interest or debt service; (vi) penalties or late charges, or any other costs which may be incurred as the result of
the negligent or willful misconduct of Landlord or Landlord's agents, employees, invitees, licensees and contractors; and (vii) any amounts payable to Landlord or any affiliate of Landlord,
except payment for services rendered where the charges for such services are reasonably commensurate with the charges for similar services provided by similarly qualified persons in the geographical
location in which the Property is located. "Operating Costs" shall also include all taxes and assessments (as hereinafter defined) levied or assessed against the Property and Building, whether as a
result of an increase in the tax rate, or the levy, assessment or imposition of any tax on real estate as such not now levied, assessed or imposed, including, without limitation, assessments, fees or
charges of the Loudoun 

6

 

Tech
Owner's Association, its successors or assigns, or other community or neighborhood association. The foregoing shall apply to real estate taxes assessed against the common areas or Building
generally, and not resulting from improvements placed thereon by Tenant. In the event of any increases in real estate taxes resulting from improvements, alterations or additions made by Tenant, Tenant
shall pay the entire amount of said increase. "Taxes" as used herein shall also include, but not by way of limitation, all paving taxes, special paving taxes, special taxing district assessments and
any and all other benefits or assessments which may be levied on the Property or the Building, but shall not include any income tax on the income or rent payable hereunder, but shall not include taxes
or assessments related to other buildings or improvements located within the Property. "Taxes" shall also include all reasonable expenses incurred by Landlord (including attorneys' fees and costs) in
contesting any increase in, or applying for any reduction of, a tax assessment. "CAM" shall mean the total costs incurred by Landlord for the operation, maintenance, repair, insuring and management of
all common facilities within Landlord's entire property, consisting of approximately forty-three (43) acres (the "Park") including, but not limited to, common roads, snow removal, lighting of
common areas, Taxes payable by Landlord, or its successors, with respect thereto and other similar operational and maintenance expenses. CAM shall not include any Operating Costs incurred or payable
in connection with any other buildings (and their adjacent parking and common areas) with the Park, it being intended that CAM shall include only such costs which are incurred by Landlord for the
common benefit of all tenants of the Park, such as access roads, illumination thereof, etc. 

        (b)   Tenant
shall pay Landlord its Proportionate Share of all such Operating Costs throughout the Lease term. Tenant shall also pay Landlord its Proportionate Share of CAM,
which shall be determined by dividing the total rentable square foot area of the Building by the total rentable square foot area of all improvements within the Park. 

        (c)   Landlord
shall notify Tenant from time to time of the amount which Landlord estimates will be the amount payable by Tenant in accordance with paragraph (b) above,
and Tenant shall pay such amounts to Landlord in equal monthly installments, in advance, on the first day of each month, simultaneously with payments of the rent reserved pursuant to Section 1
hereof. On or before April 30th of each year of the term, Landlord shall submit to Tenant a statement showing the actual amounts incurred by Landlord as set forth in paragraph (b), the
amount theretofore paid by Tenant, and the amount of the resulting balance due thereon, or overpayment thereof, as the case may be. In the event any balance may be due by Tenant, Tenant shall pay said
balance upon the later of fifteen (15) days from the date of such statement or the date that Tenant's next monthly payment of base rental comes due. In the event Tenant has made any
overpayment, such overpayment shall be credited by Landlord against the next installment or installments of rent which are due and payable hereunder, or if the term of this Lease has expired, such
overpayment shall be refunded by Landlord to Tenant, without interest, within five (5) days after the date of such statement. Each such statement submitted by Landlord shall be final and
conclusive between the parties hereto as to the matters therein set forth, if no objection is raised with respect thereto within ninety (90) days after submission of each such statement, except
to the extent that (a) if an error or omission is discovered in a subsequent year which resulted in an overcharge to Tenant of five percent (5%) or more, then Tenant shall have the right, by
written notice to Landlord within thirty (30) days after such overcharge is discovered, to audit Landlord's records with respect to the preceding Lease year, or (b) if there is fraud or
misrepresentation of a material item in Landlord's statement with respect to Operating Costs or CAM for any Lease year, Tenant shall have the right, by written notice to Landlord within thirty
(30) days after Tenant's discovery thereof, to audit Landlord's books and records pertaining to Operating Costs and CAM for all prior Lease years. 

        7.    Increase in Landlord's Insurance Rates.    Tenant will not do, or suffer to be done,
anything in or about the premises, or keep or suffer to be kept, anything in or about the premises which will 

7

 

contravene
or affect any policy of insurance against loss by fire or other hazards, including, but not limited to, public liability, now existing or which the Landlord may hereafter place thereon, or
which will prevent the Landlord from procuring such policies in companies acceptable to Landlord at standard rates. Tenant will, at Tenant's sole expense, take all such actions as may be reasonably
necessary to obtain the greatest possible reduction in the insurance rates for the premises and the Building caused by the occupancy of Tenant, the nature of the business carried on by Tenant in the
premises, or otherwise resulting from any act of Tenant, its agents, servants, employees or customers, or anything done or suffered to be done by Tenant, its agents, servants, employees or customers,
outside of what is customary for general office use. However, any installations, alterations or improvements to the premises which could result in a reduction in insurance rates shall only be
undertaken at the sole cost of Landlord, unless the same are required as the result of any installations, alterations or improvements made by Tenant to the premises other than those for Tenant's
intended use of the premises. 

        8.    Insurance—Indemnity.    

        (a)   Tenant
covenants and agrees that from and after the earlier of the commencement of this Lease or the date of delivery of the premises from Landlord to Tenant, Tenant
will carry and maintain, at its sole cost and expense and in the amounts specified and in the form hereinafter provided, the following types of insurance: 

        (i)    Commercial General Liability. Commercial general liability insurance covering the premises and Tenant's use thereof
against claims for bodily injury or death and property damage occurring upon, in or about the premises, such insurance to afford protection to the limit of not less than Two Million Dollars
($2,000,000.00) arising out of anyone occurrence. The insurance coverage required under this Section B (a) (i) shall, in addition, extend to any liability of Tenant arising out of
Tenant's indemnities hereinafter provided, as well as independent contractors' liability, products/completed operations liability, personal injury liability and contractual liability. If such
insurance contains an annual aggregate limit, the annual aggregate limit may not be diminished by claims occurring at locations other than the premises. 

        (ii)   Boilers. If Tenant's premises shall contain a boiler or other pressure vessel, Tenant shall carry boiler and machinery
insurance with a direct damage limit of not less than the full value of the building in which Tenant's premises are situated. Such insurance shall be written on a "repair and replacement" (replacement
cost) basis. 

        (iii)  Tenant Improvements and Property. Insurance covering all leasehold improvements and other improvements installed by
Tenant upon the premises, trade fixtures and personal property from time to time in, on or upon the premises and any alterations, improvements, additions or changes made by Tenant thereto in an amount
not less than one hundred percent (100%) of their full replacement cost from time to time during the Lease term, providing protection against special causes of loss as defined within the property
insurance form promulgated by the Insurance Services Office, Inc. Such insurance shall be on an agreed value (no coinsurance) basis and shall have a deductible of not more than
Twenty-Five Thousand Dollars ($25,000.00). 

        (iv)  Worker's Compensation. Worker's compensation insurance covering Tenant's employees for statutory benefits payable in the
state in which the premises are located and including employer's liability insurance with limits of not less than One Hundred Thousand Dollars ($100,000.00) per accident, Five Hundred Thousand Dollars
($500,000.00) per employee for disease and One Hundred Thousand Dollars ($100,000.00) as a policy limit for disease. 

8

  

        (b)   All
policies of insurance to be provided by Tenant shall be issued in form reasonably acceptable to Landlord by insurance companies with general policyholder's rating of
not less than A-:XI as rated in the most current available "Best's Insurance Reports," and qualified to do business in the state in which the premises are located. A certificate of each
such policy of insurance shall be delivered to Landlord within ten (10) days after the earlier of the commencement of this Lease or delivery of possession of the premises to Tenant and
thereafter at least fifteen (15) days prior to the expiration of each such policy. As often as any such policy shall expire or terminate, renewal or additional policies shall be procured and
maintained by Tenant in like manner and to like extent. All such certificates of insurance shall contain a provision that the company writing said policy or its agent will give to Landlord at least
thirty (30) days' notice in writing in advance of any cancellations, or lapse, or the effective date of any reduction in the amounts of insurance. All such public liability, property damage and
other casualty policies shall be written as primary policies which do not contribute to and are not in excess of coverage which Landlord may carry. All such public liability and property damage
policies shall contain a provision that Landlord shall nevertheless be entitled to recover under said policies for any loss occasioned to it, its servants, agents and employees by reason of the
negligence of Tenant or any other named insured. Any insurance provided for may be affected by a policy or policies of blanket insurance, covering additional items or locations; provided, however,
that (i) Landlord shall be named as an additional insured thereunder as its interests may appear; (ii) the coverage afforded Landlord will not be reduced or diminished by reason of the
use of such blanket policy of insurance; and (iii) the requirements set forth herein are otherwise satisfied. Any insurance policies herein required to be procured by Tenant shall contain an
express waiver of any right of subrogation by the insurance company against the Landlord, and all other tenants or occupants of space in the Building. 

        (c)   Tenant
shall, and does hereby, indemnify and hold harmless Landlord from and against any and all liabilities, fines, claims, damages and actions, costs and expenses of
any kind or nature (including reasonable attorneys' fees) (i) relating to or arising from the use and occupancy of the premises; (ii) due to or arising out of any mechanic's lien filed
against the Building, or any part thereof, for labor performed or for materials furnished or claimed to be furnished to Tenant, or (iii) due to or arising out of any breach, violation or
nonperformance of any covenant, condition or agreement in this Lease set forth and contained on the part of Tenant to be fulfilled, kept, observed or performed, unless such damage or injury shall be
occasioned by the negligence or willful act or omission of the Landlord or Landlord's agents, employees, contractors, invitees or licensees, in which event, Landlord shall indemnify and hold harmless
Tenant to the extent of such negligence or willful act or omission. Notwithstanding the foregoing, Tenant shall at all times remain liable for, and indemnify and hold harmless Landlord as aforesaid
against, any damage or injury arising from perils against which Tenant is required by this Lease to insure, regardless of the negligence act or omission of others. 

        (d)   Landlord
covenants and agrees that from and after the earlier of the commencement of this Lease or the date of delivery of the premises from Landlord to Tenant, Landlord
will carry and maintain
(subject to reimbursement as an Operating Expense) and in the amounts specified and in the form hereinafter provided, the following types of insurance: 

        (i)    Fire and Extended Coverage. Fire and extended coverage insurance covering the Building and the Property, and any
alterations, improvements, additions or changes made by Landlord thereto in an amount not less than one hundred percent (100%) of their full replacement cost from time to time during the Lease term,
providing protection against special causes of loss as defined within the property insurance form promulgated by the Insurance Services Office, Inc. Such insurance shall be on an agreed value
(no coinsurance) 

9

 

basis
and shall have a deductible of not more than Twenty-Five Thousand Dollars ($25,000.00). 

        (ii)   Commercial General Liability. Commercial general liability insurance covering the Building and the Property and
Landlord's use thereof against claims for bodily injury or death and property damage occurring upon, in or about the Property, such insurance to afford protection to the limit of not less than Two
Million Dollars ($2,000,000.00) arising out of any one occurrence. The insurance coverage required under this Section B(d) (ii) shall, in addition, extend to any liability of Landlord' s
arising out of Landlord's indemnities hereinafter provided, as well as independent contractors' liability, products/completed operations liability, personal injury liability and contractual liability.
If such insurance contains an annual aggregate limit, the annual aggregate limit may not be diminished by claims occurring at locations other than the Property. 

        (iii)  Boilers. If the Building shall contain a boiler or other pressure vessel, Landlord shall carry boiler and machinery
insurance with a direct damage limit of not less than the full value of the Building. Such insurance shall be written on a "repair and replacement" (replacement cost) basis. 

        (iv)  Worker's Compensation. Worker's compensation insurance covering Tenant's employees for statutory benefits payable in the
state in which the premises are located and including employer's liability insurance with limits of not less than One Hundred Thousand Dollars ($100,000.00) per accident, Five Hundred Thousand Dollars
($500,000.00) per employee for disease and One Hundred Thousand Dollars ($100,000.00) as a policy limit for disease. 

        (e)   All
policies of insurance to be provided by Landlord shall be issued in form reasonably acceptable to Tenant by insurance companies with general policyholder's rating of
not less than A-:XI as rated in the most current available "Best's Insurance Reports," and qualified to do business in the state in which the premises are located. A certificate of each
such policy of insurance shall be delivered to Tenant within ten (10) days after the earlier of the commencement of this Lease or delivery of possession of the premises to Tenant and thereafter
at least fifteen (15) days prior to the expiration of each such policy. As often as any such policy shall expire or terminate, renewal or additional policies
shall be procured and maintained by Landlord in like manner and to like extent. All such certificates of insurance shall contain a provision that the company writing said policy or its agent will give
to Tenant at least thirty (30) days notice in writing, in advance, of any cancellation, or lapse, or the effective date of any reduction in the amounts of insurance. All such public liability,
property damage and other casualty policies shall be written as primary policies which do not contribute to and are not in excess of coverage which Landlord may carry. All such public liability and
property damage policies shall contain a provision that Tenant shall nevertheless be entitled to recover under said policies for all loss occasioned to it, its servants, agents and employees by reason
of the negligence of Landlord or any other named insured. Any insurance provided for may be affected by a policy or policies of blanket insurance, covering additional items or locations; provided,
however, that (i) Tenant shall be named as an additional insured thereunder as its interest may appear; (ii) the coverage afforded Landlord will not be reduced or diminished by reason of
the use of such blanket policy of insurance; and (iii) the requirements set forth herein are otherwise satisfied. Any insurance policies herein required to be procured by Landlord shall contain
an express waiver of any right of subrogation by the insurance company against the Tenant. 

        (f)    Landlord
shall, and does hereby, indemnify and hold harmless Tenant, from and against any and all liabilities, fines, claims, damages and actions, costs and expenses of
any kind or nature (including reasonable attorneys' fees) (i) relating to or arising from the management, operation 

10

 

and
maintenance of the Property and the Park by Landlord, its agents, contractors and employees; (ii) due to or arising out of any breach, violation or nonperformance of any covenant, condition
or agreement in this Lease set forth and contained on the part of Landlord to be fulfilled, kept, observed or performed, unless such damage or injury shall be occasioned by the negligence or willful
act or omission of the Tenant or Tenant's agents, employees, contractors, invitees or licensees, in which event, Tenant shall indemnify and hold harmless Landlord to the extent of such negligence or
willful act or omission. Notwithstanding the foregoing, Landlord shall at all times remain liable for, and indemnify and hold harmless Landlord as aforesaid against, any damage or injury arising from
perils against which Landlord is required by this Lease to insure, regardless of the negligence act or omission of others. 

        9.    Alterations.    Tenant shall not make any alterations to the premises, or any part
thereof, other than changes in decor, without prior written consent of Landlord in each instance first had and obtained, which Landlord shall not unreasonably withhold, condition or delay. If Tenant
shall desire to make any alterations (other than as may be necessary for the installation of Tenant's equipment and cabling) which require a building permit or involve the modification to any
structural components or mechanical systems of the Building, or which cost in the aggregate more than Ten Thousand Dollars ($10,000.00), plans for the same shall first be submitted to and approved by
Landlord, and all work and installations shall be performed by Tenant at its own expense in accordance with approved plans. Tenant agrees that all such work shall be done in a good and workmanlike
manner, that the structural integrity of the Building shall not be impaired, and that no liens shall attach to the premises by reason thereof. Tenant agrees to obtain, at Tenant's expense, all permits
required for such alterations. 

        10.    Removal of Alterations.    Tenant shall have the right, at any time and from time to
time during the Lease term, to remove any and all alterations made by Tenant to the premises, provided Tenant repairs
any damage done to the premises caused by such removal. Upon the expiration or termination of this Lease, Tenant shall restore the premises to their original condition at Tenant's sole expense,
ordinary wear and tear and damage by casualty excepted. Tenant shall promptly pay any franchise, minor privilege or other tax or assessment resulting directly or indirectly from any alterations or
improvements made by Tenant to the premises. Tenant shall repair promptly, at its own expense, any damage to the premises caused by bringing into the premises any property for Tenant's use, or by the
installation or removal of such property, regardless of fault or by whom such damage shall be caused. 

        11.    Repairs and Maintenance.    

        (a)   Except
as expressly provided in Exhibits B and C and in this Lease, Landlord shall be under no liability, nor have any obligation to do any work or make any repairs in
or to the premises, and any work which may be necessary to outfit the premises for Tenant's occupancy or for the operation of Tenant's business therein is the sole responsibility of Tenant and shall
be performed by Tenant at its own cost and expense. Tenant acknowledges that Landlord has made no warranties or representations with respect to the condition or state of repairs of the premises except
as specifically provided in this Lease. Landlord shall make all structural repairs to the roof, walls and foundations of the Building as needed and shall maintain all common areas, grounds and land in
reasonably good condition. Notwithstanding the foregoing, other than routine periodic maintenance, (i) Landlord's responsibility for maintaining any of the foregoing items shall arise only
after a reasonable time has elapsed after Tenant has notified Landlord in writing of the necessity for any such repairs or maintenance; and (ii) Tenant (and not Landlord) shall be responsible
for the repairs or maintenance of any such items if the necessity therefor was caused by the negligent act or omission or misuse of Tenant, its agents, officers, employees, contractors, licensees,
sublessees or invitees (except to the extent the cost of such work is provided through insurance maintained by Landlord under this Lease). 

        (b)   Tenant,
at Tenant's sole expense, shall maintain the interior of the premises in good order, condition and repair, including the interior surfaces of the ceilings, walls
and floors, all 

11

 

doors,
all interior windows, all plumbing, pipes and fixtures, electrical wiring, switches and fixtures, Building standard furnishings and special items and equipment installed by or at the expense of
Tenant. Tenant's maintenance obligations are limited to those items within its premises and Tenant has no obligation to maintain wiring, plumbing, pipes or fixtures or other items outside the premises
unless the damage thereto was caused by Tenant, its agents, officers, employees, contractors or invitees. 

        (c)   Tenant
shall be responsible for all repairs and alterations in and to the premises and Building and the facilities and systems thereof, the need for which arises out of
(i) Tenant's use or occupancy of the premises (except to the extent the same constitutes an Operating Expense, in which event Tenant's liability therefore shall be governed by the provisions of
Section 6 of this Lease); (ii) the installation, removal, use or operation of Tenant's property in the premises; (iii) the moving of Tenant's property into or out of the Building;
or (iv) any act, omission, misuse or negligence of Tenant, its agents, contractors, employees or invitees (except to the extent that the cost thereof is covered by insurance maintained by
Landlord under this Lease). 

        (d)   If
Tenant fails to maintain the premises in good order, condition and repair, Landlord may give Tenant notice to do such acts as are reasonably required to so maintain
the premises. If Tenant fails to promptly commence such work and diligently prosecute it to completion, then Landlord shall have the right, following not less than ten (10) days prior written
notice to Tenant (except that if such failure results in an emergency condition needing immediate attention, the notice period may be reduced commensurate with the emergency), to do such acts and
expend such funds at the expense of Tenant as are reasonably required to perform such work. Any amount so expended by Landlord shall be paid by Tenant within fifteen (15) days after demand,
with interest from the date of such work, at a rate equal the prime commercial rate of interest then being charged by Allfirst Bank of Baltimore, Maryland. 

        (e)   Tenant
shall not place a load upon any floor of the premises which exceeds the load per square foot which such floor was designed to carry, as set forth in
Exhibit C hereto. Landlord reserves the right to consult with its structural engineer if necessary, in Landlord's opinion, to resolve any questions concerning this matter, in which event the
determination of the engineer shall be conclusive and the cost of any such determination shall be paid for by Tenant upon demand. 

        (f)    Except
as otherwise expressly provided in this Lease, Landlord shall have no liability to Tenant nor shall Tenant's obligations under this Lease be reduced or abated in
any manner whatsoever by reason of any inconvenience, annoyance, interruption or injury to business arising from Landlord's making any repairs or changes which Landlord is required or permitted by
this Lease or required by law to make in or to any portion of the Building or the premises, absent the negligent or willful acts or omissions of Landlord or Landlord's agents, employees, contractors,
invitees or licensees. Landlord shall, nevertheless, use reasonable efforts to minimize any interference with Tenant's business in the premises and with the use by Tenant, its agents, officers,
contractors, employees and invitees of the common areas associated therewith. 

        (g)   Tenant
shall give Landlord prompt notice of any damage to or defective condition in any part or appurtenance of the Building's mechanical, electrical, plumbing, HVAC or
other systems serving, located in, or passing through the premises. 

        (h)   Upon
the expiration or earlier termination of this Lease, Tenant shall return the premises to Landlord clean and in the same condition as on the date Tenant took
possession, except for normal wear and tear, condemnation or casualty loss (provided such casualty loss was not caused by the negligent act or omission of Tenant, its agents, officers, contractors,
employees or invitees (except to the extent covered by insurance to be maintained under this Lease). Any damage to the premises, including any structural damage, resulting from Tenant's use or from
the removal of 

12

 

Tenant's
fixtures, furnishings and equipment shall be repaired by Tenant at Tenant's expense, except to the extent covered by Landlord's insurance. Landlord shall bill Tenant, as promptly as is
practicable, for the costs of any cleanup and/or repairs to the premises necessitated by Tenant's use and occupancy thereof and for which Tenant is responsible (normal wear and tear and losses caused
by Landlord's negligence or that of its employees, invitees, agents or contractors excepted) and such costs shall constitute additional rental due and payable hereunder notwithstanding any expiration
or termination of this Lease. 

        12.    Default.    

        (a)   Any
of the following events shall constitute a default by Tenant: 

        (i)    If
the rent (basic or additional) shall be in arrears, in whole or in part, for a period of five (5} days after written notice of such delinquency; or 

        (ii)   If
Tenant shall have failed to perform or comply with any other term, condition, or covenant of this Lease on its part to be performed or complied with, for a period of
thirty (30) days after written notice of such failure from Landlord; provided that if such failure is due to a condition or action which cannot reasonably be cured within thirty
(30) days, Tenant shall not be in default so long as Tenant commences to cure such failure within such thirty (30) day period and thereafter diligently pursues the cure until completed:
or 

        (iii)  If
there shall occur an Act of Bankruptcy, as defined in Section 38 hereof; or 

        (iv)  If
Tenant's leasehold interest under this Lease is sold under execution, attachment or decree of court to satisfy any debt of Tenant, or if any lien (including a
mechanic's lien) is filed against Tenant's leasehold interest and is not discharged within ten (10) days thereafter. 

        (b)   In
the event of default as defined in paragraph (a) hereof, Landlord, in addition to any and all legal and equitable remedies it may have, shall have the
following remedies: 

        (i)    To
distrain for any rent or additional rent in default; 

        (ii)   At
any time after default, without further notice except as provided in paragraph 12(a) hereof, to declare this Lease terminated and enter the premises with or
without legal process; and in such event Landlord shall have the benefit of all provisions of law now or hereafter in force respecting the speedy recovery of possession from Tenant's holding over or
proceedings in forcible entry and detainer, and Tenant waives any and all provisions for notice under such laws; and 

        (iii)  At
any time after default, without further notice, except as provided in paragraph 12(a) hereof, to re- enter the premises without terminating the
Lease, with the benefit of all laws referred to in clause (ii) above. 

        Notwithstanding
such re-entry and/or termination, Tenant shall immediately be liable to Landlord for the sum of the following: (A) all rent and additional rent then in
arrears; (B) all other liabilities of Tenant and damages sustained by Landlord as a result of Tenant "s default, including, but not limited to, the reasonable costs of reletting the premises
and any broker's commissions payable as a result thereof; (C) all of Landlord's costs and expenses (including reasonable counsel fees) in connection with such default and recovery of
possession; (D) the present value (computed at a discount rate of 10% per annum) of the difference between the rent reserved under this Lease for the balance of the term and the fair rental
value of the premises for the balance of the term to be determined as of the date of re-entry; or at Landlord's option in lieu thereof, Tenant shall pay the amount of the rent and
additional rent reserved under this Lease at the times herein stipulated for payment of rent and additional rent for the balance of the term, less any amount received by Landlord during such period
from others to whom the premises may be rented on such terms and conditions and at such rentals as Landlord, in its sole discretion, shall 

13

 

deem
proper; and (E) any other damages recoverable by law. In the event any action is brought to enforce or interpret the provisions of this Lease, the court shall award the prevailing party in
such action attorneys' fees and costs sufficient to reimburse the prevailing party for all costs incurred in connection with such action and the preparation for such action. 

        (c)   Tenant
hereby waives any right to recover possession of the premises or to redeem or reinstate this Lease, which the Tenant would otherwise have after Landlord recovers
possession of the premises in accordance with this Section 12. 

        (d)   In
the event Tenant fails to pay Landlord any rental payment or other charge on the date on which any such payment was due, Landlord may, at its option, charge Tenant a
late charge equal to ten percent (10%) of the rental payment or other such charge, which late charge shall be collectible as additional rent and shall be payable by Tenant to Landlord within five
(5) days after written notice from Landlord to Tenant assessing the same. In addition, any such rental payment or other charge which is delinquent for five (5) days or more, shall bear
interest from the date on which same was due at a rate equal to four percentage (4%) points above the prime rate of interest then being charged by Allfirst Bank of Baltimore, Maryland. 

        (e)   If
Landlord shall have failed to perform or comply with any term, condition, or covenant of this Lease on its part to be performed or complied with, for a period of
thirty (30) days after written notice of such failure from Tenant (provided that if such failure cannot reasonably be cured within thirty (30) days, Landlord shall not be in default so
long as Landlord commences to cure such failure within such thirty (3D) day period and thereafter diligently pursues cure until completed), Tenant may take such action as may be necessary to cure the
default upon giving Landlord that it intends to do so, in which event Landlord shall reimburse Tenant for all reasonable costs incurred by Tenant in curing such default, within thirty (30) days
following receipt by Landlord of an itemized statement from Tenant setting forth all such costs, together with backup paid receipts or vouchers. 

        13.    Damage or Destruction.    

        (a)   If,
during the Lease term, the premises hereby leased are damaged by fire or other casualty, but not to the extent that Tenant is prevented from carrying on business in
the premises, Landlord shall promptly cause such damage to be repaired; if such damage renders a substantial portion of the premises untenantable or if, as a result thereof, the common areas are so
damaged or destroyed that access to the premises is denied or materially adversely affected, the rent reserved hereunder shall be reduced during the period of untenantability of the premises or denial
of access or material interference with access to the premises proportionately to the amount by which the area so rendered untenantable or which Tenant is unable to use as the result of such denial of
access or material interference therewith bears to the entire gross rentable area of the premises, and such reduction shall be apportioned from the date of the casualty to the date when the premises
are rendered fully tenantable. Notwithstanding the foregoing, in the event such fire or other casualty damages or destroys any of Tenant's leasehold improvements, alterations, betterments, fixtures or
equipment, Tenant shall cause the same to be repaired or restored at Tenant's sole cost and expense and Landlord shall have no liability for the restoration or repair thereof. 

        (b)   If,
during the Lease term, the premises or a substantial portion of the Building are rendered wholly untenantable as the resul t of fire, the elements, unavoidable
accident or other casualty, Landlord shall have the option either to restore the premises to their condi tion immediately prior to the casual ty or to terminate this Lease, such option shall be
exercised by Landlord by written notice to Tenant within thirty (30) days after the fire, accident or casualty. In the event of such termination, the rent reserved hereunder shall be adjusted
as of the date of the fire, accident or casualty. If Landlord elects to restore the premises, such restoration shall be 

14

 

completed
as promptly as reasonably possible and the rent reserved hereunder shall abate until the premises are again rendered tenantable. 

        14.    Possession.    Intentionally Deleted. 

        15.    Exterior of Premises—Signs.    

        (a)   Tenant
covenants and agrees that it will not place or permit any window display, sign, billboard, marquee, lights, awning, poles, placard, advertising matter, or other
thing of any kind, in or about the exterior of the premises or the Building (including without limitation any displays on or in any motor vehicles used by Tenant, its employees, agents and servants),
nor paint or make any change in, to or on the exterior of said premises to change the uniform architecture, paint or appearance of the Building, without in each such instance obtaining the prior
written consent of Landlord and, if applicable, of any owners' association or similar entity which may govern the use of Loudoun Tech Center. Landlord agrees not to unreasonably withhold, condition or
delay the granting of its consent hereunder. Tenant shall obtain, at Tenant's expense, all permits required for such installation. Tenant further agrees to maintain any sign, billboard, marquee,
awning, decoration, placard, or advertising matter or other thing of any kind as may be approved by Landlord in good condition and repair at all times. Tenant shall be given signage, at Landlord's
cost initially, for Tenant on the door of the premises, said cost to be reimbursed by Tenant. 

        (b)   Tenant
further covenants and agrees not to pile or place anything on the sidewalk, parking lot or other exterior portion of the premises or Building in the front, rear
or sides of the building, nor block any sidewalk, parking lot or other exterior portion of the premises or Building, nor do anything that directly or indirectly will interfere with any of the rights
of ingress or egress or of light from any other tenant, nor do anything which will, in any way, change the uniform and general design of the Building or the Property. 

        (c)   Notwithstanding
any of the foregoing provisions, Tenant shall have the right to erect and maintain an exterior sign (with Tenant's name or trade name) on the Building
subject to Landlord's prior written consent to Tenant's sign plan showing the location, color, logo, size and other details of such sign. Such sign shall comply with all legal requirements, as well as
any applicable requirements of the Loudoun Tech Center Association or its Architectural Review Committee, Tenant shall procure all permits
necessary to erect and maintain such sign, at Tenant's cost, and Tenant shall keep and maintain the sign in reasonable repair. Tenant shall likewise repair any damage to the Building caused by the
installation, maintenance or removal of the sign. 

        16.    Parking.    Subject to condemnation, casualty and other causes beyond Landlord's
control, the parking area adjacent to the Building as shown on Exhibit A shall contain not less than four (4) parking spaces for each one thousand (1,000) square feet of rentable area
within the Building. Tenant, its agents, employees, officers and invitees, shall have the right to the use of such parking area in common with all other tenants of the Park and their respective
agents, employees, officers and invitees, and Tenant shall have not less than twenty (20) spaces immediately adjacent to the Building which we contain signage designating such spaces as
exclusively for the use of Tenant's visitors. Landlord shall have no liability if any of such reserved spaces are used by unauthorized vehicles. 

        17.    For Rent/Sale Signs.    Landlord shall have the right to place a "For Rent" sign on any
portion of said premises for three (3) months prior to expiration of the term of this Lease. During such period, Landlord may show the premises and all parts thereof to prospective tenants
between the hours of 9:00 A.M. and 5:00 P.M. on any day except Sunday or any legal holiday on which Tenant shall not be open for business upon reasonable prior notice to Tenant and
provided that Tenant is afforded a reasonable opportunity to provide an escort should the nature of Tenant's business so require. 

        18.    Water and Other Damage.    Landlord shall not be liable for, and Landlord is hereby
released and relieved from, all claims and demands of any kind by reason of or resulting from damage or injury 

15

 

to
person or property of Tenant or any other party, directly or indirectly caused by (a) dampness, water, rain or snow, in any part of the premises or in any part of any other property of
Landlord or of others, and/or (b) falling plaster, steam, gas, electricity, or any leak or break in any part of the premises or from any pipes, appliances or plumbing or from sewers or the
street or subsurface or from any other place or any part of any other property of Landlord or of others or in the pipes of the plumbing or heating facilities thereof, except to the extent caused by
the negligent or willful action or omission of Landlord or Landlord's employees, agents, contractors, invitees or licensees and not otherwise covered by insurance. 

        19.    Riqht of Entry.    Landlord and its agents, servants, employees, including any builder
or contractor employed by Landlord, shall have the absolute and unconditional right, license and permission, to enter and inspect the premises or any part thereof, and at the option of Landlord, to
make such reasonable repairs and/or changes in the premises as Landlord may deem necessary or proper and/or to enforce and carry out any provision of this Lease, between the hours of 9:00 A.M.
and 5:00 P.M. on any day except Sunday or any legal holiday on which Tenant shall not be open for business upon reasonable prior notice to Tenant and provided that Tenant is afforded a
reasonable opportunity to provide an escort should the nature of Tenant's business so require. Notwithstanding the foregoing, if Landlord's entry is required because of a dangerous or emergency
condition requiring immediate attention, the
provisions of the foregoing sentence shall not prohibit Landlord's immediate entry into the premises, so long as Landlord gives Tenant such notice as may be reasonable under the circumstances. 

        20.    Termination of Term.    It is agreed that the term of this Lease shall expire and
terminate at the end of the original term hereof (or at the expiration of the last renewal term, if this Lease contains a renewal option and the same is properly exercised), without the necessity of
any notice by or to any of the parties hereto, unless otherwise provided herein. If Tenant shall occupy the premises after such expiration or termination, it is understood that Tenant shall hold the
premises as a tenant from month-to-month, subject to all the other terms and conditions of this Lease, at an amount equal to twice the highest rental installment reserved in
this Lease. Landlord shall, upon such expiration or termination of this Lease, be entitled to the benefit of all public general or local laws relating to the speedy recovery of possession of lands and
tenements held over by Tenants that may be now in force or may hereafter be enacted. 

        21.    Condemnation.    

        (a)   If,
during the term of this Lease, all or a substantial part of the premises shall be taken by police power or under power of eminent domain, this Lease shall terminate
as of, and the rent (basic and additional) shall be apportioned to and abate from and after, the date of taking. Except as provided in paragraph 21(d) hereof. Tenant shall have no right to
participate in any award or damages for such taking and hereby assigns all of its right, title and interest therein to Landlord. For the purposes of this paragraph, "a substantial part of the
premises" shall mean such part that the remainder thereof is rendered inadequate for Tenant t s business and that such remainder cannot practicably be repaired and improved so as to be rendered
adequate to permit Tenant to carry on its business with substantially the same efficiency as before the taking. 

        (b)   If,
during the Lease term, less than a substantial part of the premises (as hereinabove defined) is taken by police power or under power of eminent domain, this Lease
shall remain in full force and effect according to its terms; and, except as provided in paragraph 21 (d) hereof, Tenant shall not have the right to participate in any award or damages
for such taking and Tenant hereby assigns all of its right, title and interest in and to the award to Landlord. In such event Landlord shall, at its expense, promptly make such repairs and
improvements as shall be necessary to make the remainder of the premises adequate to permit Tenant to carryon its business to substantially the same extent and with substantially the same efficiency
as before the taking; if Landlord does not substantially complete the making of such repairs or improvements within one 

16

 

hundred
twenty (120) days from the date of the taking, Tenant shall have the right to terminate this Lease provided Tenant gives Landlord written termination notice after the expiration of such
one hundred twenty (120) day period, so long as such notice is given prior to Landlord's substantial restoration of the premises as aforesaid. If, as a result of such taking, any part of the
premises is rendered permanently unusable, the basic annual rent reserved hereunder shall be reduced in such amount as may be fair and reasonable, which amount shall not exceed the proportion which
the area so taken or made unusable bears to the total area which was usable by Tenant prior to the taking. If the taking does not render any part of the premises unusable, there shall be no abatement
of rent. 

        (c)   For
purposes of this section, "taking" shall include a negotiated sale or lease and transfer of possession to a condemning authority under bona fide threat of
condemnation for public use, and Landlord alone shall have the right to negotiate with the condemning authority and conduct and settle all litigation connected with the condemnation. As hereinabove
used, the words "award or damages" shall, in the event of such sale or settlement, include the purchase or settlement price. 

        (d)   Nothing
herein shall be deemed to prevent Tenant from claiming and receiving from the condemning authority, if legally payable, compensation for the taking of Tenant's
own tangible property and such amount as may be payable by statute or ordinance toward Tenant's damages for Tenant's loss of business, removal and relocation expenses, as well as any other damages for
loss of its lease (including compensation for any increased rent that Tenant shall incur as a result of relocation) so long as such other amounts do not reduce or in any manner adversely affect
Landlord's entitlement or ability to obtain the amounts to which Landlord would otherwise be entitled as compensation under applicable law. 

        22.    Subordination.    This Lease shall be subject to and subordinate at all times to the
lien of any mortgages and/or deeds of trust encumbering the Building (unless the mortgagee or holder of the deed of trust elects to have Tenant's interest hereunder superior to the interest of the
mortgagee or holder of such deed of trust), so long as the mortgagee or holder of such deed of trust agree to a subordination, non-disturbance and attornment agreement, in form and
substance reasonably satisfactory to Tenant, which includes provisions which permit Tenant to remain in possession following any foreclosure or other action by such lender for so long as Tenant is not
in default under the provisions of this Lease. The Tenant agrees to execute any documents necessary, subsequent to the execution of this Lease, which are required to effect such subordination. 

        23.    Right to Perform Covenants.    

        (a)   If
Tenant shall fail to perform any covenant or duty required of it by this Lease or by law, Landlord shall have the right (but not the obligation) to perform the same
if Tenant has not done so, subject to the same notice requirements and other terms and conditions set forth in paragraph 12 (a) (ii) of this Lease. The reasonable cost thereof to
Landlord shall be deemed to be additional rent hereunder payable by Tenant, shall be due and payable by Tenant upon demand, and Landlord shall have the same rights and remedies with respect to such
additional rent as Landlord has with respect to the rental reserved hereunder. (b) If Landlord shall fail to perform any covenant or duty required of it by this Lease or by law, Tenant shall
have the right (but not the obligation) to perform the same if Landlord has not done so, subject to the same notice requirements and other terms and conditions set forth in paragraph 12(e) of
this Lease 

        24.    Attornment.    

        (a)   If
Landlord assigns this Lease or the rents hereunder to a creditor as security for a debt, Tenant shall, after notice of such assignment and upon demand by Landlord or
the assignee, pay all sums thereafter becoming due to Landlord hereunder either to Landlord or to such assignee, as required by such notice. Tenant shall also, upon receipt of such notice, have all
policies of insurance required hereunder endorsed so as to protect the assignee's interest as it may appear and shall deliver such policies, or certificates thereof, to the assignee. 

        (b)   In
the event the premises are sold at any foreclosure sale or sales, by virtue of any judicial proceedings or otherwise, this Lease shall continue in full force and
effect and Tenant agrees, upon request, to attorn to and acknowledge the foreclosure purchaser or purchasers at such sale as the landlord hereunder. 

17

   
        25.    Non-Waiver of Future Enforcement.    The receipt of rent by Landlord, with
knowledge of any breach of this Lease by Tenant or of any default on the part of Tenant in the observance or performance of any of the conditions or covenants of this Lease, shall not be deemed to be
a waiver of any provision of this Lease, including the provision breached. No failure on the part of Landlord or of the Tenant to enforce any covenant or provision herein contained nor any waiver of
any right hereunder by Landlord or Tenant shall discharge or invalidate such covenant or provision or shall affect the right of Landlord or Tenant to enforce the same in the event of any subsequent
default. The receipt by Landlord of any rent or any sum of money or any other consideration hereunder paid by Tenant after the termination, in any manner, of the term herein demised, or after the
giving by Landlord of any notice hereunder to effect such termination, shall not reinstate, continue or extend the term herein demised, or destroy, or in any manner impair the efficacy of any such
notice of termination as may have been given hereunder by Landlord to Tenant prior to the receipt of any such sum of money or other consideration, unless so agreed to in writing and signed by
Landlord. Neither acceptance of the keys nor any other act or thing done by Landlord or any agent or employee during the term herein demised shall be deemed to be an acceptance of a surrender of the
premises, excepting only an agreement in writing signed by Landlord accepting or agreeing to accept such surrender. 

        26.    Personal Property Taxes.    Tenant shall be responsible for and shall pay any taxes or
assessments levied or assessed during the term of this Lease against any personal property or trade fixtures of Tenant of any kind, owned by Tenant or placed in, upon or about the premises by Tenant. 

        27.    Recordation of Lease.    Tenant agrees that it will, upon Landlord's request, execute a
Memorandum of this Lease in a form suitable for recording under applicable Virginia law. The party recording such Memorandum of Lease shall pay all costs of recordation, including any transfer or
recordation taxes thereon. 

        28.    Notices.    Any notice required by this Lease shall be sent by certified mail or by a
recognized overnight delivery service such as Federal Express with a receipt by addressee to Landlord at Merritt, 2066 Lord Baltimore Drive, Baltimore, Maryland 21244. Notices shall be deemed to be
received when the certified mail receipt or overnight delivery receipt indicates it was actually received by the addressee. Any notice required by this Lease shall be sent in the same manner to Tenant
at the Premises, to the attention of                        , with a copy to Tenant at 1120 Vermont Avenue, N.W., Suite 550,
Washington, DC 20005, attention: Contract Manager. Either party may, at any time,
and from time to time, designate in writing a substitute address for that set forth above, and thereafter all notices to such party shall be sent to such substitute address. 

        29.    Waiver of Jury Trial.    THE LANDLORD AND THE TENANT WAIVE ALL RIGHTS TO A TRIAL BY
JURY IN ANY ACTION, COUNTERCLAIM, OR PROCEEDING BASED UPON, OR RELATED TO, THE SUBJECT MATTER OF THIS LEASE. THIS WAIVER APPLIES TO ALL CLAIMS AGAINST ALL PARTIES TO SUCH ACTIONS AND PROCEEDINGS,
INCLUDING PARTIES WHO ARE NOT PARTIES TO THIS LEASE. THIS WAIVER IS KNOWINGLY, INTENTIONALLY, AND VOLUNTARILY MADE BY THE TENANT AND THE TENANT ACKNOWLEDGES THAT NEITHER THE LANDLORD, NOR ANY PERSON
ACTING ON BEHALF OF THE LANDLORD, HAS MADE ANY REPRESENTATIONS OF FACT TO INDUCE THIS WAIVER OF TRIAL BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. THE TENANT FURTHER ACKNOWLEDGES THAT IT HAS
BEEN REPRESENTED (OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED) IN THE SIGNING OF THIS LEASE AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF ITS OWN FREE WILL, IN THAT IT
HAS HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL. THE TENANT FURTHER ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THE MEANING AND RAMIFICATIONS OF THIS WAIVER PROVISION AND AS EVIDENCE OF
THIS FACT SIGNS ITS INITIALS. 

18

 

        30.    Severability.    

        (a)   It
is agreed that, for the purpose of any suit brought or based on this Lease, this Lease shall be construed to be a divisible contract, to the end that successive
actions may be maintained thereon as successive periodic sums shall mature or be due hereunder, and it is further agreed that failure to include in any suit or action any sum or sums then matured or
due shall not be a bar to the maintenance of any suit or action for the recovery of said sum or sums so omitted; and Tenant agrees that it will not, in any suit or suits brought or arising under this
Lease for a matured sum for which judgment has not previously been obtained or entered, plead, rely on or interpose the defenses of res adjudicata,
former recovery, extinguishment, merger, election of remedies or other similar defense as a default to said suit or suits. 

        (b)   If
any term, clause or provision of this Lease is declared invalid by a court of competent jurisdiction, the validity of the remainder of this Lease shall not be
affected thereby but shall remain in full force and effect. 

        31.    Non-Waiver.    It is understood and agreed that nothing herein shall be
construed to be a waiver of any of the terms, covenants or conditions herein contained, unless the same shall be in writing, signed by the party to be charged with such waiver, and no waiver of the
breach of any covenant herein shall be construed as a waiver of such covenant or any subsequent breach thereof. No mention in this Lease of any specific right or remedy shall preclude Landlord from
exercising any other right or from having any other remedy or from maintaining any action to which it may be otherwise entitled either at law or in equity. 

        32.    Successors and Assigns.    

        (a)   Except
as herein provided, this Lease and the covenants and conditions herein contained shall inure to the benefit of and be binding upon Landlord, its successors and
assigns; shall be binding upon Tenant, its successors and assigns (including without limitation any trustee in bankruptcy or debtor in-possession, and any assignee of the same); and shall
inure to the benefit of Tenant and only such assignees of Tenant to whom an assignment by Tenant has been consented to in writing by Landlord. In the event more than one person, firm or corporation is
named herein as Tenant, the liability of all parties named herein as Tenant shall be joint and several. 

        (b)   In
the event Landlord's interest under this Lease is transferred or assigned and written notice thereof is given to Tenant, Landlord (or any subsequent assignee or
transferee of Landlord's interest under this Lease who gives such notice to Tenant) shall automatically be relieved and released from and after the date of such transfer or conveyance from all
liability hereunder. Further, the liability of Landlord, its successors and assigns, under this Lease shall at all times be limited solely to Landlord's interest in the land and improvements
comprising the Building and in the event the owner of Landlord's interest in this Lease is at any time an individual, partnership, joint venture or unincorporated association, Tenant agrees that such
individual or the members or partners of such partnership, joint venture or unincorporated association shall not be personally or individually liable or responsible for the performance of any of
Landlord's obligations hereunder. 

        33.    Security Deposit.    

        (a)   Simultaneously
with the execution of this Lease, Tenant has deposited with Landlord a statement, receipt, passbook or other written evidence of the fact that Tenant has
deposited with First Union National Bank ("FUNB") the sum of Five Hundred Thousand Dollars ($500,000.00) in a segregated account (the "Account") to be held in the name of Landlord, as a security
deposit for the faithful performance of Tenant's obligations under this Lease. Landlord has authorized the Bank to pay interest earned on the Account directly to Tenant so long as the Account balance
does not fall below Five Hundred Thousand Dollars ($500,000.00). Landlord has further authorized the Bank to invest the Account only in fully liquid overnight investments or investments having the
full faith and credit of the United States, such as United States Treasury Bonds, or 

19

 

obligations
secured by Letters of Credit or guaranties provided by FUNB or nationally recognized financial institutions    of similar size and credit, as directed by Tenant from time to
time. Tenant shall not have any right to withdraw from the Account, except for interest only withdrawals to be made not more frequently than once per month. Tenant agrees that Landlord shall have the
right, but not the obligation, to withdraw from the Account to cure or remedy any default by Tenant hereunder, including default in the payment of rent, if any such default is not cured by Tenant
within any applicable grace or cure period set forth in this Lease. Landlord shall assign and transfer to Tenant all funds remaining in the Account within fifteen (15) days after vacating of
the premises by Tenant or any other termination of this Lease (or upon termination of the last renewal term of this Lease if this Lease contains a renewal option and Tenant properly exercises said
option), provided that Landlord shall nevertheless have the right to withdraw from the Account for any damages sustained by Landlord if (i) Tenant is then in default under any of the provisions
of this Lease subject to applicable grace and cure periods, (ii) there is damage to the premises beyond ordinary wear and tear and the premises have not been left in a clean condition and in
good order with all debris, rubbish and trash placed in proper containers, (iii) all keys to the premises have not been returned to the Landlord, and (iv) Tenant's forwarding address has
not been left with Landlord. If, during the Lease term, Landlord withdraws from the Account and uses all, or any portion, of the proceeds thereof to cure any default by Tenant under this Lease, Tenant
agrees to deposit with Landlord, within fifteen (15) days after Landlord's written notice, a cash sum in sufficient amount, which when added to any remaining funds in the Account, will equal
the full principal sum of the security deposit, Landlord shall be entitled to commingle any such cash security deposit with its own funds, and Landlord shall not be required to pay Tenant any interest
thereon. 

        (b)   Notwithstanding
any of the provisions of paragraph (a) of this Section 33, if, at the end of the first five (5) years of the Lease term Tenant has
maintained a net worth of Eighty Million Dollars ($80,000,000.00) or more on a sustained basis for a period of not less than one (1) year (as evidenced by a CPA certification to Landlord with
such reasonable backup financial statements as Landlord may require), the principal amount of the Account may be reduced to Ninety-Six Thousand Dollars ($96,000.00}, provided
(i) Tenant is not then in default under this Lease beyond any applicable cure or grace period, and (ii) if at such time Tenant is a subsidiary to a parent corporation or is controlled by
another corporation or other entity, the parent or controlling entity shall execute a Guaranty, in form reasonably satisfactory to Landlord, pursuant to which such entities unconditionally agree to
pay all rental arrearages of Tenant and perform all other obligations of Tenant under the Lease if Tenant defaults in the payment or performance thereof. In the event the amount of the Account is
reduced pursuant to this paragraph, Landlord agrees to execute such documents as the Bank may require in order to effectuate such reduction and permit the disbursement of all excess funds to Tenant. 

        34.    Notices to Mortgagee.    Tenant agrees that a copy of any notice of default from Tenant
to Landlord shall also be sent to the holder of any mortgage or deed of trust on the premises, provided Tenant has been given written notice of the fact that such mortgage or deed of trust has been
made; and Tenant shall allow said mortgagee or holder of the deed of trust a reasonable time, not to exceed sixty (60) days from the receipt of said notice, to cure, or cause to be cured, any
such default. If such default cannot reasonably be cured within the time specified herein, then such additional time as may be necessary shall be allowed, provided the curing of such default is
commenced and diligently pursued (including, but not limited to, commencement of foreclosure proceedings if necessary to effect such cure) in which event this Lease shall not be terminated while such
remedies are being thus diligently pursued. 

        35.    Estoppel Certificate.    Tenant shall, at any time and from time to time during the
term of this Lease or any renewal thereof, upon request of Landlord, execute, acknowledge, and deliver to 

20

 

Landlord
(or its designee) a statement in writing, certifying that this Lease is unmodified and in full force and effect if such is the fact (or if there have been any modifications thereof, that the
same is in full force as modified and stating the modifications) and the dates to which the rents and other charges have been paid in advance, if any. Any such statement delivered pursuant to this
paragraph may be relied upon by any prospective purchaser of the estate of Landlord or by the mortgagee or any assignee of any mortgagee or the trustee or beneficiary of any deed of trust constituting
a lien on the premises or the Building. 

        36.    Bankruptcy.    

        (a)   An
"Act of Bankruptcy" shall mean: 

        (i)    the
application by Tenant or any guarantor of Tenant or its or their consent to the appointment of a receiver, trustee or liquidator of Tenant or any guarantor of Tenant
or a substantial part of its or their assets; 

        (ii)   the
filing of a voluntary petition in bankruptcy or the admission in writing by Tenant or any guarantor of Tenant of its inability to pay its debts as they become due; 

        (iii)  the
making by Tenant or any guarantor of Tenant of an assignment for the benefit of its creditors; 

        (iv)  the
filing of a petition or an answer seeking a reorganization or an arrangement with its creditors or an attempt to take advantage of any insolvency law; 

        (v)   the
filing of an answer admitting the material allegations of a petition filed against Tenant or any guarantor of Tenant in any bankruptcy, reorganization or insolvency
proceeding; 

        (vi)  the
entering of an order, judgment or decree by any court of competent jurisdiction adjudicating Tenant or any guarantor of Tenant, as a bankrupt or an insolvent,
approving a petition seeking such a reorganization, or appointing a receiver, trustee or liquidator of Tenant or any guarantor of Tenant or of all or a substantial part of its or their assets; or 

        (vii) the
commencing of any proceeding under any bankruptcy, reorganization, arrangement, insolvency, readjustment, receivership or similar law, and the continuation of such
order, judgment, decree or proceeding unstayed for a period of sixty (60) days. 

        (b)   Upon
the occurrence of an Act of Bankruptcy, this Lease and all rights of Tenant hereunder shall automatically terminate with the same force and effect as if the date of
any such event were the date stated herein for the expiration of the term, and Tenant shall vacate and surrender the premises, but shall remain liable as herein provided. Landlord reserves any and all
remedies provided herein or at law or in equity. 

        (c)   If
this Lease is not terminated in accordance with subsection (b) above because such termination is not permitted under the Bankruptcy
Code, 11 U.S.C. § 101 et seq. (the "Bankruptcy Code"), then upon the filing of a petition by or against Tenant under
the Bankruptcy Code, Tenant, as debtor and as debtor in possession, and any trustee who may be appointed, agree: 

        (i)    To
perform each and every obligation of Tenant under this Lease until such time as this Lease is either rejected or assumed by order of the United States Bankruptcy
Court; 

        (ii)   To
pay monthly in advance on the first day of each month as reasonable compensation for use and occupancy of the premises an amount equal to all basic rent and all
additional rent reserved hereunder; 

        (iii)  To
reject or assume this Lease within sixty (60) days of the filing of such petition; 

        (iv)  To
give Landlord at least thirty (30) days prior written notice of any proceeding relating to any assumption of this Lease; 

21

 

        (v)   To
give Landlord at least thirty (30) days prior written notice of any abandonment of the premises, any such abandonment to be deemed conclusively a rejection of
this Lease; 

        (vi)  To
be deemed conclusively to have rejected this Lease in the event of the failure to comply with any of the above; and 

        (vii) To
be deemed to have consented to the entry of an order by an appropriate United States Bankruptcy Court providing all of the above, waiving notice and hearing of the
entry of same. 

        (d)   Notwithstanding
anything in this Lease to the contrary, all amounts payable by Tenant to or on behalf of Landlord hereunder, whether or not expressly denominated as
rent, shall constitute "rent" for the purposes of Section 502(b)(7) of the Bankruptcy Code, including, without limitation, reasonable attorney's fees incurred by Landlord by reason of Tenant's
bankruptcy. 

        (e)   In
the event that this Lease is assigned to any person or entity pursuant to the provisions of the Bankruptcy Code, any and all monies or other consideration payable or
otherwise to be delivered in connection with such assignment shall be paid or delivered to Landlord, shall be and remain the exclusive property of Landlord, and shall not constitute property of Tenant
or of the estate of Tenant within the meaning of the Bankruptcy Code. Any and all monies or other consideration constituting Landlord's property under the preceding sentence not directly paid or
delivered to Landlord shall be held in trust for the benefit of Landlord by the recipient thereof and be promptly paid to or turned over to Landlord. If Tenant assumes this Lease and proposes to
assign the same pursuant to the provisions of the Bankruptcy Code to any person or entity who shall have made a bona fide offer to accept an assignment of this Lease on terms acceptable to Tenant, the
notice of such proposed assignment setting forth (i) the name and address of such person; (ii) all of the terms and conditions of such offer; and (iii} adequate assurance to be provided
to Landlord to assure such assignee's future performance under the Lease, including, without limitation, the assurance referred to in Section 365(b)(3) of the Bankruptcy Code, or any such
successor or substitute legislation or rule thereto, shall be given to landlord by Tenant no later than twenty (20) days after receipt by Tenant, but in any event no later than ten
(10) days prior to the date that Tenant shall make application to a court of competent jurisdiction for authority and approval to enter into such assignment and assumption, and Landlord shall
thereupon have the prior right and option, to be exercised by notice to Tenant given at any time prior to the effective date of such proposed assignment, to accept an assignment of this Lease upon the
same terms and conditions and for the same consideration, if any, as the bona fide offer made by such person, less any brokerage commission which may be payable out of the consideration to be paid by
such person for the assignment of this Lease. 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 all of the obligations arising under this Lease on and after the date of such
assignment. Any such assignee shall, upon demand, execute and deliver to Landlord an instrument confirming such assumption. 

        (f)    Nothing
contained in this Section 35 shall be deemed in any manner to limited Landlord's rights and remedies under the Bankruptcy Code, as presently existing or
as may hereafter be amended. 

        (g)   No
default under this Lease by Tenant, either prior to or subsequent to any Act of Bankruptcy, shall be deemed to have been waived unless expressly done so in writing by
Landlord. 

        (h)   Neither
Tenant's interest in this Lease, nor any estate created hereby in Tenant nor any interest herein or therein, shall pass to any trustee or receiver or assignee
for the benefit of creditors or otherwise by operation of law except as may specifically be provided by the Bankruptcy Code. 

22

 

        37.    Broker's Commission.    Tenant and Landlord warrant that they have dealt with no broker
in connection with this Lease except ITRA/Washington Realty Group (the "Broker"), and agree to indemnify and save the other harmless from all claims, actions, damages, costs and expenses and liability
whatsoever, including reasonable attorney's fees, that may arise from any breach of this warranty. Landlord shall pay all commissions owing to the Broker in accordance with a separate agreement
between Landlord and the Broker, and Landlord hereby agrees to defend, indemnify and hold Tenant harmless from any claims made by the Broker with respect to any commissions which are due or may be due
in connection with this Lease. 

        38.    Rules and Regulations.    Tenant shall faithfully observe and comply with the rules and
regulations attached hereto as Exhibit D, and with any reasonable and non-discriminatory amendments or modifications thereto that Landlord shall, from time to time, promulgate with
respect to the Building and all other similar buildings within the Park, provided that such amendments or modifications may not apply to commercial tenants or to tenants having particular security or
access requirements. Any such amendments or modifications to the rules and regulations shall be binding upon Tenant upon delivery of a copy of them to Tenant. Landlord shall not be responsible to
Tenant for the nonperformance of any of said rules and regulations by any other tenants or occupants. 

        39.    Environmental Provisions.    

        (a)   Tenant
and its successors and assigns shall use and operate the building, the property and the leased premises, respectively, at all times during the term hereof, under
and in compliance with the laws of the Commonwealth of Virginia and in compliance with all applicable Environmental Legal Requirements. "Environmental Legal Requirements" shall mean any applicable law
relating to the environment, including, without limitation, relating to releases, discharges or omissions to air, water, land or groundwater, to the withdrawal or use of groundwater, to the use and
handling of polychlorinated biphenyls ("PCB's") or asbestos, or asbestos containing products, to the disposal, treatment, storage or management of solid or other hazardous or harmful wastes or to
exposure to toxic, hazardous or other harmful materials (collectively "Hazardous Substances") and any regulation or final order or directive issues pursuant to such statute or ordinance, in each case
applicable to the premises, the building or its use or modification by Tenant, including without limitation the following: the Clean Air Act, the Federal Water Pollution Control Act ("FWPCA"), the
Safe Drinking Water Act, the Toxic Substances Control Act, the Comprehensive Environmental Response Compensation and Liability Act, as amended by the Solid and Hazardous Waste Amendments of 1984
("RCRA"), and any state or federal statutes addressing similar matters, and any state statute providing for financial responsibility for clean-up or other actions with respect to the
release or threatened release of any of the above-referenced substances. 

        (b)   Tenant
hereby indemnifies and saves Landlord harmless from all liabilities and claims arising from the use, storage or placement of any Hazardous Substances upon the
premises or elsewhere within the building or property of Landlord (if brought or placed thereon by Tenant, its agents, employees, contractors or invitees); and Tenant shall (i) within thirty
(30) days after written notice of the violation thereof, take or cause to be taken, at its sole expense, such actions as may be necessary to comply with all Environmental Legal Requirements and
(ii) within fifteen (15) days after written demand therefor, reimburse Landlord for any amounts expended by Landlord to comply with any Environmental Legal Requirements with respect to
the premises or with respect to any other portions of Landlord's building or property as the result of the placement or storage of Hazardous Substances by Tenant, its agents, employees, contractors or
invitees, and agrees to defend Landlord in connection with any judicial or administrative investigation or proceeding relating thereto with counsel
reasonably acceptable to Landlord. 

        (c)   Tenant
hereby grants Landlord, and Landlord's agents and employees (including, but not limited to, any engineers or other parties engaged in the testing of Hazardous
Substances) the right to enter upon the premises for the purpose of determining whether Tenant, its agents, 

23

 

employees,
contractors or invitees, has violated any of the provisions of this Section between the hours of 9:00 A.M. and 5:00 P.M. on any day except Sunday or any legal holiday on which
Tenant shall not be open for business upon reasonable prior notice to Tenant and provided that Tenant is afforded a reasonable opportunity to provide an escort should the nature of Tenant's business
so require; provided that if Landlord has reasonable grounds for believing that Tenant is in violation of this Section 39, Landlord or its
agents, employees or engineers may enter upon the premises immediately upon first giving Tenant such reasonable notice as may be appropriate under the circumstances. 

        (d)   Prior
to the execution and delivery of this Lease, Landlord shall deliver to Tenant its most recently conducted Phase I environmental report regarding the Property (the
"Existing Environmental Report"). Landlord makes no representation or warranty as to the accuracy or completeness of the Existing Environmental Report. Landlord represents and warrants, to Tenant
that, to the best of Landlord's knowledge and except as described in the Existing Environmental Report, the Property is, and will as of the Rent
Commencement Date be, free from Hazardous Substances and in compliance with all Environmental Legal Requirements, except to the extent any such violation thereof shall be caused by Tenant, its agents,
employees, invitees or contractors. Landlord hereby indemnifies and saves Tenant harmless from all liabilities and claims arising from the use, storage or placement of any Hazardous Substances upon
the premises or elsewhere within the Building (if brought or placed thereon by Landlord, its agents, employees, contractors or invitees); and Landlord shall (i) within thirty (30) days
after written notice of the violation thereof, take or cause to be taken, at its sole expense, such actions as may be necessary to comply with all Environmental Legal Requirements and
(ii) within thirty (30) days after written demand therefor, reimburse Tenant for any amounts expended by Tenant to comply with any Environmental Legal Requirements with respect to the
premises or with respect to any other portions of the Building as the result of the placement or storage of Hazardous Substances by Landlord, its agents, employees, contractors or invitees, and agrees
to defend Tenant with counsel reasonably acceptable to Tenant in connection with any judicial or administrative investigation or proceeding relating thereto. 

        40.    Tenant Installations.    

        (a)    Emergency Generator.    Tenant shall have the right to install an emergency generator and fuel tank on a pad
site adjacent to the Building, mounted to a concrete slab, all of which shall be properly screened, subject to Landlord's prior written approval of the location, equipment and screening. Such
installation and the repair and maintenance thereof shall be performed by Tenant, at Tenant's sole cost, in accordance with all applicable codes and regulations. 

        (b)    Supplemental HVAC.    Tenant shall have the right to install supplemental HVAC equipment on the roof of the
Building in order to providing supplemental cooling for the "Data Center" hereinafter described. Tenant may utilize existing screening located on the roof, but shall be required to add additional
screening if the height of the supplemental equipment so requires. Such installation shall be performed by Tenant, at Tenant's sole cost, in accordance with all applicable codes and regulations.
Before commencing such installation, Tenant shall submit plans and specifications to Landlord for Landlord's approval as to the location of the equipment, the type and extent of screening and other
pertinent details for Landlord's prior written approval. 

        (c)    Data Center.    Tenant shall have the right to install the improvements necessary or appropriate to create a
data center (the "Data Center") within the premises, at the approximate location identified on Exhibit C. Landlord represents and warrants that the zoning laws and applicable regulations permit
the installation of the Data Center along with Tenant' intended use of the balance of the Premises. Landlord shall complete construction of the area of the premises designated for the Data Center in
shell condition as more particularly provided in Exhibit B attached hereto, with access to all necessary utilities available to the Data Center, at least thirty (30) days prior to the
Commencement Date, and Tenant shall be permitted to commence its work 

24

 

to
complete construction of the Data Center, so long as such work does not unreasonably interfere with the completion of Landlord's Work by Landlord. The Data Center will be connected to and cooled by
the supplemental HVAC equipment described above. Such installation shall be performed by Tenant, at Tenant's sole cost, in accordance with all applicable codes and regulations. 

        (d)    Roof Rights.    Tenant shall have the right to install communications, HVAC (as above), or other equipment
benefiting the premises on the roof of the Building at no additional charge during the Lease term or any extensions thereof. Such installations shall be performed by Tenant, at Tenant's sole cost, in
accordance with all applicable codes and regulations. All of the foregoing installations shall be subject to Landlord's prior written approval of the location, method of installation, type and extent
of screening and other reasonably pertinent detail concerning the same. Landlord shall use reasonable efforts to permit Tenant access to the premises and the Building prior to the Commencement Date to
complete such improvements as soon as practicable. 

        41.    Hours of Operation.    Subject to condemnation, casualty and other causes beyond the
control of Landlord and further subject to Landlord's reasonable security requirements, access to the premises, the roof, and all other parts of the Building shall be permitted on a
twenty-four (24) hour per day, seven (7) day per week basis. 

        42.    Captions.    The captions of the various sections of this Lease are for convenience
only and are not a part of this Lease. Such captions shall not be construed to define or limit any of the provisions of this Lease. 

        43.    Final and Entire Agreement.    This Lease contains the final and entire agreement
between the parties hereto, and neither they nor their agents shall be bound by any terms, conditions or representations not herein written. 

        44.    Tenant Representative.    The name, address and telephone number of Tenant's s
representative to be contacted in event of emergency are as follows                        : 

        45.    Landlord's Representations and Warranties.    Landlord represents, warrants and agrees
as follows: (i) the execution, delivery and performance of this Lease has been duly authorized and this Lease constitutes the binding agreement of Landlord, enforceable in accordance with its
terms, (ii) Landlord owns fee simple title to the Property free and clear of any encumbrances or restrictions except for a Deed of Trust for the benefit of Allfirst Bank and as otherwise
disclosed to Tenant prior to the date hereof, and (iii) when completed, the Premises and the Building will comply with all laws, orders, rules, requirements and regulations of any and all
governmental departments, bodies, bureaus, agencies and officers, and all rules, directions, requirements and recommendations of the local board of fire underwriters and the fire insurance rating
organizations having jurisdiction over the area in which the premises are situated, or other bodies or agencies now or hereafter exercising similar functions in the area in which the premises are
situated, in any way pertaining to the premises or the use and occupancy thereof. 

        46.    Consents and Approvals.    Whenever this Lease calls for the consent or approval of
Landlord or Tenant, except where specifically provided to the contrary, such consent or approval shall not be unreasonably withheld, conditioned or delayed. 

25

 

        WITNESS the hands and seals of the parties hereto as of the day and year first above written. 

	 	 	 	 	LANDLORD:
	
WITNESS:	
 	

 	
 	

MERRITT-LTI, LLC
	
/s/ [ILLEGIBLE]	
 	

 	
 	

By:	

/s/ [ILLEGIBLE]
	
	 	 	 	 	

	 	 	(SEAL)	 	 	 
	
WITNESS:	
 	

 	
 	

NEUSTAR, INC.
	

/s/ [ILLEGIBLE]	
 	

 	
 	

By:	

/s/ [ILLEGIBLE]
	
	 	 	 	 	

	 	 	(SEAL)	 	 	 

26

        THIS ADDENDUM, made as of the 16th day of May, 2001, by and between MERRITT-LTl, LLC,
Landlord, and NEUSTAR, INC., Tenant. 

 
  EXPLANATORY STATEMENT    
    

        By Lease (the "Lease") dated May 19, 2000, Landlord leased to Tenant, and Tenant rented from Landlord, certain premises containing approximately 40,440
rentable square feet within the Building known as Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza, Sterling, Virginia 20160. Tenant and Landlord have agreed to modify the Lease as herein
set forth. In addition, in accordance with Section 33 of the Lease, Tenant has deposited with Landlord a passbook from First Union National Bank in the amount of $500,000 as a security deposit
for the faithful performance of Tenant's obligations under the Lease. Tenant wishes to substitute a $500,000 Letter of Credit with Landlord in place of the aforesaid passbook as hereinafter provided. 

        NOW, THEREFORE, THIS ADDENDUM WITNESSETH, that for and in consideration of $5.00 and other good and valuable considerations, Landlord and
Tenant hereby covenant and agree as follows: 

        1.     Section 4
of the Lease is hereby amended to read as follows: 

        4.    Compliance with Laws.    Tenant covenants and agrees that it will, at its own expense,
observe, comply with and execute all laws, orders, rules, requirements and regulations of any and all governmental departments, bodies, bureaus, agencies and officers, and all rules, directions,
requirements and recommendations of the local board of fire underwriters and the fire insurance rating organizations having jurisdiction over the area in which the premises are situated, or other
bodies or agencies now or hereafter exercising similar functions in the area in which the premises are situated, in any way pertaining to the premises or the use and occupancy thereof. Notwithstanding
the foregoing, Tenant shall not be required to pay the cost of any future building code related capital repairs or renovations to the Building or Property of Landlord except as relates to the interior
of the Premises, unless any such repairs or renovations are required as the result of any alternations made by Tenant to the Premises. In the event Tenant shall fail or neglect to comply with any of
the aforesaid laws, orders, rules, requirements or recommendations, Landlord or its agents may, following not less than ten (10) days prior written notice (provided that in the event of an
emergency, the notice period may be decreased commensurate with the emergency), enter the premises and take all such action and do all such work in or to the premises as may be necessary in order to
cause compliance with such laws, orders, rules, requirements or recommendations, and Tenant covenants and agrees to reimburse Landlord promptly upon demand for the reasonable expenses incurred by
Landlord in taking such action and performing such work. 

        2.     Section 5
of the Lease is hereby amended to read as follows: 

        5.    Assignment and Subletting.    Tenant covenants and agrees not to assign this Lease, in
whole or in part, nor to sublet the Additional Premises or any Expansion Space, or any part thereof, nor grant any license or concession for all or any part thereof, without the prior written consent
of Landlord in each instance first had and obtained, which Landlord shall not unreasonably withhold, condition or delay. Notwithstanding the foregoing, Tenant may assign this Lease, or sublet all or
any portion of the Additional Premises or Expansion Space to any subsidiary, affiliate or successor of Tenant (collectively "a Related Party") without Landlord's prior written consent, but Tenant
shall nevertheless give Landlord written notice of any such assignment or sublease within five days after the effective date thereof. If any assignment or subletting is permitted pursuant to this
paragraph, (whether or not to a Related Party) Tenant shall not be relieved from any liability whatsoever under this Agreement. In the event that the amount of the rent or other consideration to be
paid to Tenant by any assignee or sublessee (other than a Related Party) is greater than the rent required to be paid by the Tenant to the Landlord pursuant to this Agreement after reimbursement of
any reasonable costs incurred by Tenant (such as tenant's improvements, legal fees, brokerage commissions and the like) incurred by Tenant in procuring such assignment or sublease (the "Profit"),
Tenant shall pay Landlord 50% of the Profit when and as received by Tenant from such assignee or sublessee. Landlord shall not be entitled to any portion of the Profit 

 

in
the event the assignee or sublessee is a Related Party. Any consent by Landlord to an assignment or subletting shall not constitute a waiver of a necessity of such consent as to any subsequent
assignment or subletting. An assignment for the benefit of Tenant's creditors or otherwise by operation of law shall not be effective to transfer or assign Tenant's interest in the Additional Premises
or Expansion Space unless Landlord shall have first consented thereto in writing. In the event Tenant desires to assign this Lease or to sublease more than 50% in the aggregate of the entire
Additional Premises and/or Expansion Space then leased by it to a party other than a Related Party and for fifty percent (50%) or greater of the remaining term under the Lease, then Landlord shall
have the right and option to terminate this Agreement with respect to that particular building only which right and option shall be exercisable by written notice from Landlord to Tenant within ten
(10) business days fom the date Tenant gives Landlord written notice of its desire to assign or sublease to other than a Related Party. If Landlord fails to give timely notice of such
termination election, then Landlord shall be deemed to have approved such requested sublease or assignment as requested by Tenant. 

        (b)   It
is agreed that it shall not be a reasonable basis for Landlord to withhold permission for subletting assignments by Tenant if Landlord (i) is negotiating with
the proposed subtenant(s) of Tenant for other office space owned or controlled by Landlord, or (ii) has other office space available for rent in other buildings owned or controlled by Landlord. 

        (c)   Landlord
agrees that it will respond to any request by Tenant for an approval of a prospective sublease or assignment within ten (10) business days of Tenant's
written request to be accompanied by (i) the name of the proposed entity to include a description of the core business and the intended use of the premises to be assigned or subleased,
(ii) reasonable and customary financial information to the extent available, (iii) a floor plan showing the intended area to be subleased or assigned, and (iv) an executed term
sheet setting forth the basic terms of the prospective transaction which shall not be deemed to mean a negotiated or executed assignment or sublease agreement. If Landlord fails to give timely notice
of such termination election, then Landlord shall be deemed to have approved such requested sublease or assignment as requested by Tenant. 

        3.     The
following new Paragraph 6(d) is hereby inserted in the Lease: 

        (d)   Notwithstanding
any of the foregoing provisions of this Section 6, Operating Costs, as used herein, shall be allocated only to the Building and all land and
common area and facilities, including parking areas, which are directly adjacent, allocated and dedicated to the Building, (ii) the allocation of all direct and indirect personnel costs shall
be equitably spread across all of the buildings and sites in the entire Park, and not just against the leased portions of the buildings in the Park, (iii) the allocation of CAM fees shall not
be charged or allocated against vacant office space in the Park, and (iv) Tenant shall have thirty (30) days from the date of Tenant's receipt of the year end invoice to pay its pro rata
share of Operating Costs and CAM. 

        4.     The
first sentence of Paragraph 8(b) of the Lease is amended to provide that Tenant's insurers must be rated not less than A-IX in the most current
available "Best's Insurance Reports". 

        5.     The
following new paragraph is inserted at the end of Section 10 of the Lease: 

        Notwithstanding
any of the foregoing provisions, at the expiration or earlier termination of the term of this Lease, Landlord may elect to require Tenant to remove all or any part of the
alterations made by Tenant to the Premises subsequent to the Lease commencement date, provided that Landlord's right to require such removal shall be limited only to those alterations which
(i) are not of normal office design and installation, and (ii) for which Landlord has elected such removal in writing concurrent with Landlord's approval of such alterations. 

2

 

        6.     The
reference to "fifteen (15) days" in the last sentence of Paragraph 11(d) of the Lease is hereby amended to "thirty (30) days". 

        7.     The
reference to "five (5) days" in Subparagraph 12(a)(i) of the Lease is amended to "five (5) working days". 

        8.     The
following new paragraph 13(c) is hereby inserted in the Lease: 

        (c)   In
the event Landlord elects to restore or repair the Building and Premises in accordance with paragraph (b) above, and in the further event that Landlord does
not substantially complete such restoration or repair within two hundred seventy (270) days from the date of the fire or other casualty, Tenant shall have the right and option to terminate this
Lease by written notice thereof to Landlord given after the expiration of such two hundred seventy (270) day period, provided such notice is given before substantial completion of such repair
or restoration. 

        9.     The
second sentence of Section 20 of the Lease is hereby amended to read as follows: 

        If
Tenant shall occupy the Premises after such expiration or termination, it is understood that Tenant shall hold the Premises as a tenant from month-to-month,
subject to all of the other terms and conditions of this Lease, at a rental in an amount equal to 150% times the highest rental installment reserved in this Lease. 

        10.   The
first sentence of Paragraph 32(a) of the Lease is hereby amended to read as follows: 

        Except
as herein provided, this Lease and the covenants and conditions herein contained shall inure to the benefit of and be binding upon Landlord, its successors and assigns; and shall
be binding upon Tenant, its successors and assigns, including without limitation any trustee in bankruptcy or debtor-in-possession and any assignee of the same; and shall inure
to the benefit of Tenant and its Related Parties as set forth in Section 5 hereof, as well as any assignees of Tenant to whom an assignment by Tenant has been consented to in writing by
Landlord. 

        11.   Section 33
of the Lease is hereby amended to read as follows: 

        33.    Security Deposit.    

        (a)   Tenant
has heretofore deposited with Landlord a passbook in the amount of $500,000 as a security deposit for the faithful performance of Tenant's obligations under this
Lease. Landlord agrees that it will, upon Tenant's request, surrender the passbook and assign Landlord's rights therein to Tenant upon delivery by Tenant to Landlord of a Letter of Credit issued by a
federally chartered United States Bank in the face amount of $500,000, the form of which shall be subject to Landlord's reasonable approval. Tenant agrees that Landlord shall have the right, but not
the obligation, to draw upon such Letter of Credit (i) to cure or remedy any default by Tenant under this Lease, including default of the payment of rent, if any such default is not cured by
Tenant within any applicable grace or cure period set forth in this Lease, or (ii) if, at any time prior to the termination or expiration of the Lease Term, the issuing bank notifies Landlord
that it will not renew the Letter of Credit and Tenant fails within ten days after Landlord's written notice, to deposit with Landlord a substitute Letter of Credit in the same form and in the same
face amount as the Letter of Credit previously deposited by Tenant with Landlord or, in lieu thereof, a cash security deposit in an amount equal to the then full face amount of the Letter of Credit
which will not be renewed. The Letter of Credit, or cash security deposit, if not sooner drawn upon, shall be returned to Tenant within ten (10) days after the vacating of the premises by
Tenant and termination of this Lease, provided that Landlord shall nevertheless have the right to draw upon the Letter of Credit or cash security deposit in such amounts as reasonably required for any
damages sustained by Landlord if (i) Tenant is then in default under any of the provisions of this Lease, or (ii) there is damage to the premises beyond ordinary wear and tear and the
premises have not been left in a clean condition and in good order with all debris, rubbish and trash placed 

3

 

in
proper containers. If Landlord draws upon the Letter of Credit and uses all, or any portion, of the proceeds thereof to cure any default by Tenant under this Lease, Tenant agrees to deposit with
Landlord, within fifteen days after Landlord's written request, a cash sum in sufficient amount, which when added to any remaining proceeds from the Letter of Credit, will equal the full principal sum
of the security deposit. If the security deposit is in the form of cash, Landlord shall be entitled to commingle the security deposit with its own funds, and Landlord shall not be required to pay
Tenant any interest thereon. 

        (b)   Notwithstanding
any of the provisions of paragraph (a) of this Section 33, if at the end of the first five years of the Lease term, Tenant has maintained a
net worth of $80,000,000 or more on a sustained basis for a period of not less than one year (as evidenced by a CPA certification to Landlord with such reasonable backup financial statements as
Landlord may require), the face amount of the Letter of Credit may be reduced to $96,000, provided (i) Tenant is not then in default under this Lease beyond any applicable cure or grace period
and, (ii) if, at such time Tenant is a subsidiary or a parent corporation or is controlled by another corporation or other entity, the parent or controlling entity shall execute a Guaranty, in
form reasonably satisfactory to Landlord, pursuant to which such entities unconditionally agree to pay all rental arrearages of Tenant and perform all other obligations of Tenant under this Lease if
Tenant defaults in the payment or performance thereof. In the event the amount of the Letter of Credit is reduced pursuant to this paragraph, Landlord agrees to execute such documents as the issuing
bank may require in order to effectuate such reduction. 

        (c)   As
relates to the provisions herein, every use of the term "default" shall be limited to that meaning of the term set forth in section 12 of the Lease. 

        Except
as set forth in this Addendum, all of the terms and provisions of the Lease shall remain unchanged and in full force and effect. 

        12.   The
following new Section 37 is hereby inserted in the Lease: 

        37.    Renewal Options.    Provided Tenant is not then in default hereunder, Landlord hereby
grants Tenant the right to renew the Lease for two (2) additional terms of five (5) years each by giving Landlord written notice of Tenant's election to exercise such renewal option not
later than 270 days prior to the commencement of each renewal term. In the event said option is exercised in a timely manner, the Lease shall be extended for the renewal term as to which such
notice is given, under the same terms and conditions as are set forth in the Lease, except that the triple net base rent shall be a rental rate equal to 100% of the then prevailing triple net "Fair
Market Rental Value" for similar space. Fair Market Rental Value shall mean rentals for comparable buildings of similar age, size, location and quality. The Fair Market Rental Value for either of such
renewal terms shall not be less than 103% of the triple net base rental rate in effect immediately preceding the commencement of the renewal term in question, nor shall it be greater than 105% of the
triple net base rental rate in effect immediately preceding the commencement of such renewal term, and during each year of the renewal term(s), the triple net base rental so determined shall be
increased by 3% of the preceding year's triple net rental rate. 

4

 

        AS WITNESS the hands and seals of the parties hereto as of the day and year first above written. 

	WITNESS:	 	MERRITT-LTI, LLC	 
	

 	
 	

By:	

/s/
	

(SEAL)

President
	

 	
 	
LANDLORD
	

 	
 	
NEUSTAR, INC.	

 
	

/s/ Tara Gloss	
 	

By:	

/s/  ROBERT R. DOWSKI      
	

(SEAL)
	 	 	 	TENANT	 

5

        THIS AMENDATORY LEASE AGREEMENT, made as of the 16th day of May, 2001, by and between MERRITT-LT1,
LLC, a Maryland limited liability company (hereinafter called "Landlord"), and NEUSTAR, INC., a corporation of the State
of Delaware (hereinafter called "Tenant"). 

 
 

EXPLANATORY STATEMENT    
    

        By lease (the "Lease") dated May 14, 2000, Landlord leased to Tenant, and Tenant rented from Landlord, certain premises containing approximately 40,440
rentable square feet within the Building known as Building VIII, Loudon Tech Center, 46000 Center Oak Plaza, Sterling, Virginia 20166. Tenant has agreed to rent from Landlord and Landlord has agreed
to lease to Tenant, additional premises (hereinafter the "Additional Premises") in Building X, Loudon Tech Center, 46000 Center Oak Plaza, Sterling, Virginia 20166 (the "Building") under the same
terms and conditions set forth in the Lease, except as otherwise provided in this Amendatory Lease Agreement ("Agreement"). 

        NOW, THEREFORE, THIS AGREEMENT WITNESSETH, that for and in consideration of the mutual covenants and agreements herein contained, the
parties hereto hereby covenant and agree as follows: 

        1.    Lease of Additional Premises.    Landlord does hereby lease to Tenant and the latter
does hereby rent from the former, the Additional Premises containing not less than approximately 45,000 rentable square feet within the Building, as shown on  Exhibit A attached hereto, for the term
hereinafter provided, and subject to all of the terms and conditions set forth in the Lease except as
amended or modified in this Agreement. The final measurement of the square footage of the Additional Premises shall be based on the final Space Plan as set forth below. Based on the final Space Plan,
this Amendatory Lease Agreement shall then be further modified to reflect that final measurement with the appropriate adjustments to Base Rent hereunder being determined and acknowledged at that time. 

        2.    Term.    The lease of the Additional Premises shall be for a term commencing on or near
September 1, 2001 provided the following conditions have occurred: 

        (i)    Landlord
shall have substantially completed Tenant's Work to be set forth in the to-be-developed plans for the fit-up of the
Additional Premises, as elected and determined by Tenant and reasonably approved by Landlord (the "Space Plan") and to be constructed by Landlord as fully finished office space from the current shell
condition (the "Tenants Work"), (ii) Landlord shall have substantially completed Landlord's Work in the Building in accordance with plans of Landlord, which plans shall conform to the
requirements of Section 8 hereof and in accordance with the base building plans and specifications attached hereto as Exhibit B, (iii) Landlord shall have procured and delivered a
copy of same to Tenant, a use permit or certificate of
occupancy for the Additional Premises (or the equivalent thereof) permitting Tenant to occupy the same in accordance with applicable Loudon County laws and regulations, and (iv) Landlord shall
have given Tenant not less than ten (10) business days' prior notice of such anticipated substantial completion date (the "Lease Commencement Date"). Tenant agrees to deliver to Landlord, not
later than June 15, 2001, the Space Plan for Tenant's Work, which plan shall have been approved by Tenant, and which may be subject to further modification by Tenant thereafter but with any
such modifications which occur after June 15, 2001 which cause a delay in Landlord's completion of the Tenant's Work thereby causing and event of Tenant Delay. Any failure of Tenant to timely
deliver the aforesaid Space Plan to Landlord shall be deemed a "Tenant Delay", and base rent and other charges payable by Tenant hereunder shall be payable for each day of Tenant Delay as if the
Tenant Work had been substantially completed as of the Lease Commencement Date which would have occurred had there not been any Tenant Delay. When the Lease Commencement Date is ascertained, upon the
request of either party, the parties shall enter into an agreement setting forth the actual Lease Commencement Date. 

        The
Lease Term for the Additional Premises shall terminate August 31, 2010, which date is co-terminus with the termination date of the Lease. 

 

        3.    Pre-Term Access.    Tenant, its agents and employees, shall have the right
to enter the Additional Premises during the thirty day period immediately preceding the Lease Commencement Date, without payment of rent or other charges, for the purpose of installing
telecommunication equipment, specialty equipment, and related Tenant personalty, provided Tenant first furnishes Landlord evidence of insurance as required by the Lease and provided that all property
of Tenant installed or stored within the Additional Premises during such pre-term occupancy period shall be at Tenant's sole risk. Tenant agrees not to interfere with Landlord's
construction activities during such pre-term occupancy. 

        4.    Base Rent.    

        (a)   Beginning
as of the Lease Commencement Date, Tenant shall pay Landlord the following annual and monthly base rent: 

	Term
 
	 	Annual Rate
	 	Monthly Rate
	 	Per Sq.Ft.

	Lease Commencement Date – 8/31/02	 	$	1,102,500.00	 	$	91,875.00	 	$	24.50
	9/1/02 – 8/31/03	 	 	1,127,700.00	 	 	93,975.00	 	 	25.06
	9/1/03 – 8/31/04	 	 	1,153,350.00	 	 	96,112.50	 	 	25.63
	9/1/04 – 8/31/05	 	 	1,179,900.00	 	 	98,325.00	 	 	26.22
	9/1/05 – 8/31/06	 	 	1,206,900.00	 	 	100,575.00	 	 	26.82
	9/1/06 – 8/31/0	 	 	1,235,250.00	 	 	102,991.66	 	 	27.45
	9/1/07 – 8/31/08	 	 	1,264,050.00	 	 	105,337.50	 	 	28.09
	9/1/08 – 8/31/09	 	 	1,293,750.00	 	 	107,872.25	 	 	28.75
	9/1/09 – 8/31/10	 	 	1,324,800.00	 	 	110,400.00	 	 	29.44

Tenant
covenants and agrees to pay all rentals reserved hereunder to Landlord, without notice or demand, in advance, on or before the first day of each month during the term, except that if the Lease
Commencement Date is a date other than the first day of the month, the base rental for such partial month shall be payable 5 days after the Lease Commencement Date, without set off or
deduction. 

        (b)   Simultaneously
with the execution of the Amendatory Agreement, Tenant has paid Landlord the sum of $91,875.00 as prepaid rent for the first month of the term, the
receipt of which is hereby acknowledged by Landlord. 

        (c)   If
the actual, as-built Additional Premises is more or less than 45,000 rentable square feet (which shall be computed based upon the BOMA method of
measurement and shall be certified to Tenant and Landlord by Landlord's architect), the base annual rental for the period from the Lease Commencement Date to and including the last day of the Term
which is August 31, 2002 shall be computed by multiplying $24.50 times the actual rentable square footage of the as-built Additional Premises, and similar recomputations shall be
made with respect to base rental for each subsequent lease year. In the event the base rental is recomputed as hereinabove set forth, the parties hereto shall execute an addendum to this Lease
specifying such recomputed base rentals. 

        5.    Rent Escalations.    

        (a)   The
Additional Premises hereby leased comprises approximately 75.10% of the total Building ("Tenant's Proportionate Share") and the total rentable area of the Building
is 59,901 rentable square feet. Tenant covenants and agrees to pay Landlord, as additional rent, Tenant's Proportionate Share of any increase in Operating Costs (as defined in Section 6(a) of
the Lease), except for the costs of electricity consumed within the Building and janitorial services furnished by Landlord) over and above Operating Costs for calendar year 2002 (the "Base Year").
Notwithstanding the foregoing, in the event the Building has an occupancy rate of less than ninety-five percent (95%) during the entirety of the Base Year, the Base Year's Operating Costs
shall be equitably adjusted to reflect (i) an occupancy rate of ninety-five percent (95%) in the Building, (ii) the fact that some maintenance and repair charges which it
would normally have 

2

 

incurred
during the Base Year were not incurred by virtue of certain warranties and vacancies in the Building, and (iii) the possibility that some maintenance and other services which would
normally be incurred in similar office buildings during any one operating year (e.g., window cleaning) were not incurred. 

        (b)   In
the event Landlord's costs for supplying electric service to the interior of the Building and janitorial services exceed Two Dollars and Sixty-Five Cents
($2.65) per rentable square foot within the Building during any lease year, Tenant shall pay Landlord Tenant's Proportionate Share of such excess. In the event utilities and janitorial costs are less
than Two Dollars and
Sixty-Five Cents ($2.65) on an annual basis then the savings shall be reimbursed to Tenant within thirty (30) days of the end of each calendar year. 

        (c)   All
Tenant's Work shall be bid and performed at competitive market rates and shall be mutually agreed upon by Landlord and Tenant and performed in a manner consistent
with the construction of Building VIII, Loudoun Tech Center. 

        (d)   Landlord
shall notify Tenant from time to time, but not more frequently than twice in any one lease year, of the amount which Landlord estimates will be the amounts
payable by Tenant in accordance with paragraphs (a), (b) and (c) hereof, and Tenant shall pay such amounts to Landlord in equal monthly installments, in advance, on the first day of each
month, simultaneously with payments of the base rent reserved hereunder. The provisions of paragraph 6(c) of the Lease set forth the procedures applicable to such payments. 

        (e)   Landlord
agrees to diligently manage all Operating Costs and CAM for efficiency and cost competitiveness according to the best property management practices to include
the express objective of keeping Operating Costs and CAM costs as low as then current market conditions will permit. 

        (f)    Notwithstanding
anything in the Lease to the contrary, that portion of Operating Costs applicable to Building management fees shall not exceed four percent (4%) of the
gross base rents derived by Landlord from the Building throughout the Lease Term and during renewal terms. 

        6.    Tenant's Work.    

        (a)   Landlord
will cause Merritt Properties, Inc., as general contractor, to perform, or cause to be performed, all of Tenant's Work, subject to the allowance
provisions set forth below, in substantial conformity with Tenant's plans for Tenant's Work to be completed and finalized as hereinabove provided. 

        (b)   Landlord
agrees that all Tenant's Work will be performed in a good and workmanlike manner and in full compliance with all applicable government laws and regulations and
to current industry standards. All construction materials used shall be subject to Landlord's normal and customary warranties, and Landlord shall diligently pursue to completion the prompt correction
of all legitimate warranty claims by Tenant with respect to (i) substantial adherence to the plans for Tenant's Work using all new construction materials, (ii) the good workmanship
thereof, (iii) the freedom of such materials from latent defect. Tenant and its consultants shall have the right, but not the obligation, to review, monitor and approve all plans and materials
involved in Tenant's Work throughout the entire construction process, provided that Tenant and its consultants do not cause delays in the construction schedule. Landlord will allow reasonable time and
notification on the construction schedule for tenant to conduct such reviews and approvals. Landlord shall cause to be obtained all permits, certificates (including the use permit or certificate of
occupancy or its equivalent) and other governmental approvals from all governmental entities having jurisdiction which are necessary for the completion of Tenant's Work. 

3

 

        (c)   or
the services provided by Landlord's general contractor, Landlord shall earn a fee of two and one-half percent (2.5%) of managed costs related to the
construction of Tenant's Work, which sum shall be charged to the Tenant Allowance defined below. 

        7.    Tenant Allowance.    

        (a)   "Tenant
Allowance" as used herein shall mean a sum equal to Thirty Dollars ($30.00) per rentable square foot within the Additional Premises, of which not less than
Twenty-Five Dollars ($25.00) per rentable square foot of the Additional Premises shall be used for planning and constructing Tenant's Work (including all office space construction, kitchen
and galleys, telecommunications wiring and security installations) and also including Landlord's fee equal to two and one-half percent (2.5%) of Landlord's total costs of Tenant's Work as
set forth above. 

        (b)   Tenant,
at its election, shall have the right to utilize up to Five Dollars ($5.00) per rentable square foot of the Tenant Allowance for any move related expense
associated with (i) telecommunications equipment and installation, (ii) furniture, fixtures and equipment, (iii) other specialty trade fixtures and equipment, (iv) legal
fees and consultant fees, and (v) moving costs of any kind. Landlord agrees that Tenant shall at all times remain the lawful possessor and owner of all of the specialty items funded via the
Tenant Allowance as set forth in items (i) through (iii) of the preceding sentence hereof. 

        (c)   In
the event the total costs of Tenant's Work, as set forth herein, are greater than the Tenant Allowance, landlord agrees to finance such shortfall, at Tenant's
election, in any amount up to, but not in excess of, an additional Five Dollars ($5.00) per rentable square foot of the Additional Premises (the "Additional Tenant Allowance") by increasing the base
rent so as to amortize the same over the
original lease term at an interest rate of twelve percent (12.0%) APR, which sums shall be payable in monthly installments simultaneously with the base rent set forth in Section 3(a) hereof.
Any such additional base rental payments shall not be credited against any escalation payments or other payments which may be due and payable by Tenant in accordance with the terms of this Agreement.
If the total costs of Tenant's Work exceed both the Tenant Allowance and the Additional Tenant Allowance (i.e., a total of Thirty-Five Dollars ($35.00) per rentable square foot of the
Additional Premises), Tenant shall pay such excess to Landlord in cash within fifteen (15) days following the Lease Commencement Date subject to any customary holdbacks for punch list items. 

        (d)   If
the total costs of Tenant's Work is less than $30.00 per square foot, Landlord shall credit one hundred percent (100%) of the unused portion of the Tenant Allowance
against the first base rental payments falling due hereunder until such time as the total unused portion of the Tenant Allowance has been so credited. 

        (e)   In
the event of any increase in base rent or credits against base rent as set forth in the preceding paragraph hereof, upon the request of either party, the parties
shall execute an amendment to this Agreement so specifying. 

        8.    Landlord's Work.    Landlord agrees to provide the following work and installations to
the Building ("Landlord's Work"), at the sole cost and expense of Landlord, without any development or construction costs thereof being included in Operating Costs or being deducted from the Tenant
Allowance: 

        (a)   Landlord
shall construct and maintain the Building and the Additional Premises in a condition which is free from any substances recognized as being hazardous under
Federal law, except for those items used for ordinary construction and office purposes and in accordance with applicable regulations pertaining thereto; and 

        (b)   Landlord
shall provide Building shell specifications and finish level in i.) accordance with Exhibit B and ii.) not lesser condition than the premises described
in the Lease located in Building 

4

 

VIII,
Loudon Tech Center, which specifications include (i) substantially completed HVAC equipment installed to include high pressure duct work on each floor, (ii) sprinklers installed on
each floor at such levels and amounts as required by building code for normal office use, (iii) 16 watts per square foot of electric capacity throughout the building, (iv) all perimeter
drywall completed, furred and paint ready, (v) the Building reception lobby fully completed, and (vi) all restrooms substantially completed and fully code compliant. 

        9.    Tenant's Consultants and Architects.    

        (a)   Tenant
shall have the right to select and use its own construction manager ("CM") to oversee Tenant's Work on Tenant's behalf. Tenant's CM shall have the right to
oversee plans, project schedule, manage long lead time items, administrate change orders, approve budgets and expenditures from the Tenant Allowance, insure conformity of Tenant's Work to the plans,
manage Tenant's specialty contractors, etc. Landlord will fund and pay reasonable and customary fees to Tenant's CM from the Tenant Allowance in such amounts as are incurred and directed by Tenant for
payment. 

        (b)   So
long as Tenant's CM does not cause a delay in Landlord's performance of Tenant's Work, Tenant's use of its CM cannot become the basis for any alleged Tenant caused
delay. If Landlord believes that the actions of Tenant's CM might cause any delay, Landlord shall promptly notify Tenant and the CM of the grounds for Landlord's belief and Tenant and the CM shall use
their commercially reasonable efforts to rectify such problem. Notwithstanding any of the foregoing provisions, any failure of Tenant and/or the CM to respond to Landlord and correct a delay caused by
Tenant or the CM within two (2) business days of written notice from Landlord shall constitute a Tenant Delay as set forth in this Agreement. 

        (c)   Tenant
shall have the right to select and use its own space planner/architect ("Tenant's Architect") with respect to the planning and designing of the Additional
Premises subject to Landlord's approval which shall not be unreasonably withheld. Landlord will fund and pay the reasonable and customary fees of Tenant's Architect from the Tenant's Allowance in such
amount as is incurred and directed by Tenant for payment. 

        (d)   Tenant,
at its sole cost and expense, shall also have the right to engage a third party consulting engineering firm to evaluate the Building, and all systems therein for
sufficiency for normal office purposes, which determination, if any, has been conclusively made prior to the date upon which this Lease was executed. Landlord agrees to cooperate with such firm to
afford it reasonable access to all areas of the Building and the prompt submission of all documents and other information in Landlord's possession or in the possession of any of Landlord's consultants
or contractors related to the condition and capabilities of the Building. Tenant shall have the right to apply the cost of such consulting engineering firm as a against the Tenant Allowance. 

        10.    Parking.    

        (a)   Subject
to condemnation, casualty and other causes beyond Landlord's control, the parking area adjacent to the Building shall contain not less than 4 parking spaces for
each 1,000 square feet of rentable area within the Building during the Term and during any renewal periods. Tenant, its agents, employees, officers and invitees, shall have the right to the use its
prorata share of such parking area in common with all other tenants of the Building and their respective agents, employees, officers and invitees. 

        (b)   No
charges or fees shall be made or collected for the use of any of the foregoing parking spaces and no additional rental shall be payable in connection therewith,
provided that Landlord's cost of maintenance, repairs and other costs incurred in connection with such parking shall be included in Operating Costs as set forth in Section 5(a) hereof. 

5

 

        (c)   In
addition to the parking spaces mentioned above, Tenant shall have the right to designate four (4) additional spaces adjacent to Tenant's primary entrance as
"visitor" spaces and have them signed as such. Landlord shall have no obligation to police such "visitor" spaces, nor to remove unauthorized vehicles therefrom. 

        11.    Renewal Options.    Provided Tenant is not then in default hereunder after the
expiration of all applicable notice and cure periods, Landlord hereby grants Tenant the right to renew the Lease of the Additional Premises (including any Expansion Space leased by Tenant, as
hereinafter set forth) for two (2) additional terms of (5) five years each by giving Landlord written notice of Tenant's election to exercise such renewal option not later than
270 days prior to the commencement of each renewal term. In the event said option(s) is exercised in a timely manner, the Lease for the Additional Premises and Expansion Space, if any, shall be
extended for the renewal term as to which such notice is given, under the same terms and conditions as are set forth in this Agreement, except that the base rent shall be a rental rate equal to 100%
of the then prevailing "Fair Market Rental Value", inclusive of a new Operating Costs base year reasonably and equitably based on the projected current building costs for similar space. Fair Market
Rental Value shall mean rentals for comparable buildings of similar age, size, location and quality. Notwithstanding the forgoing, it is agreed that the triple net portion of the base rent for either
of such renewal terms shall not be less than 103% of the triple net portion of the base rental rate in effect immediately preceding the commencement of the renewal term in question, nor shall it be
greater than 105% of the triple net portion of the base rental rate in effect immediately preceding the commencement of such renewal term, and during each year of the renewal term(s), the base rental
so determined shall be increased by 3% of the preceding year's triple net rental rate. Notwithstanding any provisions hereof, Tenant shall have the right, provided Tenant complies with all of the
provisions herein above set forth, to renew this Lease for either the entire Additional Prcntises (including any Expansion Space) or for any one full floor or full portion of any such floor than
occupied by Tenant in Building IX or Building X it total or the Additional Premises. 

        12.    Expansion Rights.    

        (a)   Tenant
is hereby granted the ongoing right of first offer to lease space in Building X or in Building IX (the "Expansion Space") throughout the Lease term and any
renewal thereof, provided that such Expansion Space within Building X shall have first been leased by another tenant, and Expansion Space within Building IX which is (i) not currently leased as
of the date hereof shall have first been relet to another tenant, and/or (ii) currently leased as of the date hereof and thereafter becomes available for lease to other tenants from time to
time, subject to the following terms and conditions: Landlord shall give Tenant written notice ("Landlord's Notice") that such Expansion Space has become available for lease by Tenant prior to any
agreement with a third party to lease such Expansion Space. Tenant shall have 10 business days after receipt of Landlord's Notice to notify Landlord of its election to lease such Expansion Space at
100% of Fair Market Rental Value (as hereinabove defined and determined in accordance with Section 11 hereof), inclusive of a new Operating Costs base year. In determining Fair Market Rental
Value adjustments shall be made for all then applicable market conditions and transaction expenses normally incurred by landlords for comparable office space which are not incurred by Landlord in
connection with the Expansion Space, and there shall be no minimum base rental floor or maximum base rental ceiling in calculating the Fair Market Rental Value of the Expansion Space. If Tenant gives
Landlord timely notice of its election to lease the Expansion Space, the parties shall promptly enter into another amendment to the Lease setting forth all pertinent terms and conditions of the lease
of the Expansion Space, which shall be the same as the terms of the Lease for the Additional Premises as set forth in this Agreement, except for the Base Rental Rate as hereinabove determined, the
Lease Commencement Date, Tenant's Proportionate Share and the like. If Tenant does not notify Landlord of Tenant's election to lease the Expansion Space within ten business days following receipt of
Landlord's Notice, Landlord shall have the right and option 

6

 

to
lease the Expansion Space to any third party or parties at such rentals and under such terms and conditions as Landlord and the third party or parties may agree. 

        (b)   Notwithstanding
any provisions of paragraph (a) herein, Tenant's right to lease Expansion Space in Building IX shall be subject and subordinate to any rights
granted any existing tenant of Building IX of the right to lease other space within Building IX. Further, notwithstanding any of the provisions of paragraph (a) hereof, Tenant shall not have
the right to lease any Expansion Space unless the term of the Lease for the Additional Premises (including any renewal term already elected by Tenant) has at least three years remaining as of the date
the lease of the Expansion Space will commence. 

        (c)   Notwithstanding
the foregoing, Tenant shall have the right to lease any additional office space now vacant and unleased in Building IX or Building X at any time up to
such date as Landlord has executed a term sheet, letter of intent or the equivalent or a binding lease agreement with any other tenant. The terms and conditions of such leasing shall be the same as
the terms and conditions set forth herein for the lease by Tenant of the Additional Premises. 

        13.    Trade Fixtures.    

        So
long as Tenant is not in default under any of its obligations under this Agreement. Tenant shall retain 100% ownership of its movable special Tenant improvements, including, but not
limited to, trade fixtures and related mechanical support systems and detachable furniture. 

        14.    Building Services.    

        Subject
to causes beyond Landlord's control, Landlord's reasonable security requirements, emergencies and as otherwise specified by law, (i) Tenant, its officers, agents,
employees and invitees, shall have access to the Building and the Additional Premises seven days a week—24 hours per day, with electric service and at least one operating elevator
being provided at all times, and (ii) Landlord shall provide, at no additional cost to Tenant, HVAC services between the hours of 6:00 am. and 7:00 p.m. on all weekdays and 9:00 am. to
1:00 p.m. on Sundays (except holidays). If Tenant desires the use of such HVAC services after the hours specified above, Tenant shall reimburse Landlord for Landlord's costs in supplying such
services based only upon the cost of electric service related thereto and the cost of any direct labor required to provide such services, which reimbursement shall be treated as additional rent
hereunder and shall be payable within thirty (30) days after Landlord's invoice. 

        15.    Broker.    

        Tenant
hereby represents and warrants to Landlord that the only broker or brokerage firm which has furnished services to Tenant in connection with this Agreement is The Staubach
Company—Northeast, Inc. ("Staubach"). Landlord agrees to pay a commission with respect to the leasing of the Additional Premises to Staubach in an amount equal to four percent (4%)
of the aggregate triple net (NNN) portion of the base rent including fixed escalations scheduled to be paid over the full lease term (i.e., $18.75 per rentable square foot) escalated at the rate of
three percent (3%) per year for the purposes hereof, and which shall be payable in two installments, 50% of which shall be payable upon final execution of this Agreement and the remaining 50% of which
shall be payable upon the Lease Commencement Date, provided Tenant has taken beneficial occupancy of the Additional Premises (for such purpose Tenant's pre-term occupancy shall not be
considered) and Tenant has commenced payment of base rent to Landlord (exclusive of any prepaid base rent by Tenant at the time this Agreement was executed). If Tenant leases any Expansion Space as
set forth in Section 12 hereof, Landlord agrees to pay Staubach an additional commission for such leasing by Tenant so long as no other broker is involved in connection with the leasing of such
Expansion Space, and if any other broker is so involved, Staubach shall not be entitled to any commission with respect to the leasing of any such Expansion Space. Under no circumstances shall Landlord
be required to pay Staubach any commission with respect to the 

7

 

exercise
by Tenant of any renewal options as set forth in Section 11 hereof, including any amendment thereof or any additional renewal options which may hereafter be granted to Tenant. Tenant
hereby indemnifies and agrees to save Landlord harmless from any claim or demand or commission or fee by ITRA Washington Realty Group in connection with the leasing of the Additional Premises by
Tenant pursuant to this Agreement, which indemnity shall include reasonable legal fees and costs incurred by Landlord in connection with any such claim. 

        16.    Security Deposits.    

        (a)   Not
less than fifteen (15) business days after the execution of this Agreement by both Landlord and Tenant, Tenant shall deliver to Landlord two Letters of Credit
(the "L/Cs') issued by a federally chartered United States bank, as elected by Tenant, in the form attached hereto as Exhibit C, one of which
shall be in the face amount of $500,000 and the other of which shall be in the face amount of $700,000. The L/Cs shall constitute a security deposit for the faithful performance of Tenant's
obligations under this Agreement. Tenant agrees that Landlord shall have the right, but not the obligation to draw upon the L/Cs (i) to cure or remedy any default by Tenant with respect to the
leasing of the Additional Premises and/or any Expansion Space, including default in the payment of rent, if any such default is not cured by Tenant within any applicable grace or cure period set forth
in the Lease, or (ii) if, at any time prior to the termination or expiration of the term of the Lease of the Additional Premises or Expansion Space (including any renewal thereof), the issuing
bank notifies Landlord that it will not renew either L/C and Tenant fails within ten days after Landlord's written notice, to deposit with Landlord a substitute L/C in the same form and in the same
amount as the L/C which will not be renewed, or in lieu thereof, a cash security deposit in an amount equal to the full face amount of the L/C which will not be renewed. The L/Cs, or substitute L/C or
cash deposit, as the case may be, if not sooner drawn upon, shall be returned to Tenant within ten (10) days after the vacating of the Additional Premises and Expansion Space, if any, by
Tenant, and the termination of the Lease for same (or upon termination of the last renewal term), provided that Landlord shall nevertheless have the right to draw upon either L/C for any damages
sustained by Landlord if (i) Tenant is then in default after the expiration of all applicable notice and cure periods under any of the provisions of this Agreement for the leasing of the
Additional Premises or for any Expansion Space, and (ii) there is damage to the Additional Premises or Expansion Space, if any, beyond ordinary wear and tear and the same has not been left in a
clean condition and in good order with all debris, rubbish and trash placed in proper containers, and any failure of Tenant to perform in accordance with this clause having not been corrected within
thirty (30) days after written notice of such failure from Landlord. If Landlord draws upon either L/C and uses all, or any portion, of the proceeds thereof to cure any default by Tenant after
the expiration of all applicable notice and cure periods, Tenant agrees to deposit with Landlord, within fifteen (15) days after Landlord's written notice, a cash sum in sufficient amount,
which when added to any remaining proceeds from the L/C will equal the full principal sum of the security deposit. If the security deposit consists of cash, in whole or in part, Landlord shall be
entitled to commingle said cash security deposit with its own funds, and Landlord shall not be required to pay Tenant any interest thereon. 

        (b)   Tenant
shall have the option at any time and from time to time to deposit cash with Landlord as a security deposit or partial security deposit, in which event Landlord
will surrender the L/C for which such cash security deposit is substituted, or in the event the case security deposit does not equal the face amount of any L/C, Landlord will surrender the L/C upon
delivery by Tenant of a substitute L/C representing the difference between the cash security deposit and the total security deposit required hereunder. If Tenant substitutes cash as a security deposit
as aforesaid, Tenant shall have the subsequent right to re-establish an L/C security deposit meeting the criteria herein set forth, in which event Landlord shall return Tenant's cash
security deposit within five (5) business days after Tenant's delivery of the substitute L/C. 

8

 

        (c)   Commencing
on the second anniversary of the lease term for the Additional Premises and continuing on each anniversary thereafter, provided Tenant has a sustained net
worth of $100,000,000 for a period of one year (as certified by a CPA to Landlord and as set forth in CPA prepared financial statements delivered to Landlord) and further provided that Tenant is not
in default beyond any applicable cure or grace period, Tenant shall have option, but not the obligation, to reduce the $500,000 L/C (or cash security deposit) annually by $75,000 per year, except that
in no event shall such security deposit amount fall below $100,000 during the term and any renewal thereof. Tenant agrees to submit to Landlord on an annual basis, CPA certified financial statements
showing its net worth for each subsequent year of the Lease term, and in the event that Tenant's net worth during any subsequent Lease year falls below $75,000,000 then Tenant agrees to provide
Landlord with an L/C or cash security deposit in sufficient amount to equal the initial $500,000 L/C. 

        (d)   Provided
Tenant is not in default hereunder beyond any applicable cure or grace period, and provided Tenant has established an initial three month sustained net worth of
$130,000,000 (as certified to Landlord by a CPA and as evidenced on CPA prepared financial statements delivered to Landlord) the $700,000 L/C shall be surrendered to Tenant by Landlord. 

        17.    Assignment and Subletting.    

        (a)   Tenant
covenants and agrees not to assign this Lease, in whole or in part, nor to sublet the Additional Premises or any Expansion Space, or any part thereof, nor grant
any license or concession for all or any part thereof, without the prior written consent of Landlord in each instance first had and obtained, which Landlord shall not unreasonably withhold, condition
or delay. Notwithstanding the foregoing, Tenant may assign this Lease, or sublet all or any portion of the Additional Premises or Expansion Space to any subsidiary, affiliate or successor of Tenant
(collectively "a Related Party") without Landlord's prior written consent, but Tenant shall nevertheless give Landlord written notice of any such assignment or sublease within five days after the
effective date thereof. If any assignment or subletting is permitted pursuant to this paragraph, (whether or not to a Related Party) Tenant shall not be relieved from any liability whatsoever under
this Agreement. In the event that the amount of the rent or other consideration to be paid to Tenant by any assignee or sublessee (other than a Related Party) is greater than the rent required to be
paid by the Tenant to the Landlord pursuant to this Agreement after reimbursement of any reasonable costs incurred by Tenant (such as tenant's improvements, legal fees, brokerage commissions and the
like) incurred by Tenant in procuring such assignment or sublease (the "Profit"), Tenant shall pay Landlord 50% of the Profit when and as received by Tenant from such assignee or sublessee. Landlord
shall not be entitled to any portion of the Profit in the event the assignee or sublessee is a Related Party. Any consent by Landlord to an assignment or subletting shall not constitute a waiver of a
necessity of such consent as to any subsequent assignment or subletting. An assignment for the benefit of Tenant's creditors or otherwise by operation of law shall not be effective to transfer or
assign Tenant's interest in the Additional Premises or Expansion Space unless Landlord shall have first consented thereto in writing. In the sole event Tenant desires to assign this Lease or to
sublease more than 50% in the aggregate of the entire Additional Premises and/or Expansion Space then leased by it to a party other than a Related Party for fifty percent (50%) or greater of the
remaining Lease term, Landlord shall have the right and option to terminate this Agreement with respect to that particular building only which right and option shall be exercisable by written notice
from Landlord to Tenant within ten (10) business days from the date Tenant gives Landlord written request to approve such prospective assignment or sublease to other than a Related Party, which
written request shall include such information as is set forth below in Paragraph 17(c). If Landlord fails to give timely notice of such termination election, then Landlord shall be deemed to
have approved such requested sublease or assignment as requested by Tenant. 

9

 

        (b)   It
is agreed that it shall not be a reasonable basis for Landlord to withhold permission for subletting or assignments by Tenant if Landlord (i) is negotiating
with the proposed subtenant(s) of Tenant for other office space owned or controlled by Landlord, or (ii) has other office space available for rent in other buildings owned or controlled by
Landlord. 

        (c)   Landlord
agrees that it will respond to any request by Tenant for an approval of a prospective sublease or assignment within ten (10) business days of Tenant's
written request to be accompanied by (i) the name of the proposed entity to include a description of the core business and the intended use of the premises to be assigned or subleased,
(ii) reasonable and customary financial information to the extent available, (iii) a floor plan showing the intended area to be subleased or assigned, and (iv) an executed term
sheet setting forth the basic terms of the prospective transaction which shall not be deemed to mean a negotiated or executed assignment or sublease agreement. If Landlord fails to give timely notice
of such termination election, then Landlord shall be deemed to approved such requested sublease or assignment as requested by Tenant. 

        18.    Antenna Roof Rights.    Tenant shall have the right to place up to three antennae on
the roof of the Building in an area approved by Landlord, which area shall not exceed Tenant's Proportionate Share of the total roof area of the Building, without additional charge or cost to Tenant,
provided (i) Landlord approves Tenant's plans prior to installation of any antenna for structural integrity of the Building and in order to avoid any unsightly installation or appearance,
(ii) approval from all required governmental authorities to be obtained by Tenant and (iii) Landlord shall retain the right to grant similar rights to other tenants and/or any other
entity, so long as such additional rights do not diminish or dilute the use or utility of Tenant's rights hereunder for Tenant's prior installed antenna and so long as the grant of such rights to
other tenants and/or any other entity is proportional to the ratio of space such other tenants or entity occupy relative to the space occupied by Tenant, and (iv) Tenant's installation of such
antennas do not diminish or dilute the use or utility of other tenant's antennas which were or are installed prior to Tenant's installation. Tenant shall have the right to assign to a Related Party
Tenant's rights with respect to any such antennas; however, such rights shall not be assignable without Landlord's prior written consent granted in its sole discretion, to (i) third parties
with whom Landlord is not engaged in commercial activity as part of its core business or (ii) non-related third party telecommunication providers which wish to rent roof space or
antenna capacity on the Building. 

        19.    Signage.    At all times during the Term of this Lease and during any renewal terms,
Tenant shall the non-exclusive right to have its backlighted sign or backlighted logo placed on top of the Building in a manner which maximizes visibility, without payment of additional
rent by Tenant. The plans to be approved for Tenant's Work shall include a sign plan showing the design and placement of the sign, which sign shall be designed and installed in accordance with all
applicable laws and regulations and the requirements of the Loudoun Tech Center Association and shall be subject to Landlord's reasonable approval. All expenditures relating to such signage shall be a
permissible charge against the Tenant Allowance. 

        20.    Applicability of Lease Provisions.    

        (a)   This
Agreement is not intended to and does not, amend or modify any of the provisions of the Lease or Addendum insofar as the Lease and Addendum relate to the leasing by
Tenant of premises within Building VIII, which shall continue to be exclusively governed by the provisions of the Lease, as modified by the Addendum. 

        (b)   The
following provisions of the Lease, as amended by the Addendum, shall be applicable to the leasing of the Additional Premises, as well as any Expansion Space by
Tenant, unless the contents of such lease provision is clearly inapplicable: Lease Sections 1(v), 2, 3, 4, 6(a) for the definition of Operating Costs, 6(c) for the procedures therein set forth
regarding payment of Tenant's Proportionate Share of increases in Operating Costs and CAM and other escalation, 7-13, inclusive, 15(b), 17-32, inclusive, 34-36,
inclusive, 38, 39, and 42-44, inclusive. All references in the aforementioned sections of the Lease, as amended by the Addendum, to "Premises" shall be deemed to refer to the Additional
Premises and the Expansion Space, if any, referred to in this Agreement. 

10

 

        WITNESS the hands and seals of the parties hereto as of the day and year first above written. 

	WITNESS:	 	MERRITT-LTI, LLC	 
	

/s/	
 	

By:	
 	

/s/
	

(SEAL)
	

 	
 	
LANDLORD
	

 	
 	
NEUSTAR, INC.	

 
	

/s/ TARA GLOSS	
 	

By:	
 	

/s/  ROBERT R. DOWSKI      
	

(SEAL)
	 	 	 	 	TENANT	 

11

 
 

EXPLANATORY STATEMENT    
    

        THIS SECOND AMENDATORY LEASE AGREEMENT ("Second Amendment"), made as of the        day
of                        ,
2001, by and between MERRITT-LTI, LLC, (hereinafter called "Landlord"), and NEUSTAR, INC.
(hereinafter called "Tenant"). 

 
  EXPLANATORY STATEMENT    
    

        By lease (the "Lease") dated May 14, 2000, Landlord leased to Tenant, and Tenant rented from Landlord, certain premises within the building known as
Building VIII, Loudoun Tech Center, 46000 Center Oak Plaza, Sterling, Virginia 20166. The parties hereto entered into an Amendatory Lease Agreement (the "First Amendment") dated 5/16, 2001 pursuant to
which Landlord leased to Tenant, and Tenant rented from Landlord, certain additional premises (the "Additional Premises") within Building X, Loudoun Tech Center, 46000 Center Oak Plaza, Sterling,
Virginia 20166 (the "Building"). This Second Amendment is intended to set forth the actual as-built square footage of the Additional Premises, the rentals payable by Tenant and other
matters herein contained. 

        NOW, THEREFORE, THIS AGREEMENT WITNESSETH, that for and in consideration of the mutual covenants and agreements herein contained, the
parties hereto hereby covenant and agree as follows: 

        1.    As-Built Measurement.    The parties hereto acknowledge and agree that the
actual as-built rentable square footage within the Additional Premises is 47,790 rentable square feet. 

        2.    Cost of Tenant Improvements.    The parties hereto further acknowledge and agree that
the actual cost to Landlord of Tenant's Work, as set forth in Section 6 of the First Amendment, is an amount equal to $45.33 per rentable square foot within the Additional Premises or a total
of $2,166,252, which is $732,552 in excess of $30 per rentable square foot Tenant Allowance set forth in Paragraph 7(a) of the First Amendment (the "Excess Cost"). Tenant has agreed to
reimburse Landlord for the Excess Cost by direct payment of a portion thereof as set forth in Paragraph 3 below and by an increase in the base rental set forth in Paragraph 4 below. 

        3.    Cash Payments.    The sum of $493,602.00 of the Excess Cost (which is equal to $10.33
times the rentable square foot area of the Additional Premises) shall be payable by Tenant to Landlord in three (3) equal installments of $164,534.00 each payable as follows: (i) the
first installment shall be due and payable
simultaneously with the execution of this Second Amendment; (ii) the second installment shall be due and payable fifteen (15) days thereafter; and (iii) the third and last
installment shall be due and payable on the Lease commencement date for the Additional Premises. Tenant covenants and agrees to make all such payments to Landlord at the address specified in the
Lease, without notice or demand, when and as the same are due and payable as aforesaid. 

        4.    Rent Schedule Revised.    The remaining $238,950 of the Excess Cost (which is equal to
$5.00 times the rentable square foot area of the Additional Premises) shall be amortized over the original term of the Lease for the Additional Premises. Accordingly, the rental schedule set forth in
Paragraph 4(a) of the First Amendment is hereby deleted and the following new rental schedule is substituted in place thereof: 

	Term
 
	 	Annual Rate
	 	Monthly Rate
	 	Per Sq. Ft.

	Lease Commencement	 	 	 	 	 	 	 	 	 
	Date –  8/31/02	 	$	1,214,394.27	 	$	101,199.52	 	$	25.41
	9/1/02 – 8/31/03	 	$	1,241,156.67	 	$	103,429.72	 	$	25.97
	9/1/03 – 8/31/04	 	$	1,255,493.67	 	$	104,624.47	 	$	26.27
	9/1/04 – 8/31105	 	$	1,296,593.07	 	$	108,049.42	 	$	27.13
	9/1/05 – 8/31106	 	$	1,325,267.07	 	$	110,438.92	 	$	27.73
	9/1/06 – 8/31/07	 	$	1,355,374.77	 	$	112,947.90	 	$	28.36
	9/1/07 – 8/31/08	 	$	1,385,960.37	 	$	115,496.70	 	$	29.00
	9/1/08 – 8/31/09	 	$	1,417,501.77	 	$	118,125.15	 	$	29.66
	9/1/09 – 8/31/10	 	$	1,450,476.87	 	$	120,873.07	 	$	30.35

 

In
accordance with Paragraph 4(b) of the First Amendment, Tenant has heretofore paid Landlord $91,875.00 as prepaid rent for the first month of the term. On the Lease commencement date for the
original Premises, Tenant overpaid Landlord for the 1st months rent by an amount equal to $14,288.70 which will be applied to the 2nd months rent. 

        5.    Applicability of Lease and First Amendment Provisions.    Except to the extent otherwise
set forth in this Second Amendment, the provisions of the Lease, as amended by the First Amendment, shall remain unchanged and in full force and effect. 

        6.     Both
Landlord and Tenant agree that the lease commencement date of rent will be September 8, 2001. 

        IN WITNESS WHEREOF, the parties hereto have executed this Second Amendment as of the day and year first above written. 

	WITNESS:	 	MERRITT-LTI, LLC	 
	

 	
 	

By:	
 	

    
	

(SEAL)

President
	

 	
 	
LANDLORD
	

 	
 	
NEUSTAR, INC.	

 
	

 	
 	

By:	
 	

/s/  ROBERT R. DOWSKI      
	

(SEAL)
	 	 	 	 	 	 
	 	 	TENANT

BANK
OF AMERICA LOGO

DATE: SEPTEMBER 5, 2002 

IRREVOCABLE
STANDBY LETTER OF CREDIT NUMBER: 3051209 

2

  

        THIS THIRD AMENDMATORY LEASE AGREEMENT ("Third Amendment"), made as of the 1st day of Oct, 2003, by and between  MERRITT-LT1, LLC, a Maryland limited liability company (hereinafter called "Landlord"), and  NEUSTAR, INC., a Delaware corporation (hereinafter called "Tenant").

 
 

EXPLANATORY STATEMENT    
    

        By lease (the "Lease") dated May 14, 2000, Landlord leased to Tenant, and Tenant rented from Landlord, certain premises within the Building known as
Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza, Sterling, Virginia 20166. The parties hereto entered into an Amendary Lease Agreement ("First Amendment") dated May 16, 2001,
pursuant to which Landlord leased to Tenant, and Tenant rented from Landlord, certain additional premises within Building X, Loudoun Tech Center, 46000 Center Oak Plaza, Sterling, Virginia
20166 (the "Building"). The parties entered into a Second Amendatory Lease Agreement ("Second Amendment") dated September 14, 2001 pursuant to which the Lease, as amended by the First
Amendment, was further amended. The parties hereto desire to further modify and supplement the Amended Lease to expand the Original Premises (as hereinafter defined) to include the Additional Premises
(as hereinafter defined), subject to the terms and conditions set forth herein. As used herein, the "Amended Lease" shall refer to the Lease, as amended by the First Amendment and the Second
Amendment. Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in the Amended Lease. 

        NOW, THEREFORE, THIS AGREEMENT WITNESSETH, that for and in consideration of the mutual covenants and agreements herein contained, the
parties hereto hereby covenant and agree that the Amended Lease is hereby further modified and supplemented as follows: 

        1.    Lease of Additional Premises.    Landlord does hereby lease to Tenant, and the Tenant
does hereby lease from the Landlord, the premises outlined in red on Exhibit A attached hereto (the "Additional Premises") consisting of
approximately 9,374 rentable square feet located on the    floor in the Building for the term hereinafter provided, and subject to all of the terms and conditions set forth in the Amended
Lease, including, without limitation, any renewal options set forth in the Amended Lease, except as amended or modified in this Third Amendment. The net rentable area of the Additional Premises shall
be calculated in accordance with WDCAR Standard Method of Measurement and shall be subject to confirmation by Tenant's architect. 

        2.    Term.    The lease of the Additional Premises shall commence as of June 1, 2004
and shall terminate on August 31, 2010. Notwithstanding the foregoing, Landlord shall deliver the Additional Premises to
Tenant on October 1, 2003 (the "Delivery Date") to commence Tenant's build-out thereof subject to all applicable terms of the Amended Lease, as further amended hereby, except that
Tenant shall have no obligation to commence paying base rent in respect of the Additional Premises until June 1, 2004 and additional rent in respect of the Additional Premises until
June 1, 2004, all as more particularly set forth below. 

        3.    Condition of Additional Premises; Use of Additional Premises.    The Additional Premises
is leased to Tenant in an "as is" condition. Landlord shall not be required to do any work or make any installations therein, and Tenant shall at Tenant's sole cost and expense, perform any such work
or make any such installations, as may be required, for the operation of Tenant's business in the Additional Premises. Tenant shall use the Additional Premises for the following purposes: offices for
the use of Tenant, its officers, agents and employees, a call center, an auditorium for use by Tenant and its agents, officers, employees and invitees, and other uses incidental thereto not prohibited
by applicable law. 

        4.    Rent.    The rent for the first year of the term for the Additional Premises
(June 1, 2004 -May 31, 2005) shall be $172,012.90 (assuming 9,374 net rentable square feet) payable in equal monthly installments of $14,334.41 each (subject to proration in
the event of any partial month). 

1

 

The
rent for each subsequent Lease year during the term of the Lease for the Additional Premises shall increase by 3% over the rent for the prior Lease year of the term for the Additional Premises.
For purposes of this Third Amendment, each subsequent Lease year shall commence on the succeeding anniversary of the commencement date hereunder. Tenant covenants and agrees to pay all rentals to
Landlord, without notice or demand, in advance, on the first day of each month for the term of the Lease for the Additional Premises, without set-off or deduction except as otherwise
expressly provided in the Amended Lease. 

        5.    Tenant's Proportionate Share.    With respect to the payment of Tenant's share of
Operating Costs and CAM with respect to the Additional Premises only, the following provisions shall apply: 

        (a)   The
Additional Premises hereby leased comprise 24.9% of the total rentable area of the Building. 

        (b)   As
of June 1, 2004, Tenant shall pay Landlord as additional rent during each year of the Lease term for the Additional Premises, 24.9% of the amount of the
increase, if any, in Operating Costs over such costs for the 2003 calendar year as well as Tenant's Proportionate Share of increases in CAM charges over such charges for the 2003 calendar year,
calculated in accordance with Section 6(b) of the Amended Lease. In the event of any partial Lease year, Tenant's share of any increase in such Operating Costs and CAM in respect of the
Additional Premises shall be prorated for such partial year. 

        (c)   The
foregoing provisions with respect to the payment of Tenant's share of Operating Costs and CAM in respect of the Additional Premises shall not be applicable to the
Premises described in the Lease consisting of 40,440 rentable square feet within Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza, Sterling, VA 20166 nor shall such provisions be
applicable to the 40,440 rentable square feet described in the First amendment within Building X, 4600 Center Oak Plaza, Sterling, Virginia 20166 (collectively the "Original Premises").
Tenant's Proportionate Share of all Operating Costs and CAM for the Original Premises shall continue to be payable as provided in Section 6(b) of the Lease. 

        6.    Parking.    Commencing on the Delivery Date and thereafter during the remainder of the
term, Landlord shall, in addition to all parking spaces provided to Tenant under the Amended Lease, provide additional unreserved parking to Tenant in respect of the Additional Premises at the rate of
four (4) spaces per 1,000 net rentable square feet. Such additional parking shall be in the same parking lot(s) as the parking currently provided to Tenant and shall be at no charge to Tenant. 

        7.    Broker.    The parties hereto represent and warrant to each other that the only broker
or brokerage firm they have dealt with in connection with this Third Amendment is The Staubach Company ("Staubach"). Landlord agrees to pay a brokerage commission to Staubach in the amount of four
percent (4%) of the aggregate rent payable hereunder including all scheduled fixed rent escalators but excluding increases in Operating Costs and CAM. Said commission shall be due and payable by
Landlord to Staubach as follows: 50% upon execution and delivery of this Third Amendment by Landlord and Tenant and the remaining 50% payable upon the date upon which Tenant commences payment of rent
for the Additional Premises. 

        8.    Miscellaneous.    Except as herein otherwise expressly provided, the Amended Lease shall
remain unchanged and in full force and effect. In the event of any conflict between the terms and provisions set forth herein and the terms and provisions of the Amended Lease, the terms and
provisions of this Third Amendment shall control. This Third Amendment may be executed in any number of counterparts, all of which when taken together shall constitute but one and the same instrument. 

2

 

        IN WITNESS WHEREOF the parties hereto have executed this Third Amendment as of the day and year first above written. 

	 	 	 	LANDLORD:
	

WITNESS	

 	
 	

MERRITT-LT1, LLC
	
    /s/	

 	
 	

By:	

    /s/	

(SEAL)
	
	 	 	 	
	 
	

 	

 	
 	
TENANT:	

 
	

WITNESS	

 	
 	

NEUSTAR, INC.
	

 	

 	
 	

By:	

    /s/ ROBERT R. DOWSKI	

 
	
	 	 	 	

	

 	

(SEAL)	
 	

 	

 	

 
	
	 	 	 	 	 

3

        THIS FOURTH AMENDMATORY LEASE AGREEMENT ("Fourth Amendment"), made as of the 6th day of July, 2004, by and between  MERRITT-LT1,
LLC, a Maryland limited liability company (hereinafter called "Landlord"), and  NEUSTAR, INC., a Delaware corporation (hereinafter called "Tenant"). 

 
 

EXPLANATORY STATEMENT    
    

        By lease (the "Lease") dated May 14, 2000, Landlord leased to Tenant, and Tenant rented from Landlord, certain premises within the Building known as
Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza, Sterling, Virginia 20166. The parties hereto entered into an Amendatory Lease Agreement ("First Amendment") dated May 16, 2001,
pursuant to which Landlord leased to Tenant, and Tenant rented from Landlord, certain additional premises within Building X, Loudoun Tech Center, 46000 Center Oak Plaza, Sterling, Virginia 20166 (the
"Building"). The parties entered into a Second Amendatory Lease Agreement ("Second Amendment") dated September 14, 2001 pursuant to which the Lease, as amended by the First Amendment, was
further amended. The parties entered into a Third Amendatory Lease Agreement ("Third Amendment") dated May 16, 2001 pursuant to which the Lease, as amended by the First Amendment and Second
Amendment, was further amended. The parties hereto desire to further modify and supplement the Amended Lease to expand the Original Premises (as hereinafter defined) to include the Additional Premises
(as hereinafter defined), subject to the terms and conditions set forth herein. As used herein, the "Amended Lease" shall refer to the Lease, as amended by the First Amendment, the Second Amendment
and the Third Amendment. Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in the Amended Lease. 

        NOW, THEREFORE, THIS FOURTH AMENDMENT WITNESSETH, that for and in consideration of the mutual covenants and agreements herein contained,
the parties hereto hereby covenant and agree that the Amended Lease is hereby further modified and supplemented as follows: 

        1.    Lease of Additional Premises.    Landlord does hereby lease to Tenant, and the Tenant
does hereby lease from the Landlord, the premises outlined in red on Exhibit A attached hereto (the "Additional Premises") consisting of
approximately 3,014 rentable square feet within the Building for the term hereinafter provided, and subject to all of the terms and conditions set forth in the Amended Lease, including, without
limitation, any renewal options set forth in the Amended Lease, except as amended or modified in this Fourth Amendment. The net rentable area of the Additional Premises shall be calculated in
accordance with WDCAR Standard Method of Measurement and shall be subject to confirmation by Tenant's architect. 

        2.    Term.    The lease of the Additional Premises shall commence as of October 1,
2004 and shall terminate on August 31, 2010. Landlord shall deliver the Additional Premises to Tenant on October 1, 2004 to
commence Tenant's build-out thereof subject to all applicable terms of the Amended Lease, as further amended hereby, except that Tenant shall have no obligation to commence paying base
rent in respect of the Additional Premises until January 1, 2005 (the "Additional Premises Rent Commencement Date") and additional rent in respect of the Additional Premises until Additional
Premises Rent Commencement Date, all as more particularly set forth below. 

        3.    Condition of Additional Premises; Use of Additional Premises.    The Additional Premises
is leased to Tenant in an "as is" condition. Landlord shall not be required to do any work or make any installations therein, and Tenant shall at Tenant's sole cost and expense, perform any such work
or make any such installations, as may be required, for the operation of Tenant's business in the Additional Premises. Tenant may use the Additional Premises for the following purposes: offices for
the use of Tenant, its officers, agents and employees, a call center for use by Tenant and its agents, officers, employees and invitees, and other uses incidental thereto not prohibited by applicable
law. 

        4.    Rent.    Commencing as of the Additional Premises Rent Commencement Date
(January 1, 2005) the total monthly base rent for the entire premises leased within Building X pursuant to the Amended Lease, as amended by this Fourth Amendment, is set forth on
Exhibit B attached hereto. The rental payable with respect to the premises situated within Building VIII shall be as set forth in 

 

the
Lease. Tenant covenants and agrees to pay all rentals to Landlord, without notice or demand, in advance, on the first day of each month for the term of the Amended Lease, as further amended by
this Fourth Amendment, without set-off or deduction except as otherwise expressly provided in the Amended Lease. 

        5.    Tenant's Proportionate Share.    With respect to the payment of Tenant's share of
Operating Costs and CAM with respect to the Additional Premises only, the following provisions shall apply: 

        (a)   The
Additional Premises hereby leased comprise 5.03% of the total rentable area of the Building. 

        (b)   As
of January 1, 2005, Tenant shall pay Landlord as additional rent during each year of the Lease term for the Additional Premises, 5.03% of the amount of the
increase, if any, in Operating Costs over such costs for the 2004 calendar year as well as Tenant's Proportionate Share of increases in CAM charges over such charges for the 2004 calendar year,
calculated in accordance with Section 6(b) of the Amended Lease. In the event of any partial Lease year, Tenant's share of any increase in such Operating Costs and CAM in respect of the
Additional Premises shall be prorated for such partial year. 

        (c)   The
foregoing provisions with respect to the payment of Tenant's share of Operating Costs and CAM in respect of the Additional Premises shall not be applicable to the
Premises described in the Lease consisting of 40,440 rentable square feet within Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza, Sterling, VA 20166 nor shall such provisions be applicable
to the 47,790 rentable square feet described in the First Amendment, as modified by the Second Amendment, and the 9,374 rentable square feet described in the Third Amendment within Building X, 4600
Center Oak Plaza, Sterling, Virginia 20166 (collectively the "Original Premises"). Tenant's Proportionate Share of all Operating Costs and CAM for the Original Premises shall continue to be payable as
provided in Section 6(b) of the Lease, as amended by the First Amendment and Third Amendment. 

        6.    Parking.    Commencing as of October 1, 2004 and thereafter during the remainder
of the term, Landlord shall, in addition to all parking spaces provided to Tenant under the Amended Lease, provide additional unreserved parking to Tenant in respect of the Additional Premises at the
rate of four (4) spaces per 1,000 net rentable square feet. Such additional parking shall be in the same parking lot(s) as the parking currently provided to Tenant and shall be at no charge to
Tenant. 

        7.    Broker.    The parties hereto represent and warrant to each other that the only broker
or brokerage firm they have dealt with in connection with this Fourth Amendment is The Staubach Company ("Staubach"). Landlord agrees to pay a brokerage commission to Staubach in the amount of four
percent (4%) of the aggregate rent payable for the Additional Premises only (which rental is calculated at the rate of $17.00 per rentable square foot for the first year of the term of the lease for
the Additional Premises, with three percent (3%) annual increases thereafter) including all scheduled fixed rent escalators but excluding increases in Operating Costs and CAM. Said commission shall be
due and payable by Landlord to Staubach as follows: 50% upon execution and delivery of this Fourth Amendment by Landlord and Tenant and the remaining 50% payable upon the Additional Premises Rent
Commencement Date. 

        8.    Miscellaneous.    Except as herein otherwise expressly provided, the Amended Lease shall
remain unchanged and in full force and effect. In the event of any conflict between the terms and provisions set forth herein and the terms and provisions of the Amended Lease, the terms and
provisions of this Fourth Amendment shall control. This Fourth Amendment may be executed in any number of counterparts, all of which when taken together shall constitute but one and the same
instrument. 

2

 

        IN WITNESS WHEREOF the parties hereto have executed this Fourth Amendment as of the day and year first above written. 

	 	 	 	 	LANDLORD:
	
WITNESS:	
 	

 	
 	

MERRITT-LT1, LLC
	

/s/	
 	

 	
 	

By:	

/s/ SCOTT E. DORSEY
	
	 	 	 	 	

	 	 	(SEAL)	 	 	Name: Scott E. Dorsey
	
	 	 	 	 	Title: President
	

 	
 	

 	
 	
TENANT:
	
WITNESS:	
 	

 	
 	

NEUSTAR, INC.
	

/s/ J. BRYAN CARTER	
 	

 	
 	

By:	

/s/ J. BABKA
	
	 	 	 	 	

	 	 	(SEAL)	 	 	Name: Jeff Babka
	
 J. Bryan Carter	 	 	 	 	Title: CFO

3

        THIS FOURTH AMENDATORY LEASE AGREEMENT ("Fourth Amendment"), made as of this 4th day of August, 2004, by and between  MERRITT-LT1,
LLC, a Maryland limited liability company (hereinafter called "Landlord"), and  NEUSTAR, INC., a Delaware corporation (hereinafter called "Tenant"). 

 
 

EXPLANATORY STATEMENT    
    

        By lease (the "Lease") dated May 14, 2000, Landlord leased to Tenant, and Tenant rented from Landlord, certain premises within the Building known as
Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza, Sterling, Virginia 20166. The parties hereto entered into an Amendatory Lease Agreement ("First Amendment") dated May 16, 2001,
pursuant to which Landlord leased to Tenant, and Tenant rented from Landlord, certain additional premises within Building X, Loudoun Tech Center, 46000 Center Oak Plaza, Sterling, Virginia 20166. The
parties entered into a Second Amendatory Lease Agreement ("Second Amendment") dated September 14, 2001 pursuant to which the Lease, as amended by the First Amendment, was further amended. The
parties entered into a Third Amendatory Lease Agreement ("Third Amendment") dated May 16, 2001 pursuant to which the Lease, as amended by the First Amendment and Second Amendment, was further
amended. The parties hereto desire to further modify and supplement the Amended Lease to include the Additional Premises (as hereinafter defined), subject to the terms and conditions set forth herein.
As used herein, the "Amended Lease" shall refer to the Lease, as amended by the First Amendment, the Second Amendment and the Third Amendment. Capitalized terms used herein without definition shall
have the respective meanings ascribed thereto in the Amended Lease. 

        NOW, THEREFORE, THIS FOURTH AMENDMENT WITNESSETH, that for and in consideration of the mutual covenants and agreements herein contained,
the parties hereto hereby covenant and agree that the Amended Lease is hereby further modified and supplemented as follows: 

        1.    Lease of Additional Premises.    Landlord does hereby lease to Tenant, and the Tenant
does hereby lease from the Landlord, the premises outlined in red on Exhibit A attached hereto (the "Additional Premises") consisting of approximately 12,500 rentable square feet within the
building known as Building VI, Loudoun Tech Center, 45999 Center Oak Plaza, Sterling, Virginia 20166 (the "Building") for the term hereinafter provided, and subject to all of the terms and conditions
set forth in the Amended Lease, including, without limitation, any renewal options set forth in the Amended Lease, except as amended or modified in this Fourth Amendment. The net rentable area of the
Additional Premises shall be calculated in accordance with the most recent BOMA standard method of measurement provided that the building is measured from the outside face of the perimeter wall at
floor height, to the center of the demising partition, and shall be subject to confirmation by Tenant's architect. Landlord and Tenant agree that prior to occupancy of the additional Premises Landlord
and Tenant will amend this document to provide for the actual area that constitutes the Additional Premises. 

        2.    Term.    The lease of the Additional Premises shall commence on the later to occur of
(i) December 1, 2004 or (ii) the date Landlord substantially completes the work and installations to be made to the Additional Premises as hereinafter provided ("Landlord's
Work"), which date is hereinafter referred to as the "Lease Commencement Date". The Lease term shall terminate on August 31, 2010. Landlord's Work shall be performed in accordance with the
plans which Tenant shall deliver to Landlord consisting of fully completed and fully Tenant approved architectural space plans (the "Approved Plans") not later than September 30, 2004. Any
failure to timely deliver such architectural space plan as a finished construction drawing only (i.e. not to include MEP drawings) to Landlord by September 30, 2004, and with such failure
directly causing an actual delay by Landlord in the delivery of the Additional Premises, shall be deemed a Tenant Delay under the Lease and rent shall be payable for each day of such Tenant Delay as
if the Additional Premises had been completed and occupied. Notwithstanding the foregoing, the Lease commencement date shall not occur prior to Landlord having given Tenant not less than ten
(10) business days' prior notice of the anticipated substantial completion date. Tenant shall have the right to enter the Additional Premises during the thirty (30) day period which
immediately 

 

precedes
the Lease Commencement Date for the purpose of installing telecommunications equipment, specialty equipment, voice and data equipment and related Tenant personalty subject to all applicable
terms of the Amended Lease, as further amended hereby, except that Tenant shall have no obligation to commence paying Base Rent or Additional Rent with respect to the Additional Premises until the
Lease Commencement Date. Tenant's right to enter the Premises as aforesaid prior to the Lease Commencement Date shall be subject to the following conditions: (i) all property of Tenant placed
or stored on the Additional Premises prior to the Lease Commencement Date shall be at Tenant's sole risk and Landlord shall have no liability therefor in case of loss, theft or damage except to the
extent caused by the gross negligence or willful misconduct of Landlord or its agents or contractors, and (ii) Tenant's activities within the Additional Premises shall not interfere with the
performance of Landlord's Work. 

        a.)   Notwithstanding
the foregoing, Tenant shall have the unconditional and unilateral option, but not the obligation, to terminate this Fourth Amendment at no cost or fee,
upon written notice to Landlord, if and only if, Landlord fails for any reason to deliver to Tenant not later than ten (10) days after that date on which Tenant executes and delivers this
Fourth Amendment to Landlord either in person or as proscribed in the Lease (the "Tenant Delivery Date"), a true, complete, and fully executed copy of a
written legal agreement between Landlord and Apptix which provides in substance, among other things, that a.) Apptix has a legal obligation to fully vacate the Additional Premises (as a portion of the
total Apptix Premises) not later than sixty five (65) calendar days after Tenant executes this Fourth Amendment and delivers same to Landlord (the Tenant Possession
Date"), b.) Apptix acknowledges that it has forfeited all of its right of lease renewal as may be provided in that certain lease between Landlord and Apptix for the Apptix
Premises, and c.) Landlord agrees that it will use all of its legal rights and remedies (including eviction and the pursuit of damages) to recover the Additional Premises from Apptix if Apptix fails,
for any reason, to timely vacate the Additional Premises. Landlord agrees to make no provision within the termination agreement with Apptix, allowing Apptix to holdover within
the Additional Premises. Further notwithstanding the foregoing, in the event that Landlord fails to deliver to Tenant the documentation as required herein on or before the Tenant Delivery Date, it is
agreed and understood that Tenants termination rights hereunder shall expire and be of no further force or effect after the thirtieth (30th) day following the Tenant Delivery Date. 

        b.)   Further
notwithstanding the foregoing, in the event that Landlord fails for any reason to secure full possession of the Additional Premises from Apptix in fully vacant
condition on or before the Tenant Possession Date, Landlord will provide to Tenant liquidated damages in the amount of One Thousand Dollars ($1,000.00) per each calendar day of such delay to be
tendered to Tenant in form of an abatement of all Rent and Additional Rent otherwise coming due hereunder commencing on the actual Lease Commencement Date and continuing until the full amount of such
liquidated damages are credited to Tenant as abatement of Rent. 

        3.    Use.    Tenant may use the Additional Premises for the following purposes: general
office, administrative, and data center purposes and any other uses incidental thereto not prohibited by applicable law. 

        4.    Rent.    The Base Rent for the first year of the lease of the Additional Premises shall
be One Hundred Seventy-three Thousand, One Hundred Twenty-five Dollars ($173,125.00) payable in equal monthly installment of Fourteen Thousand, Four Hundred Twenty-seven Dollars and Eight
Cents ($14,427.08) each, which Base Rent is computed at the rate of Thirteen Dollars and Eighty Five Cents ($13.85) per each rentable square foot within the Additional Premises. The total annual and
monthly rentals set forth in the preceding sentence shall be adjusted at the rate of $13.85 per rentable square foot within the Additional Premises if the Additional Premises is more or less than
12,500 rentable square feet as measured in accordance with BOMA standard method of 

2

 

measurement,
measured from outside face of brick at floor height to center of demising partition, all as provided in Section 1 above. The base rental for each subsequent year of the lease of
the Additional Premises shall increase by three percent (3%) over the Base Rent for the preceding Lease year. Tenant covenants and agrees to pay all rentals to Landlord, without notice or demand, in
advance, on the first day of each month for the term of the Amended Lease, as further amended by this Fourth Amendment, without set-off or deduction except as otherwise expressly provided
in the Amended Lease. 

        5.    Tenant' s Proportionate Share.    With respect to the payment of Tenant's share of
Operating Costs and CAM with respect to the Additional Premises only, the following provisions shall apply: 

        (a)   For
purposes of computation of Operating Costs and CAM, Buildings V and VI, Loudoun Tech Center (the "Project") are treated as one Project by Landlord for purposes of
allocating such costs. The total rentable square foot area within the Project is 61,600 rentable square feet. The Additional
Premises hereby leased comprise twenty one and ten hundredths percent (21.10%) of the total rentable area of the Project. 

        (b)   As
of the Lease Commencement Date, Tenant shall pay Landlord as Additional Rent during each year of the Lease term for the Additional Premises, twenty one and ten
hundredths percent (21.10%) of Operating Costs and CAM. In the event of any partial Lease year, Tenant's share of Operating Costs and CAM, and specifically including real estate taxes, with respect to
the Additional Premises shall be prorated for such partial year. 

        (c)   Landlord
agrees to diligently manage all Operating Costs and CAM for efficiency and cost competitiveness according to best property management practices. At all times
during the term of the Amended Lease, as hereby further amended, and during all subsequent renewal periods, Landlord agrees that it will charge to Tenant management fees which are included in
Operating Costs in an amount equal to four percent (4%) of the total base rent derived by Landlord from the Project. 

        6.    Landlord's Work.    

        (a)   Landlord
will perform, or cause to be performed all of Landlord's Work with respect to the Additional Premises, subject to the allowance provisions set forth below, in
accordance with the Approved Plans. Landlord and/or its agents and subcontractors will be solely responsible for coordinating and performing Landlord's Work. Merritt Properties, LLC will serve as
general contractor (the "General Contractor") and shall be compensated for its services only as set forth in paragraph (c) below. 

        (b)   Landlord
shall perform all Landlord's Work in a good and workmanlike manner and in compliance with all applicable governmental regulations and current industry
standards. All construction materials used shall be subject to Landlord's normal and customary warranties and Landlord will diligently pursue to completion the prompt correction of all warranty claims
by Tenant with respect to the (i) substantial adherence to the Approved Plans, (ii) the good and workmanlike performance of Landlord's Work, and (iii) the freedom of all such
Landlord's Work from latent defects. Tenant and Tenant's consultants shall have the right, but not the obligation, to review, monitor and approve all work and materials involved in Landlord's Work
throughout the entire construction process for adherence to the Approved Plans, provided Tenant and/or Tenant's consultants do not cause delays in the performance of Landlord's Work. Landlord or its
designees shall obtain all permits, certificates (including a certificate of occupancy or its equivalent) and other governmental approvals from all governmental agencies having jurisdiction which are
necessary for the completion of Landlord's Work. 

3

 

        (c)   Tenant
shall pay Landlord a fee equal to five percent (5%) of only Landlord managed costs for the services of the General Contractor related to the construction of the
interiors of the Additional Premises, and (ii) market reasonable general conditions and reimbursements in the same manner and form as applied to the first data center transaction with Neustar.
Except as expressly provided in i.) and ii.) above, Landlord, may not charge to Tenant directly or indirectly any form of supervisory fee in connection with its rights to supervise the Tenant's Work
or in connection with the approval of Tenant's plans and specifications. 

        (d)   None
of the costs of Landlord's Work shall be included in Operating Costs payable by Tenant nor shall such costs otherwise be charged to Tenant except as provided in
this Section 6. 

        (e)   Landlord
agrees that the Additional Premises will be delivered to Tenant at the Lease Commencement Date free of all Hazardous Substances as defined in the Amended Lease
except for those items used for ordinary construction and office purposes which items shall be in accordance with all applicable Environmental Legal Requirements. 

        (f)    Landlord
warrants and represents that, at Landlord's sole cost and expense (and without any charge to Tenant or against the Tenant Allowance hereinafter provided) that
all leasehold construction improvements and Building systems will be in good working order including (i) all electric systems and related distribution which is located in, or which serves, the
Additional Premises, (ii) all HVAC systems and related distribution located in or serving the Additional Premises, and (iii) all plumbing systems and related distribution which is
located in and serves the Additional Premises, including rest rooms pursuant to prevailing county building codes. 

        (g)   Except
as specifically otherwise set forth in this Section 6 all costs of Landlord's Work shall be paid by Tenant to Landlord as follows: (i) fifty percent
(50%) thereof upon approval of the Approved Plans, (ii) forty percent (40%) thereof within fifteen (15) days of the Lease Commencement Date and (iii) the final ten percent (10%)
thereof within fifteen (15) days after Landlord's completion of the final Tenant approved punch list. However, notwithstanding the foregoing, Tenant may elect by written notice to Landlord
given not later than the date of approval of the Approved Plans, to fund and amortize the cost of Landlord's Work up to, but not in excess of One Hundred Four Thousand Dollars ($104,000.00) (computed
at the rate of $8.00 per rentable square feet within the Additional Premises) over the Lease term (exclusive of any renewal term) at an interest rate of ten percent (10%) per annum. If Tenant so
elects, the parties shall enter into an addendum to this Fourth Amendment setting forth the increased Base Rentals resulting therefrom. 

        (h)   Tenant
shall have the right to select and use its own space planner/architect (the "Tenant's Architect") with respect to the planning and designing of the Additional
Premises subject to the approval of Landlord, which shall not be unreasonably withheld. All fees of Tenant's Architect and other costs associated with the services of Tenant's Architect shall be at
Tenant's sole cost and expense. Landlord hereby pre-approves Tenant's right to select GanekBear Architects, Inc. as the Tenant's Architect. 

        7.    Parking.    Commencing as of the Lease Commencement Date and thereafter during the
remainder of the term for the Additional Premises, Landlord shall, in addition to all parking spaces provided to Tenant under the Amended Lease, provide additional unreserved parking to Tenant with
respect of the Additional Premises at the rate of four (4) spaces per 1,000 net rentable square feet of the Additional Premises. Such additional parking shall be in the same parking lot
adjacent to the Building and shall be at no charge to Tenant, except for Tenant's pro rata share of 

4

 

Operating
Costs for maintenance, repair and other similar costs incurred in connection with such parking. 

        8.    Broker.    The parties hereto represent and warrant to each other that the only broker
or brokerage firm they have dealt with in connection with this Fourth Amendment is The Staubach Company ("Staubach"). Landlord agrees to pay a brokerage commission to Staubach in the amount of four
percent (4%) of the aggregate rent payable for the Additional Premises only (which rental is calculated at the rate of $13.85 per rentable square foot for the first year of the term of the lease for
the Additional Premises, with three percent (3%) annual increases thereafter) including all scheduled fixed rent escalators but excluding increases in Operating Costs and CAM. Said commission shall be
due and payable by Landlord to Staubach as follows: 50% upon execution and delivery of this Fourth Amendment by Landlord and Tenant and the remaining 50% payable upon the date upon which
(i) the Lease Commencement Date occurs, (ii) Tenant takes beneficial occupancy of the Additional Premises, and (iii) Tenant commences payment of Base Rent for the Additional
Premises. Additionally, Landlord will also pay additional commissions to Staubach in the same manner and amount as provided herein if Tenant exercises any of its expansion rights as set forth in
Paragraph 9 below. 

        9.    Expansion Rights.    

        (a)   Landlord
hereby grants Tenant an ongoing right of first offer to lease all office space available, or which becomes available, in the Building (the "Expansion Space"),
from time to time, during the term of the lease for the Additional Premises and any renewal terms, subject only to the prior written and contractually bound superior rights of existing tenants within
the Building which have been granted such expansion rights as of the date of this Fourth Amendment. On each such occasion of any Expansion Space becoming available, Landlord shall give Tenant written
notice ("Landlord's Notice") of such availability before entering into any agreements with any third party tenants or prospective tenants, which Landlord's Notice shall set forth the then prevailing
fair market net rental value of the Expansion Space ("Market Rate"), which Market Rate shall include adjustments being made for all then applicable market concessions and transaction expenses normally
incurred by Landlord or Tenant for comparable office space which are not incurred by Landlord or Tenant in connection with Tenant's existing expansion options under the Amended Lease. There shall be
no minimum rental floor or maximum rental ceiling in calculating Market Rate. For purposes of this paragraph the term "Market Rate" shall mean only the prevailing rent for those buildings of
comparable age, size, location and quality within Loudoun Tech Center. In order for Tenant to exercise such expansion option, Tenant must give Landlord affirmative written notice within ten
(10) business days after Tenant's receipt of Landlord's Notice that it has elected to lease the Expansion Space as Market Rate and under the terms and conditions set forth in Landlord's Notice.
If Tenant so elects to lease the Expansion Space, the parties shall enter into an appropriate amendment to the Amended Lease. If Tenant does not give Landlord affirmative written notice of Tenant's
election to lease the Expansion Space within such ten (10) business day period, Landlord shall be free to lease the Expansion Space to a third party at such rental and under such terms and
conditions as Landlord and the third party may agree, provided however, that Tenant's rights hereunder in relation to such Expansion Space shall become activated again at such time, if ever, that such
Expansion Space becomes available for lease again subject to all the other terms and conditions herein. Notwithstanding any of the foregoing provisions, in no event shall Landlord's Notice provide for
the leasing of the Expansion Space for a lease term extending beyond the term of the lease of the Additional Premises, nor shall Tenant have the right to lease the Expansion Space for a period of less
than three (3) years. 

5

 

        (b)   The
Additional Premises is part of the premises now leased by Apptix consisting of a total of 25,752 rentable square feet within the Building (the "Apptix Premises").
The provisions of this paragraph 9 (b) shall apply solely to the remainder of the Apptix Premises which is not part of the Additional Premises. On the sooner to occur of (i) the
expiration date of the Apptix lease (as of approximately June 30, 2005) or (ii) such earlier date as the remainder of the Apptix Premises may become available, Landlord shall notify
Tenant in writing ("Landlord's Apptix Notice") of such availability and offer Tenant the right to lease the remainder of the Apptix Premises under the same terms and conditions as are set forth in
this Fourth Amendment except that the Base Rent for the first year of the lease for the remainder for the Apptix Premises shall be at Market Rate (as defined in paragraph (a) above) and the
Base Rent for each subsequent year shall increase at the rate of three percent (3%) over the Base Rent for the prior year. Tenant shall have ten (10) business days after receipt of Landlord's
Apptix Notice to elect to exercise its right to lease the remainder of the Apptix Premises in accordance with the provisions of Landlord's Apptix Notice. If Tenant so elects, Tenant and Landlord shall
enter into an additional amendment to the Amended Lease with respect to the leasing by Tenant of the remainder of the Apptix Premises. If Tenant does not give Landlord written notice of its election
to lease the remainder of the Apptix Premises within such ten (10) day period, Landlord shall be free to lease such space to a third party under such terms and conditions and at such rentals as
Landlord and the third party may agree, provided however, that Tenant's rights hereunder in relation to such remaining Apptix
space shall become activated again at such time, if ever, that such Apptix space becomes available for lease again subject to all the other terms and conditions herein. 

        10.    Trade Fixtures.    Tenant shall retain one hundred percent (100%) ownership of its
movable special Tenant improvements within the Additional Premises, including but not limited to, trade fixtures and their related mechanical support systems and detachable furniture. 

        11.    Antenna Roof Rights.    Tenant shall have the same right to place one or more antennas
on the roof of the Building as it has with respect to the other buildings in which Tenant has leased premises from Landlord, which rights shall be subject to all of the same terms and conditions as
set forth in the Amended Lease. 

        12.    Signage Rights of Tenant.    Tenant shall have the non-exclusive right to
have its backlighted sign or backlighted logo placed on top of the Building or on a ground mounted monument located in front of the Building in a manner which maximizes its visibility. All such
signage shall be designed and installed in accordance with all laws, ordinances and regulations and shall be subject to Landlord's signage standards for the buildings within Loudoun Tech Center. The
cost of the signage and the installation thereof shall be a permissible charge against the Tenant Allowance set forth in Section 6(g) hereof. Pursuant to the foregoing provisions, Tenant shall
submit to Landlord as part of the Approved Plans a sign exhibit showing the design and placement of Tenant's sign which sign plan shall be subject to Landlord's approval as a part of the Approved
Plans. 

        13.    Miscellaneous.    Except as herein otherwise expressly provided, the Amended Lease
shall remain unchanged and in full force and effect. In the event of any conflict between the terms and provisions set forth herein and the terms and provisions of the Amended Lease, the terms and
provisions of this Fourth Amendment shall control. This Fourth Amendment may be executed in any number of counterparts, all of which when taken together shall constitute but one and the same
instrument. 

—Signatures
on the following page.— 

6

 

        IN WITNESS WHEREOF the parties hereto have executed this Fourth Amendment as of the day and year first above written. 

	 	 	 	 	LANDLORD:
	
WITNESS:	
 	

 	
 	

MERRITT-LT1, LLC
	

/s/	
 	

 	
 	

By:	

/s/ SCOTT E. DORSEY
	
	 	 	 	 	

	 	 	(SEAL)	 	 	Name: Scott E. Dorsey
	
	 	 	 	 	Title: President
	

 	
 	

 	
 	
TENANT:
	
WITNESS:	
 	

 	
 	

NEUSTAR, INC.
	

/s/ J. BRYAN CARTER	
 	

 	
 	

By:	

/s/ J. BABKA
	
	 	 	 	 	

	 	 	(SEAL)	 	 	Name: Jeff Babka
	
 J. Bryan Carter	 	 	 	 	Title: CFO

7

        THIS FIFTH AMENDATORY LEASE AGREEMENT ("Fifth Amendment"), made as of the 11th day of November, 2004, by and between  MERRITT-LTl,
LLC, a Maryland limited liability company (hereinafter called "Landlord"), and  NEUSTAR, INC., a Delaware corporation (hereinafter called "Tenant").
 

 
 

EXPLANATORY STATEMENT    
    

        By lease (the "Lease") dated May 14, 2000, Landlord leased to Tenant, and Tenant rented from Landlord, certain premises within the Building known as
Building VIII, Loudoun Tech Center, 45980 Center Oak Plaza, Sterling, Virginia 20166. The parties hereto entered into an Amendatory Lease Agreement ("First Amendment") dated May 16, 2001,
pursuant to which Landlord leased to Tenant, and Tenant rented from Landlord, certain additional premises within Building X, Loudoun Tech Center, 46000 Center Oak Plaza, Sterling, Virginia 20166. The
parties entered into a Second Amendatory Lease Agreement ("Second Amendment") dated September 14, 2001 pursuant to which the Lease, as amended by the First Amendment, was further amended. The
parties entered into a Third Amendatory Lease Agreement ("Third Amendment") dated May 16, 2001 pursuant to which the Lease, as amended by the First Amendment and Second Amendment, was further
amended. The parties entered into a Fourth Amendatory Lease Agreement ("Fourth Amendment") dated August 4th, 2004 pursuant to which the Lease, as amended by the First Amendment and Second Amendment
and the Third Amendment, was further amended to reflect the leasing of additional office space in 45999 Center Oak Plaza, Sterling, Virginia 20166. The parties hereto desire to further modify and
supplement the Amended Lease to include the Final Additional Premises (as hereinafter defined), subject to the terms and conditions set forth herein. As used herein, the "Amended Lease" shall refer to
the Lease, as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, and this Fifth Amendment. Capitalized terms used herein without definition shall have the
respective meanings ascribed thereto in the Amended Lease. 

        NOW, THEREFORE, THIS FIFTH AMENDMENT WITNESSETH, that for and in consideration of the mutual covenants and agreements herein contained,
the parties hereto hereby covenant and agree that the Amended Lease is hereby further modified and supplemented as follows: 

        1.    Lease of Final Additional Premises.    Tenant hereby exercises its option to lease
additional office space in the Building pursuant to paragraph 9 (b) of the Fourth Amendment and Landlord does hereby lease to Tenant, and Tenant does hereby lease from the Landlord, such
additional office space as outlined in red on Exhibit A attached hereto (the "Final Additional Premises") consisting of approximately 14,000 rentable square feet within the building known as
Building VI, Loudoun Tech Center, 45999 Center Oak Plaza, Sterling, Virginia 20166 (the "Building") for the term hereinafter provided, and subject to all of the terms and conditions set forth in the
Amended Lease, including, without limitation, any renewal options set forth in the Amended Lease for all office space leased under this Fifth Amendment and in the Amended Lease, except as expressly
amended or otherwise modified in this Fifth Amendment. The Final Additional Premises under this Fifth Amendment shall consist of the
entire remaining portion of the office space leased by Apptix in the Building which was not leased by Tenant pursuant to the Fourth Amendment and which remains in the possession of Apptix as of the
date hereof. The net rentable area of the Final Additional Premises shall be calculated in accordance with the most recent BOMA standard method of measurement provided that the building is measured
from the outside face of the perimeter wall at floor height, to the center of the demising partition, and shall be subject to confirmation by Tenant's architect. Landlord and Tenant agree that prior
to occupancy of the Final Additional Premises Landlord and Tenant will amend this Fifth Amendment to provide for the actual rentable square foot area that constitutes the Final Additional Premises. 

        2.    Term.    Apptix shall surrender the Final Additional Premises to Landlord not later than
March 1, 2005. The lease of the Final Additional Premises shall commence on the date Landlord substantially completes all the work and installations to be made to the Final Additional Premises
("Landlord's Work"), which date is hereinafter referred to as the "Lease Commencement Date". The Lease term shall terminate on August 31, 2010. Landlord's Work shall be performed in 

 

accordance
with the plans and specifications delivered by Tenant to Landlord, consisting of only fully completed and fully Tenant approved architectural space plans, (the "Approved Plans") to be
delivered by Tenant to Landlord not later than January 15, 2005. Any failure by Tenant to timely deliver to Landlord the Approved Plans (i.e. not to be construed to mean
include MEP drawings, but rather, only Tenant approved architectural space plans) within the time periods stipulated herein, and with such failure directly causing an actual
delay by Landlord in the delivery of the Final Additional Premises, then such delay shall be deemed a Tenant Delay on a day for day basis under the Lease and rent shall be payable for each day of such
Tenant Delay as if the Final Additional Premises had been completed and occupied. Notwithstanding the foregoing, the Lease commencement date shall not occur prior to Landlord having given Tenant not
less than ten (10) business days' prior notice of the anticipated substantial completion date. Tenant shall have the right to enter the Final Additional Premises during the thirty
(30) day period which immediately precedes the Lease Commencement Date for the purpose of installing telecommunications equipment, specialty equipment, voice and data equipment and related
Tenant personalty subject to all applicable terms of the Amended Lease, as further amended hereby, except that Tenant shall have no obligation to commence paying Base Rent or Final Additional Rent
with respect to the Final Additional Premises until the Lease Commencement Date. Tenant's right to enter the Final Additional Premises as aforesaid prior to the Lease Commencement Date shall be
subject to the following conditions: (i) all property of Tenant placed or stored on the Final Additional Premises prior to the Lease Commencement Date shall be at Tenant's sole risk and
Landlord shall have no liability therefor in case of loss, theft or damage except to the extent caused by the gross negligence or willful misconduct of Landlord or its agents or contractors, and
(ii) Tenant's activities within the Final Additional Premises shall not interfere with the performance of Landlord's Work. 

        3.    Use.    Tenant may use the Final Additional Premises for the following purposes: general
office, administrative and data center purposes and any other uses incidental thereto not prohibited by applicable law. 

        4.    Rent.    The Base Rent for the first year of the lease term for the Final Additional
Premises shall be One Hundred Ninety Three Thousand, Nine Hundred Dollars and No Cents ($193,900.00) payable in equal monthly installment of Sixteen Thousand, One Hundred Fifty Eight Dollars and
Thirty Three Cents ($16,158.33) each, which Base Rent is computed at the rate of Thirteen Dollars and Eighty Five Cents ($13.85) per each rentable square foot within the Final Additional Premises. The
total annual and monthly rentals set forth in the preceding sentence shall be adjusted at the rate of $13.85 per rentable square foot within the Final Additional Premises if the Final Additional
Premises is more or less than 14,000 rentable square feet as measured in accordance with BOMA standard method of measurement, measured from outside face of brick at floor height to center of demising
partition as shown on Exhibit B. The base rental for each subsequent year of the lease of the Final Additional Premises shall increase by three percent (3%) over the Base Rent for the preceding
Lease year. Commencing on the Lease Commencement Date, Tenant covenants and agrees to pay all rentals to Landlord, without notice or demand, in advance, on the first day of each month for the term of
the Amended Lease, as further amended by this Fifth Amendment, without set-off or deduction except as otherwise expressly provided in the Amended Lease. 

        5.    Tenant's Proportionate Share.    With respect to the payment of Tenant's share of
Operating Costs and CAM with respect to the Final Additional Premises only, the following provisions shall apply: 

        (a)   For
purposes of computation of Operating Costs and CAM, Buildings V and VI, Loudoun Tech Center (the "Project") are treated as one Project by Landlord for purposes of
allocating such costs. The total rentable square foot area within the Project is 61,600 rentable 

2

 

square
feet. As of the Lease Commencement Date for the Final Additional Premises, Tenant's prorate share will forty one and eighty one hundredths percent (41.81%) of the total rentable area of the
Project. 

        (b)   As
of the Lease Commencement Date, Tenant shall pay Landlord as Additional Rent during each year of the Lease term for the Final Additional Premises, forty one and
eighty one hundredths percent (41.81%) of Operating Costs and CAM. In the event of any partial Lease year, Tenant's share of Operating Costs and CAM, and specifically including real estate taxes, with
respect to the Final Additional Premises shall be prorated for such partial year. 

        (c)   Landlord
agrees to diligently manage all Operating Costs and CAM for efficiency and cost competitiveness according to best property management practices. At all times
during the term of the Amended Lease, as hereby further amended, and during all subsequent renewal periods, Landlord agrees that it will charge to Tenant management fees which are included in
Operating Costs in an amount equal to four percent (4%) of the total base rent derived by Landlord from the Project. 

        6.    Landlord's Work.    

        (a)   Landlord
will perform, or cause to be performed all of Landlord's Work with respect to the Final Additional Premises, subject to the allowance provisions set forth
below, in accordance with the Approved Plans. Landlord and/or its agents and subcontractors will be solely responsible for coordinating and performing Landlord's Work. Merritt Properties, LLC will
serve as general contractor (the "General Contractor") and shall be compensated for its services only as set forth in paragraph (c) below. 

        (b)   Landlord
shall perform all Landlord's Work in a good and workmanlike manner and in compliance with all applicable governmental regulations and current industry
standards. All construction materials used shall be subject to Landlord's normal and customary warranties and Landlord will diligently pursue to completion the prompt correction of all warranty claims
by Tenant with respect to the (i) substantial adherence to the Approved Plans, (ii) the good and workmanlike performance of Landlord's Work, and (iii) the freedom of all such
Landlord's Work from latent defects. Tenant and Tenant's consultants shall have the right, but not the obligation, to review, monitor and approve all work and materials involved in Landlord's Work
throughout the entire construction process for adherence to the Approved Plans, provided Tenant and/or Tenant's consultants do not cause delays in the performance of Landlord's Work. Landlord or its
designees shall obtain all permits, certificates (including a certificate of occupancy or its equivalent) and other governmental approvals from all governmental agencies having jurisdiction which are
necessary for the completion of Landlord's Work. 

        (c)   Tenant
shall pay Landlord a fee equal to five percent (5%) of only Landlord managed costs for the services of the General Contractor related to the construction of the
interiors of the Final Additional Premises, and (ii) market reasonable general conditions and reimbursements in the same manner and form as applied to the first data center transaction with
Neustar. Except as expressly provided in i.) and ii.) above, Landlord, may not charge to Tenant directly or indirectly any form of supervisory fee in connection with its rights to supervise the
Tenant's Work or in connection with the approval of Tenant's plans and specifications. 

        (d)   None
of the costs of Landlord's Work shall be included in Operating Costs payable by Tenant nor shall such costs otherwise be charged to Tenant except as provided in
this Section 6. 

3

 

        (e)   Landlord
agrees that the Final Additional Premises will be delivered to Tenant at the Lease Commencement Date free of all Hazardous Substances as defined in the Amended
Lease except for those items used for ordinary construction and office purposes which items shall be in accordance with all applicable Environmental Legal Requirements. 

        (f)    Landlord
warrants and represents that, at Landlord's sole cost and expense (and without any charge to Tenant or against the Tenant Allowance hereinafter provided) that
all leasehold construction improvements and Building systems will be in good working order including (i) all electric systems and related distribution which is located in, or which serves, the
Final Additional Premises, (ii) all HV AC systems and related distribution located in or serving the Final Additional Premises, and (iii) all plumbing systems and related distribution
which is located in and serves the Final Additional Premises, including rest rooms pursuant to prevailing county building codes. 

        (g)   Except
as specifically otherwise set forth in this Section 6 all costs of Landlord's Work shall be paid by Tenant to Landlord as follows: (i) fifty percent
(50%) thereof upon approval of the Approved Plans, (ii) forty percent (40%) thereof within fifteen (15) days of the Lease Commencement Date and (iii) the final ten percent (10%)
thereof within fifteen (15) days after Landlord's completion of the final Tenant approved punch list. However, notwithstanding the foregoing, Tenant may elect by written notice to Landlord
given not later than the date of approval of the Approved Plans, to fund and amortize the cost of Landlord's Work up to, but not in excess of One Hundred Twelve Thousand Dollars ($112,000.00)
(computed at the rate of $8.00 per rentable square feet within the Final Additional Premises) over the Lease term (exclusive of any renewal term) at an interest rate of ten percent (10%) per annum. If
Tenant so elects, the parties shall enter into an addendum to this Fourth Amendment setting forth the increased Base Rentals resulting therefrom. 

        (h)   Tenant
shall have the right to select and use its own space planner/architect (the "Tenant's Architect") with respect to the planning and designing of the Final
Additional Premises subject to the approval of Landlord, which shall not be unreasonably withheld. All fees of Tenant's Architect and other costs associated with the services of Tenant's Architect
shall be at Tenant's sole cost and expense. Landlord hereby pre-approves Tenant's right to select GanekBear Architects, Inc. as the Tenant's Architect. 

        7.    Parking.    Commencing as of the Lease Commencement Date and thereafter during the
remainder of the term for the Final Additional Premises, Landlord shall, in addition to all parking spaces provided to Tenant under the Amended Lease, provide additional unreserved parking to Tenant
with respect of the Final Additional Premises at the rate of four (4) spaces per 1,000 net rentable square feet of the Final Additional Premises. Such additional parking shall be in the same
parking lot adjacent to the Building and shall be at no charge to Tenant, except for Tenant's pro rata share of Operating Costs for maintenance, repair and other similar costs incurred in connection
with such parking. 

        8.    Broker.    The parties hereto represent and warrant to each other that the only broker
or brokerage firm they have dealt with in connection with this Fifth Amendment is The Staubach Company ("Staubach"). Landlord agrees to pay a brokerage commission to Staubach in the amount of four
percent (4%) of the aggregate rent payable for the Final Additional Premises only (which rental is calculated at the rate of $13.85 per rentable square foot for the first year of the term of the lease
for the Final Additional Premises, with three percent (3%) annual increases thereafter) including all scheduled fixed rent escalators but excluding increases in Operating Costs and CAM. Said
commission shall be due and payable by Landlord to Staubach as follows: 50% upon execution and delivery of this Fourth Amendment by Landlord and Tenant and the remaining 50% payable upon the date upon
which (i) the Lease Commencement Date occurs, 

4

 

(ii) Tenant
takes beneficial occupancy of the Final Additional Premises, and (iii) Tenant commences payment of Base Rent for the Final Additional Premises. Additionally, Landlord will
also pay additional commissions to Staubach in the same manner and amount as provided herein if Tenant exercises any of its expansion rights as set forth in Paragraph 9 below. 

        9.    Expansion Rights.    

        Paragraph 9
(a) of the Fourth Amendment as written shall remain in full force and effect and shall remain part of the Amended Lease. 

        Paragraph 9
(b) of the Fourth Amendment is hereby deleted and is of no further force or effect hereunder under the Amended Lease as Tenant has affirmatively elected the
leasing of such office space as part of this Fifth Amendment. 

        Paragraphs
2(a) and 2(b) of the Fourth Amendment shall be null and void and of no further force or effect as of the Lease Commencement Date for the Final Additional Premises. 

        10.    Trade Fixtures.    

        Such
rights shall apply as per the Fourth Amendment. 

        11.    Antenna Roof Rights.    

        Such
rights shall apply as per the Fourth Amendment. 

        12.    Signage Rights of Tenant.    

        Such
rights shall apply as per the Fourth Amendment. 

        13.    Miscellaneous.    Except as herein otherwise expressly provided, the Amended Lease and
all its terms and conditions shall remain unchanged and in full force and effect. In the event of any conflict between the terms and provisions set forth herein and the terms and provisions of the
Amended Lease, the terms and provisions of this Fifth Amendment shall control. This Fifth Amendment may be executed in any number of counterparts, all of which when taken together shall constitute but
one and the same instrument. 

 
 

-Signatures on the following page.-    
    

5

 

        IN WITNESS WHEREOF the parties hereto have executed this Fourth Amendment as of the day and year first above written. 

	WITNESS:	 	MERRITT-LTI, LLC	 	 
	

/s/	
 	

By:	

/s/  SCOTT E. DORSEY      
	
 	

(SEAL)
	 	 	Name:	Scott E. Dorsey	 	 
	 	 	Title:	President	 	 
	

 	
 	

 	

 	
 	

 
	 	 	LANDLORD
	

 	
 	
NEUSTAR, INC.	
 	

 
	

/s/  JBC      
	
 	

By:	

/s/  J. BABKA       
	
 	

(SEAL)
	J. Bryan Carter	 	Name:	Jeffrey Babka	 	 
	 	 	Title:	CFO	 	 
	

 	
 	
TENANT

6

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LOUDOUN TECH CENTER OFFICE LEASE BY AND BETWEEN MERRITT-LT1, LLC, LANDLORD AND NEUSTAR, INC., TENANT TABLE OF CONTENTS

EXHIBITS

EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

EXPLANATORY STATEMENT

Signatures on the following page.QuickLinks
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Exhibit 10.38  

 

  

CREDIT AGREEMENT  

Dated as of August 14, 2002 

among 

NEUSTAR, INC.,  

as the Borrower, 

BANK OF AMERICA, N.A.,  

as Administrative Agent, Lender and L/C Issuer, 

and 

The
Other Lenders Party Hereto 

BANK OF AMERICA, N.A.,  

as 

Sole
Lead Arranger and Sole Book Manager 

 

  

 
 

TABLE OF CONTENTS    
    

	 
	 	 
	 	Page

	ARTICLE I.    DEFINITIONS AND ACCOUNTING TERMS	 	 
	

1.01	
 	

Defined Terms	
 	

1
	1.02	 	Other Interpretive Provisions	 	18
	1.03	 	Accounting Terms	 	18
	1.04	 	Rounding	 	19
	1.05	 	References to Agreements and Laws	 	19
	1.06	 	Times of Day	 	19
	1.07	 	Letter of Credit Amounts	 	19
	

ARTICLE II.    THE COMMITMENTS AND CREDIT EXTENSIONS	
 	

 
	

2.01	
 	

Loans	
 	

19
	2.02	 	Borrowings, Conversions and Continuations of Loans	 	19
	2.03	 	Letters of Credit	 	21
	2.04	 	Prepayments	 	26
	2.05	 	Termination or Reduction of Commitments	 	27
	2.06	 	Repayment of Loans	 	28
	2.07	 	Interest	 	28
	2.08	 	Fees	 	28
	2.09	 	Computation of Interest and Fees	 	29
	2.10	 	Evidence of Debt	 	29
	2.11	 	Payments Generally	 	29
	2.12	 	Sharing of Payments	 	30
	2.13	 	Extension of Maturity Date	 	31
	2.14	 	Increase in Commitments	 	31
	

ARTICLE III.    TAXES, YIELD PROTECTION AND ILLEGALITY	
 	

 
	

3.01	
 	

Taxes	
 	

32
	3.02	 	Illegality	 	33
	3.03	 	Inability to Determine Rates	 	33
	3.04	 	Increased Cost and Reduced Return; Capital Adequacy	 	33
	3.05	 	Funding Losses	 	34
	3.06	 	Matters Applicable to All Requests for Compensation	 	34
	3.07	 	Survival	 	34
	

ARTICLE IV.    SECURITY	
 	

 
	

4.01	
 	

Security	
 	

35
	4.02	 	Further Assurances	 	35
	4.03	 	Information Regarding Collateral	 	36
	

ARTICLE V.    CONDITIONS PRECEDENT TO CREDIT EXTENSIONS	
 	

 
	

5.01	
 	

Conditions of Initial Credit Extension	
 	

36
	5.02	 	Conditions to all Credit Extensions	 	39
	

ARTICLE VI.    REPRESENTATIONS AND WARRANTIES	
 	

 
	

6.01	
 	

Existence, Qualification and Power; Compliance with Laws	
 	

39
	6.02	 	Authorization; No Contravention	 	39
	6.03	 	Governmental Authorization; Other Consents	 	39
	 	 	 	 	 

ii

 

	6.04	 	Binding Effect	 	40
	6.05	 	Financial Statements; No Material Adverse Effect	 	40
	6.06	 	Litigation	 	40
	6.07	 	No Default	 	40
	6.08	 	Ownership of Property; Liens	 	40
	6.09	 	Environmental Compliance	 	41
	6.10	 	Insurance	 	41
	6.11	 	Taxes	 	41
	6.12	 	ERISA Compliance	 	41
	6.13	 	Subsidiaries	 	41
	6.14	 	Margin Regulations; Investment Company Act; Public Utility Holding Company Act	 	41
	6.15	 	Disclosure	 	42
	6.16	 	Compliance with Laws	 	42
	6.17	 	Intellectual Property; Licenses, Etc	 	42
	

ARTICLE VII.    AFFIRMATIVE COVENANTS	
 	

 
	

7.01	
 	

Financial Statements	
 	

42
	7.02	 	Certificates; Other Information	 	43
	7.03	 	Notices	 	44
	7.04	 	Payment of Obligations	 	45
	7.05	 	Preservation of Existence, Etc	 	45
	7.06	 	Maintenance of Properties	 	45
	7.07	 	Maintenance of Insurance	 	45
	7.08	 	Compliance with Laws and Contractual Obligations	 	45
	7.09	 	Books and Records	 	45
	7.10	 	Inspection Rights	 	45
	7.11	 	Use of Proceeds	 	46
	7.12	 	New Subsidiaries and Pledgors	 	46
	7.13	 	Banking Relationship	 	47
	7.14	 	Deposit Account	 	47
	7.15	 	Travel Policy	 	47
	

ARTICLE VIII.    NEGATIVE COVENANTS	
 	

 
	

8.01	
 	

Liens	
 	

48
	8.02	 	Investments	 	48
	8.03	 	Indebtedness	 	49
	8.04	 	Fundamental Changes	 	50
	8.05	 	Dispositions	 	50
	8.06	 	Restricted Payments	 	51
	8.07	 	Change in Nature of Business	 	51
	8.08	 	Transactions with Affiliates	 	51
	8.09	 	Burdensome Agreements	 	52
	8.10	 	Use of Proceeds	 	52
	8.11	 	Financial Covenants	 	52
	8.12	 	Capital Expenditures	 	53
	8.13	 	Subsidiary Securities	 	53
	8.14	 	Amendment of Stockholders' Agreements and Lockheed Note	 	53
	

ARTICLE IX.    EVENTS OF DEFAULT AND REMEDIES	
 	

 
	

9.01	
 	

Events of Default	
 	

53
	 	 	 	 	 

iii

 

	9.02	 	Remedies Upon Event of Default	 	55
	9.03	 	Application of Funds	 	55
	

ARTICLE X.    ADMINISTRATIVE AGENT	
 	

 
	

10.01	
 	

Appointment and Authorization of Administrative Agent	
 	

56
	10.02	 	Delegation of Duties	 	57
	10.03	 	Liability of Administrative Agent	 	57
	10.04	 	Reliance by Administrative Agent	 	57
	10.05	 	Notice of Default	 	57
	10.06	 	Credit Decision; Disclosure of Information by Administrative Agent	 	58
	10.07	 	Indemnification of Administrative Agent	 	58
	10.08	 	Administrative Agent in Its Individual Capacity	 	59
	10.09	 	Successor Administrative Agent	 	59
	10.10	 	Administrative Agent May File Proofs of Claim	 	59
	10.11	 	Collateral and Guaranty Matters	 	60
	

ARTICLE XI.    MISCELLANEOUS	
 	

 
	

11.01	
 	

Amendments, Etc	
 	

60
	11.02	 	Notices and Other Communications; Facsimile Copies	 	61
	11.03	 	No Waiver; Cumulative Remedies	 	62
	11.04	 	Attorney Costs, Expenses and Taxes	 	62
	11.05	 	Indemnification by the Borrower; Limitation of Liability	 	63
	11.06	 	Payments Set Aside	 	63
	11.07	 	Successors and Assigns	 	64
	11.08	 	Confidentiality	 	66
	11.09	 	Set-off	 	67
	11.10	 	Interest Rate Limitation	 	67
	11.11	 	Counterparts	 	67
	11.12	 	Integration	 	67
	11.13	 	Survival of Representations and Warranties	 	67
	11.14	 	Severability	 	68
	11.15	 	Tax Forms	 	68
	11.16	 	Governing Law	 	69
	11.17	 	Waiver of Right to Trial by Jury	 	70
	

SIGNATURES	
 	

71
	
SCHEDULES	
 	

 
	2.01	 	Commitments and Pro Rata Shares	 	1
	4.03	 	Information Regarding Collateral	 	1
	6.05	 	Supplement to Interim Financial Statements	 	1
	6.06	 	Litigation	 	1
	6.13	 	Subsidiaries and Other Equity Investments	 	1
	8.01	 	Existing Liens	 	1
	8.03	 	Existing Indebtedness	 	1
	11.02	 	Administrative Agent's Office, Certain Addresses for Notices	 	1
	 	 	 	 	 

iv

 

	
EXHIBITS	
 	

 
	
Form of	
 	

 
	

A	
 	

Loan Notice	
 	

A-1
	B	 	Note	 	B-1
	C	 	Compliance Certificate	 	C-1
	D	 	Assignment and Assumption	 	D-1
	E	 	Guaranty	 	E-1
	F	 	Borrower's Counsel Opinion	 	F-1
	G	 	No Default Certificate	 	G-1

v

 
 

CREDIT AGREEMENT    
    

        This CREDIT AGREEMENT ("Agreement") is entered into as of August 14, 2002, among NEUSTAR, INC., a
Delaware corporation (the "Borrower"), each lender from time to time party hereto (collectively, the
"Lenders" and individually, a "Lender"), and BANK OF AMERICA, N.A., as Administrative Agent, Lender and
L/C Issuer. 

        The
Borrower has requested that the Lenders provide a revolving credit facility, and the Lenders are willing to do so on the terms and conditions set forth herein. 

        In
consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows: 

 
 

ARTICLE I.
  DEFINITIONS AND ACCOUNTING TERMS    
    

        1.01    Defined Terms.    As used in this Agreement, the following terms shall have the meanings set forth below: 

        "Administrative Agent" means Bank of America in its capacity as administrative agent under any of the Loan Documents, or any successor
administrative agent. 

        "Administrative Agent's Office" means the Administrative Agent's address and, as appropriate, account as set forth on  Schedule 11.02, or such other address or
account as the Administrative Agent may from time to time notify the Borrower and the Lenders. 

        "Administrative Questionnaire" means an Administrative Questionnaire in a form supplied by the Administrative Agent. 

        "Affiliate" means, with respect to any Person, another Person that directly, or indirectly through one or more intermediaries, Controls or
is Controlled by or is under common Control with the Person specified. "Control" means the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ability to exercise voting power, by contract or otherwise.
"Controlling" and "Controlled" have meanings correlative thereto. Without limiting the generality of the
foregoing, a Person shall be deemed to be Controlled by another Person if such other Person possesses, directly or indirectly, power to vote 25% or more of the securities having ordinary voting power
for the election of directors, managing general partners or the equivalent. 

        "Agent-Related Persons" means the Administrative Agent, together with its Affiliates (including, in the case of Bank of America in its
capacity as the Administrative Agent, the Arranger), and the officers, directors, employees, agents and attorneys-in-fact of such Persons and Affiliates. 

        "Aggregate Commitments" means the Commitments of all the Lenders. 

        "Agreement" means this Credit Agreement. 

        "Applicable Rate" means, 

        (A)  until
receipt by the Administrative Agent pursuant to Section 7.01(a) of audited consolidated financial statements
for the Borrower and its Subsidiaries evidencing compliance with Section 8.11 through December 31, 2002, (i) with respect to Base
Rate Loans, 2.00%, (ii) with respect to Eurodollar Rate Loans and LIBOR Floating Rate Loans, 3.75% and (iii) with respect to the commitment fee referred to in  Section 2.08(a), 1.00%;

        (B)  after
receipt by the Administrative Agent of the financial statements referred to in (A) above, but prior to receipt by the Administrative Agent pursuant to  Section 7.01(b) of the consolidated
financial statements for the Borrower and its Subsidiaries evidencing compliance with  Section 8.11 through June 30, 2003, (a) with respect to Base Rate Loans, 1.75%, (b) with respect
to Eurodollar Rate Loans
and LIBOR Floating Rate Loans, 3.50% and (c) with respect to the commitment fee referred to in Section 2.08(a), 0.75%; 

 

        (C)  after
receipt by the Administrative Agent of the financial statements evidencing compliance referred to in (B) above, the following percentages per annum, based
upon the Consolidated Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to  Section 7.02(b): 

 
 

Applicable Rate    
    

	Pricing

Level
	 	Consolidated

Leverage Ratio
	 	Commitment

Fee
	 	Eurodollar

Rate, LIBOR Daily

Floating Rate and

Letter of Credit Fee
	 	Base Rate
	 
	1	 	£1.00:1	 	.375	%	2.00	%	.250	%
	2	 	>1.00:1 but £1.50:1	 	.500	%	2.50	%	.750	%
	3	 	>1.50:1 but £2.00:1	 	.500	%	2.75	%	1.00	%
	4	 	>2.00:1	 	.625	%	3.00	%	1.25	%

Any
increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the third Business Day immediately following the date a
Compliance Certificate is received by the Administrative Agent pursuant to Section 7.02(b); provided,  however, that if a Compliance Certificate is not
received by the Administrative Agent when due in accordance with such Section, then pricing level 4
shall apply as of the third Business Day after the date on which such Compliance Certificate was required to have been delivered to the Administrative Agent until such Compliance Certificate is
delivered. 

        "Arranger" means Bank of America, in its capacity as sole lead arranger and sole book manager. 

        "Assignment and Assumption" means an Assignment and Assumption substantially in the form of  Exhibit D. 

        "Attorney Costs" means and includes all reasonable fees, expenses and disbursements of any law firm or other external counsel and, without
duplication, the reasonable allocated cost of internal legal services to the extent internal counsel has been utilized and all out-of-pocket expenses and disbursements of
internal counsel paid to third parties in connection with this Agreement. 

        "Attributable Indebtedness" means, on any date, (a) in respect of any capital lease of any Person, the capitalized amount thereof
that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease Obligation, the capitalized amount of the
remaining lease payments under the relevant lease that would appear on a balance sheet of such Person prepared as of such date in accordance with GAAP if such lease were accounted for as a capital
lease. 

        "Audited Financial Statements" means the audited consolidated balance sheet of the Borrower and its Subsidiaries for the fiscal year ended
December 31, 2001, and the related consolidated statements of income or operations, shareholders' equity and cash flows for such fiscal year of the Borrower and its Subsidiaries, including the
notes thereto. 

        "Availability Period" means the period from and including the Closing Date to the earliest of (a) the Maturity Date, (b) the
date of termination of the Aggregate Commitments pursuant to Section 2.05, and
(c) the date of termination of the commitment of each Lender to make Loans and of the obligation of the L/C Issuer to make L/C Credit Extensions pursuant to  Section 9.02. 

        "Available Amount" means 

        (A)  until
the Administrative Agent receives (i) the financial statements required pursuant to Section 7.01(b)
and Section 7.02(b) and a Compliance Certificate evidencing compliance with 

2

 

 Section 8.11 as of and through September 30, 2002, and (ii) a copy of the notice by the Borrower to North American Portability Management, LLC, with proof
of mailing, as to the increase in the Available Amount pursuant to (B) below, $10,000,000; and 

        (B)  after
receipt by the Administrative Agent of the items referred to in (A) above, but before the Administrative Agent receives (i) a Compliance Certificate,
pursuant to Section 7.02(b), evidencing compliance with Section 8.11 as of and through
December 31, 2002, and (ii) a copy of the notice by the Borrower to North American Portability Management, LLC, with proof of mailing, as to the increase in the Available Amount pursuant
to (C) below, $20,000,000; and 

        (C)  thereafter,
the Aggregate Commitments. 

        "Bank of America" means Bank of America, N.A. and its successors. 

        "Base Rate" means for any day a fluctuating rate per annum equal to the higher of (a) the Federal Funds Rate plus
1/2 of 1% and (b) the rate of interest in effect for such day as publicly announced from time to time by Bank of America as its "prime rate." The "prime rate" is a rate set by
Bank of America based upon various factors including Bank of America's costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans,
which may be priced at, above, or below such announced rate. Any change in such rate announced by Bank of America shall take effect at the opening of business on the day specified in the public
announcement of such change. 

        "Base Rate Loan" means a Loan that bears interest based on the Base Rate. 

        "Borrower" has the meaning specified in the introductory paragraph hereto. 

        "Borrowing" means a borrowing consisting of simultaneous Loans of the same Type and, in the case of Eurodollar Rate Loans, having the same
Interest Period made by each of the Lenders pursuant to Section 2.01. 

        "Business Day" means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the Laws
of, or are in fact closed in, Washington, D.C. or the state where the Administrative Agent's Office is located and, if such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the London interbank eurodollar market. 

        "Cash Collateralize" has the meaning specified in Section 2.03(g). 

        "Change of Control" means, with respect to any Person, an event or series of events by which: 

        (a)   any
"person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, but excluding any employee benefit plan of such
person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the "beneficial owner" (as defined in
Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have "beneficial ownership" of all securities that such
person or group has the right to acquire (such right, an "option right"), whether such right is exercisable immediately or only after the passage of
time), directly or indirectly, of 25% or more of the equity securities of such Person entitled to vote for members of the board of directors or equivalent governing body of such Person on a
fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right); or 

        (b)   during
any period of 24 consecutive months, a majority of the members of the board of directors or other equivalent governing body of such Person cease to be composed of
individuals (i) who were members of that board or equivalent governing body on the first day of such period, (ii) whose election or nomination to that board or equivalent governing body
was approved by 

3

 

individuals
referred to in clause (i) above constituting at the time of such election or nomination at least a majority of that board or equivalent governing body or (iii) whose election
or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (i) and (ii) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body (excluding, in the case of both clause (ii) and clause (iii), any individual whose initial nomination for, or
assumption of office as, a member of that board or equivalent governing body occurs as a result of an actual or threatened solicitation of proxies or consents for the election or removal of one or
more directors by any person or group other than a solicitation for the election of one or more directors by or on behalf of the board of directors). 

        "Closing Date" means the first date all the conditions precedent in Section 5.01
are satisfied or waived in accordance with Section 5.01 (or, in the case of  Section 5.01(b), waived by the Person entitled to receive the
applicable payment). 

        "Code" means the Internal Revenue Code of 1986. 

        "Collateral" means, collectively, all property of the Borrower, any Subsidiary or any other Person in which the Administrative Agent or
any Lender is granted a Lien under any Security Instrument as security for all or any portion of the Obligations or any other obligation arising under any Loan Document;  provided, however, that Collateral shall not include (i) any SOW Receivables, as defined in the
DB Loan Agreement, or the Financed SOW Receivables Tracking Certificate, as defined in the Master Trust Agreement, or any proceeds thereof, (ii) any other items of collateral pledged to
Deutsche Bank AG, New York Branch, as administrative agent under the DB Loan Agreement and (iii) leasehold interests. 

        "Commitment" means, as to each Lender, its obligation to (a) make Loans to the Borrower pursuant to  Section 2.01, and (b) purchase participations in L/C
Obligations in an aggregate principal amount at any one time outstanding not to
exceed the amount set forth opposite such Lender's name on Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender
becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement. 

        "Compliance Certificate" means a certificate substantially in the form of  Exhibit C. 

        "Consolidated EBITDA" means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, an amount equal to
Consolidated Net Income for such period plus (a) the following to the extent deducted in calculating such Consolidated Net Income:
(i) Consolidated Interest Charges for such period, (ii) the provision for federal, state, local and foreign income taxes payable by the Borrower and its Subsidiaries for such period,
(iii) the amount of depreciation and amortization expense deducted in determining such Consolidated Net Income and (iv) other expenses of the Borrower and its Subsidiaries reducing such
Consolidated Net Income which do not represent a cash item in such period or any future period and (v) for the fiscal quarter ending September 30, 2002, restructuring costs actually
incurred and not included in any reserve by the Borrower or its Subsidiaries in connection with the termination and relocation of employees in connection with the closure of certain offices of the
Borrower or its Subsidiaries in Washington, D.C. and Chicago, Illinois in an aggregate amount not to exceed $600,000, and minus (b) (i) all
non-cash items, including but not limited to amortization of the NANPA Contract Reserve, increasing Consolidated Net Income for such period, and (ii) net lease expenses related to
the Washington D.C. and Chicago, Illinois offices which is charged against the restructuring reserve. 

        "Consolidated Funded Indebtedness" means, as of any date of determination, for the Borrower and its Subsidiaries on a consolidated basis,
the sum of (a) the outstanding principal amount of all obligations, whether current or long-term, for borrowed money (including Obligations hereunder) and 

4

 

all
obligations evidenced by bonds, debentures, notes, loan agreements or other similar instruments, (b) all purchase money Indebtedness, (c) all direct obligations arising under letters
of credit (including standby and commercial), bankers' acceptances, bank guaranties, surety bonds and similar instruments, (d) all obligations in respect of the deferred purchase price of
property or services (other than trade accounts payable in the ordinary course of business), (e) Attributable Indebtedness in respect of capital leases and Synthetic Lease Obligations,
(f) without duplication, all Guarantees with respect to outstanding Indebtedness of the types specified in clauses (a) through (e) above of Persons other than the Borrower or any
Subsidiary, and (g) all Indebtedness of the types referred to in clauses (a) through (f) above of any partnership or joint venture (other than a joint venture that is itself a
corporation or limited liability company) in which the Borrower or a Subsidiary is a general partner, unless such Indebtedness is expressly made non-recourse to the Borrower or such
Subsidiary; provided, however, in no event shall Consolidated Funded Indebtedness include any amounts
incurred pursuant to the SOW Receivables Securitization. 

        "Consolidated Interest Charges" means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, the sum of
(a) all interest, premium payments, debt discount, fees, charges and related expenses of the Borrower and its Subsidiaries in connection with borrowed money (including capitalized interest) or
in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP, (b) the portion of rent expense of the Borrower and its
Subsidiaries with respect to such period under capital leases that is treated as interest in accordance with GAAP, and (c) that amount paid with respect to any Off-Balance Sheet
Liabilities (other than the SOW Receivables Securitization) of the Borrower or any Subsidiary that is the functional equivalent of interest. 

        "Consolidated Leverage Ratio" means, as of any date of determination, the ratio of (a) Consolidated Funded Indebtedness as of such
date to (b) Consolidated EBITDA for the period of the four consecutive fiscal quarters most recently ended for which the Borrower has delivered
financial statements pursuant to Section 7.01(a) or (b). 

        "Consolidated Net Income" means, for any period, for the Borrower and its Subsidiaries on a consolidated basis, the net income of the
Borrower and its Subsidiaries (excluding extraordinary gains but including extraordinary losses) for that period. 

        "Consolidated Net Worth" means, as of any date of determination, for the Borrower and its Subsidiaries on a consolidated basis,
Shareholders' Equity of the Borrower and its Subsidiaries on that date. 

        "Contractual Obligation" means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or
other undertaking to which such Person is a party or by which it or any of its property is bound. 

        "Control" has the meaning specified in the definition of "Affiliate." 

        "Credit Extension" means each of the following: (a) a Borrowing and (b) an L/C Credit Extension. 

        "DB Guaranty" means the Guaranty dated as of November 2, 2001 by the Borrower in favor of Deutsche Bank AG, New York Branch, as in
effect on the Closing Date. 

        "DB Loan Agreement" means the Loan Agreement, dated as of November 2, 2001, by and among NeuStar Funding, as borrower thereunder,
Deutsche Bank AG, New York Branch, as administrative agent, and the lenders party thereto, as in effect on the Closing Date. 

        "Debtor Relief Laws" means the Bankruptcy Code of the United States, and all other liquidation, conservatorship, bankruptcy, assignment
for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable jurisdictions from time to
time in effect and affecting the rights of creditors generally. 

5

 

        "Default" means any event or condition that constitutes an Event of Default or that, with the giving of any notice, the passage of time,
or both, would be an Event of Default. 

        "Default Rate" means an interest rate equal to (a) the Base Rate plus
(b) the Applicable Rate, if any, applicable to Base Rate Loans plus (c) 2% per annum;  provided, however, that with respect to a Eurodollar Rate Loan or a LIBOR Floating Rate Loan, the
Default Rate shall be an interest rate equal to the interest rate (including any Applicable Rate) otherwise applicable to such Loan plus 2% per annum, in each case to the fullest extent permitted by
applicable Laws. 

        "Defaulting Lender" means any Lender that (a) has failed to fund any portion of the Loans or participations in L/C Obligations
required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder, (b) has otherwise failed to pay over to the Administrative Agent or any other
Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, unless the subject of a good faith dispute, or (c) has been deemed insolvent or become
the subject of a bankruptcy or insolvency proceeding. 

        "Direct Foreign Subsidiary" means a Subsidiary other than a Domestic Subsidiary a majority of whose Voting Securities, or a majority of
whose Subsidiary Securities, are owned by the Borrower or a Domestic Subsidiary. 

        "Disposition" or "Dispose" means the sale, transfer, license, lease or other disposition
(including any sale and leaseback transaction) of any property by any Person, including any sale, assignment, transfer or other disposal, with or without recourse, of any notes or accounts receivable
or any rights and claims associated therewith. 

        "Dollar" and "$" mean lawful money of the United States. 

        "Domestic Subsidiary" means any Subsidiary that is organized under the laws of any political subdivision of the United States. 

        "Eligible Assignee" has the meaning specified in Section 11.07(g). 

        "Environmental Laws" means any and all Federal, state, local, and foreign statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements or governmental restrictions relating to pollution and the protection of the environment or the release of any materials
into the environment, including those related to hazardous substances or wastes, air emissions and discharges to waste or public systems. 

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

        "ERISA Affiliate" means any trade or business (whether or not incorporated) under common control with the Borrower within the meaning of
Section 414(b) or (c) of the Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code). 

        "ERISA Event" means (a) a Reportable Event with respect to a Pension Plan; (b) a withdrawal by the Borrower or any ERISA
Affiliate from a Pension Plan subject to Section 4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) a complete or partial withdrawal by the Borrower or any ERISA Affiliate from a Multiemployer Plan or
notification that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate, the treatment of a Plan amendment as a termination under Sections 4041 or 4041A
of ERISA, or the commencement of proceedings by the PBGC to terminate a Pension Plan or Multiemployer Plan; (e) an event or condition which constitutes grounds under Section 4042 of
ERISA for the termination of, or the appointment of a trustee to administer, any Pension Plan or Multiemployer Plan; or (f) the imposition of any liability under Title IV of ERISA, other than
for 

6

 

PBGC
premiums due but not delinquent under Section 4007 of ERISA, upon the Borrower or any ERISA Affiliate. 

        "Eurodollar Base Rate" has the meaning set forth in the definition of Eurodollar Rate. 

        "Eurodollar Rate" means for any Interest Period with respect to any Eurodollar Rate Loan, a rate per annum determined by the
Administrative Agent pursuant to the following formula: 

	Eurodollar Rate	 	=	 	Eurodollar Base Rate
 1.00-Eurodollar Reserve Percentage

        Where,

        "Eurodollar Base Rate" means, for such Interest Period: 

        (a)   the
rate per annum equal to the rate determined by the Administrative Agent to be the offered rate that appears on the page of the Telerate screen (or any successor
thereto) that displays an average British Bankers Association Interest Settlement Rate for deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such
Interest Period, determined as of approximately 11:00 a.m. (London time) two Business Days prior to the first day of such Interest Period, or 

        (b)   if
the rate referenced in the preceding clause (a) does not appear on such page or service or such page or service shall not be available, the rate per annum
equal to the rate determined by the Administrative Agent to be the offered rate on such other page or other service that displays an average British Bankers Association Interest Settlement Rate for
deposits in Dollars (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) two Business
Days prior to the first day of such Interest Period, or 

        (c)   if
the rates referenced in the preceding clauses (a) and (b) are not available, the rate per annum determined by the Administrative Agent as the rate of
interest at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Loan being made, continued or converted
by Bank of America and with a term equivalent to such Interest Period would be offered by Bank of America's London Branch to major banks in the London interbank eurodollar market at their request at
approximately 4:00 p.m. (London time) two Business Days prior to the first day of such Interest Period. 

        "Eurodollar Reserve Percentage" means, for any day during any Interest Period, the reserve percentage (expressed as a decimal, carried out
to five decimal places) in effect on such day, whether or not applicable to any Lender, under regulations issued from time to time by the FRB for determining the maximum reserve requirement (including
any emergency, supplemental or other marginal reserve requirement) with respect to Eurocurrency funding (currently referred to as "Eurocurrency liabilities"). The Eurodollar Rate for each outstanding
Eurodollar Rate Loan shall be adjusted automatically as of the effective date of any change in the Eurodollar Reserve Percentage. 

        "Eurodollar Rate Loan" means a Loan that bears interest at a rate based on the Eurodollar Rate. 

        "Event of Default" has the meaning specified in Section 9.01. 

        "Existing Credit Agreement" means that certain Loan and Security Agreement dated as of March 19, 2001, as amended, between the
Borrower and Wachovia Bank, N.A. 

        "Federal Funds Rate" means, for any day, the rate per annum equal to the weighted average of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal funds brokers on such day, as published by the Federal Reserve Bank on the Business Day next 

7

 

succeeding
such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate on such
transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal
Funds Rate for such day shall be the average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%) charged to Bank of America on such day on such transactions as
determined by the Administrative Agent. 

        "Fee Letter" means the letter agreement, dated June 20, 2002, among the Borrower, the Administrative Agent and the Arranger. 

        "Foreign Lender" has the meaning specified in Section 11.15(a)(i). 

        "FRB" means the Board of Governors of the Federal Reserve System of the United States. 

        "GAAP" means generally accepted accounting principles in the United States set forth in the opinions and pronouncements of the Accounting
Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or such other principles as may be approved by
a significant segment of the accounting profession in the United States, that are applicable to the circumstances as of the date of determination, consistently applied. 

        "Governmental Authority" means any nation or government, any state or other political subdivision thereof, any agency, authority,
instrumentality, regulatory body, court, administrative tribunal, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions of
or pertaining to government. 

        "Grantor" has the meaning specified in Section 4.03(a). 

        "Guarantors" means, collectively, each Domestic Subsidiary now or hereafter existing (excluding NeuStar Funding and NeuLevel), which has
executed a Guaranty as required by Section 5.01(a)(i) or 7.12. 

        "Guarantee" means, as to any Person, (a) any obligation, contingent or otherwise, of such Person guaranteeing or having the
economic effect of guaranteeing any Indebtedness payable by another Person (the "primary obligor") in any manner, whether directly or indirectly, and including any obligation of such Person, direct or
indirect, (i) to purchase or pay (or advance or supply funds for the purchase or payment of) such Indebtedness or other obligation, (ii) to purchase or lease property, securities or
services for the purpose of assuring the obligee in respect of such Indebtedness or the payment of such Indebtedness, (iii) to maintain working capital, equity capital or any other financial
statement condition or liquidity or level of income or cash flow of the primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation, or (iv) entered into
for the purpose of assuring in any other manner the obligee in respect of such Indebtedness or the payment thereof or to protect such obligee against loss in respect thereof (in whole or in part), or
(b) any Lien on any assets of such Person securing any Indebtedness of any other Person, whether or not such Indebtedness is assumed by such Person. The amount of any Guarantee shall be deemed
to be an amount equal to the stated or determinable amount of the related primary obligation, or portion thereof, in respect of which such Guarantee is made or, if not stated or determinable, the
maximum reasonably anticipated liability in respect thereof as determined by the guaranteeing Person in good faith. The term "Guarantee" as a verb has a corresponding meaning. 

        "Guaranty" means the Guaranty made by the Guarantors in favor of the Administrative Agent on behalf of the Lenders, substantially in the
form of Exhibit E, as supplemented from time to time by the execution and delivery of a Guaranty Joinder Agreement, and as otherwise amended,
modified, supplemented or amended and restated from time to time. 

8

 

        "Guaranty Joinder Agreement" means each Guaranty Joinder Agreement, substantially in the form thereof attached to the Guaranty, executed
and delivered by a Guarantor to the Administrative Agent pursuant to Section 7.12, as amended, modified, supplemented or amended and restated. 

        "Indebtedness" means, as to any Person at a particular time, without duplication, all of the following, whether or not included as
indebtedness or liabilities in accordance with GAAP: 

        (a)   all
obligations of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes, loan agreements or other similar instruments; 

        (b)   all
direct or contingent obligations of such Person arising under letters of credit (including standby and commercial), bankers' acceptances, bank guaranties, surety
bonds and similar instruments; 

        (c)   net
obligations of such Person under any Swap Contract; 

        (d)   all
obligations of such Person to pay the deferred purchase price of property or services (other than trade accounts payable in the ordinary course of business); 

        (e)   indebtedness
(excluding prepaid interest thereon) secured by a Lien on property owned or being purchased by such Person (including indebtedness arising under conditional
sales or other title retention agreements), whether or not such indebtedness shall have been assumed by such Person or is limited in recourse; 

        (f)    capital
leases and Synthetic Lease Obligations; 

        (g)   Off-Balance
Sheet Liabilities (other than the SOW Receivables Securitization); and 

        (h)   all
Guarantees of such Person in respect of any of the foregoing. 

        For
all purposes hereof, the Indebtedness of any Person shall include the Indebtedness of any partnership or joint venture (other than a joint venture that is itself a corporation or
limited liability company) in which such Person is a general partner or a joint venturer, unless such Indebtedness is expressly made non-recourse to such Person. The amount of any net
obligation under any Swap Contract on any date shall be deemed to be the Swap Termination Value thereof as of such date. The amount of any capital lease or Synthetic Lease Obligation as of any date
shall be deemed to be the amount of Attributable Indebtedness in respect thereof as of such date. 

        "Indemnified Liabilities" has the meaning set forth in Section 11.05. 

        "Indemnitees" has the meaning set forth in Section 11.05. 

        "Information" has the meaning set forth in Section 11.08. 

        "Intercreditor Agreement" means that certain Intercreditor Agreement of even date herewith by and among the Borrower, NeuStar Funding, the
Administrative Agent, on behalf of the Lenders, and Deutsche Bank AG, New York Branch, in its capacity as administrative agent under the DB Loan Agreement, and NeuStar Master Trust, relating to, among
other things, the respective rights of the Lenders and the lenders party to the DB Loan Agreement in and to the LNP Receivables and the SOW Receivables, respectively. 

        "Interest Payment Date" means, (a) as to any Eurodollar Rate Loan, the last day of each Interest Period applicable to such Loan and
the Maturity Date; and (b) as to any Base Rate Loan, or LIBOR Floating Rate Loan, the last Business Day of each March, June, September and December and the Maturity Date. 

        "Interest Period" means, as to each Eurodollar Rate Loan, the period commencing on the date such Eurodollar Rate Loan is disbursed or
converted to or continued as a Eurodollar Rate Loan and 

9

 

ending
on the date one or three months thereafter, as selected by the Borrower in its Loan Notice; provided that: 

          (i)  any
Interest Period that would otherwise end on a day that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in
another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 

         (ii)  any
Interest Period that begins on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at
the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and 

        (iii)  no
Interest Period shall extend beyond the Maturity Date. 

        "Investment" means, as to any Person, any direct or indirect acquisition or investment by such Person, whether by means of (a) the
purchase or other acquisition of capital stock or other securities of another Person, (b) a loan, advance or capital contribution to, Guarantee or assumption of debt of, or purchase or other
acquisition of any other debt or equity participation or interest in, another Person, including any partnership or joint venture interest in such other Person, or (c) the purchase or other
acquisition
(in one transaction or a series of transactions) of assets of another Person that constitute a business unit. For purposes of covenant compliance, the amount of any Investment shall be the amount
actually invested, without adjustment for subsequent increases or decreases in the value of such Investment. 

        "IP Rights" has the meaning set forth in Section 6.17. 

        "IRS" means the United States Internal Revenue Service. 

        "Joinder Agreements" means, collectively, Guaranty Joinder Agreements, the Pledge Joinder Agreements and the Security Joinder Agreements. 

        "Laws" means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations,
ordinances, codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative orders, directed duties, requests, licenses, authorizations and permits of, and agreements with, any Governmental Authority,
in each case whether or not having the force of law. 

        "L/C Advance" means, with respect to each Lender, such Lender's funding of its participation in any L/C Borrowing in accordance with its
Pro Rata Share. 

        "L/C Borrowing" means an extension of credit resulting from a drawing under any Letter of Credit which has not been reimbursed on the date
when made or refinanced as a Borrowing. 

        "L/C Credit Extension" means, with respect to any Letter of Credit, the issuance thereof or extension of the expiry date thereof, or the
renewal or increase of the amount thereof. 

        "L/C Issuer" means Bank of America in its capacity as issuer of Letters of Credit hereunder, or any successor issuer of Letters of Credit
hereunder. 

        "L/C Obligations" means, as at any date of determination, the aggregate undrawn amount of all outstanding Letters of Credit plus the
aggregate of all Unreimbursed Amounts, including all L/C Borrowings. 

        "Lender" has the meaning specified in the introductory paragraph hereto and, as the context requires, includes the L/C Issuer. 

10

 

        "Lending Office" means, as to any Lender, the office or offices of such Lender described as such in such Lender's Administrative
Questionnaire, or such other office or offices as a Lender may from time to time notify the Borrower and the Administrative Agent. 

        "Letter of Credit" means any standby letter of credit issued hereunder. 

        "Letter of Credit Application" means an application and agreement for the issuance or amendment of a Letter of Credit in the form from
time to time in use by the L/C Issuer. 

        "Letter of Credit Expiration Date" means the day that is six months after the Maturity Date then in effect (or, if such day is not a
Business Day, the next preceding Business Day). 

        "Letter of Credit Sublimit" means an amount equal to $10,000,000. The Letter of Credit Sublimit is part of, and not in addition to, the
Aggregate Commitments. 

        "LIBOR Daily Floating Rate" means the fluctuating rate of interest (rounded upwards, if necessary to the nearest 1/100 of
1%) appearing on Telerate page 3750 (or any successor page) as the 1 month London interbank offered rate for deposits in United States Dollars at approximately 11:00 a.m. (London time)
on the second preceding Business Day, as adjusted from time to time in the Administrative Agent's sole discretion for then-applicable reserve requirements, deposit insurance assessment
rates and other regulatory costs (the "Index"). If for any reason such rate is not available, the term "LIBOR Daily Floating Rate" shall mean the fluctuating rate of interest equal to the rate of
interest (rounded upwards, if necessary to the nearest 1/100 of 1%) appearing on Reuters Screen LIBO Page as the 1 month London interbank offered rate for deposits in United
States Dollars at approximately 11:00 a.m. (London time) on the second preceding Business Day, as adjusted from time to time in the Administrative Agent's sole discretion for
then-applicable reserve requirements, deposit insurance assessment rate and other regulatory costs; provided,  however, if more than one rate is specified
on Reuters Screen LIBO page, the applicable rate shall be the arithmetic mean of all such rates. Any change
in the rate will take effect on the date of such change in the Index as indicated on Telerate Page 3750. Interest will accrue on any non-banking day at the rate in effect on the
immediately preceding banking day. 

        "LIBOR Floating Rate Loan" means a Loan that bears interest at a rate based on the LIBOR Daily Floating Rate. 

        "Lien" means any mortgage, pledge, hypothecation, assignment, deposit arrangement, encumbrance, lien (statutory or other), charge, or
preference, priority or other security interest or preferential arrangement of any kind or nature whatsoever (including any conditional sale or other title retention agreement, and any financing lease
having substantially the same economic effect as any of the foregoing). 

        "Liquid Assets" means (i) cash, (ii) demand deposits or interest-bearing time and eurodollar deposits, certificates of
deposit or similar banking arrangements with banks which have capital and surplus of not less than $250,000,000; (iii) direct obligations of the United States of America in the form of United
States Treasury obligations or any governmental agency or instrumentality whose obligations constitute full faith and credit obligations of the United States of America, which have maturities of
10 years or less; (iv) commercial paper rated P-2 or higher by Moody's or A-2 or higher by S&P; (v) bonds and other fixed income instruments (including
tax-exempt bonds) rated investment grade from companies or public entities, and mutual funds that invest substantially all of their assets in such bonds and other fixed income instruments,
either owned directly by the Borrower or managed on the Borrower's behalf by any nationally recognized investment advisor who or which has assets under management in excess of $250,000,000;
(vi) repurchase agreements or similar arrangements with banks which have capital and surplus of not less than $250,000,000; and (vii) mutual funds or money market funds that invest
substantially all of their assets in instruments described in the subsections above; 

11

 

 provided, however, that none of the items in clauses (i) through (vii) shall be subject to any Liens other than
those incurred under the Loan Documents. 

        "LNP Contract" means, collectively, those certain agreements for Number Portability Administration Center/Service Management System
between the Borrower, as successor in interest to Lockheed Martin IMS Corporation, and North American Portability Management LLC on behalf of each of Northeast Carrier Acquisition Contractor, LLC;
Mid-Atlantic Carrier Acquisition Company, LLC; LNP, LLC; Southwest Region Portability Company, LLC; Southeast Number Portability Administration Company, LLC; Western Region Telephone
Number Portability, LLC; and West Coast Portability Services, LLC. 

        "LNP Receivables" means all other amounts due under the LNP Contract that are not SOW Receivables but does not include
Non-Recurring Items (as defined in the DB Loan Agreement). 

        "LNP Receivables Tracking Certificate" means the certificate representing a beneficial interest in the NeuStar Master Trust and the right
to receive any amounts available for distribution in connection with the LNP Receivables. 

        "Loan" has the meaning specified in Section 2.01. 

        "Loan Document(s)" means this Agreement, each Note, the Fee Letter, the Guaranty (including the Guaranty Joinder Agreements), the Security
Instruments and the Intercreditor Agreement. 

        "Loan Notice" means a notice of (a) a Borrowing, (b) a conversion of Loans from one Type to the other, or (c) a
continuation of Eurodollar Rate Loans, pursuant to Section 2.02(a), which, if in writing, shall be substantially in the form of  Exhibit A.

        "Loan Parties" means, collectively, the Borrower and each Guarantor. 

        "Lockbox Account Agreement" means that certain Lockbox Agreement of even date herewith by and between the Administrative Agent and the
Borrower establishing the restricted account at Bank of America into which all payments under the LNP Receivables Tracking Certificate shall be required to be deposited. 

        "Lockheed Note" means the $17,000,000 promissory note of the Borrower in favor of Lockheed Martin IMS Corporation dated December 1,
1999. 

        "Master Trust Agreement" means that certain trust agreement dated as of November 2, 2001, by and among NeuStar Funding, The Bank of
New York, as trustee, and The Bank of New York (Delaware), as Delaware Trustee. 

        "Material Adverse Effect" means (a) a material adverse change in, or a material adverse effect upon, the operations, business,
properties, liabilities (actual or contingent), or condition (financial or otherwise) of the Borrower and its Subsidiaries taken as a whole; (b) a material impairment of the ability of any Loan
Party to perform its obligations under any Loan Document to which it is a party; or (c) a material adverse effect upon the legality, validity, binding effect or enforceability against any Loan
Party of any Loan Document to which it is a party. 

        "Maturity Date" means the later of (a) August 15, 2003 and (b) if maturity is extended pursuant to  Section 2.13, such extended maturity date as
determined pursuant to such Section. 

        "Maximum Rate" has the meaning set forth in Section 11.10. 

        "Moody's" means Moody's Investors Service, Inc. and any successor thereto. 

12

  

        "Multiemployer Plan" means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which the Borrower or
any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated to make contributions. 

        "Net Cash Proceeds" means: 

        (a)   with
respect to the sale of any asset by the Borrower or any Subsidiary, the excess, if any, of (i) the sum of cash and cash equivalents received in connection
with such sale (including any cash received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of
(A) the principal amount of any Indebtedness that is secured by such asset and that is required to be repaid in connection with the sale thereof (other than Indebtedness under the Loan
Documents), (B) the out-of-pocket fees, commissions and expenses incurred by the Borrower or any Subsidiary in connection with such sale and (C) income taxes
reasonably estimated to be actually payable within two years of the date of the relevant asset sale as a result of any gain recognized in connection therewith;  provided, however, that with respect to the sale of any asset by NeuLevel, the calculation of Net Cash
Proceeds received with respect thereto shall be equal to a percentage of the amount otherwise determined as set forth above equal to that percentage of the total fully adjusted equity ownership
interest in NeuLevel which is owned by the Borrower and its Subsidiaries collectively; and 

        (b)   with
respect to the issuance of Indebtedness by the Borrower or any Subsidiary, the amount of cash received, as and when received, net of all
out-of-pocket expenses incurred by the Borrower or such Subsidiary in connection with such issuance. 

        "NeuLevel" means NeuLevel, Inc., a Delaware corporation and Subsidiary of the Borrower, in which a minority shareholder owns
beneficially and of record not more than 10% of the fully adjusted equity ownership interests. 

        "NeuLevel Stockholders' Agreement" means that certain Stockholders' Agreement dated as of April 27, 2001 by and among the Borrower,
Melbourne IT Limited and NeuLevel. 

        "NeuStar Funding" means NeuStar Funding, LLC, a Delaware limited liability company and Subsidiary of the Borrower. 

        "NeuStar Master Trust" means that certain trust established pursuant to the Master Trust Agreement. 

        "NeuStar Stockholders' Agreement" means that certain Amended and Restated Stockholders Agreement dated as of June 5, 2001 by and
among the Warburg Entities, as defined and named therein, Lockheed Martin Investments, Inc., Universal Telecommunications Inc., DB Capital Investors, L.P., ABS Capital Partners
IV-A, L.P., ABS Capital Partners IV Special Offshore, L.P., the Management Investors, as defined and named therein, the Borrower and the Trustees, as defined and named therein. 

        "Note" means a promissory note made by the Borrower in favor of a Lender evidencing Loans made by such Lender, substantially in the form
of Exhibit B. 

        "Numbering Line of Business" means the line of business of the Borrower conducted thereby pursuant to the terms of and the authorization
granted thereto under the LNP Contract and activities related to North America Numbering Plan Administration and National Pooling Administration. 

        "Obligations" means all advances to, and debts, liabilities, obligations, covenants and duties of, any Loan Party arising (i) under
any Loan Document or otherwise with respect to any Loan or Letter of Credit, and (ii) under any Swap Contract relating to the Indebtedness hereunder between such Loan Party and any Lender or an
Affiliate thereof, whether direct or indirect (including those acquired by assumption), absolute or contingent, due or to become due, now existing or hereafter arising and including interest and fees
that accrue after the commencement by or against any Loan Party or any 

13

 

Affiliate
thereof of any proceeding under any Debtor Relief Laws naming such Person as the debtor in such proceeding, regardless of whether such interest and fees are allowed claims in such
proceeding. 

        "Off-Balance Sheet Liabilities" means, with respect to any Person as of any date of determination thereof, without duplication
and to the extent not included as a liability on the consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP: (a) with respect to any asset securitization
transaction (i) the unrecovered investment of purchasers or transferees of assets so transferred, and (ii) any other payment, recourse, repurchase, hold harmless, indemnity or similar
obligation of such Person or any of its Subsidiaries in respect of assets transferred or payments made in respect thereof, other than limited recourse provisions that are customary for transactions of
such type and that neither (x) have the effect of limiting the loss or credit risk of such purchasers or transferees with respect to payment or performance by the obligors of the assets so
transferred nor (y) impair the characterization of the transaction as a true sale under applicable Laws (including Debtor Relief Laws); (b) the monetary obligations under any financing
lease or so-called "synthetic," tax retention or off-balance sheet lease transaction which, upon the application of any Debtor Relief Law to such Person or any of its
Subsidiaries, would be characterized as indebtedness; (c) the monetary obligations under any sale and leaseback transaction
which does not create a liability on the consolidated balance sheet of such Person and its Subsidiaries; or (d) any other monetary obligation arising with respect to any other transaction which
(i) upon the application of any Debtor Relief Law to such Person or any of its Subsidiaries, would be characterized as indebtedness or (ii) is the functional equivalent of or takes the
place of borrowing but which does not constitute a liability on the consolidated balance sheet of such Person and its Subsidiaries (for purposes of this clause (d), any transaction structured
to provide tax deductibility as interest expense of any dividend, coupon or other periodic payment will be deemed to be the functional equivalent of a borrowing). 

        "Organization Documents" means, (a) with respect to any corporation, the certificate or articles of incorporation and the bylaws
(or equivalent or comparable constitutive documents with respect to any non-U.S. jurisdiction); (b) with respect to any limited liability company, the certificate or articles of
formation or organization and operating agreement; and (c) with respect to any partnership, joint venture, trust or other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement, instrument, filing or notice with respect thereto filed in connection with its formation or organization with the applicable
Governmental Authority in the jurisdiction of its formation or organization and, if applicable, any certificate or articles of formation or organization of such entity. 

        "Organizational Action" means with respect to any corporation, limited liability company, partnership, limited partnership, limited
liability partnership or other legally authorized incorporated or unincorporated entity, any corporate, organizational or partnership action (including any required shareholder, member or partner
action), or other similar official action, as applicable, taken by such entity. 

        "Outstanding Amount" means (i) with respect to Loans on any date, the aggregate outstanding principal amount thereof after giving
effect to any borrowings and prepayments or repayments of Loans occurring on such date; and (ii) with respect to any L/C Obligations on any date, the amount of such L/C Obligations on such date
after giving effect to any L/C Credit Extension occurring on such date and any other changes in the aggregate amount of the L/C Obligations as of such date, including as a result of any reimbursements
of outstanding unpaid drawings under any Letters of Credit or any reductions in the maximum amount available for drawing under Letters of Credit taking effect on such date. 

        "Participant" has the meaning specified in Section 11.07(d). 

        "PBGC" means the Pension Benefit Guaranty Corporation. 

14

 

        "Pension Plan" means any "employee pension benefit plan" (as such term is defined in Section 3(2) of ERISA), other than a
Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by the Borrower or any ERISA Affiliate or to which the Borrower or any ERISA Affiliate contributes or has an
obligation to contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five
plan years. 

        "Permitted Liens" has the meaning specified in Section 8.01. 

        "Person" means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership,
Governmental Authority or other entity. 

        "Plan" means any "employee benefit plan" (as such term is defined in Section 3(3) of ERISA) established by the Borrower or, with
respect to any such plan that is subject to Section 412 of the Code or Title IV of ERISA, any ERISA Affiliate. 

        "Pledge Agreement" means, collectively (or individually as the context may indicate), (i) that certain Securities Pledge Agreement
dated as of the date hereof among the Borrower, certain Guarantors and the Administrative Agent for the benefit of the Secured Parties, as supplemented from time to time by the execution and delivery
of Pledge Joinder Agreements pursuant to Section 5.01(a) or 7.12, and (ii) with respect to
any Subsidiary Securities issued by a Direct Foreign Subsidiary, any additional or substitute charge, agreement, document, instrument or conveyance, in form and substance acceptable to the
Administrative Agent, conferring under applicable foreign law upon the Agent for the benefit of the Secured Parties a Lien upon such Subsidiary Securities as are owned by the Borrower or any Domestic
Subsidiary, in each case as hereafter amended, modified, supplemented (including by Pledge Agreement Supplement) or amended and restated from time to time. 

        "Pledge Agreement Supplement" means, with respect to each Pledge Agreement, the Pledge Agreement Supplement substantially in the form
attached as an Exhibit to such Pledge Agreement. 

        "Pledged Interests" means (i) 65% of the Voting Securities of each Direct Foreign Subsidiary (or if the Borrower and its
Subsidiaries shall own less than 65%, then all of the Voting Securities owned by them) and 100% of the other Subsidiary Securities of such Direct Foreign Subsidiary, (ii) all of the Subsidiary
Securities of NeuLevel owned by the Borrower and its Subsidiaries, and (iii) all of the Subsidiary Securities of all other Domestic Subsidiaries other than NeuLevel. 

        "Pledge Joinder Agreement" means each Pledge Joinder Agreement, substantially in the form thereof attached to the Pledge Agreement,
executed and delivered by a Guarantor to the Agent of the benefit
of the Secured Parties under the Pledge Agreement pursuant to Section 7.12, as amended, modified, supplemented or amended and restated. 

        "Pro Rata Share" means, with respect to each Lender at any time, a fraction (expressed as a percentage, carried out to the ninth decimal
place), the numerator of which is the amount of the Commitment of such Lender at such time and the denominator of which is the amount of the Aggregate Commitments at such time;  provided that if the
commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated
pursuant to Section 9.02, then the Pro Rata Share of each Lender shall be determined based on the Pro Rata Share of such Lender immediately prior
to such termination and after giving effect to any subsequent assignments made pursuant to the terms hereof. The initial Pro Rata Share of each Lender is set forth opposite the name of such Lender on  Schedule 2.01 or in the Assignment and Assumption pursuant to which such Lender becomes a party hereto, as applicable. 

        "Register" has the meaning set forth in Section 11.07(c). 

        "Reportable Event" means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day
notice period has been waived. 

15

 

        "Request for Credit Extension" means (a) with respect to a Borrowing, conversion or continuation of Loans, a Loan Notice and
(b) with respect to an L/C Credit Extension, a Letter of Credit Application. 

        "Required Lenders" means, as of any date of determination, at least two Lenders having in the aggregate more than 50% of the Aggregate
Commitments or, if the commitment of each Lender to make Loans and the obligation of the L/C Issuer to make L/C Credit Extensions have been terminated pursuant to  Section 9.02, at least two Lenders
holding in the aggregate more than 50% of the Total Outstandings (with the aggregate amount of each Lender's
risk participation and funded participation in L/C Obligations being deemed "held" by such Lender for purposes of this definition); provided that the
Commitment of, and the portion of the Total Outstandings held or deemed held by, any Defaulting Lender shall be excluded for purposes of making a determination of Required Lenders;  provided further,
that if only two Lenders have Commitments or have outstanding Loans owing thereto hereunder, Required Lenders means both Lenders and
if there is only one Lender, that Lender. 

        "Responsible Officer" means the chief executive officer, president, chief operating officer, chief financial officer, senior vice
president, treasurer or assistant treasurer of a Loan Party. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been
authorized by all necessary corporate, partnership and/or other action on the part of such
Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 

        "Restricted Payment" means any dividend or other distribution (whether in cash, securities or other property) with respect to any capital
stock or other equity interest of the Borrower or any Subsidiary, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the
purchase, redemption, retirement, acquisition, cancellation or termination of any such capital stock or other equity interest or of any option, warrant or other right to acquire any such capital stock
or other equity interest. 

        "S&P" means Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. and any successor
thereto. 

        "SEC" means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. 

        "Secured Parties" means, collectively, with respect to each of the Security Instruments, the Administrative Agent, the Lenders and such
other Persons for whose benefit the Lien thereunder is conferred, as therein provided. 

        "Security Agreement" means the Security Agreement dated as of the date hereof by the Borrower and one or more of the Guarantors to the
Administrative Agent for the benefit of the Secured Parties, as supplemented from time to time by the execution and delivery of Security Joinder Agreements pursuant to  Section 7.12, as the same may
be otherwise supplemented or amended, modified, or amended and restated. 

        "Security Instruments" means, collectively, the Pledge Agreement (including the Pledge Joinder Agreements and the Pledge Agreement
Supplements), the Security Agreement (including the Security Joinder Agreements), the Lockbox Account Agreement, and all other agreements (including control agreements), instruments and other
documents, whether now existing or hereafter in effect, pursuant to which the Borrower or any Subsidiary or other Person shall grant or convey to the Administrative Agent or the Lenders a Lien in, or
any other Person shall acknowledge any such Lien in, property as security for all or any portion of the Obligations or any other obligation under any Loan Document, as any of them may be amended,
modified or supplemented from time to time. 

16

 

        "Security Joinder Agreement" means each Security Joinder Agreement, substantially in the form thereof attached to the Security Agreement,
executed and delivered by a Guarantor to the Administrative Agent for the benefit of the Secured Parties under the Security Agreement pursuant to  Section 7.12, as amended, modified, supplemented or
amended and restated. 

        "Shareholders' Equity" means, as of any date of determination, consolidated shareholders' equity of the Borrower and its Subsidiaries as
of that date determined in accordance with GAAP. 

        "SOW Receivables" means amounts due under the Statements of Work for Additional Services pursuant to Article 13 of each LNP
Contract. 

        "SOW Receivables Securitization" means the securitization of the SOW Receivables pursuant to the DB Loan Agreement. 

        "SOW Receivables Securitization Documents" means the DB Loan Agreement, the Master Trust Agreement, the Servicing Agreement, the
Receivables Transfer Agreement, the DB Guaranty, and the LNP Receivables Tracking Certificate, all dated as of November 2, 2001, and the Deutsche Bank Parent Security Agreement dated as of the
date hereof, each relating to the securitization of the SOW Receivables, as in effect on the Closing Date. 

        "Subsidiary" of a Person means a corporation, partnership, limited liability company or other business entity of which a majority of the
shares of securities or other interests having ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the management of which is otherwise controlled, directly, or indirectly through one or more intermediaries, or both, by such Person.
Unless otherwise specified, all references herein to a "Subsidiary" or to "Subsidiaries" shall refer to a Subsidiary or Subsidiaries of the Borrower. 

        "Subsidiary Securities" means the shares of capital stock or the other equity interests issued by or equity participations in any
Subsidiary, whether or not constituting a "security" under Article 8 of the Uniform Commercial Code as in effect in any jurisdiction. 

        "Swap Contract" means (a) any and all rate swap transactions, basis swaps, credit derivative transactions, forward rate
transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or forward bond or forward
bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions,
cross-currency rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the
foregoing), whether or not any such transaction is governed by or subject to any master agreement, and
(b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related
schedules, a "Master Agreement"), including any such obligations or liabilities under any Master Agreement. 

        "Swap Termination Value" means, in respect of any one or more Swap Contracts, after taking into account the effect of any legally
enforceable netting agreement relating to such Swap Contracts, (a) for any date on or after the date such Swap Contracts have been closed out and termination value(s) determined in accordance
therewith, such termination value(s), and (b) for any date prior to the date referenced in clause (a), the amount(s) determined as the mark-to-market value(s) for
such Swap Contracts, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in such Swap Contracts (which may include a
Lender or any Affiliate of a Lender). 

17

 

        "Synthetic Lease Obligation" means the monetary obligation of a Person under (a) a so-called synthetic,
off-balance sheet or tax retention lease, or (b) an agreement for the use or possession of property creating obligations that do not appear on the balance sheet of such Person but
which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). 

        "Total Outstandings" means the aggregate Outstanding Amount of all Loans and all L/C Obligations. 

        "Type" means, with respect to a Loan, its character as a Base Rate Loan, LIBOR Floating Rate Loan or a Eurodollar Rate Loan. 

        "Unfunded Pension Liability" means the excess of a Pension Plan's benefit liabilities under Section 4001(a)(16) of ERISA, over the
current value of that Pension Plan's assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Code for the applicable plan year. 

        "United States" and "U.S." mean the United States of America. 

        "Unreimbursed Amount" has the meaning set forth in Section 2.03(c)(i). 

        "Voting Securities" means shares of capital stock issued by a corporation, or equivalent interests in any other Person, the holders of
which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been
suspended by the happening of such a contingency. 

        1.02    Other Interpretive Provisions.    With reference to this Agreement and each other Loan Document, unless
otherwise specified herein or in such other Loan Document: 

        (a)   The
meanings of defined terms are equally applicable to the singular and plural forms of the defined terms. 

        (b)   (i)
The words "herein," "hereto,"
"hereof" and "hereunder" and words of similar import when used in any Loan Document shall refer to such
Loan Document as a whole and not to any particular provision thereof. 

         (ii)  Article,
Section, Exhibit and Schedule references are to the Loan Document in which such reference appears. 

        (iii)  The
term "including" is by way of example and not limitation. 

        (iv)  The
term "documents" includes any and all instruments, documents, agreements, certificates, notices, reports, financial
statements and other writings, however evidenced, whether in physical or electronic form. 

        (c)   In
the computation of periods of time from a specified date to a later specified date, the word "from" means
"from and including;" the words "to" and "until" each
mean "to but excluding"; and the word "through" means "to and
including." 

        (d)   Section
headings herein and in the other Loan Documents are included for convenience of reference only and shall not affect the interpretation of this Agreement or any
other Loan Document. 

        1.03    Accounting Terms.    (a) All accounting terms not specifically or completely defined herein shall be
construed in conformity with, and all financial data (including financial ratios and other financial calculations) required to be submitted pursuant to this Agreement shall be prepared in conformity
with, GAAP applied on a consistent basis, as in effect from time to time, applied in a manner consistent with that used in preparing the Audited Financial Statements,  except as otherwise specifically
prescribed herein. 

18

 

        (b)   If
at any time any change in GAAP would affect the computation of any financial ratio or requirement set forth in any Loan Document, and either the Borrower or the
Required Lenders shall so request, the Administrative Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP (subject to the approval of the Required Lenders); provided that, until so amended, (i) such ratio or requirement
shall continue to be computed in accordance with GAAP prior to such change therein and (ii) the Borrower shall provide to the Administrative Agent and the Lenders financial statements and other
documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to
such change in GAAP. 

        1.04    Rounding.    Any financial ratios required to be maintained by the Borrower pursuant to this Agreement shall
be calculated by dividing the appropriate component by the other component, carrying the result to one place more than the number of places by which such ratio is expressed herein and rounding the
result up or down to the nearest number (with a rounding-up if there is no nearest number). 

        1.05    References to Agreements and Laws.    Unless otherwise expressly provided herein, (a) references to
Organization Documents, agreements (including the Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, extensions, supplements and
other modifications thereto, but only to the extent that such amendments, restatements, extensions, supplements and other modifications are not prohibited by any Loan Document; and
(b) references to any Law shall include all statutory and regulatory provisions consolidating, amending, replacing, supplementing or interpreting such Law. 

        1.06    Times of Day.    Unless otherwise specified, all references herein to times of day shall be references to
Eastern time (daylight or standard, as applicable). 

        1.07    Letter of Credit Amounts.    Unless otherwise specified, all references herein to the amount of a Letter of
Credit at any time shall be deemed to mean the maximum face amount of such Letter of Credit after giving effect to all increases thereof contemplated by such Letter of Credit or the Letter of Credit
Application therefor, whether or not such maximum face amount is in effect at such time. 

 
 

ARTICLE II.
  THE COMMITMENTS AND CREDIT EXTENSIONS    
    

        2.01    Loans.    Subject to the terms and conditions set forth herein, each Lender severally agrees to make loans
(each such loan, a "Loan") to the Borrower from time to time, on any Business Day during the Availability Period, in an aggregate amount not to exceed
at any time outstanding the amount of such Lender's Commitment; provided, however, that after giving
effect to any Borrowing, (i) the Total Outstandings shall not exceed the lesser of the Aggregate Commitments and the Available Amount, and (ii) the aggregate Outstanding Amount of the
Loans of any Lender plus such Lender's Pro Rata Share of the Outstanding Amount of all L/C Obligations shall not exceed such Lender's Commitment. Within
the limits of each Lender's Commitment, and subject to the other terms and conditions hereof, the Borrower may borrow under this Section 2.01,
prepay under Section 2.04, and reborrow under this Section 2.01. Loans may be Base Rate
Loans, LIBOR Floating Rate Loans or Eurodollar Rate Loans, as further provided herein; provided,  however, that Loans may be LIBOR Floating Rate Loans only
when Bank of America is the sole Lender hereunder. 

        2.02    Borrowings, Conversions and Continuations of Loans.    

        (a)   Each
Borrowing, each conversion of Loans from one Type to the other, and each continuation of Eurodollar Rate Loans shall be made upon the Borrower's irrevocable notice
to the Administrative Agent, which may be given by telephone. Each such notice must be received by the Administrative Agent not later than 11:00 a.m. (i) three Business Days prior to the
requested date of any Borrowing 

19

 

of,
conversion to or continuation of Eurodollar Rate Loans or of any conversion of Eurodollar Rate Loans to LIBOR Floating Rate Loans or Base Rate Loans, and (ii) on the requested date of any
Borrowing of Base Rate Loans or LIBOR Floating Rate Loans. Each telephonic notice by the Borrower pursuant to this Section 2.02(a) must be
confirmed promptly by delivery to the Administrative Agent of a written Loan Notice, appropriately completed and signed by a Responsible Officer of the Borrower. Except as provided in  Section 2.03(c), each Borrowing shall be in a principal amount of $500,000 or a whole multiple of $100,000 in excess thereof. Each Loan Notice
(whether telephonic or written) shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of Loans from one Type to the other, or a continuation of Eurodollar Rate Loans,
(ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans to be borrowed, converted or
continued, (iv) the Type of Loans to be borrowed or to which existing Loans are to be converted, and (v) if applicable, the duration of the Interest Period with respect thereto. If the
Borrower fails to specify a Type of Loan in a Loan Notice or if the Borrower fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall be made as, or
converted to, Base Rate Loans. Any such automatic conversion to Base Rate Loans shall be effective as of the last day of the Interest Period then in effect with respect to the applicable Eurodollar
Rate Loans. If the Borrower requests a Borrowing of, conversion to or continuation of Eurodollar Rate Loans in any such Loan Notice, but fails to specify an Interest Period, it will be deemed to have
specified an Interest Period of one month. 

        (b)   Following
receipt of a Loan Notice, the Administrative Agent shall promptly notify each Lender of the amount of its Pro Rata Share of the applicable Loans, and if no
timely notice of a conversion or continuation is provided by the Borrower, the Administrative Agent shall notify each Lender of the details of any automatic conversion to Base Rate Loans described in
the preceding subsection. In the case of a Borrowing, each Lender shall make the amount of its Loan available to the Administrative Agent in immediately available funds at the Administrative Agent's
Office not later than 1:00 p.m. on the Business Day specified in the applicable Loan Notice. Upon satisfaction of the applicable conditions set forth in  Section 5.02 (and, if such Borrowing is
the initial Credit Extension, Section 5.01), the
Administrative Agent shall make all funds so received available to the Borrower in like funds as received by the Administrative Agent either by (i) crediting the account of the Borrower on the
books of Bank of America with the amount of such funds or (ii) wire transfer of such funds, in each case in accordance with instructions provided to (and reasonably acceptable to) the
Administrative Agent by the Borrower; provided, however, that if, on the date the Loan Notice with
respect to such Borrowing is given by the Borrower, there are L/C Borrowings outstanding, then the proceeds of such Borrowing shall be applied, first,
to the payment in full of any such L/C Borrowings, and second, to the Borrower as provided above. 

        (c)   Except
as otherwise provided herein, a Eurodollar Rate Loan may be continued or converted only on the last day of an Interest Period for such Eurodollar Rate Loan.
During the existence of a Default, no Loans may be requested as, converted to or continued as Eurodollar Rate Loans without the consent of the Required Lenders. 

        (d)   The
Administrative Agent shall promptly notify the Borrower and the Lenders of the interest rate applicable to any Interest Period for Eurodollar Rate Loans upon
determination of such interest rate. The determination of the Eurodollar Rate by the Administrative Agent shall be conclusive in the absence of manifest error. At any time that Base Rate Loans are
outstanding, the Administrative Agent shall notify the Borrower and the Lenders of any change in Bank of America's prime rate used in determining the Base Rate promptly following the public
announcement of such change. 

        (e)   After
giving effect to all Borrowings, all conversions of Loans from one Type to the other, and all continuations of Loans as the same Type, there shall not be
simultaneously more than five Interest Periods in effect with respect to Loans. 

20

 

        2.03    Letters of Credit.    

        (a)   The Letter of Credit Commitment. 

          (i)  Subject
to the terms and conditions set forth herein, (A) the L/C Issuer agrees, in reliance upon the agreements of the other Lenders set forth in this  Section 2.03, (1) from time to time on any
Business Day during the period from the Closing Date until the Letter of Credit Expiration
Date, to issue Letters of Credit for the account of the Borrower, and to amend or renew Letters of Credit previously issued by it, in accordance with subsection (b) below, and (2) to
honor drafts under the Letters of Credit; and (B) the Lenders severally agree to participate in Letters of Credit issued for the account of the Borrower;  provided that the L/C Issuer shall not be
obligated to make any L/C Credit Extension with respect to any Letter of Credit, and no Lender shall be
obligated to participate in any Letter of Credit, if as of the date of such L/C Credit Extension, (x) the Total Outstandings would exceed the lesser of the Aggregate Commitments and the
Available Amount, (y) the aggregate Outstanding Amount of the Loans of any Lender plus such Lender's Pro Rata Share of the Outstanding Amount of
all L/C Obligations would exceed such Lender's Commitment, or (z) the Outstanding Amount of the L/C Obligations would exceed the Letter of Credit Sublimit. Within the foregoing limits, and
subject to the terms and conditions hereof, the Borrower's ability to obtain Letters of Credit shall be fully revolving, and accordingly the Borrower may, during the foregoing period, obtain Letters
of Credit to replace Letters of Credit that have expired or that have been drawn upon and reimbursed. 

         (ii)  The
L/C Issuer shall be under no obligation to issue any Letter of Credit if: 

        (A)  any
order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the L/C Issuer from issuing such Letter of
Credit, or any Law applicable
to the L/C Issuer or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuer shall prohibit, or request that the L/C
Issuer refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuer with respect to such Letter of Credit any restriction,
reserve or capital requirement (for which the L/C Issuer is not otherwise compensated hereunder) not in effect on the Closing Date, or shall impose upon the L/C Issuer any unreimbursed loss, cost or
expense which was not applicable on the Closing Date and which the L/C Issuer in good faith deems material to it; 

        (B)  subject
to Section 2.03(b)(iii), the expiry date of such requested Letter of Credit would occur more than twelve
months after the date of issuance or last renewal, unless the Required Lenders have approved such expiry date; 

        (C)  the
expiry date of such requested Letter of Credit would occur after the Letter of Credit Expiration Date, unless all the Lenders have approved such expiry date; 

        (D)  the
issuance of such Letter of Credit would violate one or more policies of the L/C Issuer having general applicability to all borrowers; or 

        (E)  such
Letter of Credit is in an initial amount less than $250,000, or is to be denominated in a currency other than Dollars or is requested to be a commercial or
documentary, rather than standby, letter of credit; provided, however, that if such Letter of Credit is
for the benefit of Information Leasing Corporation it may be issued in an initial amount of not less than $177,555. 

        (iii)  The
L/C Issuer shall be under no obligation to amend any Letter of Credit if (A) the L/C Issuer would have no obligation at such time to issue such Letter of
Credit in its amended form under the terms hereof, or (B) the beneficiary of such Letter of Credit does not accept the proposed amendment to such Letter of Credit. 

21

 

        (b)   Procedures for Issuance and Amendment of Letters of Credit; Auto-Renewal Letters of Credit. 

          (i)  Each
Letter of Credit shall be issued or amended, as the case may be, upon the request of the Borrower delivered to the L/C Issuer (with a copy to the Administrative
Agent) in the form of a Letter of Credit Application, appropriately completed and signed by a Responsible Officer of the Borrower. Such Letter of Credit Application must be received by the L/C Issuer
and the Administrative Agent not
later than 11:00 a.m. at least two Business Days (or such later date and time as the L/C Issuer may agree in a particular instance in its sole discretion) prior to the proposed issuance date or
date of amendment, as the case may be. In the case of a request for an initial issuance of a Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably
satisfactory to the L/C Issuer: (A) the proposed issuance date of the requested Letter of Credit (which shall be a Business Day); (B) the amount thereof; (C) the expiry date
thereof; (D) the name and address of the beneficiary thereof; (E) the documents to be presented by such beneficiary in case of any drawing thereunder; (F) the full text of any
certificate to be presented by such beneficiary in case of any drawing thereunder; and (G) such other matters as the L/C Issuer may reasonably require. In the case of a request for an amendment
of any outstanding Letter of Credit, such Letter of Credit Application shall specify in form and detail reasonably satisfactory to the L/C Issuer (A) the Letter of Credit to be amended;
(B) the proposed date of amendment thereof (which shall be a Business Day); (C) the nature of the proposed amendment; and (D) such other matters as the L/C Issuer may reasonably
require. 

         (ii)  Promptly
after receipt of any Letter of Credit Application, the L/C Issuer will confirm with the Administrative Agent (by telephone or in writing) that the
Administrative Agent has received a copy of such Letter of Credit Application from the Borrower and, if not, the L/C Issuer will provide the Administrative Agent with a copy thereof. Upon receipt by
the L/C Issuer of confirmation from the Administrative Agent that the requested issuance or amendment is permitted in accordance with the terms hereof, then, subject to the terms and conditions
hereof, the L/C Issuer shall, on the requested date, issue a Letter of Credit for the account of the Borrower or enter into the applicable amendment, as the case may be, in each case in accordance
with the L/C Issuer's usual and customary business practices. Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and unconditionally agrees
to, purchase from the L/C Issuer a risk participation in such Letter of Credit in an amount equal to the product of such Lender's Pro Rata Share times the amount of such Letter of Credit. 

        (iii)  If
the Borrower so requests in any applicable Letter of Credit Application, the L/C Issuer may, in its sole and absolute discretion, agree to issue a Letter of Credit
that has automatic renewal provisions (each, an "Auto-Renewal Letter of Credit"); provided
that any such Auto-Renewal Letter of Credit must permit the L/C Issuer to prevent any such renewal at least once in each six-month period (commencing with the date of issuance
of such Letter of Credit) by giving prior notice to the beneficiary thereof not later than a day (the "Nonrenewal Notice Date") in each such
six-month period to be agreed upon at the time such Letter of Credit is issued. Unless otherwise directed by the L/C Issuer, the Borrower shall not be required to make a specific request
to the L/C Issuer for any such renewal. Once an Auto-Renewal Letter of Credit has been issued, the Lenders shall be deemed to have authorized (but may not require) the L/C Issuer to permit
the renewal of such Letter of Credit at any time to an expiry date not later than the Letter of Credit Expiration Date; provided,  however, that the L/C
Issuer shall not permit any such renewal if (A) the L/C Issuer has determined that it would have no obligation at such time
to issue such Letter of Credit in its renewed form under the terms hereof (by reason of the provisions of Section 2.03(a)(ii) or otherwise), or
(B) it has received notice (which may be by telephone or in writing) on or before the day that is two Business Days before the Nonrenewal Notice Date (1) from the Administrative Agent
that the Required Lenders have elected not to permit such 

22

 

renewal
or (2) from the Administrative Agent, any Lender or the Borrower that one or more of the applicable conditions specified in  Section 5.02 is not then satisfied. 

        (iv)  Promptly
after its delivery of any Letter of Credit or any amendment to a Letter of Credit to an advising bank with respect thereto or to the beneficiary thereof, the
L/C Issuer will also deliver to the Borrower and the Administrative Agent a true and complete copy of such Letter of Credit or amendment. 

        (c)   Drawings and Reimbursements; Funding of Participations. 

          (i)  Upon
receipt from the beneficiary of any Letter of Credit of any notice of a drawing under such Letter of Credit, the L/C Issuer shall promptly notify the Borrower and
the Administrative Agent thereof and provide copies of the documentation submitted in connection with such drawing. Not later than 11:00 a.m. on the date of any payment by the L/C Issuer under
a Letter of Credit (each such date, an "Honor Date"), the Borrower shall reimburse the L/C Issuer through the Administrative Agent in an amount equal to
the amount of such drawing. If the Borrower fails to so reimburse the L/C Issuer by such time, the Administrative Agent shall promptly notify each Lender of the Honor Date, the amount of the
unreimbursed drawing (the "Unreimbursed Amount"), and the amount of such Lender's Pro Rata Share thereof. In such event, the Borrower shall be deemed to
have requested a Borrowing of Base Rate Loans to be disbursed on the Honor Date in an amount equal to the Unreimbursed Amount, without regard to the minimum and multiples specified in  Section 2.02
for the principal amount of Base Rate Loans, but subject to the amount of the unutilized portion of the lesser of the Aggregate
Commitments and the Available Amount and the conditions set forth in Section 5.02 (other than the delivery of a Loan Notice). Any notice given by
the L/C Issuer or the Administrative Agent pursuant to this Section 2.03(c)(i) may be given by telephone if immediately confirmed in writing;  provided
that the lack of such an immediate confirmation shall not affect the conclusiveness or binding effect of such notice. 

         (ii)  Each
Lender (including the Lender acting as L/C Issuer) shall upon any notice pursuant to Section 2.03(c)(i) make
funds available to the Administrative Agent for the account of the L/C Issuer at the Administrative Agent's Office in an amount equal to its Pro Rata Share of the Unreimbursed Amount not later than
1:00 p.m. on the Business Day specified in such notice by the Administrative Agent, whereupon, subject to the provisions of  Section 2.03(c)(iii), each Lender that so makes funds available
shall be deemed to have made a Base Rate Loan to the Borrower in such amount. The
Administrative Agent shall remit the funds so received to the L/C Issuer. 

        (iii)  With
respect to any Unreimbursed Amount that is not fully refinanced by a Borrowing of Base Rate Loans because the conditions set forth in  Section 5.02 cannot be satisfied or for any other reason, the
Borrower shall be deemed to have incurred from the L/C Issuer an L/C Borrowing in
the amount of the Unreimbursed Amount that is not so refinanced, which L/C Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the Default Rate. In such
event, each Lender's payment to the Administrative Agent for the account of the L/C Issuer pursuant to Section 2.03(c)(ii) shall be deemed
payment in respect of its participation in such L/C Borrowing and shall constitute an L/C Advance from such Lender in satisfaction of its participation obligation under this  Section 2.03.

        (iv)  Until
each Lender funds its Loan or L/C Advance pursuant to this Section 2.03(c) to reimburse the L/C Issuer for
any amount drawn under any Letter of Credit, interest in respect of such Lender's Pro Rata Share of such amount shall be solely for the account of the L/C Issuer. 

         (v)  Each
Lender's obligation to make Loans or L/C Advances to reimburse the L/C Issuer for amounts drawn under Letters of Credit, as contemplated by this  Section 2.03(c), shall be absolute and unconditional
and shall not be affected by any circumstance, including (A) any set-off,
counterclaim, recoupment, defense or other right which such Lender may have against the 

23

 

L/C
Issuer, the Borrower or any other Person for any reason whatsoever; (B) the occurrence or continuance of a Default, or (C) any other occurrence, event or condition, whether or not
similar to any of the foregoing; provided, however, that each Lender's obligation to make Loans pursuant
to this Section 2.03(c) is subject to the conditions set forth in Section 5.02 (other than
delivery by the Borrower of a Loan Notice). No such making of an L/C Advance shall relieve or otherwise impair the obligation of the Borrower to reimburse the L/C Issuer for the amount of any payment
made by the L/C Issuer under any Letter of Credit, together with interest as provided herein. 

        (vi)  If
any Lender fails to make available to the Administrative Agent for the account of the L/C Issuer any amount required to be paid by such Lender pursuant to the
foregoing provisions of this Section 2.03(c) by the time specified in Section 2.03(c)(ii),
the L/C Issuer shall be entitled to recover from such Lender (acting through the Administrative Agent), on demand, such amount with interest thereon for the period from the date such payment is
required to the date on which such payment is
immediately available to the L/C Issuer at a rate per annum equal to the Federal Funds Rate from time to time in effect. A certificate of the L/C Issuer submitted to any Lender (through the
Administrative Agent) with respect to any amounts owing under this clause (vi) shall be conclusive absent manifest error. 

        (d)   Repayment of Participations. 

          (i)  At
any time after the L/C Issuer has made a payment under any Letter of Credit and has received from any Lender such Lender's L/C Advance in respect of such payment in
accordance with Section 2.03(c), if the Administrative Agent receives for the account of the L/C Issuer any payment in respect of the related
Unreimbursed Amount or interest thereon (whether directly from the Borrower or otherwise, including proceeds of Cash Collateral applied thereto by the Administrative Agent), the Administrative Agent
will distribute to such Lender its Pro Rata Share thereof (appropriately adjusted, in the case of interest payments, to reflect the period of time during which such Lender's L/C Advance was
outstanding) in the same funds as those received by the Administrative Agent. 

         (ii)  If
any payment received by the Administrative Agent for the account of the L/C Issuer pursuant to  Section 2.03(c)(i) is required to be returned under any of the circumstances described in 
Section 11.06 (including pursuant to any settlement entered into by the L/C Issuer in its discretion), each Lender shall pay to the
Administrative Agent for the account of the L/C Issuer its Pro Rata Share thereof on demand of the Administrative Agent, plus interest thereon from the date of such demand to the date such amount is
returned by such Lender, at a rate per annum equal to the Federal Funds Rate from time to time in effect. 

        (e)    Obligations Absolute.    The obligation of the Borrower to reimburse the L/C Issuer for each drawing under each
Letter of Credit and to repay each L/C Borrowing shall be absolute, unconditional and irrevocable, and shall be paid strictly in accordance with the terms of this Agreement under all circumstances,
including the following: 

          (i)  any
lack of validity or enforceability of such Letter of Credit, this Agreement, or any other agreement or instrument relating thereto; 

         (ii)  the
existence of any claim, counterclaim, set-off, defense or other right that the Borrower may have at any time against any beneficiary or any transferee
of such Letter of Credit (or any Person for whom any such beneficiary or any such transferee may be acting), the L/C Issuer or any other Person, whether in connection with this Agreement, the
transactions contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction; 

24

  

        (iii)  any
draft, demand, certificate or other document presented under such Letter of Credit proving to be forged, fraudulent, invalid or insufficient in any respect or any
statement therein being untrue or inaccurate in any respect; or any loss or delay in the transmission or otherwise of any document required in order to make a drawing under such Letter of Credit; 

        (iv)  any
payment by the L/C Issuer under such Letter of Credit against presentation of a draft or certificate that does not strictly comply with the terms of such Letter of
Credit; or any payment made by the L/C Issuer under such Letter of Credit to any Person purporting to be a trustee in bankruptcy, debtor-in-possession, assignee for the benefit
of creditors, liquidator, receiver or other representative of or successor to any beneficiary or any transferee of such Letter of Credit, including any arising in connection with any proceeding under
any Debtor Relief Law; or 

         (v)  any
other circumstance or happening whatsoever, whether or not similar to any of the foregoing, including any other circumstance that might otherwise constitute a
defense available to, or a discharge of, the Borrower. 

        The
Borrower shall as promptly as reasonably practicable examine a copy of each Letter of Credit and each amendment thereto that is delivered to it upon receipt and, in the event of any
claim of noncompliance with the Borrower's instructions or other irregularity, the Borrower shall immediately notify the L/C Issuer. The Borrower shall be conclusively deemed to have waived any such
claim against the L/C Issuer and its correspondents unless such notice is given as aforesaid. 

        (f)    Role of L/C Issuer.    Each Lender and the Borrower agree that, in paying any drawing under a Letter of Credit,
the L/C Issuer shall not have any responsibility to obtain any document (other than any sight draft, certificates and documents expressly required by the Letter of Credit) or to ascertain or inquire
as to the validity or accuracy of any such document or the authority of the Person executing or delivering any such document. None of the L/C Issuer, any Agent-Related Person nor any of the respective
correspondents, participants or assignees of the L/C Issuer shall be liable to any Lender for (i) any action taken or omitted in connection herewith at the request or with the approval of the
Lenders or the Required Lenders, as applicable; (ii) any action taken or omitted in the absence of gross negligence or willful misconduct; or (iii) the due execution, effectiveness,
validity or enforceability of any document or instrument related to any Letter of Credit or Letter of Credit Application. The Borrower hereby assumes all risks of the acts or omissions of any
beneficiary or transferee with respect to its use of any Letter of Credit; provided, however, that this
assumption is not intended to, and shall not, preclude the Borrower's pursuing such rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement. None
of the L/C Issuer, any Agent-Related Person, nor any of the respective correspondents, participants or assignees of the L/C Issuer, shall be liable or responsible for any of the matters described in
clauses (i) through (v) of Section 2.03(e); provided,  however, that anything in such clauses
to the contrary notwithstanding, the Borrower may have a claim against the L/C Issuer, and the L/C Issuer may be
liable to the Borrower, to the extent, but only to the extent, of any direct, as opposed to consequential, special punitive, indirect or exemplary, damages suffered by the Borrower which the Borrower
proves were caused by the L/C Issuer's willful misconduct or gross negligence or the L/C Issuer's willful failure to pay under any Letter of Credit after the presentation to it by the beneficiary of a
sight draft and certificate(s) strictly complying with the terms and conditions of a Letter of Credit. In furtherance and not in limitation of the foregoing, the L/C Issuer may accept documents that
appear on their face to be in order, without responsibility for further investigation, regardless of any notice or information to the contrary, and the L/C Issuer shall not be responsible for the
validity or sufficiency of any instrument transferring or assigning or purporting to transfer or assign a Letter of Credit or the rights or benefits thereunder or proceeds thereof, in whole or in
part, which may prove to be invalid or ineffective for any reason. 

        (g)    Cash Collateral.    Upon the request of the Administrative Agent, (i) if the L/C Issuer has honored any
full or partial drawing request under any Letter of Credit and such drawing has resulted 

25

 

in
an L/C Borrowing, or (ii) if, as of the Maturity Date, any Letter of Credit may for any reason remain outstanding and partially or wholly undrawn, the Borrower shall within three
(3) Business Days Cash Collateralize the then Outstanding Amount of all L/C Obligations (in an amount equal to such Outstanding Amount determined as of the date of such L/C Borrowing or the
Letter of Credit Expiration Date, as the case may be). For purposes hereof, "Cash Collateralize" means to pledge and deposit with or deliver to the
Administrative Agent, for the benefit of the L/C Issuer and the Lenders, as collateral for the L/C Obligations, Liquid Assets or deposit account balances pursuant to documentation in form and
substance satisfactory to the Administrative Agent and the L/C Issuer (which documents are hereby consented to by the Lenders). Derivatives of such term have corresponding meanings. The Borrower
hereby grants to the Administrative Agent, for the benefit of the L/C Issuer and the Lenders, a security interest in all such Liquid Assets, deposit accounts and all balances therein and all proceeds
of the foregoing. Cash collateral shall be maintained in blocked deposit accounts at Bank of America, and invested in certificates of deposits issued by Bank of America or other cash equivalents
acceptable to the Administrative Agent. 

        (h)    Applicability of ISP98.    Unless otherwise expressly agreed by the L/C Issuer and the Borrower when a Letter
of Credit is issued, the rules of the "International Standby Practices 1998" published by the Institute of International Banking Law & Practice (or such later version thereof as may be in
effect at the time of issuance) shall apply to each Letter of Credit. 

        (i)    Letter of Credit Fees.    The Borrower shall pay to the Administrative Agent for the account of each Lender in
accordance with its Pro Rata Share a letter of credit fee for each Letter of Credit equal to the Applicable Rate for Letters of Credit times the daily
maximum amount available to be drawn under such Letter of Credit (whether or not such maximum amount is then in effect under such Letter of Credit). Such letter of credit fees shall be computed on a
quarterly basis in arrears. Such letter of credit fees shall be due and payable on the first Business Day after the end of each March, June, September and December, commencing with the first such date
to occur after the issuance of such Letter of Credit, on the Letter of Credit Expiration Date and thereafter on demand. If there is any
change in the Applicable Rate during any quarter, the daily maximum amount of each Letter of Credit shall be computed and multiplied by the Applicable Rate separately for each period during such
quarter that such Applicable Rate was in effect. 

        (j)    Fronting Fee and Documentary and Processing Charges Payable to L/C Issuer.    At any time at which more than
one Lender has Commitments hereunder, the Borrower shall pay directly to the L/C Issuer for its own account a fronting fee with respect to each Letter of Credit in the amounts and at the times
specified in the Fee Letter. In addition, the Borrower shall pay directly to the L/C Issuer for its own account the customary issuance, presentation, amendment and other processing fees, and other
standard costs and charges, of the L/C Issuer relating to letters of credit as from time to time in effect. Such customary fees and standard costs and charges are due and payable on demand and are
nonrefundable. 

        (k)    Conflict with Letter of Credit Application.    In the event of any conflict between the terms hereof and the
terms of any Letter of Credit Application, the terms hereof shall control. 

        2.04    Prepayments.    

        (a)   The
Borrower may, upon notice to the Administrative Agent, at any time or from time to time voluntarily prepay Loans in whole or in part without premium or penalty;  provided that (i) such notice must
be received by the Administrative Agent not later than 11:00 a.m. (A) three Business Days prior
to any date of prepayment of Eurodollar Rate Loans and (B) on the date of prepayment of Base Rate Loans; (ii) any prepayment of Loans shall be in a principal amount of $250,000 or a
whole multiple of $50,000 in excess thereof or, if less, the entire principal amount thereof then outstanding. Each such notice shall specify the date and amount of such prepayment and the Type(s) of
Loans to be prepaid. The Administrative Agent will promptly notify each Lender of its receipt of each such notice, 

26

 

and
of the amount of such Lender's Pro Rata Share of such prepayment. If such notice is given by the Borrower, the Borrower shall make such prepayment and the payment amount specified in such notice
shall be due and payable on the date specified therein. Any prepayment of a Eurodollar Rate Loan shall be accompanied by all accrued interest thereon, together with any additional amounts required
pursuant to Section 3.05. Each such prepayment shall be applied to the Loans of the Lenders in accordance with their respective Pro Rata Shares. 

        (b)   If
for any reason the Total Outstandings at any time exceed the lesser of the Aggregate Commitments and the Available Amount then in effect, the Borrower shall
immediately prepay Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess (which prepayment shall not be subject to the limitations of Section 2.04(a));  provided, however, that the Borrower shall not be required to Cash Collateralize the L/C Obligations
pursuant to this Section 2.04(b) unless after the prepayment in full of the Loans, the Total Outstandings exceed the lesser of the Aggregate
Commitments and the Available Amount then in effect. 

        (c)   In
addition to the required payments of principal of the Loans set forth in Sections 2.06 and  2.04(b) and any optional payments of principal of the Loans
effected under Section 2.04(a), the
Borrower shall make the following required prepayments of the Loans (which prepayment shall not be subject to the limitations of Section 2.04(a)), each such payment to be made to the
Administrative Agent for the benefit of the Lenders within the time period specified below: 

          (i)  the
Borrower shall make a prepayment from the proceeds of any issuance of any security constituting Indebtedness of the Borrower or any of its Subsidiaries (other than
NeuLevel and NeuStar Funding) (but specifically excluding Indebtedness permitted to be incurred pursuant to Section 8.03(a), (b), (c), (d), (e) and
(f)) in an amount equal to one hundred percent (100%) of the Net Cash Proceeds of any such issuance; and 

         (ii)  the
Borrower shall make, or shall cause each applicable Subsidiary to make, a prepayment in an amount equal to (y) with respect to any Disposition of assets and
other property in an amount greater than $50,000 by the Borrower or any of its Subsidiaries (other than NeuLevel) (but specifically excluding Dispositions permitted to occur pursuant to  Section 8.05 (c), (d), (e), (g),
(h) and (i)), one hundred percent (100%) of the Net Cash Proceeds of each Disposition and (z) with
respect to any Disposition by NeuLevel of assets and other property in an amount greater than $250,000 (unless such proceeds are used or are to be used for working capital purposes by NeuLevel and
such intended use is certified to the Administrative Agent in writing by a Responsible Officer of the Borrower prior to the time set forth herein by which such prepayment with respect to such proceeds
would otherwise be required), the Borrower's pro rata portion (determined based on that percentage of the total fully adjusted equity ownership interest in NeuLevel which is owned by the Borrower and
its Subsidiaries collectively) of the Net Cash Proceeds of such Disposition. 

Each
prepayment required under this Section 2.04(c) shall be made within ten (10) Business Days of receipt of such proceeds and upon not
less than five (5) Business Days' written notice to the Administrative Agent, which notice shall include a certificate of an Responsible Officer setting forth in reasonable detail the
calculations utilized in computing the amount of such prepayment; provided, however, that the Borrower may hold such Net Cash Proceeds in escrow on
behalf of the Administrative Agent and the Lenders in order to limit the applicable breakage and redeployment costs, including any amounts described under  Section 3.05. 

        2.05    Termination or Reduction of Commitments.    The Borrower may, upon notice to the Administrative Agent,
terminate the Aggregate Commitments, or from time to time permanently reduce the Aggregate Commitments; provided that (i) any such notice shall
be received by the Administrative Agent not later than 11:00 a.m. five Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an
aggregate amount of $1,000,000 or any whole 

27

 

multiple
of $1,000,000 in excess thereof, (iii) the Borrower shall not terminate or reduce the Aggregate Commitments if, after giving effect thereto and to any concurrent prepayments hereunder,
the Total Outstandings would exceed the Aggregate Commitments, and (iv) if, after giving effect to any reduction of the Aggregate Commitments, the Letter of Credit Sublimit exceeds the amount
of the Aggregate Commitments, such Sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent will promptly notify the Lenders of any such notice of termination or
reduction of the Aggregate Commitments. Any reduction of the Aggregate Commitments shall be applied to the Commitment of each Lender according to its Pro Rata Share. All fees accrued until the
effective date of any termination of the Aggregate Commitments shall be paid on the effective date of such termination. 

        2.06    Repayment of Loans.    The Borrower shall repay to the Lenders on the Maturity Date the aggregate principal
amount of Loans outstanding on such date. 

        2.07    Interest.    

        (a)   Subject
to the provisions of subsection (b) below, (i) each Eurodollar Rate Loan shall bear interest on the outstanding principal amount thereof for each
Interest Period at a rate per annum equal to the Eurodollar Rate for such Interest Period plus the Applicable Rate; and (ii) each Base Rate Loan
shall bear interest on the outstanding principal amount thereof from the applicable borrowing date at a rate per annum equal to the Base Rate plus the
Applicable Rate. 

        (b)   If
any amount payable by the Borrower under any Loan Document is not paid when due (without regard to any applicable grace periods), whether at stated maturity, by
acceleration or otherwise, such amount shall thereafter bear interest at a fluctuating interest rate per annum at all times equal to the Default Rate to the fullest extent permitted by applicable
Laws. Furthermore, while any Event of Default exists, the Borrower shall pay interest on the principal amount of all outstanding Obligations hereunder at a fluctuating interest rate per annum at all
times equal to the Default Rate to the fullest extent permitted by applicable Laws. Accrued and unpaid interest on past due amounts (including interest on past due interest) shall be due and payable
upon demand. 

        (c)   Interest
on each Loan shall be due and payable in arrears on each Interest Payment Date applicable thereto and at such other times as may be specified herein. Interest
hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law. 

        2.08    Fees.    In addition to certain fees described in subsections (i) and (j) of  Section 2.03: 

        (a)   Commitment Fee. The Borrower shall pay to the Administrative Agent for the account of each Lender in accordance with its
Pro Rata Share, a commitment fee equal to the Applicable Rate times the actual daily amount by which the lesser of the Available Amount and the
Aggregate Commitments exceed the sum of (i) the Outstanding Amount of Loans and (ii) the Outstanding Amount of L/C Obligations. The commitment fee shall accrue at all times during the
Availability Period, including at any time during which one or more of the conditions in Article V is not met, and shall be due and payable
quarterly in arrears on the last Business Day of each March, June, September and December, commencing with the first such date to occur after the Closing Date, and on the Maturity Date. The commitment
fee shall be calculated quarterly in arrears, and if there is any change in the Applicable Rate during any quarter, the actual daily amount shall be computed and multiplied by the Applicable Rate
separately for each period during such quarter that such Applicable Rate was in effect. 

        (b)   Other Fees. (i) The Borrower shall pay to the Arranger and the Administrative Agent for their own respective
accounts fees in the amounts and at the times specified in the Fee Letter. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 

         (ii)  Without
duplication of the fees set forth in (i) above, the Borrower shall pay to the Lenders such fees, including but not limited to upfront fees, as shall have
been separately agreed 

28

 

upon
in writing in the amounts and at the times so specified. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever. 

        2.09    Computation of Interest and Fees.    All computations of interest for Base Rate Loans when the Base Rate is
determined by Bank of America's "prime rate" shall be made on the basis of a year of 365 or 366 days, as the case may be, and actual days elapsed. All other computations of fees and interest
shall be made on the basis of a 360-day year and actual days elapsed (which results in more fees or interest, as applicable, being paid than if computed on the basis of a
365-day year). Interest shall accrue on each Loan for the day on which the Loan is made, and shall not accrue on a Loan, or any portion thereof, for the day on which the Loan or such
portion is paid, provided that any Loan that is repaid on the same day on which it is made shall, subject to  Section 2.11(a), bear interest for one
day. 

        2.10    Evidence of Debt.    

        (a)   The
Credit Extensions made by each Lender shall be evidenced by one or more accounts or records maintained by such Lender and by the Administrative Agent in the ordinary
course of business. The accounts or records maintained by the Administrative Agent and each Lender shall be conclusive absent manifest error of the amount of the Credit Extensions made by the Lenders
to the Borrower and the interest and payments thereon. Any failure to so record or any error in doing so shall not, however, limit or otherwise affect the obligation of the Borrower hereunder to pay
any amount owing with respect to the Obligations. In the event of any conflict between the accounts and records maintained by any Lender and the accounts and records of the Administrative Agent in
respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. Upon the request of any Lender made through the Administrative Agent, the
Borrower shall execute and deliver to such Lender (through the Administrative Agent) a Note, which shall evidence such Lender's Loans in addition to such accounts or records. Each Lender may attach
schedules to its Note and endorse thereon the date, Type (if applicable), amount and maturity of its Loans and payments with respect thereto. 

        (b)   In
addition to the accounts and records referred to in subsection (a), each Lender and the Administrative Agent shall maintain in accordance with its usual practice
accounts or records evidencing the purchases and sales by such Lender of participations in Letters of Credit. In the event of any conflict between the accounts and records maintained by the
Administrative Agent and the accounts and records of any Lender in respect of such matters, the accounts and records of the Administrative Agent shall control in the absence of manifest error. 

        2.11    Payments Generally.    

        (a)   All
payments to be made by the Borrower shall be made without condition or deduction for any counterclaim, defense, recoupment or setoff. Except as otherwise expressly
provided herein, all payments by the Borrower hereunder shall be made to the Administrative Agent, for the account of the respective Lenders to which such payment is owed, at the Administrative
Agent's Office in Dollars and in immediately available funds not later than 2:00 p.m. on the date specified herein. The Administrative Agent will promptly distribute to each Lender its Pro Rata
Share (or other applicable share as provided herein) of such payment in like funds as received by wire transfer to such Lender's Lending Office. All payments received by the Administrative Agent after
2:00 p.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. 

        (b)   If
any payment to be made by the Borrower shall come due on a day other than a Business Day, payment shall be made on the next following Business Day, and such extension
of time shall be reflected in computing interest or fees, as the case may be. 

        (c)   Unless
the Borrower or any Lender has notified the Administrative Agent, prior to the date any payment is required to be made by it to the Administrative Agent
hereunder, that the Borrower or such Lender, as the case may be, will not make such payment, the Administrative Agent may assume 

29

 

that
the Borrower or such Lender, as the case may be, has timely made such payment and may (but shall not be so required to), in reliance thereon, make available a corresponding amount to the Person
entitled thereto. If and to the extent that such payment was not in fact made to the Administrative Agent in immediately available funds, then: 

          (i)  if
the Borrower failed to make such payment, each Lender shall forthwith on demand repay to the Administrative Agent the portion of such assumed payment that was made
available to such Lender in immediately available funds, together with interest thereon in respect of each day from and including the date such amount was made available by the Administrative Agent to
such Lender to the date such amount is repaid to the Administrative Agent in immediately available funds at the Federal Funds Rate from time to time in effect; and 

         (ii)  if
any Lender failed to make such payment, such Lender shall forthwith on demand pay to the Administrative Agent the amount thereof in immediately available funds,
together with interest thereon for the period from the date such amount was made available by the Administrative Agent to the Borrower to the date such amount is recovered by the Administrative Agent
(the "Compensation Period") at a rate per annum equal to the Federal Funds Rate from time to time in effect. If such Lender pays such amount to the
Administrative Agent, then such amount shall constitute such Lender's Loan included in the applicable Borrowing. If such Lender does not pay such amount forthwith upon the Administrative Agent's
demand therefor, the Administrative Agent may make a demand therefor upon the Borrower, and the Borrower shall pay such amount to the Administrative Agent, together with interest thereon for the
Compensation Period at a rate per annum equal to the rate of interest applicable to the applicable Borrowing. Such payments shall not be subject to the limitations set forth in  Section 2.04(a) and
shall not be deemed prepayments of Loans pursuant to Section 2.04.
Nothing herein shall be deemed to relieve any Lender from its obligation to fulfill its Commitment or to prejudice any rights which the Administrative Agent or the Borrower may have against any Lender
as a result of any default by such Lender hereunder. 

A
notice of the Administrative Agent to any Lender or the Borrower with respect to any amount owing under this subsection (c) shall be conclusive, absent manifest error. 

        (d)   If
any Lender makes available to the Administrative Agent funds for any Loan to be made by such Lender as provided in the foregoing provisions of this  Article II, and such funds are not made available
to the Borrower by the Administrative Agent because the conditions to the applicable Credit
Extension set forth in Article V are not satisfied or waived in accordance with the terms hereof, the Administrative Agent shall return such
funds (in like funds as received from such Lender) to such Lender, without interest. 

        (e)   The
obligations of the Lenders hereunder to make Loans and to fund participations in Letters of Credit are several and not joint. The failure of any Lender to make any
Loan or to fund any such participation on any date required hereunder shall not relieve any other Lender of its corresponding obligation to do so on such date, and no Lender shall be responsible for
the failure of any other Lender to so make its Loan or purchase its participation. 

        (f)    Nothing
herein shall be deemed to obligate any Lender to obtain the funds for any Loan in any particular place or manner or to constitute a representation by any Lender
that it has obtained or will obtain the funds for any Loan in any particular place or manner. 

        2.12    Sharing of Payments.    If, other than as expressly provided elsewhere herein, any Lender shall obtain on
account of the Loans made by it, or the participations in L/C Obligations held by it, any payment (whether voluntary, involuntary, through the exercise of any right of set-off, or
otherwise) in excess of its ratable share (or other share contemplated hereunder) thereof, such Lender shall immediately (a) notify the Administrative Agent of such fact, and
(b) purchase from the other Lenders 

30

 

such
participations in the Loans made by them and/or such subparticipations in the participations in L/C Obligations held by them, as the case may be, as shall be necessary to cause such purchasing
Lender to share the excess payment in respect of such Loans or such participations, as the case may be, pro rata with each of them; provided,  however, that
if all or any portion of such excess payment is thereafter recovered from the purchasing Lender under any of the circumstances described
in Section 11.06 (including pursuant to any settlement entered into by the purchasing Lender in its discretion), such purchase shall to that
extent be rescinded and each other Lender shall repay to the purchasing Lender the purchase price paid therefor, together with an amount equal to such paying Lender's ratable share (according to the
proportion of (i) the amount of such paying Lender's required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other amount paid or payable
by the purchasing Lender in respect of the total amount so recovered, without further interest thereon. The Borrower agrees that any Lender so purchasing a participation from another Lender may, to
the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off, but subject to  Section 11.09) with respect to such participation as fully as if such Lender
were the direct creditor of the Borrower in the amount of such
participation. The Administrative Agent will keep records (which shall be conclusive and binding in the absence of manifest error) of participations purchased under this Section and will in each case
notify the Lenders following any such purchases or repayments. Each Lender that purchases a participation pursuant to this Section shall from and after such purchase have the right to give all
notices, requests, demands, directions and other communications under this Agreement with respect to the portion of the Obligations purchased to the same extent as though the purchasing Lender were
the original owner of the Obligations purchased. 

        2.13    Extension of Maturity Date.    

        (a)   Not
earlier than 60 days prior to, nor later than 30 days prior to, August 15, 2003 the Borrower may, upon notice to the Administrative Agent (which
shall promptly notify the Lenders), request a one-year extension of the Maturity Date then in effect. The Maturity Date shall be automatically extended for a one-year period
following timely delivery of such extension notice if (i) on or prior to August 15, 2003, the Borrower delivers to the Administrative Agent the financial statements and certification
required pursuant to Section 7.01(b) with respect to the fiscal quarter of the Borrower and its Subsidiaries ended June 30, 2003, and
includes a Compliance Certificate evidencing a Consolidated Leverage Ratio determined as of June 30, 2003 for the four-quarter period then ended of less than 2.5 to 1.00,
(ii) as of August 15, 2003 no Default or Event of Default under this Agreement has occurred and is continuing, and (iii) as of August 15, 2003 there shall not have
occurred, in the reasonable judgment of the Administrative Agent, any material adverse change in the Numbering Line of Business of the Borrower. 

        (b)   This
Section shall supersede any provisions in Section 11.01 to the contrary. 

        2.14    Increase in Commitments.    

        (a)   Provided
there exists no Default and that previously there has not occurred any voluntary or mandatory reduction in the Aggregate Commitments, upon notice to the
Administrative Agent (which shall promptly notify the Lenders), the Borrower may, on a one-time basis, request an increase in the Aggregate Commitments by an amount such that, after giving
effect to any such increase, the Aggregate Commitments shall not exceed $25,000,000. At the time of sending such notice, the Borrower (in consultation with the Administrative Agent) shall specify the
time period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to the Lenders). Each Lender shall notify
the Administrative Agent within such time period whether or not it agrees to increase its Commitment and, if so, whether by an amount equal to, greater than, or less than its Pro Rata Share of such
requested increase. Any Lender not responding within such time period shall be deemed to have declined to increase its Commitment. The Administrative Agent shall notify the Borrower and each Lender of
the Lenders' responses to each request made hereunder. To achieve the full amount of a requested increase, the Borrower may also 

31

 

invite
one of AllFirst Bank or Wachovia Bank, N.A. to become Lenders pursuant to a joinder agreement in form and substance satisfactory to the Administrative Agent and its counsel. 

        (b)   If
the Aggregate Commitments are increased in accordance with this Section, the Administrative Agent and the Borrower shall determine the effective date (the
"Increase Effective Date") and the final allocation of such increase. The Administrative Agent shall promptly notify the Borrower and the Lenders of the
final allocation of such increase and the Increase Effective Date. As a condition precedent to such increase, the Borrower shall deliver to the Administrative Agent a certificate of each Loan Party
dated as of the Increase Effective Date (in sufficient copies for each Lender) signed by a Responsible Officer of such Loan Party (i) certifying and attaching the resolutions adopted by such
Loan Party approving or consenting to such increase, and (ii) in the case of the Borrower, certifying that, before and after giving effect to such increase, (A) the representations and
warranties contained in Article VI and the other Loan Documents are true and correct on and as of the Extension Effective Date, except to the
extent that such representations and warranties specifically refer to an earlier date, in which case they are true and correct as of such earlier date, and except that for purposes of this  Section 2.14, the representations and warranties contained in subsections (a) and (b) of  Section 6.05 shall be deemed to refer to the most recent statements furnished pursuant to subsections
(a) and (b), respectively, of
Section 7.01, and (B) no Default exists. The Borrower shall prepay any Loans outstanding on the Increase Effective Date (and pay any
additional amounts required pursuant to Section 3.05) to the extent necessary to keep the outstanding Loans ratable with any revised Pro Rata
Shares arising from any nonratable increase in the Commitments under this Section. 

        (c)   This
Section shall supersede any provisions in Sections 2.12 or 11.01 to
the contrary. 

 
 

ARTICLE III.
  TAXES, YIELD PROTECTION AND ILLEGALITY    
    

        3.01    Taxes.    

        (a)   Any
and all payments by the Borrower to or for the account of the Administrative Agent or any Lender under any Loan Document shall be made free and clear of and without
deduction for any and all present or future taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and all liabilities with respect thereto,  excluding, in the
case of the Administrative Agent and each Lender, taxes imposed on or measured by its overall net income, and franchise taxes imposed
on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under the Laws of which the Administrative Agent or such Lender, as the case may be, is organized or
maintains a lending office or by a jurisdiction as a result of a present, former or future connection of the Administrative Agent or such Lender, as the case may be, with such jurisdiction, other than
a connection resulting from or relating to the Loan Documents (all such non-excluded taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and
liabilities being hereinafter referred to as "Taxes"). If the Borrower shall be required by any Laws to deduct any Taxes from or in respect of any sum
payable under any Loan Document to the Administrative Agent or any Lender, (i) the sum payable shall be increased as necessary so that after making all required deductions (including deductions
applicable to additional sums payable under this Section), each of the Administrative Agent and such Lender receives an amount equal to the sum it would have received had no such deductions been made,
(ii) the Borrower shall make such deductions, (iii) the Borrower shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable
Laws, and (iv) within 30 days after the date of such payment, the Borrower shall furnish to the Administrative Agent (which shall forward the same to such Lender) the original or a
certified copy of a receipt evidencing payment thereof. 

        (b)   In
addition, the Borrower agrees to pay any and all present or future stamp, court or documentary taxes and any other excise or property taxes or charges or similar
levies which arise from any payment made under any Loan Document or from the execution, delivery, performance, 

32

 

enforcement
or registration of, or otherwise with respect to, any Loan Document (hereinafter referred to as "Other Taxes"). 

        (c)   If
the Borrower shall be required to deduct or pay any Taxes or Other Taxes from or in respect of any sum payable under any Loan Document to the Administrative Agent or
any Lender, the Borrower shall also pay to the Administrative Agent or to such Lender, as the case may be, at the time interest is paid, such additional amount that the Administrative Agent or such
Lender specifies is necessary to preserve the after-tax yield (after factoring in all taxes, including taxes imposed on or measured by net income) that the Administrative Agent or such
Lender would have received if such Taxes or Other Taxes had not been imposed. 

        (d)   The
Borrower agrees to indemnify the Administrative Agent and each Lender for (i) the full amount of Taxes and Other Taxes (including any Taxes or Other Taxes
imposed or asserted by any jurisdiction on amounts payable under this Section) paid by the Administrative Agent and such Lender, (ii) amounts payable under  Section 3.01(c) and (iii) any
liability (including additions to tax, penalties, interest and expenses) arising therefrom or with respect
thereto, in each case whether or not such Taxes or Other Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. Payment under this subsection (d) shall be
made within 30 days after the date the Lender or the Administrative Agent makes a demand therefor, which demand shall be accompanied by a calculation in reasonable detail supporting such
demand. 

        3.02    Illegality.    If any Lender determines that any Law has made it unlawful, or that any Governmental Authority
has asserted that it is unlawful, for any Lender or its applicable Lending Office to make, maintain or fund Eurodollar Rate Loans, or to determine or charge interest rates based upon the Eurodollar
Rate, then, on notice thereof by such Lender to the Borrower through the Administrative Agent, any obligation of such Lender to make or continue Eurodollar Rate Loans or to convert Base Rate Loans to
Eurodollar Rate Loans shall be suspended until such Lender notifies the Administrative Agent and the Borrower that the circumstances giving rise to such determination no longer exist. Upon receipt of
such notice, the Borrower shall, upon demand from such Lender (with a copy to the Administrative Agent), prepay or, if applicable, convert all Eurodollar Rate Loans of such Lender to Base Rate Loans,
either on the last day of the Interest Period therefor, if such Lender may lawfully continue to maintain such Eurodollar Rate Loans to such day, or immediately, if such Lender may not lawfully
continue to maintain such Eurodollar Rate Loans. Upon any such prepayment or conversion, the Borrower shall also pay accrued interest on the amount so prepaid or converted. Each Lender agrees to
designate a different Lending Office if such designation will avoid the need for such notice and will not, in the good faith judgment of such Lender, otherwise be materially disadvantageous to such
Lender. 

        3.03    Inability to Determine Rates.    If the Required Lenders determine that for any reason adequate and reasonable
means do not exist for determining the Eurodollar Base Rate for any requested Interest Period with respect to a proposed Eurodollar Rate Loan, or that the Eurodollar Base Rate for any requested
Interest Period with respect to a proposed Eurodollar Rate Loan does not adequately and fairly reflect the cost to such Lenders of funding such Loan, the Administrative Agent will promptly so notify
the Borrower and each Lender. Thereafter, the obligation of the Lenders to make or maintain Eurodollar Rate Loans shall be suspended until the Administrative Agent (upon the instruction of the
Required Lenders) revokes such notice. Upon receipt of such notice, the Borrower may revoke any pending request for a Borrowing of, conversion to or continuation of Eurodollar Rate Loans or, failing
that, will be deemed to have converted such request into a request for a Borrowing of Base Rate Loans in the amount specified therein. 

        3.04    Increased Cost and Reduced Return; Capital Adequacy.    

        (a)   If
any Lender determines that as a result of the introduction of or any change in or in the interpretation of any Law, or such Lender's compliance therewith, there shall
be any increase in the 

33

 

cost
to such Lender of agreeing to make or making, funding or maintaining Eurodollar Rate Loans or (as the case may be) issuing or participating in Letters of Credit, or a reduction in the amount
received or receivable by such Lender in connection with any of the foregoing (excluding for purposes of this subsection (a) any such increased costs or reduction in amount resulting from
(i) Taxes or Other Taxes (as to which Section 3.01shall govern), (ii) changes in the basis of taxation of overall net income or
overall gross income by the United States or any foreign jurisdiction or any political subdivision of either thereof under the Laws of which such Lender is organized or has its Lending Office, and
(iii) reserve requirements utilized in the determination of the Eurodollar Rate), then from time to time upon demand of such Lender (accompanied by a calculation in reasonable detail supporting
such demand and with a copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will compensate such Lender for such increased cost or
reduction. 

        (b)   If
any Lender determines that the introduction of any Law regarding capital adequacy or any change therein or in the interpretation thereof, or compliance by such Lender
(or its Lending Office) therewith, has the effect of reducing the rate of return on the capital of such Lender or any corporation controlling such Lender as a consequence of such Lender's obligations
hereunder (taking into consideration its policies with respect to capital adequacy and such Lender's desired return on capital), then from time to time upon demand of such Lender (accompanied by a
calculation in reasonable detail supporting such demand and with a copy of such demand to the Administrative Agent), the Borrower shall pay to such Lender such additional amounts as will compensate
such Lender for such reduction. 

        3.05    Funding Losses.    Upon demand of any Lender (with a copy to the Administrative Agent) from time to time, the
Borrower shall promptly compensate such Lender for and hold such Lender harmless from any loss, cost or expense incurred by it as a result of: 

        (a)   any
continuation, conversion, payment or prepayment (other than pursuant to Section 2.11(c) or 3.02) of any Loan
other than a Base Rate Loan on a day other than the last day of the Interest Period for such Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); or 

        (b)   any
failure by the Borrower (for a reason other than the failure of such Lender to make a Loan) to prepay, borrow, continue or convert any Loan other than a Base Rate
Loan on the date or in the amount notified by the Borrower; 

including
any loss of anticipated profits and any loss or expense arising from the liquidation or reemployment of funds obtained by it to maintain such Loan or from fees payable to terminate the
deposits from which such funds were obtained. The Borrower shall also pay any customary administrative fees charged by such Lender in connection with the foregoing. 

        For
purposes of calculating amounts payable by the Borrower to the Lenders under this Section 3.05, each Lender shall be deemed to
have funded each Eurodollar Rate Loan made by it at the Eurodollar Base Rate used in determining the Eurodollar Rate for such Loan by a matching deposit or other borrowing in the London interbank
eurodollar market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Loan was in fact so funded. 

        3.06    Matters Applicable to All Requests for Compensation.    A certificate of the Administrative Agent or any
Lender claiming compensation under this Article III and setting forth the additional amount or amounts to be paid to it hereunder and in
reasonable detail the calculation thereof shall be conclusive in the absence of manifest error. In determining such amount, the Administrative Agent or such Lender may use any reasonable averaging and
attribution methods. 

        3.07    Survival.    All of the Borrower's obligations under this  Article III shall survive termination of the Aggregate
Commitments and repayment of all other Obligations hereunder. 

34

  

 
 

ARTICLE IV.
  SECURITY    
    

        4.01    Security.    As security for the full and timely payment and performance of all Obligations, the Borrower
shall, and shall cause all other Loan Parties to, on or before the Closing Date, do or cause to be done all things reasonably necessary in the opinion of the Administrative Agent and its counsel to
grant to the Administrative Agent for the benefit of the Secured Parties a duly perfected first priority security interest in all Collateral subject to no prior Lien or other encumbrance or
restriction on transfer except as expressly permitted hereunder. Without limiting the foregoing, on the Closing Date the Borrower shall deliver, and shall cause each of its Subsidiaries having rights
in any Subsidiary Securities to deliver, to the Administrative Agent, in form and substance reasonably acceptable to the Administrative Agent, (A) in the event such Subsidiary has rights in any
Subsidiary Securities of a Domestic Subsidiary or Direct Foreign Subsidiary, (i) the Pledge Agreement which shall pledge to the Administrative Agent for the benefit of the Secured Parties the
Pledged Interests of each Domestic Subsidiary and Direct Foreign Subsidiary, and (ii) if such Pledged Interests are in the form of certificated securities, such certificated securities,
together with undated stock powers or other appropriate transfer documents endorsed in blank pertaining thereto, (B) the Security Agreement, (C) Uniform Commercial Code financing
statements, in form, substance and number as requested by the Administrative Agent, reflecting the Lien in favor of the Secured Parties on the Pledged Interests and all other Collateral,
(D) documents in form, substance and number as requested by the Administrative Agent for filing with the Federal Patent and Trademark Office, the Federal Copyright Office, or such other places
as reasonably requested by the Administrative Agent, reflecting the Lien in favor of the Secured Parties in the trademarks, patents, copyrights and other intellectual property, if any, and
(E) Qualifying Control Agreements (as defined in the Security Agreement) as provided in the Security Agreement. In addition, and without limiting the foregoing, the Borrower shall take and
cause the Guarantors to take such further action, and deliver or cause to be delivered such further documents, as required by the Security Instruments or otherwise as the Administrative Agent may
reasonably request to effect the transactions contemplated by this Article IV and each of the Security Instruments. The Borrower shall also, and
shall cause each Subsidiary (other than NeuLevel) to also, pledge to the Administrative Agent for the benefit of the Secured Parties (and as appropriate to reaffirm its prior pledge of) all of the
Pledged Interests of any Domestic Subsidiary or Direct Foreign Subsidiary acquired or created after the Closing Date, or otherwise acquired by any Subsidiary and not theretofore pledged to the
Administrative Agent for the benefit of the Secured Parties, and to deliver to the Administrative Agent all of the documents and instruments in connection therewith as are required pursuant to the
terms of Section 7.12 and of the Security Instruments. 

        4.02    Further Assurances.    At the request of the Administrative Agent from time to time, the Borrower will or will
cause all other Loan Parties, as the case may be, to execute, by their respective Responsible Officers, alone or with the Administrative Agent, any certificate, instrument, financing statement,
control agreement, statement or document, or to procure any such certificate, instrument, statement or document, or to take such other action (and pay all connected costs) which the Administrative
Agent reasonably deems necessary from time to time to create, continue or preserve the Liens in Collateral (and the perfection and priority thereof) of the Administrative Agent contemplated hereby and
by the other Loan Documents and specifically including all Collateral acquired by the Borrower or other Loan Party after the Closing Date and all Collateral moved to or from time to time located at
locations owned by third parties, including without limitation all leased locations, bailees, warehousemen and third party processors. The Administrative Agent is hereby irrevocably authorized to
execute and file or cause to be filed, with or if permitted by applicable law without the signature of the Borrower or any Loan Party appearing thereon, all Uniform Commercial Code financing
statements reflecting the Borrower or any other Loan Party as "debtor" and the Administrative Agent as "secured party", and continuations thereof and amendments thereto, as the Administrative Agent
reasonably 

35

 

deems
necessary or advisable to give effect to the transactions contemplated hereby and by the other Loan Documents. 

        4.03    Information Regarding Collateral.    The Borrower represents, warrants and covenants that: 

        (a)   the
exact legal name, jurisdiction of formation and chief executive office of the Borrower and each other Person providing Collateral pursuant to a Security Instrument
(each, a "Grantor") at the Closing Date, along with each location in which goods constituting Collateral are currently located, whether owned, leased or
third-party locations (together with the name of each owner of the property located at such address if not the applicable Grantor, and a summary description of the relationship between the applicable
Grantor and such Person), are specified on Schedule 4.03; 

        (b)   other
than as provided in (a) above, with respect to each Grantor Schedule 4.03 contains a true and
complete list of (i) each exact legal name, jurisdiction of formation, and each location of the chief executive office of such Grantor at any time since July 1, 1997, (ii) each
location owned or leased by a Grantor in which goods constituting Collateral are or have been located since July 1, 1997 (together with the name of each owner of the property located at such
address if not the applicable Grantor), and (iii) each trade name, trademark or other trade style used by such Grantor since July 1, 1997 and the purposes for which it was used; and 

        (c)   with
respect to each Person (other than a Grantor) that has effected any merger or consolidation with a Grantor or contributed or transferred to a Grantor any property
constituting Collateral at any time since July 1, 1997 (excluding Persons making sales in the ordinary course of their businesses to a Grantor of property constituting inventory in the hands of
such seller), Schedule 4.03 contains a true and complete list of the exact legal name, jurisdiction of formation and each address of each such
Person at the time such merger, consolidation, contribution or transfer occurred. 

The
Borrower further covenants that it shall not change, and shall not permit any other Grantor to change, its name, jurisdiction of formation (whether by reincorporation, merger or otherwise), the
location of its chief executive office, or use or permit any other Grantor to use, any additional trade name, trademark or other trade style, except upon giving not less than thirty (30) days'
prior written notice to the Administrative Agent and taking or causing to be taken all such action at the Borrower's or such other Grantor's expense as may be reasonably requested by the
Administrative Agent to perfect or maintain the perfection of the Lien of the Administrative Agent in Collateral. 

 
 

ARTICLE V.
  CONDITIONS PRECEDENT TO CREDIT EXTENSIONS    
    

        5.01    Conditions of Initial Credit Extension.    The obligation of each Lender to make its initial Credit Extension
hereunder is subject to satisfaction or waiver of the following conditions precedent: 

        (a)   The
Administrative Agent's receipt of the following, each of which shall be originals or facsimiles (followed promptly by originals) unless otherwise specified, each
properly executed by a Responsible Officer of the signing Loan Party, each dated the Closing Date (or, in the case of certificates of governmental officials, a recent date before the Closing Date) and
each in form and substance reasonably satisfactory to the Administrative Agent and its legal counsel: 

          (i)  executed
counterparts of this Agreement, the Security Agreement, the Pledge Agreement and the Lockbox Account Agreement, sufficient in number for distribution to the
Administrative Agent, each Lender and the Borrower; 

         (ii)  a
Note executed by the Borrower in favor of each Lender requesting a Note; 

        (iii)  such
certificates of resolutions or other action, incumbency certificates and/or other certificates of Responsible Officers of the Borrower as the Administrative Agent
may require 

36

 

evidencing
the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this Agreement and the other Loan Documents to which
the Borrower is a party; 

        (iv)  such
documents and certifications as the Administrative Agent may reasonably require to evidence that the Borrower is duly organized or formed, and that the Borrower
and each of its Subsidiaries is validly existing, in good standing and qualified to engage in business in each jurisdiction where its ownership, lease or operation of properties or the conduct of its
business requires such qualification, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; 

         (v)  an
opinion of Kramer Levin Naftalis & Frankel LLP, counsel to the Loan Parties, addressed to the Administrative Agent and each Lender, substantially in the form
attached as Exhibit F; 

        (vi)  a
certificate signed by a Responsible Officer of each Loan Party certifying that except as has been obtained as of the Closing Date, no approval, consent, exemption,
authorization, or other action by (other than in the case of enforcement, a court order), or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in
connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any other Loan Document, and such consents, licenses and approvals previously
obtained are in full force and effect; 

       (vii)  a
certificate signed by a Responsible Officer of the Borrower certifying that, except as disclosed to the Administrative Agent in writing, (A) the conditions
specified in Sections 5.02(a) and (b) have been satisfied, (B) there has been no event or
circumstance since the date of the Audited Financial Statements that has had or would be reasonably expected to have, either individually or in the aggregate, a Material Adverse Effect, and
(C) there is no action, suit, investigation or proceeding pending or, to his knowledge after reasonable investigation, threatened in any court or before any arbitrator or Governmental Authority
that would reasonably be expected (y) to materially and adversely affect the Borrower and its Subsidiaries, or (z) to affect any transaction contemplated hereby or the ability of the
Borrower and its Subsidiaries or any other Loan Party to perform their respective obligations under the Loan Documents; 

      (viii)  a
certificate signed by a Responsible Officer of the Borrower certifying that Consolidated EBITDA is greater than zero for the month ending June 30, 2002,
including a calculation to the reasonable satisfaction of the Administrative Agent of such Consolidated EBITDA; 

        (ix)  a
certificate signed by a Responsible Officer of the Borrower demonstrating compliance as of the Closing Date with the financial covenants contained in  Section 8.11, substantially in the form of
Exhibit C; 

         (x)  evidence
that all insurance required to be maintained pursuant to the Loan Documents has been obtained and is in effect; 

        (xi)  receipt
by the Administrative Agent of the consolidated financial statements of the Borrower and its Subsidiaries for the fiscal years ended December 31, 1999,
2000 and 2001, including balance sheet, income and cash flow statements audited by an independent certified public accountant of nationally recognized standing reasonably acceptable to the Required
Lenders and prepared in conformity with GAAP and such other financial information as the Administrative Agent may reasonably request; 

       (xii)  evidence
that the Existing Credit Agreement has been or concurrently with the Closing Date is being terminated and all Liens securing obligations under the Existing
Credit Agreement have been or concurrently with the Closing Date are being released; 

37

 

      (xiii)  Uniform
Commercial Code search results showing only those Liens as are acceptable to the Lenders; 

      (xiv)  receipt
and review, with results reasonably satisfactory to the Administrative Agent and its counsel, of (A) information regarding litigation, tax, accounting,
labor, insurance, pension liabilities (actual or contingent), real estate leases, material contracts, debt agreements, property ownership, environmental matters, contingent liabilities and management,
if any, of the Borrower and its Subsidiaries and (B) the December 31, 2001 audit report by Ernst & Young covering the Borrower's accounts receivable, inventory and payables and
the controls and systems of the Borrower and its Subsidiaries along with any final management letter or other report submitted to the Borrower by Ernst & Young in connection with such audit; 

       (xv)  receipt
by the Administrative Agent of (A) such waivers or amendments to any of the documents pertaining to the SOW Receivables Securitization as may be deemed
necessary by the Administrative Agent in connection with the rights of the Lenders in and to the Collateral and (B) the Intercreditor Agreement; 

      (xvi)  copies
of the SOW Receivables Securitization Documents, the NeuStar Stockholders' Agreement, the NeuLevel Stockholders' Agreement and the Lockheed Note, certified by a
Responsible Officer of the Borrower, to be true, correct and complete copies of such documents as in effect on the Closing Date; 

     (xvii)  evidence
reasonably satisfactory to the Administrative Agent that (A) the Consolidated EBITDA loss of the Borrower, excluding the Numbering Line of Business,
for the quarter ended June 30, 2002 shall not have been greater than $8,500,000 and (B) the LNP Contract is in full force and effect; 

    (xviii)  receipt
by the Administrative Agent of the original LNP Receivables Tracking Certificate, duly endorsed in blank or with such other instruments of transfer as are
acceptable to the Administrative Agent; 

      (xix)  receipt
by the Administrative Agent of a reliance letter in form and substance reasonably satisfactory to the Administrative Agent with respect to the legal opinion of
Thacher Proffitt & Wood regarding the bankruptcy remote status of NeuStar Funding; 

       (xx)  evidence
of the filing of Uniform Commercial Code financing statements reflecting the filing in all places required by applicable law to perfect the Liens of the
Administrative Agent under the Security Instruments as a first priority Lien as to items of Collateral in which a security interest may be perfected by the filing of financing statements, and such
other documents and/or evidence of other actions as may be necessary under applicable law to perfect the Liens of the Administrative Agent under the Security Instruments as a first priority Lien in
and to such other Collateral as the Administrative Agent may require, including without limitation the delivery by the Borrower of all stock certificates evidencing Pledged Interests, accompanied in
each case by duly executed stock powers (or other appropriate transfer documents) in blank affixed thereto; 

      (xxi)  evidence
of the consent of North American Portability Management LLC as to the Lien on the LNP Receivables granted in favor of the Administrative Agent pursuant to the
Security Agreement; 

     (xxii)  such
other assurances, certificates, documents, consents or opinions as the Administrative Agent, the L/C Issuer or the Required Lenders reasonably may require. 

        (b)   Any
fees required to be paid on or before the Closing Date shall have been paid. 

        (c)   Unless
waived by the Administrative Agent, the Borrower shall have paid all Attorney Costs of the Administrative Agent to the extent invoiced prior to or on the Closing
Date, plus such 

38

 

additional
amounts of Attorney Costs as shall constitute its reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing proceedings (provided that such estimate shall
not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent). 

        5.02    Conditions to all Credit Extensions.    The obligation of each Lender to honor any Request for Credit
Extension (other than a Loan Notice requesting only a conversion of Loans to another Type, or a continuation of Eurodollar Rate Loans) is subject to the following conditions precedent: 

        (a)   the
representations and warranties of the Borrower and each other Loan Party contained in Article VI or any other
Loan Document shall be true and correct on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which
case they shall be true and correct as of such earlier date, and except that for purposes of this Section 5.02, the representations and
warranties contained in subsections (a) and (b) of Section 6.05 shall be deemed to refer to the most recent statements furnished
pursuant to clauses (a) and (b), respectively, of Section 7.01; 

        (b)   no
Default shall exist, or would result from such proposed Credit Extension; and 

        (c)   the
Administrative Agent and, if applicable, the L/C Issuer shall have received a Request for Credit Extension in accordance with the requirements hereof. 

        Each
Request for Credit Extension (other than a Loan Notice requesting only a conversion of Loans to the other Type or a continuation of Eurodollar Rate Loans) submitted by the Borrower
shall be deemed to be a representation and warranty that the conditions specified in Sections 5.02(a) and  (b) have been satisfied on and as of the date of
the applicable Credit Extension. 

 
 

ARTICLE VI.
  REPRESENTATIONS AND WARRANTIES    
    

        The Borrower represents and warrants to the Administrative Agent and the Lenders that: 

        6.01    Existence, Qualification and Power; Compliance with Laws.    Each Loan Party (a) is a corporation,
partnership or limited liability company duly organized or formed, validly existing and in good standing under the Laws of the jurisdiction of its incorporation or organization, (b) has all
requisite corporate power and authority and all requisite governmental licenses, authorizations, consents and approvals to (i) own its assets and carry on its business and (ii) execute,
deliver and perform its obligations under the Loan Documents to which it is a party, (c) is duly qualified and is licensed and in good standing under the Laws of each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business requires such qualification or license, and (d) is in compliance with all Laws; except in each case referred to in
clause (b)(i), (c) or (d), to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect. 

        6.02    Authorization; No Contravention.    The execution, delivery and performance by each Loan Party of each Loan
Document to which such Person is party, have been duly authorized by all necessary corporate or other organizational action, and do not (a) contravene the terms of any of such Person's
Organization Documents; (b) conflict with or result in any breach or contravention of, or the creation of any Lien (other than Liens incurred under the Loan Documents) under, (i) any
Contractual Obligation to which such Person is a party or (ii) any order, injunction, writ or decree of any Governmental Authority or any arbitral award to which such Person or its property is
subject; or (c) violate any Law binding upon the Borrower, except where any such conflict, contravention or violation would not reasonably be expected to have a Material Adverse Effect. 

        6.03    Governmental Authorization; Other Consents.    Except as shall have been obtained, no approval, consent,
exemption, authorization, or other action by (other than in the case of enforcement, 

39

 

a
court order), or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement
against, any Loan Party of this Agreement or any other Loan Document. 

        6.04    Binding Effect.    This Agreement has been, and each other Loan Document, when delivered hereunder, will have
been, duly executed and delivered by each Loan Party that is party thereto. This Agreement constitutes, and each other Loan Document when so delivered will constitute, a legal, valid and binding
obligation of such Loan Party, enforceable against each Loan Party that is party thereto in accordance with its terms, subject to any applicable bankruptcy, insolvency or other similar laws affecting
the enforcement of creditors' rights and secured parties generally, and subject to general principles of equity. 

        6.05    Financial Statements; No Material Adverse Effect.    

        (a)   The
Audited Financial Statements (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise
expressly noted therein; (ii) fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their results of operations for the
period covered thereby in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein; and (iii) show all material indebtedness
and other liabilities, direct or contingent, of the Borrower and its Subsidiaries as of the date thereof that are required in accordance with GAAP to be set forth on a balance sheet or in the notes
thereto, including liabilities for taxes, material commitments and Indebtedness. 

        (b)   The
unaudited consolidated financial statements of the Borrower and its Subsidiaries dated March 31, 2002, and the related consolidated statements of income or
operations, shareholders' equity and cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby,
except as otherwise expressly noted therein, and (ii) fairly present in all material respects the financial condition of the Borrower and its Subsidiaries as of the date thereof and their
results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.  Schedule 6.05 sets
forth all material indebtedness and other material liabilities, direct or contingent, of the Borrower and its consolidated
Subsidiaries as of the date of such financial statements, including liabilities for taxes, material commitments and Indebtedness. 

        (c)   Since
the date of the Audited Financial Statements, there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be
expected to have a Material Adverse Effect. 

        6.06    Litigation.    Except as disclosed in Schedule 6.06,
there are no actions, suits, proceedings, claims or disputes pending or, to the knowledge of the Borrower after reasonable investigation, threatened, at law, in equity, in arbitration or before any
Governmental Authority, by or against the Borrower or any of its Subsidiaries or against any of their properties or revenues that (a) purport to affect or pertain to this Agreement or any other
Loan Document, or any of the transactions contemplated hereby, or (b) either individually or in the aggregate, if determined adversely, would reasonably be expected to have a Material Adverse
Effect. 

        6.07    No Default.    Neither the Borrower nor any Subsidiary is in default under or with respect to any Contractual
Obligation that would, either individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. No Default has occurred and is continuing or would result from the
consummation of the transactions contemplated by this Agreement or any other Loan Document. 

        6.08    Ownership of Property; Liens.    Each of the Borrower and each Subsidiary has good record and marketable title
in fee simple to, or valid leasehold interests in, all real property necessary or used in the ordinary conduct of its business, except for such defects in title as would not, individually or in 

40

 

the
aggregate, reasonably be expected to have a Material Adverse Effect. The property of the Borrower and its Subsidiaries is subject to no Liens, other than Liens permitted by  Section 8.01.

        6.09    Environmental Compliance.    The Borrower and its Subsidiaries are in compliance with all applicable
Environmental Laws in all material respects. 

        6.10    Insurance.    The properties of the Borrower and its Subsidiaries are insured with financially sound and
reputable insurance companies not Affiliates of the Borrower, in such amounts with such deductibles and covering such risks as are customarily carried by companies engaged in similar businesses and
owning similar properties in localities where the Borrower or the applicable Subsidiary operates. 

        6.11    Taxes.    The Borrower and its Subsidiaries have filed all Federal, state and other material tax returns and
reports required to be filed, and have paid all Federal, state and other material taxes, assessments, fees and other governmental charges levied or imposed upon them or their properties, income or
assets otherwise due and payable, except those which are being contested in good faith by appropriate proceedings diligently conducted and for which adequate reserves have been provided in accordance
with GAAP. There is no proposed tax assessment against the Borrower or any Subsidiary that would, if made, have a Material Adverse Effect. 

        6.12    ERISA Compliance.    

        (a)   Each
Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other Federal or state Laws. Each Plan that is intended to
qualify under Section 401(a) of the Code has received a favorable determination letter from the IRS or an application for such a letter is currently being processed by the IRS with respect
thereto and, to the best knowledge of the Borrower, nothing has occurred which would prevent, or cause the loss of, such qualification. The Borrower and each ERISA Affiliate have made all required
contributions to each Plan subject to Section 412 of the Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 412 of the Code has
been made with respect to any Plan. 

        (b)   There
are no pending or, to the best knowledge of the Borrower, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan
that would be reasonably be expected to have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary responsibility rules with respect to any Plan that has
resulted or would reasonably be expected to result in a Material Adverse Effect. 

        (c)   (i) No
ERISA Event has occurred or is reasonably expected to occur; (ii) no Pension Plan has any Unfunded Pension Liability; (iii) neither the
Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability under Title IV of ERISA with respect to any Pension Plan (other than premiums due and not delinquent under
Section 4007 of ERISA); (iv) neither the Borrower nor any ERISA Affiliate has incurred, or reasonably expects to incur, any liability (and no event has occurred which, with the giving of
notice under Section 4219 of ERISA, would result in such liability) under Sections 4201 or 4243 of ERISA with respect to a Multiemployer Plan; and (v) neither the Borrower nor any ERISA
Affiliate has engaged in a transaction that could be subject to Sections 4069 or 4212(c) of ERISA. 

        6.13    Subsidiaries.    The Borrower has no Subsidiaries other than those specifically disclosed in Part (a)
of Schedule 6.13 and has no equity investments in any other corporation or entity other than those specifically disclosed in Part (b) of  Schedule 6.13. 

        6.14    Margin Regulations; Investment Company Act; Public Utility Holding Company Act.    

        (a)   The
Borrower is not engaged and will not engage, principally or as one of its important activities, in the business of purchasing or carrying margin stock (within the
meaning of Regulation U issued by the FRB), or extending credit for the purpose of purchasing or carrying margin stock. 

41

 

        (b)   None
of the Borrower, any Person Controlling the Borrower, or any Subsidiary (i) is a "holding company," or a "subsidiary company" of a "holding company," or an
"affiliate" of a "holding company" or of a "subsidiary company" of a "holding company," within the meaning of the Public Utility Holding Company Act of 1935, or (ii) is or is required to be
registered as an "investment company" under the Investment Company Act of 1940. 

        6.15    Disclosure.    The Borrower has disclosed to the Administrative Agent and the Lenders all agreements,
instruments and corporate or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the aggregate, would reasonably be
expected to result in a Material Adverse Effect. No report, financial statement, certificate or other information furnished in writing by or on behalf of any Loan Party to the Administrative Agent or
any Lender in connection with the transactions contemplated hereby and the negotiation of this Agreement or delivered hereunder (as modified or supplemented by other information so furnished and taken
as a whole) contains any material misstatement of fact or omits to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not
misleading; provided that, with respect to projected financial information, the Borrower represents only that such information was prepared in good
faith based upon assumptions believed to be reasonable at the time. 

        6.16    Compliance with Laws.    Each of the Borrower and each Subsidiary is in compliance in all material respects
with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement of Law or order,
writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or (b) the failure to comply therewith, either individually or in the aggregate,
would not reasonably be expected to have a Material Adverse Effect. 

        6.17    Intellectual Property; Licenses, Etc.    The Borrower and its Subsidiaries own, or possess the right to use,
all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises,
licenses and other intellectual property rights (collectively, "IP Rights") that are reasonably necessary for the operation of their respective
businesses, without conflict with the rights of any other Person. To the best knowledge of the Borrower, no slogan or other advertising device, product, process, method, substance, part or other
material now employed, or now contemplated to be employed, by the Borrower or any Subsidiary infringes upon any rights held by any other Person. No claim or litigation regarding any of the foregoing
is pending or, to the knowledge of the Borrower, threatened, which, either individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 

 
 

ARTICLE VII.
  AFFIRMATIVE COVENANTS    
    

        So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, the Borrower shall, and shall (except in the case of the covenants set forth in Sections 7.01,  7.02, 7.03 and 7.11) cause each Subsidiary to: 

        7.01    Financial Statements.    Deliver to the Administrative Agent and each Lender, in form and detail reasonably
satisfactory to the Administrative Agent and the Required Lenders: 

        (a)   as
soon as available, but in any event within 120 days after the end of each fiscal year of the Borrower, a consolidated balance sheet of the Borrower and its
Subsidiaries as at the end of such fiscal year, and the related consolidated statements of income or operations, shareholders' equity and cash flows, as well as line of business level income
statements (down to the EBITDA line), for such fiscal year, setting forth in each case in comparative form the figures for the previous fiscal year, all in reasonable detail and prepared in accordance
with GAAP, audited and accompanied by a report and opinion of an independent certified public accountant of nationally recognized standing reasonably 

42

 

acceptable
to the Required Lenders, which report and opinion shall be prepared in accordance with generally accepted auditing standards and shall not be subject to any "going concern" or like
qualification or exception or any qualification or exception as to the scope of such audit; 

        (b)   as
soon as available, but in any event within 45 days after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, a consolidated
balance sheet of the Borrower and its Subsidiaries as at the end of such fiscal quarter, and the related consolidated statements of income or operations, and cash flows, as well as line of business
level income statements (down to the EBITDA line), for such fiscal quarter and for the portion of the Borrower's fiscal year then ended, setting forth in each case in comparative form the figures for
the corresponding fiscal quarter of the previous fiscal year and the corresponding portion of the previous fiscal year, all in reasonable detail and certified by a Responsible Officer of the Borrower
as fairly presenting in all material respects the financial condition, results of operations, and cash flows of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal
year-end audit adjustments and the absence of footnotes; and 

        (c)   as
soon as available, but in any event within 20 days after the end of each of the first eleven months of each fiscal year of the Borrower, a consolidated balance
sheet of the Borrower and its Subsidiaries as at the end of such month, and the related consolidated statements of income or operations and cash flows for such month and for the portion of the
Borrower's fiscal year then ended, setting forth in each case in comparative form the figures for the corresponding month of the previous fiscal year and the corresponding portion of the previous
fiscal year, all in reasonable detail and certified by a Responsible Officer of the Borrower as fairly presenting in all material respects the financial condition, results of operations and cash flows
of the Borrower and its Subsidiaries in accordance with GAAP, subject only to normal year-end audit adjustments and the absence of footnotes. 

        As
to any information contained in materials furnished pursuant to Section 7.02(e), the Borrower shall not be separately required
to furnish such information under clause (a), (b) or (c) above, but the foregoing shall not be in derogation of the obligation of the Borrower to furnish the information and
materials described in subsections (a), (b) and (c) above at the times specified therein. 

        7.02    Certificates; Other Information.    Deliver to the Administrative Agent and each Lender, in form and detail
reasonably satisfactory to the Administrative Agent and the Required Lenders: 

        (a)   concurrently
with the delivery of the financial statements referred to in Section 7.01(a), (i) annual projections as to the Borrower's annual consolidated
balance sheet, income statement and statement of cash flow and quarterly consolidated and line of business level income statements, with such annual projections relating to the following
three-year period and such quarterly projections relating to the following two-year period and (ii) a certificate of its independent certified public accountants
certifying such financial statements and stating that in making the examination necessary therefor no knowledge was obtained of any Default under the financial covenants set forth herein or, if any
such Default shall exist, stating the nature and status of such event; 

        (b)   concurrently
with the delivery of the financial statements referred to in Sections 7.01(a) and  (b), a duly completed Compliance Certificate signed by a Responsible
Officer of the Borrower; 

        (c)   concurrently
with the delivery of the financial statements referred to in Section 7.01(c), a certificate executed
by a Responsible Officer of the Borrower in the form of Exhibit G attached hereto, to the effect that no Default or Event of Default exists or
has occurred, or, if a Default or an Event of Default exists or has occurred, specifying the nature and period of existence thereof; 

        (d)   promptly
after any request by the Administrative Agent or any Lender, copies of any detailed audit reports, management letters or recommendations submitted to the board
of directors (or the audit committee of the board of directors) of the Borrower by independent accountants in connection with the accounts or books of the Borrower or any Subsidiary, or any audit of
any of them; 

43

 

        (e)   promptly
after the same are available, copies of each annual report, proxy or financial statement or other report or communication sent to the stockholders of the
Borrower, and copies of all annual, regular, periodic and special reports and registration statements which the Borrower may file or be required to file with the SEC under Section 13 or 15(d)
of the Securities Exchange Act of 1934, and not otherwise required to be delivered to the Administrative Agent pursuant hereto; 

        (f)    promptly,
such additional information regarding the business, financial or corporate affairs of the Borrower or any Subsidiary, or compliance with the terms of the Loan
Documents, as the Administrative Agent or any Lender may from time to time reasonably request in writing; and 

        (g)   promptly
upon request by the Administrative Agent, copies of the LNP Contract or any SOW Receivables Securitization Document and any amendments or supplements thereto. 

        Documents
required to be delivered pursuant to Section 7.01(a), (b) or (c) or  Section 7.02(e) (to the extent
any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if
so delivered, shall be deemed to have been delivered on the date (i) on which the Borrower posts such documents, or provides a link thereto on the Borrower's website on the Internet at the
website address listed on Schedule 11.02; or (ii) on which such documents are posted on the Borrower's behalf on a relevant website, if
any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website or whether sponsored by the Administrative Agent);  provided that: (i) the Borrower
shall deliver paper copies of such documents to the Administrative Agent or any Lender that requests the Borrower
to deliver such paper copies until a written request to cease delivering paper copies is given by the Administrative Agent or such Lender and (ii) the Borrower shall notify (which may be by
facsimile or electronic mail) the Administrative Agent and each Lender of the posting of any such documents and provide to the Administrative Agent by electronic mail electronic versions
(i.e., soft copies) of such documents. Notwithstanding anything contained herein, in every instance the Borrower shall be required to provide paper
copies of the Compliance Certificates required by Section 7.02(b) and the certificates required by  Section 7.02(c) to the Administrative Agent
and each of the Lenders. Except for such Compliance Certificates and other
certificates required by Section 7.02(c), the Administrative Agent shall have no obligation to request the delivery or to maintain copies of the
documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrower with any such request for delivery, and each Lender shall be solely responsible for
requesting delivery to it or maintaining its copies of such documents. 

        7.03    Notices.    Promptly notify the Administrative Agent and each Lender: 

        (a)   of
the occurrence of any Default; 

        (b)   of
any matter that has resulted or would reasonably be expected to result in a Material Adverse Effect, including (i) breach or non-performance of, or
any default under, a Contractual Obligation of the Borrower or any Subsidiary including, without limitation, the DB Loan Agreement and the DB Guaranty; (ii) any dispute, litigation,
investigation, proceeding or suspension between the Borrower or any Subsidiary and any Governmental Authority; or (iii) the commencement of, or any material development in, any litigation or
proceeding affecting the Borrower or any Subsidiary, including pursuant to any applicable Environmental Laws; 

        (c)   of
the occurrence of any ERISA Event; and 

        (d)   of
any material change in accounting policies or financial reporting practices by the Borrower or any Subsidiary. 

        Each
notice pursuant to this Section shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating
what action the Borrower has taken and proposes to take with respect thereto. Each notice pursuant to Section 7.03(a) shall describe with
particularity any and all provisions of this Agreement and any other Loan Document that have been breached. 

44

  

        7.04    Payment of Obligations.    Pay and discharge as the same shall become due and payable, all its obligations
and
liabilities, including (a) all tax liabilities, assessments and governmental charges or levies upon it or its properties or assets, unless the same are being contested in good faith by
appropriate proceedings diligently conducted and adequate reserves in accordance with GAAP are being maintained by the Borrower or such Subsidiary; (b) all lawful claims which, if unpaid, would
by law become a Lien (other than a Permitted Lien) upon its property; and (c) all Indebtedness, as and when due and payable, but subject to any subordination provisions contained in any
instrument or agreement evidencing such Indebtedness. 

        7.05    Preservation of Existence, Etc.    (a) Preserve, renew and maintain in full force and effect its legal
existence and good standing under the Laws of the jurisdiction of its organization except in a transaction permitted by Section 8.04 or  8.05;
(b) take all reasonable action to maintain all rights, privileges, permits, licenses and franchises necessary or desirable in the normal
conduct of its business, except to the extent that failure to do so would not reasonably be expected to have a Material Adverse Effect; and (c) preserve or renew all of its registered patents,
trademarks, trade names and service marks, the non-preservation of which would reasonably be expected to have a Material Adverse Effect. 

        7.06    Maintenance of Properties.    (a) Maintain, preserve and protect all of its material properties and
equipment necessary in the operation of its business in good working order and condition, ordinary wear and tear excepted; and (b) make all necessary repairs thereto and renewals and
replacements thereof, except, in either case, where the failure to do so would not reasonably be expected to have a Material Adverse Effect. 

        7.07    Maintenance of Insurance.    Maintain with financially sound and reputable insurance companies not Affiliates
of the Borrower, insurance with respect to its properties and business against loss or damage of the kinds customarily insured against by Persons engaged in the same or similar business, of such types
and in such amounts as are customarily carried under similar circumstances by such other Persons and providing for not less than 30 days' prior notice to the Administrative Agent of
termination, lapse or cancellation of such insurance. 

        7.08    Compliance with Laws and Contractual Obligations.    

        (a)   Comply
in all material respects with the requirements of all Laws and all orders, writs, injunctions and decrees applicable to it or to its business or property, except
in such instances in which (a) such requirement of Law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted; or (b) the
failure to comply therewith would not reasonably be expected to have a Material Adverse Effect. 

        (b)   Comply
in all material respects with the requirements of all Contractual Obligations applicable to it or to its business or property, except in such instances in which
the failure to comply therewith would not reasonably be expected to have a Material Adverse Effect. 

        7.09    Books and Records.    (a) Maintain proper books of record and account, in which full, true and correct
entries in conformity with GAAP consistently applied shall be made of all financial transactions and matters involving the assets and business of the Borrower or such Subsidiary, as the case may be;
and (b) maintain such books of record and account in material conformity with all applicable requirements of any Governmental Authority having regulatory jurisdiction over the Borrower or such
Subsidiary, as the case may be. 

        7.10    Inspection Rights.    Permit representatives and independent contractors of the Administrative Agent and each
Lender to visit and inspect any of its properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and
accounts with its directors, officers, and independent public accountants, all at the expense of the Administrative Agent or such Lender, as applicable, and at such reasonable times during normal
business hours and as often as may be reasonably desired, upon reasonable 

45

 

advance
notice to the Borrower; provided, however, that when an Event of Default exists the
Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business
hours upon two (2) Business Days' notice to the Borrower. 

        7.11    Use of Proceeds.    Use the proceeds of the Credit Extensions for the issuance of letters of credit, working
capital, capital expenditures, refinancing of amounts outstanding under the Existing Credit Agreement and other general corporate purposes not in contravention of any Law or of any Loan Document. 

        7.12    New Subsidiaries and Pledgors.    

        (a)   As
soon as practicable but in any event within 20 Business Days following the acquisition or creation of any Subsidiary, cause to be delivered to the Administrative
Agent each of the following: 

          (i)  a
Guaranty Joinder Agreement (or in the event such Subsidiary is the first such Subsidiary following the Closing Date, the Guaranty), duly executed by such Subsidiary
if such Subsidiary is a Domestic Subsidiary; 

         (ii)  a
Security Joinder Agreement duly executed by such Subsidiary (with all schedules thereto appropriately completed); 

        (iii)  if
such Subsidiary owns any real property that the Administrative Agent determines, in its reasonable discretion, is material, a mortgage or deed of trust, as
applicable, with respect to such real property; 

        (iv)  if
any of the Subsidiary Securities issued by such Subsidiary are owned by a Subsidiary (other than NeuLevel) that has not then executed and delivered to the
Administrative Agent the Pledge Agreement or a Pledge Joinder Agreement granting a Lien to the Administrative Agent, for the benefit of the Secured Parties, in such Pledged Interests, a Pledge Joinder
Agreement (with all schedules thereto appropriately completed) duly executed by the Subsidiary that directly owns such Pledged Interests; 

         (v)  if
any of the Subsidiary Securities issued by such Subsidiary are owned by the Borrower or a Subsidiary that has previously executed a Pledge Agreement or a Pledge
Joinder Agreement, a Pledge Agreement Supplement by each Borrower and Subsidiary that owns any of such Pledged Interests with respect to such Pledged Interests in the form required by the Pledge
Agreement; 

        (vi)  if
the Pledged Interests issued or owned by such Subsidiary constitute securities under Article 8 of the Uniform Commercial Code, (A) the certificates
representing 100% of such Pledged Interest and (B) duly executed, undated stock powers or other appropriate powers of assignment in blank affixed thereto; 

       (vii)  if
such Subsidiary itself owns any Subsidiary, a Pledge Joinder Agreement (with all schedules thereto appropriately completed) duly executed by such Subsidiary; 

      (viii)  if
such Subsidiary owns any IP Rights, a security agreement relating to such IP Rights in form and substance reasonably satisfactory to the Administrative Agent; 

        (ix)  with
respect to any Person that has executed a Pledge Joinder Agreement, a Pledge Agreement Supplement or a Security Joinder Agreement hereunder, Uniform Commercial
Code financing statements naming such Person as "Debtor" and naming the Administrative Agent for the benefit of the Secured Parties as "Secured Party," in form, substance and number sufficient in the
reasonable opinion of the Administrative Agent and its special counsel to be filed in all Uniform Commercial Code filing offices and in all jurisdictions in which filing is necessary to perfect in
favor of the Administrative Agent for the benefit of the Secured Parties the Lien on the Collateral conferred under such Security Instrument to the extent such Lien may be perfected by 

46

 

Uniform
Commercial Code filing and, with respect to any IP Rights, such filings with the Patent and Trademark Office and the Copyright Office as the Administrative Agent may reasonably request; 

         (x)  an
opinion of counsel to each Subsidiary executing the Guaranty, a Joinder Agreement or a Pledge Agreement Supplement, as applicable, and the Borrower if it executes a
Pledge Agreement Supplement, provided for in this Section 7.12 dated as of the date of delivery of such applicable Joinder Agreements (and other
Loan Documents) provided for in this Section 7.12 and addressed to the Administrative Agent and the Lenders, in form and substance reasonably
acceptable to the Administrative Agent, each of which opinions may be in form and substance, including assumptions and qualifications contained therein, substantially similar to those opinions of
counsel delivered pursuant to Section 5.01(a). 

        (xi)  current
copies of the Organization Documents of each such Subsidiary, minutes of duly called and conducted meetings (or duly effected consent actions) of the Board of
Directors, partners, or appropriate committees thereof (and, if required by such Organization Documents or applicable law, of the shareholders, members or partners) of such Subsidiary authorizing the
actions and the execution and delivery of documents described in this Section 7.12, all certified by the applicable Governmental Authority or
appropriate officer as the Administrative Agent may reasonably elect. 

        (b)   As
soon as practicable but in any event within 10 Business Days following the acquisition of any Pledged Interests by any Subsidiary that has not theretofore executed
the Pledge Agreement or a Pledge Joinder Agreement and that is not required to deliver a Pledge Joinder Agreement pursuant to the preceding provisions of this  Section 7.12, cause to be delivered to
the Administrative Agent a Pledge Joinder Agreement (with all schedules thereto appropriately completed)
duly executed by the Subsidiary, and the documents, stock certificates, stock powers, financing statements, opinions, Organization Documents and Organizational Action relating thereto and to the
pledge contained therein and described in clauses (vi), (ix), (x) and (xi) of Section 7.12(a). 

        7.13    Banking Relationship.    Maintain its primary commercial banking relationship for all traditional commercial
banking products with Bank of America; provided, however, that the Borrower may maintain one or more
operating accounts with Wachovia Bank, National Association pending the clearance of outstanding checks and automated drafts thereon; provided further,  however, that to the extent that the balance in any such account exceeds $100,000 at any time after September 30, 2002, the
Borrower shall promptly obtain and provide to the Administrative Agent a Qualifying Control Agreement, as defined in the Security Agreement, with Wachovia Bank, National Association with respect to
such account. 

        7.14    Deposit Account.    Cause all payments under the LNP Receivables Tracking Certificate to be directly deposited
into a restricted account established with Bank of America pursuant to the Lockbox Agreement. 

        7.15    Travel Policy.    Maintain and enforce a company policy prohibiting any four or more Management Investors, as
defined in the NeuStar Stockholders' Agreement, from traveling together on any one aircraft at the same time. 

47

 

 
 

ARTICLE VIII.
  NEGATIVE COVENANTS    
    

        So long as any Lender shall have any Commitment hereunder, any Loan or other Obligation hereunder shall remain unpaid or unsatisfied, or any Letter of Credit
shall remain outstanding, the Borrower shall not, nor shall it permit any Subsidiary to, directly or indirectly: 

        8.01    Liens.    Create, incur, assume or suffer to exist any Lien upon any of its property, assets or revenues,
whether now owned or hereafter acquired, other than the following (collectively, the "Permitted Liens"): 

        (a)   Liens
pursuant to any Loan Document; 

        (b)   Liens
existing on the date hereof and listed on Schedule 8.01 and any renewals or extensions thereof,  provided that the property covered thereby is not
increased and any renewal or extension of the obligations secured or benefited thereby is permitted by  Section 8.03(b); 

        (c)   Liens
for taxes not yet due or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are
maintained on the books of the applicable Person in accordance with GAAP; 

        (d)   carriers',
warehousemen's, mechanics', materialmen's, repairmen's or other like Liens arising in the ordinary course of business which are not overdue for a period of
more than 30 days or which are being contested in good faith and by appropriate proceedings diligently conducted, if adequate reserves with respect thereto are maintained on the books of the
applicable Person; 

        (e)   pledges
or deposits in the ordinary course of business in connection with workers' compensation, unemployment insurance and other social security legislation, other than
any Lien imposed by ERISA; 

        (f)    deposits
to secure the performance of bids, trade contracts and leases (other than Indebtedness), statutory obligations, surety bonds (other than bonds related to
judgments or litigation), performance bonds and other obligations of a like nature incurred in the ordinary course of business; 

        (g)   easements,
rights-of-way, restrictions and other similar encumbrances affecting real property which, in the aggregate, are not substantial in
amount, and which do not in any case materially detract from the value of the property subject thereto or materially interfere with the ordinary conduct of the business of the applicable Person; 

        (h)   Liens
securing judgments for the payment of money not constituting an Event of Default under Section 9.01(h) or
securing appeal or other surety bonds related to such judgments; 

        (i)    Liens
securing Indebtedness permitted under Section 8.03(f);  provided that (i) such Liens do not at any time encumber any property other than the
property financed by such Indebtedness and (ii) the
Indebtedness secured thereby does not exceed the cost or fair market value, whichever is lower, of the property being acquired on the date of acquisition; and 

        (j)    Liens
arising under the SOW Receivables Securitization Documents. 

        Notwithstanding
the foregoing categories or amounts of Liens permitted to be created, incurred or assumed or to exist, in no event shall any such Lien be permitted to attach to or
otherwise encumber in any manner at any time the LNP Contract. 

        8.02    Investments.    Make any Investments, except: 

        (a)   Investments
held by the Borrower or such Subsidiary in the form of Liquid Assets; 

48

 

        (b)   advances
to officers, directors and employees of the Borrower and Subsidiaries in an aggregate amount not to exceed $500,000 at any time outstanding, for travel,
entertainment, relocation and analogous ordinary business purposes; 

        (c)   Investments
of the Borrower in any Guarantor and Investments of any Guarantor in the Borrower or in another Guarantor; 

        (d)   Investments
of the Borrower in NeuLevel in accordance with the NeuLevel Stockholders' Agreement; 

        (e)   Investments
consisting of extensions of credit in the nature of accounts receivable or notes receivable arising from the grant of trade credit in the ordinary course of
business, and Investments received in satisfaction or partial satisfaction thereof from financially troubled account debtors to the extent reasonably necessary in order to prevent or limit loss; 

        (f)    Guarantees
permitted by Section 8.03; 

        (g)   other
Investments not exceeding $2,500,000 in the aggregate in any fiscal year of the Borrower; provided that such
Investments may be made in an amount not exceeding $5,000,000 in the aggregate in any fiscal year of the Borrower to the extent that (i) any amount of the aggregate purchase price of such
Investments in excess of $2,500,000 is paid with equity interests of the Borrower, the valuation of which shall be determined by a committee composed of the members of the Board of Directors of the
Borrower and, if requested by the Administrative Agent, determined to be a reasonable valuation by independent certified public accountants of nationally recognized standing reasonably acceptable to
the Administrative Agent, and (ii) the Borrower provides the Administrative Agent with a Compliance Certificate giving pro forma effect to any Investment causing the aggregate purchase price of
all Investments to exceed $2,500,000 in any fiscal year and evidencing compliance with the financial covenants set forth in Section 8.11 hereof
as of the most recently ended four consecutive fiscal quarters; and 

        (h)   any
transaction contemplated by the SOW Receivables Securitization. 

        8.03    Indebtedness.    Create, incur, assume or suffer to exist any Indebtedness, except: 

        (a)   Indebtedness
under the Loan Documents; 

        (b)   Indebtedness
outstanding on the date hereof and listed on Schedule 8.03 and any refinancings, refundings, renewals
or extensions thereof; provided that the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension
except by an amount equal to a reasonable premium or other reasonable amount paid, and fees and expenses reasonably incurred, in connection with such refinancing and by an amount equal to any existing
commitments unutilized thereunder; provided, however, that outstanding Indebtedness subordinated to the
Obligations shall not be refinanced, refunded, renewed or extended except on subordination terms at least as favorable to the Lenders and no more restrictive on the Borrower than the subordinated
Indebtedness being refinanced, and in an amount not less than the amount outstanding at the time of refinancing, and provided further, that no optional
prepayment of principal or interest on the Lockheed Note shall be made without the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld or delayed; 

        (c)   any
transaction contemplated by the SOW Receivable Securitization; 

        (d)   Guarantees
of the Borrower in respect of Indebtedness otherwise permitted hereunder of any Subsidiary and Guarantees of any Subsidiary in respect of Indebtedness
otherwise permitted hereunder of the Borrower or any other Subsidiary; 

        (e)   obligations
(contingent or otherwise) of the Borrower or any Subsidiary existing or arising under any Swap Contract,  provided that (i) such obligations are (or were) entered into by such Person 

49

 

in
the ordinary course of business for the purpose of directly mitigating risks associated with liabilities, commitments, investments, assets, or property held or reasonably anticipated by such
Person, or changes in the value of securities issued by such Person, and not for purposes of speculation or taking a "market view;" and (ii) such Swap Contract does not contain any provision
exonerating the non-defaulting party from its obligation to make payments on outstanding transactions to the defaulting party; 

        (f)    Indebtedness
in respect of capital leases, Synthetic Lease Obligations and purchase money obligations for fixed or capital assets within the limitations set forth in  Section 8.01(i); provided, however, that the
aggregate amount of all such Indebtedness outstanding at any one time shall not exceed (i) $30,000,000 during the period from the Closing Date through and including December 31, 2002,
(ii) $35,000,000 during the period from January 1, 2003 through and including August 15, 2003, and (iii) thereafter, if the Maturity Date is extended pursuant to  Section 2.13,
$40,000,000; 

        (g)   unsecured
Indebtedness in an aggregate principal amount not to exceed (i) $1,500,000 at any time outstanding during the period from the Closing Date through and
including December 31, 2002 and (ii) $2,500,000 at any time outstanding after December 31, 2002; 

        (h)   Indebtedness
in respect of the Borrower's obligation to purchase outstanding shares of its capital stock pursuant to Section 6(e) of the NeuStar Stockholders'
Agreement; provided that any promissory note evidencing any such Indebtedness shall contain subordination terms satisfactory to the Administrative Agent
and provided further that no payment of principal or interest thereunder may be prepaid, defeased or otherwise satisfied prior to the due date thereof without the prior written consent of the
Administrative Agent, which consent shall not be unreasonably withheld, and provided further that any such note having a principal amount in excess of
$500,000 may not be issued any earlier than the date that is 170 days following the delivery of written notice of the Borrower's election to purchase Put Shares, as defined in the NeuStar
Stockholders' Agreement; and 

        (i)    the
endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business. 

        8.04    Fundamental Changes.    Merge, dissolve, liquidate, consolidate with or into another Person, or Dispose of
(whether in one transaction or in a series of transactions) all or substantially all of its assets (whether now owned or hereafter acquired) to or in favor of any Person, except that, so long as no
Default exists or would result therefrom: 

        (a)   any
Subsidiary may merge with (i) the Borrower, provided that the Borrower shall be the continuing or surviving
Person, or (ii) any one or more other Subsidiaries, provided that when any Guarantor is merging with another Subsidiary, the Guarantor shall be
the continuing or surviving Person; and 

        (b)   any
Subsidiary may Dispose of all or substantially all of its assets (upon voluntary liquidation or otherwise) to the Borrower or to another Subsidiary;  provided that if the transferor in such a transaction
is a Guarantor, then the transferee must either be the Borrower or a Guarantor. 

        8.05    Dispositions.    Make any Disposition or enter into any agreement to make any Disposition, except: 

        (a)   Dispositions
of obsolete or worn out property, whether now owned or hereafter acquired, in the ordinary course of business; 

        (b)   Dispositions
of inventory in the ordinary course of business; 

        (c)   Dispositions
of equipment or real property to the extent that (i) such property is exchanged for credit against the purchase price of similar replacement property
or (ii) the proceeds of such Disposition are reasonably promptly applied to the purchase price of such replacement property; 

50

 

        (d)   Dispositions
of property by any Subsidiary to the Borrower or to a wholly-owned Subsidiary; provided that if the
transferor of such property is a Guarantor, the transferee thereof must either be the Borrower or a Guarantor; 

        (e)   Dispositions
by the Borrower of LNP Receivables and SOW Receivables pursuant to the Receivables Transfer Agreement dated as of November 2, 2001; 

        (f)    Dispositions
permitted by Section 8.04; 

        (g)   Dispositions
by the Borrower and its Subsidiaries not otherwise permitted under this Section 8.05; provided that
(i) at the time of such Disposition, no Default shall exist or would result from such Disposition and (ii) the aggregate book value of all property Disposed of in reliance on this
clause (g) in any fiscal year shall not exceed $1,000,000; 

        (h)   Dispositions
consisting of any sublease of the offices of the Borrower or its Subsidiaries in Washington, D.C. and Chicago, Illinois in connection with the closure of
such offices by the Borrower and the Subsidiaries; 

        (i)    Dispositions
by the Borrower and its Subsidiaries consisting of licenses of software in the ordinary course of business; 

provided, however, that any Disposition pursuant to clauses (a) through (c) and
(f) and (g) shall be for fair market value. 

        8.06    Restricted Payments.    Declare or make, directly or indirectly, any Restricted Payment, or incur any
obligation (contingent or otherwise) to do so, except that: 

        (a)   each
Subsidiary may make Restricted Payments to the Borrower and to wholly-owned Subsidiaries (and, in the case of a Restricted Payment by a non-wholly-owned
Subsidiary, to the Borrower and any Subsidiary and to each other owner of capital stock or other equity interests of such Subsidiary on a pro rata basis based on their relative ownership interests); 

        (b)   the
Borrower and each Subsidiary may declare and make dividend payments or other distributions payable solely in the common stock or other equity interests of such
Person; 

        (c)   the
Borrower and each Subsidiary may purchase, redeem or otherwise acquire shares of its common stock or other equity interests or warrants or options to acquire any
such shares with the proceeds received from the substantially concurrent issue of new shares of its common stock or other equity interests; and 

        (d)   the
Borrower may purchase, redeem or otherwise acquire shares of its common stock or other equity interests in accordance with the NeuStar Stockholders' Agreement as in
effect on the Closing Date. 

        8.07    Change in Nature of Business.    Engage in any material line of business substantially different from those
lines of business conducted by the Borrower and its Subsidiaries on the date hereof or any business substantially related or incidental thereto. 

        8.08    Transactions with Affiliates.    Enter into any transaction of any kind with any Affiliate of the Borrower,
whether or not in the ordinary course of business, other than on fair and reasonable terms substantially as favorable to the Borrower or such Subsidiary as would be obtainable by the Borrower or such
Subsidiary at the time in a comparable arm's length transaction with a Person other than an Affiliate, provided that the foregoing restriction shall not apply to (a) transactions between or
among the Borrower and (i) any of its wholly-owned Subsidiaries or between and among any wholly-owned Subsidiaries and (ii) NeuLevel with respect to the operating agreement between the
Borrower and NeuLevel and the arrangement between such parties with respect to the Borrower's application to 

51

 

become
the registry for the ".ORG" domain and (b) any transaction contemplated under the SOW Receivables Securitization. 

        8.09    Burdensome Agreements.    Enter into any Contractual Obligation (other than this Agreement or any other Loan
Document) that (a) limits the ability (i) of any Subsidiary to make Restricted Payments to the Borrower or any Guarantor or to otherwise transfer property to the Borrower or any
Guarantor, (ii) of any Subsidiary to Guarantee the Indebtedness of the Borrower or (iii) of the Borrower or any Subsidiary to create, incur, assume or suffer to exist Liens on property
of such Person; provided, however, that this clause (iii) shall not prohibit any negative pledge
incurred or provided in favor of any holder of Indebtedness permitted under Section 8.03(g) solely to the extent any such negative pledge relates
to the property financed by or the subject of such Indebtedness or any agreement contemplated by the SOW Receivables Securitization, but subject to the Intercreditor Agreement; or (b) requires
the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such Person. 

        8.10    Use of Proceeds.    Use the proceeds of any Credit Extension, whether directly or indirectly, and whether
immediately, incidentally or ultimately, to purchase or carry margin stock (within the meaning of Regulation U of the FRB) or to extend credit to others for the purpose of purchasing or
carrying margin stock or to refund indebtedness originally incurred for such purpose. 

        8.11    Financial Covenants.    

        (a)    Consolidated Net Worth.    Permit Consolidated Net Worth at any time to be less than (i) $60,000,000,
plus (ii) 100% of the aggregate amount of all increases in the stated capital and additional paid-in capital accounts of the Borrower resulting from the issuance of equity
securities occurring after the Closing Date, provided, however, that restructuring costs in an aggregate
amount up to $6,500,000 actually incurred by the Borrower or its Subsidiaries during the fiscal quarter ending September 30, 2002 in connection with the closure of certain offices of the
Borrower or its Subsidiaries in Washington, D.C. and Chicago, Illinois shall not be taken into account in calculating Consolidated Net Worth. 

        (b)    Operating Income from Numbering Line of Business.    Permit Operating Income, as defined by GAAP, less any
amortization of the NANPA Contract Reserve, generated solely from the Numbering Line of Business to be less than $20,000,000 for the most recently ended four consecutive fiscal quarters of the
Borrower. 

        (c)    Quarterly Consolidated EBITDA.    Permit Consolidated EBITDA as of the end of any fiscal quarter to be less
than the amounts set forth below: 

	Fiscal Quarter Ending
 
	 	Consolidated EBITDA

	September 30, 2002	 	$	3,500,000
	December 31, 2002	 	$	3,500,000
	March 31, 2003	 	$	3,500,000
	Each fiscal quarter ending thereafter	 	$	4,000,000

        (d)    Liquid Assets.    Permit Liquid Assets at any time to be less than the amounts set forth below at any time
during the corresponding period: 

	Time Period Ending
 
	 	Liquid Assets

	Closing Date through September 30, 2002	 	$	5,000,000
	October 1, 2002 through December 31, 2002	 	$	3,000,000

        (e)    Consolidated Leverage Ratio.    If the Maturity Date has been extended pursuant to  Section 2.13, permit the
Consolidated Leverage Ratio (but excluding net income attributable to the 

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SOW
Receivables) as of the end of each four-quarter period of the Borrower, beginning with the four-quarter period ending on June 30, 2003, to be greater than 2.5 to
1.00. 

        8.12    Capital Expenditures.    Make or become legally obligated to make any expenditure in respect of the purchase
or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are properly charged to current operations), except for capital expenditures in the ordinary
course of business not exceeding, in the aggregate for the Borrower and it Subsidiaries, $10,000,000 in each fiscal year; provided,  however, that so long
as no Default has occurred and is continuing or would result from such expenditure, any portion of such amount which is not
expended in the fiscal year for which it is permitted above may be carried over for expenditure in the next following fiscal year. 

        8.13    Subsidiary Securities.    Permit or allow to occur the issuance of any Subsidiary Securities to any Person
other than the Borrower or any wholly-owned Subsidiary of the Borrower, except that NeuLevel may issue its Subsidiary Securities to its existing equity holders at any time provided that, as a result
thereof, the Borrower and its wholly-owned Subsidiaries own not less than 90% of the outstanding Subsidiary Securities of NeuLevel, and the voting rights represented thereby, on a fully adjusted
basis. 

        8.14    Amendment of Stockholders' Agreements and Lockheed Note.    Amend or allow to occur any amendment to the
NeuStar Stockholders' Agreement, the NeuLevel Stockholders' Agreement or the Lockheed Note that could reasonably be expected to have an adverse impact on the rights and interests of the Lenders
without the prior written consent of the Administrative Agent, which consent shall not be unreasonably withheld or delayed. 

 
 

ARTICLE IX.
  EVENTS OF DEFAULT AND REMEDIES    
    

        9.01    Events of Default.    Any of the following shall constitute an Event of Default: 

        (a)    Non-Payment.    The Borrower or any other Loan Party fails to pay
(i) when and as required to be paid herein, any amount of principal of any Loan or any L/C Obligation, or (ii) within three days after the same becomes due, any interest on any Loan or
on any L/C Obligation, or any commitment or other fee due hereunder, or (iii) within five days after the same becomes due, any other amount payable hereunder or under any other Loan Document;
or 

        (b)    Specific Covenants.    The Borrower fails to perform or observe any term, covenant or
agreement contained in any of Section 7.01, 7.02,  7.03, 7.05, 7.10,  7.11 or 7.12 or Article VIII,  provided, however, that the Borrower's failure to perform or observe any term, covenant or agreement
contained in Sections 7.02 or 7.05 shall not constitute an Event of Default unless such failure has not
been remedied within five Business Days after notice thereof from the Administrative Agent, provided that, with respect to Section 7.05, the
Administrative Agent has received notice from the borrower of such Default pursuant to Section 7.03; or 

        (c)    Other Defaults.    Any Loan Party fails to perform or observe any other covenant or
agreement (not specified in subsection (a) or (b) above) contained in any Loan Document on its part to be performed or observed and such failure continues for 30 days after notice
thereof from the Administrative Agent to the extent that the Administrative Agent has received notice from the Borrower of such Default pursuant to  Section 7.03; or 

        (d)    Representations and Warranties.    Any representation, warranty, certification or
statement of fact made or deemed made by or on behalf of the Borrower or any other Loan Party herein, in any other Loan Document, or in any document delivered in connection herewith or therewith (a
"Supplemental Document") shall be incorrect or misleading in any material respect when made or deemed made; or 

53

 

        (e)    Cross-Default.    (i) The Borrower or any Subsidiary fails to (A) make
any payment when due (whether by scheduled maturity, required prepayment, acceleration, demand, or otherwise) in respect of any Indebtedness or Guarantee (other than Indebtedness hereunder and
Indebtedness under Swap Contracts) having an aggregate principal amount (including undrawn committed or available amounts and including amounts owing to all creditors under any combined or syndicated
credit arrangement) of more than $1,000,000, or (B) observe or perform any other agreement or condition relating to any such Indebtedness or Guarantee or contained in any instrument or
agreement evidencing, securing or relating thereto, or any other event occurs, the effect of which default or other event (including without limitation such default or event described in
(A) and (B)) is to cause, or to permit the holder or holders of such Indebtedness or the beneficiary or beneficiaries of such Guarantee (or a trustee or agent on behalf of such holder or
holders or beneficiary or beneficiaries) to cause, after the giving of notice if required, or the passage of time or both, such Indebtedness to be demanded or to become due or to be repurchased,
prepaid, defeased or redeemed (automatically or otherwise), or an offer to repurchase, prepay, defease or redeem such Indebtedness to be made, prior to its stated maturity, or such Guarantee to become
payable or cash collateral in respect thereof to be demanded; (ii) there occurs under any Swap Contract an Early Termination Date (as defined in such Swap Contract) resulting from
(A) any event of default under such Swap Contract as to which the Borrower or any Subsidiary is the Defaulting Party (as defined in such Swap Contract) or (B) any Termination Event (as
so defined) under such Swap Contract as to which the Borrower or any Subsidiary is an Affected Party (as so defined) and, in either event, the Swap Termination Value owed by the Borrower or such
Subsidiary as a result thereof is greater than $500,000; or (iii) there occurs a default or event of default under the DB Guaranty; or 

        (f)    Insolvency Proceedings, Etc.    Any Loan Party or any of its Subsidiaries institutes or
consents to the institution of any proceeding under any Debtor Relief Law, or makes an assignment for the benefit of creditors; or applies for or consents to the appointment of any receiver, trustee,
custodian, conservator, liquidator, rehabilitator or similar officer for it or for all or any material part of its property; or any receiver, trustee, custodian, conservator, liquidator, rehabilitator
or similar officer is appointed without the application or consent of such Person and the appointment continues undischarged or unstayed for 60 calendar days; or any proceeding under any Debtor Relief
Law relating to any such Person or to all or any material part of its property is instituted without the consent of such Person and continues undismissed or unstayed for 60 calendar days, or an order
for relief is entered in any such proceeding; or 

        (g)    Inability to Pay Debts; Attachment.    (i) The Borrower or any Subsidiary
becomes unable or admits in writing its inability or fails generally to pay its debts as they become due, or (ii) any writ or warrant of attachment or execution or similar process is issued or
levied against all or any material part of the property of any such Person and is not released, vacated or fully bonded within 30 days after its issue or levy; or 

        (h)    Judgments.    There is entered against the Borrower or any Subsidiary (i) a
final judgment or order for the payment of money in an aggregate amount exceeding $1,000,000 (in excess of the amount covered by independent third-party insurance as to which the insurer does not
dispute coverage), or (ii) any one or more non-monetary final judgments that have, or would reasonably be expected to have, individually or in the aggregate, a Material Adverse
Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 10 consecutive days during which a stay of
enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect; or 

        (i)    ERISA.    (i) An ERISA Event occurs with respect to a Pension Plan or
Multiemployer Plan which has resulted or would reasonably be expected to result in liability of the Borrower under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the PBGC in an aggregate
amount in excess of $1,000,000, or (ii) the Borrower or any ERISA Affiliate fails to pay when due, after the expiration of any applicable grace period, any installment payment with respect to
its withdrawal liability under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $1,000,000; or 

54

  

        (j)    Invalidity of Loan Documents.    Any Loan Document, at any time after its
execution and
delivery and for any reason other than as expressly permitted hereunder and prior to the satisfaction in full of all the Obligations, ceases to be in full force and effect; or any Loan Party contests
in any manner the validity or enforceability of any Loan Document; or any Loan Party denies that it has any or further liability or obligation under any Loan Document, or purports to revoke, terminate
or rescind any Loan Document; or 

        (k)    Change of Control.    There occurs any Change of Control with respect to the Borrower;
or 

        (l)    LNP Contract.    There occurs any event of default under, or the loss by the Borrower
of or significant adverse change to the Borrower's rights and privileges under, the LNP Contract; or 

        (m)    SOW Receivables Securitization Documents.    There occurs any event of default under, or the loss by the
Borrower of or significant change (other than by reason of set-off or the exercise of other rights and remedies by the carriers and other users under the LNP Contract in the ordinary
course of business) to the Borrower's rights and privileges under, the SOW Receivables Securitization Documents that results, or would reasonably be expected to result in a diminution of payments
under the LNP Receivables Tracking Certificate. 

        9.02    Remedies Upon Event of Default.    If any Event of Default occurs and is continuing, the Administrative Agent
shall, at the request of, or may, with the consent of, the Required Lenders, take any or all of the following actions: 

        (a)   declare
the commitment of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions to be terminated, whereupon such commitments and
obligation shall be terminated; 

        (b)   declare
the unpaid principal amount of all outstanding Loans, all interest accrued and unpaid thereon, and all other amounts owing or payable hereunder or under any
other Loan Document to be immediately due and payable, without presentment, demand, protest or other notice of any kind, all of which are hereby expressly waived by the Borrower; 

        (c)   require
that the Borrower Cash Collateralize the L/C Obligations (in an amount equal to the then Outstanding Amount thereof); and 

        (d)   exercise
on behalf of itself and the Lenders all rights and remedies available to it and the Lenders under the Loan Documents or applicable law; 

provided, however, that upon the occurrence of an actual or deemed entry of an order for relief with
respect to the Borrower under the Bankruptcy Code of the United States, the obligation of each Lender to make Loans and any obligation of the L/C Issuer to make L/C Credit Extensions shall
automatically terminate, the unpaid principal amount of all outstanding Loans and all interest and other amounts as aforesaid shall automatically become due and payable, and the obligation of the
Borrower to Cash Collateralize the L/C Obligations as aforesaid shall automatically become effective, in each case without further act of the Administrative Agent or any Lender. 

        9.03    Application of Funds.    After the exercise of remedies provided for in  Section 9.02 (or after the Loans have
automatically become immediately due and payable and the L/C Obligations have automatically been required
to be Cash Collateralized as set forth in the proviso to Section 9.02), any amounts received on account of the Obligations shall be applied by
the Administrative Agent in the following order: 

        First, to payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts (including Attorney Costs
and amounts payable under Article III) payable to the Administrative Agent in its capacity as such; 

55

 

        Second, to payment of that portion of the Obligations constituting fees, indemnities and other amounts (other than principal and interest)
payable to the Lenders (including Attorney Costs and amounts payable under Article III), ratably among them in proportion to the amounts
described in this clause Second payable to them; 

        Third, to payment of that portion of the Obligations constituting accrued and unpaid interest on the Loans and L/C Borrowings, ratably
among the Lenders in proportion to the respective amounts described in this clause Third payable to them; 

        Fourth, to payment of that portion of the Obligations constituting unpaid principal of the Loans and L/C Borrowings, ratably among the
Lenders in proportion to the respective amounts described in this clause Fourth held by them; 

        Fifth, to the Administrative Agent for the account of the L/C Issuer, to Cash Collateralize that portion of L/C Obligations comprised of
the aggregate undrawn amount of Letters of Credit; 

        Sixth, to payment of all other amounts due under any of the Loan Documents, if any, to be applied for the ratable benefit of the
recipients, including amounts due to any of the Lenders or their affiliates in respect of Obligations consisting of liabilities under any Swap Agreement with any of the Lenders or their affiliates on
a pro rata basis according to the amounts owed; and 

        Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to the Borrower or as otherwise required by
Law. 

        Subject
to Section 2.03(c), amounts used to Cash Collateralize the aggregate undrawn amount of Letters of Credit pursuant to clause  Fifth above shall be
applied to satisfy drawings under such Letters of Credit as they occur. If any amount remains on deposit as Cash Collateral after
all Letters of Credit have either been fully drawn or expired, such remaining amount shall be applied to the other Obligations, if any, in the order set forth above. 

 
 

ARTICLE X.
  ADMINISTRATIVE AGENT    
    

        10.01    Appointment and Authorization of Administrative Agent.    

        (a)   Each
Lender hereby irrevocably appoints, designates and authorizes the Administrative Agent to take such action on its behalf under the provisions of this Agreement and
each other Loan Document and to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan Document, together with such powers as
are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere herein or in any other Loan Document, the Administrative Agent shall not have any duties or
responsibilities, except those expressly set forth herein, nor shall the Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied
covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Administrative Agent. Without
limiting the generality of the foregoing sentence, the use of the term "agent" herein and in the other Loan Documents with reference to the Administrative Agent is not intended to connote any
fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable Law. Instead, such term is used merely as a matter of market custom, and is intended to create or
reflect only an administrative relationship between independent contracting parties. 

        (b)   The
L/C Issuer shall act on behalf of the Lenders with respect to any Letters of Credit issued by it and the documents associated therewith, and the L/C Issuer shall
have all of the benefits and immunities (i) provided to the Administrative Agent in this Article X with respect to any acts taken or
omissions suffered by the L/C Issuer in connection with Letters of Credit issued by it or proposed to be 

56

 

issued
by it and the applications and agreements for letters of credit pertaining to such Letters of Credit as fully as if the term "Administrative
Agent" as used in this Article X and in the definition of "Agent-Related
Person" included the L/C Issuer with respect to such acts or omissions, and (ii) as additionally provided herein with respect to the L/C Issuer. 

        10.02    Delegation of Duties.    The Administrative Agent may execute any of its duties under this Agreement or any
other Loan Document by or through agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all matters
pertaining to such duties. The Administrative Agent shall not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of
gross negligence or willful misconduct. 

        10.03    Liability of Administrative Agent.    No Agent-Related Person shall (a) be liable for any action taken
or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except for its own gross negligence or willful
misconduct in connection with its duties expressly set forth herein), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty
made by any Loan Party or any officer thereof, contained herein or in any other Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by
the Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any
other Loan Document,
or for any failure of any Loan Party or any other party to any Loan Document to perform its obligations hereunder or thereunder. No Agent-Related Person shall be under any obligation to any Lender or
participant to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the
properties, books or records of any Loan Party or any Affiliate thereof. 

        10.04    Reliance by Administrative Agent.    

        (a)   The
Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution, representation,
notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail message, statement or other document or conversation believed by it to be genuine and
correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to any Loan Party), independent accountants and other
experts selected by the Administrative Agent. The Administrative Agent shall be fully justified in failing or refusing to take any action under any Loan Document unless it shall first receive such
advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such action. The Administrative Agent shall in all cases be fully protected in acting, or in refraining from acting, under
this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and
such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders. 

        (b)   For
purposes of determining compliance with the conditions specified in Section 5.01, each Lender that has signed
this Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto. 

        10.05    Notice of Default.    The Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default, except with respect to defaults in the payment of principal, interest and fees required to be paid to the Administrative Agent for the account of the Lenders, unless the
Administrative Agent shall have received written notice from a Lender or the Borrower 

57

 

referring
to this Agreement describing such Default and stating that such notice is a "notice of default." The Administrative Agent will notify the Lenders of its receipt of any such notice. The
Administrative Agent shall take such action with respect to such Default as may be directed by the Required Lenders in accordance with  Article IX; provided, however, that unless and
until the Administrative Agent has received any such direction, the Administrative Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such
Default as it shall deem advisable or in the best interest of the Lenders. 

        10.06    Credit Decision; Disclosure of Information by Administrative Agent.    Each Lender acknowledges that no
Agent-Related Person has made any representation or warranty to it, and that no act by the Administrative Agent hereafter taken, including any consent to and acceptance of any assignment or review of
the affairs of any Loan Party or any Affiliate thereof, shall be deemed to constitute any representation or warranty by any Agent-Related Person to any Lender as to any matter, including whether
Agent-Related Persons have disclosed material information in their possession. Each Lender represents to the Administrative Agent that it has, independently and without reliance upon any Agent-
Related Person and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and
other condition and creditworthiness of the Loan Parties and their respective Subsidiaries, and all applicable bank or other regulatory Laws relating to the transactions contemplated hereby, and made
its own decision to enter into this Agreement and to extend credit to the Borrower and the other Loan Parties hereunder. Each Lender also represents that it will, independently and without reliance
upon any Agent-Related Person and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not
taking action under this Agreement and the other Loan Documents, and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial
and other condition and creditworthiness of the Borrower and the other Loan Parties. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the
Administrative Agent herein, the Administrative Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects,
operations, property, financial and other condition or creditworthiness of any of the Loan Parties or any of their respective Affiliates which may come into the possession of any Agent-Related Person. 

        10.07    Indemnification of Administrative Agent.    Whether or not the transactions contemplated hereby are
consummated, the Lenders shall indemnify upon demand each Agent-Related Person (to the extent not reimbursed by or on behalf of any Loan Party and without limiting the obligation of any Loan Party to
do so), pro rata, and hold harmless each Agent-Related Person from and against any and all Indemnified Liabilities incurred by it; provided,  however, that
no Lender shall be liable for the payment to any Agent-Related Person of any portion of such Indemnified Liabilities to the extent
determined in a final, nonappealable judgment by a court of competent jurisdiction to have resulted from such Agent-Related Person's own gross negligence or willful misconduct;  provided, however, that no action taken in accordance with the directions of the Required Lenders shall
be deemed to constitute gross negligence or willful misconduct for purposes of this Section. Without limitation of the foregoing, each Lender shall reimburse the Administrative Agent upon demand for
its ratable share of any costs or out-of-pocket expenses (including Attorney Costs) incurred by the Administrative Agent in connection with the preparation, execution,
delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this
Agreement, any other Loan Document, or any document contemplated by or referred to herein, to the extent that the Administrative Agent is not reimbursed for such expenses by or on behalf of the
Borrower. The undertaking in this Section shall survive termination of the Aggregate Commitments, the payment of all other Obligations and the resignation of the Administrative Agent. 

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        10.08    Administrative Agent in Its Individual Capacity.    Bank of America and its Affiliates may make loans to,
issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business
with each of the Loan Parties and their respective Affiliates as though Bank of America were not the Administrative Agent or the L/C Issuer hereunder and without notice to or consent of the Lenders.
The Lenders acknowledge that, pursuant to such activities, Bank of America or its Affiliates may receive information regarding any Loan Party or its Affiliates (including information that may be
subject to confidentiality obligations in favor of such Loan Party or such Affiliate) and acknowledge that the Administrative Agent shall be under no obligation to provide such information to them.
With respect to its Loans, Bank of America shall have the same rights and powers under this Agreement as any other Lender and may exercise such rights and powers as though it were not the
Administrative Agent or the L/C Issuer, and the terms "Lender" and "Lenders" include Bank of America in its individual capacity. 

        10.09    Successor Administrative Agent.    The Administrative Agent may resign as Administrative Agent upon
30 days' notice to the Lenders; provided that any such resignation by Bank of America shall also constitute its resignation as L/C Issuer. If the
Administrative Agent resigns under this Agreement, the Required Lenders shall appoint from among the Lenders a successor administrative agent for the Lenders, which successor administrative agent
shall be consented to by the Borrower at all times other than during the existence of an Event of Default (which consent of the Borrower shall not be unreasonably withheld or delayed). If no successor
administrative agent is appointed prior to the effective date of the resignation of the Administrative Agent, the Administrative Agent may appoint, after consulting with the Lenders and the Borrower,
a successor administrative agent from among the Lenders. Upon the acceptance of its appointment as successor administrative agent hereunder, the Person acting as such successor administrative agent
shall succeed to all the rights, powers and duties of the retiring Administrative Agent and L/C Issuer and the respective terms "Administrative Agent" and "L/C Issuer" shall mean such successor
administrative agent and Letter of Credit issuer, and the retiring Administrative Agent's appointment, powers and duties as Administrative Agent shall be terminated and the retiring L/C Issuer's
rights, powers and duties as such shall be terminated, without any other or further act or deed on the part of such retiring L/C Issuer or any other Lender, other than the obligation of the successor
L/C Issuer to issue letters of credit in substitution for the Letters of Credit, if any, outstanding at the time of such succession or to make other arrangements satisfactory to the retiring L/C
Issuer to effectively assume the obligations of the retiring L/C Issuer with respect to such Letters of Credit. After any retiring Administrative Agent's resignation hereunder as Administrative Agent,
the provisions of this Article X and Sections 11.04 and  11.05 shall inure to its benefit as to any
actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. If no
successor administrative agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative Agent's notice of resignation, the retiring
Administrative Agent's resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the duties of the Administrative Agent hereunder until such time, if any, as the
Required Lenders appoint a successor agent as provided for above. 

        10.10    Administrative Agent May File Proofs of Claim.    In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, the Administrative Agent (irrespective of whether the principal
of any Loan or L/C Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether the Administrative Agent shall have made any demand on the
Borrower) shall be entitled and empowered, by intervention in such proceeding or otherwise: 

        (a)   to
file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, L/C Obligations and all other Obligations that are
owing and unpaid and to 

59

 

file
such other documents as may be necessary or advisable in order to have the claims of the Lenders and the Administrative Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of the Lenders and the Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and the Administrative Agent under  Sections 2.03(i)
and (j), 2.08 and  11.04) allowed in such judicial proceeding; and 

        (b)   to
collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same; 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make such payments to the
Administrative Agent and, in the event that the Administrative Agent shall consent to the making of such payments directly to the Lenders, to pay to the Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of the Administrative Agent and its agents and counsel, and any other amounts due the Administrative Agent under  Sections 2.08 and
11.04. 

        Nothing
contained herein shall be deemed to authorize the Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization,
arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize the Administrative Agent to vote in respect of the claim of any Lender in any such
proceeding. 

        10.11    Collateral and Guaranty Matters.    The Lenders irrevocably authorize the Administrative Agent, at its option
and in its discretion, 

        (a)   to
release any Lien on any property granted to or held by the Administrative Agent under any Loan Document (i) upon termination of the Aggregate Commitments and
payment in full of all Obligations (other than contingent indemnification obligations) and the expiration or termination of all Letters of Credit, (ii) that is sold or to be sold or otherwise
Disposed of as part of or in connection with any transaction permitted hereunder or under any other Loan Document, or (iii) subject to  Section 11.01, if approved, authorized or ratified in
writing by the Required Lenders; and 

        (b)   to
release any Guarantor from its obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder. 

        Upon
request by the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent's authority to release its interest in particular types or
items of property, or to release any Guarantor from its obligations under the Guaranty pursuant to this Section 10.11. 

 
 

ARTICLE XI.
  MISCELLANEOUS    
    

        11.01    Amendments, Etc.    No amendment or waiver of any provision of this Agreement or any other Loan Document, and
no consent to any departure by the Borrower or any other Loan Party therefrom, shall be effective unless in writing signed by the Required Lenders and the Borrower or the applicable Loan Party, as the
case may be, and acknowledged by the Administrative Agent, and each such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given;  provided,
however, that no such amendment, waiver or consent shall: 

        (a)   waive
any condition set forth in Section 5.01(a) without the written consent of each Lender; 

        (b)   extend
or increase the Commitment of any Lender (or reinstate any Commitment terminated pursuant to Section 9.02)
without the written consent of such Lender; 

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        (c)   postpone
any date fixed by this Agreement or any other Loan Document for any payment (excluding mandatory prepayments) of principal, interest, fees or other amounts due
to the Lenders (or any of them) hereunder or under any other Loan Document without the written consent of each Lender directly affected thereby; 

        (d)   reduce
the principal of, or the rate of interest specified herein on, any Loan or L/C Borrowing, or (subject to clause (iii) of the second proviso to this  Section 11.01) any fees or other amounts
payable hereunder or under any other Loan Document, or change the manner of computation of any financial
ratio (including any change in any applicable defined term) used in determining the Applicable Rate that would result in a reduction of any interest rate on any Loan or any fee payable hereunder
without the written consent of each Lender directly affected thereby; provided, however, that only the
consent of the Required Lenders shall be necessary to amend the definition of "Default Rate" or to waive any obligation of the Borrower to pay interest
at the Default Rate; 

        (e)   change
Section 2.12 or Section 9.03 in a manner that would
alter the pro rata sharing of payments required thereby without the written consent of each Lender; 

        (f)    change
any provision of this Section or the definition of "Required Lenders" or any other provision hereof specifying the
number or percentage of Lenders required to amend, waive or otherwise modify any rights hereunder or make any determination or grant any consent hereunder, without the written consent of each Lender;
or 

        (g)   release
any Guarantor from the Guaranty or release all or a material part of the Collateral without the written consent of each Lender; 

and,
provided further, that (i) no amendment, waiver or consent shall, unless in writing and signed by the L/C Issuer in addition to the Lenders
required above, affect the rights or duties of the L/C Issuer under this Agreement or any Letter of Credit Application relating to any Letter of Credit issued or to be issued by it; (ii) no
amendment, waiver or consent shall, unless in writing and signed by the Administrative Agent in addition to the Lenders required above, affect the rights or duties of the Administrative Agent under
this Agreement or any other Loan Document; and (iii) the Fee Letter may be amended, or rights or privileges thereunder waived, in a writing executed only by the parties thereto. Notwithstanding
anything to the contrary herein, no Defaulting Lender shall have any right to approve or disapprove any amendment, waiver or consent hereunder, except that the Commitment of such Lender may not be
increased or extended without the consent of such Lender. 

        11.02    Notices and Other Communications; Facsimile Copies.    

        (a)    General.    Unless otherwise expressly provided herein, all notices and other communications provided for
hereunder shall be in writing (including by facsimile transmission). All such written notices shall be mailed, faxed or delivered to the applicable address, facsimile number or (subject to
subsection (c) below) electronic mail address, and all notices and other communications expressly permitted hereunder to be given by telephone shall be made to the applicable telephone number,
as follows: 

          (i)  if
to the Borrower, the Administrative Agent or the L/C Issuer, to the address, facsimile number, electronic mail address or telephone number specified for such Person
on Schedule 11.02 or to such
other address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the other parties; and 

         (ii)  if
to any other Lender, to the address, facsimile number, electronic mail address or telephone number specified in its Administrative Questionnaire or to such other
address, facsimile number, electronic mail address or telephone number as shall be designated by such party in a notice to the Borrower, the Administrative Agent and the L/C Issuer. 

61

   
All such notices and other communications shall be deemed to be given or made upon the earlier to occur of (i) actual receipt by the relevant party hereto and (ii) (A) if
delivered by hand or by courier, when signed for by or on behalf of the relevant party hereto; (B) if delivered by mail, four Business Days after deposit in the mails, postage prepaid,
addressed as aforesaid; (C) if delivered by facsimile, when sent and receipt has been confirmed by telephone; and (D) if delivered by electronic mail (which form of delivery is subject
to the provisions of subsection (c) below), when delivered; provided, however, that notices and
other communications to the Administrative Agent and the L/C Issuer pursuant to Article II shall not be effective until actually received by such
Person. In no event shall a voicemail message be effective as a notice, communication or confirmation hereunder. 

        (b)    Effectiveness of Facsimile Documents and Signatures.    Loan Documents may be transmitted and/or signed by
facsimile. The effectiveness of any such documents and signatures shall, subject to applicable Law, have the same force and effect as manually-signed originals and shall be binding on all Loan
Parties, the Administrative Agent and the Lenders. The Administrative Agent may also require that any such documents and signatures be confirmed by a manually-signed original thereof;  provided,
however, that the failure to request or deliver the same shall not limit the effectiveness of
any facsimile document or signature. 

        (c)    Limited Use of Electronic Mail.    Electronic mail and Internet and intranet websites may be used only to
distribute routine communications, such as financial statements and other information as provided in Section 7.02, and to distribute Loan
Documents for execution by the parties thereto, and may not be used for any other purpose. 

        (d)    Reliance by Administrative Agent and Lenders.    The Administrative Agent and the Lenders shall be entitled to
rely and act upon any notices (including telephonic Loan Notices) purportedly given by or on behalf of the Borrower even if (i) such notices were not made in a manner specified herein, were
incomplete or were not preceded or followed by any other form of notice specified herein, or (ii) the terms thereof, as understood by the recipient, varied from any confirmation thereof. The
Borrower shall indemnify each Agent-Related Person and each Lender from all losses, costs, expenses and liabilities resulting from the reliance by such Person on each notice purportedly given by or on
behalf of the Borrower. All telephonic notices to and other communications with the Administrative Agent may be recorded by the Administrative Agent, and each of the parties hereto hereby consents to
such recording. 

        11.03    No Waiver; Cumulative Remedies.    No failure by any Lender or the Administrative Agent to exercise, and no
delay by any such Person in exercising, any right, remedy, power or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or
privilege hereunder preclude any other or further exercise thereof or the exercise of
any other right, remedy, power or privilege. The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by
law. 

        11.04    Attorney Costs, Expenses and Taxes.    The Borrower agrees (a) to pay or reimburse the Administrative
Agent for all costs and expenses incurred in connection with the development, preparation, negotiation and execution of this Agreement and the other Loan Documents and any amendment, waiver, consent
or other modification of the provisions hereof and thereof (whether or not the transactions contemplated hereby or thereby are consummated), and the consummation and administration of the transactions
contemplated hereby and thereby, including all Attorney Costs, and (b) to pay or reimburse the Administrative Agent for all reasonable costs and expenses incurred in connection with the
enforcement, attempted enforcement, or preservation of any rights or remedies under this Agreement or the other Loan Documents (including all such costs and expenses incurred during any "workout" or
restructuring in respect of the Obligations and during any legal proceeding, including any proceeding under any Debtor Relief Law), including all Attorney Costs. The foregoing costs and expenses shall
include all search, filing, recording, title insurance and appraisal charges and 

62

 

fees
and taxes related thereto, and other out-of-pocket expenses incurred by the Administrative Agent and the cost of independent public accountants and other outside experts
retained by the Administrative Agent or any Lender. All amounts due under this Section 11.04 shall be payable within ten Business Days after
demand therefor. The agreements in this Section shall survive the termination of the Aggregate Commitments and repayment of all other Obligations. 

        11.05    Indemnification by the Borrower; Limitation of Liability.    Whether or not the transactions contemplated
hereby are consummated, the Borrower shall indemnify and hold harmless each Agent-Related Person, the Arranger, each Lender and their respective Affiliates, directors, officers, employees, counsel,
agents and attorneys-in-fact (collectively the "Indemnitees") from and against any and all liabilities, obligations, losses,
damages, penalties, claims, demands, actions, judgments, suits, costs, expenses and disbursements (including Attorney Costs) of any kind or nature whatsoever other than any non-third party
related special, consequential, punitive or indirect damages not specifically provided for herein, which may at any time be imposed on, incurred by or asserted against any such Indemnitee in any way
relating to or arising out of or in connection with (a) the execution, delivery, enforcement, performance or administration of any Loan Document or any other agreement, letter or instrument
delivered in connection with the transactions contemplated thereby or the consummation of the transactions contemplated thereby, (b) any Commitment, Loan or Letter of Credit or the use or
proposed use of the proceeds therefrom (including any refusal by the L/C Issuer to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not
strictly comply with the terms of such Letter of Credit), or (c) any actual or threatened claim, litigation, investigation or proceeding relating to any of the foregoing, whether based on
contract, tort or any other theory (including any investigation of, preparation for, or defense of any pending or prospective claim, investigation, litigation or proceeding) and regardless of whether
any Indemnitee is a party thereto (all the foregoing, collectively, the "Indemnified Liabilities");  provided that such indemnity shall not, as to any
Indemnitee, be available to the extent that such liabilities, obligations, losses, damages, penalties,
claims, demands, actions, judgments, suits, costs, expenses or disbursements are determined in a final and nonappealable judgment by a court of competent jurisdiction to have resulted primarily from
the gross negligence or
willful misconduct of such Indemnitee. The Borrower agrees that no Indemnitee shall have any liability (whether direct or indirect, in contract or tort or otherwise) to it or any of its Subsidiaries,
security holders or creditors as a result for any action taken or not taken by it arising out of, related to or taken in connection with any Loan Document or the consummation of the transactions
contemplated hereby or the actual or proposed use of Loan or Letter of Credit proceeds, except to the extent that such liability is found in a final non-appealable judgment by a court of
competent jurisdiction to have directly resulted from the gross negligence or willful misconduct of such Indemnitee, and in no event shall any Indemnitee be liable thereto for special, consequential,
punitive or indirect damages nor shall any Indemnitee have any liability for any indirect, special, punitive or consequential damages relating to this Agreement or any other Loan Document or arising
out of its activities in connection herewith or therewith (whether before or after the Closing Date). Without limitation of the foregoing, no Indemnitee shall be liable for any damages arising from
the use by others of any information or other materials obtained through any information transmission systems in connection with this Agreement. All amounts due under this  Section 11.05 shall be
payable within ten Business Days after demand therefor. The agreements in this Section shall survive the resignation of
the Administrative Agent, the replacement of any Lender, the termination of the Aggregate Commitments and the repayment, satisfaction or discharge of all the other Obligations. 

        11.06    Payments Set Aside.    To the extent that any payment by or on behalf of the Borrower is made to the
Administrative Agent or any Lender, or the Administrative Agent or any Lender exercises its right of set-off, and such payment or the proceeds of such set-off or any part
thereof is subsequently invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by the Administrative Agent or such Lender in
its discretion) to be repaid to a trustee, receiver or any other party, in connection with any proceeding under any Debtor Relief Law or 

63

 

otherwise,
then (a) to the extent of such recovery, the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment
had not been made or such set-off had not occurred, and (b) each Lender severally agrees to pay to the Administrative Agent upon demand its applicable share of any amount so
recovered from or repaid by the Administrative Agent, plus interest thereon from the date of such demand to the date such payment is made at a rate per annum equal to the Federal Funds Rate from time
to time in effect. 

        11.07    Successors and Assigns.    

        (a)   The
provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby,
except that the Borrower may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of each Lender and no Lender may assign or otherwise transfer
any of its rights or obligations hereunder except (i) to an Eligible Assignee in accordance with the provisions of subsection (b) of this Section, (ii) by way of participation in
accordance with the provisions of subsection (d) of this Section, or (iii) by way of pledge or assignment of a security interest subject to the restrictions of subsection (f) of
this Section (and any other attempted assignment, participation or transfer by any party hereto shall be null and void). Nothing in this Agreement, expressed or implied, shall be construed to confer
upon any Person (other than the parties hereto, their respective successors and assigns permitted hereby, Participants to the extent provided in subsection (d) of this Section and, to the
extent expressly contemplated hereby, the Indemnitees) any legal or equitable right, remedy or claim under or by reason of this Agreement. 

        (b)   Any
Lender may at any time assign to one or more Eligible Assignees all or a portion of its rights and obligations under this Agreement (including all or a portion of
its Commitment and the Loans (including for purposes of this subsection (b), participations in L/C Obligations) at the time owing to it);  provided that (i) except in the case of an assignment
of the entire remaining amount of the assigning Lender's Commitment and the Loans at the
time owing to it or in the case of an assignment to a Lender or an Affiliate of a Lender or an Approved Fund (as defined in subsection (g) of this Section) with respect to a Lender, the
aggregate amount of the Commitment (which for this purpose includes Loans outstanding thereunder) subject to each such assignment, determined as of the date the Assignment and Assumption with respect
to such assignment is delivered to the Administrative Agent or, if "Trade Date" is specified in the Assignment and Assumption, as of the Trade Date,
shall not be less than $5,000,000 unless the Administrative Agent and, so long as no Event of Default has occurred and is continuing, the Borrower otherwise consents (each such consent not to be
unreasonably withheld or delayed); (ii) each partial assignment shall be made as an assignment of a proportionate part of all the assigning Lender's rights and obligations under this Agreement
with respect to the Loans or the Commitment assigned; (iii) any assignment of a Commitment must be approved by the Administrative Agent and the L/C Issuer unless the Person that is the proposed
assignee is itself a Lender (whether or not the proposed assignee would otherwise qualify as an Eligible Assignee); (iv) the parties to each assignment shall execute and deliver to the
Administrative Agent an Assignment and Assumption, together with a processing and recordation fee of $3,500; and (v) Bank of America and its affiliates shall at all times maintain a majority of
the Aggregate Commitments. Subject to acceptance and recording thereof by the Administrative Agent pursuant to subsection (c) of this Section, from and after the effective date specified in
each Assignment and Assumption, the Eligible Assignee thereunder shall be a party to this Agreement and, to the extent of the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations
under this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Lender's rights and obligations under this Agreement, such Lender shall cease to be a party hereto
but shall continue to be entitled to the benefits of Sections 3.01, 3.04,  3.05, 11.04 and 11.05 with respect to facts and
circumstances occurring prior to the effective date of such assignment). Upon request, the Borrower (at its expense) shall 

64

 

execute
and deliver a Note to the assignee Lender. Any assignment or transfer by a Lender of rights or obligations under this Agreement that does not comply with this subsection shall be treated for
purposes of this Agreement as a sale by such Lender of a participation in such rights and obligations in accordance with subsection (d) of this Section. 

        (c)   The
Administrative Agent, acting solely for this purpose as an agent of the Borrower, shall maintain at the Administrative Agent's Office a copy of each Assignment and
Assumption delivered to it and a register for the recordation of the names and addresses of the Lenders, and the Commitments of, and principal amounts of the Loans and L/C Obligations owing to, each
Lender pursuant to the terms hereof from time to time (the "Register"). The entries in the Register shall be conclusive, and the Borrower, the
Administrative Agent and the Lenders may treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by the Borrower and any Lender, at any reasonable time and from time to time upon reasonable prior notice. 

        (d)   Any
Lender may at any time, without the consent of, or notice to, the Borrower or the Administrative Agent, sell participations to any Person (other than a natural
person or the Borrower or any of the Borrower's Affiliates or Subsidiaries) (each, a "Participant") in all or a portion of such Lender's rights and/or
obligations under this Agreement (including all or a portion of its Commitment and/or the Loans (including such Lender's participations in L/C Obligations) owing to it);  provided that (i) such
Lender's obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible
to the other parties hereto for the performance of such obligations and (iii) the Borrower, the Administrative Agent and the other Lenders shall continue to deal solely and directly with such
Lender in connection with such Lender's rights and obligations under this Agreement. Any agreement or instrument pursuant to which a Lender sells such a participation shall provide that such Lender
shall retain the sole right to enforce this Agreement and to approve any amendment, modification or waiver of any provision of this Agreement; provided
that such agreement or instrument may provide that such Lender will not, without the consent of the Participant, agree to any amendment, waiver or other modification described in clauses
(c) and (d) of the first proviso to Section 11.01 that directly affects such Participant. Subject to subsection (e) of this
Section, the Borrower agrees that each Participant shall be entitled to the benefits of Sections 3.01,  3.04 and 3.05 to the same extent as if it were a Lender and had acquired its interest by assignment
pursuant to subsection (b) of this Section. To the extent permitted by law, each Participant also shall be entitled to the benefits of  Section 11.09 as though it were a Lender, provided such Participant agrees to be subject to  Section 2.12 as though it were a Lender. 

        (e)   A
Participant shall not be entitled to receive any greater payment under Section 3.01 or  3.04 than the applicable Lender would have been entitled to
receive with respect to the participation sold to such Participant, unless the sale of the
participation to such Participant is made with the Borrower's prior written consent. A Participant that would be a Foreign Lender if it were a Lender shall not be entitled to the benefits of  Section 3.01 unless the Borrower is notified of the participation sold to such Participant and such Participant agrees, for the benefit of the
Borrower, to comply with Section 11.15 as though it were a Lender. 

        (f)    Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement (including under its Note, if any) to secure
obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank; provided that no such pledge or
assignment shall release such Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender as a party hereto. 

        (g)   As
used herein, the following terms have the following meanings: 

        "Eligible Assignee" means (a) a Lender; (b) an Affiliate of a Lender; (c) an Approved Fund; and (d) any other
Person (other than a natural person) approved by (i) the Administrative Agent 

65

 

and
the L/C Issuer, and (ii) unless an Event of Default has occurred and is continuing, the Borrower (each such approval not to be unreasonably withheld or delayed);  provided that notwithstanding the
foregoing, "Eligible Assignee" shall not include the Borrower or any
of the Borrower's Affiliates or Subsidiaries. 

        "Fund" means any Person (other than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing
in commercial loans and similar extensions of credit in the ordinary course of its business. 

        "Approved Fund" means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or
(c) an entity or an Affiliate of an entity that administers or manages a Lender. 

        (h)   Notwithstanding
anything to the contrary contained herein, if at any time Bank of America assigns all of its Commitment and Loans pursuant to subsection (b)
above, Bank of America may, upon 30 days' notice to the Borrower and the Lenders, resign as L/C Issuer. In the event of any such resignation as L/C Issuer, the Borrower shall be entitled to
appoint from among the Lenders a successor L/C Issuer hereunder; provided, however, that no failure by
the Borrower to appoint any such successor shall affect the resignation of Bank of America as L/C Issuer. If Bank of America resigns as L/C Issuer, it shall retain all the rights and obligations of
the L/C Issuer hereunder with respect to all Letters of Credit outstanding as of the effective date of its resignation as L/C Issuer and all L/C Obligations with respect thereto (including the right
to require the Lenders to make Base Rate Loans or fund risk participations in Unreimbursed Amounts pursuant to Section 2.03(c)). 

        11.08    Confidentiality.    Each of the Administrative Agent and the Lenders agrees to maintain the confidentiality
of the Information (as defined below), except that Information may be disclosed (a) to its and its Affiliates' directors, officers, employees and agents, including accountants, legal counsel
and other advisors who need to know such Information (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential); (b) to the extent requested by any regulatory authority; (c) to the extent required by applicable laws or regulations or by any
subpoena or similar legal process; (d) to any other party to this Agreement; (e) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to
this Agreement or the enforcement of rights hereunder; (f) subject to an agreement containing provisions substantially the same as those of this Section, to (i) any Eligible Assignee of
or Participant in, or any prospective Eligible Assignee of or Participant in, any of its rights or obligations under this Agreement or (ii) any direct or indirect contractual counterparty or
prospective counterparty (or such contractual counterparty's or prospective counterparty's professional advisor) to any credit derivative transaction relating to obligations of the Loan Parties;
(g) with the consent of the Borrower; (h) to the extent such Information (i) becomes publicly available other than as a result of a breach of this Section or (ii) becomes
available to the Administrative Agent or any Lender on a nonconfidential basis from a source other than the Borrower; or (i) to the National Association of Insurance Commissioners or any other
similar organization. In addition, the Administrative Agent and the Lenders may disclose the existence of this Agreement and information about this Agreement to market data collectors, similar service
providers to the lending industry, and service providers to the Administrative Agent and the Lenders in connection with the administration and management of this Agreement, the other Loan Documents,
the Commitments, and the Credit Extensions. For the purposes of this Section, "Information" means all information received from any Loan Party relating
to any Loan Party or its business, assets, properties, liabilities, operations or results of operations, financial condition, customers and suppliers, other than any such information that is available
to the Administrative Agent or any Lender on a nonconfidential basis prior to disclosure by any Loan Party; provided that, in the case of information
received from a Loan Party after the date hereof, such information is clearly identified in writing at the time of delivery as confidential. Any Person required to maintain the confidentiality of
Information as provided in this Section shall be 

66

 

considered
to have complied with its obligation to do so if such Person has exercised the same degree of care to maintain the confidentiality of such Information as such Person would accord to its own
confidential information. 

        11.09 Set-off.    In addition to any rights and remedies of the Lenders provided by law, upon the occurrence and
during the continuance of any Event of Default, each Lender is authorized at any time and from time to time, without prior notice to the Borrower or any other Loan Party, any such notice being waived
by the Borrower (on its own behalf and on behalf of each Loan Party) to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional
or final) at any time held by, and other indebtedness at any time owing by, such Lender to or for the credit or the account of the respective Loan Parties against any and all Obligations owing to such
Lender hereunder or under any other Loan Document, now or hereafter existing, irrespective of whether or not the Administrative Agent or such Lender shall have made demand under this Agreement or any
other Loan Document and although such Obligations may be denominated in a currency different from that of the applicable deposit or indebtedness. Each Lender agrees promptly to notify the Borrower and
the Administrative Agent after any such set-off and application made by such Lender; provided,  however, that the failure to give such notice shall not
affect the validity of such set-off and application. 

        11.10 Interest Rate Limitation.    Notwithstanding anything to the contrary contained in any Loan Document, the interest
paid or agreed to be paid under the Loan Documents shall not exceed the maximum rate of non-usurious interest permitted by applicable Law (the "Maximum
Rate"). If the Administrative Agent or any Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of
the Loans or, if it exceeds such unpaid principal, refunded to the Borrower. In determining whether the interest contracted for, charged or received by the Administrative Agent or a Lender exceeds the
Maximum Rate, such Person may, to the extent permitted by applicable Law, (a) characterize any payment that is not principal as an expense, fee, or premium rather than interest,
(b) exclude voluntary prepayments and the effects thereof, and (c) amortize, prorate, allocate and spread in equal or unequal parts the total amount of interest throughout the
contemplated term of the Obligations hereunder. 

        11.11 Counterparts.    This Agreement may be executed in one or more counterparts, each of which shall be deemed an original,
but all of which together shall constitute one and the same instrument. 

        11.12 Integration.    This Agreement, together with the other Loan Documents, comprises the complete and integrated agreement of
the parties on the subject matter hereof and thereof and supersedes all prior agreements, written or oral, on such subject matter. In the event of any conflict between the provisions of this Agreement
and those of any other Loan Document, the provisions of this Agreement shall control; provided that the inclusion of supplemental rights or remedies in
favor of the Administrative Agent or the Lenders in any other Loan Document shall not be deemed a conflict with this Agreement. Each Loan Document was drafted with the joint participation of the
respective parties thereto and shall be construed neither against nor in favor of any party, but rather in accordance with the fair meaning thereof. 

        11.13 Survival of Representations and Warranties.    All representations and warranties made hereunder and in any other Loan
Document or other document delivered pursuant hereto or thereto or in connection herewith or therewith shall survive the execution and delivery hereof and thereof. Such representations and warranties
have been or will be relied upon by the Administrative Agent and each Lender, regardless of any investigation made by the Administrative Agent or any Lender or on their behalf and notwithstanding that
the Administrative Agent or any Lender may have had notice or knowledge of any Default at the time of any Credit Extension, and shall continue in full force and 

67

 

effect
as long as any Loan or any other Obligation hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall remain outstanding. 

        11.14 Severability.    If any provision of this Agreement or the other Loan Documents is held to be illegal, invalid or
unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Agreement and the other Loan Documents shall not be affected or impaired thereby and
(b) the parties shall endeavor in good faith negotiations to replace the illegal, invalid or unenforceable provisions with
valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a particular jurisdiction shall
not invalidate or render unenforceable such provision in any other jurisdiction. 

        11.15 Tax Forms.    

	(a)
	(i)    Each
Lender that is not a "United States person" within the meaning of Section 7701(a)(30) of the Code (a "Foreign
Lender") shall deliver to the Administrative Agent, prior to receipt of any payment subject to withholding under the Code (or upon accepting an assignment of an interest
herein), two duly signed completed copies of either IRS Form W-8BEN or any successor thereto (relating to such Foreign Lender and entitling it to an exemption from, or reduction of,
withholding tax on all payments to be made to such Foreign Lender by the Borrower pursuant to this Agreement) or IRS Form W-8ECI or any successor thereto (relating to all payments
to be made to such Foreign Lender by the Borrower pursuant to this Agreement) or such other evidence satisfactory to the Borrower and the Administrative Agent that such Foreign Lender is entitled to
an exemption from, or reduction of, U.S. withholding tax, including any exemption pursuant to Section 881(c) of the Code. Thereafter and from time to time, each such Foreign Lender shall
(A) promptly submit to the Administrative Agent such additional duly completed and signed copies of one of such forms (or such successor forms as shall be adopted from time to time by the
relevant United States taxing authorities) as may then be available under then current United States laws and regulations to avoid, or such evidence as is satisfactory to the Borrower and the
Administrative Agent of any available exemption from or reduction of, United States withholding taxes in respect of all payments to be made to such Foreign Lender by the Borrower pursuant to this
Agreement, (B) promptly notify the Administrative Agent of any change in circumstances which would modify or render invalid any claimed exemption or reduction, and (C) take such steps as
shall not be materially disadvantageous to it, in the reasonable judgment of such Lender, and as may be reasonably necessary (including the re-designation of its Lending Office) to avoid
any requirement of applicable Laws that the Borrower make any deduction or withholding for taxes from amounts payable to such Foreign Lender. 

         (ii)  Each
Foreign Lender, to the extent it does not act or ceases to act for its own account with respect to any portion of any sums paid or payable to such Lender under any
of the Loan Documents (for example, in the case of a typical participation by such Lender), shall deliver to the Administrative Agent on the date when such Foreign Lender ceases to act for its own
account with respect to any portion of any such sums paid or payable, and at such other times as may be necessary in the determination of the Administrative Agent (in the reasonable exercise of its
discretion), (A) two duly signed completed copies of the forms or statements required to be provided by such Lender as set forth above, to establish the portion of any such sums paid or payable
with respect to which such Lender acts for its own account that is not subject to U.S. withholding tax, and (B) two duly signed completed copies of IRS Form W-8IMY (or any
successor thereto), together with any information such Lender chooses to transmit with such form, and any other certificate or statement of exemption required under the Code, to establish that such
Lender is not acting for its own account with respect to a portion of any such sums payable to such Lender. 

68

 

        (iii)  The
Borrower shall not be required to pay any additional amount to any Foreign Lender under Section 3.01
(A) with respect to any Taxes required to be deducted or withheld on the basis of the information, certificates or statements of exemption such Lender transmits with an IRS
Form W-8IMY pursuant to this Section 11.15(a) or (B) if such Lender shall have failed to satisfy the foregoing
provisions of this Section 11.15(a); provided that if such Lender shall have satisfied the
requirement of this Section 11.15(a) on the date such Lender became a Lender or ceased to act for its own account with respect to any payment
under any of the Loan Documents, nothing in this Section 11.15(a) shall relieve the Borrower of its obligation to pay any amounts pursuant to  Section 3.01 in the event that, as a result of any change in any applicable law, treaty or governmental rule, regulation or order, or any change
in the interpretation, administration or application thereof, such Lender is no longer properly entitled to deliver forms, certificates or other evidence at a subsequent date establishing the fact
that such Lender or other Person for the account of which such Lender receives any sums payable under any of the Loan Documents is not subject to withholding or is subject to withholding at a reduced
rate. 

        (iv)  The
Administrative Agent may, without reduction, withhold any Taxes required to be deducted and withheld from any payment under any of the Loan Documents with respect
to which the Borrower is not required to pay additional amounts under this Section 11.15(a). 

        (b)   Upon
the request of the Administrative Agent, each Lender that is a "United States person" within the meaning of Section 7701(a)(30) of the Code shall deliver to
the Administrative Agent two duly signed completed copies of IRS Form W-9. If such Lender fails to deliver such forms, then the Administrative Agent may withhold from any interest
payment to such Lender an amount equivalent to the applicable back-up withholding tax imposed by the Code, without reduction. 

        (c)   If
any Governmental Authority asserts that the Administrative Agent did not properly withhold or backup withhold, as the case may be, any tax or other amount from
payments made to or for the account of any Lender, such Lender shall indemnify the Administrative Agent therefor, including all penalties and interest, any taxes imposed by any jurisdiction on the
amounts payable to the Administrative Agent under this Section, and costs and expenses (including Attorney Costs) of the Administrative Agent. The obligation of the Lenders under this Section shall
survive the termination of the Aggregate Commitments, repayment of all other Obligations hereunder and the resignation of the Administrative Agent. 

        11.16 Governing Law.    

        (a)   THIS
AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE AND TO BE PERFORMED ENTIRELY WITHIN
SUCH STATE; PROVIDED THAT THE ADMINISTRATIVE AGENT AND EACH LENDER SHALL RETAIN ALL RIGHTS ARISING UNDER FEDERAL LAW. 

        (b)   ANY
LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN THE COUNTY OF
NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER CONSENTS, FOR ITSELF
AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION 

69

 

OR
PROCEEDING IN SUCH JURISDICTION IN RESPECT OF ANY LOAN DOCUMENT OR OTHER DOCUMENT RELATED THERETO. THE BORROWER, THE ADMINISTRATIVE AGENT AND EACH LENDER WAIVES PERSONAL SERVICE OF ANY SUMMONS,
COMPLAINT OR OTHER PROCESS, WHICH MAY BE MADE BY ANY OTHER MEANS PERMITTED BY THE LAW OF SUCH STATE. 

        11.17 Waiver of Right to Trial by Jury.    EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF
ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER ANY LOAN DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO
ANY LOAN DOCUMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER FOUNDED IN CONTRACT OR TORT OR
OTHERWISE; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY
FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY. 

70

 

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

	 	 	NEUSTAR, INC.
	

 	
 	

By:	

/s/  ROBERT P. DOWSKI      
	 	 	 	

	 	 	Name:	Robert P. Dowski
	 	 	Title:	Chief Financial Officer

71

 

	 	 	BANK OF AMERICA, N.A., as Administrative Agent
	

 	
 	

By:	

/s/  ELIZABETH F. SHORE      
	 	 	 	

	 	 	Name:	Elizabeth F. Shore
	 	 	Title:	Senior Vice President

72

 

	 	 	BANK OF AMERICA, N.A., as a Lender and L/C Issuer
	

 	
 	

By:	

/s/  ELIZABETH F. SHORE      
	 	 	 	

	 	 	Name:	Elizabeth F. Shore
	 	 	Title:	Senior Vice President

73

 
 

AMENDMENT NO. 1 TO CREDIT AGREEMENT    
    

        This Amendment No. 1 to Credit Agreement (this "Agreement") dated as of October 1, 2003 is made by
and between NEUSTAR, INC., a Delaware corporation having its principal place of business in Sterling, Virginia (the "Borrower"), and BANK OF
AMERICA, N.A., a national banking association organized and existing under the laws of the United States ("Bank of America"), in its capacity as
administrative agent for the Lenders (as defined in the Credit Agreement (as defined below)) (in such capacity, the "Administrative Agent"), and each of
the Lenders signatory hereto, and each of the Guarantors (as defined in the Credit Agreement) signatory hereto. 

W I T N E S S E T H:  

        WHEREAS, the Borrower, the Administrative Agent and the Lenders have entered into that certain Credit Agreement
dated as of August 14, 2002 (as hereby amended and as from time to time hereafter further amended, modified, supplemented, restated, or amended and restated, the "Credit
Agreement"; capitalized terms used in this Agreement not otherwise defined herein shall have the respective meanings given thereto in the Credit Agreement), pursuant to which
the Lenders have made available to the Borrower a revolving credit facility, including a letter of credit facility; and 

        WHEREAS, each of the Guarantors has entered into a Guaranty pursuant to which it has guaranteed the payment and performance when due of
the obligations of the Borrower under the Credit Agreement and the other Loan Documents; and 

        WHEREAS, the Borrower has advised the Administrative Agent and the Lenders that it desires to amend certain provisions of the Credit
Agreement as set forth below and the Administrative Agent and the Lenders are willing to effect such amendment on the terms and conditions contained in this Agreement; 

        NOW, THEREFORE, in consideration of the premises and further valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows: 

        1.    Amendments to Credit Agreement.    Subject to the terms and conditions set forth herein, the Credit Agreement is
hereby amended as follows: 

        A.    Amendment of Section 1.01.    The definitions of "DB Guaranty" and "DB Loan Agreement" are deleted in
their entirety; the definitions of "Master Trust Agreement", "SOW Receivables Securitization", and "SOW Receivables Securitizations Documents" are amended and restated in their entirety to read as
follows and new definitions of "BofA Credit Agreement", "BofA Guaranty", "Servicing Agreement" and "Transfer Agreement" are added, all to read as follows: 

        "BofA Credit Agreement" means that certain credit agreement dated as of October 1, 2003, by and between NeuStar Funding and Bank of
America, as from time to time hereafter amended, modified, supplemented, restated, or amended and restated. 

        "BofA Guaranty" means the Parent Limited Guaranty dated as of October 1, 2003 by the Borrower in favor of Bank of America relating
to the obligations of NeuStar Funding to Bank of America under the BofA Credit Agreement, as from time to time hereafter amended, modified, supplemented, restated, or amended and restated. 

        "Master Trust Agreement" means the Amended and Restated Master Trust Agreement dated as of October 1, 2003, by and among NeuStar
Funding, The Bank of New York, as trustee, and The Bank of New York (Delaware), as Delaware trustee, as from time to time hereafter further amended, modified, supplemented, restated, or amended and
restated. 

        "SOW Receivables" shall have the meaning assigned thereto in the Transfer Agreement. 

        "SOW Receivables Securitization" means the securitization of SOW Receivables pursuant to the SOW Receivables Securitization Documents. 

 

        "SOW Receivables Securitization Documents" means (a) the BofA Credit Agreement, the BofA Guaranty and the other Loan Documents (as
defined in the BofA Credit Agreement), each dated as of October 1, 2003, and (b) each other Bank Credit Agreement, as defined in the Master Trust Agreement, and all other agreements,
documents and instruments relating to any of the transactions contemplated by any Bank Credit Agreement or delivered pursuant thereto, entered into from time to time relating
to the securitization of the SOW Receivables, and (c) the Master Trust Agreement, the Servicing Agreement and the Transfer Agreement. 

        "Servicing Agreement" means the Amended and Restated Servicing Agreement, dated as of October 1, 2003, by and among Bank of
America, the Borrower, NeuStar Funding, NeuStar Master Trust and BNY Asset Solutions LLC, as from time to time hereafter further amended, modified, supplemented, restated, or amended and restated. 

        "Transfer Agreement" means the Amended and Restated Receivables Transfer Agreement dated as of October 1, 2003, by and between the
Borrower and NeuStar Funding, as from time to time hereafter further amended, modified, supplemented, restated, or amended and restated. 

        B.    References to DB Guaranty and DB Loan Agreement.    All references to the DB Guaranty and the DB Loan Agreement
are hereby deleted in their entirety and shall be deemed to be references, unless the context indicates otherwise, to the Transfer Agreement. 

        C.    Amendment of Consolidated Net Worth Covenant.    The Consolidated Net Worth covenant set forth in
Section 8.11(a) of the Credit Agreement is amended and restated to read as follows: 

        (a)    Consolidated Net Worth.    Permit Consolidated Net Worth at any time to be less than
(i) $60,000,000, plus (ii) 100% of the aggregate amount of all increases in the stated capital and additional paid-in capital accounts of the Borrower resulting from the
issuance of equity securities occurring after the Closing Date, provided, however, that
(i) restructuring costs in an aggregate amount up to $6,500,000 actually incurred by the Borrower or its Subsidiaries during the fiscal quarter ending September 30, 2002 in connection
with the closure of certain offices of the Borrower or its Subsidiaries in Washington, D.C. and Chicago, Illinois and (ii) impairment charges in connection with the write-down of
assets in an aggregate amount of up to $13,000,000 taken during the fiscal year ending December 31, 2002 shall not be taken into account in calculating Consolidated Net Worth. 

        D.    Amendment of Section 9.01(e).    Section 9.1(e) of the Credit Agreement is amended to change the
reference to "the DB Guaranty" in the last line thereof to "the BofA Guaranty". 

        2.    Effectiveness; Conditions Precedent.    The effectiveness of this Agreement and the amendments to the Credit
Agreement herein provided are subject to the satisfaction of the following conditions precedent: 

        (a)   the
Administrative Agent shall have received each of the following documents or instruments in form and substance reasonably acceptable to the Administrative Agent: 

          (i)  four
(4) original counterparts of this Agreement, duly executed by the Borrower, the Administrative Agent, each Guarantor and the Required Lenders; 

         (ii)  such
other documents, instruments, opinions, certifications, undertakings, further assurances and other matters as the Administrative Agent shall reasonably request;
and 

        (b)   all
fees and expenses payable to the Administrative Agent and the Lenders (including the reasonable fees and expenses of counsel to the Administrative Agent) estimated
to date shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses). 

2

 

        3.    Consent of the Guarantors.    Each Guarantor hereby consents, acknowledges and agrees to the amendments set
forth herein and hereby confirms and ratifies in all respects the Guaranty to which such Guarantor is a party (including without limitation the continuation of such Guarantor's payment and performance
when due of the obligations thereunder upon and after the effectiveness of this Agreement and the amendments contemplated hereby) and the enforceability of such Guaranty against such Guarantor in
accordance with its terms. 

        4.    Representations and Warranties.    In order to induce the Administrative Agent and the Lenders to enter into
this Agreement, the Borrower represents and warrants to the Administrative Agent and the Lenders as follows: 

        5.     (a) The
representations and warranties made by the Borrower in Article VI of the Credit Agreement and in
each of the other Loan Documents to which it is a party are true and correct on and as of the date hereof, except to the extent that such representations and warranties expressly relate to an earlier
date; 

        (b)   Since
the date of the most recent financial reports of the Borrower delivered pursuant to Section 7.01of the
Credit Agreement, no act, event, condition or circumstance has occurred or arisen which, singly or in the aggregate with one or more other acts, events, occurrences or conditions (whenever occurring
or arising), has had or could reasonably be expected to have a Material Adverse Effect; 

        (c)   The
Persons appearing as Guarantors on the signature pages to this Agreement constitute all Persons who are required to be Guarantors pursuant to the terms of the Credit
Agreement and the
other Loan Documents, including without limitation all Persons who became Subsidiaries or were otherwise required to become Guarantors after the Closing Date, and each of such Persons has become and
remains a party to a Guaranty as a Guarantor; 

        (d)   This
Agreement has been duly authorized, executed and delivered by the Borrower and the Guarantors and constitutes a legal, valid and binding obligation of such parties,
except as may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally; and 

        (e)   No
Default or Event of Default has occurred and is continuing. 

        6.    Entire Agreement.    This Agreement, together with all the Loan Documents (collectively, the
"Relevant Documents"), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes
any prior negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents
shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated
in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other. None of the terms or conditions of this Agreement may be
changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 11.01 of the Credit Agreement. 

        7.    Full Force and Effect of Agreement.    Except as hereby specifically amended, modified or supplemented, the
Credit Agreement and all other Loan Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms. 

        8.    Counterparts.    This Agreement may be executed in any number of counterparts, each of which shall be deemed an
original as against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. 

        9.    Governing Law.    This Agreement shall in all respects be governed by, and construed in accordance with, the
laws of the State of New York applicable to contracts executed and to be 

3

 

performed
entirely within such State, and shall be further subject to the provisions of Section 11.16 of the Credit Agreement. 

        10.    Enforceability.    Should any one or more of the provisions of this Agreement be determined to be illegal or
unenforceable as to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. 

        11.    References.    All references in any of the Loan Documents to the "Credit Agreement" shall mean the Credit
Agreement, as amended hereby. 

        12.    Successors and Assigns.    This Agreement shall be binding upon and inure to the benefit of the Borrower, the
Administrative Agent and each of the Guarantors and the Lenders, and their respective successors, legal representatives, and assignees to the extent such assignees are permitted assignees as provided
in Section 11.07 of the Credit Agreement. 

4

 

        IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 1 to Credit Agreement to be made, executed and delivered by
their duly authorized officers as of the day and year first above written. 

	 	 	BORROWER:
	

 	
 	
NEUSTAR, INC.
	

 	
 	

By:	
 	

/s/  ROBERT DOWSKI      

	 	 	Name:	 	Robert Dowski
	 	 	Title:	 	Chief Financial Officer
	

 	
 	
GUARANTORS:
	

 	
 	
BIZTELONE, INC.
	

 	
 	

By:	
 	

/s/  ROBERT DOWSKI      

	 	 	Name:	 	Robert Dowski
	 	 	Title:	 	Chief Financial Officer
	

 	
 	
NIGHTFIRE ACQUISITION CORPORATION
	

 	
 	

By:	
 	

/s/  ROBERT DOWSKI      

	 	 	Name:	 	Robert Dowski
	 	 	Title:	 	Chief Financial Officer
	 	 	 	 	 

5

 

	

 	
 	
ADMINISTRATIVE AGENT:
	

 	
 	
BANK OF AMERICA, N.A., as Administrative Agent
	

 	
 	

By:	
 	

/s/  ELIZABETH F. SHORE      

	 	 	Name:	 	Elizabeth F. Shore
	 	 	Title:	 	Senior Vice President
	 	 	 	 	 

6

 

	

 	
 	
LENDERS:
	

 	
 	
BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

/s/  ELIZABETH F. SHORE      

	 	 	Name:	 	Elizabeth F. Shore
	 	 	Title:	 	Senior Vice President

7

 
 

AMENDMENT NO. 2 TO CREDIT AGREEMENT    
    

        This Amendment No. 2 to Credit Agreement (this "Agreement") dated as of August 30, 2004 is made by
and between NEUSTAR, INC., a Delaware corporation having its principal place of business in Sterling, Virginia (the "Borrower"), and BANK OF
AMERICA, N.A., a national banking association organized and existing under the laws of the United States ("Bank of America"), in its capacity as
administrative agent for the Lenders (as defined in the Credit Agreement (as defined below)) (in such capacity, the "Administrative Agent"), and each of
the Lenders signatory hereto, and each of the Guarantors (as defined in the Credit Agreement) signatory hereto. 

 
 

W I T N E S S E T H:    
    

        WHEREAS, the Borrower, the Administrative Agent and the Lenders have entered into that certain Credit Agreement
dated as of August 14, 2002, as amended by Agreement No. 1 to Credit Agreement dated as of October 1, 2003 (and as hereby amended and as from time to time hereafter further
amended, modified, supplemented, restated, or amended and restated, the "Credit Agreement"; capitalized terms used in this Agreement not otherwise
defined herein shall have the respective meanings given thereto in the Credit Agreement), pursuant to which the Lenders have made available to the Borrower a revolving credit facility, including a
letter of credit facility; and 

        WHEREAS, the Maturity Date under the Credit Agreement is August 14, 2004; and 

        WHEREAS, the Borrower desires to extend the Maturity Date for a 180-day period ending January 8, 2005; and 

        WHEREAS, the Borrower has requested that the Credit Agreement be amended to reflect such extension in the Maturity Date, to eliminate
certain reporting requirements regarding its various lines of business, to modify the pricing and to modify the capital expenditure covenant; 

        NOW, THEREFORE, in consideration of the premises and further valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto agree as follows: 

        1.     Amendments to Credit Agreement. Subject to the terms and conditions set forth herein, the Credit Agreement is hereby
amended as follows: 

        A.    Amendment to Section 1.1 of the Credit Agreement. The definitions of "Applicable Rate" and "Maturity Date" are
amended and restated in its entirety to read as follows: 

        "Applicable Rate" means, the following percentages per annum, based upon the Consolidated Leverage Ratio as set forth in the most recent
Compliance Certificate received by the Administrative Agent pursuant to Section 7.02(b): 

 
 

Applicable Rate    
    

	Pricing

Level
	 	Consolidated

Leverage Ratio
	 	Commitment

Fee
	 	Eurodollar

Rate, LIBOR

Daily Floating

Rate and Letter

of Credit Fee
	 	Base Rate
	 
	1	 	£1.00:1	 	.300	%	1.25	%	.000	%
	2	 	>1.00:1 but £1.50:1	 	.375	%	1.50	%	.000	%
	3	 	>1.50:1 but £2.00:1	 	.425	%	1.75	%	.250	%
	4	 	>2.00:1	 	.500	%	2.25	%	.75	%

Any
increase or decrease in the Applicable Rate resulting from a change in the Consolidated Leverage Ratio shall become effective as of the third Business Day immediately following the date a
Compliance Certificate is received by the Administrative Agent pursuant to Section 7.02(b); provided,  however, that if a Compliance Certificate is not
received by the Administrative Agent when due in accordance with such Section, then pricing level 4
shall apply as of the third Business 

 

Day
after the date on which such Compliance Certificate was required to have been delivered to the Administrative Agent until such Compliance Certificate is delivered. 

"Maturity
Date" means January 8, 2005. 

        B.    Amendment to Section 7.01 of the Credit Agreement. Sections 7.01(a) and
(b) of the Credit Agreement are hereby amended to delete the words "as well as line of business level income statements (down to EBITDA level)" in the fourth and fifth lines of
each such sections. 

        C.    Amendment to Section 7.02(a) of the Credit Agreement.  Section 7.02(a) of the Credit Agreement is hereby amended to delete the words "and line of business
level income statements" in the third and
fourth lines thereof. 

        D.    Amendment to Section 8.11(b) of the Credit Agreement.  Section 8.11(b) of the Credit Agreement is hereby deleted in its entirety. 

        E.    Amendment to Section 8.12. Section 8.12 of the Credit
Agreement is hereby amended and restated in its entirety to read as follows: 

        8.12    Capital Expenditures.    Make or become legally obligated to make any expenditure in respect of the purchase
or other acquisition of any fixed or capital asset (excluding normal replacements and maintenance which are properly charged to current operations), except for capital expenditures in the ordinary
course of business not exceeding, in the aggregate for the Borrower and it Subsidiaries, $20,000,000 in each fiscal year. 

        2.     Effectiveness; Conditions Precedent. The effectiveness of this Agreement and the amendments to the Credit Agreement herein
provided are subject to the satisfaction of the following conditions precedent: 

        (a)   the
Administrative Agent shall have received each of the following documents or instruments in form and substance reasonably acceptable to the Administrative Agent: 

	(i)
	four
(4) original counterparts of this Agreement, duly executed by the Borrower, the Administrative Agent, each Guarantor and the Required Lenders;

	(ii)
	such
other documents, instruments, opinions, certifications, undertakings, further assurances and other matters as the Administrative Agent shall reasonably request; and 

        (b)   all
fees and expenses payable to the Administrative Agent and the Lenders (including the reasonable fees and expenses of counsel to the Administrative Agent) estimated
to date shall have been paid in full (without prejudice to final settling of accounts for such fees and expenses). 

        3.     Consent of the Guarantors. Each Guarantor hereby consents, acknowledges and agrees to the amendments set forth herein and
hereby confirms and ratifies in all respects the Guaranty to which such Guarantor is a party (including without limitation the continuation of such Guarantor's payment and performance when due of the
obligations thereunder upon and after the effectiveness of this Agreement and the amendments contemplated hereby) and the enforceability of such Guaranty against such Guarantor in accordance with its
terms. 

        4.     Representations and Warranties. In order to induce the Administrative Agent and the Lenders to enter into this Agreement,
the Borrower represents and warrants to the Administrative Agent and the Lenders as follows: 

        (a)   The
representations and warranties made by the Borrower in Article VI of the Credit Agreement and in each of the
other Loan Documents to which it is a party are true and correct on and as of the date hereof, except to the extent that such representations and warranties expressly relate to an earlier date; 

2

 

        (b)   Since
the date of the most recent financial reports of the Borrower delivered pursuant to Section 7.01 of the
Credit Agreement, no act, event, condition or circumstance has occurred or arisen which, singly or in the aggregate with one or more other acts, events, occurrences or conditions (whenever occurring
or arising), has had or could reasonably be expected to have a Material Adverse Effect; 

        (c)   The
Persons appearing as Guarantors on the signature pages to this Agreement constitute all Persons who are required to be Guarantors pursuant to the terms of the Credit
Agreement and the other Loan Documents, including without limitation all Persons who became Subsidiaries or were otherwise required to become Guarantors after the Closing Date, and each of such
Persons has become and remains a party to a Guaranty as a Guarantor; 

        (d)   This
Agreement has been duly authorized, executed and delivered by the Borrower and the Guarantors and constitutes a legal, valid and binding obligation of such parties,
except as may be limited by general principles of equity or by the effect of any applicable bankruptcy, insolvency, reorganization, moratorium or similar law affecting creditors' rights generally; and 

        (e)   No
Default or Event of Default has occurred and is continuing. 

        5.     Entire Agreement. This Agreement, together with all the Loan Documents (collectively, the
"Relevant Documents"), sets forth the entire understanding and agreement of the parties hereto in relation to the subject matter hereof and supersedes
any prior negotiations and agreements among the parties relating to such subject matter. No promise, condition, representation or warranty, express or implied, not set forth in the Relevant Documents
shall bind any party hereto, and no such party has relied on any such promise, condition, representation or warranty. Each of the parties hereto acknowledges that, except as otherwise expressly stated
in the Relevant Documents, no representations, warranties or commitments, express or implied, have been made by any party to the other. None of the terms or conditions of this Agreement may be
changed, modified, waived or canceled orally or otherwise, except in writing and in accordance with Section 11.01 of the Credit Agreement. 

        6.     Full Force and Effect of Agreement. Except as hereby specifically amended, modified or supplemented, the Credit Agreement
and all other Loan Documents are hereby confirmed and ratified in all respects and shall be and remain in full force and effect according to their respective terms. 

        7.     Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original as
against any party whose signature appears thereon, and all of which shall together constitute one and the same instrument. 

        8.     Governing Law. This Agreement shall in all respects be governed by, and construed in accordance with, the laws of the
State of New York applicable to contracts executed and to be performed entirely within such State, and shall be further subject to the provisions of  Section 11.16 of the Credit Agreement.

        9.     Enforceability. Should any one or more of the provisions of this Agreement be determined to be illegal or unenforceable as
to one or more of the parties hereto, all other provisions nevertheless shall remain effective and binding on the parties hereto. 

        10.   References. All references in any of the Loan Documents to the "Credit Agreement" shall mean the Credit Agreement, as
amended hereby. 

        11.   Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the Borrower, the Administrative
Agent and each of the Guarantors and the Lenders, and their respective successors, legal representatives, and assignees to the extent such assignees are permitted assignees as provided in  Section 11.07 of the Credit Agreement. 

[Signatures
on following page.] 

3

   
        IN WITNESS WHEREOF, the parties hereto have caused this Amendment No. 2 to Credit Agreement to be made, executed and delivered by
their duly authorized officers as of the day and year first above written. 

	 	 	BORROWER:
	

 	
 	

NEUSTAR, INC.
	

 	
 	

By:	
 	

/s/  ILLEGIBLE      

	 	 	Name:	 	 
	 	 	 	 	

	 	 	Title:	 	 
	 	 	 	 	

	

 	
 	
GUARANTORS:
	

 	
 	
BIZTELONE, INC.
	

 	
 	

By:	
 	

/s/  JEFFREY BUBKA      

	 	 	Name:	 	Jeffrey Bubka

	 	 	Title:	 	Chief Financial Officer

	

 	
 	
NIGHTFIRE ACQUISITION CORPORATION
	

 	
 	

By:	
 	

/s/  JEFFREY BUBKA      

	 	 	Name:	 	Jeffrey Bubka

	 	 	Title:	 	Chief Financial Officer

1

 

	 	 	ADMINISTRATIVE AGENT:
	

 	
 	

BANK OF AMERICA, N.A., as Administrative Agent
	

 	
 	

By:	
 	

/s/  ELIZABETH F. SHORE      

	 	 	Name:	 	Elizabeth F. Shore

	 	 	Title:	 	Senior Vice President

2

 

	 	 	LENDERS:
	

 	
 	
BANK OF AMERICA, N.A.
	

 	
 	

By:	
 	

/s/  ELIZABETH F. SHORE      

	 	 	Name:	 	Elizabeth F. Shore

	 	 	Title:	 	Senior Vice President

3

QuickLinks

TABLE OF CONTENTS

CREDIT AGREEMENT

ARTICLE I. DEFINITIONS AND ACCOUNTING TERMS

Applicable Rate

ARTICLE II. THE COMMITMENTS AND CREDIT EXTENSIONS

ARTICLE III. TAXES, YIELD PROTECTION AND ILLEGALITY

ARTICLE IV. SECURITY

ARTICLE V. CONDITIONS PRECEDENT TO CREDIT EXTENSIONS

ARTICLE VI. REPRESENTATIONS AND WARRANTIES

ARTICLE VII. AFFIRMATIVE COVENANTS

ARTICLE VIII. NEGATIVE COVENANTS

ARTICLE IX. EVENTS OF DEFAULT AND REMEDIES

ARTICLE X. ADMINISTRATIVE AGENT

ARTICLE XI. MISCELLANEOUS

AMENDMENT NO. 1 TO CREDIT AGREEMENT

AMENDMENT NO. 2 TO CREDIT AGREEMENT

W I T N E S S E T H

Applicable Rate

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