Document:

Commercial Lease between the Registrant and 15 Lake Bellevue, LLC

 Exhibit 10.11 
  
 COMMERCIAL LEASE 
  
 15 LAKE BELLEVUE OFFICE BUILDING 
  
 THIS LEASE, dated as of the 20TH day of March, 2002, is between 15 LAKE BELLEVUE LLC, a Washington limited liability company
(“Lessor”) and HouseValues.com, Inc., a Washington corporation (“Lessee”). 
  
 1. Premises. Lessor hereby leases to Lessee, upon the terms and conditions herein set forth, a portion of the real
property situated in the City of Bellevue, King County, Washington, legally described on Exhibit A attached hereto (herein called the “Building”). The portion of the Building leased to Lessee shall be as located
and outlined on the sketches attached hereto as Exhibits B-l through B-5, consisting of 4, 604 rentable square feet on the first floor (“New First Floor Space”), 17,731 rentable square feet on the second floor (which second floor space
consists of 12,193 rentable square feet currently occupied by Lessee (“Current Second Floor Space”) and 5,538 rentable square feet of additional space to be occupied by Lessee once it is completed by Lessor (“New Second Floor
Space”)), and a one year “Space Pocket” on the first floor of 7,505 rentable square feet, for a total of 29,840 rentable square feet (herein called the “Premises”). The term “Building” includes land,
building, and improvements. All calculations of area shall be made by Lessor’s architect. Provisions of this Lease referring to “Rentable Square Footage” or “RSF” shall refer to the rentable
square footage of the Premises. Rentable square feet for purposes of this Lease shall be calculated using a single-tenant load factor of 10% for the second floor (as long as Lessee leases the entire second floor of the Building), a multi-tenant load
factor of 22.1% for the second floor (if Lessee at any time leases less than the entire second floor of the Building), and a multi-tenant load factor of 22.1% for the first floor of the Building, and a single-tenant load factor of approximately
13.5% for the first floor (if Lessee at any time leases the entire first floor of the Building) and the rentable square feet on the entire first floor shall be 17,469. 
  
 2. Common Areas. Lessee shall have nonexclusive use of all areas of the Building designated by Lessor as common areas
for the use generally of tenants of the Building. 
  
 3. Use of
Premises. The Premises shall be used for general office use including conference and computer facilities, employee cafeteria and dining area (including related kitchen facilities), and any other legally permitted use consistent with the
character of a similar type building and for no other purpose without the prior consent of Lessor. Lessee has determined to its satisfaction that the Premises can be used for these purposes. Lessee shall not allow undue noise or vibration. Lessee
shall not allow use of the Premises in a manner which would increase insurance premiums, in a manner which would interfere with any other tenant in the Building, or for any illegal purpose. Lessee shall comply with all governmental rules, orders,
regulations, or requirements relating to its use and occupancy of the Premises. Lessee shall not cause or allow the presence, use, storage or disposal of any hazardous or toxic waste or materials on the Premises or the Building at any time. This
prohibition shall not apply to any hazardous materials contained in products typically used in office and cleaning products, and Lessee shall use and dispose of all such products in accordance with their labeling instructions and applicable laws.
Hazardous and/or toxic waste or materials shall include any substance, waste, or material which is designated as a Hazardous Substance under the Comprehensive Environmental Response, Compensation and Liability Act (42 USC Section 9601 et seq.), the
Model Toxics Control Act (revised Code of Washington Section 70.105D), or under any other applicable law. Lessee agrees to indemnify and hold Lessor harmless from and against any liabilities, obligations, damages, costs, and expenses (including
attorneys’ fees incurred prior to trial, at trial and upon appeal) incurred as a result of any hazardous or toxic waste or material having been released, used, stored, or disposed of by Lessee, its employees, agents, invitees or licensees on
the Premises or the Building. Lessor agrees to 

  

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indemnify and hold Lessee harmless from and against any liabilities, obligations, damages, costs, and expenses (including attorneys’ fees incurred prior
to trial, at trial and upon appeal) incurred as a result of any hazardous or toxic waste or material having been present, used, stored or disposed of on the Premises or the Building, unless such hazardous or toxic waste or material was released,
used, stored or disposed of by Lessee, its employees, agents, invitees or licensees on the Premises or the Building. This indemnity shall survive termination of this Lease. 
  
 4. Term; Extension. This Lease shall be for a term of sixty (60) months, commencing April 1, 2002
“Commencement Date”. Provided that Lessee is not then in default of any provisions of this Lease beyond applicable notice and cure periods, Lessee shall have the right to extend this Lease for one (1) additional five-year
period “Extended Term”. Lessee shall give to Lessor written notice of Lessee’s election to so extend this Lease, and such written notice shall be delivered to Lessor on or before July 1, 2006. Once notice
is delivered to Lessor, it shall be irrevocable and this Lease shall be deemed extended until March 31, 2012. All terms and conditions of this Lease shall apply to the Extended Term, except that the Basic Rental during the Extended Term shall be at
ninety-five percent (95%) of Market Rate. As used in this Lease, “Market Rate” means the rental, then being obtained by non-renewing arm’s length tenants that are comparable to Lessee in terms of quality,
size and financial capability, paid on a per rentable square foot basis under a comparable lease for comparable space in a building of comparable quality with comparable access, visibility, and convenience of location, and located in the Bellevue
area. Lessor and Lessee shall have one (1) month after Lessor receives the extension notice from Lessee in which to agree on the Market Rate for the Basic Rental. If the parties are unable to agree on Market Rate within that period, then Market Rate
shall be determined by binding arbitration conducted in accordance with the Arbitration Rules for the Real Estate Industry of the American Arbitration Association then in effect, except that there shall be only one arbitrator. The arbitrator shall
be a commercial real estate broker or professional with at least five (5) years experience in the Bellevue office market who has not worked for either party within the immediately preceding two (2) years. If the parties cannot agree on the identity
of the arbitrator then each party shall select a broker or professional who meets the foregoing criteria and two brokers or professionals so-selected shall jointly select the arbitrator. The costs and expenses of the arbitration shall be divided
equally between Lessor and Lessee. The parties agree to complete the arbitration within two months after Lessor receives the extension notice from Lessee, and the arbitrator shall be instructed to complete the arbitration within such two (2) month
period, time being of the essence. 
  
 5. Rental. Lessee
agrees to pay Lessor, at Lessor’s address set forth in Section 27 hereof or at such other place as Lessor may designate in writing, monthly rent “Basic Rental” in accordance with the following schedule:

  

			
	 Year

	  	 Basic Rental

	 1
	  	$23.00/RSF per year
	 2
	  	$23.50/RSF per year
	 3
	  	$24.00/RSF per year
	 4
	  	$24.50/RSF per year
	 5
	  	$25.00/RSF per year

  
 Monthly rental shall
be paid by Lessee in advance on the first day of each and every month during the term hereof. The obligation of Lessee to pay Basic Rental and Additional Rental is absolute and unconditional, and shall not at any time be subject to offset, discount,
or reduction of any kind whatsoever. The term “Rental” as used herein shall mean collectively “Basic Rental” and “Additional Rental.” See also Section 40(d). 
  
 6. Additional Rental. Commencing January 1, 2003, Lessee shall pay to
Lessor as “Additional Rental” (in addition to Basic Rental provided in Section 5 above) Lessee’s Percentage Share of Operating Expenses applicable to the Building, to the extent that such Operating Expenses for each
Lease Year, after the 2002 Lease 

  

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Year, increase over the Operating Expenses for the 2002 Lease Year. Lessee’s “Percentage Share” of increases in
Operating Expenses shall be calculated based upon the total rentable square feet of the Premises for which Rental has commenced under this Lease (as it may change from time to time), divided by 35,200, which is the total rentable square feet of the
Building. 
  
 The term “Operating Expenses” means all
costs of ownership, management, operation, and maintenance of the Building and common areas, including, without limitation, the following: wages, salaries, fringe benefits, and other direct and indirect costs of employees; janitorial, cleaning,
landscaping, guard, security and other services; gas, electricity, water, sewer, waste disposal, and other utilities; heating, ventilation and air-conditioning; window-washing; materials and supplies; painting, repairs, and other maintenance;
parking lot resurfacing and restriping, as well as cleaning, sweeping, and ice and snow removal; maintenance, repair, replacement, and service of equipment, including without limitation the HVAC system, alarm systems, elevator equipment, and other
equipment; costs of independent contractors; management fees and expenses; audit expenses; insurance and insurance deductibles of any kind (insurance deductibles shall not be an Operating Expense to the extent that they exceed what would be the
maximum commercially reasonable deductible for a Building of this type); taxes, assessments, and other governmental and utility charges of any kind; the cost of any repair, renovation, alteration, and improvement required to be made by Lessor under
any governmental law, rule or regulation first enacted after the Commencement Date; supplying directional signs, other markers, and car stops; a market-rate allowance to Lessor for Lessor’s supervision of maintenance and operation of common
areas; and any other expense or charge which in accordance with generally accepted accounting and management principles would be considered a cost of ownership, management, operation, and maintenance of the Building. The determination of Operating
Expenses and their allocation to the tenants shall be made by Lessor in a reasonable and nondiscriminatory manner consistent with generally accepted accounting and management principles. See also Section 40(f). 
  
 Prior to commencement of each Lease Year (starting with the 2003 Lease Year),
or as soon thereafter as practicable, Lessor shall give Lessee notice of its estimate of the amounts payable under this section for the ensuing Lease Year. On the first day of each month during the ensuing Lease Year, Lessee shall pay to Lessor
l/12th of such estimated amounts, provided, that if such notice is not given prior to the commencement of such ensuing Lease Year, Lessee shall continue to pay on the basis of the prior Lease Year’s estimate until the month after such notice is
given. If at any time or times it appears to Lessor that the amounts payable under this section for the current Lease Year will vary from its estimate, Lessor may, by notice to Lessee, revise its estimate for such Lease Year, and subsequent payments
by Lessee for such Lease Year shall be based upon such revised estimate. 
  
 Within ninety (90) days after the close of each Lease Year or as soon after such 90-day period as practicable (but no later than July 1), Lessor shall deliver to Lessee a statement of amounts payable under this
section for such Lease Year. If such statement shows an amount owing by Lessee that is less than the estimated payments for such Lease Year previously made by Lessee, it shall be accompanied by a refund of the excess within thirty (30) days after
delivery of such statement. If such statement shows an amount owing by Lessee that is more than the estimated payments for such Lease Year previously made by Lessee, Lessee shall pay the deficiency to Lessor within thirty (30) days after delivery of
the statement. Lessee shall be entitled at its expense to review at Lessor’s offices the records on which the statement of amounts payable is based. If no such statement is provided by July 1 of any Lease Year, then Lessor shall have waived the
right to recover any deficiency for the prior Lease Year. 
  
 Lessee may inspect Lessor’s books and records related to the amount of Additional Rental charged to Lessee, subject to the following: (a) Such review may be performed only at Lessor’s offices during normal business hours; and (b)
Lessee may conduct the review only once each year during the 120 day period starting on the date that Lessor provides a final allocation for a year pursuant to the prior paragraph (this review by Lessee may cover the prior one year only, and if the
review is not requested in writing and completed by Lessee by the end of the 120 day period, no review or audit or challenge of the Additional Rental for the most recent prior year, or any other prior years, may be made); and (c) Lessee shall pay
all of Lessee’s and Lessor’s out-of-pocket costs of the inspection; provided, however, that Lessee shall not be required to pay any of Lessor’s costs if such review discovers that Lessor overcharged Lessee by more than $6,000 and if
such review discovers that Lessor overcharged Lessee by more than $10,000, Lessor shall pay the reasonable out-of-pocket costs incurred by Lessee in connection with such review or audit. 
  

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 In determining the amount of Operating Expenses, for the purpose of this Section 6: (a) if less than one
hundred percent (100%) of the Building shall have been occupied by tenants and fully used by them at any time, Operating Expenses shall be increased to an amount equal to the like operating expenses which would normally be expected to be incurred
had such occupancy been one hundred percent (100%) and had such full utilization by tenants been made during the entire period; and (b) if the Lessor is not furnishing any particular work or service (the cost of which if performed by the Lessor
would constitute an Operating Expense) to a tenant who has undertaken to perform such work or service in lieu of the performance thereof by the Lessor, Operating Expenses shall be deemed for the purposes of this Section 6 to be increased by an
amount equal to the additional Operating Expense which would reasonably have been incurred during such period by the Lessor if it had at its own expense furnished such work or service to such tenant. This paragraph is not intended to allow Lessor to
recover Operating Expenses in excess of the actual Operating Expenses incurred. 
  
 Lessee shall pay as rent monthly, in addition to the Basic Rental and Additional Rental during the term of this Lease such “Special Building Operating Expenses” as are required
and incurred as a result of Lessee’s occupancy and use of the Premises, or any part thereof, and which are in addition to normal business office expenses, which Special Building Operating Expenses shall mean actual out-of-pocket costs incurred
by Lessor for (a) utility or HVAC usage outside normal business hours or for equipment that Lessor designates as heavy usage equipment at the time Lessor approves their installation in the Premises and (b) increase in insurance premiums attributable
to the Lessee’s business and/or use or occupancy of the Premises. 
  
 “Lease Year” shall mean calendar year. If this Lease commences or terminates on a day other than the first or last day of a calendar year, the amount of additional rental
payable by Lessee applicable to the Lease Year in which such commencement or termination occurs shall be prorated on the basis of a 365-day year. 
  
 7. Intentionally Omitted. 
  
 8. Intentionally Omitted. 
  
 9. Quiet Enjoyment. Lessor covenants and agrees that so long as Lessee remains in full compliance with all of Lessee’s obligations under this
Lease, Lessee shall lawfully and quietly hold, occupy, and enjoy the Premises during the term of this Lease, subject to the other terms and provisions of this Lease and subject to all mortgages and other underlying matters of record to which this
Lease is or may become subject and subordinate. Lessor represents and warrants to Lessee that Lessor is the sole owner in fee simple of the Building. 
  
 10. Construction; Acceptance of Premises. 
  
 (a) Lessor agrees that it will, at its cost, pursue to completion the Premises to the extent specified in Exhibit C as “Lessor’s
Work.” All of Lessor’s Work shall be performed promptly and diligently, in a good and workmanlike manner and in such a manner to cause as little disruption as possible to Lessee’s continued business operations in the Current
Second Floor Space. 
  
 (b) Lessor agrees that it will, at
Lessor’s cost, complete the interior tenant improvements for the Current Second Floor Space, the New Second Floor Space, the New First Floor Space and the Space Pocket in accordance with Exhibit C consisting of the space plan and construction
drawings prepared by JPC Architects dated January 17, 2002, submitted for permit on March 8, 2002, and revised on March 11, 2002, and March 13, 2002, (“JPC Drawings”). Included in Lessor’s Work is space planning, all drawings,
permitting costs, Lessor management fees, Lessor administrative fees, and any other fees associated with completing the Lessor’s Work described on the JPC Drawings. Lessor shall use its best efforts to cause the Lessor’s Work in the
Current Second Floor Space, the New Second Floor Space and the New First Floor Space to be substantially completed and Ready for Occupancy (as defined in Section 40(a)) as follows: The New First Floor Space shall be substantially completed (except
for the demolition of the door opening from the Lobby to the Corridor which will be completed within fifteen business days of issuance of a building permit from the City of Bellevue) and Ready for Occupancy on or before April 1, 2002. The Current
Second Floor Space, except for the Large Training Room and Office #2094, shall be substantially completed and Ready for Occupancy within fifteen (15) business days from the date of issuance of a building permit 

  

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from the City of Bellevue (projected to be April 10, 2002, making May 1, 2002 the anticipated substantially completed and Ready for Occupancy date). The New
Second Floor Space shall be substantially completed and Ready for Occupancy within fifteen (15) business days from the date of issuance of a building permit from the City of Bellevue (projected to be April 10, 2002, making May 1, 2002 the
anticipated substantially completed and Ready for Occupancy date). The Large Training Room and Office #2094 shall be substantially completed and Ready for Occupancy within thirty (30) days from the date Lessee notifies Lessor that Lessee is ready
for Lessor to begin that work, such notification date being no sooner than May 1, 2002 and no later than June 15, 2002. If Lessor does not timely complete Lessor’s Work in the Current Second Floor Space, except for the Large Training Room and
Office #2094, and the New Second Floor Space within thirty (30) business days from the date of issuance of a building permit from the City of Bellevue, but in any event no later than June 15, 2002, then Lessee shall be entitled to one day of free
Rental with respect to the Current Second Floor Space for every day of delay in completion beyond such date. If Lessor does not so complete Lessor’s Work in the New First Floor Space by April 15, 2002, then Lessee shall be entitled to one day
of free Rental with respect to the Current Second Floor Space for every day of delay in completion beyond such date. If Lessor does not so complete Lessor’s Work on the Large Training Room and Office #2094 within forty-five (45) days from the
date of notification by Lessee to Lessor to begin such work, then Lessee shall be entitled to one day of free Rental with respect to all space then occupied by Lessee at the end of such 45 day period for every day of delay in completion beyond such
date. Notwithstanding the foregoing, there shall be no free Rental for days of delay caused solely by the actions or inactions of Lessee. 
  
 (c) Lessor’s Work for the New Second Floor Space and the Space Pocket shall be done concurrently with Lessor’s Work in the remainder of the
Premises, and the target date for completion and commencement of Rental on the New Second Floor Space and the Space Pocket is further described in Sections 40(a) and (b). 
  
 (d) Lessor shall within 30 days after receipt of notice thereof correct any punchlist items or construction defects noted by
Lessee within the 30 days after Lessor substantially completes Lessor’s Work, and any latent defects or deficiencies discovered by Lessee within the first 60 days of business in the Premises (or portions thereof not previously occupied by
Lessee) after the Commencement Date. Subject to the foregoing items and Sections 10(a) and (b) above, the taking of possession of the Premises by Lessee shall constitute acknowledgment by Lessee that the Lessor’s Work has been fully performed
as agreed, that the Premises were then in good and tenantable condition and as represented by Lessor, and that Lessor has fully complied with all of Lessor’s obligations regarding the condition of the Premises. Lessor shall obtain from the
Building contractor and tenant improvement contractor a one-year warranty against construction defects with respect to Lessor’s Work, and Lessor shall enforce such warranty and cause the applicable contractor to correct all warrantied defects.

  
 See also Sections 40(a) and (b). 
  
 11. Utilities and Other Services by Lessor. Lessor agrees that there
will be available at the Premises the following utilities and services: 
  
 (a) Electricity suitable for standard tenant lighting and business machinery, including word processors, personal computers, copying and printing machines and telecommunications equipment. 
  
 (b) Water for kitchen, drinking, restroom and office cleaning purposes.

  
 (c) Heating, air conditioning, and ventilation required in
Lessor’s reasonable judgment for normal business operations during ordinary business hours (7:00 a.m. to 6:00 p.m.) daily, including Saturdays from 8:00 a.m. until 12:00 noon, exclusive of Sundays and holidays. The HVAC system was designed to
comply with the Washington State Energy Code and shall be programmed to attempt to maintain the Premises at a temperature between 68° and 72° throughout the year. See also Sections 40(g) and (1). 
  
 (d) Janitorial services on a five-day per week schedule. The contract with
the provider of the janitorial services shall contain the provider’s agreement that the janitorial services shall be in accordance with the cleaning specifications attached as Exhibit D. If Lessee is dissatisfied with janitorial services,
Lessee may cancel 

  

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Lessor’s obligation to provide janitorial services to the Premises, upon at least thirty (30) days’ prior written notice to Lessor (effective on
the first day of a calendar month). Lessee may thereafter contract directly with a janitorial company of Lessee’s choice for the provision of janitorial services to the Premises, at Lessee’s sole expense. During such time that Lessor is
not obligated to provide janitorial services to the Premises, Lessee shall receive a credit against the Rental due in an amount equal to the prorata amount that Lessor would have paid for the janitorial services for the Premises. 
  
 (e) Wiring (but not services) for telephone and T-l data cable to the
communications closet. 
  
 Lessor does not warrant the adequacy
of utilities for Lessee’s needs or that any of the utilities and services will be free from interruption. Interruption of utilities or services shall not be deemed an eviction or excuse performance of any of Lessee’s obligations under this
Lease or, unless such interruption is due to Landlord’s negligence or willful misconduct, render Lessor liable for damages 
  
 12. Maintenance by Lessor. Lessor shall maintain in good condition (normal wear and tear excepted) the structural and exterior components of the
Building, the common areas and parking areas, and the Building electrical, plumbing and heating, ventilation and air conditioning systems in a manner comparable to other first class office buildings in downtown Bellevue (subject to such items
constituting Operating Expenses pursuant to Section 6). Lessor shall repair and replace, when necessary, light fixtures in the common areas only (including replacement of light bulbs and fluorescent tubes) and shall maintain in good condition and
repair the plumbing and the electrical system. However, Lessor shall not be obligated to repair or replace any fixtures or equipment installed by Lessee and Lessor shall not be obligated to make any repair or replacement occasioned by any act or
omission of Lessee, its employees, agents, invitees, or licensees. Lessor agrees that the showered restrooms on the first floor shall remain common area throughout the term of this Lease. 
  
 13. Alterations, Repairs, and Maintenance by Lessee. Subsequent to the
initial occupancy of the Premises by Lessee, Lessee shall make no changes, improvements, or alterations to the Premises without the prior consent of Lessor, which consent shall not be unreasonably withheld, delayed or conditioned (and if Lessor does
not respond to a request for consent within five (5) business days, Lessor shall be deemed to have granted consent). All such changes, improvements, and alterations and repairs, if any, made by Lessee shall remain on the Premises and shall become
the property of Lessor upon the expiration or sooner termination of this Lease, or, at Lessor’s option (if such option is exercised at the time Lessee requests Lessor’s consent to the alterations), shall be removed from the Premises by
Lessee upon expiration or sooner termination of this Lease in which event all damage to the Building occasioned by the removal thereof shall be repaired by Lessee at Lessee’s sole expense. All work shall be in conformance with all applicable
laws, rules and regulations, and Lessee shall be solely responsible for obtaining and complying with all applicable governmental permits. Further, Lessor may require, at Lessor’s sole option, that Lessee use specific contractors for work on
building systems, provided that any premium above market rates charged by such contractors shall be paid for by Lessor. Notwithstanding the foregoing, Lessee shall not penetrate the roof without Lessor approval. Any roof penetration shall be made
only by Lessor’s approved contractors. Lessee shall provide Lessor with final copies of all plans reflecting any alterations. Any structural alteration requested by Lessee shall be presented to Lessor for approval in written form, with proposed
detailed plans. Lessor shall be entitled to reimbursement by Lessee of Lessor’s out-of pocket expenses incurred in reviewing any structural alteration requested by Lessee, but Lessor will not impose a fee for review or approval of alterations.
If Lessor gives its consent, the consent shall be deemed conditioned upon Lessee acquiring all necessary permits to do the work from appropriate governmental agencies, the furnishing of a copy thereof to Lessor prior to the commencement of the work
and compliance by Lessee with all conditions of said permits in a prompt and expeditious manner. 
  
 Lessee shall keep the Premises in a neat, clean, and sanitary condition, and shall keep the Premises and all items therein installed by Lessee in good
condition, except only for reasonable wear and tear, casualty and condemnation. All maintenance of the Premises shall be conducted by Lessee, except as provided in Sections 11 and 12. 
  

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 14. Taxes. Subject to Section 6, Lessor shall pay, before the same become delinquent, all taxes
and special assessments levied against the Building. Lessee shall pay, before the same become delinquent, all taxes assessed against Lessee’s furniture, fixtures, equipment, and other property in the Premises. 
  
 Lessee shall pay to Lessor as additional rental, within 10 days after notice
of the amount thereof, any tax upon rent payable under this Lease or any tax or fee in any form payable by Lessor because of or measured by receipts or income of Lessor derived from this Lease. The preceding sentence shall not apply to general
income tax or business and occupation tax of Lessor, or any other tax measured by gross or net income. 
  
 15. Signs. Lessee will not cause or permit the display of any sign, notice, or advertising matter in or about the Premises or the Building without
Lessor’s prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed (this does not apply to the initial tenant improvements made pursuant to Section 10). 
  
 16. Lessor’s Access to Premises. Lessor may, on at least 24
hours’ advance notice (except in an emergency), inspect the Premises at all reasonable times during normal business hours and enter the same for the purpose of cleaning, repairing, altering, improving, or exhibiting the same, but nothing herein
shall be construed as imposing any additional obligation on Lessor to perform any such work not otherwise set forth in this Lease. Lessor’s rights hereunder shall be exercised in a reasonable manner and designed to minimize disruption to
Lessee’s business, and Lessor shall, if requested by Lessee, comply with any reasonable requirements of Lessee in order to insure that access to the Premises will be conducted only in the presence of an employee or other designated
representative of Lessee when access is desired to the computer server room or other mission-critical operations areas. 
  
 17. Liability Insurance. Lessee shall, at Lessee’s sole expense, maintain commercial general liability and property damage insurance insuring
against any and all claims for injury to or death of persons and loss of or damage to property occurring upon, in, or outside of the Premises. Such insurance shall have liability limits of not less than $2,000,000 in respect of injury or death to
any one person, not less than $2,000,000 in respect of any and one occurrence or accident, and not less than $1,000,000 for property damage with a maximum deductible amount of $10,000. All such insurance shall name Lessor as an additional insureds,
with severability of interests endorsement. Lessee may provide the insurance coverage required hereunder through a combination of Lessee’s general commercial liability coverage and umbrella coverage. All such insurance shall be issued by
carriers reasonably acceptable to Lessor and shall contain provision whereby the carrier agrees not to cancel the insurance without fifteen (15) days’ prior written notice to Lessor. Lessor shall maintain a comparable policy of general
commercial liability coverage insuring against any and all claims for injury to or death of persons and loss or damage to property occurring on the property outside the Premises, with the cost thereof being an Operating Expense. 
  
 On or before taking possession of the Premises pursuant to this Lease, Lessee
shall furnish Lessor with a certificate evidencing the aforesaid insurance coverage, and renewal certificates shall be furnished to Lessor at least 30 days prior to the expiration date of each policy for which a certificate was theretofore
furnished. 
  
 18. Lessee’s Property Insurance. Lessee
shall, at Lessee’s sole expense, maintain on all of Lessee’s personal property, fixtures and leasehold improvements on the Premises, a policy of “all risk” hazard insurance in the amount of their replacement value. All proceeds
of such insurance shall belong to Lessee. 
  
 19. Lessor’s
Property Insurance. Subject to Section 6, Lessor shall maintain on the Building a policy of “all risk” hazard insurance in the full amount of its replacement value. All proceeds of any such insurance shall be payable to Lessor and
shall be applied to the restoration of the Building to the extent provided in Section 21; any proceeds of such insurance remaining after such restoration shall belong to Lessor. 
  
 20. Assignment and Subletting. Neither this Lease nor any right hereunder may be assigned, transferred, encumbered,
or sublet in whole or in part by Lessee, by operation of law or otherwise, without Lessor’s prior consent, which consent shall not be unreasonably withheld, delayed or conditioned. If Lessee is an entity of any kind, the transfer or pledge of
51% or more (aggregated over the life of this Lease) of the ownership and/or 

  

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voting interests in Lessee shall be deemed an assignment within the meaning of this Section; provided, however, that the foregoing restriction on transfer or
pledge shall not apply to Lessee in connection with or as a result of an initial public offering of its stock and shall not apply if and for so long as Lessee is a publicly-traded company. Notwithstanding the foregoing, Lessee shall have the right
without Landlord’s consent to assign or sublease this Lease to an affiliate which is under common control with Lessee or to any person or entity succeeding to the Lessee’s business conducted at the Premises. A portion of the Premises may
without Landlord’s consent be used or occupied by a party or parties in connection with the transaction of business with Lessee or an entity that controls, is controlled by, or is under common control with Lessee. No assignment or sublease
shall relieve Lessee of its liabilities hereunder and no consent to any assignment or sublease shall be deemed a consent to any further assignment or sublease. If Lessee requests Lessor’s consent, Lessee shall reimburse Lessor for its
reasonable legal and administrative costs incurred in connection with such request up to a maximum of One Thousand Dollars ($ 1,000.00). Lessor may assign its interest in this Lease. See also Section 40(i). 
  
 21. Damage or Destruction. If the Premises are damaged or destroyed by
fire or any cause, Lessor shall restore the Premises (except for trade fixtures, and personal property which shall be restored by Lessee at Lessee’s sole expense) as nearly as practicable to their condition immediately prior to such damage or
destruction. The obligations to restore provided in this paragraph shall be subject to Lessor’s termination rights provided below. Any restoration shall be promptly commenced and diligently prosecuted. Lessor shall not be liable for any
consequential damages by reason of any such damage or destruction. 
  
 Notwithstanding any of the foregoing provisions of this section, in the event the Premises shall be destroyed or damaged to such an extent that Lessor deems that it is not economically feasible to restore the same, then Lessor may terminate
this Lease as of the date of the damage or destruction by giving Lessee notice to that effect within sixty (60) days of such damage; provided, however, that Lessor may not terminate this Lease unless it also terminates the leases of all tenants in
the Building who are affected by the damage. 
  
 In the event
that more than 25% of the Premises are damaged during the Lease Term, and either party reasonably estimates that it will take more than nine months to repair and restore the Premises to their condition prior to such damage, such party shall have the
right to terminate this Lease upon written notice to the other within 60 days of such damage, with such termination becoming effective as of the date thirty (30) days after the date of delivery of such notice. During the period commencing on the
date of the damage and terminating on the termination date as determined by the foregoing notice, the rent shall be abated in the same proportion as the untenantable portion of the Premises bears to the whole thereof, except that there shall be no
abatement to the extent that any such damage or destruction is caused solely by the negligence of Lessee, its employees, agents, invitees, or licensees (except to the extent such rent loss is covered by the proceeds of insurance, the cost of which
was included in Operating Expenses.) 
  
 If Lessor undertakes to
restore the Premises as provided above in this section, then commencing with the date of the damage or destruction and continuing through the period of restoration, the rent for the Premises shall be abated for such period in the same proportion as
the untenantable portion of the Premises bears to the whole thereof, except that there shall be no abatement to the extent that any such damage or destruction is caused by negligence or intentional acts of Lessee, its employees, agents, invitees, or
licensees (except to the extent such rent loss is covered by the proceeds of insurance, the cost of which was included in Operating Expenses). 
  
 22. Liens. Lessee shall have no authority to allow any liens to be filed against the Property. Lessee shall not suffer or permit any lien to
be filed against the Building or any part thereof or the Lessee’s leasehold interest, by reason of work, labor, services, or materials performed or supplied to Lessee or anyone holding the Premises or any part thereof under Lessee. If any such
lien is filed against the Building or Lessee’s leasehold interest, Lessee shall cause the same to be discharged of record within 30 days after the date of filing the same. Lessee may contest any lien in accordance with law. 

 
 23. Indemnity by Lessee. Lessee agrees that Lessor shall not be
liable for any claims for death of or injury to persons or damages to or destruction of property sustained by Lessee or by any other person in or outside of the Premises, including without limiting the generality of the foregoing, any claims caused
by or arising from the 

  

 8 

 
condition or maintenance of any part of the Premises, except to the extent such damage is caused by the negligence or intentional misconduct of Lessor.
Lessee hereby waives all claims therefor and agrees to indemnify Lessor against any such loss, damage, or liability or any expense (including attorneys’ fees) incurred by Lessor in connection therewith. LESSEE HEREBY WAIVES ITS IMMUNITY WITH
RESPECT TO LESSOR UNDER THE INDUSTRIAL INSURANCE ACT (RCW TITLE 51), AND/OR ANY EQUIVALENT ACTS AND LESSEE EXPRESSLY AGREES TO ASSUME POTENTIAL LIABILITY FOR ACTIONS BROUGHT AGAINST LESSOR BY LESSEE’S EMPLOYEES. THIS WAIVER HAS BEEN
SPECIFICALLY NEGOTIATED BY THE PARTIES TO THIS LEASE AND LESSEE HAS HAD THE OPPORTUNITY TO, AND HAS BEEN ENCOURAGED TO, CONSULT WITH INDEPENDENT COUNSEL REGARDING THIS WAIVER. 
  
 24. Default; Remedies; Late Charges. Time is of the essence hereof, and in the event: (a) Lessee violates, breaches
or fails to keep or perform any covenant, agreement, term or condition of this Lease, and if such default or violation continues or is not remedied within five (5) business days (or, if no default in the rent or other payments due hereunder is
involved, within thirty (30) days) after notice in writing thereof is given by Lessor to Lessee, specifying the matter claimed to be in default (provided, however, if the default cannot be cured during such time with reasonable efforts, Lessee shall
not be in default if it initiates steps to cure the default within thirty (30) days and shall diligently prosecute those efforts thereafter to completion, but in no event longer than 90 days)); or (b) if Lessee makes an assignment for the benefit of
creditors or files a voluntary petition under any bankruptcy act or under any other law for the relief of debtors or if an involuntary petition is filed against Lessee under any such law and is not dismissed within 30 days after filing; or (c) if a
receiver is appointed for the property of Lessee and is not discharged or removed within 30 days; or (d) if Lessee is adjudicated a bankrupt; then Lessor may, at its option, immediately declare Lessee’s rights under this Lease terminated, and
reenter the Premises using such force as may be necessary, and repossess itself thereof, as of its former estate, and remove all persons and property from the Premises. Notwithstanding any such reentry, the liability of Lessee for the full rental
provided for herein shall not be extinguished for the balance of this Lease, and Lessee shall make good to Lessor any deficiency arising from a reletting of the Premises at a lesser rental, plus the actual out-of-pocket costs and expenses of
renovating, altering and reletting the Premises, including attorneys’ fees or brokers’ fees incident to Lessor’s reentry or reletting. Lessee shall pay any such deficiency each month as the amount thereof is ascertained by Lessor or,
at Lessor’s option, Lessor may recover in addition to any other sums, the then present value of the amount at the time of judgment by which the unpaid rental for the balance of the term after judgment exceeds the amount of rental loss which
Lessee proves could be reasonably avoided, discounted at the rate of seven percent (7%). In reletting the Premises, Lessor may grant rent concessions and Lessee shall not be credited therefor. Nothing herein shall be deemed to affect the right of
Lessor to recover for indemnification under any provision herein, including without limitation under Sections 3 and 23, for matters which occurred prior to the termination of this Lease, or for any other remedy at law or in equity. Lessor and Lessee
shall use commercially reasonable efforts to relet the Premises in the event of a default by Lessee. Lessee acknowledges that if Lessee is in default under this Lease and at that time any other premises in the Building or other property owned by
Lessor are available for lease, Lessor has the right to lease such other premises, and this shall not reduce Lessee’s obligations under this Lease through the remaining Lease term. 
  
 Lessee acknowledges that late payment by Lessee to Lessor of rent, or any other sums due under the Lease will cause Lessor
to incur costs not contemplated by this Lease, the exact amount of which would be extremely difficult and impractical to ascertain. Such costs include, but are not limited to, processing and accounting charges, and late charges which may be imposed
on Lessor by the terms of any mortgage or deed of trust covering the Building; therefore, in the event Lessee fails to make any payment of rent, or any other sums due to Lessor under this Lease, within five (5) business days of the date when such
payment is due, Lessee shall pay to Lessor as Additional Rental a late charge equal to five percent (5%) of the amount delinquent. Waiver of said 5% late charge with respect to any payment shall not be deemed to constitute a waiver with respect to
any subsequent payment. In the event Lessee fails to pay any rent or any other sum due to Lessor within five (5) business days after the date when due, the amount so delinquent shall bear interest at the rate of fourteen percent (14%) per annum (or
at the maximum rate permitted by law, whichever is less) from the date due until paid. 
  
 25. Trade Fixtures. Lessee may install on the Premises such equipment as is customarily used in the type of business conducted by Lessee on the Premises. Upon the expiration or sooner termination of this Lease,

  

 9 

 
Lessee shall, at Lessee’s expense, remove from the Premises all such equipment and all other property of Lessee and repair any damage to the Premises
occasioned by the removal thereof. Any property left in the Premises after the expiration or sooner termination of this Lease shall be deemed to have been abandoned by Lessee and become the property of Lessor to dispose of as Lessor deems expedient
without accounting to Lessee therefor. 
  
 26.
Condemnation. If all of the Premises are taken by any public authority under the power of eminent domain, this Lease shall terminate as of the date possession is taken by said public authority pursuant to such condemnation. 
  
 If any part of the Premises is so taken and, in the opinion of either Lessor
or Lessee, it is not economically feasible to continue this Lease in effect, either party may terminate this Lease. If any part of the Building is so taken and, in the opinion of Lessor, it is not economically feasible to continue this Lease in
effect, Lessor may terminate this Lease provided that Lessor terminates the leases of all Building tenants. If any part of the Building is so taken and Lessee is denied access to the Premises for commercially reasonable use, or part of the parking
lot is taken which results in a more than ten percent (10%) decrease in total parking stalls available to the Building (but only if the parking stalls taken are not replaced by valet parking or other alternative parking methods at no cost to
Lessee), Lessee may terminate this Lease. Such termination by either party shall be made by notice to the other given not later than 30 days after possession is so taken, the termination to be effective as of the later of 30 days after said notice
or the date possession is so taken. 
  
 If part of the Premises or
part of the Building is so taken, and neither Lessor nor Lessee elects to terminate this Lease, or until termination is effective, as the case may be, the rental shall be abated in the same proportion as the portion of the Premises so taken bears to
the whole of the Premises, and Lessor shall make such repairs or alterations, if any, as are required to render the remainder of the Premises tenantable. 
  
 All damages awarded for the taking or damaging of all or any part of the Building or the Premises shall belong to and be the property of Lessor, and
Lessee hereby assigns to Lessor any and all claims to such award, but nothing herein contained shall be construed as precluding Lessee from asserting any claim Lessee may have against such public authority for disruption, moving expenses and
relocation of Lessee’s business on the Premises, Lessee’s trade fixtures or Lessee’s personal property. 
  
 27. Notices. All notices, demands, and requests to be given by either party to the other shall be in writing. All notices, demands, and requests by
Lessor to Lessee shall be sent by personal delivery or by United States registered or certified mail, postage prepaid, (or by private overnight courier) addressed to Lessee at the Premises, Attn: CFO. All notices, demands, and requests by Lessee to
the Lessor shall be sent by personal delivery or by United States registered or certified mail, postage prepaid, (or by private overnight courier) addressed to Lessor at: 15 Lake Bellevue, LLC. 7947 – 159th PI. NE, Suite 100, Redmond, WA 98052, or such other place as Lessor may from time to time
designate by notice to Lessee. Notices, demands, and requests served upon Lessor or Lessee as provided in this section in the manner aforesaid shall be deemed sufficiently served or given for all purposes hereunder one business day after the date
such notice, demand, or request shall be so deposited with private overnight courier, or on the date of delivery if personally delivered, or three (3) business days after so mailed. 
  
 28. Performance of Covenants. If Lessee shall fail to make any payment
or perform any of Lessee’s obligations under this Lease, Lessor may, after reasonable notice to Lessee and without waiving or releasing Lessee from any obligations of Lessee under this Lease, make any such payment or perform any such obligation
on Lessee’s behalf in such manner and to such extent as Lessor deems desirable. All sums unpaid by Lessee, and all sums so paid by Lessor and all necessary costs and expenses in connection with the performance of any such obligation by Lessor,
together with interest thereon at the rate of fourteen percent (14%) per annum (or at the maximum rate permitted by law, whichever is less) from the date of the making of such expenditure by Lessor, shall be deemed Additional Rental hereunder and
shall be payable to Lessor on demand. 
  
 29. For Rent Signs;
Showing Premises. Lessor may place for rent or for sale signs on the exterior of the Building and may after reasonable notice enter the Premises during normal business hours for the purpose of showing the Premises or the Building to prospective
tenants, purchasers, and lenders. See also Section 40(j). 
  

 10 

 30. Waiver of Subrogation. Lessor and Lessee shall each procure, if obtainable without
payment of an additional premium, an appropriate clause in, or an endorsement on, any policy of “all risk” hazard insurance required by this Lease pursuant to which the insurance companies waive subrogation or consent to a waiver of right
of recovery, and such party hereby agrees that it shall not make any claim against or seek to recover from the other for any loss or damage to its property, or the property of the other, resulting from fire or other hazards covered by such
insurance, notwithstanding other provisions of this Lease; provided, however, that the release, discharge, exoneration, and covenant not to sue herein contained shall be limited by the terms and provisions of the waiver of subrogation clauses or
endorsement consenting to a waiver of right of recovery, and shall be coextensive therewith. 
  
 31. Subordination of Lessee’s Interest. This Lease is and shall be subordinate to any encumbrance now of record or any encumbrance
hereafter recorded affecting the Building. Lessee shall attorn to any purchaser at any foreclosure sale, or to any grantee or transferee designated in any deed in lieu of foreclosure. Lessee shall execute any documents reasonably required by any
such holder to accomplish the purposes of this section, and failure to execute such documents within ten (10) business days after written request from Lessor shall be a default under this Lease. The subordination of this Lease to any current or
future deed to secure deed or other security lien on the Premises (a “Mortgage”) is expressly conditioned upon the holder thereof agreeing by separate instrument (recorded in the same place as the Mortgage), that (a) Lessee
will not be named or joined in any proceeding to enforce the Mortgage unless required by law in order to perfect the proceeding; (b) enforcement of the Mortgage shall not terminate the Lease or disturb Lessee in the possession and use of the
Premises (except in the case where Lessee is in default under the Lease beyond any notice and cure period); (c) any party succeeding to the interest of Lessor as owner of the Building as a result of the enforcement of the Mortgage shall be subject
to all the terms, conditions and covenants of the Lease for the balance of the term thereof, with the same force and effect as if such party were the original Lessor under this Lease; and (d) any rights of Lessee to an credit or offset against
Rental specifically provided for in this Lease shall be recognized by the party succeeding to the interest of Lessor as owner of the Building as a result of the enforcement of the Mortgage; provided, however, that (i) any successor owner of the
Building shall not be obligated to complete construction of the Building or the tenant improvements; (ii) any successor owner shall not be obligated for liabilities to the extent they accrue prior to the date the successor owner takes title to the
Building; (iii) any successor owner shall not be obligated for defaults to the extent they are attributable to the period prior to the date the successor owner takes title to the Building; and (iv) any successor owner shall not be obligated for the
return of any funds not paid to such owner. 
  
 Lessor
represents that Sterling Savings Bank (“Lender”) is the only Lender holding a deed of trust or mortgage lien on the Building as of the date of this Lease. Landlord shall obtain from Lender, within thirty (30) days after the mutual
execution hereof, a subordination, nondisturbance and attornment agreement in favor of Lessee on Lender’s standard form, providing substantially the same protections to Lessee as set forth above in this section. If the Lender’s agreement
is not so obtained, Lessee shall have the option to terminate this Lease within thirty (30) days thereafter. 
  
 32. Surrender of Premises. Lessee, at the expiration or sooner termination of this Lease, shall quit and surrender the Premises in good,
broom-clean condition, except for reasonable wear and tear, and except for damage by the elements in the event of termination pursuant to Section 21. 
  
 33. Rules and Regulations; Parking. 
  
 (a) Lessee shall use the Premises and the common areas in the Building in accordance with such reasonable, nondiscriminatory rules and regulations not
inconsistent with this Lease as may from time to time be made by Lessor for the general safety, comfort, and convenience of Lessor and tenants of the Building, and shall cause Lessee’s employees, agents, invitees, and licensees to abide by such
rules and regulations. Lessor shall not be responsible to Lessee for the non-performance of any rules or regulations by any other tenants, occupants, or users of the Building, but Lessor shall use its best efforts to enforce such rules uniformly.

  
 (b) Lessee shall have the right to use, in common with other
tenants or occupants of the Building, the parking facilities of the Building subject to the rules and regulations of Lessor for such parking facilities which may be established or altered by Lessor at any time or from time to time during the term
hereof. 

  

 11 

 
Lessor shall have the right to make changes to the common areas including, without limitation, changes in the location of driveways, entrances, exits,
vehicular parking spaces, parking area, and the direction of the flow of traffic, provided that Lessor shall not reduce the available parking to less than 125 stalls unless the reduced parking is replaced by valet parking or other alternative
parking methods at no cost to Lessee. See also Section 40(h). 
  
 34.    Holdover. If Lessee holds over after the expiration of the term of this Lease, such tenancy shall be a month-to-month tenancy. During such tenancy Lessee agrees to pay Lessor 125% of the rate of rental as
provided herein, and to be bound by all of the terms, covenants, and conditions herein specified. 
  
 35.    Memorandum of Lease. Unless approved by Lessor in writing, if Lessee causes this Lease to be placed of record,
such recording shall constitute a default by Lessee under this Lease. If Lessor or Lessee so requests, Lessee and Lessor agree to execute and place of record an instrument, in recordable form, evidencing only the commencement date and expiration
date of this Lease, which instrument Lessor or Lessee may record. 
  
 36.    Force Majeure. Lessor shall have no liability whatsoever to Lessee on account of the following acts of “force majeure,” which shall include (a) the inability of
Lessor to fulfill, or delay in fulfilling, any of Lessor’s obligations under this Lease by reason of strike, lockout, other labor trouble, dispute or disturbance; (b) governmental regulation, moratorium, action, preemption or priorities or
other controls; (c) shortages of fuel, supplies or labor; (d) any failure or defect in the supply, quantity or character of electricity or water furnished to the Premises by reason of any requirement, act or omission of the public utility or others
furnishing the Building with electricity or water; and (e) for any other reason, whether similar or dissimilar to the above, or for Act of God, beyond Lessor’s reasonable control. If this Lease specifies a time period for performance of an
obligation of Lessor, that time period shall be extended by the period of any delay in Lessor’s performance caused by any of the events of force majeure described herein. 
  
 37.    Light, Air, and View. Lessor does not guarantee the continued present status of light,
air, or view over any premises adjoining or in the vicinity of the Building. 
  
 38.    Lessor’s Liability. Anything in this Lease to the contrary notwithstanding, covenants, undertakings and agreements herein made on the part of Lessor are made and intended
not as personal covenants, undertakings and agreements for the purpose of binding Lessor personally or the assets of Lessor except Lessor’s interest in the Building, but are made and intended for the purpose of binding only the Lessor’s
interest in the Building, as the same may from time to time be encumbered. While Lessee may bring a legal action against Lessor, judgments may be enforced only against Lessor’s interest in the Building. No personal liability or personal
responsibility is assumed by, nor shall at any time be asserted or enforceable against, Lessor or its partners or agents or their respective heirs, legal representatives, successors, and assigns on account of this Lease or on account of any
covenant, undertaking or agreement of Lessor in this Lease contained. 
  
 39.    Miscellaneous. 
  
 (a)    Nonwaiver. No failure of Lessor to insist upon the strict performance of any provision of this Lease shall be construed as depriving Lessor of the right to insist on strict
performance of such provision or any other provision in the future. No waiver by Lessor of any provision of this Lease shall be deemed to have been made unless expressed in writing and signed by Lessor. No acceptance of rent or of any other payment
by Lessor from Lessee after any default by Lessee shall constitute a waiver of any such default or any other default. Consent by Lessor in any one instance shall not dispense with necessity of consent by Lessor in any other instance. 
  
 (b)    Attorneys’ Fees. If an action is
commenced to enforce any of the provisions of this Lease, the prevailing party shall, in addition to its other remedies, be entitled to recover its reasonable attorneys’ fees incurred prior to trial, at trial, and upon appeal. If Lessor
consults with an attorney as a result of a default by Lessee hereunder, Lessee agrees to pay any such attorneys’ fees incurred by Lessor, and such attorneys’ fees shall constitute additional sums due by Lessee hereunder. 
  

 12 

 (c)    Captions and Construction. The captions in this Lease are for the
convenience of the reader and are not to be considered in the interpretation of its terms. 
  
 (d)    Partial Invalidity. If any term or provision of this Lease or the application thereof to any person or circumstance shall to any extent be invalid or unenforceable, the remainder of
this Lease, or the application of such term or provision to persons or circumstances other than those as to which it is invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease shall be valid and be enforced
as written to the fullest extent permitted by law. 
  
 (e)    Governing Law. This Lease shall be governed by the laws of the State of Washington. 
  
 (f)    Estoppel Certificates. Lessee shall, from time to time, upon written request of Lessor, execute, acknowledge and deliver
to Lessor or its designee a written statement stating: The date this Lease was executed and the date it expires; the date the term commenced and the date Lessee accepted the Premises; the amount of Basic Rental and Additional Rental and the date to
which such Basic and Additional Rental has been paid; and certifying (to the extent true): That this Lease is in full force and effect and has not been assigned, modified, supplemented or amended in any way (or specifying the date and terms of
agreement so affecting this Lease); that this Lease represents the entire agreement between the parties as to this leasing; that all conditions under this Lease to be performed by the Lessor have been satisfied; that all required contributions by
Lessor to Lessee on account of Lessor’s improvements have been received; that there are no existing claims, defenses or offsets which the Lessee has against the enforcement of this Lease by the Lessor; that no Rental has been paid more than one
month in advance; and the amount of any security has been deposited with Lessor. It is intended that any such statement delivered pursuant to this section may be relied upon by a prospective purchaser or assignee of Lessor’s interest or by any
lender. If Lessee shall fail to respond within ten (10) days of receipt by Lessee of a written request by Lessor as herein provided, Lessee shall be deemed to have given such certificate as above provided without modification and shall be deemed to
have admitted that this Lease is in full force and effect, that there are no uncured defaults in Lessor’s performance, that the security deposit is as stated in this Lease, and that not more than one month’s Rental has been paid in
advance. 
  
 (g)    Transfer of
Lessor’s Interest. In the event of any transfer or transfers of Lessor’s interest in the Premises, other than a transfer for security purposes only, the transferor shall be automatically relieved of any and all obligations and
liabilities on the part of Lessor accruing from and after the date of such transfer and Lessee agrees to attorn to the transferee. Any such transfer shall be made expressly subject to this Lease, and the transferee must assume Lessor’s
obligations hereunder. 
  
 (h)    Entire
Agreement. This document contains the entire and integrated agreement of the parties and may not be modified except in writing signed and acknowledged by both parties. 
  
 (i)    Interpretation. This Lease has been submitted to the scrutiny of all parties hereto and
their counsel if desired, and shall be given a fair and reasonable interpretation in accordance with the words hereof, without consideration or weight being given to its having been drafted by any party hereto or its counsel. 
  
 (j)    Remedies Cumulative. The specified remedies
to which Lessor may resort under the terms of this Lease are cumulative and are not intended to be exclusive of any other remedies or means of redress to which Lessor may lawfully be entitled in case of any breach or threatened breach by Lessee of
any provision of this Lease. In addition to the other remedies in this Lease provided, Lessor shall be entitled to the restraint by injunction of the violation, or attempted or threatened violation, of any of the covenants, conditions, provisions of
this lease. 
  
 (k)    Number; Gender;
Permissive Versus Mandatory Usage. Where the context permits, references to the singular shall include the plural and vice versa, and to the neuter gender shall include the feminine and masculine. Use of the word “may” shall denote an
option or privilege and shall impose no obligation upon the party which may exercise such option or privilege; use of the word “shall” shall denote a duty or an obligation. 
  
 (l)    Lessee’s Liability. Each Lessee shall be jointly and severally liable under this
Lease. 
  

 13 

 (m)    Time. Time is of the essence of this Lease. 
  
 (n)    Binding Effect. Subject to the provisions
of section 20 hereof, this Agreement shall be binding upon the parties hereto and upon their respective executors, administrators, legal representatives, successors, and assigns. 
  
 (o)    Financial Information. Lessee shall provide to Lessor copies of Lessee’s annual
financial statements (audited, if Lessee’s annual financial statements are audited) when they are completed, and monthly internally prepared financial statements, including balance sheet and monthly and year-to-date income statements, within 30
days of the end of the period to which they relate. Lessee shall at any time and from time to time, upon not less than 15 days’ prior request by Lessor, deliver directly to any prospective purchaser or mortgagee or existing mortgagee of the
premises or land upon which it is situated the same financial information as Lessee provides to Lessor hereunder, provided that such party agrees to Lessee’s reasonable requirements in order to preserve the confidentiality of such financial
statements. 
  
 40.    Special Provisions.
The following provisions shall apply to this Lease. In the event of a conflict between the prior provisions of this Lease and the provisions set forth in this Section 40, the latter shall control. 
  
 (a)    Commencement Date. Notwithstanding the
Commencement Date set forth in Section 4 of the Lease, Lessee’s obligation for the payment of Basic Rental and Additional Rental shall commence as follows: 
  
 (1)    For the Current Second Floor Space, Rental shall commence on the Commencement
Date. For the New First Floor Space, Rental shall commence on the later of the date that the New First Floor Space is Ready for Occupancy or April 1, 2002. However, if the date that the New First Floor Space is Ready for Occupancy is delayed past
April 1, 2002, and such delay is solely as a result of Lessee’s actions or inactions, then Rental for the New First Floor Space shall commence April 1, 2002. 
  
 (2)    For the New Second Floor Space, Rental shall commence on the later of the date
that the New Second Floor Space is Ready for Occupancy (which is expected to be on or before May 1, 2002) or May 1, 2002. However, if the date that the New Second Floor Space is Ready for Occupancy is delayed past May 1, 2002, and such delay is
solely as a result of Lessee’s actions or inactions, then Rental for the New Second Floor Space shall commence May 1, 2002. 
  
 (3)    Lessor or Lessee shall not make any changes to Lessor’s Work during the course of construction without the
other party’s prior written approval. Lessor shall be responsible for paying any additional costs resulting from changes requested by Lessor unless Lessee’s approval is obtained in advance. Lessee shall have the right to make changes to
the Lessor’s Work, and will be responsible for the cost of such changes, provided that any delay in the date the Premises are Ready for Occupancy as a result thereof shall not delay the commencement of Rentals and shall not extend rental
abatement periods against the Lessor. 
  
 (4)    For the Space Pocket, notwithstanding that it is to be completed at the same time as the New Second Floor Space, Rental shall commence as provided in Section 40(b) below. 
  
 (5)    “Ready for
Occupancy” means the date that the tenant improvements in the applicable portion of the Premises are substantially 

  

 14 

 
complete in accordance with Exhibit C (consisting of the space plan and JPC Drawings) so that (A) Lessor has obtained final governmental inspection
permitting occupancy, and (B) Lessee may use and occupy such portion of the Premises for the purpose for which the same were intended, subject to minor punchlist items that remain to be completed by Lessor. 
  
 (b)    Space Pocket. The “Space
Pocket” shall mean the 7,505 square feet of area on the first floor of the Building shown as the Space Pocket on Exhibit B-4, which shall be part of the Premises. Notwithstanding the Commencement Date set forth in Section 4 of the
Lease, Lessee’s obligation for the payment of Rental for the Space Pocket shall not commence until the earlier of: (i) April 1, 2003 (or, if later, one year after the Space Pocket is Ready for Occupancy); (ii) the date that Lessee commences to
occupy and use any of the Space Pocket; or (iii) the date that Lessee exercises its right of first refusal pursuant to Section 40(o) below. Lessee shall give Lessor at least sixty (60) days’ prior written notice if Lessee intends to use and
occupy the Space Pocket prior to April 1, 2003; provided, however, that Lessee shall have the right to occupy and use the Space Pocket space in two increments, with the first increment being for at least 50% of the rentable area of the Space Pocket,
and the second increment being for the remainder of the Space Pocket, and if the Space Pocket is occupied or used in increments, Lessee shall pay Rental for such increments on a pro rata basis. Lessor may occupy and use the Space Pocket until the
earlier of (i) sixty (60) days after written notice from Lessee that Lessee intends to use and occupy the Space Pocket; or (ii) April 1, 2003. If Lessor occupies the Space Pocket, Lessor shall be responsible for construction and installation of all
demising partitions and security arrangements to separate the space from Lessee’s operations, and upon vacation of the Space Pocket Lessor shall be responsible for removal of such items and the restoration of the Space Pocket to the condition
existing at the completion of Lessor’s Work. 
  
 (c)    Extension of Lease. The right to extend this Lease pursuant to Section 4 above shall not be assignable to any subtenant but shall be considered assigned to any assignee of this Lease under an assignment of
the entire Lease by Lessee in compliance with Sections 20 and 40(i) of this Lease. The right to extend shall be for all or part of the Premises. Lessee shall give to Lessor written notice “Initial Notice” of Lessee’s
election to so extend this Lease, and such written notice shall be delivered to Lessor on or before July 1, 2006. If Lessee does not desire to lease the entire Premises during the Extended Term, such notice shall contain a description of the exact
location of the Premises that Lessee desires to lease during the Extended Term. Lessor shall have ten (10) days from receipt of said notice to approve or disapprove of the Premises specified. In the event Lessor disapproves of the Premises
specified, Lessor shall deliver notice of the disapproval which states the reasons for disapproval (and Lessor’s reasons for disapproval must be reasonably based on the functionality of the portion of the Premises not intended to be renewed and
Lessor’s expectations of its ability to relet such space) . Lessee shall then have five (5) days to resubmit a revised description of the Premises Lessee desires to lease during the Extended Term. This process shall continue until an agreement
is reached. In the event that Lessor and Lessee are unable to agree upon the location of the Premises for the Extended Term within sixty (60) days after Initial Notice, there shall be no extension. If Lessee desires to lease the entire Premises
during the Extended Term, then Lessor shall not have the right to approve or disapprove of the Premises specified, and the parties shall proceed to determine the Market Rate in accordance with Section 4 of this Lease. 
  

 15 

 (d)    Rent Credit. Lessor shall provide to Lessee a rent credit in the amount
of $34,353.78, applicable against the first payments of Rental due hereunder until the rent credit is exhausted. 
  
 (e)    Early Termination Option. Lessee shall have the right to terminate this Lease on March 31, 2005, September 30, 2005,
March 31, 2006, or September 30, 2006 (each an “Early Termination Date”). Lessee shall give written notice of Lessee’s election to terminate, and such written notice shall be delivered to Lessor at least six (6)
months prior to the applicable Early Termination Date. Should Lessee elect to terminate this Lease, Lessee shall pay a termination fee “Early Termination Fee”, and the Early Termination Fee shall be delivered to Lessor at
least ninety (90) days prior to the applicable Early Termination Date. If the Early Termination Fee is delinquent, then the Lease shall not be terminated until the next following Early Termination Date which is at least 90 days after the Early
Termination Fee is paid. The Early Termination Fee shall consist of the sum of: 
  
 (1) The unamortized portion of Lessor’s out-of-pocket costs (“Lessor’s Work Costs”) incurred in connection with making
the Premises available to Lessee pursuant to this Lease (including any expansion and/or increase of the Premises), such costs including but not limited to: costs of completing the tenant improvements, space planning and design fees,
contractor’s fees and profits, sales taxes, insurance premiums for builder’s risk insurance in connection with such work, clean-up, computer or other telecommunications cabling work, permit fees, the cost of demolishing existing
improvements, if any, leasing fees and commissions, and legal fees. The unamortized portion shall be determined by taking the total of such costs over the term of this Lease, and amortizing them from the date incurred (but not earlier than the
Commencement Date) over the remaining initial term of this Lease using an assumed interest rate of eight percent (8%). No later than ninety (90) days after the completion of Lessor’s Work, Lessor shall deliver to Lessee a full and complete
accounting of Lessor’s Work Costs, including full detail and background documentation reasonably requested by Lessee, for Lessee’s review and approval, together with an amortization schedule based on the final amount of Lessor’s Work
Costs. So long as Lessee finds no reasonable basis on which to challenge such accounting or amortization schedule by providing written objection to Lessor within 30 days, this accounting shall be used by Lessee in determining the amount of any Early
Termination Fee due hereunder. 
  
 Plus

  
 (2) Seventy-five percent (75%) of the value
of the rental abatement associated with the Space Pocket, which value shall be amortized over the final twenty-four (24) months of this Lease. By way of example, if the value of the rental abatement for the Space Pocket is $100,000 and the Early
Termination Date is September 30, 2006, the Early Termination Fee shall include an additional $18,750 ($100,000 divided by 24 months, times 6 months then remaining, times 75%) for the value of the rent abatement for the Space Pocket. 
  
 (f)    Operating Expenses. Lessor shall use
commercially reasonable best efforts to control increases in Operating Expenses throughout the Lease Term. In calculating Operating Expenses throughout the Lease Term, (i) property management fees included in Operating Expenses shall not be charged
in excess of five percent (5%) of Basic Rental for the Building, (ii) capital improvements to the Building shall be straight-line amortized over the useful life of the improvement, and (iii) all of the following items shall be excluded from
Operating Expenses: 
  
 (1) Costs for which
Lessor is reimbursed by any tenant or occupant of the Building, by insurance, or by anyone else (other than reimbursement of Operating Expenses pursuant to triple net leases). 
  

 16 

 (2) Any bad debt loss, rent loss, or reserves for bad debts or rent loss. 
  
 (3) Costs associated with the operation of the business of
the entity which constitutes Lessor (whether partnership, corporation, or other), including accounting, legal and general administrative expenses that are not costs of operating the Building. 
  
 (4) Wages and benefits of any employee who does not devote
substantially all of his or her time to the Building, unless such wages and benefits are prorated to reflect time spent on operating and managing the Building. 
  

(5) Late fees, fines and penalties, except to the extent caused by Lessee. 
  
 (6) Costs (including permit, license and inspection costs)
incurred with respect to the installation of tenant improvements made for new tenants in the Building, or incurred in renovating or otherwise improving, decorating, painting or redecorating the space of tenants or other occupants of the Building.

  
 (7) Expenses in connection with services or
other benefits that are not provided to Lessee, except as provided to all tenants or the Building generally, or for which Lessee is charged directly but which are provided to another tenant or occupant of the building without a separate charge.

  
 (8) Costs paid to Lessor or to affiliates of
Lessor for services in the Building, including management fees, to the extent the same exceed or would exceed the costs for such services if provided by unaffiliated third parties on a competitive basis. 
  
 (9) Rentals and other related expenses incurred in the
leasing of air conditioning systems, elevators or other equipment that would ordinarily be considered capital expenses if purchased, excluding equipment not affixed to the Building that is used in providing janitorial or similar services.

  
 (10) Costs arising from Lessor’s
political or charitable contributions. 
  
 (11)
Costs for sculpture, paintings, or other art objects, other than costs related to ordinary maintenance and security. 
  
 (12) Cost of ownership such as ground lease payments, principal, amortization payments and interest charges in connection with
Lessor’s mortgage financing or other borrowing. 
  
 (g) HVAC. The HVAC system will programmed to be operational and available to the Premises twenty-four hours per day and Lessee shall be entitled to schedule the operating hours for the HVAC system serving the Premises in its sole
discretion; however, any hours in excess of normal Building Hours shall be paid for by Lessee as a Special Building Operating Expense. The cost of such after hours HVAC service shall be equal to Lessor’s 

  

 17 

 
actual costs of providing such service, including additional system usage, and no profit shall be charged by Lessor on such amounts. 
  
 (h)    Parking. Lessor shall provide a minimum of
3.7 stalls per 1,000 RSF for Building parking, which Lessee’s employees and invitees shall be entitled to use at no additional cost to Lessee during the initial Term and the Extended Term. There shall be no assigned, marked, or reserved stalls,
except that five stalls shall be marked “HouseValues Visitor”. In the event Lessee requests additional parking stalls, and if Lessor is able to provide additional parking, Lessee shall reimburse Lessor for the lower of market-rate cost or
Lessor’s actual out-of-pocket cost of providing such extra parking (whether by re-striping, improvements, valet or other parking services, or otherwise). Lessee and Lessor agree to cooperate in order that any parking problems shall be solved as
cost effectively and expeditiously as possible, and Lessor shall use reasonable efforts to protect the parking from use by patrons or customers of the neighboring properties. 
  
 (i)    Assignment and Subletting. In the event of any assignment by Lessee that is permitted in
this Lease, the assignee shall deliver to Lessor a counterpart original of a document reasonably satisfactory to Lessor whereby such assignee agrees to assume and perform all of the terms and conditions of this Lease on Lessee’s part from and
after the effective date of such assignment. 
  
 In the event
Lessee requests Lessor’s consent to a proposed sublease (other than a sublease of individual offices within the Premises to any sub-agent or client with whom Lessee has a then-existing and continuing business relationship) during the Lease Term
for more than fifty percent (50%) of the Premises, Lessor shall have the right to elect to terminate this Lease as to the space proposed to be so subleased (a “recapture”), and this Lease will remain in effect for the remaining portion of
the Premises, with the rentable area in Section 1 and the Basic Rental in Section 5, and the Percentage Share in Section 6 adjusted to apply to the remaining portion of the Premises. Any sublease agreement entered into by Lessee shall be subject to
this provision. In the event. Lessor elects to exercise its right to terminate this Lease with respect to a portion of the Premises, Lessor shall give Lessee ten (10) days’ prior written notice thereof and during such ten (10) day period Lessee
may elect to cancel the sublease to avoid the recapture. If the Lessor recaptures space, Lessor at its sole cost and expense shall construct demising walls and make all necessary improvements to separate the recaptured space from the Premises.

  
 If an assignment or sublease is consented to by Lessor, then
the Lessee shall pay all of Lessee’s out-of-pocket costs incurred in connection therewith (including any lease commissions and lease concessions), and the assignment or sublease shall state that all payments from the assignee or sublessee shall
be paid directly to Lessor. In connection with a permitted assignment or sublease: 
  
 (1) So long as the Lessee is not in default beyond applicable notice and cure periods under this Lease, Lessor shall grant to Lessee a
credit against the monthly Rental due under this Lease in the amount of the Rental actually received by Lessor under the assignment or sublease for that month, calculated on a per rentable square foot basis, and based upon the portion of the
Premises covered by the assignment or sublease. The maximum credit for any month under this subsection (1) shall be equal to the per rentable square foot Rental due under this Lease. (By way of example only, if the then applicable monthly Rental
under this Lease is $2.50 per rentable square foot, and there is a sublease providing for monthly Rental of $2.75 per rentable square foot, 

  

 18 

 
then the maximum monthly credit under this subsection (1) shall be $2.50 per rentable square foot times the number of rentable square feet covered by the
sublease, and with the credit being applicable only once the payment is received by Lessor from the sublessee or assignee.) If in any month Lessee is entitled to a credit under this subsection (1), but the credit arises after the Lessee has paid in
full the Rental due under this Lease for that month, then Lessor shall pay to Lessee the amount of the credit within five (5) business days after the date that the payment is received by Lessor from the assignee or sublessee. 
  
 (2) So long as the Lessee is not in default under this Lease
beyond applicable notice and cure periods, if the Rental received by Lessor from an assignee or sublessee under the assignment or sublease exceeds the per rentable square foot Rental (based upon the portion of the Premises covered by the assignment
or sublease) due under this Lease, then Lessor shall pay to Lessee all of such excess until such time as Lessee has first recovered all costs incurred in effecting the assignment or sublease, and then Lessor shall pay to Lessee fifty percent (50%)
of such excess, with such payments being due within five (5) business days after the date that they are received by Lessor. 
  
 No assignment or sublease, whether or not permitted, nor Lessor’s consent thereto, shall operate to release Lessee from liability under this Lease.

  
 Notwithstanding anything to the contrary contained in this
Lease: In the event that Lessee “goes public,” such public sale of stock shall not be considered an assignment of the Lease pursuant to Section 20. Lessee shall have the right, without Lessor’s consent, to assign this Lease to any
entity into which or with which Lessee merges or consolidates and to any parent, subsidiary, or affiliated entity, provided that the entity resulting from such merger or consolidation shall have a net worth not less than Lessee’s before the
merger, and provided further that any such assignee shall deliver to Lessor a counterpart original of a document reasonably satisfactory to Lessor whereby such assignee agrees to assume and perform all of the terms and conditions of this Lease on
Lessee’s part from and after the effective date of such assignment. It shall not be an assignment of this Lease if Lessee’s stock is sold to its employees in connection with any employee compensation plan or to any entity with a net worth
at least equal to Lessee’s at the time of the transfer of the stock, and such stock transfers shall not be considered in calculating the sale of Lessee’s stock under Section 20. Lessee shall not be released from its liabilities and
obligations hereunder by any such assignment. No such event or transaction shall effect or allow any change in any term or provision of this Lease or allow Lessor to terminate this Lease. 
  
 (j)    Signage. Lessor shall provide a standard building directory and suite entry signage for
the Premises to match Lessee’s new logo and Lessor shall modify the exterior building signage and monument signage to match Lessee’s new logo, without additional charge to Lessee. Lessor shall, without additional charge to Lessee, also
install an identifying sign behind the reception area in the New First Floor Space which is substantially the same as the identifying sign behind the reception area in the Current Second Floor Space. So long as Lessee has leased in excess of 50% of
the rentable square feet in the Building, Lessor shall not allow any other tenant to install or place a sign on the exterior of the Building, and any “for rent” or “for sale” signs to be put up by Lessor under Section 29 shall
not be placed on the Building. 
  
 (k)    Card Keys. Lessor shall provide security access cards to Lessee’s current and future employees at no additional charge except that 

  

 19 

 
Lessee shall reimburse Lessor for the actual cost of any replacement cards issued. Lessee shall have the right to control the programming and operations of
the card access system, provided that Lessee will reasonably cooperate with other tenants in the Building in order to coordinate the operations of such security system. 
  
 (1) Hours; Access; Security. Normal Building hours shall be 7:00 AM to 6:00 PM, Pacific Time, Monday through Friday;
and 8:00 AM to 12:00 PM Saturdays, excluding holidays recognized by Lessee (Lessee shall give at least one week’s advance written notice if Lessee does not recognize a standard national holiday). Lessee shall have access to the Premises
(including the communications closet) 24 hours per day, seven days per week, 365 days per year (subject to emergency, hazardous situations, or Building damage). Lessee may provide additional security measures for the Building at Lessee’s cost,
but such measures are subject to Lessor’s approval and must be coordinated with Lessor’s security measures. 
  
 (m) Communication Dishes. Lessee shall have the right, at its sole cost and expense (but without the payment of any Additional Rental) to install
up to two (2) communication dishes for its own use on the roof of the Building. Lessor shall have reasonable approval rights as to the proper placement of said equipment, however Lessor shall provide locations that permit proper orientation and
operation of the dishes. Lessee may not rent equipment on the roof or the use of any equipment on the roof. Notwithstanding the foregoing, Lessee shall not penetrate the roof without Lessor approval. Any roof penetration shall be made only by
Lessor’s approved contractors. 
  
 (n) Cable;
Conduits. Lessee shall have the right, at its sole cost and expense (but without the payment of any Additional Rental) to install cable and conduits from the Building’s ground floor and the roof to the Premises. The locations shall be
subject to Lessor’s approval and such installation shall not interfere with the rights and premises of any other Building tenants. Notwithstanding the foregoing, Lessee shall not penetrate the roof without Lessor approval. Any roof penetration
shall be made only by Lessor’s approved contractors. Any such installations shall be removed from the Premises by Lessee upon expiration or sooner termination of this Lease in which event all damage to the Building occasioned by the removal
thereof shall be repaired by Lessee at Lessee’s sole expense. 
  
 (o) Right of First Refusal. Provided that Lessee is not then in default beyond applicable notice and cure periods of any provisions of this Lease, Lessee shall have a continuous right of first refusal with respect to any additional
space “Additional Space” proposed to be leased by Lessor to third party tenants on the first floor of the Building. The Additional Space is identified on Exhibit B-5. If Lessor receives an offer “Offer”
to lease any of the Additional Space at a Rental, Lease Term, and other economic terms (the “ROFR Terms”) acceptable to Lessor for the Additional Space, Lessor shall give a copy of the signed letter of intent
containing the ROFR Terms to Lessee and Lessee shall have five (5) business days thereafter in which to notify Lessor that it elects to take the Additional Space on the ROFR Terms, with the ROFR Terms applicable to the Additional Space on the exact
terms as the Offer. If Lessor shall so notify Lessee and Lessee shall fail to notify Lessor of its election within such five (5) business day period, or if Lessee shall timely elect to take the Additional Space on the ROFR Terms but shall fail to
execute an amendment to this Lease to add the Additional Space within seven (7) business days after presentation of such amendment by Lessor, Lessor shall thereafter be free to lease the Additional Space to the third party making the Offer on the
same terms and conditions set forth in Offer. In the event Lessee exercises its right of first refusal hereunder, Lessee shall at that 

  

 20 

 
time commence paying rent on the entire Space Pocket at the Basic Rental rate set forth in Section 5, if Lessee has not otherwise done so. 
  
 (p) Compliance with Laws. Lessor represents and warrants that, as of
the commencement date of this Lease, the Building is in material compliance with all statutes, ordinances, rules, orders, and regulations governing the use of the Building as such laws, ordinances, rules, orders and regulations are currently in
effect. Subject to Section 6, Lessor shall cause the Building to remain in compliance with all statutes, ordinances, rules, orders and regulations governing the use of the Building. Lessor represents and warrants that the parking facilities and all
exterior improvements, walkways, doors, doorways, lobbies, elevators, toilet rooms, an other common and public facilities are currently in material compliance with the Americans with Disabilities Act requirements for public accommodation, and any
state or local law of similar purpose, and shall defend, indemnify and hold harmless Lessee against any claim, cost or expense arising out of such warranty not being true. 
  
 (q) Termination of Sublease and Prior Lease. Effective upon the Commencement Date of this Lease, the parties agree
that that certain Sublease dated as of August 23, 2000, between Webforia, Inc., as Sublandlord, and Lessee, as Subtenant, as amended by First Amendment to Sublease dated October 11, 2000, and Assignment of Interest in Sublease dated December 18,
2000 (whereby the Sublandlord’s interest in the Sublease was assigned to Lessor) (as so amended, the “Sublease”), shall be terminated and of no further force or effect. Immediately thereafter, Lessor shall return to Lessee the letter
of credit held by Lessor as a security deposit under the Sublease. Lessor acknowledges and confirms that upon the termination of the Sublease, the Commercial Lease dated June 14, 1999, as amended, between Lessor and Webforia, Inc. shall also be
terminated and of no further force or effect. 
  
 (r)
Confidentiality. Any information about Lessee’s finances gained from financial statements, inspections, or audits furnished to or conducted by or on behalf of Lessor shall be confidential and shall not be disclosed by Lessor other than
to carry out the purposes hereof (unless such information has already been disclosed and made nonconfidential by Lessee or other parties); provided, however, Lessor shall be permitted to divulge the contents of any such statements in connection with
financing arrangements or assignments of Lessor’s interest in the Premises or in conjunction with any administrative or judicial proceeding in which Lessee or Lessor is involved and where Lessor is required to divulge such information, provided
that Lessor notifies the recipients that they are bound by this confidentiality clause. The terms of this Lease are confidential to the extent permitted under applicable law, and Lessee shall not disclose them to other tenants in the Building.

  
 (s) Lessor Default. Lessor’s failure to perform
or observe any of its obligations under this Lease within thirty (30) days after receipt of written notice from Lessee setting forth in reasonable detail the nature and extent of the failure (or if more than thirty (30) days is required to cure the
breach, Lessor’s failure to begin curing within the thirty (30) day period and diligently prosecute the cure to completion) shall constitute a default (“Lessor Default”) . Any notices given by Lessee hereunder shall also be delivered
simultaneously to the holder of any mortgage, the name and address of which have been provided to Lessee, and such holder shall have the right to cure such Lessor Default on Lessor’s behalf. If Lessor commits a Lessor Default, Lessee may,
without waiving any claim for damages for breach of agreement or any other rights or remedies it may have under this Lease at law, at any time thereafter: Cure the Lessor Default for the account of the Lessor, and any amount paid or any contractual
liability incurred by Lessee in so 

  

 21 

 
doing shall be deemed paid or incurred for the account of Lessor, and Lessor shall reimburse Lessee promptly after receipt of paid invoices. If Lessor fails
to reimburse Lessee for any such sum within twenty (20) days after delivery of invoices, Lessee may commence an action to collect such sum, plus interest at the rate of fourteen percent (14%) per annum from the date of final judgment until paid.
Lessee shall not be entitled to offset against rent until Lessee obtains a judgment against Lessor. 
  
 (t) Reasonable Consent. Except where expressly provided for to the contrary, whenever under this Lease any party is required to or may give or
withhold its consent or approval, or do or perform any act or exercise its discretion, the giving or withholding of such consent, taking or performance of such action or exercise of such discretion shall be reasonable in the circumstances.

  
 [SIGNATURES ON FOLLOWING PAGE] 
  

 22 

 EXECUTED effective as of the date first above written. 
  

									
	LESSEE:	 	 	 	LESSOR:
			
	 HouseValues.com, Inc., a Washington corporation
	 	 	 	 15 LAKE BELLEVUE, LLC, a Washington limited
 liability company

					
	By:	 	 /s/ Jo Powell
	 	 	 	By:	 	 /s/ Jeffrey E. Hamilton

	 	 	 Name: Jo Powell
	 	 	 	 	 	 Jeffrey E. Hamilton,

	 	 	 Title: Treasurer
	 	 	 	 	 	 Chief Financial Officer

  

					
	STATE OF WASHINGTON	  	)	  	 
	 	  	)	  	ss.
	County of King	  	)	  	 

  
 I certify that I know
or have satisfactory evidence that Jeffrey E. Hamilton is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged
it as the Chief Financial Officer of 15 LAKE BELLEVUE, LLC, a Washington limited liability company, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. 
  
 DATED this 20 day of March, 2002. 
  

					
	[SEAL]	 	 	 	/s/ Jennifer Whitehouse
	 	 	 	 	 Notary Public in And For the State of Washington,

	 	 	 	 	 residing at King County

	 	 	 	 	 Name (printed or typed): Jennifer Whitehouse

	 	 	 	 	 My appointment expires: January 17, 2005

  

					
	STATE OF WASHINGTON	  	)	  	 
	 	  	)	  	ss.
	County of King	  	)	  	 

  
 I certify that I know
or have satisfactory evidence that Jo Powell is the person who appeared before me, and said person acknowledged that he/she signed this instrument, on oath stated that he/she was authorized to execute the instrument and acknowledged it as the
Treasurer of HOUSEVALUES.COM, Inc., a Washington corporation, to be the free and voluntary act of such party for the uses and purposes mentioned in the instrument. 
  
 DATED this 20 day of March, 2002. 
  

					
	[SEAL]	 	 	 	/s/ Jennifer Whitehouse
	 	 	 	 	 Notary Public in And For the State of Washington,

	 	 	 	 	 residing at King County

	 	 	 	 	 Name (printed or typed): Jennifer Whitehouse

	 	 	 	 	 My appointment expires: January 17, 2005

  

 23Stock Purchase Agreement

 Exhibit 10.12 
  
 STOCK PURCHASE AGREEMENT 
  
 This Stock Purchase Agreement (this “Agreement”) is
made as of this 27th day of June, 2003, among HouseValues, Inc., a Washington corporation (“Buyer”), David and Suzanne Huey (the “Shareholders”), and Soar Solutions, Inc., an Illinois corporation (the
“Company”). 
  
 RECITALS

  
 The Shareholders own all of the presently outstanding
shares of capital stock of the Company (the “Shares”) and desire and intend to sell the Shares to Buyer at the price and on the terms and subject to the conditions set forth below. 
  
 The Buyer desires and intends to acquire the Shares from the Shareholders at
the price and on the terms and subject to the conditions set forth below. 
  
 AGREEMENT 
  
 NOW THEREFORE, in consideration of the covenants and conditions set forth herein, the parties agree as follows: 
  

	1.	Purchase and Sale of Shares 

  
 Subject to the terms and conditions of this Agreement, at the Closing (as defined in Section 3 of this Agreement), the Shareholders shall sell, convey,
transfer, and assign, upon the terms and conditions hereinafter set forth, to Buyer, free and clear of all liens, pledges, claims, and encumbrances of every kind, nature and description, and Buyer shall purchase and accept from the Shareholders the
Shares, which comprise all of the outstanding capital stock of the Company. Notwithstanding the foregoing or any other provision of this Agreement, the Shareholders shall retain and shall indemnify the Buyer against any and all losses, claims,
settlements, judgments or other liabilities arising out of Professional Image’s lawsuit against the Company in the Circuit Court of Cook County Illinois. 
  

	2.	Purchase Price 

  
 Buyer shall purchase the Shares for aggregate consideration (the “Purchase Price”) as follows: 
  
 (a) At the Closing, the Buyer shall pay to the Shareholders the sum of nine
hundred eighty five thousand dollars ($985,000) by wire transfer of immediately available funds to such bank account of the Shareholders as the Shareholders shall designate in writing prior to the Closing. 
  

 1 

 (b) On October 1, 2003, the Buyer shall issue to the Shareholders two hundred thousand (200,000) shares
of Buyer’s common stock (the “Common Stock”), which shall be restricted stock. Such stock shall be subject to vesting as provided in Exhibit A attached hereto. 
  
 (c) On September 30, 2003, the Buyer shall deliver to Comerica, Inc. (the
“Escrow Agent”) the sum of five hundred thousand dollars ($500,000) (the “Escrow Amount”). The Escrow Amount shall be held by the Escrow Agent and distributed pursuant to the terms and conditions of
the Escrow Agreement attached hereto as Exhibit B, to be entered into by the Buyer, the Shareholders and the Escrow Agent at or prior to the Closing, and shall be subject to set off, in accordance with Section 13.5 hereof, in the event that
the Company or the Shareholders breach the representations and warranties contained in Section 5 of this Agreement. 
  
 (d) After Closing, the Shareholders shall be entitled to receive up to five percent (5%) of all gross customer receipts less credit card and transaction
expenses, discounts, returns, and bad debt expenses (“Net Revenue”) from products or services that present listing information procured from permitted, active data feeds from all Multiple Listing Service
(“MLS”) partners (“MLS Relationships”) listed or described on the MLS Scorecard provided in Exhibit C attached hereto, as its core value proposition, regardless of whether such Net Revenue is
generated from an existing MLS Relationship, an existing relationship of the Buyer or a new relationship, including revenue from the Buyer’s buyer leads service, sale of the Company’s eMLS tool, websites sold to real estate agents or
brokers that display listing data primarily obtained from the Company’s MLS Relationships, newsletters that present local home sale and listing information, so long as such data is procured from the Company’s MLS Relationships, and any
other products that are largely based on the Company’s MLS Relationships, but excluding from the Buyer’s current products and services (which Buyer’s current products and services include, but are not limited to, seller leads service,
Summit Club, HouseValues Store, Premier Coaching Services, seminars and conventions, and training services), and excluding from all other products and services which are not dependent on the Company’s MLS Relationships (“Revenue
Sharing Payments”). Such Revenue Sharing Payments shall be payable quarterly for ten (10) consecutive fiscal quarters following the Closing Date, beginning with the quarter ended December 31, 2003. Each quarterly Revenue Sharing Payment
shall be calculated as provided in Exhibit C hereto, and shall be subject to set off, in accordance with Section 13.5 hereof, in the event that the Company or the Shareholders breach the representations and warranties contained in Section 5
of this Agreement. For purposes of this paragraph, “permitted” shall mean (i) allowed pursuant to the terms of a written contract or (ii) allowed pursuant to usage where no written contract is required, and “active”
shall mean capable of being accessed, regardless of whether such data feed was actually accessed 
  

 -2- 

	3.	Excluded Assets 

  
 The Shareholders shall retain all right title and interest in the following assets (the “Excluded Assets”): 
  
 (a) the 2002 Mercedes Benz C32 
  
 (b) the phone system currently in use by the Company, provided, however, that
the Company shall be permitted to use such system, rent-free, so long as the Buyer operates the Company occupies the office space located at 1700 Park Street, Naperville, Illinois. 
  

	4.	Closing 

  
 The consummation of the purchase and sale of the Shares contemplated herein (the “Closing”) shall take place at the offices of
Perkins Coie, LLP, 1201 Third Avenue, Suite 4800, Seattle, WA, at 10:00 a.m. on June 27, 2003, or at such other time and place as the Buyer, the Shareholders and the Company agree upon orally or in writing. The date upon which the Closing occurs is
referred to herein as the “Closing Date”. 
  

	5.	Representations and Warranties of the Company and the Shareholders 

  
 The Company and the Shareholders, jointly and severally, represent and warrant to the Buyer as of the date hereof (which representations and warranties
shall survive the Closing as provided in Section 13.1 of this Agreement) as follows: 
  

	 	5.1	Shareholder Matters 

  

	 	5.1.1	Good Title 

  
 The Shareholders own one thousand (1,000) shares of the Company’s common stock, no par value, (the “Common Stock”), which
represents all of the issued and outstanding capital stock of the Company. Such Shares are owned free and clear of any lien, encumbrance, adverse claim, restriction on sale, transfer or voting (other than restrictions imposed by applicable
securities laws), preemptive right, option or other right to purchase, and upon the consummation of the sale of such Shares as contemplated hereby, the Buyer will have good title to such Shares, free and clear of any lien, encumbrance, adverse
claim, restriction on sale, transfer or voting (other than restrictions imposed by applicable securities laws), preemptive right, option or other right to purchase. 
  

	 	5.1.2	Authority 

  
 The Shareholders have all requisite power, right and authority to enter into this Agreement and the documents contemplated hereby (the
“Transaction Documents”) to which they are a party, to consummate the transactions contemplated hereby and thereby, and to sell and transfer the Shares without the consent or approval of any other person, 

  

 -3- 

 
corporation, partnership, joint venture, organization, other entity or governmental or regulatory authority (“Person”). The
Shareholders have taken, or will take prior to the Closing, all actions necessary for the authorization, execution, delivery and performance of this Agreement and the other Transaction Documents. 
  

	 	5.1.3	Enforceability 

  
 This Agreement has been, and the other Transaction Documents to which the Shareholders are a party on the Closing Date will be, duly executed and
delivered by the Shareholders, and this Agreement is, and each of the other Transaction Documents to which they are a party on the Closing will be, the legal, valid and binding obligation of the Shareholders, enforceable against the Shareholders in
accordance with their terms. 
  

	 	5.1.4	No Approvals or Notices Required; No Conflicts 

  
 Except as provided on Schedule 5.1.4, the execution, delivery and performance of this Agreement and the other Transaction Documents by the Shareholders,
and the consummation of the transactions contemplated hereby and thereby, will not (a) constitute a violation (with or without the giving of notice or lapse of time, or both) of any provision of any law, judgment, decree, order, regulation or rule
of any court, agency or other governmental authority applicable to the Shareholders, (b) require any consent, approval or authorization of, or declaration, filing or registration with, any Person, (c) result in a default (with or without the giving
of notice or lapse of time, or both) under, acceleration or termination of, or the creation in any party of the right to accelerate, terminate, modify or cancel, any agreement, lease, note or other restriction, encumbrance, obligation or liability
to which the Company is a party or by which it is bound or to which any assets of the Company are subject, or (d) result in the creation of any lien or encumbrance upon the assets of the Shareholders, or upon the Shares or other securities of the
Company. 
  

	 	5.1.5	Securities Law Representations and Warranties 

  
 The Shareholders have been advised that the Common Stock is not registered under the Securities Act of 1933 (the “Act”), or
applicable state securities laws, but is being issued pursuant to exemptions from such laws, and that the Buyer’s reliance upon such exemptions is predicated in part on the Shareholders’ representations contained herein. The Shareholders
acknowledge that the Buyer is relying in part upon the Shareholders’ representations and warranties contained herein for the purpose of qualifying the issuance of the Securities for applicable exemptions from registration or qualification
pursuant to federal or state securities laws, rules and regulations. 
  

	 	(a)	Acquired Entirely for Own Account 

  
 The Common Stock will be acquired for the Shareholders’ own account, not as a nominee or agent, and not with a view to distributing all or any part
thereof. The Shareholders have no present intention of selling, granting any participation in or otherwise 

  

 -4- 

 
distributing any of the Common Stock in a manner contrary to the Act or any applicable state securities law. The Shareholders do not have any contract,
undertaking, agreement or arrangement with any person to sell, transfer or grant participation to such person or to any third person with respect to any of the Common Stock. 
  

	 	(b)	Due Diligence 

  
 The Shareholders have been solely responsible for their own due diligence investigation of the Buyer and its business, and their analysis of the merits
and risks of the investment made pursuant to this Agreement, and are not relying on anyone else’s analysis or investigation of the Buyer, its business or the merits and risks of the Common Stock other than professional advisors employed
specifically by the Shareholders to assist the Shareholders. 
  

	 	(c)	Access to Information 

  
 The Shareholders believe they have been given access to full and complete information regarding the Buyer, including, in particular, the current financial
condition and lack of tangible assets of the Buyer and the risks associated therewith, and has utilized such access to their satisfaction for the purpose of obtaining information about the Buyer; particularly, the Shareholders have either attended
or been given reasonable opportunity to attend a meeting with the senior executives of the Buyer, for the purpose of asking questions of, and receiving answers from, such persons concerning the terms and conditions of the issuance of the Common
Stock and to obtain any additional information, to the extent reasonably available, necessary to verify the accuracy of information provided to the Shareholders about the Buyer. No such investigation, however, shall qualify in any respect the
representations and warranties of the Buyer in this Agreement. 
  

	 	(d)	Sophistication 

  
 The Shareholders, either alone or with the assistance of their professional advisor, are sophisticated investors, are able to fend for themselves in the
transactions contemplated by this Agreement, and have such knowledge and experience in financial and business matters that they are capable of evaluating the merits and risks of the prospective investment in the Common Stock. 
  

	 	(e)	Suitability 

  
 The investment in the Common Stock is suitable for the Shareholders based upon their investment objectives and financial needs, and the Shareholders have
adequate net worth and means for providing for their current financial needs and contingencies and have no need for liquidity of investment with respect to the Common Stock. The Shareholders’ overall commitment to investments that are illiquid
or not readily marketable is not disproportionate to their net worth, and investment in the Common Stock will not cause such overall commitment to become excessive. 
  

 -5- 

	 	(f)	Professional Advice 

  
 The Shareholders have obtained, to the extent they deem necessary, their own professional advice with respect to the risks inherent in the investment in
the Common Stock, the condition of the Buyer and the suitability of the investment in the Common Stock in light of the Shareholders’ financial condition and investment needs. 
  

	 	(g)	Ability to Bear Risk 

  
 The Shareholders are in a financial position to purchase and hold the Common Stock and are able to bear the economic risk and withstand a complete loss of
their investment in the Common Stock. 
  

	 	(h)	Restricted Securities 

  
 The Shareholders realize that (a) the Common Stock has not been registered under the Act, is characterized under the Act as “restricted
securities” and, therefore, cannot be sold or transferred unless subsequently registered under the Act or an exemption from such registration is available, and (b) there is presently no public market for the Common Stock and the
Shareholders would most likely not be able to liquidate their investment in the event of an emergency or to pledge the Common Stock as collateral security for loans. The Shareholders’ financial condition is such that it is unlikely that the
Shareholders would need to dispose of any of the Common Stock in the foreseeable future. In this connection, the Shareholders represent that they are familiar with Rule 144 of the Securities and Exchange Commission (the
“SEC”), as presently in effect, and understand the resale limitations imposed thereby and by the Act. 
  

	 	5.2	Company Organization, Good Standing; Corporate Authority; Enforceability 

  

	 	5.2.1	Organization, Good Standing, etc. 

  
 The Company is a corporation duly organized, validly existing and in good standing under the laws of the State of Illinois. The Company is duly qualified
to do business and is in good standing in the states where qualification is required due to (a) the Company’s ownership or lease of real or personal property for use in the operation of the Company’s business or (b) the nature of the
business conducted by the Company. The Company has not at any time owned nor leased any real or personal property, or had any business, operations, obligations or liabilities under any assumed or fictitious names. The Company has all requisite
power, right and authority to own, operate and lease its properties and assets, and to carry on its business as now conducted. 
  

 -6- 

	 	5.2.2	Corporate Authority 

  
 The Company has full corporate power and authority to execute and deliver this Agreement and the documents contemplated hereby to which it is a party and
to perform its obligations hereunder and thereunder. The execution and delivery by the Company of this Agreement and the Transaction Documents to which it is a party, the performance by the Company of its obligations hereunder and thereunder and the
consummation by the Company of the transactions contemplated hereby and thereby have been duly authorized by all necessary corporate action. This Agreement constitutes a valid and binding obligation of the Company, enforceable against the Company in
accordance with its terms, and the Transaction Documents to which the Company is a party, when executed and delivered by the Company, will constitute valid and binding obligations of the Company, enforceable against the Company in accordance with
their respective terms. 
  

	 	5.3	Capitalization 

  
 (a) The authorized capital stock of the Company consists of ten thousand (10,000) shares of common stock, without par value (the “Common
Stock”). 
  
 (b) The issued and outstanding capital
stock of the Company consists and as of the Closing will consist solely of one thousand (1,000) shares of Common Stock, all of which are, and as of the Closing Date will be, held of record by the Shareholders. All shares of Common Stock, that are
issued and outstanding are, and as of the Closing Date will be, duly authorized, validly issued, fully paid and nonassessable, and issued in compliance with all applicable federal, state and foreign securities laws. Except for the Shareholders, no
Person holds any interest in any Shares. 
  
 (c) Except for the
Company’s outstanding obligation to issue a warrant for fifty thousand (50,000) shares of its common stock upon the Company’s initial public offering of such common stock pursuant to that certain MLS Data License and Operating Agreement
between the Company and Orange County Multiple Listing Service, doing business as Southern California Multiple Listing Service (the “Southern California MLS Warrant”), there are no outstanding rights of first refusal,
preemptive rights, options, warrants, conversion rights or other agreements, either directly or indirectly, for the purchase or acquisition from the Company of the Shares or other securities of the Company. 
  
 (d) The Company is not a party or subject to any agreement or understanding,
and there is no agreement or understanding between any Persons, that affects or relates to the voting or giving of written consents with respect to any securities of the Company or the voting by any director of the Company. 
  

	 	5.4	Subsidiaries and Affiliates 

  
 The Company does not have, and has never had, any Subsidiaries. The Company does not own, directly or indirectly, any ownership, equity, profits or voting
interest in, or 

  

 -7- 

 
otherwise control, any corporation, partnership, joint venture or other entity, and has no agreement or commitment to purchase any such interest. 

 

	 	5.5	No Conflict 

  
 Except as provided on Schedule 5.5, the execution, delivery and performance of this Agreement and/or the Transaction Documents by the Company and the
consummation of the transactions contemplated hereby and thereby will not: (a) violate, conflict with, or result in any breach of, or constitute a default under, any provision of the Company’s articles of incorporation or by-laws; (b) violate,
conflict with, result in any breach of, or constitute a default (or an event that, with notice or lapse of time or both, would constitute a default) under, any contract or judgment to which the Company is a party or by which it is bound or which
relates to the Company’s business or assets; (c) result in the creation of any encumbrance, security interest, mortgage, lien, charge, option, license, adverse claim or restriction of any kind on any of the assets of the Company or upon any
Shares or other securities of the Company; (d) violate any applicable law, statute, rule, ordinance or regulation of any governmental body; (e) give any party with rights under any contract, judgment or other restriction to which the Company is a
party or by which it is bound, the right to terminate, modify or accelerate any rights, obligations or performance under such contract, judgment or restriction; (f) result in the creation of any lien or encumbrance upon the assets of the Company, or
upon any Shares or other securities of the Company; or (g) invalidate or adversely affect any permit, license, authorization or status used in the conduct of the business of the Company. 
  

	 	5.6	Consents and Approvals 

  
 Except as set forth in Schedule 5.6, (a) no consent, approval or authorization of, or declaration, filing or registration with, any governmental body is
required for the execution, delivery and performance by the Company of this Agreement and the Transaction Documents to which it is a party or for the consummation by the Company of the transactions contemplated hereby and thereby and (b) no consent,
approval or authorization of any third party is required for the execution, delivery and performance by the Company of this Agreement and the Transaction Documents to which it is a party and the consummation by the Company of the transactions
contemplated hereby and thereby. 
  

	 	5.7	Financial Statements 

  
 The Company has provided to the Buyer an unaudited balance sheet, dated May 31, 2003 an unuadited operating statement for the one (1) and five (5)-month
periods ended May 31, 2003 and an unaudited statement of cash flows for the five (5)-month period ended May 31, 2003 (collectively, the “Financial Statements”). The Financial Statements were prepared from the books and
records kept by the Company and fairly present the financial position, results of operations and changes in financial position of the Company, as of their respective dates and for the periods indicated, in accordance with generally accepted
accounting principles consistently applied. The Company has no liabilities or obligations of any nature 

  

 -8- 

 
(absolute, accrued or contingent) that are not fully reflected or reserved against in the balance sheet dated May 31, 2003 (the “Most Recent
Balance Sheet”), as prescribed by generally accepted accounting principles, except liabilities or obligations incurred since the date of the Most Recent Balance Sheet in the ordinary course of business and consistent with past practice.
The Company is not a guarantor, indemnitor, surety or other obligor of any indebtedness of any other Person. 
  

	 	5.8	Absence of Undisclosed Liabilities 

  
 The Company has no liabilities or obligations, secured or unsecured, whether accrued, absolute, contingent, unasserted or otherwise, except for
liabilities (a) reflected or reserved against in the Most Recent Balance Sheet or (b) incurred in the ordinary course of business after the date of the Most Recent Balance Sheet and not material in amount, either individually or in the aggregate.
The Company has not entered into or agreed to enter into any transaction, agreement or commitment, suffered the occurrence of any event or events or experienced any change in financial condition, business, results of operations or otherwise that, in
the aggregate, has (i) interfered with the normal and usual operations of the business or business prospects of the Company or (ii) resulted, or could reasonably be expected to result, in a material adverse change in the business, assets,
operations, prospects or condition (financial or otherwise) of the Company. 
  

	 	5.9	Taxes 

  
 (a) The Company has timely filed all tax returns and reports (including information returns and reports) as required by law. These returns and reports are
correct and complete in all respects. The Company has paid all taxes and other assessments due. The Company has never had any tax deficiency proposed or assessed against it and has not executed any waiver of any statute of limitations on the
assessment or collection of any tax or governmental charge. None of the Company’s federal income tax returns and none of its state income or franchise tax or sales or use tax returns has ever been audited by governmental authorities. Since the
date of the Most Recent Balance Sheet, the Company has not incurred any taxes, assessments or governmental charges other than in the ordinary course of business. The Company has established, in accordance with generally accepted accounting
principles applied on a basis consistent with that of preceding periods, and the Most Recent Balance Sheet reflects, adequate reserves for payment of all taxes, assessments and government changes that have accrued and have not been paid and are
incurred in or attributable to taxable periods (or portions thereof) ending on or prior to the Closing Date. The Company has timely made all deposits required by law to be made with respect to employees’ withholding and other employment taxes.
For purposes of this Agreement, the term “taxes” means all taxes, duties, charges, fees, levies, or other assessments imposed by any governmental body including income, gross receipts, value-added, excise, unemployment compensation,
withholding, social security, personal property, privilege, real estate, sale, use, ad valorem, license, lease, service, severance, stamp, intangibles, transfer, payroll, employment, customs, duties, alternative, add-on minimum, estimated,
and franchise taxes 

  

 -9- 

 
(including any interest, penalties, or additions attributable to or imposed on or with respect to any such taxes, duties, charges, fees, levies or other
assessments). For purposes of this Agreement, the term “tax return” means any return, declaration, report, claim for refund, or information return or statement relating to taxes, including any schedule or attachment thereto, and including
any amendment thereof. 
  
 (b) The Company has made a valid
election, in 1994, for the Company to be treated as an “S” corporation within the meaning of Section 1361(a) of the Internal Revenue Code of 1986, as amended (the “Code”), and any comparable provision of state or
local law. For federal and applicable state and local income tax purposes, the Company has properly qualified as an “S” corporation since the effective date of such election through the date of this Agreement, and will properly qualify as
an “S” corporation through and until the Closing Date in all jurisdictions in which it is subject to taxation. The Company has never been subject to income tax as a “C” corporation within the meaning of Section 1361(a) of the
Code or any comparable provision of state or local law. 
  

	 	5.10	Title to Property; Encumbrances 

  
 (a) The Company has good and marketable title to all of its properties and assets free and clear of any payment obligation to any third party or any other
lien or encumbrance . 
  
 (b) The Company does not own any real
property. 
  
 (c) With respect to properties and assets it leases,
the Company is in compliance with such leases and holds a valid leasehold interest free of all liens, claims or encumbrances. The Company is not in default under any lease nor does the Company have knowledge of any event which, after notice or the
passage of time or both, will or may constitute a default under any lease. 
  

	 	5.11	Environmental and Safety Matters 

  
 The Company is not in violation of any applicable statute, law or regulation relating to the environment or occupational health and safety. 
  

	 	5.12	Contracts 

  
 Schedule 5.12 contains a complete and accurate list of all contracts, agreements, arrangements and understandings oral or written, to which the Company is
a party or by which the Company is bound, including, without limitation, all security agreements, intellectual property licenses and other license agreements, credit agreements, instruments relating to the borrowing of money, leases, rental
agreements, purchase orders, sales orders and sale and distribution agreements (“Contracts”). The Contracts are valid, binding and enforceable in accordance with their terms against each party thereto and are in full force
and effect; the Company has performed all obligations imposed on it thereunder. There are not, under any of the Contracts, any defaults or events of default on the part of the Company or, to 

  

 -10- 

 
the Company’s knowledge, any other party thereto. True and complete copies of each Contract have been delivered to Buyer. Except for the Consent
described in Section 9.2 hereof, no consent is required from any Person under any of the Contracts in connection with the consummation of the transactions contemplated by this Agreement, and the Company has not received notice, nor is the Company
otherwise aware, that any party to any such contract intends to cancel, terminate or refuse to renew such contract or to exercise or decline to exercise any option or right thereunder. 
  

	 	5.13	Claims and Legal Proceedings 

  
 Except for Professional Image’s lawsuit against the Company in the Circuit Court of Cook County Illinois, there are no claims pending or, to the
Company’s knowledge, threatened against the Company, before or by any governmental body or nongovernmental department, commission, board, bureau, agency or instrumentality or any other person. There are no outstanding or unsatisfied judgments,
orders, decrees or stipulations to which the Company is a party. 
  

	 	5.14	Labor Matters 

  
 There are no disputes, material employee grievances or material disciplinary actions pending or, to the Company’s knowledge, threatened between the
Company and any employees of the Company (collectively, the “Employees”). The Company has complied in all respects with all provisions of all laws relating to the employment of labor and has no liability for any arrears of
wages or taxes or penalties for failure to comply with any such laws. The Company has no knowledge of any organizational efforts presently being made or threatened by or on behalf of any labor union with respect to any Employees. 
  

	 	5.15	Patents, Trademarks and Intellectual Property 

  
 (a) The Company has sufficient title and ownership of all patents, trade names, trademarks, service marks, copyrights, net names, trade secrets,
information, proprietary rights and processes necessary for its business as now conducted and as presently proposed to be conducted without any conflict with or infringement of the rights of others (the “Intellectual
Property”). Schedule 5.15 is an accurate and complete list of all such registered Intellectual Property and applications for any of the foregoing, reflecting dates of filing or dates of issuance, if applicable. 
  
 (b) None of the Intellectual Property or the Company’s rights thereto
are being infringed or otherwise violated by any person or entity. 
  
 (c) The use of the Intellectual Property by the Company in the operation of its business as now conducted or as proposed to be conducted does not infringe or otherwise violate any rights of any person or entity, and there is no pending or
threatened claim, demand, cause of action, suit or proceeding, hearing or investigation (each a “Claim”) alleging any such infringement or violation. In addition, there is no pending or threatened 

  

 -11- 

 
claim alleging any defect in or invalidity, misuse or unenforceability of, or challenging the ownership or use of or the Company’s rights, with respect
to any of the Intellectual Property and there is no basis for any such Claim. Furthermore, there is no other Claim made by any person or entity pertaining to the Intellectual Property. None of the Intellectual Property is subject to any judgement,
order, award, writ, injunction or decree of any governmental body or arbitrator. 
  

	 	5.16	Licenses, Permits, Authorizations, etc. 

  
 The Company has received all governmental approvals, authorizations, consents, licenses, orders, registrations and permits of all agencies, whether
federal, state, local or foreign (“Permits”) related to the operation of the Company’s business. Schedule 5.16 contains a list of all Permits with expiration dates, if any. The Company is in compliance with the terms of
all Permits, and all Permits are valid and in full force and effect, and no proceeding is pending or threatened, the object of which is to revoke, limit or otherwise affect any Permit. The Company has not received any notifications of any asserted
failure to obtain any Permit. 
  

	 	5.17	Related Party Transactions 

  
 Schedule 5.17 is a complete and accurate list of all contracts or agreements, oral or written, between the Company and the Company’s directors,
officers, shareholders, employees, agents, consultants, advisors, salespeople, sales representatives and distributors or dealers. No employee, officer, director or shareholder of the Company or member of his or her immediate family (together,
“Related Parties”) is indebted to the Company, nor is the Company indebted (or committed to make loans or extend or guarantee credit) to the Related Parties in the aggregate in excess of $1,000. No employee, officer or
director of the Company has any direct or indirect ownership interest in any firm or corporation with which the Company is affiliated or with which the Company has a business relationship, or any firm or corporation that competes with the Company,
except that (i) the Shareholders own all outstanding shares of Digital Realty, an Illinois corporation, which utilizes the Company’s products and (ii) employees, officers, or directors of the Company and members of their immediate families may
own stock in publicly traded companies that may compete with the Company. 
  

	 	5.18	Corporate Books and Records 

  
 The Company has furnished to Buyer true and complete copies of (a) the articles of incorporation and bylaws of the Company as currently in effect,
including all amendments thereto, (b) the minute books of the Company and (c) the stock transfer books of the Company. Such minutes reflect all meetings of the Company’s shareholders, Board of Directors and any committees thereof since the
Company’s inception, and such minutes accurately reflect the events of and actions taken at such meetings. Such stock transfer books accurately reflect all issuances and transfers of shares of capital stock of the Company since its inception.

  

 -12- 

	 	5.19	Compliance With Laws 

  
 The Company is and has been in compliance with all laws, statutes, rules, ordinances and regulations promulgated by any governmental body and all
judgments applicable to the operation of its business, to its employees or to its property. The Company has not received notice of any alleged violation (whether past or present and whether remedied or not), nor is the Company aware of any basis for
any claim of any such violation, of any such law, statute, rule, ordinance, regulation or judgment. 
  

	 	5.20	Insurance 

  
 Schedule 5.20 is a complete list of all insurance policies maintained by the Company. The Company has maintained insurance protection in such coverage
amounts and deductibles and against all liabilities, claims and risks against which it is customary for corporations engaged in the Company’s industry or a similar business similarly situated to insure. 
  

	 	5.21	Employee Plans 

  
 (a)    Schedule 5.21 contains a complete and accurate list of all employee benefit plans, funds, policies, programs, contracts,
arrangements or practices of any kind (including any “employee benefit plan,” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) and any employment, consulting
or personal services contracts (i) sponsored, maintained or contributed to by the Company or to which the Company is a party, (ii) covering or benefiting any current or former officer, employee, agent, director or independent contractor of the
Company (or any dependent or beneficiary of any such individual), or (iii) with respect to which the Company has (or could have) any obligation or liability (each, an “Employee Benefit Plan”). There has been no amendment,
interpretation or other announcement (written or oral) by the Company, any corporation, partnership, limited liability company, sole proprietorship, trade, business or other entity or organization that, together with the Company, is or was treated
as a single employer under Section 414(b), (c), (m) or (o) of the Code (each, an “ERISA Affiliate”) or any other person relating to, or change in participation or coverage under, any Employee Benefit Plan that, either alone
or together with other such items or events, could materially increase the expense of maintaining such Employee Benefit Plan (or the Employee Benefit Plans taken as a whole) above the level of expense incurred with respect thereto for the most
recent fiscal year included in the Financial Statements. Neither the Company nor any ERISA Affiliate has any agreement, arrangement, commitment or obligation to create, enter into or contribute to any additional Employee Benefit Plan, or to modify
or amend any existing Employee Benefit Plan. The terms of each Employee Benefit Plan permit the Company to amend or terminate such Employee Benefit Plan at any time and for any reason without penalty and without material liability or expense. None
of the rights of the Company under any Employee Benefit Plan will be impaired in any way by this Agreement or the consummation of the transactions contemplated by this Agreement. 
  

 -13- 

 (b)    Each Employee Benefit Plan is, and at all times since inception has been,
established, maintained, administered, operated and funded in all respects in accordance with its terms and in compliance with all applicable laws, statutes, orders, rules and regulations, including, without limitation, ERISA and the Code. The
Company, all ERISA Affiliates and all other persons (including, without limitation, all fiduciaries) have, at all times, properly performed all of their duties and obligations (whether arising by operation of law or by contract) under or with
respect to such Employee Benefit Plan, including, without limitation, all reporting, disclosure and notification obligations. Neither the Company nor any ERISA Affiliate has incurred, and there exists no condition or set of circumstances in
connection with which the Company, any ERISA Affiliate or the Buyer could incur, directly or indirectly, any material liability or expense (except for routine contributions and benefit payments) under ERISA, the Code or any other applicable law,
statute, order, rule or regulation, or pursuant to any indemnification or similar agreement, with respect to any Employee Benefit Plan. Each Employee Benefit Plan that is intended to be qualified under Section 401(a) of the Code is so qualified and
its related trust is exempt from tax under Section 501(a) of the Code. Nothing has occurred or is reasonably expected by the Company or any ERISA Affiliate to occur that could adversely affect the qualified status of such Employee Benefit Plan or
the tax-exempt status of its related trust. All contributions, premiums and other payments due or required to be paid to (or with respect to) each Employee Benefit Plan have been timely paid, or, if not yet due, have been accrued as a liability on
the Most Recent Balance Sheet. 
  
 (c)    Neither the Company nor any ERISA Affiliate sponsors, maintains or contributes to, or has ever sponsored, maintained or contributed to (or been obligated to sponsor, maintain or contribute to), (i) a multiemployer
plan as defined in Section 3(37) or Section 4001(a)(3) of ERISA, (ii) a multiple employer plan within the meaning of Section 4063 or 4064 of ERISA, or (iii) an “employee benefit plan,” as defined in Section 3(3) of ERISA, that is subject
to Section 412 of the Code, Section 302 of ERISA or Title IV of ERISA. 
  

	 	5.22	Full Disclosure 

  
 No information furnished by or on behalf of the Company to Buyer or its representatives in connection with this Agreement or the transactions contemplated
by this Agreement is false or misleading. In connection with such information and with this Agreement and the transactions contemplated hereby, the Company has not made any untrue statement of financial or material fact or omitted to state a fact
necessary in order to make the statements made or information delivered, in the light of the circumstances under which they were made or delivered, not misleading. 
  

 -14- 

	 	5.23	Customers and Suppliers 

  
 There is no indication that any customer or supplier of the Company intends to terminate or modify its relationship with the Company, or that the
consummation of the transactions contemplated by this Agreement and the Transaction Documents will adversely affect the post-Closing relationship of the Buyer with any of the Company’s customers or suppliers. 
  

	 	5.24	No Broker 

  
 No broker, finder or other financial consultant has acted on behalf of the Company or the Shareholders in connection with this Agreement. The Shareholders
shall indemnify and hold Buyer harmless from any brokers, finders or other consultants fees or commissions incurred or accrued in connection with this Agreement or the transactions contemplated by this Agreement by the Company or the Shareholders.

  

	6.	Representations and Warranties of Buyer 

  
 The Buyer represents and warrants to the Company and the Shareholders as follows: 
  

	 	6.1	Organization, Good Standing, etc. 

  
 The Buyer is a corporation, duly organized, validly existing and in good standing under the laws of the State of Washington. Buyer has all requisite power
and authority to own, operate and lease its assets and to carry on its business as it is now conducted. 
  

	 	6.2	Authority 

  
 The Buyer has full power and authority to execute and deliver this Agreement and the Transaction Documents to which it is a party and to perform its
obligations hereunder and thereunder. The execution and delivery by the Buyer of this Agreement and Transaction Documents to which it is a party, the performance by the Buyer of its obligations hereunder and thereunder and the consummation by the
Buyer of the transactions contemplated hereby and thereby have been duly authorized. This Agreement constitutes a valid and binding obligation of the Buyer, enforceable against the Buyer in accordance with its terms, and the Transaction Documents to
which the Buyer is a party, when executed and delivered by the Buyer, will constitute valid and binding obligations of the Buyer, enforceable against the Buyer in accordance with their respective terms. 
  

	 	6.3	No Conflict 

  
 The execution, delivery and performance of this Agreement and/or the Transaction Documents by the Buyer and the consummation of the transactions
contemplated hereby or thereby by the Buyer will not (a) violate, conflict with, or result in any breach of, any provision of the Buyer’s articles of incorporation or bylaws; (b) violate, conflict with, result in 

  

 -15- 

 
any breach of, or constitute a default (or an event that, with notice or lapse of time or both, would constitute a default) under any contract or judgment to
which the Buyer is a party or by which it is bound or (c) violate any applicable law, statute, rule, ordinance or regulation of any governmental body. 
  

	7.	Conditions Precedent to Buyer’s Obligations 

  
 The Buyer’s obligations under this Agreement are subject to the satisfaction of each of the following conditions, each of which is material, for the
sole benefit of the Buyer and may be waived only in writing by the Buyer: 
  

	 	7.1	Representations and Warranties 

  
 The representations of the Company and the Shareholders contained in Section 5 of this Agreement shall be true on and as of the Closing Date with the same
effect as though such representations and warranties had been made on and as of the Closing Date. 
  

	 	7.2	Performance of Agreements 

  
 The Company and the Shareholders shall have duly performed and complied with all covenants and obligations contained in this Agreement or any other
Transaction Document that are required to be performed or complied with by them on or before the Closing Date. 
  

	 	7.3	Officer’s Certificate 

  
 The Buyer shall have received a certificate of an officer of the Company, in a form reasonably acceptable to Buyer, dated the Closing Date, certifying
that the conditions set forth in Sections 7.1, 7.2, 7.4, 7.6, 7.7, 7.9, 7.11, 7.12, 7.13, and 7.15 have been fulfilled. 
  

	 	7.4	Shareholder’s Certificate 

  
 The Buyer shall have received a certificate of the Shareholders, in a form reasonably acceptable to the Buyer, dated the Closing Date, certifying that the
conditions set forth in Sections 7.1, 7.2, 7.5, 7.6, 7.7, 7.8, 7.9, 7.10, 7.11, 7.12, 7.13 and 7.15 have been fulfilled. 
  

	 	7.5	Evidence of Shareholders’ Assumption of Liabilities 

  
 The Buyer shall have received evidence reasonably satisfactory to the Buyer, certifying that all liabilities associated with the 2002 Mercedes Benz C32
have been assumed by the Shareholders. 
  

 -16- 

	 	7.6	Approvals 

  
 All transfers of Permits and all approvals, applications or notices to public agencies, federal, state, local or foreign, the granting or delivery of
which is necessary for the consummation of the transactions contemplated hereby or for the continued operation of the Company shall have been obtained, and all waiting periods specified by law with respect thereto shall have passed. All such
transfers and approvals shall be reasonably satisfactory in all respects to the Buyer. 
  

	 	7.7	Resignation 

  
 The Buyer shall have received the Shareholder’s resignation, as the sole officer and director of the Company, effective as of the Closing.

  

	 	7.8	Delivery of Certificates 

  
 The Shareholders shall have delivered to the Buyer certificates representing the Shares, duly endorsed for transfer on the Company’s books.

  

	 	7.9	Escrow Agreement 

  
 The Escrow Agent and the Shareholders shall have executed and delivered the Escrow Agreement. 
  

	 	7.10	Employment of David Huey and Denis Sharkey 

  
 David Huey and Denis Sharkey shall have agreed to employment with the Buyer on the terms outlined in the offer letters attached hereto as Exhibits D-1
and D-2. 
  

	 	7.11	Payment of Liabilities 

  
 Prior to the Closing Date, the Shareholders shall cause all liabilities of the Company to be satisfied, including but not limited to those liabilities
arising under any employment agreements with employees of the Company, which were executed prior to the Closing Date, and shall indemnify, hold harmless and release the Company from such liabilities, except those liabilities listed on Schedule 7.11
attached hereto (the “Permitted Liabilities”) and those liabilities which shall be released after the Closing Date pursuant to Section 9.3 hereof. 
  

	 	7.12	Bank Accounts 

  
 Authority to act on behalf of the Company shall be transferred solely to Ian Morris, Chief Executive Officer of the Buyer, in connection with all banks,
trust companies, savings and loan associations and other financial institutions at which the Company maintains safe deposit boxes or accounts. 
  

 -17- 

	 	7.13	Termination of Options and Warrants 

  
 Except for the Company’s obligation to issue the Southern California MLS Warrant (as described in Section 5.3(c) hereof), all options, warrants and
other contractual rights to purchase capital stock of the Company shall have expired or been terminated. 
  

	 	7.14	Due Diligence 

  
 The results of the Buyer’s due diligence investigation of the Company and the Shareholders as it relates to the Shares shall be satisfactory in all
respects to the Buyer. 
  

	 	7.15	No Adverse Changes 

  
 From the date of this Agreement to the Closing Date, there shall not have been any material adverse change in (a) the business, operations, assets,
liabilities, earnings, condition (financial or otherwise) or prospects of the Company or (b) with respect to the Shareholders and the Shares, and no material adverse change shall have occurred (or be threatened) in any domestic or foreign laws
affecting the Company or in any third party contractual or other business relationships of the Company. 
  

	8.	Conditions to the Company’s and Shareholders’ Obligations 

  
 The Company’s and Shareholders’ obligations under this Agreement are subject to the satisfaction of the following conditions: 
  

	 	8.1	Representations and Warranties 

  
 The representations of the Buyer contained in Section 6 of this Agreement shall be true on and as of the Closing Date with the same effect as though such
representations and warranties had been made on and as of the Closing Date. 
  

	 	8.2	Performance of Agreements 

  
 Buyer shall have duly performed and complied with all covenants and obligations contained in this Agreement or any other Transaction Document that are
required to be performed or complied with by it on or before the Closing Date. 
  

	 	8.3	Escrow Agreement 

  
 The Escrow Agent and the Buyer shall have executed and delivered the Escrow Agreement. 
  

 -18- 

	9.	Covenants 

  

	 	9.1	Conduct of Business 

  
 From the date of this Agreement through the Closing Date, the Company shall conduct its business in the ordinary course consistent with the Company’s
past practice and shall not engage in any extraordinary transaction without the Buyer’s prior written Consent. Without limiting the foregoing, the Company shall not, without the Buyer’s prior written consent, 
  
 (a) dispose of any assets except in the ordinary course of business;

  
 (b) increase the annual level of compensation of any person,
materially increase the annual level of compensation of any other employee or grant any unusual or extraordinary bonuses, benefits or other forms of direct or indirect compensation to any employee, officer, director or consultant; 
  
 (c) increase, terminate, amend or otherwise modify any plan for the benefit
of employees; 
  
 (d) issue any equity securities or options,
warrants, rights or convertible securities; 
  
 (e) pay any
dividends, redeem any securities or otherwise cause assets of the Company to be distributed to any of its shareholders except by way of regular compensation; 
  
 (f) borrow any funds, under existing credit lines or otherwise, except as reasonably necessary for the ordinary operation of the Company’s business
in a manner, and in amounts, in keeping with historical practices; or 
  
 (g) forgive or cancel any indebtedness or waive any claims or rights of material value (including, without limitation, any indebtedness owing by any shareholder, officer, director, employee or affiliate of the Company). 
  

	 	9.2	Consents 

  
 The Shareholders shall use their best efforts to obtain the consents required pursuant to Section 11.2 of that certain Data Access Agreement among
REALTORS® Multiple Listing and Information
Services, Inc., Re/Max All Star Realty and the Company, dated June 18, 2002, within sixty (60) days of the Closing Date. 
  

	 	9.3	Release 

  
 The Shareholders shall execute and deliver to the Buyer the following: 
  
 (a) a release of the Company’s liabilities and obligations under that certain Commercial Lease Agreement between the
Shareholders, as landlord, and the Company, dated January 1, 2001, effective on the earlier of (i) three (3) months after the Company vacates the office space located at 1700 Park Street, Naperville, Illinois as confirmed by written notice from the
Buyer or (ii) the date that the Shareholders execute a lease with 

  

 -19- 

 
another tenant for the same space. Such release shall be in form reasonably satisfactory to the Buyer; and 
  
 (b) a release of the Company’s liabilities and obligations under that
certain Master Lease Agreement by and between Steelcase Financial Services, Inc. and the Company, dated October 15, 2002 
  

	 	9.4	Use of Company Products 

  
 The Company shall allow Digital Realty to use Soar eMLS, MLS, SoarNET and non-exclusive, non-leads based successor products at no cost for a period of
three years, so long as such products are not discontinued during such period. Such use shall be limited to use by a maximum of fifty (50) Digital Realty employees and contractors. 
  

	 	9.5	Further Action 

  
 Upon the terms and subject to the conditions hereof, each of the parties shall (a) make promptly its respective filings, and thereafter make any other
required submissions, under applicable laws with respect to the transactions contemplated hereby and shall cooperate with the Buyer with respect to such filings and submissions and (b) use its best efforts to take, or cause to be taken, all
appropriate action, and to do, or cause to be done, all things necessary, proper or advisable under applicable laws and regulations to consummate and make effective the transactions contemplated hereby, including, without limitation, using its best
efforts to obtain all waivers, licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and parties to contracts as are necessary for the consummation of the transactions contemplated hereby and
to fulfill the conditions to the closing of the sale of the Shares to the Buyer. In case at any time after the Closing Date any further action is necessary or desirable to carry out the purposes of this Agreement, each party to this Agreement shall
use its best efforts to take all such action. None of the Buyer, the Company or the Shareholders will undertake any course of action inconsistent with this Agreement or that would make any representations, warranties or agreements made by
such party in this Agreement untrue or any conditions precedent to this Agreement unable to be satisfied at or prior to the Closing. 
  

	 	9.6	Payment of Interest 

  
 On each Disbursement Date (as defined in the Escrow Agreement attached hereto as Exhibit B), the Buyer shall pay the Shareholders an amount equal
to the difference between the interest accrued on the Escrow Amount being delivered to the Shareholders as a result of investments made pursuant to Section 3(i) of the Escrow Agreement and the interest that would have accrued if such interest were
to accrue at a rate of ten percent (10%) per annum. 
  

 -20- 

	10.	Taxes 

  
 (a) The Shareholders shall be responsible for the payment of all transfer, sales and use and documentary taxes, filing and recording fees and similar
charges that may be payable in connection with the transactions contemplated by this Agreement. 
  
 (b) Buyer shall prepare, or cause to be prepared, and file, or cause to be filed, all tax returns of the Company for all periods ending on or prior to the
Closing Date (which are filed after the Closing Date) and for all periods that began before the Closing Date and end after the Closing Date. 
  
 (c) The Shareholders agree that they will join with the Buyer and the Company to timely make the election provided for under Section 338(h)(10) of the
Code in connection with the consummation of the transactions contemplated hereby (the “Section 338(h)(10) Election”). The Shareholders will include any income, gain, loss, or deduction resulting from the Section 338(h)(10) Election on
their tax returns to the extent required by applicable law. The Purchase Price, liabilities of the Company and other relevant items shall be allocated in accordance with the allocation set forth on a schedule which shall be prepared by the Buyer and
provided to the Shareholders within 90 days following the Closing Date. The Buyer agrees to compensate the Shareholders for any incremental tax liability payable by the Shareholders resulting from the Section 338(h)(10) election. 
  

	11.	Transaction Costs 

  
 Each party shall be responsible for its own costs and expenses incurred in connection with the preparation, negotiation and delivery of this Agreement and
the Transaction Documents, including but not limited to attorneys’ and accountants’ fees and expenses; except that in no event shall any of such costs or expenses be borne by or charged to the Company. 
  

	12.	Attorneys’ Fees and Costs 

  
 In the event that a party commences a legal proceeding (including arbitration pursuant to Section 14.2 of this Agreement) to enforce its rights under this
Agreement, the substantially prevailing party shall be entitled to recover its attorneys’ fees and costs from the non-prevailing party or parties, including those incurred in any arbitration, bankruptcy or appeal procedure. 
  

	13.	Survival and Indemnification 

  

	 	13.1	Survival 

  
 All representations and warranties of the Company and the Shareholders contained in this Agreement or in the Transaction Documents or in
any certificate delivered 

  

 -21- 

 
pursuant hereto or thereto shall survive the Closing for a period of twenty-four (24) months after the Closing Date, except that the representation and
warranties in Section 5.1.1 and Section 5.3 shall survive forever and the representations and warranties in Section 5.9 and 5.11 shall survive until the applicable statute of limitation plus thirty (30) days, and such representations and warranties
shall not be deemed waived or otherwise affected by any investigation made or any knowledge acquired with respect thereto. The covenants and agreements of the Company, the Shareholders and the Buyer contained in this Agreement or in the Transaction
Documents shall survive the Closing and shall continue until all obligations with respect thereto shall have been performed or satisfied or shall have been terminated in accordance with their terms. 
  

	 	13.2	In General 

  
 (a) The Shareholders shall indemnify, defend and hold harmless Buyer and the Company from and against all claims, damages, losses, liabilities, costs,
expenses (including, without limitation, settlement costs and any legal, accounting or other expenses for investigating or defending any actions or threatened actions and any damages or additional tax costs attributable to any reductions in any tax
attributes of the Company for taxable periods after the Closing Date) (“Damages”) incurred by the Company prior to the Closing Date or resulting from: 
  
 (i) any breach by the Company or the Shareholders of any representation or warranty in this Agreement or any
Transaction Document; 
  
 (ii) any breach of any
covenant, agreement or obligation of the Company or the Shareholders contained in this Agreement or any Transaction Document; 
  
 (iii) any misrepresentation contained in any statement, certificate or schedule furnished by or on behalf of the Company or the
Shareholders pursuant to this Agreement, the Transaction Documents or in connection with the transactions contemplated thereby; 
  
 (iv) any state and local income, sales, business and occupation, franchise, or other activity-based tax liabilities incurred by the
Company on or prior to the Closing Date, and any taxes arising out of or resulting from the payment of the Purchase Price; or 
  
 (v) any claims or legal proceedings against the Company arising prior to the Closing Date. 
  
 (b) The Buyer shall indemnify and hold the Shareholders harmless from any and
all Damages resulting from (i) any breach of any representation or warranty made by the Buyer in this Agreement or in any Transaction Document and (ii) any breach by the Buyer of any covenant, agreement or obligation of the Buyer contained in this
Agreement or any Transaction Document. 
  

 -22- 

	 	13.3	Claims for Indemnification 

  
 Whenever any claim shall arise for indemnification under Section 13 of this Agreement, the party seeking indemnification (the “Indemnified
Party”) shall promptly notify the party from whom indemnification is sought (the “Indemnifying Party”) of the existence of the claim and, when known, the facts constituting the basis for such claim. In the event
any such claim for indemnification is made resulting from or in connection with any claim or legal proceedings by a third party, the notice to the Indemnifying Party shall specify, if known, the amount or an estimate of the amount of the liability
arising from such claim. The Indemnified Party shall not settle or compromise any claim by a third party for which it is entitled to indemnification without the prior written consent of the Indemnifying Party, which consent shall not unreasonably be
withheld, unless suit shall have been instituted against it and the Indemnifying Party shall not have taken control of such suit after notification as provided in Section 13.4 of this Agreement. 
  

	 	13.4	Defense by Indemnifying Party 

  
 In connection with any claim giving rise to indemnity resulting from or arising out of any claim or legal proceeding by a person or entity who is not a
party to this Agreement, the Indemnifying Party at its sole cost and expense may, upon written notice to the Indemnified Party, assume the defense of any such claim or legal proceeding if it acknowledges to the Indemnified Party in writing its
obligations to indemnify the Indemnified Party with respect to all elements of such claim. The Indemnified Party shall be entitled to participate in (but not control) the defense of any such action, with its counsel and at its own expense. If the
Indemnifying Party does not assume the defense of any such claim or resulting litigation within thirty (30) days after the date that notice of such claim is received from the Indemnified Party, (a) the Indemnified Party may defend against such claim
or litigation, in such manner as it may deem appropriate, including, but not limited to, settling such claim or litigation, after giving notice of the same to the Indemnifying Party, on such terms as the Indemnified Party may deem appropriate, and
(b) the Indemnifying Party shall be entitled to participate in (but not control) the defense of such action, with its counsel and at its own expense. If the Indemnifying Party thereafter seeks to question the manner in which the Indemnified Party
defended such third party claim or the amount or nature of any such settlement, the Indemnifying Party shall have the burden to prove by a preponderance of the evidence that the Indemnified Party did not defend or settle such third party claim in a
reasonably prudent manner. 
  

	 	13.5	Right of Setoff 

  
 Notwithstanding anything in this Agreement to the contrary, the Buyer may set off any amount to which it may be entitled under Section 13 of the Agreement
against amounts otherwise payable under this Agreement. The exercise of such right of setoff by the Buyer, whether ultimately determined to be justified, will not constitute an event of default under the this Agreement and will not constitute an
election of remedies or limit the Buyer in any 

  

 -23- 

 
manner in the enforcement of any other remedies that may be available to it in connection with this Agreement. 
  

	14.	Miscellaneous 

  

	 	14.1	Assignment 

  
 No party may assign any of its rights or obligations hereunder without the prior written consent of the other party. This Agreement shall be binding upon
and inure to the benefit of the parties and their respective heirs, legal representatives, successors and assigns. 
  

	 	14.2	Arbitration 

  
 Any claims or disputes arising out of this Agreement which cannot be resolved amicably between the parties shall be settled by submission to the American
Arbitration Association (the “AAA”) for binding arbitration to be conducted in Seattle, Washington. The arbitration shall be conducted by one arbitrator mutually agreed upon by the parties, or, if the parties cannot agree,
chosen in accordance with the AAA rules, and resolution of the dispute by such arbitrator shall be binding and conclusive upon the parties. On prior leave of the arbitrator, the parties may engage in limited discovery, including limited depositions.
Any award made pursuant to this Section 14.2 may be entered in and enforced by any court having jurisdiction, and the parties consent and commit themselves to the jurisdiction of the courts of the State of Washington for the purpose of the
enforcement of any such award. The arbitrator shall award attorneys’ fees and costs to the substantially prevailing party in accordance with Section 12 of this Agreement. The fees of the arbitrator shall be borne equally by the parties except
that, in the discretion of the arbitrator, any award may include a party’s share of such fees. 
  

	 	14.3	Entire Agreement 

  
 This Agreement embodies and constitutes the entire understanding among the parties with respect to the transactions contemplated by this Agreement, and
all prior or contemporaneous agreements, understandings, representations and statements between the parties, oral or written, are merged into and superseded by this Agreement. 
  

	 	14.4	Modification and Waiver 

  
 Neither this Agreement nor any of its provisions may be modified, amended, discharged or terminated except in writing signed by the party against which
the enforcement of such modification, amendment, discharge or termination is sought, and then only to the extent set forth in such writing. No failure of a party to insist upon strict performance by the other party of any of the terms and conditions
of this Agreement shall constitute or be deemed to be a waiver of any such term or condition, or constitute an amendment or waiver of any such term or provision by course of performance, and each party, notwithstanding any 

  

 -24- 

 
failure to insist upon strict performance, shall have the right thereafter to insist upon strict performance by the other party of any and all of the terms
and conditions of this Agreement. Any party may, in its sole and absolute discretion, waive, only in writing, any condition set forth in this Agreement to such party’s obligations under this Agreement which is for the sole benefit of the
waiving party, in which event the non-waiving party or parties shall be obligated to close the transaction upon all of the remaining terms and conditions of this Agreement. 
  

	 	14.5	Notices 

  
 Any notice required or permitted under this Agreement shall be in writing, and shall be delivered personally or sent by first class certified mail, or by
air courier, postage or other charges prepaid, to the parties at the following addresses: 
  

			
	to the Company:	  	 Soar Solutions, Inc.
 1700 Park Street
 Naperville, Illinois 60563

		
	to the Shareholders:	  	 David and Suzanne Huey
 125 Carol Gate Road

Wheaton, Illinois 60187

		
	to Buyer:	  	 HouseValues, Inc.
 15 Lake Bellevue Drive

Bellevue, Washington 98005
 Attention: Chief Executive
Officer

  
 or to such other address or addresses
as the parties may from time to time specify in writing. Notice shall be provided by air courier and shall be deemed effective upon the earlier of actual delivery to the recipient or six days after the date on which such notice was delivered to the
courier service. If notice is sent in any manner other than as provided by this Section 14.5, notice shall be deemed received when actually received by the party to whom the notice was delivered. 
  

	 	14.6	Governing Law; Severability 

  
 This Agreement shall be governed for all purposes by the laws of the State of Washington applicable to agreements executed and to be wholly performed in
Washington. Nothing contained in this Agreement shall be construed so as to require the commission of any act contrary to law, and whenever there is any conflict between any provision contained in this Agreement and any present or future statute or
law, ordinance or regulation or judicial ruling or governmental decision with the force of law contrary to which the parties have no legal right to contract, the latter shall prevail, but the provision of the Agreement which is 

  

 -25- 

 
affected shall be limited only to the extent necessary to bring it within the requirements of such law, ruling or decision without invalidating or affecting
the remaining provisions of the Agreement. 
  

	 	14.7	Counterparts 

  
 This Agreement may be executed in counterparts, each of which shall be an original, but such documents shall constitute one and the same document.

  

	 	14.8	Contract Interpretation 

  
 The parties acknowledge that they have caused this Agreement to be reviewed and approved by legal counsel of their own choice. This Agreement has been
specifically negotiated, and any presumption that an ambiguity contained in this Agreement shall be construed against the party that caused this Agreement to be drafted shall not apply to the interpretation of this Agreement. 
  

	 	14.9	Other Parties 

  
 Nothing contained in this Agreement shall be construed as giving any person, firm, corporation or other entity, other than the parties to this Agreement
and their successors and permitted assigns, any right, remedy or claim under or in respect of this Agreement or any term or condition contained in this Agreement. 
  

	 	14.10 	Incorporation by Reference 

  
 All attached exhibits and schedules are incorporated as terms of this Agreement by this reference. 
  
 [Signature page follows] 
  

 -26- 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by their respective
representatives hereunto authorized as of the day and year first above written. 
  

			
	 THE COMPANY:

	
	 SOAR SOLUTIONS, INC.
 an Illinois corporation

		
	By:	 	 /s/ David Huey

	 	 	 DAVID HUEY

	 	 	 Its Authorized Officer

	
	 THE SHAREHOLDERS:

	
	DAVID HUEY
		
	By:	 	 /s/ David Huey

	 	 	 David Huey

	
	SUZANNE HUEY
		
	By:	 	 /s/ Suzanne Huey

	 	 	 Suzanne Huey

	
	 BUYER:

	
	 HOUSEVALUES, INC.
 a Washington corporation

		
	By:	 	 /s/ Ian Morris

	 	 	 CEO

	 	 	 Its Authorized Officer

  

 -27-

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