Document:

Exhibit 10.1

Exhibit 10.1

	 	 	 	 	 
	
	 	 	 	 
	 
	 	 	 	 
	Members NASD, SIPC

	 	Investment Bankers / Brokers
	 	tcoffin@sourcegrp.com
	 
	 	 	 	 
	W. Todd Coffin — Senior Managing Director
	 	 	 	 

November 22, 2010

Mr. Ron Pickett

Clean Wind Energy Inc.

1997 Annapolis Exchange Blvd.

Suite 300

Annapolis, MD 21401

Dear Mr. Pickett:

The purpose of this letter is to confirm the understanding and agreement (the “Agreement”) between
Source Capital Group, Inc., (“SCG”) and Clean Wind Energy Inc. (or the “Company”) and its
affiliates, regarding the retention of SCG by the Company, as its exclusive financial advisor for
the purposes set forth herein.

Under this Agreement, SCG will provide financial advisory services to the Company as follows:

A) Raising of Capital. SCG shall use its best efforts to provide up to but not
limited to an initial $10,000,000.00 financing for the Company. Additional Financing shall
be contracted under separate economic consideration.

B) Fees, Commissions & Expenses. The Company agrees to pay the following fees to
SCG for its services.

SCG shall be compensated 7% cash and 7% cashless warrants on any equity
raised (this includes any cash in a shell company, equity derivative,
convertible preferred, convertible debt or bridge financing) up to $100MM.
SCG shall receive 3% cash fee and 3% cashless warrant coverage on any Debt
financing. The exercise price of the warrants shall be equal to the price of
the stock at the time of the sale and will be subject to adjustment in
accordance with the terms of any adjustment provided for in the Financing
document. Said warrants shall be exercisable for five (5) years from date
of issuance. The terms of said warrants shall include such piggyback
registration rights, anti-dilution rights, and the warrants shall be
“cashless” exercise provisions in the event of exercise by SCG. Such fees
shall be paid at the closing from an escrow account at the same time any new
investment is dispersed to the company. These fees shall be inclusive of
any project finance. Project finance and the balance of financing shall be
contracted under separate agreement.

276 Post Road West • Westport, CT 06880 • 203 341-3500 • 800 882-2889 • Fax 203 341-3515

 

 

 

			
	Source Capital Group, Inc.
	 	Page 2 of 7

	 	 	 
	*	 	Bridge financing of up to $300,000.00 may be raised directly by the
Company outside of the exclusive arrangement as the “Carve-out Provision”.
No fee will be due to SCG under the “Carve-out Provision”.

	 	1.	 	Retainer Fee SCG will receive a
$25,000.00 non-refundable, non-accountable retainer upon signing of
this agreement. An additional $25,000.00 shall be due upon completion
of an offering document and Power Point Presentation.

	 	2.	 	Though the retainer fee is non-accountable SCG
shall be providing the following services:

	 	 	 
	Assisting with the public shell or entity

	 	Week 1-4
	 
	 	 
	Drafting of Offering Document

	 	Week 1-2
	 
	 	 
	Making a Market in the Companies stock
	 	 
	 
	 	 
	Road Show and Investor Tracker

	 	Week 3-6
	 
	 	 
	Closing Documents and Structure

	 	Week 4-8

	 	 	 
	*	 	Filing of 15-C-211 shall come under separate agreement if needed.

	 	3.	 	Expenses. In addition to any fees that
may be payable to SCG under this Agreement, the Company agrees to
reimburse SCG for its reasonable out-of-pocket expenses incurred in
connection with the services rendered by SCG hereunder (including,
without limitation, travel and lodging, data and word processing,
graphics and communication charges, research costs, and courier
services and fees). Compensation for any additional professional
services (e.g. legal or consulting) contracted for by SCG, to be
performed for the benefit of the Company by outside parties, is the
responsibility of the Company and will be paid directly by the Company
to such party. SCG will not contract for such services without the
prior written approval of the Company with regard to both the nature of
the service and a reasonable estimate of the cost of such service.

	 	4.	 	All cash payments under this Agreement shall be
made in U.S. dollars and without withholding or deduction of any tax,
assessment or other governmental charges unless required by law. At
closing any and all fees associated with this transaction are to be
settled. Fees and retainers should be made payable and wired to:

Source Capital Group, Inc.

Bank of America

Westport, CT

ABA# 026009593

Acct# 93618 82644

276 Post Road West • Westport, CT 06880 • 203 341-3500 • 800 882-2889 • Fax 203 341-3515

 

 

 

			
	Source Capital Group, Inc.
	 	Page 3 of 7

C) Mergers, Acquisitions, Joint Venture (“MA&JV”). The Company may at its discretion and
on a case-by-case basis engage SCG to assist the Company in its discussions with potential MA&JV
candidates, which will include directly negotiating on the Company’s behalf and the rendering
independent opinions as to valuation and formulae, among other things. The Company will pay SCG
a closing fee equal to 3.00% of the amount paid or received in kind (PIK) in any transaction by
and or between the Company, the MA&JV candidate and or the surviving company (the “M&A Fee”).
Any potential MA&JV candidate introduced by SCG with which the Company enters into a letter of
intent, will fall under the M&A engagement. This fee shall apply to any strategic partnerships
as well as a Special Purpose Vehicle (SPV) or an asset purchases.

D) Information. The Company will furnish or cause to be furnished to SCG, such
information, as SCG believes appropriate to its assignment (all such information so furnished
being the “Information”). The Company recognizes and confirms that SCG (a) will use and rely
primarily on the Information and on information available from generally recognized public
sources in performing the services contemplated by this Agreement without having independently
verified the same, (b) does not assume responsibility for the accuracy or completeness of the
Information and such other information, (c) is entitled to rely upon the Information without
independent verification and (d) will not make an appraisal of any assets in connection with its
assignment

E) Exclusivity. The Company’s relationship with SCG will be exclusive for 120 days upon
signing of this agreement. However, upon successful completion of $10 million aggregate gross
financing within 90 days, SCG shall retain the “right of refusal” on any additional equity
financing or debt financing within 12 months from the termination of the Agreement. However, if
the Company enters into a Firm Underwriting Commitment Engagement for a public offering, then
the Refusal Right Period will automatically terminate, however SCG shall retain a “.

F) Confidentiality. Except as contemplated by the terms hereof or as required by
applicable law or legal process, SCG shall keep confidential all non-public information provided
to it by or at the request of the Company, and shall not disclose such information to any third
party or to any of its employees or advisors except to those persons who have a need to know
such information in connection with SCG’s performance of its responsibilities hereunder. The
Company understands that any documents, presentations or analyses prepared by SCG are
proprietary and SCG is under no obligation to provide (by e-mail or otherwise) either the
Company or its assigns with the computer files of such work product. Except as required by
applicable law, any advice to be provided by SCG under this Agreement shall not be disclosed
publicly or made available to third parties without the prior written consent of SCG. In
addition, SCG may not be otherwise publicly referred to without its prior written consent. All
services, advice and information and reports provided by SCG to the Company in connection with
this assignment shall be for the sole benefit of the Company and shall not be relied upon by any
other person.

G) Indemnity. The Company acknowledges and agrees that SCG has been retained to act
solely as financial advisor to the Company. In such capacity, SCG shall act as an independent
contractor, and any duties of SCG arising out of its engagement pursuant to this Agreement shall
be owed solely to the Company. The Company agrees to indemnify SCG in accordance with the
indemnification agreement attached as Exhibit A.

H) Arbitration. Any and all disputes, demands, claims or controversies hereto arising
out of or relating to this agreement or the breach thereof, shall be settled by binding
arbitration in accordance with the rules of the American Arbitration Association (“AAA”). The
arbitration shall be conducted in New York City under the rules of the AAA. Any judgment upon
the award rendered by the arbitrator may be entered into any court or administrative tribunal
having jurisdiction thereof. Costs
associated with the arbitration, including reasonable attorney’s fees, shall be borne by
whichever parties the arbitrators shall deem just and fair.”

276 Post Road West • Westport, CT 06880 • 203 341-3500 • 800 882-2889 • Fax 203 341-3515

 

 

 

			
	Source Capital Group, Inc.
	 	Page 4 of 7

I) Term & Termination. The term of SCG’s engagement hereunder shall extend from the
date hereof through to 90 days from signing (the “Expiration Date”) and will be automatically
renewed on a monthly basis until canceled in writing by either party. SCG’s engagement
hereunder may be terminated upon 60 days written notice without cause by either the Company or
SCG at any time before the Expiration Date. Notwithstanding the foregoing, the provisions
relating to the payment of fees and expenses accrued through the date of termination, the status
of SCG as an independent contractor and the limitation on to whom SCG shall owe any duties will
survive any such termination, and any such termination shall not affect the Company’s
obligations under the indemnification agreement.

SCG will be entitled to the fees set forth above in the event that at any time prior to the
earlier of the termination of this letter and the expiration of SCG’s engagement hereunder a
Financing is consummated and the investor is on a list of potential investors provided to the
Company by SCG at the time of termination or expiration and SCG had made efforts that led to an
investment on behalf of the Company with respect to such investor(s) prior to termination or
expiration, as appropriate. Further, in the event that a Financing or M&A transaction is
completed with an investor, on the list described above, with respect to which SCG had made
efforts that led directly to an investment or other substantive effort before such termination
or expiration, whichever is earlier, SCG will be entitled to the full fees, on those investors,
as outlined in paragraph 1 (but only for the amount purchased by such investors) for a period of
24 months after the termination or expiration date, as applicable, calculated in accordance with
Section B of this Agreement. On the termination or expiration date, as applicable, SCG will
provide the Company an updated Exhibit B for purposes of this paragraph. If a term sheet
is produced during the engagement period and SCG is terminated prior to the Expiration Date than
SCG shall be entitled to a 1% break-up fee of the total amount of any financing.

J) Rights of First Refusal. Upon successful completion of $10 million financing, SCG
shall retain the right of first refusal for any additional private financing. This right shall
be carried for 12 months from termination.

K) Advertisements. The Company acknowledges that SCG may, at its option and expense,
place an announcement in such newspapers and periodicals as it may choose, stating that SCG has
acted as the financial advisor to the Company. SCG agrees that the Company will have the right
to approve the form of such announcement.

This Agreement (including the attached indemnification) embodies the entire agreement and
understanding between the parties hereto and supersedes all prior agreements and understandings
relating to the subject matter hereof. If any provision of this Agreement is determined to be
invalid or unenforceable in any respect, such determination will not affect such provision in any
other respect, which will remain in full force and effect. No waiver, amendment or other
modification of this Agreement shall be effective unless in writing and signed by each party to be
bound thereby. This Agreement shall be governed by, and construed in accordance with, the laws of
the State of New York applicable to contracts executed in and to be performed in that state.

276 Post Road West • Westport, CT 06880 • 203 341-3500 • 800 882-2889 • Fax 203 341-3515

 

 

 

			
	Source Capital Group, Inc.
	 	Page 5 of 7

This Agreement sets forth the entire agreement with respect to the engagement of SCG by the
Company, including the fees and warrants payable as a result of such engagement.

Please confirm that the foregoing correctly sets forth our agreement by signing and returning to
SCG the duplicate copy of this Agreement, the indemnification agreement attached hereto as
Exhibit A.

	 	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ Ronald Pickett
	 	 	 	By:
	 	/s/ Russ Newton	 	 
	 

	 	 

Mr. Ronald Pickett — Chairman
	 	 	 	 	 	 

Russ Newton — CFO
	 	 
	 

	 	Clean Wind Energy Inc.
	 	 	 	 	 	Source Capital Group	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	/s/ W. Todd Coffin
	 	 	 	By:
	 	/s/ William F. Butler	 	 
	 

	 	 

W. Todd Coffin
	 	 	 	 	 	 

William F. Butler
	 	 
	 

	 	Senior Managing Director
	 	 	 	 	 	Senior Managing Director	 	 
	 

	 	Source Capital Group
	 	 	 	 	 	Source Capital Group	 	 

276 Post Road West • Westport, CT 06880 • 203 341-3500 • 800 882-2889 • Fax 203 341-3515

 

 

 

			
	Source Capital Group, Inc.
	 	Page 6 of 7

This Exhibit A is a part of and is incorporated into that certain letter agreement, November 22,
2010, (the “Agreement”), by and between Clean Wind Energy Inc., a
 _____ 
(State of Incorporation)
and Source Capital Group, Inc. (the “Placement Agent”). Capitalized terms used herein and not
otherwise defined shall have the respective meanings provided in the Agreement.

The Company agrees to indemnify and hold harmless the Placement Agent, its affiliates and each
person controlling the Placement Agent and the Placement Agent agrees to indemnify and hold
harmless The Company (within the meaning of Section 15 of the Securities Act), and the directors,
officers, agents and employees of the Placement Agent, its affiliates and each such controlling
person (the Placement Agent, and each such entity or person. an “Indemnified Person”) from and
against any losses, claims, damages, judgments, assessments, costs and other liabilities
(collectively, the “Liabilities”), and shall reimburse each Indemnified Person for all fees and
expenses (including the reasonable fees and expenses of one counsel for all Indemnified Persons,
except as otherwise expressly provided herein) (collectively, the “Expenses”) as they are incurred
by an Indemnified Person in investigating, preparing, pursuing or defending any claim, action,
proceeding or investigation, whether or not any Indemnified Person is a party thereto
(collectively, the “Actions”), (i) caused by, or arising out of or in connection with, any untrue
statement or alleged untrue statement of a material fact contained in any offering documents
prepared by the Company (including any amendments thereof and supplements thereto) (the “Offer
Documents”) or by any omission or alleged omission to state therein a material fact necessary to
make the statements therein, in light of the circumstances under which they were made, not
misleading (other than untrue statements or alleged untrue statements in, or omissions or alleged
omissions from, information relating to an Indemnified Person furnished in writing by or on behalf
of such Indemnified Person expressly for use in the Offer Documents) or (ii) otherwise arising out
of or in connection with advice or services rendered or to be rendered by any Indemnified Person
pursuant to the Agreement, the transactions contemplated thereby or any Indemnified Person’s
actions or inactions in connection with any such advice, services or transactions; provided,
however, that, in the case of clause (ii) only, the Company shall not be responsible for any
Liabilities or Expenses of any Indemnified Person that have resulted primarily from such
Indemnified Person’s (x) gross negligence, bad faith or willful misconduct in connection with any
of the advice, actions, inactions or services referred to above or (y) use of any offering
materials or information concerning the Company in connection with the offer or sale of the
Securities in the Transaction which were not authorized for such use by the Company and which use
constitutes negligence, bad faith or willful misconduct. The Company also agrees to reimburse each
Indemnified Person for all Expenses as they are incurred in connection with enforcing such
Indemnified Person’s rights under the Agreement, which includes this Exhibit A.

Upon receipt by an Indemnified Person of actual notice of an Action against such Indemnified Person
with respect to which indemnity may be sought under the Agreement, such Indemnified Person shall
promptly notify the Company in writing; provided that failure by any Indemnified Person so to
notify the Company shall not relieve the Company from any liability which the Company may have on
account of this indemnity or otherwise to such Indemnified Person, except to the extent the Company
shall have been prejudiced by such failure. The Company shall, if requested by the Placement Agent,
assume the defense of any such Action including the employment of counsel reasonably satisfactory
to the Placement Agent, which counsel may also be counsel to the Company. Any Indemnified Person
shall have the right to employ separate counsel in any such action and participate in the defense
thereof, but the fees and expenses of such counsel shall be at the expense of such Indemnified
Person unless: (i) the Company has failed promptly to assume the defense and employ counsel or (ii)
the named parties to any such Action (including any impeded parties) include such Indemnified
Person and the Company, and such Indemnified Person shall have been advised in the reasonable
opinion of counsel that there is an actual conflict of interest that prevents the counsel selected
by the Company from representing both the Company (or another client of such counsel) and any
Indemnified Person; provided that the Company shall not in such event be responsible hereunder for
the fees and expenses of more than one firm of separate counsel for all Indemnified Persons in
connection with any Action or related Actions, in addition to any local counsel. The Company shall
not be liable for any settlement of any Action effected without its written consent (which shall
not be unreasonably withheld). In addition, the Company shall not, without the prior written
consent of the Placement Agent (which shall not be unreasonably withheld), settle, compromise or
consent to the entry of any judgment in or otherwise seek to terminate any pending or threatened
Action in respect of which indemnification or contribution may be sought hereunder (whether or not
such Indemnified Person is a party thereto) unless such settlement, compromise, consent or
termination includes an unconditional release of each Indemnified Person from all Liabilities
arising
out of such Action for which indemnification or contribution may be sought hereunder. The
indemnification required hereby shall be made by periodic payments of the amount thereof during the
course of the investigation or defense, as such expense, loss, damage or liability is incurred and
is due and payable.

276 Post Road West • Westport, CT 06880 • 203 341-3500 • 800 882-2889 • Fax 203 341-3515

 

 

 

			
	Source Capital Group, Inc.
	 	Page 7 of 7

In the event that the foregoing indemnity is unavailable to an Indemnified Person other than in
accordance with the Agreement, the Company shall contribute to the Liabilities and Expenses paid or
payable by such Indemnified Person in such proportion as is appropriate to reflect (i) the relative
benefits to the Company, on the one hand, and to the Placement Agent and any other Indemnified
Person, on the other hand, of the matters contemplated by the Agreement or (ii) if the allocation
provided by the immediately preceding clause is not permitted by applicable law, not only such
relative benefits but also the relative fault of the Company, on the one hand, and the Placement
Agent and any other Indemnified Person, on the other hand, in connection with the matters as to
which such Liabilities or Expenses relate, as well as any other relevant equitable considerations;
provided that in no event shall the Company contribute less than the amount necessary to ensure
that all Indemnified Persons, in the aggregate, are not liable for any Liabilities and Expenses in
excess of the amount of fees actually received by the Placement Agent pursuant to the Agreement.
For purposes of this paragraph, the relative benefits to the Company, on the one hand, and to the
Placement Agent on the other hand, of the matters contemplated by the Agreement shall be deemed to
be in the same proportion as (a) the total value paid or contemplated to be paid to or received or
contemplated to be received by the Company in the transaction or transactions that are within the
scope of the Agreement, whether or not any such transaction is consummated, bears to (b) the fees
paid to the Placement Agent under the Agreement. Notwithstanding the above, no person guilty of
fraudulent misrepresentation within the meaning of Section 11(f) of the Securities Act of 1933, as
amended, shall be entitled to contribution from a party who was not guilty of fraudulent
misrepresentation.

The Company also agrees that no Indemnified Person shall have any liability (whether direct or
indirect, in contract or tort or otherwise) to the Company for or in connection with advice or
services rendered or to be rendered by any Indemnified Person pursuant to the Agreement, the
transactions contemplated thereby or any Indemnified Person’s actions or inactions in connection
with any such advice, services or transactions except for Liabilities (and related Expenses) of the
Company that have resulted primarily from such Indemnified Person’s gross negligence, bad faith or
willful misconduct in connection with any such advice, actions, inactions or services.

The reimbursement, indemnity and contribution obligations of the Company set forth herein shall
apply to any modification of the Agreement and shall remain in full force and effect regardless of
any termination of, or the completion of any Indemnified Person’s services under or in connection
with, the Agreement.

276 Post Road West • Westport, CT 06880 • 203 341-3500 • 800 882-2889 • Fax 203 341-3515Exhibit 10.2

Exhibit 10.2

COMMERCIAL DEED OF LEASE

DEED OF LEASE

THIS
DEED OF LEASE (“Lease”) is made as of the 1st day of December, 2010, by and
between CKP ONE, LLC a Virginia limited liability company, with the address of 410 Rosedale Court,
Suite 200, Warrenton, Virginia 20186 (“Landlord”), and Clean Wind Energy, Inc. a Delaware
Corporation, with the address of 1997 Annapolis Exchange Boulevard, Suite 300, Annapolis, Maryland
21401(“Tenant”).

WITNESSETH THAT:

THE PARTIES DO HEREBY AGREE AND COVENANT AS FOLLOWS:

1. Definitions.

The following terms, when used herein, shall have the meanings set forth below.

1.1 Premises. That property Landlord does hereby let and demise totaling 8,435
square feet (as further described in Section 2 below) to Tenant and that is located at 410 Rosedale
Court, Warrenton, Virginia 20186 and further shown on Exhibit ‘A’ attached hereto and made
a part hereof.

Further, Tenant has the option within the first 18 months of the Lease Term to expand the
Premises (“Optional Expansion Area”) as also shown on Exhibit ‘A’. Landlord shall
construct a reception area and break room as further described in Exhibit ‘E’ — Landlord’s
Work.

1.2 Building. The building containing the Premises and all alterations, additions,
improvements, restorations or replacements now or hereafter made thereto, located at 410 Rosedale
Court, Warrenton, Fauquier County, Virginia.

1.3 Common Area. All areas, improvements, facilities and equipment from time to
time reasonably designated by Landlord for the common use or benefit of Tenant and other tenants of
the Building, including but not limited to unrestricted entrances and exits, landscaped
areas, exterior lighting, loading areas, pedestrian walkways, sidewalks, courtyards, stairs,
ramps, washrooms, hallways, lobbies, elevators and their housing and rooms, common window areas,
common walls, common trash areas and parking facilities.

1.4 Furniture, Fixtures & Equipment (“FF&E”). It is hereby acknowledged that
Landlord has provided furniture, fixtures & equipment outlined in Exhibit ‘G’ -
Landlord’s Furniture & Equipment for the benefit of Tenant. Said FF&E shall remain the property of
the Landlord during the initial three (3) year term of the lease. Should Tenant exercise it’s
first Renewal Option and complete said Renewal Term without default or other legal dispute,
Landlord’s FF&E within the Premises will then become the property of the Tenant.

 

 

 

1.4 Tenant’s Pro Rata Share. 8,435 square feet divided by 26,350 square feet or
Thirty-Two percent (32%) representing a fraction, the numerator of which is the area of the
Premises and the denominator of which is the area of the Building.

1.5 Operating Expenses. As used herein, the term “Operating Expenses” shall mean all
reasonable and necessary expenses and costs which Landlord incurs because of or in connection with
the ownership, maintenance, management and operation of the Building (which expressly includes the
Land, the Building and the Common Area). Operating Expenses shall include, without limitation,
all reasonable and actual costs, expenses and disbursements incurred or made in connection with the
following:

(i) Wages and salaries of all employees, whether employed by Landlord or the Building’s
management company, engaged in the operation and maintenance or security of the Building and all
reasonable costs related to or associated with such employees or the carrying out of their duties,
including taxes, and insurance and benefits (including, without limitation, reasonable
contributions to pension and/or profit sharing plans and vacation or other paid absences);

(ii) All supplies and materials, including janitorial and lighting supplies, used in the
operation and maintenance of the Common Areas of Building;

(iii) All utilities, including electricity, water, sewer, gas, lighting, heating and air
conditioning for all areas of the Building, except those utility services described in paragraph
17 of this Lease which are to be obtained by and charged directly to or paid directly by Tenant;

(iv) All insurance purchased by Landlord or the Building’s management company relating to the
Building and any equipment or other property contained therein or located thereon including,
without limitation, casualty, liability and water damage insurance;

(v) All repairs to the Building (excluding repairs paid for by the proceeds of insurance or
by Tenant or other third parties other than as a part of the Operating Expenses), including
interior and exterior non-structural, and regardless of whether foreseen or unforeseen;

(vi) All maintenance of the Building, including, without limitation, painting, ice and snow
removal, landscaping, grounds keeping and the patching and painting of parking lots;

(vii) All maintenance, operation and service agreements for the Building, and any equipment
related thereto (excluding those paid for by Tenant or any third parties other than as a part of
Operating Expenses);

 

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(viii) Any additional services not provided to the Building at the Commencement Date but
thereafter provided by Landlord as Landlord shall deem necessary or desirable in connection with
the management or operation of the Building;

(ix) All computer rentals for energy management or security monitoring systems, if any;

(x) Other expenses and costs necessary for operating and maintaining the Building and
maintenance and upkeep of the Land.

(xi) All Taxes. For purposes hereof, the term “Taxes” shall mean (i) all taxes, assessments,
and other governmental charges, applicable to or assessed against the Land and the Building
(collectively, “Project”) or any portion thereof, or applicable to or assessed against Landlord’s
personal property used in connection therewith, whether Federal, state, county, or municipal and
whether assessed by taxing districts or authorities presently taxing the Project or the operation
thereof or by other taxing authorities subsequently created, or otherwise, and (ii) any reasonable
expenses incurred by Landlord in contesting any taxes or the assessed valuation of all or any part
of the Project. If at any time during the Term Landlord shall be required to pay any charge which
is based upon rents from the Project, or the transactions represented by leases or the occupancy
or use of the Project, such charges shall be deemed to be Taxes; provided, however, that any (i)
franchise, corporation, income or net profits tax, unless substituted for real estate taxes or
imposed as additional charges in connection with the ownership of the Project, which may be
assessed against Landlord or the Project or both, (ii) transfer taxes assessed against Landlord or
the Project or both, and (iii) personal property taxes of Tenant or other tenants in the Project
shall be excluded from Taxes.

1.6 Rules and Regulations. The rules and regulations set forth in Exhibit B
attached hereto and made a part hereof, as the same may be amended or supplemented from time to
time.

2. Lease of Premises. In consideration of the agreements contained herein, Landlord hereby
leases the Premises to Tenant, and Tenant hereby leases the Premises from Landlord, for the Term
and upon the terms and conditions hereinafter provided. As an appurtenance to the Premises, Tenant
shall have the non-exclusive right, together with other tenants of the Building, to use the Common
Area. So long as it does not interfere with the Premises’ uses as set forth herein, Landlord shall
retain absolute dominion and control over the Common Area and shall operate and maintain the
Common Area in such manner as Landlord, in its sole discretion, shall determine; provided,
however, such exclusive right shall not operate to prohibit Tenant from its uses of the Premises
for the uses permitted under this Lease. Landlord expressly reserves the right permanently to
change, modify or eliminate, or temporarily to close, any portion of the Common Area. The Premises
are leased subject
to, and Tenant agrees not to violate, all present and future covenants not interfering with the
uses as set forth herein, conditions and restrictions of record which affect the Building.

 

3

 

3. Improvements/Commencement Date/ Lease Term.

A. Landlord shall not be obligated to make any improvements to the Premises and Tenant shall
accept same in “as is” condition except for the post-Commencement Date work described in Attachment
‘E’ — Landlord’s Work.

B. The Lease shall be for a term of Three (3) years commencing on the 1st day of
December, 2010 (“Commencement Date”), and fully ending at midnight on the last day of November,
2013 (“Term”).

C. Tenant shall have the option to renew and extend the terms of this Lease (Renewal Option)
with respect to the Premises for the Renewal Term (herein so called) upon and subject to the
following terms and conditions:

(i) Tenant may extend this Lease for up to Two (2) Renewal Terms of Two (2) years each by
Tenant giving written notice thereof to Landlord no later than six (6) months prior to the
expiration of the original term or subsequent Renewal Term(s). Such Renewal Term(s) shall commence
immediately upon the expiration of the original term or subsequent Renewal Term(s), and upon
exercise of such renewal option the expiration date of the term shall automatically become the
last day of the Renewal Term(s). Tenant’s failure to renew the Lease in a timely manner for the
Renewal Term(s), then Tenant’s rights with respect to all Renewal Terms shall expire and be of no
further force and effect.

(ii) The exercise by Tenant of the Renewal Option(s) set forth herein must be made, if at
all, by written notice executed by Tenant and delivered to Landlord on or before the dates set
forth herein above. Once Tenant exercises said Renewal Option(s), Tenant may not thereafter revoke
such exercise. Tenant shall not have the right to exercise the Renewal Option(s) if Tenant is in
default, or if any event has occurred or failed to occur which, with the giving of notice or the
passage of time, or both, would constitute such a default under this Lease, either at the time
Tenant gives notice of Tenant’s election to renew, or immediately prior to the commencement of the
Renewal Term.

(iii) Tenant shall take the Premises “as is” for the Renewal Term(s), and Landlord shall have
no obligation to make any improvements or alterations to the Premises except to continue their
existing use.

(iv) Rent for the Renewal Term(s) shall increase annually pursuant to Paragraph 5. Basic
Rent.

 

4

 

(v) Except as set forth herein, the leasing of the Premises for the Renewal Term(s) shall be
upon the same terms and conditions as are applicable for the original Term and any subsequent
Renewal Term(s), and shall be upon and subject to all of the provisions of this Lease, including,
without limitation, the obligation of Tenant to pay Additional Rent (defined below) and any other
costs or amounts payable by Tenant to Landlord in addition to rent under the Lease.

4. Basic Rent. During the Lease Term and subsequent Renewal Term(s), Tenant shall pay to
Landlord a basic rent in equal monthly installments as follows:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Annual Rent	 	 	 	 	 
	Lease year	 	Basic	 	 	Additional	 	 	Total	 	 	Monthly Payment	 
	1
	 	$	66,225.00	 	 	$	18,135.00	 	 	$	84,360.00	 	 	$	7,030.00	 
	2
	 	$	78,885.00	 	 	$	18,135.00	 	 	$	97,020.00	 	 	$	8,085.00	 
	3
	 	$	114,945.00	 	 	$	18,135.00	 	 	$	133,080.00	 	 	$	11,090.00	 
	1st Renewal Term
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4
	 	$	118,440.00	 	 	TBD	 	TBD	 	TBD
	5
	 	$	122,000.00	 	 	TBD	 	TBD	 	TBD
	2nd Renewal Term
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6
	 	$	125,640.00	 	 	TBD	 	TBD	 	TBD
	7
	 	$	129,420.00	 	 	TBD	 	TBD	 	TBD

The first monthly installment of Basic Rent shall be paid upon execution of this Lease and
the remaining installments shall be paid in advance on the first day of each calendar month during
the Lease Term, at the place designated by Landlord. Basic Rent increases shall commence on the
first anniversary of the Lease Commencement Date (being the first day of the thirteenth
(13th) month after the Commencement Date) and on each anniversary thereafter during the
Lease Term and Renewal Term(s), if exercised, (each of such dates being herein referred to as an
“Adjustment Date”). A pro rata adjustment to Basic Rent shall be made for any partial month
occurring at the beginning or the end of the Lease Term.

 

5

 

5. Additional Rent.

A. Tenant shall pay to Landlord, as Additional Rent, for each or fractional year during the
Term and the Renewal Term(s), if exercised, Tenant’s Pro Rata Share of the Operating Expenses for
the Building. Tenant’s payment is hereinafter referred to as the “Operating Expense Payment” and
shall be due in accordance with the following:

During the initial Three (3) year Lease Term, Tenant’s pro-rata share of the Operating
Expenses will be fixed at a rate of $2.15 per square foot. At the beginning of the first Renewal
Term, if exercised, Landlord shall furnish Tenant with a statement of the actual operating expense
payments for the preceding year and provide Tenant with the corresponding adjustment to Tenant’s
pro rata share of the Operating Expenses for the first year of the Renewal Term. At the beginning
of all subsequent calendar years during the Renewal Term(s) (or as soon thereafter as is practical)
Landlord shall furnish Tenant with a statement of the actual Operating Expense Payment for the
preceding year. If Tenant’s actual Operating Expense Payment for such preceding year, as shown on
Landlord’s statement, exceeds the aggregate of the monthly installments of Tenant’s Operating
Expense Payments paid during the preceding year, within thirty (30) days after Landlord’s delivery
of such statement, Tenant shall make a lump sum payment to Landlord in the amount of such excess.
If Tenant’s actual Operating Expense Payment as shown on Landlord’s statement is less than the
aggregate of the monthly installments actually paid by Tenant during such preceding year, then
Landlord shall apply such amount to the next accruing installment(s) of Additional Rent due from
Tenant under this paragraph 6 until fully credited to Tenant.

If for any reason Landlord has not provided Tenant with the Estimate by January 31 of any
year during the Renewal Term, then Tenant shall continue to pay the previous year’s Tenant’s
Operating Expense Payment. The foregoing notwithstanding, Landlord shall have the right from time
to time during any year to adjust such Estimate.

A pro rata adjustment shall be made to Tenant’s Operating Expense Payment for the years in
which the Term of the Lease begins and ends, as necessary.

B. If the Building is not fully occupied (meaning one hundred percent (100%) of the Net
Rentable Area of the Building) during any full or fractional year of the Term or if Landlord
effects a reduction in either the number of square feet of Net Usable Area in the Premises or in
the Building, Tenant’s Operating Expense Payment shall remain its Pro Rata Share as determined at
the beginning of this Lease.

C. All sums of money or charges required to be paid by Tenant under this Lease other than
Basic Rent shall be deemed Additional Rent hereunder and all remedies applicable to the non payment
of Basic Rent shall be applicable thereto. All Basic Rent and Additional Rent (collectively
“rent”) shall be paid without prior notice or demand, and without any counterclaim, set-off,
deduction, recoupment, credit or defense whatsoever, it being understood and agreed that Tenant’s
covenant to pay the rent is hereby deemed to be, and shall be, independent of the obligations of
Landlord hereunder. All payments shall be applied to the earliest amount then due. No receipt
and/or acceptance by landlord of any sums shall be deemed a waiver of any default by Tenant.
Landlord shall have the right to require rent payments to be made in cash, by money order or by
cashier’s check or certified check.

 

6

 

A late charge in the amount of five percent (5%) of any overdue amount, whether Basic Rent or
Additional Rent or both, shall be immediately due and owing by Tenant to Landlord as Additional
Rent for any payment delinquent ten (10) days after the due date. Payment of a late charge shall
not cure such default.

6. Security Deposit.

A. TENANT shall deposit $7,030.00 with the Landlord or his agent as security for the
full and faithful performance by Tenant of every provision, covenant, and condition of this lease,
without liability for interest.

B. In the event that Tenant defaults with respect to any such provisions, covenants or
conditions, including, but not limited to, payment of Basic Rent or Additional Rent, Landlord may
use, apply, or retain all or any part of said security deposit, for the payment of Basic Rent and
Additional Rent in default, or for any other sum which Landlord may expend or be required to expend
by reason of any default by Tenant, including any damages or deficiency in the re-letting of the
property, whether such damages or deficiency accrue before or after re-entry by Landlord. The
Tenant’s liability shall not be limited to the amount of the security deposit.

C. In the event the Tenant shall fully and faithfully comply with every provision, covenant,
and condition of this lease, said security deposit shall be returned to Tenant after the removal of
Tenant and surrender of possession of the property, in broom clean condition, and in good and
substantial repair and condition (normal wear and tear excepted), and within thirty (30) days
after the expiration of the Term of this lease or Renewal Term(s).

D. This security deposit shall not be used or applied by Tenant as a substitute for rent.

7. Landlord’s Reservations. In addition to the other rights of Landlord under this Lease,
Landlord reserves the right (i) to change the street address and/or name of the Building, (ii) to
install, erect, use, maintain and repair mains, pipes, conduits and other such facilities to serve
the Building’s tenants in and through the Premises, (iii) to grant to anyone the exclusive right to
conduct any particular business or undertaking in the Building, (iv) to control the use of the roof
and exterior walls of the Building for any purpose as long as it does not interfere with the
Tenant’s business. Landlord may exercise any or all of the foregoing rights without being deemed
to be guilty of an eviction, actual or constructive, or a disturbance or interruption of the
business of Tenant or Tenant’s use or occupancy of the Premises.

 

7

 

8. Tenant’s Possession. If Landlord is unable to deliver possession of
the Premises to Tenant at the Commencement Date for any reason, Tenant’s right of possession shall
be postponed without any liability
on the part of Landlord, and the rent herein stipulated to be paid shall be abated for the period
from the Commencement Date to the day possession is tendered to Tenant.

9. Compliance with Legal Requirements. Tenant shall, at Tenant’s own expense, comply with
all laws, orders, ordinances and regulations of Federal, state and local authorities and with
directions of public rules, recommendations, requirements and regulations respecting all matters
of occupancy, condition or maintenance within the Premises. The foregoing shall include Tenant’s
continued compliance with the Americans with Disabilities Act (ADA) of 1990, U.S.C. § 12101 et
seq., as amended from time to time. Wherever the term “legal requirements” appears in this Lease,
such term shall be deemed to include the foregoing requirements. In the event a non-compliant ADA
condition is determined to have existed prior to the Commencement Date, the Landlord shall take
necessary measures to bring said condition into compliance.

10. Maintenance and Repair. Landlord shall perform all maintenance and make all repairs
and replacements to the Premises and the Building, all at Landlord’s cost and expense.
Notwithstanding the foregoing, Tenant shall perform all (i) day-to-day maintenance of the Premises,
including without limitation, cleaning, replacement of light bulbs and cleaning of drains;
plumbing, gas, electric & HVAC maintenance and repairs of Tenant’s fixtures & equipment, and (ii)
maintenance, repair and replacement of furniture, fixtures, equipment or personal property of
Tenant. In addition, Tenant shall keep the Premises neat, clean and sanitary, and shall not permit
any employee, agent, client, customer, invitee and/ or guest to destroy, deface, damage, impair or
remove any part of the Premises or the facilities and appurtenances thereto, and Tenant shall not
do any such thing. All maintenance and repair costs incurred by Landlord for the Building shall
constitute Operating Expenses; provided, however, Tenant shall be solely responsible for all
costs incurred in repairing damage to the Building caused by the Tenant or its agents, employees,
contractors, invitees and licensees but only to the extent the cost thereof is not collected under
Landlord’s insurance. Landlord has no obligation and has made no promise to maintain, alter,
improve or repair the Premises or any part thereof, except as specifically set forth in this Lease.

Notwithstanding the above, and any other provision of this lease, should Tenant decide to
replace any interior flooring or do any interior painting or otherwise alter or improve the
Premises, Tenant shall do so at Tenant’s own expense.

11. Inspection, Repair and Leasing/ Sale Access. Landlord, its agents, employees and
mechanics authorized by Landlord may enter the Premises from time to time, during reasonable hours,
with reasonable notice to Tenant, when possible, for the purpose of performing Landlord’s
maintenance and repair duties as set forth in this Lease and for all other reasonable and proper
purposes. Landlord shall have the right, upon reasonable notice to Tenant, during the last six (6)
months of the Term and Renewal Term(s), if exercised, to show the Premises to
prospective tenants, and at any time during the Term and Renewal Term(s), to show the Premises to
prospective purchasers.

 

8

 

12. Alterations. Tenant shall not remodel or make any changes, alterations, additions or
decorations to the Premises without the prior written permission of Landlord.

13. Required Alterations. Tenant shall be solely responsible for all costs and expenses
associated with any repairs, alterations or additions to the Premises as may be required by any
governmental authority by reason of Tenant’s use of the Premises.

14. Mechanic’s Liens. In the event any mechanic’s lien is filed against the Premises as a
result of any services or labor provided, or materials furnished, by or on Tenant’s behest, or
claimed to have been provided by or on Tenant’s behest, Tenant shall (i) immediately notify
Landlord of such lien, and (ii) within ten (10) calendar days after the filing of any such lien,
discharge and cancel such lien of record by payment or bonding in accordance with the laws of the
Commonwealth of Virginia, all at Tenant’s sole cost and expense.

15. Uses. Tenant shall use and occupy the Premises for use as an Engineering Office with
associated Materials Testing Laboratory and for no other purpose. Tenant shall not use or occupy
the Premises in violation of law or of the certificate of occupancy issued for the Building of
which the Premises are a part, and shall, upon five (5) days’ written notice from Landlord
discontinue any use of the Premises which is declared by either any governmental authority having
jurisdiction or the Landlord to be a violation of law or of said certificate of occupancy. Tenant
shall comply with any direction of any governmental authority having jurisdiction which, by reason
of the nature of Tenant’s use or occupancy of the Premises, shall impose any duty upon Tenant or
Landlord with respect to the Premises or with respect to the use or occupation thereof.

Tenant shall not do nor permit to be done anything that will invalidate or increase the cost
of any fire and extended coverage insurance policy covering the building and/or property located
therein and shall comply with all rules, orders, regulations and requirements of the appropriate
Fire Rating Bureau or any other organization performing a similar function. Tenant shall promptly
upon demand reimburse Landlord for any additional premium charged for such policy by reason of
Tenant’s failure to comply with the provisions of this paragraph.

16. utilities. Utilities are currently shared with an adjacent first floor area
currently occupied by Air-Serv International. Initially, Tenant shall make utility payments
to Air-Serv International based on a pro-rata distribution based on the area of leased space.

 

9

 

Once the Landlord has segregated the utilities from the adjacent
leased space, Tenant shall obtain, in Tenant’s name, all utility services required on the Premises,
including gas, electricity, telephone, fiber optic or cable communications, and water and sewer
connections and services, and Tenant shall pay all charges for those services as they become due.

If Tenant fails to pay the utility charges, Landlord may elect to pay them and the charges
shall then be added to the Rent next due. Landlord may elect to terminate this Lease if Tenant
fails or refuses to pay the charges for utility services as assessed or incurred.

Landlord shall not be liable for any personal injury or property damage resulting from the
negligent operation or faulty installation of utility services provided for use on the Premises,
nor shall Landlord be liable for any injury or damage suffered by Tenant as a result of the
failure to make necessary repairs to the utility facilities.

Tenant shall be liable for any injury or damages to the equipment or service lines of the
utility suppliers that are located on the Premises, resulting from the negligent or deliberate
acts of Tenant, or the agents or employees of Tenant.

17. Parking. During the Term, Tenant shall have the right to use the parking lot serving
the Building, as may be re-configured from time to time, for parking of vehicles (including trucks
and service vehicles) for its employees, agents, clients, customers, invitees and guests but not
for any other purpose. With the exception of three (3) designated visitor’s parking spaces
indentified in Exhibit ‘F’ — Visitor Parking, Tenant’s use of the parking facilities shall otherwise
consist of available unreserved and non-exclusive parking spaces. Tenant shall not overburden such
parking facilities, and any usage in excess of 4.25 parking spaces for each 1,000 feet of rentable
area, or 36 spaces (“Tenant’s Parking Allocation”) may, at Landlord’s election, be deemed to
overburden the parking facilities.

Landlord shall have the right, from time to time, without Tenant’s consent, to change, alter,
add to, temporarily close or otherwise affect the parking lot and Common Areas in such manner as
Landlord, in its sole discretion, deems appropriate including, without limitation, the right to
designate reserved spaces available only for use by one or more tenants and/ or allow the parking
or placement of construction vehicles, equipment, generators, materials and other items therein on
a long term basis, provided that, in any voluntary modifications of or uses granted with respect
to the parking facilities, Landlord agrees to maintain Tenant’s Parking Allocation.

 

10

 

18.
ASSIGNMENT AND SUBLETTING.

Tenant shall not assign, transfer, mortgage or otherwise encumber this Lease or sublet or
rent (or permit a third party to occupy or use) the Premises, or any part thereof, nor shall any
assignment or
transfer of this Lease or the right of occupancy hereunder be effected by operation of law or
otherwise, without the prior written consent of Landlord which shall not be unreasonably withheld
or delayed. Without limitation, it shall not be unreasonable for Landlord to deny its consent to
any proposed assignment or sublease if, at the time Landlord receives Tenant’s Proposal Notice
(defined below), a default is then continuing under this Lease, or the reputation, financial
responsibility or business of proposed assignee or subtenant is unacceptable to Landlord, in its
sole discretion, or if the intended use by the proposed assignee or subtenant is not compatible to
the Tenant’s Use of the Premises as defined in this Lease or if the proposed assignee or subtenant
is a present or former tenant of the Building. Tenant must request Landlord’s consent to such
assignment or sublease in writing at least thirty (30) days prior to the commencement date of the
proposed sublease or assignment, which written request (a “Proposal Notice”) must include:

	 	a.	 	the name and address of the proposed assignee or subtenant;

	 
	 	b.	 	the nature and character of the business of the proposed assignee or subtenant,

	 
	 	c.	 	reasonable financial information and references of the proposed assignee
or subtenant, and

	 
	 	d.	 	a copy of the proposed sublease or assignment agreement.

	 
	 	e.	 	Tenant shall also provide any additional information Landlord reasonably
requests regarding such proposed assignment or subletting.

For purposes of the foregoing prohibitions, a transfer at any one time or from time to time
of a controlling interest in Tenant (whether stock, partnership interest or other form of
ownership or control) by any person(s) or entity (ies) having an interest in ownership or control
of Tenant at the Date of Lease shall be deemed to be an assignment of this Lease. If Landlord
consents to the proposed assignment or subletting, the initial Tenant (and any guarantor of this
Lease) shall remain fully liable under this Lease. Any assignment, encumbrance, or sublease
without Landlord’s written consent shall be voidable by Landlord and, at Landlord’s election,
constitute an event of default hereunder. Neither the consent by Landlord to any assignment,
transfer, encumbrance or subletting nor the collection or acceptance by Landlord of rent from any
assignee, subtenant or occupant shall be construed as a waiver or release of the initial Tenant or
any Guarantor from the terms and conditions of this Lease or relieve Tenant or any subtenant,
assignee or other party from obtaining the consent in writing of Landlord to any further
assignment, transfer, encumbrance or subletting. Tenant hereby assigns to Landlord the rent and
other sums due from any subtenant, assignee or other occupant of the Premises and hereby
authorizes and directs each such subtenant, assignee or other occupant to pay such rent or other
sums directly to Landlord; provided, however, that until the occurrence of an event of default,
Tenant shall have the license to continue collecting such rent and other sums (provided any amount
paid
to Tenant in excess of the amount payable by Tenant under this Lease shall be paid to Landlord,
and shall constitute the property of Landlord for all purposes hereunder).

 

11

 

Notwithstanding subparagraph 20(a) to the contrary, in the event of a proposed assignment or
subletting, Landlord shall have the right, by notice to Tenant delivered within thirty (30) days
after Landlord’s receipt of Tenant’s Proposal Notice with all required attachments, to terminate
this Lease in the event of an assignment as to all of the Premises and, in the event of a sublease,
as to the subleased portion of the Premises only, and to require that all or part, as the case may
be, of the Premises be surrendered to Landlord for the balance of the Term. Tenant shall have the
right to void Landlord’s notice of termination, if, within fifteen (15) days of Tenant’s receipt of
such notice, Tenant provides notice to Landlord (“Tenant’s Rescission Notice”) that it rescinds its
request for Landlord’s consent to an assignment or subletting of this Lease, and Tenant shall
continue to operate in the Premises pursuant to the terms of this Lease.

19. Right of First Refusal. At any time that Landlord determines to lease or extend any
existing lease covering all or part of the 1st Floor of the building adjacent to
Tenant’s space as outlined in gray on Exhibit ‘A’, Landlord shall notify Tenant of the rent for
which Landlord is willing to lease said space or part thereof.

If Tenant, within thirty (30) days after receipt of Landlord’s written notice, indicates in
writing its agreement to lease said space, the additional space shall be included within the
Premises and leased to Tenant pursuant to the provisions of this Lease, including, without
limitation, the provisions relating to the rights and obligations of the parties with respect to
alterations. However, Rent payable under this Lease shall be increased by the amount of rent
attributable to the additional space that is leased by Tenant. The parties shall immediately
execute an amendment to this Lease to include the additional space in the premises. If Tenant does
not indicate in writing within thirty (30) days its agreement to lease the additional space,
Landlord thereafter shall have the right to lease or extend the Lease covering said space to a
third party.

20. Insurance.

A. Insurance to be Procured by Tenant. Tenant, at Tenant’s sole cost and expense,
shall obtain and maintain in effect at all times during the Term, policies providing for primary
insurance coverage of the following types: General Liability Insurance, and Tenant’s Worker’s
Compensation Insurance. Tenant’s General Liability Insurance shall be in the minimum amount of
$1,000,000 per occurrence and $2,000,000 in aggregate. The terms of all insurance policies
required to be maintained by Tenant shall be commercially reasonable, and shall comply with
Landlord’s requirements for the provisions of such policies, including, without limitation,
requirements regarding scope of coverage, limits of coverage, terms and conditions of coverage,
qualification of carriers, named insureds,
notice of cancellation provisions and waiver of subrogation rights.

 

12

 

B. General Provisions. Neither the issuance of any insurance policy required
hereunder, nor the minimum limits established by Landlord with respect to Tenant’s insurance
coverage, shall be deemed to limit or restrict in any way Tenant’s liability arising under or out
of this Lease. Tenant shall deliver to Landlord upon request a duplicate original or certified copy
of each insurance policy required by Landlord, together with evidence of payment of all applicable
premiums. Tenant’s insurance shall specifically provide that unless Landlord has been given thirty
(30) days prior written notice, such insurance policy shall not be canceled and shall remain in
full force and effect. Tenant shall not do or permit to be done any act or thing in or upon the
premises which shall increase the rate or rates of any insurance referred to herein above. If by
reason of failure of Tenant to comply with this provision, the rate or rates of any insurance
coverage referred to above shall at any time be higher than it otherwise would be, and if Landlord
is required based on the usage of Tenant to obtain and maintain any such insurance coverage, then
Tenant shall reimburse Landlord on demand as Additional Rent for such increased premium(s).

C. Insurance covering the Building shall be obtained by Landlord. Upon request, said policy
shall be available for review by Tenant. Landlord also agrees to provide to Tenant, upon request,
any changes to the policy.

21. Tenant’s Compliance. Tenant and Tenant’s agents, employees and contractors shall at
all times abide by and observe the Rules and Regulations, Attachment ‘B’ and any amendments thereto
that may be promulgated from time to time by Landlord for the operation and maintenance of the
Building, the Common Area and the Premises, and the Rules and Regulations shall be deemed to be
covenants of the Lease to be performed and/or observed by Tenant. Nothing contained in this Lease
shall be construed to impose upon Landlord any duty or obligation to enforce the Rules and
Regulations, or the terms or provisions contained in any other lease, against any other tenant of
the Building. Landlord shall not be liable to Tenant for any violation by any party of the Rules
and Regulations or the terms of any other Building lease. If there is any inconsistency between
this Lease and the Rules and Regulations, this Lease shall govern. Landlord reserves the right to
amend and modify the Rules and Regulations as it deems necessary allowing adequate notice to tenant
and reasonable period for Tenant to comply.

 

13

 

22. Defaults. The following shall constitute “Defaults” by Tenant under the Lease:

A. Subject to the terms of the Bankruptcy Code (as hereinafter defined), if the Tenant, or
any guarantor of Tenant’s obligations hereunder, or any permitted sublessee or assignee, is in
financial difficulties as evidenced by any of the following: (1) its admitting in writing its
inability to pay its debts generally as they become due; (2) its filing a petition in bankruptcy
or for
reorganization or for the adoption of an arrangement under the Bankruptcy Code or an answer or
other pleading admitting the material allegations of such a petition or seeking, consenting to or
acquiescing in the relief provided for under the Bankruptcy Code; (3) its making an assignment of
all or a substantial part of its property for the benefit of its creditors; (4) its seeking or
consenting to or acquiescing in the appointment of a receiver or trustee for all or a substantial
part of its property or of the Premises; (5) its being adjudicated a bankrupt or insolvent; or (6)
the entry of a court order without its consent, which order shall not be vacated, set aside or
stayed within thirty (30) days from the date of entry, appointing a receiver or trustee for all or
a substantial part of its property or approving a petition filed against it for the effecting of an
arrangement in bankruptcy or for a reorganization pursuant to the Bankruptcy Code or for any other
judicial modification or alteration of the rights of creditors. For purposes hereof, the term
“Bankruptcy Code” shall mean Title 11 of the United States Bankruptcy Code relating to Bankruptcy,
as amended, or any other similar federal or state statute;

B. Tenant refuses to take possession of the Premises within five (5) days after the
Commencement Date;

C. Tenant vacates or abandons the Premises and permits the same to remain unoccupied and
unattended, or removes or manifests an intent to remove, not in the
ordinary course of business,
Tenant’s goods or property out of the Premises;

D. Any execution, levy, attachment or other process of law which shall occur upon Tenant’s
goods, fixtures or interests in the Premises, provided that it threatens Tenant’s ability to pay
its rent;

E. Tenant violates the Lease by making an unpermitted assignment, transfer or sublease;

F. Tenant fails to pay any installment of rent when the same shall become due and payable, and
such failure shall continue for five (5) days. Said default may be cured if Tenants pays within
five (5) days of service of a notice to pay or quit;

G. Tenant permits to be done anything which creates a lien upon the leasehold or the Premises
and fails to discharge or bond such lien as required by the Lease;

H. Tenant fails to maintain in force all policies of insurance required by this Lease;

I. Tenant fails to perform any material non-monetary obligation under this Lease two
or more times within any twelve (12) month period, notwithstanding any subsequent cure of such
failure as provided in this paragraph;

 

14

 

J. Tenant fails to provide Landlord with any required estoppel certificates within the time
periods referenced in the Lease; or

K. Tenant fails to perform or observe any material term of this Lease (including those
specifically herein referred to with the exception of C and F) on the part of Tenant to be
performed or observed. Tenant shall have ten (10) days after written notice from Landlord to cure
such default.

23. Remedies.

A. Landlord shall have the right, by written notice to Tenant, to declare this Lease
terminated and the Lease Term ended, in which event Tenant shall vacate and surrender the Premises.

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

C. Landlord may exercise its rights under paragraph 22(B) above with or without terminating
the Lease, and in no event shall any such exercise be construed as an election to terminate this
Lease or operate to release Tenant from any of its obligations for the remainder of the Lease Term,
or give rise to any claim for trespass.

D. If Landlord exercises its right under paragraph 22(B) above, Landlord may remove all
persons from the Premises, and Landlord may treat all property as abandoned and dispose of same in
accordance with the laws of the Commonwealth of Virginia.

E. If Landlord exercises its rights under paragraph 22(B) above and elects not to
terminate the Lease, it may from time to time, make such alterations and repairs as necessary in
order to re-let the Premises, and thereafter Landlord agrees to exercise commercially reasonable
efforts to re-let the Premises or any part thereof for such rent and upon such terms and conditions
as Landlord may determine advisable in its sole discretion. All rentals and other sums received by
Landlord from re-letting shall be applied, first, to the payment of any related costs and expenses;
second, to the payment of any indebtedness other than rent due hereunder from Tenant to Landlord;
third, to the payment of rent due and unpaid hereunder; and the residue, if any, shall be applied
in payment of the current month’s rent. If such rentals and other sums are less than the amounts
due pursuant to the foregoing schedule for application of proceeds, Tenant shall pay such
deficiency to Landlord monthly; if such rentals and other sums shall be more, Tenant shall have no
right to, and shall receive no credit for, the excess. Landlord shall be deemed to have used
commercially reasonable efforts to re-let the Premises so long as Landlord’s efforts to re-let are
consistent with Landlord’s efforts to let any other vacant space in the Building.

 

15

 

F. Any damage or loss of rent sustained by Landlord may be recovered at the time of the
re-letting or termination, in a single
action or in separate actions, from time to time, as said loss of rents or damages shall accrue, or
in a single proceeding deferred until the expiration of the Lease Term (in which event Tenant
hereby agrees that the cause of action shall not be deemed to have accrued until the date of
expiration of said Lease Term).

G. In addition to the other remedies provided in this Lease, and anything contained herein to
the contrary notwithstanding, Landlord shall (i) be entitled to restraint by injunction of any
violation of this Lease, and (ii) have a right of distraint for rent and a lien on all of Tenant’s
furniture, trade fixtures and equipment in the Premises, as security for rent.

H. TENANT AND LANDLORD EACH HEREBY WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY MATTER ARISING OUT
OF OR IN ANY WAY CONNECTED WITH THIS LEASE.

I. Landlord shall have the right, at its option, immediately and without notice to cure a
default by Tenant for the account and at the expense of Tenant. Tenant agrees to pay, with
interest at the legal rate of three (3) points over the Prime Interest Rate as published in the
Wall Street Journal or its successor from time to time, on demand, to Landlord the amount
so incurred by Landlord in connection with such default.

J. With respect to the rights and remedies and waivers herein, (i) such rights and remedies
shall be in addition to any other right and remedy now or hereafter available at law or in equity;
(ii) all such rights and remedies shall be cumulative and not exclusive of each other; (iii) such
rights and remedies may be exercised at such times, in such order, to such extent, and multiple
times without regard to whether the exercise of one right or remedy precedes, concurs with or
succeeds the exercise of another; and (iv) no waiver of a Default shall be effective unless
acknowledged in writing signed by Landlord.

24. Surrender.

A. Upon termination of this Lease, Tenant shall surrender the Premises and all fixtures and
equipment of Landlord therein, summarized in Exhibit ‘G’ — Landlord’s Fixtures & Equipment, in
good, clean and operating condition, in the same condition as when received, excepting ordinary
wear and tear. Tenant shall deliver all keys to the Premises to Landlord within twenty-four (24)
hours after vacating.

B. All leasehold improvements, alterations and other physical additions made to the Premises,
whether by Tenant or Landlord, shall be Landlord’s property and shall not be removed from the
Premises. Notwithstanding the foregoing, upon the expiration or earlier termination of this
Lease, Tenant shall, at Tenant’s expense, remove all items which are not fixtures, including,
without limitation, improvements, furnishings and equipment which were added to the Premises after
the execution of this Lease. In addition, Tenant
shall, at Tenant’s expense, remove from the Premises such other items as Landlord so directs in
writing.

 

16

 

25. Holding Over. If Tenant shall hold possession of the Premises after the expiration or
sooner termination of the Term, Tenant shall be treated as a month-to-month tenant and shall be
obligated to pay rent at the monthly rate during the last year of the term plus five percent (5%).

26. Destruction. If the Premises shall be damaged or destroyed by fire or other casualty
not resulting from the negligence of Tenant or Tenant’s employees, agents or invitees, and as a
result thereof shall be untenable as reasonably determined by Landlord, Basic Rent shall be
suspended until the Premises shall have been restored to a tenantable condition; provided, however,
that Landlord may notify Tenant that the Premises will not be repaired, in which event this Lease
shall terminate and neither party shall have any further liability to
the other. If, however, such
damage or destruction does not render the Premises untenable as reasonably determined by Landlord,
Landlord shall repair the same or cause the same to be repaired to the extent of insurance proceeds
from Tenant, as applicable. If such damage is caused by Tenant, Tenant’s employees, agents or
invitees, then the full amount of rent shall continue to be due, whether or not the Premises can be
or are occupied and all such damage shall be repaired at the expense of Tenant. Tenant shall
promptly reimburse Landlord for all expenses incurred by Landlord for repairs to the Premises for
which Tenant is responsible hereunder.

27. Condemnation. If the Premises or any part thereof (other than common elements, the
taking of which does not prevent continued occupancy of the Premises) is taken by any authority
exercising the power of eminent domain and Tenant is unable to conduct Tenant’s business in the
remainder of the Premises, as reasonably determined by Landlord, this Lease shall terminate as of
the date of possession by the condemner. In the event the Lease is not terminated pursuant to this
paragraph, then the Lease shall remain in full force and effect as to the remainder of the Premises
and the Basic Rent shall be pro-rated based on the remaining square footage of the Premises.

28. Subordination. This Lease is and shall remain subject and subordinate to all
mortgages, deeds of trust and other matters of record now or hereafter affecting the Premises.
Although the subordination provisions of this section shall be deemed automatic, Tenant shall
within seven (7) days after demand by Landlord execute any and all instruments requested by
Landlord to evidence such subordination, and upon Tenant’s failure to do so, Tenant hereby
irrevocably appoints Landlord as Tenant’s attorney-in-fact to execute such instruments for and on
behalf of Tenant. Any mortgagee or lessor of Landlord shall have the right at any time to
subordinate any deed of trust or mortgage or underlying lease to this Lease, or to any of the
provisions hereof, on such terms and subject to such conditions as
such mortgagee or lessor of Landlord may consider appropriate in its discretion.

 

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29. Agency. If Landlord appoints an agent to manage the Premises and collect the rent due
under this Lease, Landlord may authorize the agent to act for Landlord under the terms of this
Lease and Tenant shall in all cases comply with the reasonable exercise by the agent of any and all
of Landlord’s rights under this Lease.

30. Notice. Any notice pursuant to this Lease shall be in writing, mailed as registered or
certified United States mail, postage prepaid, or hand delivered or sent by overnight express
courier (with signed receipts) addressed as set forth hereinabove (or to the last address
designated by such party in writing to the other). Notices shall be deemed conclusively to have
been given three (3) business days after the postmark date, or the date of personal delivery, or
on the business day after delivery by overnight express courier, except notice of change of
address which shall only be deemed given upon actual receipt.

31. Brokerage. Each of the parties hereto represents and warrants that, other than the
brokerage commission(s) payable by Landlord to The Wiley Companies
(Carter Wiley) and CRES, Inc.
(Bill Chipman) pursuant to separate agreements, there are no other brokerage commissions or
finders’ fees of any kind due in connection with this Lease, and each of the parties hereto shall
indemnify the other against, and hold it harmless from, any and all liabilities, damages, costs,
claims and obligations arising from any such claim (including, without limitation, the cost of
reasonable attorneys’ fees in connection therewith).

32. Recording. Neither this Lease nor any memorandum hereof may be recorded among the land
records of the jurisdiction in which the Premises is located.

33. Assignment by Landlord. The term “Landlord”, shall be limited to mean and include only
the owner or owners, at the time in question, of the fee title to the Premises. Landlord may
transfer its interest in the Lease or the Premises without the consent of Tenant. At any
time, before or after any transfer of Landlord’s interest in the Premises, Tenant shall, upon
request of such transferee (“Successor Landlord”), automatically attorn to and become the Tenant
(or if the Premises have been validly subleased, the subtenant) of the Successor Landlord, without
change in the terms or other provisions of this Lease (or, in the case of a permitted sublease,
without change in this Lease or in the instrument setting forth the terms of such sublease) as
modified. This agreement of Tenant to attorn to a Successor Landlord shall survive any
foreclosure sale, trustee’s sale, conveyance in lieu thereof or termination of any underlying
lease. Tenant shall upon demand at any time, before or after any such foreclosure or termination,
execute, acknowledge and deliver to the
Successor Landlord any written instruments evidencing such attornment as such Successor Landlord
may reasonably require.

 

18

 

34. Governing Law and Attorney’ Fees. (i) This Lease shall be governed by
and construed under the laws of the Commonwealth of Virginia, without reference to its conflicts of
laws principles. Tenant hereby consents to jurisdiction and venue in the General District or
Circuit Court for Fauquier County, Virginia, or in any other court in the Commonwealth of Virginia
selected by Landlord if any action or suit is brought relating to this Lease. (ii) Should Tenant
fail to comply with any provision of this Lease and it becomes necessary for Landlord to employ
legal counsel to enforce, Tenant agrees to pay all associated Landlord’s attorneys’ fees and court
costs reasonably incurred.

35. Time of Essence. TIME IS OF THE ESSENCE IN THIS LEASE.

36. Estoppel Certificates. Tenant shall, from time to time, within ten (10) days after
request from Landlord, execute an estoppel certificate in the form attached hereto as Exhibit C.
In the event that Tenant fails to provide Landlord with the estoppel certificate as described and
within the time period provided herein above, Landlord is hereby appointed Tenant’s
attorney-in-fact for the purpose of executing such accurate estoppel certificate and delivering the
same to any mortgagee, lessor or prospective purchaser of Landlord, which appointment is coupled
with an interest and is therefore irrevocable.

37. Authority. Each individual executing this Lease on behalf of Landlord and Tenant
represents and warrants that he or she is duly authorized to execute and deliver this Lease on
behalf of Landlord or Tenant and that this Lease is binding upon Landlord and Tenant in accordance
with its terms.

38. Survival. Tenant’s obligations contained in this Lease shall survive the termination
or expiration of the Lease.

39. Hazardous Materials.

A. Environmental Requirements. Tenant’s use and occupancy of the Premises shall at
all times be in strict compliance with any and all federal, state and local statutes, laws, rules,
regulations, orders, ordinances and standards, as they may now or hereafter exist, relating in any
way to the protection of the environment, including, without limitation, the Comprehensive
Environmental Response, Compensation and Liability Act, as amended 42 U.S.C. Sections 9601, et
seq. (“CERCLA”), the Resource Conservation and Recovery Act, as amended, 42 U.S.C. Sections 9601,
et seq. (“RCRA”), the Toxic Substances Control Act, as amended, 15 U.S.C. Sections 2601 et seq.,
the Clean Water Act, as amended, 33 U.S.C. Sections 1251, et seq., the Clean Air Act, as amended,
42. U.S.C. Sections 7401, et seq., and analogous state statutes (collectively, “Environmental
Statutes”).

 

19

 

B. Indemnification. Tenant, at all times, shall indemnify, defend and hold harmless
Landlord against and from any and all claims, liens, suits, actions, debts, damages, costs, losses,
liabilities, obligations, judgments, and expenses (including, without limitation, court costs and
attorneys’ fees), of any nature whatsoever, arising from or relating to (i) compliance with any
Federal, state or local environmental statutes including, without limitation, RCRA and CERCLA, as
amended; or (ii) the presence of any Hazardous Substance (as hereinafter defined) affecting the
Premises or surrounding areas. As used herein, the term “Hazardous Substance” shall mean any
material that is or contains “hazardous substances” as defined pursuant to CERCLA or the Virginia
hazardous waste management regulations or “petroleum” as defined pursuant to RCRA or other material
or substance that requires special handling by Federal, state or local law, or industry practice,
without regard to the quantity or location of such material. The term Hazardous Substances shall
include building materials and building components including, without limitation, asbestos
contained in or comprising building materials or building components.

40. Miscellaneous. The conditions and agreements contained herein to be performed by the
respective parties, are binding on, and may be legally enforced by, the parties, their
heirs, executors, administrators, successors and assigns, respectively. The captions and
headings herein are for convenience of reference only and in no way define or limit the scope or
content of this Lease or in any way affect its provisions. This Lease embodies the final and
entire agreement and understanding between the parties, supersedes all prior negotiations,
agreements and understandings, and neither Landlord or Tenant nor their agents shall be bound by
any terms, conditions, statements, warranties, or representations, oral or written, not herein
contained. Any provision of this Lease may be modified, waived or discharged only by an instrument
in writing signed by the party against which enforcement of such modification, waiver or discharge
is sought. Feminine or neuter pronouns shall be substituted for those of the masculine form, and
the plural shall be substituted for the singular number in any place herein in which the context
may require such substitution. The provisions of this Lease are severable and the invalidity or
unenforceability of any provision of this Lease shall not affect or impair any other provision.

41. Counterparts. This Lease may be executed in any number of counterparts, each of which
shall be an original but all of which shall together constitute one and the same instrument.

 

20

 

IN WITNESS WHEREOF, Landlord and Tenant have set their hands and seals hereunto or have
caused this Lease to be executed by duly authorized officials thereof as of the day and year first
set forth hereinabove.

	 	 	 	 	 
	 	LANDLORD: CKP ONE, LLC

 	 
	 	By:  	Hayvin Ventures, LLC
 	 
	 	 	Managing Member 	 
	 	 	 	 
	 	By:  	/s/ James A. Carson, Jr.	(SEAL)
	 	 	James A. Carson, Jr. 	 
	 	 	Sole Member 	 

	 	 	 
	Address:

	 	410 Rosedale Court, Suite 200
	 

	 	Warrenton, VA 20186

Commonwealth of Virginia

County of Fauquier

The foregoing instrument was acknowledged before me this 1 day
of December, 2010 by JAMES A. CARSON, JR.

	 	 	 	 	 
	LORI A. BLEVINS
	 	 	 	 
	NOTARY ID #137263

	 	/s/ Lori A. Blevins
 

	 	 
	NOTARY PUBLIC

	 	NOTARY PUBLIC	 	 
	COMMONWEALTH OF VIRGINIA

	 	My Comm. exp: 01/31/12	 	 

	 	 	 	 	 
	 	TENANT: Clean Wind Energy, Inc.

 	 
	 	By:  	/s/ Stephen Sadle C.O.O.
 	 
	 	 	Signature 	 
	 
	 	 	STEPHEN SADLE C.O.O.	 
	 	 	Printed Name & Title 	 

	 	 	 
	Address:

	 	1997 Annapolis Exchange Blvd., Suite 300
	 

	 	Annapolis, Maryland 21401

Commonwealth of Virginia

County of Fauquier

The foregoing instrument was acknowledged before me this 1 day of
December, 2010 by
STEPHEN SADLE.

	 	 	 	 	 
	LORI A. BLEVINS
	 	 	 	 
	NOTARY ID #137263

	 	/s/ Lori A. Blevins
 

	 	 
	NOTARY PUBLIC

	 	Notary Public	 	 
	COMMONWEALTH OF VIRGINIA

	 	My Comm. exp: 01/31/12	 	 

 

21

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