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EXHIBIT 10.15    
    

 
 

GUARANTY AGREEMENT    
    

        THIS GUARANTY AGREEMENT (as amended, restated, supplemented or otherwise modified, this "Guaranty"), dated as of
June 12, 2002 is made by DAVID J. TEECE, an individual (the "Guarantor"), in favor of THOMA CRESSEY FUND VII, L.P., a Delaware limited
partnership ("TCEP). 

STATEMENT OF PURPOSE  

        Pursuant to the terms of the Credit Agreement dated as of September 29, 2000 (as amended by the First Amendment and Consent Agreement dated as of
September 20, 2001, the Second Amendment dated as of March 1, 2002, the Third Amendment dated as of the date hereof (the "Third
Amendment") and as may be further amended, restated, supplemented or otherwise modified from time to time, the "Credit
Agreement"), by and among LECG, LLC, a California limited liability company (the "Borrower"), LECG Holding Company, LLC, a
California limited liability company (the "Company"), Wachovia Bank, National Association (formerly known as First Union National Bank), as
Administrative Agent (the "Administrative Agent"), for the ratable benefit of itself and the financial institutions (the
"Lenders") from time to time parties to the Credit Agreement and U.S. Bank National Association, as Documentation Agent, the Lenders have extended
certain credit facilities to the Borrower as more specifically described in the Credit Agreement. In addition, TCEP, as an inducement to the Lenders, has entered into that certain Guaranty Agreement
dated as of June 12, 2002 (the "TCEP Guaranty") in favor of the Administrative Agent, for the ratable benefit of itself and the Lenders
guaranteeing repayment of certain Loans made by the Lenders to the Borrower. 

        The
Borrower is a wholly-owned subsidiary of the Company. The Guarantor owns a substantial share of the outstanding member interests in the Company, and all Extensions of Credit under
the Credit Agreement to the Borrower and the benefit provided by the TCEP Guaranty will inure, directly or indirectly, to the benefit of the Guarantor. 

        In
connection with the transactions contemplated by the Third Amendment and a letter agreement dated June 12, 2002 between the Guarantor and TCEP (the
"Letter Agreement") and as a condition precedent to the transactions contemplated by the Letter Agreement, TCEP has requested that the Guarantor execute
and deliver this Guaranty, and the Guarantor has agreed to do so pursuant to the terms hereof. 

        NOW,
THEREFORE, in consideration of the premises and the mutual agreements set forth herein, and to induce TCEP to enter into the TCEP Guaranty, the Guarantor hereby agrees with TCEP as
follows: 

        SECTION
1.    Definitions.    Capitalized terms used and not otherwise defined in this Guaranty including the
preambles and recitals hereof, shall have the meanings ascribed to them in the Credit Agreement. For purposes of this Guaranty, the following terms shall have the indicated meanings (which terms shall
be equally applicable to both the singular and the plural forms of such terms): 

        "Credit Agreement Obligations" shall mean the "Obligations" as defined in the Credit Agreement. 

        "Obligations" shall mean all indebtedness, liabilities and obligations of TCEP to the Administrative Agent or the Lenders of every kind,
nature or description in connection with and with respect to the TCEP Guaranty and all liabilities of the Guarantor under this Guaranty, in each case whether due or to become due, and whether now
existing or hereafter arising or incurred up to a maximum amount of Two Million Five Hundred Thousand Dollars ($2,500,000.00). 

 

        SECTION
2.    Terms of The Guaranty.    

        (a)    Guaranty of Obligations of Guarantor.    The Guarantor hereby unconditionally guarantees to TCEP and its
permitted successors, endorsees, transferees and assigns, the prompt payment and performance of the obligations of the Borrower in connection with and with respect to the total principal amount of the
Subsequent Draw, whether primary or secondary (whether by way of endorsement or otherwise), whether now existing or hereafter arising, whether or not from time to time reduced or extinguished (except
by payment thereof) or hereafter increased or incurred, whether enforceable or unenforceable as against the Borrower or TCEP, whether or not discharged, stayed or otherwise affected by any
bankruptcy, insolvency or other similar law or proceeding, whether created directly with TCEP or acquired by TCEP through assignment or endorsement, whether matured or unmatured, whether joint or
several, as and when the same become due and payable (whether at maturity or earlier, by reason of acceleration, mandatory repayment or otherwise), in accordance with the terms of any such instruments
evidencing any such obligations, including all renewals, extensions or modifications thereof (all of the foregoing including the Obligations, being hereinafter collectively referred to as the
"Guarantor Obligations"). 

        (b)    Bankruptcy Limitations on Guarantor.    Notwithstanding anything to the contrary contained in paragraph
(a) above, it is the intention of the Guarantor and TCEP that, in any proceeding involving the bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution or
insolvency or any similar proceeding with respect to the Guarantor or his assets, the amount of the Guarantor's obligations with respect to the Guarantor Obligations shall be in, but not in excess of,
the maximum amount thereof not subject to avoidance or recovery by operation of applicable law governing bankruptcy, reorganization, arrangement, adjustment of debts, relief of debtors, dissolution,
insolvency, fraudulent transfers or conveyances or other similar laws (including, without limitation, 11 U.S.C. §547, §548, §550 and other "avoidance" provisions of
Title 11 of the United States Code) applicable in any such proceeding to the Guarantor and this Guaranty (collectively, "Applicable Insolvency Laws").
To that end, but only in the event and to the extent that the Guarantor's obligations with respect to the Guarantor Obligations or any payment made pursuant to the Guarantor Obligations would, but for
the operation of the first sentence of this subsection (b), be subject to avoidance or recovery in any such proceeding under Applicable Insolvency Laws, the amount of the Guarantor's obligations with
respect to the Guarantor Obligations shall be limited to the largest amount which, after giving effect thereto, would not, under Applicable Insolvency Laws, render the Guarantor's obligations with
respect to the Guarantor Obligations unenforceable or avoidable or otherwise subject to recovery under Applicable Insolvency Laws. To the extent any payment actually made pursuant to the Guarantor
Obligations exceeds the limitation of the first sentence of this subsection (b) and is otherwise subject to avoidance and recovery in any such proceeding under Applicable Insolvency Laws, the
amount subject to avoidance shall in all events be limited to the amount by which such actual payment exceeds such limitation and the Guarantor Obligations as limited by the first sentence of this
subsection (b) shall in all events remain in full force and effect and be fully enforceable against the Guarantor. The first sentence of this subsection (b) is intended solely to
preserve the rights of TCEP hereunder against the Guarantor in such proceeding to the maximum extent permitted by Applicable Insolvency Laws and neither the Guarantor, the Borrower, any other
guarantor nor any other Person shall have any right or claim under such sentence that would not otherwise be available under Applicable Insolvency Laws in such proceeding. 

        SECTION
3.    Nature of Guaranty.    The Guarantor agrees that this Guaranty is a continuing, unconditional guaranty
of payment and performance and not of collection, and that his obligations under this Guaranty shall be primary, absolute and unconditional, irrespective of, and unaffected by: 

        (a)   the
genuineness, validity, regularity, enforceability or any future amendment of, or change in, the TCEP Guaranty, the Credit Agreement or any other Loan Document or any
other 

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agreement,
document or instrument to which the Parent, the Borrower or any Subsidiary thereof is or may become a party; 

        (b)   the
absence of any action to enforce this Guaranty, the TCEP Guaranty, the Credit Agreement, any Term B Note or any other Loan Document or the waiver or consent by TCEP,
the Administrative Agent or any Lender with respect to any of the provisions of this Guaranty, the TCEP Guaranty, the Credit Agreement or any other Loan Document; 

        (c)   the
existence, value or condition of, or failure to perfect its Lien against, any security for or other guaranty of the Guarantor Obligations or any action, or the
absence of any action, by TCEP, the Administrative Agent or any Lender in respect of such security or guaranty (including, without limitation, the release of any such security or guaranty); 

        (d)   any
structural change in, restructuring of or other similar change of the Parent, the Borrower or any of its Subsidiaries; or 

        (e)   any
other action or circumstances which might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor; 

it
being agreed by the Guarantor that, subject to the first sentence in Section 2(b) hereof, his obligations under this Guaranty shall not be
discharged until the final indefeasible payment and performance, in full, of the Guarantor Obligations and the termination of the TCEP Guaranty. To the extent permitted by law, the Guarantor expressly
waives all rights he may now or in the future have under any statute, or at law or in equity, or otherwise, to compel TCEP to proceed in respect of the Guarantor Obligations against the Borrower or
any other party or against any security for or other guaranty of the payment and performance of the Guarantor Obligations before proceeding against, or as a condition to proceeding against, the
Guarantor. To the extent permitted by law, the Guarantor further expressly waives and agrees not to assert or take advantage of any defense based upon the failure of TCEP to commence an action in
respect of the Guarantor Obligations against the Borrower, the Guarantor, any other guarantor or any other party or any security for the payment and performance of the Guarantor Obligations. The
Guarantor agrees that any notice or directive given at any time to TCEP which is inconsistent with the waivers in the preceding two sentences shall be null and void and may be ignored by TCEP, and, in
addition, may not be pleaded or introduced as evidence in any litigation relating to this Guaranty for the reason that such pleading or introduction would be at variance with the written terms of this
Guaranty, unless TCEP has specifically agreed otherwise in writing. The foregoing waivers are of the essence of the transaction contemplated by the TCEP Guaranty and the Letter Agreement
and, but for this Guaranty and such waivers, TCEP would decline to enter into the TCEP Guaranty and the Letter Agreement. 

        SECTION
4.    Demand by TCEP.    In addition to the terms set forth in Section
3 hereof, and in no manner imposing any limitation on such terms, if all or any portion of the then outstanding Guarantor Obligations under the TCEP Guaranty are declared to be
immediately due and payable, then the Guarantor shall, upon demand in writing therefor by TCEP to the Guarantor, pay all or such portion of the outstanding Guarantor Obligations then declared due and
payable. Payment by the Guarantor shall be made to TCEP within five (5) Business Days of the due date of such payment, in immediately available Dollars to an account designated by TCEP or at
the address referenced herein for the giving of notice to TCEP or at any other address that may be specified in writing from time to time by TCEP. 

        SECTION
5.    Waivers.    In addition to the waivers contained in  Section 3 hereof, the Guarantor, to the extent
permitted by law, waives and agrees that he shall not at any time insist upon, plead or in any
manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension, marshalling of assets or redemption laws, or exemption, whether now or at any time hereafter in
force, which may delay, prevent or otherwise affect the performance by the Guarantor of his obligations under, or the enforcement by TCEP of, this Guaranty. The Guarantor further hereby 

3

 

waives,
to the extent permitted by Applicable Laws, diligence, presentment, demand, protest and notice (except as specifically required herein) of whatever kind or nature with respect to any of the
Guarantor Obligations and waives, to the extent permitted by Applicable Laws, the benefit of all provisions of law which are or might be in conflict with the terms of this Guaranty. The Guarantor
represents, warrants and agrees that his obligations under this Guaranty are not and shall not be subject to any counterclaims, offsets or defenses of any kind (except the defense of payment in full)
against TCEP, the Administrative Agent, the Lenders or the Borrower whether now existing or which may arise in the future. 

        SECTION
6.    Benefits of Guaranty.    The provisions of this Guaranty are for the benefit of TCEP and its permitted
successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between the Borrower and TCEP, the obligations of the Borrower under the Convertible Promissory Note from
the Borrower to TCEP in substantially the same form as set forth in Exhibit C to the Letter Agreement (the "Promissory Note"). In the event all
or any part of the Guarantor Obligations are transferred, endorsed or assigned by TCEP to any Person or Persons as permitted under the Promissory Note, any reference to "TCEP" herein shall be deemed
to refer equally to such Person or Persons. 

        SECTION
7.    Modification of the TCEP Guaranty or the Promissory Note.    If TCEP shall at any time or from time to
time, with or without the consent of, or notice to, the Guarantor: 

        (a)   change
or extend the manner, place or terms of payment of, or renew or alter all or any portion of, the Guarantor Obligations; 

        (b)   take
any action under or in respect of the TCEP Guaranty or the Promissory Note in the exercise of any remedy, power or privilege contained therein or available to it at
law, in equity or otherwise, or waive or refrain from exercising any such remedies, powers or privileges; 

        (c)   amend
or modify, in any manner whatsoever, the TCEP Guaranty or the Promissory Note; 

        (d)   extend
or waive the time for performance by the Guarantor, any other guarantor, the Borrower or any other Person of, or compliance with, any term, covenant or agreement
on its part to be performed or observed under the TCEP Guaranty or the Promissory Note, or waive such performance or compliance or consent to a failure of, or departure from, such performance or
compliance; 

        (e)   take
and hold security or collateral for the payment of the Guarantor Obligations or sell, exchange, release, dispose of, or otherwise deal with, any property pledged,
mortgaged or conveyed, or in which TCEP has been granted a Lien, to secure any Debt of the Guarantor, any other guarantor or the Borrower to TCEP; 

        (f)    release
anyone who may be liable in any manner for the payment of any amounts owed by the Guarantor, any other guarantor or the Borrower to TCEP; 

        (g)   modify
or terminate the terms of any intercreditor or subordination agreement pursuant to which claims of other creditors of the Guarantor, any other guarantor or the
Borrower are subordinated to the claims of TCEP; or 

        (h)   apply
any sums by whomever paid or however realized to any Guarantor Obligations owing by the Guarantor, any other guarantor or the Borrower to TCEP in such manner as
TCEP shall determine in its reasonable discretion; 

then
TCEP shall not incur any liability to the Guarantor as a result thereof, and no such action shall impair or release the obligations of the Guarantor under this Guaranty. 

4

 

        SECTION
8.    Reinstatement.    The Guarantor agrees that, if any payment made by the Borrower or any other Person
applied to the Guarantor Obligations is at any time annulled, set aside, rescinded, invalidated, declared to be fraudulent or preferential or otherwise required to be refunded or repaid or the
proceeds of any collateral are required to be refunded by TCEP to the Borrower, its estate, trustee, receiver or any other party, including, without limitation, the Guarantor, under any Applicable Law
or equitable cause, then, to the extent of such payment or repayment, the Guarantor's liability hereunder (and any Lien securing such liability) shall be and remain in full force and effect, as fully
as if such payment had never been made, and, if prior thereto, this Guaranty shall have been canceled or surrendered (and if any Lien or collateral securing the Guarantor's liability hereunder shall
have been released or terminated by virtue of such cancellation or surrender), this Guaranty (and such Lien) shall be reinstated in full force and effect, and such prior cancellation or surrender
shall not diminish, release, discharge, impair or otherwise affect the obligations of the Guarantor in respect of the amount of such payment (or any Lien securing such obligation). 

        SECTION
9.    Representations and Warranties.    To induce TCEP to make the TCEP Guaranty, the Guarantor hereby
represents and warrants that: 

        (a)   the
Guarantor is an individual domiciled in the State of California and has the power and authority to own his properties and conduct the business in which he is
currently engaged; 

        (b)   the
Guarantor has the right, power and authority to execute, deliver and perform this Guaranty; and 

        (c)   this
Guaranty constitutes the legal, valid and binding obligation of the Guarantor enforceable in accordance with its terms, except as enforceability may be limited by
bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by the availability of equitable remedies. 

        SECTION
10.    Remedies.    Upon the occurrence and during the continuance of any Event of Default, TCEP may enforce
against the Guarantor his obligations and liabilities hereunder and exercise such other rights and remedies as may be available to TCEP hereunder, under the TCEP Guaranty or otherwise. 

        SECTION
11.    No Subrogation.    Notwithstanding any payment or payments by the Guarantor hereunder, or any set-off
or application of funds of the Guarantor by TCEP, or the receipt of any amounts by TCEP with respect to any of the Guarantor Obligations, the Guarantor shall not be entitled to be subrogated to any of
the rights of TCEP against the Borrower or any other guarantor or against any collateral security held by TCEP for the payment of the Guarantor Obligations nor shall the Guarantor seek any
reimbursement from the Borrower or any other guarantor in respect of payments made by the Guarantor in connection with the Guarantor Obligations, until all amounts owing TCEP on account of the
Guarantor Obligations are paid in full and the Promissory Note and the TCEP Guaranty are terminated. If any amount shall be paid to the Guarantor on account of such subrogation rights at any
time when all of the Guarantor Obligations shall not have been paid in full, such amount shall be held by the Guarantor in trust for TCEP, segregated from other funds of the Guarantor, and shall,
forthwith upon receipt by the Guarantor, be turned over to TCEP in the exact form received by the Guarantor (duly endorsed by the Guarantor to TCEP, if required) to be applied against the Guarantor
Obligations, whether matured or unmatured, or such other obligations arising under the TCEP Guaranty. 

        SECTION
12.    Expenses.    All costs and expenses (including reasonable attorneys' fees, legal expenses and court
costs) incurred by TCEP in enforcing or protecting their rights or remedies hereunder shall be part of the Guarantor Obligations and shall be payable by the Guarantor on demand and shall bear interest
(after as well as before judgment) until paid at the interest rate then applicable to Base Rate Loans under the Credit Agreement and shall be additional Guarantor 

5

 

Obligations
hereunder; provided, however, in no event will the aggregate Guarantor Obligations exceed $2,500,000.00. 

        SECTION
13.    Notices.    All notices or other communications required or permitted hereunder shall be in writing and
shall be deemed given or delivered when delivered personally or when sent by registered or certified mail or by private courier addressed as follows: 

If
to the Guarantor: 

David
J. Teece

c/o LECG, LLC

2000 Powell Street

Suite 600

Emeryville, CA 94608 

If
to TCEP: 

Thoma
Cressey Fund VII, L.P.

c/o Thoma Cressey Equity Partners

One Embarcadero Center

Suite 2930

San Francisco, CA 94111

Attention: Jeanne Plessinger 

with
a copy to 

Hogan &
Hartson L.L.P.

Columbia Square

555 Thirteenth Street, N.W.

Washington, D.C. 20004-1109

Attention: James A. Hutchinson 

or
to such other address as such party may indicate by a notice delivered to the other party hereto. 

        SECTION
14.    Successors and Assigns.    This Guaranty is for the benefit of TCEP and its permitted successors and
assigns. This Guaranty shall be binding on the Guarantor and his successors and assigns; provided that the Guarantor may not assign any of his rights or
obligations hereunder without the prior written consent of TCEP. 

        SECTION
15.    Amendments, Waivers and Consents.    No term, covenant, agreement or condition of this Guaranty may be
amended or waived, nor may any consent be given, except without the prior written consent of TCEP and the Guarantor (and their respective permitted successors and assigns, if any). 

        SECTION
16.    Powers Coupled with an Interest.    All authorizations and agencies herein contained with respect to
the Collateral are irrevocable and powers coupled with an interest. 

        SECTION
17.    Governing Law.    This Guaranty shall be governed by, construed and enforced in accordance with the
laws of the State of Delaware, without reference to the conflicts or choice of law principles thereof. 

        SECTION
18.    Consent to Jurisdiction.    The Guarantor hereby irrevocably consents to the personal jurisdiction of
the state and federal courts located in City and County of San Francisco, California, in any action, claim or other proceeding arising out of any dispute in connection with this Guaranty, any rights
or obligations hereunder, or the performance of such rights and obligations. The Guarantor hereby irrevocably consents to the service of a summons and complaint and other process in any action, claim
or proceeding brought by TCEP in connection with this Guaranty, any rights or 

6

 

obligations
hereunder, or the performance of such rights and obligations, on behalf of itself or its property, in the manner specified in Section 13
hereof. Nothing in this Section 18 shall affect the right of TCEP to serve legal process in any other manner permitted by Applicable Law or affect the
right of TCEP to bring any action or proceeding against the Guarantor or their properties in the courts of any other jurisdictions. 

        SECTION
19.    Waiver of Jury Trial; Preservation of Remedies.    

        (a)    WAIVER OF JURY TRIAL.    TCEP AND THE GUARANTOR HEREBY ACKNOWLEDGE THAT THEY HAVE IRREVOCABLY WAIVED THEIR
RESPECTIVE RIGHTS TO A JURY TRIAL WITH RESPECT TO ANY ACTION, CLAIM OR OTHER PROCEEDING ARISING OUT OF ANY DISPUTE IN CONNECTION WITH THIS GUARANTY, ANY RIGHTS OR OBLIGATIONS HEREUNDER, OR THE
PERFORMANCE OF SUCH RIGHTS AND OBLIGATIONS. 

        (b)    Preservation of Certain Remedies.    Notwithstanding anything to the contrary in the foregoing, the parties
hereto preserve, without diminution, certain remedies that such Persons may employ or exercise freely, either alone, in conjunction with or during any dispute, claim or controversy arising out of,
connected with or relating to this Guaranty (a "Dispute"). Each such Person shall have and hereby reserves the right to proceed in any court of proper
jurisdiction or by self help to exercise or prosecute the following remedies, as applicable: (i) all rights to foreclose against any real or personal property or other security by exercising a
power of sale granted in this Guaranty or under Applicable Law or by judicial foreclosure and sale, including a proceeding to confirm the sale, (ii) all rights of self help including peaceful
occupation of property and collection of rents, set off, and peaceful possession of property, (iii) obtaining provisional or ancillary remedies including injunctive relief, sequestration,
garnishment, attachment, appointment of receiver and in filing an involuntary bankruptcy proceeding, and (iv) when applicable, a judgment by confession of judgment. Preservation of these
remedies does not limit the power of an arbitrator to grant similar remedies that may be requested by a party in a Dispute. 

        (c)    Punitive Damages.    Each party agrees that it shall not have a remedy of punitive exemplary damages against
the other in any Dispute and hereby waives any right or claim to punitive or exemplary damages they have now or which may arise in the future in connection with any Dispute, whether the Dispute is
resolved by arbitration or judicially. 

        SECTION
20.    Severability.    If any provision hereof is invalid and unenforceable in any jurisdiction, then, to the
fullest extent permitted by law, (a) the other provisions hereof shall remain in full force and effect in such jurisdiction and shall be liberally construed in favor of the Administrative Agent
and the Lenders in order to carry out the intentions of the parties hereto as nearly as may be possible; and (b) the invalidity or unenforceability of any provisions hereof in any jurisdiction
shall not affect the validity or enforceability of such provision in any other jurisdiction. 

        SECTION
21.    Headings.    The various headings of this Guaranty are inserted for convenience only and shall not
affect the meaning or interpretation of this Guaranty or any provisions hereof. 

[Signature
Page Follows] 

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        IN
WITNESS WHEREOF, the Guarantor has executed and delivered this Guaranty as of the date first above written. 

	 	 	/s/ David J. Teece
 David J. Teece

8

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EXHIBIT 10.15

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Exhibit 10.16    
    

 
  Execution Version (03.19.01)    
    

 
  AGREEMENT    
    

        This Agreement is made and entered into on March 19, 2001 (the "Effective Date"), by and among LECG, LLC, a California limited liability company ("LECG"),
and PA Consulting Group, Inc., a New Jersey corporation (the "Company"), and PA Holdings Limited, a United Kingdom corporation on behalf of its subsidiaries, affiliates, predecessors and
successors (collectively, "PA Holdings"). The Company and PA Holdings are collectively referred to herein as "PA." 

 
 

RECITALS    
    

	A.
	The
individuals listed on Exhibit A to this Agreement (collectively, the "Senior Staff") have been providing services to PA as
senior staff in PA's environmental practice group (the "Environmental Practice").

	B.
	Each
of the Senior Staff is a party to an employment agreement with PA which contains various restrictions regarding non-solicitation and non-performance of
work for certain clients, and/or non-solicitation and non-hiring of certain individuals (each such employment agreement being referred to herein as a "PA Agreement").

	C.
	All
of the Senior Staff have resigned from PA in order to accept offers of employment from LECG and LECG wishes to employ the Senior Staff without the Senior Staff being bound by
certain surviving terms of their respective PA Agreements.

	D.
	PA
has agreed to waive certain of its rights under the respective PA Agreement for each of the Senior Staff in accordance with the terms of the form of Termination Agreement attached
hereto as Exhibit B and incorporated herein by this reference, subject to the terms and conditions of this Agreement.

	E.
	LECG
also wishes to employ those principals, consultants, analysts and administrative or support staff from the Environmental Practice listed on  Exhibit C, attached hereto and incorporated herein by
this reference (each, a "Practice Staff Member") and PA is willing to agree to LECG's
employment of the Practice Staff Members, subject to the terms and conditions of this Agreement. 

        NOW, THEREFORE, for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, LECG and PA agree as
follows: 

        1.     Acceptance of Resignations of Senior Staff. PA hereby accepts the resignations of the Senior Staff, subject to the terms
and conditions of the Termination Agreement executed by each such Senior Staff. All departures of the Senior Staff from PA must be completed on or before April 15, 2001. Except to the extent a
client directs PA in writing to release its original files (in which event PA will follow the directions of the client in that regard), PA agrees that the Senior Staff and any Practice Staff Members
who join LECG may make paper or electronic copies of (and thereafter remove such copies from PA) (i) all documents and information in whatever form obtained, produced, stored (e.g., hard copy,
microfilm, microfiche or computer files), with respect to those clients of the Environmental Practice who continue to utilize the services of the Senior Staff and Practice Staff Members after such
Senior Staff and Practice Staff Members join LECG and (ii) allocation models, insurance settlement methodologies, asbestos liability and projection models used or developed by the Environmental
Practice. Notwithstanding the foregoing, the Senior Staff and Practice Staff Members may not copy or remove the MIPAC program used by PA for internal administration and finance of client projects. 

        2.     Employment Discussions with Practice Staff Members. For the period commencing on the earlier of March 20, 2001 or
the date on which PA actually makes its announcement as provided in Section 5 below and ending on April 9, 2001 (the "Offer Period"), LECG will be free to approach any Practice Staff
Member in PA's Palo Alto and Los Angeles offices regarding possible employment with LECG and extend offers of employment. LECG will be free to contact Practice Staff Members in PA's 

 

Washington,
D.C. and Cambridge offices by telephone, with such initial telephone call having a duration of not more than one (1) hour, to discuss possible employment with LECG. After the
initial telephone call to Practice Staff Members in Washington, D.C. and Cambridge, LECG may respond to inquiries from such Practice Staff Members regarding possible employment in person, in writing
or by telephone, and may hire such Practice Staff Members, but LECG may not initiate contact independently (except to extend an offer of employment arising from the initial telephone call, if
appropriate). LECG may also offer employment to Practice Staff Members during the Offer Period, but such offer of employment must be accepted before the expiration of the Offer Period. The last day of
the Offer Period (April 9, 2001) is referred to herein as the "Final Acceptance Date". All departures of Practice Staff Members from PA pursuant to offers of employment from LECG under this
Section 2 must occur on or before April 15, 2001. It is the expectation of LECG and PA that substantially all of the Practice Staff Members in the Palo Alto and Los Angeles offices will
be interested in accepting offers to join LECG and, in accordance with Section 5(b) below, the Company and PA will expressly encourage such Practice Staff Members to do so. PA represents and
warrants that, prior to the earlier of March 21, 2001 or the date on which PA actually makes the announcement as provided in Section 5 below, neither PA nor any of its officers,
directors or employees will take any action of any kind to encourage the Practice Staff Members in the Palo Alto or Los Angeles office to remain with PA. 

        3.     Non-Solicitation of Employees and Client.

        3.1   For
a period of fifteen (15) months commencing on the Final Acceptance Date, neither LECG nor any of its affiliates may solicit for employment or hire, whether on
behalf of itself or another person or entity, any person employed by PA in the Environmental Practice (or its successor practice headed by Gary Liberson and Jamie Heller) as a senior staff, principal,
consultant or analyst as of the business day immediately following the Final Acceptance Date. PA represents and warrants that the persons meeting the definition of this Section 3.1
(i) are listed as Practice Staff Members on Exhibit C attached hereto or (ii) may be engaged after the Final Acceptance Date by PA
and will report directly to Gary Liberson and Jamie Heller. 

        3.2   For
a period commencing on the Effective Date and expiring on April 27, 2002, neither LECG nor any of its affiliates may hire, whether on behalf of itself or
another person or entity, any person employed by PA as a "partner" (including any Partner, Associate Partner, Senior Partner, Managing Partner or any other "partner" title used by PA) or "managing
consultant" in any practice group of PA.
Notwithstanding the foregoing, LECG may hire those two individuals who are managing consultants of PA with whom LECG has had discussions prior to the Effective Date and whose names have been reflected
in a writing delivered in trust to Folger Levin & Kahn, LLP on the Effective Date. 

        3.3   Notwithstanding
anything herein to the contrary, with respect to Firestone Tire & Rubber Company and Bridgestone Corporation (collectively, the "Firestone
Entities"), LECG hereby acknowledges and agrees, for itself and on behalf of its affiliates, that for a period equal to the shorter of either (i) the period during which John Butler or Daniel
Rubinfeld remains employed by LECG or (ii) one (1) year from the Effective Date (the "Firestone Restrictive Period"), LECG cannot undertake work for the Firestone Entities or their
outside counsel on any matter related to or arising from Firestone tire recalls, including (without limitation) matters relating to or arising from the existing work that PA is presently conducting
for Firestone Entities. However, as John Butler is presently working for the Firestone Entities on tire recall matters, and Daniel Rubinfeld is presently providing expert advice on matters related to
wrongful death class actions, then this work may continue. In addition, John Butler may accept additional Firestone Entities' work, for which he may be supported by former PA employees and LECG
employees below the "director" level, related to the tire recall matters if requested by the Firestone Entities or their outside counsel, provided that this work does not replace the work that PA is
presently or at that time undertaking for the Firestone Entities. 

2

 

        4.     Termination of Employment Agreements. On the Effective Date, PA and each Senior Staff will enter into a Termination
Agreement in the form attached hereto as Exhibit B and incorporated herein by this reference. On the later to occur of (i) the Effective
Date or (ii) PA's receipt of a written resignation letter from a Practice Staff Member, PA and each Practice Staff Member will enter into a Termination Agreement in the form attached hereto as
Exhibit B. 

        5.     Announcement to Environmental Practice. By March 20, 2001, PA will make a written announcement to all senior staff,
principals, consultants, analysts and employees working in the Environmental Practice (whether or not such persons are Senior Staff or Practice Staff Members) with the following agreed content: 

        (a)   PA
will announce that it has reached an agreement with LECG whereby, with PA's approval, a number of individuals in the Environmental Practice will leave PA and join
LECG. PA will identify the Senior Staff and Practice Staff Members who have already agreed to join LECG as of the Effective Date; 

        (b)   PA
will announce that, with respect to PA's Palo Alto and Los Angeles offices, LECG may contact the Practice Staff Members in those offices to discuss employment
opportunities with LECG, and that PA expressly encourages the Practice Staff Members in those offices to explore such opportunities; 

        (c)   PA
also will announce that, with respect to the Practice Staff Members in PA's other offices, LECG may contact those Practice Staff Members to explore employment
opportunities with LECG, but that PA wishes to retain their services. 

        (d)   PA
also will announce that any Practice Staff Members wishing to accept employment with LECG must do so before the Final Acceptance Date and must actually depart PA on
or before April 15, 2001. 

        (e)   PA
may, in its discretion, describe the contents of Section 3 above. 

        (f)    To
the extent that PA's announcement covering the items in this Section 5 is in writing, LECG will be permitted to review such written announcement prior to
dissemination thereof to confirm the announcement's consistency with the provisions of this Section 5, provided that such review will not unreasonably delay PA's announcement. 

        6.     Departure Payments. LECG will make the following payments to PA: 

        (a)   $1,000,000
payable on April 15, 2001; 

        (b)   $1,000,000
payable on December 31, 2001, such payment to be evidenced by a promissory note in the form attached hereto as Exhibit D  and incorporated herein by this reference; and 

        (c)   a
payment on June 30, 2002 equal to the sum of the amounts set forth on Exhibit C under the column
"Departure Payment" for those Practice Staff Members who accept employment with LECG prior to the Final Acceptance Date; provided, however, that if any of the Practice Staff Members listed on  Exhibit C who accept employment with LECG prior to the Final Acceptance Date rejoin PA as an employee or independent contractor within two
(2) years from the Effective Date, PA must promptly refund to LECG any Departure Payment paid by LECG for such Practice Staff Member. Within five (5) business days after the Final
Acceptance Date, PA and LECG will determine the aggregate Departure Payments to be made by LECG to PA and LECG will deliver to PA a promissory note substantially in the form of  Exhibit D attached
hereto (but including the repayment provision set forth in this Section 6(c)) payable in the amount of such aggregate
Departure Payments on June 30, 2002. Notwithstanding the foregoing, LECG will not be required to make a Departure Payment for any person who has been made an offer to join the Environmental
Practice at PA prior to the Effective Date but who has not accepted that offer as of 

3

 

the
Effective Date or who has not yet begun performing services for PA as of the Effective Date. LECG also will not be required to make a Departure Payment for each of Madeline Loh, Matthew Beving or
Ariella Rosenberg if s/he is not employed by LECG on April 15, 2002. 

        7.     Intentionally Omitted. 

        8.     Sublease of Palo Alto Office Space. LECG and PA will use commercially reasonable efforts to negotiate a sublease
arrangement with respect to PA's Palo Alto office on mutually agreeable terms. LECG expressly agrees that PA will have all contact with the landlord of the Palo Alto office prior to the execution of a
formal sublease and the acceptance thereof by the landlord. 

        9.     Survival of Obligations; Cooperation. All covenants and obligations contained in this Agreement shall survive the
consummation of the transactions contemplated by this Agreement. LECG and PA agree to cooperate in good faith in the transition of Senior Staff and Practice Staff Members from PA to LECG, as well as
the transition of client engagements from PA to LECG resulting from the departure of the Senior Staff. If LECG receives funds from clients of the Environmental Group that are properly attributable to
invoices issued by PA prior to the Effective Date or are properly attributable to work performed by Senior Staff or Practice Staff Members before such Senior Staff or Practice Staff Members began
performing services for LECG, LECG will promptly deliver and pay over such funds to PA. If PA receives funds from clients of the Environmental Group that are properly attributable to invoices issued
by LECG after the Effective Date or are properly attributable to work performed by Senior Staff or Practice Staff Members after such Senior Staff or Practice Staff Members began performing services
for LECG, PA will promptly deliver and pay over such funds to LECG. PA may deliver to all clients who wish to continue to use the services of Senior Staff or Practice Staff Members, after such Senior
Staff and Practice Staff Members join LECG, a letter notifying the client that the Senior Staff and Practice Staff Members have joined LECG; provided, however, that LECG may review and reasonably
approve the contents of such letter. 

        10.   Confidential Nature of Information. Each party agrees that it will treat in confidence this Agreement and all documents,
materials and other information which it may have obtained regarding the other party during the course of the negotiations leading to the preparation of this Agreement and other related documents. If
a party (the "Recipient") is requested or required (by oral questions, interrogatories, requests for information or documents, subpoena, civil investigative demand or similar process) to disclose the
confidential information of another party (the "Disclosing Party"), the Recipient must provide the Disclosing Party with prompt notice of such request(s) so the Disclosing Party may seek an
appropriate protective order or other appropriate remedy and/or waive compliance with the confidentiality provisions of this Agreement. In the event that such protective order or other remedy is not
obtained, or the Disclosing Party grants a waiver hereunder, the Recipient may furnish that portion (and only that portion) of the confidential information which it is legally compelled to disclose
and must exercise its reasonable efforts to obtain reliable assurance that confidential treatment will be accorded any confidential information so furnished. The obligation of each party to treat such
documents, materials and other information in confidence shall not apply to any information which (i) is or becomes available to such party from a source other than such party, (ii) is
or becomes available to the public other than as a result of disclosure by such party or its agents, (iii) is required to be disclosed under applicable law or judicial process, but only to the
extent it must be disclosed, or (iv) such party reasonably deems necessary to disclose to obtain any of the consents or approvals contemplated hereby. 

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        11.   Release. 

        11.1 PA,
on behalf of themselves and all of their respective parent, subsidiaries and affiliate entities worldwide (collectively, the "PA Releasors") and any person or
entity claiming through the PA Releasors (including, but not limited to, their respective predecessors, successors and assigns, and any current or former director, officer, employee or agent of each
of them), hereby release, forever discharge and agree not to sue LECG, LECG's parent, subsidiaries and affiliates and each of their respective past, present and future officers, directors, employees,
agents, attorneys, representatives, predecessors, successors and assigns (hereinafter collectively referred to as the "LECG Released Parties"), with respect to any and all claims, demands, causes of
action, orders, agreements, debts and liabilities, whether in law or in equity, and whether brought in a state, federal or local court, commission, department, agency or otherwise, which the PA
Releasors now have, have ever had, or may in the future have, whether known or unknown, against any of the LECG Released Parties for or related to anything occurring on or prior to the Effective Date,
including, without limiting the generality of the foregoing, any and all claims, demands, causes of action, orders, agreements, debts and liabilities which in any way result from, arise out of, or
relate to, whether by way of contract or otherwise, the termination of employment of the Senior Staff and the Practice Staff Members and their employment with LECG (all of the foregoing collectively
being referred to as the "Released Claims"). Notwithstanding anything to the contrary in this Section 11, the Released Claims do not include and nothing contained in this Section 11 will
apply to, or release any of the LECG Released Parties from a breach by LECG of any obligation of LECG under this Agreement. 

        11.2 The
PA Releasors also acknowledge that the PA Releasors are aware of and familiar with the provisions of California Civil Code Section 1542, which provides as
follows: 

        A
GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM MUST HAVE
MATERIALLY AFFECTED HIS SETTLEMENT WITH THE DEBTOR. Having reviewed this provision, the PA Releasors nevertheless hereby voluntarily waive any and all rights under this statutory provision with
respect to the Released Claims. 

        11.3 The
PA Releasors hereby irrevocably covenant to refrain from, directly or indirectly, asserting any Released Claim against the LECG Released Parties, or commencing,
instituting or causing to be commenced, any proceeding of any kind against any or all of the LECG Released Parties, based upon any Released Claim. 

        11.4 Without
in any way limiting any of the rights and remedies otherwise available to any LECG Released Party, the PA Releasors, jointly and severally, will indemnify and
hold harmless each LECG Released Party from and against any and all loss and expense whether or not involving third party claims, incurred by any LECG Released Party in connection with or arising from
the assertion against any LECG Released Party by or on behalf of the PA Releasors of any Released Claim. 

        11.5 Nothing
in this Agreement is intended to be, or will be construed as, an admission by the LECG Released Parties that any of them violated any law, interfered with any
right, breached any obligation or otherwise engaged in any improper or illegal conduct with respect to the PA Releasors or otherwise. 

5

 

        12.   Notices. All notices or other communications required or permitted hereunder shall be in writing and shall be deemed
given or delivered when delivered personally or when sent by registered or certified mail or by private courier addressed as follows: 

	LECG, LLC

2000 Powell Street

Suite 600

Emeryville, CA 94608

Attention: President	 	 
	

PA Consulting Group, Inc.

123 Buckingham Palace Road

London SW1W 9SR

Attention: Jeremy Asher	
 	

 

or
to such other address as such party may indicate by a notice delivered to the other party hereto. 

        13.   Free Competition. With the exception of Section 3 hereof, nothing in this Agreement is intended to prevent either
LECG or PA from freely engaging in competitive business activities in the consulting business, including, without limitation, environmental consulting and litigation support. 

        14.   Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their
successors and assigns. 

        15.   Entire Agreement; Amendments. This Agreement contains the entire understanding of the parties hereto with regard to the
subject matter contained herein or therein, and supersedes all prior agreements, understandings or letters of intent between or among any of the parties hereto. This Agreement may not be amended,
modified or supplemented except by a written instrument signed by an authorized representative of each of the parties hereto. 

        16.   Interpretation. Titles and headings to sections herein are inserted for convenience of reference only and are not
intended to be a part of or to affect the meaning or interpretation of this Agreement. The Exhibits referred to herein shall be construed with and as an integral part of this Agreement to the same
extent as if they were set forth verbatim herein. 

        17.   Waivers. Any term or provision of this Agreement may be waived, or the time for its performance may be extended, by the
party or parties entitled to the benefit thereof. Any such waiver shall be validly and sufficiently authorized for the purposes of this Agreement if, as to any party, it is authorized in writing by an
authorized representative of such party. The failure of any party hereto to enforce at any time any provision of this Agreement shall not be construed to be a waiver of such provision, nor in any way
to affect the validity of this Agreement or any part hereof or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held to
constitute a waiver of any other or subsequent breach. 

        18.   Expenses. Each party hereto will pay all costs and expenses incident to its negotiation and preparation of this Agreement
and to its performance and compliance with all agreements and conditions contained herein on its part to be performed or complied with, including the fees, expenses and disbursements of its counsel
and accountants. Notwithstanding the foregoing, in the event of any claim, action, litigation, arbitration or other formal or informal proceeding arising out of or relating to this Agreement, or
arising out of the enforcement of any right or remedy hereunder, the prevailing party in such claim, action, litigation or proceeding will be entitled to reimbursement from the other party for all
reasonable attorneys' fees, court costs, and costs of experts and investigation incurred in connection therewith, whether any such costs and fees are incurred before or during any trial or hearing or
upon appeal. 

6

 

        19.   Partial Invalidity. Wherever possible, each provision hereof shall be interpreted in such manner as to be effective and
valid under applicable law, but in case any one or more of the provisions contained herein shall, for any reason, be held to be invalid, illegal or unenforceable in any respect, such provision shall
be ineffective to the extent, but only to the extent, of such invalidity, illegality or unenforceability without invalidating the remainder of such invalid, illegal or unenforceable provision or
provisions or any other provisions hereof, unless such a construction would be unreasonable. 

        20.    Telefacsimile Execution; Counterparts.    This Agreement may be executed in any number of counterparts, each of
which shall be considered an original instrument, but all of which shall be considered one and the same agreement, and shall become binding when one or more counterparts have been signed by each party
hereto and delivered to the other parties. Delivery of an executed counterpart of this Agreement by telefacsimile will be equally effective as delivery of an original executed counterpart of this
Agreement. Any party delivering an executed counterpart of this Agreement by telefacsimile also must deliver an original executed counterpart of this Agreement, but the failure to deliver an original
executed counterpart will not affect the validity, enforceability and binding effect of this Agreement. 

        21.   Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws (as opposed to the
conflicts of law provisions) of the State of New York. 

        22.   Amendments. This Agreement may be modified or amended only by a writing duly executed by both LECG and PA. 

        IN WITNESS WHEREOF, LECG and PA have executed this Agreement on the date first above written. 

	LECG, LLC,

a California limited liability company	 	 
	

By:	
 	

/s/  J. GEOFFREY COLTON      
 J. Geoffrey Colton	
 	

 
	Its:	 	Chief Financial Officer	 	 
	
PA Consulting Group, Inc.,

a New Jersey corporation	
 	

 
	

By:	
 	

/s/  JEREMY ASHER      
 Jeremy Asher	
 	

 
	Its:	 	Group Chief Executive	 	 
	
PA Holdings Limited	
 	

 
	

By:	
 	

/s/  JEREMY ASHER      
 Jeremy Asher	
 	

 
	Its:	 	Group Chief Executive	 	 

	Attachments:	 	Exhibit A	 	List of Senior Staff
	 	 	Exhibit B	 	Form of Termination Agreement
	 	 	Exhibit C	 	List of Practice Staff Members and Departure Payment Amounts
	 	 	Exhibit D	 	Form of Promissory Note

7

QuickLinks

Exhibit 10.16

Execution Version (03.19.01)

AGREEMENT

RECITALS

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