exv10w37



 






EXHIBIT 10.37




C




OFFICE LEASE




BETWEEN




CRESCENT REAL ESTATE FUNDING VIII, L.P.




(“LANDLORD”)




and




GAINSCO, INC.




(“TENANT”)




 









 








TABLE OF CONTENTS




	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	1.
	 	Basic Lease Information	 	 	1	 
	2.
	 	Lease Grant	 	 	2	 
	3.
	 	Term; Adjustment of  Commencement Date; Possession	 	 	2	 
	4.
	 	Rent	 	 	3	 
	5.
	 	Tenant’s Use of Premises	 	 	8	 
	6.
	 	Security Deposit	 	 	8	 
	7.
	 	Services to be Furnished by Landlord	 	 	9	 
	8.
	 	Use of Electrical Services by Tenant	 	 	10	 
	9.
	 	Repairs and Alterations	 	 	10	 
	10.
	 	Entry by Landlord	 	 	12	 
	11.
	 	Assignment and Subletting	 	 	12	 
	12.
	 	Liens	 	 	14	 
	13.
	 	Indemnity and Waiver of Claims	 	 	14	 
	14.
	 	Insurance	 	 	14	 
	15.
	 	Mutual Waiver of Subrogation	 	 	15	 
	16.
	 	Casualty Damage	 	 	15	 
	17.
	 	Condemnation	 	 	16	 
	18.
	 	Events of Default	 	 	17	 
	19.
	 	Remedies	 	 	17	 
	20.
	 	Limitation of Liability	 	 	19	 
	21.
	 	No Waiver	 	 	20	 
	22.
	 	Tenant’s Right to Possession	 	 	20	 
	23.
	 	Relocation	 	 	19	 
	24.
	 	Holding Over	 	 	20	 
	25.
	 	Subordination to Mortgages; Estoppel Certificate	 	 	20	 
	26.
	 	Attorneys’ Fees	 	 	20	 
	27.
	 	Notice	 	 	21	 
	28.
	 	Reserved Rights	 	 	21	 
	29.
	 	Surrender of Premises	 	 	21	 
	30.
	 	Hazardous Materials	 	 	22	 
	31.
	 	Miscellaneous	 	 	22	 






EXHIBITS AND RIDERS




	 	 	 
	EXHIBIT A-1
	 	OUTLINE AND LOCATION OF PREMISES
	EXHIBIT A-2
	 	LEGAL DESCRIPTION OF PROPERTY
	EXHIBIT B
	 	RULES AND REGULATIONS
	EXHIBIT C
	 	COMMENCEMENT LETTER
	EXHIBIT D
	 	WORK LETTER
	EXHIBIT E
	 	PARKING AGREEMENT
	EXHIBIT F
	 	SIGNAGE
	RIDER NO. 1
	 	OPTION TO EXTEND
	RIDER NO. 2
	 	PREFERENTIAL RIGHT TO LEASE







 









 








OFFICE LEASE




     This Office Lease (this “Lease”) is entered into by and between CRESCENT REAL ESTATE
FUNDING VIII, L.P., a Delaware limited partnership (“Landlord”), and GAINSCO, INC., a Texas
corporation (“Tenant”), and shall be effective as of the date set forth below Landlord’s
signature (the “Effective Date”).



1. Basic Lease Information. The key business terms used in this Lease are defined as
follows:




     A. “Building” shall mean the building located at 3333 Lee Parkway, Dallas, Texas
75219.



     B. “Rentable Square Footage of the Building” is agreed and stipulated to be 233,543
square feet.



     C. “Premises” shall mean the area shown on Exhibit A-1 to this Lease. The Premises
are located on the 12th floor and known as suite number 1200. The “Rentable Square
Footage of the Premises” is deemed to be 20,585 square feet. If the Premises include one or
more floors in their entirety, all corridors and restroom facilities located on such full floor(s)
shall be considered part of the Premises. Landlord and Tenant stipulate and agree that the
Rentable Square Footage of the Building and the Rentable Square Footage of the Premises are correct
and shall not be remeasured.



     D. “Base Rent”:



	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	Annual Rate	 	 	Monthly	 
	 	 	Period	 	 	 	 	 	 	Per Square Foot	 	 	Base Rent	 
	CD
	 	through	 	 	 	8/31/06	 	 	$	17.00	 	 	$	17,330.08	*
	9/01/06
	 	through	 	 	 	ED	 	 	$	17.00	 	 	$	29,162.08	 









*calculated on 12,233 rsf 
Base Rent on 8,352 rsf is abated



	 	 	 
	CD = Commencement Date

	 	ED = Expiration Date






     E. “Tenant’s Pro Rata Share” is equal to the Rentable Square Footage of the Premises
divided by the Rentable Square Footage of the Building.



     F. “Base Year” for Operating Expenses: 2005.



     G. “Term”: The period of approximately 120 months starting on the Commencement Date,
subject to the provisions of Article 3.



     H. “Estimated Commencement Date”: August 1, 2005, subject to adjustment, if any, as
provided in Section 3.A and the Work Letter, if any.



     I. “Security Deposit”: $0.00.



     J. “Guarantor(s)”: N/A



1









 





     K. “Notice Addresses”:



     Tenant: On or after the Commencement Date, notices shall be sent to Tenant at the
Premises1. Prior to the Commencement Date, notices shall be sent to Tenant at the
following address:



	 	 	 	 	 
	1445 Ross Avenue

	 	with a copy to:	 	 
	Suite 5300

	 	1445 Ross Avenue	 	 
	Dallas, Texas 75202

	 	Suite 5300	 	 
	Attn: Glenn W. Anderson

	 	Dallas, Texas 75202	 	 
	Phone #: (214) 647-0415

	 	Attn: John Daniels	 	 
	Fax #:                                         

	 	Phone #: (214) 647-0415	 	 
	

	 	Fax #:                                         	 	 
	 
	 	 	 	 
	Landlord:

	 	With a copy to:	 	 
	 
	 	 	 	 
	3333 Lee Parkway

	 	777 Main Street
	 	200 Crescent Court, Suite 250
	Suite 100

	 	Suite 2100
	 	Dallas, Texas 75201
	Dallas, Texas 75219

	 	Fort Worth, Texas 76102
	 	Attn: Senior Vice President
	Attn: Property Manager

	 	Attn: Legal Department
	 	Asset Management and Leasing
	Phone #: (214) 559-2424

	 	Phone #: (817) 321-2100
	 	Phone #: (214) 880-4545
	Fax #: (214) 559-2266

	 	Fax #: (817) 321-2000
	 	Fax #: (214) 880-4547






     Rent (defined in Section 4.A) is payable to the order of Crescent Real Estate Funding VIII,
L.P. at the following address: P.O. Box 844255, Dallas, Texas 75284-4255 or by wire transfer to
Bank of America, Dallas, Texas, ABA #111-0000-25, for further credit to Crescent Real Estate
Funding VIII, L.P., Account #479-584-8612, Reference: Gainsco, Inc./3333 Lee Parkway.



     L. “Business Day(s)” are Monday through Friday of each week, exclusive of New Year’s
Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving and
Christmas Day (“Holidays”). Landlord may designate additional Holidays, provided that the
additional Holidays are commonly recognized by other office buildings in the area where the
Building is located.



     M. “Law(s)” means all applicable statutes, codes, ordinances, orders, rules and
regulations of any municipal or governmental entity, now or hereafter adopted, including the
Americans with Disabilities Act and any other law pertaining to disabilities and architectural
barriers (collectively, “ADA”), and all laws pertaining to the environment, including the
Comprehensive Environmental Response, Compensation and Liability Act, as amended, 42 U.S.C. §9601
et. seq. (“CERCLA”).



     N. “Normal Business Hours” for the Building are 7:00 A.M. to 7:00 P.M. on Business
Days and 8:00 A.M. to 2:00 P.M. on Saturdays, exclusive of Holidays.



2. Lease Grant. Landlord leases the Premises to Tenant and Tenant leases the Premises from
Landlord, together with the right in common with others to use any portions of the Property
(defined below) that are designated by Landlord for the common use of tenants and others, such as
sidewalks, common corridors, vending areas, lobby areas and, with respect to multi-tenant floors,
restrooms and elevator foyers (the “Common Areas”). “Property” means the Building
and the parcel(s) of land on which it is located as more fully described on Exhibit A-2,
together with all other buildings and improvements located thereon; and the Building garage(s) and
other improvements serving the Building, if any, and the parcel(s) of land on which they are
located.




3. Term; Adjustment of Commencement Date; Possession.




     A. Term. This Lease shall govern the relationship between Landlord and Tenant with
respect to the Premises from the Effective Date through the last day of the Term specified in
Section 1.G (the “Expiration Date”), unless terminated early in accordance with this Lease.
The Term of this Lease (as specified in Section 1.G) shall commence on the “Commencement Date”,
which shall be the earlier of (1) the date on which the Landlord Work (defined below) is
Substantially Complete, as determined pursuant to Paragraph 4(c) of the Work Letter (defined
below), or (2) the date on which the Landlord Work would have been Substantially Complete but for
Tenant Delay, as such term is defined in Paragraph 4(c) of the Work Letter, or (3) the date Tenant
takes possession of any part of the Premises









1 Attention: Glenn W. Anderson with a copy to
the attention of John Daniels at the Premises




2









 








for purposes of conducting business. 2 If Landlord is delayed in delivering
possession of the Premises or any other space due to any reason, including Landlord’s failure to
Substantially Complete the Landlord Work by the Estimated Commencement Date, the holdover or
unlawful possession of such space by any third party, or for any other reason, such delay shall not
be a default by Landlord, render this Lease void or voidable, or otherwise render Landlord liable
for damages. Promptly after the determination of the Commencement Date, Landlord and Tenant shall
enter into a commencement letter agreement substantially in the form attached as Exhibit C.
Notwithstanding any other provision of this Lease to the contrary, if the Expiration Date would
otherwise occur on a date other than the last day of a calendar month, then the Expiration Date
shall be automatically extended to the last day of such calendar month. “Landlord Work”
means the work, if any, that Landlord is obligated to perform in the Premises pursuant to a
separate work letter agreement (the “Work Letter”), if any, attached as Exhibit D.
If a Work Letter is not attached to this Lease or if an attached Work Letter does not require
Landlord to perform any work, the occurrence of the Commencement Date shall not be conditioned
upon the performance of work by Landlord.




     B. Acceptance of Premises. The Premises are accepted by Tenant in “as is” condition
and configuration subject to (1) any Landlord obligation to perform Landlord Work, (2) Landlord’s
repair obligations under Section 9.B, and (3) any latent defects (of which Tenant notifies Landlord
within one year after the Commencement Date) in the Premises or the Landlord Work. By taking
possession of the Premises, Tenant agrees that the Premises are in good order and satisfactory
condition and agrees that3 there are no representations or warranties, express or
implied, by Landlord regarding the condition of the Premises or the Building.



     C. Possession of Premises Prior to Commencement Date. Tenant shall not take
possession of the Premises prior to the Commencement Date except with the prior written consent of
Landlord. If Tenant takes possession of the Premises or commences business activities at the
Premises before the Commencement Date with Landlord’s permission, such possession and occupancy
shall be subject to the terms and conditions of this Lease and Tenant shall pay Rent (defined in
Section 4.A) to Landlord for each day of possession before the Commencement Date. However, except
for the cost of services requested by Tenant (e.g., freight elevator usage), Tenant shall not be
required to pay Base Rent and Tenant’s Pro Rata Share of Excess Operating Expenses and Tenant’s Pro
Rata Share of electrical and other costs under Section 4.H for any days of possession before the
Commencement Date during which Tenant, with the written consent of Landlord, is in possession of
the Premises for the sole purpose of performing improvements or installing furniture, equipment or
other personal property.4



4. Rent.




     A. Payments. As consideration for this Lease, commencing on the Commencement Date,
Tenant shall pay Landlord, without any demand, setoff or deduction, the total amount of Base Rent,









2 Notwithstanding anything to the contrary in
the foregoing, if the Landlord Work is Substantially Complete prior to the
Estimated Commencement Date, Tenant may elect, by delivering written notice to
Landlord, not to accept possession of the Premises earlier than the Estimated
Commencement Date, in which event the Commencement Date shall be the Estimated
Commencement Date.




3 ,EXCEPT FOR ANY REMAINING PUNCHLIST ITEMS
RELATED TO THE LANDLORD WORK,




4 D. Early Termination. Tenant shall
have the option to terminate this Lease at the end of the sixtieth
(60th) full calendar month of the Term (the “Termination
Date”), provided Tenant gives notice thereof (the “Termination
Notice”) to Landlord not less than nine (9) months prior to the
Termination Date, and provided Tenant is not in default under the Lease at the
time of the giving of such notice nor on the Termination Date. Notwithstanding
anything to the contrary contained in the immediately preceding sentence, in
the event Tenant is in default under the Lease on the Termination Date,
Landlord shall notify Tenant in writing of such default, and the Termination
Date shall be extended by an amount of time equal to the cure period applicable
to the default. In the event Tenant fails to cure such default during the
applicable cure period, this termination option shall be null and void and the
Lease shall continue in full force and effect as if Tenant had not delivered
the Termination Notice to Landlord. In the event Tenant cures such default
during the applicable cure period, the Lease shall terminate on the Termination
Date, as extended pursuant to the provisions of this Section 3.D.
Additionally, Tenant’s right to terminate hereunder is conditioned upon
the payment in full by Tenant on or before the Termination Date, of (1) all
Rent through and including the Termination Date, (2) the cash sum equal to four
(4) times the Base Rent payable for the month immediately preceding the
Termination Date, and (3) the unamortized cost (using an amortization rate of
10%) of all tenant improvement allowances and leasing commissions actually paid
or provided by Landlord in connection with the Lease (collectively, the
“Termination Payment”). Upon written request by Tenant, Landlord
shall provide to Tenant, Landlord’s then-current calculation of all of
such unamortized costs together with supporting documentation. After
Landlord’s receipt of the full Termination Payment, and so long as Tenant
has surrendered the Premises in the condition required under this Lease,
neither party shall have any rights, liabilities or obligations under this
Lease for the period accruing after the Termination Date, except those which,
by the provisions of this Lease, expressly survive the termination of this
Lease.




3









 








Tenant’s Pro Rata Share of Excess Operating Expenses (defined in Section 4.B) and any and all
other sums payable by Tenant under this Lease (all of which are sometimes collectively referred to
as “Rent”). Tenant shall pay and be liable for all rental, sales and use taxes (but
excluding income taxes), if any, imposed upon or measured by Rent under applicable Law. Base Rent
and Tenant’s Pro Rata Share of Excess Operating Expenses shall be due and payable in advance on the
first day of each calendar month without notice or demand, provided that the installment of Base
Rent for the first full calendar month of the Term shall be payable upon the execution of this
Lease by Tenant. All other items of Rent shall be due and payable by Tenant on or before 30 days
after billing by Landlord. All payments of Rent shall be by good and sufficient check or by other
means (such as automatic debit or electronic transfer) acceptable to Landlord. If the Term
commences on a day other than the first day of a calendar month, the monthly Base Rent and Tenant’s
Pro Rata Share of any Excess Operating Expenses for the month shall be prorated on a daily basis
based on a 360 day calendar year. Landlord’s acceptance of less than the correct amount of Rent
shall be considered a payment on account of the earliest Rent due. No endorsement or statement on
a check or letter accompanying a check or payment shall be considered an accord and satisfaction,
and either party may accept such check or payment without such acceptance being considered a waiver
of any rights such party may have under this Lease or applicable Law. Tenant’s covenant to pay
Rent is independent of every other covenant in this Lease.




     B. Excess Operating Expenses. Tenant shall pay Tenant’s Pro Rata Share of the amount,
if any, by which Operating Expenses (defined in Section 4.D) for each calendar year during the Term
exceeds Operating Expenses for the Base Year (the “Excess Operating Expenses”).
5 If Operating Expenses in any calendar year decrease below the amount of Operating
Expenses for the Base Year, Tenant’s Pro Rata Share of Operating Expenses for that calendar year
shall be $0. In no event shall Base Rent be reduced if Operating Expenses for any calendar year
are less than Operating Expenses for the Base Year. No later than January 1 of each calendar year,
Landlord shall provide Tenant with a good faith estimate of the Excess Operating Expenses for such
calendar year during the Term. On or before the first day of each month, Tenant shall pay to
Landlord a monthly installment equal to one-twelfth of Tenant’s Pro Rata Share of Landlord’s
estimate of the Excess Operating Expenses. If Landlord determines that its good faith estimate of
the Excess Operating Expenses was incorrect, Landlord may provide Tenant with a revised estimate.
After its receipt of the revised estimate, Tenant’s monthly payments shall be based upon the
revised estimate. If Landlord does not provide Tenant with an estimate of the Excess Operating
Expenses by January 1 of a calendar year, Tenant shall continue to pay monthly installments based
on the most recent estimate(s) until Landlord provides Tenant with the new estimate. Upon delivery
of the new estimate, an adjustment shall be made for any month for which Tenant paid monthly
installments based on the same year’s prior incorrect estimate(s). Tenant shall pay Landlord the
amount of any underpayment within 30 days after receipt of the new estimate. Any overpayment shall
be credited against the next sums due and owing by Tenant or, if no further Rent is due, refunded
directly to Tenant within 30 days of determination. The obligation of Tenant to pay for Excess
Operating Expenses as provided herein shall survive the expiration or earlier termination of this
Lease.



     C. Reconciliation of Operating Expenses. Within 120 days after the end of each
calendar year or as soon thereafter as is practicable, Landlord shall furnish Tenant with a
statement of the actual Operating Expenses and Excess Operating Expenses for such calendar year.
If the most recent estimated Excess Operating Expenses paid by Tenant for such calendar year are
more than the actual Excess Operating Expenses for such calendar year, Landlord shall apply any
overpayment by Tenant against Rent due or next becoming due; provided, if the Term expires before
the determination of the overpayment, Landlord shall, within 30 days of determination, refund any
overpayment to Tenant after first deducting the amount of Rent due. If the most recent estimated
Excess Operating Expenses paid by Tenant for the prior calendar year are less than the actual
Excess Operating Expenses for such year, Tenant shall pay Landlord, within 30 days after its
receipt of the statement of Operating Expenses, any underpayment for the prior calendar year.



     D. Operating Expenses Defined. “Operating Expenses” means all costs and
expenses incurred or accrued in each calendar year in connection with the ownership, operation,
maintenance,









5 Notwithstanding the foregoing, Tenant’s
Pro Rata Share of Controllable Expenses (defined below) shall not increase by
more than 8% (compounded annually) over Tenant’s Pro Rata Share of Controllable
Expenses in the Base Year. However, any increases in Excess Operating Expenses
not recovered by Landlord due to the foregoing limitation shall be carried
forward into all succeeding calendar years during the Term (subject to the
foregoing limitation) until fully recouped by Landlord. The term
“Controllable Expenses” means all Operating Expenses
excluding expenses relating to the cost of utilities, insurance, real estate
taxes and other uncontrollable expenses.




4









 








management, repair and protection of the Property which are directly attributable or
reasonably allocable to the Building, including Landlord’s personal property used in connection
with the Property and including all costs and expenditures relating to the following:





	 	(1)  	Operation, maintenance, repair and replacements of any part of the Property,
including the mechanical, electrical, plumbing, HVAC, vertical transportation, fire
prevention and warning and security systems; materials and supplies (such as light
bulbs and ballasts); equipment and tools; floor, wall and window coverings; personal
property; required or beneficial easements; and related service agreements and rental
expenses.
	 
	 	(2)  	Administrative and management fees, including accounting, information and
professional services (except for negotiations and disputes with specific tenants not
affecting other parties)6; management office(s); and wages, salaries,
benefits, reimbursable expenses and taxes (or allocations thereof) for full and part
time personnel involved in operation, maintenance and management7.
	 
	 	(3)  	Janitorial service; window cleaning; waste disposal; gas, water and sewer and
other utility charges (including add-ons); and landscaping, including all applicable
tools and supplies.
	 
	 	(4)  	Property, liability and other insurance coverages carried by Landlord,
including deductibles and risk retention programs and an allocation of a portion of the
cost of blanket insurance policies maintained by Landlord and/or its affiliates.
	 
	 	(5)  	Real estate taxes, assessments, business taxes, excises, association dues,
fees, levies, charges and other taxes of every kind and nature whatsoever, general and
special, extraordinary and ordinary, foreseen and unforeseen, including interest on
installment payments, which may be levied or assessed against or arise in connection
with ownership, use, occupancy, rental, operation or possession of the Property
(including personal property taxes for property that is owned by Landlord and used in
connection with the operation, maintenance and repair of the Property), or substituted,
in whole or in part, for a tax previously in existence by any taxing authority, or
assessed in lieu of a tax increase, or paid as rent under any ground lease. Real
estate taxes do not include8 Landlord’s income, franchise or estate taxes
(except to the extent such excluded taxes are assessed in lieu of taxes included
above).
	 
	 	(6)  	Compliance with Laws, including license, permit and inspection fees (but not in
duplication of capital expenditures amortized as provided in Section
4.D(9))9; and all expenses and fees, including attorneys’ fees and court or
other venue of dispute resolution costs, incurred in negotiating or contesting real
estate taxes or the validity and/or applicability of any governmental enactments which
may affect Operating Expenses; provided Landlord shall credit against Operating
Expenses any refunds received from such negotiations or contests to the extent
originally included in Operating Expenses (less Landlord’s costs).
	 
	 	(7)  	Security services, to the extent provided or contracted for by Landlord.
	 
	 	(8)  	Goods and services purchased from Landlord’s subsidiaries and affiliates to the
extent the cost of same is generally consistent with rates charged by unaffiliated
third parties for similar goods and services.











6 , provided that the management fee shall not
exceed 4% of gross revenues for the Property




7 at or below the level of regional property
manager and regional asset manager




8 (A) any penalties and interest incurred
because of the delinquency by Landlord in timely paying such taxes (unless such
penalties and interest are incurred as a result of Tenant’s failure to
timely pay its portion of such taxes or as a result of Landlord’s
contesting such taxes in good faith), and (B)




9 (only to the extent that such compliance
relates to Laws which are amended, become effective, or are interpreted or
enforced differently, after the date of this Lease)




5









 









	 	(9)  	Amortization of capital expenditures incurred: (A) to conform with
Laws10; (B) to provide or maintain building standards (other than building
standard tenant improvements); or (C) with the intention of promoting safety or
reducing or controlling increases in Operating Expenses, such as lighting retrofit and
installation of energy management systems. Such expenditures shall be amortized
uniformly over a reasonable period of time determined by Landlord, together with
interest on the unamortized balance at the Prime Rate (defined in Section 19.A(6)) (as
of the date incurred) plus 2%.





     E. Exclusions from Operating Expenses. Operating Expenses exclude the following
expenditures:




	 	(1)  	Leasing commissions, attorneys’ fees and other expenses related to leasing
tenant space and constructing improvements for the sole benefit of an individual
tenant.
	 
	 	(2)  	Goods and services furnished to an individual tenant of the Building which are
above building standard and which are separately reimbursable directly to Landlord in
addition to Excess Operating Expenses.
	 
	 	(3)  	Repairs, replacements and general maintenance paid by insurance proceeds or
condemnation proceeds.
	 
	 	(4)  	Except as provided in Section 4.D(9), depreciation, amortization, interest
payments on any encumbrances on the Building and the cost of capital improvements or
additions.
	 
	 	(5)  	Costs of installing any specialty service, such as an observatory, broadcasting
facility, luncheon club, or athletic or recreational club.
	 
	 	(6)  	Expenses for repairs or maintenance related to the Property which have been
reimbursed to Landlord pursuant to warranties or service contracts.
	 
	 	(7)  	Compensation paid to clerks, attendants or other persons in commercial
concessions operated by Landlord which customarily sell products or services to the
public, including tenants of the Building.
	 
	 	(8)  	Costs (other than maintenance costs) of any art work (such as sculptures or
paintings) used to decorate the Building.
	 
	 	(9)  	Principal payments on indebtedness secured by liens against the Building, or
costs of refinancing such indebtedness.
	 
	 	(10)  	Electrical service costs paid separately pursuant to Section 4.H.
	 
	 	11   	 











10 which are amended, become effective, or are
interpreted or enforced differently, after the date of this Lease; provided,
however, all capital expenditures made in order to conform to or comply with
ADA shall be included in Operating Expenses other than ADA compliance work
performed as part of the Landlord Work described in the Work Letter.





	11 (11)   	Salaries of officers and executives of
Landlord, except as included in Section 4.D(2).
	 
	(12)  	Interest and penalties due to late payment of any amounts owed by
Landlord, except such as may be incurred as a result of Tenant’s
failure to timely pay its portion of such amounts or as a result of
Landlord’s contesting such amounts in good faith.
	 
	(13)  	Legal, auditing, consulting and professional fees paid or incurred in
connection with negotiations for financings, refinancings or sales of the
Property.
	 
	(14)  	Costs relating to disputes between Landlord and a specific tenant of
the Building.
	 
	(15)  	Costs incurred as a result of an intentional tort by Landlord or its
agents.
	 
	(16)  	Costs, penalties and fines incurred due to the violation by Landlord
or any other tenant of the Building of Laws, or the terms and conditions
of any lease pertaining to the Building, except such as may be incurred by
Landlord in contesting in good faith the alleged violation.




6









 











     F. Proration of Operating Expenses; Adjustments. If Landlord incurs Operating
Expenses for the Property together with one or more other buildings or properties, whether pursuant
to a reciprocal easement agreement, common area agreement or otherwise, the shared costs and
expenses shall be equitably prorated and apportioned by Landlord between the Property and the other
buildings or properties. If the Building is not 100% occupied during any calendar year or partial
calendar year or if Landlord is not supplying services to 100% of the total Rentable Square Footage
of the Building at any time during a calendar year or partial calendar year, Operating Expenses
shall be determined as if the Building had been 100% occupied and Landlord had been supplying
services to 100% of the Rentable Square Footage of the Building during that calendar year. If
Tenant pays for its Pro Rata Share of Operating Expenses based on increases over a “Base
Year” and Operating Expenses for a calendar year are determined as provided in the prior
sentence, Operating Expenses for the Base Year shall also be determined as if the Building had been
100% occupied and Landlord had been supplying services to 100% of the Rentable Square Footage of
the Building. The extrapolation of Operating Expenses under this Section shall be performed by
Landlord by adjusting the cost of those components of Operating Expenses that are impacted by
changes in the occupancy of the Building.



     G. Audit Rights. Within 60 days (the “Audit Election Period”) after Landlord
furnishes its statement of actual Operating Expenses for any calendar year (including the Base
Year), Tenant may, at its expense during Landlord’s normal business hours, elect to audit
Landlord’s Operating Expenses for such calendar year only, subject to the following conditions:
(1) there is no uncured event of default under this Lease; (2) the audit shall be prepared by an
independent certified public accounting firm of recognized national standing; (3) in no event shall
any audit be performed by a firm retained on a “contingency fee” basis; (4) the audit shall
commence within 30 days after Landlord makes Landlord’s books and records available to Tenant’s
auditor and shall conclude within 60 days after commencement; (5) the audit shall be conducted
where Landlord maintains its books and records and shall not unreasonably interfere with the
conduct of Landlord’s business; (6) Tenant and its accounting firm shall treat any audit in a
confidential manner and shall each execute Landlord’s confidentiality agreement for Landlord’s
benefit prior to commencing the audit; and (7) the accounting firm’s audit report shall, at no
charge to Landlord, be submitted in draft form for Landlord’s review and comment before the final
approved audit report is delivered to Landlord, and any reasonable comments by Landlord shall be
incorporated into the final audit report. Notwithstanding the foregoing, Tenant shall have no
right to conduct an audit if Landlord furnishes to Tenant an audit report for the calendar year in
question prepared by an independent certified public accounting firm of recognized national
standing (whether originally prepared for Landlord or another party). This paragraph shall not be
construed to limit, suspend, or abate Tenant’s obligation to pay Rent when due, including estimated
Excess Operating Expenses. Landlord shall credit any overpayment determined by the final approved
audit report against the next Rent due and owing by Tenant or, if no further Rent is due, refund
such overpayment directly to Tenant within 30 days of determination. Likewise, Tenant shall pay
Landlord any underpayment determined by the final approved audit report within 30 days of
determination. The foregoing obligations shall survive the Expiration Date. If Tenant does not
give written notice of its election to audit Landlord’s Operating Expenses during the Audit
Election Period, Landlord’s Operating Expenses for the applicable calendar year shall be deemed
approved for all purposes, and Tenant shall have no further right to review or contest the
same.12



     H. Electrical Costs. In addition to the Excess Operating Expenses, and as a separate
obligation, Tenant shall pay Landlord Tenant’s Pro Rata Share of the following costs incurred by
Landlord which are directly attributable or reasonably allocable to the Building: (1) electrical
services used in the operation, maintenance and use of the Property; (2) sales, use, excise and
other taxes assessed by governmental authorities on electrical services supplied to the Property;
and (3) other costs of providing electrical services to the Property. Tenant shall, with each
monthly payment of Base Rent,










	(17)  	Costs relating to or arising, directly or indirectly, from the
handling, removal, treatment, disposal or replacement of Hazardous Materials in
the Property, which were not caused by the actions of Tenant, its agents,
employees, contractors, subtenants, assignees or invitees.





12 If the audit proves that Landlord’s
calculation of Operating Expenses and electrical costs for the calendar year
under inspection was overstated by more than five percent (5%), then, after
verification, Landlord shall pay Tenant’s actual reasonable out-of-pocket audit
and inspection fees applicable to the review of said calendar year statement
within thirty (30) days after receipt of Tenant’s invoice therefor.




7









 








pay Landlord’s estimate of Tenant’s Pro Rata Share of such electrical service costs in the
same manner as provided for Operating Expenses in Section 4.B13.




     5. Tenant’s Use of Premises.



     A. Permitted Uses. The Premises shall be used only for general office use (the
“Permitted Use”) and for no other use whatsoever. Tenant shall not use or permit the use
of the Premises for any purpose which is illegal, creates obnoxious odors (including tobacco
smoke), noises or vibrations, is dangerous to persons or property, could increase Landlord’s
insurance costs, or which, in Landlord’s reasonable opinion, unreasonably disturbs any other
tenants of the Building or interferes with the operation of the Building. Except as provided
below, the following uses are expressly prohibited in the Premises: schools, government offices or
agencies; personnel agencies; collection agencies; credit unions; data processing, telemarketing or
reservation centers; medical treatment and health care; radio, television or other
telecommunications broadcasting; restaurants and other retail; customer service offices of a public
utility company; or any other purpose which would, in Landlord’s reasonable opinion, impair the
reputation or quality of the Building, overburden any of the Building systems, Common Areas or
parking facilities (including any use which would create a population density in the Premises which
is in excess of the density which is standard for the Building), impair Landlord’s efforts to lease
space or otherwise interfere with the operation of the Property. Notwithstanding the foregoing,
the following ancillary uses are permitted in the Premises only so long as they do not, in the
aggregate, occupy more than 10% of the Rentable Square Footage of the Premises or any single floor
(whichever is less): (A) the following services provided by Tenant exclusively to its employees:
schools, training and other educational services; credit unions; and similar employee services; and
(B) the following services directly and exclusively supporting Tenant’s business: telemarketing;
reservations; storage; data processing; debt collection; and similar support services.



     B. Compliance with Laws. Tenant shall comply with all Laws regarding the operation of
Tenant’s business and the use, condition, configuration and occupancy of the Premises and the use
of the Common Areas. Tenant, within 10 days after receipt, shall provide Landlord with copies of
any notices Tenant receives regarding a violation or alleged or potential violation of any Laws.
Tenant shall comply with the rules and regulations of the Building attached as Exhibit B
and such other reasonable rules and regulations (or modifications thereto) adopted by Landlord from
time to time. Such rules and regulations will be applied in an equitable manner as determined by
Landlord. Tenant shall also cause its agents, contractors, subcontractors, employees, customers,
and subtenants to comply with all rules and regulations.



     C. Tenant’s Security. Tenant shall (1) lock the doors to the Premises and take other
reasonable steps to secure the Premises and the personal property of all Tenant Parties (defined in
Section 13.A) and any of Tenant’s transferees, contractors or licensees in the Common Areas and
parking facilities of the Building and Property, from unlawful intrusion, theft, fire and other
hazards; (2) keep and maintain in good working order all security devices installed in the Premises
by or for the benefit of Tenant (such as locks, smoke detectors and burglar alarms); and (3)
cooperate with Landlord and other tenants in the Building on security matters. Tenant acknowledges
that any security measures employed by Landlord are for Landlord’s own protection; that Landlord is
not a guarantor of the security or safety of the Tenant Parties or their property; and that such
security matters are the responsibility of Tenant and the local law enforcement authorities.



6. Security Deposit. 14 Landlord may, from time to time while an event of
default remains uncured, without prejudice to any other remedy, use all or a portion of the
Security Deposit to satisfy past due Rent or to cure any uncured default by Tenant. If Landlord
uses the Security Deposit, Tenant shall on demand restore the Security Deposit to its original
amount. Provided that Tenant has performed all of its obligations hereunder, Landlord shall return
any unapplied portion of the Security Deposit to










13 , C, and F. Any reference in this paragraph
to Section 4.F shall not apply to the gross-up provision described in Section
4.F. Electrical service costs charged to Tenant shall not be grossed up, but
will instead be charged based on the method described in this Section 4.H.
Tenant’s Pro Rata Share of electrical service costs shall be calculated
by excluding from the costs described above in this Section 4.H any services
furnished to an individual tenant of the Building which are above building
standard and which are separately reimbursable directly to Landlord.




14 The parties have agreed that no Security
Deposit will be required of Tenant at the outset of this Lease. However, if
Tenant is thirty (30) days late paying monthly rentals more than two (2) times
in any twelve (12) month period, then upon written demand by Landlord, a
Security Deposit in an amount equal to one monthly rental payment shall be
delivered by Tenant to Landlord and retained by Landlord for the remainder of
the Term.




8









 








Tenant within 30 days after the later to occur of: (A) the determination of Tenant’s Pro Rata
Share of any Excess Operating Expenses for the final year of the Term; (B) the date Tenant
surrenders possession of the Premises to Landlord in accordance with this Lease; or (C) the
Expiration Date. If Landlord transfers its interest in the Premises, Landlord shall assign the
Security Deposit to the transferee and, following the assignment, Landlord shall have no further
liability for the return of the Security Deposit. Landlord shall not be required to keep the
Security Deposit separate from its other accounts.




7. Services to be Furnished by Landlord.




     A. Standard Services. Landlord agrees to furnish Tenant with the following services
during the Term:




	 	(1)  	Water service for use in the lavatories on each floor on which the Premises are
located.
	 
	 	(2)  	Heat and air conditioning in season during Normal Business Hours, at such
temperatures and in such amounts as required by governmental authority or as Landlord
15determines are standard for the Building. Tenant, upon such notice as is
reasonably required by Landlord, and subject to the capacity of the Building systems,
may request HVAC service during hours other than Normal Business Hours. Tenant shall
pay Landlord the standard charge for the additional service as determined by Landlord
from time to time.
	 
	 	(3)  	Maintenance and repair of the Property as described in Section 9.B.
	 
	 	(4)  	Janitorial service five days per week (excluding Holidays), as determined by
Landlord. If Tenant’s use of the Premises, floor covering or other improvements
require special services in excess of the standard services for the Building, Tenant
shall pay the additional cost attributable to the special services.
	 
	 	(5)  	Elevator service, subject to proper authorization and Landlord’s policies and
procedures for use of the elevator(s) in the Building.
	 
	 	(6)  	Exterior window washing at such intervals as determined by Landlord.
	 
	 	(7)  	Electricity to the Premises for general office use, in accordance with and
subject to the terms and conditions in Article 8.
	 
	 	   	16





     B. Service Interruptions. Landlord’s failure to furnish, or any interruption or
termination of, services due to the application of Laws, the failure of any equipment, the
performance of repairs, improvements or alterations, or the occurrence of any other event or cause
whether or not within the reasonable control of Landlord (a “Service Failure”), shall not
render Landlord liable to Tenant, constitute a constructive eviction of Tenant, give rise to an
abatement of Rent, or relieve Tenant from the obligation to fulfill any covenant or agreement.
17 In no event shall Landlord be liable to Tenant for any loss or damage, including the
theft of Tenant’s Property (defined in Article 14), arising out of or in connection with the
failure of any security services, personnel or equipment.



     C. Third Party Services. If Tenant desires any service which Landlord has not
specifically agreed to provide in this Lease, such as private security systems or
telecommunications services serving the Premises, Tenant shall procure such service directly from a
reputable third party service provider (“Provider”) for Tenant’s own account. Tenant shall
require each Provider to comply with the









15 reasonably




16 (8) Subject to (a) the Building limited
access system being operative, (b) there being no Event of Default for which
Tenant’s time to cure has elapsed, and (c) events of Force Majeure,
Tenant shall have the right of access to the Premises twenty-four (24) hours
per day, seven days per week during the Term of this Lease.




17 Notwithstanding the foregoing, commencing on
the 11th consecutive Business Day of a Service Failure which is
beyond the control of Landlord (unless the Service Failure is caused by a fire
or other casualty, in which event Section 16 controls), Tenant shall, as its
sole remedy, be entitled to an equitable diminution of Base Rent based upon the
pro rata portion of the Premises which is rendered unfit for occupancy for the
Permitted Use, except to the extent such Service Failure is caused by a Tenant
Party. Commencing on the 6th consecutive Business Day of any Service Failure
within Landlord’s control, (unless the Service Failure is caused by a
fire or other casualty, in which event Section 16 controls), Tenant shall, as
its sole remedy, be entitled to an equitable diminution of Base Rent based upon
the pro rata portion of the Premises which is rendered unfit for occupancy for
the Permitted Use, except to the extent such Service Failure is caused by a
Tenant Party.




9









 








Building’s rules and regulations, all Laws, and Landlord’s reasonable policies and practices
for the Building. Tenant acknowledges Landlord’s current policy that requires all Providers
utilizing any area of the Building outside the Premises to be approved by Landlord and to enter
into a written agreement acceptable to Landlord prior to gaining access to, or making any
installations in or through, such area. Accordingly, Tenant shall give Landlord written notice
sufficient for such purposes.




8. Use of Electrical Services by Tenant.




     A. Landlord’s Electrical Service. Landlord shall furnish building standard electrical
service to the Premises sufficient to operate customary lighting, office machines and other
equipment of similar low electrical consumption. Landlord may, at any time and from time to time,
calculate Tenant’s actual electrical consumption in the Premises either by a survey conducted by a
reputable consultant selected by Landlord, or through separate meters installed, maintained and
read by Landlord, all at Tenant’s expense. The cost of any electrical consumption in excess of
that which Landlord determines is standard for the Building 18shall be paid by Tenant in
accordance with Section 8.D. The furnishing of electrical services to the Premises shall be
subject to the rules, regulations and practices of the supplier of such electricity and of any
municipal or other governmental authority regulating the business of providing electrical utility
service. Landlord shall not be liable or responsible to Tenant for any loss, damage or expense
which Tenant may sustain or incur if either the quantity or character of the electrical service is
changed or is no longer available or no longer suitable for Tenant’s requirements.



     B. Selection of Electrical Service Provider. Landlord reserves the right to select
the provider of electrical services to the Building and/or the Property. To the fullest extent
permitted by Law, Landlord shall have the continuing right, upon 30 days written notice, to change
such utility provider. All charges and expenses incurred by Landlord due to any such changes in
electrical services, including maintenance, repairs, installation and related costs, shall be
included in the electrical services costs referenced in Section 4.H, unless paid directly by
Tenant.



     C. Submetering. Landlord shall have the continuing right, upon 30 days written
notice, to install a submeter for the Premises at Tenant’s expense19. If submetering is
installed for the Premises, Landlord may charge for Tenant’s actual electrical consumption monthly
in arrears at commercially reasonable rates determined by Landlord (plus, to the fullest extent
permitted by applicable Laws, Landlord’s then quoted administrative fee for such submetering),
except as to electricity directly purchased by Tenant from third party providers after obtaining
Landlord’s consent to the same. Even if the Premises are submetered, Tenant shall remain obligated
to pay Tenant’s Pro Rata Share of the cost of electrical services as provided in Section 4.H,
except that Tenant shall be entitled to a credit against electrical services costs equal to that
portion of the amounts actually paid by Tenant separately and directly to Landlord which are
attributable to building standard electrical services submetered to the Premises.



     D. Excess Electrical Service. Tenant’s use of electrical service shall not exceed, in
voltage, rated capacity, use beyond Normal Business Hours or overall load, that which Landlord
deems to be standard for the Building20. If Tenant requests permission to consume
excess electrical service, Landlord may refuse to consent or may condition consent upon conditions
that Landlord reasonably elects (including the installation of utility service upgrades, meters,
submeters, air handlers or cooling units). The costs of any approved additional consumption (to
the extent permitted by Law), installation and maintenance shall be paid by Tenant.



9. Repairs and Alterations.




     A. Tenant’s Repair Obligations. Tenant shall, at its sole cost and expense, promptly
perform all maintenance and repairs to the Premises that are not Landlord’s express responsibility
under this Lease, and shall keep the Premises in good condition and repair, ordinary wear and tear
excepted.









18 (which standard shall be set by comparison
of the Tenant’s electrical consumption with the electrical consumption of
other general office use tenants in the Building that do not have submeters)




19 , but only if Landlord is installing
submeters for all tenants or has a reasonable belief that Tenant’s
electrical consumption is above Building standard




20 (which standard shall be set by comparison
of the Tenant’s overall usage, voltage rated capacity, use beyond Normal
Business Hours, and overall electrical load with the overall usage, voltage
rated capacity, use beyond Normal Business Hours and overall electrical load of
other general office use tenants in the Building that do not have submeters)




10









 








Tenant’s repair obligations include, without limitation, repairs to: (1) floor covering
and/or raised flooring; (2) interior partitions; (3) doors; (4) the interior side of demising
walls; (5) electronic, phone and data cabling and related equipment (collectively, “Cable”)
that is installed by or for the benefit of Tenant and located in the Premises or other portions of
the Building; (6) supplemental air conditioning units, private showers and kitchens, including hot
water heaters, plumbing, dishwashers, ice machines and similar facilities serving Tenant
exclusively; (7) phone rooms used exclusively by Tenant; (8) Alterations (defined below) performed
by contractors retained by Tenant, including related HVAC balancing; and (9) all of Tenant’s
furnishings, trade fixtures, equipment and inventory. Landlord reserves the right to perform any
of the foregoing maintenance or repair obligations or require that such obligations be performed by
a contractor approved by Landlord, all at Tenant’s expense. All work shall be performed in
accordance with the rules and procedures described in Section 9.C below. If Tenant fails to make
any repairs to the Premises for more than 15 days after notice from Landlord (although notice shall
not be required if there is an emergency), Landlord may, in addition to any other remedy available
to Landlord, make the repairs, and Tenant shall pay the reasonable cost of the repairs to Landlord
within 30 days after receipt of an invoice, together with an administrative charge in an amount
equal to 15% of the cost of the repairs.




     B. Landlord’s Repair Obligations. Landlord shall keep and maintain in good repair and
working order and make repairs to and perform maintenance upon: (1) structural elements of the
Building21; (2) standard mechanical (including HVAC), electrical, plumbing and fire/life
safety systems serving the Building generally; (3) Common Areas; (4) the roof of the Building; (5)
exterior windows of the Building; and (6) elevators serving the Building. Landlord shall promptly
make repairs (taking into account the nature and urgency of the repair) for which Landlord is
responsible. If any of the foregoing maintenance or repair is necessitated due to the acts or
omissions of any Tenant Party (defined in Section 13.A), 22Tenant shall pay the costs of
such repairs or maintenance to Landlord within 30 days after receipt of an invoice, together with
an administrative charge in an amount equal to 15% of the cost of the repairs.



     C. Alterations.




	 	(1)  	When Consent Is Required. Tenant shall not make alterations, additions
or improvements to the Premises or install any Cable in the Premises or other portions
of the Building (collectively, “Alterations”) without first obtaining the
written consent of Landlord in each instance. However, Landlord’s consent shall not be
required for any Alteration that satisfies all of the following criteria (a “Minor
Alteration”): (a) is of a cosmetic nature such as painting, wallpapering, hanging
pictures and installing carpeting; (b) is not visible from outside the Premises or
Building; (c) will not affect the systems or structure of the Building; and (d) does
not require work to be performed inside the walls or above the ceiling of the Premises.
	 
	 	(2)  	Requirements For All Alterations, Including Minor Alterations. Prior
to starting work on any Alteration, Tenant shall furnish to Landlord for review and
approval: plans and specifications; names of proposed contractors (provided that
Landlord may designate specific contractors with respect to Building systems); copies
of contracts; necessary permits and approvals; evidence of contractors’ and
subcontractors’ insurance; and Tenant’s security for performance of the Alteration.
Changes to the plans and specifications must also be submitted to Landlord for its
approval. Some of the foregoing requirements may be waived by Landlord for the
performance of specific Minor Alterations; provided that such waiver is obtained in
writing prior to the commencement of such Minor Alterations. Landlord’s waiver on one
occasion shall not waive Landlord’s right to enforce such requirements on any other
occasion. Alterations shall be constructed in a good and workmanlike manner using
materials of a quality that is at least equal to the quality designated by Landlord as
the minimum standard for the Building. Landlord may designate reasonable rules,
regulations and procedures for the performance of Alterations in the Building and, to
the extent reasonably necessary to avoid disruption to the occupants of the Building,
shall have the right to designate the time when Alterations may be performed. Tenant
shall reimburse Landlord within 30 days after receipt of an invoice for out-of-pocket
sums paid by Landlord for third party examination











21 and the Parking Facilities




22 except to the extent such repair or
maintenance is covered by insurance,




11









 









	 	   	of Tenant’s plans for Alterations. In addition, within 30 days after receipt of an
invoice from Landlord, Tenant shall pay to Landlord its then-quoted standard fee for
Landlord’s oversight and coordination of any Alterations. Upon completion of the
Alterations, Tenant shall furnish “as-built” plans (which shall not be required for
Minor Alterations), completion affidavits, full and final waivers of liens, receipts
and bills covering all labor and materials. Tenant shall assure that the Alterations
comply with all insurance requirements and Laws.
	 
	 	(3)  	Landlord’s Liability For Alterations. Landlord’s approval of an
Alteration shall not be a representation by Landlord that the Alteration complies with
applicable Laws or will be adequate for Tenant’s use. Tenant acknowledges that
Landlord is not an architect or engineer, and that the Alterations will be designed
and/or constructed using independent architects, engineers and contractors.
Accordingly, Landlord does not guarantee or warrant that the applicable construction
documents will comply with Laws or be free from errors or omissions, nor that the
Alterations will be free from defects, and Landlord will have no liability therefor.





10. Entry by Landlord. Landlord, its agents, contractors and representatives may enter the
Premises to inspect or show the Premises, to clean and make repairs, alterations or additions to
the Premises, and to conduct or facilitate repairs, alterations or additions to any portion of the
Building, including other tenants’ premises23. Except in emergencies or to provide
janitorial and other Building services after Normal Business Hours, Landlord shall provide Tenant
with reasonable prior notice of entry into the Premises, which may be given orally. Landlord shall
have the right to temporarily close all or a portion of the Premises to perform repairs,
alterations and additions, if reasonably necessary for the protection and safety of Tenant and its
employees. Except in emergencies, Landlord will not close the Premises if the work can reasonably
be completed on weekends and after Normal Business Hours; provided, however, that Landlord is not
required to conduct work on weekends or after Normal Business Hours if such work can be conducted
without closing the Premises. Entry by Landlord for any such purposes shall not constitute a
constructive eviction or entitle Tenant to an abatement or reduction of Rent.




11. Assignment and Subletting.




     A. Landlord’s Consent Required. Except in connection with a Permitted Transfer
(defined in Section 11.E), Tenant shall not assign, transfer or encumber any interest in this Lease
or sublease or allow any third party to use any portion of the Premises (collectively or
individually, a “Transfer”) without the prior written consent of Landlord, which consent
shall not be unreasonably withheld if Landlord does not elect to exercise its termination rights
under Section 11.B below. Without limitation, Tenant agrees that Landlord’s consent shall not be
considered unreasonably withheld if: (1) the proposed transferee’s financial condition does not
meet the criteria Landlord uses to select Building tenants having similar leasehold obligations;
(2) the proposed transferee is a governmental organization or present occupant of the Building, or
Landlord is otherwise engaged in lease negotiations with the proposed transferee for other premises
in the Building; (3) any uncured event of default exists under this Lease (or a condition exists
which, with the passage of time or giving of notice, would become an event of default); (4) any
portion of the Building or Premises would likely become subject to additional or different Laws as
a consequence of the proposed Transfer; (5) the proposed transferee’s use of the Premises conflicts
with the Permitted Use or any exclusive usage rights granted to any other tenant in the Building;
(6) the use, nature, business, activities or reputation in the business community of the proposed
transferee (or its principals, employees or invitees) does not meet Landlord’s standards for
Building tenants; (7) either the Transfer or any consideration payable to Landlord in connection
therewith adversely affects the real estate investment trust (or pension fund or other ownership
vehicle) qualification tests applicable to Landlord or its affiliates; or (8) the proposed
transferee is or has been involved in litigation with Landlord or any of its
affiliates24. Tenant shall not be entitled to receive monetary damages based upon a
claim that Landlord unreasonably withheld its consent to a proposed Transfer and Tenant’s sole
remedy shall be an action to enforce any such provision through specific performance or declaratory
judgment. Any attempted Transfer in violation of this Article is voidable at Landlord’s option.









23 provided, however, any such showing to
prospective new tenants shall be limited to showings during the last nine (9)
months of the Lease Term.




24 during the two year period immediately
preceding the Transfer.




12









 








     B. Consent Parameters/Requirements. As part of Tenant’s request for, and as a
condition to, Landlord’s consent to a Transfer, Tenant shall provide Landlord with financial
statements for the proposed transferee, a complete copy (unexecuted) of the proposed assignment or
sublease and other contractual documents, and such other information as Landlord may reasonably
request. Landlord shall then have the right (but not the obligation) to terminate this Lease as of
the effective date of Transfer with respect to the portion of the Premises which Tenant desires to
Transfer. In such event, the rent and other charges payable shall be proportionately reduced.
25 Consent by Landlord to one or more Transfer(s) shall not operate as a waiver of
Landlord’s rights to approve any subsequent Transfers. In no event shall any Transfer or Permitted
Transfer release or relieve Tenant from any obligation under this Lease, nor shall the acceptance
of Rent from any assignee, subtenant or occupant constitute a waiver or release of Tenant from any
of its obligations or liabilities under this Lease. Tenant shall pay Landlord a review fee of $750
for Landlord’s review of any Permitted Transfer or requested Transfer, provided if Landlord’s
actual reasonable costs and expenses (including reasonable attorney’s fees) exceed $750, Tenant
shall reimburse Landlord for its actual reasonable costs and expenses in lieu of a fixed review
fee.



     C. Payment to Landlord. If the aggregate consideration paid to Tenant for a Transfer
exceeds that payable by Tenant under this Lease (prorated according to the transferred interest),
Tenant shall pay Landlord 50% of such excess (after deducting therefrom reasonable leasing
commissions and reasonable costs of tenant improvements paid to unaffiliated third parties in
connection with the Transfer, with proof of same provided to Landlord). Tenant shall pay Landlord
for Landlord’s share of any excess within 30 days after Tenant’s receipt of such excess
consideration. If any uncured event of default exists under this Lease (or a condition exists
which, with the passage of time or giving of notice, would become an event of default), Landlord
may require that all sublease payments be made directly to Landlord, in which case Tenant shall
receive a credit against Rent in the amount of any payments received, but not to exceed the amount
payable by Tenant under this Lease.



     D. Change in Control of Tenant. Except for a Permitted Transfer, if Tenant is a
corporation, limited liability company, partnership, or similar entity, and if the entity which
owns or controls a majority of the voting shares/rights at any time changes for any reason
(including a merger, consolidation or reorganization), such change of ownership or control shall
constitute a Transfer. The foregoing shall not apply so long as, both before and after the
Transfer, Tenant is an entity whose outstanding stock is listed on a recognized security exchange,
or if at least 80% of its voting stock is owned by another entity, the voting stock of which is so
listed; provided, however, that Tenant shall give Landlord written notice at least 30 days prior to
the effective date of such change in ownership or control.



     E. No Consent Required. Tenant may assign its entire interest under this Lease to an
Affiliate (defined below) or to a successor to Tenant by purchase, merger, consolidation or
reorganization without the consent of Landlord, provided that all of the following conditions are
satisfied (a “Permitted Transfer”): (1) no uncured event of default exists under this
Lease; (2) Tenant’s successor shall own all or substantially all of the assets of Tenant; (3) the
Affiliate or Tenant’s successor shall have a net worth which is at least equal to the greater of
Tenant’s net worth at the date of this Lease or Tenant’s net worth as of the day prior to the
proposed purchase, merger, consolidation or reorganization; (4) no portion of the Building or
Premises would likely become subject to additional or different Laws as a consequence of the
proposed Transfer; (5) the Affiliate’s or Tenant’s successor’s use of the Premises shall not
conflict with the Permitted Use or any exclusive usage rights granted to any other tenant in the
Building; (6) neither the Transfer nor any consideration payable to Landlord in connection
therewith adversely affects the real estate investment trust (or pension fund or other ownership
vehicle) qualification tests applicable to Landlord or its affiliates; (7) the Affiliate or
Tenant’s successor is not and has not been involved in litigation with Landlord or any of its
affiliates; and (8) Tenant shall give Landlord written notice at least 30 days prior to the
effective date of the proposed purchase, merger, consolidation or reorganization. 26The
term “Affiliate” means any person or









25 In the event Landlord elects to terminate
this Lease pursuant to the right granted in this Subparagraph 11(B), Landlord
shall provide written notice to Tenant of its election to terminate this Lease
(“Landlord’s Termination Notice”). Tenant shall then
have the right to withdraw its request for Landlord’s consent to the
proposed Transfer (“Withdrawal Right”), provided Tenant
exercises such Withdrawal Right within 5 Business Days after receipt of
Landlord’s Termination Notice. If Tenant timely exercises its Withdrawal
Right, the Lease shall continue in full force and effect as if Tenant had not
requested Landlord’s consent to the proposed Transfer.




26 Tenant may assign its entire interest under
this Lease to General Agents Insurance Company of America, Inc., an Oklahoma
corporation, or MGA Insurance Company, Inc., a Texas corporation (either a
“Proposed Assignee”) without the consent of Landlord,
provided
conditions (1), (4), (5), (6), (7) and (8) of this Subparagraph 11(E) are
satisfied. Landlord




13









 








entity controlling, controlled by or under common control with Tenant. Tenant’s notice to
Landlord shall include information and documentation showing that each of the above conditions has
been satisfied. If requested by Landlord, the Affiliate or Tenant’s successor shall sign a
commercially reasonable form of assumption agreement.




12. Liens. Tenant shall not permit mechanic’s or other liens to be placed upon the
Property, Premises or Tenant’s leasehold interest in connection with any work or service done or
purportedly done by or for the benefit of Tenant. If a lien is so placed, Tenant shall, within
27 days of notice from Landlord of the filing of the lien, fully discharge the lien by
settling the claim which resulted in the lien or by bonding or insuring over the lien in the manner
prescribed by the applicable lien Law. If Tenant fails to discharge the lien, then, in addition to
any other right or remedy of Landlord, Landlord may bond or insure over the lien or otherwise
discharge the lien. Tenant shall, within 30 days after receipt of an invoice from Landlord,
reimburse Landlord for any amount paid by Landlord, including reasonable attorneys’ fees, to bond
or insure over the lien or discharge the lien.




13. Indemnity and Waiver of Claims.




     A. Tenant’s Indemnity. Subject to Article 15, Tenant shall hold Landlord, its
trustees, members, principals, beneficiaries, partners, officers, directors, shareholders,
employees, Mortgagee(s) (defined in Article 25) and agents harmless from, and indemnify and defend
such parties against, all liabilities, obligations, damages, penalties, claims, actions, costs,
charges and expenses, including reasonable attorneys’ fees and other professional fees that may be
imposed upon, incurred by or asserted against any of such indemnified parties that arise out of or
in connection with any damage or injury (i) occurring in the Premises, except to the extent caused
by the negligence or willful misconduct of Landlord or any of its employees, agents or contractors
(collectively, “Landlord Parties”); or (ii) occurring elsewhere in the Building or on the
Property to the extent caused by the negligence or willful misconduct of Tenant or any assignees,
subtenants and licensees claiming by, through or under Tenant, or any of their respective agents,
contractors, employees and invitees (collectively, “Tenant Parties”).



     B. Landlord’s Indemnity. Subject to Articles 15 and 20, Landlord shall hold Tenant,
its trustees, members, principals, beneficiaries, partners, officers, directors, shareholders,
employees and agents harmless from, and indemnify and defend such parties against, all liabilities,
obligations, damages, penalties, claims, actions, costs, charges and expenses, including reasonable
attorneys’ fees and other professional fees, which may be imposed upon, incurred by or asserted
against any of such indemnified parties that arise out of or in connection with any damage or
injury occurring in the Premises or the Building or on the Property to the extent caused by the
negligence or willful misconduct of any of the Landlord Parties.



14. Insurance.




     A. Tenant’s Insurance. Tenant shall maintain the following insurance (“Tenant’s
Insurance”), at its sole cost and expense: (1) commercial general liability insurance
applicable to the Premises and its appurtenances providing, on an occurrence basis, a minimum
combined single limit of 28 (coverage in excess of $1,000,000 may be provided
by way of an umbrella/excess liability policy); (2) causes of loss-special form (formerly “all
risk”) property insurance, covering all above building standard
leasehold improvements and Tenant’s trade fixtures, equipment, furniture and other personal
property within the Premises (“Tenant’s Property”) in the amount of the full replacement
cost thereof; (3) business income (formerly “business interruption”) insurance written on an actual
loss sustained form or with sufficient limits to address reasonably anticipated business
interruption losses; (4) business automobile liability insurance to cover all owned, hired and
nonowned automobiles owned or operated by Tenant providing a minimum combined single limit of
$1,000,000; (5) workers’ compensation insurance as required by the state in which the Premises is
located and in amounts as may be required by applicable statute (provided, however, if no workers’
compensation insurance is statutorily required, Tenant shall carry workers’ compensation insurance
in a minimum amount of $500,000); and (6) employer’s liability insurance in an amount of at least
$500,000









acknowledges that if Tenant assigns its interest pursuant
to this footnote, notwithstanding the provisions of Section 3.D and Rider
No. 1 to the contrary, a Proposed Assignee shall have the right to exercise
the rights contained in Section 3.D and Rider No. 1.




27 15 Business Days




28 $2,000,000




14









 








per occurrence. Any company underwriting any of Tenant’s Insurance shall have, according to
A.M. Best Insurance Guide, a Best’s rating of not less than A- and a Financial Size Category of not
less than VIII. All commercial general liability and business automobile liability insurance
policies shall name Landlord (or any successor), Landlord’s Mortgagee (if any), and other
designees of Landlord as the interest of such designees shall appear, as “additional insureds” and
shall be primary with Landlord’s policy being secondary and noncontributory. If any aggregate
limit is reduced because of losses paid to below 75% of the limit required by this Lease, Tenant
will notify Landlord in writing within 10 days of the date of reduction. All policies of Tenant’s
Insurance shall contain endorsements that the insurer(s) shall give Landlord and its designees at
least 30 days’ advance written notice of any change29, cancellation, termination or
lapse of insurance. Tenant shall provide Landlord with a certificate of insurance and all required
endorsements evidencing Tenant’s Insurance prior to the earlier to occur of the Commencement Date
or the date Tenant is provided with possession of the Premises for any reason, and upon renewals at
least 10 days prior to the expiration of the insurance coverage. All of Tenant’s Insurance
policies, endorsements and certificates will be on forms and with deductibles and self-insured
retention, if any, reasonably acceptable to Landlord. The limits of Tenant’s insurance shall not
limit Tenant’s liability under this Lease.




     B. Landlord’s Insurance. Landlord shall maintain: (1) commercial general liability
insurance applicable to the Property which provides, on an occurrence basis, a minimum combined
single limit of $5,000,000 (coverage in excess of $1,000,000 may be provided by way of an
umbrella/excess liability policy); and (2) causes of loss-special form (formerly “all risk”)
property insurance on the Building in the amount of the replacement cost thereof, as reasonably
estimated by Landlord. The foregoing insurance and any other insurance carried by Landlord may be
effected by a policy or policies of blanket insurance and shall be for the sole benefit of Landlord
and under Landlord’s sole control. Consequently, Tenant shall have no right or claim to any
proceeds thereof or any other rights thereunder.



15. Mutual Waiver of Subrogation. Notwithstanding anything in this Lease to the contrary,
Tenant waives, and shall cause its insurance carrier(s) and any other party claiming through or
under such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery,
claim, action or causes of action against all Landlord Parties and the trustees, principals,
beneficiaries, partners, officers, and directors of Landlord Parties, for any loss or damage to
Tenant’s business, any loss of use of the Premises, and any loss, theft or damage to Tenant’s
Property (including Tenant’s automobiles or the contents thereof), including all rights (by way
of subrogation or otherwise) of recovery, claims, actions or causes of action arising out of the
negligence of any Landlord Parties, which loss or damage is (or would have been, had the
insurance required by this Lease been maintained) covered by insurance. In addition, Landlord
30shall cause its insurance carrier(s) and any other party claiming through or under
such carrier(s), by way of subrogation or otherwise, to waive any and all rights of recovery,
claim, action or causes of action against all Tenant Parties and the trustees, principals,
beneficiaries, partners, officers, and directors of Tenant Parties, for any loss of or damage to or
loss of use of the Building, any additions or improvements to the Building, or any contents
thereof, including all rights (by way of subrogation or otherwise) of recovery, claims, actions
or causes of action arising out of the negligence of any Tenant Parties, which loss or damage
is (or would have been, had the insurance required by this Lease been maintained) covered by
insurance.




16. Casualty Damage.




     A. Repair or Termination by Landlord. If all or any part of the Premises are damaged
by fire or other casualty, Tenant shall immediately notify Landlord in writing. Landlord shall
have the right to terminate this Lease if: (1) the Building shall be damaged so that, in
Landlord’s judgment, substantial alteration or reconstruction of the Building shall be required
(whether or not the Premises have been damaged); (2) Landlord is not permitted by Law to rebuild
the Building in substantially the same form as existed before the fire or casualty; (3) the
Premises have been materially damaged and there is less than 31 of the Term remaining on
the date of the casualty; (4) any Mortgagee requires that the insurance proceeds be applied to the
payment of the mortgage debt; or (5) an uninsured loss of the Building occurs notwithstanding
Landlord’s compliance with Section 14.B above. Landlord may exercise its right to









29 which would have the effect of reducing any
insurance required by this Lease




30 waives, to the extent a claim against a
Landlord Party is fully covered by Landlord’s insurance (but excluding
from such waiver any deductible payable by a Landlord Party under such
insurance policy) and Landlord




31 1 year




15









 








terminate this Lease by notifying Tenant in writing within 90 days after the date of the
casualty. If Landlord does not terminate this Lease under this Section 16.A, Landlord shall
commence and proceed with reasonable diligence to repair and restore the Building and/or the
Premises to substantially the same condition as existed immediately prior to the date of damage;
provided, however, that Landlord shall only be required to reconstruct building standard leasehold
improvements existing in the Premises as of the date of damage, and Tenant shall be required to pay
the cost for restoring any other leasehold improvements. However, in no event shall Landlord be
required to spend more than the insurance proceeds received by Landlord.




     B. Timing for Repair; Termination by Either Party. If all or any portion of the
Premises is damaged as a result of fire or other casualty, 32Landlord shall, with
reasonable promptness, cause an architect or general contractor selected by Landlord to provide
Landlord and Tenant with a written estimate of the amount of time required to substantially
complete the repair and restoration of the Premises, using standard working methods
(“Completion Estimate”). If the Completion Estimate indicates that the Premises cannot be
made tenantable within 33, then regardless of anything in Section 16.A above to the
contrary, either party shall have the right to terminate this Lease by giving written notice to the
other of such election within 10 days after receipt of the Completion Estimate. Tenant, however,
shall not have the right to terminate this Lease if the fire or casualty was caused by the
negligence or intentional misconduct of any of the Tenant Parties. If neither party terminates
this Lease under this Section 16.B, then Landlord shall repair and restore the Premises in
accordance with, and subject to the limitations of, Section 16.A.34



     C. Abatement. In the event a material portion of the Premises is damaged as a result
of a fire or other casualty,35 the Base Rent36 shall abate for the portion of
the Premises that is damaged and not used by Tenant until substantial completion of the repairs and
restoration required to be made by Landlord pursuant to Section 16.A. Landlord shall not be liable
for any loss or damage to Tenant’s Property or to the business of Tenant resulting in any way from
the fire or other casualty or from the repair and restoration of the damage. Landlord and Tenant
hereby waive the provisions of any Law relating to the matters addressed in this Article, and agree
that their respective rights for damage to or destruction of the Premises shall be those
specifically provided in this Lease.



17. Condemnation. Either party may terminate this Lease if the whole or any material part
of the Premises are taken or condemned for any public or quasi-public use under Law, by eminent
domain or private purchase in lieu thereof (a “Taking”). Landlord shall also have the
right to terminate this Lease if there is a Taking of any portion of the Building or Property which
would leave the remainder of the Building unsuitable for use as an office building in a manner
comparable to the Building’s use prior to the Taking. In order to exercise its right to terminate
this Lease under this Article 17, Landlord or Tenant, as the case may be, must provide written
notice of termination to the other within 45 days after the terminating party first receives notice
of the Taking. Any such termination shall be effective as of the date the physical taking of the
Premises or the portion of the Building or Property occurs. If this Lease is not terminated, the
Rentable Square Footage of the Building, the Rentable Square Footage of the Premises and Tenant’s
Pro Rata Share shall, if applicable, be appropriately adjusted by Landlord. In addition, Base Rent
for any portion of the Premises taken or condemned shall be abated during the unexpired Term
effective when the physical taking of the portion of the Premises occurs. All compensation awarded
for a Taking, or sale proceeds, shall be the property of Landlord, any right to receive
compensation or proceeds being expressly waived by Tenant. However, Tenant may file a separate
claim at its sole cost and expense for Tenant’s Property (excluding above building standard
leasehold improvements) and Tenant’s reasonable relocation expenses, provided the filing of such
claim does not diminish the award which would otherwise be receivable by Landlord.










32 or access thereto is denied (including
without limitation failure of elevator service),




33 225 days from the date of damage




34 If Landlord fails to complete such repairs
to the Premises within 225 days from the date of damage, then Tenant shall have
the right to terminate this Lease following 30 days written notice given after
such 225 day period; provided, however, if Landlord completes such repairs
prior to the expiration of the 30 day notice period, Tenant’s right to
terminate shall be null and void.




35 or access thereto is denied (including
without limitation failure of elevator service),




36 and Tenant’s Pro Rata Share of
Operating Expenses and Electrical Costs




16









 








18. Events of Default. Tenant shall be considered to be in default under this Lease upon
the occurrence of any of the following events of default:




     A. Tenant’s failure to pay when due all or any portion of the Rent (“Monetary
Default”)37.



     B. Tenant’s failure to perform any of the obligations of Tenant in the manner set forth in
Articles 14, 23, 24 or 25 (a “Time Sensitive Default”).



     C. Tenant’s failure (other than a Monetary Default or a Time Sensitive Default) to comply with
any term, provision or covenant of this Lease, if the failure is not cured within 38
days after written notice to Tenant. However, if Tenant’s failure to comply cannot reasonably be
cured within 39 days, Tenant shall be allowed additional time (not to exceed an
additional 40 days) as is reasonably necessary to cure the failure so long as: (1)
Tenant commences to cure the failure within the 41 day period following Landlord’s
initial written notice, and (2) Tenant diligently pursues a course of action that will cure the
failure and bring Tenant back into compliance with this Lease. However, if Tenant’s failure to
comply creates a hazardous condition, the failure must be cured immediately upon notice to Tenant.
In addition, if Landlord provides Tenant with notice of Tenant’s failure to comply with the same
specific term, provision or covenant of this Lease on more than two (2) occasions during any 12
month period, Tenant’s subsequent violation of the same term, provision or covenant shall, at
Landlord’s option, be deemed an incurable event of default by Tenant.



     D. Tenant or any Guarantor becomes insolvent, files a petition for protection under the U.S.
Bankruptcy Code (or similar Law) or a petition is filed against Tenant or any Guarantor under such
Laws and is not dismissed within 45 days after the date of such filing, makes a transfer in fraud
of creditors or makes an assignment for the benefit of creditors, or admits in writing its
inability to pay its debts when due.



     E. The leasehold estate is taken by process or operation of Law.



     F. In the case of any ground floor or retail tenant, or any other tenant whose space is
visible from the Common Areas or elevator lobby areas of the Building, Tenant does not take
possession of, or abandons or vacates all or a substantial portion of the Premises.



     G. Tenant is in default beyond any notice and cure period under any other lease or agreement
with Landlord, including any lease or agreement for parking.



19. Remedies.




     A. Landlord’s Remedies. Upon any default, Landlord shall have the right without
notice or demand (except as provided in Article 18) to pursue any of its rights and remedies at Law
or in equity, including any one or more of the following remedies:




	 	(1)  	Terminate this Lease, in which case Tenant shall immediately surrender the
Premises to Landlord. If Tenant fails to surrender the Premises, Landlord may, in
compliance with applicable Law and without prejudice to any other right or remedy,
enter upon and take possession of the Premises and expel and remove Tenant, Tenant’s
Property and any parties occupying all or any part of the Premises. Tenant shall pay
Landlord on demand the amount of all past due Rent, all Costs of Reletting (defined
below) and any deficiency that may arise from reletting or the failure to relet the
Premises. “Costs of Reletting” shall include commercially reasonable costs,
losses and expenses incurred by Landlord in reletting all or any portion of the
Premises, including the cost of removing and storing Tenant’s furniture, trade
fixtures, equipment, inventory or other property, repairing and/or demolishing the
Premises, removing and/or replacing Tenant’s signage and other











37 ; provided that the first such failure
during any consecutive 12 month period shall not be an event of default if
Tenant pays the amount due within 5 days after written notice from Landlord




38 30




39 30




40 30




41 30




17









 









	 	   	fixtures, making the Premises ready for a new tenant, including the cost of
advertising, commissions, architectural fees, legal fees and leasehold improvements
(even if amortized over a new lease term which exceeds the balance of the Term), and
any allowances and/or concessions provided by Landlord.
	 
	 	(2)  	Terminate Tenant’s right to possession of the Premises and change the locks,
without judicial process, and, in compliance with applicable Law, expel and remove
Tenant, Tenant’s Property and any parties occupying all or any part of the Premises.
If Landlord terminates Tenant’s possession of the Premises under this Section 19.A(2),
Landlord shall have no obligation to post any notice and Landlord shall have no
obligation whatsoever to tender to Tenant a key for new locks installed in the
Premises. Landlord may (but shall not be obligated to) relet all or any part of the
Premises, without notice to Tenant, for a term that may be greater or less than the
balance of the Term and on such conditions (which may include concessions, free rent
and alterations of the Premises) and for such uses as Landlord in its absolute
discretion shall determine. Landlord may collect and receive all rents and other
income from the reletting. Tenant shall pay Landlord on demand all past due Rent, all
Costs of Reletting and any deficiency arising from the reletting or failure to relet
the Premises. Landlord shall not be responsible or liable for the failure to relet all
or any part of the Premises or for the failure to collect any Rent. The re-entry or
taking of possession of the Premises shall not be construed as an election by Landlord
to terminate this Lease unless a written notice of termination of this Lease is given
to Tenant.
	 
	 	(3)  	Cure such event of default for Tenant at Tenant’s expense (plus a 15%
administrative fee).
	 
	 	(4)  	Withhold or suspend payment of sums Landlord would otherwise be obligated to
pay to Tenant under this Lease or any other agreement.
	 
	 	(5)  	Require all future payments to be made by cashier’s check, money order or wire
transfer after the first time any check is returned for insufficient funds, or the
second time any sum due hereunder is more than five (5) days late.
	 
	 	(6)  	In lieu of calculating damages under Sections 19.A(1) or 19.A(2) above,
Landlord may elect to receive as damages the sum of (a) all Rent accrued through the
date of termination of this Lease or Tenant’s right to possession, and (b) an amount
equal to the total Rent that Tenant would have been required to pay for the remainder
of the Term discounted to present value at the Prime Rate (defined below) then in
effect, minus the then present fair rental value of the Premises for the remainder of
the Term, similarly discounted, after deducting all anticipated Costs of Reletting.
For purposes hereof, the “Prime Rate” shall be the per annum interest rate
publicly announced by a federally insured bank selected by Landlord in the state in
which the Building is located as such bank’s prime or base rate.
	 
	 	(7)  	Recover such other amounts in addition to or in lieu of the foregoing as may be
permitted from time to time by applicable Law, including any other amount necessary to
compensate Landlord for all the detriment proximately caused by Tenant’s failure to
perform its obligations under this Lease or which in the ordinary course of events
would be likely to result therefrom. Tenant shall hold Landlord, its trustees,
members, principals, beneficiaries, partners, officers, directors, shareholders,
employees, Mortgagee(s) and agents harmless from and indemnify and defend such parties
against, all liabilities, obligations, damages, penalties, claims, actions, costs,
charges and expenses, including reasonable attorneys’ fees and other professional fees,
which may be imposed upon, incurred by or asserted against any of such indemnified
parties that arise out of or in connection with a breach of this Lease, specifically
including any violation of applicable Laws or Contamination (defined in Article 30)
caused by a Tenant Party.





     B. Tenant Not Relieved from Liabilities. Unless expressly provided in this Lease, the
repossession or re-entering of all or any part of the Premises shall not relieve Tenant of its
liabilities and obligations under this Lease. No right or remedy of Landlord shall be exclusive of
any other right or remedy. Each right and remedy shall be cumulative and in addition to any other
right and remedy now or subsequently available to Landlord at Law or in equity. If Tenant fails to
pay any amount when due hereunder, Landlord shall be entitled to receive interest on any unpaid
item of Rent at a rate equal to the



18









 







lesser of 18% per annum or the highest rate permitted by Law. In addition, if Tenant fails to
pay any item or installment of Rent when due, Tenant shall pay Landlord an administrative fee equal
to 5% of the past due Rent. However, in no event shall the charges permitted under this Section
19.B or elsewhere in this Lease, to the extent they are considered interest under applicable Law,
exceed the maximum lawful rate of interest. Receipt by Landlord of Tenant’s keys to the Premises
shall not constitute an acceptance or surrender of the Premises.



     C. Mitigation of Damages. Upon termination of Tenant’s right to possess the Premises,
Landlord shall, only to the extent required by Law, use objectively reasonable efforts to mitigate
damages by reletting the Premises. Landlord shall not be deemed to have failed to do so if
Landlord refuses to lease the Premises to a prospective new tenant with respect to whom Landlord
would be entitled to withhold its consent pursuant to Section 11.A, or who (1) is an affiliate,
parent or subsidiary of Tenant; (2) is not acceptable to any Mortgagee of Landlord; (3) requires
improvements to the Premises to be made at Landlord’s expense42; or (4) is unwilling to
accept lease terms then proposed by Landlord, including: (a) leasing for a shorter or longer term
than remains under this Lease; (b) re-configuring or combining the Premises with other space, (c)
taking all or only a part of the Premises; and/or (d) changing the use of the Premises.
Notwithstanding Landlord’s duty to mitigate its damages as provided herein, Landlord shall not be
obligated to give any priority to reletting Tenant’s space in connection with its leasing of space
in the Building or any complex of which the Building is a part.



     D. Landlord’s Lien. To secure Tenant’s obligations under this Lease, Tenant grants
Landlord a contractual security interest on all of Tenant’s furniture, fixtures and equipment now
or hereafter situated in the Premises and all proceeds therefrom, including insurance proceeds
(collectively, “Collateral”). No Collateral shall be removed from the Premises without
Landlord’s prior written consent until all of Tenant’s obligations are fully satisfied (except in
the ordinary course of business and then only if replaced with items of same or greater value and
quality). Upon any event of default, Landlord may, to the fullest extent permitted by Law and in
addition to any other remedies provided herein, enter upon the Premises and take possession of any
Collateral without being held liable for trespass or conversion, and sell the same at public or
private sale, after giving Tenant at least 5 days written notice (or more if required by Law) of
the time and place of such sale. Such notice may be sent with or without return receipt requested.
Unless prohibited by Law, any Landlord Party may purchase any Collateral at such sale. The
proceeds from such sale, less Landlord’s expenses, including reasonable attorneys’ fees and other
expenses, shall be credited against Tenant’s obligations. Any surplus shall be paid to Tenant (or
as otherwise required by Law) and any deficiency shall be paid by Tenant to Landlord upon demand.
Upon request, Tenant shall execute and deliver to Landlord a financing statement sufficient to
perfect the foregoing security interest, or Landlord may file a copy of this Lease as a financing
statement, as permitted under Law.43



20. Limitation of Liability. Notwithstanding anything to the contrary contained in this
Lease, the liability of Landlord (and of any successor Landlord) to Tenant (or any person or entity
claiming by, through or under Tenant) shall be limited to the interest of Landlord in the
Property44. Tenant shall look solely to Landlord’s interest in the Property for the
recovery of any judgment or award against Landlord. No Landlord Party shall be personally liable
for any judgment or deficiency. Before filing suit for an alleged default by Landlord, Tenant
shall give Landlord and the Mortgagee(s) (defined in Article 25) whom Tenant has been notified hold
Mortgages (defined in Article 25) on the Property, Building or Premises, notice and reasonable time
to cure the alleged default. Tenant hereby waives all claims against all Landlord Parties for
consequential, special or punitive damages allegedly suffered by any Tenant Parties, including lost
profits and business interruption.










42 which improvements are in excess of those
being then offered by the Landlord to prospective tenants in the Building.




43 E. Landlord Defaults and Tenant
Remedies. Except as otherwise provided in this Lease and specifically
subject to Sections 3.B and 20, if Landlord fails in the performance of any of
Landlord’s obligations under this Lease and such failure continues for 30 days
after Landlord’s receipt of written notice thereof from Tenant (or an
additional reasonable time after such receipt if (A) such failure cannot be
cured within such 30 day period, and (B) Landlord commences curing such failure
within such 30 day period and thereafter diligently pursues the curing of such
failure), then Tenant shall be entitled to exercise any remedies that Tenant
may have at law or in equity.




44 , which shall include (i) the unencumbered
proceeds of sale received upon execution of a judgment in favor of Tenant and
levy thereon against the right, title, and interest of Landlord in the
Property, (ii) the unencumbered rents or other income from the Property
receivable by Landlord, and (iii) the unencumbered consideration received by
Landlord from the sale or other disposition of all or any part of
Landlord’s right, title, and interest in the Property




19









 








21. No Waiver. Neither party’s failure to declare a default immediately upon its
occurrence or delay in taking action for a default shall constitute a waiver of the default, nor
shall it constitute an estoppel. Neither party’s failure to enforce its rights for a default shall
constitute a waiver of that party’s rights regarding any subsequent default.




22. Tenant’s Right to Possession. Provided Tenant pays the Rent and fully performs all of
its other covenants and agreements under this Lease, Tenant shall have the right to occupy the
Premises without hindrance from Landlord or any person lawfully claiming through Landlord, subject
to the terms of this Lease, all Mortgages, insurance requirements and applicable Law. This
covenant and all other covenants of Landlord shall be binding upon Landlord and its successors only
during its or their respective periods of ownership of the Building, and shall not be a personal
covenant of any Landlord Parties.




23. Relocation. 45




24. Holding Over. Except for any permitted occupancy by Tenant under Article 29, if Tenant
or any party claiming by through or under Tenant fails to surrender the Premises at the expiration
or earlier termination of this Lease, the continued occupancy of the Premises shall be that of a
tenancy at sufferance. Tenant shall pay an amount (on a per month basis without reduction for
partial months during the holdover) equal to 200% of the greater of: (1) the sum of the Base Rent
and Tenant’s Pro Rata Share of Excess Operating Expenses due for the period immediately preceding
the holdover; or (2) the fair market gross rental for the Premises as reasonably determined by
Landlord46. Tenant shall otherwise continue to be subject to all of Tenant’s
obligations under this Lease. No holdover by Tenant or payment by Tenant after the expiration or
early termination of this Lease shall be construed to extend the Term or prevent Landlord from
immediate recovery of possession of the Premises by summary proceedings or otherwise. In addition
to the payment of the amounts provided above, if Landlord is unable to deliver possession of the
Premises to a new tenant, or to perform improvements for a new tenant, as a result of Tenant’s
holdover and Tenant fails to vacate the Premises within 15 days after Landlord notifies Tenant of
Landlord’s inability to deliver possession, or perform improvements, such failure shall constitute
a Time Sensitive Default hereunder; and Tenant shall be liable to Landlord for, and shall protect
Landlord from and indemnify and defend Landlord against, all losses and damages, including any
claims made by any succeeding tenant resulting from such failure to vacate, and any consequential
damages that Landlord suffers from the holdover.




25. Subordination to Mortgages; Estoppel Certificate. Tenant accepts this Lease subject
and subordinate to any mortgage(s), deed(s) of trust, ground lease(s) or other lien(s) now or
subsequently affecting the Premises, the Building or the Property, and to renewals, modifications,
refinancings and extensions thereof (collectively, a “Mortgage”). The party having the
benefit of a Mortgage shall be referred to as a “Mortgagee.” This clause shall be
self-operative, but upon request from a Mortgagee, Tenant shall execute a commercially reasonable
subordination agreement in favor of the Mortgagee. In lieu of having the Mortgage be superior to
this Lease, a Mortgagee shall have the right at any time to subordinate its Mortgage to this Lease.
If requested by a successor-in-interest to all or a part of Landlord’s interest in this Lease,
Tenant shall, without charge, attorn to the successor-in-interest. Tenant shall, within 5 days
after receipt of a written request from Landlord, execute and deliver an estoppel certificate to
those parties as are reasonably requested by Landlord (including a Mortgagee or prospective
purchaser). The estoppel certificate shall include a statement certifying that this Lease is
unmodified (except as identified in the estoppel certificate) and in full force and effect,
describing the dates to which Rent and other charges have been paid, representing that, to the best
of Tenant’s knowledge, there is no default (or stating with specificity the nature of the alleged
default) and certifying other matters with respect to this Lease that may reasonably be requested.
Tenant’s failure to provide any estoppel certificate within the 5 day period specified above, and
the continuation of such failure for a period of 5 days after Landlord delivers a second written
notice requesting same, shall constitute a Time Sensitive Default under this Lease.




26. Attorneys’ Fees. If either party institutes a suit against the other for violation of
or to enforce any covenant or condition of this Lease, or if either party intervenes in any suit in
which the other is a










45 Intentionally Omitted.




46 ; provided however, so long as no uncured
event of default exists under the Lease, for the first 30 days of any such
holdover Tenant shall pay only 150% of such greater amount




20









 








party to enforce or protect its interest or rights, the prevailing party shall be entitled to all
of its costs and expenses, including reasonable attorneys’ fees.




27. Notice. If a demand, request, approval, consent or notice (collectively, a
“notice”) shall or may be given to either party by the other, the notice shall be in
writing and delivered by hand or sent by registered or certified mail with return receipt
requested, or sent by overnight or same day courier service, or sent by facsimile, at the party’s
respective Notice Address(es) set forth in Article 1, except that if Tenant has vacated the
Premises (or if the Notice Address for Tenant is other than the Premises, and Tenant has vacated
such address) without providing Landlord a new Notice Address, Landlord may serve notice in any
manner described in this Article or in any other manner permitted by Law. Each notice shall be
deemed to have been received or given on the earlier to occur of actual delivery (which, in the
case of delivery by facsimile, shall be deemed to occur at the time of delivery indicated on the
electronic confirmation of the facsimile) or the date on which delivery is first refused, or, if
Tenant has vacated the Premises or the other Notice Address of Tenant without providing a new
Notice Address, three (3) days after notice is deposited in the U.S. mail or with a courier service
in the manner described above. Either party may, at any time, change its Notice Address by giving
the other party written notice of the new address in the manner described in this Article.




28. Reserved Rights. This Lease does not grant any rights to light or air over or about
the Building. Landlord excepts and reserves exclusively to itself the use of: (A) roofs, (B)
telephone, electrical and janitorial closets, (C) equipment rooms, Building risers or similar areas
that are used by Landlord for the provision of Building services, (D) rights to the land and
improvements below the floor of the Premises, (E) the improvements and air rights above the
Premises, (F) the improvements and air rights outside the demising walls of the Premises, (G) the
areas within the Premises used for the installation of utility lines and other installations
serving occupants of the Building, and (H) any other areas designated from time to time by Landlord
as service areas of the Building. Landlord has the right to change the Building’s name or address.
Landlord also has the right to make such other changes to the Property and Building as Landlord
deems appropriate, provided the changes do not materially affect Tenant’s ability to use the
Premises for the Permitted Use. Landlord shall also have the right (but not the obligation) to
temporarily close the Building if Landlord reasonably determines that there is an imminent danger
of significant damage to the Building or of personal injury to Landlord’s employees or the
occupants of the Building. The circumstances under which Landlord may temporarily close the
Building shall include, without limitation, electrical interruptions, hurricanes and civil
disturbances. A closure of the Building under such circumstances shall not constitute a
constructive eviction nor entitle Tenant to an abatement or reduction of Rent.




29. Surrender of Premises. All improvements to the Premises (collectively, “Leasehold
Improvements”) shall be owned by Landlord and shall remain upon the Premises without
compensation to Tenant. At the expiration or earlier termination of this Lease or Tenant’s right
of possession, Tenant shall remove Tenant’s Removable Property (defined below) from the Premises,
and quit and surrender the Premises to Landlord, broom clean, and in good order, condition and
repair, ordinary wear and tear excepted. As used herein, the term “Tenant’s Removable
Property” shall mean: (A) Cable installed by or for the benefit of Tenant and located in the
Premises or other portions of the Building; (B) any Leasehold Improvements that are performed by or
for the benefit of Tenant and, in Landlord’s reasonable judgment, are of a nature that would
require removal and repair costs that are materially in excess of the removal and repair costs
associated with standard office improvements (“Special Installations”); and (C) Tenant’s
personal property. 47 Notwithstanding the foregoing, Landlord may, in Landlord’s sole
discretion and at no cost to Landlord, require Tenant to leave any of its Special Installations in
the Premises. If Tenant fails to remove any of Tenant’s Removable Property (other than Special
Installations which Landlord has designated to remain in the Premises) within 2 days after the
termination of this Lease or of Tenant’s right to possession, Landlord, at Tenant’s sole cost and
expense, shall be entitled (but not obligated) to remove and store Tenant’s Removable Property.
Landlord shall not be responsible for the value, preservation or safekeeping of Tenant’s Removable
Property. Tenant shall pay Landlord, upon demand, the expenses and storage charges incurred for
Tenant’s Removable Property. To the fullest extent permitted by applicable Law, any unused portion
of Tenant’s Security Deposit may be applied to offset Landlord’s costs set forth in the preceding
sentence. In addition, if Tenant fails to remove Tenant’s Removable Property from the Premises or
storage, as the case may be, within 30 days after written notice, Landlord may deem all or any part
of Tenant’s Removable Property to be abandoned, and title to Tenant’s Removable Property (except
with respect to any Hazardous Material [defined in Article 30]) shall be deemed to be immediately
vested in Landlord. Except for










47 Tenant shall have no obligation to remove
any property or equipment owned by Landlord.




21









 








Special Installations designated by Landlord to remain in the Premises, Tenant’s Removable Property
shall be removed by Tenant before the Expiration Date; provided that upon Landlord’s prior written
consent (which must be requested by Tenant at least 30 days in advance of the Expiration Date and
which shall not be unreasonably withheld), Tenant may remain in the Premises for up to 5 days after
the Expiration Date for the sole purpose of removing Tenant’s Removable Property. Tenant’s
possession of the Premises for such purpose shall be subject to all of the terms and conditions of
this Lease, including the obligation to pay Base Rent and Tenant’s Pro Rata Share of Excess
Operating Expenses on a per diem basis at the rate in effect for the last month of the Term. In
the event this Lease is terminated prior to the Expiration Date, Tenant’s Removable Property
(except for Special Installations designated by Landlord to remain in the Premises) shall be
removed by Tenant on or before such earlier date of termination. Tenant shall repair damage caused
by the installation or removal of Tenant’s Removable Property.




30. Hazardous Materials. No Hazardous Material (defined below) (except for de minimis
quantities of household cleaning products and office supplies used in the ordinary course of
Tenant’s business at the Premises and that are used, kept and disposed of in compliance with Laws)
shall be brought upon, used, kept or disposed of in or about the Premises or the Property by any
Tenant Parties or any of Tenant’s transferees, contractors or licensees without Landlord’s prior
written consent, which consent may be withheld in Landlord’s sole and absolute discretion.
Tenant’s request for such consent shall include a representation and warranty by Tenant that the
Hazardous Material in question (A) is necessary in the ordinary course of Tenant’s business, and
(B) shall be used, kept and disposed of in compliance with all Laws. If Contamination (defined
below) occurs as a result of an act or omission of any Tenant Party, Tenant shall, at its expense,
promptly take all actions necessary to comply with Laws and to return the Premises, the Building,
the Property and/or any adjoining or affected property to its condition prior to such
Contamination, subject to Landlord’s prior written approval of Tenant’s proposed methods, times and
procedures for remediation. Tenant shall provide Landlord reasonably satisfactory evidence that
such actions shall not adversely affect any Landlord Party or contaminated property. Landlord may
require that a representative of Landlord be present during any such actions and/or that such
actions be taken after business hours. If Tenant fails to take and diligently prosecute any
necessary remediation actions within 30 days after written notice from Landlord or an authorized
governmental agency (or any shorter period required by any governmental agency) that such
remediation is required, Landlord may take such actions and Tenant shall reimburse Landlord
therefor, plus a 15% administrative fee, within 30 days of Landlord’s invoice. For purposes of
this Article 30, a “Hazardous Material” is any substance (Y) the presence of which
requires, or may hereafter require, notification, investigation or remediation under any Laws; or
(Z) which is now or hereafter defined, listed or regulated by any governmental authority as a
“hazardous waste”, “extremely hazardous waste”, “solid waste”, “toxic substance”, “hazardous
substance”, “hazardous material” or “regulated substance”, or otherwise regulated under any Laws.
“Contamination” means any release or disposal of a Hazardous Material in, on, under, at or
from the Premises, the Building or the Property which may result in any liability, fine, use
restriction, cost recovery lien, remediation requirement, or other government or private party
action or imposition affecting any Landlord Party. For purposes of this Lease, claims arising from
Contamination shall include, but not be limited to, diminution in value, restrictions on use,
adverse impact on leasing space, and all costs of site investigation, remediation, removal and
restoration work, including response costs under CERCLA and similar statutes. Landlord advises
Tenant that based on an asbestos survey report for the building prepared by Law Engineering and
Environmental Services, Inc., dated September 19, 1997, non-friable asbestos containing materials
are present in the Building in pipe insulation wrap with coating and mastic. In addition, based on
a previous asbestos survey performed by Maxim Engineers, Incorporated and reviewed by Law
Engineering and Environmental Services, Inc., non-friable asbestos-containing materials are present
on the roof of the Building in black aggregate material. Because any tenant alterations or other
work in the Premises could disturb such materials and possibly release asbestos fibers into the
air, Tenant must obtain Landlord prior written approval before undertaking any such projects that
may affect such materials, notwi
thstanding anything to the contrary set forth in Section 9.C or
elsewhere in the Lease.




31. Miscellaneous.




     A. Governing Law; Jurisdiction and Venue; Severability; Paragraph Headings. This
Lease and the rights and obligations of the parties shall be interpreted, construed and enforced in
accordance with the Laws of the state in which the Building is located. All obligations under this
Lease are performable in the county or other jurisdiction where the Building is located, which
shall be venue for all legal actions. If any term or provision of this Lease shall to any extent
be invalid or unenforceable, the remainder of this Lease shall not be affected, and each provision
of this Lease shall



22









 







be valid and enforced to the fullest extent permitted by Law. The headings and titles to the
Articles and Sections of this Lease are for convenience only and shall have no effect on the
interpretation of any part of this Lease. The word “including” shall not be construed
restrictively to limit or exclude other items not listed.



     B. Recording. Tenant shall not record this Lease or any memorandum without Landlord’s
prior written consent.



     C. Force Majeure. Whenever a period of time is prescribed for the taking of an action
by Landlord or Tenant, the period of time for the performance of such action shall be extended by
the number of days that the performance is actually delayed due to strikes, acts of God, shortages
of labor or materials, war, civil disturbances and other causes beyond the reasonable control of
the performing party (“Force Majeure”). However, events of Force Majeure shall not extend
any period of time for the payment of Rent or other sums payable by either party or any period of
time for the written exercise of an option or right by either party.



     D. Transferability; Release of Landlord. Landlord shall have the right to transfer
and assign, in whole or in part, all of its rights and obligations under this Lease and in the
Building and/or Property, and upon such transfer Landlord shall be released from any further
obligations arising hereunder after the date of the transfer, and Tenant agrees to look solely to
the successor in interest of Landlord for the performance of such obligations, provided the
successor in interest assumes in writing all obligations of Landlord hereunder from and after the
date of such transfer.



     E. Brokers. Tenant represents that it has not dealt directly with any broker in
connection with this Lease. Tenant and Landlord shall each indemnify the other against all costs,
expenses, attorneys’ fees, liens and other liability for commissions or other compensation claimed
by any broker or agent claiming the same by, through or under the indemnifying party, other than
those specifically identified above, if any.



     F. Authority; Joint and Several Liability. Landlord covenants, warrants and
represents that: (1) each individual executing, attesting and/or delivering this Lease on behalf
of Landlord is authorized to do so on behalf of Landlord; (2) this Lease is binding upon and
enforceable against Landlord; and (3) Landlord is duly organized and legally existing in the state
of its organization and is qualified to do business in the state in which the Premises are located.
Similarly, Tenant covenants, warrants and represents that: (a) each individual executing,
attesting and/or delivering this Lease on behalf of Tenant is authorized to do so on behalf of
Tenant; (b) this Lease is binding upon and enforceable against Tenant; and (c) Tenant is duly
organized and legally existing in the state of its organization and is qualified to do business in
the state in which the Premises are located. If there is more than one Tenant, or if Tenant is
comprised of more than one party or entity, the obligations imposed upon Tenant shall be joint and
several obligations of all the parties and entities. Notices, payments and agreements given or
made by, with or to any one person or entity shall be deemed to have been given or made by, with
and to all of them.



     G. Time is of the Essence; Relationship; Successors and Assigns. Time is of the
essence with respect to Tenant’s performance of its obligations and the exercise of any expansion,
renewal or extension rights or other options granted to Tenant. This Lease shall create only the
relationship of landlord and tenant between the parties, and not a partnership, joint venture or
any other relationship. This Lease and the covenants and conditions in this Lease shall inure only
to the benefit of and be binding only upon Landlord and Tenant and their permitted successors and
assigns.



     H. Survival of Obligations. The expiration of the Term, whether by lapse of time or
otherwise, shall not relieve either party of any obligations which accrued prior to or which may
continue to accrue after the expiration or early termination of this Lease. Without limiting the
scope of the prior sentence, it is agreed that Tenant’s obligations under Sections 4.A, 4.B, and
4.C, and under Articles 6, 8, 12, 13, 19, 24, 29 and 30 shall survive the expiration or early
termination of this Lease.



     I. Binding Effect. Landlord has delivered a copy of this Lease to Tenant for Tenant’s
review only, and the delivery of it does not constitute an offer to Tenant or an option. This
Lease shall not be effective against any party hereto until an original copy of this Lease has been
signed by such party and delivered to the other party.



     J. Full Agreement; Amendments. This Lease contains the parties’ entire agreement
regarding the subject matter hereof. All understandings, discussions, and agreements previously
made



23









 







between the parties, written or oral, are superseded by this Lease, and neither party is
relying upon any warranty, statement or representation not contained in this Lease. This Lease may
be modified only by a written agreement signed by Landlord and Tenant. The exhibits and riders
attached hereto are incorporated herein and made a part of this Lease for all purposes.



     K. Tax Waiver. Tenant waives all rights pursuant to all Laws to protest appraised
values or receive notice of reappraisal regarding the Property (including Landlord’s personalty),
irrespective of whether Landlord contests same.



     L. Waiver of Consumer Rights.48



     M. Method of Calculation. Landlord and Tenant, being knowledgeable and experienced in
commercial transactions, agree the provisions of the Lease for determining charges, amounts and
additional rent payable by Tenant (including, without limitation, those allocating to Tenant a
share of taxes, electrical charges and expenses) are commercially reasonable and valid even though
such methods may not state a precise mathematical formula for determining such charges.
ACCORDINGLY, TENANT VOLUNTARILY AND KNOWINGLY WAIVES ALL RIGHTS AND BENEFITS OF TENANT UNDER
SECTION 93.012 OF THE TEXAS PROPERTY CODE, AS SUCH SECTION NOW EXISTS OR AS MAY BE HEREAFTER
AMENDED OR SUCCEEDED.



     N. Signage Rights.



          (1) During the initial Term, but only so long as (a) Tenant occupies at least 20,585 Rentable
Square Feet in the Building and (b) no event of default remains uncured beyond the expiration of
any applicable cure period under the Lease, Tenant shall have the right to install and maintain, at
Tenant’s sole expense, exterior “eyebrow” signage identifying Tenant’s name on the spandrels above
the ground-floor lobby in two locations on the exterior façade of the Building as shown on
Exhibit F attached hereto (the “Signage”). The signage rights granted herein are personal
to the specific party originally identified as the “Tenant” under the Lease and may not be
transferred, shared or assigned in whole or in part to any assignee, subtenant or other tenant in
the Building, without Landlord’s prior written consent. Notwithstanding the foregoing, if as a
result of (x) a change in Tenant’s logo or a name change unrelated to a change in the entity, or
(y) a Permitted Transfer, or (z) an assignment to a Proposed Assignee, Tenant, the Permitted
Transferee or the Proposed Assignee shall have the right, at its sole expense, to change the
Signage in order to reflect the new name and or logo of Tenant, the Permitted Transferee or the
Proposed Assignee provided that any changes in Signage will be subject to the same approvals and
permits required in connection with the installation of the initial Signage by Tenant as specified
in (2) and (3) below. Landlord’s approval of such change in signage shall not be unreasonably
withheld.




     (2) The exact location, size, material, construction and design of the Signage shall be
subject to (a) the prior written approval of Landlord, in its sole discretion (but such approval
will not be unreasonably withheld so long as the Signage is not materially different from the
Signage as shown on Exhibit F); (b) compliance with applicable Laws; and (c) if required,
the prior written approval of the architectural review committee (the “ARC”) under the restrictive
covenants applicable to the Property, as the same may be amended or modified from time to time (the
“Covenants”). Tenant shall not make any subsequent alterations in or additions to the Signage
without in each instance first complying with the foregoing requirements. Tenant acknowledges that
Landlord has made no representation that any Signage proposed by Tenant will comply with applicable
Law or the Covenants.



     (3) Tenant, at its expense, shall obtain all necessary governmental permits and certificates
required for the installation and use of the Signage, as well as any approvals necessary under the
Covenants. All construction, installation, alterations and repair and maintenance work shall be
performed in a good and workmanlike manner in compliance with the Building’s rules and regulations
and shall not interfere with, delay or otherwise impose any additional expenses upon Landlord in
the maintenance and operation of the Building or upon the use and enjoyment by other tenants of
their respective premises in the Building. Tenant shall maintain the Signage and keep it in good
working order repair and shall timely pay or cause to be paid all costs for work done by Tenant or
caused to be done by Tenant related to the Signage, in accordance with the provisions of Section
9.C of this Lease.



     (4) Upon the Expiration Date or earlier termination of Tenant’s right to possess the
Premises, or if Tenant otherwise fails at any time to comply with the requirements of this
Paragraph, Tenant shall, at









48 Intentionally Omitted.




24









 








its sole expense, promptly remove all such Signage which shall become the property of Tenant, and
repair any damage caused by the Signage or its removal. However, if the Signage is not removed
from the Property within ten (10) business days after Landlord’s notice, then the Signage shall
conclusively be deemed to have been abandoned by Tenant and may be removed, appropriated, sold,
stored, destroyed or otherwise disposed of by Landlord without further notice to Tenant or any
other person and without obligation to account therefor. Tenant shall pay Landlord all expenses
incurred in connection with any such removal, appropriation, sale, storage, destruction and
disposition of the Signage and the repair of any damage caused by the Signage or its removal.




     O. Building Directory Signage. Landlord agrees that so long as it maintains any type
of Building directory signage generally identifying the tenants of the Building (“Directory
Signage”) located in the lobby of, or elsewhere in the Building, Tenant shall have the right to
have its name placed on such Directory Signage along with other tenants, with the size, color, and
other aesthetics of both the Directory Signage and Tenant’s designation thereon to be determined by
Landlord in its sole and absolute discretion. Subject to the foregoing, Landlord will provide
Tenant with building standard Directory Signage at Landlord’s cost and expense.



[Signatures appear on next page]




25









 








Landlord and Tenant have executed this Lease as of the Effective Date specified below Landlord’s
signature.




	 	 	 	 	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	CRESCENT REAL ESTATE FUNDING VIII, L.P.,

a Delaware limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	CRE Management VIII, LLC,

a Delaware limited liability company,

its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	Crescent Real Estate Equities, Ltd.

a Delaware corporation,

its Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	

	 	 	 	 	 	By:
	 	/s/ Joe D. Dobbs, CPM, RPA	 	 
	

	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Name: Joe D. Dobbs, CPM®, RBA®	 	 
	 	 	 	 	 	 	Title: Senior Vice President, Property

Management, Dallas Region	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	     Effective Date: May 3, 2005	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	GAINSCO, INC.,

a Texas corporation	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	By:	 	/s/ Glenn W. Anderson	 	 
	 	 	 	 	 	 	 
	 	 	Name:	 	Glenn W. Anderson	 	 
	 	 	Title:	 	President and CEO	 	 







26









 


[EXHIBITS OMITTED]