Document:

Exhibit 1026

		

			 

		

		
			Exhibit 10.26
		

		
			 
		

		
			LEASE AGREEMENT
		

		
			LIBERTY PROPERTY LIMITED PARTNERSHIP
		

		
			Landlord
		

		
			AND
		

		
			WAGEWORKS, INC.
		

		
			Tenant
		

		
			AT
		

		
			1850 West Rio Salado Parkway, Tempe, Arizona
		

		
			 
		

		

		

		 

		

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		THIS LEASE AGREEMENT is made by and between LIBERTY PROPERTY LIMITED PARTNERSHIP, a Pennsylvania limited partnership (“Landlord”) and WAGEWORKS, INC., a Delaware corporation (“Tenant”), and is dated as of the date on which this Lease has been fully executed by Landlord and Tenant (the “Effective Date”).
		

			
	
			
				 1.
			Basic Lease Terms and Definitions.

			
	
			
				 (a)
			Premises:  From and after the Commencement Date, consisting of approximately 76,162 rentable square feet, comprising the entire first floor (Suite 100) of the Building (the “Premises”) as shown on Exhibit A.

			
	
			
				 (b)
			Building:  The building, designated as Building I in the Project, to be constructed by Landlord in accordance with this Lease (the “Building”), is currently contemplated to consist of 154,152 rentable square feet, and is contemplated to have an address of 1850 West Rio Salado Parkway, Tempe, Arizona.

			
	
			
				 (c)
			Term:  From and after the Commencement Date, Eighty‐Seven (87) months (plus any partial month from the Commencement Date until the first day of the next full calendar month during the Term).  The Term may be extended as provided in Section 30.

			
	
			
				 (d)
			Commencement Date:  The later of (i) October 1, 2014 (the “Estimated Completion Date”), or (ii) the date of Substantial Completion (as hereinafter defined) of the Base Building Work and Tenant Improvements, but not later than the date Tenant takes possession of the Premises.

			
	
			
				 (e)
			Minimum Annual Rent:  Beginning on the Rent Commencement Date, Minimum Annual Rent shall be payable in monthly installments as follows:

			
					
						Months

					
					
						Rentable Square Feet

					
					
						Monthly Rent

					
					
						Annual Rent

				
	
					
						1-3

					
					
						+/-76,162

					$
0.00 
					$
0.00 
				
	
					
						4-12

					
					
						+/-76,162

					$
96,789.21 
					$
1,161,470.50 
				
	
					
						13-24

					
					
						+/-76,162

					$
99,454.88 
					$
1,193,458.54 
				
	
					
						25-36

					
					
						+/-76,162

					$
102,184.02 
					$
1,226,208.20 
				
	
					
						37-48

					
					
						+/-76,162

					$
104,976.62 
					$
1,259,719.48 
				
	
					
						49-60

					
					
						+/-76,162

					$
107,896.17 
					$
1,294,754.00 
				
	
					
						61-72

					
					
						+/-76,162

					$
110,879.18 
					$
1,330,550.14 
				
	
					
						73-84

					
					
						+/-76,162

					$
113,925.66 
					$
1,367,107.90 
				
	
					
						85-87

					
					
						+/-76,162

					$
117,035.61 
					$
1,404,427.28 
				

		
			 
		

		
			****The foregoing notwithstanding, Minimum Annual Rent does not include sales and rental tax, which shall be the obligation of Tenant.
		

			
	
			
				 (f)
			Annual Operating Expenses:  From and after the Commencement Date, estimated to be $239,805.72 (based on $3.15 per rentable square foot per year), payable in monthly installments of $19,983.81, subject to adjustment as provided in this Lease (including as a result of the GPLET Transaction and expiration of the GPLET Transaction) and, if applicable, as the rentable square footage of the Premises changes during the Term.

		 

		

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				 (g)
			Tenant’s Share:  From and after the Commencement Date, (i) with respect to the Property, 49.41% and (ii) with respect to Liberty Center at Rio Salado (the “Project”), as determined in accordance with Section 6(a) (also see Rider 1).

			
	
			
				 (h)
			Use:  General and administrative office consistent with the character and zoning criteria for the Project (the “Permitted Use”).

			
	
			
				 (i)
			Addresses For Notices:

			
					
						 

					
					
						 

				
	
					
						Landlord:

					
					
						Tenant:

				
	
					
						 

					
					
						 

				
	
					
						Liberty Property Limited Partnership

					
					
						Before the Commencement Date:

				
	
					
						2390 E. Camelback Rd., Suite 318

					
					
						WageWorks, Inc.

				
	
					
						Phoenix, Arizona  85016

					
					
						1100 Park Place, 4th Floor

				
	
					
						Attention: Senior Vice President/City Manager

					
					
						San Mateo, CA 94403

				
	
					
						 

					
					
						Attention: General Counsel

				
	
					
						 

					
					
						 

				
	
					
						With a copy to:

					
					
						On or after the Commencement 

				
	
					
						 

					
					
						Date:  Premises

				
	
					
						 

					
					
						 

				
	
					
						Liberty Property Limited Partnership

					
					
						WageWorks, Inc.

				
	
					
						500 Chesterfield Parkway

					
					
						1100 Park Place, 4th Floor

				
	
					
						Malvern, PA 19355

					
					
						San Mateo, CA 94403

				
	
					
						Attention:  Legal Department

					
					
						Attention: General Counsel

				

		
			 
		

			
	
			
				 (j)
			Security Deposit:  Tenant shall provide a Security Deposit equal to $117,036 on or prior to the Commencement Date.

			
	
			
				 (k)
			Tenant Improvement Allowance:  Landlord will provide Tenant a Tenant Improvement Allowance not to exceed $2,840,480, in addition to test-fit allowance not to exceed $7,500.

			
	
			
				 (l)
			Additional Defined Terms:  See Rider 1 for the definitions of certain other capitalized terms.

			
	
			
				 (m)
			Contents:  The following are attached to and made a part of this Lease:

		
			Rider 1 – Additional DefinitionsExhibits:
		

		
			A – Plan showing Premises
		

		
			B – Building Rules
		

		
			C – Estoppel Certificate Form
		

		
			D – Base Building Shell Specifications
		

		
			E – Space Plan [to be attached and incorporated herein once completed]
		

		
			F – Tenant Improvement Plans [to be attached and incorporated herein once completed]
		

		

		

		 

		

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		G – Signage 
		

		
			H – Covered/Reserved Parking Spaces
		

		
			 
		

			
	
			
				 2.
			Premises.  Landlord leases to Tenant and Tenant leases from Landlord the Premises, together with the right in common with others to use the Common Areas.  Tenant accepts the Premises, Building and Common Areas “AS IS,” without relying on any representation, covenant or warranty by Landlord other than as expressly set forth in this Lease.  The rentable square footage of the Premises shall be determined based upon the final space plan; provided, however, upon completion of the final space plan for the Premises but prior to the Effective Date, the actual rentable area of the Premises may be measured, at the request of Tenant, in accordance with “American National Standard ASNI/BOMA Z65.1-1996: Standard Method for Measuring Floor Area in Office Buildings” issued by the Building Owners and Managers Association International (“BOMA Standard”) and, if so measured, shall be certified to such BOMA Standard by Landlord’s architect.  Tenant shall bear the total cost of any such measurement, including, without limitation, the cost of the Landlord’s architect’s fees incurred in connection with such measurement.  If such measurement is timely requested by Tenant, the Landlord’s architect’s measurement of the Premises using the BOMA Standard shall be set forth in Section 1 of the Lease.  By executing this Lease, Tenant conclusively affirms the area of the Premises as set forth in Section 1 and all calculations derived therefrom.

			
	
			
				 3.
			Use.  Tenant shall occupy and use the Premises only for the Permitted Use specified in Section l above.  Tenant shall not permit to occur any conduct or condition that might endanger, disturb or otherwise interfere with any other Building occupant’s normal operations or with the management of the Building.  Tenant may use the Common Areas only for their intended purposes.  Landlord shall have exclusive control of all Common Areas at all times.

			
	
			
				 4.
			Term; Possession.  The Term of this Lease shall commence on the Commencement Date and shall end on the Expiration Date, unless sooner terminated in accordance with this Lease.  If Landlord is delayed in delivering possession of all or any portion of the Premises to Tenant as of the Commencement Date, Tenant will take possession on the date Landlord delivers possession, which date will then become the Commencement Date (and the Expiration Date will be extended so that the length of the Term remains unaffected by such delay).  Landlord shall not be liable for any loss or damage to Tenant resulting from any delay in delivering possession due to any circumstances outside of Landlord’s reasonable control.

			
	
			
				 5.
			Rent; Taxes.  From and after the Commencement Date, Tenant agrees to pay to Landlord, without demand, deduction or offset (unless otherwise provided herein), Minimum Annual Rent and Annual Operating Expenses for the Term.  Tenant shall pay the Monthly Rent, in advance, on the first day of each calendar month during the Term, at Landlord’s address designated in Section 1 above unless Landlord designates otherwise.  If the Commencement Date is not the first day of a calendar month, that partial month shall be added to the first full calendar month of the Term, with the second month of the Term commencing on the 1st day of the second full calendar month following the Commencement Date.  If the Commencement Date is not the first day of a calendar month, the Monthly Rent for that partial month shall be apportioned on a per diem basis and shall be added to the Monthly Rent for the first full calendar month of the Term, all of which shall be paid on or before the Commencement Date, less the first month of free rent.  Tenant shall pay Landlord a service and handling charge equal to 3% of any amount of Rent not 
		

		 

		

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			paid within five (5) days after the date due.  In addition, any Rent, including such charge, not paid within five (5) days after the due date will bear interest at the Interest Rate from the date due to the date paid.  Tenant shall pay before delinquent all taxes levied or assessed upon, measured by, or arising from:  (a) the conduct of Tenant’s business; (b) Tenant’s leasehold estate; or (c) Tenant’s property.  Additionally, Tenant shall pay to Landlord all sales, use, transaction privilege, or other excise tax that may at any time be levied or imposed upon, or measured by, any amount payable by Tenant under this Lease.

			
	
			
				 6.
			Operating Expenses.

			
	
			
				 (a)
			The amount of the Annual Operating Expenses set forth in Section 1(f) above represents Tenant’s Share of the estimated Operating Expenses for the first full calendar year of the Term.  Tenant’s Share of Operating Expenses arising from common services and amenities provided to or for the benefit of the Project will be based on (i) relative land area of the individual parcels comprising the Project for purposes of determining tenants’ relative shares of expenses related to real estate taxes and association fees (or, if no association then exists, expenses of a nature that would typically be covered by association fees), and (ii) relative rentable square footage of the individual buildings from time to time constructed within the Project for all other expense items, in any event allocated by Landlord in an equitable manner among the tenants in the Project.  Landlord may adjust such amount no more than once per calendar year if the estimated Annual Operating Expenses for that particular calendar year increase or decrease.  Landlord may also invoice Tenant separately no more than once per year for Tenant’s Share of any extraordinary or unanticipated and non‐customary Operating Expenses.  By April 30th of each year (and as soon as practical after the expiration or termination of this Lease or, at Landlord’s option, after a sale of the Property), Landlord shall provide Tenant with a statement of Operating Expenses (“Landlord’s Statement”) for the preceding calendar year or part thereof.  Within 180 days after delivery of the statement to Tenant, Landlord or Tenant shall pay to the other party the amount of any overpayment or deficiency then due from one to the other or, at Landlord’s option, Landlord may credit Tenant’s account for any overpayment.  Landlord’s and Tenant’s obligation to pay any overpayment or deficiency due the other pursuant to this Section shall survive the expiration or termination of this Lease.  Notwithstanding any other provision of this Lease to the contrary, Landlord may, in its reasonable discretion, redetermine no more than once per year the method of computing and allocating Operating Expenses, including the method of allocating Operating Expenses to various types of space within the Building, to reflect any disparate levels of services provided to different types of space, and in such event, Landlord shall provide to Tenant a written explanation documenting the need for any such redetermination.

			
	
			
				 (b)
			So long as no monetary Event of Default by Tenant has occurred and remains uncured, Tenant, or its representative, shall have the right, at Tenant’s sole cost and expense, to inspect Landlord’s books and records relating to the Landlord’s Statement for the purpose of verifying the information contained therein (the “Tenant Audit”), provided that (i) Tenant shall have sent notice to Landlord, in writing, no later than one hundred eighty (180) days after Tenant’s receipt of the Landlord’s Statement to be verified, of its desire to conduct the Tenant Audit (the “Audit Notice”), (ii) the Audit Notice identifies with specificity the particular item(s) in the Landlord’s Statement that the Tenant believes is/are incorrect, and (iii) Tenant has paid all amounts previously charged to Tenant under the Landlord’s Statement in full.  The Tenant Audit 
		

		 

		

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			shall be conducted during regular business hours at a location acceptable to Landlord, by Tenant’s personnel and/or an independent firm of certified public accountants that is not being compensated by Tenant on a contingency fee basis.  Landlord shall deliver copies of the relevant books and records to Tenant by courier or overnight mail at Tenant’s notice address set forth in this Lease or such other address as Tenant may designate to Landlord in writing.  The Tenant Audit shall commence by no later than the 90th day after Landlord’s receipt of the Audit Notice, and shall be completed within ninety (90) days after timely commencement of the Tenant Audit, subject to Landlord’s reasonable cooperation.  A copy of the results of the Tenant Audit shall be delivered to Landlord within fifteen (15) days after the completion of the Tenant Audit.  If Tenant fails to timely request or commence the Tenant Audit, or the results of the Tenant Audit are not timely delivered to Landlord in strict compliance with this Section, or Tenant fails to strictly follow any of the procedures set forth in this Section, the applicable Landlord’s Statement shall be deemed to have been approved and accepted by Tenant as correct.  The Tenant Audit shall be limited strictly to those items in the then current Landlord’s Statement, and Tenant shall not be entitled to inspect any of Landlord’s books and records that apply to any Landlord’s Statement for a prior period.  No subtenant has any right to conduct a Tenant Audit and no assignee shall conduct a Tenant Audit for any period during which such assignee was not in possession of the Premises unless such assignee has agreed in writing to be responsible for any additional Operating Expenses determined to be owed for such prior period.  Once having conducted a Tenant Audit with respect to a particular Landlord’s Statement, Tenant shall have no right to conduct another Tenant Audit of the same Landlord’s Statement.  Tenant acknowledges and agrees that all records reviewed under this Section 6 constitute confidential information of Landlord, which shall not be disclosed to anyone other than (A) the auditor, accountants, attorneys and other professionals engaged by Tenant and directly involved in the Tenant Audit, (B) the employees of Tenant who have a need to know and who receive the results of the Tenant Audit, (C) any permitted successor, assignee or subtenant of Tenant, and (D) as otherwise may be required by law.  In the event that the results of the Tenant Audit reveal that Tenant has overpaid its obligations for a prior period and is due a credit, Landlord shall credit the amount due against Tenant’s next installment(s) of estimated Operating Expense, or provide a refund at Tenant’s discretion.  Tenant will not have the right to terminate the Lease on account of an overpayment.  In the event that, as a result of the Tenant Audit, it is ascertained that Tenant has been underbilled for a prior period, the amount of such underbilling shall be paid by Tenant to Landlord with Tenant’s next installment of estimated Operating Expenses.  In the event that the Tenant Audit shows that Tenant has overpaid Operating Expenses with respect to the Landlord’s Statement in question by five percent (5%) or more, Landlord shall reimburse Tenant for the reasonable out‐of‐pocket costs incurred by Tenant with respect to the Tenant Audit.

			
	
			
				 7.
			Services.  Tenant shall pay for water, sewer, gas, electricity, power, telephone and other communication services and any other utilities supplied to the Premises and be responsible for its own janitorial services.  Except to the extent that the parties mutually agree that Landlord shall provide any such services and invoice Tenant for the cost or include the cost in Operating Expenses, Tenant shall obtain such service in its own name (and each such provider shall be mutually acceptable to Landlord and Tenant) and timely pay all charges directly to the provider.  Within thirty (30) days following written request from Landlord, Tenant shall provide Landlord with copies of all invoices received for such utilities and services and evidence of the payment thereof.  Landlord shall not be in default on account of any interruption in such services, unless such interruption in service results directly from the actions of Landlord or its contractors.  
		

		 

		

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			Landlord shall use commercially reasonable efforts to minimize any interference with Tenant’s operations at the Premises, including coordinating with Tenant regarding the timing of such services and scheduling for intrusive work to be performed outside of business hours.  Landlord shall have the exclusive right to select, and to change, the companies providing services or utilities to the Building or the Premises if Landlord elects to provide such services.  Landlord will do this on in an open book method sharing with the Tenant the competitive process to insure competitive pricing (if applicable).  Any wiring, cabling or other equipment necessary to connect Tenant’s telecommunications equipment shall be Tenant’s responsibility and, at Tenant’s cost, shall be installed in a manner approved by Landlord.  In the event Tenant’s consumption of any utility or other service included in Operating Expenses is excessive when compared with other occupants of the Building, Landlord shall provide Tenant notice and supporting documentation of such excessive use and may invoice Tenant separately for, and Tenant shall pay, the cost of Tenant’s excessive consumption, as demonstrated by Landlord.

			
	
			
				 8.
			Insurance; Waivers; Indemnification.

			
	
			
				 (a)
			Landlord shall maintain insurance against loss or damage to the Building or the Property with coverage for perils as set forth under the “Causes of Loss-Special Form” or equivalent property insurance policy in an amount equal to the full insurable replacement cost of the Building (excluding coverage of Tenant’s personal property and any Alterations by Tenant), and such other insurance, including Annual Rent and Annual Operating rent loss coverage, as Landlord may reasonably deem appropriate or as any Mortgagee may require.

			
	
			
				 (b)
			Tenant, at its expense, shall keep in effect commercial general liability insurance, including blanket contractual liability insurance, covering Tenant’s use of the Property, with such coverages and limits of liability as Landlord may reasonably require, but not less than a $1,000,000 combined single limit with a $3,000,000 general aggregate limit (which general aggregate limit may be satisfied by an umbrella liability policy) for bodily injury or property damage; however, such limits shall not limit Tenant’s liability hereunder.  The policy shall name Landlord and, so long as Landlord is Liberty Property Limited Partnership or an entity affiliated therewith, Liberty Property Trust, and any Mortgagee(s), as additional insureds, shall be written on an “occurrence” basis and not on a “claims made” basis and shall be endorsed to provide that it is primary to and not contributory to any policies carried by Landlord and to provide that it shall not be cancelable or reduced without at least thirty (30) days prior notice to Tenant.  Tenant shall provide Landlord with at least ten (10) days notice of any cancellation or reduction of  any policy to Landlord.  The insurer shall be authorized to issue such insurance, licensed to do business and admitted in the state in which the Property is located and rated at least A VII in the most current edition of Best’s Insurance Reports.  Tenant shall deliver to Landlord on or before the Commencement Date or any earlier date on which Tenant accesses the Premises, and at least thirty (30) days after the date of each policy renewal, a certificate of insurance evidencing such coverage.

			
	
			
				 (c)
			Landlord and Tenant each waives, and releases the other from and against, all claims for recovery against the other for any loss or damage to the property of such party arising out of fire or other casualty coverable by a standard “Causes of Loss-Special Form” property insurance policy with, in the case of Tenant, such endorsements and additional coverages as are considered good business practice in Tenant’s business, even if such loss or damage shall be 
		

		 

		

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			brought about by the fault or negligence of the other party or its Agents; provided, however, such waiver by Landlord shall not be effective with respect to Tenant’s liability described in Sections 9(b) and 10(d) below.  This waiver and release is effective regardless of whether the releasing party actually maintains the insurance described above in this subsection and is not limited to the amount of insurance actually carried, or to the actual proceeds received after a loss.  Each party shall have its insurance company that issues its property coverage waive any rights of subrogation, and shall have the insurance company include an endorsement acknowledging this waiver, if necessary.  Tenant assumes all risk of damage of Tenant’s property within the Property, including any loss or damage caused by water leakage, fire, windstorm, explosion, theft, act of any other tenant, or other cause.

			
	
			
				 (d)
			Tenant shall not be permitted to satisfy any of its insurance obligations set forth in this Lease through any self-insurance or self-insured retention in excess of $25,000.

			
	
			
				 (e)
			Subject to subsection (c) above, and except to the extent caused by the negligence or willful misconduct of Landlord or its Agents, Tenant will indemnify, defend, and hold harmless Landlord and its Agents from and against any and all claims, actions, damages, liability and expense (including fees of attorneys, investigators and experts) which may be asserted against, imposed upon, or incurred by Landlord or its Agents and arising out of or in connection with loss of life, personal injury or damage to property in or about the Premises or arising out of the occupancy or use of the Property by Tenant or its Agents or occasioned wholly or in part by any act or omission of Tenant or its Agents, whether prior to, during or after the Term.  Tenant’s obligations pursuant to this subsection shall survive the expiration or termination of this Lease.

			
	
			
				 9.
			Maintenance and Repairs.

			
	
			
				 (a)
			Landlord shall Maintain (i) all Building footings, foundations, structural steel columns and girders at Landlord’s sole expense; and (ii) the Building roof and exterior walls; and in the event there are multiple tenants in the Building, Landlord shall also Maintain (iii) the Building Systems; and (iv)  the Common Areas.  Costs incurred by Landlord under the foregoing clauses (ii), (iii) and (iv) will be included in Operating Expenses, provided that to the extent any heating, ventilation and air conditioning system, or other Building System, equipment or fixture serves the Premises exclusively, If Tenant becomes aware of any condition that is Landlord’s responsibility to repair, Tenant shall promptly notify Landlord of the condition.  If Landlord fails to complete any of its maintenance obligations under this Lease within thirty (30) days after the receipt by Landlord of written notice from Tenant of any such failure (except in the event of an emergency, in which event only reasonable prior notice shall be required), or, if such maintenance cannot reasonably be completed within such thirty (30) day period, such longer period as may be reasonably required for such completion (provided that Landlord commences the maintenance within such thirty (30) day period and diligently pursues same to completion), then, subject to and in accordance with the provisions of Section 22(g), Tenant may complete any such maintenance at Landlord’s cost.  Landlord shall pay Tenant any sums paid or costs incurred by Tenant (together with an administrative fee of ten percent (10%) thereof) in curing the default, plus interest at the Interest Rate from the respective dates of Tenant’s incurring such costs within thirty (30) days after Tenant has invoiced Landlord therefor.  If Landlord fails to reimburse Tenant within thirty (30) days after receipt of such invoice, then unless Landlord delivers written notice to Tenant within such thirty (30) day period that Landlord disputes in 
		

		 

		

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			good faith all or any part of the reimbursement sought by Tenant or the necessity of any of the Maintenance performed by Tenant, Tenant shall be entitled to offset up to the full amount of each month’s installment of Minimum Annual Rent until Tenant has been reimbursed for the full amount.   

			
	
			
				 (b)
			Except as provided in subsection (a) above, Tenant at its sole expense shall Maintain the Premises and all fixtures and equipment in the Premises.  All repairs and replacements by Tenant shall utilize materials and equipment which are comparable to those originally used by Landlord in constructing the Building and Premises.  Alterations, repairs and replacements to the Property, including the Premises, made necessary because of Tenant’s Alterations or installations, any use or circumstances special or particular to Tenant, or any act or omission of Tenant or its Agents shall be made by Landlord or Tenant as set forth above, but at the sole expense of Tenant to the extent not covered by any applicable insurance proceeds paid to Landlord.

			
	
			
				 10.
			Compliance.

			
	
			
				 (a)
			Upon the Commencement Date, the Building and Common Areas shall be delivered in a condition that is compliant with all applicable Laws, including the ADA.  Thereafter, Tenant will, at its expense, promptly comply with all Laws subsequently pertaining to the Premises or Tenant’s use or occupancy.  Tenant will pay any taxes or other charges by any authority on Tenant’s property or trade fixtures or relating to Tenant’s use of the Premises.  Tenant shall be responsible for compliance with the ADA, and any other Laws regarding accessibility, with respect to the Premises, unless such Alteration is necessary due to compliance issues arising from or related to Landlord’s failure to deliver the Building and Common Areas as required under this paragraph.

			
	
			
				 (b)
			Tenant will comply, and will cause its Agents to comply, with the Building Rules.  Landlord may adopt and Tenant shall comply with reasonable rules and regulations to promote energy efficiency, sustainability and environmental standards for the Property, as the same may be changed from time to time upon reasonable notice to Tenant.

			
	
			
				 (c)
			Tenant agrees not to do anything or fail to do anything which will increase the cost of Landlord’s insurance or which will prevent Landlord from procuring policies (including public liability) from companies and in a form satisfactory to Landlord.  If any breach of the preceding sentence by Tenant causes the rate of fire or other insurance to be increased, Tenant shall pay the amount of such increase as additional Rent within 30 days after being billed.

			
	
			
				 (d)
			Tenant agrees that (i) no activity will be conducted on the Premises that will use or produce any Hazardous Materials, except for activities that are part of the ordinary course of Tenant’s business and are conducted in a manner complying with all Environmental Laws (“Permitted Activities”); (ii) the Premises will not be used for storage of any Hazardous Materials, except for materials used in the Permitted Activities which are properly stored in a manner and location complying with all Environmental Laws; (iii) no portion of the Premises or Property will be used by Tenant or Tenant’s Agents for disposal of Hazardous Materials; (iv) Tenant will deliver to Landlord copies of all Material Safety Data Sheets and other written information prepared by manufacturers, importers or suppliers of any chemical; and (v) Tenant 
		

		 

		

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			will immediately notify Landlord of any violation by Tenant or Tenant’s Agents of any Environmental Laws or the release or suspected release of Hazardous Materials in, under or about the Premises, and Tenant shall immediately deliver to Landlord a copy of any notice, filing or permit sent or received by Tenant with respect to the foregoing.  Landlord shall indemnify, defend and hold Tenant and its Agents harmless for, from and against all claims, costs or liabilities (including reasonable attorneys’ fees) related to Hazardous Materials which were not caused by Tenant, and Tenant shall indemnify, defend and hold Landlord and its Agents harmless for, from and against all claims, costs or liabilities (including reasonable attorneys’ fees) related to Hazardous Materials which were caused by Tenant.  Each party’s obligations pursuant to this subsection shall survive the expiration or termination of this Lease.

			
	
			
				 11.
			Signs.  Subject to compliance with applicable City of Tempe code and other applicable Laws, Tenant will have the right to prominent building monument and lobby door signage as more particularly described on Exhibit G.  Landlord will grant Tenant the right to rooftop signage (visible from the air), subject to applicable City of Tempe code and other applicable Laws, and work with Tenant, at no cost to Landlord, to evaluate and price the potential for rooftop signage.  Tenant shall not place any signs on the Property without the prior consent of Landlord, other than signs that are located wholly within the interior of the Premises and not visible from the exterior of the Premises.  Tenant shall maintain all signs installed by Tenant in good condition.  Tenant shall remove its signs at the termination of this Lease, shall repair any resulting damage, and shall restore the Property to its condition existing prior to the installation of Tenant’s signs.

			
	
			
				 12.
			Alterations; Roof Rights.

			
	
			
				 (a)
			Except for non‐structural Alterations that (i) do not exceed $25,000 in the aggregate, (ii) are not visible from the exterior of the Premises, (iii) do not affect any Building System or the structural strength of the Building, (iv) do not require penetrations into the floor, ceiling or walls, and (v) do not require work within the walls, below the floor or above the ceiling, Tenant shall not make or permit any Alterations in or to the Premises without first obtaining Landlord’s consent, which consent shall not be unreasonably withheld.  With respect to any Alterations made by or on behalf of Tenant that require Landlord’s consent:  (i) not less than ten (10) days prior to commencing any Alteration, Tenant shall deliver to Landlord the plans, specifications and necessary permits for the Alteration, together with certificates evidencing that Tenant’s contractors and subcontractors have adequate insurance coverage naming Landlord and, so long as the Landlord is Liberty Property Limited Partnership or an entity affiliated therewith, Liberty Property Trust, as additional insureds, (ii) Tenant shall obtain Landlord’s prior written approval of any contractor or subcontractor, (iii) the Alteration shall be constructed with new materials, in a good and workmanlike manner, and in compliance with all Laws and the plans and specifications delivered to, and, if required above, approved by Landlord, (iv) the Alteration shall be performed in accordance with Landlord’s reasonable requirements relating to sustainability and energy efficiency, (v) Tenant shall pay Landlord all reasonable costs and expenses in connection with Landlord’s review of Tenant’s plans and specifications, and of any supervision or inspection of the construction Landlord deems necessary, not to exceed $5,000 and (vi) upon Landlord’s request Tenant shall, prior to commencing any Alteration, provide Landlord reasonable security against liens arising out of such construction.  Any Alteration by Tenant shall be the property of Tenant until the expiration 
		

		 

		

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			or termination of the Term of this Lease; at that time without payment by Landlord the Alteration shall remain on the Property and become the property of Landlord unless Landlord gives notice to Tenant prior to installation to remove it, in which event Tenant will remove it, will repair any resulting damage and will restore the Premises to the condition existing prior to Tenant’s Alteration.  Tenant shall not be required to remove any Alterations made by Tenant if Tenant makes such request at the time it requests Landlord’s approval of such Alterations and Landlord approves such request.  Tenant may install its trade fixtures, furniture and equipment in the Premises, provided that the installation and removal of them will not affect any structural portion of the Property, any Building System or any other equipment or facilities serving the Building or any occupant.

			
	
			
				 (b)
			Tenant shall have the right to install telecommunications equipment and satellite equipment on the roof of the Building subject to Landlord’s reasonable approval and provided such equipment is for the sole purpose of conducting Tenant’s business and, in Landlord’s reasonable judgment, will not invalidate any then existing warranties.

			
	
			
				 13.
			Mechanics’ Liens.  Tenant promptly shall pay for any labor, services, materials, supplies or equipment furnished to Tenant in or about the Property.  Tenant shall keep the Property free from any liens arising out of any labor, services, materials, supplies or equipment furnished or alleged to have been furnished to Tenant.  Tenant shall take all steps permitted by law in order to avoid the imposition of any such lien.  Should any such lien or notice of such lien be filed against the Property or any portion thereof, Tenant shall discharge the same by bonding or otherwise within fifteen (15) days after Tenant obtains notice that the lien or claim is filed regardless of the validity of such lien or claim.

			
	
			
				 14.
			Right of Entry.  Tenant shall permit Landlord and its Agents to enter the Premises at all reasonable times following reasonable notice (except in an emergency) to inspect, Maintain, or make Alterations to the Premises or Property.  Tenant shall also permit Landlord and its Agents to enter the Premises at mutually agreed upon times following reasonable notice and subject to escort by a Tenant representative, to exhibit the Premises for the purpose of sale or financing, and, during the last twelve (12) months of the Term, to exhibit the Premises to any prospective tenant.  Landlord will make reasonable efforts not to inconvenience Tenant in exercising such rights, but Landlord shall not be liable for any reasonable interference with Tenant’s occupancy resulting from Landlord’s entry.

			
	
			
				 15.
			Damage by Fire or Other Casualty.  If the Premises or Common Areas shall be damaged or destroyed by fire or other casualty, Tenant shall promptly notify Landlord, and Landlord, subject to the conditions set forth in this Section, shall repair such damage and restore the Premises or Common Areas to substantially the same condition in which they were immediately prior to such damage or destruction, but not including the repair, restoration or replacement of the fixtures, equipment, or Alterations installed by or on behalf of Tenant.  Landlord shall notify Tenant within 30 days after the date of the casualty if Landlord anticipates that the restoration will take more than 180 days from the date of the casualty to complete, and in such event, either Landlord or Tenant (unless the damage was caused by Tenant) may terminate this Lease effective as of the date of casualty by giving notice to the other within thirty (30) days after Landlord’s notice.  If a casualty occurs during the last twelve (12) months of the Term, Landlord may terminate this Lease unless Tenant has the right to extend the Term for at least three more 
		

		 

		

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			years and does so extend the Term within thirty (30) days after the date of the casualty.  Tenant will receive an abatement of Minimum Annual Rent and Annual Operating Expenses to the extent the Building and/or Premises are rendered untenantable as a result of the casualty.

			
	
			
				 16.
			Condemnation.  If (a) all of the Premises are Taken, (b) any part of the Premises is Taken and the parties mutually agree that the remainder is insufficient for the reasonable operation of Tenant’s business, or (c) any of the Property is Taken, and, in Landlord’s opinion, it would be impractical or the condemnation proceeds are insufficient to restore the remainder, then this Lease shall terminate as of the date the condemning authority takes possession.  If this Lease is not terminated, Landlord shall restore the Building to a condition as near as reasonably possible to the condition prior to the Taking, the Minimum Annual Rent shall be abated for the period of time all or a part of the Premises is untenantable in proportion to the square foot area untenantable, and this Lease shall be amended appropriately.  The compensation awarded for a Taking shall belong to Landlord.  Except for any relocation benefits to which Tenant may be entitled, Tenant hereby assigns all claims against the condemning authority to Landlord, including, but not limited to, any claim relating to Tenant’s leasehold estate.

			
	
			
				 17.
			Quiet Enjoyment.  Landlord covenants that Tenant, upon performing all of its covenants, agreements and conditions of this Lease, shall have quiet and peaceful possession of the Premises as against anyone claiming by or through Landlord, subject, however, to the terms of this Lease.

			
	
			
				 18.
			Assignment and Subletting.

			
	
			
				 (a)
			Except as provided in subsection (b) below, Tenant shall not enter into nor permit any Transfer of Tenant’s interest in the Lease, voluntarily or by operation of law, without the prior consent of Landlord, which consent shall not be unreasonably withheld.  Without limitation, Tenant agrees that Landlord’s consent shall not be considered unreasonably withheld if (i) the proposed transferee is an existing tenant in the Project and either (A) was contacted by Landlord or contacted Landlord regarding leasing space in the Project prior to being contacted by Tenant regarding a Transfer of this Lease, or (B) such tenant in question is downsizing from their current space within the Project, or (ii) the business or business reputation of the proposed transferee is unacceptable to Landlord, or (iii) the creditworthiness of the proposed transferee is unacceptable to Landlord (such consideration to be applicable only if Tenant will not remain liable under this Lease following the Transfer), or (iv) Landlord has comparable space in the Building available for lease by the proposed transferee or (v) Tenant is in default under the Lease or any act or omission has occurred which would constitute a Tenant default with the giving of notice and/or the passage of time.  A consent to one Transfer shall not be deemed to be a consent to any subsequent Transfer.  In no event shall any Transfer relieve Tenant from any obligation under this Lease.  Landlord’s acceptance of Rent from any person shall not be deemed to be a waiver by Landlord of any provision of this Lease or to be a consent to any Transfer.  Any Transfer not in conformity with this Section 18 shall be void at the option of Landlord.

			
	
			
				 (b)
			Landlord’s consent shall not be required in the event of any Transfer by Tenant to an Affiliate provided that (i) the Affiliate has a tangible net worth at least equal to that of Tenant as of the Effective Date, (ii) Tenant provides Landlord notice of the Transfer at least fifteen (15) days prior to the Effective Date, together with current public financial statements of the Affiliate, 
		

		 

		

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			and (iii) in the case of an assignment or sublease, Tenant delivers to Landlord an assumption agreement reasonably acceptable to Landlord executed by Tenant and the Affiliate, together with a certificate of insurance evidencing the Affiliate’s compliance with the insurance requirements of Tenant under this Lease.

			
	
			
				 (c)
			The provisions of subsection (a) above notwithstanding, if Tenant proposes to Transfer all of its interest in the Premises (other than to an Affiliate), Landlord may terminate this Lease, either conditioned on execution of a new lease between Landlord and the proposed transferee or without that condition.  If Tenant proposes to enter into a Transfer of less than all of its interest in the Premises (other than to an Affiliate), Landlord may amend the Lease to remove the portion of the Premises to be transferred, either conditioned on execution of a new lease between Landlord and the proposed transferee or without that condition.  If this Lease is not so terminated or amended, Tenant shall pay to Landlord, immediately upon receipt, 50% of the excess, after the deduction of marketing costs, commissions, tenant improvements, legal fees and free rent, of (i) all compensation received by Tenant for the Transfer over (ii) the Minimum Annual Rent allocable to the Premises transferred.

			
	
			
				 (d)
			If Tenant requests Landlord’s consent to a Transfer, Tenant shall provide Landlord, at least fifteen (15) days prior to the proposed Transfer, current financial statements of the transferee certified by an executive officer of the transferee, a complete copy of the proposed Transfer documents, and any other information Landlord reasonably requests.  Immediately following any approved assignment or sublease, Tenant shall deliver to Landlord an assumption agreement reasonably acceptable to Landlord executed by Tenant and the transferee, together with a certificate of insurance evidencing the transferee’s compliance with the insurance requirements of Tenant under this Lease.  Tenant agrees to reimburse Landlord for reasonable attorneys’ fees in connection with the processing and documentation of any Transfer for which Landlord’s consent is requested, which shall not exceed $5,000, unless such requested Transfer includes a request for, and results in, a substantial modification of the Lease terms.

			
	
			
				 19.
			Subordination; Mortgagee’s Rights.

			
	
			
				 (a)
			Tenant accepts this Lease subject and subordinate to any Mortgage now or in the future affecting the Premises, provided that Tenant’s right of possession of the Premises shall not be disturbed by the Mortgagee so long as Tenant is not in default under this Lease.  This clause shall be self-operative, but within ten (10) days after request, Tenant shall execute and deliver any further instruments confirming the subordination of this Lease and any further instruments of attornment that the Mortgagee may reasonably request.  However, any Mortgagee may at any time subordinate its Mortgage to this Lease, without Tenant’s consent, by giving notice to Tenant, and this Lease shall then be deemed prior to such Mortgage without regard to their respective dates of execution and delivery; provided that such subordination shall not affect any Mortgagee’s rights with respect to condemnation awards, casualty insurance proceeds, intervening liens or any right which shall arise between the recording of such Mortgage and the execution of this Lease.

			
	
			
				 (b)
			No Mortgagee shall be (i) liable for any act or omission of a prior landlord, (ii) subject to any rental offsets or defenses against a prior landlord, (iii) bound by any amendment of this Lease made without the Mortgagee’s written consent, or (iv) bound by 
		

		 

		

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			payment of Monthly Rent more than one month in advance or liable for any other funds paid by Tenant to Landlord unless such funds actually have been transferred to the Mortgagee by Landlord.

			
	
			
				 (c)
			The provisions of Sections 15 and 16 above notwithstanding, Landlord’s obligation to restore the Premises after a casualty or condemnation shall be subject to the consent and prior rights of any Mortgagee.

			
	
			
				 20.
			Tenant’s Certificate; Financial Information.  Within ten (10) days after Landlord’s request from time to time, (a) Tenant shall execute, acknowledge and deliver to Landlord, for the benefit of Landlord, Mortgagee, any prospective Mortgagee, and any prospective purchaser of Landlord’s interest in the Property, an estoppel certificate in the form of attached Exhibit C (or other form requested by Landlord), modified as necessary to accurately state the facts represented, and (b) Tenant shall furnish to Landlord, Landlord’s Mortgagee, prospective Mortgagee and/or prospective purchaser reasonably requested financial information.  Landlord agrees to keep any private financial information provided to it by Tenant confidential (except for disclosure to the parties listed in this subsection (b)), and any Mortgagee, prospective Mortgagee and/or prospective purchaser with which Landlord shares such information shall be informed by Landlord of the obligation to keep such information confidential.

			
	
			
				 21.
			Surrender.

			
	
			
				 (a)
			On the date on which this Lease expires or terminates, Tenant shall return possession of the Premises to Landlord in good condition, except for ordinary wear and tear, and except for casualty damage or other conditions that Tenant is not required to remedy under this Lease.  Prior to the expiration or termination of this Lease, Tenant shall remove from the Property all furniture, trade fixtures, equipment, wiring and cabling (unless Landlord directs Tenant otherwise upon at least sixty (60) days’ prior written notice), and all other personal property installed by Tenant or its assignees or subtenants.  Tenant shall repair any damage resulting from such removal and shall restore the Property to good order and condition.  Any of Tenant’s personal property not removed as required shall be deemed abandoned, and Landlord, at Tenant’s expense, may remove, store, sell or otherwise dispose of such property in such manner as Landlord may see fit and/or Landlord may retain such property or sale proceeds as its property.  If Tenant does not return possession of the Premises to Landlord in the condition required under this Lease, Tenant shall pay Landlord all resulting damages Landlord may suffer.

			
	
			
				 (b)
			If Tenant remains in possession of the Premises after the expiration or termination of this Lease, Tenant’s occupancy of the Premises shall be that of a tenancy at will.  Tenant’s occupancy during any holdover period shall otherwise be subject to the provisions of this Lease (unless clearly inapplicable), except that the Monthly Rent shall be, for the first three (3) months, one hundred and twenty‐five percent (125%) of the Monthly Rent payable for the last full month immediately preceding the holdover and, thereafter, one hundred and fifty percent (150%) of the Monthly Rent payable for the last full month immediately preceding the holdover.  No holdover or payment by Tenant after the expiration or termination of this Lease shall operate to extend the Term or prevent Landlord from immediate recovery of possession of the Premises by summary proceedings or otherwise.  Any provision in this Lease to the contrary notwithstanding, any holdover by Tenant shall constitute a default on the part of Tenant under this Lease entitling 
		

		 

		

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			Landlord to exercise, without obligation to provide Tenant any notice or cure period, all of the remedies available to Landlord in the event of a Tenant default, and Tenant shall be liable for all damages, including consequential damages, that Landlord suffers as a result of the holdover.

			
	
			
				 22.
			Defaults; Remedies.

			
	
			
				 (a)
			It shall be an Event of Default:

			
	
			
				 (i)
			If Tenant does not pay in full when due any and all Rent and, except as provided in Section 22(c) below, Tenant fails to cure such default on or before the date that is five (5) business days after Landlord gives Tenant notice of default;

			
	
			
				 (ii)
			If Tenant enters into or permits any Transfer in violation of Section 18 above;

			
	
			
				 (iii)
			If Tenant fails to observe and perform or otherwise breaches any other material provision of this Lease, and, except as provided in Section 22(c) below, Tenant fails to cure the default on or before the date that is thirty (30) days after Landlord gives Tenant notice of default; provided, however, if the default cannot reasonably be cured within thirty (30) days following Landlord’s giving of notice, Tenant shall be afforded additional reasonable time to cure the default if Tenant begins to cure the default within thirty (30) days following Landlord’s notice and continues diligently in good faith to completely cure the default; or

			
	
			
				 (iv)
			If Tenant becomes insolvent or makes a general assignment for the benefit of creditors or offers a settlement to creditors, or if a petition in bankruptcy or for reorganization or for an arrangement with creditors under any federal or state law is filed by or against Tenant, or a bill in equity or other proceeding for the appointment of a receiver for any of Tenant’s assets is commenced, or if any of the real or personal property of Tenant shall be levied upon; provided that any proceeding brought by anyone other than Landlord or Tenant under any bankruptcy, insolvency, receivership or similar law shall not constitute an Event of Default until such proceeding has continued unstayed for more than 60 consecutive days.

			
	
			
				 (b)
			If an Event of Default occurs, Landlord shall have the following rights and remedies:

			
	
			
				 (i)
			Landlord, without any obligation to do so, may elect to cure the default on behalf of Tenant, in which event Tenant shall reimburse Landlord upon demand for any sums paid or costs incurred by Landlord (together with an administrative fee of ten percent (10%) thereof) in curing the default, plus interest at the Interest Rate from the respective dates of Landlord’s incurring such costs, which sums and costs together with interest at the Interest Rate shall be deemed additional Rent;

			
	
			
				 (ii)
			To enter and repossess the Premises, by breaking open locked doors if necessary, and remove all persons and all or any property, by action at law or otherwise, without being liable for prosecution or damages.  Landlord may, at Landlord’s option, make reasonable Alterations and repairs in order to relet the Premises and relet all or any part(s) of the Premises for Tenant’s account.  Tenant agrees to pay to Landlord on demand any deficiency (taking into account all costs incurred by Landlord) that may arise by reason of such reletting.  In the event of 
		

		 

		

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			reletting without termination of this Lease, Landlord may at any time thereafter elect to terminate this Lease for such previous breach

			
	
			
				 (iii)
			Subject to Landlord’s good faith obligation to mitigate damages to the extent imposed under applicable Laws, to accelerate the whole or any part of the Rent for the balance of the Term and declare the same to be immediately due and payable, and for purposes of acceleration of Annual Operating Expenses, the amount to be accelerated shall be based upon the assumption that Annual Operating Expenses for each Lease Year of the balance of the Term would be equal to the amount of Annual Operating Expenses which were payable by Tenant in the Lease Year immediately preceding the acceleration); provided, however, Tenant shall have the right, in any judicial proceedings brought to collect same, to assert a credit for the fair rental value of the Premises for the balance of the Term, Tenant to have the burden of proving such credit.  The fair rental value of the Premises shall be net of the costs which would be reasonably incurred by Landlord in releasing the Premises, including without limitation, reasonable demolition and fit-out costs, brokerage commissions and legal fees and expenses.  The amount determined to be payable to Landlord hereunder shall be reduced to present value at the rate of six percent (6%) per annum at the time of actual payment; and

			
	
			
				 (iv)
			To terminate this Lease and the Term without any right on the part of Tenant to save the forfeiture by payment of any sum due or by other performance of any condition, term or covenant broken.

			
	
			
				 (a)
			Any provision to the contrary in this Section 22 notwithstanding, (i) Landlord shall not be required to give Tenant the notice and opportunity to cure provided in Section 22(a) above more than twice in any consecutive 12-month period, and thereafter Landlord may declare an Event of Default without affording Tenant any of the cure rights provided under this Lease, and (ii) Landlord shall not be required to give notice prior to exercising its rights under Section 22(b) if Tenant fails to comply with the provisions of Sections 13, 20 or 27 or in an emergency.

			
	
			
				 (b)
			No waiver by Landlord of any breach by Tenant shall be a waiver of any subsequent breach, nor shall any forbearance by Landlord to seek a remedy for any breach by Tenant be a waiver by Landlord of any rights and remedies with respect to such or any subsequent breach.  Efforts by Landlord to mitigate the damages caused by Tenant’s default shall not constitute a waiver of Landlord’s right to recover damages hereunder.  No right or remedy herein conferred upon or reserved to Landlord is intended to be exclusive of any other right or remedy provided herein or by law, but each shall be cumulative and in addition to every other right or remedy given herein or now or hereafter existing at law or in equity.  No payment by Tenant or receipt or acceptance by Landlord of a lesser amount than the total amount due Landlord under this Lease shall be deemed to be other than on account, nor shall any endorsement or statement on any check or payment be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the balance of Rent due, or Landlord’s right to pursue any other available remedy.

			
	
			
				 (c)
			If either party commences an action against the other party arising out of or in connection with this Lease, the prevailing party shall be entitled to have and recover from the 
		

		 

		

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			other party reasonable attorneys’ fees, costs of suit, investigation expenses and discovery costs, including costs of appeal.

			
	
			
				 (d)
			Landlord and Tenant waive the right to a trial by jury in any action or proceeding based upon or related to, the subject matter of this Lease.

			
	
			
				 (e)
			Landlord shall not be in default under this Lease unless Landlord fails to commence performance of the obligations required of Landlord within thirty (30) days after receipt of written notice by Tenant to Landlord specifying that Landlord has failed to perform such obligation, provided, however, that if the nature of Landlord’s obligation is such that more than the specified cure period is required for performance, then Landlord shall not be in default if Landlord commences performance within the specified cure period and thereafter diligently prosecutes the same to completion.  In the event Landlord does not commence performance within the period provided herein, then, upon not less than five (5) days additional prior written notice from Tenant to Landlord after the end of the cure period that Tenant intends to perform the obligation on Landlord’s behalf, Tenant shall have the right, but not the obligation, to take such action as is reasonably necessary under the circumstances to perform such obligation.  All work done in accordance herewith must be performed at a reasonable and competitive cost and expense (taking into account the circumstances of the obligation).  To the extent such work performed by Tenant is Landlord’s responsibility under this Lease, Landlord shall reimburse Tenant, within thirty (30) days after Landlord’s receipt of a reasonably documented invoice therefor, for any reasonable sums paid or reasonable costs incurred by Tenant in curing the default (together with an administrative fee of ten percent (10%) thereof), plus interest at the Interest Rate from the respective dates of Tenant’s incurring such costs. 

			
	
			
				 23.
			Tenant’s Authority.  Tenant represents and warrants to Landlord that:  (a) Tenant is duly formed, validly existing and in good standing under the laws of the state under which Tenant is organized, and qualified to do business in the state in which the Property is located, and (b) the person(s) signing this Lease are duly authorized to execute and deliver this Lease on behalf of Tenant.

			
	
			
				 24.
			Liability of Landlord.  The word “Landlord” in this Lease includes the Landlord executing this Lease as well as its successors and assigns, each of which shall have the same rights, remedies, powers, authorities and privileges as it would have had it originally signed this Lease as Landlord.  Any such person or entity, whether or not named in this Lease, shall have no liability under this Lease after it ceases to hold title to the Premises, except for obligations already accrued (whether known or unknown at the time such person or entity ceases to hold title to the Premises), and, as to any unapplied portion of Tenant’s Security Deposit, Landlord shall be relieved of all liability upon transfer of such portion to its successor in interest.  Tenant shall look solely to Landlord’s successor in interest for the performance of the covenants and obligations of the Landlord hereunder which subsequently accrue.  Landlord shall not be deemed to be in default under this Lease unless Tenant gives Landlord notice specifying the default and Landlord fails to cure the default within a reasonable period following Tenant’s notice.  In no event shall Landlord be liable to Tenant for any loss of business or profits of Tenant.  Neither Landlord nor any principal of Landlord nor any owner of the Property, whether disclosed or undisclosed, shall have any personal liability with respect to any of the provisions of this Lease 
		

		 

		

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			or the Premises.  Tenant shall look solely to the interest of Landlord in the Property for the satisfaction of any claim by Tenant against Landlord.

			
	
			
				 25.
			Liability of Parties.  Except as otherwise expressly set forth herein, in no event shall either party be liable for any consequential, punitive or special damages of any kind.

			
	
			
				 26.
			Miscellaneous.

			
	
			
				 (a)
			The captions in this Lease are for convenience only, are not a part of this Lease and do not in any way define, limit, describe or amplify the terms of this Lease.

			
	
			
				 (b)
			This Lease represents the entire agreement between the parties hereto and there are no collateral or oral agreements or understandings between Landlord and Tenant with respect to the Premises or the Property.  No rights, easements or licenses are acquired in the Property or any land adjacent to the Property by Tenant by implication or otherwise except as expressly set forth in this Lease.  This Lease shall not be modified in any manner except by an instrument in writing executed by the parties.  The masculine (or neuter) pronoun and the singular number shall include the masculine, feminine and neuter genders and the singular and plural number.  The word “including” followed by any specific item(s) is deemed to refer to examples rather than to be words of limitation.  The word “person” includes a natural person, a partnership, a corporation, a limited liability company, an association and any other form of business association or entity.  Both parties having participated fully and equally in the negotiation and preparation of this Lease, this Lease shall not be more strictly construed, nor any ambiguities in this Lease resolved, against either Landlord or Tenant.

			
	
			
				 (c)
			Each covenant, agreement, obligation, term, condition or other provision contained in this Lease shall be deemed and construed as a separate and independent covenant of the party bound by, undertaking or making the same, not dependent on any other provision of this Lease unless otherwise expressly provided.  All of the terms and conditions set forth in this Lease shall apply throughout the Term unless otherwise expressly set forth herein.

			
	
			
				 (d)
			If any provisions of this Lease shall be declared unenforceable in any respect, such unenforceability shall not affect any other provision of this Lease, and each such provision shall be deemed to be modified, if possible, in such a manner as to render it enforceable and to preserve to the extent possible the intent of the parties as set forth herein.  This Lease shall be construed and enforced in accordance with the laws of the state in which the Property is located.

			
	
			
				 (e)
			This Lease shall be binding upon and inure to the benefit of Landlord and Tenant and their respective heirs, personal representatives and permitted successors and assigns.  All persons liable for the obligations of Tenant under this Lease shall be jointly and severally liable for such obligations.

			
	
			
				 (f)
			Tenant shall not record this Lease or any memorandum with any county recorder’s office without Landlord’s prior consent.

			
	
			
				 27.
			Notices.  Any notice, consent or other communication under this Lease shall be in writing and addressed to Landlord or Tenant at their respective addresses specified in Section 1 above (or to such other address as either may designate by notice to the other) with a copy to any 
		

		 

		

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			Mortgagee or other party designated by Landlord.  Each notice or other communication shall be deemed given if sent by prepaid overnight delivery service or by certified mail, return receipt requested, postage prepaid or in any other manner, with delivery in any case evidenced by a receipt, and shall be deemed to have been given on the day of actual delivery to the intended recipient or on the business day delivery is refused.  The giving of notice by Landlord’s attorneys, representatives and agents under this Section shall be deemed to be the acts of Landlord.

			
	
			
				 28.
			Security Deposit.  Upon Lease Commencement, Tenant shall deposit with Landlord the Security Deposit to be retained by Landlord as cash security for the faithful performance and observance by Tenant of the provisions of this Lease.  Tenant shall not be entitled to any interest on the Security Deposit.  Landlord shall have the right to commingle the Security Deposit with its other funds.  Landlord may use the whole or any part of the Security Deposit for the payment of any amount as to which Tenant is in default or to compensate Landlord for any loss or damage it may suffer by reason of Tenant’s default under this Lease.  If Landlord uses all or any portion of the Security Deposit as herein provided, within ten (10) days after demand, Tenant shall pay Landlord cash in an amount equal to that portion of the Security Deposit used by Landlord.  If Tenant complies fully and faithfully with all of the provisions of this Lease, the Security Deposit shall be returned to Tenant no later than thirty (30) days after the Expiration Date and surrender of the Premises to Landlord in accordance with the terms and conditions of this Lease.

			
	
			
				 29.
			Parking.  Landlord agrees that during the Term, Tenant shall have the non-exclusive right, in common with other occupants in the Building (except as applies to covered parking spaces as set forth below), to use the parking spaces (as indicated on Exhibit H) located on the Land, which shall consist of six (6) parking spaces for each 1,000 rentable square feet leased.  Of the total number of parking spaces allocated to Tenant, 65 of those spaces shall be covered and reserved parking spaces at a monthly fee of $45.00 per parking space, such fee to commence on the first day of the fourth full calendar month of the Term.

			
	
			
				 30.
			Early Occupancy.  Tenant and its authorized agents, employees and contractors shall at all reasonable times within thirty (30) days of the Commencement Date, or at such other times as mutually agreed upon the parties, and solely for the purpose of installing furniture, fixtures and equipment for Tenant’s use and occupancy of the Premises, have the right, at Tenant’s sole risk, expense and responsibility, to occupy the Premises, provided that in so doing Tenant shall not interfere with or delay the work to be performed by Landlord pursuant to the terms of this Lease.  In no event may Tenant conduct business in the Premises during such early access period.

		
			 
		

		
			Landlord’s approval: _______________________________________________________
		

		
			City ManagerSenior Vice President, Regional Manager
		

			
	
			
				 31.
			Option to Extend.

			
	
			
				 (a)
			Provided that Landlord has not given Tenant notice of default more than two (2) times during any twelve (12)‐month period, and provided that there then exists no uncured Event of Default by Tenant under this Lease, nor any event that with the giving of notice and/or the passage of time would constitute an Event of Default, and provided that Tenant is the sole 
		

		 

		

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			occupant of the Premises, Tenant shall have the right and option to extend the Term of this Lease for two (2) additional periods of sixty (60) months each, exercisable by giving Landlord prior written notice, on or before that date that is nine (9) months prior to the then current Expiration Date, but not prior to the date that is 18 months prior to the then current Expiration Date, of Tenant’s election to extend the Term of this Lease; it being agreed that time is of the essence and that this option may be exercised by and any successor to Tenant’s entire interest in the Premises through a Transfer permitted under Section 18.

			
	
			
				 (b)
			Such extensions shall be under the same terms and conditions as provided in this Lease except as follows:

		
			(i) each additional term shall begin on the day after the then current Expiration Date and thereafter the Expiration Date shall be deemed to be the date that is five (5) years after the then current Expiration Date;
		

		
			(ii)all references to the Term in this Lease shall be deemed to mean the Term as extended pursuant to this Section;
		

		
			(iii) there shall be only one (1) further option to extend following the first renewal, and no further option to extend after the second renewal;
		

		
			(iv)the Minimum Annual Rent for each year of the additional term shall be equal to the fair market rental value of the Premises and annual increases in fair market rental value as determined based on comparable buildings in the surrounding market (including rent, concessions, tenant improvements, free rent and broker commissions) (collectively, the “FMR”) applicable at the time Tenant exercises such option (but in no event prior to the date that is six (6) months before the then current Expiration Date).
		

			
	
			
				 (c)
			Within thirty (30) days after Landlord receives notice of Tenant’s exercise of the option to extend the Term of this Lease, Landlord will give notice to Tenant (the “Rent Notice”) of Landlord’s opinion of the FMR.  If Tenant does not respond to the Rent Notice in writing within thirty (30) days after receiving it, Landlord’s opinion of the FMR shall be deemed accepted as the Minimum Annual Rent due for each Lease Year of the extension period.  If, during such thirty (30) day period, Tenant gives Landlord notice that Tenant contests Landlord’s determination of the FMR (an “Objection Notice”), which notice must contain therein Tenant’s opinion of the FMR, the parties will attempt to arrive at a mutually agreeable Minimum Annual Rent for each Lease Year of the extension period.  When the parties come to an agreement, they will both execute an amendment to this Lease establishing the Minimum Annual Rent for each Lease Year of the extension period.

			
	
			
				 (d)
			If Landlord and Tenant cannot agree as to the FMR within fifteen (15) days after Landlord’s receipt of the Objection Notice, the FMR shall be determined by appraisal.  Within ten (10) days after the expiration of such fifteen (15) day period, Landlord and Tenant shall give written notice to the other setting forth the name and address of an appraiser designated by the party giving notice.  All appraisers shall be independent brokers, who are a member in good standing of the Society of Industrial and Office Realtors (“SIOR”) with experience in real estate activities, including at least ten (10) years’ experience in valuing similar space in the Phoenix, 
		

		 

		

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			Arizona area.  If either party shall fail to give notice of such designation within the time period provided, then the party who has designated its appraiser (the “Designating Party”) shall notify the other party (the “Non‐Designating Party”) in writing that the Non‐Designating Party has an additional ten (10) days to give notice of its designation, otherwise the appraiser, if any, designated by the Designating Party shall conclusively determine the FMR.  If two appraisers have been designated, such appraisers shall attempt to agree upon the FMR.  If the two appraisers do not agree on the FMR within twenty (20) days of their designation, the two appraisers shall designate a third appraiser.  If the two appraisers shall fail to agree upon the identity of a third appraiser within five (5) business days following the end of such twenty (20) day period, then either Landlord or Tenant may apply to the American Arbitration Association, or any successor thereto having jurisdiction, for the settlement of the dispute as to the designation of the third appraiser and the American Arbitration Association shall designate a third appraiser in accordance with the Real Estate Valuation Arbitration Rules of the American Arbitration Association.  The three appraisers shall conduct such hearings as they may deem appropriate, shall make their determination of the FMR in writing and shall give notice to Landlord and Tenant of such determination within twenty (20) days after the appointment of the third appraiser.  If the three appraisers cannot agree upon the FMR, each appraiser shall submit in writing to Landlord and Tenant the FMR as determined by such appraiser.  The FMR for the purposes of this paragraph shall be equal to the arithmetic average of the two closest determinations of FMR submitted by the appraisers.  Each party shall pay its own fees and expenses in connection with any appraiser selected by such party under this paragraph, and the parties shall share equally all other expenses and fees of the arbitration, including the fees and expenses charged by the third appraiser.  The FMR as determined in accordance with the provisions of this Section shall be final and binding upon Landlord and Tenant.

			
	
			
				 32.
			Expansion Rights: Tenant shall have the right to lease space on the second floor of the Building as follows:

		
			Beginning with execution of this Lease and continuing until the first anniversary of the Commencement Date (the “ROFR Period”), Tenant shall have the right to lease all or a portion of the second floor of the Building as Landlord receives a letter of intent from a third party to lease some or all of the second floor of the Building (“Offered Space”), which letter of intent Landlord is prepared to accept (the “Offer”).  In such a case, Landlord shall give written notice to Tenant of the Offer and Tenant shall have a period of seven (7) business days in which to exercise Tenant’s right to lease the Offered Space.  If Tenant notifies Landlord in writing within such seven (7) business day period that Tenant does not elect to lease the Offered Space, or if Tenant does not respond in writing to the Offer within such seven (7) business day period, then, in either of the above instances, Landlord may lease the Offered Space to the third party on the basis of the Offer.  If Tenant exercises its right to lease the Offered Space, effective on the delivery date specified in the Offer, the Offered Space shall automatically be included in the Premises and be subject to all the terms and conditions of this Lease, subject to the following:
		

			
	
			
				 (a)
			The term of the lease for the Offered Space shall be coterminous with the Term, and any rent abatement, tenant improvement allowance or other applicable terms and conditions shall be apportioned on a straight line, pro rata basis.

		 

		

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				 (b)
			Tenant’s Share of Annual Operating Expenses will be recalculated based on the total rentable square footage of the Premises, as increased by the Offered Space.

			
	
			
				 (c)
			Tenant’s monthly installment of Minimum Annual Rent for the Offered Space will be recalculated based on the total rentable square footage of the Premises, as increased by the Offered Space.

			
	
			
				 (d)
			Tenant shall receive an improvement allowance on the same terms as provided in the original lease but prorated as provided in subsection 31(a).

			
	
			
				 (e)
			Landlord and Tenant shall, prior to the beginning of the term for the Offered Space, execute a written amendment to the Lease confirming the inclusion of the Offered Space, the recalculated Minimum Annual Rent and the other applicable terms.

		
			 
		

		
			Landlord’s approval:__________________________________________________________
		

		
			City ManagerSenior Vice President, Regional Director]
		

		
			 
		

			
	
			
				 33.
			GPLET Provisions.  Notwithstanding anything to the contrary in this Lease, Landlord and Tenant acknowledge and agree that, upon receipt of a Certificate of Occupancy or promptly thereafter, Landlord will enter into a ground lease agreement (the “Ground Lease”) with the City of Tempe, Arizona (the “City”) whereby the Landlord will convey fee title to the Land to the City, and lease back the land from the City (the “GPLET Transaction”).  Upon consummation of the GPLET Transaction, this Lease shall become a sublease subject to the terms of the Ground Lease, and Tenant covenants, at no material out‐of‐pocket expense to Tenant, to take all reasonable actions requested by Landlord in connection therewith.

			
	
			
				 34.
			Construction of the Building.

			
	
			
				 (a)
			The Building and all site work and other improvements to be constructed in connection therewith (the “Base Building Work”) shall be constructed by Landlord and Wespac Construction (the “Contractor”) and subcontractors substantially in accordance with the description of improvements (the “Base Building Shell Specifications”) attached hereto as Exhibit D.  The Base Building Work and the Common Areas shall be constructed by Landlord, at Landlord’s cost and expense, in a good and workmanlike manner and shall substantially comply, at the time of Substantial Completion thereof, with (i) all Laws applicable to the general use of the Building, and (ii) the Base Building Shell Specifications.  Landlord shall be responsible for obtaining all necessary building permits and other governmental permits and approvals necessary for construction of the Base Building Work.  Tenant shall cooperate with Landlord in Landlord’s efforts to obtain such permits and other approvals.

			
	
			
				 (b)
			Landlord shall have the right, from time to time, to make changes/field adjustments in and to the Base Building Plans to the extent that the same shall be necessary or desirable in order to adjust to actual field conditions or to cause the Base Building Work to comply with Laws and any applicable requirements of public authorities and/or requirements of insurance bodies or as Landlord otherwise deems appropriate.  All such changes/field adjustments shall be noted on the applicable plans or documents.

		 

		

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				 (c)
			Landlord shall use commercially reasonable efforts to cause the Base Building Work to be Substantially Completed (as hereinafter defined) and ready for use and occupancy by Tenant on or before October 1, 2014 (the “Estimated Completion Date”), subject to Excusable Delays (as hereinafter defined).  As used in this Lease, “Substantial Completion” shall mean the date that (i) Landlord has delivered to Tenant a copy of the certificate of occupancy or temporary certificate of occupancy relating to the Base Building Work and Tenant Improvements or other similar instrument issued by the applicable governmental authority having jurisdiction, and (ii) Landlord has substantially completed all of the Base Building Work and Tenant Improvements substantially in accordance with the Base Building Plans and Tenant Improvement Plans, as the case may be.  PROVIDED, HOWEVER, that the Estimated Completion Date shall be extended for additional periods of time equal to the time lost by reason of delays caused by Tenant or its Agents, change orders, strikes, governmental restrictions and limitations, delays in governmental permitting, unavailability or delays in obtaining materials, war or other national emergency, acts of terrorism, accidents, floods, fire damage or other casualties, adverse weather conditions, or any cause similar or dissimilar to the foregoing beyond the reasonable control of Landlord or Landlord’s Contractor (collectively, “Excusable Delays”).

			
	
			
				 (d)
			If Landlord is unable to achieve Substantial Completion on or before twenty (20) days after the Estimated Completion Date occurs, Tenant shall be entitled (i) beginning on the 21st day after the anticipated Completion Date through and including the 90th day after the Estimated Completion Date, to a “day for day” rent credit in an amount equal to 1/30th of the monthly installment of Minimum Annual Rent for each day until Landlord achieves Substantial Completion (“Initial Rent Credit”), and (ii) beginning on the 91st day after the Estimated Completion Date, to a rent credit in an amount equal to 150% of the Initial Rent Credit for each day until Landlord achieves Substantial Completion.  If Landlord does not achieve Substantial Completion before the date which is one hundred eighty (180) days after the Estimated Completion Date, then Tenant shall have the right to terminate this Lease.  In the event Substantial Completion is delayed due to a failure of Tenant to perform its obligations under this Lease or due to changes to the Tenant Improvement Plans initiated by Tenant, the duration of Tenant’s free rent period shall be reduced by the number of days delay caused by Tenant.

			
	
			
				 (e)
			On the Commencement Date, Landlord shall deliver the Premises to Tenant with all building systems and subsystems, structural elements of the Premises and the foundation in good working condition and repair.  Landlord will warrant the operating systems of the Premises (e.g. HVAC, electrical, roof, plumbing, etc.) through the first anniversary of the Commencement Date and will, at its sole cost without pass through to Tenant, replace or repair any inoperable or damaged building system.  All extended manufacturers’ warranties will be passed through to the benefit of Tenant.

			
	
			
				 (f)
			Tenant shall have access to the Building 24‐hours per day, 7‐days per week, 365‐days per year.  Tenant shall be permitted to install and maintain its own security systems for the Premises to include, but not be limited to, card readers, cameras, on-site security guards, etc.  If requested by Landlord prior to the expiration of the Term, Tenant shall remove all security systems and restore/repair any damage caused by installation, removal and/or use of such security system.

		 

		

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				 35.
			Tenant Improvements; Completion, Tenant Allowance; Test-fit Allowance.

			
	
			
				 (a)
			Landlord, through its Contractor and subcontractors, shall complete construction, at Tenant’s sole expense (which may also include Tenant’s expenses for consultants, legal fees, equipment, telephone/data installation, space planning and design, trade fixtures, furniture and/or signage) (“Tenant’s TI Costs”), of the improvements agreed upon between Landlord and Tenant (the “Tenant Improvements”) as described in the construction drawings, plans and specifications to be mutually approved by Landlord and Tenant (the “Tenant Improvement Plans”) using Landlord’s building standard and otherwise in accordance with this Section.

			
	
			
				 (b)
			Tenant will immediately notify Landlord if Tenant desires to make any changes to the Tenant Improvements and Tenant Improvement Plans.  If Landlord approves the revisions, Landlord or Contractor will notify Tenant of the anticipated additional cost and delay in completing the Tenant Improvements that would be caused by such revisions, which shall be solely Tenant’s responsibility and at Tenant’s expense.  If Landlord reasonably disapproves the revisions, Landlord will notify Tenant of the reasons for disapproval and cooperate with Tenant to resolve the disagreements; provided, however, that if such disagreements are not resolved within five (5) business days thereafter, such changes will not be made.  Tenant will approve or disapprove the increased cost and delay within five (5) business days after such notice, and failure to give such notice within five (5) business days will be deemed disapproval.  If Tenant approves, Landlord will prepare, and Landlord and Tenant will execute, a change order describing the revisions and the anticipated additional cost and delay.  If Tenant disapproves, or is deemed to disapprove, the changes will not be made unless Landlord and Tenant can agree upon a resolution within five (5) business days thereafter.  Any delay relating to a request for revisions or a change order, or if the actual delay is caused by Landlord needing to perform such change order, is an Excusable Delay.  Landlord may require Tenant to deposit such estimated additional cost with Landlord before the change order work is performed.

			
	
			
				 (c)
			Landlord may withhold its approval of change orders, or other work requested by Tenant, which Landlord reasonably determines may require work which:  (i) exceeds or adversely affects the structural integrity of the Building; (ii) adversely affects, or exceeds the capacity of, any part of the heating, ventilating, air conditioning, plumbing, mechanical, electrical, communication or other systems of the Building; (iii) will increase the cost of operation or maintenance of any of the systems of the Property; (iv) does not conform to applicable building codes, policies or procedures or is not approved by any governmental authority with jurisdiction over the Premises; (v) is not a building standard item or an item of equal or higher quality; (vi) may detrimentally affect the uniform appearance of the Property; or (vii) is reasonably disapproved by Landlord for any other reason.

			
	
			
				 (d)
			Not later than fifteen (15) days after the date of Substantial Completion of the Tenant Improvements, Landlord and Tenant will inspect the Premises and work together in good faith to develop a “punch list” of any Tenant Improvement items which were either not properly completed or are in need of repair.  Landlord will complete (or repair, as the case may be) the items listed on the punch list with commercially reasonable diligence and speed.  If Tenant does not inspect the Premises with Landlord within such period, Tenant will be deemed to have accepted the Premises as delivered.

		 

		

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				 (e)
			Landlord shall construct the Tenant Improvements in the Premises in accordance with the Tenant Improvement Plans and shall contribute an allowance of up to $2,840,480.00 (“Tenant Improvement Allowance”) toward the actual amount of Tenant’s TI Costs.  If the actual TI Costs exceed the amount of the Tenant Improvement Allowance, the excess shall be paid by Tenant.  After Landlord has fully disbursed the Tenant Improvement Allowance, and on or before the 25th day of each month thereafter, Landlord shall submit to Tenant (i) an itemization of the Tenant Improvements completed during the preceding month; (ii) a statement of the total amount invoiced by Contractor for such Tenant Improvements, and (iii) invoices, receipts and payment applications establishing the costs of construction incurred by Landlord and covered by the current application for payment.  Tenant shall pay the invoice within thirty (30) days after receipt.

			
	
			
				 (f)
			Landlord agres to a test-fit which shall be paid outside of the Tenant Improvement Allowance, the cost of which test-fit shall not exceed $7,500.  Tenant shall have the right to choose their preferred architect.

			
	
			
				 36.
			Brokers; Recognition and Indemnity.

			
	
			
				 (a)
			Tenant and Landlord represent and warrant to each other that Jones Lang LaSalle is the only broker or finder that either has had any dealings, negotiations or consultations relating to the Premises or this transaction and that no other broker or finder called the Premises to Tenant’s attention for lease or took any part in any dealings, negotiations or consultations relating to the Premises or this Lease.  Such named broker is entitled to a commission from Landlord pursuant to separate agreement.

			
	
			
				 (b)
			Tenant agrees to be responsible for, indemnify, defend and hold harmless Landlord for, from and against all costs, fees (including, without limitation, attorney’s fees), expenses, liabilities and claims incurred or suffered by Landlord arising from any breach by Tenant of Tenant’s foregoing representation and warranty.  Landlord agrees to be responsible for, indemnify, defend and hold harmless Tenant for, from and against all costs, fees (including, without limitation, attorney’s fees), expenses, liabilities and claims incurred or suffered by Tenant arising from any breach by Landlord of Landlord’s foregoing representation and warranty.

		

		

		 

		

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			Landlord and Tenant have executed this Lease on the respective date(s) set forth below.
		

			
					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						

					
						 

					
					
						 

					
						 

					
						 

					
						Liberty Property Trust, Sole General Partner

					
						 

					
						 

					
						

					
						

					
						

					
						 

					
						 

				
	
					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						 

					
						Date signed:

					
						 

					
						

					
					
						Landlord:

					
						 

					
						LIBERTY PROPERTY LIMITED PARTNERSHIP

					
						 

					
						By:Liberty Property Trust, Sole General Partner

					
						 

					
						 

					
						By:

					
						Name:

					
						Title:

					
						 

				
	
					
						 

					
					
						 

				
	
					
						Date signed:

					
						 

					
						

					
						 

					
						Witness/Attest:

					
						 

					
						

					
						Name:

					
						Title:

					
						 

					
					
						Tenant:

					
						 

					
						WAGEWORKS, INC., a Delaware corporation

					
						 

					
						 

					
						By:

					
						Name:

					
						Title:

					
						 

				

		
			 
		

		
			 
		

		

		

		 

		

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		Rider 1 to Lease Agreement
		

		
			 
		

		
			(Multi-Tenant Office)
		

		
			 
		

		
			ADDITIONAL DEFINITIONS
		

		
			 
		

		
			 
		

		
			“ADA” means the Americans with Disabilities Act of 1990 (42 U.S.C. § 1201 et seq.), as amended and supplemented from time to time.
		

		
			“Affiliate” means (i) any entity controlling, controlled by, or under common control of, Tenant, (ii) any successor to Tenant by merger, consolidation or reorganization, and (iii) any purchaser of all or substantially all of the assets of Tenant as a going concern.
		

		
			“Agents” of a party means such party’s employees, agents, representatives, contractors, licensees or invitees.
		

		
			“Alteration” means any addition, alteration or improvement to the Premises or Property, as the case may be.
		

		
			“Building Rules” means the rules and regulations attached to this Lease as Exhibit B as they may be amended from time to time.
		

		
			“Building Systems” means any electrical, mechanical, structural, plumbing, heating, ventilating, air conditioning, sprinkler, life safety or security systems serving the Building.
		

		
			“Common Areas” means all areas and facilities as provided by Landlord from time to time for the use or enjoyment of all tenants in the Building or Property, including, if applicable, lobbies, hallways, restrooms, elevators, driveways, sidewalks, parking, loading and landscaped areas.
		

		
			“Environmental Laws” means all present or future federal, state or local laws, ordinances, rules or regulations (including the rules and regulations of the federal Environmental Protection Agency and comparable state agency) relating to the protection of human health or the environment.
		

		
			“Event of Default” means a default described in Section 22(a) of this Lease.
		

		
			“Hazardous Materials” means pollutants, contaminants, toxic or hazardous wastes or other materials the removal of which is required or the use of which is regulated, restricted, or prohibited by any Environmental Law.
		

		
			“Interest Rate” means interest at the rate of prime, plus one percent (1%), annually.
		

		
			“Land” means the lot or plot of land on which the Building is situated or the portion thereof allocated by Landlord to the Building.
		

		
			“Laws” means all laws, ordinances, rules, orders, regulations, guidelines and other requirements of federal, state or local governmental authorities or of any private association or contained in 
		

		 

		

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		any restrictive covenants or other declarations or agreements, now or subsequently pertaining to the Property or the use and occupation of the Property.
		

		
			“Lease Year” means the period from the Commencement Date through the succeeding 12 full calendar months (including for the first Lease Year any partial month from the Commencement Date until the first day of the first full calendar month) and each successive 12-month period thereafter during the Term.
		

		
			“Maintain” means to provide such maintenance, repair and, to the extent necessary and appropriate, replacement, as may be needed to keep the subject property in good condition and repair.  Maintenance also includes utilizing such building-performance assessment tools and energy-optimizing practices that Landlord in its discretion reasonably deems necessary and appropriate for planning, designing, installing, testing, operating and maintaining the Building Systems and Common Areas in an energy efficient manner and providing a safe and comfortable work environment, with a view toward achieving improved overall building performance and minimizing the Building’s impact on the environment.
		

		
			“Monthly Rent” means the monthly installment of Minimum Annual Rent plus the monthly installment of estimated Annual Operating Expenses plus the monthly fee for covered parking payable by Tenant under this Lease.
		

		
			“Mortgage” means any mortgage, deed of trust or other lien or encumbrance on Landlord’s interest in the Property or any portion thereof, including without limitation any ground or master lease if Landlord’s interest is or becomes a leasehold estate.
		

		
			“Mortgagee” means the holder of any Mortgage, including any ground or master lessor if Landlord’s interest is or becomes a leasehold estate.
		

		
			“Normal Business Hours” means 8:00 a.m. to 6:00 p.m., Monday through Friday, except for the following:  New Year's Day, Memorial Day, Independence Day (July 4), Labor Day, Thanksgiving Day and Christmas Day.
		

		
			“Operating Expenses” means all costs, fees, charges and expenses incurred or charged by Landlord in connection with the ownership, operation, maintenance and repair of, and services provided to, and rights and benefits otherwise afforded to the Property including, but not limited to:  (i) the charges at standard retail rates for any services provided by Landlord pursuant to Section 7 of this Lease, but subject to clause (xv) below; (ii) the cost of insurance carried by Landlord pursuant to Section 8 of this Lease together with the cost of any deductible paid by Landlord in connection with an insured loss; (iii) Landlord’s cost to Maintain the Property pursuant to Section 9 of this Lease, including, without limitation, Landlord’s costs to Maintain the HVAC system; (iv) the cost of trash collection; (v) to the extent not otherwise payable by Tenant pursuant to Section 5 of this Lease, all levies, taxes (including real estate taxes, sales taxes and gross receipt taxes and amounts paid by Landlord in lieu of any of the foregoing such as rent under the GPLET  Ground Lease), assessments, liens, license and permit fees, together with the reasonable cost of contesting any of the foregoing, which are applicable to the Term, and which are imposed by any authority or under any Law, or pursuant to any recorded covenants or agreements, upon or with respect to the Property, or any improvements thereto, or 
		

		 

		

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		directly upon this Lease or the Rent or upon amounts payable by any subtenants or other occupants of the Premises, or against Landlord because of Landlord’s estate or interest in the Property; (vi) the annual amortization (over their estimated GAAP life or payback period, whichever is longer) of the costs of capital replacements or improvements that provide economic benefit; (vii) a management and administrative fee equal to 3.5% of the Minimum Annual Rent; (viii) costs to process the certification or re-certification of the Building pursuant to any applicable environmental rating system (such as Energy Star or LEED) including applying, reporting, tracking and related reasonable consultant’s fees associated therewith; and (ix) the Property’s allocable share of expenses arising from common services and amenities provided to or for the benefit of the overall office center of which the Property is a part (“Liberty Center at Rio Salado” or the “Project”), such expenses to be allocated to (i) the individual parcels comprising the Project based on the relative land area of such individual parcels and (ii) relative rentable square footage of the individual buildings from time to constructed within the Project, in any event allocated by Landlord in an equitable manner among the tenants in the Project.  The foregoing notwithstanding, Operating Expenses will not include:  (i) depreciation on the Building; (ii) financing and refinancing costs (except as provided above), interest on debt or amortization payments on any mortgage, or rental under any ground or underlying lease (excluding GPLET); (iii) leasing commissions, advertising expenses (including tenant parties and gifts) real estate licenses and other industry certifications, tickets to special events, finder’s fees, and referral fees, tenant improvements or other costs directly related to the leasing of the Property; (iv) income, excess profits or corporate capital stock tax imposed, inheritance and estate taxes, other business taxes and assessments, franchise and gift taxes, and all other Real Estate Taxes relating to a period payable or assessed outside the term of the Lease;, unless such tax or any similar tax is levied or assessed in lieu of all or any part of any taxes includable in Operating Expenses above; (v) costs associated with the operation of the business of the entity which constitutes Landlord or Landlord’s affiliated organizations or Landlord’s managing agent (as distinguished from the costs of the operations of the Building/Project) including, but not limited to, any entity’s general corporate overhead and general administrative expenses, legal, risk management or other departmental costs of off‐site personnel, corporate and/or partnership accounting and legal costs, asset management fees, administrative fees, health/sports club dues, employee parking and transportation charges, placement/recruiting expenses for employees whether they are assigned to the Building/Project or not, employee training programs, costs of any business licenses, all costs associated with start‐up or move of a management office due to sale of the building, change of management companies or leasing and any other costs that would normally be considered included in a management fee; (vi) wages, salaries, fees, fringe benefits, and any other form of compensation paid to any executive employee of Landlord and/or Landlord’s managing agent above the grade of Senior Property Manager, provided, however, all wages, salaries and other compensation otherwise allowed to be included in Operating Costs shall also exclude any portion of such costs related to any employee’s time devoted to other efforts unrelated to the maintenance and operation of the Building/Project; (vii) costs of defending any lawsuits, bad debt loss, rent loss or any reserves thereof; (viii) any office rental and any parking charges, either actual or not, for the Landlord’s and/or Landlord’s managing agent’s management, engineering, maintenance, security, parking or other vendor personnel; (ix) any cost of any service or items sold or provided to tenants or other occupants for which Landlord or Landlord’s managing agent has been or is entitled to be reimbursed by such tenants or other occupants for such service or has been or is entitled to be reimbursed by insurance or 
		

		 

		

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		otherwise compensated by parties other than tenants of the Building/Project to include replacement of any item covered by a warranty; (x) all advertising and promotional costs including any form of entertainment expenses, dining expenses, any costs relating to tenant or vendor relation programs but excluding any cost associated with life safety information or education services which are provided to the tenants of the Building/Project; (xi) any fines, costs, late charges, liquidated damages, penalties, tax penalties or related interest charges, imposed on Landlord or Landlord’s managing agent; (xii) any costs, fees, dues, contributions or similar expenses for political, charitable, industry association or similar organizations, as well as the cost of any newspaper, magazine, trade or other subscriptions, excepting the Building’s/Project’s annual membership dues in the local Building Owners and Managers Association (“BOMA”); (xiii) any compensation or benefits paid to or provided to clerks, attendants or other persons in commercial concessions operated by or on behalf of the Landlord; or (xiv) any reserves of any kind.  Landlord shall prepay real estate taxes during any discount period, and Tenant shall be entitled to the benefit of any such prepayment.  Landlord shall have the right to directly perform (by itself or through an affiliate) any services provided under this Lease provided that the Landlord’s charges included in Operating Expenses for any such services shall not exceed competitive market rates for comparable services; (xv) any amount paid by Landlord or Landlord’s managing agent to a subsidiary or affiliate of Landlord or Landlord’s managing agent, or to any party as a result of a non-competitive selection process, for management or other services to the Building/Project, or for supplies or other materials, to the extent the cost of such services, supplies, or materials exceed the cost that would have been paid had the services, supplies or materials been provided by parties unaffiliated with the Landlord or Landlord’s managing agent on a competitive basis by reputable, professional firms customarily engaged in providing such services; (xvi) any cost incurred in connection with upgrading the Building/Project to comply with insurance requirements, life safety codes, ordinances, statutes, or other laws in effect prior to the Commencement Date, including without limitation the Americans With Disabilities Act (or similar laws, statutes, ordinances or rules imposed by the State, County, City, or other agency where the Building/Project is located), including penalties or damages incurred as a result of non-compliance; (xvii) costs, other than those incurred in ordinary maintenance and repair, for sculptures, paintings, fountains or other objects of art or the display of such items; (xviii) any cost incurred in or properly attributable to a year prior to the year in which the Commencement Date occurs, including, but not limited to, amortization of Capital Expenditures, taxes incurred for prior years but billed and paid after the Commencement Date; (xix) expenses in connection with services or other benefits which are provided solely for the benefit of another tenant or occupant of the Building/Project within the space leased exclusively by such other tenant or occupant and which do not benefit Tenant; (xx) special assessments or special taxes imposed by a governmental or quasi‐governmental authority and initiated as a means of financing improvements to the Building/Project and the surrounding areas thereof; and (xxi) (a)  the cost of any insurance coverage, whether or not required by the holder of any mortgage on the Property which is related, in whole or in part, to (A) property or casualty insurance coverage in amounts greater than the replacement cost of the Property, or (B) lease enhancement insurance or other credit enhancement-related insurance;  (b)  to the extent Landlord incurs any losses covered by the insurance Landlord is required to carry pursuant to the terms of this Lease, Operating Expenses may only include those commercially reasonable deductibles paid by Landlord but not, in any event, in excess of an aggregate of $50,000.00;  (c) any increase in the cost of Landlord’s insurance caused by a specific use of another tenant or by Landlord.
		

		

		

		 

		

			Rider 1

		

		

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		“Phase I Report” means that certain Report on Phase I Environmental Site Assessment, dated as of November 13, 2013, issued by Speedie & Associates.
		

		
			“Property” means the Land, the Building, the Common Areas, and all appurtenances to them.
		

		
			“Rent” means the Minimum Annual Rent, Annual Operating Expenses and any other amounts payable by Tenant to Landlord under this Lease.
		

		
			“Taken” or “Taking” means acquisition by a public authority having the power of eminent domain by condemnation or conveyance in lieu of condemnation.
		

		
			“Tenant’s Share” means, with respect to the Property, the percentage obtained by dividing the rentable square feet of the Premises by the rentable square feet of the Building, and with respect to Liberty Center Rio Salado, as set forth in Section 6(a) of this Lease, all as set forth in Section 1 of this Lease.
		

		
			“Transfer” means (i) any assignment, transfer, pledge or other encumbrance of all or a portion of Tenant’s interest in this Lease, (ii) any sublease, license or concession of all or a portion of Tenant’s interest in the Premises, or (iii) any transfer of a controlling interest in Tenant.
		

		
			 
		

		
			 
		

		

		

		 

		

			Rider 1

		

		

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			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		EXHIBIT A
		

		
			 
		

		
			PREMISES
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit A

		

		

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			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		EXHIBIT B
		

		
			 
		

		
			BUILDING RULES
		

		
			 
		

		
			 
		

			
	
			
				 1.
			Any sidewalks, lobbies, passages, elevators and stairways shall not be obstructed or used by Tenant for any purpose other than ingress and egress from and to the Premises.  Landlord shall in all cases retain the right to control or prevent access by all persons whose presence, in the judgment of Landlord, shall be prejudicial to the safety, peace or character of the Property.

			
	
			
				 2.
			The toilet rooms, toilets, urinals, sinks, faucets, plumbing or other service apparatus of any kind shall not be used for any purposes other than those for which they were installed, and no sweepings, rubbish, rags, ashes, chemicals or other refuse or injurious substances shall be placed therein or used in connection therewith or left in any lobbies, passages, elevators or stairways.

			
	
			
				 3.
			Tenant shall not impair in any way the fire safety system and shall comply with all safety, fire protection and evacuation procedures and regulations established by Landlord, any governmental agency or any insurance company insuring the Building, including without limitation the insurer’s Red Tag Permit System, Hot Work Permit System and all other fire protection impairment procedures (attached hereto).  No person shall go on the roof without Landlord’s prior written permission.

			
	
			
				 4.
			Skylights, windows, doors and transoms shall not be covered or obstructed by Tenant, and Tenant shall not install any window covering which would affect the exterior appearance of the Building, except as approved in writing by Landlord.  Tenant shall not remove, without Landlord’s prior written consent, any shades, blinds or curtains in the Premises.

			
	
			
				 5.
			Without Landlord’s prior written consent, Tenant shall not hang, install, mount, suspend or attach anything from or to any sprinkler, plumbing, utility or other lines.  If Tenant hangs, installs, mounts, suspends or attaches anything from or to any doors, windows, walls, floors or ceilings, Tenant shall spackle and sand all holes and repair any damage caused thereby or by the removal thereof at or prior to the expiration or termination of the Lease.

			
	
			
				 6.
			Tenant shall not change any locks nor place additional locks upon any doors, with the exception of Tenant’s security system.  

			
	
			
				 7.
			Tenant shall not use nor keep in the Building any matter having an offensive odor, nor explosive or highly flammable material, nor shall any animals other than handicap assistance dogs in the company of their masters be brought into or kept in or about the Property.

			
	
			
				 8.
			If Tenant desires to introduce electrical, signaling, telegraphic, telephonic, protective alarm or other wires, apparatus or devices, Landlord shall direct where and how the same are to be placed, and except as so directed, no installation boring or cutting shall be permitted.  Landlord shall have the right to prevent and to cut off the transmission of excessive or dangerous current of electricity or annoyances into or through the Building or the Premises 
		

		 

		

			Exhibit B

		

		

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			and to require the changing of wiring connections or layout at Tenant’s expense, to the extent that Landlord may deem necessary, and further to require compliance with such reasonable rules as Landlord may establish relating thereto, and in the event of non-compliance with the requirements or rules, Landlord shall have the right, subject to reasonable notice, to cut wiring or to do what it considers necessary to remove the danger, annoyance or electrical interference with apparatus in any part of the Building.  All wires installed by Tenant must be clearly tagged at the distributing boards and junction boxes and elsewhere where required by Landlord, with the number of the office to which said wires lead, and the purpose for which the wires respectively are used, together with the name of the concern, if any, operating same.  No machinery of any kind other than customary small business machines shall be allowed in the Premises.  Tenant shall not use any method of heating, air conditioning or air cooling other than that provided by Landlord.

			
	
			
				 9.
			Tenant shall not place weights anywhere beyond the safe carrying capacity of the Building which is designed to normal office building standards for floor loading capacity.  Landlord shall have the right to exclude from the Building heavy furniture, safes and other articles which may be hazardous or to require them to be located at designated places in the Premises.

			
	
			
				 10.
			The use of rooms as sleeping quarters is strictly prohibited at all times.

			
	
			
				 11.
			Tenant shall have the right, at Tenant’s sole risk and responsibility, to use only Tenant’s Share of the parking spaces at the Property as set forth in the Lease.  Tenant shall comply with all parking regulations promulgated by Landlord from time to time for the orderly use of the vehicle parking areas, including without limitation the following: Parking shall be limited to automobiles, passenger or equivalent vans, motorcycles, light four wheel pickup trucks and (in designated areas) bicycles.  Parked vehicles shall not be used for vending or any other business or other activity while parked in the parking areas.  Vehicles shall be parked only in striped parking spaces, except for loading and unloading, which shall occur solely in zones marked for such purpose, and be so conducted as to not unreasonably interfere with traffic flow within the Property or with loading and unloading areas of other tenants.  Employee and tenant vehicles shall not be parked in spaces marked for visitor parking or other specific use.  All vehicles entering or parking in the parking areas shall do so at owner’s sole risk and Landlord assumes no responsibility for any damage, destruction, vandalism or theft.  Tenant shall cooperate with Landlord in any measures implemented by Landlord to control abuse of the parking areas, including without limitation access control programs, tenant and guest vehicle identification programs, and validated parking programs, provided that no such validated parking program shall result in Tenant being charged for spaces to which it has a right to free use under its Lease.  Each vehicle owner shall promptly respond to any sounding vehicle alarm or horn, and failure to do so may result in temporary or permanent exclusion of such vehicle from the parking areas.  Any vehicle which violates the parking regulations may be cited, towed at the expense of the owner, temporarily or permanently excluded from the parking areas, or subject to other lawful consequence.  Bicycles are not permitted in the Building.

			
	
			
				 12.
			Tenant and its Agents shall not smoke in the Building or at the Building entrances and exits.

		 

		

			Exhibit B

		

		

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			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

			
	
			
				 13.
			Tenant shall provide Landlord with a written identification of any vendors engaged by Tenant to perform services for Tenant at the Premises (examples: security guards/monitors, telecommunications installers/maintenance), and all vendors shall be subject to Landlord’s reasonable approval.  No mechanics shall be allowed to work on the Building or Building Systems other than those engaged by Landlord.  Tenant shall be solely responsible, at its expense, for janitorial services to the Premises.  Tenant assumes all responsibility for protecting its Premises from theft and vandalism and Tenant shall see each day before leaving the Premises that all lights are turned out and that the windows and the doors are closed and securely locked.

			
	
			
				 14.
			Tenant shall comply with any move-in/move-out rules provided by Landlord and with any rules provided by Landlord governing access to the Building outside of Normal Business Hours.  Throughout the Term, no furniture, packages, equipment, supplies or merchandise of Tenant will be received in the Building, or carried up or down in the elevators or stairways, except during such hours as shall be designated by Landlord, and Landlord in all cases shall also have the exclusive right to prescribe the method and manner in which the same shall be brought in or taken out of the Building.

			
	
			
				 15.
			Tenant shall not place oversized cartons, crates or boxes in any area for trash pickup without Landlord’s prior approval.  Landlord shall be responsible for trash pickup of normal office refuse placed in ordinary office trash receptacles only.  Excessive amounts of trash or other out-of-the-ordinary refuse loads will be removed by Landlord upon request at Tenant’s expense.

			
	
			
				 16.
			Tenant shall comply with the following sustainability requirements:

		
			Tenant shall provide within thirty (30) days after Landlord’s request from time to time, reasonably requested energy and water consumption data and related information in connection with Tenant’s use of the Premises and all construction, maintenance, repairs, cleaning, trash disposal and recycling relating to the Premises performed by or on behalf of Tenant — all to be used for purposes of monitoring and improving building efficiencies.
		

		
			Low/No VOC Paint.  Tenant shall use only interior paints and coatings (including primers) meeting the environmental requirements of the current Green SealTM Environmental Standard For Paints And Coatings - GS-11.
		

		
			Green Cleaning Products.  All cleaning products used in the Premises must be certified under the current Green SealTM Environmental Standard for Industrial and Institutional Cleaners — GS-37.
		

		
			Recycling.  The following items must be recycled according to local capabilities, guidelines and regulations: (i) Paper; (ii) Cardboard; (iii) Plastics; (iv) Aluminum Cans/Metals; and (v) Glass.
		

			
	
			
				 17.
			Tenant shall cause all of Tenant’s Agents to comply with these Building Rules.

		 

		

			Exhibit B

		

		

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			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

			
	
			
				 18.
			Landlord reserves the right to rescind, suspend or modify any rules or regulations and to make such other rules and regulations as, in Landlord’s reasonable judgment, may from time to time be needed for the safety, care, maintenance, operation and cleanliness of the Property.  Notice of any action by Landlord referred to in this section, given to Tenant, shall have the same force and effect as if originally made a part of the foregoing Lease.  New rules or regulations will not, however, be unreasonably inconsistent with the proper and rightful enjoyment of the Premises by Tenant under the Lease.

			
	
			
				 19.
			These Building Rules are not intended to give Tenant any rights or claims in the event that Landlord does not enforce any of them against any other tenants or if Landlord does not have the right to enforce them against any other tenant and such nonenforcement will not constitute a waiver as to Tenant.

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit B

		

		

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		EXHIBIT C
		

		
			 
		

		
			TENANT ESTOPPEL CERTIFICATE
		

		
			 
		

		
			 
		

		
			Please refer to the documents described in Schedule 1 hereto, (the “Lease Documents”) including the “Lease” therein described; all defined terms in this Certificate shall have the same meanings as set forth in the Lease unless otherwise expressly set forth herein.  The undersigned Tenant hereby certifies that it is the tenant under the Lease.  Tenant hereby further acknowledges that it has been advised that the Lease may be collaterally assigned in connection with a proposed financing secured by the Property and/or may be assigned in connection with a sale of the Property and certifies both to Landlord and to any and all prospective mortgagees and purchasers of the Property, including any trustee on behalf of any holders of notes or other similar instruments, any holders from time to time of such notes or other instruments, and their respective successors and assigns (the “Beneficiaries”) that as of the date hereof:
		

			
	
			
				 1.
			The information set forth in attached Schedule 1 is true and correct.

			
	
			
				 2.
			Tenant is in occupancy of the Premises and the Lease is in full force and effect, and, except by such writings as are identified on Schedule l, has not been modified, assigned, supplemented or amended since its original execution, nor are there any other agreements between Landlord and Tenant concerning the Premises, whether oral or written.

			
	
			
				 3.
			All conditions and agreements under the Lease to be satisfied or performed by Landlord have been satisfied and performed.

			
	
			
				 4.
			Tenant is not in default under the Lease Documents, Tenant has not received any notice of default under the Lease Documents, and, to Tenant’s knowledge, there are no events which have occurred that, with the giving of notice and/or the passage of time, would result in a default by Tenant under the Lease Documents.

			
	
			
				 5.
			Tenant has not paid any Rent due under the Lease more than 30 days in advance of the date due under the Lease and Tenant has no rights of setoff, counterclaim, concession or other rights of diminution of any Rent due and payable under the Lease except as set forth in Schedule 1.

			
	
			
				 6.
			To Tenant’s knowledge, there are no uncured defaults on the part of Landlord under the Lease Documents, Tenant has not sent any notice of default under the Lease Documents to Landlord, and there are no events which have occurred that, with the giving of notice and/or the passage of time, would result in a default by Landlord thereunder, and that at the present time Tenant has no claim against Landlord under the Lease Documents.

			
	
			
				 7.
			Except as expressly set forth in Part G of Schedule 1, there are no provisions for any, and Tenant has no, options with respect to the Premises or all or any portion of the Property.

			
	
			
				 8.
			No action, voluntary or involuntary, is pending against Tenant under federal or state bankruptcy or insolvency law.

		 

		

			Exhibit C

		

		

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			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

			
	
			
				 9.
			The undersigned has the authority to execute and deliver this Certificate on behalf of Tenant and acknowledges that all Beneficiaries will rely upon this Certificate in purchasing the Property or extending credit to Landlord or its successors in interest.

			
	
			
				 10.
			This Certificate shall be binding upon the successors, assigns and representatives of Tenant and any party claiming through or under Tenant and shall inure to the benefit of all Beneficiaries.

		
			IN WITNESS WHEREOF, Tenant has executed this Certificate this ____ day of __________, 20___.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Name of Tenant

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						By:

					
					
						 

					
					
						 

				
	
					
						 

					
					
						Title:

					
					
						 

					
					
						 

				

		
			 
		

		

		

		 

		

			Exhibit C

		

		

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			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		SCHEDULE 1 TO TENANT ESTOPPEL CERTIFICATE
		

		
			 
		

		
			Lease Documents, Lease Terms and Current Status
		

		
			A.Date of Lease:
		

		
			B.Parties:
		

		
			1.Landlord:
		

		
			2.Tenant:
		

		
			C.Premises:
		

		
			D.Modifications, Assignments, Supplements or Amendments to Lease:
		

		
			 
		

		
			 
		

		
			E.Commencement Date:
		

		
			F.Expiration of Current Term:
		

		
			G.Option Rights:
		

		
			 
		

		
			 
		

		
			H.Security Deposit Paid to Landlord: $
		

		
			I.Current Minimum Annual Rent: $
		

		
			J.Current Annual Operating Expenses: $
		

		
			K.Current Total Rent: $
		

		
			L.Square Feet Demised:
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit C

		

		

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		EXHIBIT D
		

		
			 
		

		
			Base Building Shell Specifications
		

		
			 
		

		
			 
		

		
			GENERAL DESCRIPTION
		

		
			The Facility will be approximately 76,162 Rentable sq. ft. located on a parcel at Liberty Center at Rio Salado in Tempe, AZ.
		

		
			1st Floor Office76,162 Rentable Square Feet
		

		
			TOTAL76,162 Rentable  Square Feet
		

		
			Or
		

		
			2nd Floor Office77,990 Rentable  Square Feet
		

		
			TOTAL77,990 Rentable  Square Feet
		

		
			The design of the facility will be by registered architects and engineers. The design will include base building architectural, civil, mechanical, plumbing, fire protection, electrical and landscape plans. These plans will be in sufficient detail to allow issuance of a building permit by local authorities. Landlord shall provide plans, specifications, elevations & renderings of proposed building for Deloitte review.
		

		
			 
		

		
			Landlord shall provide, at its sole cost and expense, the base building as defined below, in addition to any Tenant Allowance allocated to the Tenant, all in good condition and proper working order.
		

		
			 
		

		
			DIVISION 1 - GENERAL CONDITIONS
		

		
			The project will be supplied with a full time superintendent to manage the day-to-day operation of the construction.  He will have a field office and equipment adequate to construct this facility.
		

		
			 
		

		
			All work to be compliant with governing local and national codes and ordinances.
		

		
			 
		

		
			DIVISION 2 - SITEWORK
		

		
			Earthwork
		

			
	
			
				 ·
			

			
	
			
			Mass Grading – Provide mass grading of the entire site.

			
	
			
				 ·
			

			
	
			
			Landlord is to comply with all geotechnical report requirements and recommendations including compaction, stabilization, soil removal, etc.

		
			Site Utilities
		

			
	
			
				 ·
			

			
	
			
			Domestic Water, Sewer, Fire Line, Storm Water and Drywells.

		
			Masonry
		

			
	
			
				 ·
			

			
	
			
			Provide 3’ gabion and berm screen walls at front parking lot. All work to be coordinated with final Landscape design and governing codes and ordinances.

			
	
			
				 ·
			

			
	
			
			Provide 6’ high masonry walls at trash enclosures with gates. Enclosures to be sized for waste dumpster and recycling dumpster.

		
			Pavement
		

			
	
			
				 ·
			

			
	
			
			Automobile Parking – Provide six per thousand automobile parking stalls with handicapped parking as required by code.

			
	
			
				 ·
			

			
	
			
			Non-handicapped parking stall dimensions to be in accordance with local code.

		 

		

			Exhibit D

		

		

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				 ·
			

			
	
			
			Paving to be 2" asphalt over 4" ABC at parking stalls and 3” asphalt over 6” ABC at fire lanes. Some areas to have a concrete curb and gutter, majority will be cast in place curb only. Striping and handicapped parking signage provided by Landlord

		
			Landscaping
		

			
	
			
				 ·
			

			
	
			
			Landscape and irrigation to be included to match the standards set at the Liberty Center.

		
			 
		

		
			DIVISION 3 - CONCRETE
		

		
			Site Concrete
		

			
	
			
				 ·
			

			
	
			
			All sidewalks to be grey color.

			
	
			
				 ·
			

			
	
			
			All parking lot concrete curbs will be gray concrete and per MAG standards.

		
			Cast-In-Place Concrete
		

			
	
			
				 ·
			

			
	
			
			Concrete Floor Slabs - Provide 4" thick, un-reinforced concrete, steel trowel finish leveled to a tolerance of 1⁄4” over 10 feet cumulative on minimum 4" ABC.

			
	
			
				 ·
			

			
	
			
			All floor surfaces to be in a reasonable condition ready to receive floor covering by tenant. Concrete floor to saw cut in both directions at a spacing recommended by the structural engineer.

			
	
			
				 ·
			

			
	
			
			Provide 30" wide steel reinforced concrete trenched foundations, or as required by the Geotechnical Report, under all precast concrete walls.

			
	
			
				 ·
			

			
	
			
			Provide 5’x5’ steel reinforced concrete foundations, or as required by the Geotechnical Report under all columns.

		
			Concrete Sealer
		

			
	
			
				 ·
			

			
	
			
			Provide VoComp20 floor sealer. Sealer will be provided at all exposed concrete slabs.

		
			 
		

		
			DIVISION 5 – METALS
		

		
			Structural Steel
		

			
	
			
				 ·
			

			
	
			
			Steel structure to be a combination of prime painted long span bar joists, beams and wide flange columns or truss girders and tube columns. Roof deck to be 22-gauge, galvanized factory primed, standard ribbed deck. Column spacing to be approximately 30' (north-south) x 40’ (east-west). Clear height shall be as per base building design.

			
	
			
				 ·
			

			
	
			
			All Structural Steel design to be as per final structural design with the above criteria as a minimum.

			
	
			
				 ·
			

			
	
			
			Provide building canopies which will be steel and painted.

		
			Miscellaneous Steel
		

			
	
			
				 ·
			

			
	
			
			Provide roof hatch and steel platform with prefabricated ladder and handrail (ship’s ladder) leading to roof from 2nd Floor.

		
			 
		

		
			DIVISION 6 – CARPENTRY
		

		
			Intentionally left blank.
		

		
			 
		

		

		

		 

		

			Exhibit D

		

		

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		DIVISION 7 - THERMAL AND MOISTURE PROTECTION
		

		
			Roofing
		

			
	
			
				 ·
			

			
	
			
			Roof to be a white foam roof with rigid insulation (R-value equal to 30) meeting LEED requirements for reflectivity. This system is to be applied in accordance with manufacturer's specifications, and shall carry a manufacturer's ten (10) year warranty.

		
			Exterior Wall Insulation
		

			
	
			
				 ·
			

			
	
			
			None to be included in T.I.

		
			 
		

		
			DIVISION 8 - DOORS AND WINDOWS
		

		
			Doors/Frames/Hardware
		

			
	
			
				 ·
			

			
	
			
			Provide hollow metal and aluminum/glass doors in exterior walls for building ingress and egress for shell condition.

			
	
			
				 ·
			

			
	
			
			Provide hollow metal door in hollow metal frames for all base building rooms (electric rooms, janitor’s closets, etc.).

		
			Glass/Glazing
		

			
	
			
				 ·
			

			
	
			
			Glass to be 1" insulated, low e, high performance, tinted glass. Frames and mullions to be clear anodized.

		
			 
		

		
			DIVISION 9 - FINISHES
		

		
			Base Building Rooms
		

			
	
			
				 ·
			

			
	
			
			Landlord shall provide complete and finished all core building areas, including restrooms, stair wells, and primary electrical room.

			
	
			
				 ·
			

			
	
			
			Building Lobby: The lobby to include all framing, hard (drywall) ceiling, drywall, porcelain tile flooring, wood veneer wainscot paneling, vinyl wall covering (type II) above wainscoting and in hallways, solid wood factory stained double entry doors with metal painted frames and light fixtures.

			
	
			
				 ·
			

			
	
			
			Restrooms: Restrooms shall include all framing, drywall, ceilings, porcelain tile flooring, porcelain tile on wet and adjacent perpendicular walls, granite counter tops, vinyl wall covering (type II) above ceramic tile wall, automatic sensor sinks, non-metal or laminate toilet partitions (ceiling hung), plumbing fixtures and light fixtures.

			
	
			
				 ·
			

			
	
			
			All other rooms to have painted drywall finish.

		
			Building Perimeter Walls
		

			
	
			
				 ·
			

			
	
			
			To be part of Tenant Improvement Allowance.

		
			Ceilings
		

			
	
			
				 ·
			

			
	
			
			Tenant will provide all acoustic and drywall ceilings except in base building rooms being constructed by the Landlord.

		
			Drywall - Paint/Decorating
		

			
	
			
				 ·
			

			
	
			
			Fire riser room and electrical rooms will be framed with metal studs and drywall. Walls will extend to 6” above tenant provided ceilings. Walls will be fire taped only.

			
	
			
				 ·
			

			
	
			
			Exterior faces of exterior walls are to be painted in a color approved by the owner. Up to two accent stripes are included. Exterior wall material and painting subject to approval of Tenant.

		 

		

			Exhibit D

		

		

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				 ·
			

			
	
			
			Exterior hollow metal doors and frames are to be painted to match the field color of the tilt wall panels, inside and out.

		
			 
		

		
			DIVISION 10 – SPECIALTIES
		

		
			Provide complete restroom accessories.
		

		
			 
		

		
			DIVISION 11 – EQUIPMENT
		

		
			Intentionally Blank
		

		
			 
		

		
			DIVISION 12 – FURNISHINGS
		

		
			Intentionally Blank
		

		
			 
		

		
			DIVISION 13 - SPECIAL CONSTRUCTION
		

		
			Intentionally Blank
		

		
			 
		

		
			DIVISION 14 - CONVEYING SYSTEMS
		

		
			Intentionally Blank
		

		
			 
		

		
			DIVISION 15 - MECHANICAL HVAC
		

		
			Base building HVAC System shall be an air cooled VAV Rooftop system with multiple main RTU’s on the roof provided and installed by landlord. All air cooled RTU’s shall be DX systems with electric reheat provided by VAV terminal units located at the perimeter zones within the space provided by tenant. Each RTU shall be provided complete with a VFD, direct drive motor, air economizer, and double wall construction and VAV relief fan. Main units to be based on and able to provide the following:
		

		
			i.Zoning, low and medium pressure duct & distribution, diffusers, VAV’s and controls by Tenant. Ductwork will be stubbed to underside of deck and include the main medium pressure duct loop feeding the entire floor by landlord only.
		

		
			 
		

		
			ii.Landlord to provide web based Building Automation System that will be expanded through Tenant’s installation of air distribution system at Landlord’s cost.
		

		
			Provide all screening of the rooftop units as required by the municipality.
		

		
			Plumbing
		

			
	
			
				 ·
			

			
	
			
			Provide one sanitary feed from 5' outside the exterior wall stubbed into the building and connected to restrooms with stub outs for future Tenant connection.

			
	
			
				 ·
			

			
	
			
			Provide six (6) hose bibs – one per exterior façade of the building and two on the roof on east and west sides.

			
	
			
				 ·
			

			
	
			
			Provide complete restrooms as required by code.

			
	
			
				 ·
			

			
	
			
			Provide water fountains as required by code for actual office occupancy. 

		
			Fire Protection
		

			
	
			
				 ·
			

			
	
			
			Provide a fire protection lead in from 5' outside the exterior wall stubbed into the sprinkler riser room location.

			
	
			
				 ·
			

			
	
			
			Provide sprinkler system throughout the facility in accordance with NFPA standards and installed per Tenant plans. System to be FM compliant.

		
			 
		

		

		

		 

		

			Exhibit D

		

		

			Page | 4

		

		

			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		DIVISION 16 – ELECTRICAL
		

		
			All interior lighting, except in Base Building Rooms, to be provided by Tenant.
		

		
			Landlord to provide a minimum 2000-ampere, 277/480-volt, 3-phase, 4-wire main electrical service.
		

		
			Total capacity and system installed to meet the following minimum criteria:
		

		
			•Provide feeds, distribution and house panels for building. All conductors including panel bus bars are to be copper.
		

		
			•Emergency Lighting for Tenant Design - To be installed throughout building to conform to local code.
		

		
			•Exterior Lighting to meet code.
		

		
			•Provide 277 volt connection for exterior building-mounted or monument signage. 
		

		
			•Primary & Secondary conduits.
		

		
			•A total of four (4) 4” telecommunication conduits stubbed into the building to right of way of property.
		

		
			Fire Alarm
		

			
	
			
				 ·
			

			
	
			
			Landlord is responsible for a complete, fully expandable fire alarm system for Tenant Occupancy.

		
			 
		

		
			DIVISION 17 – LEED Certification
		

		
			The core and shell building will be designed and constructed in accordance with the U.S. Green Building Council guidelines and will pursue a LEED Core & Shell certified rating.
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit D

		

		

			Page | 5

		

		

			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		EXHIBIT E
		

		
			 
		

		
			Space Plan
		

		
			 
		

		
			[to come]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit E

		

		

			Page | 1

		

		

			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		EXHIBIT F
		

		
			 
		

		
			Tenant Improvement Plans
		

		
			 
		

		
			[to be attached and incorporated herein once completed]
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit F

		

		

			Page | 1

		

		

			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		EXHIBIT G
		

		
			 
		

		
			Signage
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			Exhibit G

		

		

			Page | 1

		

		

			QB\129138.00037\24864053.9 

		

		

			 

		

 

		

			 

		

		EXHIBIT H
		

		
			 
		

		
			Covered/Reserved Parking Spaces
		

		
			 
		

		
			 
		

		 

		

			Exhibit H

		

		

			Page | 1

		

		

			QB\129138.00037\24864053.9Exhibit 1027

		

			 

		

		
			Exhibit 10.27
		

		
			 
		

		
			11/02 SOG(BY)-INS
		

		
			Revised 10/03
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			LEASE
		

		
			 
		

		
			CORPORATE CENTER PHASE II LIMITED PARTNERSHIP,
		

		
			a Delaware limited partnership
		

		
			Landlord
		

		
			 
		

		
			 
		

		
			 
		

		
			and
		

		
			 
		

		
			 
		

		
			CONEXIS BENEFITS ADMINISTRATORS, L.P. ,
		

		
			a Texas limited partnership
		

		
			Tenant
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			 

		

		

			10/02 SOG (BY)-INS

		

		

			Revised 10/03

		

		

			629620.v l

		

		

			DALLAS:74008/000l3:1276703v6

		

 

		

			 

		

		 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Page

				
	
					
						I:

					
					
						USE AND RESTRICTIONS ON USE

					
					
						I

				
	
					
						2.

					
					
						TERM

					
2 
				
	
					
						3.

					
					
						RENT

					
3 
				
	
					
						4.

					
					
						RENT ADJUSTMENTS

					
3 
				
	
					
						5.

					
					
						INTENTIONALLY DELETED

					
5 
				
	
					
						6.

					
					
						ALTERATIONS

					
5 
				
	
					
						7.

					
					
						REPAIR

					
6 
				
	
					
						8.

					
					
						LIENS

					
6 
				
	
					
						9.

					
					
						ASSIGNMENT AND  SUBLETTING

					
7 
				
	
					
						10.

					
					
						INDEMNIFICATION

					
9 
				
	
					
						11.

					
					
						INSURANCE

					
9 
				
	
					
						12.

					
					
						WAIVER OF SUBROGATION

					
10 
				
	
					
						13.

					
					
						SERVICES   AND   UTILITIES

					
10 
				
	
					
						14.

					
					
						HOLDING OVER

					
11 
				
	
					
						15.

					
					
						SUBORDINATION

					
11 
				
	
					
						16.

					
					
						RULES AND REGULATIONS

					
11 
				
	
					
						17.

					
					
						REENTRY BY LANDLORD

					
11 
				
	
					
						18.

					
					
						DEFAULT

					
12 
				
	
					
						19.

					
					
						REMEDIES

					
13 
				
	
					
						20.

					
					
						TENANT'S BANKRUPTCY OR INSOLVENCY.

					
15 
				
	
					
						21.

					
					
						QUIET ENJOYMENT

					
16 
				
	
					
						22.

					
					
						CASUALTY

					
16 
				
	
					
						23.

					
					
						EMINENT DOMAIN

					
17 
				
	
					
						24.

					
					
						SALE BY LANDLORD

					
17 
				
	
					
						25.

					
					
						ESTOPPEL CERTIFICATES

					
17 
				
	
					
						26.

					
					
						SURRENDER OF PREMISES

					
17 
				
	
					
						27.

					
					
						NOTICES

					
18 
				
	
					
						28.

					
					
						TAXES PAYABLE BY TENANT

					
18 
				
	
					
						29.

					
					
						RELOCATION OF TENANT

					
18 
				
	
					
						30.

					
					
						PARKING

					
19 
				
	
					
						31.

					
					
						DEFINED TERMS AND HEADINGS

					
20 
				
	
					
						32.

					
					
						TENANT'S AUTHORITY

					
20 
				
	
					
						33.

					
					
						FINANCIAL STATEMENTS AND CREDIT REPORTS

					
20 
				
	
					
						34.

					
					
						COMMISSIONS

					
20 
				
	
					
						35.

					
					
						TIME AND APPLICABLE LAW

					
20 
				
	
					
						36.

					
					
						SUCCESSORS AND ASSIGNS

					
20 
				
	
					
						37.

					
					
						ENTIRE AGREEMENT

					
21 
				
	
					
						38.

					
					
						EXAMINATION NOT OPTION

					
21 
				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			i

		

		

			10/02 SOG (BY)-INS

		

		

			Revised I 0/03

		

		

			629620.v l

		

		

			DALLAS:74008/000l 3:I 276703v6

		

 

		

			 

		

		 
		

		
			TABLE OF CONTENTS
		

		
			(continued)
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						Page

				
	
					
						39.

					
					
						 RECORDATION

					
21 
				
	
					
						40.

					
					
						RIGHT OF FIRST OFFER.

					
21 
				
	
					
						41.

					
					
						RENEWAL OPTION

					
22 
				
	
					
						42.

					
					
						TERMINATION OPTION

					
23 
				
	
					
						43.

					
					
						USE OF ROOFTOP SPACE

					
23 
				
	
					
						44.

					
					
						 GUARANTY

					
25 
				
	
					
						45

					
					
						LIMITATION OF LANDLORD 'S LIABILITY

					
25 
				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						EXHIBIT A  

					
					
						FLOOR PLAN DEPICTING THE PREMISES SITE

				
	
					
						EXHIBIT A- I 

					
					
						PLAN

				
	
					
						EXHIBIT B

					
					
						INITIAL ALTERATIONS

				
	
					
						EXHIBIT B- 1

					
					
						FIRST MUST-TAKE SPACE ALTERATIONS SECOND 

				
	
					
						EXHIBIT B-2 

					
					
						MUST-TAKE SPACE ALTERATIONS 

				
	
					
						EXHIBIT C 

					
					
						COMMENCEMENT DATE MEMORANDUM RULES 

				
	
					
						EXHIBIT D 

					
					
						AND REGULATIONS

				
	
					
						EXHIBIT E

					
					
						FORM OF CONTINUING LEASE GUARANTY

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			ii

		

		

			11/02 SOG (BY)-INS

		

		

			Revised 10/03

		

		

			629620.v l

		

		

			DALLAS:74008/000l3:1276703v6

		

		

			 

		

 

		

			 

		

		GROSS (BY) OFFICE LEASE 
		

		
			REFERENCE  PAGES
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						BUILDING:

					
					
						Las Colinas Highlands

				
	
					
						LANDLORD:

					
					
						Corporate Center Phase II Limited Partnership, a Delaware limited partnership

				
	
					
						LANDLORD'S ADDRESS:

					
					
						c/o RREEF Management Company 
1406 Halsey Way, Suite 110 
Carrollton, Texas 75007
Attn: District Manager - Las Colinas

				
	
					
						WIRE INSTRUCTIONS AND/OR ADDRESS FOR RENT PAYMENT:

					
					
						Bank of America
Middle Market Banking, #1459 
333 South Hope Street, Suite 1300 
Los Angeles, California 90071 
Attn: Debbie Green

				
	
					
						LEASE REFERENCE DATE:

					
					
						August 2, 2004

				
	
					
						TENANT:

					
					
						Conexis Benefits Administrators , L.P., a Texas limited partnership

				
	
					
						TENANT'S NOTICE ADDRESS:

					
					
						Conexis Benefits Administrators , L.P.
721 South Parker, Suite 300
Orange, California 92868 
Attn: Ivonne Roca
Vice President of Human Resources

				
	
					
						GUARANTOR:

					
					
						Word and Brown Insurance Administrators, Inc.

				
	
					
						PREMISES ADDRESS:

					
					
						6191 N. State Highway 161
Suites 300 and 400 
Irving, Texas 75038

				
	
					
						PREMISES  RENTABLE  AREA:

					
					
						Approximately 88,035 rentable sq. ft. (for outline or Premises see floor plans attached at  Exhibit A) made up as follows:

				
	
					
						 

					
					
						"Initial Premises":

					
					
						3rd Floor

					
					
						29,345 rsf

				
	
					
						 

					
					
						 

					
					
						4th Floor

					
					
						29,345 rsf

				
	
					
						 

					
					
						 

					
					
						 

					
					
						58,690 rsf

				
	
					
						 

					
					
						"First Must  Take Space":

					
					
						2nd  Floor

					
					
						13,476 rsf

				
	
					
						 

					
					
						"Second Must Take Space'':

					
					
						2nd Floor

					
					
						15,869 rsf

				

		
			 
		

			
					
						 

					
					
						 

				
	
					
						INITIAL PREMISES SCHEDULED COMMENCEMENT DATE:

					
					
						November 1, 2004

				
	
					
						FIRST MUST-TAKE SPACE SCHEDULED COMMENCEMENT DATE:

					
					
						November l, 2006

				
	
					
						SECOND MUST-TAKE SPACE SCHEDULED COMMENCEMENT DATE:

					
					
						November 1, 2007

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			iii

		

		

			11/02 SOG (BY)-INS

		

		

			Revised 10/03

		

		

			629620.v l

		

		

			DALLAS:74008/000l3:1276703v6

		

 

		

			 

		

		 
		

			
					
						 

					
					
						 

				
	
					
						TERM OF LEASE:

					
					
						Approximately eleven (11) years, zero (0) months and zero (0) days beginning on the Commencement Date and ending on the Termination Date. The period from the Commencement Date to the last day of the same month is the "Commencement Month."

				
	
					
						TERMINATION DATE:

					
					
						October 31, 2015 or in the event that the Commencement Date does not start on the Initial Premises Scheduled Commencement Date (see Article 2), then, the last day of the 132"d full calendar month after (if the Commencement Month is not a full calendar month), or from and including (if the Commencement Month is a full  calendar month), the Commencement Month

				
	
					
						 

					
						ANNUAL RENT and MONTHLY INSTALLMENT OF RENT FOR INITIAL PREMISES (Article 3):

					
					
						 

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Period

					
					
						Rentable Square

					
					
						Annual Rent

					
					
						Annual Rent

					
					
						Monthly  Installment

				
	
					
						from

					
					
						through

					
					
						Footage

					
					
						Per  Square Foot

					
					
						 

					
					
						of Rent

				
	
					
						11/1/04

					
					
						10/31/05

					
					
						58,690

					
					
						$0.00 +  E

					
					
						$0.00 

					
					
						$0.00 

				
	
					
						11/1/05

					
					
						10/31/06

					
					
						58,690

					
					
						$17.25 + E

					
					
						$1,012,402.50 

					
					
						$84,366.88 

				
	
					
						11/1/06

					
					
						10/31/07

					
					
						58,690

					
					
						$17.75 +  E

					
					
						$1,041,747.50 

					
					
						$86,812.29 

				
	
					
						11/1/07

					
					
						10/31/08

					
					
						58,690

					
					
						$18.25 + E

					
					
						$1,071,092.50 

					
					
						$89,257.71 

				
	
					
						11/1/08

					
					
						10/31/09

					
					
						58,690

					
					
						$19.00 +  E

					
					
						$1,1 15,110.00

					
					
						$92,925 .83

				
	
					
						11/1/09

					
					
						10/31/10

					
					
						58,690

					
					
						$19.50 + E

					
					
						$1,144,455.00 

					
					
						$95,371.25 

				
	
					
						11/11/10

					
					
						10/31/11

					
					
						58,690

					
					
						$20.00 + E

					
					
						$1,173,800.00 

					
					
						$97,816.67 

				
	
					
						11/1/11

					
					
						10/31/12

					
					
						58,690

					
					
						$20.00 + E

					
					
						$1,173,800.00 

					
					
						$97,816.67 

				
	
					
						11/1/12

					
					
						10/31/13

					
					
						58,690

					
					
						$20.50 +  E

					
					
						$1,203, 145.00

					
					
						$100,262.08 

				
	
					
						11/1/13

					
					
						10/31/14

					
					
						58,690

					
					
						$20.50 +  E

					
					
						$1,203,145.00 

					
					
						$100,262.08 

				
	
					
						11/1/14

					
					
						10/31/15

					
					
						58,690

					
					
						$21.00 + E

					
					
						$1,232,490.00 

					
					
						$102,707.50 

				

		
			 
		

		
			* +E = plus Electric
		

		
			 
		

		
			ANNUAL RENT and MONTHLY INSTALLMENT OF RENT FOR FIRST 
MUST-TAKE SPACE (Article 3):
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Period

					
					
						Rentable Square 

					
					
						Annual Rent 

					
					
						Annual Rent

					
					
						Monthly Installment

				
	
					
						from

					
					
						through

					
					
						Footage

					
					
						Per Square Foot

					
					
						 

					
					
						of Rent

				
	
					
						11/1/06

					
					
						10/31/07

					
					
						13,476

					
					
						$18.00 + E

					
					
						$242,568.00 

					
					
						$20,214.00 

				
	
					
						11/1/07

					
					
						10/31/08

					
					
						13,476

					
					
						$18.50 + E

					
					
						$249,306.00 

					
					
						$20,775.50 

				
	
					
						11/1/08

					
					
						10/31/09

					
					
						13,476

					
					
						$19.25 + E

					
					
						$259,413.00 

					
					
						$21,617.75 

				
	
					
						11/1/09

					
					
						10/31/10

					
					
						13,476

					
					
						$19.75 + E

					
					
						$266, 151.00

					
					
						$22,179.25 

				
	
					
						11/1/10

					
					
						10/31/11

					
					
						13,476

					
					
						$20.25 + E

					
					
						$272,889.00 

					
					
						$22,740.75 

				
	
					
						11/1/11

					
					
						10/31/12

					
					
						13,476

					
					
						$20.25 + E

					
					
						$272,889.00 

					
					
						$22,740.75 

				
	
					
						11/1/12

					
					
						10/31/13

					
					
						13,476

					
					
						$20.75 + E

					
					
						$279,627 .00

					
					
						$23,302.25 

				
	
					
						11/1/13

					
					
						10/31/14

					
					
						13,476

					
					
						$20.75 + E

					
					
						$279,627.00 

					
					
						$23, 302.25

				
	
					
						11/1/14

					
					
						10/31/15

					
					
						13,476

					
					
						$21.25 + E

					
					
						$286,365.00 

					
					
						$23,863.75 

				

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			iv

		

		

			11/02 SOG (BY)-INS

		

		

			Revised 10/03

		

		

			629620.v l

		

		

			DALLAS:74008/000l3:1276703v6

		

 

		

			 

		

		 
		

		
			ANNUAL RENT and MONTHLY INSTALLMENT OF 
		

		
			RENT FOR SECOND MUST-TAKE SPACE (Article 3):
		

		
			 
		

			
					
						Period

					
					
						Rentable Square 

					
					
						Annual Rent 

					
					
						Annual Rent

					
					
						Monthly Installment

				
	
					
						from

					
					
						through

					
					
						Footage

					
					
						Per Square Foot

					
					
						 

					
					
						of Rent

				
	
					
						11/1/07

					
					
						10/31/08

					
					
						15,869

					
					
						$18.75 +  E

					
					
						$297,543.75 

					
					
						$24,795.31 

				
	
					
						11/1/08

					
					
						10/31/09

					
					
						15,869

					
					
						$19.50 +  E

					
					
						$309,445.50 

					
					
						$25,787.13 

				
	
					
						11/1/09

					
					
						10/31/10

					
					
						15,869

					
					
						$20.00 +  E

					
					
						$317,380.00 

					
					
						$26,448.33 

				
	
					
						1l/1/10

					
					
						l0/31/11

					
					
						15,869

					
					
						$20.50 + E

					
					
						$325,314.50 

					
					
						$27,109.54 

				
	
					
						11/l /l I

					
					
						I0/3 1/12

					
					
						15,869

					
					
						$20.50 + E

					
					
						$325,314.50 

					
					
						$27,109.54 

				
	
					
						11/1/12

					
					
						10/31/13

					
					
						15,869

					
					
						$21.00 + E

					
					
						$333,249.00 

					
					
						$27,770.75 

				
	
					
						11/1/13

					
					
						10/31/14

					
					
						15,869

					
					
						$21.00 +  E

					
					
						$333,249.00 

					
					
						$27,770.75 

				
	
					
						1 1/1/  14

					
					
						I0/3  1/15

					
					
						15,869

					
					
						$21.50 +  E

					
					
						$341, 183.50

					
					
						$28,431.96 

				

		
			 
		

			
					
						BASE YEAR (EXPENSES): 

					
					
						January 1, 2004 to December 31, 2004

				
	
					
						BASE YEAR (INSURANCE):

					
					
						January 1, 2004 to December 31, 2004

				
	
					
						BASE YEAR (TAXES):

					
					
						Taxes for January 1, 2004 to December 31, 2004

				
	
					
						TENANT'S PROPORTIONATE  SHARE:

					
					
						29.32% which shall be increased to 36.05% on the FMTS Commencement Date (as defined in Section 2.2) and which shall be further increased to 43.98% on the SMTS Commencement Date (as defined in Section 2.2) (88,035 SF out of 200,167 SF)

				
	
					
						SECURITY DEPOSIT:

					
					
						N/A

				
	
					
						ASSIGNMENT/SUBLETTING FEE:

					
					
						$1,000.00

				
	
					
						AFTER-HOURS HVAC COST:

					
					
						$50.00 per hour (with a two (2) hour minimum), subject to change at any time

				
	
					
						PARKING

					
					
						See Article 30 on Parking

				
	
					
						REAL ESTATE BROKER DUE COMMISSION:

					
					
						CB Richard  Ellis, Inc. and Cushman  & Wakefield  of
Texas, Inc.

				
	
					
						TENANT'S SIC CODE:

					
					
						6411

				
	
					
						BUILDING BUSINESS HOURS:

					
					
						Monday through Friday      7:00 a.m. to 6:00 p.m.

				
	
					
						 

					
					
						Saturday                                 8:00 a.m. to 1:00 p.m.

				
	
					
						AMORTIZATION RATE:

					
					
						Twelve percent (12%) per annum

				

		
			 
		

		
			 
		

		
			The Reference Pages information is incorporated into and made a part of the Lease. In the event of any conflict between any Reference Pages information and the Lease, the Lease shall control. This Lease includes Exhibits A through E, all of which are made a part of this Lease.
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

			v

		

		

			11/02 SOG (BY)-INS

		

		

			Revised 10/03

		

		

			629620.v l

		

		

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			vi

		

		

			11/02 SOG (BY)-INS

		

		

			Revised 10/03

		

		

			629620.v l

		

		

			DALLAS:74008/000l3:1276703v6

		

 

		

			 

		

		LEASE
		

		
			 
		

		
			By this Lease Landlord leases to Tenant and Tenant leases from Landlord the Premises in the Building as set forth and described on the Reference Pages. The Premises are depicted on the floor plan attached hereto as Exhibit A, and the Building is depicted on the site plan attached hereto as Exhibit A-1 .  The Reference Pages, including all  terms  defined thereon, are incorporated  as part of this Lease.
		

		
			 
		

		
			l .USE AND RESTRICTIONS ON USE.
		

		
			 
		

		
			l . lThe Premises are to be used solely for general office purposes, associated call center and other high density office applications necessary for Tenant to operate it s business.   Landlord makes no representation or warranty, express or implied, regarding the suitability of the Premises for such use. All implied warranties with respect to the Premises, including but not limited to those of merchantability and fitness for a particular  purpose  are expressly  negated  and waived. Tenant shall not do or permit anything to be done in or about the Premises which will in any way obstruct or interfere with the rights of other tenants or occupants of the Building or injure, or disturb them, or allow the Premises to be used for any improper, immoral, unlawful, or objectionable purpose, or commit any waste, or overload the Building's structure or systems. Tenant shall not do, permit or suffer in, on, or about the Premises the sale of any alcoholic liquor without the written consent of Landlord first obtained. Tenant shall comply with all governmental laws, ordinances and regulations applicable to the use of the Premises and its occupancy (including, without limitation, federal, state and local laws regarding access for handicapped or disabled persons, such as the Americans With Disabilities Act of 1990, as amended ("ADA") and all regulations promulgated thereunder), and shall promptly comply with all governmental orders  and directions for the correction, prevention and abatement of any violations in the Building or appurtenant land, caused or permitted by, or resulting from the specific use by, Tenant, or in or upon, or in connection with, the Premises, all at Tenant's sole expense. Tenant, at its sole cost and expense, shall be solely responsible for making any modifications or alterations to the Premises, subject  to compliance with Article 6 of this Lease, in order to comply with federal, state or local ADA requirements. Tenant, at its sole cost and expense, shall comply with all ASHRAE and BOMA indoor air quality requirements applicable to the Premises, and with federal, state and local indoor air quality requirements applicable to the Premises; if, as a result of Tenant' s use thereof, supplemental heating, ventilation and air conditioning units are required to the Premises at any time during the Term, then Tenant, at its sole cost and expense, shall install the same, subject to compliance with Article 6 of this Lease. Tenant shall not do or permit anything to be done on or about the Premises or bring or keep anything into the Premises which will in any way increase the rate of, invalidate or prevent the procuring of any insurance protecting against loss or damage to the Building or any of its contents by fire or other casualty or against liability for damage to property or injury to person s in or about the Building or any part thereof.
		

		
			 
		

			
	
			
				 1.2
			Landlord represents and warrants to Tenant, that, as of date of its execution of this Lease, to Landlord's knowledge, the Premises and the common areas of the Building are substantially in compliance with Environmental Laws (defined below). Tenant shall not, and shall not direct, suffer or permit any of its agents, contractors, employees, licensees or invitees (collectively, the "Tenant Entities") to at any time handle, use, manufacture, store or dispose of in or about the Premises or the Building any (collectively "Hazardous Materials") flammables, explosives, radioactive materials, hazardous wastes or materials, toxic wastes or materials, or other similar substances, petroleum products or derivatives or any substance subject to regulation by or under any federal, state and local laws and ordinances relating to the protection of the environment or the  keeping, use or disposition of environmentally hazardous materials, substances, or wastes, presently in effect or hereafter adopted, all amendments to any of them, and all rules and regulations issued pursuant to any of such laws or ordinances (collectively "Environmental Laws"), nor shall Tenant suffer or permit any Hazardous Materials to be used in any manner not fully in compliance with all Environmental Laws, in the Premises or the Building and appurtenant land or allow the environment to become contaminated with any Hazardous Material s. Notwithstanding the foregoing, Tenant may handle, store, use or dispose of products containing small quantities of Hazardous Materials (such as aerosol cans containing insecticides, toner for copiers, paints, paint remover and the like) to the extent customary and necessary for the use of the Premises for general office purposes; provided that Tenant shall always handle , store, use, and dispose of any such Hazardous Materials in a safe and lawful manner and never allow such Hazardous Materials to contaminate the Premises, Building and appurtenant land or the environment. Tenant shall protect, defend, indemnify and hold each and all of the Landlord Entities (as defined in Article 31) harmless from and against any and all loss, claims,  liability  or  costs (including court costs and attorney's fees) incurred by reason of  any  actual  or  asserted  failure  of  Tenant  to  fully comply with  all applicable Environmental Laws, or the presence, handling, use or disposition  in or from the Premises of any Hazardous Materials by Tenant or any Tenant Entity (even though  permissible  under  all  applicable Environmental  Laws or the provisions  of this Lease), or by reason  of any actual or asserted failure of Tenant to keep,

		
			 
		

		
			 
		

		

		

		 

		

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			observe, or perform any provision of this Section 1.2.  This indemnity shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.
		

		
			 
		

			
	
			
				 1.3
			Tenant and the Tenant Entities will be entitled to the non-exclusive use of the common areas of the Building as they exist from time to time during the Term, including the parking facilities, subject to Landlord 's rules and regulations regarding such use. However , in no event will Tenant or the Tenant Entities park more vehicles in the parking facilities than Tenant's Proportionate Share of the total parking spaces available for common use without written approval of Landlord. Landlord agrees to provide spaces on an as needed basis, if available, which spaces shall be subject to (i) Article 30 of this Lease and (ii) payment by Tenant of the then prevailing monthly parking rent for parking spaces in the Building. The foregoing shall not be deemed to provide Tenant with an exclusive right to any parking spaces or any guaranty of the availability of any particular parking spaces or any specific number of parking spaces.

		
			 
		

			
	
			
				 2.
			

			
	
			
			TERM.

		
			 
		

			
	
			
				 2.1
			The Term of this Lease shall begin on the date ("Commencement Date") which shall be the later of the Initial Premises Scheduled Commencement Date as shown on the Reference Pages and the date that Landlord shall tender possession of the Initial Premises to Tenant, and shall terminate on the date as shown on the Reference Pages ("Termination Date"), unless sooner terminated by the provisions of this Lease. The Term for the First Must-Take Space shall begin on the date (the "FMTS Commencement Date") which shall be the later of the First Must-Take Space Scheduled Commencement Date as shown on the Reference Pages and the date Landlord shall tender possession of the First Must-Take Space and reference to "Premises" under this Lease shall thereupon mean the Initial Premises as expanded by the First Must Take Space. The Term for the Second Must-Take Space shall begin on the date (the "SMTS Commencement Date") which shall be the later of the Second Must-Take Space Scheduled Commencement Date as shown on the Reference Pages and the date Landlord shall tender possession of the Second Must-Take Space and reference to "Premises" under this Lease shall thereupon mean the Initial Premises as expanded by the First Must-Take Space and the Second Must-Take Space.

		
			 
		

			
	
			
				 2.2
			Landlord shall tender possession of the Initial Premises, the First Must-Take Space and the Second Must- Take Space, as applicable, with all the work to be performed by Landlord pursuant to the attached Exhibit B, Exhibit B-1 and Exhibit B-2, as applicable, substantially completed as anticipated thereunder. Tenant shall deliver a punch list of items not completed within thirty (30) days after Landlord tenders possession of the Initial Premises, the First Must-Take Space and the Second Must-Take Space, as applicable, and Landlord agrees to proceed with due diligence to perform its obligations regarding such items.

		
			 
		

			
	
			
				 2.3
			As and when required by Landlord, Tenant shall, at Landlord's request, execute and deliver a memorandum agreement or agreements provided by Landlord generally in the form of Exhibit C attached hereto, setting forth the actual Commencement Date, and/or, as applicable, the actual FMTS Commencement Date and/or the actual SMTS Commencement Date, Tenant 's Proportionate Share, the Termination Date and, if necessary, a revised rent schedule or schedules. Should Tenant fail to do so within thirty (30) days after Landlord's request, the information set forth in such memorandum or memoranda provided by Landlord shall be conclusively presumed to be agreed and correct.

		
			 
		

			
	
			
				 2.4
			Tenant agrees that in the event of the inability of Landlord to deliver possession of (a) the Initial Premises on the Initial Premises Scheduled Commencement Date, or (b) the First- Must Take Space on the First Must-Take Space Scheduled Commencement Date, or (c) the Second Must-Take Space on the Second Must-Take Space Scheduled Commencement Date, for any reason, Landlord shall not be liable for any damage resulting from such inability, but Tenant shall not be liable for any rent payable for the applicable space until the time when Landlord can, after notice to Tenant, deliver possession of the applicable space to Tenant, so that for example, if Landlord for whatever reason is unable to deliver the First Must-Take Space on the First Must-Take Space Scheduled Commencement Date, Tenant shall continue to be liable for payment of rent for the Initial Premises but shall not be liable for payment of rent for the First Must-Take Space pending delivery of possession of the First Must-Take Space to Tenant. No such failure to give possession on the applicable scheduled commencement date shall affect the other obligations of Tenant under this Lease. Notwithstanding anything in this Lease to the contrary it is agreed that a "Tenant Delay" for purposes of this Lease shall mean any delay by Landlord in delivering possession of the applicable space which is as a result of: (a) Tenant's unreasonable failure to agree to plans and specifications and/or construction cost estimates or bids; (b) Tenant 's request for materials, finishes or installations other than Landlord 's standard except those, if any, that Landlord shall have expressly agreed to furnish without extension of time agreed by Landlord; (c) Tenant's change in any plans or specifications; or, (d) performance or completion by a party employed by Tenant (each of the foregoing,  a "Tenant Delay"). If any delay is the result of a Tenant Delay, the Commencement Date or, as applicable, the FMTS Commencement Date or the SMTS Commencement Date, as the case may

		
			 
		

		

		

		 

		

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			be, and the payment of rent under this Lease for the Initial Premises, or, as applicable, the First Must-Take Space or the Second Must-Take Space, as the case may be shall be accelerated by the number of days of such Tenant Delay.  If any delay is not a Tenant Delay, and is caused solely and entirely by Landlord's negligent or willful failure to comply with the time periods specified in Exhibit B, Exhibit B-1 and Exhibit B-2 for issue by Landlord of its response in connection with the approval of plans, drawings, and specifications  following delivery to Landlord of properly prepared and detailed plans, drawings, and specifications, and all information required by Landlord in connection therewith (a "Landlord Delay"), and if such Landlord Delay solely and entirely causes a delay in the occurrence  of the Commencement Date, or the FMTS Commencement Date or the SMTS Commencement Date, as applicable, then, in such event only, Tenant shall be allowed a per diem abatement of rent for each day's delay so caused. If Landlord is unable to deliver possession of the Initial Premises within one hundred twenty (120) days after the Initial Premises Scheduled Commencement Date (other than as a result of strikes, shortages of materials, labor disputes, act of God, or similar matters beyond the reasonable control of Landlord and Tenant is notified by Landlord in writing as to such delay), Tenant shall have the option to terminate this Lease unless said delay is as a result of a Tenant Delay or any negligent or willful misconduct on the part of Tenant or any Tenant Entity.
		

		
			 
		

			
	
			
				 2.5
			In the event Landlord permits Tenant, or any agent, employee or contractor of Tenant, to enter, use or occupy the Initial Premises prior to the Commencement Date, or the First Must-Take Space prior to the FMTS Commencement Date or the Second Must-Take Space prior to the SMTS Commencement Date, such entry, use or occupancy shall be subject to all the provisions of this Lease other than the payment of rent for the applicable space, including, without limitation, Tenant's compliance with the insurance requirements of Article 1 1. Said early possession shall not advance the Termination Date.

		
			 
		

			
	
			
				 3.
			

			
	
			
			RENT.

		
			 
		

			
	
			
				 3.1
			Tenant agrees to pay to Landlord the Annual Rent in effect from time to time by paying the Monthly Installment of Rent then in effect on or before the first day of each full calendar month during the Term, except that the first full month's rent shall be paid upon the execution of this Lease and shall be offset against rent when it actually first becomes due under the Lease.  Provided there is no Event of Default by Tenant under this Lease, payment of rent for the Initial Premises shall be abated for the first year of the Term as set forth in the Initial Premises rent schedule on the Reference Pages. The Monthly Installment of Rent in effect at any time shall be one-twelfth (1/12) of the Annual Rent in effect at such time. Rent for any period during the Term which is less than a full month shall be a prorated portion of the Monthly Installment of Rent based upon the number of days in such month. Said rent shall be paid to Landlord, without deduction or offset and without notice or demand, at the Rent Payment Address, as set forth on the Reference Pages, or to such other person or at such other place as Landlord may from time to time designate in writing. Unless specified in this Lease to the contrary, all amounts and sums payable by Tenant to Landlord pursuant to this Lease shall be deemed additional rent.

		
			 
		

			
	
			
				 3.2
			Tenant recognizes that late payment of any rent or other sum  due  under  this  Lease  will  result  in administrative expense to Landlord, the extent of which additional expense is extremely difficult and economically impractical to ascertain. Tenant therefore agrees that if rent or any other sum is not paid when due and payable pursuant to this Lease, a late charge shall be imposed in an amount equal to the greater of: (a) Fifty Dollars ($50.00), or (b) five percent (5%) of the unpaid rent or other payment.  The amount of the late charge to be paid by Tenant shall be reassessed and added to Tenant's obligation for each successive month until paid. The provisions of this Section 3.2 in no way relieve Tenant of the obligation to pay rent or other payments on or before the date on which they are due, nor do the terms of this Section 3.2 in any way affect Landlord 's remedies pursuant to Article 19 of this Lease in the event said rent or other payment is unpaid after date due.

		
			 
		

			
	
			
				 4.
			

			
	
			
			RENT ADJUSTMENTS.

		
			 
		

			
	
			
				 4.1
			For the purpose of this Article 4, the following terms are defined as follows:

		
			 
		

			
	
			
				 4.1.1
			Lease Year: Each fiscal year (as determined by Landlord from time to time) falling partly or wholly within the Term.

		
			 
		

			
	
			
				 4.1.2
			Expenses: All costs  of operation, maintenance, repair, replacement and management of the Building (including the amount of any credits which Landlord may grant to particular tenants of the Building in lieu of providing any  standard services or paying any standard costs described in this Section 4.1.2 for similar tenants), as determined in accordance with generally accepted accounting principles, including the following costs by way of illustration, but not limitation: water and sewer charges; utility costs, including, but not limited to, the cost of heat, light, power, steam,

		
			 
		

		

		

		 

		

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			gas; waste disposal; the cost of janitorial services; the cost of security and alarm services (including any central station signaling system); costs of cleaning, repairing, replacing and maintaining the common areas, including parking and landscaping, window cleaning costs; labor costs; costs and expenses of managing the Building including management and/or administrative fees; air conditioning maintenance costs; elevator maintenance fees and supplies; material costs; equipment costs including the cost of maintenance, repair and service agreements and rental and leasing costs; purchase costs of equipment; current rental and leasing costs of items which would be capital items if purchased; tool costs; licenses, perm its and inspection fees; wages and salaries; employee benefits and payroll  taxes; accounting and legal fees; any sales, use or service taxes incurred in connection therewith. In addition, Landlord shall be entitled to recover, as additional rent (which, along with any other capital expenditures constituting Expenses, Landlord may either include in Expenses or cause to be billed to Tenant along with Expenses and Taxes but as a separate item), Tenant's Proportionate Share of: (i) an allocable portion of the cost of capital improvement items which are reasonably calculated to reduce operating expenses; (ii) the cost of fire sprinklers and suppression systems an d other life safety systems; and (iii) other capital expenses which are required under any governmental laws, regulations or ordinances which were not applicable to the Building at the time it was constructed; but the costs described in this sentence shall be amortized over the reasonable life of such expenditures in accordance with such reasonable life and amortization schedules as shall be determined by Landlord in accordance with generally accepted accounting principles, with interest on the unamortized amount at one percent (1%) in excess of the Wall Street Journal prime lending rate announced from time to time.  Expenses shall not include Taxes, Insurance Costs, depreciation or amortization of the Building or equipment  in the Building except as provided herein, loan principal payments, costs of alterations of tenants' premises, leasing commissions, interest expenses on long-term borrowings or advertising costs.
		

		
			 
		

			
	
			
				 4.1.3
			Taxes: Real estate taxes and any other taxes, charges and assessments which are levied with respect to the Building or the land appurtenant to the Building, or with respect to any improvements , fixtures and equipment or other property of Landlord, real or personal, located in the Building and used in connection with the operation of the Building and said land, any payments to any ground lessor in reimbursement of tax payments made by such lessor; and all fees, expenses and costs incurred by Landlord in investigating, protesting, contesting or in any way seeking to reduce or avoid increase in any assessments, levies or the tax rate pertaining to any Taxes to be paid by Landlord in any Lease Year. Taxes shall not include any corporate franchise, or estate, inheritance or net income tax, or tax imposed upon any transfer by Landlord of its interest in this Lease or the Building or any taxes to be paid by Tenant pursuant to Article 28.

		
			 
		

		
			4. I.4 Insurance Costs: Any and all insurance charges of or relating to all insurance: policies and endorsements deemed by Landlord to be reasonably necessary or desirable and relating in any manner to the protection, preservation, or operation of the Building or any part thereof. Landlord shall carry insurance equal to ninety five (95%) of the replacement value of the Building.
		

		
			 
		

			
	
			
				 4.2
			If in any Lease Year, (i) Expenses paid or incurred shall exceed Expenses paid or incurred in the Base Year (Expenses) and/or (ii) Taxes paid or incurred by Landlord in any Lease Year shall exceed the amount of such Taxes which became due and payable in the Base Year (Taxes), and/or (iii) Insurance Costs paid or incurred by Landlord in any Lease Year shall exceed the amount of such Insurance Costs which became due and payable in the Base Year (Insurance), Tenant shall pay as additional rent for such Lease Year Tenant's Proportionate Share of each such excess amount.

		
			 
		

			
	
			
				 4.3
			The annual determination of Expenses and Insurance Costs shall be made by Landlord and shall be binding upon Landlord and Tenant, subject to the provisions of this Section 4.3. During the Term, Tenant may review, at Tenant's sole cost and expense, the books and records supporting such determination in an office of Landlord, or Landlord' s agent, during normal business hours, upon giving Landlord five (5) days advance written notice within sixty (60) days after receipt of such determination , but in no event more often than once in any one ( 1 ) year period, subject to execution of a confidentiality agreement acceptable to Landlord, and provided that if Tenant utilizes an independent accountant to perform such review it shall be one of national standing which is reasonably acceptable to Landlord, is not compensated on a contingency basis and is also subject to such confidentiality agreement.  If Tenant fails to object to Landlord's determination of Expenses and Insurance Costs within ninety (90) days after receipt, or if any such objection fails to state with specificity the reason for the objection, Tenant shall be deemed to have approved such determination and shall have no further right to object to or contest such determination. In the event that during all or any portion of an y Lease Year or Base Year, the Building is not fully rented and occupied Landlord shall make an appropriate adjustment in occupancy-related Expenses for such year for the purpose of avoiding distortion of the amount of such Expenses to be attributed to Tenant by reason of variation in total occupancy of the Building, by employing consistent and sound accounting and management principles to determine Expenses that would have been paid or incurred by Landlord had the Building been at least ninety-five percent (95%) rented and occupied, and the amount so determined shall be deemed to have been Expenses for such Lease Year.

		
			 
		

		
			 
		

		

		

		 

		

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				 4.4
			Prior to the actual determination thereof for a Lease Year, Landlord  may from time to time estimate Tenant 's liability for Expenses, Insurance Costs and/or Taxes under Section 4.1.4, Article 6 and Article 28 for the Lease Year or portion thereof. Landlord will give Tenant written notification of the amount of such estimate and Tenant agrees that it will pay, by increase of its Monthly Installments of Rent due in such Lease Year, additional rent in the amount of such estimate. Any such increased rate of Monthly Installments of Rent pursuant to this Section 4.4 shall remain in effect until further written notification to Tenant pursuant hereto.

		
			 
		

			
	
			
				 4.5
			When the above mentioned actual determination of Tenant 's liability for Expenses, Insurance Costs and/or Taxes is made for any Lease Year and when Tenant is so notified in writing, then:

		
			 
		

			
	
			
				 4.5.1
			If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses, Insurance Costs and/or Taxes for the Lease Year is less than Tenant 's liability for Expenses, Insurance Costs an d/or Taxes, then Tenant shall pay such deficiency to Landlord as additional rent in one lump sum within thirty (30) days of receipt of Landlord 's bill therefor; and

		
			 
		

			
	
			
				 4.5.2
			If the total additional rent Tenant actually paid pursuant to Section 4.3 on account of Expenses, Insurance Costs and/or Taxes for the Lease Year is more than Tenant's liability for Expenses, Insurance Costs and/or Taxes, then Landlord shall credit the difference against the then next due payments to be made by Tenant under this Article 4, or, if the Lease has terminated, refund the difference in cash. Tenant shall not be entitled to a credit by reason of actual Expenses and/or Taxes and/or Insurance Costs in any Lease Year being less than Expenses and/or Taxes and/or Insurance Costs in the Base Year (Expenses and/or Taxes and/or Insurance).

		
			 
		

			
	
			
				 4.6
			If the Commencement Date is other than January 1 or if the Termination Date is other than December 31, Tenant's liability for Expenses, Insurance Costs and Taxes for the Lease Year in which said Date occurs shall be prorated based upon a three hundred sixty-five (365) day year.

		
			 
		

			
	
			
				 5.
			

			
	
			
			INTENTIONALLY DELETED.

		
			 
		

			
	
			
				 6.
			

			
	
			
			ALTERATIONS.

		
			 
		

			
	
			
				 6.1
			Except for those, if any, specifically provided for in Exhibit B to this Lease, Tenant shall not make or suffer to be made any alterations, additions, or improvements, including, but not limited to, the attachment of any fixtures or equipment in, on, or to the Premises or any part thereof or the making of any improvements as required by Article 7, without the prior written consent of Landlord. When applying for such consent, Tenant shall, if requested by Landlord, furnish complete plans and specifications for such alterations, additions and improvements . Landlord 's  consent shall not be unreasonably withheld with respect to alterations which (i) are not structural in nature, (ii) are not visible from the exterior of the Building, (iii) do not affect or require modification of the Building's electrical, mechanical, plumbing, HVAC or other systems, and (iv) in aggregate do not cost more than $5.00 per rentable square foot of that portion of the Premises affected by the alterations in question.

		
			 
		

			
	
			
				 6.2
			In the event Landlord consents to the making of any such alteration, addition or improvement by Tenant, the same shall be made by using either Landlord' s contractor or a contractor reasonably approved by Landlord, in either event at Tenant's sole cost and expense. If Tenant shall employ any contractor other than Landlord 's contractor and such other contractor or any subcontractor of such other contractor shall employ any non-union labor or supplier, Tenant shall be responsible for and hold Landlord harmless from any and all delays, damages and extra costs suffered by Landlord as a result of any dispute with any labor un ions concerning the wage, hours, terms or conditions of the employment of any such labor. In any event Landlord may charge Tenant a construction management fee not to exceed five percent (5%) of the cost of such work to cover its overhead as it relates to such proposed work, plus third-party costs actually incurred by Landlord in connection with the proposed work and the design thereof, with all such amounts being due five (5) days after Landlord's demand.

		
			 
		

			
	
			
				 6.3
			All alterations, additions or improvements proposed by Tenant shall be constructed in accordance with all government laws, ordinances, rules and regulations, using Building standard materials where applicable, and Tenant shall, prior to construction , provide the additional insurance required under Article 11 in such case, and also all such assurances to Landlord as Landlord shall reasonably require to assure payment of the costs thereof, including but not limited to, notices of non-responsibility, waivers of lien, surety company performance  bonds and funded construction escrows and to protect Landlord and the Building and appurtenant land against any loss from any mechanic 's, materialmen's or other liens.  Tenant

		
			 
		

		

		

		 

		

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			shall pay in addition to any sums due pursuant to Article 4, any increase in real estate taxes attributable to any such alteration, addition or improvement for so long, during the Term, as such increase is ascertainable; at Landlord's election said sums shall be paid in the same way as sums due under Article 4. Landlord may, as a condition to its consent to any particular alterations or improvements, require Tenant to deposit with Landlord the amount reasonably estimated by Landlord as sufficient to cover the cost of removing such alterations or improvements and restoring the Premises, to the extent required under Section 26.2.
		

		
			 
		

			
	
			
				 6.4
			Tenant's name shall be included in the Building lobby directory and on one (I) panel on the existing multi- tenant monument sign. In addition, and subject to compliance with all governmental laws, ordinances and regulations applicable thereto and all restrictions by the Las Colinas Association or any replacement or equivalent thereof, Tenant may install its name on the Building in a location to be first approved by Landlord and Las Colinas Association, but in any event, no higher than the first level of the Building. Tenant must obtain Landlord's prior written consent for the design, graphics and installation of such signage. In no event shall Landlord ever be obliged to obtain or pursue any revision of any code, ordinances and/or restrictions that currently prohibit a second sign on the Building. All signage referenced hereunder shall be at Tenant 's cost and expense and may be paid from any of the tenant improvement allowances given to Tenant under the attached Exhibit B, Exhibit B-1 and Exhibit B-2.

		
			 
		

		
			6.5 Tenant may, at its own cost and expense, install and maintain its own card-key access system and other security system designed to protect the Premises from unauthorized entry, provided that Tenant first submits plans and specifications for the installation of such system(s) and obtains Landlord's prior written consent therefor. Upon installation of any such permitted system, Tenant shall provide Landlord with card-keys or the equivalent thereof for purposes of access to the Premises by Landlord, its agents, employees and contractors as permitted under this Lease.
		

		
			 
		

			
	
			
				 7.
			

			
	
			
			REPAIR.

		
			 
		

			
	
			
				 7.1
			Landlord shall have no obligation to alter, remodel, improve, repair, decorate or paint the Premises, except as specified in Exhibit B if attached to this Lease and except that Landlord shall repair and maintain the structural port ions of the Building, including the  basic plumbing, air conditioning, heating and electrical systems installed or furnished by Landlord. Landlord shall be responsible for ADA compliance for the common areas of the Building, except that any costs or expense incurred by Landlord for ADA alterations or improvements to the common areas of the Building necessitated solely by Tenant's ADA alterations or improvements to the Premises shall be charged to Tenant and payable on demand by Tenant as additional rent hereunder. By taking possession of the Premises, Tenant accepts them as being in good order, condition and repair and in the condition in which Landlord is obligated to deliver them, except as set forth in the punch list to be delivered pursuant to Section 2.2. It is hereby understood and agreed that no representations respecting the condition of the Premises or the Building have been made by Landlord to Tenant, except as specifically set forth in this Lease.

		
			 
		

			
	
			
				 7.2
			Tenant shall, at all times during the Term , keep the Premises, including the generator installed therein for Tenant's exclusive use as referenced in Exhibit B, and all systems (including supplemental heating, air-conditioning and ventilation systems) installed therein by Tenant, in good condition and repair excepting damage by fire, or other casualty, and in compliance with all applicable governmental laws, ordinances and regulations, promptly complying with all governmental orders and directives for the correction, prevention and abatement of any violations or nuisances in or upon, or connected with, the Premises, all at Tenant 's sole expense.

		
			 
		

			
	
			
				 7.3
			Landlord shall not be liable for any failure to make any repairs or to perform any maintenance unless such failure shall persist for an unreasonable time after written notice of the need of such repairs or maintenance is given to Landlord by Tenant.

		
			 
		

		
			7.4        Except as provided in Article 22, there shall be no abatement of rent and no liability of Landlord by reason of any injury to or interference with Tenant's business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or to fixtures, appurtenances and equipment in the Building. Except to the extent, if any, prohibited by law, Tenant waives the right to make repairs at Landlord 's expense under any law, statute or ordinance now or hereafter in effect.
		

		
			 
		

		
			8.LIENS. Tenant shall keep the Premises, the Building and appurtenant land and Tenant's leasehold interest in the Premises free from any liens arising out of any services, work or materials performed, furnished, or contracted for by Tenant, or obligations incurred by Tenant. In the event that Tenant fails, within ten (10) days following the imposition of any such lien, to either cause the same to be released of record or provide Landlord with insurance against the same issued by a major
		

		
			 
		

		

		

		 

		

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			title insurance company or such other protection against the same as Landlord shall accept (such failure to constitute an Event of Default), Landlord shall have the right to cause the same to be released by such means as it shall deem proper, including payment of the claim giving rise to such lien. All such sums paid by Landlord and all expenses incurred by it in connection therewith shall be payable to it by Tenant within five (5) days Landlord 's demand.
		

		
			 
		

		
			9.ASSIGNMENT AND SUBLETTING.
		

		
			 
		

		
			9. 1 Tenant shall not have  the right to assign  or  pledge  this  Lease or to sublet the whole  or any part  of the Premises whether voluntarily or by operation of law, or permit the use or occupancy of the Premises by anyone other than Tenant, and shall not make, suffer or permit such assignment, subleasing or occupancy without the prior written consent of Landlord, such consent not to be unreasonably withheld, conditioned or delayed and said restrictions  shall be binding  upon any and all assignees of the Lease and subtenants of the Premises. In the event Tenant desires to sublet, or perm it such occupancy of, the Premises, or any portion  thereof, or assign this Lease, Tenant shall give written notice thereof to Landlord at least twenty (20) days but no more than one hundred twenty (1 0) days prior to the proposed commencement date of such subletting or assignment, which notice shall set forth the name of the proposed subtenant  or assignee, the relevant  terms  of any sublease or assignment and copies of financial reports  and other relevant  financial  information  of the proposed  subtenant or assignee.
		

		
			 
		

			
	
			
				 7.2
			Notwithstanding any assignment or subletting, permitted or otherwise, Tenant, and any guarantor of Tenant's obligations under the Lease, shall at all times remain directly, primarily and fully responsible and liable for the payment of the rent specified in this Lease and for compliance with all of its other obligations under the terms, provisions and covenants of this Lease. Notwithstanding the generality of the foregoing, upon a subletting of the Premises, permitted or otherwise, Tenant shall comply with the population density restriction in Section I.I of this Lease with respect to the retained portion of the Premises and the sublessee shall comply with such restriction with respect to the subleased portion of the Premises. Upon the occurrence of an Event of Default , if the Premises or any part of them are then assigned or sublet, Landlord, in addition to any other remedies provided in this Lease or provided by law, may, at its option, collect directly from such assignee or subtenant all rents due and becoming due to Tenant under such assignment or sublease and apply such rent against any sums due to Landlord from Tenant under this Lease, and no such collection shall be construed to constitute a novation or release of Tenant from the further performance of Tenant's obligations under this Lease.

		
			 
		

			
	
			
				 7.3
			In addition to Landlord's right to approve of any subtenant or assignee, Landlord shall have the option, in its sole discretion, in the event of any proposed subletting of part only of a floor within the Premises, to recapture the portion of the Premises to be sublet, as of the date the subletting is to be effective. The option shall be exercised, if at all, by Landlord giving Tenant written notice within fifteen (15) days following Landlord's receipt of Tenant's written notice as required above. However, if Tenant notifies Landlord, within five (5) days after receipt of Landlord's termination notice, that Tenant is rescinding its proposed sublease, the termination notice shall be void and the Lease shall continue in full force and effect. If Landlord recaptures under this Section only a portion of the Premises, the rent to be paid from time to time during the unexpired Term shall abate proportionately based on the proportion by which the approximate square footage of the remaining portion of the Premises shall be less than that of the Premises as of the date immediately prior to such recapture. Tenant shall, at Tenant's own cost and expense, discharge in full any outstanding commission obligation which may be due and owing as a result of the Premises, or part thereof, being recaptured pursuant to this Section 9.3 and rented by Landlord to the proposed tenant or any other tenant.

		
			 
		

			
	
			
				 7.4
			In the event that Tenant sells, sublet s, assigns or transfers this Lease, Tenant shall pay to Landlord as additional rent an amount equal to fifty percent (50%) of any Increased Rent (as defined below), less the Costs Component (as defined below), when and as such Increased Rent is received by Tenant. As used in this Section, "Increased Rent" shall mean the excess of (i) al l rent and other consideration which Tenant is entitled to receive by reason of any sale, sublease, assignment or other transfer of this Lease, over (ii) the rent otherwise payable by Tenant under this Lease at such time. For purposes of the foregoing, any consideration received by Tenant in form other than cash shall be valued at its fair market value as determined by Landlord in good faith. The "Costs Component" is that amount which, if paid monthly, would fully amortize on a straight-line basis, over the entire period for which Tenant is to receive Increased Rent, the reasonable costs incurred by Tenant for leasing commissions and tenant improvements in connection with such sublease, assignment or other transfer.

		
			 
		

			
	
			
				 7.5
			Notwithstanding any other provision hereof, it shall be considered reasonable for Landlord to withhold its consent to any assignment of this Lease or sublease of any portion of the Premises if at the time of either Tenant's notice of the proposed assignment or sublease or the proposed commencement date thereof, there shall exist any uncured default of

		
			 
		

		

		

		 

		

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			Tenant or matter which will become a default of Tenant with passage of time unless cured, or i f the proposed assign ee or sublessee is an entity: (a) with which Landlord is already i n negotiation; (b) is already an occupant of the Building unless Landlord is unable to provide the amount of space required by  such occupant; (c) is a governmenta l agency; (d) is incompatible with the character of occupancy of the Building; (e) with which the payment for the sublease or assignment is determin ed in whole or in part based upon its net income or profits; or (f) would subject the Premises to a use which would:
		

		
			(i) involve increased personnel or wear upon the Building; (ii) violate any exclusive right granted to another tenant of the Building; (iii) require any addition to or modification of the Premises or the Building in order to comply with building code or other governm ental requirements; or, (iv) involve a violation of Section I .! or 1.2. Tenant expressly agrees that for the purposes of any statutory or other requirement of reasonableness on the part of Landlord, Landlord's refusal to consent to any assignment or sublease for any of the reasons described in this Section 9.5, shall be conclusively deemed to be reasonable.
		

		
			 
		

			
	
			
				 7.6
			Upon any request to assign or sublet, Tenant will pay to Landlord the Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord's costs, comprising reasonable attorney's fees, a management administration fee, architect's/engineer 's fees (if applicable) and financial analysis fees (if appl icable) incurred in investigating and considering any proposed or purported assignment or pledge of this Lease or sublease of any of the Premises, regardless of whether Landlord shall consent to, refuse consent, or determine that Landlord 's consent is not required for, such assignment, pledge or sublease. Any purported sale, assignment, mortgage, transfer of this Lease or subletting which does not comply with the provisions of this Article 9  shall be void.

		
			 
		

			
	
			
				 7.7
			If Tenant is a corporation, limited liability compan y, partnership or trust, any transfer or transfers of or change or changes within any twelve ( 12) month period in the number of the outstanding voting shares of the corporation or limited liability company, the general partnership interests in the partnership or the identity of the persons or entities controlling the activities of such partnership or trust resulting in the persons or entities owning or controlling a majority of such shares, partnership interests or activities of such partnership or trust at the beginning of such period no longer having such ownership or control shall be regarded as equivalent to an assignment of this Lease to the persons or entities acquiring such ownership or control and shall be subject to all the provisions of this Article 9 to the same extent and for all intents and purposes as though such an assignment. The foregoing shall not apply to a public offering registered to the Securities and Exchange Commission or any trading of shares thereafter, provided however that, any change in the control of ownership of Tenant shall be subject to all the provisions of this Article 9.

		
			 
		

			
	
			
				 7.8
			Notwit hstand ing the foregoing, Tenant may transfer all or part of its interest in this Lease or all or part of the Premises (a "Permitted Transfer") to the following types of entities (a "Permitted Transferee") without the written consent of Landlord:

		
			 
		

			
	
			
				 (I)
			)    any parent, subsidiary or affiliate of Tenant provided that the Tangible Net Worth of such entity is not less than the Tangible Net Worth of Tenant as of the Commencement Date;

		
			 
		

			
	
			
				 (2)
			any corporation, limited partnership, limited liability partner ship, limited liability company or other business entity in which or with which Tenant, or its corporate successors or assigns, is merged or consolidated, in accordance with applicable statutory provisions govern ing merger and consolidation of business entities, so long as (A) Tenant's oblig-ations hereunder are assumed by the entity surviving such merger or created by such consolidation; and (B) the Tangible Net Worth of the surviving or created entity is not less than the Tangible Net Worth of Tenant as of the Commencement Date; or

		
			 
		

			
	
			
				 (3)
			any corporation, limited partnership, limited liability partnership, limited liability compan y or other business entity acquiring all or substantially all of Tenant's assets if such entity's Tangible Net Worth after such acquisition is not less than the Tangible Net Worth of Tenant as of the Commencement Date.

		
			 
		

		
			Tenant shall promptly notify Landlord of any such Permitted Transfer. Tenant shall remain liable for the performance of all of the obligations of Tenant hereunder, or if Tenant no longer exists because of a merger, consolidation, or acquisition, the surviving or acquiring  entity shall expressly assum e in writing the obligations of Tenant hereunder. Additional ly, the Permitted Transferee shall comply with all of the terms and cond itions of th is Lease, including the Perm itted Use. Withou t the necessity of any additional document being executed by Guarantor, Guarantor shall remain liable for the performance of al l of the obligations of Guarantor under the guaranty executed by Guarantor under Art icle 44 of this Lease.   Notwithstanding the foregoing, Tenant covenants and agrees to cause Guarantor to execute and deliver within ten  ( I 0) days of Landlord's request such further instruments evidencing Guarantor's acknowledgment of the Permitted Transfer and the ratification of the guaranty as may be required by Landlord . With in at least thirty (30) days after the effective date of
		

		
			 
		

		

		

		 

		

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			any Permitted Transfer, Tenant shall furnish Landlord with copies of the instrument effecting any of the foregoing Permitted Transfers and documentation establishing Tenant's satisfaction of the requirements set forth above applicable to any such Permitted Transfers. The occurrence of a Permitted Transfer shall not waive Landlord's rights as to any subsequent transfers. "Tangible Net Worth" means the excess of total assets over total liabil ities, in each case as determined in accordance with generally accepted accounting principles consistently applied ("GAAP"), exclud ing, however, from the determination of total assets all assets wh ich would be classified as intangible assets under GAAP including, without limitation, goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises. Any subsequent transfer by a Permitted Transferee shall be subject to the terms of this Article 9.
		

		
			 
		

		
			10. INDEMNIFICATION. None of the Lan dlord Entities shall be liable and Tenant hereby waives all claims against them for any damage to any property or a ny injury to any person in or about the Premises or the Building by or from any cause whatsoever (incl uding without limiting the foregoing, rain or water leakage of any character from the roof, windows, walls, basement, pipes, plumbi ng works or appliances, the Building not being in good condition or repair, gas, fire, oil, electricity or theft), except to the extent caused by or arising from the gross negligence or willful misconduct of Landlord or  its  agents, employees or contractors.  Except  to  the  extent  attributable  to  the  gross negl igence or willful misconduct of Landlord or any Landlord Entity, Tenant shall protect, indemnify and hold the Landlord Entities harmless from and against any and all loss, claims, liability or costs (including court costs and attorney's fees) incurred by reason of (a) any damage to any property (including but not limited to property of any Landlord Entity) or any injury (including but not limited to death) to any person occurring in, on or about the Premises or the Building to the extent that such injury or damage shall be caused by or arise from any actual or alleged act, neglect, fault, or omission by or of Tenant or any Tenant Entity to meet any standards imposed by any duty with respect to the injury or damage; (b) the conduct or management of any work or thing whatsoever done by the Tenant in or about the Premises or from transactions of the Tenant concerning the Premises; (c) Tenant's failure to comply with any and all governmental laws, ordinances and regulations applicable to the condition or use of the Premises or its occupancy; or (d) any breach or default on the part of Tenant in the performance of any covenant or agreement on the part of the Tenant to be performed  pursuant to this Lease. Landlord shall protect, indemnify and hold Tenant harmless from and against any and all loss, claims, liability or costs (including court costs and attorney' s fees) incurred by reason of any damage to any property or any injury (including but not limited to death) to any person occurrin g in, or on or about the common areas to the extent that such injury or damage shall be proximately caused 1.Jy the in tentional sole negligence or willful misconduct of Landlord or its agents, servants or employees. The provisions of this Article shall survive the termination of this Lease with respect to any claims or liability accruing prior to such termination.
		

		
			 
		

		
			11.          INSURANCE.
		

		
			 
		

		
			1 1 .1 Tenant shall keep in force throughout the Term: (a) a Commercial General Liability insurance policy or policies to protect the Landlord Entities against any liabil ity to the public or to any invitee of Tenant or a Landlord Entity incidental to the use of or resulting from any accident occurring in or upon the Premises with a limit of not less than
		

		
			$1,000,000 per occurrence and not less than $2,000,000 in the annual aggregate, or such larger amount as Landlord may prudently require from time to time, covering bodily injury and property damage liability and $1,000,000 products/completed operations aggregate; (b) Business Auto Liability covering owned, non-owned and hired vehicles with a limit of not less than
		

		
			$1,000,000 per accident; (c) insurance protecting against liability under Worker's Compensation Laws with limits at least as required by statute with Employers Liability with limits of $500,000 each accident, $500,000 disease policy limit, $500,000 disease--each employee; {d) All Risk or Special Form coverage protecting Tenant against loss of or damage to Tenant's alterations, additions, improvements, carpeting, floor coverings, panelings, decorations, fixtures, inventory and other business personal property situated in or about the Premises to the full replacement val ue of the property so insured; and, (e) Business Interruption Insurance with limit of liability representing loss of at least approximately six (6) months of income.
		

		
			 
		

		
			11.2 The aforesaid policies shall (a) be provided at Tenant's expense; (b) name the Landlord Entities as additional insureds (General Liability) and loss payee (Property-Special Form); (c) be issued by an insurance company with a min i mum Best 's rating of "A:VII" during the Term; and (d) provide that said insurance shall not be canceled unless thirty
		

		
			(30) days prior written notice (ten days for non-payment of premium) shall have been given to Landlord; a certificate of Liabil ity insurance on ACORD Form 25 and a certi ficate of Property insurance on ACORD Form 27 shall be delivered to Landlord by Tenant upon the Commencement Date and at least fairty (30) days prior to each renewal of said insurance.
		

		
			 
		

		
			11 .3 Whenever Tenant shall undertake any alterations, additions or improvements in, to or about the Premises ("Work") the aforesaid insurance protecti on must  extend to and include injuries to persons and damage to property arising in
		

		
			 
		

		
			 
		

		

		

		 

		

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			connection with such Work, without limitation including liability under any applicable structural work act, and such other insurance as Landlord shall require; and the policies of or certificates evidencing such insurance must be delivered to Landlord prior to the commencement of any such Work.
		

		
			 
		

			
	
			
				 12.
			WAIVER OF SUBROGATION. So long as their respective insurers so permit, Tenant and Landlord hereby mutually waive their respective rights of recovery against each other for any loss in sured by fire, extended coverage, All Risks or other insurance now or hereafter existing for the benefit of the respective party but only to the extent of the net insurance proceeds payable under such pol icies. Each party shall obtain any special endorsements required by their insurer to evidence compliance with the aforementioned waiver.

		
			 
		

			
	
			
				 13.
			

			
	
			
			SERVICES AND UTILITIES.

		
			 
		

			
	
			
				 13.1
			Provided Tenant sha ll not be in default under this Lease, and subject to the other provisions of this Lease, Landlord agrees to furnish to the Premises during Building Business Hours (specified on the Reference Pages) on generally recognized business days (but exclusive in any event of Sundays and national and local legal holidays), the following services and utilities subject to the rules and regulations of the Building prescribed from time to time: (a) water suitable for normal office use of the Premises; (b) heat and air conditioning required in Landlord' s judgment for the use and occupation of the Premises during Building Business Hours; (c) cleaning and janitorial service five (5) days per week only; (d) elevator service by nonattended automatic elevators, if applicable; and, (e) equipment to bring to the Premises electricity for lighting, convenience outlets and other normal office use. To the extent that Tenant is not billed directly by a public util ity, Tenant shall pay, within five (5) days of Landlord 's demand, for all electricity used by Tenant in the Premises.  The charge shall be at the rates charged for such services by the local public utility. Alternatively, Landlord may elect to include electricity costs in Expenses. Landlord reserves the right to install electric and/or water meters in the Premises or any part thereof.  The cost of such meters shall be at Tenant's expense.  Notwithstanding anything to the contrary contained in this Lease, provided there is no Event of Default under the Lease, electricity charges for the Initial Premise shall be abated for the first year of Term as set forth in the Initial Premises rent schedule on the Reference Pages. In the absence of Landlord's gross negligence or willful misconduct, Landlord shall not be liable for, and Tenant shall not be entitled to, any abatement or reduction of rental by reason of Landlord's failure to furnish any of the foregoing, unless such failure shall persist for an unreasonable time after written notice of such failure is given to Landlord by Tenant and provided further that Landlord shall not be liable when such fail ure is caused by accident, breakage, repairs, labor disputes of any character, energy usage restrictions or by any other cause, sim ilar or dissimilar, beyond the reasonable control of Landlord. Landlord shall use reasonable efforts to remedy any interruption in the furnishing of services and utilities.

		
			 
		

			
	
			
				 13.2
			Should Tenant require any additional work or service, as described above, including services furnished outside ordinary business hours specified above, Landlord may, on terms to be agreed, upon reasonable advance notice by Tenant, furnish such additional service an d Tenant agrees to pay Landlord such charges as may be agreed upon, including any tax imposed thereon, but in no event at a charge less than Landlord's actual cost plus overhead for such additional service and, where appropriate, a reasonable  allowance for depreciation of any systems being used to provide such service. The current charge for after-hours HVAC service, which is subject to change at any time, is specified on the Reference Pages.

		
			 
		

			
	
			
				 13.3
			Wherever heat-generating machines or equipment are used by Tenant in the Premises which affect the temperature otherwise maintained by the air conditioning system or Tenant allows occupancy of the Premises by more persons than the heating and air conditioning system is designed to accommodate, in either event whether with or without Landlord's approval, Landlord reserves the right to install supplementary heating and/or air conditioning units in or for the benefit of the Premises and the cost thereof, including the cost of installation and the -cost of operations and maintenance, shall be paid by Tenant to Landlord within five (5) days of Landlord 's demand.

		
			 
		

			
	
			
				 13.4
			Tenant will not, without the written consent of Landlord, use any apparatus or device in the Premises, including but not lim ited to, electronic data processing machines and machines using current in excess of 2000 watts and/or 20 amps or 120 volts, which will in any way increase the amount of electricity or water usually furnished or supplied for use of the Premises for normal office use, nor connect with electric current, except through existing electrical outlets in the Premises, or water pipes, any apparatus or device for the purposes of using electrical current or water. IfTenant shall require water or electric current in excess of that usually furnished or supplied for use of the Premises as normal office use, Tenant shall procure the prior written consent of Landlord for the use thereof, which Landlord may refuse, an d if Landlord does consent, Landlord may cause a water meter or electric current meter to be installed so as to measure the amount of such excess water and electric current. The cost of any such meters shall be paid for by Tenant. Tenant agrees to pay to Landlord within five (5) days of Landlord's demand , the cost of all such excess water and electric current consumed (as shown by said

		

		

		 

		

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			meters, if any, or, if none, as reasonably estimated by Landlord) at the rates charged for such services by the local public utility or agency, as the case may be, furnishing the same, plus any additional expense incurred in keeping account of the water and electric current so consumed.
		

		
			 
		

			
	
			
				 13.5
			Tenant will not, without the written consent of Landlord, contract with a utility provider to service the Premises with any utility, incl uding, but not limited to, telecommunications, electricity, water, sewer or gas, which is not previously providing such service to other tenants in the Building. Subject to Landlord 's reasonable ru les and regulations and the provisions of Articles 6 and 26, Tenant shall be entit led to the use of wiring (''Communication s Wiring") from the existing telecommunications nexus in the Building to the Premises, sufficient for normal general office use of the Premises. Tenant shall not install any additional Communication s Wiring, nor remove any Communications Wiring, without in each instance obtain ing the prior written consent of Landlord, which consent may be withhe ld in Landlord's sole and absolute discretion . Landlord 's shall in no event be liable for disruption in any service obtained by Tenant pursuant to this paragraph.

		
			 
		

			
	
			
				 14.
			HOLDING OVER. Tenant shall pay Landlord for each day Tenant retains possession of the Premises or part of them after termination of this Lease by lapse of time or otherwise at the rate ("Holdover Rate") which shall be One Hundred Fifty Percent  (150%) of the greater of (a) the amount of the Annual Rent for the last period pr ior to the date of such termination plus all Rent Adjustments under Article 4; and (b) the then market rental value of the Premises as determined by Landlord assuming a new lease of the Premises of the then usual duration and other terms, in either case, prorated on a daily basis, and also pay al l damages sustained by Landlord by reason of such retention. If Landlord gives notice to Tenant of Landlord 's election to such effect, such holding over shall constitute renewal of this Lease for a period from month to month at the Holdover Rate, but if the Landlord does not so elect, no such renewal shall result notwithstanding acceptance by Landlord of any sums due hereunder after such termination; and instead, a tenancy at sufferance at th e Holdover Rate shall be deemed to have been created. In any event, no provision of this Article 14 shall be deemed to waive Landlord's right of reentry or any other right under this Lease or at law.

		
			 
		

			
	
			
				 15.
			SUBORDINATION. Without the necessity of any additional document being executed by Tenant for the purpose of effecting a subordination, this Lease shall be subject and subordinate at all times to ground or underlying leases and to the lien of any mortgages or deeds of trust now or hereafter placed on, against or affecting the Building, Landlord's interest or estate in the Building, or any ground or underlying lease; provided, however, that if the lessor, mortgagee, trustee, or holder of any such mortgage or deed of trust elects to have Tenant's interest in this Lease be superior to any such instrument, then, by notice to Tenant, this Lease shall be deemed superior, whether this Lease was executed before or after said instrument. Notwithstanding the foregoin g, Tenant covenants and agrees to execute and deliver within ten (IO) days of Landlord's request such further instruments evidencing such subordination or superiority of this Lease as may be required by Landlord. As of the date of Landlord's execution of this Lease, Landlord confirms that there is no mortgagee with a lien on Landlord's interest in the Building. In the event of a future mortgagee with a lien on Landlord's interest in the Building, then, upon Tenant's request therefor, and at Landlord's cost (not to exceed $200.00), Landlord shall use reasonable efforts to obtain from such mortgagee a subordination, non-disturbance and attornment agreement in favor of Tenant on such mortgagee's standard form.

		
			 
		

			
	
			
				 16.
			RULES AND REGULATIONS. Tenant shall faithfully observe and comply with all the rules and regulations as set forth in Exhibit D  to this Lease and all reasonable and non-discriminatory modifications of and additions to them from time to time put into effect by Landlord . Landlord shall not be responsible to Tenant for the non-performance by any other tenant or occupant of the Building of any such rules and regulations.

		
			 
		

			
	
			
				 17.
			

			
	
			
			REENTRY BY LANDLORD.

		
			 
		

		
			17. l Landlord reserves and shall at all times have the right to re-enter the Premises to inspect the same, to supply jan itor service and any other service to be provided by Landlord to Tenant under this Lease, to show said Premises to prospect i ve purchasers, mortgagees or tenants, and to alter, improve or repair the Premises and any portion of the Building, without abatement of rent, and may for that purpose erect, use and maintain scaffolding, pipes, conduits and other necessary structures and open any wall, ceiling or floor in and through the Building and Premises where reasonably required by the character of the work to be performed, provided entrance to the Premises shall not be blocked thereby, and further provided that the business of Tenant shall not be interfered with unreasonab ly. Landlord shall have the right at any time to change the arrangement and/or locations of entrances, or passageways, doors and doorways, and corridors, windows, elevators, stairs, toilets or other public parts of the Buil ding (provided there is thereby no unreasonable interference with Tenant's access to or use of the Premises), and to change the name, number or designation by which the Building is commonly known. In the event that Landlord damages any portion of any wall or wall covering, ceiling, or floor or floor covering within the Premises,
		

		

		

		 

		

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			Landlord shall repair or replace the damaged portion to match the original as nearly as commercially reasonable but shall not be required to repair or replace more than the portion actually damaged. Tenant hereby waives any claim for damages for any injury or inconvenience to or interference with Tenant's business, any loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned by any action of Landlord authorized by this Article 17 unless caused by the gross negligence or willful misconduct of Landlord.
		

		
			 
		

		
			17.2       For each of the aforesaid  purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in the Premises, excluding Tenant's  vaults and safes or special security areas (designated in advance), and Landlord shall have the right to use any and all means wh ich Landlord may deem proper to open said doors in an emergency to obtain entry to an y portion of the Premi ses. As to any portion to which access cannot be had by means of a key or keys in Landlord's possession, Landlord is authorized to gain access by such means as Landlord shall  elect and the cost of repairing any damage occurring in doing so shall be borne by Tenant and pai d to Landlord within five (5) days of Landlord's demand.
		

		
			 
		

		
			18.         DEFAULT.
		

		
			 
		

		
			18. l Except as otherwise provided in Article 20, the following events shall be deemed to be Events of Default under this Lease:
		

		
			 
		

		
			18.1. 1 Tenant shall fail to pay when due any sum of money becoming due to be paid to Landlord under this Lease, whether such sum be any in stallment of the rent reserved by this Lease, any other amount treated as additional rent under this Lease, or any other payment or reimbursement to Landlord required by th is Lease, whether or not treated as additional rent under this Lease, and such failure shall continue for a period of five (5) days after written notice that such payment was not made when due, but if any such notice shall be given, for the twelve ( 12) month period commencing with the date of such notice, the failure to pay within five (5) days after due any additional sum of money becoming due to be paid to Landlord under this Lease during such period shall be an Event of Default, without notice.
		

		
			 
		

		
			18. 1.2 Tenant shall fail to comply with any term, provision or covenant of this Lease which is not provided for in another Section of this Article and shall not cure such failure within twenty (20) days (forthwith, if the failure involves a hazardous condition) after written notice of such failure to Tenant provided, however, that such failure shall not be an event of default if such failure could not reasonably be cured during such twenty (20) day period, Tenant has commenced the cure within such twenty (20) day period and thereafter is diligently pursuing such cure to completion, but the total aggregate cure period shall not exceed one hundred twenty ( 120) days.
		

		
			 
		

		
			18. l.3 Tenant shall fail to vacate the Premises immediately upon termination of this Lease, by lapse of time or otherwise, or upon termination of Tenant's right to possession only.
		

		
			 
		

		
			18. 1.4 Tenant, or any guarantor of Tenant's obligations under this Lease, shall become insolvent , admit in writing its inability to pay its debts generally as they become  due, file a petition in bankruptcy  or a petition  to take advantage of any insolvency statute, make an assignment for the benefit of creditors, make a transfer in fraud of creditors, apply for or consent to the appointment of a receiver of itself or of the whole or any substantial part of its property, or file a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws, as now in effect or hereafter amended,  or any other applicable law or statute of the Un ited States or any state thereof.
		

		
			 
		

		
			18. 1 .5  A court of competent jur isdiction shall enter an order, judgment  or decree adjudicating Tenant, or any guarantor of Tenant's obl igat ions under th is Lease, bankrupt, or appointing a receiver of Tenant, or of any guarantor of Tenant's obligations under this Lease, or of the whole or any substantial part of its property, without the consent of Tenant, or such guarantor, as applicable, or approving a petition filed against Tenant, or any guarantor of Tenant's obligations under this Lease, seeking reorgan ization or arrangement of Tenant, or any guarantor of Tenant's obligations under this Lease, under the bankruptcy laws of the United States, as now in effect or hereafter amended, or any state thereof, and such order, judgment or decree shall not be vacated or set aside or stayed within sixty (60) days from the date of entry thereof.
		

		
			 
		

		
			18. 1.6     Tenant, or any guarantor of Tenant's obligati ons under this Lease, shall be in default with respect to any other agreement with  Landlord.
		

		

		

		 

		

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				 19.
			

			
	
			
			REMEDIES.

		
			 
		

			
	
			
				 19.1
			Except as otherwise provided in Article 20, upon the occurrence of any of the Events of Default described or referred to in Article 18, Landlord shall have the option to pursue any one or more of the following remedies without any notice or demand whatsoever , concurrently or consecutively and not alternatively:

		
			 
		

		
			I 9.1.1 Landlord may, at its election, terminate this Lease or terminate Tenant's right to possession only, without terminating the Lease.
		

		
			 
		

			
	
			
				 19.1.2
			Upon any termination of this Lease, whether by lapse of time or otherwise, or upon any tem1ination of Tenant' s right to possession without termination of the Lease, Tenant shall surrender possession and vacate the Premises immediately, and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free license to enter into and upon the Premises in such event and to repossess Landlord of the Premises as of Landlord's former estate and to expel or remove Tenant and any others who may be occupying or be within the Premises and to remove Tenant's signs and other evidence of tenancy and all other property of Tenant therefrom without being deemed in any manner guilty of trespass, eviction or forcible entry or detainer, and without incurring any liability for any damage resulting therefrom, Tenant waiving any right to claim damages for such re-entry and expulsion, and without relinqu ishing Landlord's right to rent or any other right given to Landlord under this Lease or by operation oflaw.

		
			 
		

			
	
			
				 19.1.3
			Upon any termination of th is Lease, whether by lapse of time or otherwise, Landlord shall, subject to Landlord' s obligation, if any, to mitigate under Texas law, be entitled to recover as damages, all rent, including any amounts treated as additional rent under this Lease, and other sums due and payable by Tenant on the date of termination, plus as liquidated damages and not as a penalty, an amount equal to the sum of: (a) an amount equal to the then present value of the rent reserved in this Lease for the residue of the stated Term of th is Lease including any amounts treated as additional rent under this Lease and all other sums provided in this Lease to be paid by Tenant, minus the fair rental value of the Premises for such residue ; (b) the value of the time and expense necessary to obtain a replacement tenant or tenants, and the estimated expenses described in Section 19.1.4 relating to recovery of the Premises, preparation for reletting and for reletting itself; and (c) the cost of performing any other covenants which would have otherwise been performed by Tenant.

		
			 
		

			
	
			
				 19.
			

			
	
			
			1.4   Upon any termination of Tenant's right to possession only without terminat ion of the Lease:

		
			 
		

			
	
			
				 19.
			1.4.1 Neither such termination of Tenant's right to possession nor Landlord's taking and holding possession thereof as provided in Section 19.1.2 shall terminate the Lease or release Tenant, in whole or in part, from any obligation, including Tenant's obligation to pay the rent, including any amounts treated as additional rent, under this Lease for the full Term, and if Landlord so elects Tenant shall continue to pay to Landlord the entire amount of the rent as and when it becomes due, including any amounts treated as additional rent under this Lease, for the remainder of the Term plus any other sums provided in this Lease to be paid by Tenant for the remainder of the Term.

		
			 
		

		
			19.1.4.2 Landlord shall use commercially reasonable efforts to relet the Premises or portions thereof to the extent required by applicable law. Landlord and Tenant agree that neverthe less Landlord shall at most be required to use only the same efforts Landlord then uses to lease premises in the Building generally and that in any case that Landlord shall not be required to give any preferen ce or priority to the showing or leasing of the Premises or port ions thereof over any other space that Landlord may be leasing or have available and may place a suitable prospect ive tenant in any such other space regardless of when such other space becomes available and that Landlord shall have the right to relet th e Premises for a greater or lesser tem1 than that remaining under th is Lease, the right to relet only a portion of the Premises, or a portion of the Premises or the entire Premises as a part of a larger area, and the right to change the character or use of the Premises. In connection with or in preparation for any reletting, Landlord may, but shall not be required to, make repairs, alterations and additions in or to the Premises and redecorate the same to the extent Landlord deems necessary or desirable, and Tenant shall pay th e cost thereof, together with Landlord's expenses of reletting, including, without limitation, any commission incurred by Landlord , with in five (5) days of Landlord's demand. Landlord shall not be required to observe any instruction given by Tenant about any reletting or accept any tenant offered by Tenant unless such offered tenant has a credit­ worth iness acceptable to Landlord and leases the entire Premises upon terms and conditions including a rate of rent (after giving effect to all expenditures by Landlord for tenant improvements, broker 's comm issions and other leasing costs) all no less favorable to Landlord than as called for in this Lease, nor shall Landlord be required to make or perm it any assignment or sublease for more than the current tem1 or which Landlord would not be required to permit under the provisions of Article 9.
		

		

		

		 

		

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			19.1.4.3 Until such time as Landlord shall elect to terminate the Lease and shall thereupon be entitled to recover the amounts specified in such case in Section 19.1.3, Tenant shall pay to Landl ord upon demand the full amount of all rent, including any amounts treated as additional rent under this Lease and other sums reserved in this Lease for the remaining Term, together with the costs of repairs, alterations, additions, redecorating  and Landlord's expen ses of reletting and the collection of the rent accruing therefrom (including reasonable attorney's fees and broker's commissions), as the same shall then be due or become due from time to time, less only such consideration as Landlord may have received from any reletting of the Premises ; and Tenant agrees that Landlord may file suits from time to time to recover any sums falling due under this Article 19 as they become due. Any proceeds of reletting by Landlord in excess of the amount then owed by Tenant to Landlord from time to time shall be credited against Tenant's future obligations under this Lease but shall not otherwise be refunded to Tenant or inure to Tenant 's benefit.
		

		
			 
		

			
	
			
				 19.2
			Upon the occurrence of an Event of Default, Landlord may (but shall not be obligated to) cure such default at Tenant 's sole expense. Without limiting the general ity of the foregoing, Landlord may, at Landlord's option, enter into and upon the Premises if Landlord determines in its sole discretion that Tenant is not acting within a commercially reasonable time to maintain, repair or replace anything for which Tenant is responsible under this Lease or to otherwise effect compliance with  its obligations under this Lease and correct the same, without being deemed in any manner  guilty of trespass, eviction or forcible entry and detainer and without incurring any liability for any damage or interruption of Tenant's business resulting therefrom and Tenant agrees to reimburse Landlord within five (5) days of Landlord's demand as additional rent, for any expenses which Landlord may incur in thus effecting compliance with Tenant's obligations under this Lease, plus interest from the date of expenditure by Landlord at the Wall Street Journal prime rate.

		
			 
		

			
	
			
				 19.3
			Tenan t understands and agrees that in entering into this Lease, Landlord is relying upon receipt of all the Annual and Monthly Installments of Rent to become due with respect to all the Premises originally leased hereunder over the full Initial Term of this Lease for amortization, including interest at the Amortization Rate. For purposes hereof, the "Concession Amount" shall be defined as the aggregate of all amounts forgone or expended by Landlord as free rent under the lease, under Exhibit B  hereof for tenant improvement allowances (excluding therefrom any amounts expended by Landlord for Landlord's Work, as defined in Exhibit B), and for brokers ' commissions payable by reason of this Lease. Accordingly, Tenant agrees that if this Lease or Tenant's right to possession of the Premises leased hereunder shall be terminated as of any date ("Default Termination Date") prior to the expiration of the full Initial Term hereof by reason of a default of Tenant, there shall be due and owing to Landlord as of the day prior to the Default Termination Date, as rent in addition to all other amounts owed by Tenant as of such Date, the amount ("Unamortized Amount") of the Concession Amount determined as set forth below; provided, however, that in the event that such amounts are recovered by Landlord pursuant to any other provision of th is Article 19, Landlord agrees that it shall not attempt to recover such amounts pursuant to this Paragraph 19.3. For the purposes hereof, the Unamortized Amount shall be determined in the same manner as the remaining principal balance of a mortgage with interest at the Amortization Rate payable in level payments over the same length of time as from the effectuation of the Concession concerned to the end of the full Initial Term of this Lease would be determined. The foregoing provisions shall also apply to and upon any reduction of space in the Premises, as though such reduction were a termination for Tenant's default, except that (i) the Unamortized Amount shall be reduced by any amounts paid by Tenant to Landlord to effectuate such reduction and (ii) the manner of application shall be that the Unamortized Amount shall first be determined as though for a full termination as of the Effective Date of the elimination of the portion, but then the amount so determined shall be multiplied by the fraction of which the numerator is the rentable square footage of the eliminated portion and the denominator is the rentable square footage of the Premises originally leased hereunder; and the amount thus obtained shall be the Unamortized Amount.

		
			 
		

			
	
			
				 19.4
			If, on account of an y breach or default by either party in its obligations under the terms and conditions of this Lease, it shall become necessary or appropriate for the non-defaulting party to employ or consult with an attorney or collection agency concerning or to enforce or defend any of the non-defaulting party's rights or remedies arising under this Lease or to collect any sums due from the defaulting party, the defaulting party agrees to pay all costs and fees so incurred by the non-defaulting party, including, without limitation, reasonable attorneys' fees an d costs. LANDLORD AND TENANT EACH EXPRESSLY WAIVE ANY RIGHT TO TRIAL BY JURY.

		
			 
		

		
			19.5     Pursuit of any of the foregoing remedies shall not preclude pursuit of any of the other remedies provided in this Lease or any other remedies provided by law (all such remedies being cumulative), nor shall  pursuit  of any remedy provided in this  Lease constitute a forfeiture or waiver of any rent due to Landlord under this Lease or of any damages accruing to Landlord by reason of the violation  of any of the terms, provisions and covenants contained in this Lease.
		

		

		

		 

		

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				 19.6
			No act or thing done by Landlord or its agents during the Term shall be deemed a termination of this Lease or an acceptance of the surrender of the Premises, and no agreement to terminate this Lease or accept a surrender of said Premises shal l be valid, unless in writing signed by Landlord. No waiver by Landlord of any violation or breach of any of the terms, provisions and covenants contained in th is Lease shall be deemed or construed to constitute a waiver of any other violati on or breach of any of the terms, provisions and covenants contained in this Lease. Landlord' s acceptance of the payment of rental or other payments after the occurrence of an Event of Default shall not be construed as a waiver of such Default, unless Landlord so notifies Tenant in writing. Forbearance by Landlord in enforcing one or more of the remedies provided in this Lease upon an Event of Default shall not be deemed or construed to constitute a waiver of such Default or of Landlord 's right to enforce any such remedies with respect to such Default or any subsequent Default .

		
			 
		

			
	
			
				 19.7
			

			
	
			
			Intentionally Deleted.

		
			 
		

			
	
			
				 19.8
			Any and all property which may be removed from the Prem ises by Landlord pursuant to the authority of this Lease or of law, to which Tenant is or may be entitled, may be handled, removed and/or stored, as the case may be, by or at the direction of Landlord but at the risk, cost and expense of Tenant, and Landlord shall in no event be responsible for the value, preservation or safekeeping thereof. Tenant shall pay to Landlord, upon demand, any and all expenses incurred in such removal and all storage charges against such property so long as the same shall be in Landlord' s possession or under Landlord 's control. Any such property of Tenant not retaken by Tenant from storage within thirty (30) days after removal from the Premises shall, at Landlord 's option, be deemed conveyed by Tenant to Landlord under this Lease as by a bill of sale without further payment or credit by Landlord to Tenant.

		
			 
		

			
	
			
				 19.9
			If more than two (2) Events of Default occur during any calendar year of the Term (including any renewal of the Term) which have not been cured within the notice and cure periods permitted under this Lease, Tenant's renewal options, expansion opti ons, purchase options and rights of first offer and/or refusal, if any are provided for in this Lease, shall be null and void.

		
			 
		

			
	
			
				 20.
			

			
	
			
			TENANT'S BANKRUPTCY OR INSOLVENCY.

		
			 
		

		
			20.1 Ifat any time and for so long as Tenant shall be subjected to the provisions of the United States Bankruptcy Code or other law of the United States or any state thereof for the protect ion of debtors as in effect at such time (each a "Debtor 's  Law"):
		

		
			 
		

		
			20. l.l Tenant, Tenant as debtor-in-possession, and any trustee or receiver of Tenant' s assets (each a "Tenant's Representative") shall have no greater right to assume or assign this Lease or any interest in this Lease, or to sublease any of the Premises than accorded to Tenant in Article 9, except to the extent Landlord shall be required to permit such assumption, assignment or sublease by the provisions of such Debtor 's Law. Without limitation of the generality of the foregoing, any right of any Tenant 's Representative to assume or assign this Lease or to sublease any of the Premises shall be subject to the conditions that:
		

		
			 
		

		
			20. 1.1.1 Such Debtor's Law shall provide to Tenant's Representative a right of assumption of this Lease which Tenant's Representative shall have timely exercised and Tenant's Representative shall have fully cured any default of Tenant und er this Lease.
		

		
			 
		

			
	
			
				 19.20.3.2
			Tenant' s Representative or the proposed assignee, as the case shall be, shall have deposited with Landlord as security for the timely payment of rent an amount equal to the larger of: (a) three (3) months' rent and other monetary charges accruing under this Lease; and (b) any sum specified in Article 4; and shall have provided Landlord with adequate other assurance of the future performance of the obligations of the Tenant under this Lease. Without limitation , such assurances shall include, at least, in the case of assumption of this Lease, demonstration to the satisfaction of the Landlord that Tenant 's Representative has and will continue to have sufficient unencumbered assets after the paymen t of all secured obligations and administrative expenses to assure Landlord that Tenant's Representative will have sufficient funds to fulfil l the obligations of Tenant under this Lease; and, in the case of assignment, submission of current financial statements of the proposed assignee, audited by an independent certified public accountant reasonably acceptable to Landlord and showing a net worth and working capital in amounts determined by Landlord to be sufficient to assure the future performance by such assignee of all of the Tenan t's obligations under this Lease.

		

		

		 

		

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				 19.20.3.3
			The assumption or any contemplated assignment of this Lease or subleasing any part of the Premises, as shall be the case, will not breach any provision in any other lease, mongage, financing agreement or other agreement by which Landlord is bound.

		
			 
		

		
			20.1.1.4 Landlord shall have, or would have had absent the Debtor's Law, no right under Article 9 to refuse consent to the proposed assignment or sublease by reason of the identity or nature of the proposed assignee or sublessee or the proposed use of the Premises concerned.
		

		
			 
		

			
	
			
				 21.
			QUIET ENJOYMENT. Landlord represents and warrants that it has full right and authority to enter into this Lease and that Tenant, while paying the rental and performin g its other covenants and agreements contained in this Lease, shall peaceably and quietly have, hold and enjoy the Premises for the Term without hindrance or molestation from Landlord subject to the terms and provisions of this Lease. Landlord shall not be liable for any interference or disturbance by other tenants or third persons, nor shall Tenant be released from any of the obligations of this Lease because of such interference or disturbance.

		
			 
		

			
	
			
				 22.
			

			
	
			
			CASUALTY

		
			 
		

			
	
			
				 22.1
			In the event the Premises or the Building are damaged by fire or other cause and in Landlord's reasonable estimation such damage can be materially restored within one ht:.ndred eighty (180) days, Landlord shall forthwith repair the same and this Lease shall remain in full force and effect, except that Tenant shall be entitled to a proportionate abatement in rent from the date of such damage. Such abatement of rent shall be made pro rata in accordance with the extent to which the damage and the making of such repairs shall interfere with the use and occupancy by Tenant of the Premises from time to time. Within forty-five (45) days from the date of such damage, Landlord shall notify Tenant, in writing, of Landlord's reasonable estimation of the length of time within which material restoration can be made, and Landlord 's determination shall be binding on Tenant. For purposes of this Lease, the Building or Premises shall be deemed "materially restored" if they are in such condition as would not prevent or materially interfere with Tenant 's use of the Premises for the purpose for which it was being used immediately before such damage.

		
			 
		

			
	
			
				 22.2
			If such repairs cannot, in Landlord's reasonable estimation, be made within one hundred eighty (180) days, Landlord and Tenant shall each have the option of giving the other, at any time within ninety (90) days after such damage, notice terminating this Lease as of the date of such damage. In the event of the giving of such notice, this Lease shall expire and all interest of the Tenant in the Premises shall terminate as of the date of such damage as if such date had been originally fixed in this Lease for the expiration of the Term. In the event that neither Landlord nor Tenant exercises its option to terminate this Lease, then Landlord shall repair or restore such damage, this Lease continuing in full force and effect, and the rent hereunder shall be proportionately abated as provided in Section 22.1.

		
			 
		

			
	
			
				 22.3
			Landlord shall not be required to repair or replace any damage or loss by or from fire or other cause to any panelings, decorations, partitions, additions, railings, ceilings, floor coverings, office fixtures or any other property or improvements installed on the Premises by, or belonging to, Tenant. Any insurance which may be carried by Landlord or Tenant against loss or damage to the Building or Premises shall be for the sole benefit of the party carrying such insurance and under its sole control.-

		
			 
		

			
	
			
				 22.4
			In the event that Landlord should fail to complete such  repairs and material restoration within  sixty (60) days after the date estimated by Landl ord therefor as extended by this Section 22.4, Tenant may at its option and as its sole remedy terminate this Lease by delivering written notice to Landlord , within fifteen (15) days  after  the  expiration of said period of time, whereupon the Lease shall end on the date of such notice or such later date fixed in such notice as if the date of such notice was the date originally fixed in this Lease for the expiration of the Term; provided,  however, that  if construction is delayed because of changes, deletions or additions in construction requested by Tenant, strikes, lockouts, casualties, Acts of God, war, material or labor shortages, government regulation or control or other  causes  beyond  the reasonable control of Landlord, the period for restoration, repair or rebuilding shall be extended for the amount of  time Landlord  is so delayed.

		
			 
		

			
	
			
				 22.5
			Notwithstand ing anything to the contrary contained in this Article: (a) Landlord shall not have any obligation whatsoever to repair, reconstruct, or restore the Premises when the damages resulting from any casualty covered by the provisions of this Article 22 occur during the last twel ve (12) months of the Term or any extension thereof, but if Landlord determines not to repair such damages Landlord shall notify Tenant and if such damages shall render any material portion of the Premises untenantable Tenant shall have the right to terminate th is Lease by notice to Landlord within fifteen

		
			 
		

		

		

		 

		

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			( 15) days after receipt of Landlord's notice; and (b) in the event the holder of any indebtedness secured by a mortgage or deed of trust covering the Premises or Building requires that any insurance proceeds be applied to such indebtedness, then Landlord shall have the right to terminate this Lease by delivering written notice of termination to Tenant with in fifteen ( 15) days after such requirement is made by any such holder, whereupon this Lease shall end on the date of such damage as if the date of such damage were the date originally fixed in this Lease for the expiration of the Term.
		

		
			 
		

			
	
			
				 22.6
			In the event of any damage or destr uction to the Building or Premises by any peril covered by the provisions of th is Article 22, it shal l be Tenant's responsibility to properly secure the Premises and upon notice from Landlord to remove forthwith , at its sole cost and expense, such portion of all of the property belonging to Tenant or its licensees from such portion or all of the Building or Premises as Landlord shall request.

		
			 
		

			
	
			
				 23.
			EMINENT DOMAIN. Ifall or any substantial part of the Premises shall be taken or appropriated by any public or q uasi-public authority under the power of eminent domain, or conveyance in lieu of such appropriation, either party to this Lease shall have the right, at its option, of giving the other, at any time within thirty (30) days after such taking, notice tem1inating this Lease, except that Tenant may on ly terminate this Lease by reason of taking or appropriation, if such taking or appropriati on shall be so substantial as to material ly interfere with Tenant 's use and occupancy of the Premises. Ifneither party to this Lease shall so elect to terminate this Lease, the rental thereafter to be paid shall be adjusted on a fair and equitable basis under the circumstances. In addition to the rights of Landlord above, if any substantial part of the Building shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain or conveyance in lieu thereof, and regardless of whether the Premises or any part thereof are so taken or appropriated, Landlord shall have the right, at its sole option, to terminate this Lease. Landlord shall be entitled to any and all income, rent, award, or any interest whatsoever in or upon any such sum, which may be paid or made in connection with any such public or quasi-public use or purpose, and Tenant hereby assigns to Landlord any interest it may have in or claim to all or any part of such sums, other than any separate award which may be made with respect to Tenant's trade fixtures and moving expenses; Tenant shall make no claim for the value of any unexpired Term.

		
			 
		

			
	
			
				 24.
			SALE BY LANDLORD. In event of a sale or conveyance by Landlord of the Building, the same shall operate to release Landlord from any future liability upon any of the covenants or conditions, expressed or implied, contained in th is Lease in favor of Tenant, and in such event Tenant agrees to look solely to the responsibility of the successor in interest of Landlord in and to this Lease. Except as set forth in this Article 24, this Lease shall not be affected by any such sale and Tenant agrees to attom to the purcha ser or assignee. If any security has been given by Tenant to secure the  faithful performance of any of the covenants of this Lease, Landlord may transfer or deliver said security, as such, to Landlord's successor in interest and thereupon Landlord shall be discharged from any further liability with regard to said security.

		
			 
		

			
	
			
				 25.
			ESTOPPEL CERTIFICATES. Within ten (I0) days following any written request which  Landlord  may make from time to time, Tenant shall execute and deliver to Landlord or mortgagee or prospective mortgagee a sworn statement certifying: (a) the date of commencement of this Lease; (b) the fact that this Lease is unmodified and in full force and effect (or, if there have been modifications to this Lease, that this Lease is in full force and effect, as modified, and stating the date and nature of such modifications); (c) the date to which the rent and other sums payable under this Lease have been paid ; (d) the fact that there are no current defaults under this Lease by either Landlord or Tenant except as specified in Tenant's statement; and (e) such other matters as may be requested by Landlord. Landlord and Tenant intend that any statement delivered pursuant to this Article 25 may be relied upon by any mortgagee, beneficiary or purchaser, and Tenant shall be liable for all loss, cost or expense resulting from the failure of any sale or funding of any loan caused by any material misstatement contained in such estoppel certificate. Tenant irrevocabl y agrees that if Tenant fails to execute and deliver such certificate with in such ten (10) day period Landlord or Landlord's beneficiary or agent may execute and deliver such certificate on Tenant's behalf, and that such certificate shall be ful ly binding on Tenant.

		
			 
		

			
	
			
				 26.
			

			
	
			
			SURRENDER OF PREMISES.

		
			 
		

			
	
			
				 26.
			I Tenant shall arrange to meet Landlord for two (2) joint inspections of the Premises, the first to occur at least thirty (30) days (but no more than sixty (60) days) before the last day of the Term, and the second to occur not later than forty-eight (48) hours after Tenant has vacated the Premises. In the event of Tenant's failure to arrange such joint inspection s and/or parti cipate  in either such inspection, Landlord's inspection at  or after Tenant's vacating the Premises shall be conclusi vely deemed correct for purposes of determining Tenant's responsibility for repairs and restoration .

		
			 
		

			
	
			
				 26.2
			All alterations, additions, and improvements in, on, or to the Premises made or installed by or for Tenant, including carpeting (collectively, "Alterations"), shall be and remain the property of Tenant during the Term.   Upon the

		

		

		 

		

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			expiration or sooner termination of the Term, all Alterations shall become a part of the realty an d shall belong to Landlord without compensation, and title shall pass to Landlord under this Lease as by a bill of sale. At the end of the Term or any renewal of the Term or other sooner termination of this Lease, Tenant will peaceably deliver up to Landlord possession of the Premises, together with all Alterations by whomsoever made, in the same conditions received or first installed, broom clean and free of all debris, excepting only ordinary wear and tear and damage by fire or other casualty. Notwithstanding the foregoing, if Landlord elects by notice given to Tenant at least ten (J O) days prior to expiration of the Term, Tenant shall, at Tenant's sole cost, remove any Alterations, including carpeting, so designated by Landlord 's notice, and repair any damage caused by such removal. Tenant must, at Tenant 's sole cost, remove upon termination of th is Lease, any and all of Tenant's furn iture, furnishings, movable partitions of less than full height from floor to cei ling and other trade fixtures and persona l property (coll ecti vel y, "Personalty"). Personalty not so removed shall be deemed abandoned by the Tenant and title to the same shal l thereupon pass to Landlord under this Lease as by a bill of sale, but Tenant shall remain responsible for the cost of removal and disposal of such Personalty, as well as any damage caused by such removal. In lieu of requiring Tenant to remove Alterations and Personalty and repair the Premises as aforesaid, Landlord may, by written notice to Tenant delivered at least thirty (30) days before the Termination Date, require Tenant to pay to Landlord, as additional rent hereunder, the cost of such removal and repair in an amount reasonably estimated by Landlord .
		

		
			 
		

			
	
			
				 26.3
			All obligations of Tenant under this Lease not fully performed as of the expiration or earlier termination of the Term shall survive the expiration or earl ier termination of the Term Upon the expiration or earlier termination of the Tem1, Tenant shall pay to Landlord the amount, as estimated by Lan dlord, necessary to repair and restore the Premises as provided in this Lease and/or to discharge Tenant's obligation for unpaid amounts due or to become due to Landlord. All such amounts shall be used and held by Landlord for payment of such obligations of Tenant, with Tenant being liable for any additional costs upon demand by Landlord, or with any excess to be returned to Tenant after all such obligations have been determined and satisfied.

		
			 
		

			
	
			
				 27.
			NOTICES. Any notice or document required or permitted to be delivered under this Lease shall be addressed to the intended recipient, by fully prepaid registered or certified United States Mail return receipt requested, or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered when tendered for delivery to the addressee at its address set forth on the Reference Pages, or at such other address as it has then last specified by written notice delivered in accordance with this Article 27, or if to Tenant at either its aforesaid address or its last known registered office or home of a general partm:r ur individual owner, whether or not actually accepted or received by the addressee. Any such notice or document may also be personally delivered if a receipt is signed by and received from, the individual, if any, named in Tenant's Not ice Address.

		
			 
		

			
	
			
				 28.
			TAXES PAYABLE BY TENANT. In addition to rent and other charges to be pa id by Tenant under this Lease, Tenant shall reimburse to Landlord , upon demand, any and all taxes payable by Landlord (other than net income taxes) whether or not now customary or within the contemplation of the parties to this Lease: (a) upon, allocable to, or measured by or on the gross or net rent payable under this Lease, including without limitation any gross income tax or excise tax levied by the State, any political subdivision thereof, or the Federal Government with respect to the receipt of such rent; (b) upon or with respect to the possession , leasing, operation, management , maintenance, alteration, repair, use or occupancy of the Premises or any portion thereof, including any sales, use or service tax imposed as a result thereof; (c) upon or measured by the Tenant's gross receipts or payroll or the value of Tenant's equipment, furniture, fixtures and other personal property of Tenant or leasehold improvements, alterations or additions located in the Premises; or (d) upon this transaction or any document to which Tenant is a party creating or transferr ing any interest of Tenant in this Lease or the Premises. In addition to the foregoing, Tenant agrees to pay, before delinquency, any and all taxes levied or assessed against Tenant and which become payable during the term hereof upon Tenant's equipment, furniture, fixtures and other personal property of Tenant located in the Premises.

		
			 
		

			
	
			
				 29.
			RELOCATION OF TENANT. If Tenant, or any sublessee of Tenant, is not occupying the entire of any floor with in the Premises, then Landlord, at its sole expense, on at least sixty (60) days prior written notice, may require Tenant to move from such floor to other space of comparable size and decor in order to permit Landlord to consolidate the space leased to Tenant with other adjoining space leased or to be leased to another tenant. In the event of any such relocation, Landlord will pay all expenses of prepar ing and decorating the new premises so that they will be substan tially similar to that part of the Premises from which Tenant is movin g, and Landlord wil l also pa y the expense of moving Tenant's furniture and equipment to the relocated premises. In such event th is Lease and each and al l of the terms and covenants and conditions hereof shall remain in full force and effect and thereupon be deemed applicable to such new space except that revised Referen ce Pages and a revised Exhibit A shall become part of this Lease and shall reflect the location of the new premises.

		
			 
		

		
			 
		

		
			 
		

		
			30.PARKING.
		

		
			 
		

		
			30.1 During the initial Term of this Lease, Tenant agrees to lease from Landlord and Landlord agrees to lease to Tenant, 4.5 unreserved parking spaces for every 1,000 rentable square foot of leased space within the Premises.  Except as permitted in Section 1.2, in no event shall Tenant's use of the Premises entitle Tenant to any parking spaces in excess of the number expressly permitted hereunder. Approximately 44% of Tenant's parking shall be in the Building's structured garage. Five (5) of Tenant 's allotted number of parking spaces hereunder shall be designated by 
		

		 

		

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		Landlord as Tenant' s visitor parking spaces, and the cost of visitor parkin g signage shall be at Tenant 's cost and may be deducted from the Tenant Improvement Allowance (as defined in Exhibit B). There shall be no charge during the initial Term for the spaces allocated to Tenant under this Section 30. l (namely, 4. 5/ 1000 as aforesaid). This right to park in the Building's parking facilities (the "Parking Facility") is on an unreserved, nonexclusive , first come, first served basis, for passenger-size automobiles and is subject to the following terms and conditions:
		

		
			 
		

		
			30.1.1 Except as otherwise stated in Section 30.1 above, Tenant shall pay to Landlord, or Landlord 's designated parking operator, the Building's prevailing monthly parking charges, without deduction or offset, on the first day of each month during the Term of this Lease. Landlord will notify Tenant upon not less than thirty (30) days' notice of any increases in the monthly parking charges prior to billing Tenant any increases.  No deducti ons from the monthly charge shall be made for days on which the Parking Facil ity is not used by Tenant.
		

		
			 
		

			
	
			
				 29.3.2
			Tenant shall at all times abide by arid shall cause each of Tenant' s employees, agents, customers, visitors, invitees, licensees, contractors, assignees and subtenants (collectively, "Tenant's Parties") to abide by any rules and regulations ("Rules") for use of the Parking Facility that Landlord or Landlord's garage operator reasonably establishes from time to time, and otherwise agrees to use the Parking Facility in a safe and lawful manner. Landlord reserves the right to adopt, modify and enforce the Rules governing the use of the Parking Facility from time to time including any key-card, sticker or other identification or entrance system and hours of operation. Landlord may refuse to permit any person who violates such Rules to park in the Parking Facility, and any violation of the Rules shall subject the car to removal from the Parking Facility.

		
			 
		

			
	
			
				 29.3.3
			Unless specified to the contrary above, the parking spaces hereunder shall be provided on a non­ designated "first-come, first-served" basis. Landlord reserves the right to assign specific spaces, and to reserve spaces for visitors, small cars, disabled persons or for other tenants or guests, and Tenant shall not park and shall not allow Tenant's Parties to park in any such assigned or reserved spaces. Tenant may validate visitor parking by such method as Landlord may approve, at the validation rate from time to time generally applicable to visitor parking. Tenant acknowledges that the Parking Facility may be closed entirely or in part in order to make repairs or perform maintenance services, or to alter, modify, re-stripe or renovate the Parking Facility, or ifrequired by casualty, strike, condemnation, act of God, governmental law or requirement or other reason beyond the operator's reasonable control.

		
			 
		

			
	
			
				 29.3.4
			Tenant acknowledges that to the fullest extent permitted by Jaw, Landlord shall have no liability for any damage to property or other items located in the parking areas of the Project (including without limitation, any loss or damage to tenant's automobile or the contents thereof due to theft, vandalism or accident), nor for any personal injuries or death arising out of the use of the Parking Facility by Tenant or any Tenant's Parties, whether or not such loss or damage results from Landlord's active negligen ce or negligent omission. The limitation on Landlord's liability under the preceding sentence shall not apply however to Joss or damage arising directly from Landlord's willfu l misconduct. Without limiting the foregoing, if Landlord arran ges for the parking areas to be operated by an independent contractor not affi liated with Landlord, Tenant acknowledges that Landlord shall have no liability for claims arising through acts or omissions of such independent contractor. Tenant and Tenant's Parties each hereby voluntarily releases, discharges, waives and relinquishes any and al l actions or causes of action for personal injury or property damage occurring to Tenant or any of Tenant's Parties arising as a result of parking in the Parking Facility, or any activities incidental thereto, wherever or however the same may occur, and further agrees that Tenant will not prosecute any claim for personal injury or property damage against Landlord or any of its officers, agents, servants or employees for any said causes of action and in all events, Tenant agrees to look first to its insurance carrier and to require that Tenant's Parties look first to their respective insurance carriers for payment of any losses sustained in connection with any use of the Parking Facility.

		
			 
		

		
			30. l  .5 Upon any permitted assignment or sublease the number of parking spaces available  to Tenant hereunder shall be reduced so that the same shall not exceed 4 parking passes per 1,000 rentable square feet in the Premises. Such right to park  in the reduced  number  of spaces as aforesaid  shall contin ue to be on  an unreserved, non-exclusive, first
		

		

		

		 

		

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			come, first service basis for passenger size automobiles and shall otherwise be subject to the tenns and conditions of this Article except as herein amended.
		

		
			 
		

			
	
			
				 30.
			J .6 In the event any surcharge or regulatory fee is at any time imposed by any governmenta l authority with reference to parking , Tenant shall (commencing after two (2) weeks' notice to Tenant) pay, per parking pass, such surcharge or regulatory fee to Landlord in advance on the first day of each calendar month concurrently with the month installment of rent due under th is Lease. Landlord will enforce any surcharge or fee in an equitable manner amongst the Building tenants.

		
			 
		

		
			30.2     IfTenant violates any of the tenns and cond i tions of this Article, the operator of the Parking Facility shall have the right to remove from the Parking Faci lity any vehicles hereunder which shall have been involved or shall have been owned or driven by parties involved in causing such violation, without  liability therefor whatsoever.
		

		
			 
		

			
	
			
				 31.
			.DEFINED TERMS AND HEADINGS. The Article headings shown in this Lease are for conven ience of reference and shall in no way define, increase, limit or describe the scope or intent of any provision of this Lease. Any indemnification or insurance of Landlord shall apply to and inure to the benefit of all the following "Land lord Entities", being Landlord, Landlord's investment manager, and the trustees, boards of directors, officers, genera l partner s, beneficiaries, stockholders, employees and agents of each of them.  Any option granted to Landlord shall also include or be exercisable by Landlord 's trustee, beneficiary , agents and employees, as the case may be.   In any case where this Lease is signed by more than one person, the obligations under this Lease shall be joint and several.  The tenns "Tenant" and "Landlord" or any pronoun used in place thereof shall indicate and include the masculine or feminine, the singular or plural number, individuals, firms or corporations, and their and each of their respective successors, executors, administrators and pennitted assigns, according to the context hereof.  The tenn "rentable area" shall mean the rentable area of the Premises or the Building as calculated by the Landlord on the basis of the plans and specifications of the Building including a proportionate share of any common areas. Tenant hereby accepts and agrees to be bound by the figures for the rentable square footage of the Premises and Tenant 's Proportiona te Share shown on the Reference Pages; however, Landlord may adjust either or both figures if there is manifest error, addition or subtraction to the Building or any business park or complex of which the Building is a part, remeasurement or other circumstan ce reasonably justifyin g adjustment.  The term "Building" refers to the structure in which the Premises are located and the common areas (parking lots, sidewalks, landscaping, etc.) appurtenant thereto.  If the Building is part of a larger  complex  of structures, the term  "Building" may  include the  entire complex,  where  appropriate (such  as shared Expenses, Insurance Costs or Taxes) and subject to Landlord's reasonable discretion.

		
			 
		

			
	
			
				 32.
			TENANT'S AUTHORITY. If Tenant signs as a corporation, partner ship, trust or other legal entity each  of the persons executing this Lease on beha lf of Tenant represents and warrants that Tenant has been  and is qualified to do business in the state in wh ich the Building is located, that the entity has full right and authority to enter into this Lease, and that all persons signing on behalf of the entity were authorized to do so by appropriate actions. Tenant agrees to deliver to Landlord, simultaneously with the delivery of this Lease, a  corporate resolution, proof of due authorization  by  partners, opinion  of counsel or other appropriate documentation reasonably acceptable to Landlord evidencing the due authorization of Tenant to enter into this Lease.

		
			 
		

			
	
			
				 33.
			FINANCIAL STATEMENTS ANl> CREDIT REPORTS. At Landlord 's  request,  Tenant  shall  deliver  to Landlord a copy, certified by an officer of Tenant as being a true and correct copy, of Tenant 's most recent audited financial statement, or, if unaudited, certified by Tenant's chief financial officer as being true, complete and correct  in  all  material respects . Tenant hereby authorizes Landlord to obtain one or more credit  reports on Tenant  at any time,  and shall execute such further authorizations as Landlord may reasonably require in order to obtain a credit report.

		
			 
		

			
	
			
				 34.
			COMMISSIONS. Each  of the parties represents and warrants to the other that it has not dealt with any broker or finder in connect ion with this Lease, except as descri bed on the Reference Pages.

		
			 
		

			
	
			
				 35.
			TIME AND APPLICABLE  LAW.  Time is of the essence of th is Lease and all of its provisions.  This Lease shall in al l respects be governed by the laws of the state in which the Building is located.

		
			 
		

			
	
			
				 36.
			SUCCESSORS AND ASSIGNS. Subject to the provisions of Article 9, the terms, covenants and conditions contained in this Lease shall be binding upon and inure to the benefit of the heirs, successors, executors, administrators and assigns of the parties to this Lease.

		
			 
		

		

		

		 

		

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				 37.
			ENTIRE AGREEMENT. This Lease, together with its exh i bits, contains all agreements of the part i es to this Lease and supersedes any previous negotiati ons. There have been no representations made by the Landlord or any of its representatives or understandings made between the parties other than those set forth in this Lease and its exh ibits. This Lease may not be modified except by a written instrument duly executed by the parti es to this Lease.

		
			 
		

			
	
			
				 38.
			EXAMINATION NOT OPTION. Submission of this Lease shall not be deemed to  be a  reservation of the Premises. Landlord shall not be bound by this Lease until it has received a copy of this Lease duly executed by Tenant and has delivered to Tenant a copy of this Lease duly executed by Landlord , and until such delivery Landlord reserves the right to exhibit and lease the Premises to other prospective tenants. Notwithstanding anything contained in this Lease to the contrary, Landlord may withhold delivery of possession of the Premises from Tenant unt il such time as Tenant has paid to Landlord the first month 's rent as set forth in Artic le 3 and any sum owed pursuant to th is Lease.

		
			 
		

		
			39.  RECORDATION.  Tenant shall not record or register this Lease or a short form memorandum hereof without the prior written consent of Landlord, and then shall pay all charges and taxes incident such recording or registration.
		

		
			 
		

			
	
			
				 40.
			RIGHT OF FIRST OFFER.

		
			 
		

			
	
			
				 40.1
			During the initial Term (except as hereinbelow stated), and provided (i) Tenant is not then in default under the terms, covenants and conditions of the Lease and (ii) Tenant and/or its Permitted Transferee is then in occupation of the entire of the Premises (any permitted occupation by a Tenant vendor shall be deemed occupation by Tenant for purposes of this Article 40), Tenant shall have (a) a one time right of first offer on all of the space (the "Sky Chefs Space") that is, as of the Commencement Date, occupied by LSG Lufthansa Service Holdings A.G. and LSG Sky Chefs, L.L.C. (collectively, "Sky Chefs") as and when the Sky Chefs Space becomes available and is vacated by the prior tenant and all occupants thereof and

		
			(b) subject to the existing rights of Sky Chefs therein, an ongoing and continuous right of first offer on all other space within the Building (the "ROFO Space") as and when the ROFO Space becomes available and is vacated by the prior tenants and all occupants thereof.
		

		
			 
		

			
	
			
				 40.2
			Upon the Sky Chefs Space or any of the ROFO Space becoming available, as applicable (the "Availa ble Space"),   Land lord shall give written notice (the "Notice" ) to Tenant of the terms and conditions on which Landlord  is willing to offer the Available Space to Tenant based on then preva iling market economics and concessions for the leasing of such space (the "Offer") and Tenant shall have a period  of   ten (I0) days from and including the date of delivery of the Notice in which to exercise Tenant's right to lease the Available Space pursuant to the terms and conditions of the Offer, failing which Landlord may lease the Available Space or any part thereof to any third party lease prospect (the "Prospect") on whatever basis Landlord desires, except however that, Landlord must re-offer the Available Space to Tenant if, in any offer to the Prospect, the average Annual Rent per square foot is reduced by more than ten percent (I0%) and/or if any available tenant improvement allowance is increased by more than ten percent ( 10%) per square foot.  In such event, upon receipt of a written notice from Landlord with the terms of such re-offer (the "Re-Offer"), Tenant shall have a period of five (5) business days from and including the date of delivery of the re-offer notice in which to exercise Tenant's right to lease the Available Space pursuant to the terms and conditions of the Re-Offer, failing which Landlord shall be at liberty to lease the Available Space to the Prospect upon the terms and conditions of the Re-Offer.   Time is of the essence herein.  Tenant acknowledges that if Tenant counteroffers the Offer, or the Re-Offer as appl icable, or does not timely deliver Tenant's acceptance of the Offer, or the Re-Offer as applicable, then Landlord shall be at l iberty at any time thereafter in its sole and absolute discretion (even if Landlord has commenced negotiations with Tenant) to determine that Tenant has waived its option to take the Available Space, and Landlord may thereupon lease the Available Space, or any part thereof, to the Prospect as hereinabove provided. Tenant shal l maintain strict confidentiality of the identity of Landlord's lease prospects and Landlord's market and other information provided to Tenant pursuant to th is Article 40.

		
			 
		

			
	
			
				 40.3
			Landlord acknowledges that any lease of the Ava ilable Space by Tenant hereunder shall be conterminous with the Term under thi s Lease. In consideration of such acknowledgement, Tenant agrees that the expansion options perm itted under this Article 40 sha ll not apply during the last year of the in itial Tenn. In addition, i f after the sixth (6'h) year of the initial Tenn, Landlord rece ives a bona fide offer from a Prospect to lease the applicable Available Space for a term which extends beyond the in itial Term of th is Lease, then , with in the applicable time periods set forth above, Tenant shall either waive its right of first offer for such Avai Jable Space, or elect to take the Availab le Space on the terms of such offer (provided that, at Tenant's election, the term specified in such offer may be limited to five (5) years) and extend the initial Term of this Lease so that it expires on the expiration date set forth in such offer (subject to the five (5) year limit as aforesaid) (the rent for the Premises during such extended term shall be at the rate per square foot specified in such offer for

		

		

		 

		

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			the period of the extended tem1). Such extension of the tem1 under this Article 40 shall not affect Tenant's renewal right under Article 41 below.
		

		
			 
		

			
	
			
				 40.4
			If Tenant exercises an expansion option hereunder, then effective as of the date Landlord deli vers the Available Space, the Available Space shall automatically be included within the Premises and subject to all the terms and conditions of the Lease, except as set forth in Landlord's notice and as follows:

		
			 
		

			
	
			
				 40.4.1
			This option is not transferable; the parties hereto acknowledge and agree that they intend that this option to expand the Premises shall be "personal" to Conexis Benefits Administrators, L.P ., or any Permitted Transferee, and that in no event will any assignee or sublessee have any rights to exercise this option to expand.

		
			 
		

			
	
			
				 40.4.2
			Tenant's Proportionate Share shall be recalculated, using the total square footage of the Premises, as increased by the Available Space.

		
			 
		

			
	
			
				 40.4.3
			The Available Space shall be leased on an "AS-IS" basis and Landlord shall have no obligation to improve the Available Space or grant Tenant any improvement allowance thereon.

		
			 
		

			
	
			
				 40.5
			If so requested by Landlord, Tenant shall, prior to the beginning of the term for the Available Space, execute a written amendment to this Lease confirming the inclusion of the Available Space and the terms of the Offer including the  Annual Rent for the Available Space.

		
			 
		

			
	
			
				 41.
			RENEWAL OPTION. Tenant shall, provided the Lease is in full force and effect and Tenant is not in default under any of the terms and conditions of the Lease at the time of notification or commencement, have one (1) option to renew this Lease for a term of five (5) years as of the date the renewal term is to commence, on the same terms and conditions set forth in the Lease, except as modified by the tenns, covenants and conditions as set forth below:

		
			 
		

			
	
			
				 41.1
			If Tenant elects to exercise said option, then Tenant shall provide Landlord with written notice no earlier than the date which is twelve (12) months prior to the expiration of the initial Term of the Lease but no later than the date which is nine (9) months prior to the expiration of the in itial Term of the Lease. If Tenant fails to provide such notice, Tenant shall have no further or additional right to extend or renew the Term of the Lease.

		
			 
		

			
	
			
				 41.2
			The Annual Rent and Monthly Installment of Rent in effect at the expiration of the initial Tenn of the Lease shall reflect the current fair market rental for comparable space in the Building and in other similar buildings in the same rental market as of the date the renewal term is to commence, taking into account the specific provisions of the Lease which will remain constant. Landlord shall advise Tenant of the new Annual Rent and Monthly Installmen t of Rent for the Premises no later than thirty (30) days after receipt of Tenant's written request therefor. Said request shall be made no earlier than thirty (30) days prior to the first date on which Tenant may exercise its option under this Paragraph. Said notification of the new Annual Rent may include a provision for its escalation to provide for a change in fair market rental between the time of notification and the commencement of the renewal term. Tenant shall have ten (10) days from said notification (the "Negot iation Period") to provide Landlord with written notice that Tenant accepts the revised Annual Rent and Monthly Installment of Rent.·

		
			 
		

			
	
			
				 41.3
			Should Landlord and Tenant fail to reach agreement during the Negotiation Period, either party may within five (5) days thereafter, refer such dispute to arbitration. Within ten (I0) days following the Negotiation Period, the parties shall each appoint a real estate appraiser who special izes in the field of commercial office space leasing in the Las Colinas/Freeport, Irving, Texas market, has at least ten (I0) years of experience in such field and is recognized within the field as being reputable and ethical. Such two appraisers shall each determine the fair market rental for the Premises for the renewal term . Ifthe greater of such two determinations is not more than five percent (5%) higher than the lesser of such two determinations , then the  fair market rental shall equal the mean of such two determinations . If the greater of such two determinations is more than five percent (5%) higher than the lesser of such two determinations, then the two appraisers shall, within ten ( 10) days, render separate written reports of their determinations and shall together appoint a th ird similarly qualified appraiser. The third appraiser shall, with in ten ( J O) days after his or her appointment, make a determination of the fair market rental, wh ich shall equal the mean of the three (3) determ inations and shall be final, conclusive and binding on both parties. Landlord and Tenan t shall each bear the cost of its appraiser and Tenant shall bear the cost of the third (3'd) appraiser. Upon the determination of the matters referenced in this Article 41, Landlord and Tenant shall enter into an agreement supplementary to the Lease, as amended, setting forth the new Annual Rent and Monthly Installment of Rent for the renewal term, but the failure to enter into any such supplementary agreement shall not affect the exercise of Tenant's

		
			 
		

		

		

		 

		

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			option under this Article 4 l. If such arbitration shall not be concluded prior to the commenceme nt of the renewal term, then the initial Monthly Installment of Rent for the renewa l term shall be the same as that payable by Tenant during the last month of the initial Term. If the arbitration shall result in a lower rent, Tenant shall be entitled to a credit against the next succeeding instal lments ofrent due hereunder for such overpayment as it shall have theretofore made. Ifthe arbitration shall result in a higher rent, Tenant shall promptly pay to Landlord the amount of the underpayment.
		

		
			 
		

			
	
			
				 41.4
			This option is not transferable; the parties hereto acknowledge and agree that they intend that this option to renew the Lease shall be "personal" to Conexis Benefits Administrators, L.P., or any Permitted Transferee, and that  in  no event will any assignee or sublessee have any right s to exercise this option to renew.

		
			 
		

			
	
			
				 41.5
			

			
	
			
			Upon exercise of this option Tenant shall have no further right to extend the Term of the Lease.

		
			 
		

			
	
			
				 42.
			

			
	
			
			TERMINATION OPTION. Provided (i) Tenant is not then in default under the terms, covenants and conditions of the Lease, and (ii) Tenant pays to Landlord the Termination Payment (defined below) in the manner set forth below, Tenant shall have a one time right to terminate this Lease effective as of the last calendar day of the eighty fourth (841h) month of the Term (the "Term ination Date") in accordance with the following provisions. Tenant's one time right to terminate the Lease must be exercised by written notice to Landlord at least twelve (12) months prior to the Termination Date or Tenant shall have waived its right of termination. Time is of the essence in giving such notice. As a condition to exercising such right of termination , Tenant must pay to Landlord, at the same time as Tenant gives its termination notice, a cash amount (the " Termination Paymen t") which is calculated as an amount equal to the total of :

		
			 
		

			
	
			
				 (a)
			

			
	
			
			five (5) month's then base rent (namely the then Monthly Installment of Rent XS);

		
			 
		

			
	
			
				 (b)
			

			
	
			
			electricity costs for the previous five (5) month period; and

		
			 
		

			
	
			
				 (c)
			

			
	
			
			the  unamortized   costs  (based  on  an  amortization  rate  of  ten  percent  (10%)  per  annum)  of  Landlord's leasing costs, including but not lim ited to al l of the Tenant Improvement Allowances (as defined in Exhibit

			
	
			
				 a)
			paid to Tenant for all of the space leased by Tenant prior to the Termination Date, electricity abatement, reasonable legal costs and brokerage commissions paid by Landlord in connection with the Lease, calculated on a straight-line basis over the initial Term of the Lease.

		
			 
		

		
			Tenant's failure to timely pay the Termination Payment as aforesaid shall render the exercise of the termination option null and void. If Tenant properly gives notice of termination and timely pays the Termination Payment as above required, then the Lease shall terminate on the Termination Date as if such date were the scheduled expiration date of the Lease, but without prejudice to (I) all rights and remedies available to Landlord for any antecedent breach of covenant by Tenant under this Lease and (II) the continuance of all obligations or liabilities (including Tenant ind emnities) which are expressly stated to survive the termination of the Lease. This option is not transferable ; the parties hereto acknowledge and agree that they intend that this early termination option shall be "personal" to Conexis Benefits Administrators, L.P., or any Permitted Transferee and that in no event will any assignee or sublessee have any rights to exercise such option.
		

		
			 
		

			
	
			
				 43.
			USE OF ROOFTOP SPACE. Landlord hereby agrees that, during the Lease Term, Tenant shall have the non­ exclusive right to install in and on the roof of the Building, a satellite dish, antenna and related equipment (collectively, the "Satellite System") upon the terms and subject to the conditions set forth below:

		
			 
		

			
	
			
				 43.1
			Tenant shall, at Tenant's sole cost and expense, provide for the installation of the Satellite System and for all service, repairs, and maintenance to the Satellite System. Tenant shall first submit to Landlord for approval by Landlord, and, if applicable, Las Colinas Association, plans and specifications with regard to the proposed structure and location of the Satellite System. No installation work shall commence pending receipt by Tenant of prior written approval from Landlord, and, if applicable, Las Colinas Association, of such plans and specifications and al l necessary licenses, permits and approvals for the installation , use and operation of the Satellite System. The Satellite System shall be located so as not to be visible except from above the Building, and shall have no visible markin g or logo. With respect to the installation of the Satellite System, the Satellite System shall not be affixed to the roof of the Bui lding by nail, bolt, screw, or other device which penetrates the roof, and Ten ant acknowledges that it is an express condition of the license herein contained that all roof penetrations including wiring penetration s shall be made solely by Landlord's roofing contractor (and by no other contractor whatsoever) at Tenant's sole cost and expense. The Satellite System shall be maintained by Tenant in good order and repair and in a safe condition. In the event that Tenant fails to so maintain the Satellite System and Landlord, in Landlord's sole but reasonable discretion, deems such failure to present a danger of injury to persons or damage to property in or about the

		

		

		 

		

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			Building, Landlord , after providing Tenant with five (5) days prior written notice (except in the case of an emergency) may complete such repairs or maintenance and recover the cost thereof from Tenant, which sum shall be due and payable within ten (I0) business days after Landlord's written notice to Tenant with respect thereto.
		

		
			 
		

			
	
			
				 43.2
			Tenant may not substitute or modify the Satellite System or any part thereof, without the prior written approval of Landlord, and, if applicable, Las Colinas Association. Any substitution or modification approved by Landlord and, if applicable, Las Colinas Associat ion, shall automatically become a part of the Satellite System, and all terms of this Article 43 shall apply to such substitution and/or modificat ion.

		
			 
		

			
	
			
				 43.3
			Tenant shall take all measures necessary to ensure that the Satellite System does not interfere with or disturb the operation of any other satellite system or business of Landlord or of any other tenant or occupant of the Building or of any other authorized party. Tenant shal l remove the Satellite System, or at Landlord 's discretion, modify the Satellite System or relocate the Satellite System to another area approved by Landlord in the event that the Satellite System, in Landlord's sole but reasonable judgment, causes any interference with or disturbs the operation of any other satellite system or business of Landlord or of any other occupants of the Building or creates or results in any noise or nuisance to any other occupant of the Building, or areas adjacent thereto. Tenant must immed iately shut off the Satellite System upon notification of interference and may restart, modify or relocate the Satellite System to test for interference only with Landlord's permission.

		
			 
		

			
	
			
				 43.4
			The Satellite System is solely for use for Tenant's internal business and the benefits of the Satellite System may not be provided by Tenant to third parties. Landlord may require, as a condition to the issue of its consent, that any provider installing the Satellite System shall enter into a separate agreement with Landlord on Landlord's standard form. The Satellite System may not be sold or rented by Tenant to third parties, nor may Tenant sublet or assign the license herein granted to Tenant. Any electrical usage associated with the Satellite System shall be governed by the provisions of Article 13 of this Lease.

		
			 
		

			
	
			
				 43.5
			Tenant shall, at Tenant's sole cost, take all measures necessary to ensure that any radiation emitted from the Satellite System is emitted only in non-harmful levels and that the Satellite System strictly complies with all laws, rules, regulations, ordinances and codes, whether now or hereafter existing, of all federal, state and local governmental authorities and to al 1 contractual obligations to which Tenant is bound in connection with such Satellite System, including, without limitation, regulations of the Federal Communications Commission, the Environmental Protection Agency, and the Occupationa l Safety and Health Administration. In the event such compliance shall require modifications of the Satellite System, no modification shall be made without Landlord 's prior written consent, which may be withheld or granted on such terms and conditions as Landlord may determine in its sole discretion in the event that such modifications (i) affect the structural integrity of the Building, the Building systems, including without limitation , the electrical, communications, or signal systems, (ii) confl ict with any of the terms and conditions of this Lease, (iii) affect any warrant ies which Landlord has with respect to the Building, (iv) cause Landlord to be in violation of any laws, rules, regulations, ordinances or codes of any federal, state or local governmental authorities or any contractual obligations to which Landlord is bound with respect to the Building or (v) are not approved by Las Colinas Association to the extent that its approval must be obtained by Landlord.

		
			 
		

			
	
			
				 43.6
			In the event that Landlord determines in its reasonable discretion that Tenant is in default under this Article 43, Landlord may, at Landlord's option, require Tenant to cease all operation of the Satellite System with in twenty-four (24) hours of Tenant receiving written notice from Landlord and require Tenant to either modify, relocate or remove the Satellite System, at Tenant's sole cost, to remedy any such interference or non-compliance.

		
			 
		

			
	
			
				 43.7
			Upon the expiration or termination of the Term, or if otherwise so required under this Article 43, Tenant shall, at Tenant's sole cost and expense, remove the Satellite System and restore the area of the Building on which the Satellite System was located to its condition existing as of the date of execution of this Lease. Such removal and restoration work shall be completed by Tenant with in fifteen (15) days of the date on which the condition requiring such removal and restoration work occurs. In the event that Tenant shall fail to complete the removal of the Satellite System and the restorat ion of the affected portion of the Building within such fifteen (15) day period, Landlord shall have the right to effect such removal and restorat ion after provid ing Tenant with three (3) days prior written notice, but shall not be obligated to do so, in which event, Tenant shall reimburse Landlord for all costs incurred by Landlord in performing such removal and restoration work. In addition, any Satellite System remaining at the Building subsequent to the expiration of such fifteen ( 15) day period after the notice is extended shall be deemed to have been abandoned by Tenant, so that in no event shall Landlord have any duty to preserve or restore the Buil ding on Tenant's behalf. If Landlord does choose to store the Satellite System on Tenant's behalf, the actual and reasonable cost of storage incurred by Landlord shall be reimbursed by Tenant on demand.  In such

		
			 
		

		

		

		 

		

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			event, Landlord shall also have the right to sell such Satellite System for salvage value and to apply the proceeds derived from such sale to sums owing by Tenant to Landlord hereunder.
		

		
			 
		

			
	
			
				 43.8
			As a material inducement to Landlord to grant the non-exclusive license herein contained, Tenant hereby represents and warrants to Landlord that (i) the Satellite System will have received approval from the Underwriters Laboratory and from the Federal Communications Commission; (ii) the Satellite System will be installed in accordance with the plans and specifications therefor as approved by Landlord , in Landlord's sole but reasonable discretion; (iii) the Satellite System will be designed to require minimum maintenance; (iv) the Satellite System will not emit radiation; (v) the Satellite System will not interfere with other like satellite systems located on the rooftop of the Building or in the Building; and (vi) Tenant will have received all necessary licenses and permits from all applicable governmental authorities regarding the installation and operation of the Satellite System, prior to such installation and operation .

		
			 
		

		
			43.9  Notwithstand ing any provision  in this Lease to the contrary, it is the intention of the parties that Tenant bear a ll risks relating to the installation, use, maintenance, operation and removal of the Satellite System; therefore, notwithstanding any other provision of the Lease or this Amendment to the contrary, Tenant shall defend, indemnify and hold harmless Landlord, its parent, affiliates, shareholders, partners, members, managers, agents, representatives, employees, contractors and invitees and their respective affiliates from all  losses,  claims, judgments,  settlements, expenses, damages, costs and  liabilities  arising  in connection  with  or  relating  to  the installation, maintenance, repair, use, operation and removal of the Satellite System,  including,  without  limitation,  that  arising  from  Landlord's negligence  (other  than  its gross  negligence).
		

		
			 
		

		
			43. I 0 Landlord shall not be liable to Tenant for any loss or damage to all or any part of the Satellite System occasioned by theft, fire, act of God, public enemy, injunction, riot, vandalism, malicious mischief, earthquake, flood, strike, insurrection, war, court order, requisition , or order of governmental body or authority or by any other cause whatsoever. Further Landlord shall not be liable for any damage or inconvenience which may arise through the repair or alteration of any part of the Building or through termination of the Lease.
		

		
			 
		

		
			43 .11 In addition to the insurance obligations of Tenant under Article 11 of th is Lease, Tenant shall maintain a policy or policies of fire and extended coverage insurance on the Satellite System, in such amounts as Tenant may deem appropriate; provided, however, that Tenant shall never have any claim against Landlord for any loss or damage that may occur to the Satellite System which should be covered by insurance.
		

		
			 
		

		
			43. 12The provisions of this Article 43 shall survive the expiration or prior termination of the Lease Term .
		

		
			 
		

		
			44. GUARANTY .  As additional consideration for Landlord to enter into this Lease, Tenant shall cause Guarantor to execute a guaranty in the form attached as Exhibit E to th is Lease and Tenant shall deliver the same to  Landlord contemporaneously with Tenant's execution of this Lease.
		

		
			 
		

		
			45.         LIMITATION  OF LANDLORD' S LIABILITY.   Redress for any claim against Landlord under this Lease shall be limited to and enforceable only against and to the extent of Landlord 's interest in the Building. The obligations of Landlord under this Lease are not intended to be and shall not be personally binding on, nor shall any resort be had to the pri vate properties of, any of its or its investment manager 's trustees, directors, officers, partners, beneficiaries, members, stockholders, employees, or agents, and in no case shall Landlord be liable to Tenant hereunder for any lost profits, damage to business, or any form of special, indirect or consequent ial damages.
		

		
			 
		

		
			 
		

		
			 
		

		
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		EXHIBIT A -FLOOR PLAN DEPICTING THE PREMISES
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase II Limited Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators, L.P., as Tenant
		

		
			 
		

		
			Exhibit A is intended only to show the general layout of the Premises as of the beginning of the Term of this Lease. It does not in any way supersede any of Landlord' s rights set forth in Article 17 with respect to arrangements and/or locations of public parts of the Building and changes in such arrangements and/or locations.  It is not to be scaled; any measurements or distances shown should be taken as approximate.
		

		
			 
		

		
			
		

		

		

		 

		

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			EXHIBIT A - FLOOR PLAN DEPICTING THE PREMISES
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase II Limited Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators , L.P., as Tenant
		

		
			 
		

		
			
		

		
			 
		

		

		

		 

		

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			EXHIBIT A - FLOOR PLAN DEPICTING THE PREMISES
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase IILimited Partnership , as Landlord and 
		

		
			Conexis Benefits Administrators, L.P., as Tenant
		

		
			 
		

		
			 
		

		
			
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

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			EXHIBIT A-1 -SITE PLAN
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase II Limited Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators, L.P., as Tenant
		

		
			 
		

		
			Exhibit A-1 is intended only to show the general location of the Building as of the begi nn ing of the Tem1 of this Lease. It does not in any way supersede any of Landlord 's rights set forth in Article 17 with respect to arrangements and/or locations of publ ic parts of the Building and changes in such arrangements and/or locations. It is not to be scaled; any measurement s or distances shown should be taken as approximate.
		

		
			 
		

		
			
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

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		EXHIBIT B -INITIAL  ALTERATIONS
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase II Limited Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators, L.P., as Tenant
		

		
			 
		

		
			I.Acceptance of Initial Premises.   Except  as set  forth  in this Exhibit,  Tenant accepts the  Initial Premises  in  its "AS-IS" condition as of the Lease Reference Date.
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			Space Plans . Landlord has, prior to its execution of th is  Lease,  approved  the  space  plans  (the  "Space  Plans") prepared  by BOKA Powel l, LLC (the "Architect") depicting improvements to be installed in the Initial Premises.

		
			 
		

			
	
			
				 3.
			

			
	
			
			Working Drawings.

		
			 
		

			
	
			
				 (a)
			Preparation and Delivery. On or before the tenth (JO'h) day following Landlord 's execution of this Lease (such earlier date is referred to herein as the "Working Drawin gs Delivery Deadline"), Tenant shall provide to Landlord for its approval final working drawings, prepared by the Architect, and, as applicable, Purdy McGuire (in connection with the MEP drawings), of al l improvements that Tenant proposes to install in the Initial Premises; such working drawings shall include the partition layout, ceiling plan, electrical outlets and switches, telephone outlets, drawings for any modifications to the mechanical and plumbing systems of the Building, and detailed plans and specifications for the construction of the improvements called for under this Exhibit in accordance with all applicable laws. If Tenant fails to timely deliver such drawings, then each day after the Working Drawings Delivery Deadline that such drawings are not delivered to Landlord shall be a Tenant Delay day.

		
			 
		

			
	
			
				 (b)
			Ap proval Process. Landlord shall notify Tenant whether it approves of the submitted working drawings within five (5) busi ness days after Tenant's submission thereof. If Landlord disapproves of such working drawings, then Lan dlord shall n otify Tenant thereof specifying in reasonable detail the reasons for such disapproval, in which case Tenant shall, within three (3) business days after such notice, revise such working drawings in accordance with Landlord's objections and submit the revised working drawings to Landlord for its review and approval. Landlord shall notify Tenant in writing whether it approves of the resubmitted working drawings within three (3) business days after its receipt thereof.  This process

		
			shall be repeated until the working drawings have been finally approved by Tenant and Landlord . If the working drawings are not fully approved (or deemed approved) by both Landl ord and Tenant by the fifteenth (15111) business day after the delivery of the initial draft thereof to Landlord , then each day after such time period that such working drawings are not fully
		

		
			approved (or deemed approved) by both Landlord and Tenant shall constitute a Tenant Delay day.
		

		
			 
		

			
	
			
				 (c)
			Landlord's   Approval;  Performance   of Work.  If any of Tenant's proposed  construction  work will affect the Building's structure or the Building's systems, then the working drawings pertaining thereto must be approved  by the Building's engineer of record. Landlord's approval of such working drawings shall not be unreasonably withheld, provided that ( I ) they comply with all laws, (2) the improvements depicted thereon do not adversely affect (in  the  reasonable discretion of Landlord) the Building's structure or the Building's systems (including the Building's restrooms or mechanical rooms), the exterior appearance of the Building, or the appearance of the Building's common areas or elevator  lobby areas, (3) such working drawings are sufficiently detailed to allow construction of the improvements in a good and workmanlike manner, and (4) the improvements depicted thereon confonn to the rules and regulations promu lgated from time to time by Landlord for the construction of tenant improvements (a copy of which has been delivered to Tenant). As used herein, "Working Drawings" shall mean the final working drawings approved by Landlord, as amended from time to time by any approved changes thereto, and "Work" shall mean all improvements to be constructed in accordance with and as indicated on the Working Drawings, together with any work required by governmental authorities to be made to other areas of the Building as a result of the improvements indicated by the Working Drawings. Landlord 's approval of the Working Drawings shall not be a representation or warranty of Landlord that such drawings are adequate for any use or comply with any law, but shall merely be the consent of Landlord thereto. Tenant shall, at Landlord's request, sign th e Working Drawings to evidence its review and approval thereof. It shall be a matter for Tenant to satisfy itself that the Work is in compliance with applicable laws. Landlord assumes no l iability for special, consequential, or incidental damages of any kind whatsoever in connection with the design or construction of the Work and the obtaining of permits, licenses and approvals, and  makes  no representati ons, warrant ies, or guaranties regarding the same, expressed or implied, including, with     limitation, warranties

		
			 
		

		

		

		 

		

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			of merchantability, compliance with applicable laws, fitness for a particular purpose, or habitability .  The general  contractor for the Work shall be responsible for obtain ing any perm its, licenses and governmental approvals required  for  the construction of th e Work. Tenant shall be responsible for obtaining any required cert ificate of occupancy and the non availability of the same for reasons related directly or indirectly to or arising from Tenant's use or proposed use or occupan cy of the In itial Premises shall  not delay Substantial Completion (defined below) or  the  Initial  Premises  Scheduled Commencement   Date.
		

		
			 
		

			
	
			
				 4.
			

			
	
			
			Bidd ing of Work . Prior to the commencement of the Work,  Landlord and Tenant shall mutually agree upon  a list of five (5) qualified general con tractors who shall be asked to competitively bid for the Work. Landlord and Tenant shall together select the lowest qualified bid of th e five (5) general contractors to perform the Work and Landlord shall enter into a contract  (the ··construction  Contract") with  the winning  general  contractor.

		
			 
		

			
	
			
				 5.
			Change Orders. Tenant may in itiate changes in the Work.  Each  such  change  must  receive  the  prior  written approval of Landlord, such approval not  to be  unreasonably  withheld  or delayed  and  Landlord's  response to be  delivered with in three (3) business days of receipt of such request and all backup information requested by Landlord;  however, (a) if such requested change would adversely affect (in the reasonable discretion of Landlord) (1) the Building's structure or the Building's systems (including the Building's restrooms or mechanical  rooms),  (2) the exterior  appearance of the Building, or (3) the appearance of the Building's common areas or elevator lobby areas, or (b) if any such requested change might delay the Initial Premises Scheduled Commencement Date, Landlord may withhold its consent in its sole and absolute discretion. Upon completion of the Work, Tenant shall provide Landlord with an accurate architectural "as-built" plan of the Work as constructed. If Tenant requests any changes to the Work described in the Space Plans or the Working Drawings, then such increased construction costs and any additional design costs incurred in connection therewith as the result of any such change shall be added to the Total Construction Costs.

		
			 
		

			
	
			
				 6.
			Walk-Throu2h :Punchlist. When the Work in the Initial Premises is Substantially Completed as provided herein, Landlord will notify Tenant and within two (2) business days thereafter, Landlord 's representative and Tenant's representative shall conduct a walk-through of the In itial Premises and identify any necessary touch-up work, repairs and minor completion items that are necessary for final completion of the Work. Neither Landlord's representative nor Tenant's represen tative shall unreasonably withhold h is or her agreement on punchlist items. Landlord shall use reasonable efforts to cause the contractor performing the Work to complete all punchlist items within thirty (30) days after agreement thereon; however, Landlord shall not be obl igated to engage overtime labor in order to complete such items. As used herein "Substantial Completion'', "Substant ially Completed", and any derivations thereof mean the Work in the Initial Premises is substantially compl eted such that Tenant may conduct its business in the Initia l Premises (as reasonably determined by Landlord) in substantial accordance with the Working Drawings. Substantial Completion shall have occurred if Tenant may occupy the Initial Premises for the purpose of conducting its business even though minor details of construction, decoration and mechanica l adjustments remain to be completed by Landlord

		
			 
		

		
			7.Excess Costs. The entire cost of performing the Work (excluding the cost of provision  of  util ities  during construction, but including design of the Work and preparation  of the Working Drawings, Landlord's costs in connection with its review and approval of Working Drawings, costs under the Construction Contract, costs of additional jan itorial services, general tenant signage, related taxes and insurance costs, and the construction management fee referenced below, all of which costs are herein collectively called the "Total Construction Costs") in excess of the  Tenant  Improvement  Allowance (hereinafter defined) shall be paid by Tenant. Upon approval of the Working  Drawings and selection of a contractor, Tenant shall promptly (a) execute a work order agreement prepared by Landlord which  identifies  the  Working  Drawings  and itemizes the Total Construction Costs and sets forth the Tenant Improvement Allowance, and pay to Landlord the full amount by wh ich the estimated Total Construction  Costs exceeds the Tenant Improvement Allowance.   Upon Substantial Completion of the Work, and before Tenant occupies the Initial Premises to conduct business  therein, Tenant shall pay to Landlord an amount equal to the actual Total Construction Costs (as adjusted  for any approved changes to the Work), less (I ) the amount of th e advance payment already made by Tenant, and (2) the amount of the Tenant Improvement Allowance. In the event of default of payment of such costs, Landlord (in addition to all other remedies) shall have the same rights as for an Event of Default under the Lease. Payments due by Tenant under this Exhibit B shall constitute rent payable under the Lease and any late payment of amounts due hereunder shall bear interest and be subjec t to a charge as set forth in Secti on 3.2 of the Lease.
		

		
			 
		

			
	
			
				 8.
			Tenant Improv ement Allowan ce. Landlord shall provide to Tenant a tenant improvement allowance of $33.22 per rentable square foot in the Initial Prem ises (namely, $ J ,949,681.80) (the "Tenant Improvement A   w  nee") to be applied

		
			 
		

		

		

		 

		

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			toward the Total Construction Costs, as adjusted for any changes to the Work.  Of such Tenant Improvement Allowance (a) up to $3.00 per rentable square foot thereof may be appl ied towards the cost of architectural services, (b) an amount equal to
		

		
			$12,500.00 thereof may, upon  submission  of appropriate  invoices to Landlord therefor, be applied  towards payment for
		

		
			services performed by the Architect for Tenant in cormection with another building, and (c) up to $5.00 per  rentable square foot thereof may be applied towards moving  costs, voice and data cabling costs and other soft costs.  Tenant shall purchase, for an amount equal to Landlord 's cost, the lights, tiles and grid that are stacked on the floor in the Initial Premises. The Tenant Improvement Allowance shall not be disbursed to Tenant in cash, but shall be applied by Landlord to the payment of the Total Construction Costs, if, as, and when the cost of the Work is actually incurred and  paid by Landlord. The Tenant Improvement Allowance must be used within twelve ( 12) months following Substantial Completion of the Work or shall be deemed forfeited with no further obligation by Landlord with respect thereto. At Tenant's election which must be exercised prior to the Commencement Date, the Tenant Improvement Allowance payable by Landlord for the Initial Premises, the First Must-Take Space and the Second Must-Take  Space may be increased by up to $5.00 per rentable square foot (not exceeding
		

		
			$440, 175.00) provided that such increased amount shall be amortized at nine percent (9%) per armum over a 132 month term and shall be repaid by Tenant as additional rent in equal month ly installments contemporaneously with payment of the Monthly Installment of Rent, with the first installment being due on the first day of the first full calendar month of the Term.
		

		
			 
		

			
	
			
				 9.
			

			
	
			
			Ten ant Generator. In addition to the Tenant Improvement Allowance, Landlord shall provide up to $65,000.00 towards the purchase and installation of a 1,000 KVA generator for Tenant's exclusive use. Such amount shall  be reimbursed to Tenant, within twenty (20) days followingproduction to Landlord of appropriate invoices therefor.

		
			 
		

		
			10.Construction Management. Tenant has nominated  and Landlord has approved  CB Richard  Ellis ("CBRE") to supervise the Work on behalf of Tenant. Landlord or its affiliate or agent shall also supervise the Work and in addition, shall make disbursements required to be made to the contractor; coordinate the work with the contractor on behalf of, and at the direction of, Landlord and coordinate the relationship between the Work, the Building and the Building's systems. The compensation for construct ion management services by Landlord shall be equal to one and one half percent (1.5%) of the Construction Contract amount and may be paid from the Tenant Improvement Allowance. Tenant shall also be permitted to charge the Tenant Improvement Allowance up to an additional five percent (5%) of the Construction Contract amount for construction management services provided by CBRE.
		

		
			 
		

		
			11.Construction Representatives. Except as otherwise notified by Landlord or Tenant as applicable, Lam.lion.l's and Tenant's representatives for coordination of construction and approval of change orders wil l be as follows, provided that either party may change its representative upon written notice to the other:
		

		
			 
		

		
			 
		

		
			Landlord's Representative:     Kim Boudreau
		

		
			RREEF Management  Company 5950 Sherry Lane, Suite 215
		

		
			Dallas, TX 75225 
		

		
			Telephone:   214/273-2305 
		

		
			Telecopy:   214/365-9323
		

		
			Email: kboudreau @rree(com
		

		
			 
		

		
			Tenant 's  Representative:     Anna Sullivan CB Richard Ellis
		

		
			5430 LBJ Freeway, Suite 1100
		

		
			Dallas, TX 75240 
		

		
			Telephone: 972/458-4827 
		

		
			Telecopy: 972/458-5277
		

		
			Email:anna .s11lIi van@chrc.com
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		

		

		 

		

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		EXHIBIT B-1 - FIRST MUST-TAKE SPACE ALTERATIONS
		

		
			attached to and made a part of Lease bearin g the Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase lI Limited Partnership, as Land lord and Conexis Benefits Admin istrators, L.P., as Tenant
		

		
			 
		

		
			1.Acceptance  of  First  M u st-Tak e Space Premis es.  Ex::ept as set forth in th is Exhibit, Tenant shall accept the First Must-Take Space in its "AS-IS'' condition as of the Lease Reference Date.
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			FMTS Space Plans.

		
			 
		

			
	
			
				 (a)
			Preparation and Del ivery . On or before the tenth (I 01h) business day following the date of request therefor by Landlord, (such earlier date is referred to herein as the "FMTS Space Plans Delivery Deadl ine"), Tenant shall del iver to Landlord a space plan prepared by the Architect depicting improvements to be installed in the First Must -Take Space (the "FMTS Space Plans").

		
			 
		

			
	
			
				 (b)
			A pproval Process. Landlord shall notify Tenant whether it approves of the submitted FMTS Space Plans with in three (3) busi ness days after Tenant's submission thereof. If Landlord disapproves of such FMTS Space Plans, then Landlord shall notify Tenant thereof specifying in reasonable detail the reasons for such disapproval, in which case Tenant shall, within three (3) business days after such notice, revise such FMTS Space Plans in accordance with Landlord 's objections and submit to Landlord for its review and approval. Landlord shall notify Tenant in writing whether it approves of the resubmitted FMTS Space Plans within two (2) business days after its receipt thereof. This process shall be repeated until the FMTS Space Plans have been finally approved by Landlord and Tenant. If Tenant fails to timely deliver such FMTS Space Plans, then each day after the FMTS Space Plans Delivery Deadline that such FMTS Space Plans are not delivered to Landlord shall be a Tenant Delay day.

		
			 
		

			
	
			
				 3.
			

			
	
			
			FMTS Working Drawings .

		
			 
		

			
	
			
				 (a)
			Preparation and Delivery. On or before the tenth {l 01h) day following approval of the FMTS Space Plans, (such earlier date is referred to herein as the "FMTS Working Drawings Delivery Deadline"), Tenant shall provide to Landlord for its approval final working drawings, prepared by the Architect, and, as appl i cable Purdy McGuire or any other mechanical and electrical engineer reasonably required by Landlord (in connection with the MEP drawings), of all improvements that Tenant proposes to install in the First Must-Take Space; such working drawings shall include the partition layout, ceiling plan, electrical outlets and switches, telephone outlets, drawings for any modifications to the mechanical and plumbing systems of the Building, and detailed plans and specificat ions for the construction of the improvements called for under this Exhibit in accordance with all applicable laws. IfTenant fails to timely deliver such drawings, then each day after the FMTS Working Drawings Delivery Deadline that such drawings are not delivered to Landlord shall be a Tenant Delay day.

		
			 
		

			
	
			
				 (b)
			Approval Process. Landlord shall notify Tenant whether it approves of the submitted working drawings with in five (5) business days after Tenant's submission thereof. If Landlord disapproves of such working drawings, then Landlord shall notify Tenant thereof specifying in reasonable detail the reasons for such disapproval, in which case Tenant shall, within three (3) business days after such notice, revise such working drawings in accordance with Landlord's objections and submit the revised working drawings to Landlord for its review an d approval. Landlord shall notify Tenant in writing whether it approves of the resubmitted working drawings within three (3) business days after its receipt thereof. This process shall be repeated until the working drawings have been finally approved by Tenant and Landlord. Ifthe working drawings are not fully approved (or deemed approved) by both Landlord and Tenant by the fifteenth (15th) business day after the delivery of the initial draft thereof to Landlord, then each day after such time period that such working drawings are not fully approved (or deemed approved) by both Landlord and Tenant shall constitute a Tenant Delay day.

		
			 
		

			
	
			
				 (c)
			Land lord's Approval; Performance of FMTS Work.  Ifany of Tenant's  proposed  construction  work  will affect the Buildin g's structure or the Building's systems, then the working drawings pertaining thereto must  be approved by the Building's engineer of record. Landlord's approval of such working  drawings  shall  not  be  unreasonably  withheld, provided that ( I) they comply with all laws, (2) the improvements depicted thereon do not adversely affect (in the reasonable discretion  of Landlord) the  Building's structure or the Building's  systems (including  the Building's resti-    ms or mechanical

		

		

		 

		

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			rooms), the exterior appearance of the Building, or the appearance of the Building's common areas or elevator lobby areas, (3) such working drawings are sufficiently detailed to allow construction of the improvements in a good and workmanlike manner, and (4) the improvements depicted thereon conform to the rules and regulations promulgated from time to time by Landlord for the construction of tenant improvements (a copy of wh ich has been delivered to Tenant). As used herein, "FMTS Working Drawings" shall mean the fuial working drawings approved by Landlord, as amended from time to time by any approved changes thereto, and "FMTS Work" shall mean all improvements to be constructed in accordance with and as ind icated on the FMTS Working Drawings, together with any work required by governmental authorit ies to be made to other areas of the Building as a result of the improvements indicated by the FMTS Working Drawings.  Landlord's approva l of the FMTS Working Drawings shall not be a representation or warranty of Landlord that such drawings are adequate for any use or comply with any law, but shall merely be the consent of Landlord thereto. Tenant shall, at Landlord's request, sign the FMTS Working Drawings to evidence its review and approval thereof. It shall be a matter for Tenant to satisfy itself that the FMTS Work is in compliance with applicable laws. Landlord assumes no liabi lity for specia l, consequential , or inciden tal damages of any kind whatsoever in connection with the design or construction of the FMTS Work and the obtaining of permits, licenses and approvals, and makes no representations , warranties, or guaranties regarding the same, expressed or impl ied, including, without limitation, warranties of merchantability, compliance with applicable laws, fitness for a particular purpose, or habitability. The general contractor for the FMTS Work shall be responsible for obtaining any permits, licenses and governmenta l approvals required for the construction of the FMTS Work. Tenant shall be responsible for obtaining any required certifica te of occupancy and the non avai lability of the same for reasons related directly or indirectly to or arising from Tenant 's use or proposed use or occupancy of the First M ust-Take Space shall not delay Substantia l Completion (defined below) or the First Must-Take Space Scheduled Commencement Date.
		

		
			 
		

			
	
			
				 4.
			

			
	
			
			Bidding of FMTS Work . The provisions of Paragraph 4  in Exhibit B shall apply hereto with respect to the biding of the FMTS Work. Reference therein to Construction Contract shall herein mean the "FMTS Construction Contract".

		
			 
		

			
	
			
				 5.
			Change Orders. Tenant may initiate changes in the FMTS Work. Each such change must receive the prior written approval of Landlord, such approval not to be unreasonably withheld or delayed and Landlord's response to be delivered within three (3) business days of receipt of such request and all backup information requested by Landlord; however, (a) if such requested change would adversely affect (in the reasonable discretion of Landlord) (1) the Building's structure or the Building's systems (including the Building's restrooms or mechanical rooms), (2) the exterior appearance of the Building, or

		
			(3) the appearance of the Building's common areas or elevator lobby areas, or (b) if any such requested change might delay the First Must-Take Space Scheduled Commencement Date, Landlord may withhold its consent in its sole and absolute discretion. Upon completion of the FMTS Work, Tenant shall provide Landlord with an accurate architectural "as-built" plan of the FMTS Work as constructed. IfTenant requests any changes to the FMTS Work described in the FMTS Space Plans or the FMTS Working Drawings, then such increased construction costs and any additional design costs incurred in connection therewith as the result of any such change shall be added to the Total FMTS Construction Costs.
		

		
			 
		

			
	
			
				 6.
			

			
	
			
			Walk-Through; Punchlist. When the FMTS Work in the First Must-Take Space is Substantially Completed as provided herein, Landlord will notify Tenant and within two (2) business days thereafter, Landlord's representative and Tenant's representative shall conduct a walk-through of the First Must-Take Space and identify any necessary touch-up work, repairs and minor  completion items that are necessary for final completion of the FMTS Work. Neither Landlord 's representative nor Tenan t's representative shall unreasona bly withhold his or her agreement on punchlist items. Landlord shall use reasonable efforts to cause the contractor performing the FMTS Work to complete all punchlist items within thirty

		
			(30) days after agreement thereon; however, Landlord shall not be obligated to engage overtim e labor in order to complete such items. As used herein "Substantia l Completion", "Substantially Completed", and any deri vations thereof mean the FMTS Work in the First Must-Take Space is substantially completed such that Tenant may conduct its business in the First Must-Take Space (as reasonably determined by Landlord) in substantia l accordance with the FMTS Working Drawings. Substantial Completion shall have occurred if Tenant may occupy the First Must-Take Space for the purpose of conducting its business even though minor details of construction, decoration and mechanical adjustments remain to be completed by Landlord.
		

		
			 
		

			
	
			
				 7.
			

			
	
			
			Excess Costs. The entire cost of performing the FMTS Work (excluding the cost of provision of utilities during construction, but including design of the FMTS Work and preparat ion of the FMTS Working Drawings, Landlord's costs in connection with its review and approval of FMTS Working Drawings, costs under the FMTS Construction Contract, costs of additional janitorial services, general tenant signage, related taxes and insurance costs, and the construction management fee referenced below , all of which costs are herein collectively called the "Tota l FMTS Construction C s .0in excess of the

		

		

		 

		

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			FMTS Tenant Improvement Allowance (hereinafter defined) shall be paid by Tenant. Upon approval of the FMTS Working Drawings and selection of a contractor, Tenant shall promptly (a) execute a work order agreement prepared by Landlord which identifies the FMTS Working Drawings and itemizes the Total FMTS Construction Costs and sets forth the FMTS Tenant Improvement Allowance, and pay to Landlord the full amount by which the estimated Total FMTS Construction Costs exceeds the FMTS Tenant Improvement Allowance. Upon Substantial Completion of the FMTS Work, and before Tenant occupies the First Must-Take Space to conduct business therein, Tenant shall pay to Landlord an amount equal to the actual Total FMTS Construction Costs (as adjusted for any approved changes to the Work), less (I ) the amount of the advance payment already made by Tenant, and (2) the amount of the FMTS Tenant Improvement Allowance. In the event of default of payment of such costs, Landlord (in addition to all other remedies) shall have the same rights as for an Event of Default under the Lease. Payments due by Tenant under this Exh ibit B-1 shall constitute rent payable under the Lease and any late payment of amounts due hereunder shall bear interest an d be subject to a charge as set forth in Section 3.2 of the Lease.
		

		
			 
		

			
	
			
				 8.
			

			
	
			
			FMTS  Tenant   Improvem ent  Allowance.   Landlord  shall  provide  to Tenant  a  tenant  improvement  allowance of

		
			$33.00 per rentable square foot in the First Must-Take Space (namely, $444,708.00) (the "FMTS Tenant Improvement Allowance") to be applied toward the Total FMTS Construction Costs, as adjusted for any changes to the FMTS Work. Of such FMTS Tenant Improvement Allowance (a) up to $3.00 per rentable square foot thereof may be appl ied towards the cost of architectural services, and (b) up to $5.00 per rentable square foot thereof may be applied towards moving costs, voice and data cabling costs and other soft costs. Tenant shall purchase, for an amount equal to Landlord 's cost, the lights, tiles and grid that are stacked on the floor in the First Must-Take Space. The FMTS Tenant Improvement Allowance shall not be disbursed to Tenant in cash, but shall be applied by Landlord to the payment of the Total FMTS Construction Costs, if, as, and when the cost of the FMTS Work is actually incurred and paid by Lan dlord. The FMTS Tenant Improvement Allowance must be used within twelve (12) months following Substantial Completion of the FMTS Work or shall be deemed forfeited with no further obligation by Landlord with respect thereto.
		

		
			 
		

		
			9.Construction Management. Un less otherwise mutually agreed upon by Landlord and Tenant, CBRE shall supervise the FMTS Work on behalf of Tenant. Landl ord or its affil iate or agent shall also supervise the FMTS Work and in addition, shall make disbursements required to be made to the contractor, coordinate the work with the contractor on behalf of, and at the direction of, Landlord and coordinate the relationship between the FMTS Work, the Building and the Building's systems. The compensation for construction management services by Landlord shall be equal to one and one half percent (1.5%) of the FMTS Construction Contract amount and may be paid from the FMTS Tenant Improvement Allowance. Tenant shall also be permitted to charge the FMTS Tenant Improvement Allowance up to an additional five percent (5%) of the FMTS Construct ion Contract amount for construction management services provided by CBRE.
		

		
			 
		

		
			10.Construction  Representatives.  The provisions of Paragraph  11 in Exhibi t B shall apply herein.
		

		
			 
		

		
			 
		

		
			 
		

		
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		EXHIBIT B-2 - SECOND MUST-TAKE SPACE ALTERATIONS
		

		
			attached to and mad e a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase IILimited  Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators, L.P., as Tenant
		

		
			 
		

		
			l .Acceptance  of  Second  Mu st-Take  Space  Premises.   Except as set forth  in this Exhibit, Tenant  shall accept  the Second Must-Take Space in its "AS-IS" condition as of the Lease Reference Date.
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			SMTS Sp ace Plans.

		
			 
		

			
	
			
				 (a)
			Preparation and Delivery. On or before  the tenth ( IO'h) business day following the date of request therefor by landlord, (such earlier date is referred to herein as the "SMTS Space Plans Delivery Deadline"), Tenant shall deliver to Landlord a space plan prepared by the Architect depict ing improvements to be installed in the Second Must -Take Space (the "SMTS Space Plans").

		
			 
		

			
	
			
				 (b)
			Approval Process. Landlord shall notify Tenant whether it approves of the submitted SMTS Space Plans wit hin three (3) business days after Tenant's submission thereof. If Landlord disapproves of such SMTS Space Plans, then Landlord shall notify Tenant thereof specifying in reasonable detail the reasons for such disapproval, in which case Tenant shall, within three (3) business days after such notice, revise such SMTS Space Plans in accordance with Landlord's objections and submit to Landlord for its review and approval. Landlord shall notify Tenant in writing whether it approves of the resubmitted SMTS Space Plans with in two (2) business days after its receipt thereof This process shall be repeated until the SMTS Space Plans have been finally approved by Landlord and Tenant. If Landlord fails to notify Tenant that it disapproves of the initial SMTS Space Plans within three (3) husiness days (or, in the case ofresubmitted SMTS Space Plans, within two (2) business days) after the submission thereof, then Landlord shall be deemed to have approved the SMTS Space Plans in question. If Tenant fails to timely deliver such SMTS Space Plans, then each day after the SMTS Space Plans Del ivery Dead l ine that such SMTS Space Pl ans are not delivered to Landlord shall be a Tenant Delay day.

		
			 
		

			
	
			
				 3.
			

			
	
			
			SMTS Wor k in g Dr a wings.

		
			 
		

			
	
			
				 (a)
			Preparation and Deliver y. On or before the tenth (I O'h) day following approval of tbe SMTS Space Plans, (such earlier date is referred to herein as the "SMTS Working Drawings Delivery Deadline"), Tenant shall provide to Landlord for its approval final working drawings, prepared by the Architect, and, as applicable Purdy McGuire or any other mechanical and electrical engineer reasonably required by Landlord (in connection with the MEP drawings), of all improvements that Tenant proposes to install in the Second Must-Take Space; such working drawings shall include the part ition layout, ceiling plan, electrical outlets and switches, telephone outlets, drawings for any modifications to the mechanical and plumbing systems of the Building, and detailed plans and specifications for the construction of the improvements called for under this Exhibit in accordance with all applicable laws. If Tenant fails to timely deliver such drawings, then each day after the SMTS Working Drawings Delivery Deadline that such drawings are not delivered to Landlord shall be a Tenant Delay day.

		
			 
		

			
	
			
				 (b)
			Approval Process. Landlord shall notify Tenant whether it approves of the submitted  working  drawings within five (5) business days after Tenant's submission thereof. If Landlord disapproves of such  working  drawings,  then Landlord shall notify Tenant thereof specifying in reasonable detail the reasons for such disapproval, in wh ich case Tenant shall, with in three (3) business days after such notice, revise such working drawings in accordance with Landlord's objections and submit the revised working drawings to Landlord for its review and approval. Landlord shall notify Tenant in writing whether it approves of the resubmitted working drawings within three (3) business days after its receipt thereof. This process shall  be repeated  until  the working  drawings have been  finally approved by Tenant and Landlord.  If the working  drawings are not fully approved  (or  deemed  approved) by  both  Landlord  and  Tenant  by  the  fifteenth  (15th)  business day after the del ivery of the ini tial draft thereof to Landlord, then each day after such time period that such working drawings are not fully approved (or deemed approved) by both  Landlord and Tenant shall constitute a Tenant Delay day.

		
			 
		

			
	
			
				 (c)
			Landlord 's Approval; Performance of SMTS Work . Ifany of Tenant's proposed construction work will affect the Building's structure or the Building's systems, then the work ing drawings pertain ing ther    must be approved by the Buil ding's engineer of record.   Landlord's approval  of such  working  drawings  shall not  beonably withheld,

		
			 
		

			
	
			
				 (d)

		

		 

		

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			provided that (I) they comply with all laws, (2) the improvements depicted thereon do not adversely affect (in the reasonable discretion of Landlord) the Build ing's structure or the Building's systems (including the Building's restrooms or mechanical rooms), the exterior appearance of the Building, or the appearance of the Building's common areas or elevator lobby areas,
		

		
			(3) such working drawin gs are sufficiently detailed to allow construction of the improvements in a good and workmanlike manner, and (4) the improvements depicted thereon conform to the rules and regulations promulgated from time to time by Landlord for the construction of tenant  improvements (a copy of which has been delivered to Tenant).  As used herein,
		

		
			..SMTS Working Drawings" shall mean the furnl working drawings approved by Landlord , as amended from time to time by any approved changes thereto, and ''SMTS Work'' shall mean all improvements to be constructed in accordance with and as indicated on the SMTS Working Drawings, together with any work required by governmental authorities to be made to other areas of the Building as a result of the improvements indicated by the SMTS Working Drawings. Landlord's approval of the SMTS Working Drawings shall not be a representation or warranty of Landlord that such drawings are adequate for any use or comply with any law, but shall merely be the consent of Landlord thereto. Tenant shall, at Landlord's request, sign the SMTS Working Drawings to evidence its review and approval thereof. It shall be a matter for Tenant to satisfy itself that the SMTS Work is in compliance with applicable Jaws. Landlord assumes no liability for special, consequentia l, or incidental damages of any kind whatsoever in connection with the design or construction of the SMTS Work and the obtaining of permits, licenses and approvals, and makes no representations, warranties, or guaranties regarding the same, expressed or implied, including, without limitation, warranties of merchantabil ity, compliance with applicable laws, fitness for a particular purpose, or habitabil ity. The general contractor for the SMTS Work shall be respon sible for obtaining any permits, licenses and governmental approvals required for the construction of the SMTS Work. Tenant shall be responsible for obtaining any required certificate of occupancy and the non availability of the same for reasons related directly or indirectly to or arising from Tenant 's use or proposed use or occupancy of the Second Must-Take Space shall not delay Substantial Completion (defined below) or the Second Must-Take Space Scheduled Commencement Date.
		

		
			 
		

			
	
			
				 4.
			

			
	
			
			Bidding of SMTS Work. The provisions of Paragraph 4  in Exhibit B shall apply hereto with respect to the biding of the SMTS Work. Reference therein to Construction Contract shall herein mean the "SMTS Construction Contract".

		
			 
		

			
	
			
				 5.
			Change Orders. Tenant may in itiate changes in the SMTS Work. Each such change must receive the prior written approval of Landlord, such approval not to be unreasonably withheld or delayed an d Landlord's response to be delivered with in three (3) business days of receipt of such request and all backup information requested by Landlord; however, (a) if such requested change would adversely affect (in the reasonable discretion of Landlord) (!) the Building's structure or the Building's systems (including the Building's restrooms or mechanical rooms), (2) the exterior appearance of the Building, or

		
			(3) the appearance of the Building's common areas or elevator lobby areas, or (b) if any such requested change might delay the Second Must-Take Space Scheduled Commencement Date, Landlord may withhold its consent in its sole and absolute discretion. Upon completion of the SMTS Work, Tenant shall provide Landlord with an accurate architectural "as-built" plan of the SMTS Work as constructed. IfTenant requests any changes to the SMTS Work described in the SMTS Space Plans or the SMTS Working Drawings, then such increased construction costs and any additional design costs incurred in connection therewith as the result of any such change shall be added to the Total SMTS Construct ion Costs.
		

		
			 
		

		
			6. Walk-Through; Punchlist. When the SMTS Work in the Second Must-Take Space is Substantially Completed as provided herein, Landlord  will notify Tenant and within two (2) business days thereafter, Landlord's representative and Tenant's representative shall conduct a walk-through of the Second Must-Take Space and identify any necessary touch-up work, repairs and minor completion items that are necessary for final comp letion of the SMTS Work. Neither Landlord's representative nor Tenant's representative shall unreasonably withhold his or her agreement on punch list items. Landlord shall use reasonable efforts to cause the contractor perforn1ing the SMTS Work to complete all punchlist items wi thin thirty
		

		
			(30) days after agreement thereon; however, Landlord shall not be obligated to engage overtime labor in order to complete such items. As used herein "Substantial Completion'', "Substantiall y Completed", and any derivations thereof mean the SMTS Work in the Second Must-Take Space is substantially completed such that Tenant may conduct its business in the Second Must-Take Space (as reasonably determined by Landlord ) in substantial accordance with the SMTS Working Drawings. Substantial Completion shall have occurred if Tenant may occupy the Second Must-Take Space for the purpose of conducting its business even though minor details of construction, decoration and mechanical adjustments remain to be completed by Landlord.
		

		
			 
		

		
			7.Excess Costs. The entire cost of perform ing the SMTS Work (exclud ing t11e cost of provision of utilities during construction, but including design of the SMTS Work and preparation of the SMTS Working Drawings, Land lord's costs in connection with its review and approval of SMTS Working Drawings, costs under the SMTS Constrntract, costs of
		

		
			 
		

		
			 
		

		

		

		 

		

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			additional jan itorial services, general tenant signage, related taxes and insurance costs, and the construction management fee referenced below, al l of which costs are herein collectively called the "Total SMTS Construction Costs") in excess of the SMTS Tenant Improvement Allowance (hereinafter defined) shall be paid by Tenant. Upon approval of the SMTS Working Drawings and selection of a contractor, Tenant shall promptl y (a) execute a work order agreement prepared by Landlord which identifies the SMTS Working Drawings and itemizes the Total SMTS Construction Costs and sets forth the SMTS Tenant Improvement Allowance, and pay to Landlord the full amount by which the estimated Total SMTS Construction Costs exceeds the SMTS Tenant Improvement Allowance. Upon Substantial Completion of the SMTS Work, and before Tenant occupies the Second Must-Take Space to conduct business therein , Tenant shall pay to Landlord an amount equal to the actual Total SMTS Construction Costs (as adjusted for any approved changes to the Work), less ( I ) the amount of the advance payment already made by Tenant, and (2) the amount of th e SMTS Tenant Improvement Allowance. In the event of default of paymen t of such costs, Landlord (in addition to all other remedies) shall have the same rights as for an Event of Default under the Lease. Payments due by Tenant under this Exhibit B-2 shall constitute rent payable under the Lease and any late payment of amounts due hereunder shall bear interest and be subject to a charge as set forth in Section 3.2 of the Lease.
		

		
			 
		

			
	
			
				 8.
			SMTS Tenant Improvement Allowance. Landlord shall provide to Tenant a tenant improvement allowance of

		
			$ 19.80 per rentable square foot in the Second Must-Take Space (namely, $314,206.20) (the "SMTS Tenant Improvement Allowance") to be applied toward the Total SMTS Construction Costs, as adjusted for any changes to the SMTS Work. Of such SMTS Tenant Improvement Allowance (a) up to $3.00 per rentable square foot thereof may be applied towards the cost of architectural services, and (b) up to $5.00 per rentable square foot thereof may be applied towards moving costs, voice and data cabling costs and other soft costs. The SMTS Tenant Improvement Allowance shall not be disbursed to Tenant in cash, but shall be appl ied by Landlord to the payment of the Total SMTS Construction Costs, if, as, and when the cost of the SMTS Work is actually incurred and paid by Landlord.  The SMTS Tenant Improvement Allowance must be used within twelve
		

		
			(12) months following Substantial Completion of the SMTS Work or shall be deemed forfeited with no further obligation by Landlord with respect thereto.
		

		
			 
		

			
	
			
				 9.
			Construction Management. Unless otherwise mutually agreed upon by Landlord and Tenant,  CBRE  shall supervise the SMTS Work on behalf of Tenant. Landlord or its affiliate or agent shall also supervise the SMTS Work and in addition, shall make disbursements required to be made to the contractor, coordinate the work with the contractor on behalf of, and at the direction of, Landlord and coon..lim1tt: the relatiouship between the SMTS Work, the Building and the Building's systems.  The compensation for construction management services by Landlord shall be equal to one and one half percent ( 1.5%) of the SMTS Construction Contract amount and may be paid from the SMTS Tenant Improvement Allowance. Tenant shall also be permitted to charge the SMTS Tenant Improvement Allowance up to an additional five percent (5%) of the SMTS Construction Contract amoun t for construction management services provided by CBRE.

		
			 
		

			
	
			
				 10.
			Construction  Representatives . The provi sions of Paragraph 1 J  in Exhibit B shall apply herein.

		
			 
		

		
			 
		

		
			 
		

		
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		EXHIBIT C -COMMENCEMENT DATE MEMORANDUM
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase IT Limited Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators , L.P., as Tenant
		

		
			 
		

		
			COMMENCEMENT  DATE  MEMORANDUM
		

		
			 
		

		
			
		

		
			 
		

		
			 
		

		

		

		 

		

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		EXHIBIT D -RULES AND REGULATIONS
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2 , 2004 between
		

		
			Corporate Center Phase II Limited Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators, L.P., as Tenant
		

		
			 
		

		
			1.No sign, placard, picture, advertisement, name or notice shall be installed or displayed on any part of the outside or inside of the Building without the prior written consent of the Landlord. Landlord shall have the right to remove, at Tenant's expense and without notice, any sign installed or displayed in violation of th is rule. All approved signs or lettering on doors and wal ls shall be printed, painted, affixed or inscribed at Tenant's expense by a vendor designated or approved by Landlord. In addition, Landlord reserves the right to change from time to time the format of the signs or lettering and to require previously approved signs or lettering to be appropriately altered.
		

		
			 
		

		
			2.If Landlord objects in writ ing to any curtains, blinds, shades or screens attached to or hung in or used in connection with any window or door of the Premises, Tenanc shall immediately discontinue such use. No awning shall be permitted on any part of the Prem ises. Tenan t shall not place anything or allow anything to be placed  against or near any glass partit ions or doors or windows which may appear unsightly, in the opinion of Landlord, from outside the Premises.
		

		
			 
		

		
			3.Tenant shall not obstruct any sidewalks, halls, passages, exits, entrances, elevators, or stairways of the Building. No tenant and no employee or invitee of any tenant shall go upon the roofof the Building.
		

		
			 
		

			
	
			
				 4.
			

			
	
			
			Any directory of the Building, if provided, will be exclusively for the display of the name and location of tenants on ly and Landlord reserves the right to exclude any other names. Landlord reserves the right to charge for Tenant's directory listing.

		
			 
		

			
	
			
				 5.
			

			
	
			
			All cleaning and jan itorial services for the Building and the Premises shall be provided exclusively through Landlord. Tenant shall not cause any unnecessary labor by carelessness or indifference to the good order and cleanliness of the Premises. Landlord shall not in any way be responsible to any Tenant for any loss of property on the Premises, however occurring, or for any damage to any Tenant 's property by the janitor or any other employee or any other person.

		
			 
		

			
	
			
				 6.
			The toilet rooms, toilets, urina ls, wash bowls and other apparatus shall not be used for any purpose other than that for which they were constructed. No foreign substance of any kind whatsoeve r shall be thrown into any of them, and the expense of any breakage, stoppage or damage result ing from the violation of this rule shall be borne by the Tenant who, or whose employees or invitees, shall have caused it.

		
			 
		

		
			7.Tenant shall store all its trash and garbage within its Premises. Tenant shall not place in any trash box or receptacle any material which cannot be disposed of in the ordinary and customary manner of trash and garbage disposal.  All garbage and refuse disposal shall be made in accordance with directions issued from time to time by Landlord. Tenant will comply with any and all recyclin g procedures designated by Landlord.
		

		
			 
		

			
	
			
				 8.
			

			
	
			
			Landlord will furnish Tenant two (2) keys free of charge to each door in the Premises that has a passage way Jock. Landlord may charge Tenant a reasonable amount for any addit ional keys, and Tenant shall  not  make  or  have  made additional keys on its own. Tenant shall not alter any lock or install a new or additional Jock or bolt on any door of its Premises. Tenant, upon the termination of its tenancy, shall deliver to Landlord the keys of all doors which have  been furnished to Tenant, and in the event of loss of any keys so furnished, shall pay Landlord therefor.

		
			 
		

			
	
			
				 9.
			If Tenant requires telephone, data, burglar alarm or similar service, the cost of purchasing, installing and maintaining such service shall be borne solely by Tenant. No boring or cutting for wires will be allowed without the prior written consent of Landlord.

		
			 
		

			
	
			
				 10.
			No equipment, materials, furniture, packages, bulk supplies, merchandise or other property  will be recei ved in the Building or carried in the elevators except between such hours and in such elevators as may be designated by Landlord. The persons employed to move such equipment or material s in or out of the Building must be acceptable to Landlord.

		

		

		 

		

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				 11.
			Tenant shall not place a load upon any floor which exceeds the load per square foot which such floor was designed to carry and which is allowed by law. Heavy objects shall stand on such platforms as determined by Landlord to be necessary to properly distribute the weight. Business machines and mechanical equipment belonging to Tenant which cause noise or vibration that may be transmitted to the structure of the Building or to any space in the Building to such a degree as to be objectionable to Landlord or to any tenants shall be placed an d maintained by Tenant, at Tenant 's expense, on vibration eliminators or other devices sufficient to eliminate the noise or vibration. Landlord will not be responsible for loss of or damage to any such equipment or other property from any cause, and all damage done to the Building by maintaining or moving such equipment or other property shall be repaired at the expense of Tenant.

		
			 
		

			
	
			
				 12.
			Except in the event of emergency or casualty, Tenant shall be entitled to 24 hour/day, 7 days/week access to the Building. Notwithstanding the foregoing, Landlord shall in all cases retain the right to control and prevent access to the Building of all persons whose presence in the judgment of Landlord would be prejudicial to the safety, character, reputation or interests of the Building and its tenants, provided that nothing contained in this rule shall be construed to prevent such access to persons with whom any tenant normally deals in the ordinary course of its business, unless such persons are engaged in illegal activities. Landlord reserves the right to exclude from the Building between the hours of 6 p.m. and 7 a.m. the following day, or such other hours as may be established from time to time by Landlord, and on Sundays and legal holidays, any person unless that person is known to the person or employee in charge of the Building and has a pass or is properly identified. Tenant shall be responsible for all person s for whom it requests passes and shall be liable to Landlord for all acts of such persons. Landlord shall n ot be liable for damages for any error with regard to the admission to or exclusion from the Building of any person.

		
			 
		

			
	
			
				 13.
			Tenant shall not use any method of heating or air conditioning other than that supplied or approved in writing by Landlord.

		
			 
		

			
	
			
				 14.
			Tenant shall not waste electricity, water or air conditioning. Tenant shall keep corridor doors closed. Tenant shall close and lock the doors of its Premises and entirely shut off all water faucets or other water apparatus and electricity, gas or air outlets before Tenant and its employees leave the Premises. Tenant shall be responsible for any damage or injur ies susta ined by other tenants or occupants of the Building or by Landlord for noncompliance with th is rule.

		
			 
		

			
	
			
				 15.
			Except as permitted in Article 43, Tenant shall not  install any radio or television  antenna, satellite dish, loudspeaker or other device on the roof or exterior wa lls of the Building without Landlord's prior written consent, wh ich consent may be withheld in Landlord 's sole discretion, and which consent may in any event be conditioned upon Tenant's execution  of Landlord's standard  form of license agreement.  Tenant shall be responsible  for any interference caused by such installation.

		
			 
		

			
	
			
				 16.
			Tenant shall not mark, drive nails, screw or drill into the partitions, woodwork, plaster, or drywall (except for pictures, tackboard s and similar office uses) or in any way deface the Premises. Tenant shall not cut or bore holes for wires. Tenant shall not affix any floor covering to the floor of the Premises in any manner except as approved by Landlord. Tenant shall repair any damage resulting from noncompliance with thi s rule.

		
			 
		

			
	
			
				 17.
			Tenan t shall not install, maintain or operate upon the Premises any ven ding  machine  without  Landlord's  prior written consent, except that Tenant may instalr food and drink vending mach ines solely for the convenien ce of its employees.

		
			 
		

			
	
			
				 18.
			No cooking shall be done or permitted by any tenant on the Premises, except  that  Un derwriters'  Laboratory approved microwave ovens or equipment for brewing coffee, tea, h ot chocolate and sim ilar beverages shall be permitted provided that such equipment and use is in accordance with all applicable federal, state and city laws, codes, ordinances, rules and  regulations.

		
			 
		

			
	
			
				 19.
			Tenant shall not use in any space or in the publi c halls of the Building any hand trucks except those equipped with the rubber tires and side guards or such other material-handling equipm ent as Landlord may approve. Tenant shall not bring any other veh icles of any kind into the Buildin g.

		
			 
		

			
	
			
				 20.
			

			
	
			
			Tenant shall not pem1it any motor vehicles to be washed or mechanica l work or maintenance of motor veh icles to be performed in any parking lot.

		
			 
		

		
			 
		

		

		

		 

		

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				 21.
			

			
	
			
			Tenant shall not use the name of the Building or any photograph or likeness of the Building in connection with or in promoting or advertising Tenant's business, except that Tenant may include the Building name  in  Tenant's  address. Landlord shall have the right, exercisable without notice and without liability to any tenant, to change the name and address of the Building.

		
			 
		

			
	
			
				 22.
			

			
	
			
			Tenant requests for services must be submitted to the Building office by an authorized individual. Employees of Landlord shall not perform any work or do anything outside of their regular duties un less under special instruction from Landlord, and no employee of  Landlord will admit any person (Tenant or otherwise) to any office without specific instructions from Landlord.

		
			 
		

			
	
			
				 23.
			

			
	
			
			Tenant shall not permit smoking or carrying of lighted cigarettes or cigars other  than  m  areas  designated  by Landlord as smoking areas.

		
			 
		

			
	
			
				 24.
			Canvassing, soliciting, distribution of handbills or any other written material in the Building is prohibited and each tenant shall cooperate to prevent the same. No tenant shall solicit business from other tenants or permit the sale of any good or merchandise in the Building without the written consent of Landlord.

		
			 
		

			
	
			
				 25.
			Tenant shall not permit any animals other than service animals, e.g. seeing-eye dogs, to be brought or kept in or about the Premises or any common area of the Building.

		
			 
		

			
	
			
				 26.
			These Rules and Regulations are in addition to, and shall not be construed to in any way modify or amend, in whole or in part, the terms, covenants, agreements and conditions of any lease of any premises in the Building. Landlord may waive any one or more of these Rules and Regulations for the benefit of any particular tenant or tenants, but no such waiver by Landlord shall be construed as a waiver of such Rules and Regulations in favor of any other tenant or tenants, nor prevent Landlord from thereafter enforcing any such Rules and Regulations against any or all of the tenants of the Building.

		
			 
		

			
	
			
				 27.
			

			
	
			
			Landlord reserves the right to make such other and reasonable rules and regulations as in its judgment may from time to time be needed for safety and security, for care and cleanliness of the Building, and for the preservation of good order in and about the Building. Tenant agrees to abide by all such rules and regulations herein stated and any additional rules and regulations which are adopted. Tenant shall be responsible for the observance of all of the foregoing rules by Tenant's employees, agents, clients, customers, invitees and guests.

		
			 
		

		
			 
		

		
			 
		

		
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		EXHIBIT E - FORM OF CONTINUING GUARANTY
		

		
			attached to and made a part of Lease bearing the 
		

		
			Lease Reference Date of August 2, 2004 between
		

		
			Corporate Center Phase II Limited  Partnership, as Landlord and 
		

		
			Conexis Benefits Administrators, L.P., as Tenant
		

		
			 
		

		
			Whereas, CONEXIS BENEFITS ADMINISTRATORS, L.P., a Texas limited partnership ("Tenant") is (a) engaged in business as a corporate affiliate of the undersigned, or (b) engaged in selling, marketing, using or otherwise dealing in merchandise, supplies, products, equipment or other articles supplied to it by the undersigned, or (c) a wholly owned subsidiary of the undersigned. Because of our inter corporate or business relations, or by reason of any of the foregoing, it will be in our direct interest and advantage to assist Tenant in securing a lease.  Therefore, in consideration of the making of the lease agreement by and between CORPORATE CENTER PHASE II LIMITED PARTNERSHIP, as Landlord  and Tenant, for the premises commonly described as 6191 N. State Highway 161, Suites 300 and 400, Irving, Texas 75038 (hereinafter referred to as the "Lease") and for the purpose of inducing Landlord to enter into and make the Lease, the undersigned hereby unconditionally guarantees the full and prompt payment of rent and all other sums required to be paid by Tenant under the Lease ("Guaranteed Payments") and the full and faithful performance of all terms, conditions, covenants, obligations and agreements contained in the Lease on the Tenant's part to be performed ("Guaranteed Obligations") and the undersigned further promises to pay all of Landlord's costs and expenses (including reasonable attorney's fees) incurred in endeavoring to collect the Guaranteed  Payments or to enforce the Guaranteed Obligations or incurred in enforcing this guaranty as well as all damages which Landlord may suffer in consequence of any default or breach under the Lease or this guaranty.
		

		
			 
		

			
	
			
				 1.
			

			
	
			
			Landlord may at any time and from time to time, without notice to the undersigned, take any or all of the following actions without affecting or impairing the liability and obligations of the undersigned on this guaranty:

		
			 
		

			
	
			
				 a.
			

			
	
			
			grant an extension or extensions of time of payment of any Guaranteed Payment or time for performance of any Guaranteed Obligation;

		
			 
		

			
	
			
				 b.
			

			
	
			
			grant an indulgence or indulgences in  any Guaranteed Payment or 111  the performance of any Guaranteed Obligation;

		
			 
		

			
	
			
				 c.
			

			
	
			
			modify or amend the Lease or any term thereof, or any obligation of Tenant ari sing thereunder;

		
			 
		

			
	
			
				 d.
			

			
	
			
			consent to any assignment or assignments, sublease or subleases and successive assignments or subleases by Tenant or Tenant's assigns or sublessees or a change or different use of the leased premises;-

		
			 
		

			
	
			
				 e.
			

			
	
			
			consent to an extension or extensions of the term of the Lease;

		
			 
		

			
	
			
				 f.
			

			
	
			
			accept other guarantors; and/or

		
			 
		

			
	
			
				 g.
			

			
	
			
			release any person primarily or secondarily liable.

		
			 
		

		
			The liability of the undersigned  under this guaranty shall in no way be affected or impaired by any failure or delay in enforcing any Guaranteed Payment or Guaranteed Obligation or this guaranty or any security therefor or in exercising any right or power in respect thereto, or by any compromise, waiver, settlement, change, subordination, modification or disposition of any Guaranteed Payment or Guaranteed Obligation or of any security therefor. In order to hold the undersigned liable hereunder, there shall be no obligation on the part of Landlord, at any time, to resort for payment to Tenant or any other guaranty or to any security or other rights and remedies, and Landlord shall have the right to enforce this guaranty irrespective of whether or not other proceeding s or steps are pending or being taken seeking resort to or realization upon or from any of the foregoing.
		

		
			 
		

			
	
			
				 2.
			

			
	
			
			The undersigned waives all diligence in collection or in protection or any security, presentment, protest, demand, notice of dishonor or default, notice of acceptance of this guaranty, notice of any extensions granted or other action taken in reliance hereon and all demands and notices of any kind in connection with this guaranty or any Guaranteed

		
			 
		

		

		

		 

		

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			Payment or Guaranteed Obligation. The undersigned waives the provisions of Chapter 34 of the Texas Business and Commerce Code dealing with the rights of sureties.
		

		
			 
		

			
	
			
				 3.
			

			
	
			
			The undersigned hereby acknowledges full and complete notice and knowledge of all of the terms, conditions, covenants, obligations and agreements of the Lease. The undersigned shall upon request execute such instruments as Landlord , or its mortgagee, may require to document the exercise by Tenant of any of the options granted to Tenant in compliance with the terms thereof or as may otherwise be required under the Lease, including without limitation, the subordination provisions of the Lease.

		
			 
		

			
	
			
				 4.
			

			
	
			
			The payment by the undersigned of any amount pursuant to this guaranty shall not in any way entitle the undersigned to any right, title or interest (whether by subrogation or otherwise) of Tenant under the Lease or to any security being held for any Guaranteed Payment or Guaranteed Obligation.

		
			 
		

			
	
			
				 5.
			

			
	
			
			This guaranty shall be continuing, absolute and unconditional and remain in full force and effect until all Guaranteed Payments are made, all Guaranteed Obligations are performed, and all obligations of the undersigned under this guaranty are fulfilled.

		
			 
		

			
	
			
				 6.
			

			
	
			
			The undersigned represent s and warrants, as a material inducement to Landlord to enter into the Lease, that (a) this guaranty has been duly executed, issued and delivered by the undersigned and constitutes the valid and legally binding obligations of the under signed enforceable in accordance with their terms; (b) there is no action, suit or proceeding pending or, to the knowledge of the undersigned, threatened against or affecting the undersigned, at law or in equity, or before or by any governmental authority, which might result in any materially adverse change in the business or financial condition of the undersigned ; (c) as of the date hereof, the financial condition of the undersigned is adequate to secure the obligations of the undersigned under this guaranty; (d) execution hereof by the undersigned shall not render the undersigned insolvent; (e) from and after the date hereof, the undersigned shall not take any action, such as assuming additional liabilities, divesting assets or otherwise, which would impair the ability of the undersigned to perform its obligations hereunder; and (f) the undersigned has a bona fide interest in Tenant's financial success.

		
			 
		

			
	
			
				 7.
			

			
	
			
			The obligations of Tenant under the Lease to execute and deliver estoppel statements, a:; therein provided, shall be deemed to also require the undersigned hereunder to do so and to provide the same relative to the undersigned following written request by Landlord in accordance with the terms of the Lease.

		
			 
		

			
	
			
				 8.
			

			
	
			
			This guaranty shall also bind the successors and permitted assigns of the undersigned and inure to the benefit of Landlord, its successors and assigns. The undersigned shall not assign any obligation hereunder without Landlord 's prior written consent. This guaranty shall be construed according to the laws of the state in which the leased premises are located, in which state it shall be performed by the undersigned. The proper place of venue to enforce payment or performance under this guaranty shall be in Dallas County, Texas and the undersigned waives any objections which it may now or hereafter have based on venue and/or forum non conveniens of any suit, action or proceedings brought under the Lease or this guaranty. The undersigned shall promptly designate and appoint an authorized agent to accept and acknowledge on its behalf service of any and all process which may be served in any such sui t, action or proceeding in any federal or state court in Dallas County, Texas and agrees that service of process upon said agent at the address provided to Landlord for said agent and written notice of said service mailed or delivered to the undersigned in the manner provided herein shall be deemed in every respect effective service of process upon the undersigned in any suit, action or proceeding in the State of Texas. The undersigned (I) shall give prompt notice to Landlord of any changed address of its authorized agent hereunder, (II) may at any time and from time to time designate a substitute authorized agent with an office in Dallas County, Texas (which substitute agent and office shall be designated as the person and address for service of process), and (III) shall promptly designate such a substitute if its authorized agent ceases to have an office in Dallas County, Texas or is dissolved without leaving a successor.

		
			 
		

			
	
			
				 9.
			

			
	
			
			If this guaranty is executed by more than one person, all singular nouns and verbs herein relating to the undersigned shall include the plural n umber and the obligation of the several guarantors shall be joint and several. The representations, covenants and agreements set forth in this guaranty shall continue and survive the termination of the Lease and this guaranty.

		
			 
		

		

		

		 

		

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				 10.
			

			
	
			
			Landlord and the undersigned intend and believe that each provision of this guaranty comports with all applicable law. However , if any provision of this guaranty is found by a court to be invalid for any reason, the parties intend that the remainder of this guaranty shall continue in full force and effect and the invalid provision shall be construed as if it were not contained herein.

		
			 
		

			
	
			
				 11.
			

			
	
			
			Any notice or document required or permitted to be delivered under this guaranty shall be addressed to the intended recipient, by fully prepaid registered or certified United States Mail return receipt requested, or by reputable independent contract delivery service furnishing a written record of attempted or actual delivery, and shall be deemed to be delivered when tendered for delivery to the addressee at the address set forth below, or at such other address as it has then last specified by written notice delivered in accordance with this Paragraph 11, or if to the undersigned at either its aforesaid address or its last known registered office or home  of a general partner or individual owner, whether or not actually accepted or received by the addressee:

		
			 
		

		
			Landlord:    Corporate Center Phase II Limited Partnership 
		

		
			c/o RREEF Management Company
		

		
			1406 Halsey Way, Suite 110
		

		
			Carrollton , Texas 75007
		

		
			Attn: District Manager - Las Colinas
		

		
			 
		

		
			Guarantor:  Word and Brown Insurance Administrators, Inc.
		

		
			721 South Parker, Suite 300
		

		
			Orange, California 92868 Attn: Ivonne Roca
		

		
			Vice President of Human Resources
		

		
			 
		

			
	
			
				 11.
			

			
	
			
			This guaranty is executed  to be effective as of the effective date of the Lease.

		
			 
		

		
			 
		

		
			 
		

		
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			IN WITNESS WHEREOF, the undersigned has caused this guaranty to be executed by its duly authorized officer(s) this
		

		
			 _____day of _________, 2004.
		

		
			 
		

		
			 
		

		
			GUARANTOR:
		

		
			 
		

		
			WORD AND BROWN  INSURANCE ADMINISTRATORS, INC.
		

		
			a California corporation
		

		
			 
		

		
			
		

			
					
						 

				
	
					
						 

				

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		
			 
		

		 

		

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