Document:

CREDIT AGREEMENT

 Exhibit 10.12 
  

 CREDIT AGREEMENT 
  
 AMONG 
  
 REPUBLIC COMPANIES, INC.,

 AS BORROWER, 
  
 REPUBLIC COMPANIES GROUP, INC. 
  
 AND 
  
 THE FROST NATIONAL BANK, 
 AS LENDER 
  
 FEBRUARY 23, 2005 
  

  
 TABLE OF CONTENTS

  

					
	 Section

	  	 	  	Page

	 ARTICLE I
	  	 DEFINITIONS
	  	1
	 1.1.
	  	 Definitions
	  	1
	 1.2.
	  	 Additional Definitions
	  	16
	 1.3.
	  	 Construction
	  	16
			
	 ARTICLE II
	  	 TERM LOAN
	  	16
	 2.1.
	  	 Term Loan
	  	16
	 2.2.
	  	 Repayment
	  	16
	 2.3.
	  	 Voluntary Prepayments
	  	17
	 2.4.
	  	 Interest on Term Loan Generally
	  	17
	 2.5.
	  	 Computations
	  	18
	 2.6.
	  	 Interest After an Event of Default
	  	18
	 2.7.
	  	 Late Charge
	  	18
	 2.8..
	  	 Manner of Payment
	  	19
	 2.9
	  	 Booking the Term Loan
	  	19
	 2.10.
	  	 Collateral
	  	19
			
	 ARTICLE III
	  	 TAXES AND ILLEGALITY
	  	19
	 3.1.
	  	 Taxes
	  	19
	 3.2.
	  	 Illegality
	  	21
	 3.3.
	  	 Inability to Determine Rates
	  	21
	 3.4.
	  	Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans; Compensation for Losses	  	21
	 3.5.
	  	 Matters Applicable to all Requests for Compensation
	  	22
	 3.6.
	  	 Survival
	  	22
			
	 ARTICLE IV
	  	 CONDITIONS PRECEDENT
	  	23
	 4.1.
	  	 Conditions Precedent
	  	23
			
	 ARTICLE V
	  	 AFFIRMATIVE COVENANTS
	  	26
	 5.1.
	  	 General Covenants
	  	26
	 5.2.
	  	 Accounts, Reports and Other Information
	  	27
	 5.3.
	  	 Inspection
	  	31
	 5.4.
	  	 Compliance with ERISA
	  	31
	 5.5.
	  	 Performance of Obligations
	  	31
	 5.6.
	  	 Maintenance of Priority of Bank Liens
	  	31
	 5.7.
	  	 Indemnity
	  	31
			
	 ARTICLE VI
	  	 NEGATIVE COVENANTS
	  	32
	 6.1.
	  	 Consolidated Net Worth
	  	32
	 6.2.
	  	 Total Adjusted Capital
	  	32
	 6.3.
	  	 Limitation on Debt
	  	33
	 6.4.
	  	 Limitation on Liens
	  	33
	 6.5.
	  	 Issuance of Stock
	  	33

  

 i 

					
	 6.6.
	  	 Acquisition of Assets
	  	33
	 6.7.
	  	 Disposition of Assets
	  	35
	 6.8.
	  	 Merger and Consolidation
	  	35
	 6.9.
	  	 Dividends, Distributions and Stock
	  	35
	 6.10.
	  	 Restrictive Agreements
	  	35
	 6.11.
	  	 Advances, Investments and Loans
	  	36
	 6.12.
	  	 ERISA
	  	36
	 6.13.
	  	 Assignment
	  	36
	 6.14.
	  	 Transactions with Affiliates
	  	37
	 6.15.
	  	 Business
	  	37
	 6.16.
	  	 Use of Proceeds
	  	37
			
	 ARTICLE VII
	  	 REPRESENTATIONS AND WARRANTIES
	  	37
	 7.1.
	  	 Organization and Qualification
	  	37
	 7.2.
	  	 Authorization; Validity
	  	37
	 7.3.
	  	 Capitalization
	  	38
	 7.4.
	  	 Financial Statements
	  	38
	 7.5.
	  	 Compliance With Laws and Other Matters
	  	38
	 7.6.
	  	 Preferred Dividend
	  	38
	 7.7.
	  	 Litigation
	  	39
	 7.8.
	  	 Debt
	  	39
	 7.9.
	  	 Investments
	  	39
	 7.10
	  	 Litigation
	  	39
	 7.11.
	  	 Title to Properties
	  	39
	 7.12.
	  	 Taxes
	  	39
	 7.13.
	  	 Use of Proceeds
	  	40
	 7.14.
	  	 Possession of Franchises, Licenses, Etc.
	  	40
	 7.15.
	  	 Leases
	  	40
	 7.16.
	  	 Disclosure
	  	40
	 7.17.
	  	 Security Interests
	  	40
	 7.18.
	  	 ERISA
	  	41
	 7.19.
	  	 Subsidiaries
	  	41
	 7.20.
	  	 Intellectual Property, Etc
	  	41
	 7.21.
	  	 Labor Relations, Collective Bargaining Agreements
	  	41
	 7.22.
	  	 Reinsurance Agreements
	  	41
	 7.23.
	  	 Regulatory Acts
	  	42
	 7.24.
	  	 Solvency
	  	42
	 7.25.
	  	 Environmental Matters
	  	42
	 7.26.
	  	 Survival of Representations and Warranties, etc
	  	43
			
	 ARTICLE VIII
	  	 DEFAULT
	  	43
	 8.1.
	  	 Event of Default
	  	43
	 8.2.
	  	 Remedies
	  	45
	 8.3.
	  	 Application of Funds
	  	45
			
	 ARTICLE IX
	  	 MISCELLANEOUS
	  	45
	 9.1.
	  	 Reliance by Lender
	  	45

  

 ii 

					
	 9.2.
	  	 Notices
	  	46
	 9.3.
	  	 Expenses
	  	46
	 9.4.
	  	 Waivers
	  	46
	 9.5.
	  	 Determination by Lender Conclusive and Binding
	  	47
	 9.6.
	  	 Set Off
	  	47
	 9.7.
	  	 Assignment
	  	47
	 9.8.
	  	 Counterparts
	  	48
	 9.9.
	  	 Severability
	  	48
	 9.10.
	  	 Interest and Charges
	  	48
	 9.11.
	  	 Amendment and Waiver
	  	49
	 9.12.
	  	 Exception to Covenants
	  	49
	 9.13.
	  	 USA Patriot Act Notice
	  	49
	 9.14.
	  	 GOVERNING LAW
	  	49
	 9.15.
	  	 WAIVER OF JURY TRIAL
	  	49
	 9.16.
	  	 ENTIRE AGREEMENT
	  	49
			
	 SIGNATURES
	  	 	  	S-l

  

 iii 

 EXHIBITS AND SCHEDULES 
  

			
	 Exhibit A
	  	 Term Loan Note

	 Exhibit B
	  	 Pledge Agreement

	 Exhibit C
	  	 Guaranty Agreement

	 Exhibit D
	  	 Compliance Certificate

	 Exhibit E
	  	 Arbitration and Notice of Final Agreement

	 Exhibit F
	  	 Interest Rate Notice

		
	 Schedule 7.3
	  	 Parent and Subsidiary Entity Information

	 Schedule 7.4
	  	 Off-Balance Sheet Liabilities

	 Schedule 7.8
	  	 Existing Debt

	 Schedule 7.9
	  	 Existing Investments

	 Schedule 7.10
	  	 Existing Litigation

	 Schedule 7.18
	  	 ERISA Plans

	 Schedule 7.21
	  	 Labor Agreements

	 Schedule 7.22
	  	 Reinsurance Agreements

	 Schedule 9.2
	  	 Notice Addresses

  

 iv 

 CREDIT AGREEMENT 
  
 THIS CREDIT AGREEMENT is dated as of February 23, 2005 (this agreement,
together with all amendments and restatements, this “Agreement”), among REPUBLIC COMPANIES, INC., a Delaware corporation (“Borrower”), REPUBLIC COMPANIES GROUP, INC., a Delaware corporation
(“Parent”), and THE FROST NATIONAL BANK, a national banking association (“Lender”). 
  
 BACKGROUND 
  
 Borrower has requested that Lender make a term credit facility available to Borrower. Lender has agreed to do so, subject to the terms and conditions of
this Agreement. 
  
 AGREEMENT 
  
 In consideration of the mutual covenants and agreements contained herein, and
other good and valuable consideration, receipt of which is acknowledged by all parties hereto, the parties hereto agree as follows: 
  
 ARTICLE I  
  
 DEFINITIONS 
  
 1.1. Definitions. For purposes of this Agreement: 
  
 “Affiliate” means any Person that directly, or indirectly, through one or more intermediaries, Controls or is Controlled By or is Under Common Control with any other Person. 
  
 “Agreement Date” means the date of this Agreement.

  
 “Applicable Law” means (a) in respect of any
Person, all provisions of Laws and orders of Governmental Authorities applicable to such Person and its properties, including, without limiting the foregoing, all orders and decrees of all Governmental Authorities and arbitrators in proceedings or
actions to which the Person in question is a party, and (b) in respect of contracts relating to interest or finance charges that are made or performed in the State of Texas, “Applicable Law” means the Laws of the United States of
America, including without limitation 12 U.S.C. §§85 and 86, and any other statute of the United States of America now or at any time hereafter prescribing the maximum rates of interest on loans and extensions of credit, and the Laws of
the State of Texas, and any other Laws of the State of Texas now or at any time hereafter prescribing maximum rates of interest on loans and extensions of credit. 
  
 “Arbitration and Notice of Final Agreement” means the Arbitration and Notice of Final Agreement,
substantially in the form of Exhibit E. 
  
 “Attorney Costs” means and includes all fees, expenses and disbursements of any law firm or other external counsel and, without duplication, the allocated cost of internal legal services and all expenses and disbursements
of internal counsel. 
  

 1 

 “Auditors” means KPMG, LLP or other independent certified public accountants selected by
Parent and acceptable to Lender. Notwithstanding the foregoing, at all times that Parent is a Public Company, the term “Auditors” shall include only Registered Public Accounting Firms. 
  
 “Authorized Control Lever” means “Authorized Control
Level” as defined by NAIC from time to time and as applied in the context of the Risk Based Capital Guidelines promulgated by NAIC (or any term substituted therefor by NAIC). 
  
 “Authorized Signatory” means such senior personnel of an Obligor as may be duly authorized and designated
in writing by an Obligor to execute documents, agreements and instruments on behalf of an Obligor. 
  
 “Bank Liens” means all Liens granted by Borrower and any other Person in favor of or for the benefit of Lender pursuant to the Loan
Documents or otherwise, securing all or any of the Obligations, including, but not limited to, rights in any Collateral created in favor of or for the benefit of Lender, whether by mortgage, pledge, hypothecation, assignment, transfer, or other
granting or creation of Liens. 
  
 “Base Rate”
means for any day a per annum rate of interest equal to the higher of (a) the Federal Funds Rate on such day plus .50% and (b) the Prime Rate in effect on such day. 
  
 “Base Rate Loan” means the Term Loan when it bears interest at a rate based on the Prime Rate or the
Federal Funds Rate. 
  
 “Business Day” means any
day other than a Saturday, Sunday, or other day on which commercial banks are authorized to close under the Laws of, or are in fact closed in, the State of Texas and, if such day relates to any Eurodollar Rate Loan, means any such day on which
dealings in Dollar deposits are conducted by and between banks in the applicable offshore Dollar interbank market. 
  
 “Capital Leases” means capital leases and subleases, as defined in the Financial Accounting Standards Board Statement of Financial
Accounting Standards No. 13, dated November 1976, as amended. 
  
 “Cash Equivalents” means (a) Dollar denominated time deposits, certificates of deposit (including eurodollar certificates of deposit) and bankers acceptances of (i) any FDIC insured bank, in amounts up to the FDIC insured
limit, (ii) any bank having capital and surplus in excess of $500,000,000 or the Dollar equivalent thereof or (iii) any bank whose short term commercial paper is an Investment Grade Security and (b) agreements to sell and repurchase direct
obligations of, or obligations that are fully guaranteed as to principal and interest by, the U.S. Treasury, such agreements to be with primary treasury dealers, to be evidenced by standard industry forms and to have maturities of not more than six
months from the date of commencement of the repurchase transaction. 
  
 “Change of Control” means an event or series of events by which during any period of twelve consecutive months a majority of the members of the board of directors or other equivalent governing body of Parent cease to be
composed of individuals (a) who were members of that board or equivalent governing body on the first day of such period, or (b) whose election 

  

 2 

 
or nomination to that board or equivalent governing body was approved by individuals referred to in clause (a) constituting at the time of such
election or nomination at least a majority of that board or equivalent governing body. 
  
 “Code” means the Internal Revenue Code of 1986. 
  
 “Collateral” means any assets of any Person in which at any time Lender, or another Person for the benefit of Lender, shall be granted a
Bank Lien to secure the Obligations. 
  
 “Commitment” means Lender’s obligation to make the Term Loan to Borrower pursuant to Section 2.1, in the principal amount of $20,000,000.00, as terminated pursuant to Section 2.1. 
  
 “Compliance Certificate” means a compliance certificate,
substantially in the form of Exhibit D. 
  
 “Consolidated Net Worth” means the net worth of Parent and Subsidiaries determined on a consolidated basis in accordance with GAAP after appropriate deduction for any minority interests in Subsidiaries. 
  
 “Contingent Debt” means, for any Person: 
  
 (a) guarantees, endorsements (other than endorsements of
negotiable instruments for collection in the ordinary course of business) and other contingent liabilities (whether direct or indirect) in connection with the obligations of any other Person; 
  
 (b) obligations under any contract providing for the making
of loans, advances or capital contributions to any other Person, or for the purchase of any property from any other Person, in each case in order to enable such other Person primarily to maintain working capital, net worth or any other balance sheet
condition or to pay Debts, Dividends or expenses; 
  
 (c) obligations under any contract to rent or lease (as lessee) any real or personal property (other than operating leases) if such contract (or any related document) provides that the obligation to make payments thereunder is absolute and
unconditional under conditions not customarily found in commercial leases then in general use or requires that the lessee purchase or otherwise acquire securities or obligations of the lessor; 
  
 (d) obligations in respect of letters of credit; and

  
 (e) obligations under any other contract
which, in economic effect, is substantially equivalent to a guaranty, including but not limited to “keep well” or “capital maintenance” agreements. 
  
 “Control” or “Controlled By” or “Under Common Control” means possession,
directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of voting securities, by contract or otherwise); provided that, in any event any Person which beneficially owns,
directly or indirectly, 10% or more (in number of votes) of the securities having ordinary voting power for the election of directors of a corporation or managers 

  

 3 

 
of a limited liability company or other governance board of an entity shall be conclusively presumed to control such corporation, limited liability company
or other entity. 
  
 “Current Financials” means
the most recent annual Financial Statements of Parent and Subsidiaries. 
  
 “Debt” means, at any time, for Parent and Subsidiaries, (a) Capital Leases, (b) Contingent Debt, (c) debt created, issued, incurred or assumed for money borrowed or for the deferred purchase price of property purchased, (d)
all debt, obligations and liabilities secured by any Lien upon any property owned by Parent or any Subsidiary, even though it has not assumed or become liable for the payment of same, and (e) liabilities in respect of unfunded vested benefits under
any Plans. 
  
 “Debtor Relief Laws” means any
applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, insolvency, fraudulent conveyance, reorganization or similar debtor relief Laws affecting the rights of creditors generally from time to time in effect. 
  
 “Default” means any of the events specified in Section
8.1, whether or not there has been satisfied any requirement in connection with such event for the giving of notice, or the lapse of time, or the happening of any further specified condition, event or act. 
  
 “Default Rate” means a per annum interest rate equal to the
Prime Rate plus 2%. 
  
 “Dividends” means, with
respect to any Person, any dividend on any class of its capital stock or other equity interest now or hereafter outstanding, any distribution of cash or property to owners of any shares of such stock or other equity interest, any retirement,
redemption, purchase or other acquisition, directly or indirectly, of any shares of any class of its capital stock or other equity interest now or hereafter outstanding, or any transaction that has a substantially similar effect. 
  
 “Dollars” and the sign “$” mean lawful
money of the United States of America.  
  
 “EGA” means Eagle General Agency, Inc., a Texas corporation. 
  
 “Eligible Equities” means equity securities of a Person (a) the debt securities or debt instruments of such Person are Investment Grade Securities, (b) that has a corporate credit or issuer rating of
BBB- or higher by S&P, Baa3 or higher by Moody’s, Class (2) or higher by NAIC or the equivalent of such rating by S&P, Moody’s or NAIC, or if none of S&P, Moody’s and NAIC shall then exist, the equivalent of such rating by
any other nationally recognized securities rating agency (if such Person does not have any outstanding rated debt securities or instruments) and (c) that are permitted to be owned by a RIC pursuant to Applicable Law and applicable Insurance
Regulators. 
  
 “Environment” means ambient air,
surface water and groundwater (including potable water, navigable water and wetlands), the land surface or subsurface strata, the workplace or as otherwise defined in any Environmental Law. 
  

 4 

 “Environmental Claim” means any written accusation, allegation, notice of violation,
claim, demand, order, directive, consent decree, cost recovery action or other cause of action by, or on behalf of, any Governmental Authority or any Person for damages, injunctive or equitable relief, personal injury (including sickness, disease or
death), Remedial Action costs, tangible or intangible property damage, natural resource damages, nuisance, pollution, any adverse effect on the Environment caused by any Hazardous Material, or for fines, penalties or restrictions, resulting from or
based upon: (a) the existence, or the continuation of the existence, of a Release (including sudden or non sudden, accidental or non accidental Releases); (b) exposure to any Hazardous Material; (c) the presence, use, handling, transportation,
storage, treatment or disposal of any Hazardous Material; or (d) the violation or alleged violation of any Environmental Law or Environmental Permit. 
  
 “Environmental Law” means any and all applicable present and future treaties, Laws, codes, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority, relating in any way to the Environment, preservation or reclamation of natural resources, the management, Release or threatened Release of any Hazardous Material or to
health and safety matters, including the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended by the Superfund Amendments and Reauthorization Act of 1986, 42 U.S.C. §§ 9601 et seq.
(collectively “CERCLA”), the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act of 1976 and Hazardous and Solid Waste Amendments of 1984, 42 U.S.C. §§ 6901 et seq., the Federal
Water Pollution Control Act, as amended by the Clean Water Act of 1977, 33 U.S.C. §§ 1251 et seq., the Clean Air Act of 1970, 42 U.S.C. §§ 7401 et seq., as amended, the Toxic Substances Control Act of
1976, 15 U.S.C. §§ 2601 et seq., the Occupational Safety and Health Act of 1970, as amended by 29 U.S.C. §§ 651 et seq., the Emergency Planning and Community Right to Know Act of 1986, 42 U.S.C.
§§ 11001 et seq., the Safe Drinking Water Act of 1974, as amended by 42 U.S.C. §§ 300(f) et seq., the Hazardous Materials Transportation Act, 49 U.S.C. §§ 5101 et seq., and any
similar or implementing state or local Law. 
  
 “Environmental Permit” means any permit, approval, authorization, certificate, license, variance, filing or permission required by or from any Governmental Authority pursuant to any Environmental Law. 
  
 “ERISA” means the Employee Retirement Income Security Act of
1974. 
  
 “ERISA Affiliate” means each person (as
defined in Section 3(9) of ERISA) which together with Parent or a Subsidiary would be deemed to be a “single employer” within the meaning of Section 414(b), (c), (m) or (o) of the Code. 
  
 “Eurodollar Basis” means either: 
  
 (a) for any Interest Period with respect to a Eurodollar
Rate Loan, the rate per annum equal to the “London Interbank Offered Rate,” as published in the “Money Rates” column of The Wall Street Journal, Central Edition, on the Business Day on which such Interest Period commences,
for deposits in Dollars with a term equivalent to such Interest Period, or if for any reason such rate is no longer available, the rate per annum (rounded upward to the nearest 1/100 of 1%) equal to the rate determined by Lender to be the offered
rate as reported by 

  

 5 

 
a commercially available source providing quotations of the British Bankers Association Settlement Rate selected by Lender for deposits in Dollars (for
delivery on the date of determination) with a term equivalent to such Interest Period, determined as of approximately 11:00 a.m. (London time) on the Business Day on which such Interest Period commences; or 
  
 (b) with respect to any Eurodollar Rate Loan as to which
Borrower has not elected an Interest Period pursuant to Section 2.4(a), for any day a rate per annum equal to the “London Interbank Offered Rate” for a one-month term, as published in the “Money Rates” column of The
Wall Street Journal, Central Edition, from time to time, or if for any reason such rate is no longer available, for any day the rate per annum (rounded upward to the nearest 1/100 of 1%) equal to the rate determined by Lender to be the offered
rate as reported by a commercially available source providing quotations of the British Bankers Association Settlement Rate selected by Lender for deposits in Dollars (for delivery on the date of determination) with a one-month term, determined as
of approximately 11:00 a.m. (London time). 
  
 The Eurodollar
Basis determined as provided in clause (b) shall change effective as of the date of any change as published in The Wall Street Journal, Central Edition, or as determined by Lender, as appropriate. The Eurodollar Basis is a reference
rate and does not necessarily represent the lowest or best rate actually charged to any customer of Lender. 
  
 “Eurodollar Margin” means 2.00%. 
  
 “Eurodollar Rate Loan” means the Term Loan when it bears interest at a rate based on the Eurodollar Basis. 
  
 “Event of Default” means any of the events specified in
Section 8.1, provided there has been satisfied any requirement in connection with such event for the giving of notice, or the lapse of time, or the happening of any further condition, event or act. 
  
 “Existing Debt” means the Debt of Parent and Subsidiaries
existing on the Agreement Date, including renewals (but not increases) thereof. 
  
 “Existing Investments” means the Investments of Parent and Subsidiaries existing on the Agreement Date. 
  
 “Existing Litigation” means the Litigation involving or otherwise affecting Parent or any Subsidiary existing on the Agreement Date,
which is described on Schedule 7.10. 
  
 “Federal
Funds Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System
arranged by federal funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day; provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such
rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, and (b) if no such rate is so published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average
rate charged to Lender on such day on such transactions as determined by Lender. 
  

 6 

 “Financial Statements” includes, but is not limited to, balance sheets, income, profit
and loss statements, reconciliations of capital and surplus and/or partnership capital accounts, as appropriate, and statements of changes in financial position or cash flow, prepared in comparative form with respect to the corresponding period of
the preceding fiscal year and prepared in accordance with SAP or GAAP, as appropriate. 
  
 “Frost” means The Frost National Bank. 
  
 “GAAP” means generally accepted accounting principles applied on a consistent basis, set forth in the Opinions of the Accounting Principles Board of the American Institute of Certified Public
Accountants and/or in statements of the Financial Accounting Standards Board, which are applicable in the circumstances as of the date in question, and the requisite that such principles be applied on a consistent basis shall mean that the
accounting principles observed in a current period are comparable in all material respects to those applied in a preceding period. 
  
 “Governmental Authority” means any state, commonwealth, federal, foreign, territorial, or other court or governmental department,
commission, board, bureau, agency or instrumentality. 
  
 “Guarantor” means (a) Parent and (b) each Person that is now or hereafter a Subsidiary, other than RCLP, Borrower, RIG I, RIG II, RHP, any RIC, any Subsidiary of a RIC and any Unrestricted Subsidiary. 
  
 “Guaranty” means a Guaranty Agreement, substantially in the
form of Exhibit C, duly executed by each Guarantor. 
  
 “Hazardous Materials” means all explosive or radioactive substances or wastes, hazardous or toxic substances or wastes, pollutants, solid, liquid or gaseous wastes, including petroleum or petroleum distillates, asbestos or
asbestos containing materials, polychlorinated biphenyls (“PCBs”) or PCB containing materials or equipment, radon gas, infectious or medical wastes and all other substances or wastes of any nature regulated pursuant to any
Environmental Law. 
  
 “Highest Lawful Rate”
means at the particular time in question the maximum rate of interest which, under Applicable Law, Lender is then permitted to charge on the Obligations. If the maximum rate of interest which, under Applicable Law, Lender is permitted to charge on
the Obligations shall change after the date hereof, the Highest Lawful Rate shall be automatically increased or decreased, as the case may be, from time to time as of the effective time of each change in the Highest Lawful Rate without notice to
Borrower. For purposes of determining the Highest Lawful Rate under Applicable Law, the indicated rate ceiling shall be the lesser of (a)(i) the “weekly ceiling”, as that expression is defined in Section 303.003 of the Texas Finance
Code, as amended, or (ii) if available in accordance with the terms thereof and at Lender’s option after notice to Borrower and otherwise in accordance with the terms of Section 303.103 of the Texas Finance Code, as amended, the
“annualized ceiling” and (b)(i) if the amount outstanding under this Agreement is less than $250,000, twenty four percent (24%), or (ii) if the amount under this Agreement is equal to or greater than $250,000, twenty eight percent
(28%) per annum. 
  

 7 

 “Insurance Business” means one or more aspects of the business of selling, issuing or
underwriting insurance or reinsurance. 
  
 “Insurance
Contract” means any insurance contract or policy issued by a RIC, but shall not include any Reinsurance Agreement or Retrocession Agreement. 
  
 “Insurance Regulator” means, when used with respect to any RIC, the Governmental Authority, insurance department or similar
administrative authority or agency located in (a) each state in which such RIC is domiciled or (b) to the extent asserting regulatory jurisdiction over such RIC, the Governmental Authority, insurance department, authority or agency in each state in
which such RIC is licensed, and shall include any Federal insurance regulatory department, authority or agency that may be created and that asserts regulatory jurisdiction over such RIC. 
  
 “Interest Payment Date” means, (a) as to any Eurodollar Rate Loan as to which an Interest Period applies,
the last day of each Interest Period applicable to such Eurodollar Rate Loan and the Maturity Date; provided, however, that if any Interest Period for a Eurodollar Rate Loan exceeds three months, the date that falls three months after
the beginning of such Interest Period shall also be an Interest Payment Date; and (b) as to any Eurodollar Rate Loan as to which an Interest Period does not apply and any Base Rate Loan, the last Business Day of each March, June, September and
December and the Maturity Date. 
  
 “Interest
Period” means, as to each Eurodollar Rate Loan that Borrower has notified Lender in accordance with Section 2.4(a) that such Eurodollar Rate Loan shall be for an Interest Period, the period commencing on the date such Eurodollar Rate
Loan is disbursed or converted to or continued as a Eurodollar Rate Loan and ending on the date one, three or six months thereafter, as selected by Borrower in the applicable Interest Rate Notice; provided that: 
  
 (a) any Interest Period that would otherwise end on a day
that is not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month, in which case such Interest Period shall end on the next preceding Business Day; 
  
 (b) any Interest Period that begins on the last Business Day
of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month at the end of such Interest Period) shall end on the last Business Day of the calendar month at the end of such Interest Period; and

  
 (c) no Interest Period shall extend beyond
the Maturity Date. 
  
 “Interest Rate Notice”
means a notice of an election that the Term Loan become or continue as a Eurodollar Rate Loan (and the Interest Period for such Eurodollar Rate Loan, if applicable) or become a Base Rate Loan pursuant to Section 2.4(a), substantially in the
form of Exhibit F. 
  
 “Internal Control
Event” means a material weakness in, or fraud that involves management or other employees who have a significant role in, Parent’s “disclosure controls and procedures” or “internal controls over financial
reporting”, in each case as described in Rule 13A-15 or Rule 15d-15 promulgated under the Securities Act of 1934. 
  

 8 

 “Invested Assets” means, at any date for any RIC, the total amount as would be shown on
line 10, page 2, column 1 of an annual financial statement of such RIC as would be prepared as of such date utilizing the identical format utilized by such RIC in preparing the December 31, 2003, annual statements filed with the applicable Insurance
Regulator, or if such format is changed after the Agreement Date, the same type of information, computed in the same manner, as contained in the identically numbered page, line item and column of the December 31, 2003, annual statement for such RIC
prepared as of such date. 
  
 “Investment” means
any acquisition of all or substantially all of the assets of any Person, or any direct or indirect purchase or other acquisition of, or a beneficial interest in, any equity interest or other securities of any other Person, or any direct or indirect
loan, advance, or capital contribution to or investment in any other Person, including without limitation the incurrence or sufferance of Debt or accounts receivable of any other Person that are not current assets or do not arise from dispositions
to that other Person in the ordinary course of business. 
  
 “Investment Amount” means the lesser of (a) $50,000,000, and (b) an amount equal to (i) $50,000,000, minus (ii) the aggregate amount of all Investments of Parent and Subsidiaries in Seguros (valued at the original cost of
such Investment), plus (iii) the aggregate consideration received by RUIC for all sales by RUIC of equity of Seguros after the Agreement Date. 
  
 “Investment Grade Securities” means and includes (a) securities that are direct obligations of the United States of America, the payment
of which is backed by the full faith and credit of the United States of America, (b) debt securities or debt instruments with an “investment grade” rating by each of S&P, Moody’s, and NAIC, or if none of S&P, Moody’s and
NAIC shall then exist, the equivalent of such rating by any other nationally recognized securities rating agency, but excluding any debt securities or instruments constituting loans or advances among Parent and Subsidiaries, and (c) any fund
investing exclusively in investments of the type described in clauses (a) and (b), which funds may also hold immaterial amounts of cash pending investment and/or distribution. 
  
 “Investment Policy” means the written policies and
procedures which govern the acquisition and maintenance of Investments and the cash management procedures of Parent and each Subsidiary. 
  
 “Laws” means all constitutions, statutes, laws, ordinances, regulations, orders, writs, injunctions, or decrees of the United States, any
state or commonwealth, any municipality, any foreign country, any territory or possession, or any Governmental Authority. 
  
 “Lien” means any mortgage, pledge, security interest, encumbrance, lien or charge of any kind (including any agreement to give or not to
give any of the foregoing), any conditional sale or other title retention agreement, any lease in the nature thereof, and the filing of or agreement to give any financing statement or other similar form of public notice under the Laws of any
jurisdiction. 
  
 “Litigation” means any
proceeding, claim, lawsuit and/or investigation conducted or threatened by or before any Governmental Authority, including, but not limited to, proceedings, arbitrations, claims, lawsuits, and/or investigations under or pursuant to any Environmental
Law, 

  

 9 

 
occupational, safety and health, antitrust, unfair competition, securities, Tax, or other Law, or under or pursuant to any contract, agreement or other
instrument. 
  
 “Litigation Report” means a
report, certified to be true, correct and complete by an Authorized Officer of Parent and each Subsidiary which is a party to any such litigation, describing all litigation relating to Insurance Business written by Parent or any Subsidiary, in
format acceptable to Lender. 
  
 “Loan Documents”
means this Agreement, the Term Loan Note, the Security Documents, the Guaranty and all other documents and instruments executed and delivered to Lender by any Obligor or any other Person in connection with this Agreement. 
  
 “Material Adverse Change or Effect” means any act or
circumstance or event which (a) causes an Event of Default or Default, (b) otherwise could reasonably be expected to be material and adverse to the business, operations, properties, financial condition or prospects of Parent, any other Obligor or
any Subsidiary, or (c) in any manner whatsoever could adversely affect the validity or enforceability of any of the Loan Documents. 
  
 “Maturity Date” means the first to occur of (a) February 23, 2010, and (b) the date the Obligations are accelerated. 
  
 “Maximum Amount” means the maximum amount of interest which,
under Applicable Law, Lender is permitted to charge on the Obligations. 
  
 “Moody’s” means Moody’s Investors Service, Inc. 
  
 “NAIC” means the National Association of Insurance Commissioners or any successor organization thereto. 
  
 “NAIC Tests” means the ratios and other financial measurements developed by NAIC under its Insurance Regulatory Information System, as in
effect from time to time. 
  
 “Obligations” means
all obligations, indebtedness and liabilities under the Loan Documents now or hereafter owing by Borrower or any other Person to or for the benefit of Lender, whether joint or several, fixed or contingent, including principal, interest, expenses of
collection and foreclosure and attorneys’ fees. Without limiting the generality of the foregoing, “Obligations” includes all amounts which would be owed by Borrower or any other Person to Lender under any Loan Document, but for
the fact that they are unenforceable or not allowable due to the existence of a bankruptcy, reorganization or similar proceeding involving Borrower or any other Person (including all such amounts which would become due or would be secured but for
the filing of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding of Borrower or any other Person under any Debtor Relief Law). 
  
 “Obligor” means Borrower and each other Person liable for performance of any of the Obligations or the
property of which secures the performance of any of the Obligations. 
  

 10 

 “Off-Balance Sheet Liabilities” means, with respect to any Person as of any date of
determination thereof, without duplication and to the extent not included as a liability on the consolidated balance sheet of such Person and its Subsidiaries in accordance with GAAP: (a) with respect to any asset securitization transaction
(including any accounts receivable purchase facility) (i) the unrecovered investment of purchasers or transferees of assets so transferred and (ii) any other payment, recourse, repurchase, hold harmless, indemnity or similar obligation of such
Person or any of its Subsidiaries in respect of assets transferred or payments made in respect thereof, other than limited recourse provisions that are customary for transactions of such type and that neither (x) have the effect of limiting the loss
or credit risk of such purchasers or transferees with respect to payment or performance by the obligors of the assets so transferred nor (y) impair the characterization of the transaction as a true sale under applicable Laws (including Debtor Relief
Laws); (b) the monetary obligations under any financing lease or so-called “synthetic,” tax retention or off-balance sheet lease transaction which, upon the application of any Debtor Relief Law to such Person or any of its Subsidiaries,
would be characterized as indebtedness; (c) the monetary obligations under any sale and leaseback transaction which does not create a liability on the consolidated balance sheet of such Person and its Subsidiaries; or (d) any other monetary
obligation arising with respect to any other transaction which (i) upon the application of any Debtor Relief Law to such Person or any of its Subsidiaries, would be characterized as indebtedness or (ii) is the functional equivalent of or takes the
place of borrowing but which does not constitute a liability on the consolidated balance sheet of such Person and its Subsidiaries (for purposes of this clause (d), any transaction structured to provide tax deductibility as interest expense
of any Dividend, coupon or other periodic payment will be deemed to be the functional equivalent of a borrowing). 
  
 “PBGC” means the Pension Benefit Guaranty Corporation established under ERISA. 
  
 “PCAB” means the Public Company Accounting Oversight Board,
or any entity succeeding to any of its principal functions. 
  
 “Permitted Acquisition” means the acquisition of all or substantially all of the assets or all of the equity of a Person, so long as in each case (a) there exists no Default or Event of Default both before and after giving
effect to any such acquisition, (b) all of the authorized, issued and outstanding equity of such acquired entity and all voting rights (including voting rights arising upon the occurrence of a contingency) with respect to such entity will be owned
by (i) Borrower, (ii) either Borrower or a RIC (if the issuer of the acquired equity is a RIC) or (iii) a Guarantor, (c) such acquired assets are acquired by (i) Borrower, (ii) a RIC (if the acquired assets are acquired from another RIC) or (iii) a
Guarantor, (d) Borrower provides Lender with information and a Compliance Certificate demonstrating pro forma compliance with the terms of this Agreement through the Maturity Date and that no Default or Event of Default exists, after giving
effect to such acquisition, (e) each acquisition is consummated pursuant to a negotiated acquisition agreement on a non-hostile basis pursuant to an acquisition agreement approved by the board of directors or other applicable governing body of the
entity to be acquired prior to the commencement thereof, and (f) each acquired entity or Borrower executes and delivers, or causes to be executed and delivered, each of the documents applicable to it described in Sections 6.6(d)(1) –
(9). 
  

 11 

 “Permitted Debt” means (a) the Obligations, (b) trade accounts payable and other similar
obligations incurred in the ordinary course of business, (c) claims to payment under Insurance Contracts issued by a RIC, (d) intercompany balances in the ordinary course of business among Borrower and Subsidiaries, (e) Existing Debt, (f) Debt of
Borrower constituting part of the consideration paid by Borrower to acquire equity of an Unrestricted Subsidiary in compliance with Section 6.6(c), and (g) other Debt of Parent and Subsidiaries not secured by or benefiting from any Lien.

  
 “Permitted Liens” means (a) Bank Liens, (b)
pledges or deposits made to secure payment of workmen’s compensation, or to participate in any fund in connection with workmen’s compensation, unemployment insurance, pensions, or other social security programs (excluding any Liens in
respect of ERISA), (c) good faith pledges or deposits made to secure performance of bids, tenders, contracts (other than for the repayment of borrowed money), or leases, or to secure statutory obligations, surety or appeal bonds, or indemnity,
performance, or other similar bonds in the ordinary course of business, (d) encumbrances consisting of zoning restrictions, easements, or other restrictions on the use of real property, none of which impair the use of such property by Parent or any
Subsidiary in the operation of its business in any manner which would have a Material Adverse Effect, (e) Liens (including the conveyance of any property to any reinsurance trust) to secure obligations of Parent or any Subsidiary pursuant to a
Reinsurance Agreement, (f) Liens securing Debt described in clause (f) of “Permitted Debt,” so long as such Lien does not encumber any property other than Borrower’s equity interest in the respective Unrestricted Subsidiary for
which such Debt was a portion of the consideration paid for such equity interest, (g) Liens securing obligations pursuant to repurchase agreements described in clause (b) of “Cash Equivalents”, and (h) the following, if the validity
or amount thereof is being contested in good faith and by appropriate and lawful proceedings and so long as levy and execution thereon have been stayed and continue to be stayed: claims and Liens for Taxes due and payable; claims and Liens upon, and
defects of title to, real or personal property or other legal process prior to adjudication of a dispute on the merits, including mechanic’s and materialmen’s Liens; and adverse judgments on appeal. 
  
 “Person” means and includes an individual, a partnership, a
joint venture, a corporation, a trust, an unincorporated organization, and a government or any department, Governmental Authority, agency or political subdivision thereof. 
  
 “Plan” means any pension plan as defined in Section 3(2) of ERISA, which is maintained or contributed to by
(or to which there is an obligation to contribute of) Parent, a Subsidiary or an ERISA Affiliate, and each such plan for the five year period immediately following the latest date on which Parent, a Subsidiary or an ERISA Affiliate maintained,
contributed to or had an obligation to contribute to such plan. 
  
 “Pledge Agreement” means the Pledge Agreement executed by Borrower substantially in the form of Exhibit B. 
  
 “Preferred Dividend” means the declaration and payment of a cash Dividend with respect to Dividends accrued on the Preferred Stock prior
to the Agreement Date. 
  

 12 

 “Preferred Stock” means preferred stock of Parent designated as Series A Preferred
Stock. 
  
 “Prime Rate” means for any day a per
annum rate of interest equal to the “prime rate,” as published in the “Money Rates” column of The Wall Street Journal, Central Edition, from time to time, or if for any reason such rate is no longer available, the rate
established by Lender as its prime rate. The Prime Rate shall change effective as of the date of any change as published in The Wall Street Journal, Central Edition, or as established by Lender, as appropriate. The Prime Rate is a reference
rate and does not necessarily represent the lowest or best rate actually charged to any customer of Lender. 
  
 “Principal Office” means the principal office of Lender, located at 100 West Houston Street, San Antonio, Texas 78205. 
  
 “Public Company” means a Person the securities of which are
registered under Section 12 of the Securities Exchange Act of 1934, or that is required to file reports under Section 15(d) of the Securities Exchange Act of 1934, or that files or has filed a registration statement that has not been withdrawn
(regardless of whether such registration statement has become effective) under the Securities Act of 1933. 
  
 “RCLP” means Republic Co-Investors, L.P., a Delaware limited partnership. 
  
 “Registered Public Accounting Firm” means an accounting firm that (a) has registered with the PCAB pursuant
to the provisions of Section 102 of Sarbanes-Oxley and whose registration has not been withdrawn, terminated, revoked or suspended and (b) meets the “independence” requirements of Section 10A of the Securities Exchange Act of 1934.

  
 “Reinsurance Agreement” means any agreement,
contract, treaty or other arrangement whereby one or more insurers, as reinsurers, assume liabilities under insurance policies or agreements issued by another insurance or reinsurance company or companies. 
  
 “Release” means any spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing, dispersing, emanating or migrating of any Hazardous Material in, into, onto or through the Environment. 
  
 “Remedial Action” means (a) “remedial action” as
such term is defined in CERCLA, 42 U.S.C. Section 9601(24), and (b) all other actions required by any Governmental Authority or voluntarily undertaken to: (i) cleanup, remove, treat, abate or in any other way address any Hazardous Material in the
Environment; (ii) prevent the Release or threat of Release, or minimize the further Release of any Hazardous Material so it does not migrate or endanger or threaten to endanger public health, welfare or the Environment; or (iii) perform studies and
investigations in connection with, or as a precondition to, (i) or (ii) above. 
  
 “Reportable Event” means a reportable event as defined in Section 4043(b) of Title IV of ERISA. 
  
 “RGM” means Republic Group No. Two Company, a Missouri corporation. 
  

 13 

 “RHP” mean Republic Home Protectors, Inc., a Texas corporation. 
  
 “RIC” means any Subsidiary, whether now owned or hereafter
acquired, that is authorized or admitted to carry on or transact Insurance Business in any jurisdiction, is regulated by any Insurance Regulator, and is required by any Insurance Regulator to file a “yellowbook” or “bluebook.”

  
 “RIG I” means RIG Capital Trust I, a Delaware
statutory trust.  
  
 “RIG II” means RIG
Capital Trust II, a Connecticut statutory trust. 
  
 “Risk-Based Capital Ratio” means for a RIC, the ratio (expressed as a percentage), at any time, of the Total Adjusted Capital of such RIC to the Authorized Control Level of such RIC. 
  
 “RUIC” means Republic Underwriters Insurance Company, a
Texas property and casualty insurance corporation. 
  
 “S&P” means Standard & Poor’s Ratings Group, a division of McGraw Hill, Inc., a New York corporation. 
  
 “SAP” means the statutory accounting and reporting practices prescribed by the insurance Laws or Insurance Regulator (or other similar
Governmental Authority) with respect to each RIC. 
  
 “Sarbanes-Oxley” means the Sarbanes-Oxley Act of 2002. 
  
 “SEC” means the Securities and Exchange Commission, or any Governmental Authority succeeding to any of its principal functions. 
  
 “Securities Laws” means the Securities Act of 1933, the Securities Exchange Act of 1934, Sarbanes-Oxley and
the applicable accounting and auditing principles, rules, standards and practices promulgated, approved or incorporated by the SEC or the PCAB. 
  
 “Security Documents” means, collectively, the Pledge Agreement, and any and all other documents, instruments, financing statements,
public notices and the like executed and delivered in connection with any of the Bank Liens or the Collateral. 
  
 “Seguros” means Seguros Atlas, S.A., a Mexico sociedad anonima. 
  
 “Solvent” means, with respect to any Person, that the fair value of the assets of such Person (both at fair
valuation and at present fair saleable value) is, on the date of determination, greater than the total amount of liabilities (including contingent and unliquidated liabilities) of such Person as of such date and that, as of such date, such Person is
able to pay all liabilities of such Person as such liabilities mature and such Person does not have unreasonably small capital with which to carry on its business. In computing the amount of Contingent Debt or other contingent or unliquidated
liabilities at any time, such liabilities will be computed at the amount which, in light of all the facts and circumstances existing at such time, represents the amount that 

  

 14 

 
can reasonably be expected to become an actual or matured liability discounted to present value at rates believed to be reasonable by such Person.

  
 “Special Counsel” means the law firm of
Winstead Sechrest & Minick P.C., or such other legal counsel as Lender may select. 
  
 “Subsidiary” of a Person means a corporation, partnership, joint venture, limited liability company or other business entity of which a majority of the shares of securities or other interests having
ordinary voting power for the election of directors or other governing body (other than securities or interests having such power only by reason of the happening of a contingency) are at the time beneficially owned, or the management of which is
otherwise Controlled, directly or indirectly through one or more intermediaries, or both, by such Person. Unless otherwise specified, all references to a “Subsidiary” or to “Subsidiaries’” refers to a
Subsidiary or Subsidiaries of Parent. 
  
 “Taxes”
means all taxes, assessments, fees or other charges from time to time or at any time imposed by any Laws or by any Governmental Authority. 
  
 “Term Loan Note” means the promissory note made by Borrower in favor of Lender evidencing the Term Loan made by Lender, substantially in
the form of Exhibit A. 
  
 “Total Adjusted
Capital” means “Total Adjusted Capital” as substantially defined by NAIC as of December 31, 2004, without adjustment, and as applied in the context of the Risk Based Capital Guidelines promulgated by NAIC. 
  
 “UCC” means the Uniform Commercial Code, as currently
adopted in Texas. 
  
 “Unfunded Current
Liability” of any Plan means the amount, if any, by which the actuarial present value of the accumulated plan benefits under the Plan as of the close of its most recent plan year exceeds the fair market value of the assets allocable
thereto, each determined in accordance with Statement of Financial Accounting Standards No. 87, based upon the actuarial assumptions used by the Plan’s actuary in the most recent annual valuation of the Plan. 
  
 “Unrestricted Subsidiary” means a Subsidiary (a) that is a
corporation or limited liability company, (b) that is not a RIC, (c) that engages in businesses in compliance with Section 6.15, (d) as to which Borrower possesses power to direct or cause the direction of management, and (e) less than all
and not less than 51 % of all equity of such Subsidiary (including all equity, regardless of whether such equity has no voting rights or has voting rights only upon the occurrence of a contingency) is owned directly by Borrower. 
  

 15 

 1.2. Additional Definitions. The following additional terms have the meaning specified in the
indicated Section or other provision of this Agreement: 
  

			
	 Term

	  	 Section/Provision

	 Agreement
	  	Introductory Paragraph
	 Borrower
	  	Introductory Paragraph
	 Eurocurrency liabilities
	  	Section 3.4(c)
	 Indemnified Taxes
	  	Section 3.1(a)
	 Indemnitees
	  	Section 5.7
	 Lender
	  	Introductory Paragraph
	 Other Taxes
	  	Section 3. 1(b)
	 Parent
	  	Introductory Paragraph
	 Participant
	  	Section 9.7(b)
	 Participation
	  	Section 9.7(b)
	 PCB
	  	“Hazardous Materials”
	 Properties
	  	Section 7.25(a)
	 Term Loan
	  	Section 2.1

  
 1.3. Construction.
Unless otherwise expressly provided in this Agreement or the context requires (a) otherwise, the singular shall include the plural, and vice versa, (b) words of a gender include the other gender, (c) all accounting terms shall be construed in
accordance with GAAP or SAP, as the context requires, on a consolidated basis for Parent and Subsidiaries, (d) all references to time are San Antonio time, (e) monetary references are to Dollars, (h) all references to “Articles,”
“Sections,” “Exhibits,” and “Schedules” are to the Articles, Sections, Exhibits, and Schedules of and to this Agreement, (i) headings used in this Agreement and each other Loan Document are for convenience only and
shall not be used in connection with the interpretation of any provision hereof or thereof, (j) references to any Person include that Person’s heirs, personal representatives, successors, and permitted assigns, that Person as a debtor in
possession, and any receiver, trustee, liquidator, conservator, custodian, or similar party appointed for such Person or all or substantially all of its assets, (k) references to any Law include every amendment or restatement to it, rule and
regulation adopted under it, and successor or replacement for it, (l) references to a particular Loan Document include each amendment, modification, or supplement to or restatement of it made in accordance with this Agreement and such Loan Document
and (m) references to consolidated Financial Statements of Parent and Subsidiaries or to the determination of any amount for Parent and Subsidiaries on a consolidated basis or any similar reference shall, in each case, be deemed to include each
variable interest entity that Parent is required to consolidate pursuant to FASB Interpretation No. 46 –Consolidation of Variable Interest Entities: an interpretation of ARB No. 51 (January 2003) as if such variable interest entity were a
Subsidiary as defined herein. 
  
 ARTICLE II  
  
 TERM LOAN 
  
 2.1. Term Loan. Subject to the terms and conditions set forth herein, Lender agrees to make a term loan (the
“Term Loan”) to Borrower on the Agreement Date in the amount of the Commitment. Immediately upon making of the Term Loan, the Commitment shall be automatically terminated. The Term Loan may not be repaid and then reborrowed. The
Term Loan shall initially be a Eurodollar Rate Loan. 
  
 2.2.
Repayment. The principal of the Term Loan shall be due and payable on the Maturity Date. 
  

 16 

 2.3. Voluntary Prepayments. Borrower may, upon notice to Lender, at any time or from time to time
voluntarily prepay the Term Loan in whole or in part without premium or penalty; provided that such notice must be received by Lender not later than 10:00 a.m. one Business Day prior to the date of prepayment. Each such notice shall specify
the date and amount of such prepayment. Any voluntary prepayment shall be accompanied by all accrued interest thereon, together with any additional amounts required pursuant to Article III. 
  
 2.4. Interest on Term Loan Generally. 
  
 (a) Subject to Sections 2.4(c) and 2.6 and not
more than once in each calendar month, Borrower may elect that the Term Loan be either a Eurodollar Rate Loan or a Base Rate Loan and, if Borrower elects that the Term Loan be a Eurodollar Rate Loan, whether such Eurodollar Rate Loan shall be for an
Interest Period, such election to be made upon Borrower’s irrevocable notice to Lender, which may be given by telephone. Each such notice must be received by Lender not later than 10:00 a.m. three Business Days prior to the Business Day on
which the new interest rate is to apply. Each such telephonic notice must be confirmed promptly by delivery to Lender of a written Interest Rate Notice appropriately completed and signed by an Authorized Signatory of Borrower. Each Interest Rate
Notice (whether telephonic or written) shall specify the requested date of the continuation or conversion of the applicable interest rate (which shall be a Business Day) and whether, if the Term Loan is to be continued as or converted to a
Eurodollar Rate Loan, such Eurodollar Rate Loan will be for an Interest Period. If Borrower does not notify Lender of a requested continuation or conversion of the applicable interest rate as provided in this Section 2.4(a), the Term Loan
shall continue as or convert to a Base Rate Loan, subject to Sections 2.4(c) and 2.6. If Borrower does not notify Lender of an Interest Period applicable to a Eurodollar Rate Loan, such Eurodollar Rate Loan shall not be for an Interest
Period. A Eurodollar Rate Loan made for an Interest Period may be continued or converted only on the last day of the Interest Period for such Eurodollar Rate Loan. If a Default or Event of Default exists, the Term Loan may not be continued as or
converted to a Eurodollar Rate Loan. Subject to the provisions of Sections 2.4(c) and 2.6, the entire Term Loan must be either a Eurodollar Rate Loan or a Base Rate Loan. 
  
 (b) Subject to the provisions of Sections 2.4(c) and 2.6, each (i) Eurodollar Rate Loan (other
than a Eurodollar Rate Loan made for an Interest Period) shall bear interest on the outstanding principal amount thereof from the borrowing date or the effective date of the election by Borrower that the Term Loan becomes a Eurodollar Rate Loan, as
applicable, to but not including the date on which another interest rate becomes applicable to the Term Loan pursuant to the terms of this Agreement at a rate per annum equal to the lesser of (A) the Highest Lawful Rate and (B) the Eurodollar Basis
for such Eurodollar Rate Loan plus the Eurodollar Margin, (ii) Eurodollar Rate Loan made for an Interest Period shall bear interest on the outstanding principal amount thereof for such Interest Period at a rate per annum equal to the lesser of (A)
the Highest Lawful Rate and (B) the Eurodollar Basis for such Interest Period plus the Eurodollar Margin, and (ii) Base Rate Loan shall bear interest on the outstanding principal amount thereof from the borrowing date, the effective date of the
election by Borrower that the Term Loan becomes a Base Rate Loan or the effective date the Term Loan otherwise becomes a Base Rate Loan pursuant to the terms of this Agreement, as applicable, to but not including the date on which another interest
rate becomes applicable to the Term Loan pursuant to the terms of 

  

 17 

 
this Agreement at a rate per annum equal to the lesser of (A) the Highest Lawful Rate and (B) the Base Rate. 
  
 (c) Subject to the provisions of Section 2.6, if at
any time Lender has notified Borrower that the provisions of Sections 3.2 or 3.3 apply, (i) each Eurodollar Rate Loan shall become a Base Rate Loan effective on the date on which Lender determines that the provisions of Section
3.2 apply, (ii) each Eurodollar Rate Loan made for an Interest Period shall become a Base Rate Loan on the last day of such Interest Period occurring after the effective date on which Lender determines that the provisions of Section 3.3
apply, (iii) each Eurodollar Rate Loan (other than a Eurodollar Rate Loan made for an Interest Period) shall become a Base Rate Loan on the effective date on which Lender determines that the provisions of Section 3.3 apply, and (iv) Borrower
may not elect that the Term Loan be a Eurodollar Rate Loan until Lender notifies Borrower that the provisions of Sections 3.2 and 3.3 no longer apply. 
  
 (d) Interest on the Term Loan shall be due and payable in arrears on each Interest Payment Date and at such
other times as may be specified herein. Interest hereunder shall be due and payable in accordance with the terms hereof before and after judgment, and before and after the commencement of any proceeding under any Debtor Relief Law. 
  
 2.5. Computations. Subject to Section 9.10, interest on the
Term Loan and any other amounts due hereunder shall be calculated on the basis of actual days elapsed over a year of 360 days, unless such calculation would result in a rate greater than the highest rate permitted by Applicable Law, in which case
interest shall be computed on the basis of a year of 365 days or 366 days in a leap year, as the case may be. Nothing herein shall be deemed to obligate Lender to obtain the funds for the Term Loan in any particular place or manner or to constitute
a representation by Lender that it has obtained or will obtain the funds for the Term Loan in any particular place or manner. 
  
 2.6. Interest After an Event of Default, (a) If an Event of Default exists (other than an Event of Default specified in Section 8.1(d) or
(e)), at the option of Lender, and (b) if an Event of Default specified in Section 8. 1(d) or (e) exists, automatically and without any action by Lender, the Obligations shall bear interest at a rate per annum equal to the
lesser of (i) the Default Rate and (ii) the Highest Lawful Rate. Such interest shall be payable on the earlier of demand and the Maturity Date, respectively, and shall accrue until the earlier of (a) waiver or cure (to the satisfaction of Lender) of
the applicable Event of Default, (b) agreement by Lender to rescind the charging of interest at the Default Rate, or (c) payment in full of the Obligations. Lender shall not be required to accelerate the maturity of the Term Loan, to exercise any
other rights or remedies under the Loan Documents, or to give notice to Borrower of the decision to charge interest at the Default Rate. Lender will undertake to notify Borrower, after the effective date, of the decision to charge interest at the
Default Rate. The determination of the Default Rate by Lender shall be prima facie evidence as to the facts thereof. 
  
 2.7. Late Charge. If a payment is made ten days or more late, Borrower will be charged (subject to Section 9.10), in addition to interest, a
delinquency charge of (a) 5% of the unpaid portion of the regularly scheduled payment, or (b) $250.00, whichever is less. Additionally, if the amount of the Term Loan (plus all accrued but unpaid interest) is not paid in full on the Maturity Date,
Borrower will be charged (subject to Section 9.10) a delinquency 

  

 18 

 
charge of (a) 5% of the sum of the outstanding principal balance (plus all accrued but unpaid interest), or (b) $250.00, whichever is less. Borrower agrees
with Lender that the charges set forth herein are reasonable compensation to Lender for the handling of such late payments. 
  
 2.8. Manner of Payment. (a) Each payment (including prepayments) by Borrower of the principal of or interest on the Term Loan and any other amount
owed under this Agreement or any other Loan Document shall be made not later than 11:00 a.m. on the date specified for payment under this Agreement to Lender at Lender’s Principal Office, in Dollars constituting immediately available funds. All
payments received by Lender after 11:00 a.m. shall be deemed received on the next succeeding Business Day and any applicable interest or fee shall continue to accrue. 
  
 (b) Except as provided in the definition of “Interest Period”, if any payment under this Agreement
or any other Loan Document shall be specified to be made upon a day which is not a Business Day, it shall be made on the next succeeding day which is a Business Day. Any extension of time shall in such case be included in computing interest and
fees, if any, in connection with such payment. 
  
 (c) Borrower shall pay principal, interest, fees and all other amounts due under the Loan Documents without deduction for set off or counterclaim or any deduction whatsoever. 
  
 (d) If some but less than all amounts due from Borrower are received by Lender, Lender shall apply such
amounts in the following order of priority: (i) to the payment of Lender’s expenses then due and payable, if any; (ii) to the payment of all other fees then due and payable; (iii) to the payment of interest then due and payable on the Term
Loan; (iv) to the payment of all other amounts not otherwise referred to in this Section 2.8(d) then due and payable under the Loan Documents; and (v) to the payment of principal then due and payable on the Term Loan. 
  
 2.9. Booking the Term Loan. Lender may make, carry or transfer the
Term Loan at, to or for the account of any of its offices or the office of any Affiliate of Lender. 
  
 2.10. Collateral. Payment of the Obligations is secured on the Agreement Date by (a) a perfected first priority security interest in all of the
authorized, issued and outstanding capital stock and other equity interests of EGA, RUIC and RGM, and all of the authorized, issued and outstanding capital stock and other equity interests of RHP in which Borrower has an interest, and (b) Guaranties
of the Obligations by each existing Guarantor. 
  
 ARTICLE III

  
 TAXES AND ILLEGALITY 
  
 3.1. Taxes. 
  
 (a) Except as provided below in this Section 3.1, any
and all payments by Borrower to or for the account of Lender under any Loan Document shall be made free and clear of and without deduction for any and all present or future income, stamp or other Taxes, duties, 

  

 19 

 
levies, imposts, deductions, assessments, fees, withholdings or similar charges, now or hereafter imposed, and all liabilities with respect thereto,
excluding, in the case of Lender, or its Principal Office, applicable lending office, or any branch or Affiliate thereof, Taxes imposed on or measured by its net income (including net income Taxes imposed by means of a backup withholding Tax),
franchise Taxes, branch Taxes, Taxes on doing business or Taxes measured by or imposed upon the overall capital or net worth of Lender or its Principal Office, applicable lending office, or any branch or Affiliate thereof, in each case imposed: (i)
by the jurisdiction under the Laws of which Lender or its Principal Office, applicable lending office, branch or Affiliate is organized or is located, or in which the chief executive office of Lender is located, or any nation within which such
jurisdiction is located or any political subdivision thereof; or (ii) by reason of any present or former connection between the jurisdiction imposing such Tax and Lender or its Principal Office, applicable lending office, branch or Affiliate (all
such Taxes, duties, levies, imposts, deductions, assessments, fees, withholdings or similar charges, and liabilities, the “Indemnified Taxes”). If Borrower shall be required by any Laws to deduct any Indemnified Taxes from or in
respect of any sum payable under any Loan Document to Lender, (i) the sum payable shall be increased as necessary to yield to Lender an amount equal to the sum it would have received had no such deductions been made, (ii) Borrower shall make such
deductions, (iii) Borrower shall pay the full amount deducted to the relevant taxation authority or other Governmental Authority in accordance with Applicable Laws, and (iv) promptly (but in no event later than thirty days) after the date of such
payment, Borrower shall furnish to Lender the original or a certified copy of a receipt evidencing payment thereof. 
  
 (b) In addition, Borrower shall pay any and all present or future stamp, court or documentary taxes and any other excise or property taxes
or charges or similar levies which arise from any payment made under any Loan Document or from the execution, delivery, performance, enforcement or registration of, or otherwise with respect to, any Loan Document (“Other Taxes”).

  
 (c) If Borrower shall be required to deduct
or pay any Indemnified Taxes or Other Taxes from or in respect of any sum payable under any Loan Document to Lender, Borrower shall also pay to Lender, at the time interest on the Obligations is paid, such additional amount that Lender specifies as
necessary to preserve the after tax yield (after factoring in all Taxes, including Taxes imposed on or measured by net income) Lender would have received if such Indemnified Taxes or Other Taxes had not been imposed. 
  
 (d) BORROWER SHALL INDEMNIFY LENDER FOR (i) THE FULL
AMOUNT OF INDEMNIFIED TAXES AND OTHER TAXES (INCLUDING ANY INDEMNIFIED TAXES OR OTHER TAXES IMPOSED OR ASSERTED BY ANY GOVERNMENTAL AUTHORITY ON AMOUNTS PAYABLE UNDER THIS SECTION) PAID BY LENDER, (ii) AMOUNTS PAYABLE UNDER SECTION
3.1(c) AND (iii) ANY LIABILITY (INCLUDING PENALTIES, INTEREST AND EXPENSES) ARISING THEREFROM OR WITH RESPECT THERETO, IN EACH CASE WHETHER OR NOT SUCH INDEMNIFIED TAXES OR OTHER TAXES WERE CORRECTLY OR LEGALLY IMPOSED OR ASSERTED BY THE
RELEVANT GOVERNMENTAL AUTHORITY. PAYMENT UNDER THIS SECTION 3.1(d) SHALL BE MADE WITHIN FIVE DAYS AFTER THE DATE LENDER MAKES A DEMAND THEREFOR. 
  

 20 

 3.2. Illegality. If Lender determines that any change in Law on or after the Agreement Date has
made it unlawful, or that any Governmental Authority on or after the Agreement Date has asserted that it is unlawful, for Lender or its applicable lending office to make, maintain or fund Eurodollar Rate Loans, or materially restricts the authority
of Lender to purchase or sell, or to take deposits of, Dollars in the applicable offshore Dollar market, or to determine or charge interest rates based upon the Eurodollar Basis, then, on notice thereof by Lender to Borrower, any obligation of
Lender to make or maintain Eurodollar Rate Loans shall be suspended until Lender notifies Borrower that the circumstances giving rise to such determination no longer exist. Upon the date of such notice, all Eurodollar Rate Loans shall convert to
Base Rate Loans. Lender agrees to designate a different lending office if such designation will avoid the need for such notice and will not, in the good faith judgment of Lender, otherwise be materially disadvantageous to Lender. 
  
 3.3. Inability to Determine Rates. If (a) Lender determines in
connection with any request for or maintenance of a Eurodollar Rate Loan or any determination of the Eurodollar Basis that (i) Dollar deposits are not being offered to banks in the applicable offshore Dollar market for the applicable amount and
applicable term, or (ii) adequate and reasonable means do not exist for determining the Eurodollar Basis, or (b) Lender notifies Borrower that the Eurodollar Basis for such Eurodollar Rate Loan does not adequately and fairly reflect the cost to
Lender of funding or maintaining such Eurodollar Rate Loan, Lender will promptly notify Borrower. Thereafter, the obligation of Lender to make or maintain Eurodollar Rate Loans shall be suspended until Lender notifies Borrower that Lender revokes
such notice. Upon the date of such notice, each Eurodollar Rate Loan will convert into a Base Rate Loan. 
  
 3.4. Increased Cost and Reduced Return; Capital Adequacy; Reserves on Eurodollar Rate Loans; Compensation for Losses. 
  
 (a) If Lender in good faith determines that as a result of
the introduction of or any change in or in the interpretation of any Law on or after the Agreement Date, or Lender’s compliance therewith, there shall be any increase in the cost to Lender of agreeing to make or making, funding or maintaining
Eurodollar Rate Loans, or a reduction in the amount received or receivable by Lender in connection with any of the foregoing (excluding for purposes of this Section 3.4(a) any such increased costs or reduction in amount resulting from (i)
Indemnified Taxes or Other Taxes (as to which Section 3.1 shall govern), (ii) changes in the basis of taxation of overall net income or overall gross income by the United States or any foreign jurisdiction or any political subdivision of
either thereof under the Laws of which Lender is organized or has its Principal Office or applicable lending office, and (iii) reserve requirements contemplated by Section 3.4(c)), then from time to time within five Business Days after demand
of Lender, Borrower shall pay to Lender such additional amounts as will compensate Lender for such increased cost or reduction. 
  
 (b) If Lender in good faith determines that the introduction of any Law regarding capital adequacy or any change therein or in the
interpretation thereof on or after the Agreement Date, or compliance by Lender (or its lending office) therewith, has the effect of reducing the rate of return on the capital of Lender or any corporation controlling Lender with respect to this
Agreement as a consequence of Lender’s obligations hereunder (taking into consideration its policies with respect to capital adequacy and Lender’s desired return on 

  

 21 

 
capital), then from time to time within five Business Days after demand of Lender, Borrower shall pay to Lender such additional amounts as will compensate
Lender for such reduction. 
  
 (c) Borrower shall
pay to Lender, as long as Lender shall be required under regulations of the Federal Reserve Board to maintain reserves with respect to liabilities or assets consisting of or including Eurocurrency funds or deposits (currently known as
“Eurocurrency liabilities”), additional costs on the unpaid principal amount of each Eurodollar Rate Loan equal to the actual costs of such reserves allocated to the Term Loan by Lender (as determined by Lender in good faith, which
determination shall constitute prima facie evidence as to the facts thereof), which shall be due and payable on each date on which interest is payable on the Term Loan, provided Borrower shall have received at least fifteen days’
prior notice of such additional interest from Lender. If Lender fails to give notice fifteen days prior to the relevant Interest Payment Date, such additional interest shall be due and payable fifteen days from receipt of such notice. 
  
 (d) Upon demand of Lender from time to time, Borrower shall
promptly compensate Lender for and hold Lender harmless from any loss, cost or expense incurred by it as a result of: 
  
 (i) any continuation, conversion, payment or prepayment of any Eurodollar Rate Loan on a day other than the last day of the Interest
Period for such Eurodollar Rate Loan (whether voluntary, mandatory, automatic, by reason of acceleration, or otherwise); or 
  
 (ii) any failure by Borrower to prepay, borrow, continue or convert any Eurodollar Rate Loan on the date or in the amount notified by
Borrower; 
  
 including any loss of anticipated profits and any
loss or expense arising from the liquidation or reemployment of funds obtained by Lender to maintain such Eurodollar Rate Loan or from fees payable to terminate the deposits from which such funds were obtained. Borrower shall also pay any customary
administrative fees charged by Lender in connection with the foregoing. 
  
 For purposes of calculating amounts payable by Borrower to Lender under this Section 3.4(d), Lender shall be deemed to have funded each Eurodollar Rate Loan made by it at the Eurodollar Basis for such
Eurodollar Rate Loan by a matching deposit or other borrowing in the offshore interbank market for Dollars for a comparable amount and for a comparable period, whether or not such Eurocurrency Rate Loan was in fact so funded. 
  
 3.5. Matters Applicable to all Requests for Compensation. Any demand
or notice delivered by Lender to Borrower claiming compensation under this Article III shall be in writing and shall certify (a) that one of the events described in this Article III has occurred, describing in reasonable detail the
nature of such event and (b) as to the amount or amounts for which Lender seeks compensation hereunder, setting forth in reasonable detail the basis for and calculations of such compensation. Such certification shall be conclusive in the absence of
manifest error. In determining such amount, Lender may use any reasonable averaging and attribution methods. 
  
 3.6. Survival. All of Borrower’s obligations under this Article III shall survive termination of the Commitment and payment in full of
all other Obligations. 
  

 22 

 ARTICLE IV 
  
 CONDITIONS PRECEDENT 
  
 4.1. Conditions Precedent. The obligation of Lender to make the Term Loan is subject to (a) receipt by Lender of the following items which are to
be delivered, in form and substance reasonably satisfactory to Lender and (b) satisfaction of the following conditions, in form and substance reasonably satisfactory to Lender: 
  
 (a) Borrower Certificate. A certificate of officers acceptable to Lender of Borrower certifying as to
(i) the incumbency of the officers signing such certificate and the Loan Documents to which it is a party, (ii) an original certified copy of its Articles of Incorporation or Certificate of Incorporation, as applicable, certified as true, complete
and correct as of a date not more than ten days prior to the Agreement Date by the appropriate authority of the State of Delaware, (iii) a copy of its By-Laws, as in effect on the Agreement Date, (iv) a copy of the resolutions of its Board of
Directors authorizing it to execute, deliver and perform the Loan Documents to which it is a party, (v) an original certificate or certificates of good standing, existence and qualification, as appropriate, issued by the appropriate authority or
authorities of the States of Delaware and Texas (certified as of a date not more than ten days prior to the Agreement Date), (vi) the accuracy of the representations and warranties in the Loan Documents, (vii) no Default or Event of Default exists,
and (viii) no Material Adverse Change having occurred. 
  
 (b) Obligor Certificate. A certificate of officers acceptable to Lender of each Obligor (other than Borrower) certifying as to (i) the incumbency of the officers signing such certificate and the Loan Documents to which it is a party,
(ii) if a corporation, an original certified copy of its Articles of Incorporation or Certificate of Incorporation, as applicable, certified as true, complete and correct as of a date not more than ten days prior to the Agreement Date by the
appropriate authority of its state of incorporation, (iii) if a limited liability company, an original certified copy of its Articles of Organization (or similar organization and governance document), certified as true, complete and correct as of a
date not more than ten days prior to the Agreement Date by the appropriate authority of its state of organization, (iv) if a limited partnership, an original certified copy of its Certificate of Limited Partnership (or similar organization or
governance document), certified as true, complete and correct as of a date not more than ten days prior to the Agreement Date by the appropriate authority of its jurisdiction of organization, (v) if a corporation, a copy of its By-Laws, as in effect
on the Agreement Date, (vi) if a limited liability company, a copy of its limited liability company or operating agreement (or similar organization and governance document), as in effect on the Agreement Date, (vii) if a limited partnership, a copy
of its partnership agreement (or similar organization or governance document), as in effect on the Agreement Date, (viii) a copy of the resolutions of the appropriate governance board authorizing it to execute, deliver and perform the Loan Documents
to which it is a party, and (ix) an original certificate or certificates of good standing, existence and qualification, as appropriate, issued by the appropriate authority or authorities of its state of organization and the State of Texas (certified
as of a date not more than ten days prior to the Agreement Date). 
  

 23 

 (c) Pledged Entity Certificate. A certificate of officers acceptable to Lender of
RUIC and each other Subsidiary any equity of which is subject to a Bank Lien certifying as to (i) the incumbency of the officers signing such certificate and the Loan Documents to which it is a party, (ii) if a corporation, an original certified
copy of its Articles of Incorporation or Certificate of Incorporation, as applicable, certified as true, complete and correct as of a date not more than ten days prior to the Agreement Date by the appropriate authority of its state of incorporation,
(iii) if a limited liability company, an original certified copy of its Articles of Organization (or similar organization and governance document), certified as true, complete and correct as of a date not more than ten days prior to the Agreement
Date by the appropriate authority of its state of organization, (iv) if a limited partnership, an original certified copy of its Certificate of Limited Partnership (or similar organization or governance document), certified as true, complete and
correct as of a date not more than ten days prior to the Agreement Date by the appropriate authority of its jurisdiction of organization, (v) if a corporation, a copy of its By-Laws, as in effect on the Agreement Date, (vi) if a limited liability
company, a copy of its limited liability company agreement or operating agreement (or similar organization and governance document), as in effect on the Agreement Date, (vii) if a limited partnership, a copy of its partnership agreement (or similar
organization or governance document), as in effect on the Agreement Date, and (viii) an original certificate or certificates of good standing, existence and qualification, as appropriate, issued by the appropriate authority or authorities of its
state of organization and the State of Texas (certified as of a date not more than ten days prior to the Agreement Date). 
  
 (d) Term Loan Note. The duly executed Term Loan Note, payable to the order of Lender, and in an amount equal to the Commitment.

  
 (e) Interest Rate Notice. Lender shall
have received, not less than three Business Days prior to the funding date of the Term Loan, an appropriately completed Interest Rate Notice signed by an Authorized Signatory of Borrower. 
  
 (f) Security Documents. The duly executed and
completed (i) Pledge Agreement executed by Borrower, dated as of the Agreement Date, granting to Lender a first priority Lien in the Collateral set forth therein, together with stock certificates evidencing all of the equity interest of each of
RUIC, EGA and RGM and all of the equity interest of RHP in which Borrower has any interest (which certificates shall not contain any restrictions on transfer not acceptable to Lender), (ii) undated, blank stock powers executed by Borrower of the
stock or other equity interest evidenced by such certificates (with signatures guaranteed as required by Lender); and (iii) confirmations of all Liens in all equity interest of each of RUIC, EGA and RGM and all of the equity interest of RHP in which
Borrower has any interest. 
  
 (g)
Guaranty. The Guaranty, duly executed by each Guarantor. 
  
 (h) UCC and Lien Searches. Searches of the Uniform Commercial Code, Tax lien, real property and other records as Lender may require. 
  
 (i) Opinion of Borrower’s and Obligors’ Counsel. Opinions of counsel to Borrower and each
other Obligor addressed to Lender and in form and substance satisfactory to Lender, dated the Agreement Date, and covering such matters incident to the transactions 

  

 24 

 
contemplated hereby and the Preferred Dividend as Lender or Special Counsel may reasonably request. 
  
 (j) Obligor Proceedings. Evidence that all corporate,
partnership and limited liability company proceedings of each Obligor and each other Person (other than Lender) taken in connection with the transactions contemplated by this Agreement, the other Loan Documents and the Preferred Dividend shall be
reasonably satisfactory in form and substance to Lender and Special Counsel; and Lender shall have received copies of all documents or other evidence which Lender or Special Counsel may reasonably request in connection with such transactions.

  
 (k) Compliance Certificate. A
Compliance Certificate, dated the Agreement Date with all calculations as of the most recent determination date and signed by an Authorized Signatory of each of Parent and Borrower, confirming compliance with the financial covenants set forth in
Sections 6.1 and 6.2. 
  
 (l)
Current Financial Statements. A copy of (i) all Current Financials, including (A) the audited annual consolidated Financial Statements, showing the financial condition and results of operations of Parent and its consolidated Subsidiaries as
of, and for the year ended on, December 31, 2003, together with the opinion of Auditors containing only qualifications and emphasis acceptable to Lender, and (B) the unaudited consolidated Financial Statements, showing the financial condition and
results of operations of Parent and its consolidated Subsidiaries as of, and for the fiscal quarter ended on, September 30, 2004, (ii) the audited annual statutory Financial Statements, showing the financial condition and results of operations of
each RIC as of, and for the year ended on, December 31, 2003, together with the opinion of Auditors containing only qualifications and emphasis acceptable to Lender, and (iii) the unaudited quarterly statutory Financial Statements, showing the
financial condition and results of operations of each RIC as of, and for the fiscal quarter ended on, September 30, 2004. 
  
 (m) Investment Portfolio and Policy. A schedule of all Existing Investments and a copy of the complete currently effective
Investment Policy of each RIC and Lender shall be satisfied with the investment portfolio of each RIC and the Investment Policy of each RIC. 
  
 (n) Existing Debt. A schedule of all Existing Debt, in detail satisfactory to Lender. 
  
 (o) Arbitration and Notice of Final Agreement. The
Arbitration and Notice of Final Agreement executed by all parties thereto. 
  
 (p) Representations and Warranties. All of the representations and warranties of Borrower, Parent, each Subsidiary and each other Obligor under this Agreement and each other Loan Document, which, pursuant to
Section 7.26, are made at and as of the time of the funding of the Term Loan, shall be true and correct when made, except to the extent applicable to a specific date, both before and after giving effect to the application of the proceeds of
the Term Loan. 
  
 (q) No Event of Default or
Default. There shall not exist an Event of Default or Default. 
  

 25 

 (r) Existing Litigation. A schedule of all Existing Litigation, in detail
satisfactory to Lender. 
  
 (s)
Litigation. There shall be no Litigation pending against, or, to Parent’s, Borrower’s or any Obligor’s knowledge, threatened against Parent, Borrower, any other Obligor, or any Subsidiary, or in any other manner relating
directly and adversely to Parent, Borrower, any other Obligor, or any Subsidiary, or any of their respective properties, in any court or before any arbitrator of any kind or before or by any Governmental Authority which could reasonably be expected
to have a Material Adverse Effect. 
  
 (t)
Material Adverse Change. There shall have occurred no change in the business, assets, operations, prospects or conditions (financial or otherwise) of Parent, Borrower, any other Obligor, or any Subsidiary since December 31, 2003, which caused
or could reasonably be expected to cause a Material Adverse Effect. 
  
 (u) Expenses. Reimbursement for all reasonable Attorney Costs incurred through the Agreement Date. 
  
 (v) Other Documents. In form and substance satisfactory to Lender and Special Counsel, such other documents, instruments and
certificates as Lender may reasonably require in connection with the transactions contemplated hereby. 
  
 ARTICLE V 
  
 AFFIRMATIVE COVENANTS 
  
 From the Agreement Date,
and so long as this Agreement is in effect and until payment in full of the Obligations and the performance of all other obligations of all Obligors under this Agreement and the other Loan Documents, Parent and Borrower will, and will cause each
Subsidiary to: 
  
 5.1. General Covenants. 
  
 (a) Payment of Taxes and Claims. Cause to be paid and
discharged all lawful Taxes imposed upon its income or profits, or upon its property before the same shall be in default, and all lawful claims for labor, rentals, materials and supplies which, if unpaid, might become a Lien upon any of its property
or any part thereof; provided, however, that such Person shall not be required to cause to be paid or discharged any such Tax, assessment or claim so long as the validity thereof shall be contested in good faith by appropriate
proceedings, and adequate book reserves shall be established with respect thereto, and such Person shall pay such Tax, charge or claim (i) before any property subject thereto shall be sold to satisfy a Lien (if the property subject to such Lien is
not subject to a Bank Lien), and (ii) before any property subject thereto shall be subject to a Lien to secure such Tax, assessment or claim (if the property which may be subject to such Lien is subject to a Bank Lien). 
  
 (b) Maintenance of Existence. Cause to be done all
things necessary to preserve and keep in full force and effect its corporate, limited liability, partnership, and insurance company existence, as appropriate. 
  

 26 

 (c) Preservation of Property. Keep its properties which are necessary to continue
business, whether owned in fee or otherwise, or leased, in good operating condition, ordinary wear and tear excepted, and comply with all material leases to which it is a party or under which it occupies property so as to prevent any material loss
or forfeiture thereunder. 
  
 (d)
Insurance. Maintain in force with financially sound and reputable insurers, policies with respect to its property and business against such casualties and contingencies (including public liability, larceny, embezzlement or other criminal
misappropriation insurance) and in such amounts as is customary in the case of Persons engaged in the same or similar lines of business of comparable size and financial strength. 
  
 (e) Compliance with Applicable Laws. Comply in all material respects with the requirements of all
applicable Laws and orders of any Governmental Authority, except where contested in good faith and by proper proceedings or where the failure to so comply could not reasonably be expected to have a Material Adverse Effect. 
  
 (f) Licenses. Obtain and maintain all material
licenses, permits, franchises or other governmental authorizations necessary to the ownership of its properties or to the conduct of the business of such Person; and comply with all Laws, guidelines and requirements, including but not limited to
risk based capital requirements, promulgated by any Governmental Authority or Insurance Regulator having authority over such Person. 
  
 5.2. Accounts, Reports and Other Information. Maintain a system of accounting in accordance with GAAP or SAP, as appropriate, consistently applied,
and Parent and Borrower shall furnish, or cause to be furnished, to Lender the following: 
  
 (a) Annual Financial Statements. 
  
 (i) As soon as available, but in any event within ninety days after the last day of each fiscal year of Parent, annual audited
consolidated Financial Statements, showing the consolidated financial condition and results of operations of Parent and its consolidated Subsidiaries as of, and for the year ended on, such last day, accompanied by (A) an opinion of Auditors
containing only qualifications (including qualifications as to the scope of the examination) and emphasis acceptable to Lender, which opinion shall state that said consolidated Financial Statements have been prepared in accordance with GAAP
consistently applied, and that the examination of Auditors in connection with such consolidated Financial Statements has been made in accordance with generally accepted auditing standards and, at all times that Parent is a Public Company, applicable
Securities Laws, and that said consolidated Financial Statements present fairly the consolidated financial condition of Parent and its consolidated Subsidiaries and their results of operations; (B) at all times that Parent is a Public Company, an
attestation report of Auditors as to Parent’s internal controls pursuant to Section 404 of Sarbanes-Oxley; (C) a certificate of the chief financial officer of Parent, which certificate shall state that said Financial Statements present fairly
the financial condition of Parent and its consolidated Subsidiaries and their results of operations; and (D) a description of all Contingent Debt and Off-Balance Sheet Liabilities of Parent and Subsidiaries. 
  
 (ii) With respect to each RIC, within fifteen days after the
first to occur of (A) the required filing date (as established by Law or the applicable Insurance 

  

 27 

 
Regulator), and (B) the date on which actually filed, audited annual Financial Statements, prepared by Auditors in accordance with SAP, showing the financial
condition and results of operations of such RIC, as of, and for the year ended on, such last day, accompanied by (1) an opinion of Auditors containing only qualifications (including qualifications as to the scope of the examination) and emphasis
acceptable to Lender, which opinion shall state that said Financial Statements have been prepared in accordance with SAP consistently applied, and that the examination of the Auditors in connection with such Financial Statements has been made in
accordance with generally accepted auditing standards and that said Financial Statements present fairly the financial condition of such RIC, and its results of operations; and (2) a description of all Contingent Debt and Off-Balance Sheet
Liabilities of such RIC. 
  
 (iii) With respect
to each RIC, within fifteen days after the first to occur of (A) the required filing date (as established by Law or the applicable Insurance Regulator), and (B) the date on which actually filed, annual Financial Statements prepared in the form of
convention blanks prescribed by NAIC, as filed with each Insurance Regulator. 
  
 (iv) With respect to each RIC, as soon as available and in any event within fifteen days after the required filing date (as established by Law or the applicable Insurance Regulator), a copy of the “Statement of
Actuarial Opinion” and “Management Discussion and Analysis” for such RIC (prepared in accordance with SAP) for each fiscal year of such RIC and as filed with the applicable Insurance Regulator in compliance with the requirements
thereof (or a report containing equivalent information for such RIC, if such RIC is not so required to file the foregoing with the applicable Insurance Regulator). 
  
 (b) Quarterly Financial Statements. 
  
 (i) Within forty-five days after the last day of each fiscal quarter (excluding the last fiscal quarter of
each fiscal year) of Parent, (A) unaudited consolidated Financial Statements (which consolidated Financial Statements shall be in format, prepared in a manner and based on such assumptions and procedures as are acceptable to Lender), showing the
consolidated financial condition and results of operations of Parent and its consolidated Subsidiaries as of, and for the quarter ended on, such last day (subject to year-end adjustment), and which shall include an income statement for the fiscal
year through such last day, prepared in accordance with GAAP; (B) a certificate of the chief financial officer of Parent, which certificate shall state that said Financial Statements present fairly the financial condition of Parent and its
consolidated Subsidiaries and their results of operations; and (C) a description of all Contingent Debt and Off-Balance Sheet Liabilities of Parent and its Subsidiaries. 
  
 (ii) With respect to each RIC, within forty-five days after the last day of each fiscal quarter (including
the last fiscal quarter of each fiscal year) of such RIC, unaudited quarterly Financial Statements, prepared in accordance with SAP, showing the financial condition and results of operations of such RIC as of, and for the quarter ended on, such last
day (subject to year-end adjustment), and which shall include an income statement for the fiscal year through such last day, and in the form of quarterly financial statements prescribed by NAIC, and including a report with respect to “Invested
Assets” as set forth on Schedule D on such financial statements, together with a description of all Contingent Debt and Off-Balance Sheet Liabilities of such RIC. 
  

 28 

 (iii) Within forty-five days after the end of each of the first three fiscal quarters and
within ninety days after the end of the last fiscal quarter of Parent, a Compliance Certificate executed by an Authorized Signatory who is a senior financial officer of each of Borrower and Parent. 
  
 (c) Annual Budget. As soon as available, but in any
event within sixty days after the first day of each fiscal year of Parent, a copy of the annual consolidated operating budget of Parent and Subsidiaries for such fiscal year in form and substance satisfactory to Lender. 
  
 (d) Yellowbook. If requested by Lender, within ten
days of any request, any NAIC required statement in the form of the “yellowbook” filed in any state where Parent or any Subsidiary does business. 
  
 (e) Other Reports. Promptly upon request by Lender, a copy of (i) such financial statements, reports, notices or proxy statements
sent by it to stockholders requested by Lender, (ii) such regular or periodic reports and any registration statements, prospectuses and written communications in respect thereof filed by it with any state insurance department, any securities
exchange, or with the SEC requested by Lender, and (iii) all press releases concerning it. 
  
 (f) Notice of Default. Promptly upon the happening of any condition or event which constitutes an Event of Default or Default, a
written notice specifying the nature and period of existence thereof and what action it is taking and propose to take with respect thereto. 
  
 (g) Notice of Litigation. Promptly upon becoming aware of the existence of any Litigation before any Governmental Authority,
arbitrator or mediator (but no later than ten days after the filing thereof) involving it, (i) which could reasonably be expected to involve its payment of $5,000,000 or more (net of insurance or reinsurance coverage), or (ii) which, under normal
operating standards, could result in a reserve being established in excess of $5,000,000 (net of insurance or reinsurance coverage), a written notice specifying the nature thereof and whether it will contest such proceeding. 
  
 (h) Notice of Claimed Default. Promptly upon becoming
aware that the holder of any note or any evidence of indebtedness or other security or payee of any obligation in an amount of $ 1,000,000 or more has given notice or taken any action with respect to a claimed default or event of default thereunder
(other than claims made pursuant to an Insurance Contract), a written notice specifying the notice given or action taken by such holder and the nature of the claimed default or event of default thereunder and what action it is taking or proposes to
take with respect thereto. 
  
 (i) Notice from
Governmental Authority. Promptly upon receipt thereof, information with respect to and copies of any notices received from any Governmental Authority relating to an order, ruling, statute or other Law or information which could reasonably be
expected to have a Material Adverse Effect. 
  
 (j) Investment Policy. Within (i) sixty days after the last day of each fiscal year of each RIC, a copy of the Investment Policy of such RIC applicable to the current fiscal 

  

 29 

 
year of such RIC, as approved by the board of directors or other appropriate governance body of such RIC, and (ii) within thirty days after any amendment to
or restatement of any Investment Policy of any RIC, a copy of such amendment or restatement as approved by the board of directors or other appropriate governance body of such RIC. 
  
 (k) Auditors’ Reports. Promptly upon receipt thereof, a copy of (i) each other report or
“management letter” submitted to Parent or any Subsidiary by Auditors in connection with any annual, interim or special audit made by them of the books of Parent or such Subsidiary and (ii) each report submitted to Parent or any Subsidiary
by any Auditors to the extent that such report, in the good faith opinion of Parent or such Subsidiary, identifies a condition, situation or event that has or is reasonably likely to have a Material Adverse Effect. 
  
 (l) Reserve Adequacy Report. If an Event of Default
exists, promptly following a request from Lender, a report prepared (at the expense of Borrower) by an independent actuarial consulting firm of recognized professional standing reasonably satisfactory to Lender reviewing the adequacy of reserves of
each RIC determined in accordance with SAP, which firm shall be provided access to or copies of all reserve analyses and valuations relating to the Insurance Business of each RIC in the possession of or available to Parent or any Subsidiary.

  
 (m) Other Regulatory Statements and
Reports. Promptly (i) after receipt thereof, copies of all triennial examinations and risk adjusted capital reports of any RIC, delivered to such Person by any Insurance Regulator, insurance commission or similar Governmental Authority, (ii)
after receipt thereof, a copy of the final report to each RIC from the NAIC for each fiscal year, as to such RIC’s compliance or noncompliance with each of the NAIC Tests, (iii) after receipt thereof, a copy of any notice of termination,
cancellation or recapture of any Reinsurance Agreement or Retrocession Agreement to which a RIC is a party to the extent such termination, cancellation or recapture is likely to have a Material Adverse Effect, (iv) and in any event within ten
Business Days after receipt thereof, copies of any notice of actual suspension, termination or revocation of any license of any RIC by any Insurance Regulator, including any request by an Insurance Regulator which commits a RIC to take or refrain
from taking any action or which otherwise affects the authority of such RIC to conduct its business, and (v) and in any event within thirty Business Days after Parent or any Subsidiary obtains knowledge thereof, notice of any actual change in the
insurance Laws enacted in any state in which any RIC is domiciled which could reasonably be expected to have a Material Adverse Effect. 
  
 (n) A.M. Best. Not later than fifteen days after receipt by Parent or any Subsidiary, a copy of (i) each A.M. Best report, if any,
with respect to Parent or any Subsidiary, and (ii) all correspondence from A.M. Best to Parent or any Subsidiary the contents of which (A) relate to a probable downgrade of the A.M. Best rating of any RIC or (B) describe or relate to a circumstance
that could reasonably be expected to have a Material Adverse Effect. 
  
 (o) Requested Information. With reasonable promptness, such other data, including any management reports to the Board of Directors of Parent or any Subsidiary, and information as from time to time may be
reasonably requested by Lender. 
  

 30 

 5.3. Inspection. (a) If no Event of Default exists, upon three Business Day’s prior notice,
and as often as may be reasonably requested, and (b) if an Event of Default exists, upon request by Lender, permit Lender or any representatives of Lender to visit and inspect any of its properties, to examine all books of account, records, reports
and other papers, to make copies and extracts therefrom, and to discuss the affairs, finances and accounts with its officers, employees and Auditors (and by this provision Parent authorizes Auditors to discuss with Lender and its representatives the
finances and affairs of Parent and Subsidiaries). All costs and expenses of Lender related to (a) the first such inspection during each fiscal year conducted when no Event of Default exists, and (b) each such inspection conducted when an Event of
Default exists, shall be a part of the Obligations and paid by Borrower to Lender within ten days after demand by Lender. 
  
 5.4. Compliance with ERISA. Comply with ERISA in all material respects, and (a) at all times make contributions within the time limits imposed by
Law to meet the minimum funding standards set forth in ERISA with respect to any Plan; (b) notify Lender as soon as reasonably practicable of any fact which it knows or should know, including but not limited to any Reportable Event, arising in
connection with any Plan which could reasonably be expected to result in termination thereof by the PBGC or for the appointment by a Governmental Authority of a trustee to administer the Plan; and (c) furnish to Lender upon such request such
additional information concerning any Plan as Lender may reasonably request. 
  
 5.5. Performance of Obligations. Perform all of its obligations under the Loan Documents. 
  
 5.6. Maintenance of Priority of Bank Liens. Upon the request of Lender from time to time, it shall perform such acts and duly authorize, execute,
acknowledge, deliver, file, and record such additional assignments, pledge agreements, security agreements and other agreements, documents, instruments, and certificates as Lender may deem necessary or appropriate in order to perfect and maintain
the Bank Liens in favor of Lender and preserve and protect the rights of Lender in respect of the Collateral. 
  
 5.7. Indemnity. BORROWER SHALL DEFEND, PROTECT, INDEMNIFY AND HOLD HARMLESS LENDER AND ITS AFFILIATES, AND EACH OF THEIR RESPECTIVE (INCLUDING
SUCH AFFILIATES’) OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, ATTORNEYS, SHAREHOLDERS AND CONSULTANTS (INCLUDING, WITHOUT LIMITATION, THOSE RETAINED IN CONNECTION WITH THE SATISFACTION OR ATTEMPTED SATISFACTION OF ANY OF THE CONDITIONS SET FORTH
HEREIN) OF EACH OF THE FOREGOING (COLLECTIVELY, “INDEMNITEES”) FROM AND AGAINST ANY AND ALL LIABILITIES, OBLIGATIONS, LOSSES, DAMAGES, PENALTIES, ACTIONS, JUDGMENTS, SUITS, CLAIMS, COSTS, EXPENSES AND DISBURSEMENTS OF
ANY KIND OR NATURE WHATSOEVER (INCLUDING, WITHOUT LIMITATION, THE ATTORNEY COSTS OF COUNSEL FOR SUCH INDEMNITEES IN CONNECTION WITH ANY INVESTIGATIVE, ADMINISTRATIVE OR JUDICIAL PROCEEDING, WHETHER OR NOT SUCH INDEMNITEES SHALL BE DESIGNATED A PARTY
THERETO), IMPOSED ON, INCURRED BY, OR ASSERTED AGAINST SUCH INDEMNITEES (WHETHER DIRECT, INDIRECT OR CONSEQUENTIAL AND 

  

 31 

 
WHETHER BASED ON ANY FEDERAL, STATE, OR LOCAL LAWS AND REGULATIONS, UNDER COMMON LAW OR AT EQUITABLE CAUSE, OR ON CONTRACT, TORT OR OTHERWISE, ARISING
FROM OR CONNECTED WITH THE PAST, PRESENT OR FUTURE OPERATIONS OF PARENT OR ANY SUBSIDIARY OR THEIR RESPECTIVE PREDECESSORS IN INTEREST, OR THE PAST, PRESENT OR FUTURE ENVIRONMENTAL CONDITION OF PROPERTY OF PARENT OR ANY SUBSIDIARY), IN ANY MANNER
RELATING TO OR ARISING OUT OF THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR ANY ACT, EVENT OR TRANSACTION OR ALLEGED ACT, EVENT OR TRANSACTION RELATING OR ATTENDANT THERETO, THE MAKING OF THE TERM LOAN, INCLUDING IN CONNECTION WITH, OR AS A RESULT,
ANY NEGLIGENCE OF LENDER (OTHER THAN THOSE MATTERS RAISED EXCLUSIVELY BY A PARTICIPANT AGAINST LENDER AND NOT BORROWER), OR THE USE OR INTENDED USE OF THE PROCEEDS OF THE TERM LOAN, OR IN CONNECTION WITH ANY INVESTIGATION OF ANY POTENTIAL MATTER
COVERED HEREBY, BUT EXCLUDING ANY CLAIM OR LIABILITY THAT ARISES AS THE RESULT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY INDEMNITEE, AS FINALLY JUDICIALLY DETERMINED BY A COURT OF COMPETENT JURISDICTION (COLLECTIVELY,
“INDEMNIFIED MATTERS”). IN ADDITION, BORROWER SHALL PERIODICALLY, UPON REQUEST, REIMBURSE EACH INDEMNITEE FOR ITS REASONABLE LEGAL AND OTHER ACTUAL EXPENSES (INCLUDING THE COST OF ANY INVESTIGATION AND PREPARATION)
INCURRED IN CONNECTION WITH ANY INDEMNIFIED MATTER. THE REIMBURSEMENT, INDEMNITY AND CONTRIBUTION OBLIGATIONS UNDER THIS SECTION SHALL BE IN ADDITION TO ANY LIABILITY WHICH BORROWER MAY OTHERWISE HAVE, SHALL EXTEND UPON THE SAME TERMS AND
CONDITIONS TO EACH INDEMNITEE, AND SHALL BE BINDING UPON AND INURE TO THE BENEFIT OF ANY SUCCESSORS, ASSIGNS, HEIRS AND PERSONAL REPRESENTATIVES OF BORROWER, LENDER AND ALL OTHER INDEMNITEES. THIS SECTION SHALL SURVIVE ANY TERMINATION OF THIS
AGREEMENT AND PAYMENT OF THE OBLIGATIONS. 
  
 ARTICLE VI

  
 NEGATIVE COVENANTS 
  
 From the Agreement Date and so long as this Agreement is in effect and until
payment in full of the Obligations and the performance of all other obligations of all Obligors under this Agreement and the other Loan Documents: 
  
 6.1. Consolidated Net Worth. Parent shall not permit Consolidated Net Worth to be less than $125,000,000 at any time. 
  
 6.2. Total Adjusted Capital. Parent shall not permit Total Adjusted
Capital of RUIC to be less than the greater of (a) $125,000,000 and (b) the amount required for Risk-Based Capital of RUIC to equal 250%, as at the last day of any fiscal quarter of RUIC. 
  

 32 

 6.3. Limitation on Debt. Neither Parent nor any Subsidiary shall create, incur, assume, become or
be liable in any manner in respect of, or suffer to exist, any Debt except Permitted Debt. 
  
 6.4. Limitation on Liens. Neither Parent nor any Subsidiary shall create or suffer to be created or to exist any Lien upon any of its properties or assets except Permitted Liens. 
  
 6.5. Issuance of Stock. Parent will not, and will not permit any
Subsidiary to, directly or indirectly issue, sell, assign, pledge, or otherwise encumber or dispose of any shares of such Subsidiary’s capital stock, partnership interest, limited liability company interest, or other equity interest (or
warrants, rights or options to acquire capital stock, partnership interest, limited liability company interest, or other equity interest) of such Subsidiary, except (i) Liens created pursuant to (A) the Loan Documents or (B) Laws, which Liens secure
only the Obligations, (ii) dispositions of capital stock, partnership interest, limited liability company interest and other equity interest permitted pursuant to Section 6.7, (iii) the issuance and sale of capital stock, partnership
interest, limited liability company interest, and other equity interest of Subsidiaries (other than Unrestricted Subsidiaries) to Borrower or to a wholly-owned Subsidiary of Borrower; provided, no Event of Default or Default exists prior to
or after giving effect to such issuance and sale, (iv) the issuance and sale of capital stock, limited liability company interest and other equity interest of an Unrestricted Subsidiary to Borrower in compliance with Section 6.6(c), and (v)
to qualify directors if required by Applicable Law. 
  
 6.6.
Acquisition of Assets. Borrower shall not, and shall not permit any Subsidiary to, acquire any assets, property or business of any Person, or participate in any joint venture, or create or acquire any Subsidiary, except (a) assets acquired in
the ordinary course of business, (b) Permitted Acquisitions, (c) Borrower may acquire the capital stock, limited liability company interest or other equity interest of an Unrestricted Subsidiary; provided (i) both before and after giving
effect thereto no Default or Event of Default shall exist, (ii) the aggregate consideration paid to acquire all such capital stock, limited liability company interest and other equity interests of and Investments in all Unrestricted Subsidiaries
from and after the Agreement Date shall not exceed $15,000,000, and (iii) promptly after the acquisition of such Unrestricted Subsidiary, (A) Borrower delivers, and causes to be delivered, to Lender a notice stating the name, type of entity and
jurisdiction of organization of such Unrestricted Subsidiary, the business to be conducted by such Unrestricted Subsidiary, and the amount of stock, limited liability company interest and other equity interest of such Unrestricted Subsidiary
(expressed as percentage of all outstanding capital stock, limited liability company interest or other equity interest) owned by Borrower and (B) such Unrestricted Subsidiary and Borrower execute and deliver, and cause to be executed and delivered,
each of the documents applicable to it described in Sections 6.6(d)(1), (4), (5), (6) and (9), and (d) provided both prior to and after giving effect thereto no Default or Event of Default shall exist,
Borrower may form new wholly-owned Subsidiaries which are corporations or limited liability companies which will engage in businesses in compliance with Section 6.15 if prior to each such new Subsidiary conducting any activities other than
(i) filing its organizational documents with the appropriate authority of one of the United States, (ii) adopting its bylaws, operating agreement or other governance document and (iii) obtaining consideration for the issuance of its equity in an
aggregate amount equal to the lesser of (A) the minimum initial capital required by Law and (B) $5,000, Borrower or such new Subsidiary delivers or causes to be delivered to Lender (in such number of counterparts as Lender may reasonably require):

  
 (1) A certificate of officers acceptable to
Lender of such Subsidiary certifying as to (i) the incumbency of the officers signing such certificate and the Loan Documents to which it is a party, (ii) if a corporation, an original certified copy of its Articles of Incorporation or Certificate
of Incorporation, as applicable, certified as true, complete and correct by the appropriate authority of its state of incorporation as of a date not more than ten days prior to the date such certificate is delivered to Lender, (iii) if a limited
liability company, an original certified copy of its Articles of Organizations (or similar organization and governance document), certified as true, complete and correct by the appropriate authority of its state of organization as of a date not more
than ten days prior to the date such certificate is delivered to Lender, (iv) if a corporation, a copy of its bylaws, as in effect on the date such certificate is delivered to Lender, (v) if a limited liability company, a copy of its operating
agreement (or similar organization and governance document), as in effect on the date such certificate is delivered to Lender, (vi) a copy of the resolutions of the appropriate governance board authorizing it to execute, deliver and perform the Loan
Documents to which it is a party, and (vii) an original certificate of good standing and existence issued by the appropriate authority of its state of organization (certified as of a date not more than ten days prior to the date such certificate is
delivered to Lender). 
  

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 (2) The duly executed Guaranty of such Subsidiary (if such Subsidiary is not a RIC).

  
 (3) The duly executed and completed (i)
pledge agreement (or amendment to an existing pledge agreement), granting to Lender a first priority Lien in all equity of such Subsidiary (if such Subsidiary is not a wholly-owned Subsidiary of a RIC), together with stock or other certificates
evidencing all of the equity interest of such Subsidiary (which certificates shall not contain any restrictions on transfer not acceptable to Lender), (ii) undated, blank stock powers (with signatures guaranteed as required by Lender) and (iii)
confirmations of all Liens in all equity interest of such Subsidiary. 
  
 (4) Reimbursement of Lender’s reasonable expenses related to the formation or acquisition of such new Subsidiary, including Attorney Costs. 
  
 (5) Searches of the Uniform Commercial Code, Tax lien and other records as Lender may require. 

 
 (6) Opinions of counsel to Borrower and such Subsidiary
addressed to Lender and covering such matters incident to such new Subsidiary and the Loan Documents as Lender or Special Counsel may reasonably request. 
  
 (7) A Notice of Final Agreement executed by such Subsidiary (if such Subsidiary is not a RIC or a wholly-owned Subsidiary of a RIC).

  
 (8) Not more than thirty days prior to and
not less than ten days prior to the date of on which such new Subsidiary proposes to commence business operations, information and a Compliance Certificate demonstrating pro forma compliance with the terms of this Agreement through the
Maturity Date and that no Default or Event of Default exists, after giving effect to such creation and operation of such Subsidiary. 
  

 34 

 (9) In form and substance satisfactory to Lender and Special Counsel, such other
documents, instruments and certificates as Lender may reasonably require in connection with the formation of such new Subsidiary. 
  
 6.7. Disposition of Assets. Neither Parent nor any Subsidiary shall directly or indirectly, sell, lease, abandon or otherwise dispose of all or any
portion of any of its properties (including any capital stock or other equity interest of Borrower or any Subsidiary) and assets except (a) assets disposed of in the ordinary course of business and for full and fair consideration, (b) Borrower may
sell all or any equity of any Subsidiary (other than RUIC) for an amount equal to the fair market value of such equity; provided, both prior to and after giving effect thereto no Default or Event of Default exists, and (c) Borrower may sell
all or any of its interest in Seguros for an amount equal to the fair market value of such interest; provided, both prior to and after giving effect thereto no Default or Event of Default exists. 
  
 6.8. Merger and Consolidation. Neither Parent nor any Subsidiary shall
directly or indirectly consolidate with or merge into any other Person, or permit any other Person to consolidate with or merge into it; provided, (a) any Person (other than a RIC) may merge with any Subsidiary (other than a RIC) if such
Subsidiary is the surviving entity and a Guarantor, (b) any RIC may merge with any other RIC if either all of the equity of the surviving RIC is subject to a perfected, first priority Bank Lien or owned by another Subsidiary and all of the equity of
such Subsidiary is subject to a perfected, first priority Bank Lien, and (c) (i) both prior to and after giving effect thereto no Default or Event of Default shall exist, and (ii) not more than thirty days prior to and not less than ten days prior
to the date of the proposed merger or consolidation, Lender receives information and a Compliance Certificate demonstrating pro forma compliance with the terms of this Agreement through the Maturity Date and that no Default or Event of
Default exists, after giving effect to such merger or consolidation. 
  
 6.9. Dividends, Distributions and Stock. Parent shall not declare or pay any Dividend; provided, Parent may declare and pay (a) the Preferred Dividend, (b) cash Dividends not constituting a return of capital if (i) both prior
to and after giving effect thereto no Default or Event of Default shall exist, and (ii) not more than thirty days prior to and not less than ten days prior to the date of payment of the proposed cash Dividend, Lender receives information and a
Compliance Certificate demonstrating that no Default or Event of Default exists after giving effect to such Dividend, and (c) Dividends in respect of the Preferred Stock, which Dividends (i) are payable only in Preferred Stock or (ii) constitute a
conversion of such Preferred Stock into common stock of Parent issued in connection with an initial or secondary public offering of capital stock of Parent. 
  
 6.10. Restrictive Agreements. Neither Parent nor any Subsidiary will enter into or be subject to any agreement (other than this Agreement or any
other Loan Document) that (a) limits the ability (i) of any Subsidiary to make Dividends to Borrower, RUIC or any Guarantor or to otherwise transfer property to Borrower, RUIC or any Guarantor, (ii) of any Subsidiary to guarantee the Obligations or
(iii) of Parent or any Subsidiary to create, incur, assume or suffer to exist Liens on property of such Person; or (b) requires the grant of a Lien to secure an obligation of such Person if a Lien is granted to secure another obligation of such
Person. 
  

 35 

 6.11. Advances, Investments and Loans. Borrower will not, and will not permit any Subsidiary to,
make or maintain any Investment, except: 
  
 (a)
Borrower and Subsidiaries (other than a RIC) may, subject to and in accordance with Applicable Law, invest in (i) cash, (ii) Cash Equivalents, and (iii) Investment Grade Securities. 
  
 (b) Each RIC may, subject to and in accordance with Applicable Law, invest in (i) cash, (ii) Cash
Equivalents, (iii) Investment Grade Securities, and (iv) Eligible Equities. 
  
 (c) Borrower and Subsidiaries may, subject to and in accordance with Applicable Law, invest in other Investments having a purchase price not exceeding, in the aggregate for Borrower and all Subsidiaries, the
Investment Amount. 
  
 (d) Borrower and
Subsidiaries may acquire and hold receivables owing to them in the ordinary course of business and payable or dischargeable in accordance with customary trade terms. 
  
 (e) Loans and advances to employees for business related travel expenses, moving expenses and other similar
expenses, in each case incurred in the ordinary course of business and loans and advances to related parties not exceeding $500,000 in the aggregate for Borrower and Subsidiaries at any one time outstanding. 
  
 (f) Investments acquired by Borrower or any Subsidiary (i)
in exchange for any other investment held by Borrower or such Subsidiary in connection with or as a result of a bankruptcy, workout, reorganization or recapitalization of the issuer of such other investment or (ii) as a result of a foreclosure by
Borrower or any Subsidiary with respect to any secured investment or other transfer of title with respect to any secured investment in default. 
  
 (g) Existing Investments in Subsidiaries in existence on the Agreement Date. 
  
 (h) Other Existing Investments which have been reviewed and
approved by Lender and are identified on Schedule 7.9. 
  
 (i) Investments permitted pursuant to Sections 6.6 and 6.8. 
  
 (j) Loans by a Subsidiary (other than Borrower or a RIC) to independent insurance agents appointed by a RIC; provided the aggregate
outstanding principal of all such loans made by all such Subsidiaries shall not exceed $ 1,000,000 at any time. 
  
 6.12. ERISA. Neither Parent nor any Subsidiary shall permit the funding requirements of ERISA with respect to any Plan ever to be less than the
minimum required by ERISA or the regulations thereunder, or any Plan ever to be subject to involuntary termination proceedings. 
  
 6.13. Assignment. Neither Parent nor any Subsidiary shall, directly or indirectly, assign or transfer, or attempt to do so, any rights, duties or
obligations under the Loan Documents. 
  

 36 

 6.14. Transactions with Affiliates. Neither Parent nor any Subsidiary shall carry on any
transaction with an Affiliate except at arm’s length and in the ordinary course of business. 
  
 6.15. Business. Neither Borrower nor any Subsidiary shall engage to any substantial extent in any line or lines of business activity or any
businesses related thereto not engaged in on the Agreement Date. No RIC shall engage in Insurance Business other than the types of coverage in which a RIC engages in as of the Agreement Date. Parent shall not conduct any business other than the
ownership of capital stock of Borrower. Borrower shall not conduct any business other than ownership of capital stock and other equity interests of its Subsidiaries and other activities incidental to Borrower being a holding company for Subsidiaries
engaged in business operations. 
  
 6.16. Use of Proceeds.
Borrower shall not use the proceeds of the Term Loan for any purpose other than to declare and pay a cash Dividend to Parent and Parent shall not use such Dividend for any purpose other than to declare and pay the Preferred Dividend. 

 
 ARTICLE VII 
  
 REPRESENTATIONS AND WARRANTIES 
  
 Borrower and Parent, jointly and severally, represent, warrant, and covenant, as follows: 
  
 7.1. Organization and Qualification. Parent and each Subsidiary (a) is
a corporation, limited partnership, limited liability company, or insurance corporation, respectively, duly organized, validly existing, and in good standing under the Laws of its jurisdiction of organization; (b) is duly licensed and in good
standing as a foreign corporation, limited partnership, limited liability company, or insurance corporation, respectively, in each jurisdiction in which the nature of the business transacted or the property owned is such as to require licensing as
such; and (c) possesses all requisite corporate, limited partnership, limited liability company, insurance corporation, and other necessary power, authority and legal right, to execute, deliver and comply with the terms of the Loan Documents to be
executed by it, and for which no approval or consent of any Governmental Authority (including any Insurance Regulator) which has not been obtained is required. 
  

7.2. Authorization; Validity. The Board of Directors, partners, managers or other appropriate governance body of Borrower, Parent and each
Subsidiary have duly authorized the execution and delivery of the Loan Documents to which Borrower, Parent or such Subsidiary is a party and the performance of their respective terms. No consent of the stockholders, partners, members or other
equityholders of Borrower, Parent or any Subsidiary is required as a prerequisite to the validity and enforceability of any Loan Document. Borrower, Parent and each Subsidiary has full corporate, partnership, limited liability company, and other
power, authority and legal right to execute and deliver and to perform and observe the provisions of all Loan Documents to which Borrower, Parent or such Subsidiary is a party. Each of the Loan Documents is the legal, valid and binding obligation of
each Obligor which is a party thereto, enforceable in accordance with its respective terms, subject as to enforcement of remedies to any Debtor Relief Laws. 
  

 37 

 7.3. Capitalization. The issued and outstanding capital stock, partnership interest, limited
liability company interest and other equity of Borrower, Parent and each Subsidiary is duly authorized, validly issued, fully paid and nonassessable, and free of the preemptive rights of any Person. Schedule 7.3 sets forth the correct name as
set forth in the currently effective organizational documents, the respective jurisdiction of organization, organization identification number issued by the jurisdiction of organization, the authorized capital stock, partnership interest, limited
liability company interest and other equity, the issued and outstanding capital stock, partnership interest, limited liability company interest and other equity, and the percentage ownership (by class of equity) of Borrower, Parent and each
Subsidiary. Except as described on Schedule 7.3, neither Parent nor any Subsidiary has outstanding any securities convertible into or exchangeable for its capital stock, partnership interest, limited liability company interest, or other
equity interest or outstanding any rights to subscribe for or to purchase, or any options for the purchase of, or any agreements providing for the issuance (contingent or otherwise) of, or any calls, commitments or claims of any character relating
to, its capital stock or other equity interest. Parent has no Subsidiary other than those set forth on Schedule 7.3. 
  
 7.4. Financial Statements. The Financial Statements (including the Current Financials and the Financial Statements described in Section
4.1(1)) of Parent and Subsidiaries heretofore furnished to Lender are complete and correct in all material respects and prepared in accordance with GAAP or SAP, as appropriate, and fairly present the financial condition of Parent and
Subsidiaries as of the dates indicated and for the periods involved. There are no Contingent Debts, liabilities for Taxes, unusual forward or long term commitments or unrealized or anticipated losses from any unfavorable commitments, any of which
are material in amount in relation to the financial condition of Parent or any Subsidiary, except for Existing Debt. Since the date of the Current Financials and the Financial Statements described in Section 4.1(1), there has been no Material
Adverse Change. Neither Parent nor any Subsidiary has any obligation with respect to any Off-Balance Sheet Liability except as described on Schedule 7.4. 
  

7.5. Compliance With Laws and Other Matters. None of Borrower, Parent, any Subsidiary or any other Obligor is, nor will the execution, delivery
and performance and compliance with the terms of the Loan Documents cause Borrower, Parent, any Subsidiary or any other Obligor to be, (a) in violation of its corporate charter or bylaws or other organizational or governance documents, (b) in
violation of any Law in any respect which could have any Material Adverse Effect, or (c) in default (nor has any event occurred which, with notice or lapse of time or both, could constitute a default) under any agreement to which Borrower, Parent,
any Subsidiary or any other Obligor is a party or subject, which default could have a Material Adverse Effect. 
  
 7.6. Preferred Dividend. The Board of Directors of Parent has duly declared authorized the Preferred Dividend. No consent of the stockholders of
Parent or any other Person is required as a prerequisite to the declaration and payment of the Preferred Dividend. Parent has full corporate power, authority and legal right to declare and pay the Preferred Dividend. The declaration and payment of
the Preferred Dividend will not cause Parent to be (a) in violation of its Certificate of Incorporation or bylaws or other organizational or governance documents, (b) in violation of any Law in any respect, or (c) in default (nor has any event
occurred which, with notice or lapse of time or both, could constitute a default) under any agreement to which Parent or any Subsidiary is a party or subject. 
  

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 7.7. Litigation. There is no Litigation pending against or, to the knowledge of Borrower, Parent,
any Subsidiary or any other Obligor, threatened against or affecting Borrower, any Subsidiary or any other Obligor or its assets or properties which involves the probability of any final judgment or liability which may result in a Material Adverse
Change. There are no outstanding or unpaid final judgments against Borrower, Parent, any Subsidiary or any other Obligor. 
  
 7.8. Debt. Since the date of the latest of the Current Financials, neither Parent nor any Subsidiary has incurred any Debt except Permitted Debt.
Schedule 7.8 sets forth a true and complete list of all Existing Debt in the principal amount (as to each separate item of Debt) equal to or greater than $1,000,000, in each case showing the aggregate principal amount thereof, the name of the
lender in respect thereof and the name of the respective borrower and any other entity which has directly or indirectly guaranteed or secured such Debt. 
  
 7.9. Investments. Schedule 7.9 sets forth a true and complete list of all Existing Investments. 
  
 7.10. Litigation. Schedule 7.10 sets forth a true and complete
list of all Existing Litigation. 
  
 7.11. Title to Properties.
Borrower, Parent, each other Obligor and each Subsidiary have (a) full corporate, partnership, limited liability company, insurance corporation and individual, as appropriate, power, authority and legal right to own and operate the properties
which it now owns, and to carry on the lines of business in which it is now engaged, and (b) good and marketable title to its owned properties, subject to no Lien of any kind, except Permitted Liens. 
  
 7.12. Taxes. Borrower, Parent, each other Obligor and each Subsidiary
have filed all federal, state and other income tax returns which are required to be filed and has paid all Taxes as shown on said returns, and all Taxes due or payable without returns and all assessments received to the extent that such Taxes or
assessments have become due. All Tax liabilities of Borrower, Parent, each other Obligor and each Subsidiary are adequately provided for on the books of Borrower, Parent, such Obligor and such Subsidiary, including interest and penalties. No income
tax liability of a material nature has been asserted by taxing authorities for Taxes in excess of those already paid, except such Taxes being contested in good faith by appropriate proceedings. There is no material action, suit, proceeding,
investigation, audit, or claim now pending or, to the knowledge of Borrower, Parent, any other Obligor or any Subsidiary, threatened by any authority regarding any Taxes relating to Borrower, Parent, such Obligor or such Subsidiary. None of
Borrower, Parent, any other Obligor or any Subsidiary has entered into an agreement or waiver or been requested to enter into an agreement or waiver extending any statute of limitations relating to the payment or collection of taxes of Borrower,
Parent, such Obligor or such Subsidiary, or is aware of any circumstances that would cause the taxable years or other taxable periods of Borrower, Parent, such Obligor or such Subsidiary not to be subject to the normally applicable statute of
limitations. 
  

 39 

 7.13. Use of Proceeds. 
  
 (a) Proceeds of the Term Loan will be used by Borrower to declare and pay a cash Dividend to Parent, and for
no other purpose. Proceeds of such Dividend will be used by Parent to declare and pay the Preferred Dividend, and for no other purpose. 
  
 (b) None of Borrower, Parent or any Subsidiary is engaged principally, or as one of its important activities, in the business of extending
credit for the purpose of purchasing or carrying margin stock (within the meaning of Regulation U of the Board of Governors of the Federal Reserve System) and no part of the proceeds of the Term Loan will be used to purchase or carry any margin
stock or to extend credit to others for the purpose of purchasing or carrying any margin stock. Not more than 25% of the assets of Borrower, Parent or any Subsidiary are margin stock. None of Borrower, Parent, any other Obligor or any Subsidiary or
any agent acting on its behalf has taken or will take any action which might cause this Agreement or any of the Loan Documents to violate any regulation of the Board of Governors of the Federal Reserve System or to violate the Securities Exchange
Act of 1934, in each case as in effect now or as the same may hereafter be in effect. 
  
 7.14. Possession of Franchises, Licenses, Etc. Borrower, Parent, each other Obligor and each Subsidiary possess all franchises, certificates, licenses, permits and other authorizations from all Governmental
Authorities, free from burdensome restrictions, that (a) are necessary for the ownership, maintenance and operation of its properties and assets, and (b) the loss of possession of which could have a Material Adverse Effect, and none of Borrower,
Parent, any other Obligor or any Subsidiary is in violation of any thereof. 
  
 7.15. Leases. Borrower, Parent, each other Obligor and each Subsidiary enjoy peaceful and undisturbed possession of all leases necessary for the operation of its properties and assets the loss of possession of
which could have a Material Adverse Effect. All such leases are valid and subsisting and are in full force and effect. 
  
 7.16. Disclosure. Neither this Agreement nor any other document, certificate or statement furnished to Lender by or on behalf of Borrower, Parent,
any other Obligor or any Subsidiary in connection herewith contains any untrue statement of a material fact or omits to state a material fact necessary in order to make the statements contained herein and therein not misleading. There is no fact
known to Borrower, Parent, any other Obligor or any Subsidiary and not known to the public generally which materially adversely affects its assets or in the future may (so far as Borrower, Parent, such Obligor or such Subsidiary can now foresee)
result in a Material Adverse Effect, which has not been set forth in this Agreement or in the documents, certificates and statements furnished to Lender by or on behalf of Borrower, Parent, such Obligor or such Subsidiary prior to the date hereof in
connection with the transactions contemplated hereby. 
  
 7.17.
Security Interests. On and after the Agreement Date, the Pledge Agreement creates, as security for the Obligations, valid and enforceable perfected security interests in and Liens in favor of Lender on all of the Collateral subject thereto,
superior to and prior to the rights of all third persons and subject to no other Liens. At all times on or after the Agreement Date, Borrower has good and marketable title to all Collateral described in the Pledge Agreement free 

  

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and clear of all Liens (except as created pursuant to the Pledge Agreement). No filings or recordings are required in order to perfect the security interests
created under the Pledge Agreement except for filings or recordings which shall have been made, or provided for to the reasonable satisfaction of Lender, upon or prior to the Agreement Date. 
  
 7.18. ERISA. Schedule 7.18 sets forth each Plan. None of
Borrower, Parent, any Subsidiary and any ERISA Affiliate has (a) incurred any material accumulated funding deficiency within the meaning of ERISA, or (b) incurred any material liability to the PBGC in connection with any Plan established or
maintained by it. No Reportable Event has occurred with respect to any Plan which could reasonably be expected to result in a Material Adverse Change. No Plan is in the process of termination or has an Unfunded Current Liability. 
  
 7.19. Subsidiaries. There are no restrictions on Parent or any
Subsidiary which prohibit or otherwise restrict the transfer of cash or other assets from any Subsidiary to Borrower, other than prohibitions or restrictions existing under or by reason of (a) this Agreement or the other Loan Documents, and (b)
restrictions of Laws and Governmental Authorities (including Insurance Regulators) having jurisdiction over Parent or a Subsidiary. 
  
 7.20. Intellectual Property, Etc. Parent and each Subsidiary have obtained all material patents, trademarks, service marks, trade names,
copyrights, licenses and other rights, free from burdensome restrictions, that are necessary for the operation of its businesses as presently conducted and as proposed to be conducted. 
  
 7.21. Labor Relations, Collective Bargaining Agreements, (a) Schedule 7.21 is a list and description
(including dates of termination) of all collective bargaining agreements between or applicable to Parent and each Subsidiary and any union, labor organization or other bargaining agent in respect of the employees of Parent and such Subsidiary.

  
 (b) None of Parent or any Subsidiary is
engaged in any unfair labor practice that is reasonably likely to have a Material Adverse Effect. There is (i) no significant unfair labor practice complaint pending against Parent or any Subsidiary or threatened in writing against any of them,
before the National Labor Relations Board, and no significant grievance or significant arbitration proceeding arising out of or under any collective bargaining agreement is now pending against Parent or any Subsidiary or threatened in writing
against any of them, (ii) no significant strike, labor dispute, slowdown or stoppage is pending against Parent or any Subsidiary or threatened in writing against Parent or any Subsidiary and (iii) to the best knowledge of Parent and each Subsidiary,
no union representation question exists with respect to the employees of Parent or any Subsidiary, except (with respect to any matter specified in clause (i), (ii) or (iii) above, either individually or in the aggregate) such as
is not reasonably likely to have a Material Adverse Effect. 
  
 7.22. Reinsurance Agreements. Except as set forth on Schedule F to the Annual Statements for each RIC for its fiscal year ending December 31, 2003, as updated by Schedule F to the December 31, 2004 financial statements, there are no
material liabilities outstanding as of the Agreement Date under any Reinsurance Agreement. Each Reinsurance Agreement is in full force and effect; no RIC or, to the knowledge of Borrower and Parent, any other party thereto, is in breach of or
default under any such Reinsurance Agreement; and neither Borrower nor Parent 

  

 41 

 
has any reason to believe that the financial condition of any other party to any such Reinsurance Agreement is impaired such that a default thereunder by
such party could reasonably be anticipated. Each Reinsurance Agreement is qualified under all applicable Laws to receive the statutory credit assigned to such Reinsurance Agreement in the relevant annual statement or quarterly statement at the time
prepared. Except as set forth on Schedule 7.22, each Person to whom any RIC has ceded any material liability pursuant to any Reinsurance Agreement on the Agreement Date has a rating of “A-” or better by A.M. Best. 
  
 7.23. Regulatory Acts. Neither Parent nor any Subsidiary is an
“investment company” within the meaning of the Investment Company Act of 1940, as amended, or is subject to regulation under the Public Utility Holding Act of 1935, the Federal Power Act, the Interstate Commerce Act, or any other Law
(other than Regulation X of the Board of Governors of the Federal Reserve System and applicable insurance Laws) which regulates the incurring by Parent or any Subsidiary of debt, including, but not limited to, Laws regulating common or contract
carriers or the sale of electricity, gas, steam, water, or other public utility services. 
  
 7.24. Solvency. Parent and each Subsidiary is, and Parent and Subsidiaries on a consolidated basis are, Solvent. 
  
 7.25. Environmental Matters. 
  
 (a) The properties owned, operated or leased by Borrower, Parent, each other Obligor and each Subsidiary (the “Properties”)
do not contain any Hazardous Materials in amounts or concentrations which (i) constitute, or constituted a violation of, or (ii) could reasonably be expected to give rise to liability under, Environmental Laws, which violations and liabilities,
in the aggregate, could reasonably be expected to result in a Material Adverse Effect; 
  
 (b) All Environmental Permits have been obtained and are in effect with respect to the Properties and operations of Borrower, Parent, each
other Obligor and each Subsidiary, and the Properties and all operations of Borrower, Parent, each other Obligor and each Subsidiary are in compliance, and have been in compliance, with all Environmental Laws and all necessary Environmental Permits,
except to the extent that such non compliance or failure to obtain any necessary permits, in the aggregate, could not reasonably be expected to result in a Material Adverse Effect; 
  
 (c) None of Borrower, Parent, any other Obligor or any Subsidiary has received any notice of an
Environmental Claim in connection with the Properties or the operations of Borrower, Parent, or such Obligor or such Subsidiaries or with regard to any Person whose liabilities for environmental matters such Borrower, Parent, or such Obligor or such
Subsidiary has retained or assumed, in whole or in part, contractually, which, in the aggregate, could reasonably be expected to result in a Material Adverse Effect, nor does Borrower, Parent, any other Obligor or any Subsidiary have knowledge that
any such notice will be received or is being threatened; 
  
 (d) Hazardous Materials have not been transported from the Properties, nor have Hazardous Materials been generated, treated, stored or disposed of at, on or under any of the Properties in a manner that could
reasonably be expected to give rise to liability under any Environmental Law, nor has Borrower, Parent, any other Obligor or any Subsidiary retained or 

  

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assumed any liability contractually, with respect to the generation, treatment, storage or disposal of Hazardous Materials, which transportation, generation,
treatment, storage or disposal, or retained or assumed liabilities, in the aggregate, could reasonably be expected to result in a Material Adverse Effect. 
  
 7.26. Survival of Representations and Warranties, etc. All representations and warranties made under this Agreement and the other Loan Documents
shall be deemed to be made at and as of the Agreement Date and at and as of the date of the Term Loan, and each shall be true and correct in all material respects when made, except to the extent applicable to a specific date. All such
representations and warranties shall survive, and not be waived by, the execution hereof by Lender, any investigation or inquiry by Lender, or by the making of the Term Loan under this Agreement. 
  
 ARTICLE VIII  
  
 DEFAULT 
  
 8.1. Event of Default. The term “Event of Default” as used herein, means the occurrence and
continuance of any one or more of the following events (including the passage of time, if any, specified therefor): 
  
 (a) Payments. The failure or refusal of Borrower to pay any part of the Obligations on or before the date such payment is due;

  
 (b) Certain Covenants. The failure or
refusal of any Obligor or any Subsidiary punctually and properly to perform, observe and comply with any covenant, agreement or condition contained in Article VI or Sections 5.1(b), 5.2, 5.4, or 5.7; 
  
 (c) Other Covenants. The failure or refusal of any
Obligor or any Subsidiary punctually and properly to perform, observe and comply with any covenant, agreement or condition contained in any of the Loan Documents (other than covenants to pay the Obligations and those referenced in Section 8.
1(b)) and such failure shall not have been remedied within twenty days after the earlier of (i) written notice thereof by Lender and (ii) actual knowledge thereof by any such Obligor or such Subsidiary; 
  
 (d) Voluntary Debtor Relief. Any Obligor or any
Subsidiary shall (i) execute an assignment for the benefit of creditors, or (ii) admit in writing its inability, or be generally unable, to pay its debts generally as they become due, or (iii) voluntarily seek the benefit or benefits of any Debtor
Relief Law, or (iv) voluntarily become a party to any proceeding provided for by any Debtor Relief Law that could suspend or otherwise affect any of the rights granted to or for the benefit of Lender in any of the Loan Documents; 
  
 (e) Involuntary Proceedings. Any Obligor or any
Subsidiary shall involuntarily (i) have an order, judgment or decree entered against it by any Governmental Authority pursuant to any Debtor Relief Law that could suspend or otherwise affect any of the rights granted to or for the benefit of Lender
in any of the Loan Documents, or (ii) have a petition filed against it seeking the benefit or benefits provided for by any Debtor Relief Law that 

  

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would suspend or otherwise affect any of the rights granted to or for the benefit of Lender in any of the Loan Documents; 
  
 (f) Insurance Regulation. (i) Any Insurance Regulator
or other Governmental Authority of any state intervenes in the management of the business or operations of, or issues order of supervision or rehabilitation with respect to, Parent or any Subsidiary, (ii) Parent or any Subsidiary facilitates or
takes any affirmative action with the intention of facilitating such intervention, or (iii) in the reasonable view of Lender, circumstances exist which would make such intervention likely; 
  
 (g) Internal Control Event; Securities Laws. If at
any time Parent is a Public Company, an Internal Control Event shall occur or any Governmental Authority shall allege a violation or commence any action based on an alleged violation of any Securities Laws by Parent, any employee, officer or
director of Parent or Parent’s auditor (with respect to actions of such auditor in its capacity as auditor for Parent) and any such event could reasonably be expected to result in a Material Adverse Change; 
  
 (h) Judgments. Any Obligor or any Subsidiary shall
have rendered against it a money judgment in an aggregate amount in excess of $2,500,000 and the same shall remain in effect and unstayed for a period of thirty consecutive days; 
  
 (i) Other Debt. Any Obligor or any Subsidiary shall default (i) in the payment of principal of or
interest on any Debt in an aggregate amount, together with all other Debt in which a default exists, in excess of $2,500,000, or (ii) in the performance of any other covenant, term or condition contained in any agreement with respect to such Debt
(if such default shall occur and be continuing beyond any grace period with respect to such payment or performance), if the effect of such default is to cause or permit the holder or holders of such Debt (or any trustee on their behalf) to cause
such Debt to become due or redeemed or purchased prior to its date of maturity; 
  
 (j) Change of Control. A Change of Control shall occur; 
  
 (k) Misrepresentation. The discovery by Lender that any statement, representation or warranty in the
Loan Documents or in any writing ever delivered to Lender pursuant to the Loan Documents, is false, misleading or erroneous in any material respect; 
  
 (1) ERISA. Any Reportable Event under any Plan, or the appointment by an appropriate Governmental Authority of a trustee to
administer any Plan, or the termination of any Plan within the meaning of Title IV of ERISA, or any material accumulated funding deficiency within the meaning of ERISA under any Plan, or proceedings shall be instituted by the PBGC to terminate any
Plan or to appoint a trustee to administer any Plan; 
  
 (m) Loan Documents. Any Loan Document shall, at any time after its execution and delivery and for any reason, cease to be in full force and effect in or be declared to be null and void (other than in accordance with the terms hereof
or thereof) or the validity or enforceability thereof be contested by any Person party thereto (other than Lender) or any Person (other than Lender) shall deny in writing that it has any liability or any further liability or obligations under any
Loan Document to which it is a party (including any revocation of any 

  

 44 

 
Guaranty by any Guarantor); or any Security Document shall for any reason (other than pursuant to the terms thereof) cease to create a valid and perfected
first priority Lien in any Collateral. 
  
 8.2. Remedies.
If an Event of Default exists: 
  
 (a) With
the exception of an Event of Default specified in Section 8.1 (d) or (e). Lender may declare the principal of and interest on the Term Loan and Obligations and other amounts owed under the Loan Documents to be forthwith due and payable
without presentment, demand, protest or notice of any kind, all of which are hereby expressly waived, anything in the Loan Documents to the contrary notwithstanding. 
  
 (b) Upon the occurrence of an Event of Default specified in Section 8.1(d) or (e), such
principal, interest and other amounts shall thereupon and concurrently therewith become due and payable, all without any action by Lender, or any holder of the Term Note and without presentment, demand, protest or other notice of any kind, all of
which are expressly waived, anything in the Loan Documents to the contrary notwithstanding. 
  
 (c) Lender and any Person acting for the benefit of Lender may exercise all of the post default rights granted to them under the Loan
Documents or under Law. 
  
 (d) The rights and
remedies of Lender hereunder shall be cumulative, and not exclusive. 
  
 8.3. Application of Funds. After the exercise of remedies provided for in Section 8.2 (or after the Term Loan and other Obligations have automatically become immediately due and payable), any amounts received on account of the
Obligations shall be applied by Lender in the following order: 
  
 (a) First, payment of that portion of the Obligations constituting fees, indemnities, expenses and other amounts payable to Lender; 
  
 (b) Second, payment of that portion of the Obligations constituting accrued and unpaid interest on the Term
Loan in such order as Lender determines; 
  
 (c)
Third, payment of that portion of the Obligations constituting unpaid principal of the Term Loan in such order as Lender determines; 
  
 (d) Fourth, to all other Obligations; and 
  
 (e) Last, the balance, if any, after all of the Obligations have been indefeasibly paid in full, to Borrower or as otherwise required by
Law. 
  
 ARTICLE IX 
  
 MISCELLANEOUS 
  
 9.1. Reliance by Lender. Lender and its officers, directors,
employees, attorneys and agents shall be entitled to rely and shall be fully protected in relying on any writing, resolution, 

  

 45 

 
notice, consent, certificate, affidavit, letter, e-mail, cablegram, telegram, telex or teletype message, statement, order, or other document or conversation
reasonably believed by it or them in good faith to be genuine and correct and to have been signed or made by the proper Person and, with respect to legal matters, upon opinions of counsel selected or consented to by Lender. 
  
 9.2. Notices. 
  
 (a) All notices and other communications under this
Agreement (except in those cases where giving notice by telephone is expressly permitted) and the other Loan Documents shall be in writing and shall be deemed to have been given on the date personally delivered or sent by telecopy (answerback
received), or three days after deposit in the mail, designated as certified mail, return receipt requested, postage prepaid, or one day after being entrusted to a reputable commercial overnight delivery service, or one day after being delivered to
the telegraph office or sent out by telex addressed to the party to which such notice is directed at its address determined as provided in this Section. All notices and other communications under this Agreement shall be given if to Borrower,
at the address specified on Schedule 9.2, and if to Lender, at the address specified on Schedule 9.2. 
  
 (b) Any party hereto may change the address to which notices shall be directed by giving ten days’ written notice of such change to
the other party. 
  
 9.3. Expenses. Borrower shall promptly
pay: 
  
 (a) all reasonable out-of-pocket
expenses and Attorney Costs of Lender in connection with the preparation, negotiation, execution and delivery of this Agreement and the other Loan Documents, the transactions contemplated hereunder and thereunder, and the making of the Term Loan
hereunder; 
  
 (b) all reasonable out-of-pocket
expenses and Attorney Costs of Lender in connection with the administration of the transactions contemplated in this Agreement and the other Loan Documents and the preparation, negotiation, execution and delivery of any waiver, amendment or consent
by Lender relating to this Agreement or the other Loan Documents; and 
  
 (c) all costs, out-of-pocket expenses and Attorney Costs of Lender incurred for enforcement, collection, restructuring, refinancing and “work out”, or otherwise incurred in obtaining performance under the
Loan Documents, and all costs and out of pocket expenses of collection if default is made in the payment of the Obligations, which in each case shall include without limitation fees and expenses of consultants and counsel for Lender and
administrative fees for Lender. 
  
 9.4. Waivers. The
rights and remedies of Lender under this Agreement and the other Loan Documents shall be cumulative and not exclusive of any rights or remedies which it would otherwise have. No failure or delay by Lender in exercising any right shall operate as a
waiver of such right. Any waiver or indulgence granted by Lender shall not constitute a modification of this Agreement, except to the extent expressly provided in such waiver or indulgence, or constitute a course of dealing by Lender at variance
with the terms of the Agreement such as to require further notice by Lender of Lender’s intent to require strict adherence to the terms of the Agreement in the future. Any such actions shall not in any way affect the ability of Lender, in its

  

 46 

 
discretion, to exercise any rights available to it under this Agreement or under any other agreement, whether or not Lender is a party thereto, relating to
Borrower, Parent, any Subsidiary or any Obligor. 
  
 9.5.
Determination by Lender Conclusive and Binding. Any material determination required or expressly permitted to be made by Lender under this Agreement and each other Loan Document shall be made in its reasonable judgment and in good faith, and
shall when made, absent manifest error, be conclusive and binding on all parties. 
  
 9.6. Set Off. In addition to any rights now or hereafter granted under Applicable Law and not by way of limitation of any such rights, upon the occurrence of an Event of Default, Lender and any subsequent
holder of the Term Loan Note, and any assignee or Participant in the Term Loan Note is hereby authorized by Borrower at any time or from time to time, without notice to Borrower or any other Person, any such notice being hereby expressly waived, to
set off, appropriate and apply any deposits (general or special (except trust and escrow accounts), time or demand, including without limitation Debt evidenced by certificates of deposit, in each case whether matured or unmatured) and any other Debt
at any time held or owing by Lender or such holder, assignee or Participant to or for the credit or the account of Borrower, against and on account of the Obligations and other liabilities of Borrower to Lender or such holder, irrespective of
whether or not (a) Lender or such holder, assignee or Participant shall have made any demand hereunder, or (b) Lender or such holder, assignee or Participant shall have declared the principal of and interest on the Term Loan and other amounts due
hereunder to be due and payable as permitted by Section 8.2 and although such obligations and liabilities, or any of them, shall be contingent or unmatured. Any sums obtained by Lender or such holder, assignee or Participant shall be applied
pursuant to Section 8.3. 
  
 9.7. Assignment.

  
 (a) Neither Borrower nor Parent may assign or
transfer any of its rights or obligations hereunder or under the other Loan Documents without the prior written consent of Lender. 
  
 (b) Lender may at any time sell participations in all or any part of the Term Loan (collectively, “Participations”) to
any banks or other financial institutions (“Participants”) provided that such Participation shall not confer on any Person (other than the parties hereto) any right to vote on, approve or sign amendments or waivers, or any other
independent benefit or any legal or equitable right, remedy or other claim under this Agreement or any other Loan Documents, other than the right to vote on, approve, or sign amendments or waivers or consents with respect to items that would result
in (i) (A) the extension of the date of maturity of, or (B) the extension of the due date for any payment of principal, interest or fees respecting, or (C) the reduction of the amount of any installment of principal or interest on or the change or
reduction of any mandatory reduction required hereunder, or (D) a reduction of the rate of interest on, the Term Loan; or (ii) the release of substantially all of the security for the Obligations. Notwithstanding the foregoing, Borrower agrees that
the Participants shall be entitled to the benefits of Article VIII and Section 9.6 as though they were Lender and Lender may provide copies of all financial and other information received from Borrower, Parent or any Subsidiary to such
Participants. To the fullest extent it may effectively do so under Applicable 

  

 47 

 
Law, Borrower agrees that any Participant may exercise any and all rights of banker’s lien, set off and counterclaim with respect to this Participation
as fully as if such Participant were the holder of the Term Loan in the amount of its Participation. 
  
 (c) Lender may, in connection with any assignment or participation or proposed assignment or participation pursuant to this Section
9.7, disclose to the assignee or Participant or proposed assignee or participant, any information relating to Borrower, Parent, any Subsidiary and Obligors furnished to Lender by or on behalf of any such Person. 
  
 (d) Except as specifically set forth in this Section
9.7, nothing in this Agreement or any other Loan Documents, expressed or implied, is intended to or shall confer on any Person other than the respective parties hereto and thereto and their successors and assignees permitted hereunder and
thereunder any benefit or any legal or equitable right, remedy or other claim under this Agreement or any other Loan Documents. 
  
 9.8. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all such
separate counterparts shall together constitute but one and the same instrument. 
  
 9.9. Severability. Any provision of this Agreement which is for any reason prohibited or found or held invalid or unenforceable by any Governmental Authority shall be ineffective to the extent of such
prohibition or invalidity or unenforceability without invalidating the remaining provisions hereof in such jurisdiction or affecting the validity or enforceability of such provision in any other jurisdiction. 
  
 9.10. Interest and Charges. It is not the intention of any parties to
this Agreement to make an agreement in violation of the Laws of any applicable jurisdiction relating to usury. Regardless of any provision in any Loan Documents, Lender shall never be entitled to receive, collect or apply, as interest on the
Obligations, any amount in excess of the Maximum Amount. If Lender ever receives, collects or applies, as interest, any such excess, such amount which would be excessive interest shall be deemed a partial repayment of principal by Borrower. In
determining whether or not the interest paid or payable, under any specific contingency, exceeds the Maximum Amount, Borrower and Lender shall, to the maximum extent permitted under Applicable Law, (a) characterize any nonprincipal payment as an
expense, fee or premium rather than as interest, (b) exclude voluntary prepayments and the effect thereof, and (c) amortize, prorate, allocate and spread in equal parts, the total amount of interest throughout the entire contemplated term of the
Obligations so that the interest rate is uniform throughout the entire term of the Obligations; provided, however, that if the Obligations are paid and performed in full prior to the end of the full contemplated term thereof, and if
the interest received for the actual period of existence thereof exceeds the Maximum Amount, Lender shall refund to Borrower the amount of such excess or credit the amount of such excess against the total principal amount of the Obligations owing,
and, in such event, Lender shall not be subject to any penalties or forfeitures provided by any Laws for contracting for, charging or receiving interest in excess of the Maximum Amount. This Section shall control every other provision of all
agreements pertaining to the transactions contemplated by or contained in the Loan Documents. The provisions of this Section applicable to Lender are equally applicable to each Participant, assignee and any subsequent holder. 
  

 48 

 9.11. Amendment and Waiver. The provisions of this Agreement may not be amended, modified or
waived except by the written agreement of Borrower and Lender. 
  
 9.12. Exception to Covenants. No Obligor shall be deemed to be permitted to take any action or fail to take any action which is permitted as an exception to any of the covenants contained herein or which is within the permissible
limits of any of the covenants contained herein if such action or omission would result in the breach of any other covenant contained herein. 
  
 9.13. USA Patriot Act Notice. Lender hereby notifies Borrower that pursuant to the requirements of the USA Patriot Act (Title III of Pub.L. 107-56
(signed into law October 26, 2001)) (the “Act”), Lender is required to obtain, verify and record information that identifies Borrower, which information includes the name and address of Borrower and other information that will allow
Lender to identify Borrower in accordance with the Act. 
  
 9.14.
GOVERNING LAW. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS OF THE STATE OF TEXAS; PROVIDED, HOWEVER, IT IS AGREED THAT THE PROVISIONS OF CHAPTER 346 OF THE
TEXAS FINANCE CODE SHALL NOT APPLY TO THE TERM LOAN, THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. THE LOAN DOCUMENTS ARE PERFORMABLE IN SAN ANTONIO, BEXAR COUNTY, TEXAS, AND BORROWER AND PARENT WAIVE THE RIGHT TO BE SUED ELSEWHERE. BORROWER, PARENT
AND LENDER AGREE THAT THE STATE AND FEDERAL COURTS OF TEXAS LOCATED IN SAN ANTONIO, TEXAS SHALL HAVE JURISDICTION OVER PROCEEDINGS IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS. 
  
 9.15. WAIVER OF JURY TRIAL. BORROWER, PARENT AND LENDER
HEREBY KNOWINGLY VOLUNTARILY, IRREVOCABLY AND INTENTIONALLY WAIVE, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR CLAIM ARISING OUT OF OR RELATED TO ANY OF THE LOAN DOCUMENTS OR THE TRANSACTIONS
CONTEMPLATED THEREBY. THIS PROVISION IS A MATERIAL INDUCEMENT TO LENDER ENTERING INTO THIS AGREEMENT AND MAKING THE TERM LOAN HEREUNDER. 
  
 9.16. ENTIRE AGREEMENT. THIS WRITTEN AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS, REPRESENTS THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES. 
  
 THE REMAINDER OF
THIS PAGE IS INTENTIONALLY LEFT BLANK. 
  

 49 

 IN WITNESS WHEREOF, this Agreement is executed as of the date first set forth above. 
  

			
	BORROWER:
	
	REPUBLIC COMPANIES, INC.
		
	By:	 	/s/    PARKER W. RUSH        
	 Print Name:
	 	Parker W. Rush
	 Print Title:
	 	President

  

			
	PARENT:
	
	REPUBLIC COMPANIES GROUP, INC.
		
	By:	 	/s/    PARKER W. RUSH        
	 Print Name:
	 	Parker W. Rush
	 Print Title:
	 	President

  

			
	LENDER:
	
	THE FROST NATIONAL BANK
		
	By:	 	/s/ [ILLEGIBLE]
	 Print Name:
	 	[ILLEGIBLE]
	 Print Title:
	 	Senior Vice President

  

 S-1LEASE AGREEMENT

  
 Exhibit 10.13 
  
 LEASE
AGREEMENT BETWEEN 
  
 TC DALLAS #2, LP, 
  
 AS LANDLORD, AND 
  
 REPUBLIC UNDERWRITERS INSURANCE COMPANY 
  
 AS TENANT 
  
 DATED AUGUST 31, 2004 
  
 DALLAS, TEXAS 
  

  
 BASIC LEASE INFORMATION

  

			
	Lease Date:	  	August 31, 2004
		
	Landlord:	  	TC Dallas #2, LP, a Delaware limited partnership
		
	Tenant:	  	Republic Underwriters Insurance Company, a Texas corporation
		
	Premises:	  	That certain building (the “Building”), containing 113,359 rentable square feet, and whose street address is 5525 LBJ Freeway, Dallas, Texas 75240. The land on which
the Building is located (the “Land”) is described on Exhibit A. The term “Project” shall collectively refer to the Building, the Land and the driveways, parking facilities, loading dock areas,
roadways and similar improvements and easements associated with the foregoing or the operation thereof.
		
	Term:	  	144 full calendar months, plus any partial month from the Commencement Date to the end of the month in which the Commencement Date falls, starting on the Commencement Date and ending at 5:00
p.m. local time on the last day of the 144th full calendar month following the Commencement Date, subject to renewal and earlier termination as provided in the Lease.
		
	Commencement Date:	  	The earlier of (a) the date on which Tenant occupies any portion of the Premises and begins conducting business therein, or (b) 150 days after the date on which Landlord tenders possession of
the Premises to Tenant.
		
	Rent Commencement Date	  	The earlier of (a) the date on which Tenant occupies any portion of the Premises and begins conducting business therein, or (b) March 1, 2005. The Rent Commencement Date shall not be extended
for any reason, known or unknown, including any delays caused by force majeure, any failure to deliver possession of the Project to Tenant, or any other cause whatsoever.
		
	Basic Rent:	  	Beginning on the Rent Commencement Date, Basic Rent shall be the following amounts for the following periods of time:

  

							
	 Lease Month

	  	Annual Basic Rent

	  	Monthly Basic Rent

	 Rent Commencement Date – 12
	  	$	2,058,601.00	  	$	171,550.08
	   13 – 24
	  	$	2,099,773.02	  	$	174,981.09
	   25 – 36
	  	$	2,141,768.48	  	$	178,480.71
	   37 – 48
	  	$	2,184,603.85	  	$	182,050.32
	   49 – 60
	  	$	2,228,295.93	  	$	185,691.33
	   61 – 72
	  	$	2,272,861.85	  	$	189,405.15
	   73 – 84
	  	$	2,318,319.08	  	$	193,193.26
	   85 – 96
	  	$	2,364,685.46	  	$	197,057.12
	   97 – 108
	  	$	2,411,979.17	  	$	200,998.26
	 109 – 120
	  	$	2,460,218.76	  	$	205,018.23
	 121 – 132
	  	$	2,509,423.13	  	$	209,118.59
	 133 – 144
	  	$	2,559,611.59	  	$	213,300.97

  

			
	 	  	As used herein, the term “Lease Month” means each calendar month during the Term (and if the Commencement Date does not occur on the first day of a calendar month, the
period from the Commencement Date to the first day of the next calendar month shall be included in the first Lease Month for purposes of determining the duration of the Term and the monthly Basic Rent rate applicable for such partial
month).

  

 i 

					
	Additional Rent:	  	Taxes.
		
	Security Deposit:	  	None.
		
	Rent:	  	Basic Rent, Additional Rent, and all other sums that Tenant may owe to Landlord or otherwise be required to pay under the Lease.
		
	Permitted Use:	  	General office use.
		
	Initial Liability Insurance Amount:	  	$10,000,000 (which may be accomplished by Tenant maintaining a $1,000,000 per occurrence liability policy and an excess liability insurance policy, in each case, as more particularly
described in Exhibit G hereto).
			
	Tenant’s Address:	  	 Prior to Commencement Date:
 Republic Underwriters
Insurance Company
 2727 Turtle Creek Boulevard
 Dallas, Texas
75219
 Attention: Parker Rush
 Telephone: 214- 559-
1836
 Telecopy: 214-559-5868
  
 with a copy to:
 Republic Underwriters Insurance Company
 2727 Turtle Creek Boulevard
 Dallas, Texas 75219
 Attention: Marti Croft
 Telephone: 214-559-1264
 Telecopy: 214-526-2104
	  	 Following Commencement Date:
 Republic
Underwriters Insurance Company
 5525 LBJ Freeway
 Dallas, Texas
75240
 Attention: Parker Rush
 Telephone: [To be determined per Exhibit D hereto.]
 Telecopy: [To be determined per Exhibit D
hereto.]
  
 with a copy to:
 Republic Underwriters Insurance Company
 5525 LBJ Freeway
 Dallas, Texas 75240
 Attention: Marti Croft
 Telephone: [To be determined per Exhibit D hereto.]
 Telecopy: [To be determined per Exhibit D hereto.]

			
	Landlord’s Address:	  	 For all Notices:
 TC Dallas #2, LP
 c/o Trammell Crow Company
 2001 Ross Avenue, Suite 3400
 Dallas, Texas 75201
 Attn: Richard Fletcher
 Telephone: 214-863-3086
 Telecopy: 214-863-4200
	  	 With a copy to:
 TC Dallas #2, LP
 c/o Trammell Crow Company
 2200 Ross Avenue, Suite 3700
 Dallas, Texas 75201
 Attn: Denton Walker
 Telephone: 214-979-6581
 Telecopy: 214-979-6355

  

 ii 

 The foregoing Basic Lease Information is incorporated into and made a part of the Lease identified above. If any conflict
exists between any Basic Lease Information and the Lease, then the Lease shall control. 
  

											
	LANDLORD:	 	 	 	 TC DALLAS #2, LP, a Delaware limited partnership

					
	 	 	 	 	 	 	By:	 	TCDFW Investment and Development, Inc., a Delaware corporation, its general partner
						
	 	 	 	 	 	 	 	 	 By:
	 	/s/    MARK C. ALLYN        
	 	 	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 	 	 Title:
	 	Ex. Vice President
			
	TENANT:	 	 	 	REPUBLIC UNDERWRITERS INSURANCE COMPANY, a Texas corporation
					
	 	 	 	 	 	 	 By:
	 	/s/    PARKER W.
RUSH        
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	President & CEO

  

 iii 

  
 TABLE OF CONTENTS

  

					
	 	  	 	  	 Page No.

	 1.
	  	Definitions and Basic Provisions	  	1
			
	 2.
	  	Lease Grant	  	1
			
	 3.
	  	Tender of Possession	  	1
			
	 4.
	  	Rent.	  	1
			
	 (a)
	  	 Payment
	  	1
	 (b)
	  	 Taxes
	  	2
			
	 5.
	  	Delinquent Payment; Handling Charges	  	2
			
	 6.
	  	Security Deposit	  	2
			
	 7.
	  	Landlord’s Maintenance Obligations	  	2
			
	 8.
	  	Improvements; Alterations; Tenant’s Maintenance and Repair Obligations	  	3
			
	 (a)
	  	 Improvements; Alterations
	  	3
	 (b)
	  	 Repairs; Maintenance
	  	3
	 (c)
	  	 Performance of Work
	  	4
	 (d)
	  	 Mechanic’s Liens
	  	4
	 (e)
	  	 Janitorial Services
	  	5
	 (f)
	  	 Landlord’s Right to Perform Tenant’s Maintenance Obligations
	  	5
			
	 9.
	  	Utilities; Licenses and Permits	  	5
			
	 (a)
	  	 Utilities
	  	5
	 (b)
	  	 Licenses and Permits
	  	5
	 (c)
	  	 Landlord’s Right to Perform Tenant’s Obligations
	  	5
			
	 10.
	  	Use	  	5
			
	 11.
	  	Assignment and Subletting	  	5
			
	 (a)
	  	 Transfers
	  	5
	 (b)
	  	 Consent Standards
	  	5
	 (c)
	  	 Request for Consent
	  	6
	 (d)
	  	 Conditions to Consent
	  	6
	 (e)
	  	 Attornment by Subtenants
	  	6
	 (f)
	  	 Additional Compensation
	  	6
	 (g)
	  	 Permitted Transfers
	  	7
	 (h)
	  	 Permitted Subleasing
	  	7
			
	 12.
	  	Insurance; Waivers; Subrogation; Indemnity	  	7
			
	 (a)
	  	 Insurance
	  	7
	 (b)
	  	 No Subrogation; Waiver of Property Claims
	  	7
	 (c)
	  	 Indemnity
	  	8
			
	 13.
	  	Subordination; Attornment; Notice to Landlord’s Mortgagee	  	8
			
	 (a)
	  	 Subordination
	  	8
	 (b)
	  	 Attornment
	  	8
	 (c)
	  	 Notice to Landlord’s Mortgagee
	  	8
	 (d)
	  	 Landlord’s Mortgagee’s Protection Provisions
	  	9
			
	 14.
	  	Rules and Regulations	  	9

  

 iv 

					
	 15.
	  	Condemnation	  	9
			
	 (a)
	  	 Total Taking
	  	9
	 (b)
	  	 Partial Taking - Tenant’s Rights
	  	9
	 (c)
	  	 Partial Taking - Landlord’s Rights
	  	9
	 (d)
	  	 Temporary Taking
	  	10
	 (e)
	  	 Award
	  	10
			
	 16.
	  	Fire or Other Casualty	  	10
			
	 (a)
	  	 Repair Estimate
	  	10
	 (b)
	  	 Tenant’s Rights
	  	10
	 (c)
	  	 Landlord’s Rights
	  	10
	 (d)
	  	 Repair Obligation
	  	10
	 (e)
	  	 Abatement of Rent
	  	10
			
	 17.
	  	Personal Property Taxes	  	11
			
	 18.
	  	Events of Default	  	11
			
	 (a)
	  	 Payment Default
	  	11
	 (b)
	  	 Abandonment
	  	11
	 (c)
	  	 Estoppel
	  	11
	 (d)
	  	 Insurance
	  	11
	 (e)
	  	 Mechanic’s Liens
	  	11
	 (f)
	  	 Other Defaults
	  	11
	 (g)
	  	 Insolvency
	  	11
			
	 19.
	  	Remedies	  	12
			
	 (a)
	  	 Termination of Lease
	  	12
	 (b)
	  	 Termination of Possession
	  	12
	 (c)
	  	 Perform Acts on Behalf of Tenant
	  	12
	 (d)
	  	 Suspension of Services
	  	12
	 (e)
	  	 Alteration of Locks
	  	12
			
	 20.
	  	Payment by Tenant; Non-Waiver; Cumulative Remedies	  	12
			
	 (a)
	  	 Payment by Tenant
	  	12
	 (b)
	  	 No Waiver
	  	13
	 (c)
	  	 Cumulative Remedies
	  	13
			
	 21.
	  	Landlord’s Lien	  	13
			
	 22.
	  	Surrender of Project	  	13
			
	 23.
	  	Holding Over	  	13
			
	 24.
	  	Certain Rights Reserved by Landlord	  	14
			
	 (a)
	  	 Building Operations
	  	14
	 (b)
	  	 Security
	  	14
	 (c)
	  	 Prospective Purchasers and Lenders
	  	14
	 (d)
	  	 Prospective Tenants
	  	14
			
	 25.
	  	Miscellaneous	  	14
			
	 (a)
	  	 Landlord Transfer
	  	14
	 (b)
	  	 Landlord’s Liability
	  	14
	 (c)
	  	 Force Majeure
	  	14
	 (d)
	  	 Brokerage
	  	15
	 (e)
	  	 Estoppel Certificates
	  	15
	 (f)
	  	 Notices
	  	15
	 (g)
	  	 Separability
	  	15
	 (h)
	  	 Amendments; Binding Effect
	  	15
	 (i)
	  	 Quiet Enjoyment
	  	15

  

 v 

					
	 (j)
	  	 No Merger
	  	16
	 (k)
	  	 No Offer
	  	16
	 (l)
	  	 Entire Agreement
	  	16
	 (m)
	  	 Replacement Building
	  	16
	 (n)
	  	 Waiver of Jury Trial
	  	17
	 (o)
	  	 Governing Law
	  	17
	 (p)
	  	 Recording
	  	17
	 (q)
	  	 Water or Mold Notification
	  	17
	 (r)
	  	 Joint and Several Liability
	  	17
	 (s)
	  	 Financial Reports
	  	17
	 (t)
	  	 Landlord’s Fees
	  	18
	 (u)
	  	 Confidentiality
	  	18
	 (v)
	  	 Authority
	  	18
	 (w)
	  	 Security Service
	  	18
	 (x)
	  	 Determination of Charges
	  	18
	 (y)
	  	 Prohibited Persons and Transactions
	  	18
	 (z)
	  	 List of Exhibits
	  	19
			
	 26.
	  	Environmental Requirements	  	19
			
	 (a)
	  	 Prohibition against Hazardous Materials
	  	19
	 (b)
	  	 Environmental Requirements
	  	19
	 (c)
	  	 Removal of Hazardous Materials
	  	19
	 (d)
	  	 Tenant’s Indemnity
	  	20
	 (e)
	  	 Inspections and Tests
	  	20
	 (f)
	  	 Tenant’s Financial Assurance in the Event of a Breach
	  	20
			
	 27.
	  	Parking	  	20
			
	 28.
	  	Other Provisions	  	20
			
	 (a)
	  	 Signage
	  	20
	 (b)
	  	 Stipulated Carry Costs
	  	21
			
	 29.
	  	Letter of Credit	  	21
			
	 (a)
	  	 Financial Covenants; General Provisions
	  	21
	 (b)
	  	 Drawings under Letter of Credit
	  	21
	 (c)
	  	 Use of Proceeds by Landlord
	  	22
	 (d)
	  	 Additional Covenants of Tenant
	  	22
	 (e)
	  	 Transfer of Letter of Credit
	  	23
	 (f)
	  	 Termination of Requirement to Deliver Letter of Credit
	  	23
	 (g)
	  	 Nature of Letter of Credit
	  	23
			
	 30.
	  	Right of First Refusal to Purchase	  	23
			
	 (a)
	  	 Grant of Right
	  	23
	 (b)
	  	 Sale “As Is, Where Is”
	  	24
	 (c)
	  	 Termination of Right of First Refusal
	  	24
	 (d)
	  	 Brokerage
	  	24
	 (e)
	  	 Ongoing Right; Two-Time Right
	  	24
	 (f)
	  	 Definitions
	  	25

  

 vi 

  
 LIST OF DEFINED TERMS

  

			
	 	  	Page No.

	 Acceptance Period
	  	26
	 Additional Rent
	  	ii
	 Affiliate
	  	1
	 All Risks
	  	G-1
	 Approval Criteria
	  	C-2
	 Architect
	  	C-1
	 Basic Lease Information
	  	1
	 Basic Rent
	  	i
	 Building
	  	i
	 Building’s Structure
	  	1
	 Building’s Systems
	  	1
	 Casualty
	  	11
	 Centerpoint
	  	C-4
	 Commencement Date
	  	i
	 Completed Application for Payment
	  	C-4
	 Construction Allowance
	  	C-3
	 Curative Costs
	  	3
	 Damage Notice
	  	11
	 Default Rate
	  	2
	 Due Date
	  	F-1
	 Environmental Requirements
	  	22
	 Estimated Delivery Date
	  	1
	 Event of Default
	  	12
	 Final LC Expiration Date
	  	24
	 GAAP
	  	8
	 Hazardous Materials
	  	22
	 including
	  	1
	 Land
	  	i
	 Landlord
	  	1
	 Landlord’s Mortgagee
	  	9
	 Law
	  	1
	 Laws
	  	1
	 LC Proceeds Account
	  	25
	 Lease
	  	1
	 Lease Month
	  	ii
	 Letter of Credit
	  	24
	 Letter of Credit Amount
	  	24
	 Loss
	  	9
	 Mortgage
	  	9
	 OFAC
	  	21
	 Permitted Transfer
	  	7
	 Permitted Transferee
	  	7
	 Permitted Use
	  	ii
	 Pre-Existing Hazardous
	  	22
	 Premises
	  	i
	 Prevailing Rental Rate
	  	H-1
	 Primary Lease
	  	9
	 Project
	  	i
	 Purchase Offer
	  	27
	 Rent
	  	ii
	 Rent Commencement Date
	  	i
	 Repair Period
	  	11
	 ROFR Contract
	  	27

  

 vii 

			
	 Security Deposit
	  	ii
	 Security Deposit Laws
	  	26
	 Sign
	  	23
	 Sign Requirements
	  	23
	 Space Plans
	  	C-1
	 Space Plans Delivery Deadline
	  	C-1
	 Substantial Completion
	  	C-3
	 Substantially Completed
	  	C-3
	 Taking
	  	10
	 Tangible Net Worth
	  	8
	 Taxes
	  	F-1
	 Tenant
	  	1
	 Tenant Party
	  	1
	 Tenant’s Broker
	  	17
	 Term
	  	i
	 Third-Party
	  	27
	 Total Construction Costs
	  	C-3
	 Transfer
	  	6
	 Transfer Notice
	  	26
	 Work
	  	C-2
	 Working Drawings
	  	C-2
	 Working Drawings Delivery Deadline
	  	C-1

  

 viii 

  
 LEASE

  
 THIS LEASE AGREEMENT (this
“Lease”) is entered into as of August 31, 2004, between TC DALLAS #2, LP, a Delaware limited partnership (“Landlord”), and Republic Underwriters Insurance Company, a Texas corporation
(“Tenant”). 
  
 1. Definitions and
Basic Provisions. The definitions and basic provisions set forth in the Basic Lease Information (the “Basic Lease Information”) executed by Landlord and Tenant contemporaneously herewith are incorporated herein by
reference for all purposes. Additionally, the following terms shall have the following meanings when used in this Lease: “Affiliate” means any person or entity which, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with the party in question; “Building’s Structure” means the exterior walls, roof, elevator shafts, footings, foundations, structural portions of
load-bearing walls, structural floors and subfloors, and structural columns and beams of the Building and the adjacent structured parking garage; “Building’s Systems” means the Building’s HVAC, life-safety,
plumbing, electrical, and mechanical systems; “including” means including, without limitation; “Laws” means all federal, state, and local laws, ordinances, rules and regulations, all court orders,
governmental directives, and governmental orders, and all interpretations of the foregoing, and all restrictive covenants affecting the Project, and “Law” means any of the foregoing; and “Tenant Party”
means any of the following persons: Tenant; any assignees claiming by, through, or under Tenant; any subtenants claiming by, through, or under Tenant; and any of their respective agents, contractors, employees, licensees, guests, and invitees.

  
 2. Lease Grant. Subject to the terms of this
Lease, Landlord leases to Tenant, and Tenant leases from Landlord, the Project. Additionally, subject to the terms of this Lease and Landlord’s rules and regulations therefor, Tenant and its employees and invitees shall have a license to use
any applicable parking areas, driveways, loading dock areas, roadways and other similar improvements associated with the Project. 
  
 3. Tender of Possession. Landlord and Tenant presently anticipate that possession of the Premises will be tendered to Tenant within two
business days following Landlord’s acquisition of the Project, which is anticipated to occur on or about October 1, 2004 (the “Estimated Delivery Date”). If Landlord is unable to tender possession of the Premises to
Tenant by the Estimated Delivery Date, then (a) the validity of this Lease shall not be affected or impaired thereby, (b) Landlord shall not be in default hereunder or be liable for damages therefor, and (c) Tenant shall take possession of the
Premises when Landlord tenders possession thereof to Tenant. By occupying the Project, Tenant shall be deemed to have accepted the Project in its condition as of the date of such occupancy, subject to the completion of Landlord’s work to be
performed under Section 1 of Exhibit C hereto. Within ten days following Landlord’s written request therefor, Tenant shall execute and deliver to Landlord a letter substantially in the form of Exhibit D hereto confirming (1) the
Commencement Date, the Rent Commencement Date and the expiration date of the initial Term, (2) that Tenant has accepted the Project, and (3) that Landlord has performed all of its obligations with respect to the Project; however, the failure of the
parties to execute such letter shall not defer the Commencement Date or otherwise invalidate this Lease. Occupancy of the Project by Tenant prior to the Commencement Date shall be subject to all of the provisions of this Lease excepting only those
requiring the payment of Basic Rent and Additional Rent. Prior to the Commencement Date, Landlord shall perform or cause to be performed the maintenance responsibilities with respect to the Project and shall pay for the operating expenses with
respect to the Project. Following the Commencement Date, Tenant shall pay for such items as provided herein. If Landlord is unable to tender possession of the Project to Tenant, then the provisions of Section 25(l) shall also apply. 
  
 4. Rent. 
  
 (a) Payment. Tenant shall timely pay to
Landlord Rent, without notice, demand, deduction or set off (except as otherwise expressly provided herein), by good and sufficient check drawn on a national banking association at Landlord’s address provided for in this Lease or as otherwise
specified by Landlord and shall be accompanied by all applicable state and local sales or use taxes. The obligations of Tenant to pay Basic Rent and other sums to Landlord and the obligations of Landlord under this Lease are independent obligations.
Basic Rent, adjusted as herein provided, shall be payable monthly in advance. The first monthly installment of Basic Rent shall be payable on the Rent Commencement Date; thereafter, Basic Rent shall be payable on the first day of each month 

  

 1 

 
beginning on the first day of the second full calendar month following the Rent Commencement Date. The monthly Basic Rent for any partial month at the
beginning of the Term shall equal the product of a fraction, the numerator of which is the number of days in the partial month and the denominator of which is the number of days in such full calendar month, multiplied by the monthly installment of
Basic Rent in effect during such partial month and shall be due on the Rent Commencement Date. Payments of Basic Rent for any fractional calendar month at the end of the Term shall be similarly prorated. 
  
 (b) Taxes. Tenant shall pay Taxes in
accordance with Exhibit F hereto. 
  
 5. Delinquent
Payment; Handling Charges. All payments required of Tenant hereunder more than three business days past due shall bear interest from the date due until paid at the lesser of fifteen percent per annum or the maximum lawful rate of interest
(such lesser amount is referred to herein as the “Default Rate”); additionally, Landlord, in addition to all other rights and remedies available to it, may charge Tenant a fee equal to the greater of (a) $50.00 or (b) five
percent of the delinquent payment to reimburse Landlord for its cost and inconvenience incurred as a consequence of Tenant’s delinquency. In no event, however, shall the charges permitted under this Section 5 or elsewhere in this Lease, to the
extent they are considered to be interest under applicable Law, exceed the maximum lawful rate of interest. 
  
 6. Security Deposit. [Intentionally deleted.] 
  
 7. Landlord’s Maintenance Obligations. This Lease is intended to be a net lease; accordingly, except for those items to be performed by
Landlord as provided in Exhibit C-1 hereto, Landlord shall have no obligation, in any manner whatsoever, to pay for any repairs, maintenance or replacements to the Project, all of which shall be paid by Tenant. Notwithstanding the foregoing,
Landlord shall pay for the replacements of the Building’s Structure. The Building’s Structure does not include skylights, windows, glass or plate glass, doors or overhead doors, special fronts, or office entries, dock bumpers, dock plates
or levelers, loading areas and docks, and loading dock equipment, all of which shall be maintained by Tenant. Landlord’s liability for any defects, repairs, replacement or maintenance for which Landlord is specifically responsible for under
this Lease shall be limited to the cost of performing the work, including (with respect to that portion of the responsibilities allocated to Landlord under this Section 7) any replacement parts, and building materials and supplies. Tenant shall
promptly notify Landlord in writing of any work required to be performed under this Section 7. Additionally, in no event shall Landlord be responsible for alterations to the Building’s Structure required by applicable Law because of
Tenant’s use of the Premises (which alterations shall be made by Tenant at its sole cost and expense). In no event shall Tenant be responsible for additions or alterations to the Project which are required by Laws solely in order to permit a
sale or transfer of the Project if Tenant would not otherwise be required by Laws to perform such additions or alterations to the Project. Notwithstanding anything to the contrary contained herein, Landlord shall, in its sole and absolute
discretion, determine the appropriate remedial action required of it to satisfy its maintenance obligations hereunder (e.g., Landlord shall, in its sole discretion, determine whether, and to the extent, repairs or replacements are the appropriate
remedial action). If Landlord fails to perform its obligations under this Section 7 or its obligations under Exhibit C-1 hereto, and such failure continues for 30 days following written notification thereof from Tenant to Landlord (or such
longer period of time if Landlord commences to cure such failure within such 30-day period and thereafter diligently pursues the curing thereof to completion), and such failure materially adversely affects Tenant’s use of the Premises, then,
unless there is good-faith dispute regarding such work (such as whether the obligation with respect to such work is properly allocable to Landlord or Tenant under this Lease), Tenant may perform such obligations and Landlord shall reimburse Tenant
all actual third-party, out-of-pocket costs incurred by Tenant in connection with performing such obligations (the “Curative Costs”) within 30 days after Tenant delivers to Landlord written demand therefor, accompanied by
invoices substantiating Tenant’s claim. Tenant’s right to perform the work under this Section 7 is subject to the following conditions: all such work shall be performed in a good and workmanlike manner, in accordance with all applicable
Laws, and in a manner so as not to affect any existing warranties with respect to the Building’s Structure; all such work shall be performed in a manner so as not to adversely affect any portion of the Building’s Structure; and Tenant
delivers to Landlord “as-built” plans of the work performed by Tenant. If Landlord fails to reimburse Tenant for such Curative Costs (unless the same is subject to a good-faith dispute between Landlord and Tenant) within 60 days after
written demand therefor, then Tenant may send to Landlord a second notice that conspicuously states in bold, uppercase typeface that Tenant will be entitled to offset from Basic Rent the Curative Costs unless Landlord reimburses the Curative Cost
within 30 days from such notice. If Tenant delivers to Landlord such second notice satisfying the requirements of the 

  

 2 

 
preceding sentence, Landlord fails to reimburse Tenant the Curative Costs within such additional 30 day period, and such Curative Costs are not subject to a
good-faith dispute between Landlord and Tenant, Tenant shall have the right to offset such demanded amounts against the payments of Basic Rent thereafter due by Tenant to Landlord under this Lease until such amounts owing to Tenant are fully paid
and reimbursed to Tenant (by such offset or otherwise), provided however that in no event shall any such offset amounts exceed fifty percent (50%) of each monthly installment of Basic Rent then due and payable, except that Tenant shall, as
applicable, be entitled to offset against larger percentages of each such successive installment of such Basic Rent if the aforesaid fifty percent (50%) offset is insufficient to reimburse Tenant in full, taking into account the then-remaining
number of installments of Basic Rent due and payable by Tenant under the Lease, which larger percentage shall be the amount necessary so as to amortize the aggregate amount to be offset over such then-remaining number of installments. 
  
 8. Improvements; Alterations; Tenant’s Maintenance and Repair
Obligations. 
  
 (a) Improvements;
Alterations. Improvements to the Premises shall be installed at Tenant’s expense only in accordance with plans and specifications which have been previously submitted to and approved in writing by Landlord, which approval shall be
governed by the provisions set forth in this Section 8(a). No alterations or physical additions in or to the Premises may be made without Landlord’s prior written consent, which shall not be unreasonably withheld or delayed; however, Landlord
may withhold its consent to any alteration or addition that 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) or (2) the exterior appearance of the Building. Further, Landlord may condition its consent to any alteration or addition on Tenant obtaining a letter of credit, bond, or other form of security satisfactory to Landlord, in its sole
discretion, to ensure Tenant’s compliance with its obligations hereunder. Except for the Building fascia signage permitted under Section 28(a), Tenant shall not alter the exterior of the Premises without the prior written consent of Landlord,
which consent may be withheld in Landlord’s sole and absolute discretion. All alterations, additions, and improvements shall be constructed, maintained, and used by Tenant, at its risk and expense, in accordance with all Laws; Landlord’s
consent to or approval of any alterations, additions or improvements (or the plans therefor) shall not constitute a representation or warranty by Landlord, nor Landlord’s acceptance, that the same comply with sound architectural and/or
engineering practices or with all applicable Laws, and Tenant shall be solely responsible for ensuring all such compliance. 
  
 (b) Repairs; Maintenance. Except for those obligations specifically assumed by Landlord pursuant to Section 7 hereof, Tenant
shall, from and after the Commencement Date and continuing until the expiration of the Term, at its own cost and expense, keep and maintain all the Project in good, clean condition and repair and consistent with the quality and class of the Project
on the Commencement Date and make all necessary repairs and replacements to the Project, including maintenance, repair and replacement of the Building’s Systems, equipment, paving, parking lots, landscaping (including mowing of grass and care
of shrubs) and landscaping irrigation sprinkler systems and sewage lines, pipes, water, sewage and septic system, fire sprinkler system, heating system, windows, window glass, fixtures, doors, ceilings and all other appliances and their
appurtenances and all equipment and personal property used in connection with the Project so that the Project is in at least the same condition as when received by Tenant, reasonable wear and tear excepted. Additionally, Tenant shall, at its own
cost and expense, make all necessary repairs and non-structural replacements to the exterior of the Building (including painting) and repairs (but not replacements) to the Building’s roof and the Building’s Structure in conformance with
the standards of the previous sentence. All such repairs and replacements, interior and exterior, shall be made promptly, as and when necessary so that the Project is in at least the same condition as on the Commencement Date, reasonable wear and
tear excepted. All repairs and replacements (1) shall be in quality and class at least equal to the quality and class of the Project on the Commencement Date and (2) may include capital expenditures and repairs whose benefit may extend beyond the
Term. Tenant’s maintenance, repair and replacement obligations with respect to the Project shall be self-operative and no notice from Landlord shall be required as a pre-condition to the performance thereof by Tenant. Tenant shall maintain at
its sole cost and expense all portions of the Project in a clean and orderly condition, free of dirt, rubbish, snow, ice and unlawful obstructions, and Tenant will not do or suffer any waste or damage, disfigurement or injury to Project or any part
thereof. On or before the Commencement Date, Tenant, at its expense shall perform or cause to be performed preventive maintenance/service for all applicable portions of the Project, including the Building’s Systems (including HVAC annual tear
downs and preventive maintenance), landscaping, pest control, window washing, window washing davit and fall arrest annual testing, parking lot sweeping and striping, electrical infrared scanning and repairs not less frequently than once every three
years, parking lot lighting maintenance, vibration analysis for rotating equipment, elevator maintenance and annual TDLR inspections, escalator maintenance 

  

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and annual TDLR inspections, painting/corrosion prevention program, plumbing maintenance, storm water ejection system maintenance and domestic water pumping
system maintenance, each in compliance with any applicable manufacturers’ recommended maintenance schedule therefor and otherwise in form and substance and with a contractor reasonably acceptable to Landlord (or, at Tenant’s discretion,
with Tenant’s in-house personnel), and deliver copies thereof to Landlord. No later than 90 days prior to the end of the Term, Tenant shall deliver to Landlord a certificate from an engineer reasonably acceptable to Landlord certifying that all
such items which Tenant is required to maintain hereunder are then in good repair and condition and have been maintained in accordance with this Section 8. Tenant shall maintain the parking areas, driveways, alleys and grounds on the Land in a clean
and sanitary condition, consistent with the quality and class of the Project on the Commencement Date, including maintenance, repair, and non-structural replacement of the exterior of the Building (including painting), landscaping irrigation
sprinkler systems and sewage lines, and any items normally associated with the foregoing. On or before the Commencement Date, Landlord shall deliver to Tenant (to the extent not previously delivered to Tenant) all reports, studies, data, information
provided to Landlord from the previous owner of the Project, warranties, building system manuals, diagrams, drawings, permits, licenses, regulatory approvals pertaining to the Project, in each case to the extent pertaining to the Project and in
Landlord’s possession or control. 
  
 (c)
Performance of Work. Tenant shall cause all contractors and subcontractors to procure and maintain insurance coverage naming Landlord and Landlord’s property management company as additional insureds against such risks, in such
amounts, and with such companies as Landlord may reasonably require. Tenant shall provide Landlord with the identities, mailing addresses and telephone numbers of all persons performing work or supplying materials prior to beginning such
construction and Landlord may post on and about the Premises notices of non-responsibility pursuant to applicable Laws. All such work shall be performed in accordance with all Laws and in a good and workmanlike manner so as not to damage the
Building (including the Premises, the Building’s Structure and the Building’s Systems). All such work which may affect the Building’s Structure or the Building’s Systems must be approved by an engineer reasonably acceptable to
Landlord, at Tenant’s expense. All work affecting the roof of the Building must be performed by Landlord’s roofing contractor, and no such work will be permitted if it would void or reduce the warranty on the roof. 
  
 (d) Mechanic’s Liens. All work performed,
materials furnished, or obligations incurred by or at the request of a Tenant Party shall be deemed authorized and ordered by Tenant only, and Tenant shall not permit any mechanic’s liens to be filed against the Premises or the Project in
connection therewith. Upon completion of any such work, Tenant shall deliver to Landlord final lien waivers from all contractors, subcontractors and materialmen who performed such work. If such a lien is filed, then Tenant shall, within ten days
after Landlord has delivered notice of the filing thereof to Tenant (or such earlier time period as may be necessary to prevent the forfeiture of the Premises, the Project or any interest of Landlord therein or the imposition of a civil or criminal
fine with respect thereto), either (1) pay the amount of the lien and cause the lien to be released of record, or (2) diligently contest such lien and deliver to Landlord a bond or other security reasonably satisfactory to Landlord. If Tenant fails
to timely take either such action, then Landlord may pay the lien claim, and any amounts so paid, including expenses and interest, shall be paid by Tenant to Landlord within ten days after Landlord has invoiced Tenant therefor. Landlord and Tenant
acknowledge and agree that their relationship is and shall be solely that of “landlord-tenant” (thereby excluding a relationship of “owner-contractor,” “owner-agent” or other similar relationships). Accordingly, all
materialmen, contractors, artisans, mechanics, laborers and any other persons now or hereafter contracting with Tenant, any contractor or subcontractor of Tenant or any other Tenant Party for the furnishing of any labor, services, materials,
supplies or equipment with respect to any portion of the Premises, at any time from the date hereof until the end of the Term, are hereby charged with notice that they look exclusively to Tenant to obtain payment for same. Nothing herein shall be
deemed a consent by Landlord to any liens being placed upon the Premises, the Project or Landlord’s interest therein due to any work performed by or for Tenant or deemed to give any contractor or subcontractor or materialman any right or
interest in any funds held by Landlord to reimburse Tenant for any portion of the cost of such work. Tenant shall defend, indemnify and hold harmless Landlord and its agents and representatives from and against all claims, demands, causes of action,
suits, judgments, damages and expenses (including attorneys’ fees) in any way arising from or relating to the failure by any Tenant Party to pay for any work performed, materials furnished, or obligations incurred by or at the request of a
Tenant Party. This indemnity provision shall survive termination or expiration of this Lease. 
  

 4 

 (e) Janitorial Services. Tenant, at its sole expense, shall provide its own
janitorial services to the Project and shall maintain the Project in a clean and safe condition. Tenant shall store all trash and garbage in receptacles and shall, at its sole expense, arrange for the regular pickup of such trash and garbage.

  
 (f) Landlord’s Right to Perform
Tenant’s Maintenance Obligations. If Tenant fails to perform any of its obligations hereunder with respect to maintenance, repairs or replacements, within any applicable notice and cure period provided herein, then Landlord may, if it
so elects but expressly without any obligation to do so, in addition to any other remedies provided herein, perform the same. Any out-of-pocket sums expended by Landlord in effecting such maintenance, repairs or replacements shall be deemed to be
Additional Rent owing by Tenant to Landlord and shall be due and payable within 30 days after written request therefor. 
  
 9. Utilities; Licenses and Permits. 
  
 (a) Utilities. Tenant shall, at its sole cost and expense, contract for and pay for all water, gas, electricity, heat,
telephone, sewer, sprinkler charges and other utilities and services used at the Project, together with any taxes, penalties, surcharges, connection charges, maintenance charges, and the like pertaining to Tenant’s use of the Project. Tenant,
at its expense, shall obtain all utility services for Project, including making all applications therefor, obtaining meters and other related equipment, and paying all deposits and connection charges. Landlord shall not be liable for any
interruption or failure of utility service to the Premises, and such interruption or failure of utility service shall not be a constructive eviction of Tenant, constitute a breach of any implied warranty, or entitle Tenant to any abatement of
Tenant’s obligations hereunder. 
  
 (b)
Licenses and Permits. Tenant shall, at its sole cost and expense, obtain and keep in force during the Term, and all extensions thereof, all licenses, certificates and permits necessary for Tenant’s use and occupancy the Project
(including any certificates of occupancy with respect to Tenant’s Work under Exhibit C hereto) in accordance with applicable Laws. 
  
 (c) Landlord’s Right to Perform Tenant’s Obligations. If Tenant should fail to perform any of its obligations
under this Section 9, then Landlord may, if it so elects but expressly without any obligation to do so, following the expiration of any applicable notice and cure period provided herein, in addition to any other remedies provided herein, make such
payments. Any out-of-pocket sums expended by Landlord with respect to any of the foregoing shall be deemed to be Additional Rent owing by Tenant to Landlord and shall be due and payable within 30 days after written request therefor. 
  
 10. Use. Tenant shall use the Project only for the Permitted
Use, shall comply with all Laws relating to the use, condition, access to, and occupancy of the Project and will not commit waste, overload the Building’s Structure or the Building’s Systems or subject the Project to use that would damage
the Project. The Project shall not be used for any use which is disreputable, creates extraordinary fire hazards, or for the storage of any Hazardous Materials (except as provided in Section 26 hereto). Outside storage, including storage of trucks
or other vehicles, is prohibited without Landlord’s prior written consent. 
  
 11. Assignment and Subletting. 
  
 (a) Transfers. Except as provided in Sections 11(g) and 11(h), Tenant shall not, without the prior written consent of Landlord (which consent shall be given or withheld in accordance with Section 11(b)
below), (1) assign, transfer, or encumber this Lease or any estate or interest herein, whether directly or by operation of law, (2) permit any other entity to become Tenant hereunder by merger, consolidation, or other reorganization, (3) if Tenant
is an entity other than a corporation whose stock is publicly traded, permit the transfer of an ownership interest in Tenant so as to result in a change in the current control of Tenant, (4) sublet any portion of the Premises, (5) grant any license,
concession, or other right of occupancy of any portion of the Premises, or vi. permit the use of the Premises by any parties other than Tenant (any of the events listed in Section 11(a)(1) through 11(a)(6) being a
“Transfer”). 
  
 (b)
Consent Standards. Landlord shall not unreasonably withhold, delay or condition its consent to any assignment or subletting of the Premises, provided that the proposed transferee (1) is creditworthy, 

  

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(2) has a good reputation in the business community, (3) will use the Premises for the Permitted Use and will not use the Premises in any manner that would
conflict with any Law, and (4) is not a governmental entity, or subdivision or agency thereof; otherwise, Landlord may withhold its consent in its sole discretion. Additionally, Landlord may withhold its consent in its sole discretion to any
proposed Transfer if any Event of Default by Tenant then exists and is continuing. 
  
 (c) Request for Consent. If Tenant requests Landlord’s consent to a Transfer, then, at least 15 business days prior to
the effective date of the proposed Transfer, Tenant shall provide Landlord with a written description of all terms and conditions of the proposed Transfer, copies of the proposed documentation, and the following information about the proposed
transferee: name and address; reasonably satisfactory information about its business and business history; its proposed use of the Premises; banking, financial, and other credit information; and general references sufficient to enable Landlord to
determine the proposed transferee’s creditworthiness and character. Concurrently with Tenant’s notice of any request for consent to a Transfer, Tenant shall pay to Landlord a fee of $500 to defray Landlord’s expenses in reviewing such
request, and Tenant shall also reimburse Landlord immediately upon request for its reasonable attorneys’ fees incurred in connection with considering any request for consent to a Transfer. 
  
 (d) Conditions to Consent. If Landlord
consents to a proposed Transfer, then the proposed transferee shall deliver to Landlord a written agreement whereby it expressly assumes Tenant’s obligations hereunder; however, any transferee of less than all of the space in the Premises shall
be liable only for obligations under this Lease that are properly allocable to the space subject to the Transfer for the period of the Transfer. No Transfer shall release Tenant from its obligations under this Lease, but rather Tenant and its
transferee shall be jointly and severally liable therefor. Landlord’s consent to any Transfer shall not waive Landlord’s rights as to any subsequent Transfers. If an Event of Default occurs while the Premises or any part thereof are
subject to a Transfer, then Landlord, in addition to its other remedies, may collect directly from such transferee all rents becoming due to Tenant and apply such rents against Rent. Tenant authorizes its transferees to make payments of rent
directly to Landlord upon receipt of notice from Landlord to do so following the occurrence of an Event of Default hereunder. Tenant shall pay for the cost of any demising walls or other improvements necessitated by a proposed subletting or
assignment. 
  
 (e) Attornment by
Subtenants. Each sublease by Tenant hereunder shall be subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate, and each subtenant by entering into a sublease is deemed to have agreed that in
the event of termination, re-entry or dispossession by Landlord under this Lease, Landlord may, at its option, take over all of the right, title and interest of Tenant, as sublandlord, under such sublease, and such subtenant shall, at
Landlord’s option, attorn to Landlord pursuant to the then executory provisions of such sublease, except that Landlord shall not be (1) liable for any previous act or omission of Tenant under such sublease, (2) subject to any counterclaim,
offset or defense that such subtenant might have against Tenant, (3) bound by any previous modification of such sublease not approved by Landlord in writing or by any rent or additional rent or advance rent which such subtenant might have paid for
more than the current month to Tenant, and all such rent shall remain due and owing, notwithstanding such advance payment, (4) bound by any security or advance rental deposit made by such subtenant which is not delivered or paid over to Landlord and
with respect to which such subtenant shall look solely to Tenant for refund or reimbursement, or (5) obligated to perform any work in the subleased space or to prepare it for occupancy, and in connection with such attornment, the subtenant shall
execute and deliver to Landlord any instruments Landlord may reasonably request to evidence and confirm such attornment. Each subtenant or licensee of Tenant shall be deemed, automatically upon and as a condition of its occupying or using the
Premises or any part thereof, to have agreed to be bound by the terms and conditions set forth in this Section 11(e). The provisions of this Section 11(e) shall be self-operative, and no further instrument shall be required to give effect to this
provision. 
  
 (f) Additional
Compensation. While no Event of Default exists, Tenant shall pay to Landlord, immediately upon receipt thereof, fifty percent (50%) of the excess of (1) all compensation received by Tenant for a Transfer less the actual out-of-pocket costs
reasonably incurred by Tenant with unaffiliated third parties (i.e., brokerage commissions, marketing expenses directly attributable to the applicable transaction, attorneys’ fees and tenant finish work) in connection with such Transfer (such
costs shall be amortized on a straight-line basis over the term of the Transfer in question) over (2) the Rent allocable to the portion of the Premises covered thereby. While any Event of Default exists, Tenant shall pay to Landlord, immediately
upon receipt thereof, one hundred 

  

 6 

 
percent (100%) of the excess of (A) all compensation received by Tenant for a Transfer over (B) the Rent allocable to the portion of the Premises covered
thereby. The provisions of this Section 11(f) shall not apply to Permitted Transfers under Section 11(g) or permitted subleases under Section 11(h). 
  
 (g) Permitted Transfers. Notwithstanding Section 11(a), 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 consent of Landlord: 
  
 (1) an Affiliate of Tenant; 
  
 (2) any corporation, limited partnership, limited liability
partnership, 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 governing merger and consolidation
of business entities, so long as (A) Tenant’s obligations 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
$100,000,000; or 
  
 (3) any corporation, limited
partnership, limited liability partnership, limited liability company 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 $100,000,000.

  
 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 assume in writing the
obligations of Tenant hereunder. Additionally, the Permitted Transferee shall comply with all of the terms and conditions of this Lease, including the Permitted Use, and the use of the Premises by the Permitted Transferee may not violate any other
agreements affecting the Project. No later than 30 days after the effective date of any Permitted Transfer, Tenant agrees to furnish Landlord with (A) copies of the instrument effecting any of the foregoing Transfers, (B) documentation establishing
Tenant’s satisfaction of the requirements set forth above applicable to any such Transfer, and (C) evidence of insurance as required under this Lease with respect to the Permitted Transferee. 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 liabilities, in each case as determined in accordance with generally accepted accounting principles
consistently applied (“GAAP”), excluding, however, from the determination of total assets all assets which would be classified as intangible assets under GAAP including goodwill, licenses, patents, trademarks, trade names,
copyrights, and franchises. Any subsequent Transfer by a Permitted Transferee shall be subject to the terms of this Section 11. 
  
 (h) Permitted Subleasing. Notwithstanding Section 11(a) and provided no Event of Default by Tenant then exists and is
continuing, Tenant may, without obtaining Landlord’s consent or approval, enter into one or more subleases for space in the Building provided that such subleased space does not exceed, in the aggregate, more than 50,000 rentable square feet in
the Building. Any such sublease shall be subject to, and subordinate to, the terms of this Lease, and Tenant shall comply with the provisions of Section 11(e) above with respect to each sublease permitted under this Section 11(h) as if each such
sublease were a Permitted Transferee, including delivering to Landlord a copy of each such sublease and evidence of insurance as required from all Permitted Transferees under Section 11(e). 
  
 12. Insurance; Waivers; Subrogation; Indemnity. 
  
 (a) Insurance. Tenant shall maintain insurance
policies in accordance with Exhibit G hereto and deliver the same to Landlord as more particularly described in Exhibit G hereto. 
  
 (b) No Subrogation; Waiver of Property Claims. Landlord and Tenant each waives any claim it might have against the other for
any damage to or theft, destruction, loss, or loss of use of any property, to the extent the same is insured against under any insurance policy of the types described in this Section 12 that covers the Project, the Premises, Landlord’s or
Tenant’s fixtures, personal property, leasehold improvements, or business, 

  

 7 

 
or is required to be insured against under the terms hereof, regardless of whether the negligence of the other party caused such Loss. Additionally,
Tenant waives any claim it may have against Landlord for any Loss to the extent such Loss is caused by a terrorist act. Each party shall cause its insurance carrier to endorse all applicable policies waiving the carrier’s rights of recovery
under subrogation or otherwise against the other party. Notwithstanding any provision in this Lease to the contrary, Landlord, its agents, employees and contractors shall not be liable to Tenant or to any party claiming by, through or under Tenant
for (and Tenant hereby releases Landlord and its servants, agents, contractors, employees and invitees from any claim or responsibility for) any damage to or destruction, loss, or loss of use, or theft of any property of any Tenant Party located in
or about the Project, caused by casualty, theft, fire, third parties or any other matter or cause, regardless of whether the negligence of any party caused such loss in whole or in part. Tenant acknowledges that Landlord shall not carry
insurance on, and shall not be responsible for damage to, any property of any Tenant Party located in or about the Project. 
  
 (c) Indemnity. Subject to Section 12(b), Tenant shall defend, indemnify, and hold harmless Landlord and its representatives
and agents from and against all claims, demands, liabilities, causes of action, suits, judgments, damages, and expenses (including reasonable attorneys’ fees) arising from any injury to or death of any person or the damage to or theft,
destruction, loss, or loss of use of, any property or inconvenience (a “Loss”) occurring in or on the Project. It being agreed that this indemnity are intended to indemnify Landlord and its agents against the consequences
of their own negligence or fault, even when Landlord or its agents are jointly, comparatively, contributively, or concurrently negligent with Tenant, and even though any such claim, cause of action or suit is based upon or alleged to be based upon
the strict liability of Landlord or its agents; however, such indemnity shall not apply to the gross negligence or willful misconduct of Landlord and its agents. The indemnities set forth in this Lease shall survive termination or expiration of
this Lease and shall not terminate or be waived, diminished or affected in any manner by any abatement or apportionment of Rent under any provision of this Lease. If any proceeding is filed for which indemnity is required hereunder, the indemnifying
party agrees, upon request therefor, to defend the indemnified party in such proceeding at its sole cost utilizing counsel satisfactory to the indemnified party. 
  
 13. Subordination; Attornment; Notice to Landlord’s Mortgagee. 
  
 (a) Subordination. This Lease shall be
subordinate to any deed of trust, mortgage, or other security instrument (each, a “Mortgage”), or any ground lease, master lease, or primary lease (each, a “Primary Lease”), that now or hereafter
covers all or any part of the Premises (the mortgagee under any such Mortgage, beneficiary under any such deed of trust, or the lessor under any such Primary Lease is referred to herein as a “Landlord’s Mortgagee”).
Landlord hereby represents to Tenant that there is currently no Mortgage encumbering the Project. In the event any Mortgage hereafter covers all or any part of the Premises, Landlord shall use commercially reasonable efforts to obtain a
subordination, non-disturbance and attornment agreement from the current Landlord’s Mortgagee. Any Landlord’s Mortgagee may elect, at any time, unilaterally, to make this Lease superior to its Mortgage, Primary Lease, or other interest in
the Premises by so notifying Tenant in writing. The provisions of this Section shall be self-operative and no further instrument of subordination shall be required; however, in confirmation of such subordination and provided Tenant receives a
reasonably satisfactory non-disturbance agreement from Landlord’s Mortgagee, Tenant shall execute and return to Landlord (or such other party designated by Landlord) within ten days after written request therefor such documentation, in
recordable form if required, as a Landlord’s Mortgagee may reasonably request to evidence the subordination of this Lease to such Landlord’s Mortgagee’s Mortgage or Primary Lease (including a subordination, non-disturbance and
attornment agreement) or, if the Landlord’s Mortgagee so elects, the subordination of such Landlord’s Mortgagee’s Mortgage or Primary Lease to this Lease. 
  
 (b) Attornment. Tenant shall attorn to any party succeeding to Landlord’s interest in the
Premises, whether by purchase, foreclosure, deed in lieu of foreclosure, power of sale, termination of lease, or otherwise, upon such party’s request, and shall execute such agreements confirming such attornment as such party may reasonably
request. 
  
 (c) Notice to Landlord’s
Mortgagee. Tenant shall not seek to enforce any remedy it may have for any default on the part of Landlord without first giving written notice by certified mail, return receipt requested, specifying the default in reasonable detail, to any
Landlord’s Mortgagee whose address has been given to 

  

 8 

 
Tenant, and affording such Landlord’s Mortgagee a reasonable opportunity to perform Landlord’s obligations hereunder. 
  
 (d) Landlord’s Mortgagee’s Protection
Provisions. If Landlord’s Mortgagee shall succeed to the interest of Landlord under this Lease, Landlord’s Mortgagee shall not be: (1) liable for any act or omission of any prior lessor (including Landlord); (2) bound by any rent
or additional rent or advance rent which Tenant might have paid for more than the current month to any prior lessor (including Landlord), and all such rent shall remain due and owing, notwithstanding such advance payment; (3) bound by any security
or advance rental deposit made by Tenant which is not delivered or paid over to Landlord’s Mortgagee and with respect to which Tenant shall look solely to Landlord for refund or reimbursement; (4) bound by any termination, amendment or
modification of this Lease made without Landlord’s Mortgagee’s consent (provided that Landlord or Landlord’s Mortgagee has delivered written notification of the name and address of Landlord’s Mortgagee and such termination,
amendment or modification is entered into by Tenant following the date of such notification of the name and mailing address of Landlord’s Mortgagee) that (A) results in a reduction of rent or other sums due and payable pursuant to this Lease
(B) modifies any operating covenant of Tenant in this Lease, (C) reduces the Term of this Lease, (D) terminates the Lease, (E) modifies the terms of the Lease regarding surrendering possession of the Premises, (F) provides for payment of Basic
Rental more than one month in advance, (G) modifies the Permitted Use under the Lease, (H) modifies the provisions regarding Tenant’s obligation to comply with all Laws, or (I) materially increases Landlord’s or decreases Tenant’ s
obligations under the Lease; (5) subject to the defenses which Tenant might have against any prior lessor (including Landlord); and (6) subject to the offsets which Tenant might have against any prior lessor (including Landlord) except for those
offset rights which (A) are expressly provided in this Lease, (B) relate to periods of time following the acquisition of the Building by Landlord’s Mortgagee, and (C) Tenant has provided written notice to Landlord’s Mortgagee and provided
Landlord’s Mortgagee a reasonable opportunity to cure the event giving rise to such offset event. Landlord’s Mortgagee shall have no liability or responsibility under or pursuant to the terms of this Lease or otherwise after it ceases to
own an interest in the Project. Nothing in this Lease shall be construed to require Landlord’s Mortgagee to see to the application of the proceeds of any loan, and Tenant’s agreements set forth herein shall not be impaired on account of
any modification of the documents evidencing and securing any loan. 
  
 14. Rules and Regulations. Tenant shall comply with the rules and regulations of the Project which are attached hereto as Exhibit B. Landlord may, from time to time with Tenant’s prior written consent while Tenant
is leasing the entire Project, change such rules and regulations for the safety, care, or cleanliness of the Project and related facilities, provided that such changes are applicable to all other tenants (if any) of the Project, will not
unreasonably interfere with Tenant’s use of the Premises and are enforced by Landlord in a non-discriminatory manner. Tenant shall be responsible for the compliance with such rules and regulations by each Tenant Party. 
  
 15. Condemnation. 
  
 (a) Total Taking. If the entire Building or
Premises are taken by right of eminent domain or conveyed in lieu thereof (a “Taking”), this Lease shall terminate as of the date of the Taking. 
  
 (b) Partial Taking - Tenant’s Rights. If any part of the Building becomes subject to a
Taking and such Taking will prevent Tenant from conducting on a permanent basis its business in the Premises in a manner reasonably comparable to that conducted immediately before such Taking, then Tenant may terminate this Lease as of the date of
such Taking by giving written notice to Landlord within 30 days after the Taking, and Basic Rent and Additional Rent shall be apportioned as of the date of such Taking. If Tenant does not terminate this Lease, then Rent shall be abated on a
reasonable basis as to that portion of the Premises rendered untenantable by the Taking. 
  
 (c) Partial Taking - Landlord’s Rights. If any material portion, but less than all, of the Building becomes subject to
a Taking, or if Landlord is required to pay any of the proceeds arising from a Taking to a Landlord’s Mortgagee, then Landlord may terminate this Lease by delivering written notice thereof to Tenant within 30 days after such Taking, and Basic
Rent and Additional Rent shall be apportioned as of the date of such Taking. If Landlord does not so terminate this Lease, then this Lease will continue, but if any portion of the Premises has been taken, Rent shall abate as provided in the last
sentence of Section 15(b). 
  

 9 

 (d) Temporary Taking. If all or any portion of the Premises becomes subject
to a Taking for a limited period of time (up to a maximum of 180 days), this Lease shall remain in full force and effect and Tenant shall continue to perform all of the terms, conditions and covenants of this Lease; however, Rent shall be abated on
a reasonable basis as to that portion of the Premises rendered untenantable by the Taking. If any such temporary Taking terminates prior to the expiration of the Term, Landlord shall restore the Premises as nearly as possible to the condition prior
to such temporary Taking, at Landlord’s sole cost and expense. Landlord shall be entitled to receive the entire award for any such temporary Taking. 
  
 (e) Award. If any Taking occurs, then Landlord shall make a claim for, and be entitled to receive the award or other
compensation for the Land, the Building, and other improvements taken. Tenant shall make a claim for, and be entitled to receive the award for the value of Tenant’s leasehold estate, Tenant’s personal property which Tenant is entitled to
remove under this Lease, moving costs, loss of business, and other claims it may have. 
  
 16. Fire or Other Casualty. 
  
 (a) Repair Estimate. If the Premises or the Building are damaged by fire or other casualty (a “Casualty”), Tenant shall immediately notify Landlord thereof and Landlord shall,
within 75 days after such Casualty, deliver to Tenant a good faith estimate (the “Damage Notice”) of the time needed to repair the damage caused by such Casualty and the time period reasonably estimated to commence the
repairs. 
  
 (b) Tenant’s
Rights. If a material portion of the Premises is damaged by Casualty such that Tenant is prevented from conducting its business in the Premises in a manner reasonably comparable to that conducted immediately before such Casualty and Landlord
estimates that the damage caused thereby cannot be repaired within 15 months after the date of the Damage Notice (the “Repair Period”), then Tenant may terminate this Lease by delivering written notice to Landlord of its
election to terminate within 30 days after the Damage Notice has been delivered to Tenant. 
  
 (c) Landlord’s Rights. If a Casualty damages the Premises or a material portion of the Building and (1) Landlord
estimates that the damage to the Premises cannot be repaired within the Repair Period, (2) the damage to the Premises exceeds 50% of the replacement cost thereof (excluding foundations and footings), as estimated by Landlord, and such damage occurs
during the last two years of the Term, (3) regardless of the extent of damage to the Premises, the damage is not fully covered by Tenant’s insurance policies or Landlord makes a good faith determination that restoring the Building would be
uneconomical, or (4) Landlord is required to pay any material portion of insurance proceeds arising out of the Casualty to a Landlord’s Mortgagee, then Landlord may terminate this Lease by giving written notice of its election to terminate
within 30 days after the Damage Notice has been delivered to Tenant. 
  
 (d) Repair Obligation. If neither party elects to terminate this Lease following a Casualty, then Landlord shall, within a reasonable time after such Casualty (and subject to the availability and
sufficiency of proceeds from Tenant’s insurance carriers), begin to repair the Premises and shall proceed with reasonable diligence to restore the Premises to substantially the same condition as they existed immediately before such Casualty;
however, Landlord shall not be required to repair or replace any alterations or betterments within the Premises (which shall be promptly and with due diligence repaired and restored by Tenant at Tenant’s sole cost and expense) or any furniture,
equipment, trade fixtures or personal property of Tenant or others in the Premises or the Building, and Landlord’s obligation to repair or restore the Premises shall be limited to the extent of the insurance proceeds actually received by
Landlord for the Casualty in question. If this Lease is terminated under the provisions of this Section 16, Landlord shall be entitled to the full proceeds of the insurance policies providing coverage for all alterations, improvements and
betterments in the Premises (and, if Tenant has failed to maintain insurance on such items as required by this Lease, Tenant shall pay Landlord an amount equal to the proceeds Landlord would have received had Tenant maintained insurance on such
items as required by this Lease), but Tenant shall be entitled the insurance proceeds allocable to Tenant’s personal property, furnishings, copiers, computers and printers. 
  
 (e) Abatement of Rent. If the Premises are damaged by Casualty, Rent for the portion of the
Premises rendered untenantable by the damage shall be abated on a reasonable basis from the date of damage 

  

 10 

 
until the completion of Landlord’s repairs (or until the date of termination of this Lease by Landlord or Tenant as provided above, as the case may be).

  
 17. Personal Property Taxes. Tenant shall be
liable for all taxes levied or assessed against personal property, furniture, or fixtures placed by Tenant in the Premises or in or on the Building or Project. If any taxes for which Tenant is liable are levied or assessed against Landlord or
Landlord’s property and Landlord elects to pay the same, or if the assessed value of Landlord’s property is increased by inclusion of such personal property, furniture or fixtures and Landlord elects to pay the taxes based on such
increase, then Tenant shall pay to Landlord, within 30 days following written request therefor, the part of such taxes for which Tenant is primarily liable hereunder; however, Landlord shall not pay such amount if Tenant notifies Landlord that it
will contest the validity or amount of such taxes before Landlord makes such payment, and thereafter diligently proceeds with such contest in accordance with Law and if the non-payment thereof does not pose a threat of loss or seizure of the Project
or interest of Landlord therein or impose any fee or penalty against Landlord. 
  
 18. Events of Default. Each of the following occurrences shall be an “Event of Default”: 
  

(a) Payment Default. Tenant’s failure to pay Rent within five days after Landlord has delivered written notice to
Tenant that the same is due; however, an Event of Default shall occur hereunder without any obligation of Landlord to give any notice if Tenant fails to pay Rent when due and, during the 12 month interval preceding such failure, Landlord has given
Tenant written notice of failure to pay Rent on two or more occasions; 
  
 (b) Abandonment. Tenant (but not any permitted sublessee) abandons the Premises or any substantial portion thereof; 
  
 (c) Estoppel. Tenant fails to provide any estoppel certificate after Landlord’s written
request therefor pursuant to Section 25(e) and such failure shall continue for five business days after Landlord’s second written notice thereof to Tenant; 
  
 (d) Insurance. Tenant fails to procure, maintain and deliver to Landlord evidence of the
insurance policies and coverages as required under Exhibit G; 
  
 (e) Mechanic’s Liens. Tenant fails to pay and release of record, or diligently contest and bond around, any mechanic’s lien filed against the Premises or the Project for any work performed,
materials furnished, or obligation incurred by or at the request of Tenant, within the time and in the manner required by Section 8(d); 
  
 (f) Other Defaults. Tenant’s failure to perform, comply with, or observe any other agreement or obligation of Tenant
under this Lease and the continuance of such failure for a period of more than 30 days after Landlord has delivered to Tenant written notice thereof; however, if such failure cannot be cured within such 30-day period (thus excluding, for example,
Tenant’s obligation to provide Landlord evidence of Tenant’s insurance coverage or the letters of credit at the time required under Section 29) and Tenant commences to cure such failure within such 30-day period and thereafter diligently
pursues such cure to completion, then such failure shall not be an Event of Default unless it is not fully cured within an additional 180 days (or, if earlier, no later than 60 days prior to the expiration or termination of the Term); and

  
 (g) Insolvency. The filing of a
petition by or against Tenant (the term “Tenant” shall include, for the purpose of this Section 18(g), any guarantor of Tenant’s obligations hereunder) (1) in any bankruptcy or other insolvency proceeding; (2) seeking any relief under
any state or federal debtor relief law; (3) for the appointment of a liquidator or receiver for all or substantially all of Tenant’s property or for Tenant’s interest in this Lease; (4) for the reorganization or modification of
Tenant’s capital structure; or (5) in any assignment for the benefit of creditors proceeding; however, if such a petition is filed against Tenant, then such filing shall not be an Event of Default unless Tenant fails to have the proceedings
initiated by such petition dismissed within 90 days after the filing thereof. 
  

 11 

 19. Remedies. Upon any Event of Default, Landlord may, in addition to all other rights and
remedies afforded Landlord hereunder or by law or equity, take any one or more of the following actions: 
  
 (a) Termination of Lease. Terminate this Lease by giving Tenant written notice thereof, in which event Tenant shall pay to
Landlord the sum of (1) all Rent accrued hereunder through the date of termination, (2) all amounts due under Section 20(a), and iii. an amount equal to (A) the total Rent that Tenant would have been required to pay for the remainder of the Term
discounted to present value at a per annum rate equal to the “Prime Rate” as published on the date this Lease is terminated by The Wall Street Journal, Southwest Edition, in its listing of “Money Rates”, minus (B) the then
present fair rental value of the Premises for such period, similarly discounted; 
  
 (b) Termination of Possession. Terminate Tenant’s right to possess the Premises without terminating this Lease by
giving written notice thereof to Tenant, in which event Tenant shall pay to Landlord (1) all Rent and other amounts accrued hereunder to the date of termination of possession, (2) all amounts due from time to time under Section 20(a), and (3) all
Rent and other net sums required hereunder to be paid by Tenant during the remainder of the Term, diminished by any net sums thereafter received by Landlord through reletting the Premises during such period, after deducting all costs incurred by
Landlord in reletting the Premises. If Landlord elects to proceed under this Section 19(b), Landlord may remove all of Tenant’s property from the Premises and store the same in a public warehouse or elsewhere at the cost of, and for the account
of, Tenant, without becoming liable for any loss or damage which may be occasioned thereby. Landlord shall use reasonable efforts to relet the Premises on such terms as Landlord in its sole discretion may determine (including a term different from
the Term, rental concessions, and alterations to, and improvement of, the Premises); however, Landlord shall not be obligated to relet the Premises before leasing other portions of the Building and Landlord shall not be obligated to accept any
prospective tenant proposed by Tenant unless such proposed tenant meets all of Landlord’s leasing criteria. Landlord shall not be liable for, nor shall Tenant’s obligations hereunder be diminished because of, Landlord’s failure to
relet the Premises or to collect rent due for such reletting. Tenant shall not be entitled to the excess of any consideration obtained by reletting over the Rent due hereunder. Reentry by Landlord in the Premises shall not affect Tenant’s
obligations hereunder for the unexpired Term; rather, Landlord may, from time to time, bring an action against Tenant to collect amounts due by Tenant, without the necessity of Landlord’s waiting until the expiration of the Term. Unless
Landlord delivers written notice to Tenant expressly stating that it has elected to terminate this Lease, all actions taken by Landlord to dispossess or exclude Tenant from the Premises shall be deemed to be taken under this Section 19(b). If
Landlord elects to proceed under this Section 19(b), it may at any time elect to terminate this Lease under Section 19(a); 
  
 (c) Perform Acts on Behalf of Tenant. Perform any act Tenant is obligated to perform under the terms of this Lease (and
enter upon the Premises in connection therewith if necessary) in Tenant’s name and on Tenant’s behalf, without being liable for any claim for damages therefor, and Tenant shall reimburse Landlord on demand for any expenses which Landlord
may incur in thus effecting compliance with Tenant’s obligations under this Lease (including, but not limited to, collection costs and legal expenses), plus interest thereon at the Default Rate; 
  
 (d) Suspension of Services. Suspend any
services required to be provided by Landlord hereunder without being liable for any claim for damages therefor; or 
  
 (e) Alteration of Locks. Additionally, with or without notice, and to the extent permitted by Law, Landlord may alter locks
or other security devices at the Premises to deprive Tenant of access thereto, and Landlord shall not be required to provide a new key or right of access to Tenant. 
  
 20. Payment by Tenant; Non-Waiver; Cumulative Remedies. 
  
 (a) Payment by Tenant. Upon any Event of
Default, Tenant shall pay to Landlord all costs incurred by Landlord (including court costs and reasonable attorneys’ fees and expenses) in (1) obtaining possession of the Premises, (2) removing and storing Tenant’s or any other
occupant’s property, (3) repairing, restoring, altering, remodeling, or otherwise putting the Premises into the condition required by market conditions then prevailing so as to be reasonably acceptable to a new tenant, as determined in
Landlord’s sole discretion, (4) if Tenant is dispossessed of the Premises and this Lease is not terminated, reletting all or any part of the Premises (including brokerage commissions, cost of tenant finish work, and other costs incidental to
such reletting), 

  

 12 

 
(5) performing Tenant’s obligations which Tenant failed to perform, and (6) enforcing, or advising Landlord of, its rights, remedies, and recourses
arising out of the default. To the full extent permitted by law, Landlord and Tenant agree the federal and state courts of the state in which the Premises are located shall have exclusive jurisdiction over any matter relating to or arising from this
Lease and the parties’ rights and obligations under this Lease. 
  
 (b) No Waiver. Landlord’s acceptance of Rent following an Event of Default shall not waive Landlord’s rights regarding such Event of Default. No waiver by Landlord of any violation or breach of
any of the terms contained herein shall waive Landlord’s rights regarding any future violation of such term. Landlord’s acceptance of any partial payment of Rent shall not waive Landlord’s rights with regard to the remaining portion
of the Rent that is due, regardless of any endorsement or other statement on any instrument delivered in payment of Rent or any writing delivered in connection therewith; accordingly, Landlord’s acceptance of a partial payment of Rent shall not
constitute an accord and satisfaction of the full amount of the Rent that is due. 
  
 (c) Cumulative Remedies. Any and all remedies set forth in this Lease: (1) shall be in addition to any and all other
remedies Landlord may have at law or in equity, (2) shall be cumulative, and (3) may be pursued successively or concurrently as Landlord may elect. The exercise of any remedy by Landlord shall not be deemed an election of remedies or preclude
Landlord from exercising any other remedies in the future. Additionally, Tenant shall defend, indemnify and hold harmless Landlord, Landlord’s Mortgagee and their respective representatives and agents from and against all claims, demands,
liabilities, causes of action, suits, judgments, damages and expenses (including reasonable attorneys’ fees) arising from Tenant’s failure to perform its obligations under this Lease. 
  
 21. Landlord’s Lien. [Intentionally deleted.] 

 
 22. Surrender of Project. No act by Landlord shall be deemed
an acceptance of a surrender of the Project, and no agreement to accept a surrender of the Project shall be valid unless it is in writing and signed by Landlord. At the expiration or termination of this Lease, Tenant shall deliver to Landlord the
Project with all improvements located therein in good repair and condition, free of Hazardous Materials placed on the Project during the Term, broom-clean, reasonable wear and tear (and condemnation and Casualty damage not caused by Tenant, as to
which Sections 15 and 16 shall control) excepted, and shall deliver to Landlord all keys to the Premises. Provided that Tenant has performed all of its obligations hereunder, Tenant may remove all unattached trade fixtures, furniture, and personal
property placed in the Premises or elsewhere in the Building by Tenant (but Tenant may not remove any such item which was paid for, in whole or in part, by Landlord or any wiring or cabling unless Landlord requires such removal). All alterations,
additions or improvements made in or upon the Premises shall, at Landlord’s option (to be exercised pursuant to following sentence), either be removed at the expiration or termination of this Lease (and Tenant shall repair all damage caused
thereby), or shall remain in the Premises at the end of the Term without compensation to Tenant. In connection with Landlord’s review and approval of any of Tenant’s proposed alterations, additions or improvements to the Premises, Landlord
shall notify Tenant in writing, contemporaneously with Landlord’s notice of approval to Tenant with respect to the improvements in question, that Landlord will require Tenant to remove such alterations prior to the expiration or termination of
this Lease. If Landlord reviews and approves of any alterations or improvements but fails to notify Tenant that Landlord will require the removal of all or any part of such improvements or alterations, then Landlord shall not have the right to
require the removal thereof at the end of the Term. Notwithstanding the foregoing, if Tenant does not obtain Landlord’s prior written consent for any alterations, additions or improvements to the Premises (whether such approval is required
hereunder or otherwise), Tenant shall, at Landlord’s written request, remove all such alterations, additions, improvements, trade fixtures, personal property, equipment, wiring, conduits, cabling, and furniture as Landlord may request; however,
Tenant shall not be required to remove any addition or improvement to the Premises or the Project if Landlord has specifically agreed in writing that the improvement or addition in question need not be removed or if Landlord has waived its right to
require the removal thereof as provided above. Tenant shall repair all damage caused by such removal. All items not so removed shall, at Landlord’s option, be deemed to have been abandoned by Tenant and may be appropriated, sold, stored,
destroyed, or otherwise disposed of by Landlord without notice to Tenant and without any obligation to account for such items. The provisions of this Section 22 shall survive the end of the Term. 
  
 23. Holding Over. If Tenant fails to vacate the Project at the
end of the Term, then Tenant shall be a tenant at sufferance and, in addition to all other damages and remedies to which Landlord may be entitled for such 

  

 13 

 
holding over, (a) Tenant shall pay, in addition to the other Rent, Basic Rent equal to the greater of (1) 200% of the Rent payable during the last month of
the Term, or (2) 125% of the prevailing rental rate in the market in which the Building is located for similar space, and (b) Tenant shall otherwise continue to be subject to all of Tenant’s obligations under this Lease. The provisions of this
Section 23 shall not be deemed to limit or constitute a waiver of any other rights or remedies of Landlord provided herein or at law. If Tenant fails to surrender the Project upon the termination or expiration of this Lease, in addition to any other
liabilities to Landlord accruing therefrom, Tenant shall protect, defend, indemnify and hold Landlord harmless from all loss, costs (including reasonable attorneys’ fees) and liability resulting from such failure, including any claims made by
any succeeding tenant founded upon such failure to surrender, and any lost profits to Landlord resulting therefrom. 
  
 24. Certain Rights Reserved by Landlord. Provided that the exercise of such rights does not unreasonably interfere with Tenant’s
occupancy of the Premises, Landlord shall have the following rights: 
  
 (a) Building Operations. To make inspections, repairs, alterations, additions, changes, or improvements, whether structural or otherwise, in and about the Project, or any part thereof; to enter upon the
Premises (after giving Tenant reasonable notice thereof, which may be oral notice, except in cases of real or apparent emergency, in which case no notice shall be required) and, during the continuance of any such work, to temporarily close doors,
entryways, public space, and corridors in the Building; to interrupt or temporarily suspend Building services and facilities; 
  
 (b) Security. To take such reasonable measures as Landlord deems advisable for the security of the Building and its
occupants; evacuating the Building for cause, suspected cause, or for drill purposes; temporarily denying access to the Building; 
  
 (c) Prospective Purchasers and Lenders. Upon reasonable prior notice (which notice may be verbal) to Tenant and providing a
representative of Tenant a reasonable opportunity to be present, to enter the Premises at all reasonable hours to show the Premises to prospective purchasers or lenders; and 
  
 (d) Prospective Tenants. At any time during the last 12 months of the Term upon reasonable
prior notice (which notice may be verbal) to Tenant, or at any time following the occurrence of an Event of Default, to enter the Premises at all reasonable hours to show the Premises to prospective tenants. 
  
 25. Miscellaneous. 
  
 (a) Landlord Transfer. Landlord may transfer
any portion of the Project and any of its rights under this Lease. If Landlord assigns its rights under this Lease, then Landlord shall thereby be released from any further obligations hereunder arising after the date of transfer, provided that the
assignee assumes in writing Landlord’s obligations hereunder arising from and after the transfer date. 
  
 (b) Landlord’s Liability. The liability of Landlord (and its partners, shareholders or members) to Tenant (or any
person or entity claiming by, through or under Tenant) for any default by Landlord under the terms of this Lease or any matter relating to or arising out of the occupancy or use of the Premises and/or other areas of the Building shall be limited to
Tenant’s actual direct, but not consequential, damages therefor and shall be recoverable only from the equity interest of Landlord in the Building, and Landlord (and its partners, shareholders or members) shall not be personally liable for any
deficiency. Additionally, Tenant hereby waives its statutory lien under Section 91.004 of the Texas Property Code. 
  
 (c) Force Majeure. Other than for Tenant’s obligations under this Lease that can be performed by the payment of money
(e.g., payment of Rent and maintenance of insurance), whenever a period of time is herein prescribed for action to be taken by either party hereto, such party shall not be liable or responsible for, and there shall be excluded from the computation
of any such period of time, any delays due to strikes, riots, acts of God, shortages of labor or materials, war, terrorist acts or activities, governmental laws, regulations, or restrictions, or any other causes of any kind whatsoever which are
beyond the control of such party. 
  

 14 

 (d) Brokerage. Neither Landlord nor Tenant has dealt with any broker or
agent in connection with the negotiation or execution of this Lease, other than Stoneleigh Huff Brous McDowell, L.P. (“Tenant’s Broker”) and John F. Brownlee, whose commissions shall be paid by Landlord pursuant to
separate written agreements. Tenant’s Broker may elect to share its commission with any other licensed broker, but Landlord shall have no obligation to pay broker (other than Tenant’s Broker). Tenant and Landlord shall each indemnify the
other against all costs, expenses, attorneys’ fees, liens and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under the indemnifying party. For the purposes of the preceding
sentence, any broker claiming under Tenant’s Broker, including The Staubach Company, shall be deemed to be claiming a commission by, through and under Tenant. 
  
 (e) Estoppel Certificates. From time to time, Tenant shall furnish to any party designated by
Landlord, within ten days after Landlord has made a request therefor, a certificate signed by Tenant confirming and containing such factual certifications and representations as to this Lease as Landlord may reasonably request. Unless otherwise
required by Landlord’s Mortgagee or a prospective purchaser or mortgagee of the Project, the initial form of estoppel certificate to be signed by Tenant is attached hereto as Exhibit E. If Tenant does not deliver to Landlord the
certificate signed by Tenant within such time period, Landlord, Landlord’s Mortgagee and any prospective purchaser or mortgagee, may conclusively presume and rely upon the following facts: (1) this Lease is in full force and effect; (2) the
terms and provisions of this Lease have not been changed except as otherwise represented by Landlord; (3) not more than one monthly installment of Basic Rent and other charges have been paid in advance; (4) there are no claims against Landlord nor
any defenses or rights of offset against collection of Rent or other charges; and (5) Landlord is not in default under this Lease. In such event, Tenant shall be estopped from denying the truth of the presumed facts. From time to time, Landlord
shall furnish to any party designated by Tenant, within 15 business days after Tenant has made a request therefor, a certificate signed by Landlord certifying whether or not there are any monetary defaults by Tenant and, to Landlord’s
knowledge, any non-monetary defaults by Tenant then existing under this Lease. 
  
 (f) Notices. All notices and other communications given pursuant to this Lease shall be in writing and shall be (1) mailed
by first class, United States Mail, postage prepaid, certified, with return receipt requested, and addressed to the parties hereto at the address specified in the Basic Lease Information, (2) hand delivered to the intended addressee, (3) sent by a
nationally recognized overnight courier service, or (4) sent by facsimile transmission during normal business hours followed by a confirmatory letter sent in another manner permitted hereunder. All notices shall be effective upon delivery to the
address of the addressee (even if such addressee refuses delivery thereof). The parties hereto may change their addresses by giving notice thereof to the other in conformity with this provision. 
  
 (g) Separability. If any clause or provision
of this Lease is illegal, invalid, or unenforceable under present or future laws, then the remainder of this Lease shall not be affected thereby and in lieu of such clause or provision, there shall be added as a part of this Lease a clause or
provision as similar in terms to such illegal, invalid, or unenforceable clause or provision as may be possible and be legal, valid, and enforceable. 
  
 (h) Amendments; Binding Effect. This Lease may not be amended except by instrument in writing signed by Landlord and Tenant.
No provision of this Lease shall be deemed to have been waived by Landlord unless such waiver is in writing signed by Landlord, and no custom or practice which may evolve between the parties in the administration of the terms hereof shall waive or
diminish the right of Landlord to insist upon the performance by Tenant in strict accordance with the terms hereof. The terms and conditions contained in this Lease shall inure to the benefit of and be binding upon the parties hereto, and upon their
respective successors in interest and legal representatives, except as otherwise herein expressly provided. This Lease is for the sole benefit of Landlord and Tenant, and, other than Landlord’s Mortgagee, no third party shall be deemed a third
party beneficiary hereof. 
  
 (i) Quiet
Enjoyment. Provided Tenant has performed all of its obligations hereunder, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without hindrance from Landlord or any party claiming by, through, or under Landlord, but
not otherwise, subject to the terms and conditions of this Lease. 
  

 15 

 (j) No Merger. There shall be no merger of the leasehold estate hereby
created with the fee estate in the Premises or any part thereof if the same person acquires or holds, directly or indirectly, this Lease or any interest in this Lease and the fee estate in the leasehold Premises or any interest in such fee estate.

  
 (k) No Offer. The submission of
this Lease to Tenant shall not be construed as an offer, and Tenant shall not have any rights under this Lease unless Landlord executes a copy of this Lease and delivers it to Tenant. 
  
 (l) Entire Agreement. This Lease constitutes the entire agreement between Landlord and Tenant
regarding the subject matter hereof and supersedes all oral statements and prior writings relating thereto. Except for those set forth in this Lease, no representations, warranties, or agreements have been made by Landlord or Tenant to the other
with respect to this Lease or the obligations of Landlord or Tenant in connection therewith. The normal rule of construction that any ambiguities be resolved against the drafting party shall not apply to the interpretation of this Lease or any
exhibits or amendments hereto. 
  
 (m)
Replacement Building. Landlord’s obligations under this Lease are expressly conditioned upon Landlord’s acquisition of the Project or another suitable replacement project as described below. If the purchase and sale agreement
between the current owner of the Project and Landlord is not consummated, then Landlord and Tenant will work in good faith (for a period not to exceed 17 months following the Lease Date) to select another project reasonably acceptable to both
Landlord and Tenant. To that end, Landlord and Tenant have tentatively selected the projects located at 2250 Lakeside Boulevard in Richardson, Texas commonly known as Lakeside Centre I and the office building located at 2323 North Central Expressway
in Richardson, Texas commonly known as Fall Creek as mutually acceptable replacement projects. If another project is selected by Landlord and Tenant (i.e., any project other than the Project named herein, Lakeside Centre I or Fall Creek), then both
parties shall negotiate in good faith for mutually satisfactory lease terms taking into consideration all material items, including the price and condition of the selected building, the amount of tenant improvement allowances necessary, single
tenant versus multi-tenant buildings, and any increases in the 10 year Treasury note interest rate after the date hereof. To the extent that Landlord does not close on the acquisition of the Project or another project reasonably acceptable to
Landlord and Tenant 150 days prior to the date that is 17 months after the Lease Date, then Landlord may terminate this Lease by giving Tenant written notification thereof, and neither party shall have any further liability to each other, except
those expressly surviving the expiration or termination hereof. Alternatively and at Landlord’s election, if Landlord and Tenant are unable to agree as to any replacement building (other than Lakeside Centre I or Fall Creek, both of which have
been pre-approved by Landlord and Tenant) or any applicable changes to the terms of this Lease as provided above, then Landlord shall have the right to select another building reasonably comparable in size, age, class, and condition to the Project
located at 5525 LBJ in Dallas, Texas. Such replacement building shall be located in the LBJ, Park Central, North Dallas or Richardson office submarkets and Landlord notify Tenant of the identity thereof and any applicable changes to the lease terms
(with any such changes determined using the factors listed above). Tenant shall have seven business days to notify Landlord in writing of Tenant’s initial determination whether Tenant is interested in Landlord’s proposed replacement
building and any applicable changes to the lease terms. If Tenant is interested in such replacement building, then Tenant shall have a period of 30 days within which to enter the proposed replacement building, conduct its due diligence review
thereof and notify Landlord in writing of any objections thereto. If Tenant fails to respond within either such five business days or 30-day time periods (time being of the essence with respect thereto), then Tenant shall be deemed to have accepted
such replacement building on the terms offered by Landlord. If Tenant timely rejects Landlord’s proposed replacement building, Tenant shall, contemporaneously with Tenant’s written notice rejecting Landlord’s proposal, specify the
reasons for Tenant’s decision. If Landlord and Tenant are unable to agree within five business days thereafter with both sides acting commercially reasonable and in good-faith, the determination of whether Landlord’s proposed replacement
building and any applicable changes to the lease terms satisfies the criteria above shall be made by a panel of three arbitrators, each of whom shall be commercial real estate brokers. In such event, within ten days thereafter, each of Landlord and
Tenant shall select a qualified commercial real estate broker with at least ten years experience in leasing property and buildings in the LBJ, Park Central, North Dallas and/or Richardson submarkets, and within five business days thereafter, the two
brokers (one selected by Landlord, and one selected by Tenant) shall mutually select a third arbitrator satisfying the same requirements. Within five days following the selection of the third broker, Landlord and Tenant shall meet with such panel
and Landlord and Tenant shall be allowed to present evidence to such panel for up to three hours for each side’s presentation. The arbitrators selected pursuant to this Section above will establish the rules for proceeding with the arbitration
of the dispute, 

  

 16 

 
which will be binding upon all parties to the arbitration proceeding. The arbitrators may use the rules of AAA for commercial arbitration but are encouraged
to adopt the rules the arbitrators deem appropriate to accomplish the arbitration in the quickest and least expensive manner possible. The three brokers shall give their opinion (based on a majority vote of the three brokers) of whether
Landlord’s proposed replacement building is reasonably comparable to 5525 LBJ and (if applicable) whether any changes in the lease terms are reasonably consistent with the factors listed above within two business days after the presentations by
Landlord and Tenant. This entire process shall be completed as soon as reasonably possible, with both Landlord and Tenant using their good-faith efforts to expedite the procedure outlined herein. If the panel of arbitrators determine that
Landlord’s determination of the replacement building is reasonably comparable to 5525 LBJ and any applicable changes to the lease terms reasonably satisfies the criteria above, then Landlord and Tenant shall, within ten days thereafter, enter
into an amendment to this Lease reflecting the decision of the arbitrators. If the panel of arbitrators does not agree to Landlord’s determination, then the panel shall notify Landlord and Tenant thereof with reasonable specificity, and the
process shall be repeated until an acceptable replacement building and any applicable changes to the lease terms are selected by either Landlord and Tenant, or absent such agreement, by the panel of arbitrators. Each party shall pay its own costs
for its real estate broker and shall pay one-half the cost of the third broker. 
  
 (n) Waiver of Jury Trial. TO THE MAXIMUM EXTENT PERMITTED BY LAW, LANDLORD AND TENANT EACH WAIVE ANY RIGHT TO TRIAL BY
JURY IN ANY LITIGATION OR TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE ARISING OUT OF OR WITH RESPECT TO THIS LEASE OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS RELATED
HERETO. 
  
 (o) Governing Law.
This Lease shall be governed by and construed in accordance with the laws of the state in which the Premises are located. 
  
 (p) Recording. Tenant shall not record this Lease or any memorandum of this Lease without the prior written consent of
Landlord, which consent may be withheld or denied in the sole and absolute discretion of Landlord, and any recordation by Tenant shall be a material breach of this Lease. Tenant grants to Landlord a power of attorney to execute and record a release
releasing any such recorded instrument of record that was recorded without the prior written consent of Landlord. 
  
 (q) Water or Mold Notification. To the extent Tenant or its agents or employees discover any material water leakage,
material water damage or mold in or about the Premises or Project, Tenant shall promptly notify Landlord thereof in writing. 
  
 (r) Joint and Several Liability. If Tenant is comprised of more than one party, each such party shall be jointly and
severally liable for Tenant’s obligations under this Lease. All unperformed obligations of Tenant hereunder not fully performed at the end of the Term shall survive the end of the Term, including payment obligations with respect to Rent and all
obligations concerning the condition and repair of the Premises. 
  
 (s) Financial Reports. If Tenant is a publicly traded corporation or other company whose financial information is filed at least four times per year with a governmental entity and such information is
available to Landlord (or is otherwise delivered by Tenant to Landlord contemporaneously with Tenant’s filing thereof with the applicable governmental entity), the terms of this Section 25(s) shall not apply. If Tenant is not a publicly traded
corporation, then: 
  
 (1) Tenant shall deliver
to Landlord and to any lender or purchaser designated by Landlord the following information certified to be true, complete and correct by an officer of Tenant within 90 days after the end of each fiscal year of Tenant, a balance sheet of Tenant and
its consolidated subsidiaries as of the end of such year, a statement of profits and losses of Tenant and its consolidated subsidiaries for such year, and an audited statement of cash flows of Tenant and its consolidated subsidiaries for such year,
setting forth in each case, in comparative form, the corresponding figures for the preceding fiscal year in reasonable detail and scope and certified by independent certified public accountants of recognized national standing selected by Tenant; and
within 45 days after the end of each fiscal quarter of Tenant a balance sheet of Tenant and its consolidated subsidiaries as at the end of such 

  

 17 

 
quarter, statements of profits and losses of Tenant and its consolidated subsidiaries for such quarter and a statement of cash flow of Tenant and its
consolidated subsidiaries for such quarter, setting forth in each case, in comparative form, the corresponding figures for the similar quarter of the preceding year, in reasonable detail and scope, and certified to be true and complete by a
financial officer of Tenant having knowledge thereof; the foregoing financial statements all being prepared in accordance with generally accepted accounting principles, consistently applied. 
  
 (2) Upon ten days’ prior written notice, Tenant will
permit Landlord and its professional representatives to visit Tenant’s offices, and discuss Tenant’s affairs and finances with appropriate officers, and will make available such information as Landlord may reasonably request bearing on the
Tenant, the Premises or this Lease, and Landlord shall maintain the confidentiality of any information designated by Tenant, the Premises or this Lease, and Landlord shall maintain the confidentiality of any information designated by Tenant as
“non-public,” and Landlord will execute and use its reasonable efforts to cause Landlord’s professional representatives to execute confidentiality agreements. 
  
 (t) Landlord’s Fees. Whenever Tenant requests Landlord to take any action not required of
it hereunder or give any consent required or permitted under this Lease, Tenant will reimburse Landlord for Landlord’s reasonable, out-of-pocket costs payable to third parties and incurred by Landlord in reviewing the proposed action or
consent, including reasonable attorneys’, engineers’ or architects’ fees, within 30 days after Landlord’s delivery to Tenant of a statement of such costs. Tenant will be obligated to make such reimbursement without regard to
whether Landlord consents to any such proposed action. 
  
 (u) Confidentiality. Both Landlord and Tenant acknowledge that the terms and conditions of this Lease (other than the existence of this Lease and the location of the Premises) are to remain confidential for both parties’
benefit, and may not be disclosed by either party to anyone, by any manner or means, directly or indirectly, without the other party’s prior written consent; however, Landlord or Tenant may disclose the terms and conditions of this Lease if
required by Law or court order, and to its respective attorneys, accountants, employees and existing or prospective financial partners provided same are advised by Landlord or Tenant (as the case may be) of the confidential nature of such terms and
conditions and agree to maintain the confidentiality thereof (in each case, prior to disclosure). The disclosing party shall be liable for any disclosures made in violation of this Section by the disclosing party or by any entity or individual to
whom the terms of and conditions of this Lease were disclosed or made available by the disclosing party. The consent by either party to any disclosures shall not be deemed to be a waiver on the part of such party of any prohibition against any
future disclosure. 
  
 (v)
Authority. Tenant (if a corporation, partnership or other business entity) hereby represents and warrants to Landlord that Tenant is a duly formed and existing entity qualified to do business in the state in which the Premises are
located, that Tenant has full right and authority to execute and deliver this Lease, and that each person signing on behalf of Tenant is authorized to do so. Landlord hereby represents and warrants to Tenant that Landlord is a duly formed and
existing entity qualified to do business in the state in which the Premises are located, that Landlord has full right and authority to execute and deliver this Lease, and that each person signing on behalf of Landlord is authorized to do so.

  
 (w) Security Service. Tenant
acknowledges and agrees that Landlord is not providing any security services with respect to the Project and that Landlord shall not be liable to Tenant for, and Tenant waives any claim against Landlord with respect to, any loss by theft or any
other damage suffered or incurred by Tenant in connection with any unauthorized entry into the Project or any other breach of security with respect to the Project. 
  
 (x) Determination of Charges. Landlord and Tenant agree that each provision of this Lease for
determining charges and amounts payable by Tenant (including provisions regarding Additional Rent) is commercially reasonable and, as to each such charge or amount, constitutes a statement of the amount of the charge or a method by which the charge
is to be computed for purposes of Section 93.012 of the Texas Property Code. 
  
 (y) Prohibited Persons and Transactions. Tenant represents and warrants that neither Tenant nor any of its affiliates, nor any of their respective partners, members, shareholders or other equity owners,
and none of their respective employees, officers, directors, representatives or agents is, nor will they become, a 

  

 18 

 
person or entity with whom U.S. persons or entities are restricted from doing business under regulations of the Office of Foreign Asset Control
(“OFAC”) of the Department of the Treasury (including those named on OFAC’s Specially Designated and Blocked Persons List) or under any statute, executive order (including the September 24, 2001, Executive Order Blocking
Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism), or other governmental action and is not and will not Transfer this Lease to, contract with or otherwise engage in any dealings or transactions
or be otherwise associated with such persons or entities. 
  
 (z) List of Exhibits. All exhibits and attachments attached hereto are incorporated herein by this reference. 
  

					
	 Exhibit A
	  	-	  	Description of the Land
	 Exhibit B
	  	-	  	Building Rules and Regulations
	 Exhibit C
	  	-	  	Tenant Finish-Work: Tenant Performs the Work
	 Exhibit D
	  	-	  	Form of Confirmation of Commencement Date Letter
	 Exhibit E
	  	-	  	Form of Tenant Estoppel Certificate
	 Exhibit F
	  	-	  	Taxes
	 Exhibit G
	  	-	  	Insurance
	 Exhibit H
	  	-	  	Renewal Option
	 Exhibit I
	  	-	  	Letter of Credit

  
 26.
Environmental Requirements. 
  
 (a)
Prohibition against Hazardous Materials. Except for Hazardous Materials contained in products used by Tenant in minor quantities that do not violate any applicable Law for ordinary cleaning and office purposes, Tenant shall not permit
or cause any party to bring any Hazardous Materials upon the Project or transport, store, use, generate, manufacture, dispose, or release any Hazardous Materials on or from the Project without Landlord’s prior written consent. Tenant, at its
sole cost and expense, shall operate its business in the Project in strict compliance with all Environmental Requirements and all requirements of this Lease. Tenant shall complete and certify to disclosure statements as requested by Landlord from
time to time relating to Tenant’s transportation, storage, use, generation, manufacture, or release of Hazardous Materials on the Project, and Tenant shall promptly deliver to Landlord a copy of any notice of violation relating to the Project
of any Environmental Requirement. 
  
 (b)
Environmental Requirements. The term “Environmental Requirements” means all Laws regulating or relating to health, safety, or environmental conditions on, under, or about the Project or the environment including
the following: the Comprehensive Environmental Response, Compensation and Liability Act; the Resource Conservation and Recovery Act; the Clean Air Act; the Clean Water Act; the Toxic Substances Control Act and all state and local counterparts
thereto, and any common or civil law obligations including nuisance or trespass, and any other requirements of Section 14 and Exhibit B of this Lease. The term “Hazardous Materials” means and includes any substance,
material, waste, pollutant, or contaminant that is or could be regulated under any Environmental Requirement or that may adversely affect human health or the environment, including any solid or hazardous waste, hazardous substance, asbestos,
petroleum (including crude oil or any fraction thereof, natural gas, synthetic gas, polychlorinated biphenyls (PCBs), and radioactive material). For purposes of Environmental Requirements, to the extent authorized by Law, Tenant is and shall be
deemed to be the responsible party, including the “owner” and “operator” of Tenant’s “facility” and the “owner” of all Hazardous Materials brought on the Project by a Tenant Party and the wastes,
by-products, or residues generated, resulting, or produced therefrom. 
  
 (c) Removal of Hazardous Materials. Tenant, at its sole cost and expense, shall remove all Hazardous Materials stored, disposed of or otherwise released by a Tenant Party onto or from the Project, in a
manner and to a level satisfactory to Landlord in its sole discretion, but in no event to a level and in a manner less than that which complies with all Environmental Requirements and does not limit any future uses of the Project or require the
recording of any deed restriction or notice regarding the Project. Tenant shall have no liability for, and no obligation to remove, any Hazardous Materials located in the Project as of the date hereof (collectively, the “Pre-Existing
Hazardous Materials”). Tenant shall perform such work at any time during the period of this Lease upon written request by Landlord or, in the absence of a specific request by Landlord, before Tenant’s right to possession 

  

 19 

 
of the Premises terminates or expires. If Tenant fails to perform such work within the time period specified by Landlord or before Tenant’s right to
possession terminates or expires (whichever is earlier), Landlord may at its discretion, and without waiving any other remedy available under this Lease or at law or equity (including an action to compel Tenant to perform such work), perform such
work at Tenant’s cost. Tenant shall pay all costs incurred by Landlord in performing such work within ten days after Landlord’s request therefor. Such work performed by Landlord is on behalf of Tenant and Tenant remains the owner,
generator, operator, transporter, and/or arranger of the Hazardous Materials for purposes of Environmental Requirements. Tenant agrees not to enter into any agreement with any person, including any governmental authority, regarding the removal of
Hazardous Materials that have been disposed of or otherwise released onto or from the Project without the written approval of the Landlord. 
  
 (d) Tenant’s Indemnity. Tenant shall indemnify, defend, and hold Landlord harmless from and against any and all losses
(including diminution in value of the Project and loss of rental income from the Project), claims, demands, actions, suits, damages (including punitive damages), expenses (including remediation, removal, repair, corrective action, or cleanup
expenses), and costs (including actual attorneys’ fees, consultant fees or expert fees and including removal or management of any asbestos brought onto the Project in breach of the requirements of this Section 26, regardless of whether such
removal or management is required by Law) which are brought or recoverable against, or suffered or incurred by Landlord as a result of any release of Hazardous Materials or any breach of the requirements under this Section 26 by a Tenant Party
regardless of whether Tenant had knowledge of such noncompliance. The obligations of Tenant under this Section 26 shall survive any expiration or termination of this Lease. The foregoing indemnity shall not apply to the Pre-Existing Hazardous
Materials. 
  
 (e) Inspections and
Tests. Landlord shall have access to, and a right to perform inspections and tests of, the Project to determine Tenant’s compliance with Environmental Requirements, its obligations under this Section 26, or the environmental condition
of the Project. Access to the Premises shall be granted to Landlord upon Landlord’s prior notice to Tenant and at such times so as to minimize, so far as may be reasonable under the circumstances, any disturbance to Tenant’s operations.
Such inspections and tests shall be conducted at Landlord’s expense, unless such inspections or tests reveal that Tenant has not complied with any Environmental Requirement, in which case Tenant shall reimburse Landlord for the reasonable cost
of such inspection and tests. Landlord’s receipt of or satisfaction with any environmental assessment in no way waives any rights that Landlord holds against Tenant. Tenant shall promptly notify Landlord of any communication or report that
Tenant makes to any governmental authority regarding any possible violation of Environmental Requirements or release or threat of release of any Hazardous Materials onto or from the Project. Tenant shall, within five days of receipt thereof, provide
Landlord with a copy of any documents or correspondence received from any governmental agency or other party relating to a possible violation of Environmental Requirements or claim or liability associated with the release or threat of release of any
Hazardous Materials onto or from the Project. 
  
 (f) Tenant’s Financial Assurance in the Event of a Breach. In addition to all other rights and remedies available to Landlord under this Lease or otherwise, Landlord may, in the event of a breach of the requirements of
this Section 26 that is not cured within 30 days following notice of such breach by Landlord, require Tenant to provide financial assurance (such as insurance, escrow of funds or third party guarantee) in an amount and form reasonably satisfactory
to Landlord. The requirements of this Section 26 are in addition to and not in lieu of any other provision in this Lease; however, the requirements of this Section 26(f) shall only apply if Tenant’s credit rating is less than an A- rating with
A.M. Best. 
  
 27. Parking. Tenant shall have the
right to use all parking facilities associated with the Building throughout the Term at no additional charge. Landlord shall not be responsible for enforcing Tenant’s parking rights against third parties. 
  
 28. Other Provisions. 
  
 (a) Signage. Tenant may, at its sole risk and
expense, construct building fascia signs (collectively, the “Sign”) on the Building containing Tenant’s name, corporate logo, insignia, trademark or any combination of the foregoing . Tenant shall erect the Sign in
accordance with the approved plans and specifications, in a good and workmanlike manner, in accordance with all laws, regulations, restrictions (governmental or otherwise), and architectural guidelines in effect for the area in which the Building is
located and 

  

 20 

 
has received all requisite approvals thereunder (the “Sign Requirements”), Tenant shall maintain the Sign in a good, clean, and safe
condition in accordance with the Sign Requirements. After the end of the Term or after Tenant’s right to possess the Premises has been terminated, Tenant shall remove the Sign, repair all damage caused thereby, and restore the Building to its
condition before the installation of the Sign within ten days after Landlord’s request therefor. If Tenant fails to timely do so, Landlord may, without compensation to Tenant and at Tenant’s expense, remove the Sign, perform the related
restoration and repair work and dispose of the Sign in any manner Landlord deems appropriate. The rights granted to Tenant under this Section 28(a) may only be assigned (in whole, but not in part) to any party occupying the Project, and may be
revoked by Landlord if Tenant ceases to occupy at least 50,000 rentable square feet in the Building. Notwithstanding the foregoing, Tenant may elect to install one other Building occupant’s name, corporate logo, insignia, trademark or any
combination of the foregoing on the second spandrel of the Building. 
  
 (b) Stipulated Carry Costs. For each day between the Rent Commencement Date until Tenant fully vacates its temporary leased space under the lease dated on or about the date hereof for space in 2727
Turtle Creek Boulevard, Tenant shall pay to Landlord (or its affiliate or designee) $4,151.73 (representing the stipulated carry costs to be incurred by Landlord or its affiliate or its designee) as additional consideration hereunder. 
  
 29. Letter of Credit. 
  
 (a) Financial Covenants; General Provisions.
At all times during the Term of this Lease (including any renewal and extension thereof), Tenant shall maintain a Tangible Net Worth of $100,000,000 or greater, as certified by a independent certified public accounting firm of national standing. If
Tenant’s Tangible Net Worth ever falls below such level, then within 45 days thereafter, Tenant shall deliver to Landlord, as collateral for the full performance by Tenant of all of its obligations under this Lease and for all losses and
damages Landlord may suffer as a result of any default by Tenant under this Lease, a standby, unconditional, irrevocable, transferable letter of credit (the “Letter of Credit”) in the form of Exhibit I hereto and
containing the terms required herein, in the face amount of two times the amount of Basic Rent payable under this Lease for the immediately succeeding 24 full calendar month period (the “Letter of Credit Amount”), naming
Landlord as beneficiary, issued (or confirmed) by a financial institution acceptable to Landlord in Landlord’s sole discretion, permitting multiple and partial draws thereon, and otherwise in form acceptable to Landlord in its sole discretion.
Tenant shall cause the Letter of Credit to be continuously maintained in effect (whether through replacement, renewal or extension) in the Letter of Credit Amount through the date (the “Final LC Expiration Date”) that is 120
days after the scheduled expiration date of the Term or any renewal Term. If the Letter of Credit held by Landlord expires earlier than the Final LC Expiration Date (whether by reason of a stated expiration date or a notice of termination or
non-renewal given by the issuing bank), Tenant shall deliver a new Letter of Credit or certificate of renewal or extension to Landlord not later than 60 days prior to the expiration date of the Letter of Credit then held by Landlord. Any renewal or
replacement Letter of Credit shall comply with all of the provisions of this Section 29, shall be irrevocable, transferable and shall remain in effect (or be automatically renewable) through the Final LC Expiration Date upon the same terms as the
expiring Letter of Credit or such other terms as may be acceptable to Landlord in its sole discretion. If Tenant fails to deliver such additional security within such 30-day time period, then such failure shall constitute an Event of Default.
Landlord shall reimburse Tenant the issuance fees paid to an unrelated third party for the first issuance of any Letter of Credit required hereunder (for a maximum two-year issuance period) provided that the issuance fee is commercially reasonable
and calculated assuming that Tenant deposits cash or cash equivalents to collateralize in full Tenant’s reimbursement obligation to the Letter of Credit issuer. If Tenant is required to deliver to Landlord a Letter of Credit more than once
during the Term, Landlord shall not be obligated to reimburse Tenant such issuance fee therefor (it being understood that Landlord’s reimbursement obligation is a one-time obligation only). 
  
 (b) Drawings under Letter of Credit. Landlord
shall have the right to draw upon the Letter of Credit, in whole or in part, at any time and from time to time: 
  
 (1) If an Event of Default occurs; or 
  
 (2) If the Letter of Credit held by Landlord expires earlier than the Final LC Expiration Date (whether by reason of a stated expiration
date or a notice of termination or non-renewal given by the issuing bank), and Tenant fails to deliver to Landlord, at least 60 days prior to the expiration 

  

 21 

 
date of the Letter of Credit then held by Landlord, a renewal or substitute Letter of Credit that is in effect and that complies with the provisions of this
Section 29. 
  
 No condition or term of this Lease shall be deemed to render the
Letter of Credit conditional to justify the issuer of the Letter of Credit in failing to honor a drawing upon such Letter of Credit in a timely manner. Tenant hereby acknowledges and agrees that Landlord is entering into this Lease in material
reliance upon the ability of Landlord to draw upon the Letter of Credit upon the occurrence of any Event of Default by Tenant under this Lease or upon the occurrence of any of the other events described above in this Section 29(b). 
  
 (c) Use of Proceeds by Landlord. The proceeds
of the Letter of Credit may be applied by Landlord against any Rent payable by Tenant under this Lease that is not paid when due and/or to pay for all losses and damages that Landlord has suffered or that Landlord reasonably estimates that it will
suffer as a result of any default by Tenant under this Lease. Landlord shall deposit any unused proceeds in a separate account in the name of Landlord or its designee at a financial institution selected by Landlord in its sole discretion (the
“LC Proceeds Account”). Landlord may apply funds from the LC Proceeds Account against any Rent payable by Tenant under this Lease that is not paid when due and/or to pay for all losses and damages that Landlord
has suffered or that Landlord reasonably estimates that it will suffer as a result of any default by Tenant under this Lease. Tenant hereby grants Landlord a security interest in the LC Proceeds Account and agrees that, in addition to all other
rights and remedies available to Landlord under applicable Law, Landlord shall have all rights of a secured party under the Texas Uniform Commercial Code with respect to the LC Proceeds Account. The LC Proceeds Account shall be under the sole
control of Landlord. Tenant shall not have any right to direct the disposition of funds from the LC Proceeds Account or any other right or interest in the LC Proceeds Account. Tenant shall, at any time and from time to time, execute, acknowledge and
deliver such documents and take such actions as Landlord or the bank with which the LC Proceeds Account is maintained may reasonably request concerning the creation or perfection of the security interest granted to Landlord in (including
Landlord’s control of) LC Proceeds Account or to effect the provisions of this Section 29(c). Tenant does hereby make, constitute and appoint Landlord its true and lawful attorney-in-fact, for it and in its name, place and stead, to execute and
deliver all such instruments and documents, and to do all such other acts and things, as Landlord may deem to be necessary or desirable to protect and preserve the rights granted to Landlord under this Section 29(c). Tenant hereby grants to Landlord
the full power and authority to appoint one or more substitutes to perform any of the acts that Landlord is authorized to perform under this Section 29(c), with a right to revoke such appointment of substitution at Landlord’s pleasure. The
power of attorney granted pursuant to this Section 29(c) is coupled with an interest and therefore is irrevocable. Any person dealing with Landlord may rely upon the representation of Landlord relating to any authority granted by this power of
attorney, including the intended scope of the authority, and may accept the written certificate of Landlord that this power of attorney is in full force and effect. Photographic or other facsimile reproductions of this executed Lease may be made and
delivered by Landlord, and may be relied upon by any person to the same extent as though the copy were an original. Anyone who acts in reliance upon any representation or certificate of Landlord, or upon a reproduction of this Lease, shall not be
liable for permitting Landlord to perform any act pursuant to this power of attorney. Provided Tenant has performed all of its obligations under this Lease, Landlord agrees to pay to Tenant within 30 days after the Final LC Expiration Date the
amount of any proceeds of the Letter of Credit received by Landlord and not applied against any Rent payable by Tenant under this Lease that was not paid when due or used to pay for any losses and/or damages suffered by Landlord (or reasonably
estimated by Landlord that it will suffer) as a result of any default by Tenant under this Lease; provided, that if prior to the Final LC Expiration Date a voluntary petition is filed by Tenant or any Guarantor, or an involuntary petition is filed
against Tenant or any Guarantor by any of Tenant’s or Guarantor’s creditors, under the Federal Bankruptcy Code, then Landlord shall not be obligated to make such payment in the amount of the unused Letter of Credit proceeds until either
all preference issues relating to payments under this Lease have been resolved in such bankruptcy or reorganization case or such bankruptcy or reorganization case has been dismissed, in each case pursuant to a final court order not subject to appeal
or any stay pending appeal. 
  
 (d)
Additional Covenants of Tenant. If, as result of any application or use by Landlord of all or any part of the Letter of Credit, the amount of the Letter of Credit shall be less than the Letter of Credit Amount, Tenant shall, within
five days thereafter, provide Landlord with additional letter(s) of credit in an amount equal to the deficiency (or a replacement letter of credit in the total Letter of Credit Amount), and any such additional (or replacement) letter of credit shall
comply with all of the provisions of this Section 29, and if Tenant fails to comply with the foregoing, notwithstanding anything to the contrary contained in this Lease, the same shall 

  

 22 

 
constitute an uncurable Event of Default by Tenant. Tenant further covenants and warrants that it will neither assign nor encumber the Letter of Credit or
any part thereof or any interest in the LC Proceeds Account and that neither Landlord nor its successors or assigns will be bound by any such assignment, encumbrance, attempted assignment or attempted encumbrance. 
  
 (e) Transfer of Letter of Credit. Landlord
may, at any time and without notice to Tenant and without first obtaining Tenant’s consent thereto, transfer all or any portion of its interest in and to the Letter of Credit to any party succeeding to Landlord’s interest in this Lease
and/or to Landlord’s Mortgagee, and/or to have the Letter of Credit reissued in the name of Landlord’s Mortgagee. If Landlord transfers its interest in the Building, Landlord shall transfer the Letter of Credit (and any unapplied proceeds
thereof then held by Landlord, including any amounts then held by Landlord in the LC Proceeds Account) in whole or in part to the transferee. Following such transfer, Landlord shall, without any further agreement between the parties hereto,
thereupon be released by Tenant from all liability therefor. The provisions hereof shall apply to every transfer or assignment of all or any part of the Letter of Credit to a new landlord. In connection with any such transfer of the Letter of Credit
by Landlord, Tenant shall, at Tenant’s sole cost and expense, execute and submit to the issuer of the Letter of Credit such applications, documents and instruments as may be necessary to effectuate such transfer. Tenant shall be responsible for
paying the issuer’s transfer and processing fees in connection with any transfer of the Letter of Credit and, if Landlord advances any such fees (without having any obligation to do so), Tenant shall reimburse Landlord for any such transfer or
processing fees within ten days after Landlord’s written request therefor. 
  
 (f) Termination of Requirement to Deliver Letter of Credit. Provided no Event of Default has occurred and is
continuing hereunder, Tenant is in compliance with its required Tangible Net Worth as set forth in Section 29(a) and is so certified by Tenant’s independent accounting firm as contemplated by Section 29(a) and Tenant has delivered to Landlord a
written request for Landlord to acknowledge (and Landlord has made such acknowledgement in writing, which, if true, will be promptly executed by Landlord and returned to Tenant) that no Event of Default has occurred hereunder, Tenant shall no longer
be required to maintain the Letter of Credit. Thereafter, Tenant shall not be required to deliver another Letter of Credit unless Tenant fails to maintain its required Tangible Net Worth as required under Section 29(a). 
  
 (g) Nature of Letter of Credit.
Landlord and Tenant (1) acknowledge and agree that in no event or circumstance shall the Letter of Credit or any renewal thereof or substitute therefor or any proceeds thereof (including the LC Proceeds Account) be deemed to be or treated as a
“security deposit” under any Law applicable to security deposits in the commercial context, including Sections 93.004-93.011 of the Texas Property Code, as enacted by H.B. 2803, 77th Legislative Session, as such sections now exist or as
may be hereafter amended or succeeded” (“Security Deposit Laws”), (2) acknowledge and agree that the Letter of Credit (including any renewal thereof or substitute therefor or any proceeds thereof) is not
intended to serve as a security deposit, and the Security Deposit Laws shall have no applicability or relevancy thereto, and (3) waive any and all rights, duties and obligations either party may now or, in the future, will have relating to or
arising from the Security Deposit Laws. 
  
 30. Right of
First Refusal to Purchase. 
  
 (a) Grant of Right. Landlord hereby grants to Tenant a right of first refusal to purchase all of Landlord’s right, title and interest in and to the Project, on the terms and conditions set forth herein. If Landlord
receives a Purchase Offer (as defined below) at any time following the date hereof which Landlord desires to accept, then Landlord shall deliver written notice to Tenant thereof (a “Transfer
Notice”), containing all of the material terms of the Purchase Offer. The Transfer Notice shall set forth the terms and conditions of the Purchase Offer and shall state the desire of Landlord to sell to Tenant the Project,
on such terms and conditions. Within six business days following Landlord’s delivery to Tenant of the Transfer Notice (the “Acceptance Period”), Tenant, at its option by written notice
to Landlord, may elect to purchase the Project, on the same terms and conditions contained in the Transfer Notice. If Landlord does not receive Tenant’s written notice of such election before the expiration of the Acceptance Period, then
Tenant’s rights under this Section shall lapse and neither Landlord nor any successor or assign of Landlord shall have any obligation thereafter to deliver a Transfer Notice to Tenant, except as specifically set forth in Section 30(e).
Notwithstanding anything herein to the contrary, Tenant’s rights under this Section shall not apply to (1). any conveyance, transfer or assignment of the Project, or any part thereof, to any Affiliate of Landlord, (2) the granting of any liens
or security interest pursuant to a deed of trust, mortgage or other encumbrance of the Project to secure the repayment of any loans or credit provided or extended to Landlord, or (3) 

  

 23 

 
any sale of the Project upon foreclosure under a deed of trust or mortgage (or conveyance in lieu thereof). The rights granted to Tenant under this Section
are personal to Republic Underwriters Insurance Company and may not be assigned to any party, other than to a Permitted Transferee. 
  
 (b) Sale “As Is, Where Is”. Tenant acknowledges and agrees that if Landlord sells the Project to Tenant
pursuant to the this Section, Tenant shall accept the Project “AS IS, WHERE IS, WITH ALL FAULTS.” Tenant has not relied and will not rely on, and Landlord has not made and is not liable for or bound by, and express or
implied warranties, guarantees, statements, representations or information pertaining to the Project or relating thereto (including specifically, without limitation, property information packages distributed with respect to the Project) made or
furnished by Landlord, Landlord’s asset manager of the Project, or any real estate broker, agent or third party representing or purporting to represent Landlord, to whomever made or given, directly or indirectly, orally or in writing. Tenant
represents that it is a knowledgeable, experienced and sophisticated purchaser of real estate and that it is relying solely on its own expertise and that of Tenant’s consultants in purchasing the Project and shall make an independent
verification of the accuracy of any documents and information provided by Landlord. Tenant will conduct such inspections and investigations of the Project as Tenant deems necessary, including, but not limited to, the physical and environmental
conditions thereof, and shall rely upon same. Tenant acknowledges that Landlord has afforded Tenant a full opportunity to conduct such investigations of the Project as Tenant deemed necessary to satisfy itself as to the condition of the Project and
the existence or non-existence or curative action to be taken with respect to any Hazardous Materials on or discharged from the Project, and will rely solely upon same and not upon any information provided by or on behalf of Landlord or its agents
or employees with respect thereto. Upon closing of the sale of the Project, Tenant shall assume the risk that adverse matters, including, but not limited to, adverse physical or construction defects or adverse environmental, health or safety
conditions, may not have been revealed by Tenant’s inspections and investigations. 
  
 (c) Termination of Right of First Refusal. Tenant’s rights under this Section shall automatically terminate on
the first to occur of (1) an uncured Event of Default by Tenant of any term or provision under this Lease, (2) the expiration of the second Acceptance Period, if Landlord does not receive Tenant’s written notice of its election to purchase the
Project before the expiration thereof, at 5:00 p.m. Dallas, Texas time on the sixth business day following such written election by Tenant to purchase the Project, (3) if Tenant fails to execute and deliver to Landlord a purchase and sale agreement
in Landlord’s standard form with such modifications thereto as Landlord and Tenant may mutually agree no later than five business days following the written notification by Tenant to Landlord to purchase the Project (the “ROFR
Contract”), incorporating the terms and conditions set forth in the Transfer Notice, (4) this Lease or Tenant’s right to possession of the Premises is terminated, (5) Tenant assigns any of its interest in the Lease or
sublets more than 50,000 rentable square feet in the Premises, other than to a Permitted Transferee, (6) the sale of the Project upon foreclosure under a deed of trust or mortgage (or conveyance in lieu thereof); or (7) if Tenant’s rights under
this Section have not previously terminated, the date on which Tenant terminates its obligation to purchase the Project under the ROFR Contract, to the extent Tenant has such termination right, for any reason other than Landlord’s failure to
convey the ROFR Project to Tenant at the closing thereunder. Time shall be of the essence with respect to the exercise and performance of Landlord’s and Tenant’s rights and obligations hereunder. Upon the termination of Tenant’s
rights under this Section and within five business days following Landlord’s written request therefor, Tenant shall execute such instruments or other documents further evidencing such termination and the deletion of this Section from the terms
and provisions of the Lease. 
  
 (d)
Brokerage. Landlord shall not be obligated to pay a commission with respect to the Project in the event Tenant elects to purchase the Project pursuant to this Section and Landlord and Tenant shall each indemnify the other against all
costs, expenses, attorneys’ fees, and other liability for commissions or other compensation claimed by any broker or agent claiming the same by, through, or under the indemnifying party. 
  
 (e) Ongoing Right; Two-Time Right. Following
Landlord’s delivery of a Transfer Notice to Tenant under this Section 30, Landlord shall not be obligated to deliver another Transfer Notice to Tenant (and Tenant shall have no right to purchase the Project under this Section 30) unless (1)
Landlord fails to close a sale of the Project within 180 days following Landlord’s Transfer Notice to Tenant (subject to Tenant’s second right as provided below), or (2) following Tenant’s rejection (or deemed rejection) of a Transfer
Notice hereunder, Landlord is willing to sell the Project to a third party on substantially more favorable terms than the terms contained in the Transfer Notice rejected by Tenant (taking into account all of the terms of the Transfer Notice and the
terms of the subsequent Purchase Offer), which for purposes hereof shall be defined as a reduction in the overall net effective 

  

 24 

 
price, taking into account all of the terms of the Transfer Notice and the terms of the other offered, of ten percent (10%) or more of that set forth in the
original Transfer Notice rejected (or deemed rejected) by Tenant. Tenant’s rights under this Section 30(e) shall be subject to termination pursuant to Section 30(c). Except as expressly provided above in this Section 30(e), Tenant’s rights
under this Section 30 is a two-time only right. Accordingly once the Project has been the subject of two Transfer Notices that have been rejected or deemed rejected by Tenant and fee simple title to the Project has been transferred twice in
accordance with the terms of this Section at any time during the Term, Tenant’s rights under this Section 30(e) shall automatically terminate. 
  
 (f) Definitions. As used herein, an “Purchase Offer” shall mean a bona fide, written offer by an
unrelated third-party (a “Third-Party”) to purchase from Landlord all of Landlord’s right, title and interest in and to the Project or all or substantially all of the equity interests of Landlord. 
  

 25 

 LANDLORD AND TENANT EXPRESSLY DISCLAIM ANY IMPLIED WARRANTY THAT THE PREMISES ARE SUITABLE FOR TENANT’S INTENDED
COMMERCIAL PURPOSE, AND, EXCEPT AS OTHERWISE EXPRESSLY SET FORTH IN THIS LEASE, (1) TENANT’S OBLIGATION TO PAY RENT HEREUNDER IS NOT DEPENDENT UPON THE CONDITION OF THE PREMISES OR THE PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS HEREUNDER, AND
(2) TENANT SHALL CONTINUE TO PAY THE RENT, WITHOUT ABATEMENT, DEMAND, SETOFF OR DEDUCTION, NOTWITHSTANDING ANY BREACH BY LANDLORD OF ITS DUTIES OR OBLIGATIONS HEREUNDER, WHETHER EXPRESS OR IMPLIED. 
  
 This Lease is executed on the respective dates set forth below, but for
reference purposes, this Lease shall be dated as of the date first above written. If the execution date is left blank, this Lease shall be deemed executed as of the date first written above. 
  

											
	LANDLORD:	 	 	 	TC DALLAS #2, LP, a Delaware limited partnership
	 	 	 	 	By:	 	TCDFW Investment and Development, Inc., a Delaware corporation, its general partner
						
	 	 	 	 	 	 	 	 	By:	 	/s/    MARK C. ALLYN        
	 	 	 	 	 	 	 	 	 Name:
	 	Mark C. Allyn
	 	 	 	 	 	 	 	 	 Title:
	 	Ex. Vice President Execution
	 	 	 	 	 	 	 	 	 Execution Date: August 31, 2004

			
	 TENANT:
	 	 	 	REPUBLIC UNDERWRITERS INSURANCE COMPANY, a Texas corporation
					
	 	 	 	 	 	 	By:	 	/s/    PARKER W.
RUSH        
	 	 	 	 	 	 	 Name:
	 	Parker W. Rush
	 	 	 	 	 	 	 Title:
	 	President & CEO
	 	 	 	 	 	 	 Execution Date: August 31, 2004

  

 26 

  
 Exhibit A

  
 DESCRIPTION OF THE LAND 
  
 TRACT 1: FEE SIMPLE 
  
 BEING a 2.749 acre tract of land situated in the H. Wilburn Survey, Abstract No. 1567, Dallas County, Texas, and being all of Lot 6, Block
A/7020, Regency Center I Addition, an addition to the City of Dallas, Texas, according to the plat thereof as recorded in Volume 80012, Page 1491, Map Records of Dallas County, Texas, and being more particularly described as follows: 
  
 COMMENCING at the intersection of the North line of LBJ Freeway (I.H. 635) with the West line
of Montford Drive (70’ R.O.W.); 
  
 THENCE N 88 degrees 15 minutes 52 seconds
W, along said North line of LBJ Freeway, a distance of 460.50 feet to a point for corner; 
  
 THENCE S 89 degrees 50 minutes 08 seconds W, continuing along said North line of LBJ Freeway, a distance of 409.27 feet to a 5/8” iron rod found in the POINT OF BEGINNING and being the Southeast corner hereon;

  
 THENCE S 89 degrees 50 minutes 08 seconds W, along said North line of LBJ
Freeway, a distance of 240.00 feet to a P.K. Nail set for corner, said corner being the most Southerly Southeast corner of Lot 5, Block A/7020; 
  
 THENCE N 00 degrees 02 minutes 51 seconds E, along the most Southerly East line of said Lot 5, a distance of 500.00 feet to an “x” cut set in concrete in the
South line of said Lot 5; 
  
 THENCE N 89 degrees 50 minutes 06 seconds E, along
the South line of said Lot 5, a distance of 239.09 feet to a 1⁄2” iron rod found; 
  
 THENCE S 00 degrees 03 minutes 25 seconds E, along eh West line of Lot 1-D and Lot 1-C, Block A/7020, a distance of 500.00 feet to the POINT OF BEGINNING and containing 119,772 square feet or 2.749 acres of land.

  
 TRACT 2: EASEMENT ESTATE 
  
 Being a non-exclusive permanent, perpetual and private right-of-way easement for pedestrian
and vehicular ingress and egress, over and across property described in that certain EASEMENT recorded in Volume 77234, Page 0243, Deed Records of Dallas. 
  

 A-1 

  
 EXHIBIT B

  
 BUILDING RULES AND REGULATIONS

  
 The following rules and regulations shall apply to the
Premises, the Building, the parking areas associated therewith, and the appurtenances thereto: 
  
 1. Sidewalks, doorways, vestibules, halls, stairways, loading dock areas and associated overhead doors, and other similar areas shall not be obstructed by tenants or used by any tenant for purposes other than ingress
and egress to and from their respective leased premises and for going from one to another part of the Building. 
  
 2. Plumbing (including outside drains and sump pumps), fixtures and appliances shall be used only for the purposes for which designed, and no sweepings,
rubbish, rags or other unsuitable material shall be thrown or deposited therein. Damage resulting to any such fixtures or appliances from misuse by a tenant or its agents, employees or invitees, shall be paid by such tenant. 
  
 3. Tenant, at its expense, shall be responsible for providing all door locks
in the Premises and shall provide to Landlord, at Tenant’s expense, contemporaneously with the installation of such devices, a master key, card keys, access codes or other means to allow Landlord immediate access to all areas within the
Premises (other than those reasonable portions of the Premises designated by Tenant as being inaccessible by all third parties as a result of such areas containing confidential information). 
  
 4. Landlord may prescribe weight limitations and determine the locations for
safes and other heavy equipment or items, which shall in all cases be placed in the Building so as to distribute weight in a manner acceptable to Landlord which may include the use of such supporting devices as Landlord may require. All damages to
the Building caused by the installation or removal of any property of a tenant, or done by a tenant’s property while in the Building, shall be repaired at the expense of such tenant. 
  
 5. Tenant shall not intentionally introduce, disturb or release asbestos or PCB’s into or from the Premises.

  
 6. Tenant shall not keep in the Building any flammable or
explosive fluid or substance. Tenant shall not install or operate any steam or gas engine or boiler, or other mechanical apparatus in the Premises without the prior written consent of Landlord. The use of oil, gas or inflammable liquids for heating,
lighting or any other purpose is expressly prohibited. Explosives or other articles deemed extra hazardous shall not be brought into the Building. 
  
 7. Landlord will not be responsible for lost or stolen personal property, money or jewelry from tenant’s leased premises or public or common areas
regardless of whether such loss occurs when the area is locked against entry or not. 
  
 8. Tenant shall not intentionally conduct any activity on or about the Premises or Building which will draw pickets, demonstrators, or the like. 
  
 9. Tenant shall not permit storage outside the Premises, including outside storage of trucks and other vehicles, or dumping
of waste or refuse or permit any harmful materials to be placed in any drainage system or sanitary system in or about the Premises. 
  
 10. Tenant shall not install or operate on the Premises any machinery or mechanical devices of a nature not directly related to Tenant’s ordinary use
of the Premises. 
  
 11. Tenant shall not park or operate any
semi-trucks or semi-trailers in the parking areas associated with the Building. 
  

 B-1 

  
 EXHIBIT C

  
 TENANT FINISH-WORK: ALLOWANCE 

(Tenant Performs the Work) 
  
 1. Acceptance of Project. Prior to date hereof, (a) Tenant has selected the Project for Landlord to purchase and lease to Tenant and (b)
Landlord and Tenant have jointly performed due diligence with respect to the Project and the physical condition thereof. On or before the Commencement Date, Landlord shall, at its expense, perform the repair items to the Project set forth in
Exhibit C-1 hereto. Except as set forth in this Exhibit, Tenant accepts the Project in its “AS-IS” condition on the date that this Lease is entered into. 
  
 2. Space Plans. 
  
 (a) Preparation and Delivery. On or before the earlier of (1) October 15, 2004, or (2) the 45th day following the date of
this Lease (such earlier date is referred to herein as the “Space Plans Delivery Deadline”), Tenant shall deliver to Landlord a space plan prepared by a design consultant reasonably acceptable to Landlord (the
“Architect”) depicting improvements to be installed in the Premises (the “Space Plans”). Landlord hereby approves Corgan Associates, BOKA Powell, Jacobey Associates and HOK as acceptable architects
hereunder. 
  
 (b) Approval
Process. Landlord shall notify Tenant whether it approves of the submitted Space Plans within five business days after Tenant’s submission thereof. If Landlord disapproves of such Space Plans, then Landlord shall notify Tenant thereof
specifying in reasonable detail the reasons for such disapproval, in which case Tenant shall, within three business days after such notice, revise such Space Plans in accordance with Landlord’s objections and submit to Landlord for its review
and approval. Landlord may disapprove the Space Plans only if the proposed improvements would compromise or otherwise adversely affect the Building’s Structure or the Building’s Systems or if such improvements do not comply with all Laws.
Landlord shall notify Tenant in writing whether it approves of the resubmitted Space Plans within three business days after its receipt thereof. This process shall be repeated until the Space Plans have been finally approved by Landlord and Tenant.
If Landlord fails to notify Tenant that it disapproves of the initial Space Plans within five business days (or, in the case of resubmitted Space Plans, within three business days) after the submission thereof, then Landlord shall be deemed to have
approved the Space Plans in question. 
  
 3. Working
Drawings. 
  
 (a) Preparation and
Delivery. On or before the earlier of (1) November 15, 2004, or (2) the 45th day following the date on which the Space Plans are approved (or deemed approved) by Landlord and Tenant (such earlier date is referred to herein as the
“Working Drawings Delivery Deadline”), Tenant shall provide to Landlord for its approval final working drawings, prepared by the Architect, of all improvements that Tenant proposes to install in the 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. 
  
 (b) Approval Process. Landlord shall notify Tenant whether it approves of the submitted working drawings within ten 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
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 may disapprove the Working Drawings only if the
proposed improvements would compromise or otherwise adversely affect the Building’s Structure or the Building’s Systems or if such improvements do not comply with all Laws. Landlord shall notify Tenant in writing whether it approves of the
resubmitted working drawings within five business days after its receipt thereof. This process shall be repeated until the working drawings have been finally approved by Tenant and Landlord. If Landlord fails to notify Tenant that it disapproves of
the initial working drawings within ten business days (or, in the case of resubmitted working drawings, within 

  

 C-1 

 
five business days) after the submission thereof, then Landlord shall be deemed to have approved the working drawings in question. 
  
 (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 (1) 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 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, “Working Drawings” means the final working drawings approved by Landlord, as amended from time to time by any approved
changes thereto, and “Work” means 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 the Working Drawings to evidence its review and approval thereof. After the Working Drawings have been approved, Tenant shall cause the Work to be
performed in accordance with the Working Drawings. 
  
 4.
Contractors; Performance of Work. The Work shall be performed only by general contractors approved in writing by Landlord, which approval shall not be unreasonably withheld. Landlord agrees that Constructors & Associates, James R.
Thompson General Contractors, Scott & Reid General Contractors and MAPP Construction are each approved contractors. All contractors shall be required to procure and maintain insurance against such risks, in such amounts, and with such companies
as Landlord may reasonably require. Certificates of such insurance must be received by Landlord before the Work is commenced. The Work shall be performed in a good and workmanlike manner free of defects, shall conform strictly with the Working
Drawings, and shall be performed in such a manner and at such times as and not to interfere with or delay Landlord’s other contractors. 
  
 5. Construction Contracts. 
  
 (a) Tenant’s General Contractor. Tenant shall enter into a construction contract with a general contractor selected by
Tenant and approved by Landlord in a form acceptable to Tenant’s representative for the Work, which shall comply with the provisions of this Section 5 and provide for, among other things, (1) a one-year warranty for all defective Work; (2) a
requirement that Tenant’s Contractor maintain general commercial liability insurance of not less than a combined single limit of $5,000,000, naming Landlord, Landlord’s property management company, Landlord’s asset management company,
Landlord’s Mortgagee, Tenant, and each of their respective Affiliates as additional insureds; (3) a requirement that the contractor perform the Work in substantial accordance with the Space Plans and the Working Drawings and in a good and
workmanlike manner; (4) a requirement that the contractor is responsible for daily cleanup work and final clean up (including removal of debris); and (5) those items described in Section 5(b) (collectively, the “Approval
Criteria”). Landlord will not unreasonably withhold, delay or condition its Consent so long as the Approval Criteria is satisfied. Landlord shall have three business days to notify Tenant whether it approves the proposed construction
agreements. If Landlord disapproves of the proposed construction agreements, then it shall specify in reasonable detail the reasons for such disapproval, in which case Tenant shall revise the proposed construction agreements to correct the
objections and resubmit them to Landlord within two business days after Landlord notifies Tenant of its objections thereto, following which Landlord shall have two business days to notify Tenant whether it approves the revised construction
agreements. If Landlord fails to notify Tenant that it disapproves of the construction agreements within three business days after the initial construction agreements or two business days after the revised construction agreements (as the case may
be) are delivered to Landlord, then Landlord shall be deemed to have approved the construction agreements. 
  

 C-2 

 (b) All Construction Contracts. Unless otherwise agreed in writing by
Landlord and Tenant, each of Tenant’s construction contracts shall: (1) provide a schedule and sequence of construction activities and completion reasonably acceptable to Landlord, (2) be in a contract form that satisfies the Approval Criteria,
(3) require the contractor and each subcontractor to name Landlord, Landlord’s property management company, Landlord’s asset management company, and Tenant as additional insured on such contractor’s insurance maintained in connection
with the construction of the Work, (4) be assignable following an Event of Default by Tenant under this Lease to Landlord and Landlord’s Mortgagees, and (5) contain at least a one-year warranty for all workmanship and materials. 
  
 6. Change Orders. Tenant may initiate changes in the Work. Each
such change must receive the prior written approval of Landlord, such approval not to be unreasonably withheld or delayed; 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 Commencement Date, Landlord may withhold its consent in its sole and absolute discretion. Tenant shall, upon completion of the Work, furnish Landlord with an accurate architectural
“as-built” plan of the Work as constructed, which plan shall be incorporated into this Exhibit C by this reference for all purposes. If Tenant requests any changes to the Work described in the Space Plans or the Working Drawings,
then such increased 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. 
  
 7. Definitions. As used herein “Substantial Completion,” “Substantially
Completed,” and any derivations thereof mean the Work in the Premises is substantially completed (as reasonably determined by the Architect) in accordance with the Working Drawings and a temporary certificate of occupancy has been
issued with respect to the Work. Substantial Completion shall have occurred even though minor details of construction, decoration, landscaping and mechanical adjustments remain to be completed. 
  
 8. Intentionally deleted. 
  
 9. Excess Costs. The entire cost of performing the Work
(including design of and space planning for the Work and preparation of the Working Drawings, costs of construction labor and materials, electrical usage during construction, additional janitorial services, general tenant signage, related taxes and
insurance costs, licenses, permits, certifications, surveys and other approvals required by Law, all of which costs are herein collectively called the “Total Construction Costs”) in excess of the Construction Allowance
(hereinafter defined) shall be paid by Tenant. Upon approval of the Working Drawings and selection of a contractor, Tenant shall promptly execute a work order agreement which identifies such drawings and itemizes the Total Construction Costs and
sets forth the Construction Allowance. 
  
 10. Construction
Allowance. Landlord shall provide to Tenant a construction allowance not to exceed $2,825,800 (the “Construction Allowance”) to be applied toward the Total Construction Costs, as adjusted for any changes to the Work.
Up to $6.00 per rentable square foot in the Premises of the Construction Allowance may be used for (a) design fees for architect/interior designer and consultants, (b) project/construction management fees, (c) data/telephone cabling, (d) security
equipment and cabling, (e) construction of improvements, (f) required permits and fees related to the improvements, (g) acquisition costs of furniture (including modular furniture, cubicles and/or built-in furniture), (h) signage and graphics
permanently installed in the lease space or on the Building, and (i) auxiliary equipment required for the operation of the Tenant’s business, such as dumpsters, generators, and additional HVAC. No advance of the Construction Allowance shall be
made by Landlord until Tenant has first paid to the contractor from its own funds (and provided reasonable evidence thereof to Landlord) the anticipated amount by which the projected Total Construction Costs exceed the amount of the Construction
Allowance. Thereafter, Landlord shall pay to Tenant the Construction Allowance in multiple disbursements (but not more than once in any calendar month) following the receipt by Landlord of the following items: (1) a request for payment, (2) final or
partial lien waivers, as the case may be, from all persons performing work or supplying or fabricating materials for the Work, fully executed, acknowledged and in recordable form, and (3) the Architect’s certification that the Work for which
reimbursement has been requested has been finally completed, including (with respect to the last application for payment only) any punch-list items, on the appropriate AIA form or another form approved by Landlord, and, with respect to the
disbursement of the last 20% of the Construction Allowance, (A) the 

  

 C-3 

 
permanent certificate of occupancy issued for the Premises, (B) Tenant’s occupancy of the Premises, (C) delivery of the architectural
“as-built” plan for the Work as constructed (as set forth above) to Landlord’s construction representative (set forth below), and (D) an estoppel certificate confirming such factual matters as Landlord or Landlord’s Mortgagee may
reasonably request (collectively, a “Completed Application for Payment”). Landlord shall pay the amount requested in the applicable Completed Application for Payment to Tenant within 30 days following Tenant’s submission
of the Completed Application for Payment. If, however, the Completed Application for Payment is incomplete or incorrect, Landlord’s payment of such request shall be deferred until 30 days following Landlord’s receipt of the Completed
Application for Payment. Notwithstanding anything to the contrary contained in this Exhibit, Landlord shall not be obligated to make any disbursement of the Construction Allowance during the pendency of any of the following: (i) Landlord has
received written notice of any unpaid claims relating to any portion of the Work or materials in connection therewith, other than claims which will be paid in full from such disbursement, (ii) there is an unbonded lien outstanding against the
Building or the Premises or Tenant’s interest therein by reason of work done, or claimed to have been done, or materials supplied or specifically fabricated, claimed to have been supplied or specifically fabricated, to or for Tenant or the
Premises, (iii) the conditions to the advance of the Construction Allowance are not satisfied, or (iv) an Event of Default by Tenant exists. After the final completion of the Work and a reconciliation by Landlord of the Construction Allowance and
the Total Construction Costs, Tenant may use any excess Construction Allowance towards the cost of Tenant’s out-of-pocket moving expenses related costs, and if any excess Construction Allowance remains after the payment of such moving expenses,
then Landlord shall pay to Tenant any remaining excess Construction Allowance (up to a maximum of $4.00 per rentable square foot in the Premises). The Construction Allowance must be used (that is, the Work must be fully complete and the Construction
Allowance disbursed) within six months following the Commencement Date or shall be deemed forfeited with no further obligation by Landlord with respect thereto, time being of the essence with respect thereto. 
  
 11. Construction Management. Centerpoint Advisors, Ltd.
(“Centerpoint”) will act as Tenant’s Project/Construction Manager for the build-out of the lease improvements. Centerpoint is an agent of the Tenant and will manage the process on the Tenant’s behalf. The Tenant
will contract with Centerpoint for its services to manage the design and construction process, and Centerpoint will act as liaison between Tenant and Landlord, Tenant and Contractor, Tenant and Designer and any Tenant contractors/vendors.
Centerpoint’s fee will be paid from the Construction Allowance. Landlord or its Affiliate or agent shall have the right to inspect the Work (including inspecting the Work for the purposes of confirming the Work has been completed) and
coordinate the relationship between the Work the Building and the Building’s Systems; however, Landlord shall not be responsible for acting as a liaison between the contractor and Tenant, or performing any other construction management
supervision services with respect to the Work. Tenant shall not be obligated to pay to Landlord a construction supervision fee. 
  
 12. Construction Representatives. Landlord’s and Tenant’s representatives for coordination of construction and approval of change
orders will be as follows, provided that either party may change its representative upon written notice to the other: 
  

			
	 Landlord’s Representative:
	  	Robert Brandt
	 	  	c/o Trammell Crow Company
	 	  	2200 Ross Avenue, Suite 3700
	 	  	Dallas, Texas 75201
	 	  	Telephone: 214-979-6396
	 	  	Telecopy: 214-979-6377
		
	 Tenant’s Representative:
	  	David Gunderson
	 	  	c/o Centerpoint Advisors, Ltd.
	 	  	13355 Noel Road, Suite 400
	 	  	Dallas, Texas 75240
	 	  	Telephone: 214-446-4500
	 	  	Telecopy: 214-446-4570

  

 C-4 

			
	 With a copy to:
	  	Marti Croft
	 	  	c/o Republic Underwriters Insurance Company
	 	  	2727 Turtle Creek Boulevard
	 	  	Dallas, Texas 75219
	 	  	Telephone: 214-559-1264
	 	  	Telecopy: 214-526-2104

  
 13.
Miscellaneous. To the extent not inconsistent with this Exhibit, Sections 8(a) and 22 of this Lease shall govern the performance of the Work and Landlord’s and Tenant’s respective rights and obligations regarding the
improvements installed pursuant thereto. 
  

 C-5 

  
 EXHIBIT C-1

  
 REPAIR ITEMS 
  
 1. Fire System – The items in the Building’s fire
suppression system currently flagged with “yellow tags” requiring work in order to comply with the City of Dallas building code shall be repaired and/or modified by Landlord to comply with such building code. 
  
 2. Roof 
  

	 	•	 	Landlord will use reasonable efforts to transfer the roof warranty and pay the associated transfer fee [Note: the roof warranty does not automatically transfer.]

  

	 	•	 	Landlord will install two (2) through-wall scuppers and add crickets in order to correct any overflow and/or drainage issues. 

  

	 	•	 	Improper patches and membrane sealant repairs will be inspected by the manufacturer and properly repaired. 

  

	 	•	 	Silicone sealant strips will be installed at all metal coping joints. 

  

	 	•	 	Sealant deficiencies will be cut out and properly repaired at the counter flashing areas. 

  

	 	•	 	Landlord will repair or, at Tenant’s option, replace the skylight in the atrium with a comparable roof skylight system. Landlord will contribute up to $30,000 towards the cost,
thereafter, Tenant will pay any excess. 

  

	 	•	 	Landlord will repair random ridges in the roof as required in order to transfer the existing roof warranty. 

  
 3. Building Exterior and Garage –Landlord shall make the
following repairs to the building exterior and garage facility. Repairs shall be made in a good and workmanlike manner. A minimum of a one year warranty for materials and labor shall be transferred to Tenant upon completion. 
  

	 	(a)	Exterior Insulated Finish System (EIFS) 

  
 Damaged areas and previous repairs to the EIFS system will be repaired utilizing industry standards of repair with materials compatible with the existing
system. The existing joints will be primed with a product similar to “Demandit” prior to the installation of new sealant. The previous sealant repairs, hail damage, and cracking will be removed and repaired utilizing a polymer-modified
cementitious patching material with a new base coat, mesh and finish coat installed to the original wall profile. Upon completion of the repairs, the EIFS will be cleaned utilizing detergents and pressure washed. The entire existing system will be
primed and two (2) coats of elastomeric coating installed. 
  

	 	(b)	Sealants 

  
 Existing expansion/control joint sealant will be removed. The EIFS joint will be rebuilt utilizing a “Demandit” type primer. New silicone
sealant and joint backing material will be installed. To the extent possible and without material increased cost to Landlord, sealants will have a 10-year labor and material warranty. 
  
 Existing expansion sealant at the EIFS to concrete structure will be removed, the joint cleaned of residue, primed and new
sealant and joint backing material installed. 
  

 C-1-1 

 The existing window perimeter sealant will be removed. The joint will be cleaned by mechanical methods
and the EIFS side of the joint reformed utilizing industry recommended materials and procedures. The joint will be primed and new silicone sealant and joint backing material installed. 
  
 All penetration, louver and door perimeter sealant will be removed, the joint cleaned and primed and new silicone sealant
with joint backing material installed. 
  

	 	(c)	Ribbon Window System 

  
 The Ziplock strip gasket and glass will be cleaned and prepared to receive the wet glazing. New silicone sealant wet glazing will be installed. A minimum
1⁄4-inch bond to both the gasket and glass will be accomplished. 
  
 The vision glass will be professionally cleaned utilizing detergents and chemicals specifically formulated for cleaning glass. 
  

	 	(d)	Parking Garage 

  
 Horizontal perimeter joint sealants will be removed, the joints cleaned, primed and new joint backing and sealant installed. New joint backing and sealant
will also be installed at precast panel-to-panel rise wall joints in intermediate walls. Previous crack control sealant repairs will be replaced. Crack repairs will be accomplished with crack control sealant replacement. 
  
 Existing spalls will be cut to rectangular shapes and loose and defective
concrete removed leaving a 1/16-inch fractured aggregate surface to receive new patches. Any exposed steel will be coated with rust inhibitive primer and new patches will be installed. Areas will then be coated and feathered into adjacent coated
surfaces. 
  
 Light poles, handrails, rust deposits on exterior
wall panels and exposed metal will be cleaned, primed and painted. 
  
 To help eliminate storm water entry into the garage, new small troughs will be cut into the exposed topping between the drains to ensure proper drainage at the perimeters. New trench drains will be installed at the base of the garage ramps.

  
 Areas where weld plates have fractured, the panel corners
will be shored and rebuilt or repaired with epoxy injections where practical. 
  
 The garage will be re-striped. 
  
 The masonry on both penthouse structures will be pointed as necessary, walls cleaned and new elastomeric coating installed. 
  
 Joints between the CMU and concrete structure will have mortar routed, the joint cleaned, primed and new backer rod and sealant joint installed.

  
 New expansion joints will be saw cut into the block at upper
concrete bearing areas. 
  
 5. Asbestos Containing Materials
(ACM) – Landlord shall abate all ACM identified by HBC Terracon and described in its Asbestos Survey Report dated August 10, 2004, in accordance with state and federal regulations. 
  
 6. Concrete Paving Repairs – Landlord will repair or replace
damaged concrete in the surface parking lot and drive aisles up to a total cost not to exceed $28,000.00. 
  

 C-1-2 

  
 EXHIBIT D

  
 CONFIRMATION OF COMMENCEMENT DATE

  
                     , 2005 
  
 Republic Underwriters Insurance Company 
 5525 LBJ Freeway 
 Dallas, Texas 75240 
 Attn: Parker Rush 
  

	 	Re:	Lease Agreement (the “Lease”) dated August 31, 2004, between TC Dallas #2, LP, a Delaware limited partnership (“Landlord”), and
Republic Underwriters Insurance Company, a Texas corporation (“Tenant”). Capitalized terms used herein but not defined shall be given the meanings assigned to them in the Lease. 

  
 Ladies and Gentlemen: 
  
 Landlord and Tenant agree as follows: 
  
 1. Condition of Project. Tenant has accepted possession of the Project pursuant to the Lease. Any improvements
required or authorized by the terms of the Lease to be made by Tenant or Landlord have been completed to the full and complete satisfaction of Tenant in all respects, and Landlord has fulfilled all of its duties under the Lease with respect to such
initial tenant improvements. Furthermore, Tenant acknowledges that the Project are suitable for the Permitted Use. 
  
 2. Commencement Date. The Commencement Date of the Lease is
                    , 2005. 
  
 3. Rent Commencement Date. The Rent Commencement Date of the Lease is
                    , 2005. 
  
 4. Expiration Date. The Term is scheduled to expire on the last day of the 144th full calendar month of the Term, which date is
                    , 2017. 
  
 5. Contact Person. Tenant’s contact person in the Premises is: 
  
 Republic Underwriters Insurance Company 
 5525 LBJ Freeway 
 Dallas, Texas 75240 
 Attention: Marti Croft 
 Telephone:
        -         -             
 Telecopy:         -
        -             
  
 6. Ratification. Tenant hereby ratifies and confirms its obligations under the Lease, and represents and warrants to Landlord that it has no
defenses thereto. Additionally, Tenant further confirms and ratifies that, as of the date hereof, (a) the Lease is and remains in good standing and in full force and effect, and (b) to the best of Tenant’s knowledge following reasonable
inquiry, Tenant has no claims, counterclaims, set-offs or defenses against Landlord arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant. 
  
 7. Binding Effect; Governing Law. Except as modified hereby,
the Lease shall remain in full effect and this letter shall be binding upon Landlord and Tenant and their respective successors and assigns. If any inconsistency exists or arises between the terms of this letter and the terms of the Lease, the terms
of this letter shall prevail. This letter shall be governed by the laws of the state in which the Premises are located. 
  

 D-1 

 Please indicate your agreement to the above matters by signing this letter in the space indicated below
and returning an executed original to us. 
  

					
	Sincerely,
	
	TC DALLAS #2, LP, a Delaware limited partnership
		
	By:	 	TCDFW Investment and Development, Inc., a Delaware corporation, its general partner
			
	 	 	By:	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  
 Agreed and accepted: 

 
 REPUBLIC UNDERWRITERS INSURANCE COMPANY, a Texas corporation 
  

			
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 D-2 

  
 EXHIBIT E

  
 FORM OF TENANT ESTOPPEL CERTIFICATE

  
 The undersigned is the Tenant under the Lease (defined
below) between                                     , a
                        , as Landlord, and the undersigned as Tenant, for the Premises on the
                 floor(s) of the office building located at
                                ,
                     and commonly known as
                                    , and hereby certifies as
follows: 
  
 1. The Lease consists of the original Lease Agreement
dated as of                     , 200   between Tenant and Landlord[‘s predecessor-in-interest] and the following
amendments or modifications thereto (if none, please state “none”):__________________ 
  
 ___________________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________________ 
  
 The documents listed above are herein collectively referred to as the
“Lease” and represent the entire agreement between the parties with respect to the Premises. All capitalized terms used herein but not defined shall be given the meaning assigned to them in the Lease. 
  
 2. The Lease is in full force and effect and has not been modified,
supplemented or amended in any way except as provided in Section 1 above. 
  
 3. The Term commenced on                             ,
200   and the Term expires, excluding any renewal options, on
                            , 200  , and Tenant has no option to purchase all or any
part of the Premises or the Building or, except as expressly set forth in the Lease, any option to terminate or cancel the Lease. 
  
 4. Tenant currently occupies the Premises described in the Lease and Tenant has not transferred, assigned, or sublet any portion of the Premises nor
entered into any license or concession agreements with respect thereto except as follows (if none, please state “none”): ___________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________________ 
  
 ___________________________________________________________________________________________________________ 
  
 5. All monthly installments of Basic Rent, all Additional Rent and all
monthly installments of estimated Additional Rent have been paid when due through                     . The current monthly installment of
Basic Rent is $            . 
  
 6. All conditions of the Lease to be performed by Landlord necessary to the enforceability of the Lease have been satisfied and Landlord is not in default
thereunder. In addition, Tenant has not delivered any notice to Landlord regarding a default by Landlord thereunder. 
  
 7. As of the date hereof, there are no existing defenses or offsets, or, to the undersigned’s knowledge, claims or any basis for a claim, that the
undersigned has against Landlord and no event has occurred and no condition exists, which, with the giving of notice or the passage of time, or both, will constitute a default under the Lease. 
  
 8. No rental has been paid more than 30 days in advance and no security
deposit has been delivered to Landlord except as provided in the Lease. 
  
 9. If Tenant is a corporation, partnership or other business entity, each individual executing this Estoppel Certificate on behalf of Tenant hereby represents and warrants that Tenant is a duly formed and existing entity qualified to do
business in the state in which the Premises are located and that Tenant has full right and authority to execute and deliver this Estoppel Certificate and that each person signing on behalf of Tenant is authorized to do so. 
  

 E-1 

 10. There are no actions pending against Tenant under any bankruptcy or similar laws of the United States
or any state. 
  
 11. Other than in compliance with all applicable
laws and incidental to the ordinary course of the use of the Premises, the undersigned has not used or stored any hazardous substances in the Premises. 
  
 12. All tenant improvement work to be performed by Landlord under the Lease has been completed in accordance with the Lease and has been accepted by the
undersigned and all reimbursements and allowances due to the undersigned under the Lease in connection with any tenant improvement work have been paid in full. 
  

Tenant acknowledges that this Estoppel Certificate may be delivered to Landlord, Landlord’s Mortgagee or to a prospective mortgagee or prospective
purchaser, and their respective successors and assigns, and acknowledges that Landlord, Landlord’s Mortgagee and/or such prospective mortgagee or prospective purchaser will be relying upon the statements contained herein in disbursing loan
advances or making a new loan or acquiring the property of which the Premises are a part and that receipt by it of this certificate is a condition of disbursing loan advances or making such loan or acquiring such property. 
  
 Executed as of
                        , 200  . 
  

									
	TENANT:	 	 	 	REPUBLIC UNDERWRITERS INSURANCE COMPANY, a Texas corporation
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:
	 	 
	 	 	 	 	 	 	 Title:
	 	 

  

 E-2 

  
 EXHIBIT F

  
 TAXES 
  
 1. Payment of Taxes by Tenant. Beginning as of the Commencement
Date and continuing throughout the remainder of the Term, Tenant shall pay, before they become delinquent, all Taxes for each year and partial year falling within the Term. Upon its receipt thereof, Landlord shall promptly (in any event, within five
business days) deliver to Tenant all notices of appraised value and similar notices from the appropriate taxing authorities and property tax invoices received by Landlord in connection with the Project. Tenant shall furnish to Landlord, not later
than 15 days before the date any such Taxes become delinquent, official receipts of the appropriate taxing authority, if available, or other reasonable evidence of payment thereof. If Tenant should fail to pay any Taxes required to be paid by Tenant
hereunder, in addition to any other remedies provided herein, Landlord may, if it so elects but with no obligation to do so, pay such Taxes. Any out-of-pocket sums expended by Landlord to pay such Taxes (including all penalties, interest and
attorneys’ fees which have accrued due to Tenant’s failure to pay) shall be deemed to be Additional Rent owing by Tenant to Landlord and shall be due and payable within 30 days after written request therefor. Taxes for any fractional month
at the beginning or the expiration of the Term shall be prorated based on 1/365 of the then-current annual Taxes for each day of the partial month this Lease is in effect. “Taxes” means all taxes, assessments, and
governmental charges or fees whether federal, state, county or municipal, and whether they be by taxing districts or authorities presently taxing or by others, subsequently created or otherwise, and any other taxes and assessments (including
non-governmental assessments for common charges under a restrictive covenant or other private agreement) now or hereafter attributable to the Project (or its operation), excluding, however, federal and state taxes on income and Texas franchise taxes
as they are presently enacted (if the present method of taxation changes so that in lieu of the whole or any part of any Taxes, there is levied on Landlord a capital tax directly on the rents received therefrom or a franchise tax, assessment, or
charge based, in whole or in part, upon such rents for the Project, then all such taxes, assessments, or charges, or the part thereof so based, shall be deemed to be included within the term “Taxes” for purposes hereof). For purposes of
clarification (and without limiting the foregoing) if Texas franchise taxes are hereafter changed to be applicable to limited or general partnerships and Landlord is subject to such franchise taxes, such franchise taxes will be included in Taxes
hereunder. Taxes shall include the costs of consultants retained in an effort to lower taxes and all costs incurred in disputing any taxes or in seeking to lower the tax valuation of the Project. If Tenant is leasing the entire Project as of January
1 of any property tax year and provided no Event of Default then exists, upon 15 days’ written notice to Landlord, Tenant may, at its expense, contest the validity or amount of any property taxes applicable to the Project in accordance with all
applicable Laws. Notwithstanding anything herein and to the contrary, Tenant shall continue to pay all Taxes (including property taxes) as provided in this Lease during the pendency of any such contest, subject to Tenant’s right of
reimbursement of any amounts overpaid as determined by the results of such tax contest. 
  
 2. Escrow of Taxes. 
  
 (a) In order to ensure the payment of all Taxes, Tenant agrees to deposit with any Landlord’s Mortgagee (defined below) requiring payment of Taxes to it in escrow or, if requested by Landlord following an Event
of Default hereunder by Tenant, with Landlord, on the first day of each and every month during the Term, one-twelfth (1/12) of all Taxes for the ensuing 12-month period as reasonably estimated by Landlord or Landlord’s Mortgagee based on
current bills for same (or, if unavailable, based on the previous year’s bills). Tenant shall deposit, at least 15 days prior to the first date on which any interest or penalty will accrue or be assessed for the nonpayment of any Taxes
(“Due Date”), such additional amounts as may be necessary so that there shall be sufficient funds in such deposit account to pay each such Tax at least 15 days in advance of the Due Date thereof. If the total monthly deposits
made by Tenant under this Exhibit F during any calendar year exceed the actual Taxes for such calendar year, Landlord or Landlord’s Mortgagee, as the case may be, shall retain such excess and credit it to Tenant’s future deposits
under this Exhibit F (unless such adjustment is at the end of the Term, in which event Landlord shall refund such excess to Tenant as provided in Section 2(d) of this Exhibit F). If Tenant is required to escrow the payment of Taxes
with Landlord as a result of an Event of Default by Tenant hereunder, Tenant shall no longer be required to escrow such Taxes with Landlord as a result of such Event of Default so long as Tenant fully cures such Event of Default and no other Event
of Default occurs for a period of 12 months following the cure. 
  

 F-1 

 (b) If at any time the amount of any Tax is increased or Landlord or Landlord’s
Mortgagee receives notice indicating that such Tax will be increased, and if the monthly deposits then being made by Tenant for this purpose would not make up a fund sufficient to pay such Tax 15 days prior to the Due Date, said monthly deposits
shall thereupon be increased and Tenant shall, within 15 days following written notice of such increase, deposit with Landlord (or with Landlord’s Mortgagee, as the case may be) sufficient money so that the money then on hand for the payment of
said Tax plus the increased one-twelfth (1/12) payments shall be sufficient to pay such Tax at least 15 days before the Due Date of such Tax. 
  
 (c) For the purpose of determining whether Landlord (or Landlord’s Mortgagee, as the case may be) has on hand sufficient moneys to
pay any particular Tax at least 15 days prior to the Due Date therefor, deposits for each category of Tax shall be treated separately, it being the intention of the parties hereto that moneys deposited for the payment of an item not yet due and
payable shall not be used for the payment of an item that is due and payable. Notwithstanding the foregoing, if Tenant fails to make any deposit required hereunder, Landlord (or Landlord’s Mortgagee) may use deposits for one item for the
payment of another item then due and payable. 
  
 (d) Upon the expiration of the Term, all such deposits then held shall be applied on account of any and all sums due to Landlord under this Lease and Tenant shall forthwith pay the resulting deficiency. The excess, if any, shall be returned
to Tenant. If such funds are deposited with Landlord’s Mortgagee, Landlord will request that Landlord’s Mortgagee maintain such funds in an interest-bearing account. Unless Landlord’s Mortgagee agrees otherwise, Tenant shall not be
entitled to any interest on such funds so deposited with Landlord’s Mortgagee. 
  
 3. Payment of Taxes. Unless escrowed as provided in Section 2 of this Exhibit F, Tenant shall make all payments of Taxes directly to the appropriate taxing authorities. With respect to Taxes
payable for calendar year 2005, Landlord shall pay to Tenant (or, if applicable, the applicable taxing authority or to the holder of any tax escrow) Landlord’s portion of the ad valoren taxes for the Project for its period of ownership during
such year (i.e., Landlord shall be responsible for paying the ad valorem taxes for the Project for the period from January 1, 2005 through the day before the Commencement Date). 
  

 F-2 

  
 EXHIBIT G

  
 INSURANCE 
  
 1. Insurance. Throughout the Term, Tenant, at its own cost and
expense, shall carry and maintain insurance coverage set forth below: 
  
 (a) Property Insurance. 
  
 (1) All Risks; Replacement Value. Insurance on the Project (including, without limitation, all improvements thereto hereafter made by Tenant) and all fixtures, equipment and personal property at the
Project under an “All Risks of Physical Loss” policy (hereinafter referred to as “All Risks”) including, without limitation, coverage for loss or damage by water, flood, subsidence and sprinkler damage; such
insurance to be written for full replacement value without deduction for depreciation, i.e., in an amount equal to the greater of (A) 100% of the full costs of replacement of the Project and such fixtures, equipment and personal property (less the
cost of excavations, foundations and footings below the basement floor) without deduction for depreciation or (B) an amount sufficient to prevent Tenant from becoming a co-insurer of any loss under the applicable policy. The policy shall contain
such endorsements as Landlord may reasonably require, including “Replacement Cost,” “Agreed Amount” deleting the co-insurance provision of the policy and “Building Ordinance & Law.” If not otherwise included within
the “All Risks” coverage specified above, Tenant shall carry or cause to be carried, by endorsement to such “All Risks” policy, coverage against damage due to water and sprinkler leakage, flood and collapse and shall be written
with limits of coverage reasonably required by Landlord. The property coverage may not exclude the peril of terrorism (or Tenant must obtain a separate policy insuring the Project against acts of terrorism). The Replacement Value shall include the
cost of debris removal and, if available, the value of grading, paving, landscaping, architects, and development fees. 
  
 (2) Boiler and Machinery Insurance. Boiler and Machinery Insurance covering pressure vessels, air tanks, boilers, machinery,
pressure piping, heating, ventilation and air conditioning equipment, and elevator and escalator equipment and insurance against loss of occupancy or use arising from any breakdown of any such items, with limits as from time to time customary for
like property of the same type of installation as the Project and appropriate in the light of the cost of repairing potential damage. 
  
 (3) Rent Loss Insurance. Rent loss insurance coverage insuring the gross revenue receipts for the Project for a period of no
less than 18 months if the Premises are destroyed or rendered untenantable by any cause insured against (it being understood that the existence of such insurance shall not reduce Tenant’s obligation to pay Rent hereunder without diminution,
except as expressly provided in this Lease). 
  
 (4) Plate Glass Coverage. If the Project contains plate glass, plate glass insurance in such amounts as Landlord may reasonably determine. 
  
 (5) Flood Insurance. If the Project is located in a Special Flood hazard area as determined by
the Secretary of Housing and Urban Development, flood insurance. 
  
 (6) Builder’s Risk. If Tenant ever makes alterations or constructs improvements in the Project, Tenant shall, at it expense, procure and maintain contingency liability and builder’s risk
insurance in an amount and with coverages reasonably satisfactory to Landlord. 
  
 (7) Personal Property. Tenant shall, at Tenant’s sole cost and expense, insure Tenant’s furniture, equipment,
fixtures, computers, office machines, personal property, improvements and betterments and Tenant’s trade fixtures. 
  

 G-1 

 (b) Liability Insurance. Commercial general liability insurance, including
contractual liability (specifically covering this Lease), fire legal liability, and products completed operations, all on an “occurrence” policy form with a minimum combined single limit in the amount of one million dollars ($1,000,000)
per occurrence for bodily injury or personal injury to, illness or death of persons, and damage to property occurring in, on or about the Project or as a result of the completed operations of the Project. 
  
 (c) Excess Liability Insurance. Umbrella or
excess liability insurance for not less than ten million dollars ($10,000,000) per occurrence for bodily injury or personal injury to, illness or death of persons, and damage to property occurring in, on or about the Project or as a result of the
completed operations of the Project. 
  
 (d)
Worker’s Compensation Insurance. Worker’s compensation and employer’s liability insurance in all states in which the Premises and any other operations of Tenant are located and any other state in which Tenant may be
subject to any statutory or other liability arising in any manner whatsoever out of the actual or alleged employment of others. In addition to the insurance carried by Tenant, during the course of any alteration or repair work undertaken by a
contractor hired by or for Tenant, Tenant shall require such contractor to carry public liability insurance in limits of not less than $3,000,000 or such other amounts reasonably approved by Landlord. 
  
 (e) Miscellaneous Insurance. Such other
insurance in such amounts as from time to time reasonably may be required by Landlord or Landlord’s Mortgagee. 
  
 2. Insurance Providers. All insurance provided for in this Exhibit G shall be in such form and shall be issued by such responsible
insurance companies licensed to do business in the State in which the Project is located and having a A.M. Best claims rating (or the equivalent of such rating) of at least “A:X” or better and as are reasonably approved by Landlord. Upon
the execution of this Lease with respect to the insurance described in Section 1(b), 1(c) and 1(d) of this Exhibit, and upon the Commencement Date with respect to the other insurance required under this Exhibit, and, thereafter, not less than 15
days prior to the expiration dates of the expiring policies required pursuant to this Exhibit G, certificates of insurance and certified copies of the insurance policies or renewal certificates, as the case may be, bearing notations
evidencing the payment in full of premiums or accompanied by other evidence reasonably satisfactory to Landlord of such payment, shall be delivered by Tenant to Landlord, in each case for Landlord’s review and approval on an annual basis.

  
 3. Named Insureds. The policies of insurance
provided for in Section 1(a) of this Exhibit G shall name Landlord and Landlord’s Mortgagee as additional insureds and loss payees, as their respective interests may appear and shall include the interest of Landlord’s Mortgagee on a
standard non-contributory mortgagee endorsement. Landlord and Landlord’s Mortgagee shall be named as additional insureds under the policies provided for in Section 1(b) and 1(c) of this Exhibit G. All such policies shall also be payable,
if required by Landlord’s Mortgagee, to such Landlord’s Mortgagee as the interest of such Landlord’s Mortgagee may appear. 
  
 4. Compliance with and No Violation of Insurance. Tenant shall not violate or permit to be violated any of the conditions, provisions or
requirements of any insurance policy required by this Exhibit G, and Tenant shall perform, satisfy and comply with or cause to be performed, satisfied and complied with the conditions, provisions and requirements of the insurance policies and
the companies writing such policies so that, at all times, companies reasonably acceptable to Landlord provide the insurance required by this Exhibit G. 
  

5. Additional Insurance Provisions. Each policy of insurance required to be carried pursuant to the provisions of this Exhibit G
shall contain (a) an agreement by the insurer that such policy shall not be canceled, modified or denied renewal without at least 30 days prior written notice to Landlord and shall remain in effect notwithstanding any such cancellation or alteration
until such notice has been given to Landlord and such period of 30 days has elapsed, (b) an agreement that if cancellation is due to nonpayment of premiums, the insurer will so specify in the notice given in (a) above and will reinstate the policy
upon payment of the premiums by Landlord or Landlord’s Mortgagee, (c) a waiver of subrogation by the insurer, and (d) commercially reasonable deductibles reasonably acceptable to Landlord. In the event Tenant fails to maintain, or cause to be
maintained, or deliver and furnish to Landlord copies of certificates of insurance required by this Lease and such failure continues for ten days following written notice thereof to Tenant, Landlord may procure such insurance for the benefit only of
Landlord and Landlord’s Mortgagee for such risks covering Landlord’s interests, and Tenant will pay all premiums thereon, together with an administration fee of 15% of such cost, within 30 days after demand by Landlord. In the event

  

 G-2 

 
Tenant fails to pay such premiums (or reimburse Landlord) upon demand the amount of all such premiums shall bear Interest from the date paid by Landlord
until reimbursed by Tenant. All insurance under this Exhibit G to be maintained by Tenant shall be primary and non-contributing with any insurance which may be carried by Landlord, and shall afford coverage for all claims based on any act,
omission, event or condition that occurred or arose (or the onset of which occurred or arose) during the policy period other than as a result of the gross negligence or willful misconduct of Landlord. Upon the issuance of each such policy to be
maintained by Tenant, Tenant shall deliver a certificate of insurance to Landlord and, upon request of Landlord, a copy of each such policy, for retention by Landlord. Tenant may maintain the insurance required by this Exhibit G under blanket
insurance policies, provided that the insurer provides evidence that an amount necessary to meet the requirements of this Exhibit G has been reserved for the Project. 
  
 6. Insurance Limits. If by reason of changed economic conditions the insurance amounts referred to in this
Lease become inadequate, upon Landlord’s request, the limits shall be reasonably increased by Landlord from time to time to meet changed circumstances including but not limited to changes in purchasing power of the dollar and changes indicated
by the course of plaintiffs’ verdicts in personal injury actions in the District Court of the county in which the Project is located. 
  

 G-3 

  
 EXHIBIT H

  
 RENEWAL OPTION 
  
 Provided no Event of Default exists and Tenant is occupying the entire
Premises at the time of such election, Tenant may renew this Lease for one additional period of five years, by delivering written notice of the exercise thereof to Landlord not earlier than 18 months nor later than 12 months before the expiration of
the Term. The Basic Rent payable for each month during such extended Term shall be the prevailing rental rate (the “Prevailing Rental Rate”), at the commencement of such extended Term, for renewals of space of equivalent
quality, size, utility and location in similar-class buildings in the submarket in which the Building is located, with the length of the extended Term, the availability of covered and uncovered parking spaces and the credit standing of Tenant to be
taken into account. Within 30 days after receipt of Tenant’s notice to renew, Landlord shall deliver to Tenant written notice of the Prevailing Rental Rate and shall advise Tenant of the required adjustment to Basic Rent, if any, and the other
terms and conditions offered. Tenant shall, within 30 days after receipt of Landlord’s notice, notify Landlord in writing whether Tenant accepts or rejects Landlord’s determination of the Prevailing Rental Rate. If Tenant timely notifies
Landlord that Tenant accepts Landlord’s determination of the Prevailing Rental Rate, then, on or before the commencement date of the extended Term, Landlord and Tenant shall execute an amendment to this Lease extending the Term on the same
terms provided in this Lease, except as follows: 
  
 (a) Basic Rent shall be adjusted to the Prevailing Rental Rate; 
  
 (b) Tenant shall have no further renewal option unless expressly granted by Landlord in writing; and 
  
 (c) Landlord shall lease to Tenant the Premises in their then-current condition, and Landlord shall not provide to Tenant any allowances
(e.g., moving allowance, construction allowance, and the like) or other tenant inducements. 
  
 If Tenant timely rejects Landlord’s determination of the Prevailing Rental Rate, Landlord and Tenant shall use good-faith efforts to agree to the Prevailing Rental Rate within a 30 day period immediately
following Tenant’s written notice to Landlord rejecting Landlord’s determination of the Prevailing Rental Rate. If Landlord and Tenant are unable to agree to the Prevailing Rental Rate during such 30 day period, then Tenant may, in a
written notice to Landlord delivered prior to the expiration of such 30 day negotiating period, require that the determination of the Prevailing Rental Rate be made by brokers (and if Tenant makes such election, Tenant shall be deemed to have
irrevocably renewed the Term, subject only to the determination of the Prevailing Rental Rate as provided below). In such event, within ten days thereafter, each party shall select a qualified commercial real estate broker with at least ten years
experience in leasing property and buildings in the city or submarket in which the Premises are located. The two brokers shall give their opinion of prevailing rental rates within 20 days after their retention. In no event, however, shall the Basic
Rent in the renewal term be less than the then current Basic Rent rate per rentable square foot in effect hereunder. In the event the opinions of the two brokers differ and, after good faith efforts over the succeeding 20-day period, they cannot
mutually agree, the brokers shall immediately and jointly appoint a third broker with the qualifications specified above. This third broker shall immediately (within five days) choose either the determination of Landlord’s broker or
Tenant’s broker and such choice of this third broker shall be final and binding on Landlord and Tenant. Each party shall pay its own costs for its real estate broker. Following the determination of the Prevailing Rental Rate by the brokers, the
parties shall equally share the costs of any third broker. The parties shall immediately execute an amendment as set forth above. If Tenant fails to timely notify Landlord in writing that Tenant accepts or rejects Landlord’s determination of
the Prevailing Rental Rate, time being of the essence with respect thereto, Tenant’s rights under this Exhibit shall terminate and Tenant shall have no right to renew this Lease. 
  
 Tenant’s rights under this Exhibit shall terminate if (1) this Lease or Tenant’s right to possession of the Premises is
terminated, (2) Tenant assigns any of its interest in this Lease or sublets more than 50,000 rentable square feet of the Premises, or (3) Tenant fails to timely exercise its option under this Exhibit, time being of the essence with respect to
Tenant’s exercise thereof. 
  

 H-1 

  
 EXHIBIT I

  
 LETTER OF CREDIT 
  
 [BANK LETTERHEAD] 
  
                     , 200   
  

IRREVOCABLE LETTER OF CREDIT NO.          
  
 _____________________________________ 
 c/o
Trammell Crow Company 
 2001 Ross Avenue, Suite 3400 
 Dallas,
Texas 75201 
 Attn: Richard Fletcher 
  
 Gentlemen: 
  
                             , a national banking association
(“Bank”), of             ,
                                 hereby issues its Irrevocable Letter of Credit in
favor of                                     , a
                            , and/or its successors and assigns (“Landlord”),
for the account of Republic Underwriters Insurance Company, a Texas corporation (“Tenant”) up to the aggregate amount of $            , available at sight by
the drafts of Landlord on Bank. Drafts drawn on this Letter of Credit will be honored when presented, accompanied only by a letter or certificate purportedly signed by a representative of Landlord stating Landlord is entitled to draw on this Letter
of Credit under the terms of the Lease Agreement, dated as of August 31, 2004, between Landlord and Tenant. Partial draws shall be permitted hereunder. This Letter of Credit is transferable. Bank shall look solely to Tenant for payment of any fee
for such transfer. Such payment is not a condition to transfer. 
  
 All drafts drawn by reason of this Letter of Credit and in accordance with the above conditions, will meet with due honor when presented at the office of Bank in
                            ,
                            . 
  
 The obligations of Bank shall not be subject to any claim or defense by reason of the invalidity, illegality, or inability
to enforce any of the agreements set forth in the above Lease Agreement. 
  
 This Letter of Credit is subject to the International Standby Practices–ISP98, International Chamber of Commerce Publication 590 when not in conflict with the express terms of this Letter of Credit or with the
provisions of Article 5 of the Texas Business and Commerce Code, as amended. 
  
 This Letter of Credit shall terminate at 3:00 p.m. Central Standard [or Daylight Savings] Time on
                                     [Insert date 120 days
following scheduled expiration of the Term / OR, if Letter of Credit will be automatically renewed annually, insert date one year after date of Letter of Credit and add: This Letter of Credit shall be deemed automatically extended without
amendment(s) for successive period(s) of one year each from its current or any future expiration date(s) but in any event not beyond
                                        
{Insert date 120 days following scheduled expiration of Term}] which shall be the final expiration date of this Letter of Credit, unless, at least 60 days prior to the then current expiration date, Bank notifies Landlord in writing by certified
mail, return receipt requested, at the following address (or at such other address as Landlord may specify by written notice to Bank), that this Letter of Credit will not be extended beyond the current expiration date; provided, that Bank’s
obligation to make any payment hereunder in respect of a drawing request made prior to the expiry hereof shall continue until payment is made: 
  
 _____________________________________ 
 c/o
Trammell Crow Company 
 2001 Ross Avenue, Suite 3400 
 Dallas, Texas 75201 
 Attn: Richard Fletcher 
  

 I-1 

 Amounts drawn upon this Letter of Credit are to be endorsed on the reverse side of this Letter of Credit
by Bank. 
  

			
	 
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

 I-2

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