Document:

Memorandum of Understanding Regarding Office Lease Agreement

 Exhibit 10.02 
 Memorandum of Understanding 
 Regarding Office Lease Agreement 
 Between 
 Valero Corporate Services
Company, as Landlord, and 
 Valero Logistics Operations, L.P., as Tenant 
 This Memorandum of Understanding, by and between Valero Corporate Services Company, a Delaware corporation, and Valero Logistics Operations, L.P., a Delaware limited
partnership, will serve to document the agreement of such parties on the principal terms of an Office Lease Agreement (the “Lease Agreement”) to be executed by the parties. The parties agree to more fully memorialize these agreements in
the Lease Agreement no later than March 31, 2006, or such other date as may be mutually agreed to by the parties. Until such Lease Agreement is executed and delivered on behalf of the parties, the terms of this Memorandum of Understanding shall
be binding on the parties. 
 Principal Terms of Lease Agreement: 
  

	 Landlord: 
	 Valero Corporate Services Company 

  

	 Tenant: 
	 Valero Logistics Operations, L.P. 

 Leased Premises: All of a floor (approximately 63,803 square feet, floor to-be-determined) of the to-be-constructed office building (the “Building”) totaling approximately 259,455 square feet at Valero corporate
headquarters (the “Project”), in San Antonio, Bexar County, Texas, located on that certain parcel of land (the “Land”) replatted as Lot 6, Block 2, NCB 14746, recorded in Book 9568, Page 191, Plat Records of Bexar County, Texas.

  

	 Effective Date: 
	 January 1, 2006 

  

	 Initial Term: 
	 25 years from Rent Commencement Date (defined below) 

  

	 Renewal Option(s): 
	 One (1) option, for a period of 10 years 

 Rent Commencement Date: The earlier of (i) the Substantial Completion Date (defined below) or (ii) the date of Tenant’s beneficial occupancy of the Leased Premises for the conduct of its business
therein. For purposes hereof, the “Substantial Completion Date” means the date on which the initial leasehold improvements to the Leased Premises are completed in all material respects in substantial compliance with the final plans and
permits and the Leased Premises are ready for occupancy. 
  

	 Use: 
	 General office use, and related administrative and ancillary purposes 

  

	 Base Rent:  
	 Initial Term: 

  

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 For first 5 years: $1,598,000 per year; 
 For the next 5 years, Base Rent shall be adjusted based on changes in the CPI Index; 
 Thereafter, at the beginning of each 5 year period for the remainder of the Initial Term, Base Rent shall be adjusted to reflect the actual market rent
for comparable office space. 
 The Base Rent includes Tenant’s proportionate share (based on a fraction, the numerator of which is the
rentable square footage of the Leased Premises, and the denominator of which is the rentable square footage of the Building and the other buildings at the Project) of (i) Landlord’s operating expenses, such as HVAC, janitorial services,
and the other Landlord Services (defined below), (ii) the real property ad valorem taxes assessed or imposed on the Project, and (iii) Landlord’s insurance costs relating to the Project. 
 Renewal Period: 
 At the beginning
of the renewal period (if applicable), and again after the expiration of the first 5 years of the renewal period, the Base Rent shall be adjusted to reflect the actual market rent for comparable office space. 
 Change of Control Provision: In the event of a change of control (“Change of Control”) of Valero L.P. or Valero GP Holdings, LLC, Landlord may, in
its sole discretion, declare default by Tenant under the lease, for which Landlord will have all remedies available to it under the lease, including the right to evict Tenant with 6 months prior notice (such 6 month notice period shall only apply if
the Change of Control is the sole Tenant default). 
 Remedies upon Tenant Default: Lease shall contain standard Landlord remedies upon Tenant
default, including (without limitation) acceleration of rent. 
 Relocation of Landlord’s Headquarters: If Landlord’s corporate headquarters
are relocated to any other location, Landlord may terminate the Lease on 12 months prior written notice. 
 Initial Tenant Improvements/Alteration
Rights: Landlord shall be responsible, at its sole cost and expense, for initial tenant improvements/finish-out of Leased Premises, based on plans approved by Landlord and Tenant; after the Commencement Date, Tenant may make non-structural
changes to the Leased Premises without Landlord’s consent (structural changes shall require Landlord’s prior written consent, in its sole discretion). 
 Furnishings & Moving Expenses: Landlord shall provide Tenant with all furnishings being used by Tenant in Landlord’s other buildings as of the Rent Commencement Date. 

  

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All furnishings required by Tenant after the Rent Commencement Date shall be at Tenant’s sole cost and expense. Landlord shall move Tenant into the
Leased Premises at its sole cost and expense. 
 No Representations or Warranties: The Leased Premises shall be leased on an “AS IS”,
“WITH ALL FAULTS” basis, with no express or implied representations or warranties provided by Landlord; provided that, to the extent that any express warranties from third-party contractors relating to the initial tenant improvements to
the Leased Premises are partially assignable to Tenant, Landlord shall partially assign such warranties to Tenant. 
 Landlord Services/Maintenance
Responsibilities; Tenant Maintenance Responsibilities: Landlord shall be responsible for providing (i) maintenance and repair of the roof, exterior walls, foundations and other structural elements of the Building; (ii) the following
with respect to the Leased Premises: janitorial services, elevator service, electrical services, HVAC, replacement of lamps and ballasts in ceiling, water and sewer service for the restrooms, and routine plumbing repairs; (iii) grounds and
landscaping maintenance; and (iv) parking lot maintenance (collectively, “Landlord Services”). Tenant shall be responsible for providing all other maintenance and repairs to the Leased Premises. 
 License to Use Certain Amenities: As long as Landlord is providing the Campus Amenities (defined below) to its employees at the Project, then Tenant’s
employees at the Leased Premises shall have a license to use the Campus Amenities, within the areas at the Project or on Landlord’s adjacent campus designated by Landlord in its sole discretion, at no additional cost to Tenant other than any
costs charged to Landlord’s employees therefor. Notwithstanding the foregoing, Landlord may terminate the license (or any portion thereof, in Landlord’s sole discretion) described in this paragraph at any time upon thirty (30) days
written notice to Tenant after a Change of Control. For purposes hereof, the term “Campus Amenities” means the following: cafeteria services provided by Aramark Food Services, Inc. (or other entity designated by Landlord in its sole
discretion); fitness center, walking/jogging trails, and basketball and tennis courts owned by Landlord at the Project; fitness services provided by MediFit Corporate Services, Inc. (or other entity designated by Landlord in its sole discretion);
massage therapy provided by any person or entity designated by Landlord in its sole discretion; and any other similar kinds of services that may be provided by Landlord at the Project to Landlord’s employees at the Project in the future, as may
be designated by Landlord in its sole discretion. 
 Tenant’s Right to Assign or Sublease: Tenant may not assign any of its interest in the lease
or sublet all or any portion of the Leased Premises without Landlord’s prior written consent, in Landlord’s sole discretion. 
 Security:
Subject to the provisions below, Landlord shall provide security services for the Project, including the parking garage and the Leased Premises. 
  

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 Indemnity: The lease will contain typical indemnities (contained in standard office leases) from Tenant in favor
of Landlord; provided that Tenant shall release, indemnify and hold harmless Landlord from and against any and all claims of Tenant’s employees arising from the security, health, and/or fitness services (each of which is described above) at the
Project or the exercise of any of the rights under the license described above by Tenant’s employees, including, without limitation, any such claim caused by or resulting from Landlord’s negligence. The lease will include the necessary
provisions to comply with the express negligence standards of the laws of the State of Texas. 
 Insurance: The lease will describe the insurance
coverage (as typically required by Landlord) that Tenant shall provide at its sole cost and expense, with Landlord named as an additional insured. 
 Taxes: Tenant shall be responsible for payment of all taxes and assessments levied or assessed upon Tenant’s fixtures, furniture and personal property located in or about the Leased Premises. 
 Parking: Tenant shall be entitled to a pro-rata share of the parking spaces located in the parking garage to be constructed adjacent to the Building, including a
pro-rata share of the reserved spaces, based on its proportionate share (made up of a fraction, the numerator of which is the rentable square footage of the Leased Premises in the Building, and the denominator of which is the rentable square footage
in the Building), all at no additional cost. 
 Brokerage Commissions: None. The lease shall contain a mutual indemnity for any claim for brokerage
commissions in connection with the lease arising by, through or under the indemnifying party. 
 The parties agree that this Memorandum of Understanding
shall be binding upon their respective successors and assigns, and that either party may assign its rights and obligations hereunder to one or more affiliates without the other party’s prior written consent. This Memorandum of Understanding may
be amended only by an instrument in writing signed by both parties. This Memorandum of Understanding shall be superseded by the Lease Agreement upon the complete execution of the Lease Agreement. THIS MEMORANDUM OF UNDERSTANDING SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS. THIS MEMORANDUM OF UNDERSTANDING WAS PREPARED BY BOTH PARTIES HERETO AND NOT BY ONE PARTY TO THE EXCLUSION OF THE OTHER PARTY. 
 [signatures contained on next page] 
  

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 The parties, by the signature of the duly authorized officers below, agree to terms set forth above, effective as of
January 1, 2006. 
  

					
	 “Landlord”
 VALERO CORPORATE SERVICES COMPANY

		
	By:	 	/s/ Mike Ciskowski
		 	 Mike Ciskowski, Executive Vice President

	
	 “Tenant”
 VALERO LOGISTICS OPERATIONS, L.P.

		
	By:	 	Valero GP, Inc., its General Partner
			
		 	 By:
	 	 /s/ Curtis V. Anastasio 

		 		 	 CurtisV. Anastasio, President

  

 5Restricted Stock Agreement under Mercury General Corp.

 EXHIBIT 10.1 
 RESTRICTED STOCK AGREEMENT 
 OF 
 MERCURY GENERAL CORPORATION 
 THIS AGREEMENT (the “Agreement”)
is entered into as of                                     ,
20     (the “Award Date”) by and between Mercury General Corporation, a California corporation (the “Company”), and
                                 (the “Participant”). 

WHEREAS, the Company has adopted the Mercury General Corporation 2005 Equity Incentive Award Plan (as it may be amended from time to time, the
“Plan”), the terms of which are hereby incorporated by reference and made a part of this Agreement; and 
 WHEREAS,
Article 6 of the Plan provides for the issuance of awards of the Company’s common stock, without par value (“Common Stock”), subject to certain restrictions (“Restricted Stock”); and 
 WHEREAS, the Committee described in Article 12 of the Plan (the “Committee”) has determined that it would be to the advantage and
best interest of the Company and its stockholders to award shares of Restricted Stock to the Participant pursuant to the terms and conditions set forth herein; 
 NOW, THEREFORE, in consideration of the mutual covenants herein contained and other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto do hereby agree as follows: 

ARTICLE I 
 RESTRICTED STOCK
AWARD 
 Section 1.1 Award of Restricted Stock. In consideration of the Participant’s agreement to remain in
the employ of the Company, and for other good and valuable consideration which the Committee has determined exceeds the aggregate par value of the shares of Common Stock subject to the Award (as defined below), as of the Award Date the Company
issues to the Participant                      shares of Restricted Stock (the “Award”) upon the terms and conditions set
forth in this Agreement. 
 Section 1.2 Award Subject to Plan. The Award granted hereunder is subject to the terms and
provisions of the Plan, including without limitation, Article 11 thereof. 
 ARTICLE II 
 RESTRICTIONS 
 Section 2.1 Forfeiture. All shares of Restricted Stock issued to the Participant pursuant to Section 1.1 are initially subject to forfeiture and any portion of the Award which is not vested upon the
Participant’s termination of employment with the Company (as determined in good faith by the Committee) shall thereupon be forfeited immediately and without any further action by the Company. 
  

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 Section 2.2 Vesting and Lapse of Restrictions. Subject to Sections 2.1 and 2.3,
the restrictions on sale or other transfer set forth in Section 3.2 and the exposure to forfeiture set forth in Section 2.1 (the “Restrictions”) shall lapse with respect to
            % of the shares of Restricted Stock subject to the Award (rounded down to the next whole number of shares) on each of the first
             anniversaries of the Award Date (each such anniversary, a “Vesting Date”), provided in each case that the Participant remains continuously employed in
active service by the Company from the Award Date through such date. 
 Section 2.3 Legend. Certificates representing
shares of Restricted Stock issued pursuant to this Agreement shall, until all Restrictions lapse or shall have been removed and new certificates are issued pursuant to Section 2.4, bear the following legend: 
 “THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN VESTING REQUIREMENTS AND MAY BE SUBJECT TO FORFEITURE UNDER THE TERMS OF THAT
CERTAIN RESTRICTED STOCK AGREEMENT, DATED                     , 20        , BY AND BETWEEN
MERCURY GENERAL CORPORATION AND THE REGISTERED OWNER OF SUCH SHARES, AND SUCH SHARES MAY NOT BE, DIRECTLY OR INDIRECTLY, OFFERED, TRANSFERRED, SOLD, ASSIGNED, PLEDGED, HYPOTHECATED OR OTHERWISE DISPOSED OF UNDER ANY CIRCUMSTANCES, EXCEPT PURSUANT TO
THE PROVISIONS OF SUCH AGREEMENT.” 
 Section 2.4 Issuance of Certificates; Tax Withholding. 
 (a) Subject to Section 2.4(b), upon each Vesting Date of the Restricted Stock as provided in Section 2.2, the Company shall
cause new certificates to be issued with respect to such vested Shares and delivered to the Participant or his or her legal representative, free from the legend provided for in Section 2.3 and any of the other Restrictions. Such vested shares
shall cease to be considered Restricted Stock subject to the terms and conditions of this Agreement. 
 (b) Notwithstanding
Section 2.4(a), no such new certificate shall be delivered to the Participant or his legal representative unless and until the Participant or his legal representative shall have paid to the Company, or arranged for payment in accordance with
the Plan, the full amount of all federal and state withholding or other taxes applicable to the taxable income of Participant resulting from the grant of Restricted Stock or the lapse or removal of the Restrictions. 
 Section 2.5 Certain Changes in Capitalization. If the shares of the Company’s Common Stock as a whole are increased, decreased,
changed into or exchanged for a different number or kind of shares or securities of the Company, whether through merger, consolidation, reorganization, recapitalization, reclassification, stock dividend, stock split, combination of shares, exchange
of shares, change in corporate structure or the like, the Committee, in its sole discretion, shall have the discretion and power to determine and to make effective provision for acceleration of the time or times at which any Restrictions shall lapse
or be removed. In addition, in the case of the occurrence of any event described in this Section 2.5, the Committee, subject to 

  

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the provisions of the Plan and this Agreement, shall make an appropriate and proportionate adjustment in the number and kind of shares of Restricted Stock,
to the end that after such event the Participant’s proportionate interest shall be maintained as before the occurrence of such event. Any such adjustment made by the Committee shall be final and binding upon the Participant, the Company and all
other interested persons. In the event that the Participant receives any new or additional or different shares or securities by reason of any transaction or event described in this Section 2.5, such new or additional or different shares or
securities which are attributable to the Participant in his capacity as the registered owner of the Restricted Stock then subject to Restrictions, shall be considered to be Restricted Stock and shall be subject to all of the Restrictions.

 Section 2.6 Section 83(b) Election. Participant understands that Section 83(a) of the Code taxes as ordinary
income the difference between the amount, if any, paid for the shares of Common Stock and the Fair Market Value of such shares at the time the Restrictions on such shares lapse. Participant understands that, notwithstanding the preceding sentence,
Participant may elect to be taxed at the time of the Award Date, rather that at the time the Restrictions lapse, by filing an election under Section 83(b) of the Code (an “83(b) Election”) with the Internal Revenue Service
within 30 days of the Award Date. In the event Participant files an 83(b) Election, Participant will recognize ordinary income in an amount equal to the difference between the amount, if any, paid for the shares of Common Stock and the Fair
Market Value of such shares as of the Award Date. Participant further understands that an additional copy of such 83(b) Election form should be filed with his or her federal income tax return for the calendar year in which the date of this Agreement
falls. Participant acknowledges that the foregoing is only a summary of the effect of United States federal income taxation with respect to the award of Restricted Stock hereunder, and does not purport to be complete. PARTICIPANT FURTHER
ACKNOWLEDGES THAT THE COMPANY IS NOT RESPONSIBLE FOR FILING THE PARTICIPANT’S 83(b) ELECTION, AND THE COMPANY HAS DIRECTED PARTICIPANT TO SEEK INDEPENDENT ADVICE REGARDING THE APPLICABLE PROVISIONS OF THE CODE, THE INCOME TAX LAWS OF ANY
MUNICIPALITY, STATE OR FOREIGN COUNTRY IN WHICH PARTICIPANT MAY RESIDE, AND THE TAX CONSEQUENCES OF PARTICIPANT’S DEATH. 
 ARTICLE
III 
 OTHER PROVISIONS 
 Section 3.1 Escrow. The Secretary of the Company or such other escrow holder as the Committee may appoint shall retain physical custody of the certificates representing Restricted Stock until all of the Restrictions lapse
or shall have been removed; provided, however, that in no event shall the Participant retain physical custody of any certificates representing unvested Restricted Stock issued to him or her. 
 Section 3.2 Restricted Stock Not Transferable. No Restricted Stock or any interest or right therein or part thereof shall be liable
for the debts, contracts or engagements of the Participant or his or her successors in interest or shall be subject to disposition by transfer, alienation, anticipation, pledge, encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment, garnishment or any other legal or equitable proceedings (including bankruptcy), and any 

  

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attempted disposition thereof shall be null and void and of no effect; provided, however, that this Section 3.2 shall not prevent transfers by
will or by applicable laws of descent and distribution. 
 Section 3.3 Rights as Stockholder. Except as otherwise provided
herein, upon delivery of the shares of Restricted Stock to the escrow holder pursuant to Section 3.1, the Participant shall have all the rights of a stockholder with respect to said shares, subject to the Restrictions herein, including the right to
vote the shares and to receive all dividends or other distributions paid or made with respect to the shares or Restricted Stock; provided, however, that any dividends declared on the Restricted Stock shall be subject to the Restrictions until
the Restrictions on the underlying shares of Restricted Stock lapse or are removed pursuant to this Agreement, and shall be maintained by the Company pursuant to Section 3.1 and released to the Participant as the Restrictions on the Restricted Stock
lapse or are removed pursuant to this Agreement; and, provided, further, that any and all shares of Common Stock received by the Participant with respect to such Restricted Stock as a result of stock dividends, stock splits or any other form
of recapitalization shall also be subject to the Restrictions until the Restrictions on the underlying shares of Restricted Stock lapse or are removed pursuant to this Agreement. 
 Section 3.4 Not a Contract of Employment. Nothing in this Agreement or in the Plan shall confer upon the Participant any right to
continue in the employ of the Company or any of its Subsidiaries or shall interfere with or restrict in any way the rights of the Company or its Subsidiaries, which are hereby expressly reserved, to discharge the Participant at any time for any
reason whatsoever, with or without cause, except as may otherwise be provided by any written agreement entered into by and between the Company and the Participant. 
 Section 3.5 Governing Law. The laws of the State of California shall govern the interpretation, validity, administration, enforcement and performance of the terms of this Agreement regardless of the
law that might be applied under principles of conflicts of laws. 
 Section 3.6 Conformity to Securities Laws. The
Participant acknowledges that the Plan and this Agreement are intended to conform to the extent necessary with all provisions of the Securities Act of 1933, as amended, and the Securities Exchange Act of 1934, as amended (the “Exchange
Act”), and any and all regulations and rules promulgated thereunder by the Securities and Exchange Commission, including without limitation Rule 16b-3 under the Exchange Act. Notwithstanding anything herein to the contrary, the Plan
shall be administered, and the Award is granted, only in such a manner as to conform to such laws, rules and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be deemed amended to the extent necessary to
conform to such laws, rules and regulations. 
 Section 3.7 Amendment, Suspension and Termination. The Award may be wholly
or partially amended or otherwise modified, suspended or terminated at any time or from time to time by the Committee or the Board of Directors of the Company, provided that, except as may otherwise be provided by the Plan, neither the
amendment, suspension nor termination of this Agreement shall, without the consent of the Participant, alter or impair any rights or obligations under the Award. 
 Section 3.8 Notices. Notices required or permitted hereunder shall be given in writing and shall be deemed effectively given upon personal delivery or upon deposit in the United States mail by
certified mail, with postage and fees prepaid, addressed to the Participant to his or her address shown in the Company records, and to the Company at its principal executive office. 
  

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 Section 3.9 Definitions. Capitalized terms not defined herein shall have the meanings
assigned to such terms in the Plan. 
 IN WITNESS WHEREOF, this Agreement has been executed and delivered by the parties hereto. 

 

			
	MERCURY GENERAL CORPORATION
		
	By:	 	  
	 Name:
	 	  
	 Title:
	 	  

  

			
	  
	 [Participant’s Name]

	
	 Residence Address:                                  
                               

	  
	  
	  
	
	 Participant’s Social Security Number:

	  

  

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