Document:

Exhibit 4.67

Exhibit 4.67

EXECUTION COPY

REGISTRATION RIGHTS AGREEMENT

REGISTRATION RIGHTS AGREEMENT (the “Agreement”), dated as of July 12, 2010, by and
between XINHUA SPORTS & ENTERTAINMENT LIMITED, a Cayman Islands limited company (the
“Company”), and the Investors listed in Schedule 1 hereof (each, an
“Investor” and collectively the Investors, and, together with the Company, the
“Parties”).

W I T N E S S E T H:

WHEREAS, the Company and the Investors have entered into that certain Series C Convertible
Preferred Shares Purchase Agreement dated as of the date hereof (the “Preferred Shares Purchase
Agreement”), pursuant to which the Investors are acquiring certain Preferred Shares (as defined
below) of the Company, and the Company agreed to provide certain registration rights to the
Investors;

WHEREAS, the Company sponsors a depository facility under which certain American Depository
Shares (“ADS”) have been (and in the future may be) issued, with each ADS representing two
A Common Shares of the Company;

WHEREAS, the Company maintains a listing for the ADS on the Nasdaq Global Market; and

WHEREAS, the Parties desire to set forth the Investors’ rights and the Company’s obligations
in relation to the Registrable Securities (as defined below).

NOW, THEREFORE, in consideration of the premises and the mutual covenants and the agreements
herein set forth and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto, intending to be legally bound, hereby agree as
follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

Section 1.01. Definitions. As used in this Agreement, the following terms shall have
the following meanings (such meanings to be equally applicable to both the singular and plural
forms of the terms defined).

“A Common Shares” means the Class A Common Shares of the Company, par value US$0.001
per share.

“Action” against a Person means an action, suit, litigation, arbitration,
investigation, complaint, contest, hearing, inquiry, inquest, audit, examination or other
proceeding threatened or pending against or affecting the Person or its property, whether civil,

 

 

 

criminal, administrative, investigative or appellate, in law or equity before any arbitrator
or Governmental Authority.

“ADS” has the meaning set forth in the recitals set forth above.

“B Common Shares” means the Class B Common Shares of the Company, par value US$0.001
per share.

“Board of Directors” means the board of directors of the Company as constituted from
time to time.

“Business Day” means any day other than a Saturday, Sunday or a day on which banking
institutions in the State of New York or Hong Kong are required or authorized by law or executive
order to close.

“Company” has the meaning set forth in the preamble hereof.

“Company Indemnified Persons” has the meaning set forth in Section 2.06(b).

“Deposit Agreement” means the Deposit Agreement among the Company, the Depositary and
the holders from time to time of the depositary receipts evidencing ADS.

“Depositary” means The Bank of New York, as the depositary under the Deposit
Agreement.

“Designated Offshore Securities Market” means a Designated Offshore Securities Market
as defined in Rule 902(b) of Regulation S of the Securities Act.

“Equity Securities” means the A Common Shares, and any other capital shares (including
the Series C Preferred Shares, the Series B Preferred Shares and the Company’s B Common Shares, par
value US$.001 per share), equity interest or other ownership interest or profit participation or
similar right with respect to the Company, including, without limitation, limited liability company
membership interests, partnership interests, voting trust certificates, certificates of interest or
participation in any profit-sharing agreement or arrangement, options, warrants, bonds, debentures,
notes, or other evidences of indebtedness, secured or unsecured, convertible, subordinated or
otherwise, or in general any instruments commonly known as “securities” or any certificates of
interest, shares or participations in temporary or interim certificates for the purchase or
acquisition of, or any right to subscribe to, purchase or acquire, any of the foregoing.

“Exchange Act” means the United States Securities Exchange Act of 1934, as amended
from time to time, and any successor statute.

“Governmental Authority” means any government or political subdivision or department
thereof, any governmental or regulatory body, commission, board, bureau, agency or instrumentality,
or any court or arbitrator or alternative dispute resolution body, in each case whether federal,
state, local, foreign or supranational, as well as any applicable self regulatory body.

 

2

 

“Holder Indemnified Persons” has the meaning set forth in Section 2.06(a)(i).

“Hong Kong” means the Special Administrative Region of Hong Kong.

“Indemnitee” has the meaning set forth in Section 2.06(c).

“Indemnitor” has the meaning set forth in Section 2.06(c).

“Investors” has the meaning set forth in the preamble hereof.

“Investor Common Shares” means (a) any A Common Shares issued or issuable upon
conversion of any Series C Preferred Shares purchased by an Investor pursuant to the Preferred
Shares Purchase Agreement and (b) any A Common Shares of the Company which an Investor (or any
permitted transferee hereunder) shall be entitled to receive, or shall have received, in connection
with any share splits, share dividends or similar events with respect to the Company’s A Common
Shares.

“Losses” has the meaning set forth in Section 2.06(a)(i).

“NuCom Registration Rights Agreement” means the Registration Rights Agreement dated as
of March 11, 2009 between the Company and the investors listed therein.

“Parity Registrable Securities” means (a) any “Registrable Securities” as defined in
the Patriarch Investor Rights Agreement, (b) any “Registrable Securities” as defined in the
Patriarch Investor and Registration Rights Agreement, (c) any “Registrable Securities” as defined
in the Yucaipa Registration Rights Agreement, (d) any “Registrable Securities” as defined in the
NuCom Registration Rights Agreement, and (e) any A Common Shares into which any Permitted Parity
Preferred Shares are convertible, to the extent that registration rights are granted to the holders
of such shares in connection with the issuance of such Permitted Parity Preferred Shares.

“Parity Registrable Securities Holder” means any holder of Parity Registrable
Securities.

“Parties” has the meaning set forth in the preamble hereof.

“Patriarch Investor and Registration Rights Agreement” means the Investor and
Registration Rights Agreement dated as of October 21, 2008 among the Company, the investors listed
therein and XFL.

“Patriarch Investor Rights Agreement” means the Investor Rights Agreement dated as of
March 16, 2006 among the Company, Xinhua Finance Limited and Patriarch Partners Media Holdings,
LLC.

“Permitted Parity Preferred Shares” means any preferred shares of the Company that
constitute “Parity Shares” issued in compliance with Section 5.2(c) of the Series B Authorizing
Resolution.

 

3

 

“Person” shall mean any individual, Governmental Authority, firm, corporation, limited
liability company, partnership, trust, incorporated or unincorporated association, joint venture,
joint stock company or other entity of any kind, and shall include any successor (by merger or
otherwise) of such entity.

“Potential Material Event” means either (a) the possession by the Company of material
information not ripe for disclosure in a registration statement, or (b) any material engagement or
activity by the Company which would be adversely affected by disclosure in a registration statement
at such time, in each case, which shall be evidenced by a written good faith determination by the
Board of Directors that both disclosure of such information, engagement or activity in a
registration statement would be detrimental to the business and affairs of the Company, and (y) a
registration statement would be materially misleading absent the inclusion of such information,
engagement or activity.

“Preferred Shares Purchase Agreement” has the meaning set forth in the recitals set
forth above.

“Prior Agreements” means (a) the Patriarch Investor Rights Agreement, (b) the
Patriarch Investor and Registration Rights Agreement, (c) the Yucaipa Registration Rights
Agreement, and (d) the NuCom Registration Rights Agreement.

“Register”, “registered” and “registration” means a registration
effected through the preparation and filing of a registration statement or similar document in
compliance with the Securities Act and the declaration or ordering of effectiveness of such
registration statement or document.

“Registrable Securities” means any Investor Common Shares; provided,
however, that Registrable Securities shall cease to be Registrable Securities upon the
earlier of (i) when the Registrable Securities have been transferred pursuant to Rule 144, (ii)
when, with respect to any Registrable Securities Holder, in the reasonable opinion of counsel to
the Company, all Registrable Securities proposed to be sold by such Registrable Securities Holder
may then be sold pursuant to Rule 144 without any volume limitations, which counsel shall be
reasonably satisfactory to such Registrable Securities Holder and (iii) the date as of which all of
the Registrable Securities have been sold pursuant to a Registration Statement, provided,
further, that “Registrable Securities” shall exclude in all cases any Registrable
Securities Transferred by a Registrable Securities Holder or any other Person in a transaction
other than an assignment pursuant to Section 2.07.

“Registrable Securities Holder” means any Person who holds Registrable Securities who
(i) is an Investor or (ii) is a Person to whom rights under this Agreement have been assigned
pursuant to Section 2.07. For the purposes of this Agreement, any holder of Series C Preferred
Shares shall be deemed to be the holder of any Registrable Securities issuable upon conversion of
such Series C Preferred Shares.

“Registration Expenses” means all expenses incurred by the Company in effecting any
registration under this Agreement, including, without limitation, all registration, qualification
and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the

 

4

 

Company, blue sky fees and expenses, the expense of any special audits incident to or required
by any such registration and the reasonable fees and disbursements of a single special legal
counsel to represent the Selling Holders, as the case may be. Registration Expenses do not include
compensation of regular employees of the Company which shall be paid in any event by the Company,
underwriting discounts and commissions and share transfer taxes.

“Registration Statement” means a registration statement on Form F-1 or S-1, Form F-3
or S-3 or Form SB-2 (or such similar or successor forms as may be appropriate) prepared and filed
with the SEC by the Company pursuant to Article II of this Agreement.

“Regulation” means each applicable law, rule, regulation, order, guidance or
recommendation (or any change in its interpretation or administration) by any Governmental
Authority, central bank or comparable agency and any request or directive (whether or not having
the force of law) of any of those Persons and each judgment, injunction, order, writ, decree or
award of any Governmental Authority, arbitrator or other Person.

“Rule 144” means Rule 144 promulgated under the Securities Act, as such rule shall be
in effect from time to time.

“SEC” means the United States Securities and Exchange Commission and includes any
Governmental Authority succeeding to the functions thereof.

“Securities” means any shares, limited liability company membership interests,
partnership interests, voting trust certificates, certificates of interest or participation in any
profit-sharing agreement or arrangement, options, warrants, bonds, debentures, notes, or other
evidences of indebtedness, secured or unsecured, convertible, subordinated or otherwise, or in
general any instruments commonly known as “securities” or any certificates of interest, shares or
participations in temporary or interim certificates for the purchase or acquisition of, or any
right to subscribe to, purchase or acquire, any of the foregoing.

“Securities Act” means the United States Securities Act of 1933, as amended from time
to time, and any successor statute.

“Selling Expenses” means, in respect of a Registration Statement, all underwriting
discounts, selling commissions and share transfer taxes applicable to the Registrable Securities
registered by the applicable Selling Holders.

“Selling Holders” means, in respect of a Registration Statement, Registrable
Securities Holders and/or Parity Registrable Securities Holders selling Registrable Securities
and/or Parity Registrable Securities pursuant to such Registration Statement.

“Series B Authorizing Resolution” means the authorizing resolution adopted on or prior
to the date hereof creating the Series B Preferred Shares.

“Series B Preferred Shares” means the Series B Convertible Preferred Shares of the
Company, each with a par value US$0.001 per share and a Stated Value of US$100.00 per share.

 

5

 

“Series C Preferred Shares” means the Series C Convertible Preferred Shares of the
Company, each with a par value US$0.001 per share and a Stated Value of US$100.00 per share.

“Transfer” means any sale, assignment, transfer, exchange, pledge, grant of security
interest in, hypothecation, encumbrance or other disposition or conveyance of any interest in.

“USD”, “Dollars” or “US$” means the lawful currency of the United
States of America.

“Violation” has the meaning set forth in Section 2.06(a)(i).

“XFL” means Xinhua Finance Limited, a company organized under the laws of the Cayman
Islands.

“Yucaipa Registration Rights Agreement” means the Registration Rights Agreement dated
as of February 28, 2008 by and between the Company and Yucaipa Global Partnership Fund, L.P., an
exempted limited partnership organized under the laws of the Cayman Islands.

Section 1.02. Interpretation.

(a) Headings. The headings to the Articles, Sections and Subsections of this
Agreement are inserted for convenience of reference only and shall not affect the meaning or
interpretation of this Agreement.

(b) Usage. In this Agreement, unless the context requires otherwise: (i) the
singular number includes the plural number and vice versa; (ii) reference to any gender includes
each other gender; (iii) the Exhibits to this Agreement are hereby incorporated into, and shall be
deemed to be a part of, this Agreement; (iv) the terms “hereunder”, “hereof”, “hereto” and words of
similar import shall be deemed references to this Agreement as a whole and not to any particular
section or other provision hereof; (v) the words “include”, “includes” and “including” shall be
deemed to be followed by the words “without limitation”; and (vi) a reference to any Article,
Section or Subsection shall be deemed to refer to the corresponding Article, Section, or Subsection
of this Agreement.

ARTICLE II

REGISTRATION RIGHTS

Section 2.01. Piggyback Registration.

(a) Company Registration. If the Company proposes to register (including for this
purpose a registration effected by the Company for shareholders other than the Registrable
Securities Holders) any of its Equity Securities under the Securities Act in connection with the
public offering of such securities, the Company shall promptly give all Registrable Securities
Holders written notice of such registration at least 30 calendar days prior to the filing of such
Registration Statement with the SEC. Such Registrable Securities Holders shall have a period of

 

6

 

20 calendar days after receiving such written notice from the Company in which to elect to
include some or all of such Registrable Securities Holders’ Registrable Securities in such
Registration Statement. Such Registrable Securities Holders shall exercise their right to include
Registrable Securities in such Registration Statement by delivering a written notice to the Company
within such 20 calendar day period specifying the number of Registrable Securities such Registrable
Securities Holders wishes to include in such Registration Statement. Subject to the provisions of
Section 2.01(b) hereof, the Company shall use its reasonable best efforts to include the
Registrable Securities requested to be included by such Registrable Securities Holders in the
Registration Statement.

(b) Underwritten Offerings.

(i) If the registration for which the Company gives notice to the Registrable Securities
Holders under Section 2.01(a) is an underwritten offering, the Company shall not be required under
this Section 2.01 to include any of such Registrable Securities Holders’ Registrable Securities in
such underwriting unless such Registrable Securities Holders accept the terms of the underwriting
as agreed upon between the Company and the underwriters. In connection with such an underwritten
offering, the Company (or other Persons who may be entitled to select the underwriters) shall have
the right to select the managing underwriter or underwriters. If such Registrable Securities
Holders wish to distribute their Registrable Securities through such underwriting, such Registrable
Securities Holders shall enter into an underwriting agreement in customary form with the
underwriter or underwriters, subject to the limitations set forth in Section 2.06 hereof. If such
Registrable Securities Holders do not approve of the terms of such underwriting, such Registrable
Securities Holders may elect to withdraw from such offering by providing written notice to the
Company and the underwriter.

(ii) Notwithstanding any other provision of this Section 2.01, if the underwriter advises the
Company that in the opinion of such underwriter, the distribution of all of the Registrable
Securities requested to be registered would materially and adversely affect the distribution of all
of the securities to be underwritten, then (x) the Company shall deliver to the Registrable
Securities Holders who requested inclusion of Registrable Securities held by them in the offering a
copy of such underwriter’s opinion, which opinion shall be in writing and shall state the reasons
for such opinion and (y) the number of Equity Securities (including the Registrable Securities)
that may be included in such registration shall be allocated in the order listed below (provided
that in the case of any Registration Statement to which the provisions of any of the Prior
Agreements are applicable, the following priorities shall apply only to the extent not inconsistent
with such provisions):

(A) first, to the Company;

(B) second, to such Registrable Securities Holders and any Parity Registrable
Securities Holders proposing to register securities in such registration (pro rata
based on the respective numbers of Registrable Securities or Parity Registrable
Securities held by them); and

(C) third, to the other Persons proposing to register securities in such
registration, if any.

 

7

 

If so determined by the underwriter, all Registrable Securities may be excluded from such
registration and underwritten offering so long as all Parity Registrable Securities are similarly
excluded. Any Registrable Securities excluded or withdrawn from such underwriting shall be
withdrawn from the registration.

(iii) The Company shall have no obligation to register any Registrable Securities under this
Section 2.01 in connection with a registration by the Company (i) relating solely to the sale of
securities to participants in a Company equity incentive plan, or (ii) relating to a corporate
reorganization or other transaction under Rule 145 of the Securities Act (or comparable provision
under the laws of another jurisdiction, as applicable) or (iii) a registration on Form S-8 or any
successor form to such form.

Section 2.02. Expenses of Registration. All Registration Expenses incurred in
connection with any registration, filing, qualification or compliance pursuant to Section 2.01,
shall be borne by the Company. Unless otherwise stated, all Selling Expenses relating to any
Registrable Securities and/or Parity Registrable Securities shall be borne by the applicable
Selling Holders pro rata based on the respective numbers of Registrable Securities and/or Parity
Registrable Securities registered by them.

Section 2.03. Further Obligations of the Company. Whenever the Company effects the
registration of any Registrable Securities pursuant to this Article II, the Company shall:

(a) Registration of ADS. If the Selling Holders propose to sell Registrable
Securities and/or Parity Registrable Securities pursuant to any Registration Statement referred to
herein in the form of ADS, register additional ADS on Form F-6 if and to the extent necessary to
permit the sale of such Registrable Securities and/or Parity Registrable Securities as ADS.

(b) Filing of Amendments and Supplements. Prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to the Registration Statement and
the prospectus used in connection with the Registration Statement as may be necessary to keep the
Registration Statement effective and to comply with the provisions of the Securities Act with
respect to the disposition of all Registrable Securities and other securities of the Company
covered by the Registration Statement at all times during the period for which the Company is
required to maintain the effectiveness of such Registration Statement pursuant to the terms of this
Agreement.

(c) Copies of Documents. Furnish to each Selling Holder, without charge, such number
of conformed copies of the Registration Statement and of each such amendment and supplement thereto
(in each case including all exhibits), such number of copies of the prospectus included in such
Registration Statement (including each preliminary prospectus and any summary prospectus), in
conformity with the requirements of the Securities Act, such documents incorporated by reference in
such Registration Statement or prospectus, and such other documents, as such Selling Holders may
reasonably request.

(d) Opinion and Comfort Letter. Furnish to such Selling Holders (i) an opinion of the
counsel representing the Company for purposes of such registration, dated the

 

8

 

effective date of such Registration Statement (or, if such registration includes an
underwritten public offering, dated the date of the closing under the underwriting agreement with
respect to both the effective date of the Registration Statement and the date of the closing under
the underwriting agreement), in form and substance as is customarily given by counsel for the
issuer to underwriters in an underwritten public offering, addressed to the underwriters, if any,
and to such Selling Holders, and (ii) a “cold comfort” letter, dated the effective date of such
Registration Statement (and, if such Registration Statement includes an underwritten public
offering, dated the date of the closing under the underwriting agreement) signed by the independent
certified public accountants who have certified the Company’s financial statements included in such
Registration Statement, in form and substance as is customarily given by independent certified
public accountants to underwriters in an underwritten public offering, addressed to the
underwriters, if any, and to such Selling Holders.

(e) “Blue Sky” Qualification. Register or qualify all Registrable Securities and
other securities covered by such Registration Statement under the securities or blue sky laws of
such jurisdictions as the applicable Selling Holders (or in an underwritten offering, the managing
underwriter) shall reasonably request, and do any and all other acts and things which may be
necessary or advisable to enable such Selling Holders to consummate the disposition in such
jurisdictions of the Registrable Securities and/or Parity Registrable Securities covered by such
Registration Statement, except that the Company shall not for any such purpose be required to
qualify generally to do business as a foreign corporation in any jurisdiction wherein it is not so
qualified, or to subject itself to taxation in any such jurisdiction, or to consent to general
service of process in any such jurisdiction.

(f) Notification of Certain Events. As promptly as practicable after becoming aware
thereof, notify the applicable Selling Holders of the happening of any event of which the Company
has knowledge, as a result of which the prospectus included in the Registration Statement, as then
in effect, includes an untrue statement of a material fact or omits to state a material fact
required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading, and promptly prepare and file with the
SEC a supplement or amendment to the Registration Statement or other appropriate filing with the
SEC to correct such untrue statement or omission, and deliver a number of copies of such supplement
or amendment to such Selling Holders as such Selling Holders may reasonably request.

(g) SEC Stop Orders. As promptly as practicable after becoming aware thereof, notify
the applicable Selling Holders (and, in the event of an underwritten offering, the managing
underwriters) of the issuance by the SEC of any notice of effectiveness or any stop order or other
suspension of the effectiveness of the Registration Statement at the earliest possible time.

(h) Potential Material Event. As promptly as practicable after becoming aware
thereof, notify the applicable Selling Holders (and, in the event of an underwritten offering, the
managing underwriters) of the existence of a Potential Material Event, in which case, such Selling
Holders shall not offer or sell any Registrable Securities or Parity Registrable Securities, or
engage in any other transaction involving or relating to such Registrable Securities or Parity
Registrable Securities, from the time of the giving of notice with respect to a Potential

 

9

 

Material Event until such Selling Holders receive written notice from the Company that such
Potential Material Event either has been disclosed to the public or no longer constitutes a
Potential Material Event; provided, however, that such Selling Holders may only be required to
cease offering and selling Registrable Securities and/or Parity Registrable Securities pursuant to
this clause (h) for a period of not more than 90 calendar days after receiving notice from the
Company that a Potential Material Event exists; provided, further, however, that the Company may
only exercise its rights under this clause (h) twice in any 12-month period with at least a 60
calendar day interval between such “black-out” periods.

(i) Listing Requirements. Use its reasonable best efforts to list such Registrable
Securities and/or Parity Registrable Securities on each securities exchange on which the Equity
Securities of the Company (including the ADS) are then listed. If the Selling Holders propose to
sell Registrable Securities and/or Parity Registrable Securities in the form of ADS, the Company
shall (subject to the Deposit Agreement) procure delivery of ADS listed on such securities exchange
to the Selling Holders and, to the extent additional ADS are required to be registered on Form F-6
in order to carry out such delivery, register such additional ADS.

(j) Certificate Preparation. Cooperate with the applicable Selling Holders to
facilitate the timely preparation and delivery of certificates for the Registrable Securities
and/or Parity Registrable Securities to be offered pursuant to the Registration Statement and
enable such certificates for the Registrable Securities and/or Registrable Securities to be in such
denominations or amounts as the case may be, as such Selling Holders may reasonably request, and,
within 2 Business Days after a Registration Statement which includes Registrable Securities and/or
Parity Registrable Securities is ordered effective by the SEC, the Company shall deliver, or shall
cause legal counsel selected by the Company to deliver, to the transfer agent for the Registrable
Securities (with copies to such Selling Holders) an appropriate instruction and opinion of such
counsel. If the Selling Holders propose to sell Registrable Securities and/or Parity Registrable
Securities in the form of ADS, the Company shall cooperate with such Selling Holders to facilitate
the timely delivery of the certificates referred to above to the Depositary and shall (subject to
the Deposit Agreement) cause the Depositary to cooperate with such Selling Holders to facilitate
the timely preparation and delivery of the depositary receipts evidencing such ADS in such
denominations or amounts as the case may be, as such Selling Holders may reasonably request.

(k) Underwriting Agreement. In the event of any underwritten public offering, enter
into and perform its obligations under an underwriting agreement, in usual and customary form and
complying with the provisions of Section 2.06, with the managing underwriter of such offering.

(l) Section 11 Information. Make available to the applicable Selling Holders, as soon
as reasonably practicable, an earnings statement covering the period of at least 12 months, but not
more than 18 months, beginning with the first month of the first fiscal quarter after the effective
date of such Registration Statement, which earnings statement shall satisfy the provisions of
Section 11(a) of the Securities Act, including, without limitation, Rule 158 promulgated
thereunder.

 

10

 

(m) Other Actions. Take all other reasonable actions necessary to expedite and
facilitate disposition by the applicable Selling Holders of the Registrable Securities and/or
Parity Registrable Securities pursuant to the Registration Statement.

Section 2.04. Information from Holder. It shall be a condition precedent to the
obligations of the Company to take any action pursuant to Section 2.01 with respect to the
Registrable Securities or Parity Registrable Securities of any Selling Holder that such Selling
Holder shall furnish to the Company such information regarding itself, the Registrable Securities
or Parity Selling Securities held by it, and the intended method of disposition of such securities
as shall be required to effect the registration of such securities.

Section 2.05. Preparation; Reasonable Investigation; Review by Counsel. In
connection with the preparation and filing of each Registration Statement registering Registrable
Securities and/or Parity Registrable Securities under the Securities Act, each Selling Holder, its
underwriters, if any, and counsel for such Selling Holder shall:

(a) be permitted to review such Registration Statement, each prospectus included therein or
filed with the SEC, and each amendment thereof or supplement thereto a reasonable period of time
(but not less than 3 Business Days) prior to their filing with the SEC; and

(b) be given reasonable access to the Company’s books and records and such opportunities to
discuss the business of the Company with its officers, counsel and the independent public
accountants who have certified its financial statements as shall be necessary, in the reasonable
opinion of such Selling Holders, such underwriters, if any, or their respective counsel, to conduct
a reasonable investigation within the meaning of the Securities Act.

Section 2.06. Indemnification. In the event any Registrable Securities and/or Parity
Registrable Securities are included in a Registration Statement under this Article II, the
following indemnification provisions shall apply.

(a) Indemnification by the Company.

(i) Indemnification. To the extent permitted by law, the Company shall indemnify and
hold harmless the Selling Holders, each of the employees, officers, directors, partners, members,
managers, legal counsel and agents of such Selling Holders, any underwriter (as defined in the
Securities Act) for such Selling Holders and each Person, if any, who controls any of such Selling
Holders or underwriter within the meaning of the Securities Act or Exchange Act (collectively, the
“Holder Indemnified Persons”) against and hold each Holder Indemnified Person harmless from
any and all liabilities, obligations, losses, damages, (excluding consequential, special, indirect
or punitive damages), lawsuits, investigations, arbitrations, actions, judgments, costs, expenses
or claims, including, without limitation, reasonable attorneys’ fees and expenses incurred in
investigation or defending any of the foregoing (collectively, “Losses”), that the Holder
Indemnified Persons may suffer or sustain arising out of or due to any of the following (any of the
following being a “Violation”):

 

11

 

(A) any untrue statement or alleged untrue statement of a material fact
contained in such Registration Statement, including any preliminary prospectus or
final prospectus contained therein or any amendments or supplements thereto;

(B) the omission or alleged omission to state therein a material fact required
to be stated therein, or necessary to make the statements therein not misleading; or

(C) any violation or alleged violation by the Company of the Securities Act,
the Exchange Act, any state securities law or any rule or regulation promulgated
under the Securities Act, the Exchange Act or any state securities law, or any
applicable securities laws or Regulations of a jurisdiction outside the United
States.

(ii) Limitations on Indemnification. Notwithstanding the foregoing, the Company shall
not be liable for:

(A) any amounts paid in settlement of any such Losses if such settlement is
effected without the consent of the Company (which consent shall not be unreasonably
withheld or delayed); or

(B) any Losses to the extent that such Losses arise out of or are based upon a
Violation which occurs in reliance upon and in strict conformity with written
information furnished by such Selling Holders expressly for use in connection with
such registration.

(b) Indemnification by the Registrable Securities Holders.

(i) Indemnification. To the extent permitted by law, each Selling Holder
participating in any registration pursuant to this Agreement shall indemnify and hold harmless the
Company, each of the Company’s employees, officers, directors, legal counsel and other agents, any
underwriter (as defined in the Securities Act) for the Company and each Person, if any, who
controls the Company or underwriter within the meaning of the Securities Act or Exchange Act
(collectively, the “Company Indemnified Persons”), against and hold each Company
Indemnified Person harmless from any and all Losses that the Company Indemnified Persons may suffer
or sustain arising out of or due to any Violation, in each case to the extent (and only to the
extent) that such Violation occurs in reliance upon and in strict conformity with written
information furnished by such Selling Holder expressly for use in connection with such
registration.

(ii) Limitations on Indemnification. Notwithstanding the foregoing, no Selling Holder
shall be liable for:

(A) indemnification pursuant to this Agreement in excess of the aggregate net
cash proceeds received by such Selling Holder from the offering of Registrable
Securities in such registration;

 

12

 

(B) any amounts paid in settlement of any such Losses if such settlement is
effected without the consent of such Selling Holder; (which consent shall not be
unreasonably withheld or delayed); or

(C) any Losses to the extent that such Losses do not arise out of or are not
based upon a Violation which occurs in reliance upon and in strict conformity with
written information furnished by such Selling Holder expressly for use in connection
with such registration.

(c) Indemnification Mechanics. If there occurs an event which a Company Indemnified
Person or a Holder Indemnified Person (any such Person being the “Indemnitee”) hereto
asserts is an indemnifiable event pursuant to this Section, the Indemnitee shall promptly notify
the party obligated to provide indemnification hereunder (the “Indemnitor”) in writing of
such event. Delay or failure to so notify the Indemnitor shall only relieve the Indemnitor of its
obligations to the extent, if at all, that it is actually prejudiced by reason of such delay or
failure. The Indemnitor shall have a period of 20 calendar days in which to respond thereto. If
the Indemnitor so elects, within such 20 day period, it shall be entitled to assume the defense of
such claim (such election to be without prejudice to the right of the Indemnitor to dispute whether
such claim constitutes Losses under this Section 2.06). If the Indemnitor fails to assume the
defense of such matter within such 20 calendar day period or does not respond within such 20
calendar day period, the Indemnitee against which such matter has been asserted shall (upon
delivering notice to such effect to the Indemnitor) have the right to undertake, at the
Indemnitor’s cost and expense, the defense, compromise or settlement of such matter on behalf of
the Indemnitee, provided that the Indemnitee shall not settle such claim without the consent of the
Indemnitor (which consent shall not be unreasonably withheld) and provided further that the
Indemnitor shall have the right to participate (but not control) at its own expense in the defense
of such asserted claim. In any event, the Indemnitee shall have the right to participate (but not
control) at its own expense in the defense of such asserted liability; provided, however, that the
Indemnitor shall pay the expenses of such defense if the Indemnitee is advised by counsel in
writing that there are one or more legal defenses available to the Indemnitee that are different
from or additional to those available to the Indemnitor (in which case, if the Indemnitee notifies
the Indemnitor in writing, the Indemnitor shall not have the right to assume the defense of such
asserted liability on behalf of the Indemnitee).

(d) Contribution. If the indemnification provided for in this Section is held by a
court of competent jurisdiction to be unavailable to an Indemnitee with respect to any Losses, then
the Indemnitor, in lieu of indemnifying such Indemnitee hereunder, shall contribute to the amount
paid or payable by such Indemnitee as a result of such Losses in such proportion as is appropriate
to reflect the relative fault of the Indemnitor on the one hand and of the Indemnitee on the other
in connection with the Violation that resulted in such Losses, as well as any other relevant
equitable considerations; provided, however, that in no event shall any contribution under this
Section 2.06(d) from any Selling Holder, together with the amount of any indemnification payments
made by such Selling Holder pursuant to Section 2.06(b) above, exceed the net proceeds from the
offering received by such Selling Holder. The relative fault of the Indemnitor and of the
Indemnitee shall be determined by reference to, among other things, whether the Violation relates
to information supplied by the Indemnitor or the Indemnitee and

 

13

 

the parties relative intent, knowledge, access to information, and opportunity to correct or
prevent such Violation.

(e) No Inconsistent Underwriting Agreements. Notwithstanding any provision of this
Agreement to the contrary, the Selling Holders shall not be required to enter into an underwriting
agreement that contains indemnification and contribution provisions which, in the sole discretion
of such Selling Holders, materially differ from those contained in this Section 2.06.

Section 2.07. Transfer of Registration Rights. The Investors’ rights under this
Article II may be assigned by the Investors (or any assignee permitted hereunder) to a transferee
or assignee of any of the Registrable Securities held by the Investors (or such assignee),
provided that (x) the Company is furnished a written notice of the name and address of such
transferee or assignee and the Registrable Securities with respect to which such registration
rights are being assigned and (y) such transferee or assignee agrees in writing to be bound by and
subject to the terms and conditions of this Agreement and (z) such assignee acquires Registrable
Securities representing at least 1% (calculated on an as converted basis) of the Common Shares
(calculated on an as converted and fully-diluted basis).

Section 2.08. Registration in Non-U.S. Jurisdictions. In the event that the ADS
cease to be listed on the Nasdaq Global Market and have not been listed on another nationally
recognized securities exchange in the United States, but the Company has listed A Common Shares (or
related depositary shares) on any Designated Offshore Securities Market or other internationally
recognized securities exchange, then the Company shall use its reasonable best efforts, to the
extent permitted by applicable law, to provide the Registrable Securities Holders with
substantially the same rights and benefits in such jurisdiction as are provided for in this
Agreement, and to take such steps, if any, consistent with customary market practice at the time so
that the Registrable Securities are freely transferable in such listed market without transfer
restrictions imposed by the securities or similar laws of such jurisdiction.

ARTICLE III

MISCELLANEOUS

Section 3.01. Notices. All notices, requests, demands and other communications to
any Party or given under this Agreement shall be in writing and delivered personally, by overnight
delivery or courier, by registered mail or by telecopier (with confirmation received) to the
Parties at the address or telecopy number specified for such Parties below (or at such other
address or telecopy number as may be specified by a Party in writing given at least five business
days prior thereto). All notices, requests, demands and other communications shall be deemed
delivered when actually received:

 

14

 

(a) If to the Company, at:

Xinhua Sports & Entertainment Limited

Suite 2103-4

Vicwood Plaza

199 Des Voeux Road

Central, Hong Kong

Facsimile: +852.2541.8266

Attention: John McLean

With a copy to:

Latham & Watkins

41St Floor, One Exchange Square

8 Connaught Place, Central

Hong Kong

Fax: +852.2522.7006

Attn: David T. Zhang

(b) If to the Investors, at:

Zohar CDO 2003-1, Limited

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 17th Floor

New York, NY 10013

Attn: Senior Credit Associate

Facsimile: 212-825-2038

with a copy to

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 13th Floor

New York, NY 10013

Attn: Senior Director Legal

Facsimile: 212-483-0709

Zohar II 2005-1, Limited

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 17th Floor

New York, NY 10013

Attn: Senior Credit Associate

Facsimile: 212-825-2038

with a copy to

 

15

 

c/o Patriarch Partners, LLC

32 Avenue of the Americas, 13th Floor

New York, NY 10013

Attn: Senior Director Legal

Facsimile: 212-483-0709

With copy to:

Jones Day

2727 North Harwood Street

Dallas, Texas 75201

Facsimile: (214) 969-5100

Attention: Michael O. Weisberg, Esq.

Section 3.02. Counterparts. This Agreement may be executed simultaneously in one or
more counterparts, and by different Parties in separate counterparts, each of which when executed
shall be deemed an original, but all of which taken together shall constitute one and the same
instrument.

Section 3.03. Modification or Amendment of Agreement. This Agreement may not be
modified or amended except by an instrument in writing signed by all of the Parties.

Section 3.04. Successors and Assigns. This Agreement shall be binding upon and
inures to the benefit of and is enforceable by the respective successors and permitted assigns of
the Parties hereto.

Section 3.05. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the laws of the state of New York.

Section 3.06. Waiver of Jury. THE PARTIES HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT THAT THEY MAY HAVE TO TRIAL BY
JURY OF ANY CLAIM OR CAUSE OF ACTION, OR IN ANY LEGAL PROCEEDING, DIRECTLY OR INDIRECTLY BASED UPON
OR ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT (WHETHER BASED
ON CONTRACT, TORT, OR ANY OTHER THEORY). EACH PARTY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT,
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTIES
WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES
THAT IT AND THE OTHER PARTIES HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

Section 3.07. Integration. This Agreement and the Preferred Shares Purchase
Agreement contain and constitute the entire agreement of the Parties with respect to the subject

 

16

 

matter hereof and supersede all prior negotiations, agreements and understandings, whether
written or oral, of the Parties.

Section 3.08. Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law, or public policy, all other
conditions and provisions of this Agreement shall nevertheless remain in full force and effect so
long as the economic or legal substance of the transactions contemplated hereby is not affected in
any manner adverse to any Party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to
modify this Agreement so as to effect the original intent of the Parties as closely as possible in
an acceptable manner to the end that the transactions contemplated hereby are fulfilled to the
extent possible.

Section 3.09. Ambiguities. This Agreement was negotiated between legal counsel for
the Parties and any ambiguity in this Agreement shall not be construed against the Party who
drafted this Agreement.

Section 3.10. Further Assurances. In order to (a) carry out more effectively the
purposes of this Agreement, (b) enable the Parties to exercise and enforce their rights and
remedies hereunder, promptly upon the reasonable request by any Party, the Company and the
Investors shall (with the expenses paid by the Party responsible as provided in this Agreement)
shall (i) correct any defect or error that may be discovered in this Agreement or in the execution,
delivery, acknowledgment or recordation of this Agreement and (ii) execute, acknowledge, deliver,
record, file and register, any and all such further acts, conveyances, assignments, notices of
assignment, transfers, certificates, assurances and other instruments, in each case, as such
requesting Party may require from time to time.

Section 3.11. No Third-Party Rights. This Agreement is not intended, and shall not
be construed, to create any rights in any Person other than the Parties and any Parity Registrable
Securities Holder and their respective successors and permitted assigns, and no Person may assert
any rights as third-party beneficiary hereunder, except as provided in Section 2.06.

Section 3.12. No Waiver; Remedies. No failure or delay by any Party in exercising
any right, power or privilege under this Agreement shall operate as a waiver of the right, power or
privilege. A single or partial exercise of any right, power or privilege shall not preclude any
other or further exercise of the right, power or privilege or the exercise of any other right,
power or privilege.

Section 3.13. Submission to Jurisdiction. Each Party hereby consents to the
non-exclusive jurisdiction of the courts of the State of New York and the federal courts located in
the borough of Manhattan with respect to any Action brought to enforce any provision of this
Agreement or to determine the rights of any Party hereto.

[SIGNATURE PAGE FOLLOWS]

 

17

 

IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the date
first written above.

	 	 	 	 	 	 	 
	COMPANY:	 	XINHUA SPORTS & ENTERTAINMENT LIMITED
	 
	 	 	 	 	 	 
	 	 	By:	 	/s/ Graham Anton Earnshaw
	 	 	 	 	 
	 

	 	 	 	Name:
	 	Graham Anton Earnshaw
	 

	 	 	 	Title:
	 	Director

Signature Page to Registration Rights Agreement

 

 

 

	 	 	 	 	 	 	 	 	 
	INVESTORS:	 	ZOHAR CDO 2003-1, LIMITED
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Patriarch Partners VIII, LLC,
	 	 	 	 	its Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Lynn Tilton
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Lynn Tilton
	 

	 	 	 	 	 	Title:
	 	Manager
	 
	 	 	 	 	 	 	 	 
	 	 	ZOHAR II 2005-1, LIMITED
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Patriarch Partners XVI, LLC,
	 	 	 	 	its Collateral Manager
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	/s/ Lynn Tilton
	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Lynn Tilton
	 

	 	 	 	 	 	Title:
	 	Manager

Signature Page to Registration Rights Agreement

 

 

 

SCHEDULE 1

LIST OF INVESTORS

	 	 	 	 	 
	Name of Investors	 	Number of Shares to be purchased	 
	ZOHAR CDO 2003-1, LIMITED
	 	 	41,992	 
	ZOHAR II 2005-1, LIMITED
	 	 	36,303Exhibit 10.1

Exhibit 10.1

Office Lease Agreement

between

Briargrove Place, L.L.C.,

a Texas limited liability company,

as Landlord,

and

Cambium Learning, Inc., 

a Delaware corporation,

as Tenant,

dated

July 9, 2010

 

 

 

Table of Contents

	 	 	 	 	 
	Article I. Basic Information
	 	 	1	 
	Article II. Premises and Common Areas
	 	 	2	 
	Section 2.01 Lease of Premises
	 	 	2	 
	Section 2.02 License of Common Areas
	 	 	2	 
	Section 2.03 Parking
	 	 	3	 
	Section 2.04 Condition of Premises and Project
	 	 	3	 
	Section 2.05 Fitness Center
	 	 	3	 
	Article III. Term
	 	 	4	 
	Section 3.01 Term
	 	 	4	 
	Section 3.02 Early Termination Option
	 	 	4	 
	Section 3.03 Extension Options
	 	 	4	 
	Article IV. Rent
	 	 	4	 
	Section 4.01 Basic Rent
	 	 	4	 
	Section 4.02 Additional Rent
	 	 	5	 
	Section 4.03 Components of Additional Rent
	 	 	6	 
	Section 4.04 Gross Up
	 	 	7	 
	Section 4.05 Tenant Audit
	 	 	7	 
	Section 4.06 Additional Rent Disputes
	 	 	8	 
	Section 4.07 Rent Defined
	 	 	9	 
	Article V. Use and Compliance with Laws
	 	 	9	 
	Section 5.01 Use
	 	 	9	 
	Section 5.02 Prohibited Uses
	 	 	9	 
	Section 5.03 Compliance with Laws
	 	 	9	 
	Section 5.04 Hazardous and Toxic Materials
	 	 	10	 
	Section 5.05 Rules And Regulations
	 	 	10	 
	Section 5.06 Real Estate Tax Protest
	 	 	11	 
	Section 5.07 Services
	 	 	11	 
	Section 5.08 Keys and Locks
	 	 	13	 
	Section 5.09 Additional Services
	 	 	13	 
	Section 5.10 Utilities
	 	 	13	 
	Section 5.11 Signage
	 	 	13	 
	Article VI. Maintenance and Repairs
	 	 	14	 
	Section 6.01 Landlord’s Obligations
	 	 	14	 
	Section 6.02 Tenant’s Obligation
	 	 	14	 
	Article VII. Installations and Alterations
	 	 	15	 
	Section 7.01 Construction of Initial Finish Out Work
	 	 	15	 
	Section 7.02 Alterations to Premises
	 	 	15	 
	Section 7.03 Liens
	 	 	16	 
	Section 7.04 Telecommunication Equipment
	 	 	16	 
	Section 7.05 Installation of Supplemental Systems
	 	 	16	 
	Section 7.06 Satellite Dish
	 	 	17	 
	Article VIII. Casualty
	 	 	17	 
	Section 8.01 Right to Terminate Lease
	 	 	17	 
	Section 8.02 Restoration
	 	 	17	 

Table of Contents, Page I

 

 

 

	 	 	 	 	 
	Article IX. Condemnation
	 	 	18	 
	Section 9.01 Termination of Lease
	 	 	18	 
	Section 9.02 Tenant’s Rights
	 	 	18	 
	Section 9.03 Effect of Taking
	 	 	18	 
	Section 9.04 Award
	 	 	18	 
	Section 9.05 Temporary Taking
	 	 	18	 
	Article X. Insurance, Waivers, and Indemnity
	 	 	19	 
	Section 10.01 Tenant’s Insurance
	 	 	19	 
	Section 10.02 Landlord’s Insurance
	 	 	19	 
	Section 10.03 Waiver Of Claims — Casualty
	 	 	19	 
	Section 10.04 Waiver of Claims — Other Matters
	 	 	19	 
	Section 10.05 Indemnity
	 	 	20	 
	Article XI. Assignment and Subletting
	 	 	20	 
	Section 11.01 Restrictions on Transfer
	 	 	20	 
	Section 11.02 Certain Permitted Transfers
	 	 	21	 
	Section 11.03 Transfer Requests
	 	 	21	 
	Section 11.04 Landlord’s Rights Regarding Subtenant
	 	 	21	 
	Section 11.05 Additional Terms
	 	 	22	 
	Section 11.06 Transfers by Landlord
	 	 	22	 
	Article XII. Landlord Financing
	 	 	22	 
	Section 12.01 Subordination
	 	 	22	 
	Section 12.02 Estoppel
	 	 	22	 
	Article XIII. Defaults and Remedies
	 	 	23	 
	Section 13.01 Defaults By Tenant
	 	 	23	 
	Section 13.02 Remedies of Landlord
	 	 	24	 
	Section 13.03 Recovery by Landlord
	 	 	24	 
	Section 13.04 Survival of Obligations
	 	 	25	 
	Section 13.05 Cumulative Remedies
	 	 	25	 
	Section 13.06 Waiver of Landlord’s Lien
	 	 	25	 
	Section 13.07 Security Deposit
	 	 	25	 
	Section 13.08 Failure to Pay
	 	 	26	 
	Section 13.09 Default By Landlord
	 	 	26	 
	Article XIV. End of Term Obligations
	 	 	27	 
	Section 14.01 Holding Over
	 	 	27	 
	Section 14.02 Removal of Property
	 	 	28	 
	Article XV. Other Lease Provisions
	 	 	28	 
	Section 15.01 Rights Reserved by Landlord
	 	 	28	 
	Section 15.02 Representations, Warranties, and Covenants of Tenant
	 	 	29	 
	Section 15.03 Commissions
	 	 	29	 
	Section 15.04 Memorandum of Lease
	 	 	29	 

Table of Contents, Page II

 

 

 

	 	 	 
	Exhibits
	 
	Annex I
	 	Common Provisions and Definitions

	Exhibit A.
	 	Premises

	Exhibit B.
	 	Project

	Exhibit C.
	 	Rules and Regulations

	Exhibit D.
	 	Insurance Requirements

	Exhibit E.
	 	Acceptance of Premises Memorandum

	Exhibit F.
	 	Construction Agreement

	Exhibit G.
	 	Option to Extend

	Exhibit H.
	 	Parking Agreement

	Exhibit I.
	 	Signage Criteria

	Exhibit J.
	 	Cleaning Specifications

	Exhibit K.
	 	Form of Confidentiality Agreement

Table of Contents, Page III

 

 

 

OFFICE LEASE AGREEMENT

This Office Lease Agreement (this “Lease”), dated July 9, 2010 (the “Effective Date”), is
entered into by Briargrove Place, L.L.C., a Texas limited liability company (“Landlord”)
and Cambium Learning, Inc., a Delaware corporation (“Tenant”).

The parties agree as follows:

Article I. Basic Information

	 	 	 
	Term	 	Definition
	 
	A. “Landlord”

	 	Briargrove Place, L.L.C., a Texas limited liability company
	 
	 	 
	B. “Landlord’s Address”

	 	Briargrove Place, L.L.C.
	 

	 	14651 Dallas Parkway
	 

	 	Suite 150
	 

	 	Dallas, TX, 75254
	 
	 	 
	C. “Tenant”

	 	Cambium Learning, Inc., a Delaware corporation
	 
	 	 
	D. “Tenant’s Address”

	 	Before the Rent Commencement Date:
	 

	 	Cambium Learning, Inc.
	 

	 	1800 Valley View Lane, Ste. 400
	 

	 	Dallas, TX 75234
	 
	 	 
	 

	 	From and after the Rent Commencement Date:
	 

	 	The Premises.
	 
	 	 
	 

	 	With a copy to:
	 
	 	 
	 

	 	The Premises
	 

	 	Attention: General Counsel
	 
	 	 
	E. “Premises”

	 	Suite 400, containing 32,756 rentable square
feet, and identified on Exhibit A.
	 
	 	 
	F. “Building”

	 	The building in which the Premises is located.
	 
	 	 
	G. “Project”

	 	The Building and other improvements located
on the land described on Exhibit B, including
the Parking Areas, Common Areas, and Project
Facilities. The Project is located at 17855
Dallas Parkway, Dallas, Texas 75287. On the
Effective Date, the Project contains 127,082
rentable square feet.
	 
	 	 
	H. “Rent Commencement Date”

	 	November 1, 2010
	 
	 	 
	I. “Expiration Date”

	 	December 31, 2018 (subject to extension for
the Extension Terms, as set forth in Exhibit G)
	 
	 	 
	J. “Extension Terms”

	 	Two periods of sixty months each.

Office Lease Agreement, Page 1

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	K. “Basic Rent”	 	Period	 	 	Annual	 	 	Monthly	 	 	S.F~/Yr	 
	 
	 
	 	Month 1 to	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	month 14	 	$	0	 	 	$	0.00	 	 	$	0.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Month 15 to	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	month 62	 	$	655,120	 	 	$	54,593.33	 	 	$	20.00	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Month 63 to	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	month 74	 	$	663,309	 	 	$	55,275.75	 	 	$	20.25	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Month 75 to	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	month 86	 	$	679,687	 	 	$	56,640.58	 	 	$	20.75	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	Month 87 to	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	month 98	 	$	687,876	 	 	$	57,323.00	 	 	$	21.00	 

	 	 	 	 	 
	L. “Initial Proportionate Share”

	 	25.76%	 	 
	 
	 	 	 	 
	M. “Base Year”

	 	2011	 	 
	 
	 	 	 	 
	N. “Security Deposit Amount”

	 	$54,593.33	 	 
	 
	 	 	 	 
	O. “Expense Cap Rate”

	 	7%	 	 
	 
	 	 	 	 
	P. “Permitted Use”

	 	General office and administrative use, and
for no other purpose.

	 
	 	 	 	 
	Q. “Broker”

	 	Crown Sterling (Tom Dyer & Brian Griggs)

	 
	 	 	 	 
	R. “Cooperating Broker”

	 	Grubb & Ellis Company (Daniel Rudd)

The parties intend that this Lease and the other Operative Documents share certain consistent
terms and definitions. Those shared terms and definitions are set forth in Annex I
attached to this Lease. Annex I governs both this Lease and the Operative Documents that
incorporate it by reference.

Article II. Premises and Common Areas

Section 2.01 Lease of Premises. Landlord leases the Premises to Tenant and Tenant leases
the Premises from Landlord for the Term, on and subject to the covenants, terms, and conditions of
this Lease.

Section 2.02 License of Common Areas. Landlord grants a nonexclusive license to Tenant to
use and to permit each Tenant Party to use the Common Areas during the Term for their intended
purposes, in common with others, subject to the covenants, terms, and conditions of this Lease.
“Common Areas” means all areas of and facilities in the Project that Landlord makes available for
the common and nonexclusive use of Tenant and others designated by Landlord, and may include
walkways, sidewalks, driveways, lobbies, Fitness Center, landscaped areas, public corridors, public
restrooms, stairs, elevators, parking areas, and parking garages. Landlord retains the exclusive
right to manage and control the Common Areas.

Office Lease Agreement, Page 2

 

 

 

Section 2.03  Parking. Certain obligations of the parties regarding parking are set forth in Exhibit H.

Section 2.04 Condition of Premises and Project. Landlord represents and warrants to Tenant
that to the actual knowledge of Mauricio Garza (an owner of the Project), and Almira Tinkel (the
property manager of the Project), Brian Griggs, and Tom Dyer, the Common Areas, Limited Common
Areas, and Building Systems (to the extent affecting Tenant’s use and enjoyment of the Premises),
comply with Applicable Law (including Disability Law) in all material respects, other than
non-compliance that will not have a material adverse affect on Tenant’s use and enjoyment of the
Premises. “Building Systems” means the mechanical, heating and air conditioning, plumbing, fire
sprinkler, elevators, sewer, and electrical systems that are located on the Land or in the Building
and are part of the Project. Subject only to the foregoing representations by Landlord, other
representations of Landlord expressly set forth in this Lease, Landlord’s ongoing repair and
maintenance obligations expressly set forth in this Lease, and the completion of any Landlord Work
(defined in Section 2(a) of Exhibit F), Tenant (a) accepts the Premises in its current
as-is condition, (b) waives all Claims and Losses against the Landlord Parties that might arise
out of the suitability, quality of construction or workmanship, or fitness for a particular purpose
of the Premises or Project, and (c) waives the implied warranty that the Premises is suitable for a
particular purpose. Landlord warrants that Tenant will quietly possess the Premises for the Term,
subject to the covenants, terms, and conditions of this Lease, unless Tenant is in default under
this Lease. Except as expressly set forth in this Lease, no Landlord Party has made and Landlord
disclaims any representations or warranties about the Project and Premises, and Tenant has executed
this Lease without relying on any statement, representation, or warranty made by a Landlord Party,
broker, or other Person.

Section 2.05 Fitness Center. Prior to December 31, 2010, Landlord will complete
construction of a fitness center on either the ground floor or the third floor of the Building (the
“Fitness Center”), which will include a variety of cardio and weight lifting equipment, and install
a shower and lockers and designate a changing area in each of the men’s and women’s restrooms
located on the same floor of the Building on which the Fitness Center is located. When
construction of the Fitness Center is complete, the Fitness Center will be part of the Common Area.
Landlord will maintain the Fitness Center in good operating condition during the Term. Landlord
may relocate the Fitness Center to another location in the Building at any time, but the relocated
Fitness Center will be at least the same size (in square feet) as the existing Fitness Center,
Landlord will not close the existing Fitness Center for more than seven days before opening the
relocated Fitness Center, and if the Fitness Center is moved to another floor of the Building,
Landlord will install a shower and lockers and designate a changing area in each of the men’s and
women’s restrooms on the floor on which the Fitness Center is relocated. Landlord grants to Tenant
a non-exclusive right to permit its employees who are working at the Premises (an “Eligible
Employee”) to use the Fitness Center during Project Hours, in common with Landlord and other
tenants in the Project. As a condition to each Eligible Employee’s right to use the Fitness
Center, such Eligible Employee must sign Landlord’s then-current form of “Fitness Room Waiver,”
waiving rights against each Landlord Party in connection with loss of or damage to property, theft,
or bodily injury or death in connection with the use of the Fitness Center or showers, even if
caused by the negligence or alleged negligence (but not the gross negligence or intentional
misconduct) of a Landlord Party.

Office Lease Agreement, Page 3

 

 

 

Article III. Term

Section 3.01 Term. “Term” means the period beginning on the Effective Date and ending on
the Expiration Date or the last day of the applicable Extension Term, if this Lease is extended in
accordance with Exhibit G (or if this Lease terminates on another date in accordance with
the terms of this Lease or Applicable Law, such other date). References in this Lease to the
termination of this Lease include both expiration of the Term and termination of this Lease before
the Term expires.

Section 3.02 Early Termination Option. Landlord grants to Tenant the option (the
“Termination Option”) to terminate this Lease on the last day of the 74 calendar month after the
Rent Commencement Date (the “Termination Date”), which option, if exercised by Tenant, will be
effective if and only if the following conditions are satisfied: (a) Tenant delivers notice of its
exercise of the Termination Option to Landlord (the “Termination Notice”) not less than 365 days
before the Termination Date (the date of the Termination Notice is referred to as the “Termination
Notice Date”), (b) Tenant pays the Termination Amount to Landlord on the Termination Notice Date,
(c) Landlord does not either terminate this Lease or terminate Tenant’s right to possession of the
Premises on or after the Termination Notice Date on account of an uncured Event of Default, and (d)
on the Termination Date, Tenant pays to Landlord the amount necessary to cure any then-uncured
monetary Event of Default. The Termination Notice will be irrevocable once given. Tenant will
continue to perform its obligations under the Lease through the Termination Date. Furthermore,
Landlord will retain its rights and remedies arising out of any Tenant default or Event of Default
that is uncured on the Termination Date. “Termination Amount” means $571,930.24.

Section 3.03 Extension Options. Tenant’s options to extend the term of this Lease for the
Extension Terms are set forth in Exhibit G.

Article IV. Rent

Section 4.01 Basic Rent. Tenant promises to pay Basic Rent to Landlord during the Term, in
installments, monthly in advance, beginning on the earlier of (a) the Rent Commencement Date and
(b) if before the Rent Commencement Date, Tenant conducts business in the Premises, such earlier
date. Early entry into the Premises to install furniture, fixtures, telephony and computer
equipment, cabling, and similar items will not be considered the conduct of business. Tenant may
install such items at any time as part of the Work (defined in Exhibit F).

Office Lease Agreement, Page 4

 

 

 

Section 4.02  Additional Rent. In addition to Basic Rent, Tenant promises to pay Additional Rent to
Landlord during the Term, as follows. “Additional Rent”, for a particular year (which is deemed
for this Section to include the partial first or last year of the Term, if such first or last year
is not a full year), means (a) Tenant’s Proportionate Share (but not less than zero) of the excess
of Operating Costs for such year over Operating Costs in the Base Year, (b) Tenant’s Proportionate
Share (but not less than zero) of the excess of Real Estate Taxes for such year over Real Estate
Taxes in the Base Year, (c) Tenant’s Proportionate Share of the Additional Pass Through Costs for
such year, and (d) Tenant’s Proportionate Share of Electrical Costs for such year. Beginning on
the Rent Commencement Date, and continuing on the first day of each calendar month thereafter,
Tenant will pay Estimated Additional Rent to Landlord. “Estimated Additional Rent” means monthly
installments of Additional Rent in amounts estimated by Landlord. (Because the Base Year is 2011,
the Operating Costs and Real Estate Taxes component of Estimated Additional Rent (and Additional
Rent itself) will be -$0- through December 31, 2011.) If Landlord increases Estimated Additional
Rent during a year, Tenant will promptly pay to Landlord the amount of the increase multiplied by
the number of Estimated Additional Rent payments that Tenant has already paid to Landlord in such
year. After each year, Landlord will deliver a statement to Tenant showing both the Estimated
Additional Rent paid by Tenant and the amount of Additional Rent owing by Tenant for such year,
detailing expenses by category (a “Statement”). Landlord will provide the Statement to Tenant
within 150 days after the end of each year (the “Statement Due Date”). Tenant will pay any
underpayment of Additional Rent to Landlord upon receipt of a Statement or invoice from Landlord
(payable in three equal installments in each of the three months following Tenant’s receipt of the
Statement if the underpayment exceeds 10% of the aggregate Additional Rent paid by Tenant in the
period covered by the Statement), and Landlord will either refund any overpayment of Additional
Rent to Tenant or credit future Additional Rent by the amount of any overpayment. “Tenant’s
Proportionate Share” means a fraction, the numerator of which is the rentable area of the Premises
and the denominator of which is the rentable area of the Project. With respect to any item, good,
or service, Landlord may exclude from the denominator the rentable area of any tenant that is
paying Landlord or the provider directly for such item, good, or service. Initially, Tenant’s
Proportionate Share is the Initial Proportionate Share. Landlord (or any successor to Landlord)
may not require Tenant to pay for any item, good, or service that Landlord does not include in a
Statement (or supplement to a Statement) for more than (x) 120 days following the final resolution
of any dispute or litigation, arbitration, mediation, or other proceeding concerning the validity
or amount of Real Estate Taxes and (y) 18 months following the first Statement Due Date after
Landlord pays for any other item, good, or service (i.e., other than Real Estate Taxes).
Furthermore, Landlord fails to provide a Statement to Tenant on or before the Statement Due Date,
then any overpayment by Tenant of Additional Rent will accrue interest at the Default Rate from the
Statement Due Date until the Date such amount is paid by Landlord to Tenant (to be paid by Landlord
to Tenant in the same manner that such overpayment of Additional Rent is paid).

Office Lease Agreement, Page 5

 

 

 

Section 4.03  Components of Additional Rent. The following terms have the following meanings:

(a) Operating Costs. “Operating Costs” means all costs that Landlord incurs or pays
in connection with or arising out of the ownership, operation, or management of the Project
or any part of the Project, including Parking Areas, Common Areas, and Project Facilities.
“Project Facilities” means (a) machinery, equipment, and associated pipes, ducts, vents,
wiring, cabling, and structures used to deliver utilities and services to the Project,
including heating and air conditioning, electrical, mechanical, plumbing, fire sprinkler,
landscape sprinkler, and elevator systems, (b) machinery, and equipment used in connection
with the operation, maintenance, and repair of the Project, (c) restricted areas in which
the foregoing are located, (d) roofs and roof systems, (e) common signs, (f) janitor
closets, (g) Common Area lighting, (f) vertical and horizontal shafts, risers, ducts, and
flues, and (g) areas below floors, above acoustical ceilings, and within walls. Such costs
include (i) management, cleaning, repairing, maintaining, resurfacing, restriping,
replacing, insuring, decorating, testing, inspecting, utility, janitorial, trash removal,
and exterminator costs, (ii) costs to purchase, install (if applicable), service maintain,
and replace tools, equipment, vehicles, supplies, landscaping, and alarm systems, (iii)
license, permit, and inspection fees, (iv) management fees (not to exceed four percent of
gross Project revenue) and overhead reimbursement, (v) salaries, wages, and benefits to
employees at or below the level of Property Manager, and who are directly involved in the
operation of the Building, including taxes and insurance, (vi) costs of accounting, legal,
auditor, and other professional and consulting services, (vii) payments and assessments
pursuant to covenants, easements, declarations, or similar instruments, (viii) operating
reserves, and (ix) property, liability, boiler, business interruption, and other insurance
premiums, endorsements, and deductibles. Operating Costs will not include capital
improvements other than those incurred in connection with modifications or additions to the
Project or the acquisition of equipment that (x) is required due to changes in Applicable
Law (or its interpretation) after the Effective Date or (y) is designed or acquired
primarily to reduce other Operating Costs (collectively, “Permitted Capital Costs”).
Operating Costs will not include late fees, fines, penalties, or interest incurred by
Landlord for failure to timely pay any amount constituting Operating Expenses. Landlord
will use accounting principles and methods that are consistent from year to year to
calculate Operating Costs. In determining Additional Rent, beginning in the year after the
Base Year, Capped Operating Costs for each year will be deemed not to have increased by more
than the Expense Cap Rate (seven percent) over Capped Operating Costs for the immediately
prior year. For example, if Capped Operating Costs for the Base Year were $100,000, the
maximum amount of Capped Operating Costs that Landlord could charge in the second year after
the Base Year to determine Additional Rent would be $107,000 ($100,000 increased by seven
percent). If the Capped Operating Costs for the second year ended up being $105,000, the
maximum amount of Capped Operating Costs that Landlord could charge in the third year to
determine Additional Rent would be $112,350. “Capped Operating Costs” means Operating Costs
other than costs of or arising out of security measures employed by Landlord, utilities,
insurance premiums and deductibles, taxes, costs to comply with Applicable Law.

(b) Real Estate Taxes. “Real Estate Taxes” means (i) all real estate and other
taxes, general and special assessments, parking surcharges, and charges for governmental
services (such as street maintenance or fire protection) levied on all or part of the
Project, (ii) all franchise, excise, rent, use, sales, transaction, privilege, or other
taxes or levies, however denominated, whether imposed upon or measured by rent or imposed on
Landlord’s business of leasing the Premises, including margin taxes, (iii) taxes,
surcharges, and assessments levied as a supplement to or in lieu of other Real Estate Taxes,
and (iv) actual out-of-pocket costs of contesting the validity or amount of any taxes,
including consultants; but will not include late fees, fines, penalties, or interest
incurred by Landlord for failure to timely pay any of the foregoing. If Real Estate Taxes
are not assessed separately for the Project, but rather are assessed as part of a larger
parcel owned by Landlord, Landlord will apportion Real Estate Taxes to the Project based on
the assessed value of the Project as a percentage of the assessed value of the entire tax
parcel.

Office Lease Agreement, Page 6

 

 

 

(c) Additional Pass Through Costs. “Additional Pass Through Costs” means Permitted
Capital Costs, amortized over such periods as Landlord reasonably determines in accordance
with accounting principles and methods that are consistent from year to year, plus interest
at the rate of 7% per annum on the unamortized balance of such costs; provided that the
annual amortized costs of equipment designed or acquired primarily to reduce other Operating
Costs may not exceed the actual cost savings realized.

(d) Electrical Costs. “Electrical Costs” means the cost of all electricity used by
the Project, excluding costs paid by other tenants of the Project directly to Landlord or
the electric utility provider.

Section 4.04 Gross Up During any year (including the Base Year) in which 100% of rentable
area of the Building is not provided with full Building Services or is not 100% occupied, in
determining Operating Costs, Landlord will compute all Variable Operating Costs for such year as
though 100% of the rentable area of the Building were provided with full Building Standard Services
and was 100% occupied. “Variable Operating Costs” means any Operating Cost (or portion thereof)
that increases or decreases with the level of occupancy of the Building. If Landlord excludes from
Operating Costs any specific costs billed to or otherwise incurred for the particular benefit of
specific tenants (the cost of which if performed by Landlord would be an Operating Cost, as defined
herein), Landlord may increase Operating Costs by an amount equal to the cost of providing standard
services similar to the services for which such excluded specific costs were billed or incurred.

Section 4.05 Tenant Audit

(a) Election to Audit. Tenant may elect to audit Landlord’s records to verify the
accuracy of a Statement (a “Subject Statement”) by delivering notice to Landlord within 365
days after receipt of the Subject Statement (an “Audit Notice”).

(b) Conditions to Audit. Tenant may only audit a Subject Statement if the following
conditions are satisfied: (i) Tenant timely delivers an Audit Notice to Landlord, (ii) the
audit is conducted by an owner, officer, or employee of Tenant or a Qualified Auditor, (iii)
Tenant executes Landlord’s form of confidentiality agreement attached hereto as Exhibit
K, related to the Records (a “Confidentiality Agreement”), (iv) if a Qualified Auditor
conducts the audit, the Qualified Auditor also executes a Confidentiality Agreement, and (v)
at the time that Tenant delivers the Audit Notice and at the time of the audit, no Event of
Default has occurred and is then continuing. “Qualified Auditor” means a nationally,
locally, or regionally recognized certified public accounting firm that is not compensated
on a contingent fee basis and that confirms in writing to Landlord that it will not
represent any other tenant in the Project regarding an audit or review of Project costs for
three years after the date of the audit.

(c) Audit Process Landlord will provide access to the Records at Landlord’s or its
property manager’s office located in the Dallas/Fort Worth area to Tenant and, if
applicable, the Qualified Auditor, during Landlord’s business hours at the place that
Landlord maintains the Records. “Records” means Landlord’s books and records related to the
Subject Statement and necessary to verify the accuracy of the Subject Statement. If an
audit of a Subject Statement reveals a material error (defined as more than a 10% variance)
by Landlord for a particular line item of Operating Costs that was not discovered by Tenant
in a previous audit, Tenant may audit the same line item for the prior two years. When
conducting the audit, Tenant will (or will cause the Qualified Auditor to) (x) use the same
accounting standards, elections, expense treatments, and methods of calculation,
depreciation, and amortization used by Landlord, in accordance with accounting principles
and methods that are consistent from year to year, (y) not copy or remove Records from the
office where they are located, and (z) provide Landlord with a copy of each audit and report
concurrent with the delivery of a Statement Objection Notice.

Office Lease Agreement, Page 7

 

 

 

(d) Objection to Subject Statement. Within 30 days after Landlord provides Tenant or
the Qualified Auditor with access to the Records, Tenant may deliver notice to Landlord
stating in reasonable detail any objection to the Subject Statement (a “Statement Objection
Notice”). If Tenant fails to timely deliver a Statement Objection Notice to Landlord,
Tenant will be deemed to have approved the Subject Statement. To the extent that Landlord
agrees with the Statement Objection Notice, Landlord will credit the amount of any
overpayment against Additional Rent.

(e) Disputes; Arbitration. If Landlord disagrees with a Statement Objection Notice,
the parties will work in good faith to resolve their differences. If the parties have not
resolved their differences within 30 days after the date of the Statement Objection Notice,
then either party may notify the other that it elects to arbitrate. If a party elects to
arbitrate, the parties will appoint a nationally recognized public accounting firm that does
not and has not represented either party within the preceding five years (the “Qualified
Audit Arbitrator”). The Qualified Audit Arbitrator will sign a Confidentiality Agreement,
then will review the Records and decide the disputes pursuant to the procedures in
subsection (c). The Qualified Audit Arbitrator will provide a reasoned written decision to
the parties within 30 days after the date of its appointment. The party that is not the
prevailing party will pay all costs of the Qualified Audit Arbitrator. “Prevailing party”
means the party, if any, that the Qualified Audit Arbitrator determines is “clearly the
prevailing party.” If there is no prevailing party, each party will pay one-half of the
cost of the Qualified Audit Arbitrator. The decision of the Qualified Audit Arbitrator will
be final and binding on the parties.

(f) Reimbursement of Cost of Tenant’s Audit. If the aggregate amount of Additional
Rent that Landlord charged Tenant for the period covered by the Subject Statement exceeded
the amount owed by Tenant by more than 5%, then Landlord will pay the reasonable cost of
Tenant’s audit (not to exceed $1,000) within 30 days after Landlord’s receipt of an invoice
and copy of all audit reports.

Section 4.06 Additional Rent Disputes. During the existence of a dispute regarding either
Landlord’s calculation of Additional Rent or whether a particular cost is properly included in
Additional Rent, Tenant will timely pay the amount of Additional Rent that is in dispute and will
continue to make all subsequent payments of Additional Rent as and when required under this Lease.
Tenant’s position, however, will not be prejudiced by the payment of such disputed amounts.

Office Lease Agreement, Page 8

 

 

 

Section 4.07  Rent Defined. “Rent” means Basic Rent, Additional Rent, and charges, premiums, fees,
interest, costs, and all other amounts (whether or not designated “rent”) that Tenant is required
to pay to Landlord, whether as reimbursement for costs incurred by Landlord, on account of Tenant’s
failure to perform an obligation or pay an amount owing under this Lease, or otherwise. Tenant
will pay all Rent to Landlord when due, without demand, deduction, or setoff, at Landlord’s Address
or such other address as Landlord may designate. All Rent is due on the date or within the time
period required by this Lease for such Rent or, if no date or time period is stated for an item or
type of Rent, then within ten days after notice or demand by Landlord.

Article V. Use and Compliance with Laws

Section 5.01 Use. Tenant will use the Premises only for the Permitted Use, and for no
other purpose.

Section 5.02 Prohibited Uses. Tenant will not use, occupy, or permit the use or occupancy
of the Premises for any purpose (and the Permitted Use will not include any use) that violates
Applicable Law, may be dangerous to persons or property, is a public or private nuisance, causes
waste, or disturbs the quiet enjoyment of a tenant or occupant of the Project. Tenant will not use
communication equipment (other than wireless network devices) in the Premises or in the Building
serving the Premises that causes radio frequency, electromagnetic, or other interference with any
equipment of other tenants or occupants of the Project; solicit or permit other tenants or
occupants of the Building to use wireless internet or other communication network that is
transmitted through or emanates from the Premises; keep substances that might emit offensive odors
from the Premises; use any equipment that makes undue noise or regular vibrations in the Project;
do anything that might materially increase the property insurance premiums for the Project; sell
food or beverages to a Tenant Party or other parties in the Premises (but the following are
permitted: (x) serving meals to Tenant Parties (including business guests) as part of Tenant’s
business and (y) sale of food and beverages through vending machines in employee lunch or rest
areas within the Premises for use by Tenant’s employees and guests); use the name of the Project
for any purpose other than as the address of the business to be conducted by Tenant (and Tenant
will not acquire any rights in or to such name); or permit any of the foregoing to be done by any
Tenant Party. Tenant will keep the Premises neat and clean.

Section 5.03 Compliance with Laws. Throughout the Term, Landlord will (a) cause the Common
Areas and Limited Common Areas to comply with Applicable Law in all material respects, (b) without
limiting the foregoing, cause the restrooms that are part of the Limited Common Areas to comply
with Disability Law, and (c) procure and maintain all licenses, certificates, and permits relating
to the Project that Landlord is required by Applicable Law to procure and maintain; but Tenant’s
rights for Landlord’s violation of the obligations in this sentence are limited to the following:
If the Project does not comply with an Applicable Law or Landlord is not in compliance with its
obligation to procure and maintain licenses, permits, or certificates relating to the Project, and
if such noncompliance has a material adverse effect on the rights granted to Tenant under this
Lease, then Landlord will correct the condition of the Project causing such noncompliance or obtain
such licenses, certificates, and permits, as applicable. Tenant will cause the Premises to comply
with and will use and maintain the Premises in compliance with Applicable Law. Tenant will correct
all violations of Applicable Law relating to the Premises. Tenant will procure and maintain all
licenses, certificates, and permits required by Applicable Law for Tenant’s occupancy and use of
the Premises and the conduct of Tenant’s business, including a certificate of occupancy. Tenant
will comply with all orders and requests of Governmental Authorities that impose a duty on Tenant
or Landlord with respect to the condition, occupancy, or use of the Premises. Tenant will pay
before delinquency all taxes and assessments levied against Tenant’s personal property and
fixtures.

Office Lease Agreement, Page 9

 

 

 

Section 5.04  Hazardous and Toxic Materials. Landlord represents to Tenant that to Landlord’s knowledge,
based upon environmental site assessments obtained by Landlord in connection with its acquisition
of the Project and the current actual knowledge of Mauricio Garza (an owner of the Project) and
Almira Tinkel (the property manager of the Project), the Project complies with Environmental Law in
all material respects. Throughout the Term, Landlord will take remedial action necessary to cause
the Project to comply in all material respects with Environmental Laws and, if the Project is in
violation of any Environmental Law, Landlord will correct such violation, at Landlord’s sole cost;
but in each case, only as and to the extent required by Governmental Authorities. Tenant will not
cause or permit (a) the storage or use of hazardous or toxic materials, chemicals, waste, or
substances (“Hazardous Materials”) in, on, or under the Premises or Project, (b) the incorporation
of Hazardous Materials into the Premises, (c) the release, deposit, spilling, leaking, pumping,
pouring, emitting, emptying, discharging, injecting, escaping, dumping, or disposing of Hazardous
Materials in, on, or under the Premises or Project (a “Release”), or (d) any other event or
activity that might subject Landlord or the Project to remedial obligations under Environmental
Law, assuming disclosure to Governmental Authorities of all relevant facts, conditions, and
circumstances pertaining to the Premises, the Project, and Tenant. Tenant may, however, use small
quantities, properly labeled and contained, of cleaning and office supplies (even if classified as
Hazardous Materials) in the ordinary course of Tenant’s business, if (x) Tenant uses, transports,
stores, handles, and disposes of such supplies strictly in accordance with accepted industry
standards and practices and Environmental Law and (y) Tenant provides Landlord with a copy of the
current material safety data sheet for such supplies. If Tenant fails to comply with this Section
5.04 or if a Release occurs, then at Landlord’s option, Landlord will either correct such violation
or instruct Tenant to correct such violation. If Landlord corrects such violation, Tenant will pay
to Landlord all costs incurred by Landlord in correcting such violation. If Landlord directs
Tenant to correct such violation, Tenant will not begin corrective action until Landlord has
approved all plans, consultants, and cleanup standards; Tenant will provide Landlord on a timely
basis copies of all documents, reports, and communications with Governmental Authorities and notice
and an opportunity to attend all meetings with regulatory authorities; Tenant will cooperate with
all Governmental Authorities seeking access to the Premises for purposes of sampling or inspection;
Tenant will perform all work required by this Section 5.04 in strict compliance with Applicable Law
and then prevalent industry practice and standards; and Tenant will promptly repair all damage to
the Premises or Project caused by such work. Tenant’s obligations under this Section 5.04 will
survive the termination of this Lease.

Section 5.05 Rules And Regulations. Tenant will comply and will cause all Tenant Parties
to comply with all present and future rules and regulations that Landlord reasonably adopts for the
safety, care, operation, and cleanliness of the Project. The present form of the rules and
regulations is attached to this Lease as Exhibit C. Landlord will not be liable to Tenant
for the failure of any other tenant or Person to comply with the Project rules and regulations.
Landlord will enforce the rules and regulations against all tenants of the Project in a uniform and
non-discriminatory manner.

Office Lease Agreement, Page 10

 

 

 

Section 5.06  Real Estate Tax Protest. Tenant waives its right to protest property taxes, including any
rights that Section 41.413 of the Texas Property Tax Code may give to Tenant. Landlord anticipates
that it will protest ad valorem property taxes for the Project annually, but reserves the rights to
elect not to protest ad valorem taxes, withdraw a protest, and settle protests on terms acceptable
to Landlord.

Section 5.07 Services Landlord will furnish the utilities and services described below
(“Building Services”) to the Premises, subject to the covenants, terms, and conditions of this
Lease, Applicable Law, Unavoidable Failure, and voluntary or mandatory guidelines and standards
relating to energy conservation. Landlord may modify the following standards from time to time.

(a) Elevator Service. Landlord will provide non-exclusive elevator cab passenger
service during Project Hours and make at least one elevator available at all other times,
subject to temporary cessation for ordinary repair and maintenance and during emergencies
and times when life safety systems override normal Building operating systems, and subject
to security measures or other means of controlling access imposed by Landlord at times that
are not Project Hours (referred to as “Non-Project Hours”). “Project Hours” means Business
Days from 7:00 a.m. to 6:00 p.m. and Saturdays from 8:00 a.m. to 1:00 p.m. For so long as
the Premises continues to consist of an entire floor of the Building, Landlord will program
access cards distributed to Tenant to permit stopping on Tenant’s floor during Non-Project
Hours, and program the Project elevators to otherwise bypass Tenant’s floor during
Non-Project Hours (subject to override in case of emergencies).

(b) Electricity. Landlord will furnish 6.5 watts per rentable square foot of
electric current to the Premises, for both lighting and other power requirements, and Tenant
will not use electric current in excess of this amount (“Excess Consumption”). Landlord may
install submeters to measure the use of electric current in the Premises. If the submeter
readings indicate Excess Consumption, then Landlord may install one or more permanent
submeters (“Submeters”). If Landlord elects to install Submeters, then Landlord will
periodically read the Submeters, Tenant will reimburse Landlord for Submeter installation
and monitoring costs, and Tenant will pay Metered Costs within ten days after receipt of an
invoice from Landlord. “Metered Cost” means (1) the kilowatt hours of electricity that
constitutes Excess Consumption during any period multiplied by (2) Landlord’s actual cost
per kilowatt hour of electricity during such period. Each invoice will include the period
of consumption, the beginning and ending readings for each Submeter, and a calculation of
the Metered Cost. Furthermore, Excess Consumption by Tenant is a default under this Lease,
and payment of Metered Costs for Excess Consumption will not constitute a cure of such
default. Without limiting the foregoing, Tenant will use a maximum of 1.2 watts per
rentable square foot of the Premises for lighting. Furthermore, Tenant will not install or
use any single piece of equipment that consumes more than 0.5 kilowatts at rated capacity or
requires a voltage other than 120 volts single phase or electrical plugs, connections, or
outlets that supply a voltage greater than 120 volts single phase without Landlord’s prior
written consent in each instance.

Office Lease Agreement, Page 11

 

 

 

(c) Heat and Air Conditioning. Landlord will maintain the core heating, air
conditioning, and ventilation system in and serving the Premises (other than the ductwork
and other that equipment installed by Tenant as part of the Work) (the “HVAC Core System”)
in good operating condition. Landlord will cause the HVAC Core System to provide heat and
air at a flow rate and at temperatures sufficient to maintain an average temperature of
between 70 and 75 degrees Fahrenheit (the “Acceptable Temperature Range”) in the Premises
while external temperatures are between 18 and 102 degrees Fahrenheit, once the Work is
complete, if the HVAC Distribution System Assumptions (defined in Exhibit F) and the
following conditions are satisfied: the Premises is used for general office use, rather
than a high-density use such as telemarketing; Tenant properly ventilates and cools
computer/server rooms and similar areas that generate heat in excess of that generated by
normal office use with supplemental air conditioning units or other industry standard
methods; the Premises is constructed in accordance with the Plans and not thereafter
materially modified in a manner that might materially adversely affect the heating, air
conditioning, and ventilation of the Premises, such as changing to an open ceiling plan; the
portions of the Work relating to air conditioning, heating, and ventilation, such as
ductwork, are in good operating condition; and Tenant has caused the air and heating system
inside of the Premises to be properly tested and balanced upon completion of the Work.
Landlord’s responsibilities in this subsection, subject to satisfaction of the assumptions
and requirements in this subsection, are referred to as the “HVAC Core System Requirements”.
During weekday Project Hours, upon written or telephonic request by Tenant, Landlord will
cause its property management company or building engineer to periodically adjust the
temperatures in various parts of the Premises, but within the Acceptable Temperature Range,
as is customary for office buildings similar to the Project. If the HVAC Distribution
System (defined in Exhibit F), whether on account of design or construction, is
insufficient to maintain the temperature of the Premises within the Acceptable Temperature
Range, Landlord will Landlord will assist Tenant in enforcing its rights and warranties
against Tenant’s engineers and contractors, but at no out-of-pocket cost to Landlord.
Landlord will provide after hours heat and air conditioning, upon Tenant’s request and at
Tenant’s cost, at rates determined by Landlord, but without markup. The rate for after
hours service on the Effective Date is $40 hour. During the initial Term, this rate will
not increase other than to reflect the actual increase in the cost of electricity payable by
Landlord.

(d) Water. Landlord will furnish water to drinking fountains and lavatories in the
Common Areas and in reasonable amounts through lines and pipes existing on the Effective
Date to existing sinks and kitchen equipment in existing break rooms and kitchenettes in the
Premises, if any. Landlord will maintain the lines and pipes within the Premises to serve
such break rooms and kitchenettes, and Tenant will reimburse Landlord for the costs incurred
by Landlord.

(e) Cleaning Services. Landlord will provide the cleaning services described on
Exhibit J to the Premises, but only if the Premises is used only for general office
use. Furthermore, cleaning services provided by Landlord will not include cleaning or
dusting of any portion of the Premises above the location where a drop ceiling would be
located, if Tenant elects to have the Premises contain exposed ceilings. The cleaning
services will be similar to cleaning services provided in office buildings in the general
vicinity of the Project and that are similar in size and quality to the Project.

Office Lease Agreement, Page 12

 

 

 

(f) Bulbs and Ballasts. Landlord will provide and change out Project standard bulbs
and ballasts for the Premises. At Tenant’s request, Landlord will provide non-Project
standard bulbs and ballasts at Tenant’s cost plus a 5% administrative fee.

Section 5.08 Keys and Locks. Landlord will furnish Tenant with keys or access cards, as
applicable, for each lockset on code required doors entering the Premises from public lobby areas
and for Non-Project Hours access to the Premises by elevator in an amount reasonably requested by
Tenant (but in no event will Tenant be issued in excess of 5.5 keys or access cards for each 1,000
square feet of the Premises) for use by its then current employees maintaining offices in the
Premises. Landlord will furnish additional keys or access cards upon payment to Landlord of a fee
in the amount of $10.00 for each such additional key or access card. All keys or access cards
furnished to Tenant hereunder will remain the property of Landlord.

Section 5.09 Additional Services. Landlord will not be required to provide additional
utilities or services if Tenant is in an uncured event of monetary default under this Lease.

Section 5.10 Utilities. Landlord will not be responsible for the quality or quantity of
utilities or the interruption of utility services caused by the applicable utility provider.

Section 5.11 Signage.

(a) Building Signage. Tenant may install signage (up to a maximum of 40 square
feet) on the east side of the Building facing the North Dallas Parkway, positioned on the
Building façade at one of the two Potential Sign Locations. “Potential Sign Locations”
means the two locations indicated on the picture attached to Exhibit I, both of
which are centered horizontally on the glass above the Building’s main entrance, the first
of which is marked the “Option 1 Cambium Sign” and positioned between the third and fourth
floors, and the second of which is marked “Option 2 Cambium Sign” and positioned above the
top of the windows and below the light tan-colored fascia. Once Tenant’s signage is
installed at one of the Potential Sign Locations, Tenant may not relocate its signage to the
other Potential Sign Location (the “Unchosen Sign Location”). Landlord agrees that during
the Term, Landlord will not install signage or permit any other tenant or to install signage
in the Unchosen Sign Location.

(b) Monument Signage. Tenant may install a panel on the Building’s existing
multitenant monument sign, which will be the same size as the existing panels and at a
location designated by Landlord, and which will identify Tenant or its business. The
signage described above in this Section is subject to the terms and conditions of
Exhibit I and Landlord’s approval of the materials, color, and design of such
signage.

(c) Other Signage. Landlord will provide Tenant with standard signage on the
building directory. Tenant may install (at Tenant’s cost) appropriate graphics (e.g.,
Tenant’s company logo) in elevator lobbies on floors entirely leased by Tenant and on the
entrance doors to the Premises, but only if Tenant has obtained Landlord’s approval of the
size, materials, method of illumination, if any, and methods of installation or attachment.
On floors not entirely leased by Tenant, Landlord will provide and install on or adjacent to
entrances to the Premises Tenant’s name and numerals designating the appropriate suite
numbers in Building standard graphics. Tenant will not install any other graphics visible
from the exterior of the Premises without Landlord’s approval. Without Landlord’s consent,
Tenant will not (a) install exterior lighting, decorations, paintings, awnings, canopies, or
similar items, (b) erect or install any signs, window or door lettering, placards, awnings,
decorations, banners, portable signs, or advertising media of any type that can be viewed
from the exterior of the Premises, or (c) inscribe, paint, affix, or display signs,
advertisements, or notices on or in the Project.

Office Lease Agreement, Page 13

 

 

 

Article VI. Maintenance and Repairs

Section 6.01 Landlord’s Obligations Landlord will operate the Project in a manner
consistent with similar size and quality commercial office buildings in the market in which the
Project is located, Dallas, Texas, including using reasonable efforts to enforce Landlord’s smoking
and noise policies in effect from time to time. Landlord will repair and maintain in good working
order and condition, subject to reasonable wear and tear, the Common Areas, Parking Areas, Limited
Common Areas, foundation, roof, structural walls and supports, and Building Systems, subject to
contrary terms herein relating to casualty and condemnation and damage caused by a Tenant Party.
Tenant will notify Landlord that such repairs are needed. Landlord will commence performing such
repairs such repairs promptly after receipt of notice from Tenant, but in any event not later than
10 days after receipt of such notice from Tenant, or as soon as practically possible in the case of
an emergency (defined as a imminent threat of injury or death to persons or substantial damage to
property). Landlord will diligently continue such repairs until completion, and will complete
repairs within 30 days after notice from Tenant, subject to extensions of time based upon
unavailability of materials, the nature of the repairs, and circumstances beyond the reasonable
control of Landlord and its contractors. “Limited Common Areas” means all base Building restrooms
(and Building Systems located therein), elevator lobby areas (excluding doors and related hardware
and carpet and improvements made by Tenant), base Building fire stairwells, and base Building
mechanical and utility rooms and closets, located in the Premises (i.e., areas and items that would
be part of the Common Area if the Premises did not cover a full floor of the Building).

Section 6.02 Tenant’s Obligation Tenant will maintain, repair, replace, and keep the
Premises and Premises Facilities in good and working condition, reasonable wear and tear excepted,
at Tenant’s sole cost. “Premises Facilities” means (a) the floors, walls, doors, windows, and
ceilings of the Premises, (b) fixtures, appliances, signage, and other property located in the
Premises, and (c) signage, awnings, and other property associated with the Premises but located on
parts of the Project other than the Premises. Tenant will repair or replace any damage to the
Premises or Project caused by a Tenant Party, subject to contrary terms herein relating to casualty
and condemnation. Tenant will perform its obligations in this Section 6.02 in a good and
workmanlike manner and in accordance with the covenants, terms, and conditions applicable to
Alterations performed by Tenant. If Tenant fails to satisfy its obligations under this Section
6.02 within ten days after demand by Landlord, or if this Section 6.02 obligates Tenant to make
repairs or replacements to Project Facilities, Common Areas, or items described in Section 6.01,
Landlord may satisfy such obligations at Tenant’s cost.

Office Lease Agreement, Page 14

 

 

 

Article VII. Installations and Alterations

Section 7.01 Construction of Initial Finish Out Work. The obligations of the parties in
connection with the initial finish out of the Premises are set forth in Exhibit F (the
“Construction Agreement”).

Section 7.02 Alterations to Premises.

(a) Consent Required. Following completion of the Work described on Exhibit
F, Tenant will not alter, modify, add to, or improve the Premises or install fixtures,
equipment, or machinery on or in the Premises (collectively, “Alterations”) without
Landlord’s consent, which Landlord will not unreasonably withhold. It will not be
unreasonable for Landlord to withhold its consent to a proposed Alteration that (i) might
adversely affect the value of the Premises or Project, (ii) might adversely affect Project
Facilities or structural elements or integrity of the Building or Project, (iii) are
structural in nature, (iv) do not comply with Applicable Law, (v) affect the exterior
appearance of the Building, or (vi) interfere with the business operations of the other
tenants in the Building (other than temporary inconvenience arising out of the construction
of the Alterations).

(b) Tenant Request. Tenant will include in a request for approval of an Alteration
(i) the name of and proof of insurance for Tenant’s contractor and, if requested by
Landlord, subcontractors, (ii) complete and final plans and specifications (including
working drawings) (“Plans”) for the Alteration, and (iii) building permits and other
necessary approvals from Governmental Authorities. Landlord’s approval of Tenant’s
contractors or Plans will not constitute a representation by Landlord as to the abilities of
the contractor or the adequacy of such Plans.

(c) Work. Tenant will cause all work to be performed in a diligent and workmanlike
manner using new materials and in accordance with Applicable Law, Plans approved by
Landlord, and this Lease (including the Construction Agreement). Landlord may periodically
inspect the work. Upon completion of an Alteration, Tenant will deliver “as built” plans to
Landlord. Landlord may elect to perform all or part of the work associated with any
Alteration. If Landlord performs work associated with an Alteration, Tenant will reimburse
Landlord for the costs that it incurs plus an additional five percent of such amount to
cover Landlord’s overhead. If Tenant performs an Alteration (or any work associated with an
Alteration), Tenant will pay Landlord one percent of the costs incurred by Tenant to cover
Landlord’s review of plans and other overhead costs. Landlord will own all Alterations upon
the termination of this Lease. Upon Landlord’s request, Tenant will remove Removable
Alterations at the termination of this Lease, provided Landlord notifies Tenant of the
requirement to remove such Removable Alteration at the time Landlord gives its consent to
the installation of such Alteration. “Removable Alterations” means cabling, stairwells,
raised floors, filing cabinets and systems, vaults, and other structures, installations, and
equipment not typically located in a premises used for general office use. Installations
initially made as part of the Work (defined on Exhibit F) do not constitute
Removable Alterations.

Office Lease Agreement, Page 15

 

 

 

Section 7.03  Liens. Nothing in this Lease (a) constitutes Landlord’s request for or consent to a
contractor, subcontractor, or any other person or entity performing labor or furnishing materials
for any improvement, alteration, or repair to the Project or Premises or (b) gives Tenant any
right, power, or authority to contract for or permit the rendering of services or the furnishing of
materials that might give rise to a right to file a Prohibited Lien against Landlord’s interest in
the Project or Premises. “Prohibited Lien” means a mechanic’s, materialman’s or other lien filed
against the Project or Premises arising out of work performed, materials furnished, or obligations
incurred at Tenant’s request or allegedly at Tenant’s request. If Tenant becomes aware of a
Prohibited Lien, Tenant will (a) immediately notify Landlord and (b) within 15 days after the date
that Landlord becomes aware of the Prohibited Lien, cause it to be released of record, either by
payment to the claimant or by posting a bond in amount, form, and substance acceptable to Landlord.
If Tenant does not timely cause a Prohibited Lien to be released of record, Landlord may do so by
any means (including payment in full to the claimant), and Tenant will immediately reimburse
Landlord for all amounts incurred by Landlord to obtain such release, including any amount that
Landlord paid to the claimant. Tenant’s obligations under this Section will survive the
termination of this Lease.

Section 7.04 Telecommunication Equipment. If Tenant requests that Landlord permit it to
use a telecommunications or internet service provider whose equipment is not then servicing the
Project, Landlord will permit such provider to install its lines and other equipment within the
Project if and only if all of the following conditions are satisfied: (a) Landlord will incur no
cost with respect to the provider’s provision of its services, including the costs of installation
and materials, (b) before commencement of work in the Project by the provider, the provider will
supply Landlord with such indemnities, insurance, financial statements, and other items as Landlord
requests, (c) the provider agrees to abide by such rules and regulations, building codes, job site
rules, and other requirements as are determined by Landlord to be necessary to protect the
interests of the Project, the tenants in the Project, and Landlord, (d) Landlord determines that
there is sufficient space in the Project for the placement of the provider’s equipment and
materials, (e) the provider agrees to abide by Landlord requirements, if any, that provider use
existing Project conduits and pipes or use contractors approved by Landlord, (f) the provider
agrees to deliver to Landlord detailed “as built” plans within five Business Days after the
installation of the provider’s equipment is complete, and (g) all of the foregoing matters are
documented in Landlord’s form of license agreement between Landlord and the provider. Landlord
will not charge any approval, usage, access, rental, or any other fee to Tenant or its
telecommunications provider as a condition to Tenant’s or such provider’s installation or
maintenance of the equipment contemplated in this section.

Section 7.05 Installation of Supplemental Systems. Tenant may install generators, chillers
and air condensers, and other systems to provide both back-up and supplemental power, air
conditioning, and heating for the Premises, including conduits and wiring to connect the
Supplemental Equipment to the Premises (the “Supplemental Equipment”) at a location to be
designated by Landlord (with respect to Supplement Equipment or parts of Supplemental Equipment
that is located outside of the Premises), subject to the following requirements: (a) all
requirements regarding approval, installation, insurance, and removal of Alterations will be
applicable to the Supplemental Equipment, (b) Tenant will enclose and screen the Supplemental
Equipment located outside of the Premises as required by Landlord, (c) Tenant may not use more than
its pro-rata share of risers in the Buildings, (d) the Supplemental Equipment will include
environmental hazard protection and pollution prevention equipment and a silencer muffler, if
required by Landlord, and (e) any Supplemental Equipment (such as heating and cooling equipment)
that uses Project-provided electricity will be separately metered at Tenant’s expense, and Tenant
will pay the cost of such electricity to Landlord on the first day of each month following receipt
of a statement from Landlord, as Additional Rent. Upon Landlord’s request, Tenant will relocate
all or any part of the Supplemental Equipment located outside of the Premises to another part of
the Project selected by Landlord. Such relocation will be at Landlord’s cost (unless relocation is
required by Applicable Law or by any insurer or insurance policy, in which case the relocation will
be at Tenant’s cost). Except as contemplated in Article VII (regarding Alterations), Landlord will
not charge any approval, usage, access, rental, or any other fee to Tenant or its contractor as a
condition to Tenant’s or such contractor’s installation or maintenance of Supplemental Equipment.

Office Lease Agreement, Page 16

 

 

 

Section 7.06  Satellite Dish. Tenant may install one satellite dish, not to exceed one meter in
diameter, on the roof of the Building for Tenant’s own use (and not to provide services or access
to any third party), and conduits and wiring to connect the satellite dish to the Premises
(collectively, the “Dish”) at a location to be designated by Landlord, subject to the following
requirements: (a) all requirements regarding approval, installation, insurance, and removal of
Alterations will be applicable to the Dish and (b) Tenant will enclose and screen the Dish as
required by Landlord. Upon Landlord’s request, Tenant will relocate the Dish to another part of
the roof of the Building selected by Landlord. Such relocation will be at Landlord’s cost (unless
relocation is required by Applicable Law or by any insurer or insurance policy, in which case the
relocation will be at Tenant’s cost). Landlord will not charge a fee or additional rent to Tenant
as a condition to Tenant’s or its contractor’s installation or maintenance of the Dish.

Article VIII. Casualty

Section 8.01 Right to Terminate Lease Tenant will immediately notify Landlord of any damage
to the Premises or Project caused by fire or other casualty (a “Casualty”). Within 30 days after
the date of a Casualty, Landlord will notify Tenant of the estimated date by which Landlord will be
able to restore the Premises, together with any other damage to the Project that if not repaired,
would materially adversely affect Tenant’s ability to conduct its business in the Premises. If
Landlord estimates that it will not complete such repairs within 270 days after the date of the
Casualty, then either party may terminate this Lease by notice to the other party within 15 days
after the date that Landlord notifies Tenant of such determination. Furthermore, Landlord may
terminate this Lease following a Casualty if (a) Landlord estimates that the damage to the Building
or the Project more than 50% of its replacement cost, (b)the Casualty is uninsured, (c) a Security
Interest Holder requires that insurance proceeds be used to pay down or retire debt owing under a
Security Instrument, (d) Applicable Law prohibits Landlord from rebuilding the Premises, Building,
or Project to substantially the same condition that existed before the Casualty, or (e) an Event of
Default is continuing at the time of the Casualty. If this Lease is terminated pursuant to this
Section, then upon the termination of this Lease, Landlord will abate Basic Rent and Additional
Rent for the unexpired Term, effective from the date of the Casualty.

Section 8.02 Restoration. If none of the foregoing circumstances permit either party to
terminate this Lease, or if neither party elects to terminate this Lease, then Landlord will
restore the Premises (excluding Alterations (but including the Work, defined in Exhibit F,
that constitutes permanent improvements to the Building), fixtures, or personal property in or on
the Premises) to the condition that existed immediately before the Casualty in all material
respects (but Landlord will not be required to spend for such work an amount in excess of the
amount of insurance proceeds received by Landlord, over and above amounts to be paid to a Security
Interest Holder). Tenant will promptly rebuild, repair, or replace Alterations (not including the
Work that constitutes permanent improvements to the Building), fixtures, or personal property that
were in or on the Premises immediately prior to the Casualty, without reimbursement from Landlord.
Beginning on the date of the Casualty and continuing while the Premises is unfit for occupancy,
Landlord will abate Basic Rent and Additional Rent as to the portion of the Premises in which
Tenant is unable to conduct business. All property insurance carried by Landlord is for the sole
benefit of Landlord and any Security Interest Holder.

Office Lease Agreement, Page 17

 

 

 

Article IX. Condemnation

Section 9.01 Termination of Lease. If a Taking occurs, Landlord may terminate this Lease,
such termination to be effective on the Taking Date. “Taking” means (a) either more than 10% of
the rentable area of the Project or Premises or any part of the Project that Landlord considers
necessary to the economic feasibility of the Project is condemned or sold in lieu of condemnation
or (b) Tenant is unable to use more than 25% of the rentable area of the Premises for 180
consecutive days or more due to a temporary condemnation. “Taking Date” means earliest to occur of
the date title to all or any part of the Premises vests in the condemnor, the date of entry of an
order for immediate possession in any judicial proceeding in eminent domain, and the date physical
possession of the Premises is interfered with or taken.

Section 9.02 Tenant’s Rights. If more than 10% of the rentable area of the Premises is
condemned or sold in lieu of condemnation, and as a result, Tenant’s use of or access to the
Premises is materially and adversely affected, then Tenant may terminate this Lease by notice to
Landlord before the Taking Date, such termination to be effecting on the Taking Date.

Section 9.03 Effect of Taking. If Landlord or Tenant elects to terminate this Lease as
permitted in this Section, Tenant will pay Rent through the Taking Date. If neither party elects
to terminate this Lease, and if the Taking includes part of the Premises, Landlord will (i)
redetermine Basic Rent and Additional Rent on the basis of the remaining size of the Premises and
(ii) restore and reconstruct the Project to an architectural whole to the extent reasonably
feasible. Landlord will not be required to spend an amount in excess of any award for the taking
received by Landlord, over and above amounts to be paid to a Security Interest Holder.

Section 9.04 Award. Landlord will own the entire award payable as a result of a Taking,
and Tenant assigns to Landlord its rights and interests (now or hereafter arising) in any Taking
award. Tenant may, however, make a claim against the condemning authority for moving costs,
inconvenience, or business interruption related to a condemnation of the Premises, but any such
claim will be asserted, if at all, in a proceeding independent of Landlord’s primary condemnation
suit.

Section 9.05 Temporary Taking. If any taking or condemnation of all or part of the
Premises occurs and continues for less than 180 days, this Lease will continue in full force and
effect except that (i) Tenant will not be obligated to comply with any covenant, term, or condition
of this Lease to the extent such compliance is rendered impossible by reason of the taking and (ii)
Basic Rent, Additional Rent, and all other components of Rent (to the extent the same are based on
the rentable area of the Premises) will be calculated based on the rentable area of the Premises
not so taken, for the period of time that the Premises is so taken.

Office Lease Agreement, Page 18

 

 

 

Article X. Insurance, Waivers, and Indemnity

Section 10.01 Tenant’s Insurance. Tenant will maintain insurance required by and will
comply with the covenants, terms, and conditions of Exhibit D.

Section 10.02 Landlord’s Insurance. Landlord will carry and maintain commercial general
liability insurance covering the Common Areas and property insurance covering the Project
(excluding footings and foundations and property required to be insured by Tenant or other
tenants). Landlord may satisfy the requirements of this subsection by self-insurance or by blanket
insurance covering additional items, locations, or assureds.

Section 10.03 Waiver Of Claims — Casualty. Each party waives each Claim or Loss that may
arise in its favor against the other party or the other party’s employees, owners, officers, or
agents arising out of damage to or destruction of the waiving party’s property, to the
extent (but only to the extent) that the waiving party either (a) is compensated by insurance or
(b) would be covered by insurance had such party satisfied the insurance requirements in this
Lease. The waivers in this Section will apply even if the released party is negligent or would
otherwise be strictly liable under Applicable Law. Each party will provide a copy of this
provision to its insurance company and request that its insurance company endorse its property
insurance policy to waive subrogation to the extent that such waiver is not part of the base
policy.

Section 10.04 Waiver of Claims — Other Matters. Neither Landlord nor any Landlord Party
will not be liable to Tenant for, and Tenant releases Landlord and each Landlord Party from, every
Claim or Loss caused by or arising out of (a) any Tenant Party’s use or occupancy of the Premises,
(b) fire, explosion, gas, electricity, water, rain, snow, dampness, or leaks, (c) damage to the
roof, roof system, or Project Facilities, (d) the acts or omissions of other tenants or other
Persons in the Premises or Project, (e) the construction of any private, public, or quasipublic
work, (f) Landlord’s failure to maintain temperature or electrical constancy levels, (g) Landlord’s
failure to furnish any services to be provided by Landlord under this Lease if such failure is
caused by accident, breakage, repairs, strikes, lockouts, labor disturbance, labor disputes,
Applicable Law, moratorium or other action of any Governmental Authority, inability to obtain
utilities, or any cause that is reasonably beyond Landlord’s control, or (h) burglary, theft,
vandalism, or other criminal activity. However, the foregoing waiver of claims will not limit
Landlord’s obligations that are expressly set forth in this Lease or Tenant’s rights and remedies
that are expressly set forth in Section 13.08. All covenants of Tenant in this Lease are
independent covenants, not conditioned upon Landlord’s satisfaction of its obligations under this
Lease. Tenant waives all statutory liens that it may have against Rent or against Landlord’s
property in Tenant’s possession. The waivers in this Section will apply even if the released
party is negligent or would otherwise be strictly liable under Applicable Law, but not to the
extent that a released party is grossly negligent or to the extent of a released party’s
intentional misconduct.

Office Lease Agreement, Page 19

 

 

 

Section 10.05  Indemnity. Tenant will Indemnify Landlord and each Landlord Party against each Claim or
Loss asserted against, incurred by, or suffered by a Landlord Party by reason of or arising out of
any bodily injury, death, or property damage that occurs in or results from an occurrence in the
Premises. Landlord will Indemnify Tenant and its owners, officers, directors, managers, members,
partners, and employees, agents, and independent contractors (including Tenant, each a “Tenant
Indemnified Party”), against each Claim or Loss asserted against, incurred by, or suffered by a
Tenant Indemnified Party by reason of or arising out of any bodily injury, death, or property
damage that occurs in or results from an occurrence in the Common Areas. The indemnities in this
Section 10.05 will apply even if the indemnified Person is negligent or would otherwise be
strictly liable under Applicable Law, but not in the case of the Indemnified Party’s gross
negligence or willful misconduct. The indemnities set forth in this Section 10.05 are subject to
the waiver of claims set forth in Section 10.03. Upon notice from an indemnified party (an
“Indemnitee”), the indemnifying party (the “Indemnitor”) will assume on behalf of the Indemnitee
and will conduct with due diligence and in good faith, with counsel reasonably approved by the
Indemnitee, the defense of and the response to a claim, proceeding, or investigation included in or
concerning a Claim or Loss for which the Indemnitor is responsible pursuant to this Section 10.05.
The obligations of the parties under this Section 10.05 (x) will apply even if a Claim or Loss
arises or accrues due to a condition of the Premises or Project or other circumstance that existed
before the Effective Date, (y) will not be limited by damages paid under workers’ compensation or
similar employee benefit acts or any prohibition against the right of contribution from joint
tortfeasors under comparative negligence statutes, and (z) will survive the termination of this
Lease.

Article XI. Assignment and Subletting

Section 11.01 Restrictions on Transfer. Without Landlord’s consent, which Landlord will
not unreasonably withhold, condition, or delay, Tenant will not cause or permit a Transfer, whether
voluntarily or by operation of law. “Transfer” means (a) the assignment of this Lease or any
interest in this Lease, (b) the sublease of all or any part of the Premises, (c) the granting of a
license, concession, or other right of occupancy, possession, or use of all or any part of the
Premises, (d) the execution a takeover or similar agreement whereby Tenant’s obligations under this
Lease are assumed by another Person, (e) a mortgage, pledge, or other encumbrance of Tenant’s
interests in this Lease, or (f) the dissolution or reorganization of Tenant or a Person that
directly or indirectly Controls Tenant. “Transferee” means any Person that would be the assignee,
sublessee, licensee, or recipient of rights pursuant to a Transfer. It will not be unreasonable
for Landlord to withhold its consent to a Transfer for one or more of the following reasons: (1)
Tenant is in default under this Lease, (2) the proposed Transferee is a Governmental Authority,
medical office, or telemarketing business, (3) the proposed Transferee is an occupant of the
Project, is negotiating with Landlord to become a tenant of the Project, or has negotiated with
Landlord during the 12 month period immediately preceding the delivery of any Required Information
to become a tenant of the Project, (4) the business to be conducted within the Premises by the
proposed Transferee might increase the burden on parking, elevators, or other services, (5) all
Required Information is not delivered to Landlord or, if delivered, is not in form or substance
satisfactory to Landlord, (6) in Landlord judgment, the proposed Transferee is not of the character
or quality of a tenant to whom Landlord would generally lease space of the Project, (7) the
proposed Transferee does not have shareholders’ equity or tangible net worth (in each case
determined in accordance with GAAP and as evidenced by financial statements audited by a certified
public accounting firm reasonably acceptable to Landlord) equal to or greater than that of Tenant
on the Effective Date, or (8) in Landlord judgment, the proposed Transferee’s business would
negatively affect the Project’s reputation or tenant mix or is not suitable for the Project
considering the business of the other tenants or potential tenants.

Office Lease Agreement, Page 20

 

 

 

Section 11.02  Certain Permitted Transfers. Without the consent of Landlord, but following 30 days’ prior
written notice to Landlord (or prompt written notice after the transaction, if Applicable Law or
the confidential nature of the transaction proscribes Tenant from disclosing the Transfer before it
occurs), Tenant may assign this Lease to, sublet all or part of the Premises to, or permit
occupancy of any part of the Premises by an Affiliate of Tenant or a successor entity of Tenant,
whether by merger or consolidation.

Section 11.03 Transfer Requests. Tenant may request that Landlord consent to a Transfer.
As part of any such request, Tenant will submit to Landlord the following (the “Required
Information”): (a) the proposed Transferee’s name, entity type, and state of organization, (b) the
nature of the proposed Transferee’s business, (c) current audited financial statements (including a
balance sheet and income statement) of the proposed Transferee, prepared by a certified public
accountant acceptable to Landlord in accordance with GAAP, and certified as accurate and complete
by an officer, partner, or owner of the proposed Transferee, (d) a copy of all existing or proposed
documentation pertaining to the proposed Transfer, including a copy of the proposed Transfer
agreement (e.g., the form of sublease or assignment), (e) the proposed effective date of the
Transfer, which may not be less than 30 days nor more than 180 days after the date that Tenant
delivers the Required Information to Landlord, (f) the terms of the proposed Transfer and the
consideration therefor, including a calculation of the Transfer Premium (defined below), (g) an
Estoppel Certificate (defined below), (g) if less than all of the Premises will be affected by the
Transfer, a drawing showing the portion of the Premises that would be affected by the Transfer, and
(h) such other information as Landlord may request. Within 15 days after Landlord’s receipt of all
Required Information, Landlord will deliver notice to Tenant (a “Landlord Response”) in which
Landlord does one of the following: (i) consents to the proposed Transfer or (ii) disapproves the
proposed Transfer. If Landlord does not timely deliver a Landlord Response to Tenant, then
Landlord will be deemed to have disapproved the proposed Transfer. If Landlord consents to the
proposed Transfer, Tenant may consummate such Transfer within six months after the date of
Landlord’s approval on substantially the same terms and using the same documentation as provided to
Landlord as part of the Required Information. If Tenant does not timely consummate the Transfer or
if, before the consummation of the Transfer, there are material changes to the terms of the
Transfer or the Required Information, then Landlord will be deemed to have disapproved the proposed
Transfer, and Tenant may re-make the Transfer request.

Section 11.04 Landlord’s Rights Regarding Subtenant. By accepting a sublease of or taking
actual or constructive possession of all or part of the Premises, a subtenant will be deemed to
have assumed all obligations of Tenant under this Lease (but only with respect to the portion of
the Premises subleased). Such assumption will be effective on the earlier of the date of the
sublease and the date on which the subtenant obtains possession of the Premises. Following and
during the continuance of an Event of Default, Landlord may collect Rent directly from any
subtenant, and Tenant authorizes and directs each subtenant to pay Rent directly to Landlord upon
receipt of notice from Landlord. Direct collection of Rent by Landlord will not be construed as a
novation of this Lease or a release of Tenant. To the extent the rent or other payments derived
from any subtenant exceed Basic Rent and Additional Rent, Tenant will pay 50% of the excess to
Landlord in consideration for Landlord’s consent to the Transfer after Tenant first deducts its
reasonable subletting expenses (and provides an accounting to Landlord of such expenses in
reasonable detail).

Office Lease Agreement, Page 21

 

 

 

Section 11.05 Additional Terms. Any Transfer made in violation of this Lease without
Landlord’s prior consent will be null, void, and of no effect and will constitute a default by
Tenant under this Lease. By consenting to one or more Transfers, Landlord will not be deemed to
have waived its rights as to any subsequent proposed Transfer. Tenant will deliver to Landlord a
copy of each assignment, sublease, or other document evidencing a Transfer within ten days after
its execution. No Transfer will release Tenant from its obligations and liabilities under this
Lease. Within ten days of receipt of an invoice from Landlord, Tenant will pay to Landlord (a) an
administrative fee of $1,000 as consideration for Landlord’s consideration of a Transfer request
and (b) all Attorneys’ Fees and costs incurred by Landlord in connection with any proposed Transfer
request, such payment to be due even if Landlord does not consent to the proposed Transfer.

Section 11.06 Transfers by Landlord. Landlord may sell, convey, assign, transfer,
mortgage, pledge, or encumber all or any part of the Project. Landlord will be relieved if its
obligations under this Lease upon a sale, conveyance, assignment, or transfer of the Project, if
the Person acquiring the Project expressly assumes Landlord’s obligations under this Lease.

Article XII. Landlord Financing

Section 12.01 Subordination. Landlord, Crown Sterling Properties, LLC, and Tenant have
executed and delivered to one another a Subordination, Nondisturbance, and Attornment Agreement
dated as of the Effective Date. This Lease and its covenants, terms, and conditions will be
subject and subordinate to each future Security Instrument and its covenants, terms, and conditions
so long as Landlord obtains and delivers to Tenant an agreement from the holder of such future
Security Instrument nondisturbance agreement from the existing and future Security Instrument
Holder (each a “Security Instrument Holder”) an agreement wherein such Security Instrument Holder
agrees not to disturb Tenant’s possession of the Premises (subject to the terms, conditions and
provisions of this Lease) so long as Tenant is not in default or breach of this Lease beyond
applicable notice and cure periods. “Security Instrument” means a mortgage, deed of trust, or
other instrument creating a lien over all or part of Landlord’s interest in the Project, as
modified, amended, or extended, presently existing or hereafter executed. In connection with any
future Security Instrument, Tenant will, within ten days after a request by Landlord, execute and
deliver to Landlord and any future Security Instrument Holder a commercially reasonable
subordination, non-disturbance, and attornment agreement, in form and substance reasonably
acceptable to Tenant. A holder of a Security Instrument may subordinate its Security Instrument to
this Lease.

Section 12.02 Estoppel. Within ten days after a request by either party, the other party
will execute and deliver to the requesting party an estoppel certificate (an “Estoppel
Certificate”) addressed to the requesting party and such other parties as the requesting party
designates in connection with financing by the requested party (or a potential sale of the Project,
if Landlord is the requesting party), in which the party executing the Estoppel Certificate
represents and warrants to such parties (a) the identity of Landlord, Tenant, and this Lease, (b)
that this Lease is unmodified and in full force and effect (or if there have been modifications,
that the same is in full force and effect as so modified), (c) the Rent Commencement Date, the
Term, the amount of Basic Rent, Additional Rent, and other sums due by Tenant under this Lease, and
the amount of any advance payments of Rent or deposits in the possession of Landlord, (d) that to
the knowledge of the party executing the Estoppel Certificate, neither party is in default of any
of its obligations under this Lease (or if any party is in default, specifying such default), and
(e) such other factual information or confirmations related to this Lease as may be requested by
the requesting party.

Office Lease Agreement, Page 22

 

 

 

Article XIII. Defaults and Remedies

Section 13.01 Defaults By Tenant. Each of the following will be an event of default by
Tenant under this Lease (an “Event of Default”):

(a) Monetary Defaults. (i) Tenant fails to pay any amount of Basic Rent or
Additional Rent within seven days after receipt of notice from Landlord that such Basic Rent
or Additional Rent is delinquent (a “Rent Delinquency Notice”), (ii) if Landlord has sent
two Rent Delinquency Notices to Tenant in any consecutive 12-month period, Tenant fails to
pay any amount of Basic Rent or Additional Rent when due, if such payment is due within the
same consecutive 12-month period (i.e., Tenant is not entitled to notice or a cure period
upon the third failure to timely pay Basic Rent or Additional Rent within a consecutive
12-month period), or (iii) Tenant fails to pay any amount of Rent other than Basic Rent or
Additional Rent within seven days after receipt of a Rent Delinquency Notice.

(b) Non-Monetary Defaults. Except for a failure covered by another subsection of
this Section 13.01, (i) Tenant fails to perform any of its obligations under this Lease,
(ii) Landlord delivers notice to Tenant describing such failure (in this subsection, the
date of such notice being the “First Notice Date”), (iii) such failure continues for 20 days
after the First Notice Date, (iv) on or after the date that is 20 days after the First
Notice Date, Landlord delivers another notice to Tenant describing such failure (in this
subsection, the date of such notice being the “Second Notice Date”), and (v) Tenant does not
cure such failure on or before the date that is ten days after the Second Notice Date (the
“Final Cure Date”); but if a non- monetary default can be cured, but by its nature cannot be
cured on or before the Final Cure Date, and if Tenant has commenced curing such default
before the Final Cure Date, then the Final Cure Date will be extended for an additional 30
days, so long as Tenant diligently and continuously pursues such cure to completion.

(c) Continual Failure to Perform. Tenant fails to perform any obligations under
this Lease, and Landlord has notified Tenant two or more times in the preceding 12 month
period that Tenant has not performed the same obligation.

(d) Certain Enumerated Defaults. Tenant fails to perform any of its obligations
under Exhibit D and such failure continues for two Business Days after Landlord
delivers notice to Tenant describing such failure or a Transfer occurs in violation of
Article XI.

(e) Insolvency; Bankruptcy; Receivership. (i) Tenant becomes insolvent, admits its
inability to pay its debts when due, makes a transfer in fraud of its creditors, or makes a
general assignment or arrangement for the benefit of its creditors, (ii) all or
substantially all of Tenant’s assets or Tenant’s interest in this Lease are levied on by
execution or other legal process, (ii) Tenant files a petition under the Federal Bankruptcy
Code or under a similar Applicable Law or is adjudged bankrupt or insolvent in proceedings
filed against Tenant, or (iii) a receiver or trustee is appointed for the
Premises or for all or substantially all of the assets of Tenant and is not dismissed within
60 days after appointment.

Office Lease Agreement, Page 23

 

 

 

(f) Desertion, Vacation, or Abandonment. Tenant fails to occupy substantially all
of the Premises on or before the Rent Commencement Date or deserts, vacates, or abandons the
Premises.

(g) Dissolution, Liquidation, or Loss of Right to do Business. If Tenant is an
entity, Tenant dissolves, liquidates, or fails to maintain its right to do business in the
state in which the Project is located.

Section 13.02 Remedies of Landlord. If an Event of Default occurs, Landlord may
pursue one or more of the following remedies, without delivering notice to Tenant except as
expressly required below, and with or without judicial process:

(a) Terminate Possession. Landlord may terminate Tenant’s right to possess the
Premises by delivering a termination of possession notice to Tenant (“Termination of
Possession”), without terminating this Lease. Furthermore, as part of the notice of
Termination of Possession or by separate notice at any time after Termination of Possession,
Landlord may accelerate Rent owing under this Lease for the remainder of the Term.
Following Termination of Possession, (i) Tenant will have no further right to possess the
Premises (even if Tenant cures all Events of Default) and (ii) Landlord may relet the
Premises in Tenant’s name on terms acceptable to Landlord in its sole discretion (and Tenant
appoints Landlord as its agent for this purpose). Upon a reletting, (x) Landlord will not
be liable to Tenant for its failure to collect rent and (y) all rent and other benefits from
a reletting will belong to Landlord.

(b) Terminate Lease. Landlord may terminate this Lease by delivering a Lease
termination notice to Tenant (a “Termination of Lease”). Landlord may also terminate this
Lease at any time after a Termination of Possession.

(c) Re-enter and Repossess Premises Landlord may re-enter and repossess all or any
part of the Premises, by picking or changing locks if necessary or convenient, locking
Tenant out, and removing Tenant and any other Person from the Premises. Re-entry or
repossession of the Premises by Landlord will not be construed as an election by Landlord to
terminate this Lease.

(d) Perform Tenant’s Obligations. Landlord may perform one or more of Tenant’s
obligations under this Lease.

Section 13.03 Recovery by Landlord. If an Event of Default occurs:

(a) After an Event of Default. Tenant will pay to Landlord (i) accrued and unpaid
Rent to the date of demand, plus interest at the Default Rate from the date due until the
date received by Landlord, (ii) unamortized tenant finish amounts and commissions paid by
Landlord in connection with this Lease, amortized in level payments over the initial Term,
and (iii) all other costs incurred by Landlord in connection with or arising out of an Event
of Default or Landlord’s exercise of its remedies under this Lease, plus interest on each
such amount at the Default Rate from the date incurred by Landlord until the date received
by Landlord.

Office Lease Agreement, Page 24

 

 

 

(b) Following Termination of Possession, But Before Acceleration of Rent.
Furthermore, following Termination of Possession, Tenant will pay Rent to Landlord monthly
as it accrues, through the date that Landlord accelerates Rent (the “Rent Acceleration
Date”). If Landlord relets the Premises, Tenant will receive a credit each month in the
amount of the rent that the new tenant pays to Landlord, to be applied first to amounts
owing under subsection (a) until Landlord has recovered all amounts owed under subsection
(a), then to Rent accruing under this Lease.

(c) Following Termination of Possession and Acceleration of Rent. Furthermore, if
Landlord accelerates Rent, Tenant will pay to Landlord the present value, discounted at the
Discount Rate, of the difference between (i) the aggregate Basic Rent and Additional Rent
for the period beginning on the Rent Acceleration Date and ending on the last day of the
Term and (ii) the Fair Market Value Amount.

(d) Following Termination of Lease. Furthermore, following a Termination of Lease
(the date of such termination is called the “Lease Termination Date”), Tenant will pay to
Landlord the present value, discounted at the Discount Rate, of the difference between (i)
an amount equal to the aggregate Basic Rent and Additional Rent that would have accrued
under this Lease for the period beginning on the Rent Acceleration Date and ending on the
last day of the Term but for the Termination of Lease and (ii) the Fair Market Value Amount.

(e) Definitions. “Discount Rate” means seven percent per annum. “Fair Market Value
Amount” means the basic rent and additional rent that, in Landlord’s estimation, with
reasonable efforts could be collected by Landlord by reletting the Premises for the period
beginning on the Rent Acceleration Date or Lease Termination Date, as applicable, through
the balance of the Term (but if at the time of calculation, Landlord has relet the Premises,
then Landlord will use in its calculations the actual basic rent and additional rent that it
is entitled to receive rather than estimated amounts).

Section 13.04 Survival of Obligations. If Landlord repossesses, relets the, or re-enters
all or any part of the Premises, Tenant’s obligations under this Lease will survive and Tenant will
continue to pay Rent.

Section 13.05 Cumulative Remedies. If an Event of Default occurs, Landlord may pursue all
remedies available to it under Applicable Law or in equity, including injunctive relief against
Tenant or a decree compelling performance of this Lease by Tenant (each an “available remedy”). No
available remedy is exclusive of any other available remedy. Each available remedy will be
cumulative and in addition to any other available remedy.

Section 13.06 Waiver of Landlord’s Lien. Landlord waives all statutory and constitutional
landlord’s liens in all furniture, equipment, and other personal property now or hereafter located
in the Property.

Section 13.07 Security Deposit. Tenant has deposited the Security Deposit Amount with
Landlord as a security deposit for Tenant’s obligations under this Lease (the “Security Deposit”).
Landlord will return the Security Deposit to Tenant, without interest, within 60 days after the
date that this Lease terminates and Tenant surrenders possession of the Premises to Landlord if
Tenant has performed all of its obligations under this Lease and no Event of Default
has occurred and is then continuing. Landlord may commingle the Security Deposit with its general
funds. Landlord may use the Security Deposit at any time to recover Rent then owing and overdue or
to satisfy other obligations of Tenant. If Landlord uses all or part of the Security Deposit, then
upon demand by Landlord, Tenant will deposit with Landlord a sum sufficient to restore the Security
Deposit to the Security Deposit Amount. If Landlord does not receive evidence satisfactory to
Landlord of an assignment of the right to receive the Security Deposit, Landlord may return the
Security Deposit to the original tenant under this Lease.

Office Lease Agreement, Page 25

 

 

 

Section 13.08 Failure to Pay. All Rent and other amounts not paid when due will bear
interest at the Default Rate from the date due until the date paid.

Section 13.09 Default By Landlord.

(a) Tenant’s Abatement Rights. If (i) for any reason other than an Unavoidable
Failure, a Service Failure occurs, (ii) the Service Failure continues for more than five
consecutive days after Tenant gives notice to Landlord specifying the Service Failure (a
“Service Failure Notice”), and (iii) as a result of the Service Failure, it becomes
reasonably impracticable for Tenant to operate its business in the Premises and Tenant in
fact does not use or occupy the Premises, then Tenant will be entitled to an abatement of
Basic Rent, retroactive to date that Landlord received the Service Failure Notice and
continuing until the Service Failure ceases or is cured. “Unavoidable Failure” means fire,
flood, lightning, earthquake, hurricane, other Casualty or act of God, Taking, war,
terrorism, strikes or other labor disputes, riots or similar disturbance, other events
reasonably beyond the control of Landlord, curtailment in service imposed by any
Governmental Authority, failure of a public utility to furnish necessary services, or the
acts or negligence of a Tenant Party. “Service Failure” means:

(1) Landlord fails to provide elevator cab passenger service as required by
(and subject to) Section 5.07(a),

(2) Landlord fails to provide electricity to the Premises as required by (and
subject to) Section 5.07(b),

(3) Landlord fails to satisfy the HVAC Core System Requirements, which the
parties agree is sufficient to permit the average temperature in the Premises to be
maintained of between 70 and 75 degrees Fahrenheit, based upon and subject to the
assumptions and qualifications made by Tenant and its contractors and engineers in
the Construction Plans,

(4) Landlord fails to provide water to drinking fountains and lavatories in the
Premises as required by (and subject to) Section 5.07(d),

(5) Landlord fails to provide cleaning services to the Premises as required by
(and subject to) Section 5.07(e), or

(6) Landlord fails to maintain the roof of the Building in a good and
watertight condition, and as a result, water leaks into the Premises, and Landlord
does not promptly (but in any event within five days after receipt of notice from
Tenant) commence repairs to the roof and diligently continue such repairs to
completion.

Office Lease Agreement, Page 26

 

 

 

(b) Tenant’s Cure and Setoff Rights. If a Maintenance Failure occurs, Tenant may
notify Landlord of such failure, which notice will specify the needed repairs or maintenance
and the date that Tenant first notified Landlord of the need for such repairs or
maintenance, and will state that Tenant intends to perform such maintenance or repairs if
Landlord continues to fail to do so (a “Maintenance Failure Notice”). If (i) Landlord does
not commence to cure the Maintenance Failure within ten days after receipt of a Maintenance
Failure Notice by Landlord, and diligently continue the necessary repairs to completion,
(ii) the necessary maintenance or repairs are to, and will only affect, the interior of the
Premises, (iii) the necessary maintenance or repairs will not affect the structural
integrity or exterior appearance of the Building or any Building System (but may affect
parts of Building Systems located entirely within the Premises and not connected to or tied
in with parts of such Building System used by other tenants in or premises of the Building),
(iv) the cost of the necessary maintenance and repairs (including both labor and materials)
will not exceed $3,500 (or in the case of repairs to the roof, will not exceed $5,000), and
(v) all contractors performing work in the Premises satisfy Landlord’s then-current
insurance requirements applicable to contractors generally who perform work in the Building,
then Tenant may perform the necessary maintenance and repairs. If Tenant is permitted by
this subsection and elects to perform any such maintenance or repairs, then within 60 days
after receipt of an invoice from Tenant (including copies of paid bills) Landlord will
reimburse Tenant for the actual out-of-pocket costs paid by Tenant for such repairs or
maintenance. If Landlord fails to reimburse Tenant within such time period, Tenant may
deduct such costs from Basic Rent. But if Landlord disputes the necessity for such
maintenance and repairs made by Tenant or the reasonableness of the amount incurred by
Tenant in performing such maintenance and repairs, Tenant will not be entitled to offset the
amount of the maintenance and repairs unless and until Tenant receives an unappealable order
from a court of competent jurisdiction authorizing such offset. “Maintenance Failure”
means:

(1) Landlord fails to satisfy its repair and maintenance obligations set forth
in Section 6.01 following receipt of notice from Tenant, within the time provided in
such section, or

(2) Landlord fails to provide and change out Project standard bulbs and
ballasts in the Premises within 30 days after receipt of a request from Tenant.

Article XIV. End of Term Obligations

Section 14.01 Holding Over. On the day that this Lease terminates Tenant will surrender
the Premises to Landlord in a condition that is at least as good as the condition of the Premises
on the Rent Commencement Date, ordinary wear and tear excepted, and deliver all keys to the
Premises to Landlord. After this Lease terminates, Landlord may enter and repossess the Premises
by picking or changing locks, locking Tenant out, and removing Tenant and any other Person from the
Premises, with or without judicial process. If Tenant continues to occupy the Premises after this
Lease terminates, Tenant will be a tenancy at sufferance, but Tenant will pay a monthly rent equal
to the Holdover Percentage of the Basic Rent and Additional Rent payable during the last full
calendar month before this Lease terminated, and all covenants, terms, and conditions in this Lease
will continue to apply to Tenant. “Holdover Percentage” means 125% for the first 90 days of the
holdover period and 150% thereafter. Neither Tenant’s holding over
(whether with or without Landlord’s consent) nor Landlord’s acceptance of payments after this Lease
terminates will reinstate or extend the Term.

Office Lease Agreement, Page 27

 

 

 

Section 14.02 Removal of Property. When this Lease terminates, Tenant will remove from the
Premises (a) its trade fixtures, personal property, and signage, subject to Landlord’s rights
under this Lease if an Event of Default is then continuing and (b) if required by Landlord, any
Alterations that were either made without Landlord’s consent or made with Landlord’s consent, but
subject to Landlord’s right to require removal. Tenant will repair any damage to the Premises or
Project caused by such removal. If Tenant has not removed any property that it is required by this
Section 14.02 to remove on or before the last day of the Term (or within ten days after this Lease
terminates, if this Lease terminates before the last day of the Term), then Tenant will be deemed
to have abandoned such property, Landlord may remove and keep such property, and Tenant will pay
the cost of such removal and the cost to repair damage to the Premises or Project caused by such
removal upon demand by Landlord.

Article XV. Other Lease Provisions

Section 15.01 Rights Reserved by Landlord. Landlord or a Landlord Party acting for or at
the direction of Landlord may, without notice to Tenant except as otherwise expressly provided: (a)
after at least one day’s written or oral notice to Tenant, enter the Premises to inspect the
Premises, show the Premises to prospective lenders, purchasers, or tenants, and fulfill its
obligations and exercise its rights under this Lease, (b) enter the Premises in an emergency, using
any means that Landlord deems necessary or convenient, (c) during the last 180 days of the Term,
place and maintain “For Rent” or “For Lease” signs on and outside of the Premises, (d)change the
name of the Project, (e) grant the exclusive right to conduct any business or render any service in
or to the Project to any Person, (f) improve, alter, renovate, construct, repair, decorate, or
enclose any part of the Project or Project Facilities (doors, entrances, passageways, corridors,
elevators, stairs, restrooms, driveways, Parking Areas, landscaped areas, and structural and load
bearing elements, including any of the foregoing within the Premises) and construct scaffolding and
other structures in connection with such work, provided that Landlord will use reasonable efforts
to exercise such rights in a manner that minimizes interference with Tenant’s use of the Premises,
(g) install cabling, pipes, and conduits on, under, within, and outside of the Premises, provided
that Landlord will use reasonable efforts to exercise such rights in a manner that minimizes
interference with Tenant’s use of the Premises, (h) change which areas and facilities are Common
Areas, change the location and method of ingress and egress to the Common Areas, and restrict or
disallow any Person’s use of all or any part of the Common Areas, (i) temporarily close Common
Areas, and (j) temporarily suspend Project services and facilities. Landlord reserves the rights
described in this Section 15.01 from the leasehold estate conveyed to Tenant. Landlord’s exercise
of its rights described in this Section 15.01 will not constitute the constructive eviction of
Tenant or a breach of any implied warranty and will not entitle Tenant to an abatement of Rent.
Tenant waives every Claim or Loss against Landlord and each Landlord Party arising out of
Landlord’s exercise of the rights described in this Section 15.01.

Office Lease Agreement, Page 28

 

 

 

Section 15.02 Representations, Warranties, and Covenants of Tenant. Tenant represents to
Landlord that (a) no bankruptcy or insolvency proceedings are pending or contemplated by or against
Tenant, (b) there are no judicial or administrative actions, suits, or proceedings pending or
threatened against or affecting Tenant that if adversely determined, would have a material
adverse effect on Tenant’s ability to perform its obligations set forth in this Lease, (c) all
information furnished by Tenant to Landlord is true and correct, (d) the execution and delivery of
this Lease by Tenant does not contravene, result in a breach of, or constitute a default under any
agreement to which Tenant is a party or by which Tenant is bound, (e) Tenant has had no dealings
with any real estate broker or agent in connection with the negotiation of this Lease other than
the Broker and the Cooperating Broker and it knows of no other real estate brokers or agents who
might be entitled to any commission in connection with this Lease, and (f) Tenant is not acting,
directly or indirectly, for or on behalf of any Person or nation named by any Executive Order or
the United States Treasury Department as a terrorist, “Specially Designated National and Blocked
Person,” or other banned or blocked Person, nation, or transaction pursuant to any Applicable Law
that is enforced or administered by the Office of Foreign Assets Control, and Tenant is not engaged
in this transaction, directly or indirectly, on behalf of, or instigating or facilitating this
transaction, directly or indirectly, on behalf of, any such Person or nation. Tenant agrees that
(w) a diminution or shutting off of light, air, or view by any structure that is hereafter erected
on the Project or lands adjacent to the Project will not affect this Lease or impose any liability
on Landlord (even if Landlord is the adjacent land owner), (x)the rentable areas of the Project and
the Premises on the Effective Date are conclusively deemed to be the numbers of square feet set
forth in definitions of such terms, (y) all covenants, terms, and conditions of this Lease for
determining charges and amounts of Rent are commercially reasonable, and each such charge or amount
constitutes a “method by which the charge is to be computed” for purposes of Section 93.012 of the
Texas Property Code, and (z) no agreement to accept surrender of the Premises will be valid unless
executed by Landlord, as no employee or agent of Landlord has any power to accept a surrender
before the termination of this Lease. Tenant waives its right to claim a lien under §91.004(b) of
the Texas Property Code. Once per year within 30 days after request by Landlord, Tenant will
deliver to Landlord current audited financial statements (including a balance sheet and income
statement) of Tenant (or if Tenant’s financial information is consolidated with the financial
information of its parent, of Tenant’s parent, prepared by a certified public accountant acceptable
to Landlord in accordance with GAAP, and certified as accurate and complete by an officer, partner,
or owner of Tenant (or Tenant’s parent, as applicable) (but this requirement will not apply to the
original Tenant for so long as such original Tenant’s parent company is a publicly traded company
listed on NASDAQ or a similar exchange and Tenant’s financial statements or those of its parent are
available on Tenant’s website).

Section 15.03 Commissions. Landlord will pay commissions for negotiating this Lease to the
Broker and the Cooperating Broker in accordance with separate written agreements.

Section 15.04 Memorandum of Lease. Tenant will not record this Lease or
a memorandum of this Lease. Landlord, however, may record a short form or memorandum of this
Lease. Upon Landlord’s request, Tenant will execute Landlord’s form of short form or memorandum of
this Lease. If required by Applicable Law in the opinion of Tenant’s corporate or regulatory
counsel, Tenant may file this lease publicly as a material agreement under the applicable
regulations promulgated by the Securities and Exchange Commission and any other Applicable Law.

[Signatures on following pages.]

Office Lease Agreement, Page 29

 

 

 

[Signature pages to Office Lease Agreement dated july 9, 2010

Landlord:

Briargrove Place, L.L.C., a Texas limited liability company

	 	 	 	 	 	 	 	 	 
	 	 	By: MorningStar Investments, L.L.C., a Texas limited liability
company, its Manager	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

Signature Pages to Office Lease Agreement

 

 

 

[Signature pages to Office Lease Agreement dated july 9, 2010

	 	 	 	 	 	 	 	 	 
	 

	 	Tenant:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	Cambium Learning, Inc., a Delaware corporation
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

Signature Pages to Office Lease Agreement

 

 

 

Annex I

Annex I to Office Lease Agreement dated July 9, 2010 between Briargrove Place, L.L.C.,
a Texas limited liability company, as Landlord, and Cambium Learning , Inc., a Delaware
corporation, as Tenant

Common Provisions

The following terms apply to and govern the construction of the Operative Documents, except to the
extent that an Operative Document expressly provides to the contrary.

1. Rules of Construction. In this Lease and each other Operative Document, (a) a capitalized term
that is not defined in an Operative Document or in this Annex, but is defined in another Operative
Document, will have the meaning ascribed to it in the other Operative Document, (b) headings of
articles, sections, paragraphs, and other subdivisions of an Operative Document (each a
“subdivision”) are for convenience only and do not modify the meaning of the text following a
heading, (c) each Exhibit, Schedule, Attachment, Annex, and other attachment to an Operative
Document (each an “attachment”) is incorporated into the Operative Document to which it is
attached, (d) unless reference is made to another document, a reference to a subdivision or
attachment refers to such subdivision of or attachment to the Operative Document containing the
reference, (e) a capitalized term that refers to another document or an Applicable Law refers to
such document or Applicable Law as renewed, extended, supplemented, amended, or modified at any
time, (f) a word indicating a particular gender includes all genders and a word indicating the
singular include the plural and vice versa, unless the context otherwise requires, (g) the rule of
ejusdem generis will not be applied to limit the generality of any term when followed by specific
examples, and the words “include”, “including”, and similar terms will be construed as if followed
by “without limitation to”, (h) consent of or notice to any Person means prior written consent and
prior written notice, respectively, (i) “year” means a calendar year, unless otherwise specified,
and (j) “party” means a party to such Operative Document.

2. No Implied Waiver. A party’s failure to require the strict performance of any term, covenant,
or condition (each such term, covenant, and condition being a “provision”) or to exercise an
option, right, power, or remedy will not be deemed to be a waiver or a relinquishment any such
provision, option, right, power, or remedy. A party’s waiver of a provision will not be
enforceable or binding on such party unless it is in writing. If a party waives its rights of
redress following an act or omission that constitutes a breach of an Operative Document, such party
may elect not to waive its rights of redress following a subsequent identical or similar act or
omission. A party’s receipt and acceptance of a payment by another party at a time that the paying
party is in default under an Operative Document will not be deemed to be a waiver of such breach by
the party accepting payment, even if the party accepting payment knows of such default. No
endorsement or statement on a check or letter accompanying a payment will result in an accord and
satisfaction, and any party may accept such payment without prejudice to that party’s right to
recover the balance owing or pursue other remedies.

3. Negotiated Documents. The parties and their counsel have reviewed and revised or requested
revisions to each Operative Document or have had an opportunity to do so and have waived such
rights. The rule of construction that any ambiguities are to be resolved against the drafting
party will not apply to the construction or interpretation of any Operative Document.

4. No Fiduciary Relationship or Partnership. Nothing in any Operative Document is intended or
will be construed to create a fiduciary relationship or a partnership, joint venture, or other
joint enterprise between the parties. The parties disclaim any intent to create a fiduciary or
special relationship between themselves under or by reason of the Operative Document, the transactions described in any of them,
or any other documents or agreements referenced in any of them.

Annex I to Office Lease Agreement, Page 1

 

 

 

5. Waiver of Jury Trial. Each party waives its right to a jury trial for any claim or cause
of action based upon or arising out of an Operative Document. The scope of this waiver is
intended to be all encompassing of any and all disputes that might be filed in a court and that
relate to the subject matter of the transaction arising out of the Operative Documents, including
contract claims, tort claims, breach of duty claims, and all other common law and statutory claims.
This waiver is a material inducement to enter into a business relationship and the parties have
each relied on this waiver in entering into the Operative Documents. Each party warrants and
represents that it has reviewed this waiver with its legal counsel and that it knowingly and
voluntarily waives its jury trial rights following consultation with legal counsel. If litigation
occurs, this waiver and the agreement in which it is contained may be filed as a consent to a trial
by the court.

6. Notice. A Communication will be effective if (a) it is in writing and (b) the intended
recipient actually receives it or is deemed to have received it in accordance with this paragraph.
A Communication will be deemed received (x) if sent by local or overnight courier to the
Recipient’s Address, upon delivery or first attempted delivery, (y) if sent by registered or
certified first class mail, return receipt requested, three Business Days after deposit in the
mail, and (z) if sent by fax, upon receipt by the sending party of a confirmation from the
recipient’s fax machine (or receiving device) that the Communication has been received (but if the
time of such receipt is after 5:00 p.m., local time at the place of receipt, then the Communication
will be deemed received on the next Business Day). If, however, a provision in an Operative
Document specifies different methods and requirements regarding a particular Communication, such
provision will control with regard to the specified Communication. “Communication” means a notice,
demand, request, approval, consent, or other communication made from or to a party as required by,
permitted by, or contemplated in an Operative Document. “Recipient’s Address” means the
recipient’s address identified in an Operative Document as the recipient’s notice address (or as
its address, if a separate notice address is not specified), or a new address identified in a
Communication from the recipient to the sending party at least ten days before the date of the
sending party’s Communication.

7. Attorneys’ Fees and Legal Costs. If a party institutes an action or proceeding in court to
enforce any term, covenant, or condition of an Operative Document or for any other judicial remedy,
the losing party will pay Attorney’s Fees to the prevailing party.

8. Calculation of Time Periods. In computing any time period described in an Operative Document,
(a) the day of the act or event after which the period begins to run will not be included and the
last day of the period will be included and (b) if the last day of a period is a Saturday, Sunday,
or legal holiday for national banks, such period will be extended to the first day that is not a
Saturday, Sunday, or legal holiday for national banks.

9. Counterparts. To facilitate execution, an Operative Document may be executed in multiple
identical counterparts. The signature of each party, or the signature of all persons required to
bind a party, need not appear on each counterpart. All counterparts, taken together, will
constitute a single document. The validity of a signature page will not be affected by its
detachment from one counterpart of an Operative Document and attachment to an identical counterpart
of the same Operative Document.

10. Severability. The invalidity or unenforceability of one or more covenants, terms, or
conditions in an Operative Document will not affect the remainder of such Operative Document.

11. Successors and Assigns. The Operative Documents will be binding upon and inure to the benefit
of the parties and their respective heirs, personal representatives, successors, and permitted
assigns.

Annex I to Office Lease Agreement, Page 2

 

 

 

12. Governing Law. The laws of the State of Texas will govern the Operative Documents. The
parties consent to the non-exclusive jurisdiction of any federal or state court of the State of
Texas.

13. Time of the Essence. Time is of the essence as to all obligations created by and all notices
required by the Operative Documents.

14. Final Agreement; Modification. Each Operative Document is the final, complete, and exclusive
agreement of the parties to such Operative Document regarding the subject matter of such Operative
Document. Each Operative Document supersedes all prior and contemporaneous agreements,
representations, and understandings regarding the subject matter of such Operative Document. No
modification of an Operative Document will be binding on the parties to it unless contained in a
writing signed by the parties.

Definitions

The following terms will have the meanings indicated:

1. “Affiliate” means, as to the Person in question, any other Person that directly or indirectly
controls, is controlled by, or is under common control with the Person in question.

2. “Applicable Law” means all laws, ordinances, building codes, rules, and regulations, present or
future, of all Governmental Authorities, including Disability Law and Environmental Law.

3. “Attorneys’ Fees” means the costs and fees of counsel to the parties incurring the same,
excluding costs of in-house counsel (whether or not accounted for as general overhead or
administrative costs), but including (a) printing, duplicating, air freight charges, and other
costs, (b) fees billed for law clerks, paralegals, librarians, and others not admitted to the bar
but performing services under the supervision of an attorney, and (c) costs and fees incurred with
respect to appeals, arbitrations, and bankruptcy proceedings, whether or not any manner of
proceeding is brought with respect to the matter for which such fees and costs were incurred.

4. “Business Days” means Monday through Friday of each week, other than Holidays.

5. “Claim or Loss” means any and all losses, liabilities, damages (whether general, direct,
incidental, consequential, special, punitive, or otherwise denominated), demands, claims,
administrative or legal proceedings, judgments, causes of action, assessments, fines, penalties,
costs of settlement, and other costs (including Attorneys’ Fees and the fees of outside accountants
and environmental consultants), of any and every kind or character, foreseeable and unforeseeable,
liquidated and contingent, proximate and remote, known and unknown.

6. “Control” means possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of a Person, whether through ownership of voting
securities, by contract, or otherwise.

7. “Default Rate” means the lesser of 18% per annum and the maximum interest rate permitted by
Applicable Law.

8. “Disability Law” means Applicable Law pertaining to disabilities, including Tex. Rev. Civ.
Stat. Ann. art. 9102 and the Americans With Disabilities Act of 1990, 42 U.S.C. §§12101-12213.

9. “Effective Date” means the date first set forth on the agreement to which this Annex is
attached.

Annex I to Office Lease Agreement, Page 3

 

 

 

10. “Environmental Law” means Applicable Law pertaining to safety, health, or the environment,
including the Comprehensive Environmental Response, Compensation, and Liability Act of 1980, as
amended by the Superfund Amendments and Reauthorization Act of 1986, and the Resource Conservation
and Recovery Act of 1976, as amended by the Used Oil Recycling Act of 1980, the Solid Waste
Disposal Act Amendments of 1980, and the Hazardous and Solid Waste Amendments of 1984.

11. “GAAP” means generally accepted accounting principles (or such successor to GAAP) in the
United States of America, consistently applied. Accounting terms used in an Operative Document but
not expressly defined will be construed in accordance with GAAP; but the word “cost” means any
cost, expense, payment, or outflow of money, unless otherwise specifically defined.

12. “Governmental Authority” means (1) the United States, a state, a county, a municipality, or
any other political subdivision, (2) an official, instrumentality, or court of the United States or
any such political subdivision, or (3) any other person or entity authorized by the United States
or any such political subdivision to perform executive, legislative, or judicial functions.

13. “Holidays” means (a) New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving,
and Christmas, and the Monday following a Holiday if the Holiday falls on a Sunday and (b) other
days designated by Landlord, so long as such other days are commonly recognized as holidays by
other office buildings in the submarket in which the Project is located.

14. “Indemnify” means to compensate and reimburse a Person for a Claim or Loss incurred; to
provide and pay for the legal defense of such Person against a Claim or Loss in litigation,
arbitration, mediation, or other proceeding with counsel reasonably acceptable to such Person; and
to pay all costs associated with the preparation or prosecution of such defense.

15. “Landlord Party” means each of Landlord and its owners, officers, directors, managers,
members, partners, employees, and agents.

16. “Operative Documents” means the document to which this Annex I is attached; all
existing and future renewals, extensions, amendments, modifications, and supplements to and
restatements of such agreement; all exhibits and attachments to any such agreements; and all
notices and approval requests in connection with any of the foregoing.

17. “Person” means an individual, a corporation, a limited liability company, a partnership, an
unincorporated organization, an association, a joint stock company, a joint venture, a trust, an
estate, a Governmental Authority, or other entity, whether acting in an individual, fiduciary, or
other capacity.

18. “Tenant Party” means each of Tenant and its owners, officers, directors, managers, members,
partners, employees, agents, invitees, and visitors.

Annex I to Office Lease Agreement, Page 4

 

 

 

Exhibit A. Premises

Exhibit A to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

Exhibit A to Office Lease Agreement, Page 1

 

 

 

Exhibit B. Project

Exhibit B to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

A 7.072 acre tract of land situated in the McGimp Bays Survey, Abstract No. 65 and the George D.
Drake Survey, Abstract No. 273, Collin County, Texas; said tract being in the City of Dallas, Block
Numbers 6783, and A/8763 and a portion of the tract of land described in the Special Warranty Deed
to BSDAL I Limited Partnership, as recorded in the County Clerk Number 97-0073116 of the Deed
Records of Collin County, Texas; additional to the City of Dallas, as recorded in Cabinet K, Page
69 of the Map Records of Collin County, Texas; said 7,072 acre tract being more particularly
described as follows:

BEGINNING, at the southeast end of a corner clip with a 1/2-inch iron rod with “Pacheco Koch” cap
set for corner at the intersection of the south line of Gibbons Drive (a 56-foot wide right-of-way)
and the west line of the Dallas North Tollway (a variable width right-of-way);

THENCE, South 00 degrees, 19 minutes, 49 seconds East, leaving said corner clip along the west line
of said Dallas North Tollway, a distance of 444.00 feet to a 1/2-inch iron rod found for an angle
point;

THENCE, South 00 degrees, 20 minutes, 18 seconds East, continuing along said west line of Dallas
North Tollway, a distance of 231.26 feet to a 1/2-inch iron rod with “Pacheco Koch” cap set at the
beginning of a corner clip found at the intersection of the said west line of DALLAS NORTH TOLLWAY
( a variable width right-of-way) and the north line of BRIARGROVE LANE, (a variable width
right-of-way);

THENCE, South 44 degrees, 26 minutes, 05 seconds West, along said corner clip, a distance of 14.20
feet to a 1/2-inch iron rod with “Pacheco Koch” cap set for corner.

THENCE, South 89 degrees, 12 minutes, 28 seconds West, leaving said corner clip along the north
line of said Briargrove Lane, a distance of 419.11 feet to a 1/2-inch iron rod found for corner;
said point being the southwest corner of said Briargrove-Dallas Parkway Additional No. 2;

THENCE, North 00 degrees, 47 minutes, 32 seconds West, a distance of 138.00 feet to a cut “x” on
base of fence found for corner;

THENCE, South 89 degrees, 12 minutes, 28 seconds West, a distance of 15.00 feet to a 1/2-inch iron
rod with “Pacheco Koch” cap found for corner;

THENCE, North 00 degrees, 19 minutes, 49 seconds West, a distance of 560.85 feet to a 1/2-inch
iron rod with “Pacheco Koch” cap found for corner in the south line of said Gibbons Drive.

THENCE, North 88 degrees, 40 minutes, 11 seconds East, along with south line of said Gibbons Drive,
a distance of 435.18 feet to a 1/2-inch iron rod with “Pacheco Koch” cap set at the Northwest end
of a corner clip in the south line of said Gibbons Drive. THENCE, South 45 degrees, 19 minutes, 49
seconds East, along said corner clip a distance of 14.14 feet to the POINT OF BEGINNING;

CONTAINING, 308,071.44 square feet or 7.072 acres of land.

Exhibit B to Office Lease Agreement, Page 1

 

 

 

Exhibit C. Rules and Regulations

Exhibit C to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

1. No Signs. No Tenant Party will exhibit, inscribe, paint, or affix any sign, display, notice, or
other lettering on or in any part of the Project or inside of the Premises, if visible from the
outside, without the prior consent of Landlord in each instance.

2. No Displays. No Tenant Party will use vehicles, balloons, flying objects, mechanical or moving
display devices, bright or flashing lights, or similar devices on or in any part of the Project or
inside of the Premises, if visible from the outside, without the prior consent of Landlord in each
instance.

3. No Noise. No Tenant Party will use sound reproduction or amplification machines or devices
(such as radios, stereos, or televisions) or other noisemaking machines or devices on or in any
part of the Project or inside of the Premises, if audible from the outside, without the prior
consent of Landlord in each instance. No Tenant Party will create or cause any improper,
objectionable, or unpleasant noises or odors in the Project.

4. No Solicitation. No Tenant Party will solicit business in the Common Areas or distribute
handbills or other advertising materials on or in any part of the Project, without the prior
consent of Landlord in each instance.

5. No Weapons. No Tenant Party may possess or use weapons of any kind, concealed or otherwise, on
or in any part of the Project.

6. No Antenna and Dishes. Except as expressly permitted in the Lease, no Tenant Party will erect
any antenna, satellite dish, or similar devices or equipment on or in any part of the Project or
Premises (including roofs), without the prior consent of Landlord in each instance.

7. No Obstructions. No Tenant Party will sweep or throw anything outside of the Premises or into
the corridors, halls, elevator shafts, or stairways. No Tenant Party will obstruct sidewalks,
halls, doorways, vestibules, passageways, stairwells, and similar areas or use any such areas for a
purpose other than ingress and egress to and from the Premises and Project.

8. No Animals. No Tenant Party will keep animals or birds on or in any part of the Project or
inside of the Premises, other than animals for the disabled.

9. No Lodging. No Tenant Party will use any part of the Project or Premises as sleeping or lodging
quarters.

10. No Smoking. No Tenant Party will smoke cigarettes, pipes, cigars, or other tobacco products on
or in any part of the Project or inside of the Premises or within 50 feet of a Project entrance.

11. No Plumbing Obstructions. No Tenant Party will put liquids or other materials or substances
into the lavatories or other plumbing fixtures that may cause damage to the plumbing. Tenant will
pay to repair all damage to plumbing fixture or appliances from misuse by a Tenant Party or
customer or invitee of Tenant.

12. No Food Distribution. Except as expressly permitted in the Lease, (a) no Tenant Party will
prepare or distribute food on or in any part of the Project or inside of the Premise, without the
prior consent of Landlord in each instance and (b) Tenant will not place vending machines or
dispensing machines of a kind in the Premises without prior approval from Landlord in each
instance.

Exhibit C to Office Lease Agreement, Page 1

 

 

 

13. No Window Treatment. Tenant will not install solar screen material, window shades, blinds,
drapes, awnings, window ventilators, or other window treatments without the prior consent of
Landlord in each instance.

14. No Changing Locks or Duplicating Keys. Tenant will not change locks or install additional
locks on doors without the prior consent of Landlord in each instance. No Tenant Party will
duplicate keys procured from Landlord without prior approval of Landlord in each instance.

15. No Contractors Without Landlord Approval. Tenant will not allow any contractor (including
technicians and workmen) to perform work in the Premises until such contractor has provided proof
of insurance satisfactory to Landlord and obtained Landlord’s consent.

16. No Use of Landlord’s Marks. No Tenant Party will use any symbol, design, mark, or insignia
adopted by Landlord for all or any part of the Project in connection with the conduct of Tenant’s
business, without the prior consent of Landlord in each instance.

17. Keep Premises Heated. Tenant will keep the Premises at a temperature sufficiently high to
prevent freezing of water in pipes and fixtures.

18. Requests Should Be In Writing. Landlord may elect not to honor requests by Tenant for building
services, maintenance, or repairs that are not made in writing.

Landlord may rescind any of these rules and regulations and promulgate additional rules and
regulation as in its judgment might be needed for the safety, protection, care, cleanliness, and
operation of the Project, the preservation of good order, and the protection and comfort of the
tenants and their agents, employees, and invitees. Additional rules and regulations, when
delivered to Tenant, will be binding on Tenant in the same manner as if originally herein
proscribed.

Exhibit C to Office Lease Agreement, Page 2

 

 

 

Exhibit D. Insurance Requirements

Exhibit D to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

Insurance Requirements

1. Commercial General Liability Insurance. Tenant will maintain commercial general
liability (“CGL”) insurance on the most current ISO Form CG 00 01 or equivalent to cover liability
arising from occurrences on or about the Premises and acts of Tenant Parties on or about the
Project or Premises, without modification to the separation of insureds provision. Coverage will
be provided with limits of not less than $2,000,000 per occurrence limit, $1,000,000 personal and
advertising injury limit, and $2,000,000 general aggregate limit (to apply separately to the
Premises). Tenant will also maintain umbrella liability insurance in accordance with the following
requirements: (a) such insurance will be excess over and be no less broad than the CGL insurance,
(b) the policy will have the same inception and expiration dates as the CGL insurance or a
nonconcurrency endorsement, and (c) coverage will be provided with a limit of not less than
$10,000,000 per occurrence and in the aggregate.

2. Business Automobile Liability Insurance. Tenant will maintain business automobile
liability insurance with limits of not less than a $ 1,000,000 per occurrence.

3. Property Insurance. Tenant will maintain property insurance on ISO Form CP 10-30 or
equivalent (causes of loss — special form) covering 100% replacement costs on an agreed value basis
of all fixtures, equipment, and personal property located in the Premises, extending to Landlord
and each Security Instrument Holder as their interests may appear, and containing ordinance or law
coverage.

4. Workers’ Compensation/Employer’s Liability Insurance. Tenant will maintain worker’s
compensation insurance and employer’s liability insurance covering liability arising out of
Tenant’s employment of workers and anyone for whom Tenant may be liable for workers’ compensation
claims. Coverage will be provided with limits of not less than (a) statutory limits for workers’
compensation insurance and (b) $1,000,000 per each accident and per disease for employer’s
liability insurance.

5. Requirements Applicable to Insurance. Tenant will cause the following to be satisfied:

a) Status and Rating of Insurance Company. All insurance coverage will be written
through insurance companies admitted to do business in the State in which the Project or
Premises is located and rated upon each renewal not less than A/VIII in the then current
edition of A. M. Best’s Key Rating Guide.

b) Occurrence. All insurance will be written on an occurrence basis. Modified
Occurrence and Claims Made forms are not acceptable.

c) Deductibles/Retention. No insurance will contain a deductible or self-insured
retention in excess of $10,000. Tenant will pay all deductibles and retentions.

d) Notice of Cancellation, Nonrenewal, or Reduction in Limits of Coverage Purchased.
All insurance will contain a requirement that the insurance company notify all additional
insureds at least 30 days before cancellation, non-renewal, or reduction in the limits of
coverage without Landlord’s prior consent.

e) Additional Insured Status. All insurance will be endorsed to name Landlord, the
other Landlord Parties, and each Security Interest Holder as additional insureds, on a form
that does not limit the coverage provided under such policy to any additional insured (i) by
reason of such additional insured’s negligent acts or omissions, (ii) by reason of other
insurance available to such additional insured, or (iii) to claims for which a primary insured has agreed to
indemnify the additional insured.

Exhibit D to Office Lease Agreement, Page 1

 

 

 

f) Waiver of Subrogation. All insurance will provide a waiver of subrogation of
claims against Landlord, the other Landlord Parties, and each Security Interest Holder.

g) Primary and Non-Contributory. All insurance will be primary to and
non-contributory with insurance available to Landlord and the other Landlord Parties,
collectively or individually.

h) Restrictive, Limiting, or Exclusionary Endorsements. No insurance policy will
contain endorsements that restrict, limit, or exclude coverage in a manner that is
inconsistent with these requirements.

6. Evidence of Insurance.

a) Provision of Evidence. Before the Effective Date, Tenant will furnish
certificates of insurance issued by the insurance company or its legal agent to Landlord as
evidence of the insurance coverage required to be maintained by Tenant (each a “Certificate
of Insurance”). Tenant will provide new Certificates of Insurance to Landlord at least 15
days before the expiration dates of the current Certificates of Insurance.

b) Form: All property insurance will be evidenced by ACORD form 24, “Evidence of
Property Insurance” completed and interlineated in a manner satisfactory to Landlord to show
compliance with the requirements of this Exhibit. All liability insurance required by this
Exhibit will be evidenced by ACORD form 25, “Certificate of Insurance” completed and
interlineated in a manner satisfactory to Landlord to show compliance with the requirements
of this Exhibit. Each certificate required by this subsection will specify (i) Landlord as
a certificate holder, (ii) the insured’s name, (iii) the insurance companies affording each
coverage, policy number of each coverage, policy dates of each coverage, and the signature
of an authorized representative of the insurance company, (iv) the producer of the
certificate with the correct address and phone number listed, (v) each Landlord Party’s
additional insured status, (vi) the aggregate limits, (vii) the amount of a deductibles and
retentions, (viii) primary status, and (ix) waivers of subrogation. Tenant will also
provide copies of policies and policy endorsements upon Landlord’s request.

c) No Waiver: Landlord’s failure to demand such certificates or other evidence of
full compliance with these insurance requirements or Landlord’s failure to identify a
deficiency from evidence that is provided will not be construed as a waiver of Tenant’s
obligation to maintain insurance as required by this Exhibit.

Exhibit D to Office Lease Agreement, Page 2

 

 

 

Exhibit E. Acceptance of Premises Memorandum

Exhibit E to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

Acceptance Of Premises Memorandum

Project:17855 Dallas Parkway, Dallas, Texas 75287

Landlord: Briargrove Place, L.L.C., a Texas limited liability company

Tenant:Cambium Learning, Inc., a Texas corporation

Date of Lease: July 9, 2010

Suite: 400

Tenant represents to Landlord and Landlord’s successors, assigns, prospective purchasers, and
prospective lenders that:

1. Landlord has fully completed all construction work and leasehold improvements required of
Landlord under the Lease and any other agreement between Landlord and Tenant concerning the
Premises, and Landlord has no further construction obligations under the Lease.

2. The Project and the Premises are satisfactory to Tenant in all respects and for all purposes
(including being suitable for the permitted use specified in the Lease).

3. Tenant has taken possession of and has accepted the Premises, and the Basic Rent and Additional
Rent are presently accruing in accordance with the covenants, terms, and conditions of the Lease.

4. The Lease term will expire on                     , unless sooner terminated or extended pursuant to
the covenants, terms, and conditions of the Lease.

5. Tenant has obtained a certificate of occupancy for the Premises.

Capitalized terms used and not defined herein will have the meanings ascribed to them in the
Lease.

Executed as of                     .

	 	 	 	 	 	 	 	 	 
	 	 	Tenant:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Cambium Learning, Inc., a Texas corporation	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

Exhibit E to Office Lease Agreement, Page 1

 

 

 

Exhibit F. Construction Agreement

Exhibit F to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

1. Plans.

a) Space Plan. Tenant will cause Omniplan (“Tenant’s Architect”) to prepare a
preliminary space plan of the Premises, showing the location of all partitions, doors,
demising walls, corridors, entrances, exits, the locations of all offices, conference rooms,
computer rooms, mini-service kitchens, reception areas, and file room, and other information
that Tenant’s Architect deems pertinent (the “Proposed Space Plan”). Tenant will deliver
the Proposed Space Plan to Landlord within 15 days after the Effective Date. Within 10 days
after Landlord receives the Proposed Space Plan, Landlord will notify Tenant whether it
approves or disapproves the Proposed Space Plan (a “Space Plan Notice”); and if Landlord
disapproves, Landlord will provide Tenant with its reasons for disapproval and Tenant will
cause Tenant’s Architect to revise and redeliver the Proposed Space Plan to Landlord within
10 days after receipt of a Space Plan Notice. Landlord will not charge any plan review fees
or approval fees other than the Monitoring Fee (defined below). This process will be
repeated until Landlord approves the Proposed Space Plan (as approved, referred to as the
“Space Plan”). If Tenant has not submitted a Proposed Space Plan that Landlord is willing
to approve within 60 days after the Effective Date, Landlord may terminate this Lease. The
initial $0.12 per rentable square foot space planning allowance provided by Landlord to
Tenant’s Architect will not be deducted from the Allowance.

b) Construction Plans. After Landlord approves the Proposed Space Plan, Tenant will
cause Tenant’s Architect to prepare fully dimensioned one-quarter inch scale plans and
specifications in the form of working drawings that (i) are based on and consistent with the
Space Plan, (ii) are complete and show the full detailed scope of all work to be performed
in the Premises, (iii) contain all information and supporting diagrams, schedules, and
related data required for the construction of the work, (iv) comply with Applicable Law, (v)
include a fixture plan and show all partition locations, doors, freestanding workstations,
built-ins, cabinets, reception desks, conference room tables, ceiling plans, carpets and
floor coverings, plumbing locations, air conditioning distribution system and duct work
locations (described in detail in subsection (c) below), lighting plans, telecommunication
and computer cabling plans, security systems, finish schedules, location of electrical,
telephone, and data outlets, and special use areas, if any, that might require modifications
to the Project, (vi) include complete sets of detailed architectural, structural (if
applicable), mechanical, electrical, and plumbing working drawings, and (vii) are in form
and contain instructions and specifications sufficient to obtain a building permit (the
“Proposed Construction Plans”). Tenant will deliver the Proposed Construction Plans to
Landlord within 15 days after the date that Landlord approves the Proposed Space Plan.
Within 10 days after Landlord receives the Proposed Construction Plans, Landlord will notify
Tenant whether it approves or disapproves the Proposed Construction Plans (a “Construction
Plan Notice”); and if Landlord disapproves, Landlord will provide Tenant with its reasons
for disapproval and Tenant will cause Tenant’s Architect to revise and redeliver the
Proposed Construction Plans to Landlord within 10 days after receipt of a Construction Plan
Notice. Landlord will not charge any plan review fees or approval fees other than the
Monitoring Fee. This process will be repeated until Landlord approves the Proposed
Construction Plans (as approved, and including changes modifications agreed to by the
parties, referred to as the “Construction Plans”). If Tenant has not submitted Proposed
Construction Plans that Landlord is willing to approve within 60 days after the Effective
Date (the “Construction Plans Termination Date”), Landlord may terminate this Lease.

Exhibit F to Office Lease Agreement, Page 1

 

 

 

c) HVAC Distribution System Plans. The Proposed Construction Plans will include a
heating, air conditioning, and ventilation distribution system plan prepared by a qualified
engineer (the “HVAC Distribution System Plans”), designed so that the heating, air
conditioning, and ventilation distribution system (the “HVAC Distribution System”), if
constructed in accordance with the HVAC Distribution System Plans, will be capable of
maintaining a temperature of between 70 and 75 degrees Fahrenheit, so long as (i) the HVAC
Core System Requirements are satisfied and (ii) the assumptions made in the HVAC
Distribution System Plans (including assumptions regarding the finish out in the Premises,
equipment located in the Premises, and population density in the Premises (the “HVAC
Distribution System Assumptions”) are satisfied. The HVAC Distribution System Plans will be
part of the Proposed Construction Plans for purposes of subsection (b) above.

d) Governmental Approvals. Upon Landlord’s approval of the Proposed Construction
Plans, Tenant will promptly submit the Construction Plans to the appropriate Governmental
Authority for plan checking and the issuance of a building permit. If the Governmental
Authority requires changes to the Construction Plans as a condition to the issuance of a
building permit, then the Construction Plans Termination Date will be extended by 30 days
and Tenant will make the required changes and submit the revised Construction Plans to
Landlord for Landlord’s approval. The parties will follow the process set forth above until
Landlord approves the revised Construction Plans.

2. Construction.

a) Delivery Condition. Landlord will cause the existing HVAC system, including
existing VAV terminal units (but excluding ductwork and controls); lighting in existing
restrooms; fire sprinkler system; exterior windows; exterior doors; and plumbing system in
the Premises to be in good working order on the Effective Date (the “Landlord Work”). The
foregoing does not limit Landlord’s ongoing repair and maintenance obligations as set forth
in Section 6.01 of the Lease. Other than the items listed as part of the Landlord Work,
Landlord is delivering the Premises to Tenant with other items that Tenant may use and
incorporate into the Premises at Tenant’s option, but in their as-is condition and without
warranty as to the condition or state of repair or usefulness of these items. These items
include existing carpeting, ceiling tiles, paint and wall covering, interior partitions and
walls, interior doors, carpeting and floor covering, floor and ceiling molding, grilles, and
lighting and light fixtures that are in the Premises on the Effective Date.

b) Tenant to Perform Work. Tenant will cause a contractor selected by Tenant and
approved by Landlord (such approval not to be unreasonably withheld) (the “General
Contractor”) to construct the improvements described in and contemplated by the Construction
Plans (the “Work”) in a good and workmanlike manner and in accordance with Applicable Law.
Tenant’s contract with its general contractor will provide for retainage in accordance with
Chapter 53 of the Texas Property Code, and Tenant satisfy the retainage provisions of the
Texas Property Code. During the construction of the Work, the parties will schedule job
progress meetings frequently enough to permit regular monitoring of scheduling and status of
the Work. Tenant’s construction representative will furnish Landlord’s construction
representative reasonable prior notice of those meetings and will require representatives of
the general contractor and all major subcontractors to attend. Tenant will secure all
necessary licenses and permits before commencing the Work.

Exhibit F to Office Lease Agreement, Page 2

 

 

 

c) Changes Orders. Tenant will not make or permit changes to the Construction Plans
without Landlord’s consent (other than minor changes required to conform the Construction
Plans to on-the-ground conditions). Tenant may request that Landlord approve changes to the
Construction Plans before or during construction (each a “Change Request”). Landlord will
grant or deny its consent to a Change Request within three Business Days after Landlord’s
receipt of the Change Request accompanied by all information and drawings required by
Landlord. Landlord will not charge a fee for review or approvals of any Change Requests
other than the Monitoring Fee. Tenant will pay for all redrawing and redrafting to the
Construction Plans whether or not Landlord approves a Change Request. Tenant will also pay
costs arising out of changes to the Construction Plans, including costs of increased scope
of work.

3. Cost of the Work.

a) Tenant Responsible for Costs. Tenant will pay all costs incurred to perform the
Work or arising out of the Work, including the contract sum payable to the General
Contractor, other costs and fees payable to the General Contractor, Tenant’s Architect, and
other contractors, subcontractors, and materialmen in connection with the Work, and all
licensing and permitting fees. Tenant will also pay a construction monitoring fee (the
“Monitoring Fee”) to Landlord equal to 1% of the Hard Costs of the Work, which Landlord may
advance to itself from the Allowance. All costs described in this paragraph referred to as
the “Construction Costs” will be considered Rent.

b) Allowance. Landlord will provide Tenant with an allowance of up to $1,085,948.00
(being $33.00 per rentable square foot of the Premises plus an additional $5,000 for sound
attenuation) (the “Allowance”) to be applied as follows:

i) Elective Amount. “Elective Amount” means $327,560 (being $10.00 per
rentable square foot of the Premises). Tenant may apply the Elective Amounts only
to the following: (A) purchase and installation of telephony and computer equipment
and related cabling, (B) move-related expenses, (E) security systems, communication
equipment, power upgrades, and other improvements or equipment for Tenant’s
functional occupancy, (F) consulting fees for site selection, economic incentives,
technology, lighting, and acoustical analysis, (G) legal fees in connection with the
Lease and Premises, (H) purchase and installation of furniture, fixtures, and
equipment for the Premises, and (I) the Monitoring Fee. If any of the Elective
Amount remains after payment of the costs permitted in this subsection (the
“Remaining Elective Amount”), then beginning on the 15th month after the
Rent Commencement Date (i.e., the first month following the rental abatement
period), Landlord will credit the Remaining Elective Amount toward Basic Rent each
month, but such credits will not exceed 30% of Basic Rent in any month.

ii) Non-Elective Amount. “Non-Elective Amount” means the entire amount of
the Allowance less the Elective Amount. Tenant may apply the Non-Elective
Amounts only to the following: (1) construction costs (both materials and labor) of
the Work (“Hard Costs”), (2) any necessary municipal permits and application fees
and other permits in connection with the Work, (3) space planning, architectural,
engineering, and design costs in connection with the Work, and (4) a construction
management fee in the amount of (but not more than) 4% of the Hard Costs, payable at
Tenant’s direction to a third-party construction manager selected by Tenant.
Landlord approves Grubb & Ellis as Tenant’s third-party construction manager, and
will have the right to approve any replacement third-party construction manager, in
Landlord’s reasonable discretion. (No construction manager selected by Tenant,
including Grubb & Ellis, is a third-party beneficiary to this Lease.) Any of the
Non-Elective Amount that remains after payment of the Construction Costs will be the
property of Landlord, and Tenant will not be entitled to any offsets or credits
against such amount. Landlord will own (and Tenant will not remove from the
Premises) the fixtures, equipment, appliances, furnishings, or
other property constructed as part of the Work, even if paid for with the Allowance.
However, if this Lease has not terminated before the end of the initial Term for
any reason, then as of the end of the initial Term, Tenant will own all furniture
and equipment (to the extent not incorporated into the real property) purchased (in
whole or in part) with the Elective Amount.

Exhibit F to Office Lease Agreement, Page 3

 

 

 

4. Completion.

a) Requirements Upon Completion of the Work. Upon completion of the Work, Tenant
will i) notify Landlord in writing that the Work is complete and ready for Landlord’s
review, ii) deliver to Landlord a copy of Tenant’s certificate of occupancy for the
Premises, and iii) provide lien waivers from the General Contractor and each contractor or
subcontractor that performed any part of the Work (or other documentation acceptable to
Landlord that all bills have been paid).

b) Landlord Inspection. Within five Business Days after the date that Tenant has
satisfied all of the conditions set forth in subsection (c) above, Landlord will inspect the
Work and will do one of the following: (i) confirm that the Work is complete, (ii) notify
Tenant that the Work is not complete and provide Tenant with a list of the items that Tenant
must complete, in which case Tenant will complete such items and again notify Landlord in
writing that the Work are complete and ready for Landlord’s review, or (iii) if the Work is
substantially complete other than minor items that will not interfere with Tenant’s use and
occupancy of the Premises, prepare a punchlist (the “Punchlist”) of items that Tenant must
complete before the Work will be considered complete, in which case Tenant will complete
such Punchlist items within 30 days after the Punchlist is delivered to Tenant and again
notify Landlord in writing that the Work is complete and ready for Landlord’s review.

c) Payment of Part of Allowance. One time prior to completion of the Work, Landlord
will pay part of the Non-Elective Amount of the Allowance (other than the construction
management fee) to Tenant if the following conditions are satisfied: Tenant may deliver to
Landlord the following (an “Funding Request”): (i) a statement on the current AIA form of
Application and Certificate for Payment (or a form containing the same information),
itemizing each amount paid through the date of the Funding Request for which reimbursement
is requested (an “Application for Payment”) (and the Application for Payment must reflect a
10% retainage for the protection of lien claimants as contemplated in Sections 53.101 to
53.105 of the Texas Property Code); (ii) a list of all subcontractors and materialmen that
furnished labor or materials covered by the Application for Payment; (iii) invoices and
other evidence for all labor and materials used or incorporated in the portion of the Work
covered by the Application for Payment; and (iv) down date lien waivers from the General
Contractor and from each subcontractor and materialman listed on the Application for
Payment. Within 30 days after receipt and approval by Landlord of the Funding Request, if
the Work for which reimbursement is requested has been performed in accordance with the
Construction Plans, Landlord will pay Tenant the amount requested in the Application for
Payment. In taking action on a Funding Request, Landlord may rely on the accuracy and
completeness of the information furnished by Tenant.

d) Payment of Allowance. Within 30 days after the last to occur of (i) satisfaction
of all conditions listed in subsection (a) above, (ii) confirmation from Landlord that the
Work is complete in accordance with the Construction Plans, subject to items listed on the
Punchlist (if any), and (ii) Tenant’s occupancy of substantially all of the Premises,
Landlord will reimburse Tenant for all Construction Costs and other costs to the extent
permitted by Section 3(b) incurred by Tenant (as evidenced by receipts or invoices therefor)
up to but not in excess of the amount of the Allowance.

Exhibit F to Office Lease Agreement, Page 4

 

 

 

e) Post-Construction Obligations. Tenant will submit to Landlord Within 30 days
after the date that Tenant has satisfied all conditions listed in subsection (a) and b),
Tenant will deliver to Landlord (i) a set of as-built drawings for the Premises and (ii) a
copy of all warranties, guarantees, operating manuals, and information relating to the
improvements, equipment, and systems in the Premises.

f) Completion Date. Tenant will cause all Work to be substantially complete no
later than 30 days after the Rent Commencement Date subject to delays that are beyond the
control of Tenant.

5. Insurance. Tenant will cause each Tenant Contractor to maintain insurance required by
and comply with the covenants, terms, and conditions of the insurance provisions of the Lease
(substituting the name of the Tenant Contractor for “Tenant” and substituting builder’s risk
insurance for property insurance). In any particular instance, however, Landlord may elect to
waive one or more of such requirements as the circumstances warrant. Landlord may require such
contractor to deliver evidence of insurance as required by the insurance provisions of the Lease to
Landlord before entering the Premises or commencing any work in the Premises.

6. Other Contractor Obligations. Tenant will cause each Tenant Contractor and each of
their subcontractors, laborers, and materialmen to comply with all rules and regulations that
Landlord adopts for the safety, care, operation, and cleanliness of worksites in the Project.
Tenant will cause each Tenant Contractor to warrant to Tenant and Landlord that its work will be
free from any defects in workmanship and materials for at least one year from the date of
completion.

7. Landlord’s Reviews. Landlord and its employees, contractors, and agents (each an
“Inspecting Party”) inspect work performed by or for Tenant (“Inspected Work”) and review plans,
specifications, designs, drawings, and renderings prepared by or for Tenant (“Reviewed Materials”)
solely to protect Landlord’s interest. No Inspecting Party will be liable to Tenant for, and
Tenant releases each Inspecting Party from, every Claim or Loss (even if the released party is
negligent or would otherwise be strictly liable under Applicable Law) caused by or arising out
of the failure of Inspected Work or Reviewed Materials to comply with good building practices,
Landlord’s standards, or Applicable Law.

8. Construction Representatives. The following are the initial parties’ representatives
for coordination of construction and approval of change orders. To expedite approvals of change
orders, Landlord’s Representative (but no other person) is authorized to sign change orders
changing the Construction Plans and receipt other document on behalf of Landlord related to the
Work. Either party may change its representative by delivering notice of the change to the other
party.

	 	 	 
	Tenant’s Representative:

Name: Jim Dyer

Phone: 214-608-6210

Email: james.dyer@grubb-ellis.com

	 	Landlord’s Representative:

Name: Almira Tinkel

Phone: 972-233-3216

Email: almirat@csmdallas.com

Exhibit F to Office Lease Agreement, Page 5

 

 

 

Exhibit G. Option to Extend

Exhibit G to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

Option to Extend

1. Right to Extend. Landlord grants to Tenant the option to extend the Term for 2
consecutive extension terms (each an “Extension Term”) of sixty months each, on the same covenants,
terms, and conditions contained in the Lease, except that Basic Rent for each Extension Term will
be determined as set forth in Section 3. The first Extension Term, if exercised, will commence on
January 1, 2019 and expire on December 31, 2023. The second Extension Term, if exercised, will
commence on January 1, 2024 and expire on December 31, 2028.

2. Conditions to Exercise of the Extension Option. The following are conditions to the
effectiveness of Tenant’s exercise of each Extension Term Extension Term:

a) Tenant delivers a notice to Landlord exercising the applicable Extension Term (an
“Extension Notice”) (i) on or before Tuesday, March 6, 2018 (but not before Wednesday,
December 6, 2017) with respect to the first Extension Term and (ii) on or before Monday,
March 6, 2023 (but not before Tuesday, December 6, 2022) with respect to the second
Extension Term. If Tenant fails to timely provide Landlord with the Extension Notice,
Tenant will be deemed to have elected not to extend the Term. Tenant’s failure to timely
send an Extension Notice will constitute a material and incurable failure to satisfy a
condition precedent to the vesting of the right to extend the Lease, and Tenant waives any
right to claim relief from forfeiture or any other equitable relief from the consequences of
its untimely exercise of an extension right.

b) On the date of the Extension Notice and on the first day of the applicable Extension
Term, (i) the Lease is in full force and effect and (ii) no Event of Default is continuing
and Tenant is not in monetary default under the Lease.

3. Rent. Basic Rent for each Extension Term will be set on the first day of the
applicable Extension Term to an amount equal to the Extension Rate. “Extension Rate” means
the rental amount, expressed as dollars per square foot of the Premises per year that is the
prevailing rental rate per square foot payable by renewal tenants having a credit standing
substantially similar to that of Tenant, for properties of equivalent quality, size,
utility, and location as the Premises, and located in the same submarket as the Project and
leased for a term approximately equal to the applicable Extension Term, taking into
consideration base year costs, any tenant inducements (such as allowances and rental
abatement periods), and brokerage commissions, all as determined by Landlord. The Extension
Rate may include periodic adjustments. Within 60 days after receipt of an Extension Notice,
Landlord will notify Tenant of Landlord’s determination of the Extension Rate for the
Extension Term. As part of an extension, Landlord will offer concessions that are market
for a renewing tenant, such as an updated Base Year, improvement Allowance, market rental
abatements, and Tenant brokerage commissions, and such concessions will be taken into
account by Landlord as part of the determination of the Extension Rate. Within 30 days
after receipt of such notice (the “Tenant Response Period”), Tenant will notify Landlord
whether it accepts or rejects Landlord’s determination the Extension Rate for the Extension
Term. If Tenant notifies Landlord before the end of the Tenant Response Period of its
acceptance of the Extension Rate for the Extension Term, the Lease will be extended as
provided herein. Otherwise, the Lease will terminate on the then-current Expiration Date.
During the Tenant Response Period, upon Tenant’s request, Landlord will (or will cause its
broker to) meet with Tenant (which may be by telephone or other electronic means of
communication) to discuss Landlord’s determination of the Extension Rate and to consider any
counter-proposals by Tenant. Landlord will not be obligated to accept any such
counter-proposal, and Tenant’s sole remedy if Tenant is unwilling to extend for an Extension
Term at the Extension Rate is to elect not to extend for such Extension Term.

Exhibit G to Office Lease Agreement, Page 1

 

 

 

Exhibit H. Parking Agreement

Exhibit H to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

Parking

1. License of Parking Spaces. Landlord licenses to Tenant, for the Term, the right to use
154 parking spaces in the Parking Areas on an unreserved, non-exclusive, and as-available basis, in
common with others and an additional 10 covered parking spaces in the spaces marked on Schedule
I to this Exhibit, located in the Parking Areas on a reserved basis. “Parking Areas” means all
parking garages (if any) and surface parking lots that are part of the Project. By notice to
Tenant, may change the location of reserved parking spaces (but may not change such location in
order to give Tenant’s reserved spaces to another tenant). If the size of the Premises decreases,
the number of unreserved parking spaces licensed to Tenant will decrease such that Tenant will
license parking space for each 200 square feet of rentable area in the Premises (and for each 16
parking spaces available to Tenant, 15 will be unreserved and non-exclusive and one will be
reserved). If the size of the Premises increases, the number of unreserved parking spaces licensed
to Tenant will increase by one additional unreserved and non-exclusive parking space for each
additional 250 square feet of rentable area in the Premises (none of which will be reserved).

2. Parking Rental. During the initial Term, Landlord will not charge rent or a fee for
parking spaces (whether reserved or non-reserved). During the Extension Terms, Landlord may charge
a monthly fee or rental rate for each reserved parking space (but will not charge rent or a fee for
unreserved parking spaces). With regard to reserved spaces during Extension Terms: Landlord will
deliver notice to Tenant at least 30 days before a change in the parking rates. Tenant will pay
parking fees (a) at the same time as Basic Rent is due and (b) to Landlord or to such Person (for
example, the manager of the Parking Areas) as Landlord may direct.

3. Validation. Tenant may validate visitor parking by any methods that Landlord approves
at the validation rate applicable to visitor parking.

4. Parking Stickers and Cards. Parking stickers or any other device or form of
identification supplied by Landlord will remain the property of Landlord and are not transferable.
Tenant will pay a replacement charge in the amount posted from time to time by Landlord for loss of
a parking card or parking sticker.

5. Damage to or Condemnation of Parking Areas. Landlord’s failure or inability to provide
parking spaces to Tenant due to damage, repairs, casualty, or condemnation will not be deemed to be
a default by Landlord or permit Tenant to terminate this Lease, either in whole or in part.
Tenant’s obligation to pay fees (if any) for parking spaces that are not provided by Landlord will
be abated for so long as Tenant does not have the use of such parking spaces and such abatement
will constitute full settlement of all claims that Tenant might otherwise have against Landlord.

6. Rules and Regulations. Landlord may deny access to the Parking Areas to any person that
does not comply with Parking Area rules and regulations, including a sticker or other
identification system established by Landlord. The following rules and regulations are in effect
until Landlord delivers notice to Tenant of a change. Landlord may modify these rules and
regulations and adopt other rules and regulations that it deems necessary or convenient.

a) Cars must be parked entirely within the stall lines painted on the floor.

b) All directional signs and arrows must be observed.

c) The speed limit is five miles per hour.

d) Parking is prohibited in areas not striped for parking, aisles, areas where “no parking” signs
are posted, in cross hatched areas, and in such other areas as may be designated by Landlord or
Landlord’s agents, including areas designated as “Visitor Parking”, “Valet Parking,” or reserved
spaces not licensed under this Lease.

e) Every parker is required to park and lock his or her own car. All responsibility for damage to
cars or persons or loss of personal possessions is assumed by the parker.

f) No intermediate or full size cars will be parked in parking spaces limited to compact cars.

7. Default. If Tenant does not pay fees required under this Exhibit, then in addition to
its other remedies for a Tenant default, Landlord may terminate Tenant’s rights to use the Parking
Areas. Landlord may refuse to permit a Person who violates the parking rules to park in the
Parking Areas. No such refusal or removal will create a liability on Landlord or be deemed to
interfere with Tenant’s right to quiet possession of the Premises.

Exhibit H to Office Lease Agreement, Page 1

 

 

 

Schedule I

Exhibit H to Office Lease Agreement, Page 2

 

 

 

Exhibit I

Signage

Exhibit I to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

Signage Criteria

1. Tenant Responsible for Permits, Compliance with Law, and Repairing Damage. Tenant will
obtain all permits and approvals required by Applicable Law before installing signage. Tenant will
ensure that its signage complies with all sign ordinances and other Applicable Law. Neither
Landlord’s approval of proposed signage nor conformance with the criteria in this Exhibit implies
conformance with sign ordinances or other Applicable Law. Tenant will repair damage to the
building incurred as a result of signage installation or removal.

2. Exterior Signage Criteria. Before installing signage, Tenant must submit drawings to
Landlord, including the following details: type of materials, color and finish, type of
illumination (if any), and mounting method. Only Tenant’s name, trade name, and logo may appear on
the face of the signage. If signage will be illuminated, drawings must include fascia cross
section showing electrical connections. Tenant may not install signage until Tenant’s drawings
have been approved by Landlord.

3. Exterior Signage Criteria. The approximate location for Tenant’s building signage is
shown on the page attached to the this Exhibit.

Exhibit I to Office Lease Agreement, Page 1

 

 

 

Exhibit I to Office Lease Agreement, Page 2

 

 

 

Exhibit J

Cleaning Specifications

Exhibit J to Office Lease Agreement dated July 9, 2010 between Briargrove Place,
L.L.C., a Texas limited liability company, as Landlord, and Cambium Learning, Inc., a Texas
corporation, as Tenant

Cleaning services are provided five days per week unless otherwise specified. Cleaning hours are
Sunday through Thursday between 6:00 PM and before 7:00 AM the next day. The cleaning
specifications are as follows:

	 	I.	 	Office Areas

	 	A.	 	Daily

	 	1.	 	Dust and wipe all furniture, fixtures, shelving,
and cabinets. Desks with loose papers on the top will not be cleared.

	 	2.	 	Spot clean vertical desk surfaces.

	 
	 	3.	 	Sweep hardwood floors.

	 	4.	 	Empty office wastepaper. Replace liners if
necessary.

	 	5.	 	Vacuum carpet in offices, without moving furniture
or other items.

	 	6.	 	Dust and spot mop resilient tile floor areas.

	 
	 	7.	 	Spot clean surfaces, columns, and glass partitions.

	 	8.	 	Wipe clean metal door knobs, light switch plates,
mirrors, kick plates, door saddles, and directional signs.

	 	B.	 	Weekly

	 	1.	 	Dust and clean paneling, door trim, ornamental
work, grilles, ventilating louvers, baseboards, and doors.

	 	C.	 	Monthly

	 	1.	 	Complete high dusting.

	 	2.	 	Dust and wipe air diffusers and ceiling
ventilators.

	 	D.	 	Quarterly

	 	1.	 	Scrub and refinish all resilient tile floor areas.

	 
	 	2.	 	Buff resilient tile floors.

	 	II.	 	Restrooms

	 	A.	 	Daily

	 	1.	 	Sweep and wash restroom floors with disinfectant.

	 	2.	 	Wash and disinfect basins, toilet bowls, and
urinals.

	 	3.	 	Clean and disinfect both sides of every toilet
seat.

	 	4.	 	Wipe down mirrors, shelves, plumbing work, bright
work, and enamel surfaces.

	 	5.	 	Remove spots and splashes from all wall areas, door
frames, and light switches.

	 	6.	 	Empty and clean waste receptacles.

	 	7.	 	Fill soap, toilet paper, toilet seat covers, towel,
and sanitary napkin/tampon dispensers.

	 	8.	 	Clean tile walls and dividing partitions.

	 
	 	9.	 	Dust top of toilet partitions.

	 	B.	 	Weekly

	 	1.	 	Wash and disinfect tile walls and dividing
partitions.

	 	C.	 	Monthly

	 	1.	 	Scrub floors.

Exhibit J to Office Lease Agreement, Page 1

 

 

 

	 	III.	 	Common Areas

	 	A.	 	Daily

	 	1.	 	Sweep or dust mop hard surface floors.

	 	2.	 	Vacuum and spot clean.

	 	3.	 	Wipe and wash main lobby floors.

	 	4.	 	Spot clean walls.

	 	5.	 	Dust floor to ceiling, as needed.

	 	6.	 	Clean entrance glass and entrance doors.

	 	7.	 	Polish thresh plates.

	 	8.	 	Empty waste receptacles.

	 	9.	 	Sanitize and polish water fountains.

	 	10.	 	Dust lobby furniture.

	 	11.	 	Remove trash in stairwells.

	 	12.	 	Spot clean interior glass.

	 	B.	 	Weekly

	 	1.	 	Dust and clean paneling, grilles, ventilating
louvers, stairwell banisters, baseboards, and doors.

	 	2.	 	Sweep and mop stairwells.

	 	C.	 	Monthly

	 	1.	 	Complete high dusting.

	 	2.	 	Dust and wipe air diffusers and ceiling
ventilators.

	 	D.	 	Quarterly

	 	1.	 	Scrub and refinish resilient tile floor areas.

	 	2.	 	Buff resilient tile floors.

	 	IV.	 	Elevators

	 	A.	 	Daily

	 	1.	 	Clean and vacuum floors.
	 
	 	2.	 	Clean walls.
	 
	 	3.	 	Clean doors and scrub tracks.

	 	B.	 	Weekly

	 	1.	 	Polish cab walls, control panels, and doors.

	 	2.	 	Polish cab walls, control panels, and doors of
garage elevator cabs.

	 	C.	 	Monthly

	 	1.	 	Scrub floors of the garage elevator cabs.

	 	D.	 	Semi-Annually

	 	1.	 	Strip and finish resilient floor in garage elevator
cabs.

Exhibit J to Office Lease Agreement, Page 2

 

 

 

Exhibit K

Form of confidentiality Agreement

Exhibit K to Office Lease dated July 9, 2010 between Briargrove Place, L.L.C., a Texas
limited liability company, as Landlord, and Cambium Learning, Inc., a Texas corporation, as
Tenant

CONFIDENTIALITY AGREEMENT

 

 

                    , 20        

 

 

 

	 	Re: 	 	Lease Agreement (the “Lease”) dated                      (the “Effective Date”) between
                                        , a                      (“Landlord”), and
                                        , a                      (“Tenant”), covering approximately
                     square feet having an address of                      in
                                         (the “Project”)

Ladies and Gentlemen:

Tenant has requested that Landlord permit you, as Tenant’s auditor, to examine or audit books
or records relating to operating expenses payable by Tenant pursuant to the Lease (the “Audit”).
Landlord is willing to make such information available to you, but only upon your agreement to the
covenants, terms, and conditions set forth in this letter.

Upon execution of this letter by you, Landlord will permit you and your representatives to
examine Evaluation Materials at Landlord’s or its property manager’s offices. “Evaluation
Material” means (a) information provided by a Landlord Party to you in connection with the Audit,
(b) specific dollar amounts of Project operating expenses, (c) the methodology for computing
Tenant’s share of operating expenses and “gross up” calculations, (d) the methodologies and
procedures of the bookkeeping and accounting practices of Landlord, (e) the services provided by
Landlord relating to items of operating expenses, (f) the amount of and methodology for computing
management fees, (g) the level, amount, and calculation of any chargebacks, credits, and offsets to
operating expenses, (h) the amounts, terms, or basis of the resolution of any disputes arising out
of the Audit between the parties, and (i) all data, audit opinions, analyses, compilations,
studies, or other documents, whether prepared by you or others, that contain or otherwise reflect
or are based in whole or in part on such information. Notwithstanding the foregoing, Evaluation
Material shall not include annual statements, any accompanying information delivered with the
annual statements, and any information in the Lease. “Landlord Party” means Landlord and its
attorneys, accountants, property managers, financial advisors, and employees.

As both a covenant and a condition to Landlord furnishing Evaluation Material to you, you
agree that you will not, and you will cause your employees, officers, owners, agents, partners, and
other representatives (collectively, “your representatives”) not to do any of the following for a
period of three years after the date of this letter:

(1) disclose, disseminate, or divulge, directly or indirectly, in whole or in part, to any
person or entity other than Tenant, Tenant’s attorneys, and tribunals, arbitration panels, and
mediators in connection with any litigation, arbitration, or mediation based on this letter, any
Confidential Information,

Exhibit K to Office Lease Agreement, Page 1

 

 

 

(2) make copies, extracts, or other reproductions of any Confidential Information except as
necessary to assist you in the Audit, or

(3) use any Confidential Information for any purpose (including, without limitation, any audit
by any other tenant of the Project or any other properties owned by Landlord or its affiliates)
other than to conduct the Audit for Tenant.

“Confidential Information” means all Evaluation Material other than information that (a) is
generally available to the public other than as a result of a disclosure by you or your
representatives, (b) was in your possession on what you reasonably believed to be a
non-confidential basis before its disclosure to you by a Landlord Party, or (c) becomes available
to you on what you reasonably believe to be a non-confidential basis from a source other than a
Landlord Party; provided that in the case of (b) or (c), the source of such information was not to
your knowledge bound by a confidentiality agreement with a Landlord Party or otherwise prohibited
from transmitting the information to you, Tenant, or your representatives by a contractual, legal,
or fiduciary obligation.

Promptly upon the conclusion of the Audit, you will deliver all Evaluation Material to
Landlord. You may retain any copies of Evaluation Material made by you as permitted by this
letter, but all retained information will continue to be subject to the terms of this letter.

You acknowledge that damages might be incalculable or an insufficient remedy for any breach of
this letter by you or your representatives. Accordingly, of you or your representatives breach or
threaten to breach the terms of his letter, then Landlord will be entitled to equitable relief,
including injunctive relief and specific performance (in addition to any other remedies that it may
have at law or in equity).

If you or your representatives are requested or required (by oral questions, interrogatories,
requests for information or documents, subpoena, civil investigative demand, or similar process) to
disclose any Confidential Information, you will promptly notify Landlord so that it may seek an
appropriate protective order or other remedy. If Landlord does not obtain such protective order or
other remedy, you may furnish that portion (and only that portion) of the Confidential Information
that, in the opinion of your counsel, you are legally compelled to disclose and you will promptly
notify Landlord of which portion of the Confidential Information you have furnished.

The invalidity or unenforceability of any provision of this letter will not affect the
validity or enforceability of any other provisions of this letter.

Please direct all communications regarding the Audit to Landlord in care of
                    .

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

Agreed to this
 _____ 

day

of                     ,
 _____ 

	 	 	 	 	 	 	 
	 	 	 
	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

Exhibit K to Office Lease Agreement, Page 2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00175-of-00352.parquet"}]]