Document:

Lease

    EXHIBIT
      10.14

     

     

     

     

     

     

    LEASE

     

    GATEWAY
      RIDGECREST, INC.,

    a
      California corporation,

    Landlord,

     

    and

    PETRO
      RESOURCES CORPORATION

    a
      Delaware corporation,

    Tenant

     

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    
      	 	
              TABLE
                OF CONTENTS

            	 
	 	 	 
	 	 	
              PAGE

            
	 	 	 
	
              1.

            	
              USE
                AND RESTRICTIONS ON USE

            	
              1

            
	
              2.

            	
              TERM

            	
              1

            
	
              3.

            	
              RENT

            	
              2

            
	
              4.

            	
              RENT
                ADJUSTMENTS

            	
              2

            
	
              5.

            	
              SECURITY
                DEPOSIT

            	
              5

            
	
              6.

            	
              ALTERATIONS

            	
              5

            
	
              7.

            	
              REPAIR

            	
              6

            
	
              8.

            	
              LIENS

            	
              7

            
	
              9.

            	
              ASSIGNMENT
                AND SUBLETTING

            	
              7

            
	
              10.

            	
              INDEMNIFICATION

            	
              9

            
	
              11.

            	
              INSURANCE

            	
              9

            
	
              12.

            	
              WAIVER
                OF SUBROGATION

            	
              10

            
	
              13.

            	
              SERVICES
                AND UTILITIES

            	
              10

            
	
              14.

            	
              HOLDING
                OVER

            	
              11

            
	
              15.

            	
              SUBORDINATION

            	
              11

            
	
              16.

            	
              RULES
                AND REGULATIONS

            	
              11

            
	
              17.

            	
              REENTRY
                BY LANDLORD

            	
              11

            
	
              18.

            	
              DEFAULT

            	
              12

            
	
              19.

            	
              REMEDIES

            	
              12

            
	
              20.

            	
              TENANT’S
                BANKRUPTCY OR INSOLVENCY

            	
              15

            
	
              21.

            	
              QUIET
                ENJOYMENT

            	
              16

            
	
              22.

            	
              CASUALTY

            	
              16

            
	
              23.

            	
              EMINENT
                DOMAIN

            	
              17

            
	
              24.

            	
              SALE
                BY LANDLORD

            	
              17

            
	
              25.

            	
              ESTOPPEL
                CERTIFICATES

            	
              17

            
	
              26.

            	
              SURRENDER
                OF PREMISES

            	
              17

            
	
              27.

            	
              NOTICES

            	
              18

            
	
              28.

            	
              TAXES
                PAYABLE BY TENANT

            	
              18

            
	
              29.

            	
              RELOCATION
                OF TENANT

            	
              19

            
	
              30.

            	
              PARKING

            	
              19

            
	
              31.

            	
              DEFINED
                TERMS AND HEADINGS

            	
              20

            
	
              32.

            	
              TENANT’S
                AUTHORITY

            	
              20

            
	
              33.

            	
              FINANCIAL
                STATEMENTS AND CREDIT REPORTS

            	
              21

            
	
              34.

            	
              COMMISSIONS

            	
              21

            
	
              35.

            	
              TIME
                AND APPLICABLE LAW

            	
              21

            

    

    
      
        
        

      

      
        i

        
          

        

      

      
        
        

      

    

    

    
      	 	
              TABLE
                OF CONTENTS

              (continued)

            	 
	 	 	 
	 	 	
              PAGE

            
	 	 	 
	
              36.

            	
              SUCCESSORS
                AND ASSIGNS

            	
              21

            
	
              37.

            	
              ENTIRE
                AGREEMENT

            	
              21

            
	
              38.

            	
              EXAMINATION
                NOT OPTION

            	
              21

            
	
              39.

            	
              RECORDATION

            	
              21

            
	
              40.

            	
              RENEWAL
                OPTION

            	
              21

            
	
              41.

            	
              EXPANSION
                OPTION

            	
              22

            
	
              42.

            	
              LIMITATION
                OF LIABILITY

            	
              23

            

    

     

     

    EXHIBIT
      A
      - FLOOR PLAN DEPICTING THE PREMISES

    EXHIBIT
      A-1 - SITE PLAN

    EXHIBIT
      B
      - INITIAL ALTERATIONS

    EXHIBIT
      C
      - COMMENCEMENT DATE MEMORANDUM

    EXHIBIT
      D
      - RULES AND REGULATIONS

    
      
        
        

      

      
        ii

        
          

        

      

      
        
        

      

    

    GROSS
      (BY) OFFICE LEASE

     

    REFERENCE
      PAGES

     

    
      	
              BUILDING:

            	
              777
                Post Oak Boulevard

              Houston,
                Texas 77056

            
	 	 
	
              LANDLORD:

            	
              Gateway
                Ridgecrest, Inc.,

              a
                California corporation

            
	 	 
	
              LANDLORD’S
                ADDRESS:

            	
              Gateway
                Ridgecrest, Inc.,

              c/o
                RREEF Management Company

              1406
                Halsey Way, Suite 110

              Carrollton,
                TX 75007

              Attention:
                District Manager (Post Oak, Houston)

               

              With
                a copy to:

               

              RREEF
                Management Company

              777
                Post Oak Boulevard

              Houston,
                Texas 77056

              Attention:
                Property Manager

               

            
	
              WIRE
                INSTRUCTIONS AND/OR ADDRESS FOR RENT PAYMENT:

            	
              Gateway
                Ridgecrest, Inc., 

              File
                #55895

              Los
                Angeles, CA 90074-5895

            
	 	 
	
              LEASE
                REFERENCE DATE:

            	
              September
                20, 2006

            
	 	 
	
              TENANT:

            	
              Petro
                Resources Corporation,

              a
                Delaware corporation

            
	
              TENANT’S
                NOTICE ADDRESS:

            	 
	
              (a)
                As of beginning of Term:

            	
              Petro
                Resources Corporation

              777
                Post Oak Boulevard, Suite 910

              Houston,
                Texas 77056

              Attention:
                Don Kirkendall

            
	 	 
	
              (b)
                Prior to beginning of Term (if different):

            	
              Petro
                Resources Corporation

              5100
                Westheimer, Suite 200

              Houston,
                Texas 77056

              Attention:
                Don Kirkendall

            
	 	 
	
              PREMISES
                ADDRESS:

            	
              777
                Post Oak Boulevard, 

              Suite
                910

              Houston,
                Texas 77056

            
	 	 
	
              PREMISES
                RENTABLE AREA:

            	
              Approximately
                2,896
                sq. ft. (for outline of Premises see Exhibit
                A)

            
	 	 
	
              SCHEDULED
                COMMENCEMENT DATE:

            	
              February
                1,
                2007

            

    

    
      
        
        

      

      
        iii

        
          

        

      

      
        
        

      

    

    

    
      	
              TERM
                OF LEASE:

            	
              Approximately
                five
                (5)
                years, one
                (1)
                month and zero
                (0)
                days beginning on the Commencement Date and ending on the Termination
                Date. The period from the Commencement Date to the last day of the
                same
                month is the “Commencement Month.”

            
	 	 
	
              TERMINATION
                DATE:

            	
              The
                last day of the sixty
                first
                (61st)
                full calendar month after (if the Commencement Month is not a full
                calendar month), or from and including (if the Commencement Month
                is a
                full calendar month), the Commencement Month.

            
	 	 
	
              ANNUAL
                RENT and MONTHLY INSTALLMENT OF RENT

              (Article
                3):

            	 
	
            

    

    
      	
              Lease
                Months *

            	
              Rentable
                Square

            	
              Annual
                Rent

            	
              Annual
                Rent

            	
              Monthly
                Installment

            
	
              from

            	
              through

            	
              Footage

            	
              Per
                Square Foot

            	 	
              of
                Rent

            
	
              2/1/07

            	
              2/28/07

            	
              2,896

            	
              $0.00

            	
              $0.00

            	
              $0.00

            
	
              3/1/07

            	
              1/31/08

            	
              2,896

            	
              $20.00

            	
              $57,920.00

            	
              $4,826.67

            
	
              2/1/08

            	
              1/31/09

            	
              2,896

            	
              $21.00

            	
              $60,816.00

            	
              $5,068.00

            
	
              2/1/09

            	
              1/31/10

            	
              2,896

            	
              $21.50

            	
              $62,264.00

            	
              $5,188.67

            
	
              2/1/10

            	
              1/31/11

            	
              2,896

            	
              $22.00

            	
              $63,712.00

            	
              $5,309.33

            
	
              2/1/11

            	
              2/29/12

            	
              2,896

            	
              $22.50

            	
              $65,160.00

            	
              $5,430.00

            

    

    
       

      *
        The
        Lease months are subject to revision upon determination of the actual
        Commencement Date and Termination Date
 

    
      	
              BASE
                YEAR (EXPENSES):

            	
              January
                1, 2007
                to December 31,
                2007

            
	 	 
	
              BASE
                YEAR (TAXES):

            	
              Taxes
                for January 1, 2007
                to December 31,
                2007

            
	 	 
	
              TENANT’S
                PROPORTIONATE SHARE:

            	
              1.6382%

            
	 	 
	
              SECURITY
                DEPOSIT:

            	
              $5,430.00

            
	 	 
	
              ASSIGNMENT/SUBLETTING
                FEE:

            	
              $1,000.00

            
	 	 
	
              AFTER-HOURS
                HVAC COST:

            	
              $75.00
                per hour, subject to change at any time

            
	 	 
	
              PARKING

            	
              Up
                to nine
                (9)
                passes for unreserved
                spaces; Tenant may upon request, convert up to three
                (3)
                spaces to reserved.
                

               

              Unreserved
                Parking Charges

              2/1/07
                - 1/31/09
                $0.00 per space/month

              2/1/09
                - 2/29/12
                $35.00 per space/month

               

              Reserved
                Parking Charges

              Months
                2/1/07
                - 2/29/12 $65.00
                per space/month

               

              Applicable
                sales tax shall be added to the foregoing rates.

               

              The
                Lease months above are subject to revision upon determination of
                the
                actual Commencement Date and Termination Date.

               

              (See
                Article 30 on Parking)

            

    

    
      
        
        

      

      
        iv

        
          

        

      

      
        
        

      

    

    

    
      	
              REAL
                ESTATE BROKER DUE COMMISSION:

            	
              Cushman
                & Wakefield of Texas (Landlord)

              Trammell
                Crow Company (Tenant)

            
	 	 
	
              TENANT’S
                SIC CODE:

               

              TENANT’S
                NAICS CODE

            	
              1311

               

              211111

            
	 	 
	
              BUILDING
                BUSINESS HOURS:

            	
              Mondays
                through Fridays: 7.00 a.m. until 6.00 p.m. Saturdays: 8.00 a.m. until
                1.00
                p.m.

            
	 	 
	
              AMORTIZATION
                RATE:

            	
              Ten
                percent (10%)

            

    

    

     

    

     

    [Signature
      Page Follows]

     

    
      
        
        

      

      
        v

        
          

        

      

      
        
        

      

    

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

     

     

    
      	
              LANDLORD:

            	
              TENANT:

            
	 	 
	
              GATEWAY
                RIDGECREST, INC.,

              a
                California corporation

            	
              PETRO
                RESOURCES CORPORATION

              a
                Delaware corporation

            
	 	 
	
              By: RREEF
                Management Company, 

                     
                a Delaware corporation

            	
              PETRO
                RESOURCES CORPORATION

              a
                Delaware corporation

            
	
               

            	 
	
              
                By:
                  /s/
                  Jay
                  Jehle                                                               
                  

              

            	
              By:
                /s/
                Donald L.
                Kirkendall                                            
                

            
	
              
                Name:
                  Jay Jehle

              

            	
              Name:
                Donald
                L. Kirkendall

            
	
                
                Title:
                Managing Director

            	
              Title:
                President

            
	 	 
	
              By:
                /s/
                Kim M.
                Boudreau                                                 
                

            	 
	
              Name:
                Kim M. Boudreau

            	 
	
              Title:
                Vice President, Regional Director

            	 
	
              Dated:
                September 30, 2006

            	 

    

     

    
      
        
        

      

      
        vi

        
          

        

      

      
        
        

      

    

    LEASE

     

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

     

    1. USE
      AND
      RESTRICTIONS ON USE.

     

    1.1 The
      Premises are to be used solely for general office purposes. Tenant shall not
      do
      or permit anything to be done in or about the Premises which will in any way
      obstruct or interfere with the rights of other tenants or occupants of the
      Building or injure, annoy, or disturb them, or allow the Premises to be used
      for
      any improper, immoral, unlawful, or objectionable purpose, or commit any waste.
      Tenant shall not do, permit or suffer in, on, or about the Premises the sale
      of
      any alcoholic liquor without the written consent of Landlord first obtained.
      Tenant shall comply with all governmental laws, ordinances and regulations
      applicable to the use of the Premises and its occupancy and shall promptly
      comply with all governmental orders and directions for the correction,
      prevention and abatement of any violations in the Building or appurtenant land,
      caused or permitted by, or resulting from the specific use by, Tenant, or in
      or
      upon, or in connection with, the Premises, all at Tenant’s sole expense. Tenant
      shall not do or permit anything to be done on or about the Premises or bring
      or
      keep anything into the Premises which will in any way increase the rate of,
      invalidate or prevent the procuring of any insurance protecting against loss
      or
      damage to the Building or any of its contents by fire or other casualty or
      against liability for damage to property or injury to persons in or about the
      Building or any part thereof.

     

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

     

    1.3 Tenant
      and the Tenant Entities will be entitled to the non-exclusive use of the common
      areas of the Building as they exist from time to time during the Term, including
      the parking facilities, subject to Landlord’s rules and regulations regarding
      such use. However, in no event will Tenant or the Tenant Entities park more
      vehicles in the parking facilities than Tenant’s Proportionate Share of the
      total parking spaces available for common use. The foregoing shall not be deemed
      to provide Tenant with an exclusive right to any parking spaces or any guaranty
      of the availability of any particular parking spaces or any specific number
      of
      parking spaces.

     

    
      
        
        

      

      
        1

        
          

        

      

      
        
        

      

    

    2. TERM.

     

    2.1 The
      Term
      of this Lease shall begin on the date (“Commencement Date”) which shall be the
      later of the Scheduled Commencement Date as shown on the Reference Pages and
      the
      date that Landlord shall tender possession of the Premises to Tenant with all
      of
      the Initial Work Substantially Completed in accordance with the attached
Exhibit
      B.
      The
      Term shall terminate on the date as shown on the Reference Pages (“Termination
      Date”), unless sooner terminated by the provisions of this Lease. Tenant shall,
      at Landlord’s request, execute and deliver a memorandum agreement provided by
      Landlord in the form of Exhibit
      C
      attached
      hereto, setting forth the actual Commencement Date, Termination Date and, if
      necessary, a revised rent schedule. Should Tenant fail to do so within thirty
      (30) days after Landlord’s request, the information set forth in such memorandum
      provided by Landlord shall be conclusively presumed to be agreed and
      correct.

     

    2.2 Tenant
      agrees that Landlord shall not be liable if Landlord is unable to tender
      possession of the Premises with all of the Initial Work Substantially Completed
      in accordance with Exhibit
      B
      as of
      the Scheduled Commencement Date. No such failure to give possession on the
      Scheduled Commencement Date shall affect the obligations of Tenant under this
      Lease, except that if Landlord is unable to deliver possession of the Premises
      within ninety (90) days after the Scheduled Commencement Date (other than as
      a
      result of strikes, shortages of materials, holdover tenancies or similar matters
      beyond the reasonable control of Landlord and Tenant is notified by Landlord
      in
      writing as to such delay), Tenant shall have the option to terminate this Lease
      unless said delay is as a result of: (a) Tenant’s failure to agree to plans and
      specifications and/or construction cost estimates or bids; (b) Tenant’s request
      for materials, finishes or installations other than Landlord’s standard except
      those, if any, that Landlord shall have expressly agreed to furnish without
      extension of time agreed by Landlord; (c) Tenant’s change in any plans or
      specifications; or, (d) performance or completion by a party employed by Tenant
      (each of the foregoing, a “Tenant Delay”). If any delay is the result of a
      Tenant Delay, the Commencement Date and the payment of rent under this Lease
      shall be accelerated by the number of days of such Tenant Delay.

     

    2.3 In
      the
      event Landlord permits Tenant, or any agent, employee or contractor of Tenant,
      to enter, use or occupy the Premises prior to the Commencement Date, such entry,
      use or occupancy shall be subject to all the provisions of this Lease other
      than
      the payment of rent, including, without limitation, Tenant’s compliance with the
      insurance requirements of Article 11. Said early possession shall not advance
      the Commencement Date or the Termination Date.

     

    3. RENT.

     

    3.1 Tenant
      agrees to pay to Landlord the Annual Rent in effect from time to time by paying
      the Monthly Installment of Rent then in effect on or before the first day of
      each full calendar month during the Term, except that the first full month’s
      rent shall be paid upon the execution of this Lease and shall be credited
      against rent when the same first becomes due and payable. The Monthly
      Installment of Rent in effect at any time shall be one-twelfth (1/12) of the
      Annual Rent in effect at such time. Rent for any period during the Term which
      is
      less than a full month shall be a prorated portion of the Monthly Installment
      of
      Rent based upon the number of days in such month. Said rent shall be paid to
      Landlord, without deduction or offset and without notice or demand, at the
      Rent
      Payment Address, as set forth on the Reference Pages, or to such other person
      or
      at such other place as Landlord may from time to time designate in writing.
      If
      an Event of Default occurs, Landlord may require by notice to Tenant that all
      subsequent rent payments be made by an automatic payment from Tenant’s bank
      account to Landlord’s account, without cost to Landlord. Tenant must implement
      such automatic payment system prior to the next scheduled rent payment or within
      ten (10) days after Landlord’s notice, whichever is later. Unless specified in
      this Lease to the contrary, all amounts and sums payable by Tenant to Landlord
      pursuant to this Lease shall be deemed additional rent.

     

    3.2 Tenant
      recognizes that late payment of any rent or other sum due under this Lease
      will
      result in administrative expense to Landlord, the extent of which additional
      expense is extremely difficult and economically impractical to ascertain. Tenant
      therefore agrees that if rent or any other sum is not paid when due and payable
      pursuant to this Lease, a late charge shall be imposed in an amount equal to
      the
      greater of: (a) Fifty Dollars ($50.00), or (b) six percent (6%) of the unpaid
      rent or other payment. The amount of the late charge to be paid by Tenant shall
      be reassessed and added to Tenant’s obligation for each successive month until
      paid. The provisions of this Section 3.2 in no way relieve Tenant of the
      obligation to pay rent or other payments on or before the date on which they
      are
      due, nor do the terms of this Section 3.2 in any way affect Landlord’s remedies
      pursuant to Article 19 of this Lease in the event said rent or other payment
      is
      unpaid after date due. 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

    4. RENT
      ADJUSTMENTS.

     

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

     

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

     

    4.1.2 Expenses:
      All
      costs of operation, maintenance, repair, replacement and management of the
      Building (including the amount of any credits which Landlord may grant to
      particular tenants of the Building in lieu of providing any standard services
      or
      paying any standard costs described in this Section 4.1.2 for similar tenants),
      as determined in accordance with generally accepted accounting principles,
      including the following costs by way of illustration, but not limitation: water
      and sewer charges; insurance charges of or relating to all insurance policies
      and endorsements reasonably deemed by Landlord to be necessary or desirable
      and
      relating in any manner to the protection, preservation, or operation of the
      Building or any part thereof; utility costs, including, but not limited to,
      the
      cost of heat, light, power, steam, gas; waste disposal; the cost of janitorial
      services; the cost of security and alarm services (including any central station
      signaling system); costs of cleaning, repairing, replacing and maintaining
      the
      common areas, including parking and landscaping, window cleaning costs; labor
      costs; costs and expenses of managing the Building including management fees;
      air conditioning maintenance costs; elevator maintenance fees and supplies;
      material costs; equipment costs including the cost of maintenance, repair and
      service agreements and rental and leasing costs; purchase costs of equipment;
      current rental and leasing costs of items which would be capital items if
      purchased; tool costs; licenses, permits and inspection fees; wages and
      salaries; employee benefits and payroll taxes; accounting and legal fees; any
      sales, use or service taxes incurred in connection therewith. In
      addition, Landlord shall be entitled to recover, as additional rent (which,
      along with any other capital expenditures constituting Expenses, Landlord may
      either include in Expenses or cause to be billed to Tenant along with Expenses
      and Taxes but as a separate item), Tenant’s Proportionate Share of: (i) an
      allocable portion of the cost of capital improvement items which are reasonably
      calculated to reduce operating expenses; (ii) the cost of fire sprinklers and
      suppression systems and other life safety systems; and (iii) other capital
      expenses which are required under any governmental laws, regulations or
      ordinances which were not applicable to the Building at the time it was
      constructed; but the costs described in this sentence shall be amortized over
      the reasonable life of such expenditures in accordance with such reasonable
      life
      and amortization schedules as shall be determined by Landlord in accordance
      with
      generally accepted accounting principles, with interest on the unamortized
      amount at one percent (1%) in excess of the Wall Street Journal prime lending
      rate announced from time to time. Except as expressly permitted in this Lease,
      Expenses shall not include:

     

    (a) Leasing
      commissions, attorneys’ fees, costs and disbursements and other expenses
      incurred in connection with negotiations for leases with tenants and other
      occupants of the building, and similar costs incurred in connection with
      disputes between Landlord and tenants of the Building;

     

    (b) Costs
      incurred in renovating or otherwise improving, decorating or redecorating space
      for tenants or other occupants in the Building or vacant leasable space in
      the
      Building;

     

    (c) Costs
      of
      correcting defects (including latent defects) in the initial construction of
      the
      Building, except that, for the purposes of this subparagraph, conditions
      resulting from ordinary wear and tear and use, vandalism, and other matters
      not
      occasioned by construction defects shall not be deemed defects;

     

    (d) Landlord’s
      costs of electricity and other services sold to tenants and which are not
      standard for the Building, or for which Landlord is reimbursed by tenants as
      an
      additional charge or rental;

     

    (e) Depreciation
      of the Building and all equipment, fixtures, improvements and facilities used
      in
      connection therewith;

     

    (f) Material
      expenses in connection with services or other benefits of a type which are
      not
      standard for the Building and which are not available to Tenant without specific
      charge therefor, but which are provided to another tenant or occupant without
      specific charge therefor;

     

    (g) Costs
      (including penalties, fines and associated legal expenses) incurred due to
      the
      violation by Landlord of the terms and conditions of the Lease, or any
      applicable federal, state and local governmental laws, ordinances, orders,
      rules
      and regulations, which costs would not have been incurred but for such violation
      by Landlord and which violation has not been caused by any act or omission
      by
      Tenant or a Tenant Entity;

    
      
        
        

      

      
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    (h) Overhead
      and profit increments paid to subsidiaries, partners or other affiliates of
      Landlord for services on or to the Building, any appurtenant garage or the
      property on which the Premises are located, to the extent that the costs of
      such
      services exceed competitive costs for such services rendered by persons or
      entities of similar skill, competence and experience, other than a subsidiary
      of
      Landlord; 

     

    (i) Interest
      on debt or amortization payments on any mortgage or mortgages, and rental under
      any ground or underlying leases or lease (except to the extent the same may
      be
      made to pay or reimburse, or may be measured by, ad valorem taxes);

     

    (j) Costs
      of
      Landlord’s general corporate overhead and general administrative expenses, which
      would not be chargeable to Operating Expenses of the Building, determined in
      accordance with generally accepted accounting principles, consistently applied;
      and all costs related to maintaining Landlord’s existence as a corporation,
      partnership or other entity;

     

    (k) Any
      compensation paid to clerks, attendants or other persons in commercial
      concessions, if any, operated by Landlord.;

     

    (l) All
      services for which Tenant (or any other tenant of the Building) specifically
      reimburses Landlord or for which Tenant pays directly to third persons;

     

    (m) 
      Costs
      incurred in installing, operating and maintaining any specialty not normally
      installed, operated and maintained in buildings comparable to the Building,
      and
      not necessary, in Landlord’s reasonable discretion, for the operation, repair,
      maintenance and provision of required services for the Building, such as an
      antenna, broadcasting facilities (other than health, safety, life support and
      security systems), luncheon club, athletic or recreational club; and

     

    (n) Advertising
      and promotional expenses incurred to publicize the Building primarily for
      leasing purposes.

     

    4.1.3 Taxes:
      Real
      estate taxes and any other taxes, charges and assessments which are levied
      with
      respect to the Building or the land appurtenant to the Building, or with respect
      to any improvements, fixtures and equipment or other property of Landlord,
      real
      or personal, located in the Building and used in connection with the operation
      of the Building and said land, any payments to any ground lessor in
      reimbursement of tax payments made by such lessor; and all fees, expenses and
      costs incurred by Landlord in investigating, protesting, contesting or in any
      way seeking to reduce or avoid increase in any assessments, levies or the tax
      rate pertaining to any Taxes to be paid by Landlord in any Lease Year; and
      all
      taxes of whatsoever nature that are imposed wholly or in part in substitution
      for, or in lieu of, any of the taxes, charges, and assessments included in
      this
      definition of Taxes. Taxes shall not include any estate or inheritance tax,
      or
      tax imposed upon any transfer by Landlord of its interest in this Lease or
      the
      Building or any taxes to be paid by Tenant pursuant to Article 28. If, due
      to a
      change in a method of taxation, any tax shall be levied against Landlord wholly
      or in part in substitution for, or in lieu of, tax otherwise recoverable under
      this Section 4.1.3, such other tax shall be deemed to be a Tax for the purposes
      of this Section 4.1.3 to the extent not reimbursable from Tenant to Landlord
      under Article 28 of this Agreement.

     

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

    
      
        
        

      

      
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    4.3 The
      annual determination of Expenses and Taxes shall be made by Landlord and shall
      be binding upon Landlord and Tenant, subject to the provisions of this Section
      4.3. During the Term, Tenant may review, at Tenant’s sole cost and expense, the
      books and records supporting such determination in an office of Landlord, or
      Landlord’s agent, during normal business hours, upon giving Landlord five (5)
      days advance written notice within sixty (60) days after receipt of such
      determination, but in no event more often than once in any one (1) year period,
      subject to execution of a confidentiality agreement acceptable to Landlord,
      and
      provided that if Tenant utilizes an independent accountant to perform such
      review it shall be one of national standing which is reasonably acceptable
      to
      Landlord, is not compensated on a contingency basis and is also subject to
      such
      confidentiality agreement. If Tenant fails to object to Landlord’s determination
      of Expenses or Taxes within ninety (90) days after receipt, or if any such
      objection fails to state with specificity the reason for the objection, Tenant
      shall be deemed to have approved such determination and shall have no further
      right to object to or contest such determination. If the review by the
      independent accountant correctly shows a discrepancy of an amount in excess
      of
      ten percent (10%) of Landlord’s total determination of Expenses and Taxes for
      such year, Landlord shall reimburse Tenant the cost of the audit. In the event
      that during all or any portion of any Lease Year or Base Year, the Building
      is
      not fully rented and occupied Landlord shall make an appropriate adjustment
      in
      occupancy-related Expenses for such year for the purpose of avoiding distortion
      of the amount of such Expenses to be attributed to Tenant by reason of variation
      in total occupancy of the Building, by employing consistent and sound accounting
      and management principles to determine Expenses that would have been paid or
      incurred by Landlord had the Building been at least ninety-five percent (95%)
      rented and occupied, and the amount so determined shall be deemed to have been
      Expenses for such Lease Year.

     

    4.4 Prior
      to
      the actual determination thereof for a Lease Year, Landlord may from time to
      time estimate Tenant’s liability for Expenses and/or Taxes under Section 4.2,
      Article 6 and Article 28 for the Lease Year or portion thereof. Landlord will
      give Tenant written notification of the amount of such estimate and Tenant
      agrees that it will pay, by increase of its Monthly Installments of Rent due
      in
      such Lease Year, additional rent in the amount of such estimate. Any such
      increased rate of Monthly Installments of Rent pursuant to this Section 4.4
      shall remain in effect until further written notification to Tenant pursuant
      hereto.

     

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

     

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

     

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

     

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

     

    5. SECURITY
      DEPOSIT.
      Tenant
      shall deposit the Security Deposit with Landlord upon the execution of this
      Lease. Said sum shall be held by Landlord as security for the faithful
      performance by Tenant of all the terms, covenants and conditions of this Lease
      to be kept and performed by Tenant and not as an advance rental deposit or
      as a
      measure of Landlord’s damage in case of Tenant’s default. If an Event of Default
      by Tenant occurs, Landlord may use any part of the Security Deposit for the
      payment of any rent or any other sum in default, or for the payment of any
      amount which Landlord may spend or become obligated to spend by reason of
      Tenant’s default, or to compensate Landlord for any other loss or damage which
      Landlord may suffer by reason of Tenant’s Event of Default. If any portion is so
      used, Tenant shall within five (5) days after written demand therefor, deposit
      with Landlord an amount sufficient to restore the Security Deposit to its
      original amount and Tenant’s failure to do so shall be a material breach of this
      Lease. Except to such extent, if any, as shall be required by law, Landlord
      shall not be required to keep the Security Deposit separate from its general
      funds, and Tenant shall not be entitled to interest on such deposit. If Tenant
      shall fully and faithfully perform every provision of this Lease to be performed
      by it, the Security Deposit or any balance thereof shall be returned to Tenant
      at such time after termination of this Lease when Landlord shall have determined
      that all of Tenant’s obligations under this Lease have been fulfilled and in any
      event in compliance with applicable law.

    
      
        
        

      

      
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    6. ALTERATIONS.

     

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

     

    6.2 In
      the
      event Landlord consents to the making of any such alteration, addition or
      improvement by Tenant, the same shall be made by using either Landlord’s
      contractor or a contractor reasonably approved by Landlord, in either event
      at
      Tenant’s sole cost and expense. If Tenant shall employ any contractor other than
      Landlord’s contractor and such other contractor or any subcontractor of such
      other contractor shall employ any non-union labor or supplier, Tenant shall
      be
      responsible for and hold Landlord harmless from any and all delays, damages
      and
      extra costs suffered by Landlord as a result of any dispute with any labor
      unions concerning the wage, hours, terms or conditions of the employment of
      any
      such labor. In any event Landlord may charge Tenant a construction management
      fee not to exceed five percent (5%) of the cost of such work to cover its
      overhead as it relates to such proposed work, plus third-party costs actually
      incurred by Landlord in connection with the proposed work and the design
      thereof, with all such amounts being due fifteen (15) days after Landlord’s
      demand.

     

    6.3 All
      alterations, additions or improvements proposed by Tenant shall be constructed
      in accordance with all government laws, ordinances, rules and regulations,
      using
      Building standard materials where applicable, and Tenant shall, prior to
      construction, provide the additional insurance required under Article 11 in
      such
      case, and also all such assurances to Landlord as Landlord shall reasonably
      require to assure payment of the costs thereof, including but not limited to,
      notices of non-responsibility, waivers of lien, surety company performance
      bonds
      and funded construction escrows and to protect Landlord and the Building and
      appurtenant land against any loss from any mechanic’s, materialmen’s or other
      liens. Tenant shall pay in addition to any sums due pursuant to Article 4,
      any
      increase in real estate taxes attributable to any such alteration, addition
      or
      improvement for so long, during the Term, as such increase is ascertainable;
      at
      Landlord’s election said sums shall be paid in the same way as sums due under
      Article 4. Landlord may, as a condition to its consent to any particular
      alterations or improvements, require Tenant to deposit with Landlord the amount
      reasonably estimated by Landlord as sufficient to cover the cost of removing
      such alterations or improvements and restoring the Premises, to the extent
      required under Section 26.2. 

     

    6.4 Tenant
      may, at Tenant’s cost, install and maintain a burglar alarm system or other
      surveillance system designed to protect the Premises from unauthorized entry,
      provided that (i) the installation of such system shall be subject to the
      provisions of this Article 6, (ii) such system shall be removed by Tenant upon
      the expiration or earlier termination of the Term and Tenant shall repair any
      damage caused by such removal, and (iii) Tenant shall immediately provide
      Landlord with Tenant’s access code and, in the event any lock is replaced or
      re-keyed, with keys enabling Landlord to enter the Premises on the terms of
      this
      Lease. 

     

    7. REPAIR.

     

    7.1 Landlord
      shall have no obligation to alter, remodel, improve, repair, decorate or paint
      the Premises, except as specified in Exhibit
      B
      if
      attached to this Lease and except that Landlord shall repair and maintain the
      structural portions of the Building, the Common Areas and the basic plumbing,
      air conditioning, heating and electrical systems installed or furnished by
      Landlord. By taking possession of the Premises, Tenant accepts them as being
      in
      good order, condition and repair and in the condition in which Landlord is
      obligated to deliver them, except as set forth in the punch list to be delivered
      pursuant to Section 2.1. It is hereby understood and agreed that no
      representations respecting the condition of the Premises or the Building have
      been made by Landlord to Tenant, except as specifically set forth in this
      Lease.

    
      
        
        

      

      
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    7.2 Tenant
      shall, at all times during the Term, keep the Premises in good condition and
      repair excepting damage by fire, or other casualty, and in compliance with
      all
      applicable governmental laws, ordinances and regulations, promptly complying
      with all governmental orders and directives for the correction, prevention
      and
      abatement of any violations or nuisances in or upon, or connected with, the
      Premises, all at Tenant’s sole expense.

     

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

     

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

     

    8. LIENS.
      Tenant
      shall keep the Premises, the Building and appurtenant land and Tenant’s
      leasehold interest in the Premises free from any liens arising out of any
      services, work or materials performed, furnished, or contracted for
      by
      Tenant, or obligations incurred by Tenant. In the event that Tenant fails,
      within ten (10) days following the imposition of any such lien, to either cause
      the same to be released of record or provide Landlord with insurance against
      the
      same issued by a major title insurance company or such other protection against
      the same as Landlord shall reasonably accept (such failure to constitute an
      Event of Default), Landlord shall have the right to cause the same to be
      released by such means as it shall deem proper, including
      payment of the claim giving rise to such lien. All such sums paid by Landlord
      and all expenses incurred by it in connection therewith shall be payable to
      it
      by Tenant within five (5) days of Landlord’s demand.

     

    9. ASSIGNMENT
      AND SUBLETTING.

     

    9.1 Tenant
      shall not have the right to assign or pledge this Lease or to sublet the whole
      or any part of the Premises whether voluntarily or by operation of law, or
      permit the use or occupancy of the Premises by anyone other than Tenant, and
      shall not make, suffer or permit such assignment, subleasing or occupancy
      without the prior written consent of Landlord, such consent not to be
      unreasonably withheld or delayed, and said restrictions shall be binding upon
      any and all assignees of the Lease and subtenants of the Premises. In the event
      Tenant desires to sublet, or permit such occupancy of, the Premises, or any
      portion thereof, or assign this Lease, Tenant shall give written notice thereof
      to Landlord at least sixty (60) days but no more than one hundred twenty (120)
      days prior to the proposed commencement date of such subletting or assignment,
      which notice shall set forth the name of the proposed subtenant or assignee,
      the
      relevant terms of any sublease or assignment and copies of financial reports
      and
      other relevant financial information of the proposed subtenant or
      assignee.

     

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

     

    9.3 In
      addition to Landlord’s right to approve of any subtenant or assignee, Landlord
      shall have the option, in its sole discretion, in the event of any proposed
      subletting or assignment, to terminate this Lease, or in the case of a proposed
      subletting of less than the entire Premises, to recapture the portion of the
      Premises to be sublet, as of the date the subletting or assignment is to be
      effective. The option shall be exercised, if at all, by Landlord giving Tenant
      written notice given by Landlord to Tenant within thirty (30) days following
      Landlord’s receipt of Tenant’s written notice as required above. However, if
      Tenant notifies Landlord, within five (5) days after receipt of Landlord’s
      termination notice, that Tenant is rescinding its proposed assignment or
      sublease, the termination notice shall be void and the Lease shall continue
      in
      full force and effect. If this Lease shall be terminated with respect to the
      entire Premises pursuant to this Section, the Term of this Lease shall end
      on
      the date stated in Tenant’s notice as the effective date of the sublease or
      assignment as if that date had been originally fixed in this Lease for the
      expiration of the Term. If Landlord recaptures under this Section only a portion
      of the Premises, the rent to be paid from time to time during the unexpired
      Term
      shall abate proportionately based on the proportion by which the approximate
      square footage of the remaining portion of the Premises shall be less than
      that
      of the Premises as of the date immediately prior to such recapture. Tenant
      shall, at Tenant’s own cost and expense, discharge in full any outstanding
      commission obligation which may be due and owing as a result of any proposed
      assignment or subletting, whether or not the Premises are recaptured pursuant
      to
      this Section 9.3 and rented by Landlord to the proposed tenant or any other
      tenant.

    
      
        
        

      

      
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    9.4 In
      the
      event that Tenant sells, sublets, assigns or transfers this Lease, Tenant shall
      pay to Landlord as additional rent an amount equal to one hundred percent (100%)
      of any Increased Rent (as defined below), less the Costs Component (as defined
      below), when and as such Increased Rent is received by Tenant. As used in this
      Section, “Increased Rent” shall mean the excess of (i) all rent and other
      consideration which Tenant is entitled to receive by reason of any sale,
      sublease, assignment or other transfer of this Lease, over (ii) the rent
      otherwise payable by Tenant under this Lease at such time. For purposes of
      the
      foregoing, any consideration received by Tenant in form other than cash shall
      be
      valued at its fair market value as determined by Landlord in good faith. The
      “Costs Component” is that amount which, if paid monthly, would fully amortize on
      a straight-line basis, over the entire period for which Tenant is to receive
      Increased Rent, the reasonable costs incurred by Tenant for leasing commissions
      and tenant improvements in connection with such sublease, assignment or other
      transfer.

     

    9.5 Notwithstanding
      any other provision hereof, it shall be considered reasonable for Landlord
      to
      withhold its consent to any assignment of this Lease or sublease of any portion
      of the Premises if at the time of either Tenant’s notice of the proposed
      assignment or sublease or the proposed commencement date thereof, there shall
      exist any uncured default of Tenant or matter which will become a default of
      Tenant with passage of time unless cured, or if the proposed assignee or
      sublessee is an entity: (a) with which Landlord is already in negotiation;
      (b)
      is already an occupant of the Building unless Landlord is unable to provide
      the
      amount of space required by such occupant; (c) is a governmental agency; (d)
      is
      incompatible with the character of occupancy of the Building; (e) with which
      the
      payment for the sublease or assignment is determined in whole or in part based
      upon its net income or profits; or (f) would subject the Premises to a use
      which
      would: (i) involve increased personnel or wear upon the Building; (ii) violate
      any exclusive right granted to another tenant of the Building; (iii) require
      any
      addition to or modification of the Premises or the Building in order to comply
      with building code or other governmental requirements; or, (iv) involve a
      violation of Section 1.2. Tenant expressly agrees that for the purposes of
      any
      statutory or other requirement of reasonableness on the part of Landlord,
      Landlord’s refusal to consent to any assignment or sublease for any of the
      reasons described in this Section 9.5, shall be conclusively deemed to be
      reasonable.

     

    9.6 Upon
      any
      request to assign or sublet, Tenant will pay to Landlord the
      Assignment/Subletting Fee plus, on demand, a sum equal to all of Landlord’s
      costs, including reasonable attorney’s fees, incurred in investigating and
      considering any proposed or purported assignment or pledge of this Lease or
      sublease of any of the Premises, regardless of whether Landlord shall consent
      to, refuse consent, or determine that Landlord’s consent is not required for,
      such assignment, pledge or sublease. Any purported sale, assignment, mortgage,
      transfer of this Lease or subletting which does not comply with the provisions
      of this Article 9 shall be void.

     

    9.7 If
      Tenant
      is a corporation, limited liability company, partnership or trust, any transfer
      or transfers of or change or changes within any twelve (12) month period in
      the
      number of the outstanding voting shares of the corporation or limited liability
      company, the general partnership interests in the partnership or the identity
      of
      the persons or entities controlling the activities of such partnership or trust
      resulting in the persons or entities owning or controlling a majority of such
      shares, partnership interests or activities of such partnership or trust at
      the
      beginning of such period no longer having such ownership or control shall be
      regarded as equivalent to an assignment of this Lease to the persons or entities
      acquiring such ownership or control and shall be subject to all the provisions
      of this Article 9 to the same extent and for all intents and purposes as though
      such an assignment. 

     

    9.8 So
      long
      as Tenant is not entering into the Permitted Transfer for the purpose of
      avoiding or otherwise circumventing the remaining terms of this Article 9,
      subject as hereinafter stated, Tenant may assign or sublease all or part of
      its
      interest in this Lease or all or part of the Premises (a “Permitted Transfer”)
      to the following types of entities (a “Permitted Transferee”) without the
      written consent of Landlord:

     

    (1) an
      affiliate (being any person or entity in which Tenant or Tenant’s current owners
      own at least fifty one percent (51%) voting control) provided that the Tangible
      Net Worth (as defined below) of such person entity is not less than the Tangible
      Net Worth of Tenant as of the Lease Reference Date;

     

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

    
      
        
        

      

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

     

    9.9 Tenant
      shall notify Landlord at least twenty (20) days in advance of any proposed
      Permitted Transfer. The Permitted Transferee shall sign and deliver to Landlord
      an assumption agreement reasonably acceptable to Landlord. Tenant shall remain
      liable for the performance of all of the obligations of Tenant hereunder, or
      if
      Tenant no longer exists because of a merger, consolidation, or acquisition,
      the
      surviving or acquiring entity shall expressly assume in writing the obligations
      of Tenant hereunder. The Permitted Transferee shall comply with all of the
      terms
      and conditions of this Lease, including the permitted use hereunder. Within
      at
      least thirty (30) days after the effective date of any Permitted Transfer,
      Tenant shall furnish Landlord with copies of the instrument effecting any of
      the
      foregoing Permitted Transfers and documentation establishing Tenant’s
      satisfaction of the requirements set forth above applicable to any such
      Permitted Transfer and the relationship of such Permitted Transferee to Tenant.
      The occurrence of a Permitted Transfer shall not waive Landlord’s rights as to
      any subsequent Transfer. “Tangible Net Worth” means the excess of total assets
      over total liabilities, in each case determined in accordance with GAAP. Any
      subsequent transfer by Permitted Transferee shall be subject to the provisions
      of this Article 9.

     

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

     

    11. INSURANCE.

     

    11.1 Tenant
      shall keep in force throughout the Term: (a) a Commercial General Liability
      insurance policy or policies to protect the Landlord Entities against any
      liability to the public or to any invitee of Tenant or a Landlord Entity
      incidental to the use of or resulting from any accident occurring in or upon
      the
      Premises with a limit of not less than $1,000,000 per occurrence and not less
      than $2,000,000 in the annual aggregate, or such larger amount as Landlord
      may
      reasonably require from time to time, covering bodily injury and property damage
      liability and $1,000,000 products/completed operations aggregate; (b) Business
      Auto Liability covering owned, non-owned and hired vehicles with a limit of
      not
      less than $1,000,000 per accident; (c) Worker’s Compensation Insurance with
      limits as required by statute with Employers Liability and limits of $500,000
      each accident, $500,000 disease policy limit, $500,000 disease--each employee;
      (d) All Risk or Special Form coverage protecting Tenant against loss of or
      damage to Tenant’s alterations, additions, improvements, carpeting, floor
      coverings, panelings, decorations, fixtures, inventory and other business
      personal property situated in or about the Premises to the full replacement
      value of the property so insured; and, (e) Business Interruption Insurance
      with
      limit of liability representing loss of at least approximately six (6) months
      of
      income.
      Notwithstanding anything herein to the contrary, for so long as the “Tenant” is
      Petro Resources Corporation (“Petro”), Landlord will waive Tenant’s obligation
      to secure Business Interruption Insurance as aforesaid provided that Tenant
      hereby covenants and agrees that it will not take any action, litigation or
      proceeding against Landlord or any Landlord Entity to recover any sum that
      would
      otherwise have been recoverable by Tenant under its Business Interruption
      Insurance policy had such policy been in place, and (ii) Tenant shall indemnify
      and keep indemnified Landlord and the Landlord Entities harmless from and
      against any and all loss, claims, liability or costs (including court costs
      and
      attorney’s fees) incurred by Landlord or any Landlord Entity by reason of
      failure on the part of Tenant to keep Business Interruption Insurance in force
      throughout the Term. Such indemnity shall survive the termination of this
      Lease.

    
      
        
        

      

      
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    11.2 The
      aforesaid policies shall (a) be provided at Tenant’s expense; (b) name the
      Landlord Entities as additional insureds (General Liability) and loss payee
      (Property—Special Form); (c) be issued by an insurance company with a minimum
      Best’s rating of “A-:VII” during the Term; and (d) provide that said insurance
      shall not be canceled unless thirty (30) days prior written notice (ten days
      for
      non-payment of premium) shall have been given to Landlord; a certificate of
      Liability insurance on ACORD Form 25 and a certificate of Property insurance
      on
      ACORD Form 27 shall be delivered to Landlord by Tenant upon the Commencement
      Date and at least thirty (30) days prior to each renewal of said
      insurance.

     

    11.3 Whenever
      Tenant shall undertake any alterations, additions or improvements in, to or
      about the Premises (“Work”) the aforesaid insurance protection must extend to
      and include injuries to persons and damage to property arising in connection
      with such Work, without limitation including liability under any applicable
      structural work act, and such other insurance as Landlord shall require; and
      the
      policies of or certificates evidencing such insurance must be delivered to
      Landlord prior to the commencement of any such Work. 

     

    11.4 Throughout
      the Term of this Lease, Landlord shall maintain (a) a policy or policies of
      insurance covering “all risks” perils to the extent of one hundred percent
      (100%) of the insurable value of the Building (excluding such leasehold
      improvements for which the tenants in the Building are required to maintain
      insurance coverage), and (b) a Commercial General Liability insurance policy
      or
      policies covering the Building and any areas adjacent thereto with a limit
      of
      not less than One Million Dollars ($1,000,000.00) per occurrence and not less
      than Two Million Dollars ($2,000,000.00) in the annual aggregate.

     

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

     

    13. SERVICES
      AND UTILITIES.

     

    13.1 Provided
      Tenant shall not be in default under this Lease, and subject to the other
      provisions of this Lease, Landlord agrees to furnish to the Premises during
      Building Business Hours (specified on the Reference Pages) on generally
      recognized business days (but exclusive in any event of Sundays and national
      and
      local legal holidays), the following services and utilities subject to the
      rules
      and regulations of the Building prescribed from time to time: (a) water suitable
      for normal office use of the Premises; (b) heat and air conditioning required
      in
      Landlord’s judgment for the use and occupation of the Premises during Building
      Business Hours; (c) cleaning and janitorial service; (d) elevator service by
      nonattended automatic elevators, if applicable; and, (e) equipment to bring
      to
      the Premises electricity for lighting, convenience outlets and other normal
      office use. To the extent that Tenant is not billed directly by a public
      utility, Tenant shall pay, within five (5) days of Landlord’s demand, for all
      electricity used by Tenant in the Premises. The charge shall be at the rates
      charged for such services by the local public utility. Alternatively, Landlord
      may elect to include electricity costs in Expenses. In the absence of Landlord’s
      gross negligence or willful misconduct, Landlord shall not be liable for, and
      Tenant shall not be entitled to, any abatement or reduction of rental by reason
      of Landlord’s failure to furnish any of the foregoing, unless such failure shall
      persist for an unreasonable time after written notice of such failure is given
      to Landlord by Tenant and provided further that Landlord shall not be liable
      when such failure is caused by accident, breakage, repairs, labor disputes
      of
      any character, energy usage restrictions or by any other cause, similar or
      dissimilar, beyond the reasonable control of Landlord. Landlord shall use
      reasonable efforts to remedy any interruption in the furnishing of services
      and
      utilities.

     

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

     

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

    
      
        
        

      

      
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    13.4 Tenant
      will not, without the written consent of Landlord, use any apparatus or device
      in the Premises, including but not limited to, electronic data processing
      machines and machines using current in excess of 2000 watts and/or 20 amps
      or
      120 volts, which will in any way increase the amount of electricity or water
      usually furnished or supplied for use of the Premises for normal office use,
      nor
      connect with electric current, except through existing electrical outlets in
      the
      Premises, or water pipes, any apparatus or device for the purposes of using
      electrical current or water. If Tenant shall require water or electric current
      in excess of that usually furnished or supplied for use of the Premises as
      normal office use, Tenant shall procure the prior written consent of Landlord
      for the use thereof, which Landlord may refuse, and if Landlord does consent,
      Landlord may cause a water meter or electric current meter to be installed
      so as
      to measure the amount of such excess water and electric current. The cost of
      any
      such meters shall be paid for by Tenant. Tenant agrees to pay to Landlord within
      five (5) days of Landlord’s demand , the cost of all such excess water and
      electric current consumed (as shown by said meters, if any, or, if none, as
      reasonably estimated by Landlord) at the rates charged for such services by
      the
      local public utility or agency, as the case may be, furnishing the same, plus
      any additional expense incurred in keeping account of the water and electric
      current so consumed.

     

    13.5 Tenant
      will not, without the written consent of Landlord, contract with a utility
      provider to service the Premises with any utility, including, but not limited
      to, telecommunications, electricity, water, sewer or gas, which is not
      previously providing such service to other tenants in the Building. Subject
      to
      Landlord’s reasonable rules and regulations and the provisions of Articles 6 and
      26, Tenant shall be entitled to the use of wiring (“Communications Wiring”) from
      the existing telecommunications nexus in the Building to the Premises,
      sufficient for normal general office use of the Premises. Tenant shall not
      install any additional Communications Wiring, nor remove any Communications
      Wiring, without in each instance obtaining the prior written consent of
      Landlord, which consent may be withheld in Landlord’s sole and absolute
      discretion. Landlord’s shall in no event be liable for disruption in any service
      obtained by Tenant pursuant to this paragraph.

     

    14. HOLDING
      OVER.
      Tenant
      shall pay Landlord for each day Tenant retains possession of the Premises or
      part of them after termination of this Lease by lapse of time or otherwise
      at
      the rate (“Holdover Rate”) which shall be Two Hundred Percent (200%) of the
      greater of (a) the amount of the Annual Rent for the last period prior to the
      date of such termination plus all Rent Adjustments under Article 4; and (b)
      the
      then market rental value of the Premises as determined by Landlord assuming
      a
      new lease of the Premises of the then usual duration and other terms, in either
      case, prorated on a daily basis, and also pay all damages sustained by Landlord
      by reason of such retention. If Landlord gives notice to Tenant of Landlord’s
      election to such effect, such holding over shall constitute renewal of this
      Lease for a period from month to month at the Holdover Rate, but if the Landlord
      does not so elect, no such renewal shall result notwithstanding acceptance
      by
      Landlord of any sums
      due
      hereunder after such termination; and instead, a tenancy at sufferance at the
      Holdover Rate shall be deemed to have been created. In any event, no provision
      of this Article 14 shall be deemed to waive Landlord’s right of reentry or any
      other right under this Lease or at law.

     

    15. SUBORDINATION.
      Without
      the necessity of any additional document being executed by Tenant for the
      purpose of effecting a subordination, this Lease shall be subject and
      subordinate at all times to ground or underlying leases and to the lien of
      any
      mortgages or deeds of trust now or hereafter placed on, against or affecting
      the Building,
      Landlord’s interest or estate in the Building, or any ground or underlying
      lease; provided, however, that if the lessor, mortgagee, trustee, or holder
      of
      any such mortgage or deed of trust elects to have Tenant’s interest in this
      Lease be superior to any such instrument, then, by notice to Tenant, this Lease
      shall be deemed superior, whether this Lease was executed before or after said
      instrument. Notwithstanding the foregoing, Tenant covenants and agrees to
      execute and deliver within ten (10) days of Landlord’s request such further
      instruments evidencing such subordination or superiority of this Lease as may
      be
      required by Landlord.
      Landlord
      confirms that as of the Lease Reference Date, no mortgagee has a lien on
      Landlord’s ownership interest in the Building. 

     

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

    
      
        
        

      

      
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    17. REENTRY
      BY LANDLORD.

     

    17.1 Landlord
      reserves and shall, during regular business hours, have the right to re-enter
      the Premises to show said Premises to prospective purchasers, mortgagees or
      tenants, and at all times, to inspect the same, to supply janitor service and
      any other service to be provided by Landlord to Tenant under this Lease, to
      show
      said Premises to prospective purchasers, mortgagees or tenants, and to alter,
      improve or repair the Premises and any portion of the Building, without
      abatement of rent, and may for that purpose erect, use and maintain scaffolding,
      pipes, conduits and other necessary structures and open any wall, ceiling or
      floor in and through the Building and Premises where reasonably required by
      the
      character of the work to be performed, provided entrance to the Premises shall
      not be blocked thereby, and further provided that the business of Tenant shall
      not be interfered with unreasonably. Landlord
      shall have the right at any time to change the arrangement and/or locations
      of
      entrances, or passageways, doors and doorways, and corridors, windows,
      elevators, stairs, toilets or other public parts of the Building and to change
      the name, number or designation by which the Building is commonly known. In
      the
      event that Landlord damages any portion of any wall or wall covering, ceiling,
      or floor or floor covering within the Premises, Landlord shall repair or replace
      the damaged portion to match the original as nearly as commercially reasonable
      but shall not be required to repair or replace more than the portion actually
      damaged. 
      In the
      absence of gross negligence or willful misconduct by Landlord, Tenant hereby
      waives any claim for damages for any injury or inconvenience to or interference
      with Tenant’s business, any loss of occupancy or quiet enjoyment of the
      Premises, and any other loss occasioned by any action of Landlord authorized
      by
      this Article 17.

     

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

     

    18. DEFAULT.

     

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

     

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

     

    18.1.2 Tenant
      shall fail to comply with any term, provision or covenant of this Lease which
      is
      not provided for in another Section of this Article and shall not cure such
      failure within twenty (20) days (forthwith, if the failure involves a hazardous
      condition) after written notice of such failure to Tenant provided, however,
      that such failure shall not be an event of default if such failure could not
      reasonably be cured during such twenty (20) day period, Tenant has commenced
      the
      cure within such twenty (20) day period and thereafter is diligently pursuing
      such cure to completion, but the total aggregate cure period shall not exceed
      ninety (90) days.

     

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

     

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

    
      
        
        

      

      
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    18.1.5 A
      court
      of competent jurisdiction shall enter an order, judgment or decree adjudicating
      Tenant bankrupt, or appointing a receiver of Tenant, or of the whole or any
      substantial part of its property, without the consent of Tenant, or approving
      a
      petition filed against Tenant seeking reorganization or arrangement of Tenant
      under the bankruptcy laws of the United States, as now in effect or hereafter
      amended, or any state thereof, and such order, judgment or decree shall not
      be
      vacated or set aside or stayed within sixty (60) days from the date of entry
      thereof.

     

    19. REMEDIES.

     

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

     

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

     

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

     

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

     

    19.1.4 Upon
      any
      termination of Tenant’s right to possession only without termination of the
      Lease:

     

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

     

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

    
      
        
        

      

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

     

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

     

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

     

    19.4 If,
      on
      account of any breach or default by Tenant in Tenant’s obligations under the
      terms and conditions of this Lease, it shall become necessary or appropriate
      for
      Landlord to employ or consult with an attorney or collection agency concerning
      or to enforce or defend any of Landlord’s rights or remedies arising under this
      Lease or to collect any sums due from Tenant, Tenant agrees to pay all costs
      and
      fees so incurred by Landlord, including, without limitation, reasonable
      attorneys’ fees and costs. TENANT
      EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY.

     

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

    
      
        
        

      

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

     

    19.7 To
      secure
      the payment of all rentals and other sums of money becoming due from Tenant
      under this Lease, Landlord shall have and Tenant grants to Landlord a first
      lien
      upon the leasehold interest of Tenant under this Lease, which lien may be
      enforced in equity, and a continuing security interest upon all goods, wares,
      equipment, fixtures, furniture, inventory, accounts, contract rights, chattel
      paper and other personal property of Tenant situated on the Premises, and such
      property shall not be removed therefrom without the consent of Landlord until
      all arrearages in rent as well as any and all other sums of money then due
      to
      Landlord under this Lease shall first have been paid and discharged. Upon the
      occurrence of an Event of Default, Landlord shall have, in addition to any
      other
      remedies provided in this Lease or by law, all rights and remedies under the
      Uniform Commercial Code, including without limitation the right to sell the
      property described in this Section 19.7 at public or private sale upon five
      (5)
      days’ notice to Tenant. Tenant shall execute all such financing statements and
      other instruments as shall be deemed necessary or desirable in Landlord’s
      discretion to perfect the security interest hereby created.
      Upon
      request therefor and payment of Landlord’s legal fees in connection therewith,
      Landlord will subordinate its lien hereunder to a lender with a lien on Tenant’s
      equipment and inventory within the Premises provided that such lender and Tenant
      first execute and deliver to Landlord a Consent and Lien Subordination Agreement
      on Landlord’s required form. 

     

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

     

    19.9 If
      more
      than two (2) Events of Default occurs during the Term or any renewal thereof,
      Tenant’s renewal options, expansion options, purchase options and rights of
      first offer and/or refusal, if any are provided for in this Lease, shall be
      null
      and void.

     

    20. TENANT’S
      BANKRUPTCY OR INSOLVENCY.

     

    20.1 If
      at any
      time and for so long as Tenant shall be subjected to the provisions of the
      United States Bankruptcy Code or other law of the United States or any state
      thereof for the protection of debtors as in effect at such time (each a
“Debtor’s Law”):

     

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

     

    20.1.1.1 Such
      Debtor’s Law shall provide to Tenant’s Representative a right of assumption of
      this Lease which Tenant’s Representative shall have timely exercised and
      Tenant’s Representative shall have fully cured any default of Tenant under this
      Lease.

    
      
        
        

      

      
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    20.1.1.2 Tenant’s
      Representative or the proposed assignee, as the case shall be, shall have
      deposited with Landlord as security for the timely payment of rent an amount
      equal to the larger of: (a) three (3) months’ rent and other monetary charges
      accruing under this Lease; and (b) any sum specified in Article 5; and shall
      have provided Landlord with adequate other assurance of the future performance
      of the obligations of the Tenant under this Lease. Without limitation, such
      assurances shall include, at least, in the case of assumption of this Lease,
      demonstration to the satisfaction of the Landlord that Tenant’s Representative
      has and will continue to have sufficient unencumbered assets after the payment
      of all secured obligations and administrative expenses to assure Landlord that
      Tenant’s Representative will have sufficient funds to fulfill the obligations of
      Tenant under this Lease; and, in the case of assignment, submission of current
      financial statements of the proposed assignee, audited by an independent
      certified public accountant reasonably acceptable to Landlord and showing a
      net
      worth and working capital in amounts determined by Landlord to be sufficient
      to
      assure the future performance by such assignee of all of the Tenant’s
      obligations under this Lease.

     

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

     

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

     

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

     

    22. CASUALTY 

     

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

     

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

     

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

    
      
        
        

      

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

     

    22.5 Notwithstanding
      anything to the contrary contained in this Article: (a) Landlord shall not
      have
      any obligation whatsoever to repair, reconstruct, or restore the Premises when
      the damages resulting from any casualty covered by the provisions of this
      Article 22
      occur
      during the last twelve (12) months of the Term or any extension thereof, but
      if
      Landlord determines not to repair such damages Landlord shall notify Tenant
      and
      if, in the reasonable opinion of Landlord and Tenant, such damages shall render
      any material portion of the Premises untenantable Tenant shall have the right
      to
      terminate this Lease by notice to Landlord within fifteen (15) days after
      receipt of Landlord’s notice; and (b) in the event the holder of any
      indebtedness secured by a mortgage or deed of trust covering the Premises or
      Building requires that any insurance proceeds be applied to such indebtedness,
      then Landlord shall have the right to terminate this Lease by delivering written
      notice of termination to Tenant within fifteen (15) days after such requirement
      is made by any such holder, whereupon this Lease shall end on the date of such
      damage as if the date of such damage were the date originally fixed in this
      Lease for the expiration of the Term.

     

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

     

    23. EMINENT
      DOMAIN. If
      all or
      any substantial part of the Premises shall be taken or appropriated by any
      public or quasi-public authority under the power of eminent domain, or
      conveyance in lieu of such appropriation, either
      party to this Lease shall have the right, at its option, of giving the other,
      at
      any time within thirty (30) days after such taking, notice terminating this
      Lease, except that Tenant may only terminate this Lease by reason of taking
      or
      appropriation, if, in the reasonable opinion of Landlord and Tenant, such taking
      or appropriation shall be
      so
      substantial as to materially interfere with Tenant’s use
      and
      occupancy of the Premises. If neither party to this Lease shall so elect to
      terminate this Lease, the rental thereafter
      to be paid shall be adjusted on a fair and equitable basis under the
      circumstances. In addition to the rights of Landlord above, if any substantial
      part of the Building shall be taken or appropriated by any public or
      quasi-public authority under the power of eminent domain or conveyance in lieu
      thereof, and regardless of whether the Premises or any part thereof are so
      taken
      or appropriated, Landlord shall have the right, at its sole option,
      to terminate
      this Lease. Landlord shall be entitled to any and all income, rent, award,
      or
      any interest whatsoever in or upon any such sum, which may be paid or made
      in
      connection with any such public or quasi-public use or purpose, and Tenant
      hereby assigns to Landlord any interest it may have in or claim to all or any
      part of such sums, other than any separate award which may be made with respect
      to Tenant’s trade fixtures and moving expenses; Tenant shall make no claim for
      the value of any unexpired Term.

     

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

    
      
        
        

      

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

     

    26. SURRENDER
      OF PREMISES.

     

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

     

    26.2 All
      alterations, additions, and improvements in, on, or to the Premises made or
      installed by or for Tenant, including, without limitation, carpeting
      (collectively, “Alterations”), shall be and remain the property of Tenant during
      the Term. Upon the expiration or sooner termination of the Term, all Alterations
      shall become a part of the realty and shall belong to Landlord without
      compensation, and title shall pass to Landlord under this Lease as by a bill
      of
      sale. At the end of the Term or any renewal of the Term or other sooner
      termination of this Lease, Tenant will peaceably deliver up to Landlord
      possession of the Premises, together with all Alterations by whomsoever made,
      in
      the same conditions received or first installed, broom clean and free of all
      debris, excepting only ordinary wear and tear and damage by fire or other
      casualty. Notwithstanding the foregoing, if Landlord elects by notice given
      to
      Tenant at least ten (10) days prior to expiration of the Term, Tenant shall,
      at
      Tenant’s sole cost, remove any Alterations, including carpeting, so designated
      by Landlord’s notice, and repair any damage caused by such removal. Tenant must,
      at Tenant’s sole cost, remove upon termination of this Lease, any and all of
      Tenant’s furniture, furnishings, equipment, movable partitions of less than full
      height from floor to ceiling and other trade fixtures and personal property,
      burglar alarm/surveillance system, as well as all data/telecommunications
      cabling and wiring installed by or on behalf of Tenant, whether inside walls,
      under any raised floor or above any ceiling (collectively, “Personalty”).
      Personalty not so removed shall be deemed abandoned by the Tenant and title
      to
      the same shall thereupon pass to Landlord under this Lease as by a bill of
      sale,
      but Tenant shall remain responsible for the cost of removal and disposal of
      such
      Personalty, as well as any damage caused by such removal. In lieu of requiring
      Tenant to remove Alterations and Personalty and repair the Premises as
      aforesaid, Landlord may, by written notice to Tenant delivered at least thirty
      (30) days before the Termination Date, require Tenant to pay to Landlord, as
      additional rent hereunder, the cost of such removal and repair in an amount
      reasonably estimated by Landlord.

     

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

     

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

    
      
        
        

      

      
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    28. TAXES
      PAYABLE BY TENANT. In
      addition to rent and other charges to be paid by Tenant under this Lease, Tenant
      shall reimburse to Landlord, upon demand, any and all taxes payable by Landlord
      (other than net income taxes except to the extent imposed in lieu of an
      otherwise recoverable tax under this Lease) whether or not now customary or
      within the contemplation of the parties to this Lease: (a) upon, allocable
      to,
      or measured by or on the gross or net rent payable under this Lease, including
      without limitation any margin tax pursuant to Chapter 171 of the Texas Tax
      Code
      (as the same may be amended, renewed, or replaced from time to time) imposed
      on
      Landlord and computed with respect to rents payable under this Lease, and any
      gross income tax or excise tax levied by the State, any political subdivision
      thereof, or the Federal Government with respect to the receipt of such rent;
      (b)
      upon or with respect to the possession, leasing, operation, management,
      maintenance, alteration, repair, use or occupancy of the Premises or any portion
      thereof, including any sales, use or service tax imposed as a result thereof;
      (c) upon or measured by the Tenant’s gross receipts or payroll or the value of
      Tenant’s equipment, furniture, fixtures and other personal property of Tenant or
      leasehold improvements, alterations or additions located in the Premises; (d)
      upon this transaction or any document to which Tenant is a party creating or
      transferring any interest of Tenant in this Lease or the Premises, or (e)
      imposed in lieu of an otherwise recoverable tax hereunder. In addition to the
      foregoing, Tenant agrees to pay, before delinquency, any and all taxes levied
      or
      assessed against Tenant and which become payable during the term hereof upon
      Tenant’s equipment, furniture, fixtures and other personal property of Tenant
      located in the Premises.

     

    29. RELOCATION
      OF TENANT.
      Landlord, at its sole expense, no more than once during the Term of the Lease,
      on at least sixty (60) days prior written notice, may require Tenant to move
      from the Premises to other space within the Building (excluding the first
      (1st
      )
      through third (3rd)
      floor)
      of comparable size and decor in order to permit Landlord to consolidate the
      space leased to Tenant with other adjoining space leased or to be leased to
      another tenant. In the event of any such relocation, Landlord will pay all
      expenses of preparing and decorating the new premises so that they will be
      substantially similar to the Premises from which Tenant is moving, and Landlord
      will also pay the expense of moving Tenant’s furniture and equipment to the
      relocated premises. In such event this Lease
      and
      each and all of the terms and covenants and conditions hereof shall remain
      in
      full force and effect and thereupon
      be deemed applicable to such new space except that revised Reference Pages
      and a
      revised Exhibit
      A
      shall
      become part of this Lease and shall reflect the location of the new
      premises.

     

    30. PARKING.

     

    30.1 During
      the initial Term of this Lease, Tenant agrees to lease from Landlord and
      Landlord agrees to lease to Tenant, the number and type of parking passes as
      set
      forth on the Reference Page of this Lease. This right to park in the Building’s
      parking facilities (the “Parking Facility”) shall be on an unreserved,
      nonexclusive, first come, first served basis, for passenger-size automobiles
      and
      is subject to the following terms and conditions:

     

    30.1.1 Tenant
      shall pay to Landlord, or Landlord’s designated parking operator, the Building’s
      prevailing monthly parking charges, without deduction or offset, on the first
      day of each month during the Term of this Lease. Landlord will notify Tenant
      upon not less than thirty (30) days’ notice of any increases in the monthly
      parking charges prior to billing Tenant any increases. No deductions from the
      monthly charge shall be made for days on which the Parking Facility is not
      used
      by Tenant.

     

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

     

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

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

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

     

    30.1.5 Tenant
      may not assign or sublease its right to park as described in this Article except
      to an assignee or sublessee under this Lease and Landlord may, upon or following
      such assignment or sublease, relocate within the Parking Facility any reserved
      parking spaces then available to Tenant or, convert all or any of such reserved
      parking spaces to unreserved parking spaces. 

     

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

     

    30.2 If
      Tenant
      violates any of the terms and conditions of this Article, the operator of the
      Parking Facility shall have the right to remove from the Parking Facility any
      vehicles hereunder which shall have been involved or shall have been owned
      or
      driven by parties involved in causing such violation, without liability therefor
      whatsoever. Alternatively, Landlord may in its discretion impose a fine of
      $500.00 per violation on Tenant which shall be paid by Tenant as additional
      rent
      hereunder within thirty (30) days of demand therefor. If there are more than
      two
      (2) violations in any twelve (12) month period during the Term by any single
      Tenant employee, contractor or invitee, then Landlord may deny access to the
      Parking Facility by such person. If there are more than three (3) violations
      in
      any twelve (12) month period during the Term, Landlord may cancel Tenant’s right
      to use the Parking Facility pursuant to this Article upon ten (10) days' written
      notice, unless within such ten (10) day period, Tenant cures such default.
      Landlord’s remedies under this Section 30.2 are cumulative and in addition to
      any other rights or remedies available to Landlord at law or equity, or provided
      under this Lease.

     

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

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

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

     

    Tenant
      hereby represents and warrants that neither Tenant, nor any persons or entities
      holding any legal or beneficial interest whatsoever in Tenant, are (i) the
      target of any sanctions program that is established by Executive Order of the
      President or published by the Office of Foreign Assets Control, U.S. Department
      of the Treasury (“OFAC”); (ii) designated by the President or OFAC pursuant to
      the Trading with the Enemy Act, 50 U.S.C. App. § 5, the International Emergency
      Economic Powers Act, 50 U.S.C. §§ 1701-06, the Patriot Act, Public Law 107-56,
      Executive Order 13224 (September 23, 2001) or any Executive Order of the
      President issued pursuant to such statutes as the same may be amended, renewed
      or replaced from time to time; or (iii) named on the following list that is
      published by OFAC: “List of Specially Designated Nationals and Blocked Persons”
as the same may be amended, renewed or replaced from time to time. If the
      foregoing representation is untrue at any time during the Term, an Event of
      Default will be deemed to have occurred, without the necessity of notice to
      Tenant.”

     

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

     

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

     

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

     

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

     

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

     

    38. EXAMINATION
      NOT OPTION.
      Submission of this Lease shall not be deemed to be a reservation of the
      Premises. Landlord shall not be bound by this Lease until it has received a
      copy
      of this Lease duly executed by Tenant and has delivered to Tenant a copy of
      this
      Lease duly executed by Landlord, and until such delivery Landlord reserves
      the
      right to exhibit and lease the Premises to other prospective tenants.
      Notwithstanding anything contained in this Lease to the contrary, Landlord
      may
      withhold delivery of possession of the Premises from Tenant until
      such time as Tenant has paid to Landlord any security deposit required by
      Article 5, the first month’s rent as set forth in Article 3 and any sum owed
      pursuant to this Lease.

     

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

     

    40. RENEWAL
      OPTION.
      Provided
      (i) there has been no more than two (2) Events of Default during the Term,
      (ii)
      Tenant is not in default at the time of exercise of the renewal option hereunder
      permitted, and (iii) Tenant is then in occupation of the entire of the Premises
      leased to Tenant as of the Commencement Date, as the same may be increased
      from
      time to time by agreement between the parties, Tenant shall have the option
      to
      renew this Lease for one (1) additional tem of five (5) years as of the date
      the
      renewal term is to commence, on the same terms and conditions set forth in
      the
      Lease, except as modified by the terms, covenants and conditions as set forth
      below: 

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

    40.1 If
      Tenant
      elects to exercise said option, then Tenant shall provide Landlord with written
      notice no earlier than the date which is twelve (12) months prior to the
      expiration of the initial Term, and no later than the date which is nine (9)
      months prior to the expiration of the initial Term. Time shall be of the essence
      herein so that if Tenant fails to provide such notice, Tenant shall have no
      further or additional right to extend or renew the term of the
      Lease.

     

    40.2 The
      Annual Rent in effect at the expiration of the initial Term of the Lease shall
      be adjusted to reflect the then current fair market rental for comparable space
      in other comparable buildings in the Galleria/West Loop submarket in Houston,
      Texas, accounting for all allowances and leasing concessions, as of the date
      the
      renewal term is to commence, taking into account the specific provisions of
      the
      Lease except to the extent hereunder provided. In no event shall the new Monthly
      Installment of Rent be less than the Monthly Installment of Rent during the
      last
      month of the initial Term. Landlord shall advise Tenant of the new Annual Rent
      and Monthly Installment of Rent for the Premises no later than thirty (30)
      days
      after receipt of Tenant's written request therefor. Said request shall be made
      no earlier than thirty (30) days prior to the date on which Tenant may exercise
      its option under this Article 40. Said notification of the new Annual Rent
      and
      Monthly Installment of Rent may include a provision for its escalation to
      provide for a change in fair market rental between the time of notification
      and
      the commencement of the renewal term. Tenant shall have twenty (20) days from
      said notification to provide Landlord with written notice that Tenant accepts
      or
      rejects the revised Annual Rent and Monthly Installment of Rent. If Tenant
      fails
      to provide such notice, then, at Landlord's election, in its sole and absolute
      discretion, Tenant shall be deemed to have waived its option to renew the Lease,
      and Tenant shall have no further or additional right to extend the term of
      the
      Lease. If Tenant disputes the rate quoted by Landlord and if the parties are
      unable to mutually agree upon a revised rate at least six (6) months prior
      to
      the commencement of the renewal term, Landlord and Tenant shall each appoint
      a
      qualified MAI appraiser with at least ten (10) years commercial property
      experience, doing business in the area in which the Building is located, and
      if
      those two (2) appraisers are unable, within twenty (20) days of their
      appointment, to agree upon the fair market rental of the Premises as of the
      expiration of the then current Term, then, those two independent MAI appraisers
      shall appoint a third MAI appraiser (similarly so qualified) and the majority
      shall decide upon the fair market rental for the Premises as of the expiration
      of the then current Term. The decision of such majority shall be final and
      binding on Landlord and Tenant. Landlord and Tenant shall equally share in
      the
      expense of this appraisal except that in the event the new Annual Rent is found
      to be within ten percent (10%) of the rate last quoted by Landlord prior to
      the
      appointment of Landlord’s appraiser, then Tenant shall bear the full cost of all
      the appraisal process. If Tenant fails to appoint a duly qualified MAI appraiser
      within ten (10) days of Landlord’s notification to Tenant of its appointment of
      an MAI appraiser, then Tenant shall be deemed to have waived its option to
      renew
      the Lease, and Tenant shall have no further or additional right to extend the
      term of the Lease. 

     

    40.3 Tenant
      shall pay for parking spaces allocated to Tenant in accordance with then
      prevailing market rates charged by Landlord as the same may be increased in
      accordance with the Building’s prevailing parking rates from time to time during
      the renewal term upon notice to Tenant.

     

    40.4 The
      Premises shall be taken by Tenant during the renewal term, in its “AS-IS”
condition and Landlord shall have no liability to perform any renovation work
      nor to provide any improvement allowances therefor unless otherwise agreed
      upon
      in the determination of fair market rental. 

     

    40.5 Upon
      exercise of this option, Tenant shall, if so requested by Landlord, execute
      an
      amendment to the Lease confirming the exercise of the option and the new Annual
      Rent and Monthly Installment of Rent for the Premises during the renewal term.
      Landlord's failure to prepare or Tenant's failure to execute such amendment
      shall not affect the validity of the exercise of this option or alter Tenant's
      obligations during the renewal term as determined hereby. 

     

    40.6 This
      option is personal to Petro and
      cannot be exercised by any assignee or sublessee. This option shall no longer
      be
      effective if Tenant subleases or transfers possession of any portion of the
      Premises. In addition, without limitation on any other provisions of this
      Article 40, this option shall terminate and be of no further force or effect
      if
      (i) Landlord terminates Tenant's right to possession due to an Event of Default,
      or (ii) Tenant vacates the Premises for in excess of sixty (60) days for reasons
      other than casualty or approved repairs, or (iii) Landlord determines, in its
      sole but reasonable discretion, that Tenant's financial condition or
      creditworthiness has materially deteriorated since the Lease Reference Date.
      

     

    40.7 Upon
      exercise of the renewal option hereunder, Tenant shall have no further right
      to
      extend the term of the Lease other than by mutual agreement of the parties
      hereto. 

    
      
        
        

      

      
        22

        
          

        

      

      
        
        

      

    

    41. EXPANSION
      OPTION.
      Subject
      to the existing rights of other tenants or occupants of space in the Building,
      provided (i) there is no Event of Default by Tenant during the Term, (ii) Tenant
      is not in default at the time of exercise of the expansion option hereunder
      permitted, and (iii) Tenant is then in occupation of the entire of the Premises
      leased to Tenant as of the Commencement Date, as the same may be increased
      in
      size from time to time during the Term, Tenant shall have a one-time only
      expansion option (the "Expansion Option") during the initial Term only, covering
      additional rentable area on the ninth (9th)
      floor
      of the Building, as hereinafter set forth:

     

    41.1.1 Upon
      the
      written request of Tenant, Landlord shall disclose to Tenant the rentable area
      on the ninth (9th)
      floor
      of the Building that may be available for lease during the initial Term subject
      to existing rights of other tenants or occupants of space in the Building
      ("Potential Expansion Space"). By written notice to Landlord ("Expansion
      Notice"), Tenant shall identify which space it is interested in leasing within
      the Potential Expansion Space ("Expansion Space"). 

     

    41.1.2 Upon
      receipt of Tenant's Expansion Notice, if the Expansion Space or any part thereof
      is available and is not then subject to existing rights of other tenants in
      the
      Building, and if Landlord has not already entered into lease discussions with
      a
      third party, and provided that Landlord approves, in its sole discretion,
      Tenant’s proposed configuration, size and location of the Expansion Space,
      Landlord will prepare and deliver to Tenant an offer (the “Expansion Offer”)
      setting forth the terms on which Landlord is willing to lease the space to
      Tenant. Tenant shall either accept or reject the Expansion Offer within three
      (3) business days of Landlord’s delivery of the same. If Tenant rejects the
      Expansion Offer, or conditionally accepts the same, or makes a counteroffer,
      then this Expansion Option shall no longer apply to the Expansion Space, and
      Landlord, at its discretion, may lease such Expansion Space to a third party
      on
      whatever terms Landlord desires, or may continue to negotiate with Tenant
      subject to Landlord’s right to terminate such negotiations at Landlord’s
      discretion. If the Expansion Offer is accepted or if the parties agree on terms
      during the three (3) business day period, but in either event, are then unable,
      within five (5) business days of delivery of a Lease amendment to Tenant or
      its
      legal counsel, to agree upon the terms of such amendment to provide for the
      addition of the Expansion Space to the Premises, then Landlord is at liberty
      thereafter to discontinue negotiations with Tenant and to lease the Expansion
      Space to any other party on whatever basis Landlord desires. Time shall be
      of
      the essence herein.

     

    41.1.3 Landlord
      will use reasonable diligence to make the Expansion Space available to Tenant
      on
      the date specified in the Expansion Offer. Landlord shall not be liable for
      failure to give possession of the Expansion Space to Tenant on such date, and
      such failure shall not impair the validity of the Lease, or extend the Term,
      but
      the rent for the Expansion Space shall be abated until possession is delivered
      to Tenant and such abatement shall constitute full settlement of all claims
      that
      Tenant might otherwise have against Landlord by reason of such failure to give
      possession of the Expansion Space to Tenant on the date originally identified
      by
      Landlord. 

     

    41.1.4 Tenant
      shall, prior to the beginning of the term for the Expansion Space, execute
      an
      amendment to the Lease provided by Landlord confirming the addition of the
      Expansion Space, Tenant’s Proportionate Share, as revised, and the terms of the
      Expansion Offer including the Annual Rent and the Monthly Installment of Rent
      for the Expansion Space, and the Lease Term for the Expansion Space; provided
      however that Landlord’s failure to prepare or Tenant’s failure to execute such
      amendment shall not affect the validity of the exercise of the option or
      Tenant’s obligations with respect to the Expansion Space. 

     

    41.1.5 This
      option is not transferable; the parties hereto acknowledge and agree that they
      intend that this option shall be personal
      to
      Petro,
      and
      that in no event will any assignee or sublessee have any rights hereunder.
      This
      is a one-time option only. Upon exercise of the Expansion Option, Tenant shall
      have no further expansion options under this Lease. 

     

    41.1.6 Without
      limitation on any other provisions of this Article 41, this option shall
      terminate and be of no further force or effect if (i) Tenant does not timely
      and
      properly exercise the option, (ii) Landlord terminates Tenant's right to
      possession due to an Event of Default, (iii) Tenant vacates the Premises for
      in
      excess of sixty (60) days for reasons other than casualty or approved repairs,
      (iv) Tenant is then in occupation of less than the entire of the Premises
      existing as of the Commencement Date, as the same may be increased in size
      during the Term, (v) there is less than nine (9) months remaining in the Term
      and Tenant has not exercised its renewal option, or (v) Landlord determines,
      in
      its sole but reasonable discretion, that Tenant’s financial condition or credit
      worthiness has materially deteriorated since the Commencement
      Date.

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

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

     

    

     

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                LANDLORD:

              	
                TENANT:

              
	 	 
	
                GATEWAY
                  RIDGECREST, INC.,

                a
                  California corporation

              	
                PETRO
                  RESOURCES CORPORATION

                a
                  Delaware corporation

              
	 	 
	
                By: RREEF
                  Management Company, 

                       
                  a Delaware corporation

              	
                PETRO
                  RESOURCES CORPORATION

                a
                  Delaware corporation

              
	
                 

              	 
	
                
                  By:
                    /s/
                    Jay
                    Jehle                                                               
                    

                

              	
                By:
                  /s/
                  Donald L.
                  Kirkendall                                            
                  

              
	
                
                  Name:
                    Jay Jehle

                

              	
                Name:
                  Donald
                  L. Kirkendall

              
	
                  
                  Title:
                  Managing Director

              	
                Title:
                  President

              
	 	
                Dated:
                  September 30, 2006

              
	
                By:
                  /s/
                  Kim M.
                  Boudreau                                                 
                  

              	 
	
                Name:
                  Kim M. Boudreau

              	 
	
                Title:
                  Vice President, Regional Director

              	 
	
                Dated:
                  September 30, 2006

              	 

      

    

     

    
      
        
        

      

      
        25

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A - FLOOR PLAN DEPICTING THE PREMISES

    

    attached
      to and made a part of Lease bearing the

    Lease
      Reference Date of September 20, 2006 between

    Gateway
      Ridgecrest, Inc., as Landlord and

    Petro
      Resources Corporation, as Tenant

     

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

    

    

    

    
      
        
        

      

      
        26

        
          

        

      

      
        
        

      

    

    EXHIBIT
      A-1 - SITE PLAN

    

    attached
      to and made a part of Lease bearing the

    Lease
      Reference Date of September 20, 2006 between

    Gateway
      Ridgecrest, Inc., as Landlord and

    Petro
      Resources Corporation, as Tenant

     

    

    Exhibit
      A-1 is intended only to show the general location of the Building as of the
      beginning of the Term of this Lease. It does not in any way supersede any of
      Landlord’s rights set forth in Article 17 with respect to arrangements and/or
      locations of public parts of the Building and changes in such arrangements
      and/or locations. It is not to be scaled; any measurements or distances shown
      should be taken as approximate.

     

    
      
        
        

      

      
        A-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      B -- INITIAL ALTERATIONS

    

    attached
      to and made a part of Lease bearing the

    Lease
      Reference Date of September 20, 2006 between

    Gateway
      Ridgecrest, Inc., as Landlord and

    Petro
      Resources Corporation, as Tenant

     

    (Landlord
      does the Initial Work)

     

    (1) Leasehold
      Improvements.
      Tenant
      shall take the Premises in its "AS-IS" condition except for certain leasehold
      improvements (the “Initial Work”) to the Premises which shall be completed in
      accordance with the terms of this Exhibit
      B.
      

     

    (2) Plans
      and Specifications.
      Landlord and Tenant have approved the attached preliminary space plan. Landlord
      shall, at Tenant’s cost, arrange preparation of the construction drawings (the
“Drawings”) based on said space plan and shall then submit the same to Tenant
      for its approval. Tenant’s response shall be given within three (3) business
      days of receipt by Tenant’s construction representative of the Drawings. If
      Tenant disapproves the Drawings then it shall specify in reasonable detail
      its
      required changes or its reasons for disapproval. If Landlord approves the
      changes requested by Tenant then it shall procure the revision of the Drawings
      and resubmit the same. This process shall be repeated until the Drawings are
      agreed. Tenant shall at all times act reasonably and in good faith in connection
      with its review and approval of the Drawings. Tenant acknowledges that the
      Drawings are being prepared in reliance upon the attached space plan that has
      been approved by Tenant prior to its execution of this Lease. If Tenant fails
      to
      respond within the three (3) business day period as aforesaid, then the Drawings
      will be deemed to have been approved. Nothing herein contained or in connection
      with Landlord’s submission of the Drawings shall constitute a representation or
      warranty by Landlord that the Drawings are adequate for any use, purpose, or
      conditions, or that the Drawings comply with any applicable law or
      code.

     

    (3) Changes.
      After
      approval of the Drawings, Tenant may from time to time make changes to the
      Drawings by delivering written notice to Landlord, specifying in detail the
      requested change and, within three (3) business days of receipt of such request,
      Landlord shall advise Tenant if it approves such change failing which such
      requested change shall be deemed disapproved by Landlord. If Tenant requests
      any
      changes to any submitted Drawings and, if Landlord approves such requested
      changes, then any additional costs necessitated thereby shall be included in
      the
      Total Construction Costs (defined below). Landlord’s approval when requested as
      aforesaid shall not be unreasonably withheld provided that (i) the proposed
      changes and Drawings as revised comply with all applicable governmental laws,
      codes, rules, and regulations, (ii) the Drawings as revised are sufficiently
      detailed to allow construction of the Initial Work in a good and workmanlike
      manner, (iii) the Initial Work depicted thereon conforms to the rules and
      regulations promulgated from time to time by the Landlord for the construction
      of tenant improvements, and (iv) Landlord may withhold its consent in its sole
      and absolute discretion to proposed construction work and the working drawings
      pertaining thereto that (A) would adversely affect the Building’s structure, or
      (B) would adversely affect the Building’s HVAC, plumbing, electrical or
      mechanical systems.

     

    (4) Construction
      of the Initial Work.
      Landlord shall competitively bid the Initial Work to at least two (2)
      contractors approved by Landlord and Tenant and will obtain pricing based on
      the
      approved Drawings. Landlord shall then enter into a construction contract with
      the general contractor mutually approved by Landlord and Tenant. The Initial
      Work shall be performed using Building standard materials unless otherwise
      stated in the Drawings. The general contractor shall be responsible for
      obtaining any permits, licenses and governmental approvals required for the
      construction of the Initial Work. Tenant shall cooperate with the general
      contractor to allow the general contractor to apply for and obtain any required
      certificate of occupancy. It shall be a matter for Tenant to satisfy itself
      that
      the Initial Work is in compliance with applicable laws. Landlord assumes no
      liability for special, consequential, or incidental damages of any kind
      whatsoever in connection with the design or construction of the Initial Work
      and
      the obtaining of permits, licenses and approvals, and makes no representations,
      warranties, or guaranties regarding the same, expressed or implied, including,
      without limitation, warranties of merchantability, compliance with applicable
      laws, fitness for a particular purpose, or habitability except that the Initial
      Work shall be performed in accordance with the Drawings. 

    
      
        
        

      

      
        B-1

        
          

        

      

      
        
        

      

    

    (5) Substantial
      Completion.
      When
      the Initial Work is Substantially Completed as provided herein, Landlord will
      notify Tenant and within two (2) business days thereafter, Landlord's
      representative and Tenant's representative or their nominees shall conduct
      a
      walk-through of the Premises and identify any necessary touch-up work, repairs
      and minor completion items that are necessary for final completion of the
      Initial Work. Neither Landlord's representative nor Tenant's representative
      shall unreasonably withhold his or her agreement on punchlist items. Landlord
      shall use reasonable efforts to cause the contractor performing the Initial
      Work
      to complete all punchlist items within thirty (30) days after agreement thereon
      or as soon as reasonably practicable thereafter; however, Landlord shall not
      be
      obligated to engage overtime labor in order to complete such items. As used
      herein “Substantial Completion”, “Substantially Completed”, and any derivations
      thereof mean the Initial Work is substantially completed as reasonably
      determined by Landlord in substantial accordance with the Drawings even though
      minor details of construction, decoration and mechanical adjustments remain
      to
      be completed. 

     

    (6) Construction
      Costs.
      Tenant
      shall bear the entire cost of performing the Initial Work (including, without
      limitation, design of the Initial Work, costs of preparation of the space plan
      and the Drawings, costs of construction labor and materials, electrical usage
      during construction, additional janitorial services, related taxes and insurance
      costs, all of which costs are herein collectively called the “Total Construction
      Costs”) in excess of the Allowance (hereinafter defined). Tenant shall pay to
      Landlord, within thirty (30) days after receipt of an invoice or invoices
      therefor, an amount equal to the estimated Total Construction Costs, less the
      amount of the Allowance. On or prior to Substantial Completion, Landlord will
      provide Tenant with a reasonably detailed itemization of the actual Total
      Construction Costs. The outstanding amount of the Total Construction Costs
      shall
      then be paid within thirty (30) days after receipt by Tenant of an invoice
      or
      invoices therefor. Any late payment of amounts due under this Exhibit
      B
      shall
      bear interest or be subject to a charge as set forth in Section 3.2 of the
      Lease. 

     

    (7) Allowance.
      Landlord shall provide to Tenant an allowance (the “Allowance”) of $62,120.00
      calculated at the rate of $20.00 per rentable square foot in that part of the
      Premises. The Allowance shall be used for (i) construction costs (hard costs),
      (ii) a 3% construction management fee to be paid to Landlord under Paragraph
      (8)
      below, (iii) the cost of the Drawings and the construction documents, and (iv)
      tenant directory and suite signage costs, but no part of the Allowance may
      be
      used for purchase and installation of Tenant’s furniture and inventory. The
      Allowance shall not be disbursed to Tenant in cash, but shall be applied by
      Landlord to the payment of the Total Construction Costs, if, as, and when the
      cost of the Initial Work is actually incurred and paid by Landlord. Up to
      $3,106.00 (namely, $1.00 psf) of any unused portion of the Allowance may be
      used
      towards Tenant’s telecommunication and/or cabling installation costs. Any
      Allowance which has not been used by March
      31, 2007
      shall belong to Landlord absolutely.

     

    (8) Construction
      Management Fee.
      Landlord, or its designated agent or representative, shall supervise the Initial
      Work, contract with the general contractor, make disbursements required to
      be
      made to the contractor, act as a liaison between the general contractor and
      Tenant and coordinate the relationship between the Initial Work, the Building,
      and the Building’s systems. In consideration for Landlord’s construction
      supervision services, Tenant shall pay to Landlord a construction management
      fee
      equal to three percent (3%) of the Total Construction Costs. Such construction
      management fee shall be deducted from the Allowance.

     

    (9) Insurance.
      Unless
      Landlord expressly agrees otherwise in writing all of the leasehold
      improvements, alterations and additions included in the Initial Work shall
      be
      covered at Tenant’s expense throughout the Term up to the full replacement value
      thereof under the All Risk or Special Coverage Form coverage or equivalent
      thereof required to be obtained by Tenant under the Lease. Tenant shall be
      responsible for the repair or replacement of the same in the event of a
      Casualty.

    
      
        
        

      

      
        B-2

        
          

        

      

      
        
        

      

    

    (10) Construction
      Representatives.
      Landlord's and Tenant's representatives for coordination of construction will
      be
      as follows, provided that either party may change its representative upon
      written notice to the other:

     

    Landlord's
      Representative:                Elaine
      Burcham

    RREEF
      Management Company

    777
      Post
      Oak Blvd., Suite 310

    Houston,
      TX 77056

    Phone:
      713/572-9482

    Fax:
      713/572-1594

    Email:
      elaine.burcham@rreef.com

    

     

    Tenant's
      Representative:                   
Don
      Kirkendall 

    Petro
      Resources Corporation

    5100
      Westheimer, Suite 200

    Houston,
      Texas 77056

    Phone:
      713/968-9290

    Fax:
      ___________________

    Email:dkirk@petroresourcescorp.com

    

    

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        B-3

        
          

        

      

      
        
        

      

    

    EXHIBIT
      C - COMMENCEMENT DATE MEMORANDUM

    

    attached
      to and made a part of Lease bearing the

    Lease
      Reference Date of September 20, 2006 between

    Gateway
      Ridgecrest, Inc., as Landlord and

    Petro
      Resources Corporation, as Tenant

     

    [SAMPLE
      ONLY]

     

    COMMENCEMENT
      DATE MEMORANDUM

     

    THIS
      MEMORANDUM, made as of _____, 20_____, by and between _____ (“Landlord”) and
      _____ (“Tenant”).

     

    Recitals:

     

    
      	 	
              A.

            	
              Landlord
                and Tenant are parties to that certain Lease, dated for reference
                _____,
                20_____
                (the “Lease”) for certain premises (the “Premises”) consisting of
                approximately _____
                square feet at the building commonly known as _____.

            

    

     

    
      	 	
              B.

            	
              Tenant
                is in possession of the Premises and the Term of the Lease has
                commenced.

            

    

     

    
      	 	
              C.

            	
              Landlord
                and Tenant desire to enter into this Memorandum confirming the
                Commencement Date, the Termination Date and other matters under the
                Lease.
                

            

    

     

    NOW,
      THEREFORE, Landlord and Tenant agree as follows:

     

    1. The
      actual Commencement Date is _____.

     

    2. The
      actual Termination Date is ______.

     

    3. The
      schedule of the Annual Rent and the Monthly Installment of Rent set forth on
      the
      Reference Pages is deleted in its entirety, and the following is substituted
      therefor:

     

    [insert
      rent schedule]

     

    4. Capitalized
      terms not defined herein shall have the same meaning as set forth in the
      Lease.

     

    IN
      WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
      as
      of the date and year first above written.

     

    
      	
              LANDLORD:

            	
              TENANT:

            
	
                   

            	
                   

            
	
              By: RREEF
                Management Company, a Delaware corporation

            	 
	
              By: 
                DO NOT SIGN

            	
              By: 
                DO NOT SIGN

            
	
              Name:
                     

            	
              Name:
                     

            
	
              Title:
                     

            	
              Title:
                     

            
	
              Dated:
                ________________________________

            	
              Dated:
                _______________________________

            

    

    

    
      
        
        

      

      
        C-1

        
          

        

      

      
        
        

      

    

    EXHIBIT
      D - RULES AND REGULATIONS

     

    attached
      to and made a part of Lease bearing the

    Lease
      Reference Date of September 20, 2006 between

    Gateway
      Ridgecrest, Inc., as Landlord and

    Petro
      Resources Corporation, as Tenant

     

    1. No
      sign,
      placard, picture, advertisement, name or notice shall be installed or displayed
      on any part of the outside or inside of the Building without the prior written
      consent of the Landlord. Landlord shall have the right to remove, at Tenant’s
      expense and without notice, any sign installed or displayed in violation of
      this
      rule. All approved signs or lettering on doors and walls shall be printed,
      painted, affixed or inscribed at Tenant’s expense by a vendor designated or
      approved by Landlord. In addition, Landlord reserves the right to change from
      time to time the format of the signs or lettering and to require previously
      approved signs or lettering to be appropriately altered. Tenant may put Tenant’s
      name on the door of the Premises and, subject to Landlord’s approval at its
      discretion as to location, size and graphics, within the common corridor on
      the
      ninth (9th)
      floor
      of the Building. 

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

     

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

    
      
        
        

      

      
        D-1

        
          

        

      

      
        
        

      

    

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

     

    12. Landlord
      shall in all cases retain the right to control and prevent access to the
      Building of all persons whose presence in the judgment of Landlord would be
      prejudicial to the safety, character, reputation or interests of the Building
      and its tenants, provided that nothing contained in this rule shall be construed
      to prevent such access to persons with whom any tenant normally deals in the
      ordinary course of its business, unless such persons are engaged in illegal
      activities. Landlord reserves the right to exclude from the Building between
      the
      hours of 6 p.m. and 7 a.m. the following day, or such other hours as may be
      established from time to time by Landlord, and on Sundays and legal holidays,
      any person unless that person is known to the person or employee in charge
      of
      the Building or has a pass and is properly identified as an employee of Tenant.
      Tenant shall be responsible for all persons for whom it requests passes and
      shall be liable to Landlord for all acts of such persons. Landlord shall not
      be
      liable for damages for any error with regard to the admission to or exclusion
      from the Building of any person.

     

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

     

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

     

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

     

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

     

    17. Tenant
      shall not install, maintain or operate upon the Premises any vending machine
      without Landlord’s prior written consent, except that Tenant may install food
      and drink vending machines solely for the convenience of its
      employees.

     

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

     

    19. Tenant
      shall not use in any space or in the public halls of the Building any hand
      trucks except those equipped with the rubber tires and side guards or such
      other
      material-handling equipment as Landlord may approve. Tenant shall not bring
      any
      other vehicles of any kind into the Building.

     

    20. Tenant
      shall not permit any motor vehicles to be washed or mechanical work or
      maintenance of motor vehicles to be performed in any parking lot.

     

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

    
      
        
        

      

      
        D-2

        
          

        

      

      
        
        

      

    

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

     

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

     

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

     

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

     

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

     

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

     

    

     

    [REMAINDER
      OF THE PAGE LEFT INTENTIONALLY BLANK]

     

     

    D-3THIRD AMENDMENT TO LEASE AGREEMENT

      NOW COME Central United Life Insurance Company ("Lessor") and GraphOn
Corporation ("Lessee") pursuant to a lease agreement between the parties dated
October 24, 2003 (the "Agreement") and confirm the following:

1.    EFFECTIVE DATE OF THE AMENDMENT

      This Third Amendment becomes effective September 15, 2005 and continues
through the term of the Agreement.

2.    TERM

      Lessor does hereby extend the Lease term for a three (3) year term
commencing on September 15, 2006 and ending on September 14, 2009. Lessee shall
have the right to terminate the Lease at any time during the term by giving a
six (6) month advance written notice to Lessor.

3.    LESSOR'S QUARTERS

      The Lessor will hereby increase the area leased by the Lessee by Two
Thousand and Thirty (2,030) square feet designated by the brown diagonal lines
on the plan attached hereto, said plan being the plan of the second floor of the
office building.

4.    BASE RENT

      Lessee shall pay to Lessor annual rent in the amount of One Hundred
Thousand Ninety Eight Dollars ($100,098.00) the "Base Rent," which base rent is
calculated at Eighteen Dollars ($18.00) per square foot for Five Thousand Five
Hundred Sixty One (5,561) square feet (except for any fractional months at the
beginning and end of each term which shall be prorated). Lessee shall make
payment in equal monthly installments of Eight Thousand Three Hundred Forty One
Dollars and Fifty Cents ($8,341.50) in advance on the first day of each month.

5.    CONTINUATION OF AGREEMENT

      In all other respects, the Agreement shall remain in full force and
effect.

<PAGE>

      IN WITNESS WHEREOF, the parties hereto have executed this Third Amendment
by their officers hereunto duly authorized.

LESSOR:                             CENTRAL UNITED LIFE INSURANCE CO.

Date:  09/11/06                     BY: /s/ Douglas G. Noyes
       --------------                   --------------------
                                        Douglas G. Noyes
                                        Its Duly Authorized Representative

LESSEE:                             GRAPHON CORPORATION

Date:  September 11, 2006           BY: /s/ Richard B. Knowles
       -------------------              -----------------------
                                       Richard B. Knowles
                                       Its Vice President of Engineering

STATE OF NEW HAMPSHIRE
COUNTY OF MERRIMACK

      The foregoing instrument was acknowledged before me this 11th day of
September, 2006 by Douglas G. Noyes, Duly Authorized Representative of Central
United Life Insurance Company.

                                   BY: /s/
                                      -----------------------------
                                      Notary Public

STATE OF NEW HAMPSHIRE
COUNTY OF MERRIMACK

      The foregoing instrument was acknowledged before me this 11th day of
September, 2006 by Richard B. Knowles, Vice President of GraphOn Corporation.

                                   BY: /s/
                                      -----------------------------
                                      Notary Public

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