Document:

Exhibit 10.62

 

1.       BASIC
TERMS. This Section 1 contains the Basic Terms of this Lease between
Landlord and Tenant, named below. Other Sections of the Lease referred to in
this Section 1 explain and define the Basic Terms and are to be read in
conjunction with the Basic Tern)s.

 

1.1.                Effective
Date of Lease: 12/20, 2006 

 

1.2.                Landlord:
Carlyle(FR Houston Investors, L.P., a Delaware limited partnership

 

1.3.                Tenant:
MCFSA, LTD., a Texas limited partnership 

 

1.4.                Premises:
Approximately 5,228 rentable square feet in the building commonly known as
10624 Rockley Road, Houston, Texas 77099 (the “Building”). The Premises are
depicted on Exhibit A-1. 

 

1.5.                Property:
See Exhibit A.

 

1.6.                Lease
Term: Four (4) years Three (3) months Five (5) days (“Term”),
commencing December 27, 2006 (“Commencement Date”) and ending March 31,
2011, subject to Section 2.3 below (“Expiration Date”). 

 

1.7.                Permitted
Uses: (See Section 4.1) Security systems installation and general office
use. 

 

1.8.                Tenant’s
Guarantor: None. 

 

1.9.                Brokers:

 

(A) Tenant’s
Broker:                             Trammel!
Crow Co. (Patrick Rollin~); and 

(B) Landlord’s
Broker:                     FR
Brokerage Services, Inc. 

 

1.10.          Security/Damage Deposit: (See Section 4.4)
$13,592.80 Provided Tenant has not been in default of any terms or conditions
of this Lease, twenty- four (24) months from the Lease Commencement Date,
Landlord agrees to credit $6,796.40 of Tenant’s Security Deposit as Rent to
Tenant’s account with Landlord.

 

1.11.          Initial Estimated Additional Rent Payable by
Tenant: $901.83 per month

 

1.12.          Tenant’s Proportionate Share: 17.95 % of the
Building. 

 

1.13.          Exhibits to Lease: The following exhibits are
attached to and made a part of this Lease: A (Legal Description); A-1
(Depiction of Premises to Tenant Specs); B (Tenant Operations Inquiry Form); C
(Landlord’s Work); D (Confirmation of Commencement Date); E (Broom Clean
Condition and Repair Requirements); F (Termination Option); and G (Tenant
Contact Information). 

 

2.                         LEASE
OF PREMISES; RENT.

 

2.1.  Lease of Premises for Lease Term. Landlord
hereby leases the Premises to Tenant, and Tenant hereby rents the Premises from
Landlord, for the Term and subject to the conditions of this Lease.

 

2.2.  Types of Rental Payments. Tenant shall pay
net base rent to Landlord in monthly installments, in advance, on the first day
of each and every calendar month during the Term of this Lease (the “Base Rent”)
in the amounts and for the periods as set forth below:

 

 

Rental Payments

 

	
   

  	
   

  	
  Monthly Net Base

  	
   

  	
  Estimated

  	
   

  	
  Total Estimated

  	
   

  
	
  Lease Period

  	
   

  	
  Rent

  	
   

  	
  Additional Rent

  	
   

  	
  Monthly Rent

  	
   

  
	
  December 27, 2006- March 31, 2007

  	
   

  	
  $

  	
  0.00  

  	
   

  	
  $

  	
  0.00 

  	
   

  	
  $

  	
  0.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1,
  2007-March 31, 2008

  	
   

  	
  $

  	
  2,496.37

  	
   

  	
  $

  	
  901.83

  	
   

  	
  $

  	
  3,398.20

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1,
  2008 - March 31, 2009

  	
   

  	
  $

  	
  2,574.79

  	
   

  	
  $

  	
  901.83

  	
   

  	
  $

  	
  3,476.62

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1,
  2009-March 31, 2010

  	
   

  	
  $

  	
  2,653.21

  	
   

  	
  $

  	
  901.83

  	
   

  	
  $

  	
  3,555.04

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  April 1,
  2010-March 31, 2011

  	
   

  	
  $

  	
  2,731.63

  	
   

  	
  $

  	
  901.83

  	
   

  	
  $

  	
  3,633.46

  	
   

  
														

 

Tenant shall also pay (a) Tenant’s
Proportionate Share (as set forth in Section 1.12) of Operating Expenses
(as hereinafter defined), and (b) any other amounts owed by Tenant
hereunder (collectively, “Additional Rent”). In the event any monthly
installment of Base Rent or Additional Rent, or both, is not paid within 5 days
of the date when due, a late charge in an amount equal to 5% of the then
delinquent installment of Base Rent and/or Additional Carlyle/FR Houston Investors,
LOCKBOX 730259 (or such other entity designated as Landlord’s management agent,
if any, and if Landlord so appoints such a management agent, the “Agent”), or
pursuant to such other directions as Landlord shall designate in this Lease or
otherwise in writing.

 

2.3.   Covenants Concerning Rental Payments. Tenant
shall pay the Rent promptly when due, without notice or demand, and without any
abatement, deduction or setoff. No payment by Tenant, or receipt or acceptance
by Agent or Landlord, of a lesser amount than the correct Rent shall be deemed
to be other than a payment on account, nor shall any endorsement or statement
on any check or letter accompanying any payment be deemed an accord or
satisfaction, and Agent or Landlord may accept such payment without prejudice
to its right to recover the balance due or to pursue any other remedy available
to Landlord. If the Commencement Date occurs on a day other than the first day
of a calendar month, the Rent due for the first calendar month of the Term
shall be prorated on a per diem basis (based on a 360 day, 12 month year) and
paid to Landlord on the Commencement Date, and the Term will be extended to
terminate on the last day of the calendar month in which the Expiration Date
stated in Section 1.6 occurs.

 

3.    OPERATING EXPENSES.

 

3.1.   Definitional Terms Relating to Additional
Rent. For purposes of this Section and other relevant provisions of the
Lease:

 

3.1.1. Operating
Expenses. The term “Operating Expenses” shall mean all costs and expenses paid
or incurred by Landlord with respect to, or in connection with, the ownership,
repair, restoration, maintenance and operation of the Property. Operating
Expenses may include, but are not limited to, any or all of the following: (i) services
provided directly by employees of Landlord or Agent in connection with the
operation, maintenance or rendition of other services to or for the Property (including,
but not limited to, the Common Areas); (ii) to the extent not separately
metered, billed, or furnished, all charges for utilities and services furnished
to either or both of the Property and the Premises, including, without
limitation, the Common Areas (as hereinafter defined), together with any taxes
on such utilities; (iii) all market-based premiums for commercial
property, casualty, general liability, boiler, flood, earthquake, terrorism and
all other types of insurance provided by Landlord and relating to the Property,
all reasonable administrative costs incurred in connection with the procurement
and implementation of such insurance policies, and all deductibles paid by
Landlord pursuant to insurance policies required to be maintained by Landlord
under this Lease; (iv) management fees to Landlord or Agent or other
persons or management entities actually involved in the management and
operation of the Property, which management fee shall not exceed 4% per annum
of all Rent, collected from all tenants in 

 

 

the Property; (y) any capital improvements made by, or on behalf
of, Landlord to the Property that are either or both (a) designed to
reduce Operating Expenses and  (b) required
to keep the Property in compliance with all governmental laws, rules and
regulations applicable thereto, from time to time, the cost of which capital
improvements shall be reasonably amortized by Landlord over the useful life of
the improvement, in accordance with generally accepted accounting principles; (vi) all
professional fees incurred in connection with the operation, management and
maintenance of the Property; (vii) Taxes, as hereinafter defined in Section 3.1.2;
and (viii) dues, fees or other costs and expenses, of any nature, due and
payable to any association or comparable entity to which Landlord, as owner of
the Property, is a member or otherwise belongs and that governs or controls any
aspect of the ownership and operation of the Property; (ix) any real
estate taxes and common area maintenance expenses levied against, or
attributable to, the Property under any declaration of covenants, conditions
and restrictions, reciprocal easement agreement or comparable arrangement that
encumbers and benefits the Property and other real property (e.g., a business
park); and (x) all costs and expenses incurred to maintain, repair and
replace all or any of the Common Areas.

 

For the purpose of this
Lease, Operating Expenses as defined above, excluding real estate taxes,
insurance and utilities, shall be referred to as “Controllable Operating
Expenses”. Landlord agrees that for the first Operating Year of the Lease,
Tenant’s share of Controllable Operating Expenses shall not exceed Tenant’s share
of the estimated amount impounded during the year for such expenses by more
than ten percent (10)%and that for each Operating Year thereafter~ Tenant’s
share of Controllable Operating Expenses shall not increase by more than ten
percent (10)% over the Controllable Operating Expenses payable by Tenant for
the preceding Operating Year. Tenant acknowledges that Landlord has limited
control over increases in real estate taxes, insurance premiums and utilities,
and that increases in such expenses shall not be subject to the limitation
imposed on Controllable Operating Expenses.

 

3.1.2. Taxes. The term “Taxes,”
as referred to in Section 3.1.1(vii) above shall mean (i) all
governmental taxes, assessments, fees and charges of every kind or nature
(other than Landlord’s income taxes), whether general, special, ordinary or
extraordinary, due at any time or from time to time, during the Term and any
extensions thereof, in connection with the ownership, leasing, or operation of
the Property, or of the personal property and equipment located therein or used
in connection therewith; and (ii) any reasonable expenses incurred by
Landlord in contesting such taxes or assessments and/or the assessed value of
the Property.  For purposes hereof,
Tenant shall be responsible for any Taxes that are due and payable at any time
or from time to time during the Term and for any Taxes that are assessed,
become a lien, or accrue during any Operating Year, which obligation shall
survive the termination or expiration of this Lease.

 

Proportionate Share of
Operating Expenses payable hereunder for the Operating Years in which the Term
begins and ends shall be prorated to correspond to that portion of said
Operating Years occurring within the Term. Tenant’s Proportionate Share of
Operating Expenses and any other sums due and payable under this Lease shall be
adjusted upon receipt of the actual bills therefore, and the obligations of
this Section 3 shall survive the termination or expiration of the Lease.

 

3.3.    Payment of Additional Rent. Landlord shall
have the right to reasonably estimate the Operating Expenses for each Operating
Year.  Upon Landlord’s or Agent’s notice
to Tenant of such estimated amount, Tenant shall pay, on the first day of each
month during that Operating Year, an amount (the “Estimated Additional Rent”)
equal to the estimate of the Tenant’s Proportionate Share of Operating Expenses
divided by 12 (or the fractional portion of the Operating Year remaining at the
time Landlord delivers its notice of the estimated amounts due from Tenant for
that Operating Year). If the aggregate amount of Estimated Additional Rent
actually paid by Tenant during any Operating Year is less than Tenant’s actual
ultimate liability for Operating Expenses for that particular Operating Year,
Tenant shall pay the deficiency within 30 days of Landlord’s Written demand therefore.
If the aggregate amount of Estimated Additional Rent actually paid by Tenant
during a given Operating Year exceeds Tenant’s actual liability for such
Operating Year, the excess shall be credited against the Estimated Additional
Rent next due from Tenant during the immediately subsequent Operating Year,
except that in the event 

 

 

that such excess is paid by Tenant during the final Lease Year, then
upon the expiration of the Term, Landlord or Agent shall pay Tenant the
then-applicable excess promptly after determination thereof.

 

4.    USE OF PREMISES AND COMMON AREAS; SECURITY
DEPOSIT.

 

4.1.   Use of Premises and Property.       The Premises shall be used by the Tenant
for the purpose(s) set forth in Section 1.7 above and for no other
purpose whatsoever. Tenant shall not, at any time, use or occupy, or suffer or
permit anyone to use or occupy, the Premises, or do or permit anything to be
done in the Premises or the Property, in any manner that may (a) violate
any Certificate of Occupancy for the Premises or the Property; (b) cause,
or be liable to cause, injury to, or in any way impair the value or proper
utilization of, all or any portion of the Property (including, but not limited
to, the structural elements of the Property) or any equipment, facilities or
systems therein; (c) constitute a violation of the laws and requirements
of any public authority or the requirements of insurance bodies or the rules and
regulations of the Property, including any covenant, condition or restriction
affecting the Property; (d) exceed the load bearing capacity of the floor
of the Premises; (e) impair or tend to impair the character, reputation or
appearance of the Property; or (f) unreasonably annoy, inconvenience or disrupt
the operations or tenancies of other tenants or users of the Property. On or
prior to the date hereof, Tenant has completed and delivered for the benefit of
Landlord a “Tenant Operations Inquiry Form” in the form attached hereto as Exhibit B
describing the nature of Tenant’s proposed business operations at the Premises,
which form is intended to, and shall be, relied upon by Landlord. From time to
time during the Term (but no more often than once in any twelve month period
unless Tenant is in default hereunder or unless Tenant assigns this Lease or
subleases all or any portion of the Premises, whether or not in accordance with
Section 8), Tenant shall provide an updated and current Tenant Operations
Inquiry Form upon Landlord’s request.

 

4.2.   Use of Common Areas. As used herein, “Common
Areas” shall mean all areas within the Property that are available for the
common use of tenants of the Property and that are not leased or held for the exclusive
use of Tenant or other tenants or licensees, including, but not limited to,
parking areas, driveways, sidewalks, loading areas, access roads, corridors,
landscaping and planted areas. Tenant shall have the nonexclusive right to use
the Common Areas for the purposes intended, subject to such reasonable rules and
regulations as Landlord may uniformly establish from time to time.  Tenant shall not interfere with the rights of
any or all of Landlord, other tenants or licensees, or any other person
entitled to use the Common Areas. Without limitation of the foregoing, Tenant
shall not park or store any vehicles or trailers on, or conduct truck loading
and unloading activities in, the Common Areas in a manner that unreasonably
disturbs, disrupts or prevents the use of the Common Areas by Landlord, other
tenants or licensees or other persons entitled to use the Common Areas. Landlord,
from time to time, may change any or all of the size, location, nature and use
of any of the Common Areas although such changes may result in inconvenience to
Tenant, so long as such changes do not materially and adversely affect Tenant’s
use of the Premises. In addition to the foregoing, Landlord may, at any time,
close or suspend access to any Common Areas to perform any acts in the Common
Areas as, in Landlord’s reasonable judgment, are desirable to improve or
maintain either or both of the Premises and the Property, or are required in
order to satisfy’ Landlord’s obligations under this Lease; provided, however,
that Landlord shall use reasonable efforts to limit any disruption of Tenant’s
use and operation of the Premises in connection therewith. Notwithstanding
anything contained in this Lease to the contrary, if at any time, Landlord
determines, in its sole discretion, that the parking areas at the Property are
or have become overburdened, Landlord may allocate parking on a proportionate
basis or assign parking spaces among all tenants at the Property.

 

4.3.   Signage. Tenant shall not affix any sign of
any size or character to any portion of the Property, without prior written
approval of Landlord, which approval shall not be unreasonably withheld or
delayed. Tenant shall remove all signs of Tenant upon the expiration or earlier
termination of this Lease and immediately repair any damage to either or both
of the Property and the Premises caused by, or resulting from, such removal.

 

4.4.   Security/Damage Deposit. Simultaneously with
the execution and delivery of this Lease, Tenant shall deposit with Landlord or
Agent the sum set forth in Section 1.10 above, in cash (the

 

 

to, amounts due under Section 22.2
of this Lease as a consequence of termination of this Lease or Tenant’s right
to possession), in addition to any other remedies available to Landlord. In the
event the Security is so applied, Tenant shall, upon demand, immediately
deposit with Landlord or Agent a sum equal to the amount so used. If Tenant
fully and faithfully complies with all the covenants and obligations hereunder,
the Security (or any balance thereof) shall be returned to Tenant within 30
days after the last to occur of (i) the date the Term expires or
terminates or (ii) delivery to Landlord of possession of the
Premises.  Landlord may deliver the
Security to any lender with a mortgage lien encumbering the Property or to any
Successor Landlord (defined below), and thereupon Landlord and Agent shall be
discharged from any further liability with respect to the Security.

 

5.    CONDITION AND DELIVERY OF PREMISES.

 

5.1.   Condition of Premises. Tenant agrees that
Tenant is familiar with the condition of both the Premises and the Property,
and Tenant hereby accepts the foregoing on an “AS-IS,” “WHERE-IS” basis, except
as is otherwise expressly and specifically described on Exhibit C attached
hereto and incorporated herein by this reference, it being understood that, if
Landlord has agreed to perform any tenant improvements in or to the Premises in
consideration of Tenant’s entry into this Lease (collectively, “Landlord’s Work”),
all of Landlord’s Work shall be described on Exhibit C.  Tenant acknowledges that neither Landlord nor
Agent, nor any representative of Landlord, has made any representation as to
the condition of the foregoing or the suitability of the foregoing for Tenant’s
intended use. Tenant represents and warrants that Tenant has made its own
inspection of the foregoing. Neither Landlord nor Agent shall be obligated to
make any repairs, replacements or improvements (whether structural or
otherwise) of any kind or nature to the foregoing in connection with, or in
consideration of, this Lease, except as expressly and specifically set forth in
this Lease, including, but not limited to, Exhibit C.

 

5.2.   Delay in Commencement. Landlord shall not be
liable to; Tenant if Landlord does not deliver possession of the Premises to
Tenant on the Commencement Date. The obligations of Tenant under the Lease
shall not be affected thereby, except that the Commencement Date shall be
delayed until Landlord delivers possession of the Premises to Tenant, and the
Lease Term shall be extended by a period equal to the number of days of delay
in delivery of possession of the Premises to Tenant, plus the number of days
necessary to end the Lease Term on the last day of a month.

 

5.3.   Confirmation of Commencement Date. Upon
Landlord’s delivery of possession, and as a condition precedent to such
delivery, of the Premises to Tenant, and Tenant shall deliver to Landlord a Confirmation
of Commencement Date in substantially the form attached hereto as Exhibit D.

 

6.     SUBORDINATION; ESTOPPEL CERTIFICATES;
ATTORNMENT.

 

6.1.   Subordination and Attornment. This Lease is
and shall be subject and subordinate at all times to (a) all ground leases
or underlying leases that may now exist or hereafter be executed affecting
either or both of the Premises and the Property and (b) any mortgage or
deed of trust that may now exist or hereafter be placed upon, and encumber, any
or all of (x) the Property; (y) any ground leases or underlying
leases for the benefit of the Property; and (z) all or any portion of
Landlord’s interest or estate in any of said items. Tenant shall execute and
deliver, within ten (10) days of Landlord’s request, and in the form
reasonably requested by Landlord (or its lender), any documents evidencing the
subordination of this Lease. Tenant hereby covenants and agrees that Tenant shall
attorn to any successor to Landlord.

 

6.2.   Estoppel Certificate. Tenant agrees, from
time to time and within 10 days after request by Landlord, to deliver to
Landlord, or Landlord’s designee, an estoppel certificate stating such matters
pertaining to this Lease as may be reasonably requested by Landlord. Failure by
Tenant to timely execute and deliver such certificate shall constitute a
Default, as defined below (without any obligation to provide any notice thereof
or any opportunity to cure such failure to timely perform).

 

6.3.   Transfer by Landlord. In the event of a sale
or conveyance by Landlord of the Property, the same shall operate to release
Landlord from any future liability for any of the covenants or conditions,
express or implied, herein contained in favor of Tenant, and in such event
Tenant agrees to look solely to 

 

 

Landlord’s successor in interest (“Successor Landlord”) with respect
thereto and agrees to attorn to such successor.

 

7.     QUIET ENJOYMENT. Subject to the provisions
of this Lease, so long as Tenant pays all of the Rent and performs all of its
other obligations hereunder, Tenant shall not be disturbed in its possession of
the Premises by Landlord, Agent or any other person lawfully claiming through
or under Landlord; provided, however, in addition to Landlord’s rights under Section 16
and elsewhere in this Lease, Landlord and Landlord’s agents, employees,
contractors and representatives shall be provided reasonable access to the
Premises such that Landlord and Landlord’s agents, employees, contractors and
representatives may perform the General Maintenance Services (as hereinafter
defined) without undue interruption, delay or hindrance. This covenant shall be
construed as a covenant running with the Property and is not a personal
covenant of Landlord.  Tenant shall not
unreasonably interrupt, delay, prevent or hinder the performance of the General
Maintenance Services by or on behalf of Landlord. Notwithstanding the
foregoing, however, Tenant acknowledges and agrees that Landlord shall have the
unfettered and unilateral right to use portions of the Common Areas (inclusive
of the roof of the Building) for such purposes and uses as Landlord may desire;
provided, however, that in all events and under all circumstances.

 

8.     ASSIGNMENT AND SUBLETTING. Tenant shall
not (a) assign (whether directly or indirectly), in whole or in part, this
Lease, or (b) allow this Lease to be assigned, in whole or in part, by
operation of law or otherwise, including, without limitation, by transfer of a
controlling interest (i.e. greater than a 25% interest) of stock, membership
interests or partnership interests, or by merger or dissolution, which transfer
of a controlling interest, merger or dissolution shall be deemed an assignment
for purposes of this Lease, or (c) mortgage or pledge the Lease, or (d) sublet
the Premises, in whole or in part, without (in the case of any or all of (a) through
(d) above) the prior written consent of Landlord, which consent shall not
be unreasonably withheld or delayed. Tenant may, however, assign this Lease or
sublease a portion of the Premises to a wholly-owned subsidiary, provided that
Tenant advises Landlord, in writing, in advance, and otherwise complies with
the succeeding provisions of this Section 8. In no event shall any
assignment or sublease ever release Tenant or any guarantor from any obligation
or liability hereunder; and in the case of any assignment, Landlord shall
retain all rights with respect to the Security. Any purported assignment,
mortgage, transfer, pledge or sublease made without the prior written consent
of Landlord shall be absolutely null and void. No assignment of this Lease
shall be effective and valid unless and until the assignee executes and
delivers to Landlord any and all documentation reasonably required by Landlord
in order to evidence assignee’s assumption of all obligations of Tenant
hereunder. Regardless of whether or not an assignee or sublessee executes and
delivers any documentation to Landlord pursuant to the preceding sentence, any
assignee or sublessee shall be deemed to have automatically attorned to
Landlord in the event of any termination of this Lease. If this Lease is
assigned, or if the Premises (or any part thereof) are sublet or used or
occupied by anyone other than Tenant, whether or not in violation of this
Lease, Landlord or Agent may (without prejudice to, or waiver of its rights),
collect Rent from the assignee, subtenant or occupant. In the event of an
assignment of this Lease and the payment of consideration from the assignee to
the Tenant in connection therewith, 50% of such consideration shall be paid to
Landlord. With respect to the allocable portion of the Premises sublet, in the
event that the total rent and any other considerations received under any
sublease by Tenant is greater than (on a pro rata and proportionate basis) the
total Rent required to be paid, from time to time, under this Lease, Tenant
shall pay to Landlord fifty percent (50%) of such excess as received from any
subtenant and such amount shall be deemed a Component of the Additional Rent.

 

9.     COMPLIANCE WITH LAWS.

 

9.1.    Compliance with Laws. Tenant shall, at its
sole expense (regardless of the cost thereof), comply with all local, state and
federal laws, rules, regulations and requirements now or hereafter in force and
all judicial and administrative decisions in connection with the enforcement
thereof (collectively, “Laws”), pertaining to either or both of the Premises
and Tenant’s use and occupancy thereof, and including, but not limited to, all
Laws concerning or addressing matters of an environmental nature. If any
license or permit is required for the conduct of Tenant’s business in the
Premises, Tenant, at its expense, shall procure such license prior to the
Commencement Date, and shall maintain such license or permit in good standing
throughout the Term. Tenant shall give prompt notice to Landlord of any written
notice it 

 

 

receives of the alleged violation of any Law or requirement of any governmental
or administrative authority with respect to either or both of the Premises and
the use or occupation thereof.

 

9.2.    Hazardous Materials. If, at any time or
from time to time during the Term (or any extension thereof), any Hazardous
Material (defined below) is generated, transported, stored, used, treated or disposed
of at, to, from, on or in either or both of the Premises and the Property by,
or as a result of any act or omission of, any or all of Tenant and any or all
of Tenant’s Parties (defined below): (i) Tenant shall, at its own cost, at
all times comply (and cause all others to comply) with all Laws relating to
Hazardous Materials, and Tenant shall further, at its own cost, obtain and
maintain in full force and effect at all times all permits and other approvals required
in connection therewith; (ii) Tenant shall promptly provide Landlord or
Agent with complete copies of all communications, permits or agreements with,
from or issued by any governmental authority or agency (federal, state or
local) or any private entity relating in any way to the presence, release,
threat of release, or placement of Hazardous Materials on or in the Premises or
any portion of the Property, or the generation, transportation, storage, use,
treatment, or disposal at, on, in or from the Premises, of any Hazardous
Materials; (iii) Landlord, Agent and their respective agents and employees
shall have the right to either or both (x) enter the Premises and (y) conduct
appropriate tests, at Tenant’s expense, for the purposes of ascertaining Tenant’s
compliance with all applicable Laws or permits relating in any way to the
generation, transport, storage, use, treatment, disposal or presence of
Hazardous Materials on, at, in or from all or any portion of either or both of
the Premises and the Property; and (iv) upon written request by Landlord
or Agent, Tenant shall cause to be performed, and shall provide Landlord with
the results o1 reasonably appropriate tests of air, water or soil to
demonstrate that Tenant complies with all applicable Laws or permits relating
in any way to the generation, transport, storage, use, treatment, disposal or
presence of Hazardous Materials on, at, in or from all or any portion of either
or both of the Premises and the Property. This Section 9.2 does not
authorize the generation, transportation, storage, use, treatment or disposal
of any Hazardous Materials at, to, from, on or in the Premises in contravention
of this Section 9. Tenant covenants to investigate, clean up and otherwise
remediate, at Tenant’s sole expense, any release of Hazardous Materials caused,
contributed to, or created by any or all of (A) Tenant and (B) any or
all of Tenant’s officers, directors, members, managers, partners, invitees,
agents, employees, contractors or representatives (“Tenant Parties”) during the
Term.    Such investigation and
remediation shall be performed only after Tenant has obtained Landlord’s prior
written consent; provided, however, that Tenant shall be entitled to respond
(in a reasonably appropriate manner) immediately to an emergency without first
obtaining such consent. All remediation shall be performed in strict compliance
with Laws and to the reasonable satisfaction of Landlord. Tenant shall not
enter into any settlement agreement, consent decree dangerous, harmful or
injurious, or that presents a risk to public health or to the environment, and
that is or becomes regulated by any Law. The undertakings, covenants and
obligations imposed on Tenant under this Section 9.2 shall survive the
termination or expiration of this Lease.

 

10.    INSURANCE.

 

10.1.       Insurance to be Maintained by Landlord.
Landlord shall maintain: (a) a commercial property insurance policy
covering the Property (at its full replacement cost), but excluding Tenant’s
personal property; (b) commercial general public liability insurance
covering Landlord for claims arising out of liability for bodily injury, death,
personal injury, advertising injury and property damage occurring in and about
the Property and otherwise resulting from any acts and operations of Landlord,
its agents and employees; (c) rent loss insurance; and (d) any other
insurance coverage deemed appropriate by Landlord or required by Landlord’s lender.  All of the coverages described in (a) through
(d) shall be determined from time to time by Landlord, in its sole~
discretion. All insurance maintained by Landlord shall be in addition to and
not in lieu of the insurance required to be maintained by the Tenant.

 

10.2.       Insurance to be Maintained by Tenant.
Tenant shall purchase, at its own expense, and keep in force at all times
during this Lease the policies of insurance set forth below (collectively, “Tenant’s
Policies”). All Tenant’s Policies shall (a) be issued by an insurance
company with a Best’s rating of A or better and otherwise reasonably acceptable
to Landlord and shall be licensed to do business in the state in which the
Property is located; (b) provide that said insurance shall not be canceled
or materially modified unless 30 days’ prior written notice shall have been
given to Landlord; (c) provide for deductible amounts 

 

 

that are reasonably acceptable to Landlord (and its lender, if
applicable) and (d) otherwise be in such form, and included such
coverages, as Landlord may reasonably require. 
The Tenant’s Policies described in (i) and (ii) below shall (1) provide
coverage on an occurrence basis; (2) name Landlord: Carlyle/FR Houston
Investors, L.P. (and its lender, if applicable) as an additional insured; (3) provide
coverage, to the extent insurable, for the indemnity obligations of Tenant
under this Lease; (4) contain a separation of insured parties provision; (5) be
primary, not contributing with, and not in excess of, coverage that Landlord
may carry; and (6) provide coverage with no exclusion for a pollution
incident arising from a hostile fire. 
All Tenant’s Policies (or, at Landlord’s option, Certificates of
Insurance and applicable endorsements, including, without limitation, an “Additional
Insured-Managers or Landlords of Premises’ endorsement) shall be delivered to
Landlord prior to the Commencement Date and renewals thereof shall be delivered
to Landlord’s notice addresses at least 30 days prior to the applicable
expiration date of each Tenant’s Policy. In the event that Tenant fails, at any
time or from time to time, to comply with the requirements of the preceding
sentence, Landlord may (x) order such insurance and charge the cost thereof
to Tenant, which amount shall be payable by Tenant to Landlord upon demand, as
Additional Rent or (y) impose on Tenant, as Additional Rent, a monthly
delinquency fee, for each month during which Tenant fails to comply with the
foregoing obligation, in an amount equal to five percent (5%) of the Base Rent
then in effect. Tenant shall give prompt notice to Landlord and Agent of any
bodily injury, death, personal injury, advertising injury or property damage
occurring in and about the Property.

 

Tenant shall purchase and
maintain, throughout the Term, a Tenant’s Policy(ies) of (i) commercial
generalor excess liability insurance, including personal injury and property
damage, in the amount of not less than $1,000,000.00 per occurrence, and $2,000,000.00
annual general aggregate, per location; (ii) comprehensive automobile
liability insurance covering Tenant, against any personal injuries or deaths of
persons and property damage based upon or arising out of the ownership, use,
occupancy or maintenance of a motor vehicle at the Premises and all areas
appurtenant thereto in the amount of not less than $1,000,000, combined single
limit; (iii) commercial property insurance covering Tenant’s personal
property (at its full replacement cost); and (iv) workers’ compensation
insurance per the applicable state statutes covering all employees of Tenant;
and if Tenant handles, stores or utilizes Hazardous Materials in its business
operations, (v) pollution legal liability insurance.

 

10.3.       Waiver of Subrogation. Notwithstanding
anything to the contrary in this Lease, Landlord and Tenant mutually waive
their respective rights of recovery against each other and each other’s
officers, directors, constituent partners, members, agents and employees, and
Tenant further waives such rights against (a) each lessor under any ground
or underlying lease encumbering the Property and (b) each lender under any
mortgage or deed of trust or other lien encumbering the Property (or any
portion thereof or interest therein), to the extent any loss is insured against
or required to be insured against under this Lease, including, but not limited
to, losses, deductibles or self-insured retentions covered by Landlord’s or
Tenant’s commercial property, general liability, automobile liability or
workers’ compensation policies described above, This provision is intended to
waive, fully and for the benefit of each party to this Lease, any and all
rights and claims that might give rise to a right of subrogation by any
insurance earner. Each party shall cause its respective insurance policy(ies)
to be endorsed to evidence compliance with such waiver.

 

11.    ALTERATIONS.          Tenant may, from time to time, at its
expense, make alterations or improvements in and to the Premises (hereinafter
collectively referred to as “Alterations”), provided that either (x) Tenant
first obtains the written consent of Landlord or (y) the aggregate costs
that Tenant shall incur in order to perform the then-applicable Alterations,
together with those costs that Tenant incurred to perform any Alterations during
the preceding twelve (12) month period do not exceed $1,000, 000 on an aggregate
basis, and do not exceed the performance and installation of the Alterations. Additionally,
before proceeding with any Alterations, Tenant shall (i) at Tenant’s
expense, obtain all necessary governmental permits and certificates for the
commencement and prosecution of Alterations; (ii) if Landlord’s consent is
required for the planned Alteration, submit to Landlord, for its written
approval, working drawings, plans and specifications and all permits for the
work to be done and Tenant shall not proceed with such Alterations until it has
received Landlord’s approval (if required); and (iii) cause those 

 

 

contractors, materialmen and suppliers engaged to perform the
Alterations to deliver to Landlord certificates of insurance (in a form
reasonably acceptable to Landlord) evidencing policies of commercial general
liability insurance (providing the same coverages as required in Section 10.2
above) and workers’ compensation insurance. Such insurance policies shall
satisfy the obligations imposed under Section 10.2. Tenant shall cause the
Alterations to be performed in compliance with all applicable permits, Laws and
requirements of public authorities, and with Landlord’s reasonable rules and
regulations or any other restrictions that Landlord may impose on the
Alterations. Tenant shall cause the Alterations to be diligently performed in a
good and workmanlike manner, using new materials and equipment at least equal
in quality and class to the standards for the Property established by Landlord.
With respect to any and all Alterations for which Landlord’s consent is
required, Tenant shall provide Landlord with “as built” plans, copies of all
construction contracts, governmental permits and certificates and proof of
payment for all labor and materials, including, without limitation, copies of
paid invoices and final lien waivers. If Landlord’s consent to any Alterations
is required, and Landlord provides that consent, then at the time Landlord so
consents, Landlord shall also advise Tenant whether or not Landlord shall
require that Tenant remove such Alterations at the expiration or termination of
this Lease.  If Landlord requires Tenant
to remove the Alterations, then, during the remainder of the Term, Tenant shall
be responsible for the maintenance of appropriate commercial property insurance
pursuant to Section 10.2) therefor; however, if Landlord shall not require
that Tenant remove the Alterations, such Alterations shall constitute Landlord’s
Property and Landlord shall be responsible for the insurance thereof pursuant
to Section 10.1.

 

12.       LANDLORD’S AND TENANT’S PROPERTY. All
fixtures, machinery, equipment, improvements and appurtenances attached to, or
built into, the Premises at the commencement of, or during the Term, whether or
not placed there by or at the expense of Tenant, shall become and remain a part
of the Premises; shall be deemed the property of Landlord (the “Landlord’s
Property”), without compensation or credit to Tenant; and shall not be removed
by Tenant at the Expiration Date unless Landlord requires their removal
(including, but not limited to, Alterations pursuant to Section 11). Further,
any personal property in the Premises on the Commencement Date, movable or
otherwise, unless installed and paid for by Tenant, shall also constitute Landlord’s
Property and shall not be removed by Tenant. Not withstanding anything herein
to the contrary, the exterior sign (the “sign”) placed on the Premises by
Tenant shall not become Landlord’s Property and Tenant shall be required to
remove sign upon expiration of the Term. In no event~ shall Tenant remove any
of the following materials or equipment without Landlord’s prior written
consent (which consent may be given or withheld in Landlord’s sole discretion):
any power wiring or power panels, lighting or lighting fixtures, wall or window
coverings, carpets or other floor coverings, heaters, air conditioners or any
other HVAC equipment, fencing or security gates, or other similar building
operating equipment and decorations. At or before the Expiration Date, or the
date of any earlier termination, Tenant, at its expense, shall remove from the
Premises all of Tenant’s personal property and any Alterations that Landlord
requires be removed pursuant to Section 11, and Tenant shall repair (to Landlord’s
reasonable satisfaction) any damage to the Premises or the Property resulting
from either or both such installation and removal.  Any other items of Tenant’s personal property
that remain in the Premises after the Expiration Date, or following an earlier
termination date, may, at the option of Landlord, be deemed to have been abandoned,
and in such case, such items may be retained by Landlord as its property or be
disposed of by Landlord, in Landlord’s sole and absolute discretion and without
accountability, at Tenant’s expense. Notwithstanding the foregoing, if Tenant
is in default under the terms of this Lease, Tenant may remove Tenant’s
personal property from the Premises only upon the express written direction of
Landlord.

 

13.       REPAIRS AND MAINTENANCE.

 

13.1.     Tenant Repairs and Maintenance.

 

13.1.1. Tenant
Responsibilities. Except for events of damage, destruction or casualty to the
Premises or Property (which are addressed in Section 18), throughout the
Term, Tenant shall, at its sole cost and expense:  (i) both (x) maintain and preserve,
in the same condition as exists on the Commencement Date, subject to normal and
customary wear and tear (the “Same Condition”), and (y) perform any and
all repairs and replacements required in order to so maintain and preserve, in
the Same

 

 

Condition, the Premises and the fixtures and appurtenances therein
(including, but not limited to, the Premises’ plumbing and HVAC systems, all
doors, overhead or otherwise, glass and levelers located in the Premises or
otherwise available in the Property for Tenant’s sole use; and excluding,
however, only those specific components of the Premises for which Landlord is
expressly responsible under Section 13.2); and (ii) except to the
extent Landlord elects to repair and maintain the HVAC systems as part of
General Maintenance Services, maintain, in full force and effect, a
preventative maintenance and service contract with a reputable service provider
for maintenance of the HVAC systems of the Premises (the “HVAC Maintenance
Contract”). In addition to Tenant’s obligations under (i) and (ii) above,
Tenant shall also be responsible for all costs and expenses incurred to perform
any and all repairs and replacements (whether structural or non-structural;
interior or exterior; and ordinary or extraordinary), in and to the Premises
and the Property and the facilities and systems thereof, if and to the extent
that the need for such repairs or replacements arises directly or indirectly
from any act, omission, misuse, or neglect of any or all of Tenant, any of its
subtenants, Tenant’s Parties.

 

13.1.2. General
Maintenance Services. Notwithstanding any of the foregoing, however, from time
to time during the Term, Landlord may elect, in its sole discretion and by
delivery of written notice to Tenant, to perform on behalf of Tenant, all or
some portion of the repairs, maintenance, restoration and replacement in and to
the Premises required to be performed by Tenant under this Lease (any such
repairs, maintenance, restoration and/or replacement activities that Landlord
elects to perform on behalf of Tenant are herein collectively referred to as “General
Maintenance Services”). Tenant shall reimburse Landlord for the cost or value of
all General Maintenance Services provided by Landlord as Additional Rent,
simultaneously with the payment of Operating Expenses as part of Estimated
Additional Rent (on a monthly estimated basis subject to annual reconciliation,
as described in Section 3.3 above). Unless and until Landlord
affirmatively elects to provide General Maintenance Services, nothing contained
herein shall be construed to obligate Landlord to perform any General Maintenance
Services or, except as otherwise expressly provided in Section 13.2, to
repair, maintain, restore or replace any portion of the Premises. Landlord may
from time to time, in its sole discretion, (x) reduce or expand the scope
of the General Maintenance Services that Landlord has elected to provide or (y) revoke
its election to provide any or all of the General Maintenance Services, in
either event, upon delivery of not less than thirty (30) days’ prior written
notice to Tenant.

 

13.1.3. HVAC Maintenance
Contract. The terms and provisions of any such HVAC Maintenance Contract shall
require that the service provider maintain the Premises’ HVAC system in
accordance with the manufacturer’s recommendations and otherwise in accordance
with normal, customary and reasonable practices in the geographic area in which
the Premises is located and for HVAC systems comparable to the Premises’ HVAC
system. If Landlord does not elect to repair and maintain the HVAC systems as part
of General Maintenance Services, or revokes such election at any time after
having made such election, then, within 30 days following either (a) the
Commencement Date or (b) the date on which Landlord advises Tenant that
Landlord will no longer provide General Maintenance Services for the HVAC
system, whichever date is applicable, Tenant shall procure and deliver to
Landlord the HVAC Maintenance Contract. Thereafter, Tenant shall provide to
Landlord a copy of renewals or replacements of such HVAC Maintenance Contract
no later than 30 days prior to the then applicable expiry date of the existing
HVAC Maintenance Contract. If Tenant fails to timely deliver to Landlord the HVAC
Maintenance Contract (or any applicable renewal or replacement thereof), then
Landlord shall have the right to contract directly for the periodic maintenance
of the HVAC systems in the Premises and to charge the cost thereof back to
Tenant as Additional Rent.

 

13.2.    Landlord Repairs. Notwithstanding anything
to the contrary stated herein, Landlord shall repair, replace and restore the (a) foundation,
exterior and interior load-bearing walls, roof structure and roof covering of
the Property and (b) the Common Areas; provided, however, that in the cd~
of both (a) and (b): (i) all costs and expenses so incurred by
Landlord to repair, replace and restore the above items shall constitute
Operating Expenses; provided, however, that with respect to any costs incurred
in the replacement context, those costs shall not constitute an Operating Expense
except to the extent that such costs so qualify under Section 3.1.1(v);
and (ii) notwithstanding (1) above, in the event that any such
repair, replacement or restoration is a Tenant-Related Repair, then Tenant
shall be required to reimburse Landlord 

 

 

for all costs and expenses that Landlord incurs in order to perform
such Tenant-Related Repair, and such reimbursement shall be paid, in full,
within 10 days after Landlord’s delivery of demand therefor.

 

14.    UTILITIES. Tenant shall purchase all utility
services and shall provide for scavenger, cleaning and extermination services.
As provided in Section 3.1.1. above, utility charges may be included
within Operating Expenses; nevertheless, at Landlord’s election or with
Landlord’s consent, (a) Tenant may pay the utility charges for its
Premises directly to the utility or municipality providing such service, and in
that event all charges shall be paid by Tenant before they become delinquent;
and (b) Landlord may directly bill Tenant for its Proportionate Share of utility
expenses when and as such expenses are incurred.  Tenant shall be solely responsible for the
repair and maintenance of any meters necessary in connection with such
services.  Tenant’s use of electrical
energy in the Premises shall not, at any time, exceed the capacity of either or
both of (x) any of the electrical conductors and equipment in or otherwise
servicing the Premises; and (y) the HVAC systems of either or both of the
Premises and the Property.

 

15.    INVOLUNTARY CESSATION OF SERVICES. Landlord
reserves the right, without any liability to Tenant and without affecting
Tenant’s covenants and obligations hereunder, to stop service of any or all of
the HVAC, electric, sanitary, elevator (if any), and other systems serving the
Premises, or to stop any other services required by Landlord under this Lease,
whenever and for so long as may be necessary by reason of (i) accidents,
emergencies, strikes, or the making of repairs or changes which Landlord or
Agent, in good faith, deems necessary or (ii) any other cause beyond
Landlord’s reasonable control. Further, it is also understood and agreed that
Landlord or Agent shall have no liability or responsibility for a cessation of
services to the Premises or to the Property that occurs as a result of causes
beyond Landlord’s or Agent’s reasonable control. No such interruption of service
shall be deemed an eviction or disturbance of Tenant’s use and possession of.
the Premises or any part thereof, or render Landlord or Agent liable to Tenant
for damages, or relieve Tenant from performance of Tenant’s obligations under
this Lease, including, but not limited to, the obligation to pay Rent;
provided, however, that if any interruption of services persists for a period
in excess of five (5) consecutive business days Tenant shall, as Tenant’s sole
remedy, be entitled to a proportionate abatement of Rent to the extent, if any,
of any actual loss of use of the Premises by Tenant.

 

16. LANDLORD’S
RIGHTS.  Landlord, Agent and their
respective agents, employees and representatives shall have the right to enter
and/or pass through the premises at any time or times upon reasonable prior
notice (except in the event of emergency): (a) to examine and inspect the
Premises and to show them to actual and prospective purchasers or mortgagees of
the Property or providers of capital to Landlord and its affiliates; and in
connection with the foregoing, to install a sign at or on the Property to
advertise the Property for lease or sale; (b) to make such repairs,
alterations, additions and improvements in or to all or any portion of either
or both of the Premises and the Property, or the Property’s facilities and
equipment as Landlord is required or desires to make. During the period of nine
(9) months prior to the Expiration Date (or at any time, if Tenant has vacated
or abandoned the Premises or is otherwise in default under this Lease),
Landlord and its agents may exhibit the Premises to prospective tenants.
Additionally, Landlord and Agent shall have the following rights with respect to
the Premises, exercisable without notice to Tenant, without liability to
Tenant, and without being deemed an eviction or disturbance of Tenant’s use or
possession of the Premises or giving rise to any claim for setoff or abatement
of Rent: (i) to have pass keys, access cards, or both, to the Premises;
and (ii) to decorate, remodel, repair, alter or otherwise prepare the
Premises for reoccupancy at any time after Tenant vacates or abandons the
Premises for more than 30 consecutive days or without notice to Landlord of
Tenant’s intention to reoccupy the Premises.

 

17.     NON-LIABILITY AND INDEMNIFICATION.

 

17.1.    Non-Liability. Except with respect to
Landlord’s indemnity under Section 17.3, none of Landlord, Agent, any
other managing agent, or their respective affiliates, owners, partners,
directors, officers, agents and employees shall be liable to Tenant for any
loss, injury, or damage, to Tenant or to any other person, or to its or their
property, irrespective of the cause of such injury, damage or loss. Further,
none of Landlord, Agent, any other managing agent, or their respective
affiliates, owners, partners, 

 

 

directors, officers, agents and employees shall be liable to Tenant (a) for
any damage caused by other tenants or persons in, upon or about the Property,
or caused by operations in construction of any public or quasi-public work,
except as otherwise expressly provided in Section 17.3; (b) with
respect to matters for which Landlord is liable, for consequential or indirect
damages purportedly arising out of any loss of use of the Premises or any
equipment or facilities therein by Tenant or any person claiming through or
under Tenant; (c) for any defect in the Premises or the Property; (d) for
injury or damage to person or property caused by fire, or theft, or resulting
from the operation of heating or air conditioning or lighting apparatus, or
from falling plaster, or from steam, gas, electricity, water, rain, snow, ice,
or dampness, that may leak or flow from any part of the Property, or from the
pipes, appliances or plumbing work of the same, except as otherwise expressly
provided in Section 17.3.

 

17.2.    Tenant Indemnification. Except for the
Landlord’s gross negligence, sole negligence or willful misconduct, Tenant
hereby indemnifies, defends, and holds Landlord, Agent, Landlord’s members and
their respective affiliates, owners, partners, members, directors, officers,
agents and employees (collectively, “Landlord Indemnified Parties”) harmless
from and against any and all Losses (defined below) arising from or in
connection with any or all of: (a) the conduct or management of either or
both the Property and the Premises or any business therein, or any work or
Alterations done, or any condition created by any or all of Tenant and Tenant’s
Parties in or about the Premises during the Term or during the period of time,
if any, prior to the Commencement Date that Tenant has possession of, or is
given access to, the Premises; (b) any act, omission or negligence of any
or all of Tenant and Tenant’s Parties; (c) any accident, injury or damage
whatsoever occurring in, at or upon either or both of the Property and the
Premises and caused by any or all of Tenant and Tenant’s Parties; (d) any
breach by Tenant of any or all of its warranties, representations and covenants
under this Lease; (e) any actions necessary to protect Landlord’s interest
under this Lease in a bankruptcy proceeding or other proceeding under the
Bankruptcy Code; (I) the creation or existence of any Hazardous Materials
in, at, on or under the Premises or the Property, if and to the extent brought
to the Premises or the Property or caused by Tenant or any party within Tenant’s
control; and (g) any violation or alleged violation by any or all of
Tenant and Tenant’s Parties of any Law (collectively, “Tenant’s Indemnified
Matters”). In case any action or proceeding is brought against any or all of
Landlord and the Landlord Indemnified Parties by reason of any of Tenant’s
Indemnified Matters, Tenant, upon notice from any or all of Landlord, Agent or
any Superior Party (defined below), shall resist and defend such action or
proceeding by counsel reasonably satisfactory to, or selected by, Landlord. The
term “Losses” shall mean all claims, demands, expenses, actions, judgments,
damages (actual, but not consequential), penalties, fines, liabilities, losses
of every kind and nature, Suits, administrative proceedings, costs and fees,
including, without limitation, attorneys’ and consultants’ reasonable fees and
expenses, and the costs of cleanup, remediation, removal and restoration, that
are in any way related to any matter covered by the foregoing indemnity. The
provisions of this Section 17.2 shall survive the expiration or
termination of this Lease.

 

17.3.    Landlord Indemnification. Landlord hereby
indemnifies, defends and holds Tenant harmless from and against any and all
Losses actually suffered or incurred by Tenant as the sole and direct result of
any negligent, willful or intentional acts or omissions of any or all of
Landlord, Agent and any parties within the direct and sole control of either or
both of Landlord and Agent. Notwithstanding anything to the contrary set forth in
this Lease, however, in all events and under all circumstances, the liability
of Landlord to Tenant, whether under this Section 17.3 or any other
provision of this Lease, shall be limited to the interest of Landlord in the
Property, and Tenant agrees to look solely to Landlord’s interest in the
Property for the recovery of any judgment or award against Landlord, it being
intended that Landlord shall not be personally liable for any judgment or
deficiency. The provisions of this Section 17.3 shall survive the
expiration or termination of this Lease.

 

17.4.    Force Majeure. Neither the obligations of
Tenant (except the obligation to pay Rent and the obligation to maintain
insurance, and provide evidence thereof, in accordance with Section 10.2)
nor those of Landlord shall be affected, impaired or excused, and neither
Landlord nor Tenant shall have any liability whatsoever to the other, with
respect to any act, event or circumstance arising out of either or both (a) Landlord’s
or Tenant’s, as the case may be, failure to fulfill, or delay in fulfilling any
of its obligations under this Lease (except, with respect to

 

 

18.    DAMAGE OR DESTRUCTION.

 

18.1.  Notification and Repair~ Rent Abatement.    Tenant shall give prompt notice to Landlord
and Agent of (a) any fire or other casualty to the Premises or the
Property, and (b) any damage to, or defect in, any part or appurtenance of
the Property’s sanitary, electrical, HVAC, elevator or other systems located in
or passing through the Premises or any part thereof. In the event that, as a
result of Tenant’s failure to promptly notify Landlord pursuant to the preceding
sentence, Landlord’s insurance coverage is compromised or adversely affected,
then Tenant is and shall be responsible for the payment to Landlord of any
insurance proceeds that Landlord’s insurer fails or refuses to pay to Landlord
as a result of the delayed notification. 
Subject to the provisions of Section 18.2 below, if either or both
of the Property and the Premises is damaged by fire or other insured casualty,
Landlord shall repair (or cause Agent to repair) the damage and restore and
rebuild the Property an/or the Premises (except Tenant’s personal property)
with reasonable dispatch after the adjustment of the insurance proceeds
attributable to such damage. Landlord (or Agent, as the case may be) shall use
its diligent, good faith efforts to make such repair or restoration promptly
and in such manner as not to unreasonably interfere with Tenant’s use and
occupancy of the Premises, but Landlord or Agent shall not be required to do
such repair or restoration work except during normal business hours of business
days. Provided that any damage to either or both of the Property and the
Premises is not caused by, or is not the result of acts or omissions by, any or
all of Tenant and Tenant’s Parties, if (i) the Property is damaged by fire
or other casualty thereby causing the Premises to be inaccessible or (ii) the
Premises are partially damaged by fire or other casualty, the1 Rent shall be proportionally
abated to the extent of any actual loss of use of the Premises by Tenant.

 

18.2.  Total Destruction. If the Property or the
Premises shall be totally destroyed by fire or other casualty, or if the
Property shall be so damaged by fire or other casualty that (iii the reasonable
opinion of a reputable contractor or architect designated by Landlord): (1) its
repair or restoration of the Premises requires more than 180 days or (ii) such
repair or restoration requires the expenditure of more than (a) 80% of the
full insurable value of the Premises immediately prior to the casualty or (b) 50%
of the full insurable value of the Property immediately prior to the casualty,
Landlord and Tenant shall each have the option to terminate this Lease (by so advising
the other, in writing) within 10 days after said contractor or architect
delivers written notice of its opinion to Landlord and Tenant, but in all
events prior to the commencement of any restoration of the Premises or the Property
by Landlord. Additionally, if the damage (x) is less than the amount
stated in (ii) above, but more than 10% of the full insurable value of the
Property; and (y) occurs during the last two years of Lease Term, then Landlord,
but not Tenant, shall have the option to terminate this Lease pursuant to the
notice and within the time period established pursuant to the immediately
preceding sentence. In the event of a termination pursuant to either of the
preceding two (2) sentences, the termination shall be effective as of the
date upon which either Landlord or Tenant, as the case may be, receives timely
written notice from the other terminating this Lease pursuant to the preceding
sentence. If neither Landlord nor Tenant timely delivers a termination notice,
this Lease shall remain in full force and effect. Notwithstanding the
foregoing, if (A) any holder of a mortgage or deed of trust encumbering the
Property or landlord pursuant to a ground lease encumbering the Property
(collectively, “Superior Parties”) or other party entitled to the insurance
proceeds fails to make such proceeds available to Landlord in an amount sufficient
for restoration of the Premises or the Property, or (B) the issuer of any
commercial property insurance policies on the Property fails to make available
to Landlord sufficient proceeds for restoration of the Premises or the Property,
then Landlord may, at Landlord’s sole option, terminate this Lease by giving
Tenant written notice to such effect within 30 days after Landlord receives
notice from the Superior Party or insurance company, as the case may be, that
such proceeds shall not be made available, in which event the termination of
this Lease shall be effective as of the date Tenant receives written notice
from Landlord of Landlord’s election to terminate this Lease. Landlord shall
have no liability to Tenant, and Tenant shall not be entitled to terminate this
Lease by virtue of any delays in completion of repairs and restoration. For
purposes of this Section 18.2 only, “full insurable value” shall mean replacement
cost, less the cost of footings, foundations and other structures below grade.

 

19.    EMINENT
DOMAIN. If the whole, or any substantial (as reasonably determined by Landlord)

 

 

portion, of the Property
is taken or condemned for any public use under any Law or by right of eminent
domain, or by private purchase in lieu thereof, and such taking would prevent
or materially interfere with the Permitted Use of the Premises, this Lease
shall terminate effective when the physical taking of said Premises occurs, if
less than a substantial portion of the Property is so taken or condemned, or if
the taking or condemnation is temporary (regardless of the portion of the
Property affected), this Lease shall not terminate, but the Rent payable
hereunder shall be proportionally abated to the extent of any actual loss of
use of the Premises by Tenant. Landlord shall be entitled to any and all
payment, income, rent or award, or any interest therein whatsoever, which may
be paid or made in connection with such a taking or conveyance, and Tenant
shall have no claim against Landlord for the value of any unexpired portion of
this Lease.  Notwithstanding the
foregoing, any compensation specifically and independently awarded to Tenant
for loss of business or goodwill, or for its personal property, shall be the
property of Tenant.

 

20.    SURRENDER AND HOLDOVER. On the last day of
the Term, or upon any earlier termination of this Lease, or upon any re-entry
by Landlord upon the Premises: (a) Tenant shall quit and surrender the
Premises to Landlord “broom-clean” (as defined by Exhibit E, attached
hereto and incorporated herein by reference), and in a condition that would
reasonably be expected with normal and customary use in accordance with prudent
operating practices and in accordance with the covenants and requirements
imposed under this Lease, subject only to ordinary date otherwise agreed to in
writing by Landlord and Tenant. The obligations imposed under the first
sentence of this Section 20 shall survive the termination or expiration of
this Lease.  If Tenant remains in
possession after the Expiration Date hereof or after any earlier termination
date of this Lease or of Tenant’s right to possession:  (i) Tenant shall be deemed a
tenant-at-will; (ii) Tenant shall pay 200% 150% of the aggregate of all
Rent last prevailing hereunder, and also shall pay all actual damages sustained
by Landlord, directly by reason of Tenant’s remaining in possession after the
expiration or termination of this Lease; (iii) there shall be no renewal
or extension of this Lease by operation of law; and (iv) the
tenancy-at-will may be terminated by either party hereto upon 30 days’ prior
written notice given by the terminating party to the non-terminating
party.  The provisions of this Section 20
shall not constitute a waiver by Landlord of any re-entry rights of Landlord
provided hereunder or by law.

 

21.    EVENTS OF DEFAULT.

 

21.1.  Bankruptcy of Tenant. It shall be a default
by Tenant under this Lease (“Default” or “Event of Default”) if Tenant makes an
assignment for the benefit of creditors, or files a voluntary petition under any
state or federal bankruptcy (including the United States Bankruptcy Code) or
insolvency law, or an involuntary petition is filed against Tenant under any
state or federal bankruptcy (including the United States Bankruptcy Code) or
insolvency law that is not dismissed within 90 days after filing, or whenever a
receiver of Tenant, or of, or for, the property of Tenant shall be appointed,
or Tenant admits it is insolvent or is not able to pay its debts as they
mature.

 

21.2.  Default Provisions. In addition to any
Default arising under Section 21.1 above, each of the following shall
constitute a Default: (a) if Tenant fails to pay Rent or any other payment
when due hereunder within five days after written notice from Landlord of such
failure to pay on the due date; provided, however, that if in any consecutive
12 month period, Tenant shall, on two (2) separate occasions, fail to pay
any installment of Rent on the date such installment of Rent is due, then, on
the third such occasion and on each occasion thereafter on which Tenant shall
fail to pay an installment of Rent on the date such installment of Rent is due,
Landlord shall be relieved from any obligation to provide notice to Tenant, and
Tenant shall then no longer have a five day period in which to cure any such
failure; (b) if Tenant fails, whether by action or inaction, to timely
comply with, or satisfy, any or all of the obligations imposed on Tenant under
this Lease (other than the obligation to pay Rent) for a period of 30 days
after Landlord’s delivery to Tenant of written notice of such default under
this Section 21.2(b); provided, however, that if the default cannot, by
its nature, be cured within such 30 day period, but Tenant commences and diligently
pursues a cure of such default promptly within the initial 30 day cure period,
then Landlord shall not exercise its remedies under Section 22 unless such
default remains uncured for more than 60 days after the initial delivery of
Landlord’s original default notice; and, at Landlord’s election, (c) if
Tenant vacates or abandons the Premises during the Term.

 

 

22.     RIGHTS AND REMEDIES.

 

22.1.  Landlord’s Cure Rights Upon Default of
Tenant. If a Default occurs, then Landlord may (but shall not be obligated to)
cure or remedy the Default for the account of, and at the expense of, Tenant,
but without waiving such Default.

 

22.2.  Landlord’s Remedies.       In the event of any Default by Tenant
under this Lease, Landlord, at its option, may, in addition to any and all
other rights and remedies provided in this Lease or otherwise at law or in
equity do or perform any or all of the following:

 

22.2.1. Terminate Tenant’s
right to possession of the Premises by any lawful means, in which case this
Lease shall terminate and Tenant shall immediately surrender possession to
Landlord. In such event, Landlord shall be entitled to recover from Tenant all
of: (i) the unpaid Rent that is accrued and unpaid as of the date on which
this Lease is terminated; (ii) the worth, at the time of award, of the
amount by which (x) the unpaid Rent that would otherwise be due and
payable under this Lease (had this Lease not been terminated) for the period of
time from the date on which this Lease is terminated through the Expiration
Date exceeds (y) the amount of such rental loss that the Tenant proves
could have been reasonably avoided; and (iii) any other amount necessary
to compensate Landlord for all the detriment proximately caused by the Tenant’s
failure to perform its obligations under this Lease or which, in the ordinary
course of events, would be likely to result therefrom, including but not
limited to, the cost of recovering possession of the Premises, expenses of
reletting, including renovation and alteration of the Premises, reasonable
attorneys’ fees, and that portion of any leasing commission paid by Landlord in
connection with this Lease applicable to the unexpired Term (as of the date on
which this Lease is terminated). The worth, at the time of award, of the amount
referred to in provision (ii) of the immediately preceding sentence shall
be computed by discounting such amount at the current yield, as of the date on
which this Lease is terminated under this Section 22.2.1, on United States
Treasury Bills having a maturity date closest to the stated Expiration Date of
this Lease, plus one percent per annum. Efforts by Landlord to mitigate damages
caused by Tenant’s Default shall not waive Landlord’s right to recover damages
under this Section 22.2. If this Lease is terminated through any unlawful
entry and detainer action, Landlord shall have the right to recover in such
proceeding any unpaid Rent and damages as are recoverable in such action, or
Landlord may reserve the right to recover all or any part of such Rent and
damages in a separate suit; or 22.2.2. Continue the Lease and either (a) continue
Tenants right to possession or (b) 22.2.4. Without limitation of any of
Landlord’s rights in the event of a Default by Tenant, Landlord may also
exercise its rights and remedies with respect to any Security under Section 4.4
above. Any and all personal property of Tenant that may be removed from the
Premises by Landlord pursuant to the authority of this Lease or of law may be
handled, removed or stored by Landlord at the sole risk, cost and expense of Tenant,
and in no event or circumstance shall Landlord 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 for such
property of Tenant so long as the same shall be in Landlord’s possession or under
Landlord’s control. Any such property of Tenant not removed from the Premises
as of the Expiration Date or any other earlier date on which this Lease is
terminated shall be conclusively presumed to have been conveyed by Tenant to
Landlord under this Lease as in a bill of sale, without further payment or
credit by Landlord to Tenant. Neither expiration or termination of this Lease
nor the termination of Tenant’s right to possession shall relieve Tenant from
its liability under the indemnity provisions of this Lease.

 

22.3.  Additional Rights of Landlord. All sums
advanced by Landlord or Agent on account of Tenant under this Section, or
pursuant to any other provision of this Lease, and all Base Rent and Additional
Rent, if delinquent or not paid by Tenant and received by Landlord when due
hereunder, shall bear interest at the rate of 5% per annum above the “prime” or
“reference” or “base” rate (on a per annum basis) of interest publicly
announced as such, from time to time, by the JPMorgan Chase Bank, or its
successor (“Default Interest”), from the due date thereof until paid, and such
interest shall be and constitute Additional Rent and be due and payable upon
Landlord’s or Agent’s submission of an invoice therefor. The various rights,
remedies and elections of Landlord reserved, expressed or contained herein are
cumulative and no one of them shall be deemed to be exclusive of the others or
of 

 

 

such other rights,
remedies, options or elections as are now or may hereafter be conferred upon
Landlord by law.

 

22.4.  Event of Bankruptcy. In addition to, and in
no way limiting the other remedies set forth herein, Landlord and Tenant agree
that if Tenant ever becomes the subject of a voluntary or involuntary
bankruptcy, reorganization, composition, or other similar type proceeding under
the federal bankruptcy laws, as now enacted or hereinafter amended, then: (a) “adequate
assurance of future performance” by Tenant pursuant to Bankruptcy Code Section 365
will include (but not be limited to) payment of an additional/new security
deposit in the amount of three times the then current Base Rent payable
hereunder; (b) any person or entity to which this Lease is assigned, pursuant
to the provisions of the Bankruptcy Code, shall be deemed, without further act
or deed, to have assumed all of the obligations of Tenant arising under this
Lease on and after the effective date of such assignment, and any such assignee
shall, upon demand by Landlord, execute and deliver to Landlord an instrument
confirming such assumption of liability; (c) notwithstanding anything in
this Lease to the contrary, all accounts payable by Tenant to or on behalf of
Landlord under this Lease, whether or not expressly denominated as “Rent”,
shall constitute “rent” for the purposes of Section 502(b)(6) of the
Bankruptcy Code; and (d) if this Lease is assigned to any person or entity
pursuant to the provisions of the Bankruptcy Code, any and all monies or other
considerations payable or otherwise to be delivered to Landlord or Agent
(including Base Rent, Additional Rent and other amounts hereunder), shall be
and remain the exclusive property of Landlord and shall not constitute property
of Tenant or of the bankruptcy estate of Tenant. Any and all monies or other
considerations constituting Landlord’s property under the preceding sentence
not paid or delivered to Landlord or Agent shall be held in trust by Tenant or
Tenant’s bankruptcy estate for the benefit of Landlord and shall be promptly
paid to or turned over to Landlord.

 

23.     BROKER. Tenant covenants, warrants and
represents that the broker set forth in Section 1.9(A) was the only
broker to represent Tenant in the negotiation of this Lease (“Tenant’s Broker”).
Landlord covenants, warrants and represents that the broker set forth in Section 1.9(B) was
the only broker to represent Landlord in the negotiation of this Lease (“Landlord’s
Broker”). Landlord shall be solely responsible for paying the commission of
both Tenant’s Broker and Landlord’s Broker. Each party agrees to and hereby
does defend, indemnify and hold the other harmless against and from any
brokerage commissions or finder’s fees or claims therefor by a party claiming
to have dealt with the indemnifying party and all costs, expenses and
liabilities in connection therewith, including, without limitation, reasonable
attorneys’ fees and expenses, for any breach of the foregoing. The foregoing
indemnification shall survive the termination or expiration of this Lease.

 

24.     MISCELLANEOUS.

 

24.1.  Merger. All prior understandings and agreements
between the parties are merged in this Lease, which alone fully and completely
expresses the agreement of the parties. No agreement shall be effective to modify
this Lease, in whole or in part, unless such agreement is in writing, and is
signed by the party against whom enforcement of said change or modification is
sought.

 

24.2.  Notices. Any notice required to be given by
either party pursuant to this Lease, shall be in writing and shall be deemed to
have been properly given, rendered or made only if (a) personally
delivered, or (b) if sent by Federal Express or other comparable
commercial overnight delivery service, or (c) sent by certified mail, return
receipt requested and postage prepaid, addressed (in the case of any or all of
(a), (b) and (c) above) to the other party at the addresses set forth
below each party’s respective signature block (or to such other address as Landlord
or Tenant may designate to each other from time to time by written notice), and
shall be deemed to have been given, rendered or made (i) on the day so
delivered or (ii) in the case of overnight courier delivery on the first business
day after having been deposited with the courier service and (iii) in the
case of certified mail, on the third obligations of this Lease or of the right
to exercise such election, but the Lease shall continue and remain in full force
and effect with respect to any subsequent breach, act or omission. The receipt
and acceptance by Landlord or Agent of Base Rent or Additional Rent with
knowledge of breach by Tenant of any obligation of this Lease shall not be
deemed a waiver of such breach.

 

 

24.4. Legal Costs. Any
party in breach or default under this Lease (the “Defaulting Party”) shall
reimburse the other party (the “Nondefaulting Party”) upon demand for any legal
fees and court (or other administrative proceeding) costs or expenses that the
Nondefaulting Party incurs in connection with the breach or default, regardless
whether suit is commenced or judgment entered. Such costs shall include legal fees
and costs incurred for the negotiation of a settlement, enforcement of rights
or otherwise.  Furthermore, in the event
of litigation, the court in such action shall award to the party in whose favor
a judgment is entered a reasonable sum as attorneys’ fees and costs, which sum
shall be paid by the losing party. Tenant shall pay Landlord’s attorneys’ reasonable
fees incurred in connection with Tenant’s request for Landlord’s consent under provisions
of this Lease governing assignment and subletting, or in connection with any
other act which Tenant proposes to do and which requires Landlord’s consent.

 

24.5. Parties Bound.
Except as otherwise expressly provided for in this Lease, this Lease shall be
binding upon, and inure to the benefit of, the successors and assignees of the
parties hereto. Tenant hereby releases Landlord named herein from any
obligations of Landlord for any period subsequent to the conveyance and transfer
of Landlord’s ownership interest in the Property. In the event of such conveyance
and transfer, Landlord’s obligations shall thereafter be binding upon each
transferee (whether Successor Landlord or otherwise).  No obligation of Landlord shall arise under
this Lease until the instrument is signed by, and delivered to, both Landlord and
Tenant.

 

24.6. Recordation of
Lease. Tenant shall not record or file this~ Lease (or any memorandum hereof)
in the public records of any county or state.

 

24.7. Governing Law;
Construction. This Lease shall be governed by and construed in accordance with
the laws of the state in which the Property is located. If any provision of
this Lease shall be invalid or unenforceable, the remainder of this Lease shall
not be affected but shall be enforced to the extent permitted by law. The
captions, headings and titles in this Lease are solely for convenience of
reference and shall not affect its interpretation. This Lease shall be
construed without regard to any presumption or other rule requiring
construction against the party causing this Lease to be drafted. Each covenant,
agreement, obligation, or other provision of this Lease to be performed by
Tenant, shall be construed as a separate and independent covenant of Tenant,
not dependent on any other provision of this Lease. All terms and words used in
this Lease Regardless of the number or gender in which they are used, shall be
deemed to include any other number and any other gender as the context may
require. This Lease may be executed in counterpart and, when all counterpart
documents are executed, the counterparts shall constitute a single binding
instrument.

 

24.8. Time. Time is of
the essence for this Lease. If the time for performance hereunder falls on a
Saturday, Sunday or a day that is recognized as a holiday in the state in which
the Property is located, then such time shall be deemed extended to the next
day that is not a Saturday, Sunday or holiday in said state.

 

24.9. Authority of
Tenant. Tenant and the person(s) executing this Lease on behalf of Tenant hereby
represent, warrant, and covenant with and to Landlord as follows: the
individual(s) acting as signatory on behalf of Tenant is(are) duly
authorized to execute this Lease; Tenant has procured (whether from its
members, partners or board of directors, as the case may be), the requisite
authority to enter into this Lease; this Lease is and shall be fully and
completely binding upon Tenant; and Tenant shall timely and completely perform
all of its obligations hereunder.

 

24.10. WAIVER OF TRIAL BY
JURY. THE LANDLORD AND THE TENANT, TO THE FULLEST EXTENT THAT THEY MAY LAWFULLY
DO SO, HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING BROUGHT BY ANY
PARTY TO THIS LEASE WITH RESPECT TO THIS LEASE, THE PREMISES, OR ANY OTHER
MATTER RELATED TO THIS LEASE OR THE PREMISES.

 

24.11. Relocation.
Landlord shall have the right to relocate Tenant from the Premises to 

 

 

comparable (as to size,
configuration and improvements) alternative space in the Property or in another
building that Landlord (or its affiliate) owns in the same business park or
campus in which the Property is located (in either case, the “Replacement
Premises”) upon 90 days’ prior written notice to Tenant.  In the event of such a relocation, Landlord
shall make reasonable, good faith efforts to coordinate with Tenant a mutually
acceptable plan (as to scope and timing) for such relocation, and Landlord
shall be responsible for the third party costs actually incurred to accomplish
the physical relocation of Tenant (movers and telephone company charges). If
the Replacement Premises are larger in size than the original Premises, there
shall be no adjustment in Tenant’s Base Rent; however, Tenant’s Proportionate
Share shall be appropriately modified, thereby resulting in a potential
increase in Tenant’s Additional Rent. If, however, the Replacement Premises is
a smaller size (as to rentable square feet) than the original Premises,
Landlord shall appropriately adjust both Tenant’s Base Rent and its
Proportionate Share.

 

24.12.           Financial Information. From time to time
during the Term, Tenant shall deliver to Landlord that the financial
information delivered to Landlord is true, accurate and complete, and that
there has been no adverse change in the financial condition of Tenant since the
date of the then-applicable financial information.

 

24.13.  Confidential Information. Tenant agrees to
maintain in strict confidence the economic terms of this Lease and any or all
other materials, data and information delivered to or received by any or all of
Tenant and Tenants’ Parties either prior to or during the Term in connection
with the negotiation and execution hereof. The provisions of this Section 24.13
shall survive the termination of this Lease.

 

24.14.  Submission of Lease.  Submission of this Lease to Tenant for
signature does not constitute a reservation of space or an option to lease.
This Lease is not effective until execution by and delivery to both Landlord
and Tenant.

 

24.15.  Lien Prohibition. Tenant shall not permit any
mechanics or materialmen’s liens to attach to the Premises or the Property.
Tenant, at its expense, shall procure the satisfaction or discharge of record
of all such liens and encumbrances within 30 days after the filing thereof or,
within such thirty (30) day period, Tenant shall provide Landlord, at Tenant’s
sole expense, with endorsements (satisfactory, both in form and substance, to Landlord
and the holder of any mortgage or deed of trust) to the existing title
insurance policies of Landlord and the holder of any mortgage or deed of trust,
insuring against the existence of, and any attempted enforcement of, such lien
or encumbrance. In the event Tenant has not so performed, Landlord may, at its
option, pay and discharge such liens and Tenant shall be responsible to
reimburse Landlord, on demand and as Additional Rent under this Lease, for all
costs and expenses incurred in connection therewith, together with Default
Interest thereon, which expenses shall include reasonable fees of attorneys of
Landlord’s choosing, and any costs in posting bond to effect discharge or release
of the lien as an encumbrance against the Premises or the Property.

 

24.16.  Counterparts. 
This Lease may be executed in multiple counterpart~, but all such counterparts
shall together constitute a single, complete and fully-executed document.

 

[Signature Page Follows]

 

LANDLORD:

 

Carlyle/FR Houston
Investors, L.P. 

Delaware limited
partnership

 

By: FR Houston, LP., a
Delaware limited partnership 

Its: Sole General Partner

 

By: FR Houston, GP LLC, a
Delaware limited company 

Its: Sole General Partner

 

 

	
   

  	
  By: First Industrial
  Realty Trust, Inc. a Maryland corporation

  
	
   

  	
  Its: General Partner

  
	
   

  
	
   

  	
  By:

  	
  /Troy MacManc/

  	
   

  
	
   

  	
   

  	
   

  	
  Troy MacManc

  
	
   

  	
   

  	
   

  	
  Regional Director

  
					

 

	
  TENANT:

  	
   

  
	
   

  	
   

  
	
  MCFSA, LTD., a Texas
  Limited partnership

  
	
   

  
	
  By:

  	
  /Robert Roller/ 

  	
   

  
	
   

  	
  President

  
	
   

  	
   

  
	
   

  	
  Date: 12/20/2006 

  
	
   

  	
  Tax Id:  74-302036

  
				

 

	
  Landlord’s Addresses
  for Notices:

  	
  Tenant’s Addresses for
  Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Carlyle/FR Houston
  Investors, L.P.

  	
  MCFSA, LTD.

  
	
  311 South Wacker Drive,
  Suite 4000

  	
  10624 Rockley Road 

  
	
  Chicago, Illinois 60606

  	
  Houston, Texas 77099 

  
	
  Attn: Executive Vice
  President-Operations

  	
  Attn: Robert Roller

  

 

 

With a copy to:

 

First Industrial Realty
Trust, Inc. 

6925 Portwest Drive, Suite 100

Houston, Texas 77024 

Attn: Regional Director

 

With a copy to:

 

Barack Ferrazzano
Kirschbaum Perlman & Nagelberg LLP 

333 West Wacker Drive 

Suite 2700 

Chicago, illinois 60606 

Attn: Suzanne
Bessette-Smith

 

 

Lease Exhibit A-1.  This page is a floor plan and could not
be included in this document as it is not convertible to HTML format for
submission to SCC.

 

Copy of plan may be
requested from Investor Relations if so required.

 

 

LEASE EXHIBIT A

 

ALL THAT CERTAIN 3.9693
ACRES OF LAND AND BEING A PORTION OF BLOCK 2 UNRESTRICTED RESERVE B, SOUTHWEST
PARK~ SECTION 3, ACCORDING TO THE PLAT THEREOF, RECORDED IN VOLUME 221,
PAGE 65, HARRIS COUNTY MAP RECORDS, HARRIS COUNTY, TEXAS AND BEING MORE
PARTICULARLY DESCRIBED BY METES ANT) BOUNDS AS FOLLOWS:

 

COMMENCING AT THE
NORTHEAST CORNER OF RESERVE “B”, LOCATED IN THE WESTERLY RIGHT-OF-WAY LINE OF
BROOKLET DRIVE (60 FEET WIDE);

 

THENCE NORTH 69 DEGREES
58 MINUTES 00 SECONDS WEST - 793.76 FEET, ALONG THE NORTHERLY LINE OF RESERVE “B”,
TO A 5/8 INCH IRON ROD FOUND FOR THE POINT OF BEGINNING OF THE HEREIN DESCRIBED
TRACT;

 

THENCE SOUTH 20 DEGREES
00 MINUTES 00 SECOND WEST ALONG THE COMMON SOUTHEASTERLY LINE OF THE HEREIN
DESCRIBED TRACT AND THE NORTHWESTERLY LINE OF 4.956 ACRES PER HARRIS COUNTY
CLERK’S FILE NO. P233989, 354.80 FEET, TO A 5/8 INCH IRON ROD FOUND LOCATED IN
THE NORTHERLY RIGHT-OF-WAY LINE OF ROCKLEY ROAD (60 FEET WIDE) AND THE
SOUTHERLY LINE OF SAID RESERVE “B”;

 

THENCE NORTH 70 DEGREES
00 MINUTES 00 SECONDS WEST, 4.87.14 FEET, ALONG SAID RIGHT-OF-WAY LINE AND SAID
SOUTHERLY LINE OF RESERVE “B” TO A 5/8 INCH IRON ROD FOUND FOR CORNER;

 

THENCE NORTH 20 DEGREES 00
MINUTES 00 SECONDS EAST ALONG THE COMMON NORTHERLY LINE OF THE HEREIN DESCRIBED
TRACT AND THE SOUTHEASTERLY LINE OF 3.2 12 ACRES OUT OF RESERVE “B”, BLOCK 2
PER HARRIS COUNTY CLERK’S FILE NO. P023084, 355.08 FEET, TO A POINT IN THE
NORTHERLY LINE OF SAID RESERVE “B” FROM SAID POINT A 5/8 INCH IRON ROD FOUND
BEARING SOUTH 64 DEGREES 53 MINUTES 55 SECONDS WEST, 0.46 FEET;

 

THENCE SOUTH 69 DEGREES
58 MINUTES 00 SECONDS EAST ALONG THE COMMON NORTHERLY LINE OF THE HEREIN
DESCRIBED TRACT AND THE SOUTHERLY LINE OF 43.4181 ACRES OUT OF W.E. SANDERS
SURVEY A-1137 PER HARRIS COUNTY CLERK’S FILE NO. G362260, 487.14 FEET, ALONG
SAID NORTHERLY LINE OF RESERVE “B”, TO THE POINT OF BEGINNING AND CONTAINING
3.9693 ACRES (172,906 SQUARE FEET) OF LAND, MORE OR LESS.

 

 

LEASE EXHIBIT B – Tenant
Operations Inquiry Form

 

This page is a table
and could not be included in this document as it is not convertible to HTML
format for submission to SCC.

 

Copy of table may be
requested from Investor Relations if so required.

 

 

LEASE EXHIBIT C –
Landlords work

 

Landlord shall provide to
Tenant a Tenant Improvement Allowance of up to Twenty-Seven Thousand and 00/100
Dollars ($27,000.00) towards Tenant’s costs related to construction of the
improvements to the Premises (which shall include, without limitation, space
planning costs, architectural and engineering fees, general contractor fees and
other similar fees and expenses). Tenant shall bear the entire cost of any
improvements to be installed by Landlord in the premises in excess of the
improvement allowance of Twenty-Seven Thousand and 00/100 Dollars ($27,000.00)
and shall pay for such excess over the Allowance as hereinafter provided. In
the event the improvements and the estimated cost for same exceeds the
Allowance, Tenant shall pay to Landlord prior to commencement of such
construction, an advance payment equal to one-half (1/2) of the amount of such
excess over the Allowance as reasonably estimated by Landlord. Notwithstanding any
provision contained herein to the contrary, it is understood and agreed that
Landlord shall have no obligation to commence installation of any improvements
until (a) Tenant shall have furnished to Landlord and Landlord shall have
approved the final working drawings as required by the provision hereof, (b) Landlord
shall have received Tenants advance payment (described above) for the amount of
the cost of improvements in excess of the Allowance and (c) Landlord and
Tenant shall have approved the total cost of any change order. Upon Substantial
Completion of the installation of the improvements and prior to occupancy by
Tenant, Tenant shall pay Landlord the remainder of the actual amount of the
excess cost incurred over the Allowance. In no event shall credit be given to
Tenant for any Allowance not utilized.

 

INTERIOR IMPROVEMENTS

 

All improvements must
comply with all applicable governmental regulations. Prior to beginning
construction of any such improvements, Tenant shall submit architectural
drawings of the proposed improvements to Landlord.

 

The Tenant Improvement
Allowance shall be used towards the performance of the following improvements:

 

1.  Demo and construct offices to match the floor
plan attached as Exhibit A-i.

 

2.  Provide new carpet and VCT in office areas.

 

Tenant agrees to accept
possession of the Premises on the Lease Commencement Date as stated in Section 1.6.,
prior to the completion of construction. Additionally, MCFSA, LTD., hereby
agrees to indemnify and hold harmless to Carlyle/FR Houston Investors, LP, at
6925 Portwest Drive, Suite 100, Houston, Texas 77024 and Carlyle/FR
Houston Investors, LP at 311 S. Wacker Drive, Suite 4000, Chicago,
Illinois, 60606 against any loss or damage to materials and/or equipment at
10624 Rockley Road, Houston, Texas 77099 during the time period, which construction
is being performed in the space.

 

 

LEASE EXHIBIT D 

Conformation of
Commencement Date

 

(Tenant’s Name and
Address]

 

RE:       [Describe lease, by title and date (the “Lease”);
name Landlord and Tenant]

 

Dear [Name of Contact
Person at Tenant]:

 

This letter shall confirm
that the Commencement Date for the above-referenced Lease is [specify
Commencement Date].

 

[Name of Tenant], as
Tenant, hereby acknowledges the following: (i) Tenant is in possession of
the Premises (as defined in the Lease); (ii) the Lease is in full force
and effect; (iii) Landlord is not in default under the Lease; and (iv) possession
of the Premises is accepted by Tenant as having been delivered in accordance
with the terms and conditions of the Lease.

 

Our records indicate the
following information for the [Number of square feet comprising Premises]
square feet of space:

 

Commencement Date:                                                                                   
200

 

 

Base Rent Commencement Date:                                           
                            
200

 

Next Monthly Base Rent
Due:                                                                      
200

 

Operating Expense
Commencement Date:                                                                 
200_

 

Lease Expiration
Date:                                    
                                            
200

 

Please sign two (2) copies
of this letter in the space provided below acknowledging your agreement with
the above and return them to me at my office. I suggest you attach a copy of
this letter to your copy of the Lease.

 

Thank you again for your
cooperation and assistance regarding this matter. Please contact me at any time
should you have questions regarding the lease, building, or any related
manner.                               
,~. .

 

Sincerely,                                                
Acknowledged and Agreed to this        
day of                                   

                                                     
                   
20

 

[Name]                                                    [Name              of              Tenant] 

Property Manager

 

	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Title:

  

 

 

LEASE EXHIBIT H 

Broom Clean Condition and
Repair Requirements

 

·  All lighting is to be placed into good
working order. This includes replacement of bulbs, ballasts, and lenses as
needed.

 

·  All truck doors and dock levelers should be
serviced and placed in good operating order (including, but not limited to,
overhead door springs, rollers, tracks and motorized door operator). This would
include the necessary (a) replacement of any dented truck door panels,
broken panels and cracked lumber, and (b) adjustment of door tension to
insure proper operation. All door panels that are replaced shall be painted to
match the Building standard.

 

·  All structural steel columns in the warehouse
and office should be inspected for damage, and must be repaired. Repairs of
this nature shall be pre-approved by the Landlord prior to implementation.

 

·  HVAC system shall be in good working order,
including the necessary replacement of any parts to return the unit to a
well-maintained condition. This includes, but is not limited to, filters,
thermostats, warehouse heaters and exhaust fans. Upon move- out, Landlord will
have an exit inspection performed by a certified mechanical contractor to determine
the condition of the HVAC system.

 

·  All holes in the sheet rock walls shall be
repaired prior to move-out. All walls shall be clean.

 

·  The carpets and vinyl tiles shall be in a
clean condition and shall not have any holes or chips in them. Flooring shall
be free of excessive dust, dirt, grease, oil and stains. Cracks in concrete and
asphalt shall be acceptable as long as they are ordinary wear and tear, and are
not the result of misuse.

 

·  Facilities shall be returned in a clean
condition, including, but not limited to, the cleaning of the coffee bar,
restroom areas, windows, and other portions of the Premises.

 

·  There shall be no protrusion of anchors from
the warehouse floor and all holes shall be appropriately patched.    If achinery/equipment is removed, the
electrical lines shall be properly terminated at the nearest junction box.

 

·  All exterior windows with cracks or breakage
shall be replaced. All windows shall be clean.

 

·  Tenant shall provide keys for all locks on
the Premises, including front doors, rear doors, and interior doors.

 

·  All mechanical and electrical systems shall
be left in a safe condition that confirms to code. Bare wires and dangerous installations
shall be corrected to Landlord’s reasonable satisfaction.

 

·  All plumbing fixtures shall be in good
working order, including, but not limited to, the water heater. Faucets and
toilets shall not leak.

 

·  All dock bumpers shall be left in place and well-secured.

 

·  Drop grid ceiling shall be free of excessive
dust from lack of changing filters. No ceiling tiles may be missing or damaged.

 

·  All trash shall be removed from both inside
and outside of the Building.

 

·  All signs in front of Building and on glass
entry door and rear door shall be removed.

 

 

LEASE EXHIBIT F 

Termination Option

 

Provided Tenant has not
been or currently is in default during the term of this Lease, beyond any
applicable notice and cure period, Tenant shall have a one-time option to
terminate this Lease effective on March 31, 2010. This termination option
shall be null and void, and of no further force, unless Tenant complies with
the following provisions for the exercise of this option: 1) at least 180 days
prior to the date on which the early termination would be effective, Tenant
shall deliver to Landlord, in the manner of delivery specified in this Lease
for notices, a letter noticing Landlord of Tenant’s intent to terminate; and
ii) such letter shall be accompanied by a check in the amount of $19,104.00 as
a penalty which includes reimbursement of unamortized Tenant Improvements and Commissions.

 

 

LEASE EXHIBIT G 

Tenant Contact
Information

 

Name:    Gregg Mulliris

 

Address:    10624
Rockely Road 

  Houston, TX 77099

 

Phone: (281) 9245668 

Fax:

 

 

E-mail:gmullins@metroplex-control.com

 

Property Evaluation
Survey Contact

 

Name:                                        

 

 

Address:                                    

 

 

Phone:                                       

 

Fax:

 

E-mail:

 

Accouisting/Biilling
Contact (Please include the address that you would like the monthly rent
statements to be mailed to)

 

Name: Jessica Lewis

 

Address: 10624 Rockely
Road

 

Houston T X 77099 

Phone: (832)5666-269O

 

Fax:

 

 

E-mail :jlewis@metroplex-control.com 

Emergency/Office Contact

 

Name: Gregg Muflins

 

Address.10624 RockeIy
Road            

                Houston
TX 77O99~

Phone: (281) 9245668           

 

Fax:                                 

Mobile:   (281) 9245668Exhibit
10.63

 

LEASE

 

This Lease, entered into by Indiana Automation, Inc.,
(hereinafter referred to as “Landlord”) and Metroplex (hereinafter referred to
as “Tenant”).

 

Witnesseth that Landlord and Tenant, in consideration
of their mutual undertakings, agree as follows:

 

Landlord is in possession of the improved real estate
commonly known as 8001 East 196th Street, Noblesville, IN 46062 as
more specifically described in Exhibit “A”, (the “Building” and the “Warehouse”))
by virtue of a lease with Lodge Ventures, LLC. Landlord hereby agrees to
sub-lease (“Lease”) to Tenant and Tenant hereby agrees to lease from Landlord
approximately Nine Hundred (900) square feet of the Building and the Warehouse
as depicted in Exhibit “B”, together with non-exclusive use of the common
areas depicted in Exhibit “C”, for a term of one (1) year (Tenant’s
leased space herein referred to as the “Leased Premises” and/or the “Property”
and/or the “Common Area”) under the following terms and conditions.

 

1.   BASE RENT

 

During the term of this Lease, Tenant covenants and
agrees to pay to Landlord, without demand, notice or set off, a monthly rental
in advance on or before the first day of each month at 8001 East 196th
Street, Noblesville, IN 46062, or such other addresses as Landlord shall
direct, in the amount of Fifteen Hundred Dollars ($1,500.00) for the Leased Premises
(“Base Rent”).

 

2.   ADDITIONAL
RENT

 

In addition to Base Rent, Tenant shall and agrees to
pay all costs, charges and expenses which Tenant assumes or is obligated to pay
to Landlord or any third-party pursuant to this Lease and the schedules,
(hereinafter referred to as “Additional Rent”), and in the event of
non-payment, Landlord shall have all rights and remedies with respect thereto
as provided in the case of non-payment of rent.

 

3.   TAXES AND
MAINTENANCE

 

A.  Personal
Property Taxes and Assessments. Tenant shall pay and be responsible for any
personal property taxes and/or assessments assessed against the Tenant’s
property during the term of this Lease.

 

B.  Maintenance.     Landlord, after written notice from
Tenant, shall cause to be made repairs necessary to maintain the Leased
Premises in substantially the same condition they are now in, wear and tear
excepted, except for repairs necessitated due to

 

1

 

the acts or neglect of
Tenant, or its officers, members, directors, employees, contractors, licensees,
agents or invitees (the “Tenant Parties”). Tenant shall make all other repairs not
required to be made by Landlord to maintain the Leased Premises in the same condition
they are now in. Tenant agrees not to use or store in the Leased Premises contaminates
or other chemicals which would damage the heating and air conditioning systems,
or any hazardous chemicals. Tenant agrees to promptly notify Landlord verbally and
in writing of any repairs needed or made to the Leased Premises.  Landlord and Landlord’s agents shall have
reasonable access to the Leased Premises to make repairs which are the
responsibility of Landlord.

 

C.    Common
Area Use and Maintenance. Tenant acknowledges that the Common Areas are part of
a mixed use building with restrictive rules (“Rules”) and that they have
been provided with a copy of the Rules, which are subject to change. Tenant shall
be responsible for any damages caused by or additional maintenance required due
to Tenant Parties access and use of the Common Areas.

 

4.    USE AND
COMPLIANCE W1TH LAWS

 

The Leased Premises shall be used by Tenant only for
the purpose of a business office and material storage and for no other use or
purpose. All of Tenant’s business activities shall be conducted inside the
Leased Premises or within such other areas available for Tenant’s use as may be
agreed upon by Landlord and Tenant, and confined to the interior of the
building. Tenant specifically covenants and agrees to adhere to the Rules and
not to use or allow the Leased Premises, Warehouse or Common Areas to be used
in a manner which is in violation of the Rules, offensive to the Landlord,
other tenants or which constitutes a nuisance or annoyance to the Landlord,
other tenants or the community. Common Areas are not available for non-business
use by Tenant during normal business hours without express permission of
Landlord. Common Areas may be available after hours, by reservation only, and
at the sole discretion of Landlord. Landlord reserves the right of prior
approval over any ancillary use of the Leased Premises. Tenant shall keep the
Leased Premises, Warehouse and Common Areas in a clean and orderly condition
and shall conduct its business there from in a careful and safe manner. No
outside storage is allowed at the Leased Premises. Tenant shall keep the
hallways in the Leased Premises and other entryways free from obstructions.
Tenant shall not use the Leased Premises or maintain them in any manner
constituting a violation of the Rules, any ordinance, statute, regulation, or
order of any governmental authority, including without limitation zoning
ordinances, nor shall Tenant maintain, permit, or suffer any nuisance to occur
or exist on the Leased Premises. Tenant shall not use, store, or maintain at
the Leased Premises materials which are a fire hazard, increase casualty or liability
insurance, emit noxious odors, noise levels, or which affect the safety or
well-being of other occupants, tenants, their property, the Building or the
Leased Premises.

 

5.    RENEWAL
AND SURRENDER

 

The term of this Lease shall be automatically extended
by successive one (1) year periods at a rental rate of 107% of the prior
year’s rental rate and, other than the change in rental rate, upon the same
terms and conditions as provided in this Lease unless

 

2

 

Landlord or Tenant
provides written notice to the other that this Lease shall not be automatically
renewed sixty (60) days prior to the expiration of the then current term of this
Lease.

 

Upon the expiration or sooner termination of this
Lease, Tenant shall surrender to Landlord the Leased Premises, together with
all other property affixed to the Leased Premises and lighting fixtures clean
and in the same order and condition in Which Tenant occupied them, the effects
of ordinary wear excepted.  Unless an
event of default as hereinafter defined has occurred and remains uncured,
Tenant shall, prior to the expiration of the term, remove all of Tenants’
personal property from the Leased Premises. 
Any damage to the Leased Premises caused by such removal shall be repaired
by Tenant prior to the expiration of the term. At Landlord’s option, if Tenant
fails to remove unauthorized leasehold improvements and/or personal property,
then the same: (1) shall be deemed property of the Landlord and either
retained by Landlord of sold by Landlord at public or private sale; and/or, (2) shall
be deemed as Tenant’s unauthorized retention of the Leased Premises and Tenant
shall continue to be responsible for rent until the property is removed and the
Leased Premises are restored. If Tenant shall remain in possession of all or
any part of the Leased Premises after the expiration of the term of this Lease,
the same shall not constitute a renewal of this Lease, but with the consent of
the Landlord, Tenant shall be a lessee from month to month at one hundred
fifteen percent (115%) of the immediately preceding monthly Base Rent, plus the
immediately preceding Additional Rent and subject to all of the other
applicable covenants, terms, and conditions hereof. These provisions shall not
be construed to expand option rights, if any, granted in this Lease nor shall
they be utilized by Tenant to avoid any requirements or conditions of such
periods.

 

6.    
ASSIGNMENT AND SUBLETTING

 

Tenant shall not assign, mortgage, encumber, or
transfer this Lease in whole or in part, or sublet the Leased Premises or any
part hereof, nor grant a license or concession in connection therewith without
the prior written consent of the Landlord, which consent shall be in the sole
discretion of Landlord. This prohibition shall include any act which has the
result of a merger, consolidation or liquidation of Tenant or transfer by sale
or otherwise in excess of 10% of the ownership of Tenant during the term of
this Lease, except any transfer or assignment resulting from the death of
Tenant, if a natural person.

 

If Tenant requests Landlord’s consent to Tenant
assignment, subletting or transfer of this Lease as described above, Tenant
agrees to reimburse Landlord for reasonable accounting and attorneys’ fees
incurred in conjunction with the investigative process of reviewing a potential
Tenant and documentation of the assignment or transfer of interest. In the
event Landlord does consent to any type of assignment or transfer described above;
(1) it shall not operate as a waiver of the requirement that this
subsection shall apply to future assignment or subletting; (2) it shall
not relieve Tenant or Tenant’s guarantors from financial liability under this
Lease; and (3) all option periods(and/or first rights of refusal), if any,
allowed under this Lease shall be void and of no force and effect.

 

3

 

7.     
ALTERATIONS AND MAINTENANCE OF LEASED PREM1SES

 

Other than the initial Leasehold improvements
authorized by this Lease, if any, as depicted in Exhibit “ B ”, Tenant shall
not cause or permit any alterations, additions, or changes of or upon any part
of the Leased Premises without first obtaining the written consent of Landlord
which consent shall not be unreasonably withheld. It is understood by Tenant
that no antennas, satellite dishes, or other equipment shall be installed by Tenant
upon the roof of the Leased Premises, walls or grounds of the Building. All alterations,
additions, or changes to the Leased Premises shall be made in accordance with
all applicable laws and shall become property of Landlord.

 

8.      MECHANIC’S
LIENS

 

Tenant shall not permit any Statement of Intention to
hold a Mechanic’s Lien to be filed against the Leased Premises or any part
thereof nor against any interest or estate therein by reason of labor,
services, or materials claimed to have been performed or furnished to or for
Tenant. If such Statement of Intention to hold Mechanic’s Lien shall be filed,
Landlord at its option may compel the prosecution of an action for the
foreclosure of such Mechanic’s Lien by the lienor.  If any such Statement of Intention to hold a Mechanic’s
Lien shall be filed and an action commenced to foreclose the lien, Tenant. upon
demand by Landlord, shall cause the lien to be released by the filing of a
written undertaking with a surety approved by the Court and obtaining an order
from the Court releasing the property from such lien. Nothing in the Lease
shall be deemed or construed to constitute consent to or request to any party
for the performance of any labor or services or the furnishing of any materials
for the improvement, alteration, or repairing of the Leased Premises; nor as
giving Tenant the right or authority to contract for, authorize, or permit the
performance of any labor, service, or the furnishings of any material that
would permit the attaching of a valid Mechanic’s Lien.

 

9.     
INDEMNIFICATION AND RELEASE

 

Regardless of Whether or not separate, several, joint,
or concurrent liability may be imposed upon Landlord, Tenant shall indemnify
and hold harmless Landlord from and against all damages, claims, and liability
arising from or connected with the Tenant’s control or use of the Leased
Premises, including without limitation, any damage or injury to person or
property. This indemnification shall not include any matter for which the Landlord
is effectively protected against by insurance. If Landlord shall, without
material fault, become a party to litigation commenced by or against Tenant,
then Tenant shall indemnify and hold Landlord harmless. The indemnification
provided by this Section shall include Landlord’s legal costs and fees in
connection with any such claim, action, or proceeding.  Tenant does hereby release Landlord from all
liability for any accident, damage, or injury caused to person or property on
or about the Leased Premises. Landlord and Tenant do each hereby release the
other from all liability for an accident, damage or injury caused to person or
property, provided this release shall be effective only to the extent that the
injured or damaged party is insured against such injury or

 

4

 

damage and only if this
release shall not adversely affect the right of the injured or damaged party to
recover under such insurance policy.

 

Anything in this Lease to the contrary notwithstanding,
Landlord and Tenant hereby waive and release each other of and from any and all
rights of recovery, claim, action or cause of action, against each other, their
members, agents, officers and employees, for any loss or damage that may occur
to the Leased Premises and the improvements to the Leased Premises, or personal
property (building contents) within the Leased Premises, by reason of fire, the
elements or any other cause which is covered by the insurance on the Building,
the Leased Premises and/or the contents therein, regardless of cause or origin,
including the negligence of Landlord or Tenant, and their members, agents,
officers and employees.  Because this
paragraph will preclude the assignment of any claim mentioned in it by way of
subrogation (or otherwise) to an insurance company (or any other person), each
party to this Lease agrees immediately to give to each insurance company which
has issued to it policies of fire and extended coverage insurance, written
notice of the terms of the mutual waivers contained in this paragraph, and to
have the insurance policies properly endorsed, if necessary, to prevent the
invalidation of the insurance coverage by reason of the mutual waivers
contained in this paragraph. Additional costs, if any, for the endorsement (s) necessitated
by this clause shall be the responsibility and at the cost of Tenant.

 

10.   (THIS SECTION HAS
BEEN INTENTIONAL LEFT BLANK)

 

11.   EVENTS OF
DEFAULT

 

Any of the following shall be deemed an Event of
Default:

 

A.    The failure
to pay an installment of rent when the same becomes due.

 

B.    Tenant’s
failure to perform or observe any other covenant, term, or condition of this
Lease or related agreement to be performed or observed by Tenant, and if
curable, the failure continues for 15 days after notice thereof is given to
Tenant. To the extent that the cure cannot be reasonably completed within such
period, then 30 days additional time shall be given to complete the cure.

 

C.   
Abandonment of the Leased Premises.

 

D.    The filing
or execution or occurrence of:

 

(1)  An involuntary
petition in bankruptcy against Tenant and the failure of Tenant, in good faith,
to promptly commence and diligently pursue action to dismiss the petition;

 

5

 

(2)  A petition
against Tenant seeking a reorganization, arrangement, composition,
readjustment, liquidation, dissolution, or other relief of the same or
different kind under any provision of state law or the Bankruptcy Act, and the
failure of Tenant, in good faith, to promptly commence and diligently pursue
action to dismiss the petition;

 

(3)  A general
assignment for the benefit of creditors by Tenant; or

 

(4)  The taking by
any party of the leasehold created hereby, or any part thereof, upon foreclosure,
levy, execution, attachment, or other process of law or equity.

 

For purposes of this Section 11
and Section 12, the term “Tenant” shall include any assignee, sublessee,
or guarantor of the Tenant. This provision, however, shall not be construed to
permit the assignment of this Lease, nor the subletting of the Leased Premises,
except as may be permitted hereby.

 

12.   LANDLORD’S
REMEDIES

 

A.    Upon any
occurrence of any Event of Default Landlord may, at its option, in addition to
any other remedy or right it has hereunder or by law:

 

(1)  Preclude Tenant’s
access to the Leased Premises, without demand or notice, and resume possession
by an action in law, and without being liable in trespass or for any damages
and without terminating this Lease.

 

(2)  Re-enter the
Leased Premises, without demand or notice, and resume possession by an action
in law, and without being liable in trespass or for any damages and without
terminating this Lease.  Landlord may
remove all persons and property from the Leased Premises and such property may
be removed and stored at the cost of Tenant.

 

(3)  Terminate this
Lease at any time upon the date specified in a notice to Tenant. Tenant’s
liability for damages shall survive such termination.

 

(4)  Without
terminating this Lease, re-let the Leased Premises without the same being
deemed an acceptance of a surrender of this Lease nor a waiver of Landlord’s
rights or remedies and re-letting by Landlord may be for a period equal to,
less than, or extending beyond the remainder of the original term, or for the
whole or any part of the Leased Premises, separately or with other premises or
for any sum, or to any lessee or for any use Landlord deems appropriate

 

B.    Upon the
occurrence of any of the following:

 

(1)  The filing of a
voluntary petition in bankruptcy by Tenant;

(2)  The filing of a
petition or answer by Tenant seeking a reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or other relief of the same
or different kind under any provision of the Bankruptcy Act;

 

6

 

(3)  An adjudication
of Tenant as a bankrupt or insolvent; 

(4)  The appointment
of a trustee, receiver, guardian, conservator, or liquidator of Tenant with
respect to all or substantially all of its property,

 

if allowed under the then
prevailing law, this Lease shall terminate ipso facto as of such occurrence and
the Leased Premises shall be surrendered as required by Section 5. Tenant’s
liability for damages shall survive such termination, and Landlord shall be
entitled to recover an amount equal to the damages as defined in Section 12.
C. below or an amount equal to the maximum allowed by any statute or rule of
law in effect at the time when and governing the proceedings in which such
amount is sought, whichever is less.

 

C.   Upon the occurrence of any Event of Default,
in addition to the remedies allowed under this Lease, Landlord shall be
entitled to recover, and Tenant shall be liable for Landlord’s actual damages
under this Lease, plus the cost and expenses paid or incurred by Landlord from
time to time in connection with:

 

(1)  Obtaining
possession of the Leased Premises; 

(2)  Removal and
storage of Tenant’s or other occupant’s property; 

(3)  Care,
utilities, maintenance, and repair of the Leased Premises while vacant; 

(4)  Re-letting the
whole or any part of the Leased Premises; 

(5)  Repairing the
Leased Premises into condition acceptable to and reasonably necessary to obtain
new lessees; 

(6)  Making all
repairs, alterations, and improvements required to be made by Tenant hereunder
and of performing all covenants of the Tenant relating to the condition of the
Leased Premises; and 

(7)  All other
damages and remedies available to Landlord under applicable law, less the rent
and other payments, if any, actually collected and allocable to the Leased
Premises, or to the portions thereof, re-let by Landlord.

 

13.  ATTORNEY’S
FEES

 

Each party shall pay the other party’s reasonable
legal costs and attorney’s fees incurred in successfully enforcing against the
other party any covenant, term, or condition of this Lease.

 

14.  KEYS,
ACCESS BY LANDLORD TO LEASED PREMISES

 

Tenant shall not change the locks to the Leased
Premises nor shall Tenant add additional locks or devices to the Leased
Premises without the prior written agreement of Landlord. Landlord shall, at
all times, be provided with keys and access to the Leased Premises.

 

7

 

Landlord, Landlord’s agents, Landlord’s prospective
lessees, purchasers, or mortgagees shall, upon prior notice to tenant, be
permitted to inspect and examine the Leased Premises at all reasonable times,
and Landlord shall have the right to make any repairs to the Leased Premises
which Landlord may deem necessary, but this provision shall not be construed to
require Landlord to make repairs except as is otherwise required hereby. Except
in the case of emergencies, Landlord shall give Tenant reasonable verbal notice
prior to accessing the Leased Premises. For a period commencing six (6) months
prior to the expiration of the term of this Lease, Landlord may maintain “For
Rent” signs on the front or on any part of the Leased Premises.

 

15.   QUIET
ENJOYMENT

 

If Tenant shall perform all of the covenants and
agreements herein provided to be performed on Tenant’s part, Tenant shall, at
all times during the term, have the peaceable and quiet enjoyment of possession
of the Leased Premises without any manner of hindrance from Landlord or any
parties claiming under Landlord.

 

16.   UTILITIES

 

Except for Tenant’s telephone and communication
expense, cleaning, minor maintenance items such as light bulb replacement and
disposables, Landlord shall pay reasonable utility charges for water, sewer,
gas, electricity and office trash disposal utilized at the Leased Premises. In
the event that Tenant utilizes excessive utilities or trash disposal services,
Landlord reserves the right to impose as Additional Rent a surcharge against
Tenant for such usage. Tenant shall not dispose of hazardous waste, toxic,
corrosive, noxious, or oversize trash in or about the Building.

 

17.   SIGNS AND
SIGNAGE

 

Tenant has requested and Landlord has approved Tenant
signage depicted in Exhibit “D”. Any other signs, lettering, advertising,
decoration, lighting, or any other thing of any kind visible from the exterior
of the Leases Premises installed by Tenant shall be first approved in writing
by Landlord, the Owner’s Association and by any civil authority from whom
approval must be obtained and the location, materials utilized and method of installation
of the same shall be as designated or approved by Landlord, and by any civil authority
from whom approval must be obtained. All signage costs shall be borne by Tenant.
Tenant shall not apply for any variance from any civil authority without having
first obtained a written consent from Landlord.

 

18.   INSURANCE

 

Tenant agrees that it will not keep, use, sell, or
offer for sale in or about the Leased Premises any article or articles which
may be prohibited by the standard form of fire and casualty insurance policy.
Tenant agrees to pay any increase in premiums for fire and extended coverage
insurance that may be charged during the term of this Lease on the amount of
such insurance which may be carried by Landlord, resulting from the type of

 

8

 

merchandise sold by
Tenant or articles utilized by Tenant in or about the Leased Premises, whether
or not the Landlord has consented to the same. 
In determining whether increased premiums are the result of Tenant’s use
of the Leased Premises, a schedule issued by the organization making the
insurance rate on the Leased Premises showing the various components of such
rate shall be conclusive evidence of the several items and charges which make
up the fire and extended coverage insurance rate on the Leased Premises.  In the event Tenant’s occupancy or use of the
Leased Premises causes or brings about an increase in insurance premiums, such
increase shall be payable by the Tenant to Landlord as Additional Rent
hereunder upon the next monthly payment date. These provisions, however, shall
not be construed to permit or authorize Tenant to utilize the Leased Premises
for any purpose other than expressly stated in the terms of this Lease.

 

It is expressly understood and agreed that Landlord’s
insurance does not and will not cover Tenant’s personal property or the
contents of or loss of use of the Leased Premises. Landlord shall not be liable
for any damage to the property of Tenant or others located in or about the
Leased Premises, nor for the loss or damage to any property of Tenant or others
by theft or otherwise.

 

It shall be the duty of the Tenant to provide, at its
own expense, liability insurance for the mutual protection of Tenant and
Landlord in an amount sufficient to cover any unforeseeable contingency with
coverage not less than $500,000.00 for injury to one person or incident,
$1,000,000.00 for injury to two or more persons and $1,000,000.00 property
damage.  Copies of such policies shall be
made available to Landlord at Landlord’s request.

 

19.  (THIS SECTION HAS
BEEN INTENTIONAL LEFT BLANK)

 

20.  LATE RENTAL
CHARGES

 

In the event that rental charges are not received by
Landlord within five (5) days of the date of the rental payments are due,
Tenant shall incur and pay to Landlord late rental charges of $75.00 and Five
Dollars ($5.00) per day shall accrue on the sixth and all subsequent days that
Landlord has not received rent and/or Late Rental Charges due under this Lease.

 

21.  ATTORNMENT,
SUBORDINATION AND ESTOPPEL CERTIFICATES

 

Attomment. Upon any transfer of possession of the
Leased Premises, transfer of Landlord’s interest in the Lease Premises or this
Lease, Tenant shall attorney to any person or entity that acquires possession
of the Leased Premises or any of Landlord’s interests in the Leased Premises or
this Lease and recognize such person or entity as Landlord under this Lease. Tenant
agrees that in the event of such transfer, Tenant shall execute any necessary
documents with respect to these attomment provisions and further to pay all
future rental payments to such person or entity upon notice.

 

9

 

Subordination.  Tenant’s
rights under this lease shall be subordinate to the rights of any lien of
mortgage, mortgages or encumbrances now or hereafter encumbering the Leased
Premises or any part thereof now or hereafter existing. The subordination of Tenant’s
rights shall be applicable to any amendment, modification, extension or renewal
of the Lease and/or any mortgage or encumbrance now or hereafter existing. Upon
Landlord’s written request, Tenant shall execute and deliver to Landlord an
agreement, in recordable form, subordinating its rights hereunder to the lien
of any mortgage or mortgages now or hereafter encumbering the Leased Premises
or any part thereof.

 

Estoppel
Certificates.  Within ten (10) days
after Landlord’s written request therefor, Tenant shall deliver to Landlord or
to the mortgagee of the Leased Premises or to any prospective purchaser or
mortgagee of the Leased Premises a written statement, in recordable form,
certifying (if such is the case): that this Lease is in full force and effect and
has not been assigned, modified, supplemented or amended; that all covenants, conditions
and agreements on the part of Landlord hereunder have been performed; such information
required by the purchaser or lender; that there are no defenses or offsets to the
enforcement of this Lease by Landlord or stating those claimed by Tenant; that Tenant
has no claims of any kind by virtue of the Lease; that neither Tenant nor
Landlord is in default under the Lease; that Landlord has completed all
required construction under the Lease and that the Tenant has accepted
possession of the Leased Premises without exception. Tenant further agrees to
provide information as to any amendments or modifications with respect to the
lease.

 

Assignment of Lease.     Tenant acknowledges that in the event this
Lease is assigned as security for any lien of mortgage, mortgages or
encumbrances now or hereafter existing, upon notice from the secured party,
Tenant shall pay all future rental payments to the secured party.

 

22.    ADVANCES
AND INTEREST

 

Upon the occurrence of any Event of Default, Landlord
may, if such default has not been cured, cure that default for the account and
at the expense of Tenant. If Landlord in curing such default is compelled to
pay or elects to pay any sum of money or do any acts which will require the
payment of any sum of money, the sum so paid or incurred shall be reimbursed by
Tenant upon demand by Landlord. All sums as to which Tenant is in default of
payment shall bear interest at the rate of eighteen percent (18%) per annum until
paid.

 

23.   
DESTRUCTION OF THE LEASED PREMISES

 

If the Leased Premises should be damaged or destroyed
by fire or other cause to such an extent that the cost of repair and
restoration would exceed seventy percent (70%) of the amount it would cost to
replace the Leased Premises in their entirety at the time such damage or
destruction took place, then Landlord or Tenant shall have the right to cancel
this Lease by giving the other party notice of such election within forty-five
(45) days after the occurrence of such damage or destruction and this Lease
shall terminate

 

10

 

as of fifteen (15) days
after the date such notice is given. If Landlord fails to exercise this option
to terminate, then Landlord shall, with the proceeds of insurance coverage available,
promptly repair and restore the Leased Premises to substantially the same condition
they were in prior to the damage or destruction.

 

If the Leased Premises should be damaged or destroyed
by fire or other cause to such an extent that the cost of repair and
restoration would be less than seventy percent (70%) of the amount it would
cost to replace the Leased Premises in its entirety at the time such damage or
destruction took place, then, subject the requirements of any lender having a
mortgage lien against the Leased Premises, this Lease shall not terminate and the
Landlord shall, with the proceeds of insurance coverage available, promptly
repair and restore the Leased Premises to substantially the same condition they
were in prior to the damage or destruction.

 

The monthly rental shall proportionately abate during
the time that the Leased Premises or any part thereof is unusable by reason of
any such damage. The opinion of an architect or registered engineer appointed
by Landlord as to the costs of repair, restoration or replacement shall be
controlling upon the parties. Landlord’s obligation to restore or repair does
not include fixtures or improvements installed or owned by Tenant. The
provisions of this section are not intended to limit, modify or release Tenant
from any liability it may have for damage or destruction nor shall it release
Tenant from liability for the failure to maintain insurance required under this
Lease. Further, the provisions contained in this section concerning rent
abatement shall not be applicable to damage caused by vandalism, theft,
attempted theft or break in.

 

24. 
CONDEMNATION

 

If the entire Leased Premises, or such portion thereof
(other than parking areas) is condemned by any legally constituted authority
(or if a conveyance or other acquisition in lieu of such condemnation is made),
which will make the remainder unsuitable for the use permitted by this Lease,
then this Lease shall terminate as of the date possession is required by the
condemnor. If more than ten percent (10%) of the main building on the Leased
Premises is condemned, Tenant shall have the option to terminate this Lease as of
the date possession is required by the condemnor provided that Tenant provides written
notice of its intent to terminate to Landlord within twenty (20) days after
Landlord has delivered to Tenant a copy of the condemning authority’s written
notice of its intent to condemn or a copy of the condemning authority’s written
offer to purchase the portion of the Leased Premises to be condemned. All
compensation paid in connection with the condemnation shall belong to and be
the sole property of Landlord, except Tenant shall be entitled to any
compensation awarded for tenant’s trade fixtures and for moving expenses.

 

25. 
ENVIRONMENTAL WARRANTIES

 

Tenant acknowledges that certain Federal, State, and
local laws, regulations and ordinances are now in effect, and that additional
laws, regulations, guidelines and 

 

11

 

ordinances may hereafter
be enacted, relating to or affecting the Leased Premises and the larger parcel
of the land which the Leased Premises are a part, concerning the impact on the
Premises. Tenant will not cause, or permit to be caused, any act or practice,
by negligence, omission, or otherwise, that would adversely affect the
environment or do anything or permit anything to be done that would violate any
of the said laws, regulations, ordinances or guidelines. Any violation of this
covenant and warranty shall be an event of default of this Lease. Tenant shall
have no claim against Landlord by reason of any changes Landlord may make in
the Leased Premises pursuant to such laws, regulations, ordinances and
guidelines. Tenant further covenants and warrants to Landlord that Tenant shall
property dispose in appropriate landfills any industrial by- product, waste, or
other material which may negatively impact the environment, and Tenant further
covenants and agrees that the Tenant shall not dispose of any such materials
on, about or in the Leased Premises, any areas surrounding the Leased Premises
or in sanitary waste systems, storm sewers or septic systems.  Tenant covenants that it shall be solely
responsible for any cleanup of such materials. These covenants and warranties
shall survive the termination of this Lease. 

 

26.   LIMITATION
OF LANDLORD’S LIABILITY

 

Tenant agrees that Tenant shall look solely to
Landlord’s interest in and to the Leased Premises including any insurance
proceeds or condemnation awards then payable, subject to the rights of any
mortgagee of the Leased Premises, for collection of any judgment (or other
judicial processes) requiring payment of [ILLEGIBLE] Landlord in the event of
default or breach by Landlord of any of the covenants, terms or conditions of
this Lease to be observed or performed by Tenant’s remedies. The term “Landlord”,
as used in this Lease in relation to covenants, agreements and conditions to be
observed and performed by Landlord, shall mean and include only the owner or
owners from time to time of the Landlord’s interest in this Lease. In the event
of any transfer or transfers of such interest (except a transfer for security),
the Landlord named herein (and/or the transferee in the case of a subsequent
transfer) shall, after the date of such transfer, be released from all personal
liability for performance of any covenant, agreement and condition on the part
of the Landlord which are thereafter to be performed hereunder. The transferee
shall be deemed to have assumed (subject to the limitations of this paragraph)
all of the covenants, agreements and conditions herein to be observed by Landlord
with the result that such covenants, agreements and conditions shall bind the Landlord,
its successors and assigns, only during and in respect of their respective successive
periods of ownership.

 

27.   ACCORD AND
SATISFACTION

 

No payment by Tenant or receipt by Landlord of a
lesser amount than the rent herein stipulated shall be deemed to be other than
on account of the earliest stipulated rent; nor shall any endorsement or
statement on any check or letter accompanying any check or payment as rent be
deemed an accord and satisfaction; and Landlord may accept any such check or
payment without prejudice to Landlord’s right to recover the balance of such
rent or to pursue any other remedy provided in this Lease.

 

12

 

28.   ENTIRE
AGREEMENT; AMENDMENTS

 

This instrument contains the entire agreement between
the parties hereto with respect to the subject matter hereof.  All representations, promises and prior or contemporaneous
undertakings between such parties are merged into and expressed in this
instrument, and any and all prior agreements between such parties are hereby canceled.
The agreements contained in this instrument shall not be amended, modified, or
supplemented except by a written agreement duly executed by both Landlord and Tenant.

 

29.   SEVERABILITY

 

The invalidity or unenforceability of a particular
provision of this Lease shall not affect the other provisions, and this Lease
shall be construed in all respects as if such invalid or unenforceable
provision had not been contained herein.

 

30.   REMEDIES
CUMULATIVE

 

The remedies of Landlord and Tenant hereunder shall be
cumulative, and no one of them shall be construed as exclusive of any other or
of any remedy provided by law or in equity. The exercise of any one such right
or remedy by the Landlord or Tenant shall not impair its standing to exercise
any other such right or remedy.

 

31.   GOVERNING
LAW

 

This Lease shall be governed in accordance with the
laws of the State of Indiana.

 

32.   GENERAL
AGREEMENT OF THE PARTIES

 

This Lease shall extend to and be binding upon heirs,
personal representatives, successors, and assigns of the parties. This
provision, however, shall not be construed to permit the assignment of this
Lease except as may be permitted hereby. 
When applicable, use of the singular form of any word shall mean or
apply to the plural and the neuter form shall mean or apply to the feminine or
masculine.

 

The captions and article numbers appearing in this
Lease are inserted only as a matter of convenience and are not intended to
define, limit, construe, or describe the scope or intent of such provision. No
waiver by Landlord of any default by Tenant shall be effective unless in
writing, nor operate as a waiver of any other default or of the same default on
a future occasion.  Any notices to be
given hereunder shall be deemed sufficiently given when in writing and (a) actually
served on the party to be notified or (b) placed in an envelope directed
to the party to be notified at the following addresses and deposited in the
United States Mail by certified or registered mail, postage prepaid:

 

	
  1.

  	
  To Landlord, where rental payments are due.

  
	
  2.

  	
  To Tenant:

  	
   

  	
   

  

 

 

13

 

Such addresses may be
changed by either party by written advice as to the new address given as above
provided. If there is more than one Tenant, their obligation shall be joint and
several. This Lease shall not be recorded.

 

IN WITNESS WHEREOF, Landlord and Tenant have executed
this Lease on the 31 day of July, 2007, and if this Lease is executed
in counterparts, each shall be deemed an original.

 

 

	
  LANDLORD:

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
  Indiana Automation,
  Inc.

  	
   

  	
  Metroplex

  
	
   

  	
   

  	
   

  
	
  by:

  	
  /s/ Robert F Bissell
  Jr.

  	
   

  	
  by:

  	
  [ILLEGIBLE]

  
	
   

  	
  Robert F Bissell Jr.

  	
   

  	
   

  	
   

  
	
   

  	
  President

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

14

 

EXHIBIT A

 

Legal description for the
property commonly known as 8001 E. 196th Street, Noblesville, IN 46062
located in Hamilton County, Indiana:

 

A part of the East Half of the
Northwest Quarter of Section 25, Township 19 North, Range 4 East,
described as follows: Begin at the Northwest corner of said East Half; thence
East 18 rods; South 18 rods; West 18 rods; North 18 rods to the place of
beginning.

 

15

EXHIBIT B

 

 

1

 

 

2

 

 

3

 

EXHIBIT C

 

 

1

 

 

2

 

 

3

 

Exhibit D

Sign Specifications

 

The sign will need to be 60 inches long, 22 1/2
inches tall, and 1 1/2 inches thick. To match the Indiana
Automation sign, your sign needs to be sand blasted. Larger, white posts will
be put in so that your sign can be mounted underneath the Indiana Automation
sign.

 

 

 

8001 East
196th Street/Lodge Rules 

August 1, 2007

 

1. General 

 

a.               Do not replicate
Keys and give them out to anyone. 

b.              Do not give your
door code to anyone else to use.

c.               Clean up any spill
or mess you make

d.              Access to building
utility / infrastructure areas are for authorized personnel only.

 

2. Parking

 

a.               Park in designated
parking spots only. Do not block loading docks. Do not block the gravel access
lane on the East side of the building.

b.              There is no parking
under the canopy during business hours. This area is for loading and unloading
only. 

c.               Respect the labeled
parking spots, Handicapped and Visitor.

 

3. Kitchen

 

a.               The four door
commercial refrigerator is for IAI employee use only.

b.              The upright chest
freezer is for IAI use only.

c.               The residential
refrigerator/freezer is for Metroplex use only.

d.              Use of the
microwaves is on a first come first serve basis. Clean up any food spilled
inside.

e.               Clean up your own messes,
do not leave dishes/lunch remains in sink

f.

 

4. 19th Hole

 

a.               This is a common area.
Meetings are welcome here but understand that other people are going to be in
and out of this area.

b.              The coffee maker is
for IAI use only.

c.               Please follow the
sign out procedures for this room. These procedures can be found in the file
holder located on one of the doors.

d.              Clean up your own
messes, including wiping the counter / spills / vacuuming, etc.

e.               Reset the tables,
chairs, stools in the proper configuration when done

 

5. Bowling Alley

 

a.               Please follow the
sign out procedures for this room. These procedures can be found in the file
bolder located on one of the doors.

b.              You are responsible
for you and your guest’s behavior.

c.               After each use,
this area must be cleaned per the designated cleaning procedures.

 

 

6. Warehouse

 

a.               Use of the common
warehouse space is by request only.

b.              Do not block the
area between the overhead doors. This area is for loading and unloading only.

 

7. Conference Room

 

a.               Please follow the
sign out procedures for this room. These procedures can be found in the file
holder located on one of the doors.

b.              After use, this area
shall be left in a suitable condition for the next occupant, this means all
chairs should be pushed in, the table should be clean, and the lights should be
out.

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