Document:

Exhibit 10.26

 

May 18, 2011

 

VIA CERTIFIED MAIL/RETURN RECEIPT REQUESTED

 

Harvey Kamil
 11 Shore Drive
 Setauket, NY  11733

 

Dear Harvey:

 

I write in response to your letter to me, dated March 8, 2011.  The Company hereby acknowledges its receipt of your letter and proposes the following in connection with your change-in-control benefits and go-forward employment with the Company (the “New Agreement”).

 

1.             Payment Under Paragraph 8(a) of the Employment Agreement

 

The Company shall unconditionally pay to you $4,423,000, which represents the monies provided for under Paragraph 8(a)(i)(B), (i)(C) and (vi) of the employment agreement dated as of March 1, 2008 by and between you and the Company (the “Employment Agreement”), within ten (10) business days following the earlier of (x) the date upon which a new Chief Financial Officer of the Company begins his or her employment with the Company or (y) October 1, 2011 (such earlier date, the “Termination Date”); it being understood and agreed that if a new Chief Financial Officer begins his or her employment with the Company before October 1, 2011, then the Employment Agreement shall terminate on the date the new Chief Financial Officer begins employment with the Company, and if the new Chief Financial Officer begins his or her employment the Company after October 1, 2011, then the Employment Agreement shall terminate on October 1, 2011.

 

Upon your execution of this New Agreement, you shall have an absolute right to such payment under the terms of this New Agreement, and such payment is not contingent upon any other provision under this New Agreement, the Employment Agreement, whether you provide any further services to the Company (or provide such services to the satisfaction of the Company) or any other fact or circumstance.

 

2.             Period of Service from the Date Hereof to the Termination Date

 

For the period from the date hereof to the Termination Date, except as provided above, the Employment Agreement will continue in full force and effect, and each of the Company and you will continue to comply with the Employment Agreement.  On the Termination Date, the Employment Agreement will terminate, except that Sections 9(d) and 22 of the Employment Agreement shall survive after the Termination Date and it is agreed and understood that any provisions of the Employment Agreement intended to survive its termination shall continue to survive.  On the Termination Date, you shall be entitled to (i) all Accrued Obligations (as defined in Paragraph 8 of the Employment Agreement) and (ii) continued benefits described in Paragraph 8(a)(ii) of the Employment Agreement as if you terminated employment with the Company on the Termination Date.  For the avoidance of doubt the Employment Period (as defined in the Employment Agreement) shall be deemed to expire at the end of the Termination Date for the purposes of Section 10 of the Employment Agreement.

 

Notwithstanding the foregoing, nothing in this New Agreement shall obligate you to remain employed by the Company through the Termination Date and you or the Company may terminate your employment relationship at any time upon thirty (30) days written notice, after which the Employment

 

 

Agreement shall immediately terminate in the same manner, and with same provisions surviving, as described above.

 

3.             Role as Vice Chairman of the Company

 

Immediately after the Termination Date, you will become the Vice Chairman of the Company and will provide the following services to the Company, for a period of time, and to the extent, mutually agreed upon, in each case on an as needed basis (collectively, the “Services”):

 

·                  Transition services for the new Chief Financial Officer;

·                  Serve as the Company’s executive representative on the Counsel for Responsible Nutrition and on Natural Products Association, and other similar industry groups;

·                  Regulatory services, including certain supervisory duties with respect to the legal department of the Company;

·                  Litigation related services, including in your capacity as a Rule 30(b)(6) witness and as a testifying witness in legal proceedings; and

·                  Such other services that you and the Company mutually agree upon.

 

While serving as Vice Chairman, you will comply fully and promptly with the various policies, procedures and rules governing employees promulgated and/or as amended from time to time by the Company.

 

You will be entitled to receive total annual compensation of $624,600 (“New Compensation”) for performing the Services; it being understood and agreed that you would not be eligible to receive any bonus compensation for performing the Services.  The New Compensation will be pro-rated for the period of time that you will be performing the Services.  You will also continue to receive the automobile allowance and reimbursement of business, travel and entertainment expenses at the same level as currently provided under the Employment Agreement.

 

If you are in agreement with the foregoing, please acknowledge by executing this letter in the space below.

 

	
 
    	
 
    	
Sincerely,
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
Jeffrey   Nagel
    
	
 
    	
 
    	
 
    
	
ACCEPTED   AND AGREED:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
/s/   Harvey Kamil
    	
 
    	
/s/   Jeffrey Nagel
    
	
Harvey   Kamil
    	
 
    	
Date
    
	
 
    	
 
    	
 
    
	
cc:
    	
Pillsbury   Winthrop Shaw Pittman LLP
    	
 
    	
 
    
	
 
    	
1540   Broadway
    	
 
    	
 
    
	
 
    	
New   York, NY 10036
    	
 
    	
 
    

 

 

	
Attn.:
    	
Susan   P. Serota, Esq.
    	
 
    	
 
    
	
 
    	
Kenneth   W. Taber, Esq.LEASE AGREEMENT BETWEEN
                          CHATEAU PLAZA HOLDINGS, L.P.,
                                AS LANDLORD, AND
                          RED MOUNTAIN RESOURCES, INC.,
                                    AS TENANT

                               DATED MAY 23, 2011

                                  CHATEAU PLAZA
                              2515 MCKINNEY AVENUE
                                  DALLAS, TEXAS

                                                           CHATEAU PLAZA
                                                           2515 MCKINNEY AVENUE
                                                           DALLAS, TEXAS

<PAGE>

                             BASIC LEASE INFORMATION

Lease Date:         May 23, 2011

Landlord:           CHATEAU PLAZA HOLDINGS, L.P., a Delaware limited partnership

Tenant:             RED MOUNTAIN RESOURCES, INC., a Florida corporation

Premises:           Suite No. 900, containing 4,383 rentable square feet, in the
                    office  building   commonly  known  as  Chateau  Plaza  (the
                    "Building"),  and  whose  street  address  is 2515  McKinney
                    Avenue,  Dallas,  Texas 75201.  The Premises are outlined on
                    the plan  attached  to the Lease as  Exhibit  A. The land on
                    which the Project is located  (the  "Land") is  described on
                    Exhibit B. The term "Project"  shall  collectively  refer to
                    the   Building,   the  Land  and  the   driveways,   parking
                    facilities,   and   similar   improvements   and   easements
                    associated with the foregoing or the operations thereof.

Term:               64 full  calendar  months,  plus any partial  month from the
                    Commencement  Date  to the end of the  month  in  which  the
                    Commencement  Date falls,  starting on the Commencement Date
                    and  ending at 5:00 p.m.  local  time on the last day of the
                    64th full calendar month  following the  Commencement  Date,
                    subject to adjustment and earlier termination as provided in
                    the Lease.

Commencement        The earlier of (a) the date on which Tenant occupies any
Date:               portion of the Premises and begins conducting business there
                    -in, or (b) June 1, 2011.

Basic Rent:         Subject to the abatement of Basic Rent provided below, Basic
                    Rent shall be the following amounts for the following
                    periods of time:

<TABLE>
<CAPTION>

                         Time Periods      Annual Basic Rent Rate Per Rentable    Monthly Basic Rent
                                                Square Foot in the Premises
<S>                  <C>                   <C>                                    <C>

                     Commencement Date -                   $24.50                      $8,948.63
                      September 30, 2012
                        October 1, 2012 -                  $25.00                      $9,131.25
                       September 30, 2013
                        October 1, 2013 -                  $25.50                      $9,313.88
                       September 30, 2014
                        October 1, 2014 -                  $26.00                      $9.496.50
                       September 30, 2015
                        October 1, 2015 -                  $26.50                      $9,679.13
                       September 30, 2016
</TABLE>

                    Basic  Rent shall be abated  during the first four  calendar
                    months of the Term,  e.g., if the  Commencement  Date is May
                    25,  2011,  Basic Rent shall be abated until  September  24,
                    2011.  Commencing  with the  first  day after the end of the
                    abatement period referred to above,  Tenant shall make Basic
                    Rent payments for any remaining  partial  calendar month and
                    on the first day of the first full calendar month thereafter
                    shall make Basic Rent payments as otherwise provided in this
                    Lease.  Notwithstanding such abatement of Basic Rent (a) all
                    other sums due under this Lease,  including  Additional Rent
                    and parking rent shall be payable as provided in this Lease,
                    and (b) any  increases in Basic Rent set forth in this Lease
                    shall occur on the dates scheduled therefor.

Security Deposit:   $9,679.13.

Additional Rent:    Tenant's Proportionate Share of Excess Operating Costs,
                    Excess Taxes and Electrical Costs.

Rent:               Basic Rent, Additional Rent, and all other sums that Tenant
                    may owe to Landlord or otherwise be required to pay under
                    the Lease.

860209V.2 CHA792/16000                    i                 CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                            DALLAS, TEXAS

<PAGE>

Permitted Use:     General office use in compliance with Section 9 of the Lease.

Tenant's           2.55%, which is the percentage obtained by dividing (a) the
Proportionate      number of rentable square feet in the Premises as stated
Share:             above by (b) the 172,139 rentable square feet in the Project.
                   Landlord and Tenant stipulate that the number of rentable
                   square feet in the Premises and in the Project set forth
                   above is conclusive and shall be binding upon them, except as
                   provided in this Lease.

Base Year:         The calendar year 2011.

Initial
Liability           $1,000,000  per  occurrence  in  primary  coverage,  with an
                    additional $3,000,000 in umbrella coverage.

Insurance Amount:

Tenant's Address:   Prior to Commencement Date:     Following Commencement Date:
                    Red Mountain Resources, Inc.    Red Mountain Resources, Inc.
                    c/o Stone Street Group          2515 McKinney Avenue, Suite
                    16623 Cantrell Road, Suite 1B   900
                    Little Rock, AR 72223           Dallas, Texas 75201
                                                    Attention: [To be determined
                                                    pursuant to E hereto.]
                    Attention:  Alan W. Barksdale   Telephone: [To be determined
                                                    pursuant to Exhibit E
                                                    hereto.]
                    Telephone:  501.367.8137        Facsimile: [To be determined
                                                    pursuant to Exhibit E
                                                    hereto.]

Landlord's
Address:        For all Notices:                   With a copy to:
                Chateau Plaza Holdings, L.P.       Chateau Plaza Holdings, L.P.
                c/o Stream Dallas Office, L.P.     c/o JPMorgan Asset Management
                2515 McKinney Avenue, Suite 820    245 Park Avenue, 2nd Floor
                Dallas, TX 75201                   New York, NY 10167
                Attention:  Property Manager       Attention:  Dan Minkoff
                Telephone:  214.855.5120           Telephone:  212.648.2005
                Facsimile:  214.220.2763           Facsimile:  212.642.2264

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

860209V.2 CHA792/16000              ii                     CHATEAU PLAZA
                                                           2515 MCKINNEY AVENUE
                                                           DALLAS, TEXAS

<PAGE>

                                TABLE OF CONTENTS

                                                                        Page No.

1.       DEFINITIONS AND BASIC PROVISIONS......................................1

2.       LEASE GRANT...........................................................1

3.       TENDER OF POSSESSION..................................................1

4.       RENT..................................................................1
         4.1      Payment......................................................1
         4.2      Additional Rent..............................................2
         4.3      Cap on Excess Operating Costs................................4

5.       DELINQUENT PAYMENT; HANDLING CHARGES..................................4

6.       SECURITY DEPOSIT......................................................4

7.       LANDLORD'S OBLIGATIONS................................................5
         7.1      Services.....................................................5
         7.2      Excess Utility Use...........................................5
         7.3      Restoration of Services; Abatement...........................6
         7.4      Repair and Maintenance by Landlord...........................6

8.       IMPROVEMENTS; ALTERATIONS; REPAIRS; MAINTENANCE.......................6
         8.1      Improvements; Alterations....................................6
         8.2      Repair and Maintenance by Tenant.............................7
         8.3      Performance of Work..........................................7
         8.4      Mechanic's Liens.............................................7

9.       USE...................................................................8

10.      ASSIGNMENT AND SUBLETTING.............................................9
         10.1     Transfers....................................................9
         10.2     Consent Standards............................................9
         10.3     Request for Consent..........................................9
         10.4     Conditions to Consent.......................................10
         10.5     Attornment by Subtenants....................................10
         10.6     Cancellation................................................10
         10.7     Additional Compensation.....................................10
         10.8     Permitted Transfers.........................................10

11.      INSURANCE; WAIVERS; SUBROGATION; INDEMNITY...........................11
         11.1     Tenant's Insurance..........................................11
         11.2     Landlord's Insurance........................................12
         11.3     No Subrogation; Waiver of Property Claims...................12
         11.4     Indemnity...................................................13

12.      SUBORDINATION; ATTORNMENT; NOTICE TO LANDLORD'S MORTGAGEE............13
         12.1     Subordination...............................................13
         12.2     Attornment..................................................13
         12.3     Notice to Landlord's Mortgagee..............................13
         12.4     Landlord's Mortgagee's Protection Provisions................14
         12.5     Modification of Lease.......................................14

13.      RULES AND REGULATIONS................................................14

14.      CONDEMNATION.........................................................14
         14.1     Total Taking................................................14
         14.2     Partial Taking - Tenant's Rights............................14
         14.3     Partial Taking - Landlord's Rights..........................14

860209V.2 CHA792/16000                  iii                CHATEAU PLAZA
                                                           2515 MCKINNEY AVENUE
                                                           DALLAS, TEXAS

<PAGE>

         14.4     Award.......................................................15
         14.5     Restoration.................................................15

15.      FIRE OR OTHER CASUALTY...............................................15
         15.1     Repair Estimate.............................................15
         15.2     Tenant's Rights.............................................15
         15.3     Landlord's Rights...........................................15
         15.4     Repair Obligation...........................................15
         15.5     Abatement of Rent...........................................15

16.      PERSONAL PROPERTY TAXES..............................................16

17.      EVENTS OF DEFAULT....................................................16
         17.1     Payment Default.............................................16
         17.2     Abandonment.................................................16
         17.3     Estoppel; Subordination; Financial Reports..................16
         17.4     Insurance...................................................16
         17.5     Mechanic's Liens............................................16
         17.6     Other Defaults..............................................16
         17.7     Insolvency..................................................16

18.      REMEDIES.............................................................17
         18.1     Termination of Lease........................................17
         18.2     Termination of Possession...................................17
         18.3     Perform Acts on Behalf of Tenant............................17
         18.4     Suspension of Services......................................17
         18.5     Alteration of Locks.........................................17

19.      PAYMENT BY TENANT; NON-WAIVER; CUMULATIVE REMEDIES; MITIGATION OF
         DAMAGE...............................................................17
         19.1     Payment by Tenant...........................................17
         19.2     No Waiver...................................................18
         19.3     Cumulative Remedies.........................................18
         19.4     Mitigation of Damage........................................18

20.      LANDLORD'S LIEN......................................................18

21.      SURRENDER OF PREMISES................................................19

22.      HOLDING OVER.........................................................19

23.      CERTAIN RIGHTS RESERVED BY LANDLORD..................................20
         23.1     Building Operations.........................................20
         23.2     Security....................................................20
         23.3     Prospective Purchasers and Lenders..........................20
         23.4     Prospective Tenants.........................................20

24.      SUBSTITUTION SPACE...................................................20

25.      MISCELLANEOUS........................................................21
         25.1     Landlord Transfer...........................................21
         25.2     Landlord's Liability........................................21
         25.3     Force Majeure...............................................21
         25.4     Brokerage...................................................21
         25.5     Estoppel Certificates.......................................21
         25.6     Notices.....................................................21
         25.7     Separability................................................22
         25.8     Amendments; Binding Effect; No Electronic Records...........22
         25.9     Counterparts................................................22
         25.10    Quiet Enjoyment.............................................22
         25.11    No Merger...................................................22
         25.12    No Offer....................................................22

860209V.2 CHA792/16000                      iv              CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                            DALLAS, TEXAS

<PAGE>

         5.13     Entire Agreement............................................22
         25.14    Waiver of Jury Trial........................................22
         25.15    Governing Law...............................................23
         25.16    Recording...................................................23
         25.17    Water or Mold Notification..................................23
         25.18    Joint and Several Liability.................................23
         25.19    Financial Reports...........................................23
         25.20    Landlord's Fees.............................................23
         25.21    Telecommunications..........................................23
         25.22    Confidentiality.............................................24
         25.23    Authority...................................................24
         25.24    Hazardous Materials.........................................24
         25.25    List of Exhibits............................................24
         25.26    Determination of Charges....................................25
         25.27    Prohibited Persons and Transactions.........................25
         25.28    Waiver of Consumer Rights...................................25
         25.29    Building Renovations........................................25
         25.30    Common Area Amenities.......................................25
         25.31    UBTI........................................................26
         25.32    Cross Default...............................................26
         25.33    Reserved Rights.............................................26

860209V.2 CHA792/16000                 v                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                              LIST OF DEFINED TERMS

                                                                        Page No.

Additional Rent................................................................i

Affiliate......................................................................1
Base Year.....................................................................ii
Basic Lease Information........................................................1
Basic Rent.....................................................................i
Building.......................................................................i
Building's Structure...........................................................1
Building's Systems.............................................................1
Casualty......................................................................15
Code..........................................................................26
Collateral....................................................................19
Commencement Date..............................................................i
Common Area Amenities.........................................................26
Controllable Operating Costs...................................................4
Damage Notice.................................................................15
Default Rate...................................................................4
Disabilities Acts..............................................................8
Electrical Costs...............................................................3
Estimated Delivery Date........................................................1
Event of Default..............................................................16
Excess Operating Costs.........................................................2
Excess Taxes...................................................................3
GAAP..........................................................................11
Hazardous Materials...........................................................24
HVAC...........................................................................5
including......................................................................1
Initial Liability Insurance Amount............................................ii
Land...........................................................................i
Landlord.......................................................................i
Landlord's Mortgagee..........................................................13
Law............................................................................1
Laws...........................................................................1
Lease..........................................................................1
Lease Date.....................................................................i
Loss..........................................................................13
Mortgage......................................................................13
OFAC..........................................................................25
Operating Costs................................................................2
Parking Area.................................................................G-1
Permitted Transfer............................................................11
Permitted Transferee..........................................................11
Permitted Use.................................................................ii
Premises.......................................................................i
Prevailing Rental Rate.......................................................H-1
Primary Lease.................................................................13
Project........................................................................i
Reconciliation Statement.......................................................4
Regulations...................................................................26
Release.......................................................................25
Renovations...................................................................25
Rent..........................................................................ii
Repair Period.................................................................15

860209V.2 CHA792/16000              vi                             CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS
<PAGE>

Security Deposit...............................................................i
Substitute Tenant.............................................................18
Taking........................................................................14
Tangible Net Worth............................................................11
Taxes..........................................................................3
Telecommunications Services...................................................24
Tenant.........................................................................i
Tenant Party...................................................................1
Tenant's Off-Premises Equipment................................................1
Tenant's Proportionate Share..................................................ii
Term...........................................................................i
Transfer.......................................................................9
UCC...........................................................................19
Visible Premises...............................................................7

860209V.2 CHA792/16000                 vii                         CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                      LEASE

         This Lease  Agreement  (this "Lease") is entered into  as of  the Lease
Date  between  Landlord  and  Tenant  (as each such term is defined in the Basic
Lease Information).

         1. Definitions and Basic Provisions.  The definitions  and basic provi-
sions set forth in the Basic Lease  Information (the "Basic Lease  Information")
are  incorporated  herein  by  reference  for all  purposes.  Additionally,  the
following  terms  shall have the  following  meanings  when used in this  Lease:
"Affiliate"  means any person or entity which,  directly or indirectly,  through
one or more  intermediaries,  controls,  is  controlled  by, or is under  common
control with the party in question;  "Building's Structure" means the Building's
roof and roof  membrane,  elevator  shafts,  footings,  foundations,  structural
portions of  load-bearing  walls,  structural  floors and subfloors,  structural
columns and beams, and curtain walls;  "Building's Systems" means the Building's
HVAC,  life-safety,  plumbing,  electrical,  mechanical  and  elevator  systems;
"including" means including, without limitation; "Laws" means all federal, state
and local laws, ordinances, building codes and standards, rules and regulations,
all court  orders,  governmental  directives,  and  governmental  orders and all
interpretations of the foregoing,  and all restrictive  covenants  affecting the
Project, and "Law" means any of the foregoing; "Tenant's Off-Premises Equipment"
means any of  Tenant's  equipment  or other  property  that may be located on or
about the Project (other than inside the Premises); and "Tenant Party" means any
of the following persons:  Tenant; any assignees claiming by, through,  or under
Tenant; any subtenants  claiming by, through,  or under Tenant; and any of their
respective agents, contractors, employees, licensees, guests and invitees.

         2.       Lease Grant.  Subject  to  the terms  of this  Lease, Landlord
leases to Tenant, and Tenant leases from Landlord, the Premises.

         3.  Tender of Possession. Landlord and Tenant presently anticipate that
possession of the Premises will be tendered to Tenant in the condition  required
by this  Lease on or about  June 1, 2011  (or,  if  later,  five days  following
Tenant's full  execution and delivery of this Lease to Landlord,  the "Estimated
Delivery Date").  If Landlord is unable to tender  possession of the Premises in
such condition to Tenant by the Estimated  Delivery Date,  then (a) the validity
of this Lease shall not be affected or impaired thereby,  (b) Landlord shall not
be in default hereunder or be liable for damages therefor,  and (c) Tenant shall
accept  possession of the Premises when Landlord tenders  possession  thereof to
Tenant.  By occupying the Premises,  Tenant shall be deemed to have accepted the
Premises in their  condition  as of the date of such  occupancy,  subject to the
performance of punch-list items that remain to be performed by Landlord, if any.
Prior to occupying the Premises,  Tenant shall execute and deliver to Landlord a
letter  substantially  in the  form  of  Exhibit  E  hereto  confirming  (1) the
Commencement  Date and the expiration  date of the initial Term, (2) that Tenant
has accepted  the  Premises,  and (3) that  Landlord  has  performed  all of its
obligations  with respect to the Premises (except for punch-list items specified
in such  letter);  however,  the failure of the  parties to execute  such letter
shall not defer the Commencement Date or otherwise  invalidate this Lease. Entry
into the  Premises by any Tenant Party prior to the  Commencement  Date shall be
subject to all of the provisions of this Lease  excepting  only those  requiring
the payment of Basic Rent and Additional Rent.

         4.       Rent.

                  4.1  Payment.  Tenant  shall  timely   pay  to  Landlord Rent,
without  notice,  demand,  deduction or set off (except as  otherwise  expressly
provided  herein),  by good and  sufficient  check  drawn on a national  banking
association at Landlord's  address  provided for in this Lease or, at Landlord's
election,  by wire  transfer or as otherwise  specified by Landlord and shall be
accompanied  by  all  applicable  state  and  local  sales  or  use  taxes.  The
obligations  of Tenant to pay Rent to Landlord and the  obligations  of Landlord
under this Lease are  independent  obligations.  Basic Rent,  adjusted as herein
provided,  shall be payable monthly in advance. The first monthly installment of
Basic Rent,  in the amount  payable  under this Lease after the end of any Basic
Rent  abatement  period  provided  in the Basic Lease  Information,  is due upon
execution  of this Lease by Tenant;  thereafter,  Basic Rent shall be payable on
the first day of each  calendar  month,  subject  to any  Basic  Rent  abatement
provision in the Basic Lease Information. The monthly Basic Rent for any partial
month at the  beginning  of the Term  shall  equal the  product  of 1/365 of the
annual Basic Rent in effect  during the partial  month and the number of days in
the partial  month,  and such Basic Rent  payment is due upon  execution of this
Lease by Tenant;  however,  if the Commencement Date is not a fixed date that is
ascertainable  as of the  Lease  Date,  then such  Basic  Rent  payment  for any
fractional calendar month at the beginning of the Term shall be due by Tenant on

860209V.2 CHA792/16000               1                             CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

the Commencement Date.  Payments of Basic Rent for any fractional calendar month
at the end of the Term shall be similarly prorated. Tenant shall pay to Landlord
monthly  installments  of  Additional  Rent in  advance on the first day of each
calendar  month and otherwise on the same terms and conditions  described  above
with  respect to Basic Rent.  Unless a shorter  time period is specified in this
Lease, all payments of miscellaneous  Rent charges  hereunder (that is, all Rent
other than Basic Rent and  Additional  Rent) shall be due and payable  within 30
days following Landlord's delivery to Tenant of an invoice therefor.

                  4.2     Additional Rent.

                          4.2.1 Excess Operating Costs. Tenant shall pay to Land
-lord Tenant's Proportionate Share of Excess  Operating  Costs.  As used herein,
"Excess  Operating  Costs" means any increase in Operating Costs (defined below)
for each year and partial  year of the Term over the  Operating  Costs  incurred
during  the  Base  Year.  Landlord  may make a good  faith  estimate  of  Excess
Operating Costs to be due by Tenant for any calendar year or part thereof during
the Term.  During each calendar year or partial  calendar year of the Term after
the Base Year, Tenant shall pay to Landlord,  in advance  concurrently with each
monthly  installment of Basic Rent, an amount equal to Tenant's estimated Excess
Operating  Costs for such calendar year or part thereof divided by the number of
months  therein.  From time to time,  Landlord may estimate and  re-estimate the
Excess Operating Costs to be due by Tenant and deliver a copy of the estimate or
re-estimate to Tenant.  Thereafter, the monthly installments of Excess Operating
Costs payable by Tenant shall be  appropriately  adjusted in accordance with the
estimations  so that, by the end of the calendar year in question,  Tenant shall
have paid all of the  Excess  Operating  Costs as  estimated  by  Landlord.  Any
amounts paid based on such an estimate  shall be subject to adjustment as herein
provided when actual Operating Costs are available for each calendar year.

                          4.2.2 Operating  Costs Defined.  The  term  "Operating
Costs" means all costs,  expenses and disbursements  (subject to the limitations
set  forth  below)  that  Landlord  incurs  in  connection  with the  ownership,
operation,  and maintenance of the Project and performing Landlord's obligations
under this Lease, in each case,  determined in accordance with sound  accounting
principles  consistently  applied,  including the following costs: (A) wages and
salaries  of all  on-site  employees  at or below the  grade of senior  building
manager  engaged  in the  operation,  maintenance  or  security  of the  Project
(together  with  Landlord's   reasonable  allocation  of  expenses  of  off-site
employees at or below the grade of senior building manager who perform a portion
of their services in connection  with the operation,  maintenance or security of
the Project  including  accounting  personnel),  including taxes,  insurance and
benefits relating thereto; (B) all supplies and materials used in the operation,
maintenance,  repair,  replacement,  and security of the Project;  (C) costs for
improvements made to the Project which, although capital in nature, are expected
to reduce  the normal  operating  costs  (including  all  utility  costs) of the
Project,  as amortized  using a commercially  reasonable  interest rate over the
time period reasonably estimated by Landlord to recover the costs thereof taking
into consideration the anticipated cost savings, as determined by Landlord using
its  good  faith,   commercially   reasonable  judgment,   as  well  as  capital
improvements  made in order to comply with any Law hereafter  promulgated by any
governmental  authority,  or any  amendment to or any  interpretation  hereafter
rendered  with  respect to any existing Law that have the effect of changing the
legal requirements  applicable to the Project from those currently in effect, as
amortized using a commercially reasonable interest rate over the useful economic
life  of  such   improvements  as  determined  by  Landlord  in  its  reasonable
discretion;  (D) cost of all utilities,  except Electrical Costs and the cost of
other  utilities  reimbursable  to Landlord by the Project's  tenants other than
pursuant to a provision  similar to this Section 4.2.2; (E) insurance  expenses,
including the cost of any deductibles;  (F) repairs,  replacements,  and general
maintenance of the Project;  (G) fair market rental and other costs with respect
to the  management  office for the  Project;  and (H) service,  maintenance  and
management  contracts and fees (payable to Landlord,  Landlord's  affiliate or a
third-party  management  company;  provided  that any costs paid to  Landlord or
Landlord's  affiliate for  management  services  shall  exclude  amounts paid in
excess of the competitive  rates for management  services of comparable  quality
rendered by persons or entities of similar skill, competence and experience) for
the operation, maintenance,  management, repair, replacement, or security of the
Project  (including  alarm  service,  window  cleaning,  janitorial,   security,
landscape maintenance and elevator maintenance).

860209V.2 CHA792/16000                2                            CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

Operating Costs shall not include costs for (i) capital improvements made to the
Project,  other than  capital  improvements  described  in Section  4.2.2(C) and
except for items which are generally  considered  maintenance  and repair items,
such as painting and wall  covering of common  areas,  replacement  of carpet or
other floor coverings in elevator  lobbies and common areas,  and the like; (ii)
repair, replacements and general maintenance paid by proceeds of insurance or by
Tenant or other third parties; (iii) interest, amortization or other payments on
loans to  Landlord;  (iv)  depreciation;  (v)  leasing  commissions;  (vi) legal
expenses  for  services,  other than  those that  benefit  the  Project  tenants
generally  (e.g., tax disputes);  (vii) renovating or otherwise  improving space
for  occupants of the Project or vacant  leasable  space in the Project;  (viii)
Taxes;  and (ix) federal  income  taxes  imposed on or measured by the income of
Landlord  from the operation of the Project.  Operating  Costs for the Base Year
only shall not include  costs  incurred due to  extraordinary  circumstances  or
other non-recurring  charges,  including market-wide labor rate increases due to
boycotts and strikes; utility rate increases due to extraordinary  circumstances
or other non- recurring charges,  including conservation  surcharges,  boycotts,
embargos or other shortages;  insurance deductibles; or amortized costs relating
to capital improvements.

                          4.2.3 Excess Taxes;  Taxes  Defined. Tenant shall also
pay Tenant's Proportionate Share of Excess Taxes. As used herein, "Excess Taxes"
means any  increase  in Taxes  (defined  below) for each year and  partial  year
falling  within  the Term  over the Taxes for the Base  Year.  Tenant  shall pay
Tenant's  Proportionate  Share of Excess  Taxes in the same  manner as  provided
above for Tenant's  Proportionate  Share of Excess  Operating Costs. If Landlord
receives a refund or abatement  from a taxing  authority  for any portion of the
Taxes  allocable to the Base Year,  the Taxes for the Base Year shall be reduced
by the amount of such refund or abatement. "Taxes" means taxes, assessments, and
governmental  charges or fees whether federal,  state, county or municipal,  and
whether  they be by  taxing  districts  or  authorities  presently  taxing or by
others,  subsequently created or otherwise,  and any other taxes and assessments
(including  non-governmental  assessments for common charges under a restrictive
covenant or other  private  agreement  that are not treated as part of Operating
Costs)  now  or  hereafter  attributable  to the  Project  (or  its  operation),
excluding,  however,  penalties and interest thereon and federal and state taxes
on income. However, if the present method of taxation changes so that in lieu of
or in  addition  to the  whole or any part of any  Taxes,  there  is  levied  on
Landlord a capital tax directly on the rents or revenues received therefrom or a
franchise tax,  margin tax,  assessment,  or charge based,  in whole or in part,
upon such rents or revenues for the Project,  then all such taxes,  assessments,
or charges,  or the part thereof so based, shall be deemed to be included within
the term "Taxes" for purposes hereof.  Notwithstanding  anything to the contrary
herein,  Taxes shall include the Texas margin tax and/or any other  business tax
imposed  under  Texas  Tax Code  Chapter  171  and/or  any  successor  statutory
provision. Taxes shall include the costs of consultants retained in an effort to
lower taxes and all costs incurred in disputing any taxes or in seeking to lower
the tax valuation of the Project.  Notwithstanding the foregoing,  Taxes for the
Base  Year  only  shall  not  include  costs   incurred  due  to   extraordinary
circumstances  or other  non-recurring  charges,  including tax  consultants and
other costs  incurred by Landlord in an effort to lower the tax valuation of the
Project.  For  property  tax  purposes,  Tenant  waives all rights to protest or
appeal the  appraised  value of the  Premises,  as well as the Project,  and all
rights to receive notices of  reappraisement as set forth in Sections 41.413 and
42.015 of the  Texas Tax Code.  From  time to time  during  any  calendar  year,
Landlord  may  estimate or  reestimate  the Excess Taxes to be due by Tenant for
that calendar year and deliver a copy of the estimate or  re-estimate to Tenant.
Thereafter,  the monthly installments of Excess Taxes payable by Tenant shall be
appropriately adjusted in accordance with the estimations.

                          4.2.4 Electrical Costs. Tenant shall also pay to Land-
lord  Tenant's   Proportionate  Share  of  Electrical  Costs.  As  used  herein,
"Electrical Costs" means the cost of all electricity used by the Project,  which
shall  include  sales,  use,  excise or other  taxes  assessed  by  governmental
authorities on electrical services supplied to the Project. Such amount shall be
payable in monthly installments on the Commencement Date and on the first day of
each calendar month  thereafter.  Each installment  shall be based on Landlord's
estimate of the amount due for each month. From time to time during any calendar
year,  Landlord may estimate or re-estimate  the  Electrical  Costs to be due by
Tenant for that calendar year and deliver a copy of the estimate or  re-estimate
to Tenant.  Thereafter,  the monthly installments of Electrical Costs payable by
Tenant shall be appropriately adjusted in accordance with the estimations.

860209V.2 CHA792/16000                3                            CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                          4.2.5 Reconciliation  Statement.  By April  30 of each
calendar year, or as soon thereafter as  practicable,  Landlord shall furnish to
Tenant a statement  of  Operating  Costs and  Electrical  Costs for the previous
year, in each case adjusted as provided in Section  4.2.6,  and of the Taxes for
the  previous  year (the  "Reconciliation  Statement").  If  Tenant's  estimated
payments of Excess Operating Costs,  Excess Taxes or Electrical Costs under this
Section 4.2 for the year covered by the Reconciliation Statement exceed Tenant's
Proportionate Share of such items as indicated in the Reconciliation  Statement,
then Landlord  shall credit or reimburse  Tenant for such excess within 30 days;
likewise, if Tenant's estimated payments of Excess Operating Costs, Excess Taxes
or Electrical  Costs under this Section 4.2 for such year are less than Tenant's
Proportionate Share of such items as indicated in the Reconciliation  Statement,
then Tenant shall pay Landlord  such  deficiency  within 30 days of invoice from
Landlord.

                          4.2.6 Gross Up. With  respect to any calendar  year or
partial  calendar year in which the Project is not occupied to the extent of 95%
of the rentable area thereof,  or Landlord is not supplying  comparable services
to 95% of the rentable area thereof,  the Operating  Costs and Electrical  Costs
for such period which vary with the occupancy of the Project or level of service
shall, for the purposes hereof, be increased to the amount which would have been
incurred had the Project been occupied to the extent of 95% of the rentable area
thereof  and  Landlord  had been  supplying  comparable  services  to 95% of the
rentable area thereof.

                  4.3  Cap  on  Excess  Operating  Costs.  For purposes of calcu
-lating  Tenant's  Proportionate  Share of Excess  Operating Costs under Section
4.2.1,  the  maximum  increase  in the amount of  Controllable  Operating  Costs
(defined below) that may be included in calculating Tenant's Proportionate Share
of Excess  Operating  Costs for each  calendar year after the Base Year shall be
limited to 8% per calendar year on a cumulative,  compounded basis; for example,
the maximum amount of  Controllable  Operating Costs that may be included in the
calculation of Tenant's  Proportionate  Share of Excess Operating Costs for each
calendar  year after the Base Year shall equal the  product of the  Controllable
Operating  Costs  during  the Base Year and the  following  percentages  for the
following  calendar  years:  108% for the first calendar year following the Base
Year;  116.64% for the second calendar year following the Base Year; 125.97% for
the third calendar year following the Base Year, etc. However,  any increases in
Operating Costs not recovered by Landlord due to the foregoing  limitation shall
be carried  forward into  succeeding  calendar years during the Term (subject to
the  foregoing  limitation)  to the extent  necessary  until  fully  recouped by
Landlord.  "Controllable  Operating  Costs" means all Operating  Costs which are
within the reasonable  control of Landlord;  thus,  excluding taxes,  insurance,
utilities,  snow  removal and other  weather-related  costs,  costs  incurred to
comply with  governmental  requirements,  and other costs beyond the  reasonable
control of Landlord.

         5. Delinquent Payment; Handling Charges. All past due payments required
of Tenant  hereunder  shall  bear  interest  from the date due until paid at the
lesser of  eighteen  percent  per annum or the  maximum  lawful rate of interest
(such lesser amount is referred to herein as the "Default Rate");  additionally,
Landlord,  in addition to all other  rights and  remedies  available  to it, may
charge  Tenant  a late fee  equal to the  greater  of (a)  five  percent  of the
delinquent  payment,  or (b)  $250,  to  reimburse  Landlord  for its  cost  and
inconvenience  incurred as a consequence of Tenant's  delinquency.  In no event,
however,  shall the charges  permitted under this Section 5 or elsewhere in this
Lease,  to the extent they are considered to be interest under  applicable  Law,
exceed the maximum  lawful  commercial  rate of  interest.  Notwithstanding  the
foregoing,  the late fee  referenced  above shall not be charged with respect to
the first occurrence (but not any subsequent  occurrence) during any 12-calendar
month period that Tenant  fails to make payment when due,  until five days after
Landlord delivers written notice of such delinquency to Tenant.

         6.  Security  Deposit.   Contemporaneously  with  the execution of this
Lease, Tenant shall pay to Landlord the Security Deposit, which shall be held by
Landlord to secure Tenant's performance of its obligations under this Lease. The
Security  Deposit  is not an  advance  payment  of Rent or a measure or limit of
Landlord's  damages upon an Event of Default (as defined herein).  Landlord may,
from time to time  following  an Event of Default and without  prejudice  to any
other  remedy,  use  all or a part  of  the  Security  Deposit  to  perform  any
obligation Tenant fails to perform hereunder.  Following any such application of
the  Security  Deposit,  Tenant  shall pay to  Landlord  on demand the amount so
applied  in order to  restore  the  Security  Deposit  to its  original  amount.
Provided that Tenant has performed all of its  obligations  hereunder,  Landlord
shall, within 30 days after the expiration of the Term and Tenant's surrender of
the Premises in compliance with the provisions of  this Lease, return  to Tenant

860209V.2 CHA792/16000                4                            CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

the portion of the Security  Deposit  which was not applied to satisfy  Tenant's
obligations.  Notwithstanding the preceding sentence and to the extent permitted
by  applicable  Law,  Landlord may retain the Security  Deposit  until such time
after the  expiration of the Term that Landlord is able to reconcile and confirm
all amounts  payable by Tenant under this Lease have been paid in full by Tenant
(e.g.,   Landlord  cannot   reconcile  and  confirm  Tenant  has  paid  Tenant's
Proportionate  Share of  Excess  Taxes for the  calendar  year in which the Term
expires  if  Landlord  has not  received a Tax bill from all  applicable  taxing
authorities  at the  time of  such  expiration).  The  Security  Deposit  may be
commingled with other funds, and no interest shall be paid thereon.  If Landlord
transfers  its interest in the Premises and the  transferee  assumes  Landlord's
obligations  under this Lease,  then Landlord may assign the Security Deposit to
the transferee and Landlord  thereafter shall have no further  liability for the
return of the  Security  Deposit.  The rights and  obligations  of Landlord  and
Tenant under this Section 6 are subject to any other requirements and conditions
imposed by Laws applicable to the Security Deposit.

         7.       Landlord's Obligations.

                  7.1   Services. Landlord  shall  use all reasonable efforts to
furnish to Tenant:  (1) water at those points of supply provided for general use
of tenants of the Building; (2) the equipment to provide heated and refrigerated
air  conditioning  ("HVAC") as  appropriate,  at such  temperatures  and in such
amounts as are standard for comparable  buildings with comparable  densities and
heat loads in the  vicinity  of the  Building  (not to exceed the  current  HVAC
system's capacity existing as of the Lease Date); (3) janitorial  service to the
Premises  five  days  per  week,  other  than  holidays,  for  Building-standard
installations  and such  window  washing as may from time to time be  reasonably
required;  (4)  elevators  for  ingress  and  egress  to the  floor on which the
Premises are located,  in common with other tenants,  provided that Landlord may
reasonably limit the number of operating elevators during non-business hours and
holidays;  and (5)  electrical  current for equipment that does not require more
than 110 volts and whose  electrical  energy  consumption does not exceed normal
office usage.  If Tenant  desires any of the services  specified in Section 7.1:
(A) at any time other than  between  7:00 a.m.  and 6:00 p.m.  on  weekdays  and
between 8:00 a.m. and 1:00 p.m. on Saturdays (in each case other than holidays),
or (B) on Sundays or holidays,  then such  services  shall be supplied to Tenant
upon the written request by Tenant delivered to Landlord's  designated  property
manager  before 3:00 p.m. on the business day  preceding  such extra usage,  and
Tenant  shall pay to  Landlord  the cost of such  services  (which  shall not be
included in Tenant's Proportionate Share of Operating Costs or Electrical Costs)
within 30 days after  Landlord  has  delivered  to Tenant an  invoice  therefor.
Tenant  acknowledges  that the cost  components for providing  after-hours  HVAC
service to the  Premises are not  separately  metered;  accordingly,  Landlord's
determination  of  after-normal-business-hour  HVAC charges are estimates of the
costs incurred by Landlord in providing such  after-hour HVAC service to Tenant.
The costs charged to Tenant for such after hour service shall include Landlord's
reasonable  allocation  of the  costs  for  electricity,  water,  sewage,  water
treatment, labor, metering, filtering, equipment depreciation, wear and tear and
maintenance to provide such service and an administrative fee of 10%.

                  7.2 Excess  Utility Use.  Landlord shall  not be  required  to
furnish  electrical  power for  equipment  that  requires more than 110 volts or
other equipment whose electrical energy consumption exceeds normal office usage.
If  Tenant's   requirements  for  or  consumption  of  electricity   exceed  the
electricity  to be provided by Landlord as described  in Section  7.1,  Landlord
shall,  at Tenant's  expense,  make  reasonable  efforts to supply such  service
through the  then-existing  feeders  and risers  serving  the  Building  and the
Premises,  provided  the  additional  use of such  feeders and risers  caused by
Tenant's  excess  electrical  requirements  do not adversely  affect  Landlord's
ability to provide reasonable  electrical service to the balance of the Building
(as  determined by Landlord in the exercise of its reasonable  discretion);  and
Tenant  shall pay to  Landlord  the cost of such  service  within 30 days  after
Landlord has delivered to Tenant an invoice therefor. Landlord may determine the
amount  of  such  additional   consumption  and  potential  consumption  by  any
verifiable  method,  including  installation of a separate meter in the Premises
installed,  maintained,  and read by Landlord, at Tenant's expense. Tenant shall
not install any  electrical  equipment  requiring  special  wiring or  requiring
voltage in excess of 110 volts  unless  approved in advance by  Landlord,  which
approval  shall not be  unreasonably  withheld.  Tenant  shall not  install  any
electrical  equipment  requiring  voltage in excess of Building  capacity unless
approved in advance by Landlord,  which  approval may be withheld in  Landlord's
sole  discretion.  The use of  electricity  in the Premises shall not exceed the
capacity of existing feeders and risers to or wiring in the Premises. Any risers
or wiring required to meet Tenant's excess electrical  requirements  shall, upon
Tenant's  written  request,  be installed by Landlord,  at Tenant's cost, if, in
Landlord's judgment, the same are necessary and shall not cause permanent damage
to the  Building  or the  Premises,  cause or create a  dangerous  or  hazardous
condition, entail excessive or unreasonable alterations, repairs, or

860209V.2 CHA792/16000                5                            CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

expenses,  adversely affect Landlord's  ability to provide reasonable service to
the balance of the Building,  or interfere  with or disturb other tenants of the
Building.  If Tenant uses machines or equipment in the Premises which affect the
temperature  otherwise  maintained by the air  conditioning  system or otherwise
overload any utility,  Landlord may install  supplemental air conditioning units
or other supplemental equipment in the Premises, and the cost thereof, including
the cost of installation,  operation, use, and maintenance, in each case plus an
administrative  fee of 15% of such  cost,  shall be paid by Tenant  to  Landlord
within 30 days after Landlord has delivered to Tenant an invoice therefor.

                  7.3  Restoration  of  Services;  Abatement. Landlord shall use
reasonable  efforts to restore any service required of it under Section 7.1 that
becomes  unavailable;  however,  such  unavailability  shall not render Landlord
liable for any damages caused  thereby,  be a  constructive  eviction of Tenant,
constitute a breach of any implied warranty,  or, except as provided in the next
sentence, entitle Tenant to any abatement of Tenant's obligations hereunder. If,
however,   Tenant  is  prevented   from  using  the  Premises   because  of  the
unavailability of any such service for a period of 15 consecutive  business days
(or  10  consecutive  business  days  because  of  the  unavailability  and  the
restoration  of such  services  is within the  reasonable  control of  Landlord)
following  Landlord's  receipt from Tenant of a written  notice  regarding  such
unavailability,  and such  unavailability  was not caused by a Tenant  Party,  a
governmental  directive, or the failure of public utilities to furnish necessary
services, then Tenant shall, as its exclusive remedy be entitled to a reasonable
abatement of Rent for each  consecutive  day (after such 15- day period or after
such 10-day period,  as  applicable)  that Tenant is so prevented from using the
Premises.

                  7.4  Repair  and  Maintenance  by  Landlord.  Landlord   shall
maintain and repair the common areas of the Project,  Building's Structure,  the
core portions of the  Building's  Systems,  the parking areas and other exterior
areas of the Project, including driveways,  alleys, landscape and grounds of the
Project and utility lines in a good condition,  consistent with the operation of
similar  class  office  buildings in the market in which the Project is located,
including  maintenance,  repair and  replacement  of the exterior of the Project
(including  painting),  landscaping,  sprinkler  systems and any items  normally
associated  with the  foregoing.  All costs in performing  the work described in
this Section shall be included in Operating  Costs except to the extent excluded
by Section 4.2. In no event shall Landlord be responsible for alterations to the
Building's  Structure  required by applicable Law because of Tenant's use of the
Premises or alterations or  improvements to the Premises made by or for a Tenant
Party  (which  alterations  shall be made by Landlord at Tenant's  sole cost and
expense and on the same terms and  conditions as Landlord  performed  repairs as
described  in Section  8.2  below).  Notwithstanding  anything  to the  contrary
contained  herein,  Landlord shall, in its  commercially-reasonable  discretion,
determine  whether,  and  to  the  extent,   repairs  or  replacements  are  the
appropriate remedial action.

         8.       Improvements; Alterations; Repairs; Maintenance.

                  8.1 Improvements;  Alterations.  Improvements to the  Premises
shall be  installed  at  Tenant's  expense  only in  accordance  with  plans and
specifications  which have been previously  submitted to and approved in writing
by Landlord,  which  approval  shall be governed by the  provisions set forth in
this Section  8.1. No  alterations  or physical  additions in or to the Premises
(including the installation of systems  furniture or other equipment or personal
property that affects or otherwise  connects to the  Building's  Systems) may be
made without  Landlord's prior written consent,  which shall not be unreasonably
withheld  or  delayed;  however,  Landlord  may  withhold  its  consent  to  any
alteration  or  addition  that would (a)  adversely  affect  (in the  reasonable
discretion  of Landlord)  the  Building's  Structure or the  Building's  Systems
(including the Project's  restrooms or mechanical  rooms), or (b) affect (in the
sole  discretion of Landlord) the (i) exterior  appearance of the Project,  (ii)
appearance  of the  Project's  common areas or elevator  lobby  areas,  or (iii)
provision of services to other occupants of the Project.  Tenant shall not paint
or  install  lighting  or  decorations,  signs,  window  or door  lettering,  or
advertising  media of any type visible from the exterior of the Premises without
the prior  written  consent  of  Landlord,  which  consent  may be  withheld  in
Landlord's  sole  and  absolute  discretion.  All  alterations,  additions,  and
improvements shall be constructed,  maintained,  and used by Tenant, at its risk
and expense,  in accordance with all Laws;  Landlord's consent to or approval of
any  alterations,  additions or  improvements  (or the plans therefor) shall not
constitute a representation or warranty by Landlord,  nor Landlord's acceptance,
that the same comply with sound  architectural  and/or engineering  practices or
with all applicable  Laws, and Tenant shall be solely  responsible  for ensuring
all such compliance.

860209V.2 CHA792/16000                 6                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                  8.2 Repair and Maintenance by  Tenant.  Tenant  shall maintain
the Premises in a clean, safe, and operable  condition,  and shall not permit or
allow to  remain  any waste or damage to any  portion  of the  Premises.  If the
Premises include, now or hereafter,  one or more floors of the Building in their
entirety,  all corridors and restroom  facilities  located on such full floor(s)
shall be considered to be a part of the Premises.  Additionally,  Tenant, at its
sole  expense,  shall  repair,  replace and  maintain in good  condition  and in
accordance  with all Laws and the  equipment  manufacturer's  suggested  service
programs,  all  portions  of the  Premises  (excluding  the core  portion of the
Building's  Systems,  which shall be maintained by Landlord  pursuant to Section
7.4,  and all branch lines of the  Building's  Systems  exclusively  serving the
Premises,  which shall be  maintained  by Landlord at Tenant's cost and expense)
and  Tenant's   Off-Premises   Equipment   and  all  areas,   improvements   and
Tenant-installed  systems, e.g., supplemental HVAC systems,  exclusively serving
the  Premises.  With  respect to any portion of the  Premises  visible  from any
common area inside or outside of the Building (the "Visible  Premises"),  Tenant
shall (1) maintain such Visible  Premises and furniture,  fixtures and equipment
located therein in a neat and first-class  condition throughout the Term and any
extension  thereof,  (2) not use the Visible  Premises for  storage,  (3) obtain
Landlord's  prior  written  consent as to the  interior  paint  color,  signage,
carpeting,  furniture  and  equipment  contained  in the Visible  Premises,  (4)
complete within the Visible Premises any requested  cleaning within one business
day after  Landlord's  written  request  therefor,  and (5) complete  within the
Visible  Premises any  requested  repairs,  alterations  or changes  within five
business days after Landlord's written request therefor.  Tenant shall repair or
replace,  subject to  Landlord's  direction and  supervision,  any damage to the
Project  caused by a Tenant Party.  If (A) Tenant fails to commence to make such
repairs or  replacements  within 15 days after the occurrence of such damage and
thereafter diligently pursue the completion thereof, or (B) notwithstanding such
diligence,  Tenant fails to complete such repairs or replacements within 30 days
after the occurrence of such damage, then Landlord may make the same at Tenant's
cost. If any such damage occurs outside of the Premises, then Landlord may elect
to repair such damage at Tenant's expense, rather than having Tenant repair such
damage.  The cost of all  maintenance,  repair or replacement  work performed by
Landlord under this Section 8, in each case plus an administrative fee of 15% of
such cost, shall be paid by Tenant to Landlord within 30 days after Landlord has
invoiced Tenant therefor.

                  8.3  Performance of Work. All work described in this Section 8
shall  be  performed  only by  Landlord  or by  contractors  and  subcontractors
approved  in  writing  by  Landlord  and  only  in  accordance  with  plans  and
specifications  approved by Landlord in writing. If Landlord elects, in its sole
discretion,  to supervise any work described in this Section 8, Tenant shall pay
to Landlord a construction  management fee equal to 5% of the cost of such work.
Tenant shall cause all  contractors and  subcontractors  to procure and maintain
insurance coverage naming Landlord,  Landlord's  Mortgagee,  Landlord's property
management  company  and  Landlord's  asset  management  company  as  additional
insureds  against  such  risks,  in such  amounts,  and with such  companies  as
Landlord  may  reasonably  require.  Tenant  shall  provide  Landlord  with  the
identities,  mailing addresses and telephone  numbers of all persons  performing
work or supplying  materials prior to beginning such  construction  and Landlord
may post on and about the  Premises  notices of  non-responsibility  pursuant to
applicable  Laws.  All such work shall be performed in accordance  with all Laws
and in a good and workmanlike manner so as not to damage the Building (including
the Premises, the Building's Structure and the Building's Systems) and shall use
materials  of a quality  that is at least  equal to the  quality  designated  by
Landlord  as the minimum  standard  for the  Building,  and in such manner as to
cause a minimum of interference with other construction in progress and with the
transaction of business in the Project. Landlord may designate reasonable rules,
regulations  and procedures for the performance of all such work in the Building
and, to the extent reasonably  necessary to avoid disruption to the occupants of
the  Building,  shall have the right to designate the time when such work may be
performed.  All such work  which may  affect  the  Building's  Structure  or the
Building's  Systems  must be approved by the  Project's  engineer of record,  at
Tenant's  expense and, at Landlord's  election,  must be performed by Landlord's
usual contractor for such work. All work affecting the roof of the Building must
be performed by Landlord's roofing contractor and no such work will be permitted
if it would void or reduce the warranty on the roof. Upon completion of any work
described  in this  Section 8,  Tenant  shall  furnish  Landlord  with  accurate
reproducible "as-built" CADD files of the improvements as constructed.

                  8.4 Mechanic's  Liens. All work  performed, materials furnish-
ed, or  obligations  incurred  by or at the  request of a Tenant  Party shall be
deemed  authorized  and ordered by Tenant only,  and Tenant shall not permit any
mechanic's or construction liens to be filed against the Premises or the Project
in connection therewith.  Upon completion of any such work, Tenant shall deliver
to  Landlord  final  lien  waivers  from  all  contractors,  subcontractors  and
materialmen who performed such work. If such a lien is filed, then Tenant shall,
within ten days after  Landlord has  delivered  notice of the filing  thereof to
Tenant  (or such  earlier time  period  as  may  be  necessary  to  prevent  the

860209V.2 CHA792/16000                   7                         CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

forfeiture of the Premises,  the Project or any interest of Landlord  therein or
the imposition of a civil or criminal fine with respect thereto), either (1) pay
the  amount of the lien and  cause the lien to be  released  of  record,  or (2)
diligently  contest  such lien and deliver to Landlord a bond or other  security
reasonably  satisfactory to Landlord. If Tenant fails to timely take either such
action, then Landlord may pay the lien claim, and any amounts so paid, including
expenses and interest, shall be paid by Tenant to Landlord within ten days after
Landlord has invoiced Tenant therefor. Landlord and Tenant acknowledge and agree
that  their  relationship  is and  shall  be  solely  that of  "landlord-tenant"
(thereby excluding a relationship of "owner-contractor,"  "owner-agent" or other
similar  relationships)  and that Tenant is not  authorized to act as Landlord's
common law agent or construction  agent in connection with any work performed in
the Premises.  Accordingly, all materialmen,  contractors,  artisans, mechanics,
laborers and any other  persons now or hereafter  contracting  with Tenant,  any
contractor  or  subcontractor  of  Tenant  or any  other  Tenant  Party  for the
furnishing of any labor, services, materials, supplies or equipment with respect
to any portion of the  Premises,  at any time from the date hereof until the end
of the Term, are hereby charged with notice that they look exclusively to Tenant
to obtain payment for same. Nothing herein shall be deemed a consent by Landlord
to any liens being placed upon the Premises,  the Project or Landlord's interest
therein  due to any  work  performed  by or for  Tenant  or  deemed  to give any
contractor or  subcontractor  or materialman  any right or interest in any funds
held by Landlord to  reimburse  Tenant for any portion of the cost of such work.
Tenant shall defend,  indemnify  and hold  harmless  Landlord and its agents and
representatives from and against all claims,  demands,  causes of action, suits,
judgments,  damages and expenses (including  attorneys' fees) in any way arising
from or  relating  to the  failure  by any  Tenant  Party  to pay  for any  work
performed,  materials furnished, or obligations incurred by or at the request of
a Tenant Party. This indemnity provision shall survive termination or expiration
of this Lease.

         9. Use. Tenant shall continuously  occupy and use the Premises only for
the Permitted Use and shall comply with all Laws relating to the use, condition,
access to, and occupancy of the Premises and will not commit waste, overload the
Building's  Structure or the  Building's  Systems or subject the Premises to use
that would damage the Premises.  The population density within the Premises as a
whole  shall at no time exceed one person for each 300  rentable  square feet in
the Premises; however, such population density may from time to time exceed such
number on a temporary  basis for  meetings,  conferences  and other  events of a
temporary  nature.  Tenant  shall not conduct  second or third shift  operations
within the Premises;  however, Tenant may use the Premises after normal business
hours, so long as Tenant is not generally  conducting business from the Premises
after  normal  business  hours.  Notwithstanding  anything  in this Lease to the
contrary,  as between  Landlord  and Tenant,  (a) Tenant  shall bear the risk of
complying  with Title III of the Americans  With  Disabilities  Act of 1990, any
state laws  governing  handicapped  access or  architectural  barriers,  and all
rules, regulations,  and guidelines promulgated under such laws, as amended from
time to time (the "Disabilities  Acts") in the Premises,  and (b) Landlord shall
bear the risk of complying with the Disabilities Acts in the common areas of the
Building,  other than compliance that is necessitated by the use of the Premises
for other than the Permitted Use or as a result of any alterations or additions,
including any initial tenant  improvement work, made by or on behalf of a Tenant
Party  (which risk and  responsibility  shall be borne by Tenant).  The Premises
shall not be used for any use which is disreputable,  creates extraordinary fire
hazards,  or results in an  increased  rate of  insurance  on the Project or its
contents,  or for the storage of any Hazardous  Materials (other than de minimis
quantities found in typical office supplies [e.g.,  photocopier  toner] and then
only in compliance with all Laws and in a reasonable and prudent manner). Except
as provided below, the following uses are expressly  prohibited in the Premises:
schools,  governmental  offices  or  agencies;  personnel  agencies;  collection
agencies; credit unions; data processing, telemarketing,  reservation centers or
other "call centers";  medical treatment and health care;  radio,  television or
other  communications  broadcasting;  restaurants and other retail; and customer
service  offices of a public  utility  company.  Notwithstanding  the  preceding
sentence,  the  following  ancillary  uses are permitted in the Premises only so
long as they do not,  in the  aggregate,  occupy  more than 10% of the  rentable
square feet in the Premises or any single  floor  (whichever  is less):  (1) the
following  services  provided by Tenant  exclusively to its employees:  schools,
training and other educational services;  and (2)the following services directly
and  exclusively  supporting  Tenant's  business:  telemarketing;  reservations;
storage;  data processing;  debt collection;  and similar support services.  If,
because of a Tenant  Party's  acts or omissions  or because  Tenant  vacates the
Premises,  the rate of  insurance  on the  Building or its  contents  increases,
Tenant  shall  pay to  Landlord  the  amount of such  increase  on  demand,  and
acceptance of such payment shall not waive any of  Landlord's  other rights.  If
Tenant fails to cease or remediate  such acts within five days after  Landlord's
request  that  Tenant do so,  then such acts or  omissions  shall be an Event of
Default.  Tenant shall  conduct its business and control each other Tenant Party
so as not to create any nuisance or unreasonably interfere with other tenants or
Landlord in its management of the Project.

860209V.2 CHA792/16000                 8                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

         10.      Assignment and Subletting.

                  10.1   Transfers. Except as provided  in Section  10.8, Tenant
shall not, without the prior written consent of Landlord, (1) assign,  transfer,
or encumber this Lease or any estate or interest herein,  whether directly or by
operation  of law,  (2) permit any other  entity to become  Tenant  hereunder by
merger, consolidation, or other reorganization, (3) if Tenant is an entity other
than a  corporation  whose stock is publicly  traded,  permit the transfer of an
ownership  interest in Tenant so as to result in a change in the current  direct
or indirect control of Tenant, (4) sublet any portion of the Premises, (5) grant
any  license,  concession,  or other  right of  occupancy  of any portion of the
Premises,  (6) permit the use of the Premises by any parties  other than Tenant,
or (7) sell or otherwise  transfer,  in one or more transactions,  a majority of
Tenant's  assets (any of the events listed in Section  10.1(1)  through  10.1(7)
being a "Transfer").

                  10.2 Consent  Standards. Landlord shall not unreasonably with-
hold its consent to any assignment of Tenant's  entire interest in this Lease or
subletting  of the  Premises,  provided  that  the  proposed  transferee  (1) is
creditworthy,  (2) will use the Premises for the Permitted Use (thus, excluding,
without  limitation,  uses for credit processing and telemarketing) and will not
use the  Premises  in any manner  that would  conflict  with any  exclusive  use
agreement or other  similar  agreement  entered into by Landlord  with any other
tenant of the Project,  (3) will not use the Premises,  Building or Project in a
manner that would materially increase the pedestrian or vehicular traffic to the
Premises,  Building or Project, (4) is not a governmental or  quasi-governmental
entity,  or subdivision or agency  thereof,  (5) is not another  occupant of the
Project or an Affiliate of such occupant so long as Landlord  anticipates having
in the 90 day period  following the proposed  date of the  Transfer,  sufficient
available space to lease to such  prospective  tenant,  (6) is not currently and
has not in the past been  involved  in  litigation  with  Landlord or any of its
Affiliates, (7) meets Landlord's reasonable standards for tenants of the Project
and is otherwise  compatible with the character of the occupancy of the Project,
(8) will not result in, either by the transfer or any  consideration  payable to
Landlord  in  connection  therewith,  an  adverse  effect  on  any  real  estate
investment  trust (or pension  fund or other  ownership  vehicle)  qualification
tests  applicable to Landlord or any of its Affiliates,  and (9) is not a person
or entity with whom Landlord is then, or has been within the  four-month  period
prior to the time  Tenant  seeks to enter into such  assignment  or  subletting,
negotiating to lease space in the Project or any Affiliate of any such person or
entity so long as Landlord anticipates having in the 90 day period following the
proposed  date of the  Transfer,  sufficient  available  space  to lease to such
prospective  tenant;  otherwise,  Landlord  may withhold its consent in its sole
discretion.  Additionally,  Landlord  may  withhold  its  consent  in  its  sole
discretion  to any  proposed  Transfer  if any Event of Default  by Tenant  then
exists.   Any  Transfer  made  while  an  Event  of  Default  exists  hereunder,
irrespective  whether  Landlord's  consent is required hereunder with respect to
the Transfer,  shall be voidable by Landlord in Landlord's sole  discretion.  In
agreeing to act reasonably,  Landlord is agreeing to act in a manner  consistent
with the standards  followed by large  institutional  owners of commercial  real
estate and Landlord is permitted to consider the financial terms of the Transfer
and the impact of the Transfer on Landlord's  own leasing  efforts and the value
of the Project.  Landlord may condition its consent to a Transfer on an increase
in the Security Deposit or receipt of a guaranty from a suitable party. Landlord
shall not be required to act reasonably in considering  any request to pledge or
encumber  this Lease or any  interest  therein.  For the  purposes of clause (9)
above,  "negotiating  to lease space" shall mean any of the following:  Landlord
has received a request for  proposal  from a  prospective  tenant or its broker,
Landlord has submitted a written lease proposal or Landlord has initiated  space
planning for a prospective tenant.

                  10.3 Request  for  Consent.  If   Tenant  requests  Landlord's
consent to a Transfer,  then,  at least 15 business  days prior to the effective
date of the proposed  Transfer,  Tenant shall  provide  Landlord  with a written
description of all terms and conditions of the proposed Transfer,  copies of the
proposed  documentation,  and  the  following  information  about  the  proposed
transferee:  name and address of the  proposed  transferee  and any entities and
persons  who  own,  control  or  direct  the  proposed  transferee;   reasonably
satisfactory  information about its business and business history;  its proposed
use of the  Premises;  banking,  financial,  and other credit  information;  and
general  references  sufficient  to enable  Landlord to  determine  the proposed
transferee's  creditworthiness and character.  Concurrently with Tenant's notice
of any request for consent to a Transfer,  Tenant shall pay to Landlord a fee of
$1,000 to defray Landlord's expenses in reviewing such request, and Tenant shall
also reimburse Landlord  immediately upon request for its reasonable  attorneys'
fees and other expenses  incurred in connection with considering any request for
consent to a Transfer.

860209V.2 CHA792/16000                 9                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                  10.4  Conditions  to  Consent.  If   Landlord  consents  to  a
proposed  Transfer,  then the proposed  transferee  shall  deliver to Landlord a
written agreement whereby it expressly assumes Tenant's  obligations  hereunder;
however,  any  transferee of less than all of the space in the Premises shall be
liable only for obligations under this Lease that are properly  allocable to the
space subject to the Transfer for the period of the Transfer.  No Transfer shall
release Tenant from its obligations  under this Lease, but rather Tenant and its
transferee shall be jointly and severally liable therefor. Landlord's consent to
any Transfer shall not waive  Landlord's  rights as to any subsequent  Transfers
and no subtenant  of any portion of the  Premises  shall be permitted to further
sublease any portion of its subleased space. If an Event of Default occurs while
the Premises or any part thereof are subject to a Transfer,  then  Landlord,  in
addition to its other  remedies,  may collect  directly from such transferee all
rents  becoming  due to  Tenant  and  apply  such  rents  against  Rent.  Tenant
authorizes  its  transferees  to make payments of rent directly to Landlord upon
receipt of notice from Landlord to do so following the occurrence of an Event of
Default hereunder.  Tenant shall pay for the cost of any demising walls or other
improvements necessitated by a proposed subletting or assignment.

                  10.5 Attornment by Subtenants. Each  sublease by  Tenant here-
under shall be subject and subordinate to this Lease and to the matters to which
this Lease is or shall be  subordinate,  and each  subtenant by entering  into a
sublease is deemed to have agreed that in the event of termination,  re-entry or
dispossession  by Landlord under this Lease,  Landlord may, at its option,  take
over all of the right, title and interest of Tenant, as sublandlord,  under such
sublease,  and such subtenant  shall, at Landlord's  option,  attorn to Landlord
pursuant to the then executory provisions of such sublease, except that Landlord
shall not be (1) liable for any  previous  act or omission of Tenant  under such
sublease, (2) subject to any counterclaim, offset or defense that such subtenant
might  have  against  Tenant,  (3) bound by any  previous  modification  of such
sublease not approved by Landlord in writing or by any rent or  additional  rent
or advance rent which such  subtenant  might have paid for more than the current
month to Tenant,  and all such rent shall remain due and owing,  notwithstanding
such advance  payment,  (4) bound by any security or advance rental deposit made
by such  subtenant  which is not  delivered  or paid over to  Landlord  and with
respect  to which  such  subtenant  shall  look  solely to Tenant  for refund or
reimbursement, or (5) obligated to perform any work in the subleased space or to
prepare it for occupancy, and in connection with such attornment,  the subtenant
shall execute and deliver to Landlord any  instruments  Landlord may  reasonably
request to evidence and confirm such  attornment.  Each subtenant or licensee of
Tenant shall be deemed,  automatically  upon and as a condition of its occupying
or using the  Premises  or any part  thereof,  to have agreed to be bound by the
terms and  conditions  set forth in this Section  10.5.  The  provisions of this
Section  10.5  shall  be  self-operative,  and no  further  instrument  shall be
required to give effect to this provision.

                  10.6  Cancellation.  Landlord may, within  30 days  after sub-
mission of Tenant's  written request for Landlord's  consent to an assignment or
subletting,  cancel this Lease as to the portion of the Premises  proposed to be
sublet or assigned as of the date the proposed  Transfer is to be effective.  If
Landlord  cancels this Lease as to any portion of the Premises,  then this Lease
shall cease for such  portion of the  Premises  and Tenant shall pay to Landlord
all Rent accrued  through the  cancellation  date relating to the portion of the
Premises covered by the proposed Transfer.  Thereafter,  Landlord may lease such
portion of the Premises to the  prospective  transferee (or to any other person)
without liability to Tenant. Notwithstanding the foregoing, if Landlord provides
written  notification  to Tenant of its  election to cancel this Lease as to any
portion of the  Premises as  provided  above,  Tenant may  rescind its  proposed
assignment or subletting of the Premises by notifying Landlord in writing within
three business days following Landlord's written cancellation notice.

                  10.7 Additional  Compensation.  While  no   Event  of  Default
exists,  Tenant shall pay to Landlord,  immediately upon receipt thereof,  fifty
percent  (50%) of the excess of (1) all  compensation  received  by Tenant for a
Transfer less the actual  out-of-pocket costs reasonably incurred by Tenant with
unaffiliated third parties (i.e.,  brokerage commissions and tenant finish work)
in  connection   with  such  Transfer  (such  costs  shall  be  amortized  on  a
straight-line basis over the term of the Transfer in question) over (2) the Rent
allocable to the portion of the  Premises  covered  thereby.  While any Event of
Default exists, Tenant shall pay to Landlord,  immediately upon receipt thereof,
one hundred  percent  (100%) of the excess of (A) all  compensation  received by
Tenant for a Transfer over (B) the Rent allocable to the portion of the Premises
covered thereby.

                  10.8  Permitted   Transfers.   Notwithstanding  Section  10.1,
Tenant may  Transfer all or part of its interest in this Lease or all or part of
the Premises (a  "Permitted  Transfer")  to the  following  types of entities (a
"Permitted Transferee") without the written consent of Landlord:

860209V.2 CHA792/16000                 10                          CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                          10.8.1   an Affiliate of Tenant;

                          10.8.2   any corporation, limited partnership, limited
liability  partnership,  limited  liability  company or other business entity in
which or with which Tenant, or its corporate successors or assigns, is merged or
consolidated,  in accordance  with  applicable  statutory  provisions  governing
merger  and  consolidation  of  business  entities,  so  long  as  (1)  Tenant's
obligations hereunder are assumed by the entity surviving such merger or created
by such  consolidation;  and (2) the  Tangible  Net  Worth of the  surviving  or
created  entity is not less than the Tangible Net Worth of Tenant as of the date
hereof; or

                          10.8.3   any corporation, limited partnership, limited
liability  partnership,  limited  liability  company  or other  business  entity
acquiring all or substantially  all of Tenant's assets,  so long as (1) Tenant's
obligations  hereunder are assumed by the entity acquiring such assets;  and (2)
such  entity's  Tangible Net Worth after such  acquisition  is not less than the
Tangible Net Worth of Tenant as of the date hereof.

Tenant shall promptly  notify  Landlord of any such Permitted  Transfer.  Tenant
shall remain  liable for the  performance  of all of the  obligations  of Tenant
hereunder, or if Tenant no longer exists because of a merger, consolidation,  or
acquisition, the surviving or acquiring entity shall expressly assume in writing
the  obligations of Tenant  hereunder.  Additionally,  the Permitted  Transferee
shall comply with all of the terms and  conditions of this Lease,  including the
Permitted  Use, and the use of the Premises by the Permitted  Transferee may not
violate any other agreements affecting the Premises or the Project,  Landlord or
other tenants of the Project. No later than ten days after the effective date of
any Permitted Transfer, Tenant agrees to furnish Landlord with (A) copies of the
instrument  effecting  any  of  the  foregoing   Transfers,   (B)  documentation
establishing   Tenant's   satisfaction  of  the  requirements  set  forth  above
applicable to any such Transfer, and (C) evidence of insurance as required under
this Lease  with  respect  to the  Permitted  Transferee.  The  occurrence  of a
Permitted  Transfer  shall not  waive  Landlord's  rights  as to any  subsequent
Transfers.  "Tangible  Net Worth"  means the excess of total  assets  over total
liabilities,  in each case as determined in accordance  with generally  accepted
accounting principles  consistently applied ("GAAP"),  excluding,  however, from
the  determination  of total  assets all assets  which  would be  classified  as
intangible assets under GAAP including goodwill,  licenses, patents, trademarks,
trade names, copyrights,  and franchises. Any subsequent Transfer by a Permitted
Transferee shall be subject to the terms of this Section 10.

         11.      Insurance; Waivers; Subrogation; Indemnity.

                  11.1 Tenant's Insurance.  Effective as of the earlier  of  (1)
the date Tenant enters or occupies the Premises,  or (2) the Commencement  Date,
and  continuing  throughout  the  Term,  Tenant  shall  maintain  the  following
insurance  policies:  (A)  commercial  general  liability  insurance  (including
property  damage,  bodily  injury and  personal  injury  coverage) in amounts of
$1,000,000 per occurrence in primary coverage,  with an additional $3,000,000 in
umbrella  coverage or,  following the expiration of the initial Term, such other
amounts as Landlord may from time to time  reasonably  require  (and, if the use
and  occupancy of the Premises  include any activity or matter that is or may be
excluded from coverage under a commercial  general  liability  policy [e.g., the
sale, service or consumption of alcoholic  beverages],  Tenant shall obtain such
endorsements  to the commercial  general  liability  policy or otherwise  obtain
insurance  to  insure  all  liability  arising  from  such  activity  or  matter
[including  liquor  liability,  if  applicable]  in such amounts as Landlord may
reasonably  require),   insuring  Tenant  (and  naming  as  additional  insureds
Landlord,  Landlord's property  management company,  Landlord's asset management
company and, if requested in writing by Landlord, Landlord's Mortgagee), against
all  liability  for  injury  to or death of a person  or  persons  or  damage to
property  arising  from  the use and  occupancy  of the  Premises  and  (without
implying any consent by Landlord to the installation  thereof) the installation,
operation,  maintenance,  repair or removal of Tenant's Off-Premises  Equipment,
(B) cause of loss-special risk form (formerly  "all-risk") insurance (including,
but not limited to, sprinkler leakage,  ordinance and law, sewer back-up, flood,
earthquake,  windstorm  and  collapse  coverage)  covering the full value of all
alterations and  improvements  and betterments in the Premises,  naming Landlord
and  Landlord's  Mortgagee  as  additional  loss payees as their  interests  may
appear,  (C) cause of  loss-special  risk form (formerly  "all-risk")  insurance
covering the full value of all furniture,  trade fixtures and personal  property
(including  property of Tenant or others) in the Premises or otherwise placed in
the Project by or on behalf of a Tenant Party (including  Tenant's  Off-Premises
Equipment),  (D) contractual  liability insurance  sufficient  to cover Tenant's

860209V.2 CHA792/16000                  11                         CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

Tenant's indemnity obligations hereunder (but only if such contractual liability
insurance  is not  already  included in Tenant's  commercial  general  liability
insurance  policy),  (E)  commercial  auto liability  insurance (if  applicable)
covering  automobiles owned, hired or used by Tenant in carrying on its business
with limits not less than  $1,000,000  combined  single limit for each accident,
insuring Tenant (and naming as additional insureds Landlord, Landlord's property
management  company,  Landlord's asset  management  company and, if requested in
writing by Landlord, Landlord's Mortgagee), (F) worker's compensation insurance,
and (G) business interruption insurance in an amount equal to or greater than 12
months  of  Tenant's  actual,  sustained  probable  loss.   Notwithstanding  the
foregoing,  and provided that Tenant provides Landlord with sufficient  evidence
that  Tenant's  Tangible  Net Worth  equals or  exceeds  150% of the Basic  Rent
obligations  hereunder  at all  times  during  the  Term,  Tenant  may  elect to
self-insure for the risks that would be covered under the business  interruption
insurance  required under Section 11.1(2)(G) above. Any insurance required to be
maintained  by  Tenant  may be taken out  under a  blanket  insurance  policy or
policies  covering  other  premises,  property  or  insureds  in addition to the
Premises and Tenant,  provided the  commercial  general  liability  and umbrella
coverages  are on a per  location  aggregate  basis (or  contain a per  location
aggregate endorsement) and such blanket policy or policies otherwise comply with
this Section 11.1. Tenant's insurance (or self-insurance)  shall provide primary
coverage to Landlord  when any policy issued to Landlord  provides  duplicate or
similar coverage, and in such circumstance Landlord's policy will be excess over
Tenant's policy. Tenant shall furnish to Landlord certificates of such insurance
and such other  evidence  satisfactory  to  Landlord of the  maintenance  of all
insurance coverages required hereunder at least ten days prior to the earlier of
the Commencement Date or the date Tenant enters or occupies the Premises (in any
event, within ten days of the effective date of coverage),  and at least 15 days
prior to each  renewal  of said  insurance,  and Tenant  shall  obtain a written
obligation on the part of each insurance  company to notify Landlord at least 30
days before  cancellation or a material  change of any such insurance  policies.
All such insurance policies shall be in form reasonably satisfactory to Landlord
and issued by companies  with an A.M. Best rating of A+:VII or better.  However,
no review or approval of any insurance  certificate  or policy by Landlord shall
derogate from or diminish Landlord's rights or Tenant's  obligations  hereunder.
If Tenant  fails to  comply  with the  foregoing  insurance  requirements  or to
deliver to Landlord the  certificates or evidence of coverage  required  herein,
Landlord,  in addition to any other remedy  available  pursuant to this Lease or
otherwise,  may, but shall not be obligated to, obtain such insurance and Tenant
shall  pay  to  Landlord  on  demand  the  premium   costs   thereof,   plus  an
administrative fee of 15% of such cost.

                  11.2  Landlord's Insurance. Throughout the Term of this Lease,
Landlord shall maintain,  as a minimum,  the following insurance  policies:  (1)
property  insurance for the Building's  replacement  value  (excluding  property
required to be insured by Tenant), less a commercially-reasonable  deductible if
Landlord so chooses, and (2) commercial general liability insurance in an amount
of not less than  $3,000,000.  Landlord may, but is not  obligated to,  maintain
such other insurance and additional coverages as it may deem necessary. The cost
of all  insurance  carried by  Landlord  with  respect to the  Project  shall be
included in Operating  Costs.  The  foregoing  insurance  policies and any other
insurance  carried by Landlord  shall be for the sole  benefit of  Landlord  and
under  Landlord's  sole control,  and Tenant shall have no right or claim to any
proceeds thereof or any other rights  thereunder.  Any insurance  required to be
maintained  by  Landlord  may be taken out under a blanket  insurance  policy or
policies  covering  other  buildings,  property  or  insureds in addition to the
Building and Landlord.  In such event,  the costs of any such blanket  insurance
policy or policies  shall be  reasonably  allocated to the Project and the other
properties  covered by such  policy or  policies  as  reasonably  determined  by
Landlord and included as part of Operating  Costs.  Notwithstanding  anything in
this Lease to the contrary,  Landlord's  indemnity  obligations under this Lease
shall be limited to the extent any such claim is insured against under the terms
of any insurance policy  maintained by Landlord (or is required to be maintained
by Landlord under the terms of this Lease).

                  11.3  No  Subrogation; Waiver of Property Claims. Landlord and
Tenant each  waives any claim it might have  against the other for any damage to
or theft,  destruction,  loss, or loss of use of any property, to the extent the
same is insured  against (or  permitted to be  self-insured  against)  under any
insurance  policy of the types  described  in this  Section  11 that  covers the
Project,  the Premises,  Landlord's  or Tenant's  fixtures,  personal  property,
leasehold improvements,  or business, or is required to be insured against under
the terms hereof, regardless of whether the negligence of the other party caused
such Loss  (defined  below).  Additionally,  Tenant waives any claim it may have
against  Landlord  for any Loss to the extent such Loss is caused by a terrorist
act.  Each party shall  cause its  insurance  carrier to endorse all  applicable
policies waiving the carrier's rights of recovery under subrogation or otherwise
against the other  party.  Notwithstanding  any  provision  in this Lease to the
contrary, Landlord, its agents, employees and contractors shall not be liable to
Tenant or to any party  claiming  by,  through or under  Tenant for (and  Tenant
hereby releases Landlord and its servants,  agents,  contractors,  employees and

860209V.2 CHA792/16000                   12                        CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

invitees  from any claim or  responsibility  for) any damage to or  destruction,
loss, or loss of use, or theft of any property of any Tenant Party located in or
about the Project,  caused by casualty,  theft, fire, third parties or any other
matter or cause,  regardless of whether the  negligence of any party caused such
loss in whole or in part.  Tenant  acknowledges  that  Landlord  shall not carry
insurance  on, and shall not be  responsible  for damage to, any property of any
Tenant Party located in or about the Project.

                  11.4  Indemnity. Subject to Section 11.3, Tenant shall defend,
indemnify,  and hold harmless Landlord and its  representatives  and agents from
and  against  all  claims,  demands,  liabilities,   causes  of  action,  suits,
judgments,  damages, and expenses (including reasonable attorneys' fees) arising
from  any  injury  to or  death  of  any  person  or  the  damage  to or  theft,
destruction,  loss, or loss of use of, any property or  inconvenience (a "Loss")
(1)  occurring  in or on the Project  (other than  within the  Premises)  to the
extent caused by the negligence or willful  misconduct of any Tenant Party,  (2)
occurring in the Premises,  or (3) arising out of the  installation,  operation,
maintenance, repair or removal of any property of any Tenant Party located in or
about the Project,  including Tenant's Off-Premises  Equipment.  It being agreed
that clauses (2) and (3) of this  indemnity  are intended to indemnify  Landlord
and its agents against the  consequences of their own negligence or fault,  even
when  Landlord  or its agents are  jointly,  comparatively,  contributively,  or
concurrently  negligent  with Tenant,  and even though any such claim,  cause of
action or suit is based upon or alleged to be based upon the strict liability of
Landlord or its agents;  however,  such indemnity shall not apply to the sole or
gross  negligence or willful  misconduct of Landlord and its agents.  Subject to
Section 11.3, Landlord shall defend, indemnify, and hold harmless Tenant and its
agents  from and against all  claims,  demands,  liabilities,  causes of action,
suits,  judgments,  damages, and expenses (including reasonable attorneys' fees)
for any Loss arising from any occurrence in or on the Building's common areas to
the extent  caused by the  negligence  or willful  misconduct of Landlord or its
agents.  The  indemnities  set forth in this Lease shall survive  termination or
expiration  of this Lease and shall not  terminate or be waived,  diminished  or
affected  in any  manner by any  abatement  or  apportionment  of Rent under any
provision  of this Lease.  If any  proceeding  is filed for which  indemnity  is
required  hereunder,  the indemnifying party agrees,  upon request therefor,  to
defend  the  indemnified  party in such  proceeding  at its sole cost  utilizing
counsel satisfactory to the indemnified party.

         12.      Subordination; Attornment; Notice to Landlord's Mortgagee.

                  12.1  Subordination.  This  Lease  shall be subordinate to any
deed of trust,  mortgage, or other security instrument (each, a "Mortgage"),  or
any ground lease, master lease, or primary lease (each, a "Primary Lease"), that
now or hereafter covers all or any part of the Premises (the mortgagee under any
such Mortgage, beneficiary under any such deed of trust, or the lessor under any
such  Primary  Lease is referred  to herein as a  "Landlord's  Mortgagee").  Any
Landlord's  Mortgagee may elect, at any time,  unilaterally,  to make this Lease
superior to its Mortgage, Primary Lease, or other interest in the Premises by so
notifying   Tenant  in  writing.   The  provisions  of  this  Section  shall  be
self-operative  and no further  instrument of  subordination  shall be required;
however, in confirmation of such subordination,  Tenant shall execute and return
to Landlord (or such other party  designated by Landlord)  within ten days after
written request therefor such documentation,  in recordable form if required, as
a Landlord's  Mortgagee may reasonably  request to evidence the subordination of
this Lease to such Landlord's Mortgagee's Mortgage or Primary Lease (including a
subordination,  non-disturbance and attornment  agreement) or, if the Landlord's
Mortgagee so elects, the subordination of such Landlord's  Mortgagee's  Mortgage
or Primary Lease to this Lease.

                  12.2 Attornment.  Tenant shall attorn to any party  succeeding
to Landlord's interest in the Premises, whether by purchase,  foreclosure,  deed
in lieu of foreclosure,  power of sale, termination of lease, or otherwise, upon
such  party's  request,  and  shall  execute  such  agreements  confirming  such
attornment as such party may reasonably request.

                  12.3 Notice to Landlord's Mortgagee. Tenant shall not  seek to
enforce any remedy it may have for any  default on the part of Landlord  without
first  giving  written  notice by  certified  mail,  return  receipt  requested,
specifying the default in reasonable  detail, to any Landlord's  Mortgagee whose
address has been given to Tenant,  and  affording  such  Landlord's  Mortgagee a
reasonable opportunity to perform Landlord's obligations hereunder.

860209V.2 CHA792/16000                    13                       CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                  12.4   Landlord's  Mortgagee's  Protection Provisions. If Land
-lord's  Mortgagee  shall succeed to the interest of Landlord  under this Lease,
Landlord's  Mortgagee  shall not be: (1) liable for any act or  omission  of any
prior lessor (including  Landlord);  (2) bound by any rent or additional rent or
advance rent which Tenant might have paid for more than the current month to any
prior lessor (including Landlord), and all such rent shall remain due and owing,
notwithstanding  such  advance  payment;  (3) bound by any  security  or advance
rental  deposit made by Tenant which is not delivered or paid over to Landlord's
Mortgagee  and with  respect to which  Tenant  shall look solely to Landlord for
refund or reimbursement; (4) bound by any termination, amendment or modification
of this Lease made without Landlord's  Mortgagee's consent and written approval,
except for those terminations, amendments and modifications permitted to be made
by Landlord without Landlord's  Mortgagee's consent pursuant to the terms of the
loan documents  between  Landlord and Landlord's  Mortgagee;  (5) subject to the
defenses which Tenant might have against any prior lessor (including  Landlord);
and (6) subject to the offsets  which Tenant might have against any prior lessor
(including  Landlord)  except for those offset  rights  which (A) are  expressly
provided in this Lease,  (B) relate to periods of time following the acquisition
of the Building by  Landlord's  Mortgagee,  and (C) Tenant has provided  written
notice to Landlord's  Mortgagee and provided  Landlord's  Mortgagee a reasonable
opportunity  to cure the event  giving  rise to such  offset  event.  Landlord's
Mortgagee  shall have no  liability or  responsibility  under or pursuant to the
terms of this Lease or otherwise  after it ceases to own fee simple title to the
Project.  Nothing  in this  Lease  shall  be  construed  to  require  Landlord's
Mortgagee to see to the  application  of the proceeds of any loan,  and Tenant's
agreements set forth herein shall not be impaired on account of any modification
of the documents evidencing and securing any loan.

                  12.5   Modification   of   Lease.  If any Landlord's Mortgagee
requires a  modification  of this Lease,  which  modification  will not cause an
increased cost or expense to Tenant or in any other way materially and adversely
change the rights and obligations of Tenant  hereunder,  Tenant agrees that this
Lease may be so modified and agrees to execute whatever documents are reasonably
required  therefor and to deliver the same to Landlord  within ten business days
following a request  therefor.  At the  request of  Landlord  or any  Landlord's
Mortgagee,  Tenant  agrees to execute a short form of this Lease and deliver the
same to Landlord within ten business days following the request therefor.

         13. Rules and  Regulations.  Tenant shall  comply  with  the  rules and
regulations of the Project which are attached hereto as Exhibit C. Landlord may,
from time to time,  change such rules and regulations  for the safety,  care, or
cleanliness  of the Project and related  facilities,  provided that such changes
are generally applicable to all tenants of the Project whose leases require such
compliance,  will not  unreasonably  interfere with Tenant's use of the Premises
and are  enforced by Landlord in a  non-discriminatory  manner among all tenants
whose  leases  require such  compliance.  Tenant  shall be  responsible  for the
compliance  or  noncompliance  with such rules and  regulations  by each  Tenant
Party.  Notwithstanding  anything to the contrary contained herein, in the event
of any conflict between any subsequent changes or modifications to the rules and
regulations  attached  hereto as Exhibit C and the terms and  conditions of this
Lease, the terms and conditions of this Lease shall control.

         14.      Condemnation.

                  14.1 Total Taking.  If the  entire  Building  or  Premises are
taken by right of eminent domain or conveyed in lieu thereof (a "Taking"),  this
Lease shall terminate as of the date of the Taking.

                  14.2 Partial  Taking - Tenant's  Rights.  If  any part  of the
Building  becomes  subject to a Taking and such Taking will prevent  Tenant from
conducting  on a  permanent  basis  its  business  in the  Premises  in a manner
reasonably  comparable to that conducted  immediately  before such Taking,  then
Tenant may terminate  this Lease as of the date of such Taking by giving written
notice  to  Landlord  within  30 days  after  the  Taking,  and  Basic  Rent and
Additional  Rent shall be apportioned  as of the date of such Taking.  If Tenant
does not  terminate  this Lease,  then Basic Rent and  Additional  Rent shall be
abated  on a  reasonable  basis  as to that  portion  of the  Premises  rendered
untenantable by the Taking.

                  14.3 Partial  Taking  -  Landlord's  Rights.  If any  material
portion,  but less than all,  of the  Building or Project  becomes  subject to a
Taking,  or if Landlord is required to pay any of the  proceeds  arising  from a
Taking to a Landlord's  Mortgagee,  then  Landlord may  terminate  this Lease by
delivering  written  notice  thereof to Tenant within 30 days after such Taking,
and Basic Rent and Additional Rent shall be apportioned as of the date of

860209V.2 CHA792/16000                  14                         CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

such Taking.  If Landlord does not so terminate this Lease, then this Lease will
continue,  but if any portion of the  Premises  has been  taken,  Basic Rent and
Additional Rent shall abate as provided in the last sentence of Section 14.2.

                  14.4  Award. If any Taking occurs, then Landlord shall receive
the entire award or other  compensation  for the Project and other  improvements
taken; however,  Tenant may separately pursue a claim (to the extent it will not
reduce  Landlord's  award)  against  the  condemnor  for the  value of  Tenant's
personal  property  which Tenant is entitled to remove under this Lease,  moving
costs and loss of business.

                  14.5 Restoration. In the event of any  Taking of less than the
whole of the Premises which does not result in a termination of this Lease,  (a)
Landlord,  at its expense but only to the extent of the award actually  received
by Landlord  pursuant to such Taking (after  deducting any  reasonable  expenses
incurred  in  connection  with  such  Taking),  shall  proceed  with  reasonable
diligence  to repair,  alter and restore  the  remaining  parts of the  affected
Building  and  the  Premises  therein  to the  extent  practicable,  and  (b) if
requested  by either  party,  Landlord  and  Tenant  shall  promptly  execute an
amendment to this Lease  confirming  the deletion from the Premises of the space
subject to the Taking.

         15.      Fire or Other Casualty.

                  15.1 Repair Estimate.  If the  Premises  or  the  Project  are
damaged by fire or other casualty (a "Casualty"), Landlord shall, within 90 days
after  such  Casualty,  deliver  to Tenant a good faith  estimate  (the  "Damage
Notice") of the time needed to repair the damage caused by such Casualty.

                  15.2  Tenant's  Rights. If the Premises is damaged by Casualty
such that Tenant is prevented from  conducting its business in the Premises in a
manner reasonably  comparable to that conducted immediately before such Casualty
and Landlord  estimates  that the damage  caused  thereby for which  Landlord is
responsible  to repair under this Lease pursuant to Section 15.4 below cannot be
repaired  within  270 days  after  the  commencement  of  repairs  (the  "Repair
Period"),  then Tenant may terminate this Lease by delivering  written notice to
Landlord of its election to terminate within 30 days after the Damage Notice has
been delivered to Tenant.

                  15.3 Landlord's Rights. If a  Casualty occurs and (1) Landlord
estimates that the damage cannot be repaired  within the Repair Period,  (2) the
damage exceeds 50% of the replacement  cost thereof  (excluding  foundations and
footings),  as estimated by Landlord, and such damage occurs during the last two
years of the Term,  (3)  regardless  of the extent of damage,  the damage is not
fully covered by Landlord's  insurance  policies or Landlord  makes a good faith
determination  that restoring the damage would be uneconomical,  or (4) Landlord
is  required to pay any  insurance  proceeds  arising  out of the  Casualty to a
Landlord's  Mortgagee,  then Landlord may terminate this Lease by giving written
notice of its election to terminate  within 30 days after the Damage  Notice has
been delivered to Tenant.

                  15.4  Repair  Obligation. If neither party elects to terminate
this Lease following a Casualty,  then Landlord shall,  within a reasonable time
after  such  Casualty,  begin to repair  the  Premises  and shall  proceed  with
reasonable diligence to restore the Premises to substantially the same condition
as they existed immediately before such Casualty; however, Landlord shall not be
required  to repair or replace  any  improvements,  alterations  or  betterments
within the Premises (which shall be promptly and with due diligence repaired and
restored  by  Tenant  at  Tenant's  sole  cost and  expense)  or any  furniture,
equipment,  trade  fixtures  or  personal  property  of  Tenant or others in the
Premises or the  Project,  and  Landlord's  obligation  to repair or restore the
Premises  shall be  limited  to the extent of the  insurance  proceeds  actually
received by Landlord for the Casualty in question or the proceeds  that Landlord
would have received had Landlord carried the insurance required to be maintained
by Landlord under Section 11.2. If this Lease is terminated under the provisions
of this  Section 15,  Landlord  shall be  entitled  to the full  proceeds of the
insurance  policies  providing  coverage for all  alterations,  improvements and
betterments in the Premises (and, if Tenant has failed to maintain  insurance on
such items as required by this Lease,  Tenant shall pay Landlord an amount equal
to the proceeds Landlord would have received had Tenant maintained  insurance on
such items as required by this Lease).

                  15.5  Abatement of  Rent.  If  the  Premises  are  damaged  by
Casualty,  Basic  Rent and  Additional  Rent  for the  portion  of the  Premises
rendered  untenantable by the damage shall be abated on a reasonable  basis from
the date of damage until the completion of Landlord's repairs (or until the date
of termination of this

860209V.2 CHA792/16000                    15                       CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

Lease by  Landlord or Tenant as provided  above,  as the case may be),  unless a
Tenant  Party caused such damage,  in which case,  Tenant shall  continue to pay
Basic Rent and Additional Rent without abatement.

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

         17.      Events of Default.  Each of the following occurrences shall be
an "Event of Default":

                  17.1 Payment  Default.  Tenant's  failure to  pay  Rent within
five days after Landlord has delivered written notice to Tenant that the same is
due;  however,  an Event of Default shall occur hereunder without any obligation
of Landlord to give any notice if Tenant fails to pay Rent when due and,  during
the 12 month interval preceding such failure,  Landlord has given Tenant written
notice of failure to pay Rent on one or more occasions;

                  17.2  Abandonment.  Tenant (1)  abandons the  Premises  or any
substantial portion thereof or (2) vacates the Premises or a substantial portion
thereof without  providing written notice to Landlord at least ten business days
prior  to the date on which  Tenant  vacates  the  Premises  or any  substantial
portion thereof;

                  17.3  Estoppel; Subordination; Financial Reports. Tenant fails
to provide any estoppel certificate,  documentation  regarding the subordination
of this Lease or financial  reports after  Landlord's  written request  therefor
pursuant to Section 25.5, Section 12.1, and Section 25.19 respectively, and such
failure shall  continue for five days after  Landlord's  second  written  notice
thereof to Tenant;

                  17.4 Insurance.  Tenant  fails  to  procure and  maintain  the
insurance  policies and coverages required under Section 11.1 or Tenant fails to
deliver to Landlord (within two business days after Landlord's  demand therefor)
evidence of such  insurance  policies and  coverages as required  under  Section
11.1;

                  17.5 Mechanic's  Liens.  Tenant fails to  pay  and  release of
record,  or diligently  contest and bond around,  any mechanic's or construction
lien filed against the Premises or the Project for any work performed, materials
furnished, or obligation incurred by or at the request of a Tenant Party, within
the time and in the manner required by Section 8.4;

                  17.6 Other Defaults. Tenant's failure to perform, comply with,
or observe any other  agreement or obligation of Tenant under this Lease and the
continuance of such failure for a period of more than 30 days after Landlord has
delivered to Tenant written notice thereof;  however,  if such failure cannot be
cured  within  such  30-day  period  (thus  excluding,  for  example,   Tenant's
obligation  to provide  Landlord  evidence of Tenant's  insurance  coverage) and
Tenant  commences to cure such failure  within such 30-day period and thereafter
diligently  pursues such cure to  completion,  then such failure shall not be an
Event of Default unless it is not fully cured within an additional 30 days after
the expiration of the 30-day period; and

                  17.7 Insolvency. The filing of a petition by or against Tenant
(the term "Tenant"  shall  include,  for the purpose of this Section  17.7,  any
guarantor of Tenant's  obligations  hereunder)  (1) in any  bankruptcy  or other
insolvency proceeding;  (2) seeking any relief under any state or federal debtor
relief law;  (3) for the  appointment  of a  liquidator  or receiver  for all or
substantially  all of Tenant's  property or for Tenant's interest in this Lease;
(4) for the reorganization or modification of Tenant's capital structure; or (5)
in any assignment for the benefit of creditors  proceeding;  however,  if such a
petition is filed against Tenant, then such filing shall not be an

860209V.2 CHA792/16000                   16                        CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

Event of Default unless Tenant fails to have the  proceedings  initiated by such
petition dismissed within 90 days after the filing thereof.

         18.      Remedies. Upon any Event of Default, Landlord may, in addition
to all other  rights  and  remedies  afforded  Landlord  hereunder  or by law or
equity, take any one or more of the following actions:

                  18.1  Termination  of Lease.  Terminate  this Lease  by giving
Tenant written notice  thereof,  in which event Tenant shall pay to Landlord the
sum of (a) all Rent accrued hereunder  through the date of termination,  (b) all
amounts due under Section 19.1, and (c) an amount equal to (but in no event less
than zero) (1) the total Rent that  Tenant  would have been  required to pay for
the remainder of the Term  discounted to present value at a per annum rate equal
to the "Prime  Rate" as published  on the date this Lease is  terminated  by The
Wall Street Journal in its listing of "Money Rates" minus one percent, minus (2)
the then present  fair rental  value of the Premises for such period,  similarly
discounted;

                  18.2  Termination of  Possession.  Terminate Tenant's right to
possess the Premises  without  terminating  this Lease by giving  written notice
thereof to Tenant,  in which event Tenant shall pay to Landlord (a) all Rent and
other amounts  accrued  hereunder to the date of termination of possession,  (b)
all amounts due from time to time under Section 19.1, and (c) all Rent and other
net sums  required  hereunder to be paid by Tenant  during the  remainder of the
Term,  diminished  by any net  sums  thereafter  received  by  Landlord  through
reletting the Premises during such period, after deducting all costs incurred by
Landlord in reletting the  Premises.  If Landlord  elects to terminate  Tenant's
right to possession without  terminating this Lease, and to retake possession of
the Premises (and Landlord shall have no duty to make such  election),  Landlord
shall use  reasonable  efforts to relet the  Premises  as further  described  in
Section  19.4  below.  Landlord  shall not be  liable  for,  nor shall  Tenant's
obligations  hereunder be diminished because of, Landlord's failure to relet the
Premises or to collect rent due for such reletting.Tenant  shall not be entitled
to the  excess of any  consideration  obtained  by  reletting  over the Rent due
hereunder.  Reentry  by  Landlord  in the  Premises  shall not  affect  Tenant's
obligations hereunder for the unexpired Term; rather, Landlord may, from time to
time,  bring an action against Tenant to collect amounts due by Tenant,  without
the necessity of Landlord's  waiting  until the  expiration of the Term.  Unless
Landlord delivers written notice to Tenant expressly stating that it has elected
to terminate this Lease,  all actions taken by Landlord to dispossess or exclude
Tenant from the Premises shall be deemed to be taken under this Section 18.2. If
Landlord  elects to proceed under this Section 18.2, it may at any time elect to
terminate this Lease under Section 18.1;

                  18.3  Perform  Acts  on  Behalf  of  Tenant.  Perform  any act
Tenant is obligated to perform under the terms of this Lease (and enter upon the
Premises in connection  therewith if necessary) in Tenant's name and on Tenant's
behalf,  without  being  liable for any claim for damages  therefor,  and Tenant
shall reimburse  Landlord on demand for any expenses which Landlord may incur in
thus effecting compliance with Tenant's obligations under this Lease (including,
but not limited to, collection costs and legal expenses),  plus interest thereon
at the Default Rate;

                  18.4    Suspension of Services.  Suspend any services required
to be provided  by Landlord  hereunder  without  being  liable for any claim for
damages therefor; or

                  18.5 Alteration  of  Locks.   Additionally,  with  or  without
notice,  and to the extent  permitted by Law,  Landlord may alter locks or other
security  devices at the  Premises  to  deprive  Tenant of access  thereto,  and
Landlord  shall  not be  required  to  provide  a new key or right of  access to
Tenant.

         19.      Payment by Tenant; Non-Waiver; Cumulative Remedies; Mitigation
of Damage.

                  19.1  Payment by  Tenant.  Upon  any Event of Default,  Tenant
shall pay to Landlord all  amounts,  costs,  losses  and/or  expenses  incurred,
abated or foregone by Landlord (including court costs and reasonable  attorneys'
fees and  expenses) in (1) obtaining  possession of the Premises,  (2) removing,
storing  and/or  disposing  of Tenant's or any other  occupant's  property,  (3)
repairing,  restoring,  altering,  remodeling, or otherwise putting the Premises
into condition  acceptable to a new tenant, (4) if Tenant is dispossessed of the
Premises  and this  Lease is not  terminated,  reletting  all or any part of the
Premises (including brokerage commissions, cost of tenant finish work, and other
costs incidental to such reletting),  (5) performing Tenant's  obligations which
Tenant failed to perform,  (6) enforcing,  or advising  Landlord of, its rights,
remedies, and recourses arising out of the default, and (7)

860209V.2 CHA792/16000                 17                          CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

securing  this  Lease,   including  all  commissions,   allowances,   reasonable
attorneys'  fees, and if this Lease or any amendment  hereto contains any abated
Rent granted by Landlord as an  inducement or concession to secure this Lease or
amendment hereto, the full amount of all Rent so abated (and such abated amounts
shall be payable  immediately  by Tenant to Landlord,  without any obligation by
Landlord to provide written notice thereof to Tenant,  and Tenant's right to any
abated  rent  accruing   following  such  Event  of  Default  shall  immediately
terminate).  To the full extent permitted by law,  Landlord and Tenant agree the
federal and state courts of the state in which the  Premises  are located  shall
have  exclusive  jurisdiction  over any matter  relating to or arising from this
Lease and the parties' rights and obligations under this Lease.

                  19.2 No  Waiver.  Landlord's  acceptance  of Rent following an
Event of  Default  shall not waive  Landlord's  rights  regarding  such Event of
Default.  No waiver by Landlord of any  violation  or breach of any of the terms
contained herein shall waive Landlord's rights regarding any future violation of
such term.  Landlord's acceptance of any partial payment of Rent shall not waive
Landlord's  rights with regard to the remaining portion of the Rent that is due,
regardless of any endorsement or other statement on any instrument  delivered in
payment of Rent or any writing delivered in connection  therewith;  accordingly,
Landlord's  acceptance  of a partial  payment  of Rent shall not  constitute  an
accord and satisfaction of the full amount of the Rent that is due.

                  19.3  Cumulative   Remedies.  Any  and  all remedies set forth
in this Lease:  (1) shall be in addition to any and all other remedies  Landlord
may have at law or in equity,  (2) shall be  cumulative,  and (3) may be pursued
successively or  concurrently as Landlord may elect.  The exercise of any remedy
by Landlord  shall not be deemed an  election  of remedies or preclude  Landlord
from  exercising  any other remedies in the future.  Additionally,  Tenant shall
defend,  indemnify and hold harmless  Landlord,  Landlord's  Mortgagee and their
respective  representatives  and agents from and  against  all claims,  demands,
liabilities, causes of action, suits, judgments, damages and expenses (including
reasonable  attorneys'  fees)  arising  from  Tenant's  failure to  perform  its
obligations under this Lease.

                  19.4 Mitigation of Damage. The parties agree  any duty imposed
by Law on  Landlord  to mitigate  damages  after a default by Tenant  under this
Lease shall be satisfied in full if Landlord  uses  reasonable  efforts to lease
the Premises to another  tenant (a "Substitute  Tenant") in accordance  with the
following  criteria:  (1)  Landlord  shall  have no  obligation  to  solicit  or
entertain negotiations with any Substitute Tenant for the Premises until 60 days
following the date upon which Landlord  obtains full and complete  possession of
the Premises,  including the relinquishment by Tenant of any claim to possession
of the Premises by written  notice from Tenant to Landlord;  (2) Landlord  shall
not be obligated to lease or show the Premises on a priority  basis or offer the
Premises  to any  prospective  tenant when other space in the Project is or soon
will be available;  (3) Landlord shall not be obligated to lease the Premises to
a Substitute Tenant for less than the current fair market value of the Premises,
as determined by Landlord in its sole discretion, nor will Landlord be obligated
to enter into a new lease for the Premises under other terms and conditions that
are unacceptable to Landlord under Landlord's then-current leasing policies; (4)
Landlord shall not be obligated to enter into a lease with a Substitute  Tenant:
(A) whose use would violate any restriction,  covenant or requirement  contained
in the lease of another  tenant in the  Project;  (B) whose use would  adversely
affect the  reputation of the Project;  (C) whose use would require any addition
to or modification of the Premises or Project in order to comply with applicable
Law,  including  building  codes;  (D)  whose  Tangible  Net  Worth is less than
Tenant's  Tangible  Net  Worth as of the Lease  Date and who does not  have,  in
Landlord's sole opinion,  the  creditworthiness  to be an acceptable tenant; (E)
that is a  governmental  entity or as otherwise  prohibited  by Section 9 of the
Lease; or (F) that does not meet Landlord's  reasonable standards for tenants of
the Project or is otherwise  incompatible with the character of the occupancy of
the Project, as reasonably determined by Landlord; and (5) Landlord shall not be
required to expend any amount of money to alter,  remodel or otherwise  make the
Premises  suitable for use by a Substitute  Tenant  unless:  (A) Tenant pays any
such  amount to  Landlord  prior to  Landlord's  execution  of a lease with such
Substitute  Tenant (which payment shall not relieve Tenant of any amount it owes
Landlord as a result of Tenant's default under this Lease); or (B) Landlord,  in
Landlord's  sole  discretion,  determines  any such  expenditure  is financially
prudent in connection with entering into a lease with the Substitute Tenant.

         20.  Landlord's  Lien.  In addition to any  statutory landlord's  lien,

now or hereafter  enacted,  Tenant grants to Landlord,  to secure performance of
Tenant's  obligations  hereunder,  a security  interest  in all of the  property
situated in or upon,  or used in connection  with,  the Premises or the Project,
and all proceeds  thereof  (except  merchandise  sold in the ordinary  course of
business) (collectively, the "Collateral"), and the Collateral shall not be

860209V.2 CHA792/16000                 18                          CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

removed from the Premises or the Project  without the prior  written  consent of
Landlord  until  all  obligations  of  Tenant  have been  fully  performed.  The
Collateral includes specifically all furniture and all trade and other fixtures,
and inventory,  equipment, contract rights, accounts receivable and the proceeds
thereof.  For the  purposes  of this  Section 20,  there  shall be a  rebuttable
presumption that all property  located in the Premises is owned by Tenant.  Upon
the  occurrence  of an Event of Default,  Landlord may, in addition to all other
remedies, without notice or demand except as provided below, exercise the rights
afforded to a secured  party under the Uniform  Commercial  Code of the state in
which the  Premises  are located  (the  "UCC").  To the extent the UCC  requires
Landlord to give to Tenant  notice of any act or event and such notice cannot be
validly  waived before a default  occurs,  then five- days' prior written notice
thereof shall be reasonable notice of the act or event. In order to perfect such
security interest, Landlord may file any financing statement or other instrument
necessary at Tenant's  expense at the state and county Uniform  Commercial  Code
filing  offices.  Landlord  shall  subordinate  the  security  interest  in  the
Collateral  granted to Landlord under this Section 20, to Tenant's  primary line
of credit  provider so long as such credit provider is an  institutional  lender
unaffiliated  with Tenant,  and Landlord  shall,  at Tenant's  expense,  execute
Landlord's  standard  form  of  subordination  documentation  to  evidence  such
subordination;  provided,  however,  such  subordination  shall not apply to any
Collateral  paid for in whole or in part by Landlord.  Additionally,  Landlord's
security  interest in the Collateral is  subordinate  to any existing  financing
statements  listing Tenant as "Debtor" which are properly filed and in effect as
of the Lease Date.

         21.  Surrender of Premises.  No act  by   Landlord shall  be  deemed an
acceptance  of a  surrender  of the  Premises,  and no  agreement  to  accept  a
surrender of the  Premises  shall be valid unless it is in writing and signed by
Landlord.  At the  expiration or  termination of this Lease or Tenant's right to
possess  the  Premises,  Tenant  shall (a)  deliver  to  Landlord  the  Premises
broom-clean with all  improvements  located therein in good repair and condition
(except for condemnation  and Casualty damage not caused by Tenant,  as to which
Sections 14 and 15 shall control), free of any liens or encumbrances and free of
Hazardous  Materials  placed on the  Premises  during the Term;  (b)  deliver to
Landlord  all keys to the  Premises  and all access  cards to the  Project;  (c)
remove all unattached trade fixtures, furniture, and personal property placed in
the  Premises  or  elsewhere  in the  Project by a Tenant  Party and  unattached
equipment located in the Premises (but Tenant may not remove any such item which
was paid for, in whole or in part,  by Landlord  unless  Landlord  requires such
removal);  (d) remove any and all cabling  (including  conduit) installed in the
Premises  or  elsewhere  in the  Project  by or on  behalf  of a  Tenant  Party,
including  all  connections  for such  cabling,  at  Tenant's  sole  cost or, if
Landlord so elects,  Landlord may perform  such  removal at Tenant's  sole cost,
with the cost  thereof to be paid to  Landlord as Rent  (Landlord  will have the
right,  however, upon notice to Tenant, given prior to the expiration or earlier
termination  of the  Term,  to  require  Tenant to  abandon  and leave in place,
without  additional  payment to Tenant or credit  against Rent, any and all such
cabling [including conduit], whether located in the Premises or elsewhere in the
Project, and if Landlord so elects,  Tenant covenants that such cabling shall be
left in a neat and safe  condition in accordance  with the  requirements  of all
applicable Laws,  including the National Electric Code or any successor statute,
and shall be  terminated at both ends of a connector,  properly  labeled at each
end and in each  electrical  closet  and  junction  box);  and (e)  remove  such
alterations,  additions,  improvements,  and Tenant's Off-Premises  Equipment as
Landlord  may  require;  however,  Tenant  shall not be  required  to remove any
addition  or  improvement  to  the  Premises  or the  Project  if  Landlord  has
specifically agreed in writing that the improvement or addition in question need
not be  removed.  Tenant  shall  repair all damage  caused by the removal of the
items described above. If Tenant fails to remove any of the items required to be
removed by Tenant,  Landlord may, at Landlord's  option,  (1) deem such items to
have been  abandoned by Tenant,  the title  thereof  shall  immediately  pass to
Landlord  at no cost to  Landlord,  and such  items may be  appropriated,  sold,
stored, destroyed, or otherwise disposed of by Landlord without notice to Tenant
and without any obligation to account for such items; any such disposition shall
not be considered a strict foreclosure or other exercise of Landlord's rights in
respect of the security interest granted hereunder or otherwise, (2) remove such
items, perform any work required to be performed by Tenant hereunder, and repair
all damage caused by such work,  and Tenant shall  reimburse  Landlord on demand
for any expenses which Landlord may incur in effecting  compliance with Tenant's
obligations  hereunder  (including  collection costs and attorneys'  fees), plus
interest thereon at the Default Rate, or (3) elect any of the actions  described
in clauses (1) and (2) above as Landlord may elect in its sole  discretion.  The
provisions of this Section 21 shall survive the end of the Term.

         22.  Holding  Over.  If Tenant  fails to vacate the Premises at the end
of the Term, then Tenant shall be a tenant at sufferance and, in addition to all
other  damages and  remedies to which  Landlord may be entitled for such holding
over,  (a) Tenant shall pay, in addition to the other Rent,  Basic Rent equal to
the  greater of (1) 150% of the Rent  payable  during the last month of the Term
for the first 60 days, 200% thereafter, or (2) 125% of the prevailing

860209V.2 CHA792/16000                   19                        CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

rental rate in the Project for similar  space,  and (b) Tenant  shall  otherwise
continue to be subject to all of  Tenant's  obligations  under this  Lease.  The
provisions  of this  Section  22 shall not be deemed  to limit or  constitute  a
waiver of any other rights or remedies of Landlord provided herein or at law. If
Tenant fails to surrender  the Premises  upon the  termination  or expiration of
this Lease, in addition to any other liabilities to Landlord accruing therefrom,
Tenant shall  protect,  defend,  indemnify and hold  Landlord  harmless from all
loss, costs (including  reasonable attorneys' fees) and liability resulting from
such failure,  including any claims made by any  succeeding  tenant founded upon
such failure to surrender,  and any lost profits or other consequential  damages
to Landlord resulting therefrom.

         23.      Certain Rights Reserved by Landlord.  Landlord shall  have the
following rights:

                  23.1 Building Operations. To decorate and to make inspections,
repairs, alterations, additions, changes, or improvements, whether structural or
otherwise,  in and about the  Project,  or any part  thereof;  to enter upon the
Premises  (after  giving Tenant  reasonable  notice  thereof,  which may be oral
notice,  except in cases of real or apparent emergency,  in which case no notice
shall be required) and,  during the continuance of any such work, to temporarily
close  doors,  entryways,  public  space,  and  corridors  in the  Building;  to
interrupt or temporarily suspend Building services and facilities; to change the
name of the Building; and to change the arrangement and location of entrances or
passageways,  doors, and doorways,  corridors,  elevators, stairs, restrooms, or
other public parts of the Building;

                  23.2  Security.  To  take such reasonable measures as Landlord
deems  advisable for the security of the Building and its occupants;  evacuating
the Building for cause,  suspected  cause,  or for drill  purposes;  temporarily
denying access to the Building;  and closing the Building after normal  business
hours and on Sundays and holidays,  subject, however, to Tenant's right to enter
when the Building is closed after normal  business  hours under such  reasonable
regulations as Landlord may prescribe from time to time,  which may include,  by
way of  example  but not  limitation,  that  persons  entering  or  leaving  the
Building,  whether or not during normal business hours, identify themselves to a
security  officer by registration  or otherwise and that such persons  establish
their right to enter or leave the Building;

                  23.3    Prospective  Purchasers  and Lenders.  Upon reasonable
prior notice  (which  notice may be verbal) to Tenant,  to enter the Premises at
all reasonable hours to show the Premises to prospective  purchasers or lenders;
and

                  23.4 Prospective  Tenants. At   any  time  during  the last 12
months of the Term (or earlier if Tenant has  notified  Landlord in writing that
it does not desire to renew the Term) upon reasonable prior notice (which notice
may be verbal) to Tenant, or at any time following the occurrence of an Event of
Default,  to enter the Premises at all reasonable  hours to show the Premises to
prospective tenants.

In  exercising  the  foregoing  rights in this  Section 23,  Landlord  shall use
commercially  reasonable  efforts to minimize  any  interference  with  Tenant's
occupancy of the Premises.

         24. Substitution  Space.  Landlord may, at Landlord's expense, relocate
Tenant  within the Project to space  which is  comparable  in size,  utility and
condition  to  the  Premises.  If  Landlord  relocates  Tenant,  Landlord  shall
reimburse  Tenant for  Tenant's  reasonable  out-of-pocket  expenses  for moving
Tenant's furniture,  equipment, and supplies from the Premises to the relocation
space and for reprinting Tenant's stationery of the same quality and quantity as
Tenant's  stationery  supply on hand  immediately  before  Landlord's  notice to
Tenant of the  exercise of this  relocation  right.  Upon such  relocation,  the
relocation  space shall be deemed to be the Premises and the terms of this Lease
shall remain in full force and shall apply to the relocation space. No amendment
or other instrument shall be necessary to effectuate the relocation contemplated
by this  Section;  however,  if requested by Landlord,  Tenant shall  execute an
appropriate amendment document within ten business days after Landlord's written
request  therefor.  If Tenant fails to execute such relocation  amendment within
such time period,  or if Tenant fails to relocate  within the time period stated
in Landlord's  relocation  notice to Tenant (or, if such relocation space is not
available  on the  date  specified  in  Landlord's  relocation  notice,  as soon
thereafter as the relocation  space becomes  available and is tendered to Tenant
in the condition required by this Lease),  then, in addition to Landlord's other
remedies  set  forth in this  Lease,  at law  and/or  in  equity,  Landlord  may
terminate  this Lease by  notifying  Tenant in writing  thereof at least 60 days
prior to the termination date contained in Landlord's  termination  notice. Time
is of the essence with respect to Tenant's obligations under this Section.

860209V.2 CHA792/16000                20                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

         25.      Miscellaneous.

                  25.1   Landlord  Transfer.  Landlord  may transfer any portion
of the Project and any of its rights under this Lease.  If Landlord  assigns its
rights  under this Lease,  then  Landlord  shall  thereby be  released  from any
further obligations hereunder arising after the date of transfer,  provided that
the assignee assumes in writing  Landlord's  obligations  hereunder arising from
and after the transfer date.

                  25.2 Landlord's Liability.  The liability of Landlord (and its

successors,  partners,  shareholders  or  members)  to Tenant  (or any person or
entity  claiming by,  through or under Tenant) for any default by Landlord under
the  terms  of this  Lease  or any  matter  relating  to or  arising  out of the
occupancy  or use of the Premises  and/or  other areas of the Building  shall be
limited to Tenant's actual direct, but not  consequential,  damages therefor and
shall be  recoverable  only from the amount  which is equal to the lesser of (1)
the interest of Landlord in the Building,  or (2) the equity  interest  Landlord
would have in the Building if the Building were  encumbered by third-party  debt
in an  amount  equal to 80% of the  value  of the  Building  (as  such  value is
determined  by  Landlord).  Further,  Landlord  (and its  successors,  partners,
shareholders or members) shall not be personally liable for any deficiency,  and
in no event  shall any  liability  hereunder  extend  to any sales or  insurance
proceeds  received by Landlord (or its  successors,  partners,  shareholders  or
members)  in  connection  with  the  Project,  the  Building  or  the  Premises.
Additionally,  Tenant hereby waives its statutory  lien under Section  91.004 of
the Texas  Property  Code.  The  provisions  of this Section  shall  survive any
expiration or termination of this Lease.

                  25.3 Force Majeure.  Other than for Tenant's obligations under
this Lease that can be performed by the payment of money (e.g.,  payment of Rent
and  maintenance of insurance),  whenever a period of time is herein  prescribed
for action to be taken by either party hereto, such party shall not be liable or
responsible  for, and there shall be excluded from the  computation  of any such
period of time,  any delays due to strikes,  riots,  acts of God,  shortages  of
labor or  materials,  war,  terrorist  acts or  activities,  governmental  laws,
regulations,  or restrictions,  or any other causes of any kind whatsoever which
are beyond the control of such party.

                  25.4 Brokerage. Neither Landlord nor Tenant has dealt with any
broker or agent in connection  with the  negotiation or execution of this Lease,
other than  Stream  Realty  Brokerage  LLC and  Altschuler  and  Company,  whose
commissions shall be paid by Landlord  pursuant to separate written  agreements.
Tenant and Landlord shall each indemnify the other against all costs,  expenses,
attorneys' fees, liens and other liability for commissions or other compensation
claimed by any other broker or agent claiming the same by, through, or under the
indemnifying party.

                  25.5  Estoppel Certificates.  From time to time,  Tenant shall
furnish to any party designated by Landlord,  within ten days after Landlord has
made  a  request  therefor,  a  certificate  signed  by  Tenant  confirming  and
containing such factual  certifications and  representations as to this Lease as
Landlord  may  reasonably  request.  Unless  otherwise  required  by  Landlord's
Mortgagee or a  prospective  purchaser or mortgagee of the Project,  the initial
form of  estoppel  certificate  to be signed by  Tenant  is  attached  hereto as
Exhibit F; provided, however, such form may be amended or modified to the extent
any of the certifications or  representations  contained therein are not true as
of the date Tenant executes the same. If Tenant does not deliver to Landlord the
certificate  signed  by Tenant  within  such  required  time  period,  Landlord,
Landlord's   Mortgagee  and  any   prospective   purchaser  or  mortgagee,   may
conclusively  presume and rely upon the  following  facts:  (1) this Lease is in
full force and effect;  (2) the terms and provisions of this Lease have not been
changed  except as  otherwise  represented  by  Landlord;  (3) not more than one
monthly  installment  of Basic Rent and other charges have been paid in advance;
(4) there are no claims  against  Landlord  nor any defenses or rights of offset
against collection of Rent or other charges;  and (5) Landlord is not in default
under this Lease. In such event, Tenant shall be estopped from denying the truth
of the presumed facts.

                  25.6   Notices.   All notices  and  other communications given
pursuant  to this  Lease  shall be in  writing  and shall be (1) mailed by first
class,  United States Mail,  postage  prepaid,  certified,  with return  receipt
requested,  and addressed to the parties hereto at the address  specified in the
Basic Lease Information, (2) hand- delivered to the intended addressee, (3) sent
by a nationally  recognized  overnight courier service, or (4) sent by facsimile
transmission during normal business hours followed by a confirmatory letter sent
in another  manner  permitted  hereunder.  All notices  shall be effective  upon
delivery  (which,  in the case of delivery by facsimile  transmission,  shall be
deemed to occur at the time of delivery indicated on the electronic confirmation
of the facsimile so long as the confirmatory letter referenced above is sent) to
the address of the addressee (even if such

860209V.2 CHA792/16000               21                            CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

addressee  refuses  delivery  thereof).  The  parties  hereto may  change  their
addresses  by  giving  notice  thereof  to the  other in  conformity  with  this
provision.

                  25.7    Separability. If any clause or provision of this Lease
is illegal,  invalid,  or  unenforceable  under present or future laws, then the
remainder of this Lease shall not be affected thereby and in lieu of such clause
or provision, there shall be added as a part of this Lease a clause or provision
as  similar  in terms to such  illegal,  invalid,  or  unenforceable  clause  or
provision as may be possible and be legal, valid, and enforceable.

                  25.8   Amendments;   Binding   Effect;  No Electronic Records.
This Lease may not be amended except by instrument in writing signed by Landlord
and Tenant.  No  provision  of this Lease shall be deemed to have been waived by
Landlord  unless such waiver is in writing signed by Landlord,  and no custom or
practice which may evolve between the parties in the administration of the terms
hereof  shall  waive or  diminish  the  right of  Landlord  to  insist  upon the
performance by Tenant in strict  accordance with the terms hereof.  Landlord and
Tenant  hereby  agree  not  to  conduct  the   transactions  or   communications
contemplated by this Lease by electronic means, except by facsimile transmission
as  specifically  set  forth  in  Section  25.6  or  electronic   signatures  as
specifically  set forth in  Section  25.9;  nor shall the use of the  phrase "in
writing" or the word "written" be construed to include electronic communications
except by facsimile  transmissions as specifically set forth in Section 25.6 and
other electronic signatures as specifically set forth in Section 25.9. The terms
and  conditions  contained  in this Lease  shall  inure to the benefit of and be
binding  upon the  parties  hereto,  and upon  their  respective  successors  in
interest  and  legal  representatives,  except  as  otherwise  herein  expressly
provided.  This Lease is for the sole benefit of Landlord and Tenant, and, other
than  Landlord's  Mortgagee,  no  third  party  shall be  deemed  a third  party
beneficiary hereof.

                  25.9   Counterparts. This Lease (and amendments to this Lease)
may be executed in any number of counterparts,  each of which shall be deemed to
be an original,  and all of such counterparts shall constitute one document.  To
facilitate  execution of this Lease,  the parties may execute and  exchange,  by
telephone facsimile or electronic mail PDF, counterparts of the signature pages.
Signature pages may be detached from the  counterparts  and attached to a single
copy of this Lease to physically form one document.

                  25.10 Quiet  Enjoyment.  Provided Tenant has performed  all of
its obligations hereunder, Tenant shall peaceably and quietly hold and enjoy the
Premises for the Term, without hindrance from Landlord or any party claiming by,
through,  or  under  Landlord,  but not  otherwise,  subject  to the  terms  and
conditions  of this Lease and all matters of record as of the date of this Lease
which are applicable to the Premises.

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

                  25.12 No Offer. The submission of  this Lease  to Tenant shall
not be  construed  as an offer,  and Tenant shall not have any rights under this
Lease unless Landlord executes a copy of this Lease and delivers it to Tenant.

                  25.13   Entire  Agreement. This  Lease constitutes the  entire
agreement  between  Landlord and Tenant  regarding the subject matter hereof and
supersedes all oral statements and prior writings relating  thereto.  Except for
those set forth in this Lease,  no  representations,  warranties,  or agreements
have been made by Landlord or Tenant to the other with  respect to this Lease or
the  obligations  of  Landlord  or Tenant  in  connection  therewith.  Except as
otherwise  provided  herein,  no  subsequent  alteration,  amendment,  change or
addition to this Lease shall be binding unless in writing and signed by Landlord
and Tenant.  The normal rule of  construction  that any  ambiguities be resolved
against the drafting party shall not apply to the  interpretation  of this Lease
or any exhibits or amendments hereto.

                  25.14  Waiver of Jury Trial.  TO THE MAXIMUM EXTENT  PERMITTED
BY LAW, TENANT (ON BEHALF OF ITSELF AND ITS RESPECTIVE  SUCCESSORS,  ASSIGNS AND
SUBTENANTS) AND LANDLORD EACH, AFTER CONSULTATION WITH COUNSEL, KNOWINGLY WAIVES
ANY RIGHT TO TRIAL BY JURY IN ANY  LITIGATION OR TO HAVE A JURY  PARTICIPATE  IN
RESOLVING ANY DISPUTE  ARISING OUT OF OR WITH RESPECT TO THIS LEASE OR ANY OTHER
INSTRUMENT,

860209V.2 CHA792/16000                22                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

DOCUMENT  OR  AGREEMENT  EXECUTED OR  DELIVERED  IN  CONNECTION  HEREWITH OR THE
TRANSACTIONS RELATED HERETO.

                  25.15   Governing  Law.  This Lease shall be  governed  by and
construed  in  accordance  with the laws of the state in which the  Premises are
located.

                  25.16  Recording.  Tenant  shall not  record this Lease or any
memorandum of this Lease without the prior  written  consent of Landlord,  which
consent  may be  withheld  or  denied  in the sole and  absolute  discretion  of
Landlord,  and any  recordation  by Tenant  shall be a  material  breach of this
Lease.  Tenant  grants to  Landlord a power of  attorney to execute and record a
release  releasing  any such  recorded  instrument  of record that was  recorded
without the prior written consent of Landlord.

                  25.17  Water or Mold Notification. To the extent Tenant or its
agents or employees discover any water leakage, water damage or mold in or about
the  Premises or Project,  Tenant  shall  promptly  notify  Landlord  thereof in
writing.

                  25.18 Joint and Several Liability. If Tenant consists  of more
than one  party,  each such  party  shall be jointly  and  severally  liable for
Tenant's  obligations  under this Lease.  All unperformed  obligations of Tenant
hereunder  not fully  performed at the end of the Term shall  survive the end of
the Term, including payment obligations with respect to Rent and all obligations
concerning the condition and repair of the Premises.

                  25.19  Financial  Reports.  If  Tenant  is an  entity  that is
domiciled  in the United  States of  America,  and whose  securities  are funded
through a public securities  exchange subject to regulation by the United States
of America  publicly  traded over exchanges based in the United States and whose
financial  statements  are readily  available,  the terms of this Section  25.19
shall not apply. Otherwise, within 15 days after Landlord's request, Tenant will
furnish Tenant's most recent audited financial  statements  (including any notes
to them) to Landlord, or, if no such audited statements have been prepared, such
other  financial  statements (and notes to them) as may have been prepared by an
independent  certified public accountant or, failing those,  Tenant's internally
prepared financial statements. Tenant will discuss its financial statements with
Landlord and,  following the occurrence of an Event of Default  hereunder,  will
give Landlord  access to Tenant's books and records in order to enable  Landlord
to verify the  financial  statements.  Landlord  will not disclose any aspect of
Tenant's financial statements that Tenant designates to Landlord as confidential
except (1) to Landlord's  Mortgagee or  prospective  mortgagees or purchasers of
the  Building,  (2) in  litigation  between  Landlord and Tenant,  and/or (3) if
required  by Law or court  order.  Tenant  shall not be  required to deliver the
financial  statements  required  under this Section  25.19 more than once in any
12-month period unless requested by Landlord's  Mortgagee or a prospective buyer
or lender of the Building or an Event of Default occurs.

                  25.20  Landlord's Fees.  Whenever Tenant requests  Landlord to
take any action not required of Landlord  hereunder or give any consent required
or permitted  under this Lease,  Tenant will  reimburse  Landlord for Landlord's
reasonable,  out-of-pocket  costs  payable  to third  parties  and  incurred  by
Landlord in  reviewing  the  proposed  action or consent,  including  reasonable
engineers' or architects' fees and reasonable attorneys' fees (including amounts
allocated  by  Landlord  to  Landlord's  in-house  counsel  as well as fees  and
expenses  charged by outside counsel engaged by Landlord),  within 30 days after
Landlord's  delivery  to Tenant of a  statement  of such  costs.  Tenant will be
obligated to make such reimbursement without regard to whether Landlord consents
to any such proposed action. If Landlord  reasonably  believes the out-of-pocket
costs  payable to third  parties to be incurred by  Landlord  in  reviewing  the
proposed action or consent will exceed $2,500, Landlord will first notify Tenant
of such cost estimate before proceeding with such third-party expenses. Landlord
shall not have any  obligation to review such  proposed  action or consent until
Tenant has consented to such  additional  costs and expenses in writing,  and if
Tenant  fails to consent  to such  additional  costs and  expenses  within  five
business days after Landlord's  written  notification to Tenant thereof,  Tenant
shall be deemed to have rescinded its request for such action or consent.

                  25.21  Telecommunications. Tenant  and  its telecommunications
companies, including local exchange telecommunications companies and alternative
access vendor  services  companies,  shall have no right of access to and within
the Building, for the installation and operation of telecommunications  systems,
including voice,  video,  data,  Internet,  and any other services provided over
wire, fiber optic, microwave, wireless, and any other

860209V.2 CHA792/16000                 23                          CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

transmission  systems  ("Telecommunications  Services"),  for  part  or  all  of
Tenant's  telecommunications  within the  Building  and from the Building to any
other location unless  Landlord has previously  reviewed and approved all plans,
specifications  and  contracts  pertaining  to  telecommunication  service entry
points, and any documents to which Landlord is a party or which may encumber the
Project,  which  consent will not be  unreasonably  withheld.  All  providers of
Telecommunications  Services  shall be  required  to  comply  with the rules and
regulations  of  the  Project,  applicable  Laws  and  Landlord's  policies  and
practices for the Project,  and shall be required,  at Landlord's  election,  to
enter into a license  agreement  with Landlord to confirm and approve items such
as, without  limitation,  the proposed  location (and labeling  requirements) of
wiring,  cabling,  fiber lines,  points of demarcation,  entry into the Project,
insurance requirements and the like. Tenant acknowledges that Landlord shall not
be required to provide or arrange for any  Telecommunications  Services and that
Landlord  shall have no  liability to any Tenant  Party in  connection  with the
installation,  operation or  maintenance of  Telecommunications  Services or any
equipment or facilities  relating  thereto.  Tenant, at its cost and for its own
account,  shall be  solely  responsible  for  obtaining  all  Telecommunications
Services.  However,  nothing  in this  Section  25.21  shall  prohibit  Tenant's
employees  from  accessing  areas solely within the Premises that do not contain
any equipment serving other tenants of the Project or the Building's Systems.

                  25.22  Confidentiality. Tenant acknowledges that the terms and
conditions of this Lease are to remain confidential for Landlord's benefit,  and
may not be  disclosed by Tenant to anyone,  by any manner or means,  directly or
indirectly,  without  Landlord's  prior  written  consent;  however,  Tenant may
disclose the terms and conditions of this Lease to its  attorneys,  accountants,
employees and existing or prospective  financial partners, or if required by Law
or court order,  provided  all parties to whom Tenant is permitted  hereunder to
disclose  such terms and  conditions  are advised by Tenant of the  confidential
nature of such terms and  conditions  and agree to maintain the  confidentiality
thereof  (in each case,  prior to  disclosure).  Tenant  shall be liable for any
disclosures  made in  violation  of this  Section  by Tenant or by any entity or
individual to whom the terms of and  conditions of this Lease were  disclosed or
made available by Tenant.  The consent by Landlord to any disclosures  shall not
be deemed to be a waiver on the part of Landlord of any prohibition  against any
future disclosure.

                  25.23  Authority.  Tenant  (if  a   corporation,   partnership
or other business entity) hereby represents and warrants to Landlord that Tenant
is and will remain during the Term a duly formed and existing  entity  qualified
to do business in the state in which the Premises  are located,  that Tenant has
full right and authority to execute and deliver this Lease, and that each person
signing  on  behalf  of  Tenant  is  authorized  to do  so,  and  that  Tenant's
organizational  identification number assigned by the Florida Secretary of State
is P10000006385. Landlord hereby represents and warrants to Tenant that Landlord
is a duly formed and  existing  entity  qualified to do business in the state in
which the Premises are located,  that  Landlord has full right and  authority to
execute  and  deliver  this  Lease,  and that each  person  signing on behalf of
Landlord is authorized to do so.

                  25.24   Hazardous  Materials.  The  term "Hazardous Materials"
means any substance,  material, or waste which is now or hereafter classified or
considered  to be  hazardous,  toxic,  or  dangerous  under any Law  relating to
pollution or the protection or regulation of human health,  natural resources or
the environment,  or poses or threatens to pose a hazard to the health or safety
of  persons  on the  Premises  or in the  Project.  No Tenant  Party  shall use,
generate,  store or Release  (defined  below),  or permit  the use,  generation,
storage  or Release  of  Hazardous  Materials  on or about the  Premises  or the
Project except in a manner and quantity  necessary for the ordinary  performance
of Tenant's  business,  and then in compliance with all Laws and in a reasonable
and prudent  manner.  As used  herein,  "Release"  means  depositing,  spilling,
leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping,
leaching,  dumping or disposing.  If any Tenant Party  breaches its  obligations
under this  Section  25.24,  Landlord  may  immediately  take any and all action
reasonably  appropriate  to remedy the same,  including  taking all  appropriate
action to clean up or remediate  any  contamination  resulting  from such Tenant
Party's  use,  generation,  storage or disposal of Hazardous  Materials.  Tenant
shall defend,  indemnify, and hold harmless Landlord and its representatives and
agents  from and against any and all  claims,  demands,  liabilities,  causes of
action, suits, judgments,  damages and expenses (including reasonable attorneys'
fees and  cost of clean up and  remediation)  arising  from any  Tenant  Party's
failure to comply with the  provisions  of this Section  25.24.  This  indemnity
provision  is intended to allocate  responsibility  between  Landlord and Tenant
under  environmental  Laws and shall survive  termination  or expiration of this
Lease.

                  25.25  List of Exhibits. All exhibits and attachments attached
hereto are incorporated herein by this reference.

860209V.2 CHA792/16000              24                             CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

        Exhibit A - Outline of Premises
        Exhibit B - Description of the Land
        Exhibit C - Building Rules and Regulations
        Exhibit D - Tenant Finish-Work: AS-IS
        Exhibit E - Form of Confirmation of Commencement Date Letter
        Exhibit F - Form of Tenant Estoppel Certificate
        Exhibit G - Parking
        Exhibit H - Renewal Option

                  25.26 Determination of Charges. Landlord and Tenant agree that
each  provision  of this Lease for  determining  charges and amounts  payable by
Tenant  (including   provisions   regarding  Additional  Rent)  is  commercially
reasonable and, as to each such charge or amount, constitutes a statement of the
amount  of the  charge or a method by which  the  charge is to be  computed  for
purposes of Section 93.012 of the Texas Property Code.

                  25.27 Prohibited  Persons and  Transactions. Tenant represents
and warrants  that neither  Tenant nor any of its  affiliates,  nor any of their
respective partners,  members,  shareholders or other equity owners, and none of
their respective employees,  officers, directors,  representatives or agents is,
nor will they become,  a person or entity with whom U.S. persons or entities are
restricted from doing business under regulations of the Office of Foreign Assets
Control  ("OFAC") of the  Department of the Treasury  (including  those named on
OFAC's  Specially  Designated  Nationals and Blocked  Persons List) or under any
statute,  executive  order  (including the September 24, 2001,  Executive  Order
Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten
to Commit, or Support  Terrorism),  or other governmental  action and is not and
will not  Transfer  this  Lease to,  contract  with or  otherwise  engage in any
dealings  or  transactions  or be  otherwise  associated  with such  persons  or
entities.

                  25.28  Waiver of Consumer Rights. Tenant hereby waives all its
rights under the Texas  Deceptive  Trade  Practices - Consumer  Protection  Act,
Section 17.41 et seq. of the Texas  Business and Commerce Code, a law that gives
consumers special rights and protections. After consultation with an attorney of
Tenant's own selection, Tenant voluntarily adopts this waiver.

                  25.29    Building  Renovations. It is specifically  understood
and agreed that  Landlord has no  obligation  and has made no promises to alter,
remodel, improve,  renovate, repair, or decorate the Premises, the Building, the
Project or any part thereof and that no representations respecting the condition
of the  Premises,  the  Building  or the  Project  have been made by Landlord to
Tenant  except  as  specifically  set  forth  herein.   However,  Tenant  hereby
acknowledges  that  Landlord  may,  at its  sole  discretion,  during  the  Term
renovate,  improve,  alter,  or modify  (collectively,  the  "Renovations")  the
Project and the Building. Tenant hereby agrees that such Renovations shall in no
way  constitute  a  constructive  eviction of Tenant nor  entitle  Tenant to any
abatement of Rent. Landlord shall have no responsibility and shall not be liable
to Tenant for any injury to or interference  with Tenant's business arising from
the  Renovations,  nor shall Tenant be entitled to any  compensation  or damages
from Landlord for loss of the use of the whole or any part of the Premises or of
Tenant's  personal property or improvements  resulting from the Renovations,  or
for any inconvenience or annoyance occasioned by such Renovations.

                  25.30 Common  Area  Amenities.  In  addition to the  Premises,
Landlord  leases to Tenant,  and Tenant leases from Landlord any portions of the
Project  that may be, from time to time,  designated  by  Landlord  for the use,
enjoyment and benefit of all tenants of the Project and their  employees,  which
may include,  without  limitation,  a physical  fitness  center,  a deli,  and a
conference  center  (collectively,   the  "Common  Area  Amenities"),  it  being
expressly  understood and agreed that Landlord shall not be obligated to provide
any Common Area Amenities,  unless otherwise  specifically provided elsewhere in
this Lease.  As of the date hereof,  none of the Common Area Amenities have been
made  available  to  Tenant.  From  time to  time,  as each of the  Common  Area
Amenities are made  available to Tenant,  if any, the number of rentable  square
feet in the Premises shall increase to reflect Tenant's  Proportionate  Share of
the rentable  square feet  attributable  to the Common Area  Amenities  that are
available at such time. In furtherance  of the  foregoing,  Landlord may, at its
discretion,  require Tenant and its employees, officers, directors, and partners
to execute certain other documents,  including,  without  limitation,  a license
agreement and a waiver of claims and indemnity agreement, prior to granting such
individuals access to certain of the Common Area Amenities.

860209V.2 CHA792/16000                25                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                  25.31 UBTI.  Landlord  and Tenant agree  that  Rent payable by
Tenant to  Landlord  shall  qualify  as "rents  from real  property"  within the
meaning of both Sections  512(b)(3)  and 856(d) of the Internal  Revenue Code of
1986, as amended (the "Code") and the U.S.  Department  of Treasury  Regulations
promulgated  thereunder (the "Regulations").  In the event that Landlord, in its
sole and absolute discretion, determines that there is any risk that all or part
of any Rent shall not qualify as "rents from real  property" for the purposes of
Sections  512(b)(3)  or  856(d)  of the  Code  and the  Regulations  promulgated
thereunder,  Tenant agrees (1) to cooperate  with Landlord by entering into such
amendment  or  amendments  as Landlord  deems  necessary to qualify all Rents as
"rents  from real  property,"  and (2) to permit an  assignment  of this  Lease;
provided,  however, that any adjustments required pursuant to this Section 25.31
shall be made so as to produce the equivalent  Rent (in economic  terms) payable
prior to such adjustment.

                  25.32 Cross  Default.  A default or event  of  default (beyond
any applicable notice, grace and cure periods) under any other written agreement
between  Landlord and Tenant  shall  constitute  an Event of Default  under this
Lease,  and any Event of Default under this Lease shall  constitute a default or
event of default under such other written  agreement between Landlord and Tenant
(without any  obligation to give Tenant any notice or opportunity to cure period
thereunder).

                  25.33 Reserved Rights. This Lease does not grant any rights to
light  or  air  over  or  about  the  Project.  Landlord  excepts  and  reserves
exclusively  for itself the use of: (1) roofs,  (2)  telephone,  electrical  and
janitorial closets,  (3) equipment rooms,  Building risers or similar areas that
are used by Landlord for the provision of Building  services,  (4) rights to the
land and improvements below the floor of the Premises,  (5) the improvements and
air rights  above the  ceiling of the  Premises,  (6) the  improvements  and air
rights  outside the  demising  walls of the  Premises,  (7) the areas within the
Premises  used for the  installation  of utility  lines and other  installations
serving occupants of the Property,  and (8) any other areas designated from time
to time by Landlord as service  areas of the Project.  Tenant shall not have the
right  to  install  or  operate  any  equipment   producing  radio  frequencies,
electrical or electromagnetic  output or other signals, noise or emissions in or
from the Project  without the prior written  consent of Landlord.  To the extent
permitted by applicable Law, Landlord reserves the right to restrict and control
the use of such equipment.

860209V.2 CHA792/16000                26                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

LANDLORD AND TENANT  EXPRESSLY  DISCLAIM ANY IMPLIED  WARRANTY THAT THE PREMISES
ARE SUITABLE FOR TENANT'S INTENDED COMMERCIAL  PURPOSE,  AND TENANT'S OBLIGATION
TO PAY RENT HEREUNDER IS NOT DEPENDENT UPON THE CONDITION OF THE PREMISES OR THE
PERFORMANCE BY LANDLORD OF ITS OBLIGATIONS  HEREUNDER,  AND, EXCEPT AS OTHERWISE
EXPRESSLY  PROVIDED  HEREIN,  TENANT  SHALL  CONTINUE  TO PAY THE RENT,  WITHOUT
ABATEMENT,  DEMAND, SETOFF OR DEDUCTION,  NOTWITHSTANDING ANY BREACH BY LANDLORD
OF ITS DUTIES OR OBLIGATIONS HEREUNDER,  WHETHER EXPRESS OR IMPLIED.  NOTHING IN
THIS PARAGRAPH  SHALL BE CONSTRUED TO DIMINISH THE  OBLIGATIONS OF LANDLORD THAT
ARE EXPRESSLY SET FORTH ELSEWHERE IN THIS LEASE.

This  Lease is  executed  as of the Lease Date (as  defined  in the Basic  Lease
Information).

LANDLORD:                        CHATEAU PLAZA HOLDINGS, L.P., a Delaware
                                 limited partnership
                                 By: Chateau Plaza Investors LLC, a Delaware
                                 limited liability
                                     company, its general partner
                                     By: JPMorgan Investment Management, Inc., a
                                     Delaware
                                          corporation, its manager

                                          By:
                                              ----------------------------------
                                          Name:
                                                --------------------------------
                                          Title:
                                                 -------------------------------

TENANT:                          RED MOUNTAIN RESOURCES, INC., a Florida
                                 corporation

                                 By:
                                    --------------------------------------------
                                 Name:
                                      ------------------------------------------
                                 Title:
                                       -----------------------------------------

860209V.2 CHA792/16000              27                             CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT A

                               OUTLINE OF PREMISES

860209V.2 CHA792/16000               A-1                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT B

                             DESCRIPTION OF THE LAND

BEING all of Lot 1, Block 2/954 of CHATEAU  PLAZA  ADDITION,  an addition to the
City of Dallas,  Dallas County,  Texas according to the plat thereof recorded in
Volume  85012,  Page 3579 of the Deed Records of Dallas  County,  Texas and also
being that certain tract described in deed to B.C.I. Associates, a Georgia joint
venture  recorded  in  Volume  87145,  Page 3771 of the Deed  Records  of Dallas
County, Texas and being more particularly described as follows:

BEGINNING at a found PK nail at the intersection of the north  right-of-way line
of Fairmont  Street,  (50 feet wide  R.O.W.) and the west  right-of-way  line of
McKinney Avenue (63 feet wide R.O.W.) for the most southerly  corner of said Lot
1;

THENCE, with the north right of way line of Fairmont Street, North 45 degrees 39
minutes 49 seconds  West,  194.60  feet  (North 45 degrees 40 minutes 10 seconds
West,  a distance of 194.59  feet - Deed) to a "x" cut in concrete  found at the
intersection  of the north  right-of-way  line of  Fairmont  Street and the east
right-of-way line of Howland Street (20 foot wide R.O.W.);

THENCE,  with the east right-of-way line of Howland Street,  North 12 degrees 06
minutes 29 seconds  East,  233.95  feet  (North 12 degrees 07 minutes 10 seconds
East, a distance of 233.97 feet- Deed) to a "x" cut in concrete set for the most
southwesterly  corner of a tract of land  described  in deed to McKinney  Square
Partnership  recorded in Volume  79062,  Page 2322 of the Deed Records of Dallas
County, Texas;

THENCE,  with the south line of said McKinney Square Partnership tract, South 59
degrees 07 minutes 18 seconds East,  181.27 feet (South 59 degrees 07 minutes 45
seconds  East,  181.21  feet-  Deed)  to a 5/8 inch  iron rod  found in the west
right-of-way line of McKinney Avenue;

THENCE, with the west right-of-way line of McKinney Avenue,  South 13 degrees 32
minutes 40 seconds West,  279.49 feet (279.53-  Deed) to the POINT OF BEGINNING;
and containing 43,430 square feet or 0.9970 acre of land, more or less.

And also sometimes described as:

BEING all of Lot 1, Block 2/954 of CHATEAU  PLAZA  ADDITION,  an addition to the
City of Dallas,  Dallas County,  Texas according to the plat thereof recorded in
Volume  85012,  Page 3579 of the Deed Records of Dallas  County,  Texas and also
being that certain tract described in deed to B.C.I. Associates, a Georgia joint
venture  recorded  in  Volume  87145,  Page 3771 of the Deed  Records  of Dallas
County, Texas and being more particularly described as follows:

BEGINNING at a "+" cut in brick at the  intersection  of the north  right-of-way
line of  Fairmont  Street,  (50 feet  wide)  and the west  right-of-way  line of
McKinney Avenue (63 feet wide) for the most southerly corner of said Lot 1;

THENCE, with the north right of way line of Fairmont Street, North 45 degrees 40
minutes 10 seconds  West,  a distance  of 194.59  feet to a "+" cut in  concrete
found at the intersection of the aid north  right-of-way line of Fairmont Street
and the east right-of-way line of Howland Street (20 feet wide);

THENCE,  with the east right-of-way line of Howland Street,  North 12 degrees 07
minutes 10 seconds  East, a distance of 233.97 feet to a "+" cut in concrete set
for the  most  southwesterly  corner  of a tract  of land  described  in deed to
McKinney  Square  Partnership  recorded in Volume  79062,  Page 2322 of the Deed
Records of Dallas County, Texas;

THENCE,  with the south line of said McKinney Square Partnership tract, South 59
degrees 07 minutes 45 seconds East,  181.21 feet to a 5/8 inch iron rod found in
the west right-of-way line of McKinney Avenue;

860209V.2 CHA792/16000               B-1                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

THENCE, with the west right-of-way line of McKinney Avenue,  South 13 degrees 32
minutes 40 seconds West,  279.53 feet to the POINT OF BEGINNING;  and containing
43,437 square feet or 0.9972 acre of land, more or less.

Together with  abutter's  rights of access to and from  physically  open streets
known as McKinney Avenue, Fairmont Street and Howland Street, also together with
the improvements thereon known locally as 2515 McKinney Avenue,  Dallas,  Dallas
County, Texas.

860209V.2 CHA792/16000                  B-2                        CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT C

                         BUILDING RULES AND REGULATIONS

     The  following  rules and  regulations  shall  apply to the  Premises,  the
Building,  any  parking  garage  or other  parking  lot or  facility  associated
therewith, and the appurtenances thereto:

     1. Sidewalks,  doorways,  vestibules,  halls, stairways,  and other similar
areas  shall not be  obstructed  by tenants  or used by any tenant for  purposes
other than ingress and egress to and from their  respective  leased premises and
for going from one to another part of the Building. The halls, passages,  exits,
entrances,  elevators,  stairways, balconies and roof are not for the use of the
general public and Landlord shall, in all cases, retain the right to control and
prevent  access  thereto  by all  persons  whose  presence  in the  judgment  of
Landlord,  reasonably exercised,  shall be prejudicial to the safety, character,
reputation and interests of the Project.  No Tenant Party shall go upon the roof
of the Project.

     2. Plumbing,  fixtures and  appliances  shall be used only for the purposes
for which designed, and no sweepings, rubbish, rags or other unsuitable material
shall be thrown or deposited  therein.  Damage resulting to any such fixtures or
appliances from misuse by a tenant or its agents,  employees or invitees,  shall
be paid by such tenant.

     3. No signs,  advertisements  or  notices  (other  than  those that are not
visible  outside the Premises)  shall be painted or affixed on or to any windows
or doors or other part of the  Building  without  the prior  written  consent of
Landlord.  No nails,  hooks or screws  (other than those which are  necessary to
hang  paintings,  prints,  pictures,  or other  similar  items on the  Premises'
interior  walls) shall be driven or inserted in any part of the Building  except
by Building maintenance personnel.  No curtains or other window treatments shall
be placed between the glass and the Building standard window treatments.

     4.  Landlord  shall  provide  all door locks at the entry of each  tenant's
leased  premises,  at the cost of such  tenant,  and no tenant  shall  place any
additional door locks in its leased premises  without  Landlord's  prior written
consent.  Landlord  shall furnish to each tenant a reasonable  number of keys to
such tenant's leased premises, at such tenant's cost, and no tenant shall make a
duplicate thereof.  Replacement keys shall be provided on a reasonable basis and
at Tenant's cost.

     5. Movement in or out of the Building of furniture or office equipment,  or
dispatch or receipt by tenants of any bulky  material,  merchandise or materials
which  require use of elevators or stairways,  or movement  through the Building
entrances or lobby shall be conducted under Landlord's supervision at such times
and in such a manner as Landlord may reasonably require. Each tenant assumes all
risks of and shall be liable  for all  damage to  articles  moved and  injury to
persons or public engaged or not engaged in such movement,  including equipment,
property and  personnel of Landlord if damaged or injured as a result of acts in
connection with carrying out this service for such tenant.

     6. Landlord may prescribe  weight  limitations  and determine the locations
for safes and other heavy equipment or items, which shall in all cases be placed
in the Building so as to  distribute  weight in a manner  acceptable to Landlord
which may include the use of such  supporting  devices as Landlord  may require.
All  damages  to the  Building  caused by the  installation  or  removal  of any
property  of a tenant,  or done by a tenant's  property  while in the  Building,
shall be repaired at the expense of such tenant.

     7. Corridor doors, when not in use, shall be kept closed.  Nothing shall be
swept or thrown into the  corridors,  halls,  elevator  shafts or stairways.  No
bicycles, birds or animals (other than seeing-eye dogs) shall be brought into or
kept in, on or about any tenant's  leased  premises.  No portion of any tenant's
leased  premises  shall at any time be used or  occupied  as sleeping or lodging
quarters.

     8. Tenant shall cooperate with  Landlord's  employees in keeping its leased
premises neat and clean.  Tenants shall not employ any person for the purpose of
such cleaning other than the Building's cleaning and maintenance personnel.

860209V.2 CHA792/16000                 C-1                         CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

     9. To ensure orderly  operation of the Building,  no ice,  mineral or other
water, towels, newspapers,  etc. shall be delivered to any leased area except by
persons approved by Landlord.

     10.   Tenant   shall  not  make  or  permit  any   vibration  or  improper,
objectionable  or  unpleasant  noises  or odors  in the  Building  or  otherwise
interfere in any way with other tenants or persons having business with them.

     11. No  machinery  or  appliances  of any kind (other  than  normal  office
equipment and normal break room  appliances)  shall be operated by any tenant on
its leased area without  Landlord's prior written consent,  nor shall any tenant
use or keep in the Building any flammable or explosive fluid or substance (other
than typical office supplies [e.g.,  photocopier  toner] used in compliance with
all Laws).

     12. Landlord will not be responsible for lost or stolen personal  property,
money or  jewelry  from  tenant's  leased  premises  or public  or common  areas
regardless of whether such loss occurs when the area is locked  against entry or
not.

     13. No vending or dispensing  machines of any kind may be maintained in any
leased premises without the prior written permission of Landlord.

     14.  Tenant  shall not  conduct any  activity  on or about the  Premises or
Building which will draw pickets, demonstrators, or the like.

     15. All vehicles are to be currently licensed, in good operating condition,
parked for business purposes having to do with Tenant's business operated in the
Premises, parked within designated parking spaces, one vehicle to each space. No
vehicle shall be parked as a "billboard" vehicle in the parking lot. Any vehicle
parked improperly may be towed away. Tenant, Tenant's agents, employees, vendors
and  customers  who do not  operate or park their  vehicles  as  required  shall
subject  the  vehicle  to being  towed at the  expense  of the owner or  driver.
Landlord  may  place a "boot" on the  vehicle  to  immobilize  it and may levy a
charge of $50.00 to remove the "boot."  Tenant  shall  indemnify,  hold and save
harmless  Landlord of any  liability  arising  from the towing or booting of any
vehicles belonging to a Tenant Party.

     16. No tenant may enter  into phone  rooms,  electrical  rooms,  mechanical
rooms, or other service areas of the Building unless  accompanied by Landlord or
the Building manager.

     17.  Tenant will not permit any Tenant  Party to bring onto the Project any
handgun,  firearm  or other  weapons  of any  kind,  illegal  drugs  or,  unless
expressly permitted by Landlord in writing, alcoholic beverages.

     18.  Tenant  shall not permit any Tenant  Party to smoke in the Premises or
anywhere  else on the Project,  except in any  Landlord-designated  smoking area
outside the Building.  Tenant shall  cooperate  with Landlord in enforcing  this
prohibition  and use its best efforts in  supervising  each Tenant Party in this
regard.

     19.  Tenant  shall not allow any Tenant  Party to use any type of  portable
space heater in the Premises or the Building.

     20. Only artificial holiday  decorations may be placed in the Premises,  no
live or cut  trees or other  real  holiday  greenery  may be  maintained  in the
Premises or the Building.

     21. Tenant shall not park or operate any  semi-trucks or  semi-trailers  in
the parking areas associated with the Building.

     22. Tenant shall cooperate fully with Landlord to assure the most effective
operation of the Premises or the  Project's  heating and air  conditioning,  and
shall  refrain  from  attempting  to  adjust  any  controls,   other  than  room
thermostats  installed for Tenant's use. Tenant shall keep corridor doors closed
and shall turn off all lights before leaving the Project at the end of the day.

860209V.2 CHA792/16000                  C-2                        CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

     23. Without the prior written consent of Landlord, Tenant shall not use the
name of the  Project or any  picture of the Project in  connection  with,  or in
promoting or  advertising  the business of,  Tenant,  except  Tenant may use the
address of the Project as the address of its business.

     24. Tenant shall not exhibit,  sell or offer for sale,  rent or exchange in
the  Premises  or at the Project  any  article,  thing or service to the general
public or anyone other than Tenant's employees without the prior written consent
of Landlord.

860209V.2 CHA792/16000                C-3                          CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT D

                            TENANT FINISH-WORK: AS-IS

Tenant  hereby  accepts the Premises in their  "AS-IS"  condition,  and Landlord
shall have no  obligation to perform any work therein  (including  demolition of
any improvements  existing therein or construction of any tenant  finish-work or
other improvements  therein),  and shall not be obligated to reimburse Tenant or
provide an allowance for any costs related to the demolition or  construction of
improvements  therein.  Before  Tenant may occupy the  Premises  to conduct  its
business therein, Tenant shall, at its expense, obtain and deliver to Landlord a
certificate of occupancy  from the  appropriate  governmental  authority for the
Premises.

860209V.2 CHA792/16000                  D-1                        CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT E

                        CONFIRMATION OF COMMENCEMENT DATE

                             _________________, 2011

Red Mountain Resources, Inc.
2515 McKinney Avenue, Suite 900
Dallas, Texas 75201

         Re:   Lease Agreement (the "Lease") dated May 23, 2011, between CHATEAU
               PLAZA   HOLDINGS,    L.P.,   a   Delaware   limited   partnership
               ("Landlord"),   and  RED  MOUNTAIN  RESOURCES,  INC.,  a  Florida
               corporation  ("Tenant").  Capitalized  terms used  herein but not
               defined  shall  be given  the  meanings  assigned  to them in the
               Lease.

Ladies and Gentlemen:

Landlord and Tenant agree as follows:

     1.  Condition of Premises.  Tenant has accepted  possession of the Premises
pursuant to the Lease. Any improvements required by the terms of the Lease to be
made by Landlord have been  completed to the full and complete  satisfaction  of
Tenant in all  respects,  and Landlord has fulfilled all of its duties under the
Lease with  respect to such initial  tenant  improvements.  Furthermore,  Tenant
acknowledges that the Premises are suitable for the Permitted Use.

     2.   Commencement   Date.   The   Commencement   Date  of  the   Lease   is
_______________, 2011.

     3. Expiration  Date. The Term is scheduled to expire on September 30, 2016,
which is the last day of the 64th full calendar month following the Commencement
Date.

     4. Contact Person. Tenant's contact person in the Premises is:

                Red Mountain Resources, Inc.
                2515 McKinney Avenue, Suite 900
                Dallas, Texas 75201
                Attention:
                          -------------------------------
                Telephone:  ___.___.____
                Facsimile:  ___.___.____

     5. Ratification.  Tenant hereby ratifies and confirms its obligations under
the Lease,  and  represents  and  warrants to  Landlord  that it has no defenses
thereto. Additionally, Tenant further confirms and ratifies that, as of the date
hereof,  (a) the Lease is and  remains  in good  standing  and in full force and
effect,  and (b) Tenant  has no  claims,  counterclaims,  set-offs  or  defenses
against  Landlord  arising  out of the Lease or in any way  relating  thereto or
arising out of any other transaction between Landlord and Tenant.

     6. Binding  Effect;  Governing Law.  Except as modified  hereby,  the Lease
shall remain in full effect and this letter  shall be binding upon  Landlord and
Tenant and their respective  successors and assigns. If any inconsistency exists
or arises between the terms of this letter and the terms of the Lease, the terms
of this letter shall  prevail.  This letter shall be governed by the laws of the
state in which the Premises are located.

860209V.2 CHA792/16000                E-1                          CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

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

                               Sincerely,

                               CHATEAU PLAZA HOLDINGS, L.P., a Delaware
                               limited partnership
                               By: Chateau Plaza Investors LLC, Delaware
                               limited liability
                                   company, its general partner
                                   By: JPMorgan Investment Management, Inc., a
                                   Delaware
                                        corporation, its manager, on behalf of
                                   Landlord

                                        By:
                                        Name:
                                        Title:

Agreed and accepted:

RED MOUNTAIN RESOURCES, INC., a
Florida corporation

By:
   -----------------------------
Name:
     ---------------------------
Title:
      --------------------------

860209V.2 CHA792/16000               E-2                           CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT F

                       FORM OF TENANT ESTOPPEL CERTIFICATE

     The  undersigned  is the Tenant  under the Lease  (defined  below)  between
_______________________, a ___________________, as Landlord, and the undersigned
as Tenant,  for the Premises on the __________  floor(s) of the office  building
located   at   _____________________,   __________   and   commonly   known   as
_______________________, and hereby certifies as follows:

     1.  The  Lease  consists  of  the  original  Lease  Agreement  dated  as of
__________________,      20___,      between     Tenant     and      Landlord[`s
predecessor-in-interest]  and the following amendments or modifications  thereto
(if none, please state "none"):

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

The documents  listed above are herein  collectively  referred to as the "Lease"
and  represent  the entire  agreement  between the parties  with  respect to the
Premises.  All capitalized  terms used herein but not defined shall be given the
meaning assigned to them in the Lease.

     2. The  Lease  is in full  force  and  effect  and has not  been  modified,
supplemented or amended in any way except as provided in Section 1 above.

     3. The  Term  commenced  on  _______________________,  20___,  and the Term
expires, excluding any renewal options, on  _______________________,  20___, and
Tenant has no option to purchase all or any part of the Premises or the Building
or,  except as  expressly  set forth in the Lease,  any option to  terminate  or
cancel the Lease.

     4. Tenant currently occupies the Premises described in the Lease and Tenant
has not transferred, assigned, or sublet any portion of the Premises nor entered
into any license or concession agreements with respect thereto except as follows
(if none, please state "none"):

--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------

     5. All monthly  installments  of Basic Rent,  all  Additional  Rent and all
monthly  installments  of  estimated  Additional  Rent  have  been paid when due
through  ______________.  The  current  monthly  installment  of  Basic  Rent is
$___________.

     6. All conditions of the Lease to be performed by Landlord necessary to the
enforceability  of the Lease have been  satisfied and Landlord is not in default
thereunder.  In  addition,  Tenant  has not  delivered  any  notice to  Landlord
regarding a default by Landlord thereunder.

     7. As of the date hereof, there are no existing defenses or offsets, or, to
Tenant's  knowledge,  claims or any basis for a claim,  that  Tenant has against
Landlord  and no event has occurred and no  condition  exists,  which,  with the
giving of notice or the  passage of time,  or both,  will  constitute  a default
under the Lease.

     8. No rental  has been paid more than 30 days in  advance  and no  security
deposit has been delivered to Landlord except as provided in the Lease.

     9. If Tenant is a corporation,  partnership or other business entity,  each
individual  executing  this  Estoppel  Certificate  on behalf  of Tenant  hereby
represents  and warrants  that Tenant is and will remain  during the Term a duly
formed and  existing  entity  qualified to do business in the state in which the
Premises are located and

860209V.2 CHA792/16000                 F-1                         CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

that Tenant has full right and  authority to execute and deliver  this  Estoppel
Certificate and that each person signing on behalf of Tenant is authorized to do
so.

     10. There are no actions  pending  against  Tenant under any  bankruptcy or
similar laws of the United States or any state.

     11. Other than in compliance with all applicable laws and incidental to the
ordinary  course of the use of the  Premises,  Tenant has not used or stored any
hazardous substances in the Premises.

     12. All tenant improvement work to be performed by Landlord under the Lease
has been completed in accordance  with the Lease and has been accepted by Tenant
and  all  reimbursements  and  allowances  due to  Tenant  under  the  Lease  in
connection with any tenant improvement work have been paid in full.

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

         Executed as of _______________________, 20_.

TENANT:                    ______________________________, a ___________________

                                         By:
                                         Name:
                                         Title:

860209V.2 CHA792/16000                   F-2                       CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT G
                                     PARKING

     Tenant  shall be  provided a total of 12 parking  access  cards  permitting
Tenant to use up to 10 unreserved parking spaces, and up to two reserved parking
spaces,  in the parking  facilities  associated  with the Building (the "Parking
Area")  subject to such terms,  conditions  and  regulations as are from time to
time  applicable  to patrons of the Parking Area.  Regardless of whether  Tenant
elects  to  use  such   parking   spaces,   Tenant   shall   pay  to   Landlord,
contemporaneously  with the  payment  of Basic  Rent,  parking  rent  (plus  all
applicable  taxes)  during the initial Term equal to the greater of (a) the rate
then  established by Landlord for reserved and  unreserved  parking  spaces,  as
applicable, in the Parking Area or (b) the following rates for each such parking
access card:

                                                      Monthly Rent per
               Monthly Rent per Unreserved         Reserved Parking Access
                    Parking Access Card                      Card

                            $45.00                           $75.00

     Notwithstanding  the foregoing,  Tenant's obligation to pay the above rates
for such  reserved and  unreserved  parking  spaces shall be abated from June 1,
2011 through September 30, 2011. Commencing on October 1, 2011, Tenant shall pay
the above rates for such parking spaces.  Further,  Tenant has elected to permit
one of its allocated  unreserved  parking spaces to be recaptured by Landlord at
any  time  during  the Term by  providing  Tenant  written  notice  thereof.  In
consideration  of such  election,  such parking space shall be abated during the
initial Term.

     Tenant  shall at all times comply with all Laws  respecting  the use of the
Parking  Area.  Landlord  reserves  the  right to  adopt,  modify,  and  enforce
reasonable rules and regulations governing the use of the Parking Area from time
to time including  designation of assigned parking spaces,  requiring use of any
key-card,  sticker,  or other  identification or entrance systems and charging a
fee  for  replacement  of any  such  key-card  sticker  or  other  item  used in
connection with any such system and hours of operations.  Landlord may refuse to
permit any person who violates such rules and regulations to park in the Parking
Area,  and any violation of the rules and  regulations  shall subject the car to
removal from the Parking Area.

     Tenant may validate  visitor  parking by such method or methods as Landlord
may approve,  at the validation  rate from time to time generally  applicable to
visitor  parking.  Unless  specified to the contrary  above,  the parking spaces
provided  hereunder  shall be  provided  on an  unreserved,  "first-come,  first
served" basis. Tenant acknowledges that Landlord has arranged or may arrange for
the Parking Area to be operated by an  independent  contractor,  not  affiliated
with Landlord.

     All motor vehicles  (including all contents thereof) shall be parked in the
Parking  Area at the sole risk of Tenant and each other Tenant  Party,  it being
expressly agreed and understood Landlord has no duty to insure any of said motor
vehicles  (including the contents thereof),  and Landlord is not responsible for
the protection and security of such  vehicles.  If, for any reason,  Landlord is
unable to provide all or any portion of the  parking  spaces to which  Tenant is
entitled  hereunder,  then Tenant's  obligation  to pay for such parking  spaces
shall be  abated  for so long as  Tenant  does not  have the use  thereof;  this
abatement  shall be in full settlement of all claims that Tenant might otherwise
have  against  Landlord  because of  Landlord's  failure or inability to provide
Tenant with such parking spaces. Landlord shall not be responsible for enforcing
Tenant's parking rights against any third parties.  NOTWITHSTANDING  ANYTHING TO
THE  CONTRARY  CONTAINED  IN  THIS  LEASE,  LANDLORD  SHALL  HAVE  NO  LIABILITY
WHATSOEVER FOR ANY PROPERTY DAMAGE OR LOSS WHICH MIGHT OCCUR ON THE PARKING AREA
OR AS A RESULT OF OR IN CONNECTION  WITH THE PARKING OF MOTOR VEHICLES IN ANY OF
THE PARKING SPACES.

860209V.2 CHA792/16000                   G-1                       CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS

<PAGE>

                                    EXHIBIT H

                                 RENEWAL OPTION

     Tenant may renew this Lease for one  additional  period of three years,  by
delivering  written notice of the exercise  thereof to Landlord not earlier than
nine months nor later than six months  before the  expiration  of the Term.  The
Basic  Rent  payable  for each  month  during  such  extended  Term shall be the
prevailing  rental rate (the "Prevailing  Rental Rate"),  at the commencement of
such  extended  Term,  for  renewals  of  comparable  space in the  Building  of
equivalent quality, size, utility and location,  with the length of the extended
Term and the credit  standing of Tenant to be taken into account,  as determined
in Landlord's  reasonable but sole  discretion.  Within 30 days after receipt of
Tenant's notice to renew, Landlord shall deliver to Tenant written notice of the
Prevailing  Rental Rate and shall advise  Tenant of the required  adjustment  to
Basic Rent, if any, and the other terms and  conditions  offered.  Tenant shall,
within five days after receipt of Landlord's notice,  notify Landlord in writing
whether Tenant  accepts or rejects  Landlord's  determination  of the Prevailing
Rental Rate. If Tenant timely notifies  Landlord that Tenant accepts  Landlord's
determination of the Prevailing Rental Rate, then, on or before the commencement
date of the extended  Term,  Landlord  and Tenant shall  execute an amendment to
this Lease extending the Term on the same terms and conditions  provided in this
Lease, except as follows:

          (a) Basic Rent shall be adjusted to the Prevailing Rental Rate;

          (b) Tenant  shall  have no further  renewal  option  unless  expressly
     granted by Landlord in writing;

          (c) Landlord shall lease to Tenant the Premises in their  then-current
     condition,  and Landlord shall not provide to Tenant any allowances  (e.g.,
     moving  allowance,  construction  allowance,  and the like) or other tenant
     inducements;  provided, however, Landlord shall include a market finish out
     allowance, as reasonably determined by Landlord; and

          (d) Tenant  shall pay for the parking  spaces  which it is entitled to
     use at the rates from time to time  charged to patrons of the Parking  Area
     and/or any other  parking  area  associated  with the  Building  during the
     extended Term (plus all applicable taxes).

     If Tenant rejects  Landlord's  determination of the Prevailing Rental Rate,
or fails to timely  notify  Landlord in writing  that Tenant  accepts or rejects
Landlord's  determination  of the  Prevailing  Rental  Rate,  time  being of the
essence with respect thereto, Tenant's rights under this Exhibit shall terminate
and Tenant shall have no right to renew this Lease.

     Tenant's rights under this Exhibit shall terminate,  at Landlord's  option,
if (i) an Event of Default  exists as of the date of  Tenant's  exercise  of its
rights  under  this  Exhibit  or as of  the  renewal  commencement  date  of the
applicable extended Term, (ii) this Lease or Tenant's right to possession of any
of the Premises is  terminated,  (iii) Tenant assigns its interest in this Lease
or  sublets  any  portion  of the  Premises,  (iv)  Tenant  ceases to lease from
Landlord  and to occupy  at least  4,383  rentable  square  feet of  space,  (v)
Landlord  determines,  in its  sole but  reasonable  discretion,  that  Tenant's
financial  condition or creditworthiness  has materially  deteriorated since the
date of this Lease,  or (vi) Tenant  fails to timely  exercise  its option under
this  Exhibit,  time being of the  essence  with  respect to  Tenant's  exercise
thereof.

860209V.2 CHA792/16000                    H-1                      CHATEAU PLAZA
                                                            2515 MCKINNEY AVENUE
                                                                   DALLAS, TEXAS
<PAGE>

                             ALTSCHULER AND COMPANY
                                                                          ALT+CO
                                                          ALTSCHULER AND COMPANY
                              TRANSACTION SUMMARY

--------------------------------------------------------------------------------
                        SECTION I: DOCUMENT DESCRIPTION
--------------------------------------------------------------------------------

DOCUMENT TYPE:  Lease Agreement                 DOCUMENT DATE: May 23, 2011

BUILDING        Chateau Plaza--2515 McKinney    OWNER: Chateau Plaza Holdings LP
                Avenue, Dallas, TX 75201               a Delaware limited
                                                       partnership
TENANT:         Red Mountain Resources, Inc.,   TRANSACTION TYPE:  New Lease
                a Florida corporation

GUARANTOR:      N/A                             PREMISES DESCRIPTION: Spec Suite

--------------------------------------------------------------------------------
                          SECTION II: SPACE PARAMETERS
--------------------------------------------------------------------------------

SUITE #         900                             COMMENCEMENT DATE:  June 1, 2011

RENTABLE SQUARE
  FEET          4,383                           TERM:   64 months

PROPORTIONATE
SHARE           2.55%                           LEASE EXPIRATION: September 30,
                                                                  2016

--------------------------------------------------------------------------------
                        SECTION III: ECONOMIC PARAMETERS
--------------------------------------------------------------------------------

TRANSACTION CONCESSIONS TO TENANT

SUPPLEMENTAL ALLOWANCE: $0.00 (Landlord spent $33.pp per rsf on the spec suite
        finish-out)

TRANSACTION COMMITTMENTS MADE BY TENANT

BASE RENTAL

<TABLE>
<CAPTION>

<S>                    <C>     <C>         <C>             <C>             <C>             <C>
    6/1/11  9/30/12    4       $0.00       $0.00           $0.00           $0.00           TOTAL RENT
    10/1/11 9/30/12    12      $24.50      $107,383.50     $8,948.63       $107,383.50      $558,832.50
    10/1/12 9/30/13    12      $25.00      $109,575.00     $9,131.25       $109,575.00
    10/1/13 9/30/14    12      $25.50      $111,766.50     $9,313.88       $111,766.50
    10/1/14 9/30/15    12      $26.00      $11,3958.00     $9,496.50       $113,958.00
    10/1/15 9/30/16    12      $26.50      $11,6149.50     $9,679.13       $116,149.50
</TABLE>

                               AVG ANNUAL RENTAL RATE: $25.50 per RSF
                               AVG EFF RENTAL RATE: $23.91 per RSF

ESCALATION:     2011 Base Year; controllable expensed shall be capped at 8%
                cumulative/compounded

ADDITIONAL RENT:   Plus E deal

PARKING:        Charges abated for the first four months of the lease; Tenant
                pays regardless of utilization
  RESERVED SPACES:      2 spaces at $75.00/space/month
  UNRESERVED SPACES:    10 spaces at $45.00/space/month

SECURITY DEPOSIT:       $9,679.13

--------------------------------------------------------------------------------
                         SECTION IV: SPECIAL PARAMETERS
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

<S>                                                                                     <C>
RENEWAL OPTION:  One additional period of three years 6 to 9 mos written notice
                 required - at prevailing rate in Building as determined by             ALT+CO TS: _____________
                 Landlord
                                                                                        ALT+CO EXEC. ___________
</TABLE>

SUBSTITUTION:  Yes

HOLDING OVER:  The greater of 1) 150% for the first 60 days, 200% thereafter, or
               2) 125% of the prevailing rate

BUILDING AMENITIES:  Conference Center on-site; half-day is $125 and full-day is
                     $250 (non-contractual)

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                          SECTION V: CONTRACTS & LEGAL
--------------------------------------------------------------------------------
<TABLE>
<CAPTION>

<S>             <C>                             <C>                             <C>             <C>

NOTICE CONTACT:  Attn. Property Manger          with a copy to:                 LEGAL REVIEW:   No
                                                                                  FIRM:         N/A
ADDRESS:        Chateau Plaza Holdings, L.P.    Chateau Plaza Holdings, L.P.                    N/A
                c/o Stream Dallas Office, LP    c/o JPMorgan Asset Management
                2515 McKinney Ave., Suite 820   245 Park Avenue, 2nd Floor
                Dallas, TExas 75201             New York, New York 10167
                                                Attention: Dan Minkoff
                Office  214.855.5120
                Fax     214.220.2763
</TABLE>

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00190-of-00352.parquet"}]]