Document:

Exhibit 10.16

 

SECOND
AMENDMENT TO OFFICE LEASE

 

THIS SECOND AMENDMENT TO
OFFICE LEASE (this “Amendment”)  is entered by and between CRESCENT
REAL ESTATE FUNDING VIII, L.P. (“Landlord”),  a Delaware limited partnership, and
NETSPEND CORPORATION (“Tenant”),  a Delaware
corporation, with reference to the following:

 

A.                                    Pursuant to
that certain Lease Agreement dated August 11, 2003, by and between
Landlord and Tenant (the “Original
Lease”),  as
amended by that certain First Amendment to Office Lease dated August 2,
2005 (the “First
Amendment),  Landlord
has leased to Tenant approximately 33,172 Rental Square Feet of space
designated as Suites 1200 and 1350 (the “Original Premises”) in the building known as Austin
Centre located at 701 Brazos, Austin, Travis County, Texas (the “Building’).  The Original
Lease and the Amendment are collectively referred to herein as the “Lease”.

 

B.                                    Landlord and
Tenant now desire to further amend the Lease as set forth below. Unless
otherwise expressly provided in this Amendment, capitalized terms used in this
Amendment shall have the same meanings as in the Original Lease.

 

FOR GOOD AND VALUABLE
CONSIDERATION, the receipt and sufficiency of which are acknowledged, the
parties agree as follows:

 

1.                                      Renewal
Term. The Lease is hereby amended to provide that the Term of the Lease is
extended for an additional 32 months, commencing April 1, 2009 and
expiring on November 30, 2011 (the “Renewal Term”),  unless sooner terminated pursuant to
the terms of the Lease.

 

2.                                      Renewal
Options. Landlord and Tenant acknowledge and agree that
Tenant’s future rights to extend or renew the term of the Lease with respect to
the Premises are as expressly provided in Exhibit F of the Original Lease.

 

3.                                      Early
Termination. Tenant shall have the option to terminate the Lease
on November 30, 2009 (the “Termination Date”),  provided Tenant gives notice thereof (the “Termination Notice”)
to Landlord on or before February 28, 2009, and provided Tenant is
not in default under the Lease at the time of the giving of such notice nor on
the Termination Date. Additionally, Tenant’s right to terminate hereunder is
conditioned upon the payment in full by Tenant to Landlord, at least 30 days
prior to the Termination Date, of (a) all Rent through and including the
Termination Date and (b) the cash sum of $291,555.00 (the “Termination Payment”). Upon
written request by Tenant, Landlord shall provide to Tenant, Landlord’s then-
current calculation of all of such unamortized costs together with supporting
documentation. After Landlord’s receipt of the full Termination Payment, and so
long as Tenant has surrendered the Premises in the condition required under the
Lease, neither party shall have any rights, liabilities or obligations under
the Lease for the period accruing after the Termination Date, except those
which, by the provisions of the Lease, expressly survive the termination of the
Lease.

 

1

 

4.                                      Expansion
Space. The Lease is hereby modified and amended to include, effective as of
December 1, 2006 (the “Expansion
Date”), (a) certain space containing an additional 5,482
Rentable Square Feet located on the 10th floor of the Building, known as suite
number 1010, as shown on Exhibit A-1,
and (b) and certain space containing an additional 12,176 Rentable Square
Feet located on the 13th floor of the Building, known as suite number
1300, as shown on Exhibit A-2
attached hereto (collectively, the “Expansion Space”).  Tenant shall have access to the
Expansion Space up to ten (10) days prior to the Expansion Date for the
sole purpose of installing wiring, cabling, furniture and equipment. Such early
entry to the Expansion Space shall be subject. to all terms and conditions
contained in the Lease (as amended), including without limitation, Tenant’s insurance
and indemnity obligations.

 

5.                                      Premises. From and after
the Expansion Date, the term “Premises” wherever used in the Lease shall mean and
include the Original Premises, together with the Expansion Space, collectively
consisting of 50,830 Rentable Square Feet.

 

6.                                      Expansion Options. Landlord and Tenant
acknowledge and agree that, except as expressly provided in Exhibit B and Exhibit C attached hereto, Tenant
has no further options or rights to expand the Premises.

 

7.                                      Lease Term for Expansion Space. Tenant’s
lease of the Expansion Space shall commence on the Expansion Date and shall
terminate on November 30, 2011  (the
“Expansion Term”),  which is the date the Renewal Term
shall terminate, subject to earlier termination pursuant to the terms of the Lease.

 

8.                                      Base Rent for Original Premises. During
the Renewal Term, Tenant shall, at the time and place and in the manner
provided in the Lease, pay to Landlord as Base Rent for the Original Premises
as follows:

 

	
   

  	
   

  	
  Annual Rate

  	
   

  	
  Monthly

  	
   

  
	
  Period

  	
   

  	
  Per Square Foot

  	
   

  	
  Base Rent

  	
   

  
	
  04/01/09
  through 03/31/10

  	
   

  	
  $

  	
  17.00

  	
   

  	
  $

  	
  46,993.67

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04/01/10 through
  11/30/11

  	
   

  	
  $

  	
  18.00

  	
   

  	
  $

  	
  49,758.00

  	
   

  

 

9.                                      Base Rent for Expansion Space. During
the Expansion Term, Tenant shall, at the time and place and in the manner
provided in the Lease, pay to Landlord as Base Rent for the Expansion Space as
follows:

 

	
   

  	
   

  	
  Annual Rate

  	
   

  	
  Monthly

  	
   

  
	
  Period

  	
   

  	
  Per Square Foot

  	
   

  	
  Base Rent

  	
   

  
	
  12/01/06
  through 03/31/09

  	
   

  	
  $

  	
  14.00

  	
   

  	
  $

  	
  20,601.00

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  04/01/09
  through 11/30/11

  	
   

  	
  $

  	
  15.00

  	
   

  	
  $

  	
  22,072.50

  	
   

  

 

10.                               Security
Deposit. In addition to the Security
Deposit provided pursuant to the Original Lease, Tenant shall pay to Landlord
as an additional security deposit the amount of

 

2

 

$37,893.13 (the “Additional
Security Deposit”). The Additional Security Deposit
shall be held and disbursed in accordance with Section 6 of the Original
Lease.

 

11.                               Operating
Expenses Tenant shall pay its Pro Rata Share of all
Operating Expenses in accordance with the Lease, as amended hereby. Landlord
and Tenant acknowledge that Tenant’s Pro Rata Share prior to the Expansion Date
is 9.6525%, which is the percentage obtained by dividing (a) 33,172
Rentable Square Feet in the Original Premises by (b) the 343,664 Rentable
Square Feet in the Building. Landlord and Tenant further acknowledge that
Tenant’s Pro Rata Share on and after the Expansion Date is 14.7906%, which is
the percentage obtained by dividing (i) 50,830 Rentable Square Feet in the
Premises by (ii) the 343,664 Rentable Square Feet in the Building.

 

12.                               Condition
of Premises. Except as provided below, Tenant accepts the
Premises in its current condition, i.e., “AS IS” and “WITH ALL FAULTS” and acknowledges that
Landlord makes no representations or warranties with respect thereto. Notwithstanding
the foregoing, Landlord shall construct leasehold improvements in the Expansion
Space in accordance with the Work Letter attached hereto as Exhibit D. Land lord and Tenant
further acknowledge that Tenant intends to construct additional alterations to
the existing lobby area on the 13th floor of the
Premises at some future date and any such alterations will be subject to the
terms and conditions set forth in Section 9.C of the Original Lease.

 

13.                               Parking. As of the
Expansion Date, in addition to the Parking Permits described in the Parking
Agreement attached to the Original Lease as Exhibit E, Tenant shall take
and pay for 24 permits allowing access to unreserved parking spaces in the
Austin Centre Garage and 35 permits allowing access to unreserved parking
spaces in the St. David’s Garage (each an “Additional Permit”).  During the Expansion
Term, Tenant shall pay $125.00 per month (plus any taxes thereon) for each
Additional Permit allowing access to unreserved parking spaces in the Austin
Centre Garage and $110.00 per month (plus any taxes thereon) for each
Additional Permit allowing access to unreserved parking spaces in the St.
David’s Garage. Other than the fee set forth above, each Additional Permit
shall be taken by Tenant subject to the terms and conditions of the Parking
Agreement attached to the Lease as Exhibit E.

 

14.                               Broker. Tenant
represents and warrants that it has not been represented by any broker or agent
other than Herron Williams, LLC (“Broker”) (whose commission shall be paid by Landlord
pursuant to a separation agreement) in connection with the execution of this
Amendment. Tenant shall indemnify and hold
harmless Landlord and its designated property management, construction and
marketing firms, and their respective partners, members, affiliates and
subsidiaries, and all of their respective officers, directors, shareholders,
employees, servants, partners, members, representatives, insurers and agents
from and against all claims (including costs of defense and investigation) of
any broker or agent or similar party (other than Broker) claiming by, through
or under Tenant in connection with this Amendment.

 

15.                               Miscellaneous.
This Amendment shall become effective only upon full execution and
delivery of this Amendment by Landlord and Tenant. This Amendment contains the
parties’ entire agreement regarding the subject matter covered by this
Amendment, and supersedes all prior correspondence, negotiations, and
agreements, if any, whether oral or

 

3

 

written, between the parties concerning such subject
matter. There are no contemporaneous oral agreements, and there are no
representations or warranties between the parties not contained in this
Amendment. Except as modified by this Amendment, the terms and provisions of
the Lease shall remain in full force and effect, and the Lease, as modified by
this Amendment, shall be binding upon and shall inure to the benefit of the
parties hereto, their successors and permitted assigns. Landlord represents to
Tenant that the person signing this Amendment on behalf of Landlord is
authorized to execute this Amendment without the necessity of obtaining any
other signature, and that this Amendment is fully binding on Landlord.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

4

 

EXECUTED to the effective as of the Effective Date.

 

	
   

  	
  LANDLORD:

  
	
   

  	
   

  
	
   

  	
  CRESCENT REAL ESTATE FUNDING VIII, L.P., 

  
	
   

  	
  a Delaware limited partnership

  
	
   

  	
   

  
	
   

  	
  By:

  	
  CRE Management VIII, LLC, a Delaware 

  
	
   

  	
   

  	
  limited liability company, its general
  partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  Crescent Real Estate Equities, Ltd.,

  
	
   

  	
   

  	
   

  	
  a Delaware Corporation, its manager

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
  /s/ Robert H. Boykin, Jr. 

  
	
   

  	
   

  	
   

  	
   

  	
  Robert H. Boykin, Jr. 

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice President 

  
	
   

  	
   

  	
   

  	
   

  	
  Leasing

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Effective Date:

  	
  Sept. 6, 2006

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  TENANT:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NETSPEND CORPORATION

  
	
   

  	
   

  	
  a Delaware Corporation

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Richard J. Savard

  
	
   

  	
   

  	
  Name:

  	
  Richard J. Savard

  
	
   

  	
   

  	
  Title:

  	
  CEO

  
								

 

5

 

EXHIBIT A-1

 

EXPANSION SPACE

(Suite 1010)

 

 

6

 

EXHIBIT A-2

EXPANSION SPACE

(Suite 1300)

 

7

 

EXHIBIT B

PREFERENTIAL RIGHT TO LEASE

 

1.                                      Preferential
Right To Lease. Tenant shall have a Preferential Right to Lease
approximately 14,478 Rentable Square Feet (+/-10%, in Landlord’s discretion) on
the 6th floor of the Building, as shown on Exhibit B-1
to this Amendment (the “Preferential
Space”),  at
such time as such space becomes Available (as defined below) for direct lease
to a new tenant (whether or not a bona fide offer has been made); provided no
uncured event of default exists under the Lease (and no condition exists which,
with the passage of time and/or giving of notice, would be an event of default)
and Tenant remains in occupancy of the entire Premises. The Preferential Space
shall be deemed “Available”
at such time as Landlord decides to offer the Preferential Space
for lease and such space is no longer any of the following: (a) leased or
occupied; (b) assigned or subleased by the then-current tenant of the
space; or (c) re-leased by the then-current tenant of the space by
renewal, extension or renegotiation (whether agreed to prior to or after the
Effective Date). This Preferential Right to Lease shall terminate upon any
assignment of the Lease (other than in connection with a Permitted Transfer).
The Preferential Space shall be reduced to the extent Tenant leases any portion
thereof, whether or not pursuant to this Amendment or any other provision in the
Lease.

 

2.                                      Acceptance. Prior to
leasing the Preferential Space to a new tenant, Landlord shall first offer such
space in writing to Tenant specifying the amount and location of such space,
the anticipated date of tender of possession, the rental rate based on the
then-quoted rental rates for comparable space, including any projected rate
increases over the applicable term, and other applicable terms (e.g. leasehold
improvement allowance, term, parking rights, etc.) which will also be
based on comparable lease transactions in the Building as of the anticipated
Preferential Space Commencement Date (as defined below) (the “Preferential Rental Notice”).  Tenant shall have 7
business days within which to accept or reject such offer. If Tenant accepts
Landlord’s offer, Tenant shall, within 15 days after Landlord’s written
request, execute and return a lease amendment adding the Preferential Space to
the Premises for all purposes under the Lease (including any extensions or
renewals) and confirming the Base Rent and other applicable terms specified in
the Preferential Rental Notice. Such lease amendment may, if applicable,
contain a construction agreement using Landlord’s then-current form setting
forth the schedule and other terms and obligations of the parties regarding the
construction of any leasehold improvements in the Preferential Space. If Tenant
rejects such offer or fails timely to (a) accept such offer or
(b) execute and return the required lease amendment, then this
Preferential Right to Lease shall lapse and be of no further force and effect. In such event, Landlord shall be
relieved of any future obligations hereunder and may thereafter lease all or
part of the Preferential Space to any party without further notice or
obligation to Tenant.

 

3.                                      Tender
of Possession. The Preferential Space shall be leased for the
period commencing upon Landlord’s tender of possession of the Preferential
Space in accordance with Landlord’s offer and this Exhibit B
(the “Preferential Space
Commencement Date”)  and continuing through the expiration or
earlier termination of the Renewal Term, as it may be extended or renewed.
Landlord shall not be liable for any delay or failure to tender possession of
the Preferential Space by the anticipated tender date for any reason, including
by reason of any

 

8

 

holdover tenant or occupant, nor shall such failure
invalidate the Lease or extend the Renewal Term.

 

4.                                      Condition of Premises. The
Preferential Space shall be tendered in an “as-is” condition. However, all
leasehold improvements shall be constructed in the Preferential Space in
accordance with the construction agreement (if any) attached to the applicable
lease amendment. Any allowances shall be prorated for any delays in the Preferential
Space Commencement Date, taking
into account the economic assumptions underlying the terms in the Preferential Rental Notice.

 

9

 

EXHIBIT
B-1

PREFERENTIAL SPACE

 

 

10

 

EXHIBIT C

RIGHT OF FIRST REFUSAL

 

Provided the Lease (as
amended) is then in full force and effect and no event of default, as defined
in Article 18 of the Lease,
shall have occurred, Tenant shall have the right of first refusal as
hereinafter described to lease that portion of the space to be leased to a
prospective tenant (the “Offered
Space”)  which
is all or part of the space (the “Right of First Refusal Space”)  containing
approximately 21,574 Rentable Square Feet on the 10th floor of the
Building (more specifically shown on Exhibit C-1
attached hereto), exercisable at the following times and upon the following
conditions:

 

1.                                 If Landlord
enters into a bona fide letter of intent or other written agreement with a
prospective tenant to lease the Offered Space, Landlord shall notify Tenant of
such fact and shall include in such notice the rent, term, and other
appropriate provisions (including, but not limited to, construction allowance
for leasehold improvements) at which Landlord is prepared to offer such Offered
Space to such prospective tenant (the “Offer Notice”). Tenant shall have a period of 7
business days from the date of delivery of the notice to notify Landlord
whether Tenant elects to exercise  the
right granted hereby to lease the Offered Space. If  Tenant fails to give
any notice to Landlord within the required 7 business-day period, Tenant shall
be deemed to have waived its right to lease the Offered Space.

 

2.                                 If Tenant so
waives its right to lease the Offered Space (either by giving written notice
thereof or by failing to give any notice), Landlord shall have the right to
lease the Offered Space to the prospective tenant and upon the execution of
such lease between Landlord and the prospective tenant this Right of First
Refusal as to the Offered Space shall thereafter be null, void and of no
further force or effect.

 

3.                                 If Landlord does not enter
into a lease with such prospective tenant covering the Offered Space, Landlord
shall not thereafter engage in other lease negotiations with respect to the
Right of First Refusal Space without first complying with the provisions of
this Exhibit C.

 

4.                                 Upon the
exercise by Tenant of its right of first refusal as provided in this Exhibit C, Landlord and Tenant shall, within 15 days after Tenant delivers
to Landlord notice of its election, enter into an amendment to the Lease
incorporating the Offered Space into the Premises for the rent, for the term,
and containing such other terms and conditions as set forth in the Offer
Notice.

 

5.                                 Any
assignment of the Lease (other than in connection with a Permitted
Transfer) shall terminate the right of first refusal of Tenant contained
herein. The right of first refusal granted herein is personal to Netspend
Corporation and shall not be assignable to any other person or entity.

 

6.                                 The right of
first refusal of Tenant contained herein shall be subject and subordinate to
any rights of renewal, expansion or extension existing under any other tenant
leases for the Building as of the date of this Amendment.

 

11

 

EXHIBIT
C-1

RIGHT OF FIRST REFUSAL SPACE

 

 

12

 

EXHIBIT D

 

WORK LETTER

 

1.                                      Approved Construction Documents.

 

(a)                            Tenant’s
Information.  Within 10
business days after the Effective Date of this Amendment, Tenant shall submit
to Landlord (i) the name of a representative of Tenant who has been
designated as the person responsible for receiving all information from and
delivering all information to Landlord relating to the construction of the
Landlord Work (as defined below), and (ii) all information necessary for
the preparation of complete, detailed architectural, mechanical, electrical and
plumbing drawings and specifications for construction of the Landlord Work in
the Expansion Space, including Tenant’s partition and furniture layout,
reflected ceiling, telephone and electrical outlets and equipment rooms,
initial provider(s) of telecommunications services, doors (including
hardware and keying schedule), glass partitions, windows, critical dimensions,
imposed loads on structure, millwork, finish schedules, security devices, if
any, which Tenant desires or Landlord requires to have integrated with other
Building safety systems, and HVAC and electrical requirements (including
Tenant’s connected electrical loads and the National Electrical Code (NFPA-70)
Design Load Calculations), together with all supporting information and
delivery schedules (“Tenant’s
Information”).

 

(b)                            Construction
Documents.  Following
Landlord’s execution of the Amendment and receipt of Tenant’s Information,
Landlord’s designated architectural/engineering firm shall prepare and submit
to Tenant all finished and detailed architectural drawings and specifications,
including mechanical, electrical and plumbing drawings (the “Construction Documents”). In
addition, Landlord shall advise Tenant of the number of days of Tenant Delay
(as defined below) attributable to extraordinary requirements (if any)
contained in Tenant’s Information. Landlord (or its designated representative)
reserves the right to designate the location(s) of all of Tenant’s
mechanical, electrical or other equipment and the manner in which such
equipment will be connected to Building systems.

 

(c)                             Approved
Construction Documents.  Within
5 Business Days after receipt, Tenant shall (i) approve and return the
Construction Documents to Landlord, or (ii) provide Landlord Tenant’s
written requested changes to the Construction Documents, in which event
Landlord shall have the Construction Documents revised (as Landlord deems
appropriate) and resubmitted to Tenant for approval within 3 Business Days
after receipt. If Tenant fails to request changes within such 5 Business Day
period, Tenant shall be deemed to have approved the Construction Documents.
Upon Tenant’s approval, the Construction Documents shall become the “Approved Construction Documents.” By
granting approval of the Construction Documents (whether such approval is
expressly granted or deemed given as provided above), Tenant shall be deemed to
have confirmed by means of calculations or metering that the available capacity
of the Building electrical system will support Tenant’s electrical
requirements.

 

2.                                      Pricing and Bids.  Landlord shall seek 3 competitive bids from
general contractors from Landlord’s approved bidding list. Only subcontractors
from Landlord’s approved subcontractor list shall be allowed to work on the
mechanical, electrical and plumbing

 

13

 

components of the Building. Landlord and Tenant
shall mutually agree on the selection of the general contractor.

 

3.                                 Landlord’s Contributions.  Landlord will provide a construction allowance
not to exceed $219,168.00 (the “Construction Allowance”),  toward the cost of constructing the
Landlord Work. Payments shall be made directly to Landlord’s contractor
performing the Landlord Work. The cost of (a) all space planning, design,
consulting or review services and construction drawings, (b) extension of
electrical wiring from Landlord’s designated location(s) to the Expansion
Space, (c) purchasing and installing all building equipment for the
Expansion Space (including any submeters and other above building standard
electrical equipment approved by Landlord), (d) required metering,
re-circuiting or re-wiring for metering, equipment rental, engineering design
services, consulting services, studies, construction services, cost of billing
and collections, (e) materials and labor, and (f) an asbestos survey
of the Expansion Space if required by applicable Law, shall all be included in
the cost of the Landlord Work and may be paid out of the Construction
Allowance, to the extent sufficient funds are available for such purpose.
Tenant acknowledges that an asbestos survey will probably be required by applicable
Law and that the time required for such asbestos surveys should be incorporated
in Tenant’s construction planning. The Construction Allowance made available to
Tenant under this Work Letter must be utilized for its intended purpose within
180 days after the Effective Date or be forfeited with no further obligation on
the part of Landlord.

 

4.                                 Construction.

 

(a)                            General Terms.  Subject to the terms of this Work Letter,
Landlord agrees to cause leasehold improvements to be constructed in the
Premises (the “Landlord
Work”)  in
a good and workmanlike manner in accordance with the Approved Construction
Documents. Tenant acknowledges that Landlord is not an architect or engineer,
and that the Landlord Work will be designed and performed by independent architects,
engineers and contractors. Accordingly, Landlord does not guarantee or warrant
that the Approved Construction Documents will comply with Laws or be free from
errors or omissions, nor that the Landlord Work will be free from defects, and
Landlord will have no liability therefor. In the event of such errors,
omissions or defects, and upon Tenant’s written request, Landlord will use
commercially reasonable efforts to cooperate with Tenant in enforcing any
applicable warranties. In addition, Landlord’s approval of the Construction
Documents or the Landlord Work shall not be interpreted to waive or otherwise
modify the terms and provisions of the Lease, as amended. Except with respect
to the economic terms set forth in Paragraph 3 of this Work Letter, the terms and provisions contained in
this Work Letter shall survive the completion of the Landlord Work and shall
govern in all applicable circumstances arising under the Lease throughout the
term of the Lease, including the construction of future improvements in the
Expansion Space. Tenant acknowledges that Tenant’s Information and the Approved
Construction Documents must comply with (i) the definitions used by
Landlord for the electrical terms used in this Work Letter, (ii) the
electrical and HVAC design capacities of the Building, (iii) Landlord’s
policies concerning communications and fire alarm services, and
(iv) Landlord’s policies concerning Tenant’s electrical design parameters,
including harmonic distortion. Upon Tenant’s request, Landlord will provide Tenant
a written statement outlining items (i) through (iv) above.

 

14

 

(b)                            ADA Compliance.  Landlord shall, as an Operating Expense, be
responsible for ADA (and any applicable state accessibility standard) compliance
for the core areas of the Building (including elevators, Common Areas, and
service areas), the Building’s parking facilities and all points of access into
the Building. Tenant shall, at its expense, be responsible for ADA (and any
applicable state accessibility standard) compliance in the Expansion Space,
including restrooms on any floor now or hereafter leased or occupied in its
entirety by Tenant, its Affiliates or transferees. Landlord shall not be
responsible for determining whether Tenant is a public accommodation under ADA
or whether the Approved Construction Documents comply with ADA requirements,
including submission of the Approved Construction Documents for review by
appropriate state agencies. Such determinations, if desired by Tenant, shall be
the sole responsibility of Tenant.

 

(c)                             Substantial
Completion.  The Landlord
Work shall be deemed to be “Substantially
Complete” on the date that all Landlord Work (other than any
details of construction, mechanical adjustment or any other similar matter, the
noncompletion of which does not materially interfere with Tenant’s use or
occupancy of the Expansion Space) has been performed. Time is of the essence in
connection with the obligations of Landlord and Tenant under this Work Letter.
Landlord shall not be liable or responsible for any claims incurred (or
alleged) by Tenant due to any delay in achieving Substantial Completion for any
reason. Tenant’s sole and exclusive remedy for any delay in achieving
Substantial Completion for any reason other than Tenant Delay (defined below)
shall be the resulting postponement (if any) of the commencement of rental
payments for the Expansion Space under this Amendment. “Tenant Delay” means
any act or omission of Tenant or its agents, employees, vendors or contractors
that actually delays the Substantial Completion of the Landlord Work,
including: (i) Tenant’s failure to furnish information or approvals within
any time period specified in the Amendment, including the failure to prepare or
approve preliminary or final plans by any applicable due date;
(ii) Tenant’s selection of non-building standard equipment or materials;
(iii) changes requested or made by Tenant to previously approved plans and
specifications; or (iv) performance of work in the Expansion Space by
Tenant or Tenant’s contractor(s) during the performance of the Landlord
Work.

 

5.                                      Costs.

 

(a)                                 Change Orders
and Cost Overruns.  Landlord’s
approval is required in advance of all changes to, and deviations from, the
Approved Construction Documents (each, a “Change Order”),  including any (i) omission,
removal, alteration or other modification of any portion of the Landlord Work,
(ii) additional architectural or engineering services, (iii) changes
to materials, whether building standard materials, specially ordered materials,
or specially fabricated materials, or (iv) cancellation or modification of
supply or fabrication orders. Except as otherwise expressly provided in this
Work Letter, all costs of the Landlord Work in excess of the Construction Allowance
including Change Orders requested by Tenant and approved by Landlord which
increase the cost of the Landlord Work (collectively, “Cost Overruns”)  shall be paid by
Tenant to Landlord within 10 days of receipt of Landlord’s invoice. In
addition, at Landlord’s election, Landlord may require Tenant to prepay any
projected Cost Overruns within 10 days of receipt of Landlord’s invoice for
same. Landlord may stop or decline to commence all or any portion of the
Landlord Work until such payment (or prepayment) of Cost Overruns is received.
On or before the Commencement Date, and as a condition to Tenant’s right to
take

 

15

 

possession of the Expansion Space, Tenant shall pay
Landlord the entire amount of all Cost Overruns, less any prepaid amounts.
Tenant’s failure to pay, when due, any Cost Overruns or the cost of any Change
Order shall constitute an event of default under the Lease.

 

(b)                                 Construction
Management Fee.  Within 10
days following the date of invoice, Tenant shall, for supervision and
administration of the construction and installation of the Landlord Work, pay
Landlord a construction management fee equal to 2.5% of the aggregate contract
price for the Landlord Work, which may be paid from the unused portion of the
Construction Allowance (if any). Tenant’s failure to pay such construction
management fee when due shall constitute an event of default under the Lease.

 

6.                                      Acceptance.  By
taking possession of the Expansion Space, Tenant agrees and acknowledges that
(i) the Expansion Space is usable by Tenant as intended;
(ii) Landlord has no further obligation to perform any Landlord Work or
other construction (except punchlist items, if any, agreed upon by Landlord and
Tenant in writing): and (iii) both the Building and the Expansion Space
are satisfactory in all respects.

 

16Exhibit 10.17

 

THIRD AMENDMENT TO OFFICE LEASE

 

THIS THIRD AMENDMENT TO
OFFICE LEASE DOCUMENT (this “Amendment”)  dated 8/1/07 is entered into by and between WTCC
AUSTIN INVESTORS V, L.P., (“Landlord”),  a Delaware
limited partnership, and NETSPEND CORPORATION (“Tenant”),  a Delaware corporation, with
reference to the following:

 

A.                                    Pursuant to
that certain Lease Agreement dated August 11, 2003, by and between
Crescent Real Estate Funding VIII, L.P., Landlord’s predecessor-in-interest,
and Tenant (the “Original
Lease”),
as amended by that certain First Amendment to
Office Lease dated August 2, 2005 (the “First Amendment”),  as further amended by that certain
Second Amendment to Office Lease dated September 6, 2006 (the “Second Amendment”),  Landlord has
leased to Tenant approximately 50,830 Rental Square Feet of space designated as
Suite Nos. 1010, 1200, 1300, and 1350 (the “Premises”) in the building known as Austin
Centre located at 701 Brazos, Austin, Travis County, Texas (the “Building”). The
Original Lease and the Amendments thereto are collectively referred to herein
as the “Lease”.

 

B.                                    Landlord and
Tenant now desire to further amend the Lease as set forth below. Unless
otherwise expressly provided in this Amendment, capitalized terms used in this
Amendment shall have the same meanings as in the Lease.

 

FOR GOOD AND VALUABLE
CONSIDERATION, the receipt and sufficiency of which are acknowledged, the
parties agree as follows:

 

1.                                      Expansion Space. The Lease is hereby modified and amended to
include, effective as of the effective date, certain space containing an
additional 2,675 square feet of Rentable Square Feet, located on the 10th floor
of the Building and known as Suite No. 1040, as shown on Exhibit “A” attached hereto (the “Expansion Space”).  Tenant hereby
acknowledges that the Expansion Space is leased by Tenant subject to all terms
and conditions of the Lease, as amended hereby.

 

2.                                      Premises. From and after the Expansion Date as defined herein,
the term “Premises” wherever
used in the Lease shall mean and include the Original Premises, together with
the Expansion Space, collectively consisting of approximately 53,505 Rentable
Square Feet. As used herein, “Expansion Date” means the later of: (i) the
date Tenant’s leasehold improvements are substantially completed (or would have
been substantially completed except for delays caused by Tenant) in accordance
with Exhibit C attached hereto and made a part hereof for all purposes, or
(ii) September 1, 2007. Notwithstanding the foregoing, if Tenant
occupies all or any part of the Premises prior to (i) or (ii) above,
the Expansion Date shall be the date of such occupancy. Within five (5) business
days after the Expansion Date or the written request of Landlord thereafter,
Tenant shall execute and deliver to Landlord a declaration specifying and
verifying, among other things, the Expansion Date and Termination Date, the
number of rentable square feet, Tenant’s Share of Operating Costs, the rent
schedule, prepaid rent, if any, the amount of the security deposit, and such other
information relating to the Lease as the Landlord may reasonably request,
including acceptance of construction.

 

1

 

3.                                      Lease Term for Expansion Space. Tenant’s lease of the
Expansion Space shall commence on the Effective Date and shall terminate on August 31,
2009 (the “Expansion Term”), which
is the date the initial Lease Term shall terminate, provided, however, the
early termination provision of Paragraph 3D of the Original Lease and Paragraph
3 of the Second Amendment, shall not apply to the Expansion Space, and
Expansion Term set forth in this Third Amendment and the Tenant shall not have
any right of early termination of the Expansion Term and Expansion Space set
forth in this Third Amendment.

 

4.                                      Base Rent. Commencing on the Expansion Date, Tenant shall pay
monthly rental (“Base Rent”) for the Expansion Space at the same time and place
and in the manner provided in the Lease according to the following rental
schedule:

 

	
  Lease Months

  	
   

  	
  Rent

  
	
   

  	
   

  	
   

  
	
  09/01/07 – 08/31/09

  	
   

  	
  $3,789.58 per month (based on a rental rate
  of $17.00 per square foot of Rentable Area per year)

  

 

5.                                      Leasehold Improvements. Landlord shall construct
leasehold improvements in the Expansion Space in accordance with the Work
Letter attached hereto as Exhibit “B.”

 

6.                                      Section 4.A. is amended and restated in its entirety to
read as follows:

 

A.                                    Payments. As
consideration for this Lease, Tenant shall pay Landlord, without any demand,
setoff or deduction, the  total amount of Base Rent, Tenant’s
Pro Rata Share of the Operating Expenses (defined in Section 4.D.) and all
other sums payable by Tenant under this Lease (all of which are sometimes
collectively referred to as “Rent”). In addition to the taxes that are included
as operating expenses under Section 4.D.(5), Tenant shall pay and be
liable for all rental, gross receipts, sales and use, or other taxes, if any
(but excluding income and estate taxes), imposed upon or measured by rents,
receipts or income attributable to ownership, use, occupancy, rental, leasing,
operation or possession of the Premises, provided, however, any amounts paid by
the tenant shall under this Section 4.A. and shall not be treated as
Operating Expenses under Section 4.D. Tax Expenses under this Section 4.A.
shall include, without limitation: (i) any tax on the rent or other
revenue from the Property, or any portion thereof, or as against the business
of owning or leasing the Property, or any portion thereof, including any
business, gross margins or similar tax payable by Landlord which is
attributable to rent or other revenue derived from the Property, (ii) any
assessment, tax, fee, levy, or charge allocable to or measured by the area of
the Premises or the Rent payable hereunder. The monthly Base Rent and the
Operating Expense Payment shall be due in advance on the first day of each
calendar month without notice or demand, provided that the installment of Base
Rent for the first full calendar month of the Term shall be payable upon the
execution of this Lease by Tenant. All other items of Rent shall be due and
payable by Tenant on or before 30 days after billing by Landlord. All  payments
of Rent shall be by good and sufficient check or by other means (such as

 

2

 

automatic debit or
electronic transfer) acceptable to Landlord. If the Term commences on a day
other than the first day of a calendar month, the monthly Base Rent and the
Operating Expense Payment for the month shall be prorated on a daily basis
based on a 360 day calendar year. Landlord’s acceptance of less than the
correct amount of Rent shall be considered a payment on account of the earliest
Rent due. No endorsement or statement on a check or letter accompanying a check
or payment shall be considered an accord and satisfaction, and either party may
accept such check or payment without such acceptance being considered a waiver
of any rights such party may have under this Lease or applicable Law. Tenant’s
covenant to pay Rent is independent of every other covenant in this Lease.

 

7.                                      Operating
Expenses.

 

(a)                                 Tenant shall
pay its Pro Rata Share of all Operating Expenses in accordance with the Lease
(as amended hereby). Commencing on the Expansion Date, Tenant’s pro rata share
of all operating expenses is 15.5690%.

 

(b)                                 Section 4.D.(5) of
the Original Lease is hereby amended and restated in its entirety to read as
follows:

 

(5)                                 Real estate
taxes, assessments, business taxes, excises, association dues, fees, levies,
charges and other taxes of every kind and nature whatsoever, general and
special, extraordinary and ordinary, foreseen and unforeseen, including
interest on installment payments, which may be levied or assessed against or
arise in connection with ownership, use, occupancy, rental, leasing, operation
or possession of the Property, including personal property taxes for property
that is owned by Landlord and used exclusively in connection with the
operation, maintenance and repair of the Property, or substituted, in whole or
in part, for a tax previously in existence by any taxing authority, or assessed
in lieu of a tax increase, or paid as rent under any ground lease. Real estate
taxes do not include Landlord’s income or estate taxes (except to the extent
provided above).

 

8.                                      The Lease is
amended to provide that a new Section 4.E.(12) is added as follows:

 

(12)                          Rental, gross
receipts, sales and use, or other taxes, if any, imposed upon or measured by
rents, receipts or income attributable to ownership, use, occupancy, rental,
leasing, operation or possession of the Property which have been paid by
tenants pursuant to Section 4.A.

 

9.                                      Nothing in this Third
Amendment will change or modify the terms and conditions of the Lease as it
pertains to parking, except as set forth in the attached Exhibit “C.”

 

10.                               Notice. All notices,
requests or documents permitted or required to be delivered under the Lease to
Landlord shall be sent to the following address pursuant to Section 1.M.
of the Original Lease:

 

3

 

	
  Austin Centre:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Landlord:

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
  WTCC AUSTIN  

  INVESTORS V, L.P  

  c/o T. Stacy & Associates, Inc. 
  

  823 Congress Avenue, Suite 1111  

  Austin, Texas 78701 

  Attn: Tom Stacy

  	
   

  	
  Walton Street Capital 

  900 North Michigan, Suite 1900  

  Chicago, Illinois 60611 

  Attn: Luke G. Massar

  

 

11.                               Broker. Tenant
represents and warrants that it has not been represented by any broker other
than HerronWiliams in connection with the execution of this Amendment. Tenant shall indemnify and hold harmless Landlord and
its designated property management, construction and marketing firms, and their
respective partners, members, affiliates and subsidiaries, and all of their
respective officers, directors, shareholders, employees, servants, partners,
members, representatives, insurers and agents from and against all claims
(including costs of defense and investigation) of any broker or agent or
similar party claiming by, through or under Tenant in connection with this
Amendment.

 

12.                               Miscellaneous.
This Amendment shall become effective only upon full execution and
delivery of this Amendment by Landlord and Tenant. This Amendment contains the
parties’ entire agreement regarding the subject matter covered by this
Amendment, and supersedes all prior correspondence, negotiations, and
agreements, if any, whether oral or written, between the parties concerning
such subject matter. There are no contemporaneous oral agreements, and there
are no representations or warranties between the parties not contained in this
Amendment. Except as modified by this Amendment, the terms and provisions of
the Lease shall remain in full force and effect, and the Lease, as modified by
this Amendment, shall be binding upon and shall inure to the benefit of the
parties hereto, their successors and permitted assigns. Landlord represents to
Tenant that the person signing this Amendment on behalf of Landlord is
authorized to execute this Amendment without the necessity of obtaining any
other signature, and that this Amendment is fully binding on Landlord.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

4

 

EXECUTED to be effective as of 8-1-07,  the
Effective Date.

 

LANDLORD:

 

WTCC AUSTIN INVESTORS V, L.P., 

a Delaware limited partnership

 

	
  By: 

  	
  WTCC Austin Mezz GP V, L.L.C.,

  
	
   

  	
  a Delaware limited liability company,

  
	
   

  	
  its General Partner

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  WTCC Austin Mezz V, L.P.,

  
	
   

  	
   

  	
  a Delaware limited partnership, 

  
	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By: 

  	
  WTCC Austin GP V, L.L.C.,

  
	
   

  	
   

  	
   

  	
  a Delaware limited liability company, 

  
	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  Walton TCC Austin Holdings V, L.L.C.,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware limited liability company,

  
	
   

  	
   

  	
   

  	
   

  	
  its Sole Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  By: 

  	
  Walton Street Real Estate Fund V, L.P.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  a Delaware limited partnership,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  its Managing Member

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: 

  	
  Walton Street Managers V, L.P.,

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  a Delaware limited partnership, 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: 

  	
  WSC Managers V, Inc., 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation, 

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  By: 

  	
  /s/ Brian T. Kelly

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Name: 

  	
  Brian T. Kelly

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Title:

  	
  Vice President

  

 

[Signatures
continue on following page]

 

5

 

	
   

  	
  TENANT:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NETSPEND
  CORPORATION,

  	
   

  
	
   

  	
  a
  Delaware corporation

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Adam Chibib

  	
   

  
	
   

  	
  Name:

  	
  Adam Chibib

  	
   

  
	
   

  	
  Title:

  	
  CFO

  	
   

  

 

6

 

EXHIBIT “A”

EXPANSION SPACE

 

 

7

 

EXHIBIT “B” 

 

WORK LETTER

 

1.                                      Approved Construction Documents.

 

(a)                                 Tenant’s Information. Within 10
business days after the Effective Date of this Amendment, Tenant shall submit
to Landlord (i) the name of a representative of Tenant who has been
designated as the person responsible for receiving all information from and
delivering all information to Landlord relating to the construction of the
Landlord Work (as defined below), and (ii) all information necessary for
the preparation of complete, detailed architectural, mechanical, electrical and
plumbing drawings and specifications for construction of the Landlord Work in
the Expansion Space, including Tenant’s partition and furniture layout,
reflected ceiling, telephone and electrical outlets and equipment rooms,
initial provider(s) of telecommunications services, doors (including
hardware and keying schedule), glass partitions, windows, critical dimensions,
imposed loads on structure, millwork, finish schedules, security devices, if
any, which Tenant desires or Landlord requires to have integrated with other
Building safety systems, and HVAC and electrical requirements (including Tenant’s
connected electrical loads and the National Electrical Code (NFPA-70) Design
Load Calculations), together with all supporting information and delivery
schedules (“Tenant’s  Information”).

 

(b)                                 Construction
Documents. Following Landlord’s execution of the Amendment
and receipt of Tenant’s Information, Landlord’s designated
architectural/engineering firm shall prepare and submit to Tenant all finished
and detailed architectural drawings and specifications, including mechanical,
electrical and plumbing drawings (the “Construction Documents”).  In addition,
Landlord shall advise Tenant of the number of days of Tenant Delay (as defined
below) attributable to extraordinary requirements (if any) contained in
Tenant’s Information. Landlord (or its designated representative) reserves the
right to designate the location(s) of all of Tenant’s mechanical,
electrical or other equipment and the manner in which such equipment will be
connected to Building systems.

 

(c)                                  Approved
Construction Documents. Within 5 Business Days after receipt,
Tenant shall (i) approve and return the Construction Documents to
Landlord, or (ii) provide Landlord Tenant’s written requested changes to
the Construction Documents, in which event Landlord shall have the Construction
Documents revised (as Landlord deems appropriate) and resubmitted to Tenant for
approval within 3 Business Days after receipt. If Tenant fails to request
changes within such 5 Business Day period, Tenant shall be deemed to have
approved the Construction Documents. Upon Tenant’s approval, the Construction
Documents shall become the “Approved
Construction Documents.” By granting approval of the
Construction Documents (whether such approval is expressly granted or deemed
given as provided above), Tenant shall be deemed to have confirmed by means of
calculations or metering that the available capacity of the Building electrical
system will support Tenant’s electrical requirements.

 

2.                                      Pricing and Bids. Landlord shall
seek 3 competitive bids from general contractors from Landlord’s approved
bidding list. Only subcontractors from Landlord’s approved subcontractor list
shall be allowed to work on the mechanical, electrical and plumbing

 

8

 

components of the Building. Landlord and Tenant
shall mutually agree on the selection of the general contractor.

 

3.                                      Landlord’s Contributions. Landlord will
provide a construction allowance not to exceed $17,869.00 (the “Construction Allowance”),  toward the
cost of constructing the Landlord Work. Payments shall be made directly to
Landlord’s contractor performing the Landlord Work. The cost of (a) all
space planning, design, consulting or review services and construction
drawings, (b) extension of electrical wiring from Landlord’s designated
location(s) to the Expansion Space, (c) purchasing and installing all
building equipment for the Expansion Space (including any submeters and other
above building standard electrical equipment approved by Landlord),
(d) required metering, re-circuiting or re-wiring for metering, equipment
rental, engineering design services, consulting services, studies, construction
services, cost of billing and collections, (e) materials and labor, and
(f) an asbestos survey of the Expansion Space if required by applicable
Law, shall all be included in the cost of the Landlord Work and may be paid out
of the Construction Allowance, to the extent sufficient funds are available for
such purpose. Tenant acknowledges that an asbestos survey will probably be
required by applicable Law and that the time required for such asbestos surveys
should be incorporated in Tenant’s construction planning. The Construction
Allowance made available to Tenant under this Work Letter must be utilized for
its intended purpose within 180 days after the Effective Date or be forfeited
with no further obligation on the part of Landlord. To the extent that any
portion of the construction allowance is left after the completion of the
Landlord work (the “Excess Allowance”), Tenant may use the Excess Allowance to make
improvements to the Leased Premises defined in the Original Lease, First
Amendment, or Second Amendment, provided, however, if the Excess Allowance is
not used for such purposes by January 31, 2008, the Excess Allowance shall
be deemed forfeited.

 

4.                                      Construction.

 

(a)                                 General Terms. Subject to
the terms of this Work Letter, Landlord agrees to cause leasehold improvements
to be constructed in the Premises (the “Landlord Work”) in a good and workmanlike manner in
accordance with the Approved Construction Documents. Tenant acknowledges that
Landlord is not an architect or engineer, and that the Landlord Work will be
designed and performed by independent architects, engineers and contractors.
Accordingly, Landlord does not guarantee or warrant that the Approved
Construction Documents will comply with Laws or be free from errors or
omissions, nor that the Landlord Work will be free from defects, and Landlord
will have no liability therefor. In the event of such errors, omissions or
defects, and upon Tenant’s written request, Landlord will use commercially
reasonable efforts to cooperate with Tenant in enforcing any applicable
warranties. In addition, Landlord’s approval of the Construction Documents or
the Landlord Work shall not be interpreted to waive or otherwise modify the
terms and provisions of the Lease, as amended. Except with respect to the
economic terms set forth in Paragraph 3 of this Work Letter, the terms and provisions contained in
this Work Letter shall survive the completion of the Landlord Work and shall
govern in all applicable circumstances arising under the Lease throughout the
term of the Lease, including the construction of future improvements in the
Expansion Space. Tenant acknowledges that Tenant’s Information and the Approved
Construction Documents must comply with (i) the definitions used by
Landlord for the electrical terms used in this Work Letter, (ii) the
electrical and HVAC design capacities of the Building, (iii) Landlord’s
policies

 

9

 

concerning communications and fire alarm services,
and (iv) Landlord’s policies concerning Tenant’s electrical design
parameters, including harmonic distortion. Upon Tenant’s request, Landlord will
provide Tenant a written statement outlining items (i) through
(iv) above.

 

(b)                            ADA Compliance. Landlord
shall, as an Operating Expense, be responsible for ADA (and any applicable
state accessibility standard) compliance for the core areas of the Building
(including elevators, Common Areas, and service areas), the Building’s parking
facilities and all points of access into the Building. Tenant shall, at its
expense, be responsible for ADA (and any applicable state accessibility
standard) compliance in the Expansion Space, including restrooms on any floor
now or hereafter leased or occupied in its entirety by Tenant, its Affiliates
or transferees. Landlord shall not be responsible for determining whether
Tenant is a public accommodation under ADA or whether the Approved Construction
Documents comply with ADA requirements, including submission of the Approved
Construction Documents for review by appropriate state agencies. Such
determinations, if desired by Tenant, shall be the sole responsibility of
Tenant.

 

(c)                             Substantial
Completion. The Landlord Work shall be deemed to be “Substantially Complete” on
the date that all Landlord Work (other than any details of construction,
mechanical adjustment or any other similar matter, the noncompletion of which
does not materially interfere with Tenant’s use or occupancy of the Expansion
Space) has been performed. Time is of the essence in connection with the
obligations of Landlord and Tenant under this Work Letter. Landlord shall not
be liable or responsible for any claims incurred (or alleged) by Tenant due to
any delay in achieving Substantial Completion for any reason. Tenant’s sole and
exclusive remedy for any delay in achieving Substantial Completion for any
reason other than Tenant Delay (defined below) shall be the resulting
postponement (if any) of the commencement of rental payments for the Expansion
Space under this Amendment. “Tenant Delay” means any act or omission of Tenant or
its agents, employees, vendors or contractors that actually delays the
Substantial Completion of the Landlord Work, including: (i) Tenant’s
failure to furnish information or approvals within any time period specified in
the Amendment, including the failure to prepare or approve preliminary or final
plans by any applicable due date; (ii) Tenant’s selection of non-building
standard equipment or materials; (iii) changes requested or made by Tenant
to previously approved plans and specifications; or (iv) performance of
work in the Expansion Space by Tenant or Tenant’s contractor(s) during the
performance of the Landlord Work.

 

5.                                      Costs.

 

(a)                                 Change Orders
and Cost Overruns. Landlord’s approval is required in advance of all
changes to, and deviations from, the Approved Construction Documents (each, a “Change Order”),  including any
(i) omission, removal, alteration or other modification of any portion of
the Landlord Work, (ii) additional architectural or engineering services,
(iii) changes to materials, whether building standard materials, specially
ordered materials, or specially fabricated materials, or (iv) cancellation
or modification of supply or fabrication orders. Except as otherwise expressly
provided in this Work Letter, all costs of the Landlord Work in excess of the
Construction Allowance including Change Orders requested by Tenant and approved
by Landlord which increase the cost of the Landlord Work (collectively, “Cost Overruns”) shall be
paid by Tenant to Landlord within 10 days of receipt of Landlord’s invoice. In
addition, at

 

10

 

Landlord’s election, Landlord may require Tenant to
prepay any projected Cost Overruns within 10  days of receipt of
Landlord’s invoice for same. Landlord may stop or decline to commence all or
any portion of the Landlord Work until such payment (or prepayment) of Cost
Overruns is received. On or before the Commencement Date, and as a condition to
Tenant’s right to take possession of the Expansion Space, Tenant shall pay
Landlord the entire amount of all Cost Overruns, less any prepaid amounts.
Tenant’s failure to pay, when due, any Cost Overruns or the cost of any Change
Order shall constitute an event of default under the Lease.

 

(b)                                 Construction
Management Fee. Within 10 days following the date of invoice,
Tenant shall, for supervision and administration of the construction and
installation of the Landlord Work, pay Landlord a construction management fee
equal to 2.5% of the aggregate contract price for the Landlord Work, which may
be paid from the unused portion of the Construction Allowance (if any).
Tenant’s failure to pay such construction management fee when due shall
constitute an event of default under the Lease.

 

6.                                      Acceptance. By taking
possession of the Expansion Space, Tenant agrees and acknowledges that
(i) the Expansion Space is usable by Tenant as intended;
(ii) Landlord has no further obligation to perform any Landlord Work or
other construction (except punchlist items, if any, agreed upon by Landlord and
Tenant in writing): and (iii) both the Building and the Expansion Space
are satisfactory in all respects.

 

11

 

EXHIBIT C

 

TO

THIRD AMENDMENT TO OFFICE LEASE BETWEEN

WTCC AUSTIN INVESTORS V, L.P., AS LANDLORD, AND

NETSPEND CORPORATION, AS TENANT

 

PARKING

 

(a)                            Conversion of
Unreserved Space to Reserved Space. Tenant shall convert one
of its existing unreserved parking spaces in the Omni Austin Hotel Downtown
parking garage to a reserved space (the “Additional Reserved Space”) in the
Omni Austin Hotel Downtown parking garage. Tenant agrees to rent the Additional
Reserved Space through the Expansion Term of the Lease. Tenant shall rent the
Additional Reserved Space unless and until Landlord releases Tenant from such
space after Tenant gives at least sixty (60) days prior written notice to
Landlord that Tenant desires to relinquish the Additional Reserved Space, but
Landlord shall be under no obligation to later make available to Tenant any
space relinquished by Tenant. Rates may be changed from time to time by the
operator(s) of the garage(s). As rental for the Additional Reserved Space
provided to Tenant hereunder, Tenant shall pay to Landlord or the operator of
the garage, as may be designated from time to time by Landlord, monthly in
advance in the same manner and in addition to the Base Rent provided in the
Lease, rental on the Additional Reserved Space at the initial rate of $250.00
plus tax per month. Tenant may from time-to-time lease additional spaces on a
month to month basis (subject to availability, if any) in other offsite
locations leased by Landlord at market rates plus tax for any spaces in other garages
or surface lots.

 

(b)                            Miscellaneous. Tenant shall
comply with all traffic, security, safety and other rules and regulations
promulgated from time to time by Landlord or the Garage Operator. Tenant shall
indemnify and hold harmless Landlord from and against all claims, losses,
liabilities, damages, costs and expenses (including, but not limited to,
attorneys’ fees and court costs) arising or alleged to arise out of Tenant’s
use of any such parking spaces, whether or not caused or alleged to be caused by
Landlord’s negligence. In the event any of the above unrelinquished parking
spaces are or become unavailable at any time or from time to time throughout
the Term, whether due to casualty or any other cause beyond Landlord’s
reasonable control, this Lease shall continue in full force and effect;
provided, however, Tenant shall be entitled to an abatement of the rent due for
any such unrelinquished space for so long as it is unavailable for use by
Tenant during normal Building hours.

 

12

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