Document:

exv10w29

Exhibit 10.29

     FIRST AMENDMENT TO LEASE

     THIS
FIRST AMENDMENT TO LEASE (this “Amendment”) is entered into on this ___ day of
October 2004, by and between 3400 Carlisle, Ltd. (“Landlord”) and Study Island L.L.P.
(“Tenant”).

     WHEREAS, Landlord and Tenant entered into that certain Office Lease commencing May 23,
2003, covering certain premises (the “Premises”) comprising 1,717 rentable square feet, known
as Suite 345, (commonly known as the “Lease”) in the office building (the “Building”) known
as “3400 Carlisle”, located at 3400 Carlisle, Dallas, Dallas County, Texas, such Original
Premises being more particularly described in the Lease; and

     WHEREAS, Tenant and Landlord desire to relocate the Premises to another location on
floor three (3) which contains 2,939 rentable square feet, all on certain terms and
conditions and pursuant to this Amendment to Lease; and

     WHEREAS, Landlord and Tenant desire to extend the term of the Lease by sixty-three (63)
months; and

     NOW, THEREFORE, for and in consideration of the mutual covenants contained herein and
for other good and valuable consideration, Landlord and Tenant hereby amend the Lease as
follows:

1. Location of Premises. The Premises, as defined in the Lease, shall be relocated
on floor three (3) as shown on Exhibit “A”. The suite number of the Premises shall remain
345 after such relocation.

2. Square Footage. The square footage of the Premises as shown in Part One article 2
of the lease shall be amended to be 2,939 square feet.

3. Base
Rental. Effective December 1, 2004 and continuing through February 28, 2010, Base
Rental payable by Tenant to Landlord for the Premises, shall be as follows:

Months 1-3 @ Free

Months 3-12 @ $16.00 psf or $3,918.67 per month

Months 13-24 @ $16.50 psf or $4,041.13 per month

Months 25-36 @ $17.00 psf or $4,163.58 per month

Months 37-48 @ $17.25 psf or $4,224.81 per month

Months 49-63 @ $17.50 psf or $4,286.04 per month

4. Landlord’s Annual Operating Cost Contribution. Part One, Paragraph 5 shall be
amended as follows: “Actual Operating Cost per square foot of rentable area of the Premises
for Calendar year 2005 times the number of square feet in the Premises.”

5. Improvements. Landlord shall construct the improvements as shown on the plan
(Exhibit “A”) dated July 30, 2004 (“The Plan”), utilizing Building Standard materials and
methods. Any improvements requested and provided that are not shown in The Plan shall be at
Tenant’s expense. All improvements shall be constructed by a Landlord approved contractor
which shall be selected through a formal biding process.

6. Parking. Landlord shall provide a total of nine (9) unreserved parking spaces in the
Building

 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on and
effective as of the date first above written.

	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:
	 
	 	 	 	 	 	 	 	 
	3400 Carlisle, Ltd.	 	 	 	Study Island L.L.P.
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Robert P. Breunig
	 	 
	 	By:
	 	/s/ David Muzzo; /s/ Cameron
Chalmers
	 

	 	 
	 	 	 	 	 	 
	Name:

	Robert P. Breunig
	 	 	 	Name:
	David Muzzo; Cameron Chalmers
	Title:

	 	President of the General Partner
	 	 	 	Title:
	 	Member; Member
	 

	 	3400 Carlisle Partners, Inc.	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Date:

	 	16/28/04
	 	 	 	Date:
	 	10/7/04; 10/7/04
	 

	 	 
	 	 	 	 	 	 

 

 

Exhibit “A”

Location of the Premises

The Planexv10w30

Exhibit 10.30

SECOND AMENDMENT TO LEASE

     THIS
SECOND AMENDMENT TO LEASE (this “Amendment”) is entered
into on this day of February 2006, by and between 3400 Carlisle, Ltd. (“Landlord”) and Study Island L.L.C. (“Tenant”).

     WHEREAS, Landlord and Tenant entered into that certain Office Lease commencing May 23, 2003,
and the First Amendment to Lease dated October 28, 2004 covering certain premises (the “Premises”)
comprising 1,717 rentable square feet, known as Suite 345, (commonly known as the “Lease”) in the
office building (the “Building”) known as “3400 Carlisle”, located at 3400 Carlisle, Dallas,
Dallas County, Texas, such Original Premises being more particularly described in the Lease; and

     WHEREAS, the First Amendment to Lease amended the location and square footage of the
Premises, and

     WHEREAS, Tenant and Landlord desire to expand the Premises by including Suite 320 which
contains 1,717 rentable square feet (“Expansion Premises”), all on certain terms and conditions
and pursuant to this Amendment to Lease; and

     NOW, THEREFORE, for and in consideration of the mutual covenants contained herein and for
other good and valuable consideration, Landlord and Tenant hereby amend the Lease as follows:

1.
Location of Expansion Premises. The Expansion Premise shall be located on floor three
(3), as shown in Exhibit “A.”. The Expansion Premises shall be incorporated and be considered part of
the Premises until the expiration of the Lease.

2. Square Footage. The square footage of the Premises as described in Part One, Article 2
and in Paragraph 1 of the First Amendment of the Lease shall be amended to be 4,656 rentable square feet.

3. Base Rental. Effective April 1, 2006 and continuing through February 28, 2010, the
amended Base Amended Rental payable by Tenant to Landlord for the Premises, shall be as follows:

April 1, 2006 — February 28, 2007 @ $6,831.30 per month

March 1, 2007 — February 28, 2008 @ $6,953.75 per month

March 1, 2008 — February 28, 2009 @ $7,086.48 per month

March 1, 2009 — February 28, 2010 @ $7,147.71 per month

4. Improvements to Expansion Premises. Landlord shall install new carpet and paint all
previously painted surfaces, utilizing Building Standard materials and methods. Such improvements
shall be to the Expansion Premises only.

5.
Parking. Landlord shall provide an additional five (5) unreserved parking spaces in the Building parking garage.

6. Terms and Conditions. All other terms and conditions shall be per the Lease Agreement.

 

 

EXCEPT AS HEREBY AMENDED, the Lease and all other provisions thereof remain unchanged and are
hereby confirmed and ratified.

IN WITNESS WHEREOF, the parties have executed and delivered this Amendment on and effective as of
the date first above written.

	 	 	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 	 	 
	3400 Carlisle, Ltd.	 	 	 	Study Island L.L.C.
	 
	By:

	 	 	 	 	 	By:	 	 
	Name:

	 	 

Robert P. Breunig
	 	 	 	Name:
	 	 
 
	 

	 	 	 	 	 	 	 	 
	Title:

	 	 President of the General Partner	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	3400 Carlisle Partners, Inc.
	 	 	 	Date:	 	 
	 

	 	 	 	 	 	 	 	 

 

 

EXHIBIT “A”

RELOCATION PREMISESexv10w31

Exhibit 10.31

OFFICE BUILDING LEASE

between

Turtle Creek Limon, LP

as

“Landlord”

and

Study Island L.L.C.

as

“Tenant”

 

 

OFFICE BUILDING LEASE

     In consideration of the mutual covenants and upon the terms and conditions set forth in Part
One “Fundamental Lease Provisions”, Part Two “Supplemental Lease Provisions”, and other
attachments and exhibits (“Lease”), Turtle Creek Limon, LP (“Landlord”) hereby leases to the
Tenant named below and Tenant hereby leases from Landlord, certain premises described below.

PART ONE

FUNDAMENTAL LEASE PROVISIONS

     1. Tenant: Study Island L.L.C., organized under the laws of the State of Delaware.

     2. Premises: Designated as “Suite 200”, outlined and crosshatched on Exhibit
B hereof and
containing approximately 9,525 square feet of Rentable
Area on the 2nd floor(s) of the Building. (Part Two,
Article 1)

     3. Term:
Beginning on Commencement Date (contemplated to be June 1, 2007) and
ending on May 31, 2011 (Part Two, Article 2)

     4. Monthly Installment of Base Annual Rent (Part Two, Section 3.1):

	 	 	 	 	 
	 	 	Base Annual Rent per Square	 	Monthly Installment of Base
	Calendar Months	 	Foot	 	Annual Rent
	1–12
	 	$19.25
	 	$15,279.68 (plus electricity)
	13–24
	 	$19.62
	 	$15,573.38 (plus electricity)
	25–36
	 	$19.83
	 	$15,740.06 (plus electricity)
	37–48
	 	$20.04
	 	$15,906.75 (plus electricity)
	49–60
	 	$21.50
	 	$17,065.63 (plus electricity)

     5. Landlord’s Annual Operating Cost Contribution: Actual Operating Costs per square
foot of
Rentable Area of Premises for calendar year 2006 times the number of square feet of
Rentable Area in the Premises.
[Part Two, Section 3.2(b)]

     6. Security
Deposit: Seventeen Thousand Sixty Five and 63 /100 Dollars ($17,065.63).
(Part Two, Section 3.6)

     7. Prepaid Rent: Fifteen Thousand Two Hundred Seventy Nine and 68 /100 Dollars
($15,279.68). (Part Two, Section 3.6)

     8. Premises Use: Office space. (Part Two, Article 6)

     9. Commercial General Liability Insurance: Three Million and No/100 Dollars
($3,000,000.00).
(Part Two, Article 8)

     10. Addresses For Notices and Payment of Rent and Other Charges (Article 16):

	 	 	 
	TO TENANT:

	 	TO LANDLORD:
	 
	 	 
	Study Island L.L.C.

	 	Breunig Commercial
	3400 Carlisle, Suite 200

	 	2811 McKinney Ave Suite 302 
	Dallas, Texas 75204

	 	Dallas, Texas 75204-2530 
	Attention:                     

	 	Attention: Property Manager

			
	 	 	 
	Office Building Lease — Study Island L.L.P.
	 	Part One, Page 1

 

 

     11. Broker
(Article 17): Mark E. Davidson of Breunig
Commercial.

     12. Parking Spaces: Total number of unreserved garage spaces: twenty-nine
(29).
There shall be no monthly charge for fifteen (15) of the twenty-nine (29) spaces during the
first twelve months of the Term. There shall be no monthly charge for the remaining fourteen (14)
of the twenty-nine (29) spaces during the first thirty-six (36) months of the Term. After the no
charge periods, Landlord shall have the option to charge Tenant for parking at the then market
rate as determined by Landlord.

     13. Incorporation of Other Provisions: All of the provisions, covenants and conditions
set forth in Part
Two and all other exhibits and attachments are by this reference incorporated into the
Fundamental Lease Provisions
as fully as if the same were set forth at length in the Fundamental Lease Provisions. Each
reference in Part Two and
exhibits and other attachments to any provision in the Fundamental Lease Provisions will be
construed to
incorporate all of the terms provided under the referenced provision in the Fundamental Lease
Provisions. In the
event of any conflict between a provision in the Fundamental Lease Provisions, on the one
hand, and a provision in
Part Two or exhibits or other attachments, on the other hand, the latter will control.

     This Lease has been executed by Landlord and Tenant as of the 12th day of
January, 2007.

	 	 	 	 	 	 	 	 	 	 	 
	TENANT:	 	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Study Island, L.L.C.	 	 	 	Turtle Creek limon, LP, a texas limited partnership	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	By: 3400 Carlisle Interests, LLC, a Delaware limited	 	 
	By:	 	/s/ David Muzzo	 	 	 	liability company, its General Partner	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
	 	David Muzzo	 	 	 	 	 	 	 	 
	Title:

	 	Manager	 	 	 	By:	 	/s/ Frank Mackey	 	 
	 

	 	 	 	 	 	 
	 	 	 	 
	 

	 	 	 	 	 	Name:
	 	Frank Mackey	 	 
	 

	 	 	 	 	 	Title:
	 	Manager	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATTEST:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Jay Kirk	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
	 	Jay Kirk	 	 	 	 	 	 	 	 
	Title:
	 	Tech	 	 	 	 	 	 	 	 

[THE LEASE MUST BE EXECUTED FOR TENANT, IF A CORPORATION, BY THE PRESIDENT OR VICE-PRESIDENT AND
ATTESTED BY THE SECRETARY OR ASSISTANT SECRETARY, UNLESS THE BY-LAWS OR A RESOLUTION OF THE BOARD
OF DIRECTORS OTHERWISE PROVIDE, IN WHICH EVENT A CERTIFIED COPY OF THE BY-LAWS OR RESOLUTION, AS
THE CASE MAY BE, MUST BE FURNISHED.]

			
	 	 	 
	Office Building Lease — Study Island L.L.P.
	 	Part One, Page 2

 

 

TABLE OF CONTENTS 

PART TWO

	 	 	 	 	 
	 	 	Part
Two, Page #	 
	1.
PREMISES, COMMON AREAS, SERVICE AREAS
	 	 	1	 
	1.1. Building
	 	 	1	 
	1.2. Computation of Rentable Area
	 	 	1	 
	1.3. Minor Variations in Area
	 	 	1	 
	1.4. Ceilings,
Walls, Floors
	 	 	1	 
	1.5. Condition of Premises
	 	 	1	 
	1.6. Common and Service Areas
	 	 	1	 
	2. TERM
	 	 	2	 
	2.1. Term
	 	 	2	 
	2.2. Delay in Commencement
	 	 	2	 
	2.3. Holding Over
	 	 	2	 
	3. MONETARY PROVISIONS
	 	 	2	 
	3.1. Base Annual Rent
	 	 	2	 
	3.2. Tenant’s Share of Certain Costs
	 	 	2	 
	3.3. Personal Property Taxes
	 	 	3	 
	3.4. Taxes for Leasehold Improvements
	 	 	3	 
	3.5. Prepaid Rent
	 	 	4	 
	3.6. Security Deposit
	 	 	4	 
	3.7. Late Payments
	 	 	4	 
	3.8. Interest
	 	 	4	 
	3.9. Administrative Reimbursement
	 	 	4	 
	3.10. Additional Rent
	 	 	4	 
	3.11. Electricity
	 	 	4	 
	3.12. Method of Computation
	 	 	5	 
	4. CONSTRUCTION
	 	 	5	 
	5. SERVICES AND UTILITIES
	 	 	5	 
	5.1. Services by Landlord
	 	 	5	 
	5.2. Tenant’s Obligations
	 	 	6	 
	5.3. Tenant’s Additional Service Requirements
	 	 	6	 
	5.4. Interruption of Utility Service
	 	 	7	 
	6. OCCUPANCY AND CONTROL
	 	 	7	 
	6.1. Use
	 	 	7	 
	6.2. Rules and Regulations
	 	 	7	 
	6.3. Additional Covenants of Tenant
	 	 	7	 
	6.4. Access by Landlord
	 	 	8	 
	6.5. Control of Building and Common Areas
	 	 	8	 
	6.6. Minimization of Disruption
	 	 	8	 
	7. REPAIRS, MAINTENANCE AND ALTERATIONS
	 	 	9	 
	7.1. Landlord’s Repair Obligations
	 	 	9	 
	7.2. Tenant’s Repair Obligations
	 	 	9	 
	7.3. Rights of Landlord
	 	 	9	 
	7.4. Surrender
	 	 	9	 
	7.5. Alterations by Tenant
	 	 	10	 
	7.6. Liens
	 	 	10	 
	8. INSURANCE
	 	 	10	 
	8.1. Insurance Required of Tenant
	 	 	10	 

(i)

 

	 	 	 	 	 
	 	 	Part Two, Page #	 
	8.2. Policy Form
	 	 	11	 
	8.3. Waiver of Subrogation 
	 	 	11	 
	8.4. Damage to Property or Persons
	 	 	11	 
	8.5. Landlord’s Insurance
	 	 	12	 
	9. DAMAGE OR DESTRUCTION
	 	 	12	 
	9.1. Repair by Landlord
	 	 	12	 
	9.2. Landlord’s Rights Upon The Occurrence of Certain Casualties
	 	 	12	 
	9.3. Repairs by Tenant
	 	 	13	 
	10. EMINENT DOMAIN
	 	 	13	 
	10.1. Total Taking
	 	 	13	 
	10.2. Partial Taking
	 	 	14	 
	10.3. Award
	 	 	14	 
	11. ASSIGNMENT AND SUBLETTING
	 	 	14	 
	11.1. Consent
	 	 	14	 
	11.2. Landlord’s Option
	 	 	14	 
	11.3. Definition of Transfer
	 	 	15	 
	11.4. Legal Fees
	 	 	15	 
	12. DEFAULT; REMEDIES
	 	 	15	 
	12.1. Defaults by Tenant
	 	 	15	 
	12.2. Remedies
	 	 	16	 
	12.3. Remedies Cumulative
	 	 	17	 
	12.4. Attorneys’ Fees
	 	 	17	 
	12.5. Waiver
	 	 	17	 
	12.6. Landlord’s Lien
	 	 	17	 
	12.7. Force Majeure
	 	 	17	 
	13. ESTOPPEL CERTIFICATES
	 	 	18	 
	13.1. Acknowledgment of Commencement Date
	 	 	18	 
	13.2. Certificates
	 	 	18	 
	13.3. Financial Statements
	 	 	18	 
	14. SUBORDINATION AND ATTORNMENT
	 	 	18	 
	15. LANDLORD’S INTEREST
	 	 	18	 
	15.1. Liability of Landlord
	 	 	18	 
	15.2. Notice to Mortgagee
	 	 	18	 
	15.3. Sale of Building
	 	 	19	 
	16. NOTICES
	 	 	19	 
	17. BROKERS
	 	 	19	 
	18. INDEMNITY
	 	 	19	 
	18.1. Definitions
	 	 	19	 
	18.2. Indemnity and Waiver
	 	 	19	 
	18.3. Scope of Indemnities and Waivers
	 	 	20	 
	18.4. Negligence of the Beneficiary
	 	 	20	 
	19. SUBSTITUTION OF SPACE
	 	 	20	 
	19.1. Substitute Space
	 	 	20	 
	19.2. Maximum Base Annual Rent
	 	 	20	 
	19.3. Condition of Premises
	 	 	20	 
	19.4. Commencement of Rent
	 	 	20	 
	20. PARKING
	 	 	20	 
	20.1. Parking Spaces
	 	 	20	 
	20.2. Control of Parking
	 	 	20	 
	20.3. Liability
	 	 	21	 
	20.4.
Default, Remedies
	 	 	21	 

(ii)

 

	 	 	 	 	 
	 	 	Part Two, Page #	 
	21. HAZARDOUS SUBSTANCES
	 	 	21	 
	22. INTERPRETATIVE
	 	 	21	 
	22.1. Captions
	 	 	21	 
	22.2. Attachments
	 	 	21	 
	22.3.
Number, Gender, Defined Terms
	 	 	22	 
	22.4. Entire Agreement
	 	 	22	 
	22.5. Amendment
	 	 	22	 
	22.6.
Severability
	 	 	22	 
	22.7. Time of Essence
	 	 	22	 
	22.8. Best Efforts
	 	 	22	 
	22.9. Binding Effect
	 	 	22	 
	22.10 Subtenancies
	 	 	22	 
	22.11. No Reservation
	 	 	22	 
	22.12 Consents
	 	 	22	 
	22.13. Legal Authority
	 	 	22	 
	22.14. Choice of Law
	 	 	23	 
	22.15. Temporary Occupancy
	 	 	23	 
	22.16. Termination Option
	 	 	23	 
	EXHIBIT A.
	 	 	1	 
	LEGAL DESCRIPTION
	 	 	1	 
	EXHIBIT B
	 	 	1	 
	FLOOR PLAN(s)
	 	 	1	 
	EXHIBIT C
	 	 	1	 
	EXHIBIT D
	 	 	1	 
	RULES & REGULATIONS
	 	 	1	 
	EXHIBIT E
	 	 	1	 
	CERTIFICATE OF ACCEPTANCES OF PREMISES
	 	 	1	 
	EXHIBIT F
	 	 	1	 
	WORK LETTER
	 	 	 	 
	EXHIBIT G
	 	 	1	 
	RIGHT OF FIRST NOTICE
	 	 	 	 

(iii)

 

PART TWO

SUPPLEMENTAL LEASE PROVISIONS

1.
PREMISES, COMMON AREAS, SERVICE AREAS

     1.1. Building. The term “Building” in this Lease will refer to “3400 Carlisle”, an
office building situated on a tract of land in the City of Dallas and County of Dallas, Texas,
described in Exhibit A of this Lease, and having a postal address of 3400 Carlisle Avenue,
Texas 75204-2530.

     1.2. Computation of Rentable Area.

          (a) Single Tenant Floor. With respect to a single tenant floor, “Rentable Area” will
mean the sum of (i) the floor area (in square feet) bounded by the inside surfaces of the exterior
glass walls of the Building, excluding standard openings in the floor slab used, for example, for
Building stairs, elevator and other shafts and vertical ducts (collectively, the “Excluded
Spaces”), and (ii) an allocation of the floor area of Common Areas and Service Areas located in or
serving the Building.

          (b) Multiple Tenant Floor. With respect to a multiple tenant floor, “Rentable Area”
will mean the sum of (i) the floor area (in square feet) bounded by the inside surfaces of the
exterior glass walls, the outside surfaces of partitions separating the Premises from corridors and
other Common Areas and Service Areas, and the center line of partitions separating the Premises
from adjoining leasable spaces, less any Excluded Spaces located within such boundaries, and (ii)
an allocation of the floor area of the Common Areas and Service Areas on such floor, and (iii) an
allocation of the floor area of Common and Service Areas located in or serving the Building.

          (c) Columns and Non-Standard Openings. No deductions will be made in
either Section 1.2(a) or Section 1.2(b) for (i) columns and projections necessary
to the structural support of the Building or (ii) for openings in the floor slab which were made at
the request of Tenant or to accommodate items installed at the request of Tenant.

     1.3. Minor Variations in Area. The Rentable Area of the Premises contained in the
Fundamental Lease Provisions has been calculated in accordance with the foregoing definitions and
is agreed to be the Rentable Area of the Premises regardless of minor variations resulting from
construction of the Building and/or tenant improvements.

     1.4.
Ceilings, Walls, Floors. Tenant acknowledges that pipes, ducts, conduits, wires
and equipment serving other parts of the Building may be located above acoustical ceiling surfaces,
below floor surfaces or within walls in the Premises.

     1.5 Condition of Premises. The taking of possession of the Premises by Tenant will
establish conclusively that the Premises and the Building were at such time in satisfactory order
and condition except for (i) minor matters of structural, mechanical, electrical, and finish
adjustment in the Premises (commonly referred to as “punchlist items”) specified in reasonable
detail on a list delivered by Tenant to Landlord within fifteen (15) days after the date on which
Tenant takes possession of the Premises and (ii) defects not discoverable upon inspection and about
which Tenant notifies Landlord within one (1) year after taking possession of the Premises.

     1.6 Common and Service Areas. Tenant is hereby granted a nonexclusive right to use
the Common Areas during the term of this Lease for their intended purposes, in common with others,
subject to the terms and conditions of this Lease, including, without limitation, the Rules and
Regulations.

          (a) Common Areas. “Common Areas” will mean all areas, spaces, facilities, and
equipment (whether or not located within the Building) made available by Landlord for the common
and joint use of Landlord, Tenant and others, including, but not limited to, tunnels, walkways,
sidewalks and driveways necessary for access to the Building, Building lobbies, landscaped areas,
enclosed mall areas, loading areas, public corridors, public

Office Building Lease — Study Island L.L.P. — Page 1

 

restrooms, Building stairs and elevators, drinking fountains and such other areas and facilities,
if any, as are designated by Landlord from time to time as Common Areas.

          (b) Service Areas. “Service Areas” will refer to areas, spaces, facilities and
equipment serving the Building (whether or not located within the Building) but to which Tenant
and other occupants of the Building will not have access, including, but not limited to,
mechanical, telephone, electrical and similar rooms, and air and water refrigeration equipment.

2. TERM

     2.1. Term. The Term of this Lease will commence on the date (“Commencement Date”) set
forth in a notice to be delivered by Landlord to Tenant as the date on which Tenant may take
possession of the Premises and will terminate on the date set forth in the Fundamental Lease
Provisions (“Expiration Date”) unless sooner terminated in accordance with the provisions of this
Lease.

     2.2. Delay in Commencement. If Landlord fails for any reason to tender possession of
the Premises to Tenant on the “Contemplated Commencement Date” (herein so called) set forth in the
Fundamental Lease Provisions, (i) Landlord will not be liable to Tenant for any direct or
consequential loss resulting to Tenant from the delay, (ii) the validity of this Lease will not be
affected, and (iii) the term of this Lease will not be extended.

     2.3. Holding Over. If Tenant, or any party claiming rights to the Premises through
Tenant, retains possession of the Premises without the written consent of Landlord after the
Expiration Date or earlier termination of this Lease, such possession will constitute a tenancy at
will, subject, however, to all the terms and provisions of this Lease except for (i) the Term and
(ii) the Base Annual Rent, which Base Annual Rent will become an amount equal to two (2) times the
highest amount set forth in this Lease as Base Annual Rent, plus any adjustments which have
previously occurred. No holding over by Tenant, and no acceptance of rental payments by Landlord
during a holdover period, whether with or without consent of Landlord, will operate to extend this
Lease.

3. MONETARY PROVISIONS

     3.1.
Base Annual Rent. Subject to the prepaid rent provisions of
Section 3.5, Tenant
will pay as the monthly installment of “Base Annual Rent” for each month of the Term, the sum set
forth in the Fundamental Lease Provisions, in advance on the first day of each calendar month of
the Term, without deduction, offset, prior notice, or demand, and in lawful money of the United
States. If the Commencement Date is not the first day of a calendar month, Tenant will pay to
Landlord on the Commencement Date a portion of the monthly installment of Base Annual Rent prorated
on the basis of a thirty (30) day month.

     3.2. Tenant’s Share of Certain Costs. In addition to all other sums due under this
Lease, Tenant will pay to Landlord, in the manner and at the times set forth below, Tenant’s
Pro-rata Share of Operating Costs for each calendar year or partial calendar year.

          (a) Operating Costs. “Operating Costs” will mean all costs, charges, and expenses
incurred by Landlord in connection with owning, operating, maintaining, repairing, insuring and
managing the Building and the Common Areas and Service Areas, computed on an accrual basis and
including, without limitation, costs, charges and expenses incurred with respect to the items
enumerated as “Operating Cost Examples” in Paragraph 2 of Exhibit C to this Lease,
but exclusive of electrical costs. Operating Costs will not include those items enumerated as
“Operating Cost Exclusions” in Paragraph 1 of Exhibit C to this Lease.

          (b) Pro Rata Share Computation. “Tenant’s Pro Rata Share” of Operating Costs will be
computed by multiplying the Operating Costs per square foot by the number of square feet of
Rentable Area in the Premises and subtracting from such product the amount of Landlord’s Operating
Cost Contribution set forth in Paragraph 5 of the Fundamental Lease Provisions.

          (c) Estimated Costs. Tenant’s Pro Rata Share of Operating Costs for the remainder of
the first calendar year (whether full or partial) and for each subsequent calendar year of the Term
will be estimated by Landlord, and notice of such estimated amounts will be given to Tenant at
least thirty (30) days prior to the

Office Building Lease — Study Island L.L.P. — Page 2

 

Commencement Date or the beginning of each calendar year, as the case may be. For each full
calendar year of the Term beginning with calendar year 2007, Tenant will pay to Landlord
each month, at the same time the monthly installment of Base Annual Rent is due, an amount equal
to one-twelfth (1/12) of the Tenant’s estimated Pro Rata Share of Operating due for such calendar
year. If the Expiration Date does not occur on December 31, for the partial calendar year
preceding the Expiration Date, Tenant will pay to Landlord, each month, at the same time the
monthly installment of Base Annual Rent is due, an amount equal to the amount of Tenant’s
estimated Pro Rata Share of Operating Costs for such partial calendar year divided by the number
of full calendar months of such partial calendar year.

          (d) Estimate Revisions. At any time and from time to time during the Term, Landlord
will have the right, by notice to Tenant, to change the monthly amount then payable by Tenant for
Tenant’s estimated Pro Rata Share of Operating Costs to reflect more accurately, in the reasonable
judgment of Landlord, Tenant’s actual Pro Rata Share of Operating Costs for the then current
calendar year. Tenant will begin paying the revised estimated amount together with the next
monthly payment of Base Annual Rent due after receipt by Tenant of Landlord’s notice.

          (e) Annual Adjustments. On or before April 1 of each calendar year, Landlord will
prepare and deliver to Tenant a statement setting forth the calculation of Tenant’s actual Pro Rata
Share of Operating Costs for the previous calendar year. Within thirty (30) days after receipt of
the statement of Tenant’s actual Pro Rata Share of Operating Costs, Tenant will pay to Landlord, or
Landlord will credit against the next rental or other payment or payments due from Tenant, as the
case may be, the difference between Tenant’s actual Pro Rata Share of Operating Costs for the
preceding calendar year and Tenant’s estimated Pro Rata Share of Operating Costs paid by Tenant
during such year.

          (f) Final Partial Year. If the Term will expire or this Lease has been terminated
prior to a final determination of the Tenant’s actual Pro Rata Share of Operating Costs, the
amount of adjustment between Tenant’s estimated Pro Rata Share and Tenant’s actual Pro Rata Share
of Operating Costs payable for the preceding calendar year and/or the final partial calendar year
of the Term will be projected by the Landlord based upon the best data available to Landlord at
the time of the estimate. Within thirty (30) days after receipt of a statement from Landlord
setting forth Landlord’s projections, Tenant will pay to Landlord, or Landlord will pay to Tenant,
as the case may be, the difference between Tenant’s projected actual Pro Rata Share of Operating
Costs for the period in question and Tenant’s estimated Pro Rata Share of Operating Costs paid by
Tenant for the period in question. The obligations set forth in the preceding sentence will
survive the Expiration Date or earlier termination of this Lease.

          (g) Adjustment for Occupancy. During any calendar year in which the Building has less
than full occupancy. Operating Costs will be computed as though the Building had been completely
occupied for the entire calendar year.

     3.3. Personal Property Taxes. Tenant agrees to pay, before delinquency, all taxes,
fees or charges, rates, duties and assessments, imposed, levied or assessed directly against
Tenant, or indirectly through Landlord, and payable during the Term hereof, upon Tenant’s
equipment, furniture, movable trade fixtures and other personal property located in the Premises.
Tenant will also pay, before delinquency, business and other taxes, fees or charges, rates, duties
and assessments imposed, levied or assessed because of the Tenant’s occupancy of the Premises or
upon the business or income of the Tenant generated from the Premises.

     3.4. Taxes for Leasehold Improvements. If any authority levying real and personal
property taxes against the Building as a standard practice for determining the value of the
Building for tax purposes includes a component for tenant improvement or nonmovable trade fixtures
of individual tenants, Tenant will pay to Landlord any portion of such taxes which is equal to the
product of (i) the total of such taxes multiplied by (ii) the fraction the numerator of which is
the cost of tenant improvements or nonmovable trade fixtures in the Premises in excess of the
Building standard or existing improvements (collectively, “Above Standard Improvements”) and the
denominator of which is the cost of all tenant improvements in the Building. Upon receipt of any
such tax statement, Landlord will compute Tenant’s share of taxes attributable to Above Standard
Improvements, and submit a statement to Tenant evidencing the method of calculation. Tenant will
pay to Landlord together with the next monthly installment of Base Annual Rent due after the
receipt of Landlord’s statement the entire amount due under this Section 3.4. The method
of calculation of the share of taxes attributable to Above Standard Improvements will be subject
to

Office Building Lease — Study Island L.L.P. — Page 3

 

 

adjustment by Landlord from time to time in order to reflect the method currently utilized by
taxing authorities to calculate taxes for Above Standard Improvements. If Tenant is assessed for
taxes for Above Standard Improvements directly by the taxing authorities, Tenant will pay the same
before delinquency and deliver to Landlord copies of receipts for payment of such taxes and
assessments no later than ten (10) days prior to the deadline for payment without imposition of
penalty.

     3.5. Prepaid Rent. Concurrently with Tenant’s execution of this Lease, Tenant will
pay to Landlord the sum specified in Paragraph 7 of the Fundamental Lease Provisions as
“Prepaid Rent” which sum will be credited to Base Annual Rent in the manner set forth in the
Fundamental Lease Provisions.

     3.6. Security Deposit. Contemporaneously with the execution of this Lease, Tenant
will pay Landlord the sum set forth in Paragraph 6 of the Fundamental Lease Provisions as
“Security Deposit” as security for the performance by Tenant under this Lease. If Tenant defaults
with respect to any provision of this Lease, Landlord may, but will not be required to, use, apply
or retain all or any part of the Security Deposit for the payment of any rent or any other sum in
default, or for the payment of any other amount which Landlord may spend or become obligated to
spend by reason of Tenant’s default, or to compensate Landlord for any other loss or damage which
Landlord may suffer by reason of Tenant’s default. If any portion of the Security Deposit is so
used or applied, Tenant will, upon demand therefor, deposit cash with Landlord in an amount
sufficient to restore the Security Deposit to the original amount. If Tenant fully performs every
provision of this Lease to be performed by Tenant, including surrender of the Premises in
accordance with Section 7.4, the Security Deposit will be returned to Tenant within thirty
(30) days after the Expiration Date. Tenant will not assign or encumber Tenant’s interest in the
Security Deposit and neither Landlord nor Landlord’s successors or assigns will be bound by any
such attempted assignment or encumbrance of the Security Deposit.

     3.7. Late Payments. Should Tenant fail to pay when due any installment of Base Annual
Rent on or before the fifth (5th) day of each calendar month, Interest will accrue from the date
on which such sum is due and such Interest, together with a “Late Charge” (herein so called) in an
amount equal to five percent (5%) of the installment then due, will be paid by Tenant to Landlord
at the time of payment of the delinquent sum. The Late Charge is agreed by Landlord and Tenant to
be a reasonable estimate of the extra administrative expenses incurred by Landlord in handling
such delinquency.

     3.8. Interest. Whenever reference is made in this Lease to the accrual of interest on
sums due Landlord or whenever any amount owed to Landlord is not paid when due, such sum will bear
interest (“Interest”) at an annual rate equal to the lesser of (i) two percent (2%) over the
“base” or “prime” rate published from time to time by Citibank, N.A., or (ii) the maximum lawful
rate.

     3.9. Administrative Reimbursement. In the event Landlord performs construction,
maintenance, or repairs for Tenant under Sections 7.3, 8.5 or 12.2 of this
Lease, Tenant will reimburse Landlord within five (5) days after receipt of an invoice from
Landlord for the cost of such construction, maintenance or repairs plus an amount equal to fifteen
percent (15%) of such costs (“Administrative Reimbursement”) to reimburse Landlord for
administration and overhead.

     3.10. Additional Rent. Any payments to be made by Tenant to Landlord under this Lease
in addition to the Base Annual Rent, whether or not denominated as rent, will be deemed to be
additional rent under this Lease for the purpose of securing their collection and will constitute
rent for purposes of Section 502 of the Bankruptcy Code. Landlord will have the same rights and
remedies upon Tenant’s failure to make such payments as for the nonpayment of Base Annual Rent.

     3.11 Electricity. Notwithstanding anything contained in this Lease to the contrary,
Operating Costs shall not include the cost of electricity, but the Base Annual Rent hereunder shall
be increased by an amount equal to Tenant’s pro rata share of the cost of electricity to the
Building (“Electrical Costs”), which pro rata share shall be equal to the product of (i) the
Electrical Costs and (ii) the fraction having a numerator equal to the Rentable Area of the
Premises and a denominator equal to the Rentable Area in the Building. The Electrical Costs used to
calculate Tenant’s pro rata share as heretofore described shall not include the cost of any
extraordinary electrical use by other tenants of the Building, where such costs are charged to such
tenants. Landlord may from time to time deliver to Tenant an invoice for such pro rata share of
Electrical Costs and Tenant shall make payment of such amount to

Office Building Lease — Study Island L.L.P. — Page 4

 

 

     Landlord within three (3) days of delivery of the invoice. Landlord from time to time shall also
have the option to make a good faith estimate of Tenant’s pro rata share of the Electrical Costs
for each upcoming year and, upon thirty (30) days’ written notice to Tenant, may require the
monthly payment of Base Rent to be adjusted in accordance with such estimate. Any amounts paid
based on such an estimate shall be subject to adjustment as hereafter provided when actual
Electrical Costs are available for such year.

     3.12 Method of Computation. Subject to the rights and remedies expressly granted to
Tenant under this Lease, Tenant understands and accepts the amounts and the methods to compute the
amounts of charges that may be assessed upon and to be paid by Tenant under this Lease. Tenant
agrees that this Lease states the amounts or the methods to compute the amounts of charges that may
be assessed upon and to be paid by Tenant under this Lease in compliance with Section 93.004 of the
Texas Property Code.

4. CONSTRUCTION

     In the event any construction of tenant improvements is necessary for the Premises, such
construction will be accomplished and the cost of such construction will be borne by Landlord
and/or Tenant in accordance with a separate Exhibit to this Lease (“Work Letter”) between Landlord
and Tenant. Except as expressly provided in this Lease or in the Work Letter, if any, Tenant
acknowledges that Landlord has not undertaken to perform any modification, alteration or
improvement to the Premises.

5. SERVICES AND UTILITIES

     5.1. Services by Landlord. Provided Tenant is not in default under this Lease, and
subject to the conditions and standards set forth in this Lease and to standards, limitations and
guidelines imposed by governmental authorities and utility companies, Landlord will furnish or
cause to be furnished the following services and utilities:

          (i) Heat and air conditioning to the Premises during “Normal Business Hours” (as
defined in
the Rules and Regulations), at such temperatures and in such quantities as Landlord determines are
reasonably necessary for the comfortable use and occupancy of the Premises for general office
purposes;

          (ii) Water at the normal temperature of the supply of water to the Building for
lavatory and
drinking purposes through fixtures installed by Landlord or by Tenant with Landlord’s consent;

          (iii) Janitorial cleaning services to those portions of the Premises which are used for
office purposes five (5) days per week (except on holidays observed by the Building);

          (iv) Twenty-four (24) hour, nonexclusive passenger elevator service and, when scheduled
through the Building management, nonexclusive freight elevator service to the floor(s) on which
the Premises are located;

          (v) Routine maintenance in the Common Areas;

          (vi) Replacement of Building standard light bulbs, fluorescent tubes, and ballasts in the
Premises; and

          (vii) Electric current to the Premises for Building standard office lighting and office
machines which consume electric current within the parameters set forth in Section
5.3(a)(i) of this Lease.

     (1) The obligation of Landlord to furnish electricity is subject to the rules
and
regulations of the supplier of electricity and of any municipal or other
governmental authority regulating the business of providing electricity. Landlord
is not liable to any Tenant for any failure or defect in the supply or character of
electricity furnished to the Premises due to any requirement, act, or omission of
the entity supplying electricity to the Building.

Office Building Lease — Study Island L.L.P. — Page 5

 

 

     (2) Landlord may, in its sole discretion, elect to reduce electricity usage
at the
Building by retrofitting the Building standard electrical fixtures and common area
electrical fixtures in the Building or by switching from electric heating to gas
heating for the Building heating system, and lease or purchase the capital
improvements related to those changes. If Landlord makes either or both of those
changes, Landlord may include the lease payments or amortized cost of the capital
improvements as part of the Electrical Costs for the Building so long as the amount
of lease payments or amortized cost included in Electrical Costs for the Building
does not exceed the amount of the savings in electricity costs as a result of the
capital improvements. If Landlord elects to switch to gas heating for the Building
heating system under this Section 5.1(vii)(4), then all applicable references in this
Lease to electricity and Electrical Costs for the Building will be deemed thereafter
to refer also to gas expenses for the Building heating system.

     5.2. Tenant’s Obligations. Tenant will pay for, prior to delinquency, all telephone
charges and all other materials and services not expressly the obligation of Landlord that are
furnished to or used by Tenant on or about the Premises during the Term of this Lease.

     5.3. Tenant’s Additional Service Requirements.

          (a) Additional Services Requiring Landlord Consent. Tenant will not, without
Landlord’s
prior consent, do the following:

               (i) Install or use special lighting beyond Building standard, or any
equipment,
machinery, or device in the Premises which requires a nominal voltage of more than one hundred
twenty (120) volts single phase, or which in Landlord’s reasonable opinion exceeds the capacity of
existing feeders, conductors, risers, or wiring in or to the Premises or Building, or which
requires amounts of water in excess of that usually furnished or supplied for use in office space,
or which will decrease the amount or pressure of water or the amperage or voltage of electricity
Landlord can furnish to other occupants of the Building;

               (ii) Install or use any heat or cold-generating equipment, machinery or
device which
affects the temperature otherwise maintainable by the heat or air conditioning system of the
Building;

               (iii) Use portions of the Premises for special purposes requiring greater or more difficult
cleaning work than office areas, such as, but not limited to, kitchens, reproduction rooms,
interior glass partitions, and non-Building standard materials or finishes; or

               (iv) Accumulate refuse or rubbish (A) in excess of that ordinarily accumulated in business
office occupancy or (B) at times other than Building standard cleaning times.

          (b) Providing Additional Services. If, in the reasonable opinion of Landlord,
additional
services to Tenant are necessary, Landlord will have the following rights:

               (i) Landlord may require that Tenant cease the activity or remove the item
(or
refuse to permit the activity or installation of the item), causing (or which will cause) the need
for such additional service, if Landlord and Tenant are not able to agree upon a mutually
satisfactory method for providing such additional services or, in the reasonable opinion of
Landlord, providing such additional service is not operationally or economically feasible;

               (ii) With respect to additional utility consumption, Landlord may
install and
maintain separate metering devices, or may cause periodic usage surveys to be prepared by an
engineer employed by Landlord for such purpose. The cost of the additional utility consumption
plus, if Landlord installs and maintains separate meters, the cost of such meters and their
installation, maintenance and repair, or if Landlord orders usage surveys, the cost of such
surveys, will be the obligation of Tenant;

               (iii) With respect to heat or cold generating equipment, Landlord may furnish additional heat
or air conditioning to the Premises, or install supplementary heating or air conditioning units in
the

Office Building Lease — Study Island L.L.P. — Page 6

 

 

Premises or elsewhere in the Building, or modify the existing heating or air conditioning system
in the Premises. The cost of additional heat or air conditioning, supplementary units, or
modifications to the existing system will be the obligation of Tenant;

               (iv) With respect to lighting beyond Building standard, Landlord may purchase and
replace, at the expense of Tenant, light bulbs and ballasts and/or fixtures; and/or

               (v) With respect to additional cleaning work, Landlord may instruct
Landlord’s
janitorial contractor to provide such services and the cost of such service will be the obligation
of Tenant;

          (c) After Hours Heat or Air Conditioning. Landlord will, upon request and at the cost
of Tenant, provide after hours heat or air conditioning. The cost of after hours heat or air
conditioning will be determined from time to time by Landlord and, upon request, confirmed in
writing to Tenant.

          (d) Payment. Tenant will pay to Landlord the cost of any additional service and any
other cost for which Tenant is obligated under Section 5.3(b) or (c) within five (5) days
after receipt of an invoice with respect to same from Landlord.

     5.4. Interruption of Utility Service. Landlord will use Landlord’s best efforts to
provide the services required of Landlord under this Lease. However, Landlord reserves the right,
without any liability to Tenant and without affecting Tenant’s covenants and obligations under this
Lease, to stop or interrupt or reduce any of the services listed in Section 5.1 or to stop
or interrupt or reduce any other services required of Landlord under this Lease, whenever and for
so long as may be necessary, by reason of (i) accidents or emergencies, (ii) the making of repairs
or changes which Landlord in good faith deems necessary or is required or is permitted by this
Lease or by law to make, (iii) difficulty in securing proper supplies of fuel, water, electricity,
labor or supplies, (iv) the compliance by Landlord with governmental, quasi-governmental or utility
company energy conservation measures, or (v) the exercise by Landlord of any right under
Section 6.5. Landlord will, in the event of an interruption of a utility service, use
commercially reasonable efforts to cause such service to be resumed. However, no interruption or
stoppage of any of such services will ever be construed as an eviction of Tenant nor will such
interruption or stoppage cause any abatement of the rent payable under this Lease or in any manner
relieve Tenant from any of Tenant’s obligations under this Lease. Landlord will not be liable for
any interruption or stoppage of any of such services or for any damage to persons or property
resulting from such stoppage.

6. OCCUPANCY AND CONTROL

     6.1. Use. The Premises will be used and occupied by Tenant for general office
purposes and for no other purposes. In no event shall the Premises be used for an educational
facility, telemarketing or a personnel agency. Tenant shall not maintain an occupancy ratio of no
more than one person for every three hundred thirty-three (333) square feet of Rentable Area in
the Premises at any given point in time during the Term, or any extension thereof, without
Landlord’s prior written consent.

     6.2. Rules and Regulations. Tenant’s use of the Premises and the Common Areas will be
subject at all times during the Term to the “Rules and Regulations” attached to the Lease as
Exhibit D and to any modifications of such Rules and Regulations and additional Rules and
Regulations promulgated by Landlord from time to time. Additional Rules and Regulations will not
become effective and a part of this Lease until a copy of same has been delivered to Tenant. The
inability of Landlord to cause another occupant of the Building to comply with the Rules and
Regulations will neither excuse Tenant’s obligation to comply with such Rules and Regulations or
any other obligation of Tenant under this Lease nor cause the Landlord to be liable to Tenant for
any damage resulting to Tenant. Tenant will cause Tenant’s employees, servants and agents to
comply with the Rules and Regulations. In the event of a conflict between a provision in the Rules
and Regulations and a provision in this Lease, the provision in this Lease will prevail.

     6.3. Additional Covenants of Tenant.

          (a) Laws, Statutes. Tenant will, at Tenant’s sole cost, promptly comply
with all laws,
statutes, ordinances, regulations, guidelines or requirements now in force or hereafter enacted and
with the

Office Building Lease — Study Island L.L.P. — Page 7

 

 

requirements of any governmental authority having jurisdiction over the Building, utility company
serving the Building or other similar body now or hereafter constituted, relating to or affecting
the condition, use or occupancy of the Premises, including without limitation, Title III of The
Americans with Disabilities Act of 1990, all regulations issued thereunder, and the Accessibility
Guidelines for Buildings and Facilities issued pursuant thereto, and the Texas Architectural
Barriers Act, as the same are in effect on the date of this Lease and as hereafter amended. The
judgment of any court of competent jurisdiction or the admission of Tenant in any action against
Tenant, whether Landlord is a party thereto or not, that Tenant has violated any of the foregoing
will be conclusive of that fact between Landlord and Tenant. Tenant will immediately furnish
Landlord with a copy of any notices received from any governmental agency, insurance company, or
inspection bureau in connection with the Premises.

          (b) Nuisance. Tenant will not do or permit anything to be done in or about the
Premises which will in any way obstruct or interfere with the operation of the Building or Common
Areas or with the rights of other tenants or occupants of the Building or Common Areas or injure,
disturb or annoy other tenants or occupants of the Building or Common Areas.

          (c) Building Reputation. Tenant will not use or permit the Premises to be used for
any objectionable purpose or any purpose which, in the reasonable opinion of the Landlord, harms
or tends to harm the business or reputation of the Landlord or Building or reflects unfavorably on
the Building, or any part of the Building, or deceives or defrauds the public.

          (d) Fire Hazards. Tenant will not cause, maintain or permit anything to be done in
the Premises nor keep or permit to be kept anything in the Premises which is prohibited by any
insurance company providing coverage for the Building or will, in the opinion of Landlord,
increase the possibility of fire or other casualty or increase the then existing premiums for or
void the coverage of any insurance upon the Building or contents of the Building.

          (e) Electrical Equipment. Tenant will not install, operate or maintain in the
Premises any electrical equipment which does not bear underwriter’s approval or which equipment
would, in the reasonable opinion of Landlord, overload any portion of the electrical system of the
Building.

          (f) Recording. Tenant will not record this Lease or any memorandum of this
Lease without
the prior written consent of Landlord. Tenant will, upon request of Landlord, execute, acknowledge
and deliver to Landlord a short form or memorandum of this Lease for recording purposes.

     6.4. Access by Landlord. Landlord reserves the right for Landlord and Landlord’s
agents to enter the Premises at any reasonable time, (i) to inspect the Premises, (ii) to supply
janitorial service or other services to be provided by Landlord to Tenant under this Lease, (iii)
to show the Premises to prospective lenders, purchasers or, during the last six (6) months of the
Lease Term, tenants, (iv) to alter, improve, maintain or repair the Premises or any other portion
of the Building abutting the Premises, (v) to install, maintain, repair, replace or relocate any
pipe, duct, conduit, wire or equipment serving other portions of the Building but located in the
ceiling, wall or floor of the Premises, (vi) to determine whether Tenant is complying with
Tenant’s obligations hereunder, (vii) to perform any other obligation of Tenant after Tenant’s
failure to perform same, or (viii) upon default by Tenant under this Lease. If Landlord enters the
Premises for the purpose of performing work, Landlord may erect scaffolding and store tools,
material, and equipment in the Premises when required by the character of the work to be
performed.

     6.5. Control of Building and Common Areas. The Building and Common Areas will be at
all times under the exclusive control, management and operation of the Landlord. Landlord hereby
reserves the right from time to time (i) to alter or redecorate the Building (including the Common
Areas or Service Areas) or construct additional facilities adjoining or proximate to the Building;
(ii) to close temporarily doors, entry ways, public spaces and corridors and to interrupt or
suspend temporarily Building services and facilities in order to perform any redecorating or
alteration or in order to prevent the public from acquiring prescriptive rights in the Common
Areas; and (iii) to change the name of the Building.

     6.6. Minimization of Disruption. Landlord will attempt not to disrupt Tenant’s
operations in the Premises during the exercise of Landlord’s rights or the performance by Landlord
of Landlord’s obligations under this Lease, but will not be required to incur extra expenses in
order to minimize such disruption. Tenant hereby

Office Building Lease — Study Island L.L.P. — Page 8

 

 

waives all claims for damages or injuries or interference with Tenant’s business, loss of occupancy
or quiet enjoyment and any other loss resulting from the exercise by Landlord of any right or the
performance by Landlord of Landlord’s obligations under this Lease. No exercise by Landlord of any
right or the performance by Landlord of Landlord’s obligations under this Lease will constitute
actual or constructive eviction or a breach of any express of implied covenant for quiet enjoyment.

7. REPAIRS, MAINTENANCE AND ALTERATIONS

     7.1. Landlord’s Repair Obligations. Landlord will, subject to the casualty provisions
of Article 9, maintain the (i) the Common Areas and Service Areas, (ii) roof, foundation,
exterior windows and load bearing items of the Building; (iii) exterior surfaces of walls, windows
and ceilings, floors and window coverings; (iv) plumbing, pipes and conduits located in the Common
Areas or Service Areas of the Building, and (v) the Building central heating, ventilation and air
conditioning, electrical, mechanical and plumbing systems. Landlord will not be required to make
any repair in connection with or resulting from (1) any alteration or modification to the Premises
or to Building equipment performed by, for or because of Tenant or to special equipment or systems
installed by, for or because of Tenant, (2) the installation, use or operation of Tenant’s
property, fixtures and equipment, (3) the moving of Tenant’s property in or out of the Building or
in and about the Premises, (4) Tenant’s use or occupancy of the Premises in violation of
Article 6 or in a manner not contemplated by the parties at the time of execution of this
Lease (e.g., subsequent installation of special use rooms), (5) the acts or omissions of Tenant
and Tenant’s employees, agents, invitees, subtenants, licensees or contractors, (6) fire or other
casualty, except as provided in Article 9, or (7) condemnation, except as provided in
Article 10. Depending upon the nature of repairs undertaken by Landlord, the cost of such
repairs will be borne solely by Landlord or reimbursed to Landlord either by a particular tenant
or tenants or by all tenants as an Operating Cost.

     7.2. Tenant’s Repair Obligations. Except for janitorial services provided by Landlord
and repairs required by Articles 9 and 10) of this Part Two to be performed by
Landlord, Tenant, at Tenant’s expense, will maintain the Premises in good order, condition and
repair including, without limitation, the interior surfaces of the windows, walls and ceilings;
floors; wall and floor coverings; window coverings; doors; interior windows; plumbing; electrical
systems within the Premises; and all switches, fixtures and equipment in the Premises. Upon
receipt of reasonable notice from Tenant, Landlord will perform, at the expense of Tenant, all
repairs and maintenance to plumbing, pipes and electrical wiring located within walls, above
ceiling surfaces and below floor surfaces resulting from the use of the Premises by Tenant. In no
event will Tenant be responsible for any plumbing, pipes and electrical wiring, switches, fixtures
and equipment located in the Premises but serving another tenant or for portions of the central
heat, ventilation and air conditioning, electrical, mechanical and plumbing systems of the
Building which are located in the Premises, except for (i) repairs resulting from the negligence
and/or acts of Tenant and Tenant’s employees, agents, invitees, subtenants, licensees or
contractors, (ii) modifications made to such systems by, for, or because of Tenant, and (iii)
special equipment installed by, for, or because of Tenant.

     7.3. Rights of Landlord. In the event Tenant fails, in the reasonable judgment of
Landlord, to maintain the Premises in good order, condition and repair, Landlord will have the
right to perform such maintenance, repairs, refurbishing or repairing at Tenant’s sole cost and
expense.

     7.4. Surrender. Upon the expiration or earlier termination of this Lease, or upon the
exercise by Landlord of Landlord’s right to re-enter the Premises without terminating this Lease,
Tenant will surrender the Premises in the same condition as received or as subsequently improved
by Landlord or Tenant, except for (i) ordinary wear and tear and (ii) damage by fire, earthquake,
acts of God or the elements for which damage Landlord has received all insurance proceeds, and
will deliver to Landlord all keys for the Premises and combinations to safes located in the
Premises. Tenant will, at Landlord’s option, remove, or cause to be removed, from the Premises or
the Building, at Tenant’s expense and as of Expiration Date or earlier termination of this Lease,
all signs, notices, displays, millwork, non-movable trade fixtures, or, subject to Subsection
7.5(d) of this Lease, any non-Building standard tenant improvements placed in the Premises or
the Building. Tenant agrees to repair, at Tenant’s expense, any damage to the Premises or the
Building resulting from the removal of any articles of personal property, movable business or
trade fixtures, machinery, equipment, furniture, movable partitions or non-Building standard
tenant improvements, including without limitation, repairing the floor and patching and painting
the walls where reasonably required by Landlord. Tenant’s obligations under this Section
7.4 will survive the expiration or earlier termination of this Lease. If Tenant fails to
remove any item of property permitted or required to be removed at the

Office Building Lease — Study Island L.L.P. — Page 9

 

 

expiration or earlier termination of the Term, Landlord, may, at Landlord’s option, (a) remove
such property from the Premises at the expense of Tenant and sell or dispose of same in such
manner as Landlord deems advisable, or (b) place such property in storage at the expense of
Tenant. Any property of Tenant remaining in the Premises ten (10) days after the Expiration Date
or earlier termination of this Lease will be deemed to have been abandoned by Tenant.

     7.5. Alterations by Tenant.

          (a) Approval Required. Tenant will not make, or cause or permit to be made, any
additions, alterations, installations or improvements in or to the Premises (collectively,
“Alterations”), without the prior written consent of Landlord. Unless Landlord has waived such
requirement in writing, together with Tenant’s request for approval of any Alteration, Tenant must
also submit details with respect to the proposed source of funds for the payment of the cost of the
Alteration by Tenant, design concept, plans and specifications, names of proposed contractors, and
financial and other pertinent information about such contractors (including without limitation, the
labor organization affiliation or lack of affiliation of any contractors), certificates of
insurance to be maintained by Tenant’s contractors, hours of construction, proposed construction
methods, details with respect to the quality of the proposed work and evidence of security (such as
payment and performance bonds) to assure timely completion of the work by the contractor and
payments by the contractor of all costs of the work. With respect to any Alteration which is
visible from outside the Premises, such proposed Alteration must, in the opinion of Landlord, also
be architecturally and aesthetically harmonious with the remainder of the Building.

          (b) Complex Alterations. If the nature, volume or complexity of any proposed
Alterations, causes Landlord to consult with an independent architect, engineer or other
consultant, Tenant will reimburse Landlord for the fees and expenses incurred by Landlord. If any
improvements will affect the basic heat, ventilation and air conditioning or other Building
systems or the Building, Landlord may require that such work be designed by consultants designated
by Landlord and be performed by Landlord or Landlord’s contractors.

          (c) Standard of Work. All work to be performed by or for Tenant pursuant hereto will
be performed diligently and in a first-class, workmanlike manner, and in compliance with all
applicable laws, ordinances, regulations and rules of any public authority having jurisdiction
over the Building and/or Tenant and Landlord’s insurance carriers. Landlord will have the right,
but not the obligation, to inspect periodically the work on the Premises and may require changes
in the method or quality of the work.

          (d) Ownership of Alterations. All Alterations made by or for Tenant (other than the
Tenant’s movable trade fixtures), will immediately become the property of the Landlord, without
compensation to the Tenant; provided, however, Landlord will have no obligation to repair,
maintain or insure such Alterations. Carpeting, shelving and cabinetry and wall partitions will be
deemed improvements of the Premises and not movable trade fixtures, regardless of how or where
affixed. Such Alterations will not be removed by Tenant from the Premises either during or at the
expiration or earlier termination of the Term and will be surrendered as a part of the Premises
unless such Alteration is not Building standard and Landlord has requested that Tenant remove
same. All non-Building standard improvements resulting from such Alteration will be subject to
removal.

     7.6. Liens . Tenant will keep the Premises and the Building free from any liens
arising out of work
performed, materials furnished, or obligations incurred by or on behalf of or for the benefit
of Tenant. If Tenant
does not, within ten (10) days following the imposition of any such lien, cause such lien to
be released of record by
payment or posting of a proper bond or other security, Landlord will have, in addition to all
other remedies provided
in this Lease and by law, the option, to cause the same to be released by such means as
Landlord deems proper,
including payment of the claim giving rise to such lien. All sums paid and expenses incurred
by Landlord in
connection therewith, including attorneys’ fees and a reasonable amount for Landlord’s
administrative time, will be
payable to Landlord by Tenant on demand with Interest from the date such sums are expended.

8.
INSURANCE

     8.1. Insurance Required of Tenant. Tenant will at Tenant’s sole cost and expense,
obtain and provide, on or before the Commencement Date, and will maintain in force and effect at
all times during the Term and during

Office Building Lease — Study Island L.L.P. — Page 10

 

 

any pre-term occupancy period, the following insurance coverages with respect to Tenant’s
operations and the Premises:

          (i) Comprehensive general liability insurance relating to the Premises and the
appurtenances
of the Premises on an occurrence basis with an aggregate limit in the amount set forth in the
Fundamental Lease Provisions. Such policy will name Landlord and any other parties designated by
Landlord from time to time, as “additional insureds.”

          (ii) Special Form (formerly “all risks”) property insurance providing coverage in an
amount
adequate to cover the replacement cost of all property owned by Tenant or for which Tenant is
legally liable and which is located within the Building, including without limitation, personal
property, decorations, trade fixtures, furnishings, equipment, and all fixtures, alterations,
leasehold improvements and betterments in the Premises made, installed or purchased by or on
behalf of Tenant. Such policy will be written in the name of Tenant, Landlord, and any other
parties designated by Landlord from time to time, as their respective interests may appear.

          (iii) Workers’ compensation insurance insuring against and satisfying Tenant’s
obligations and liabilities under the workers’ compensation laws of the State of Texas.

          (iv) Such additional policy limits or different insurance coverages on the Premises and
Tenant’s operation therein as may from time to time be reasonably requested by Landlord.

     8.2. Policy Form. All insurance required of Tenant will be in form and written by one
or more insurance companies reasonably satisfactory to Landlord. All such insurance may be carried
in a single policy or in a combination of primary and umbrella policies or under a blanket policy
covering the Premises and any other of Tenant’s offices. All such insurance will contain
endorsements that (i) such insurance may not be canceled or amended with respect to Landlord or
Landlord’s designees except upon thirty (30) days’ prior notice to Landlord and Landlord’s
designees by the insurance company, (ii) Tenant will be solely responsible for payment of premiums
and that Landlord and Landlord’s designees will not be required to pay any premiums for such
insurance, (iii) in the event of payment of any loss covered by such policy, Landlord or Landlord’s
designees will be paid first by the insurance company for Landlord’s loss, and (iv) Tenant’s
insurance is primary in the event of overlapping coverage which may be carried by Landlord. The
minimum limits of the commercial general liability policy of insurance required by Section
8.1(i) will in no way limit or diminish Tenant’s liability under this Lease. Tenant will
deliver to Landlord at least fifteen (15) days prior to the time such insurance is first required
to be carried by Tenant and thereafter at least fifteen (15) days prior to the expiration of such
policy, either a duplicate original or an ACORD 28 certificate of liability insurance on all
liability policies and an ACORD 28 evidence of commercial property insurance on all property
insurance procured by Tenant in compliance with Tenant’s obligations under this Lease, together
with evidence satisfactory to Landlord of the payment of the premiums therefor.

     8.3. Waiver of Subrogation. Landlord and Tenant release each other and any lessor
under a ground lease or any mortgagee of the Building from all claims or liabilities for damage to
the Premises or Building, damage to or loss of personal property within the Building, and loss of
business or revenues, that are covered by the releasing party’s property insurance or that would
have been covered by the required insurance if the party fails to maintain the property coverages
required by this lease. The party incurring the damage or loss will be responsible for any
deductible or self-insured retention under its property insurance. Landlord and Tenant will notify
the issuing property insurance companies of the release set forth in this Section 8.3 and will
have the property insurance policies endorsed, if necessary, to prevent invalidation of coverage.
This release will not apply if it invalidates the property insurance coverage of the releasing
party. The release in this Section 8.3 will apply even if the damage or loss is caused in
whole or in part by the negligence or strict liability of the released party, but will not apply
to the extent the damage or loss is caused by the gross negligence or willful misconduct of the
released party.

     8.4. Damage to Premises or Persons. Landlord will not be liable for the following:
(i) any loss of or damage to property of Tenant or of others located in the Premises or the
Building, by theft or otherwise, (ii) any injury or damage to persons or property or the interior
of the Premises resulting from fire, explosion, falling sheetrock, gas, electricity, water, rain,
snow or leaks from

Office Building Lease — Study Island L.L.P. — Page 11

 

 

any part of the Premises or from the pipes, appliances, or plumbing works or from the roof,
street, or subsurface or from any other place or by dampness or by any other cause of whatsoever
nature, (iii) any injury or damage caused by other tenants or any person(s) either in the Premises
or elsewhere in the Building, or by occupants of property adjacent to the Building or Common
Areas, or by the public or by the construction of any private, public, or quasi-public work, or
(iv) any latent defect in construction of the Building, even if the injury, damage or defect is
caused in whole or in part by the negligence or strict liability of Landlord, but will not apply
to the extent the damage or loss is caused by the gross negligence or willful misconduct of
Landlord.

     8.5 Proceeds from Property Insurance. In case of loss or damage, the proceeds of
Tenant’s insurance for leasehold improvements will be and are hereby assigned and made payable to
the Landlord or Landlord’s designee, and to the extent that such proceeds of insurance have been
paid to the Landlord or Landlord’s designee, such proceeds will at Landlord’s option, either be
used by Landlord to rebuild leasehold improvements or be released in monthly progress payments to
the Tenant (provided that the Tenant is not in default under this Lease) upon receipt of Tenant’s
written certification, together with a certificate of a third party architect engaged by Tenant and
approved by Landlord, stating that repairs to leasehold improvements for the previous month have
been satisfactorily completed free of liens by the Tenant’s contractor. In the event Tenant fails
to cause repairs to be made, Landlord will have an option to perform such repairs and apply such
proceeds to the cost of repairs. If insurance proceeds are inadequate to pay the full cost of such
repairs (including Administrative Reimbursement to Landlord in accordance with Section 3.10) Tenant
will pay any deficiency resulting from such repairs to Landlord within 5 days after receipt of an
invoice from Landlord.

     8.6. Landlord’s Insurance. Landlord will, during the Term of this Lease, procure and
continue in force the following insurance:

          (i) Comprehensive general liability insurance with an aggregate limit for bodily
injury and
property damage of not less than Two Million and No/100 Dollars ($2,000,000.00) for each
occurrence resulting from the operations of the Landlord or Landlord’s employees within the
Building.

          (ii) Building and property insurance covering the Building and all machinery,
equipment and
other personal property used in connection with the Building (but not property owned by any tenant
of the Building or for which any tenant of the Building is legally liable or alterations,
leasehold improvements, or betterments made, installed or purchased by or on behalf of any tenant
of the Building), in an amount not less than the replacement cost of same.

9. DAMAGE OR DESTRUCTION

     9.1. Repair by Landlord. Tenant will immediately notify Landlord of fire or other
casualty in the Premises. If the Premises are damaged by fire or other casualty and unless this
Lease is terminated as hereinafter provided, Landlord will proceed with reasonable diligence to
repair the so-called “shell” of the Premises and any leasehold improvements originally installed
by Landlord. Landlord’s obligation to repair is subject to (i) delays which may arise by reason of
adjustment of loss under insurance policies, including, without limitation, Tenant’s commercial
property policy described in Section 8.1 of this Lease, and (ii) other delays beyond
Landlord’s reasonable control. Landlord’s obligation to repair will be limited to the extent of
insurance proceeds actually available to Landlord for repairs after the election by the holder of
any mortgage against the Building to apply a portion or all of the proceeds against the debt owing
to such holder. Until Landlord’s repairs to the Premises are completed, the Base Annual Rent and
additional rent will abate in proportion to the part of the Premises, if any, that is rendered
untenantable. Tenant agrees during any period of reconstruction or repair of the Premises to
continue the operation of its business in the Premises to the extent reasonably practicable from
the standpoint of good business practices.

     9.2. Landlord’s Rights Upon The Occurrence of Certain Casualties. In the event:

          (i) either the Premises or the Building (whether or not the Premises are affected)
is totally or
partially destroyed or damaged by fire or other casualty and repairs cannot, in Landlord’s
reasonable judgment, be

Office Building Lease — Study Island L.L.P. — Page 12

 

 

completed within one hundred eighty (180) days after the occurrence of such damage without the
payment by Landlord of overtime or other premiums;

          (ii) fifty percent (50%) or more of the Rentable Area of the Building (wherever
located) is
damaged or destroyed by fire or other casualty (whether or not the Premises are affected thereby);

          (iii) damage is otherwise so great that Landlord, in Landlord’s absolute discretion,
decides to demolish the Building, in whole or in substantial part;

          (iv) insurance proceeds remaining after payment of any proceeds required to be paid to
the holder of any mortgage affecting the Building are insufficient to repair or restore the damage
or destruction;

          (v) the Building or the Premises are damaged or destroyed as a result of any cause
other than
the causes of loss covered by causes of loss-special form property insurance and, in Landlord’s
judgment, the cost of repairs will exceed five percent (5%) of the full insurable value of the
Building; or

          (vi) the Premises are materially damaged, in Landlord’s judgment, by fire or other
casualty during the last twenty-four (24) months of the Term;

Landlord may elect (a) to the extent of the insurance proceeds actually received by the Landlord,
to proceed to repair, restore or rebuild the Building or the Premises, in which event this Lease
will continue in effect, or (b) to terminate this Lease (effective as of the event of destruction)
upon thirty (30) days’ prior notice to Tenant, which notice will be given, if at all, within sixty
(60) days following the date of the occurrence of the destruction. In repairing or restoring the
Building or any part thereof, the Landlord may use designs, plans and specifications, other than
those used in the original construction of the Building and the Landlord may alter or relocate, or
both, any or all buildings, facilities and improvements, including the Premises, provided that the
Premises as altered or relocated will be substantially the same size and will be in all material
respects reasonably comparable to the Premises. Upon any such termination of this Lease, Tenant
will surrender to Landlord the Premises and deliver to Landlord all proceeds from Tenant’s
insurance attributable to tenant improvements and other additions, improvements, and property
items which Tenant has no right to remove. Tenant will pay Base Annual Rent and all other sums
payable under this Lease prorated through the effective date of such termination and Landlord and
Tenant will be free and discharged from all obligations under this Lease arising after the
effective date of such termination, except those obligations expressly stated in this Lease to
survive the termination of this Lease.

     9.3. Repairs by Tenant. Landlord will not be required to repair any injury or damage
by fire or other cause, to restore or replace or to reimburse Tenant for damage to any of the
Tenant’s property or any leasehold improvements installed in the Premises by Tenant. Landlord’s
obligations to repair leasehold improvements originally installed by Landlord will be subject to,
and limited to the extent of, receipt of adequate proceeds from Landlord’s Tenant’s insurance.
Tenant will be required to repair any injury or damage to the Premises or to the contents of the
Premises which Landlord is not responsible for repairing. Except for abatement, if any, of Base
Annual Rent and additional rent in accordance with the provisions of this Lease, Tenant will not
be entitled to any allowance, compensation or damages from Landlord for loss of use of all or any
part of the Premises or Tenant’s property or for any inconvenience, annoyance, disturbance or loss
or interruption of business, or otherwise, arising from any damage to the Premises or the Building
by fire or any other cause, or arising from any repairs, reconstruction or restoration, nor will
Tenant have the right to terminate this Lease.

10.
EMINENT DOMAIN

     10.1. Total Taking. If all of the Building will be taken or appropriated for public
or quasi-public use by right of eminent domain or transferred by agreement with such public or
quasi-public agency, this Lease will terminate as of the date possession is taken by the
condemning authority. If less than all of the Premises or Building will be taken or appropriated
but in Landlord’s reasonable judgment, the balance will be rendered untenable, Landlord will
notify Tenant of Landlord’s decision that the remainder is untenable within thirty (30) days of
Landlord’s receipt of notice of the taking or appropriation and this Lease will terminate as of
the date possession is taken by the condemning authority.

Office Building Lease — Study Island L.L.P. — Page 13

 

 

     10.2. Partial Taking. If only part of the Building (whether or not such part includes
the Premises) is taken or appropriated by a public or quasi-public agency under the right of
eminent domain or conveyed in agreement with a public or quasi-public agency (whether or not the
Premises are affected thereby) and, (i) in Landlord’s reasonable judgment, substantial alteration
or reconstruction of the Building is necessary as a result of such taking or conveyance, or (ii)
if Landlord decides to demolish or discontinue operating the Building as a result of such taking
or conveyance, or (iii) twenty-five percent (25%) or more of the Rentable Area of the Building is
so taken or conveyed or, in the reasonable judgment of Landlord, the Building is rendered
untenable as a result, or (iv) proceeds from such taking or conveyance remaining after payment of
any such proceeds required to be paid to the holder of any mortgage affecting the Building are
insufficient to restore the Building and the Premises to an architectural whole, then, in any of
such events, Landlord may, at Landlord’s option, terminate this Lease by giving Tenant notice of
termination within thirty (30) days after such taking or conveyance. In the event this Lease is
not terminated, Landlord will, to the extent of proceeds actually received after the exercise by
any mortgagee of the Building of an option to apply such proceeds against Landlord’s debt to such
mortgagee, restore the Building to an architectural whole.

     10.3. Award. Any award for or proceeds from any partial or entire taking or
conveyance to a public or quasi-public agency will be the property of Landlord, including, without
limitation, any award or proceeds based on value of the leasehold interest of Tenant. Nothing
contained in this Section 10.3 will be deemed to give Landlord any interest in or to
preclude Tenant from seeking and recovering for Tenant’s account a separate award from the
condemning authority (but only to the extent such separate award does not reduce any award to
Landlord) for the taking of personal property and fixtures removable by Tenant, for the
interruption of or damage to Tenant’s business or for Tenant’s unamortized cost of leasehold
improvements paid for by Tenant. In the event of a partial taking which does not result in a
termination of this Lease, Base Annual Rent and additional rent will be abated in the proportion
which the Rentable Area of the Premises rendered unusable bears to the total Rentable Area of the
Premises. No temporary taking of Tenant’s Premises and/or of Tenant’s rights therein or under this
Lease will terminate this Lease or give Tenant any right to any abatement of Base Annual Rent or
additional rent under this Lease. Any award made to Tenant by reason of any temporary taking will
belong entirely to Tenant and Landlord will not be entitled to share in such award.

11. ASSIGNMENT AND SUBLETTING

     11.1. Consent. Tenant will not assign this Lease or sublet all or any portion of the
Premises (collectively, “Transfer”) without the prior written consent of the Landlord. Landlord
will not unreasonably withhold consent to any Transfer (other than an encumbrance of Tenant’s
interest in this Lease) pursuant to this Paragraph 11.1. Landlord will not be deemed to have been
unreasonably withheld consent if: (i) Transferee’s financial condition is not reasonably
satisfactory to Landlord or does not evidence Transferee’s ability to pay its obligations under the
Lease when due; (ii) the net worth of Tenant (plus any guarantor) as of the date of this Lease or
the effective date of Transfer (whichever is greater) exceeds the net worth of Transferee (plus any
guarantor); (iii) Transferee refuses to provide additional security required by Landlord as a
result of a change in financial creditworthiness or legal structure; (iv) Transferee’s use of the
Premises conflicts with the permitted use or any exclusive usage rights granted to any other tenant
in the Building; (v) the use, nature, business, activities or reputation in the business community
of Transferee (or its principals, employees or invitees) is not acceptable to Landlord; (vi) an
uncured Event of Default exists under this Lease (or a condition exists which, with the passage of
time or giving of notice, would become an Event of Default); (vii) Transferee is an occupant of, or
Landlord is otherwise engaged in lease negotiations with Transferee for, other space in the
Project; (viii) Transferee is or has been involved in a dispute or litigation with Landlord; or (x)
Transferee fails to execute Landlord’s then-standard consent form containing an assumption by
Transferee of all obligations of Tenant accruing under this Lease after the date of Transfer. If
consent to any Transfer is given by Landlord, such consent will not relieve the Tenant or any
guarantor of this Lease from any obligation or liability under this Lease. If this Lease is
Transferred or any part of the Premises is occupied by any person other than the Tenant without the
consent of Landlord, the Landlord may nevertheless collect Base Annual Rent and additional rent
from the Transferee or occupant, and apply the net amount collected to the Base Annual Rent and
other amounts payable under this Lease but, in no event will such collection be construed as a
waiver of this covenant.

     11.2. Landlord’s Option. Tenant will notify Landlord at least forty-five (45) days in
advance of the effective date of a proposed Transfer. Tenant will provide Landlord with a copy
of the proposed Transfer, and

Office Building Lease — Study Island L.L.P. — Page 14

 

 

sufficient information concerning the proposed Transferee to allow Landlord to make informed
judgments as to the financial condition, reputation, operations and general desirability of the
proposed transferee. Within fifteen (15) days after Landlord’s receipt of Tenant’s proposed
Transfer and all required information concerning the proposed transferee, Landlord will have the
option to:

          (i) Cancel the Lease as to all of the Premises, if Tenant proposes to assign the
Lease or sublet
more than fifty percent (50%) of the Premises, or cancel the Lease as to the portion of the
Premises proposed to be sublet if Tenant proposes to sublet less than fifty percent (50%) of the
Premises; or

          (ii) Consent to the proposed Transfer, provided, however, (a) if the rent due and payable by
any Transferee under any such permitted Transfer (or a combination of the rent payable under such
Transfer plus any bonus or any other consideration for the Transfer or any payment incident to the
Transfer) exceeds the rent payable under the Lease for such space, Tenant will pay to Landlord
one-half (1/2) all of such excess rent and other excess consideration within ten (10)
days following receipt of such excess rent and/or consideration by Tenant and (b) if the proposed
Transferee is subject to compliance with additional requirements under The Americans with
Disabilities Act beyond those requirements which are applicable to the Tenant desiring to sublet
or assign, Landlord may condition Landlord’s consent upon receipt of plans and specifications
acceptable to Landlord for complying with the additional requirements and of security acceptable
to Landlord that such construction be completed timely and lien-free; or

          (iii) Refuse to consent to the proposed Transfer but allow Tenant to continue in the search
for a Transferee that will be acceptable to Landlord, which option will be deemed to be elected
unless Landlord gives Tenant notice providing otherwise.

     11.3. Definition of Transfer. The word “Transfer” in this Article 11 will
include (i) the pledging, mortgaging or encumbering of Tenant’s interest in this Lease, or the
Premises or any part thereof, and (ii) the total or partial occupation of all or any part of the
Premises by any person, firm, partnership, or corporation, or any groups of persons, firms,
partnerships, or corporations, or any combination thereof, other than Tenant, (iii) an assignment
or transfer by operation of law, and (iv) with respect to a corporation, partnership, or other
business entity, a transfer or issue by sale, assignment, bequest, inheritance, operation of law,
or other disposition, or by subscription, any part or all of the corporate shares of or partnership
or other interests in the Tenant, so as to result in any change in the present effective voting
control of the Tenant by the party or parties holding such voting control on the date of this
Lease. Upon the request of Landlord, Tenant will make available to the Landlord or to Landlord’s
representatives, for inspection all books and records of the Tenant necessary to ascertain whether
there has, in effect, been a change in control of Tenant. Item (iv) of this Section
11.3 will not apply to a corporation whose shares are traded on a nationally recognized stock
exchange.

     11.4. Legal Fees. All legal fees and expenses incurred by the Landlord in connection
with the review by the Landlord of the Tenant’s request pursuant
to this Article 11,
together with any legal fees and disbursements incurred in the preparation and review of any
documentation, will be the responsibility of the Tenant and will be paid by Tenant within five (5)
days from receipt of an invoice from Landlord, as additional rent.

12.
DEFAULT; REMEDIES

     12.1. Defaults by Tenant. The occurrence of any of the following will constitute a
default under this Lease by Tenant:

          (i) any failure by Tenant to pay an installment of Base Annual Rent or to make any
other
payment required under this Lease when due [except that the first time such failure occurs during
each calendar year, Tenant will not be in default unless Tenant fails to pay such sum within five
(5) days after notice from Landlord];

          (ii) any failure by Tenant to observe and perform any other provision of this Lease to be
observed and performed by Tenant, where such failure continues for twenty (20) days after notice
by Landlord to Tenant;

Office Building Lease — Study Island L.L.P. — Page 15

 

 

          (iii) failure to take possession or delivery of the Premises within ten (10) days after
notice from Landlord that the Premises are ready for occupancy, or abandonment of the Premises,
i.e., the failure by Tenant or Tenant’s employees to occupy the Premises for ten (10) consecutive
days;

          (iv) Tenant’s interest in this Lease or in all or a part of the Premises is taken by process
of law directed against Tenant, or becomes subject to any attachment at the instance of any
creditor of or claimant against Tenant, and such attachment is not discharged within ten (10)
days;

          (v) Tenant or any guarantor of Tenant’s obligations under this Lease: (a) is unable
to pay such
party’s debts generally as they become due; (b) makes an assignment of all or a substantial part of
such party’s property for the benefit of creditors; (c) convenes or attends a meeting of such
party’s creditors, or any class thereof, for purposes of effecting a moratorium upon or extension
or composition of such party’s debts; (d) applies for or consents to or acquiesces in the
appointment of a receiver, trustee, liquidator, or custodian of such party or of all or a
substantial part of such party’s property or of the Premises or of Tenant’s interest in this Lease;
or (e) files a voluntary petition in bankruptcy or a petition or an answer seeking reorganization
under the Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization or
relief of debtors or an arrangement with creditors, or takes advantage of any insolvency law or
files an answer admitting the material allegations of a petition filed against such party in any
bankruptcy, relief, reorganization or insolvency proceedings;

          (vi) Tenant or any guarantor of Tenant’s obligations under this Lease takes any corporate
action to authorize any of the actions set forth in Section 12.1(v); or

          (vii) the entry of a court order, judgment or decree against Tenant or any guarantor of
Tenant’s obligations under this Lease, without the application, approval or consent of such party,
approving a petition seeking reorganization of such party or relief of debtors under the
Bankruptcy Code or any other law relating to bankruptcy, insolvency, reorganization, or relief of
debtors or granting an order for relief against it as debtor or appointing a receiver, trustee,
liquidator, or custodian of such party or of all or a substantial part of such party’s property or
of the Premises or of Tenant’s interest in this Lease, or adjudicating such party bankrupt or
insolvent, and such order, judgment or decree will not be vacated, set aside or dismissed within
sixty (60) days from the date of entry.

     12.2. Remedies. Upon the occurrence of any event under Section 12.1 (v), (vi) or
(vii), this Lease will automatically terminate without further action on the part of Landlord. Upon
the occurrence of any other of default enumerated in Section 12.1, Landlord will have the
option of (i) terminating this Lease by notice thereof to Tenant or (ii) continuing this Lease in
full force and effect or (iii) performing the obligation of Tenant.

          (a) Termination of Lease. In the event Landlord elects to terminate this
Lease, upon notice to
Tenant this Lease will end as to Tenant and all persons holding under Tenant, and all of Tenant’s
rights will be forfeited and lapsed, as fully as if this Lease had expired by lapse of time, and
there will be recoverable from Tenant: (i) the cost of restoring the Premises to good condition,
normal wear and tear excepted, (ii) all accrued, unpaid sums, plus Interest and late charges, if in
arrears, under the terms of this Lease up to the date of termination, (iii) Landlord’s cost of
recovering possession of the Premises, and (iv) rent and other sums accruing subsequent to the date
of termination pursuant to the holdover provisions of Section 2.3. In addition to the
foregoing amounts, Tenant will immediately pay Landlord an amount equal to the amount by which (i)
the present value at such time (determined using the discount rate on such date of the Federal
Reserve Branch Bank headquartered in Dallas, Texas) of the total Base Annual Rent for the remainder
of the Term exceeds (ii) the then fair market rental value (determined using the discount rate on
such date of the Federal Reserve Branch Bank headquartered in Dallas, Texas) of the Premises for
the balance of the Term. If such termination is caused by the failure to pay Base Annual Rent or
additional rent under this Lease and/or abandonment of a substantial portion of the Premises,
Landlord may elect, by notice to Tenant, to receive liquidated damages in an amount equal to the
product of (i) the monthly installment of Base Annual Rent for the month prior to the month in
which the Lease is terminated times (ii) 12. The Landlord will at once have all the rights of
re-entry upon the Premises, without becoming liable for damages, or guilty of a trespass.

Office Building Lease — Study Island L.L.P. — Page 16

 

 

          (b) Continuation
of Lease. In the event that Landlord elects to continue this Lease
in full force and effect, Tenant will continue to be liable for all rents. Landlord will
nevertheless have all the rights of re-entry upon the Premises without becoming liable for damages,
or guilty of a trespass. Landlord, after re-entry, may relet all or a part of the Premises to a
substitute tenant or tenants, for a period of time equal to or less or greater than the remainder
of the Term on whatever terms and conditions Landlord, at Landlord’s sole discretion, deems
advisable. Against the rents and sums due from Tenant to Landlord during the remainder of the
Term, credit will be given Tenant in the net amount of rent received from the new tenant after
deduction by Landlord for: (i) the costs incurred by Landlord in reletting the Premises
(including, without limitation, remodeling costs, brokerage fees and the like), (ii) the accrued
sums, plus Interest and late charges if in arrears, under the terms of this Lease, (iii)
Landlord’s cost of recovering possession of the Premises, and (iv) if Landlord elects to store
Tenant’s property in accordance with Section 7.4, the cost of storing any of Tenant’s
property left on the Premises after re-entry. Notwithstanding any provision in this
Section
12.2(b) to the contrary, upon the default of any substitute tenant or upon the expiration of
the term of such substitute tenant before the expiration of the Term hereof, Landlord may, at
Landlord’s election, either relet to another substitute tenant, or terminate this Lease and
exercise Landlord’s rights under Section 12.2(a) of this Lease.

          (c) Performance for Tenant. In the event that Landlord elects to perform the
obligation(s) of Tenant, all sums expended by Landlord effecting such performance (including
Administrative Reimbursement under Section 3.9), plus Interest thereon, will be due and
payable with the next monthly installment of Base Annual Rent. Such sum will constitute additional
rental under this Lease, and failure to pay such sums when due will enable Landlord to exercise
all of Landlord’s remedies under this Lease.

     12.3. Remedies Cumulative. All rights and remedies of Landlord under this Lease will
be nonexclusive of and in addition to any other remedy available to Landlord at law or in equity.

     12.4. Attorneys’ Fees. If legal action is necessary in order to enforce or interpret
this Lease, the prevailing party will be entitled to reasonable attorneys’ fees, costs and
disbursements in addition to any other relief to which such party is entitled.

     12.5. Waiver. No covenant, term or condition or the breach thereof will be deemed
waived, except by written consent of the party against whom the waiver is claimed and any waiver
of the breach of any covenant, term or condition will not be deemed to be a waiver of any
preceding or succeeding breach of the same or any other covenant, term or condition. Acceptance by
Landlord of any performance by Tenant after the time the same was due will not constitute a waiver
by Landlord of the breach or default of any covenant, term or condition unless otherwise expressly
agreed to by Landlord in writing.

     12.6. Landlord’s Lien. To assure payment of all sums due under this Lease and the
faithful performance of all other covenants of the Lease, Tenant hereby grants to Landlord an
express contract lien on and security
interest in all property, chattels or merchandise owned by Tenant which may be placed in the
Premises and also upon all proceeds of any insurance which may accrue to Tenant by reason of
damage or destruction of any such property. Landlord will have all the rights and remedies of
a secured party under the Texas Business and Commerce Code, and this lien and security
interest may be foreclosed by process of law. Upon request by Landlord, Tenant agrees to
execute and to deliver a financing statement in form sufficient to perfect the security
interest of Landlord under the Texas Business and Commerce Code. Tenant further agrees that
Landlord may file this Lease as a financing statement. The lien and security interest granted
in this Section 12.6 will be cumulative of and in addition to any statutory lien
rights in favor of Landlord, now or hereafter existing.

     12.7. Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor
disputes, acts of
God, inability to obtain labor or materials or reasonable substitutes therefor (provided such
inability does not arise
from the inability of Landlord to pay for same), governmental restrictions, governmental
regulations, governmental
controls, enemy or hostile governmental action, civil commotion, fire or other casualty, and
other causes beyond the
reasonable control of the Landlord, will excuse the performance by Landlord for a period of
time equal to any such
prevention, delay or stoppage, of any obligation Landlord is obligated to perform under this
Lease.

Office Building Lease — Study Island L.L.P. — Page 17

 

 

13. ESTOPPEL CERTIFICATES

     13.1. Acknowledgment of Commencement Date. Upon tender of possession of the Premises
to the Tenant and as often thereafter as may be requested by Landlord, Tenant will, within ten
(10) days after receipt of a request from Landlord, execute, acknowledge and deliver to Landlord a
statement in the form of Exhibit E which will (i) set forth the actual Commencement Date
and Expiration Date of the Term, and (ii) contain acknowledgments that Tenant has accepted the
Premises and that the Premises and Building are satisfactory in all respects.

     13.2. Certificates. Tenant will, within ten (10) days after receipt of a request from
Landlord or any mortgagee of Landlord, execute, acknowledge and deliver to Landlord or such
mortgagee either a statement in writing or a three party agreement among Landlord, Tenant and such
mortgagee (i) certifying that this Lease is unmodified and in full force and effect (or, if
modified, stating the nature of such modification and certifying that this Lease, as so modified,
is in full force and effect) and the date to which Base Annual Rent and other charges are paid in
advance, if any; (ii) acknowledging that there are not, to Tenant’s knowledge, any uncured
defaults on the part of Landlord under this Lease, or specifying such defaults if any are claimed,
and (iii) specifying any further information and agreeing to such notice provisions and other
matters reasonably requested by Landlord or such mortgagee. Any such statement may be conclusively
relied upon by a prospective purchaser or mortgagee of the Premises. Tenant’s failure to deliver
such statement within ten (10) days will constitute a default under this Lease.

     13.3. Financial Statements. Landlord will have the right to request financial
statements from Tenant for purposes of selling, financing or refinancing the Building. Tenant will,
within ten (10) days after receipt of a request from Landlord setting forth the purposes for which
such financial statement will be used, deliver to Landlord a current financial statement certified
by Tenant’s chief financial officer to be true and correct and to fairly express Tenant’s current
financial condition. All such financial statements will be received by Landlord in confidence and
used only for the purpose set forth in the request.

14. SUBORDINATION AND ATTORNMENT

     This Lease is and will be subject and subordinate to all ground or underlying leases which now
exist or may hereafter be executed affecting the Building and to the lien and provisions of any
mortgages or deeds of trust now or hereafter placed against the Building or against Landlord’s
interest or estate in the Building or on or against any ground or underlying lease, and any
renewals, modifications, consolidations and extensions of such lease, without the necessity of the
execution and delivery of any further instruments on the part of Tenant to effect subordination. If
any mortgagee, trustee or ground lessor elects to have this Lease prior to the lien of such
mortgagee’s, trustee’s or ground lessor’s mortgage or deed of trust or ground lease, and gives
notice of such election to Tenant, this Lease will be deemed prior to the lien of such mortgage or
deed of trust or ground lease, whether this Lease is dated prior or subsequent to the date of such
mortgage, deed of trust, or ground lease, or the date of the recording thereof. Tenant will execute
and deliver upon request from Landlord, such further instruments evidencing the subordination of
this Lease to any ground or underlying lease, and to any mortgage or deed of trust. In the event
any proceedings are brought for default under any ground or underlying lease or in the event of
foreclosure or the exercise of the power of sale under any mortgage or deed of trust against the
Premises, Tenant will, upon request of any person or party succeeding to the interest of Landlord
as a result of such proceedings, attorn to such successor in interest and recognize such successor
in interest as Landlord under this Lease.

15. LANDLORD’S INTEREST

     15.1. Liability of Landlord. If Landlord defaults under this Lease and, if as a
consequence of such default, Tenant recovers a money judgment against Landlord, such judgment will
be satisfied only out of the right, title and interest of Landlord in the Building and Landlord
will not be liable for any deficiency. In no event will Tenant have the right to levy execution
against any property of Landlord or Landlord’s partners other than Landlord’s interest in the
Building. In no event shall Landlord ever be liable to Tenant for any consequential or special
damages under this Lease.

     15.2. Notice to Mortgagee. If Landlord defaults under this Lease and, if as a
consequence of such default, Tenant will have the right to terminate this Lease, Tenant will not
exercise such right to terminate unless and until (i) Tenant gives notice of such default
(specifying the exact nature of such default and how such default may be

     Office Building Lease — Study Island L.L.P. — Page 18

 

 

cured) to any lessor under a ground lease or any mortgagee of the Building who has notified Tenant
prior to such time of default of such lessor’s or mortgagee’s interest in the Building and mailing
address and (ii) such lessor and/or mortgagee fails to cure, or to cause to be cured, such default
within thirty (30) days after such lessor’s or mortgagee’s receipt of notice. Tenant agrees to
accept curative action, if any, undertaken by any such mortgagee as curative action by Landlord.

     15.3. Sale of Building. The term “Landlord” will mean only the owner at the time in
question of the fee title or a tenant’s interest in a ground lease of the Premises. The
obligations contained in this Lease to be performed by Landlord will be binding on Landlord and
Landlord’s successors and assigns only during their respective periods of ownership. In the event
of a sale of the Building or assignment of this Lease by Landlord, Landlord will have the right to
transfer the Security Deposit to Landlord’s vendee or assignee, subject to Tenant’s rights
therein, and Landlord will thereafter be released from any liability to Tenant with respect to the
return of the Security Deposit to Tenant. Tenant will, upon request of any person or party
succeeding to the interest of Landlord, attorn to such successor in interest and recognize such
successor in interest as Landlord under this Lease.

16. NOTICES

     All notices must be in writing even though some, but not all, provisions in this Lease refer
to “written notice(s)” or “notice(s) in writing.” All notices must be delivered personally; sent by
United States certified mail, postage prepaid, return receipt requested (“US Mail”); placed in the
custody of Federal Express Corporation or other nationally recognized overnight courier for next
day delivery (“Courier”); or transmitted by confirmed telephonic facsimile (“Fax”). Notices will be
deemed to be effective when received, if delivered personally; the next business day after posting,
if sent by US Mail; and the next business day, if sent by Courier or Fax. Receipt will include the
first attempt to deliver to the proper address by the party, United States Postal Service, or a
Courier. If notice is transmitted by Fax, a duplicate copy will be sent by either US Mail or
Courier no later than one business day after transmission by Fax. E-mail communications are solely
for the convenience of the parties and will not constitute valid or effective notice for purposes
of this Lease.

17. BROKERS

     Tenant represents and warrants that Tenant has had no dealings with any broker or agent [other
than the broker(s) specified in Paragraph 11 of the Fundamental Lease Provisions] in
connection with the negotiation or execution of this Lease.

18. INDEMNITY

     18.1 Definitions. The “Tenant Parties” are Tenant and its shareholders, members,
managers, partners, directors, officers, employees, agents, contractors, sublessees, licensees and
invitees. The “Landlord Parties” are Landlord, the Property manager, Landlord’s mortgagee(s) and
any affiliates or subsidiaries of the foregoing, and all of their respective officers, directors,
employees, shareholders, members, partners, agents and contractors. A “Beneficiary” is the
intended recipient of the benefits of an Indemnity, Waiver or obligation to Defend. “Claims” means
all damages, losses, injuries, penalties, costs, expenses (including attorneys’ fees and court
costs), demands, litigation, settlement payments, causes of action or judgments incurred by a
Beneficiary. “Indemnify” means to protect a party against a potential Claim and/or to compensate a
party for a Claim actually incurred. “Waive” means to relinquish a right and/or to release another
party from liability. “Defend” means to provide a competent legal defense of a Beneficiary against
a Claim with counsel reasonably acceptable (and at no cost) to the Beneficiary. The terms “Bodily
Injury”, “Property Damage” and “Personal Injury” will have the same meanings as in ISO commercial
general liability insurance form CG 0001 0196, without consideration as to any modifications,
exceptions or exclusions available for or included in such form.

     18.2. Indemnity and Waiver. Tenant Waives as to the Landlord Parties, and will
Indemnify and Defend the Landlord Parties against, all Claims arising, or alleged to arise, from
(i) Bodily Injury or Personal Injury suffered by any party and occurring in the Premises; (ii)
Bodily Injury or Personal Injury caused by a Tenant Party and occurring outside the Premises;
and/or (iii) Property Damage suffered by any party inside the Premises or caused or suffered by a
Tenant Party outside the Premises.

Office Building Lease — Study Island L.L.P. — Page 19

 

 

     18.3. Scope of Indemnities and Waivers. All Indemnities, Waivers and obligations to
Defend contained in this Lease are independent of, and will not be limited by, each other or any
insurance obligations in this Lease (whether or not complied with) and will survive the Expiration
Date.

     18.4. Negligence of the Beneficiary. All Indemnities, Waivers and obligations to
Defend contained in this Lease will be enforced to the fullest extent permitted by applicable law
for the benefit of a Beneficiary thereof, regardless of any extraordinary shifting of risks, and
even if the applicable Claim is caused by the sole, joint, concurrent or comparative negligence of
a Beneficiary, and regardless of whether liability without fault or strict liability is imposed
upon or alleged against a Beneficiary, but will not be enforced with respect to a Beneficiary to
the extent that a court of final resort holds a Claim is caused by the willful misconduct or gross
negligence of the Beneficiary.

19. SUBSTITUTION OF SPACE

     19.1. Substitute Space. Landlord reserves the right at any time prior to tender of
possession of the Premises to Tenant or during the Term of this Lease after the Commencement Date
and upon sixty (60) days’ prior notice (“Substitution Notice”) to substitute other space
(“Substitute Space”) within the Building for the Premises provided the Rentable Area of the
Substitute Space is approximately the same as the Rentable Area of the Premises.

     19.2. Maximum Base Annual Rent. The Base Annual Rent for the Substitute Space will be
computed by multiplying the number of square feet of Rentable Area in the Substitute Space by the
per rentable square foot Base Annual Rent for the Premises.

     19.3. Condition of Premises. If relocation occurs after the Commencement Date, Tenant
will have the election to take the Substitute Space “as is” or to have the Substitute Space
improved in substantially the same manner as the Premises, such election to be exercised by notice
delivered to Landlord within ten (10) days after Tenant’s receipt of the Substitution Notice.
Failure by Tenant to notify Landlord of Tenant’s election within the ten (10) day period will be
deemed to be an election to take the Substitute Space “as is”.

     19.4. Commencement of Rent. Rental for the Substitute Space will commence to accrue
within fifteen (15) days after Landlord tenders possession of the Substitute Space to the Tenant.
Tenant’s continued occupancy of the Premises after such fifteen (15) day period will be treated as
a holding over by Tenant under Section 2.3 hereof.

20. PARKING

     20.1. Parking Spaces. Landlord hereby grants to Tenant and persons designated by
Tenant a license to use the number of parking spaces set forth in Paragraph 12 of the
Fundamental Lease Provisions in that certain parking structure constructed within the Building
(“Garage”). The term of such license will commence on the Commencement Date and will continue
until the earlier to occur of the Expiration Date under the Lease or termination of the Lease or
Tenant’s abandonment of the Premises. During the term of this license, Tenant will pay Landlord
the monthly charges established from time to time by Landlord for parking in the Garage, payable
in advance, with Tenant’s payment of monthly installment of Base Annual Rental. The initial charge
for such spaces is set forth in Paragraph 12 of the Fundamental Lease Provisions. No
deductions from the monthly charge will be made for days on which the Garage is not used by
Tenant. However, Tenant may reduce the number of parking spaces hereunder, at any time, by
providing at least thirty (30) days’ advance written notice to Landlord, accompanied by any
key-card, sticker or other identification or entrance system provided by Landlord or its parking
contractor; such cancellation will be irrevocable. Tenant may, from time to time, request
additional parking spaces, and if Landlord provides the same, the spaces will be provided and used
on a month-to-month basis, and for such monthly parking charges as Landlord establishes from time
to time.

     20.2. Control of Parking. Tenant shall at all times comply with all applicable
ordinances, rules, regulations, codes, laws, statutes and requirements of all federal, state,
county and municipal governmental bodies or their subdivisions respecting the use of the Garage.
Landlord reserves the right from time to time to adopt, modify and enforce reasonable rules
governing the use of the Garage, including any key-card, sticker or other identification or
entrance system, and hours of operation. Landlord may refuse to permit any person who violates
such rules to park in the Garage, and any violation of the rules will subject the car to removal
from the Garage.

Office Building Lease — Study Island L.L.P. — Page 20

 

 

     20.3. Liability. The parking spaces hereunder will be provided on an unreserved
“first-come, first-served” basis. Tenant acknowledges that Landlord has or may arrange for the
Garage to be operated by an independent contractor, not affiliated with Landlord. In such event,
Tenant acknowledges that Landlord will have no liability for claims arising through acts or
omissions of such independent contractor. Landlord will have no liability whatsoever for any
damage to property or any other items located in the Garage, nor for any personal injuries or
death arising out of any matter relating to the Garage, and in all events, Tenant agrees to look
first to its insurance carrier and to require that Tenant’s employees look first to their
respective insurance carriers for payment of any losses sustained in connection with any use of
the Garage. Tenant hereby waives on behalf of Tenant’s insurance carriers all rights of
subrogation against Landlord or Landlord’s agents. Landlord reserves the right to assign specific
spaces, and to reserve spaces for visitors, small cars, handicapped persons and for other tenants,
guests of tenants or other parties, and Tenant and persons designated by Tenant hereunder will not
park in any such assigned or reserved spaces. Landlord also reserves the right to close all or any
portion of the Garage in order to make repairs or perform maintenance services, or to alter,
modify, restripe or renovate the Garage, or if required by casualty, strike, condemnation, act of
God, governmental law or requirement or other reason beyond Landlord’s reasonable control. If, for
any other reason, Tenant or persons properly designated by Tenant, are denied access to the
Garage, and Tenant or such persons will have complied with this
Section 20, Landlord’s
liability will be limited to parking charges (excluding tickets for parking violations) incurred
by Tenant or such persons in utilizing alternative parking, which amount Landlord will pay upon
presentation of documentation supporting Tenant’s claims in connection therewith.

     20.4.
Default, Remedies. If Tenant defaults under this Section 20, Landlord
will have the right to remove from the Garage any vehicles hereunder which are involved or are
owned or driven by parties involved in causing such default, without liability therefor
whatsoever. In addition, if Tenant defaults under this
Section 20, Landlord will have the
right to cancel Tenant’s parking spaces on ten (10) days’ written notice. If Tenant defaults with
respect to the same term or condition under this Section 20 more than three (3) times
during any twelve (12) month period, the next default of such term or condition during the
succeeding twelve (12) month period, will, at Landlord’s election, constitute an incurable
default. Such cancellation right will be cumulative and in addition to any other rights or
remedies available to Landlord at law or equity, or provided under this Lease.

21. HAZARDOUS SUBSTANCES

     The term “Hazardous Substances”, as used in this Lease will mean pollutants, contaminants,
toxic or hazardous wastes, or any other substances, the removal of which is required or the use of
which is restricted, prohibited or penalized by any “Environmental Law”, which term will mean any
federal, state or local law or ordinance relating to pollution or protection of the environment.
Tenant hereby agrees that (i) no activity will be conducted on the Premises that will produce any
Hazardous Substances, except for such activities that are part of the ordinary course of Tenant’s
business activities (“Permitted Activities”) provided the Permitted Activities are conducted in
accordance with any applicable Environmental Laws; (ii) the Premises will not be used in any
manner for the storage of any Hazardous Substances except for any materials that are used in the
ordinary course of Tenant’s business or standard janitorial and cleaning supplies typically found
in retail stores (“Permitted Materials”), provided such Permitted Materials are properly stored in
a manner and location meeting all Environmental Laws; (iii) Tenant will not permit any Hazardous
Substances to be brought onto the Premises, except for the Permitted Materials, and if so brought
or found thereon, the same shall be immediately removed, with proper disposal, and all required
cleanup procedures shall be diligently undertaken pursuant to all Environmental Laws. Tenant will
Indemnify and Defend Landlord against Claims of any nature arising from or as a result of the
violation of the provisions of this Article 21 by Tenant. The foregoing indemnification will
survive the termination or expiration of this Lease.

22. INTERPRETATIVE

     22.1. Captions. The captions of the Articles and Sections of this Lease are for
convenience only and will not affect the interpretation or construction of any provision of this
Lease.

     22.2. Attachments. Exhibits, addenda, schedules and riders attached hereto and listed
in the Table of Contents of the Lease (and no other exhibits, addendums, schedules and riders) are
deemed by attachment to constitute part of this Lease and are incorporated into this Lease.

Office Building Lease — Study Island L.L.P. — Page 21

 

 

     22.3.
Number, Gender, Defined Terms. The words “Landlord” and “Tenant”, as used in
this Lease, will include the plural as well as the singular. Words used in the neuter gender
include the masculine and feminine and words in the masculine or feminine gender include the other
and the neuter. If more than one person or entity constitutes Tenant, the obligations under this
Lease imposed upon Tenant will be joint and several.

     22.4. Entire Agreement. This Lease, including any exhibits and attachments hereto
listed in the Table of Contents, constitutes the entire agreement between Landlord and Tenant
relative to the Premises. Landlord and Tenant agree hereby that all prior or contemporaneous oral
and written agreements between and among themselves or their agents, including any leasing agent,
and representatives relative to the leasing of the Premises are merged in or revoked by this
Lease.

     22.5. Amendment. This Lease and the exhibits and attachments may be altered, amended
or revoked only by an instrument in writing signed by both Landlord and Tenant.

     22.6. Severability. If any term or provision of this Lease is, to any extent,
determined by a court of competent jurisdiction to be invalid or unenforceable, the remainder of
this Lease will not be affected thereby, and each remaining term and provision of this Lease will
be valid and be enforceable to the fullest extent permitted by law.

     22.7. Time of Essence. Time is of the essence of this Lease and each and every
provision of this Lease.

     22.8. Best Efforts. Whenever in this Lease or the Work Letter, if any, there is
imposed upon Landlord the obligation to use Landlord’s best efforts or reasonable efforts or
diligence, Landlord will be required to exert such efforts or diligence only to the extent the
same are economically feasible and will not impose upon Landlord extraordinary financial or other
burdens.

     22.9. Binding Effect. Subject to any provisions of this Lease restricting assignment
or subletting by Tenant and releasing Landlord upon sale of the Building, all of the provisions of
this Lease will bind and inure to the benefit of the parties to this Lease and their respective
heirs, legal representatives, successors and assigns.

     22.10. Subtenancies. The voluntary or other surrender of this Lease by Tenant, or a
mutual cancellation thereof, will not work a merger of estates and will, at the option of
Landlord, operate as an assignment to Landlord of any or all subleases or subtenancies.

     22.11. No Reservation. Submission by Landlord of this instrument to Tenant for
examination or signature does not constitute a reservation of or option for lease. This Lease will
be effective as a lease or otherwise only upon execution and delivery by both Landlord and Tenant.

     22.12. Consents. If Tenant requests Landlord’s consent under any provision of this
Lease and Landlord fails or refuses to give such consent, Tenant’s sole remedy will be an action
for specific performance or injunction.

     22.13. Legal Authority. In the event Tenant is a corporation (including any form of
professional association), then each individual executing or attesting this Lease on behalf of
such corporation hereby covenants, warrants and represents (i) that he is duly authorized to
execute or attest and deliver this Lease on behalf of such corporation in accordance with a duly
adopted resolution of the corporation’s board of directors and in accordance with such
corporation’s articles of incorporation or charter and bylaws; (ii) that this Lease is binding
upon such corporation; (iii) that Tenant is a duly organized and legally existing corporation in
good standing in the State of Texas; and (iv) the execution and delivery of the lease by Tenant
will not result in any breach of, or constitute a default under any mortgage, deed of trust,
lease, loan, credit agreement, partnership agreement or other contract or instrument to which
Tenant is a party or by which Tenant may be bound. If Tenant is a corporation, Tenant will, within
ninety (90) days from the date of this Lease, deliver to Landlord a copy of a resolution of
Tenant’s board of directors authorizing or ratifying the execution and delivery of this Lease,
which resolution will be duly certified to Landlord’s satisfaction by the secretary or assistant
secretary of Tenant.

Office Building Lease — Study Island L.L.P. — Page 22

 

 

          In the event Tenant is a partnership (general or limited), then each individual executing
this Lease on behalf of the partnership hereby covenants, warrants and represents (i) that he is
duly authorized to execute and deliver this Lease on behalf of the partnership in accordance with
the partnership agreement, or an amendment thereto, now in effect; (ii) that this Lease is binding
upon such partnership; (iii) that the Tenant is a duly organized and legally existing partnership
and has filed any and all certificates required by law; and (iv) the execution and delivery of
this Lease will not result in any breach of, or constitute a default under, any mortgage, deed of
trust, Lease, loan, credit agreement, partnership agreement, or other contract or instrument to
which Tenant is a party or by which Tenant may be bound.

     22.14. Choice of Law. This Lease will be construed under, governed by and enforced in
accordance with the laws of the State of Texas.

     22.15 Temporary Occupancy.

          (i) Beginning on the date Landlord substantially completes the Tenant Finish Work
(the “Temporary Occupancy Date”) and ending as of the Commencement Date (the “Temporary Occupancy
Term”), Tenant shall, at it sole cost and expense, occupy 3,800 square feet of the Premises (the
“Temporary Space”) as shown on Exhibit G attached to this Lease..

          (ii) Tenant accepts the Temporary Space under this Section 22.15 in its “as-is,
where is, with all faults” condition, and Landlord has no obligation to improve, restore, or refurbish the
Temporary Space under this Lease. Tenant has inspected the Temporary Space and: (i) accepts the
Temporary Space as suitable for the purposes for which it is provided under this Section 22.15;
(ii) accepts the Temporary Space as being in a good and satisfactory condition; and (iii) waives
any defects in the Temporary Space.

          (iii) Tenant
shall pay Landlord $6,523.33 per month (the “Temporary Occupancy Rent”) on the
first day of every month beginning as of the Temporary Occupancy Date, and continuing through the
remainder of the Temporary Occupancy Term. The Temporary Occupancy Rent for any partial calendar
month is prorated on a per diem basis.

          (iv) While occupying the Temporary Space under this Section 22.15, Tenant is subject to all
terms of this Lease, including the obligation to pay: (i) the Base Annual Rent specified in Part
One, Section 4, and (ii) Tenant’s Pro Rata Share of Operating Costs specified in Part One, Section
5.

     22.16 Termination Option. Tenant is currently in possession of Suite 325 of the
Building (the “Existing Premises”) pursuant to that certain Office Building Lease between 3400 Carlisle,
Ltd., as landlord, and Tenant, as tenant (the “Original Lease”). In the event Tenant desires to terminate the
Original Lease (the “Lease Option”), Tenant shall provide written notice thereof to Landlord prior to March 1, 2007 (the
“Lease Option Notice”). In the event Tenant timely delivers to Landlord the Lease Option Notice, Landlord
shall be entitled to show the Premises to prospective tenants at reasonable hours and, if the Premises are vacant,
to prepare them for re-occupancy, and Landlord and Tenant shall execute a lease termination agreement in
the form attached hereto as Exhibit G with respect to the Original Lease, and the Original Lease shall
be terminated as of May 31, 2007 (the “Termination Date”). In the event Tenant (i) fails to vacate the Original Premises
on or before the Termination Date or (ii) fails to execute the lease termination agreement, the Original Lease
will remain in full force and effect.

Office
Building Lease — Study Island L.L.P. — Page 23

 

 

EXHIBIT A

LEGAL DESCRIPTION

Exhibit A, page 1

 

EXHIBIT B

FLOOR PLAN(s)

Exhibit B, page 1

 

EXHIBIT C

OPERATING COST COMPUTATION

     1. Operating Cost Exclusions. The following are, without limitation, examples of
costs excluded from the computation of Operating Costs:

          (a) leasing commissions, attorneys’ fees, costs and disbursement and other expenses incurred
in connection with leasing, renovating or improving space for tenants or prospective tenants of
the Building;

          (b) costs incurred by Landlord in the discharge of its obligations under the Work
Letter;

          (c) costs (including permit, license and inspection fees) incurred in renovating or otherwise
improving or decorating, painting or redecorating space for tenants or vacant space;

          (d) Landlord’s costs of any services sold to tenants for which Landlord is entitled to be
reimbursed by such tenants as an additional charge or rental over and above the Base Annual Rent
and Operating Costs payable under the lease with such tenant or other occupant;

          (e) any depreciation and amortization on the Building except as expressly permitted
herein;

          (f) costs incurred due to violation by Landlord of any of the terms and conditions of this
Lease or any other lease relating to the Building;

          (g) interest on debt or amortization payments on any mortgages or deeds of trust or any other
debt for borrowed money;

          (h) all items and services for which Tenant reimburses Landlord outside of Operating
Costs or pays third persons or which Landlord provides selectively to one or more tenants or occupants of
the Building (other than Tenant) without reimbursement;

          (i) advertising and promotional expenditures;

          (j) repairs or other work occasioned by fire, windstorm or other work paid for
through insurance or condemnation proceeds; and

          (k) repairs resulting from any defect in the original design or construction of the
Building.

     2. Operating Cost Examples. The following are, without limitation, examples of costs
included within the computation of Operating Costs:

                    (i) garbage and waste disposal;

                    (ii) janitorial service and window cleaning for the Building and the Common Areas and Service
Areas (including materials, supplies, Building standard light bulbs and ballasts, equipment and
tools therefor and rental and depreciation costs related to any of the foregoing) or contracts
with third parties to provide same;

                    (iii) security;

                    (iv) insurance premiums (including, without limitation, property, rental value, liability and
any other types of insurance carried by Landlord with respect to the Building and the Common Areas
and Service Areas, the costs of which may include an allocation of a portion of the premium of a
blanket insurance policy maintained by Landlord);

Exhibit C, page 1

 

                    (v) business, excise or margin taxes payable on account of Landlord’s
ownership or operation of the Building (excluding any inheritance, estate, succession, transfer, gift,
corporation or income tax imposed upon Landlord);

                    (vi) real estate taxes, assessments, excises, and any other governmental levies and charges of
every kind and nature whatsoever, general and special, extraordinary and ordinary, foreseen and
unforeseen, which may during the Term be levied or assessed against, or arising in connection with
the use, occupancy, operation or possession of, the Building and the Common Areas and Service
Areas, or any part thereof, or substituted, in whole or in part, for a real estate tax, assessment,
excise or governmental charge or levy previously in existence, by any authority having the direct
or indirect power to tax, including interest on installment payments and all costs and fees
(including attorneys’ fees) incurred by Landlord in contesting or negotiating with taxing
authorities as to same; provided, however, Landlord will have the option to pay any of the
foregoing as rentals under a ground lease arrangement with the fee simple titleholder to the land
upon which the Building is, or is to be, constructed;

                    (vii) water and sewer charges and any add-ons;

                    (viii) charges for any easement maintained for the benefit of the Building or the Common Areas
and Service Areas;

                    (ix) license, permit and inspection fees;

                    (x) compliance with any fire safety or other governmental rules, regulations,
laws, statutes, ordinances or requirements imposed by any governmental authority or insurance company
with respect to the Building during the Term hereof;

                    (xi) wages, salaries, employee benefits and taxes (or an allocation of the foregoing) for
personnel working full or part time in connection with the operation, maintenance and management
of the Building and the Common Areas and Service Areas;

                    (xii) accounting and legal services (but excluding legal services in connection with
negotiations and disputes with specific tenants unless the matter involved affects all tenants of
the Building);

                    (xiii) administrative and management fees for the Building and Landlord’s overhead expenses
directly attributable to Building management;

                    (xiv) indoor or outdoor landscaping;

                    (xv) depreciation (or amortization) of Required Capital Improvements and Cost Savings
Improvements. “Required Capital Improvements” will mean capital improvements or replacements made
in or to the Building in order to conform to any law, ordinance, rule, regulation or order of any
governmental authority having jurisdiction over the Building, including, without limitations, The
Americans with Disabilities Act or Texas Architectural Barriers Act. “Cost Savings Improvements”
will mean any capital improvements or replacements which are intended to reduce, stabilize or
limit increases in Operating Costs. [The cost of Cost Savings Improvements will be amortized by
spreading such costs uniformly over a term equal to the lesser of (a) the period of years over
which the amount by which Operating Costs are reduced would be equal to the cost of such
installation or (b) ten (10) years. The cost of Required Capital Improvements and depreciable (or
amortizable) maintenance and repair items (e.g., painting of Common Areas, replacement of carpet
in elevator lobbies), will be amortized by spreading such costs uniformly over a term equal to the
lesser of (a) the period employed by Landlord for federal income tax purposes or (b) ten (10)
years.]

                    (xvi) Interest (as defined in Section 3.8 of the Supplemental Lease Provisions) upon
the undepreciated (or unamortized) balance of the original cost of items which the Landlord is
entitled to depreciate (or amortize) as an Operating Cost;

Exhibit C, page 2

 

                    (xvii) operation, maintenance, and repair (to include replacement of components) of the
Building, including but not limited to all floor, wall and window coverings and personal property
in the Common Areas, Building systems such as heat, ventilation and air conditioning system,
elevators, escalators, and all other mechanical or electrical systems serving the Building and the
Common Areas and Service Areas and service agreements for all such systems and equipment;

                    (xviii) charges for any easement maintained for the benefit of the Building or the Common
Areas and Service Areas;

                    (xix) license, permit and inspection fees;

                    (xx) compliance with any fire safety or other governmental rules, regulations, laws,
statutes, ordinances or requirements imposed by any governmental authority or insurance company
with respect to the Building during the Term hereof;

                    (xxi) wages, salaries, employee benefits and taxes (or an allocation of the foregoing) for
personnel working full or part time in connection with the operation, maintenance and management
of the Building and the Common Areas and Service Areas;

                    (xxii) accounting and legal services (but excluding legal services in connection with
negotiations and disputes with specific tenants unless the matter involved affects all tenants of
the Building);

                    (xxiii) administrative and management fees for the Building and Landlord’s overhead expenses
directly attributable to Building management;

                    (xxiv) indoor or outdoor landscaping;

                    (xxv) expenses and fees (including attorneys’ fees) incurred contesting of the validity or
applicability of any governmental enactments which may affect Operating Costs; and

                    (xxvi) the costs incurred by Landlord for (i) any and all forms of fuel or energy utilized in
connection with the operation, maintenance, and use of the Building, Common Areas and Service
Areas, (ii) sales, use, excise and other taxes assessed by governmental authorities on energy
sources, and (iii) other costs of providing energy to the Building, Common Areas and Service Areas.

     3. Landlord will credit against Operating Costs any refunds received as a result of tax
contests, after deduction for Landlord’s costs in connection with same.

     4. The foregoing provisions of this Exhibit C will not be deemed to require Landlord
to furnish or cause to be furnished any service or facility not otherwise required to be furnished
by Landlord pursuant to the provisions of this Lease, although Landlord, in Landlord’s absolute
discretion, may choose to do so from time to time.

Exhibit C, page 3

 

EXHIBIT D

RULES & REGULATIONS

	1.	 	Except as specifically provided for in this Lease, no sign, placard, picture, advertisement,
name or notice will be inscribed, displayed or printed or affixed on or to any part of the
outside or inside of the Building or the Premises without the written consent of Landlord
first having been obtained.
	 
	2.	 	Any directory of the Building provided by Landlord will be exclusively for the display of
the name and location of tenants in the Building, and Landlord reserves the right to exclude
any other names therefrom and may limit the number of listings per tenant. Tenant will pay
Landlord’s standard charge for Tenant’s listing thereon and for any changes by Tenant.
	 
	3.	 	Tenant will not place anything or allow anything to be placed near the glass of any window,
door, partition or wall which may appear unsightly from outside the Premises. No awnings or
other projections will be attached to the outside walls and roof of the Building without
prior written consent of Landlord. No curtains, blinds, shades or screens will be attached to
or hung in or used in connection with any window or door of the Premises without the prior
consent of Landlord.
	 
	4.	 	“Normal Business Hours” for purposes of Landlord’s obligation to provide air conditioning
(both heating and cooling) will mean 7:00 a.m. to 6:00 p.m. Monday through Friday and 7:00
a.m. to 1:00 p.m. on Saturday except for the following holidays: New Year’s Day, Presidents’
Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans’ Day, Thanksgiving and
Christmas.
	 
	5.	 	The Premises will not be used for the manufacturing or storage of merchandise except as such
storage may be incidental to the use of the Premises for the purposes permitted in this
Lease. The Premises will not be used for lodging or sleeping, or for any illegal purposes.
	 
	6.	 	The sidewalks, halls, passages, exits, entrances, elevators and stairways will not be
obstructed by any of the tenants or be used by them for any purpose other than for ingress to
and egress from their respective leased premises. The halls, passages, exits, entrances,
elevators, stairways, terraces and roof are not for the use of the general public, and
Landlord will in all cases retain the right to control and prevent access thereto by all
persons whose presence, in the judgment of Landlord, will be prejudicial to the safety,
character, reputation and interest of the Building and its tenants, provided that nothing
herein contained will be construed to prevent such access to persons with whom Tenant normally
deals in the ordinary course of business, unless such persons are engaged in illegal
activities. No tenant and no employee or invitee of any tenant will go upon the roof of the
Building.
	 
	7.	 	Except as expressly permitted in writing by Landlord, no additional locks or bolts of any
kind will be placed upon any of the doors or windows by Tenant, nor will any changes be made
to existing locks or the mechanisms thereof. Landlord will furnish two (2) keys for each lock
it installs on the Premises without charge to Tenant. Landlord will make a reasonable charge
for any additional keys requested by Tenant, and Tenant will not duplicate or obtain keys
from any other source. Tenant will upon the termination of the Term of this Lease return to
Landlord all keys so issued. The Tenant will bear the cost for the replacing or changing of
any lock or locks due to any keys issued to Tenant being lost.
	 
	8.	 	The toilets and wash basins and other plumbing fixtures will not be used for any purpose
other than those for which they were constructed, and no sweepings, rubbish, rags or foreign
substances will be thrown therein.
	 
	9.	 	No furniture, freight or equipment of any kind will be brought into the Building without the
consent of Landlord, and all moving of the same into or out of the Building will be done at
such time and in such manner as Landlord will designate. No furniture, packages, supplies,
equipment or merchandise will be received in the Building or carried up or down in the
elevators except between such hours and in such elevators that will be designated by
Landlord. There will not be used in any space or in the public areas of

Exhibit D, page 1

 

	 	 	the Building, either by Tenant or others, any hand trucks except those equipped with rubber
tires and side guards.
	 
	10.	 	No tenant will make or permit to be used any unseemly or disturbing noises, or disturb or
interfere with occupants of this or neighboring buildings or leased premises, whether by the
use of any musical instrument, radio, phonograph, unusual noise or in any other way. No
Tenant will throw anything out of doors or down the passage ways.
	 
	11.	 	Tenant will not use or keep in the Premises or the Building any kerosene, gasoline, or any
inflammable, combustible or explosive fluid, chemical or substance or use any method of
heating or air conditioning other than those supplied or approved by Landlord.
	 
	12.	 	Tenant will see that the windows and doors of the Premises are closed and surely locked
before leaving the Building. No tenant will permit or suffer any windows to be opened in the
Premises while the air conditioning is in operation except at the direction of Landlord.
Tenant must observe strict care and caution that all water faucets and other apparatus are
entirely shut off before Tenant and Tenant’s employees leave the Building, and that all
electricity, gas or air conditioning will likewise be carefully shut off so as to prevent
waste or damage; for any default or carelessness, Tenant will make good all injuries
sustained by all other tenants or occupants or Landlord of the Building.
	 
	13.	 	Landlord reserves the right to exclude or expel from the Building any person who, in the
judgment of Landlord, is intoxicated or under the influence of liquor or drugs, or who will in
any manner do any act in violation of any of the rules or regulations of the Building.
	 
	14.	 	The requirements of Tenant will be attended to only upon application at the office of
Building. Employees of the Landlord will not perform any work or do anything outside of their
regular duties unless under special instructions from Landlord, and no employees will admit
any person (Tenant or otherwise) to any office without specific instructions from Landlord.
	 
	15.	 	No tenant will disturb, solicit, or canvass any occupant of the Building, nor will Tenant
permit or cause others to do so, and Tenant will co-operate to prevent same by others.
	 
	16.	 	No vending machine or machines of any description will be installed, maintained or operated
upon the Premises without the written consent of Landlord. Tenant will not permit in the
Premises any cooking or the use of apparatus for the preparation of any food or beverages
(except where the Landlord has approved the installation of cooking facilities as part of the
Tenant’s leasehold improvements), nor the use of any electrical apparatus likely to cause an
overload of the electrical circuits.
	 
	17.	 	All persons entering and leaving the Building at any time other than during normal business
hours will register in the books kept by Landlord at or near the night entrance or entrances,
and Landlord will have the right to prevent any persons entering or leaving the Building
unless provided with a key to the premises to which such person seeks entrance, and a pass in
a form to be approved by Landlord and provided at Tenant’s expense. Any persons found in the
Building at such times without such keys or passes will be subject to the surveillance of the
employees and agents of Landlord. Landlord will be under no responsibility for failure to
enforce this rule.
	 
	18.	 	Tenant will not use any janitor closets or telephone or electrical closets for anything
other than their originally intended purposes. In the event Tenant will purchase privately
owned communications equipment for which telephone closets were not installed in connection
with initial occupancy of Tenant, such equipment will not be installed in existing telephone
closets.
	 
	19.	 	Tenant’s right to have heavy furnishings, equipment, and files in the Premises will be
limited to items weighing less than the load-bearing limits of floors within the Premises as
established by Landlord. Heavy items must be placed in locations approved in advance by
Landlord. Upon written demand from Landlord, Tenant will promptly remove from the Premises
any items which, in the judgment of Landlord, constitute a structural overload on floors
within the Premises. If Landlord approves the presence of a heavy item for

Exhibit D, page 2

 

	 	 	which reinforcement of the floor or other precautionary measures are necessary, Tenant will
bear the entire cost of such reinforcement or other precautionary measures. If the services
of a structural engineer are, in the judgment of Landlord, necessary to determine the
location for and/or precautionary measures to be taken in connection with any heavy load,
Landlord will engage such engineer, but the fees and expenses of such engineer will be paid
by Tenant upon demand.
	 
	20.	 	Tenant will not, without the prior written consent of Landlord, use the name or any
photograph, drawing or other likeness of the Building for any purpose other than as the
address of the business to be conducted by Tenant in the Premises, nor will Tenant do or
permit anything to be done in connection with Tenant’s business or advertising which, in the
reasonable judgment of Landlord, might mislead the public as to any apparent connection or
relationship between Landlord, the Building and Tenant.
	 
	21.	 	Tenant, its invitees, and employees shall be allowed to smoke only in those designated
smoking areas outside the building.

Exhibit D, page 3

 

EXHIBIT E

CERTIFICATE OF ACCEPTANCES OF PREMISES

           Re:     
 Office Building Lease for space in 3400 Carlisle, executed on the                     
day of                                         ,                     , between 3400 Carlisle, Ltd., as “Landlord”, and Study Island,
L.L.C., as “Tenant”.

Landlord and Tenant hereby agree that:

	1.	 	Except for those items shown on the attached “punch list” which Landlord will use Landlord’s
best efforts
to remedy within                      (   ) days from the date of this Certificate, Landlord has fully completed
the
construction work required under the terms of the Lease and the Work Letter.
	 
	2.	 	The Premises are tenantable, the Landlord has no further obligation for construction (except
as specified
above), and Tenant acknowledges that both the Building and the Premises are satisfactory in all respects.
	 
	3.	 	The Commencement Date of the Lease is the                      day of          
                               ,      
               .
	 
	4.	 	The Expiration Date of the Lease is be the 31st day of May,                     .

All other terms and conditions of the Lease are hereby ratified and acknowledged to be unchanged.

EXECUTED this                      day of                     ,                     .

	 	 	 	 	 	 	 	 	 	 	 
	TENANT:	 	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Study Island, L.L.C.	 	 	 	3400 Carlisle, Ltd., a texas limited partnership	 	 
	 	 	 	 	 	 	By: 3400 Carlisle, Inc., a Texas Corporation, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 /s/ ROBERT P. BREUNIG	 	 
	 

	 	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:
	 	Robert P. Breunig	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:
	 	President	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	ATTEST:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	Title:
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 

Exhibit E, page 1

 

 

EXHIBIT F

     This Workletter (“Workletter”) describes and specifies the rights and obligations of Landlord
and Tenant with respect to certain remodeling and refurbishment items to be completed in the
Premises.

     1. Definitions. Terms which are defined in the Lease shall have the same meaning in
this
Workletter. Additionally, as used in this Workletter, the following terms shall have the
following
meanings:

     (a) Allowance: An amount equal to but not in excess of $47,625.00 to be used to
complete the Refurbishment Items.

     (b) Cost of the Work: The cost of all materials and labor needed to complete the
installation of the Refurbishment Items.

     (c) Refurbishment Items: The following items of work to be completed in the
Premises:

     1. Install new Building standard carpet in the Premises.

     2. Paint all previously painted surfaces within the Premises.

     2. Color, finishes and materials. Each of the Refurbishment Items shall be completed
using
building standard materials and workmanship. As applicable, Tenant agrees to select all
colors, finishes
and building material types within ten (10) days of the execution of this Lease, and if such
selections are
not made within such date, Landlord may in its sole discretion select any building standard
materials,
colors and finishes available for such Refurbishment Items. Tenant shall furnish a space plan
or diagram
depicting the desired location for the Refurbishment Items within ten (10) days after the
execution of this
Lease, and if not furnished within such date, or if the locations so designated are not
acceptable to
Landlord for any reason, then Landlord may instead install such items in locations acceptable
to
Landlord.

     3. Performance of the Work and Costs. Landlord shall perform as construction manager
to
cause the Refurbishment Items to be completed, and the Cost of the Work shall include a
management fee
payable to Landlord in the amount of five percent (5%) of the cost of the materials and labor
needed to
complete the installation of the Refurbishment Items. Tenant shall be obligated to pay the
Cost of the
Work in excess of the Allowance. Provided, however, nothing in this Workletter should be
construed as
imposing an obligation on Landlord to complete the Refurbishment Items if the Cost of the Work
is
reasonably estimated by Landlord to exceed the Allowance. If the Cost of the Work is likely
to exceed
the Allowance, Landlord may, in its discretion, either complete those items which, in the
aggregate,
Landlord determines will not exceed the Allowance, or Landlord may make demand upon Tenant to
deposit an amount equal to the estimated excess necessary to complete the Refurbishment Items,
and
Tenant’s failure to deposit such amount shall relieve Landlord from any further obligation to
complete any
of the Refurbishment Items. Any cost savings achieved after completion of all Refurbishment
Items shall
be the property of Landlord, not Tenant, unless the final Cost of the Work exceeds the
Allowance amount
and sums are deposited by Tenant as aforesaid, in which case any surplus monies remaining
after
completion of construction shall be the property of Tenant. Notwithstanding the foregoing,
Tenant must
use any remaining balance of the Allowance within six (6) months of the Commencement Date.

Exhibit F, page 1

 

 

     4. Other. Except for the Refurbishment Items, Tenant is taking the Premises “As Is” in
its current condition and without benefit of further improvements. The agreement of Landlord to
perform the Refurbishment Items should not be construed as representing or warranting that such
work will render the Premises in compliance with any applicable laws, including the Americans with
Disabilities Act and the Texas Architectural Barriers Act, and it shall remain the sole
responsibility of Tenant to determine whether the Premises, with or without completion of the
Refurbishment Items, comply with all applicable laws. Within fifteen (15) days after Landlord
advises Tenant that the Refurbishment Items are completed, Tenant shall give Landlord a written
punchlist specifying any details which remain to be performed by Landlord with respect to any work
described in this Workletter; and except for the details contained in such written punchlist from
Tenant, all obligations of Landlord in regard to such work shall be deemed to have been satisfied.
Landlord shall have the right to enter the Premises to complete any such unfinished details, and
entry by Landlord, its agents, servants, employees or contractors for such purpose shall not
relieve Tenant of any of its obligations under the Lease or impose any liability on Landlord or its
agents, servants, employees or contractors. This Workletter embodies all representations,
warranties and agreements of Landlord and Tenant with respect to the matters described herein, and
this Workletter may not be altered or modified except by an agreement in writing signed by both
parties. In the event of conflict between the terms of this Workletter and any other exhibits or
addenda to this Lease, this Workletter shall prevail.

Exhibit F, page 2

 

 

EXHIBIT G

LEASE TERMINATION AGREEMENT

     This Lease Termination Agreement (this “Agreement”) is executed as of                                          
                   , 200     , between
                                                                                , a
                                                             (“Landlord”),
and                                                             , a              
        (“Tenant”).

RECITALS:

     A.                                                       
                   
       , a
                                        
(“Landlord”),
and                                                             , a                     
                     (“Tenant”) entered into that certain Lease
Agreement, dated                                          (the “Lease”; all capitalized terms used herein but not defined shall
have the meanings assigned to them in the Lease), for Suite                     , consisting of                      rentable square
feet of space, in the office building located at                                         ,                         
                ,
                                        , commonly known as                                       
  , which leased premises is more
particularly described in the Lease (the “Premises”); and

     [B. Landlord is the current owner of the Building and successor in interest to
Original Landlord under the Lease; and]

     C. Landlord and Tenant desire to terminate all obligations, liabilities and benefits
under the Lease in its entirety as hereinafter provided.

AGREEMENTS:

     For valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
Landlord and Tenant hereby agree as follows:

     1. Termination of Lease. Landlord and Tenant hereby terminate the Lease effective as
of
11:59 p.m.,                                         , 200      (the “Termination Date”).

     2. Surrender of the Premises. On or before the Termination Date, Tenant shall vacate and
surrender the Premises in the condition required under the Lease and remove all of Tenant’s
property from the Premises. If Tenant fails to so vacate the Premises, then Tenant shall be a
holdover tenant with respect thereto pursuant to Section ___  of the Lease (and shall pay to Landlord
the holdover rent with respect to the Premises as set forth in such Section ___). Any property of
Tenant that is not removed from the Premises or any other portion of the Building on or before the
Termination Date shall be conclusively deemed abandoned and Landlord may, without liability or
compensation to Tenant, use, sell or otherwise dispose of such property in Landlord’s sole
discretion.

     3. Access to the Premises. Notwithstanding anything to the contrary in the Lease,
from and after the date of this Agreement through the Termination Date, Landlord and its employees,
agents, contractors, and representatives shall have the right to enter the Premises for any
purpose, including without limitation, to show the Premises to prospective tenants and to permit
inspection of the Premises by space planners, contractors and other parties in connection with
improvements which may be constructed in the Premises.

     4. Release of Landlord. Upon the termination of the Lease as set forth above, Tenant
(for itself and any other party that may claim through or under Tenant) agrees that without further
acts,

Exhibit G, page 1

 

 

Landlord together with Landlord’s employees, agents, representatives, asset manager, consultants,
attorneys, fiduciaries, servants, officers, directors, partners, shareholders, members,
predecessors, successors and assigns (collectively, the “Landlord Released Parties”),
shall be released and forever discharged from any and all actions, causes of action, judgments,
executions, suits, investigations, debts, claims, demands, liabilities, obligations, damages, and
expenses of any and every character that arise out of or in any way connected to the Lease, or any
of the transactions associated therewith (collectively, the “Released Matters”), including,
without limitation, all Released Matters that are known or unknown, direct and/or indirect,
existing at law or in equity, of whatsoever kind or nature, whether heretofore or hereafter
accruing, for or because of any matter or thing done, omitted, or suffered to be done by any of
the Landlord Released Parties prior to and including the date of actual execution of this
Agreement by Landlord and Tenant, INCLUDING ANY AND ALL CLAIMS BASED IN WHOLE OR IN PART ON THE
NEGLIGENCE OR STRICT LIABILITY OF SUCH LANDLORD RELEASED PARTY. Tenant acknowledges and agrees
that Landlord shall have no liability whatsoever for any acts or omissions of any previous owner
of the Building.

     5. Release of Tenant. Upon the termination of the Lease as set forth above, Landlord (for
itself and any other party that may claim through or under Landlord) agrees that without further
acts, Tenant together with Tenant’s employees, agents, representatives, consultants, attorneys,
fiduciaries, servants, officers, directors, partners, predecessors, successors and assigns
(collectively, the “Tenant Released Parties”), shall be released and forever discharged from all
Released Matters, including, without limitation, all Released Matters that are known or unknown,
direct and/or indirect, existing at law or in equity, of whatsoever kind or nature, whether
heretofore or hereafter accruing, for or because of any matter or thing done, omitted, or suffered
to be done by any of the Tenant Released Parties prior to and including the date of actual
execution of this Agreement by Tenant and Landlord, INCLUDING ANY AND ALL CLAIMS BASED IN WHOLE OR
IN PART ON THE NEGLIGENCE OR STRICT LIABILITY OF SUCH TENANT RELEASED PARTY. Notwithstanding the
foregoing release, Tenant shall not be released from (a) any indemnity, hold harmless, or defense
obligation of Tenant under the Lease, (b) any obligation under this Agreement, (c) any claim
arising from or in connection with any inaccurate representation or warranty made by Tenant
hereunder, (d) any default by Tenant hereunder, or (e) any obligation to pay to Landlord any
underpayment by Tenant of [Additional Rent/Excess] payable with respect to calendar year                      following
the reconciliation of estimated and actual [Additional Rent/Excess] for calendar                      year pursuant to
Section                      of the Lease.

     6. Mechanic’s Lien. Tenant hereby represents and warrants that Tenant has not
engaged anyone who has provided materials or labor in connection with the Premises that would give
rise to the filing of a lien against the Premises or that such parties have been paid in full.

     7. No Transfer. Tenant represents and warrants to Landlord that Tenant is the owner
and holder of the leasehold estate of the “Tenant” under the Lease. Landlord and Tenant represent
and warrant to each other that each has not heretofore assigned or transferred, or purported to
assign or transfer, to any person, firm or corporation whatsoever, any claim, debt, liability,
demand, obligation, cost, attorneys’ fees, expense, action or cause of action herein released.

     8. Attorneys’ Fees. In the event of any legal action or proceeding brought by any
party against the other arising out of this Agreement, the prevailing party shall be entitled to
recover reasonable attorneys’ fees and costs incurred in such action (including, without
limitation, all costs of appeal) and such amount shall be included in any judgment rendered in such
proceeding.

     9. Entire Agreement. This Agreement contains all of the agreements of the parties
hereto with respect to the subject matter hereof and no prior agreement, understanding, or
representation pertaining to any such matter shall be effective for any purpose. No provision of
this Agreement may be amended

Exhibit G, page 2

 

 

except by an express agreement in writing signed by the parties hereto or their respective
successors in interest.

     10. Counterparts. This Agreement may be executed in multiple counterparts, each of
which shall constitute an original, but all of which shall constitute one document.

     11. Invalidity. If any covenant, condition, or provision herein contained is held to
be invalid by final judgment of any court of competent jurisdiction, the invalidity of such
covenant, condition, or provision shall not in any way affect any other covenant, condition, or
provision herein contained.

     12. Tenant’s Authority. Tenant and each person signing this Agreement on behalf of
Tenant represent to Landlord as follows: Tenant is a duly organized and existing ____________ under the
laws of the State of ____________; Tenant has full right and authority to enter into this Agreement;
Tenant’s execution of this Agreement does not result in the violation of any law or the
breach of any agreement to which Tenant may be bound; each person signing on behalf of
Tenant was and continues to be authorized to do so; and upon execution by Tenant and
Landlord, this Agreement shall be an enforceable agreement binding upon Tenant in accordance
with the terms hereof.

     13. Binding Effect; Controlling Agreement; Governing Law. The terms and provisions
hereof shall be binding upon and inure to the benefit of the parties hereto, their
transferees, representatives, successors and assigns. In the event of a conflict between the terms
and provisions of this Agreement and those contained in the Lease, the terms and provisions of this
Agreement shall control. This Agreement and the rights and duties of the parties hereto shall be
controlled by and interpreted in accordance with the laws of the State in which the Premises are
located.

     14. Prohibited Persons and Transactions. Tenant represents and warrants to Landlord
that Tenant is currently in compliance with and shall at all times remain in compliance with the
regulations of the Office of Foreign Asset Control (“OFAC”) of the Department of the Treasury
(including those named on OFAC’s Specially Designated and Blocked Persons List) and 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 relating thereto. Landlord represents and warrants to Tenant that
Landlord is currently in compliance with and shall at all times remain in compliance with the
regulations of the OFAC of the Department of the Treasury (including those named on OFAC’s
Specially Designated and Blocked Persons List) and 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 relating
thereto

[THE REMAINDER OF THIS DOCUMENT IS INTENTIONALLY LEFT BLANK.]

     Executed as of the date first written below.

Exhibit G, page 3

 

 

	 	 	 	 	 	 	 
	 	 	LANDLORD:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	TENANT:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

Exhibit G, page 4

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