Document:

Exhibit 10.39

 

SECOND AMENDMENT TO OFFICE LEASE

 

THIS
SECOND AMENDMENT TO OFFICE LEASE (this “Second
Amendment”) is entered into between CRESCENT
REAL ESTATE FUNDING VIII, L.P., a Delaware limited partnership (“Landlord”), and GAINSCO, INC.,
a Texas corporation (“Tenant”).

 

A.            Landlord, and
Tenant executed that certain Office Lease dated as of May 3, 2005 (the “Original Lease”) covering certain space designated as
Suite 1200, containing approximately 20,585 square feet of Rentable Area on the
12th floor (the “Original Premises”)
of the office building located at 3333 Lee Parkway, Dallas, Texas (the “Building”).

 

B.            The Original
Lease has been amended by that certain First Amendment to Lease dated July 13,
2005 (the “First Amendment”), pursuant
to which the Tenant leased an additional 11,130 Rentable Square Feet on the 11th
floor of the Building (the “First Preferential Space”).  The Original Lease, as modified by the First
Amendment is hereinafter collectively referred to as the “Lease”.  The Original Premises as expanded by the
First Preferential Space collectively consists of 31,715 square feet of
Rentable Area (the “Current Premises”).

 

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

 

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

 

1.             EXPANSION
SPACE.  Tenant leases from Landlord an additional
8,749 square feet of Rentable Area in Suite 1100 on the 11th floor
of the Building (the “Expansion Space”)
as depicted on the attached Exhibit A.
The Lease term for the Expansion Space shall run concurrent with the Term of
the Lease.  Effective upon the
Commencement Date (as defined in the Original Lease) the Expansion Space shall
be deemed a part of the Premises for all purposes.  Pursuant to Rider No. 2 of the Lease,
the Preferential Space has been reduced by the space Tenant has leased under
this Second Amendment and the First Amendment, and there is no space remaining
that is subject to Tenant’s Preferential Right to Lease, which right shall be
of no further force or effect.

 

2.             RENT.

 

(a)           Base Rent for the Expansion
Space.  Commencing upon the Commencement Date and
continuing through the Expiration Date (“CD” and “ED”, respectively in the table
below), the Base Rent due and payable for the Expansion Space shall be as
follows:

 

	
   

  	
   

  	
  Period

  	
   

  	
   

  	
   

  	
  Annual Rate

  Per RSF

  	
   

  	
  Monthly

  Base Rent

  	
   

  
	
  CD

  	
   

  	
  through

  	
   

  	
  Month 18

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  0.00

  	
   

  
	
  Month 19

  	
   

  	
  through

  	
   

  	
  Month 36

  	
   

  	
  $

  	
  17.50

  	
   

  	
  $

  	
  12,758.96

  	
   

  
	
  Month 37

  	
   

  	
  through

  	
   

  	
  Month 60

  	
   

  	
  $

  	
  18.50

  	
   

  	
  $

  	
  13,488.04

  	
   

  
	
  Month 61

  	
   

  	
  through

  	
   

  	
  Month 84

  	
   

  	
  $

  	
  19.50

  	
   

  	
  $

  	
  14,217.13

  	
   

  
	
  Month 85

  	
   

  	
  through

  	
   

  	
  ED

  	
   

  	
  $

  	
  20.50

  	
   

  	
  $

  	
  14,946.21

  	
   

  
														

 

(b)           Payment.  All rental shall be paid in accordance with
the terms and provisions of the Lease, as modified by this Second Amendment.

 

3.             ADDITIONAL
LEASEHOLD IMPROVEMENTS AND CONSTRUCTION ALLOWANCE.  Paragraph 3 of the Work Letter
attached as Exhibit
D to the Original Lease shall be further amended to provide that
the Construction Allowance shall include an additional amount not to exceed $196,852.50, toward the cost of constructing the
Landlord Work within the Premises (including the Original Premises, the First

 

3333 LEE
PARKWAY / GAINSCO, INC.

 

1

 

Preferential Space, and the Expansion Space).  Such additional Construction Allowance must
be utilized within the first full 48 calendar months of the Lease Term.  Modifications or supplements to the Approved
Construction Documents to accommodate construction of additional leasehold
improvements in the Expansion Space shall be handled in accordance with Paragraph 5(A) of the Work
Letter.  Upon Landlord’s approval, such
additional leasehold improvements to be constructed in the Expansion Space
shall become part of the Landlord Work.

 

4.             EARLY
TERMINATION. 
Tenant shall continue to have the option to terminate its lease of the
Original Premises and First Preferential Space on the terms and conditions
provided for in Section 3.D of the Original Lease.  In addition, Tenant shall have the option to
terminate its lease of the Expansion Space on the same terms and conditions,
except the termination of the lease of the Expansion Space shall be conditioned
on the payment of six (6) times (instead of four [4] times) the Base Rent
payable for the Expansion Space for the month immediately preceding the
Termination Date.  Tenant shall have the
option to terminate its lease of the Original Premises, the First Preferential
Space and the Expansion Space, separately, or all at the same time.

 

5.             PARKING.  Effective as of the Commencement Date, Tenant
shall be entitled to an additional 27 parking permits which allow access to
unreserved spaces in Parking Facilities. 
Any charges for such permits shall be abated for the initial Lease Term.

 

6.             SIGNAGE.  Effective as of the Commencement Date, Section 31.N
of the Lease shall be amended as follows:

 

(a)           The first sentence of Section 31.N(1)
shall be amended to read as follows:

 

During the
initial Term, but only so long as (a) Tenant occupies at least 31,715 Rentable
Square Feet in the Building, (b) no event of default remains uncured beyond the
expiration of any applicable cure period under the Lease, and (c) Tenant has not
subleased or assigned any of the Premises to entities or persons, who are not
Affiliates, Tenant shall have the right to install and maintain, at Tenant’s
sole expense, exterior signage identifying Tenant’s name in two locations on
the exterior façade of the Building (the “Signage”).  The Signage shall be located on the far
left-end of the façade as shown on Exhibit
F attached hereto
and on the far right side of the façade (which is not pictured on Exhibit F).  Notwithstanding condition (a) above, Landlord
and Tenant acknowledge that the portion of such space on the 11th
Floor will not be occupied initially, but Tenant shall be permitted to
immediately install and maintain the Signage. 
Tenant must, however, satisfy condition (a) by expiration of the first
48 months of the Lease Term.

 

(b)           The Exhibit F attached to the Lease is
deleted and replaced with the attached Exhibit
F.

 

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

 

8.             TIME
OF THE ESSENCE.  Time is of
the essence with respect to Tenant’s execution and delivery of this Second
Amendment to Landlord.  If Tenant fails
to execute and deliver a signed copy of this Second Amendment to Landlord by
5:00 p.m., September 30, 2005, this Second Amendment shall be deemed null and
void and shall have no force or effect, unless otherwise agreed in writing by
Landlord.  Landlord’s acceptance,
execution and return of this Second Amendment shall constitute Landlord’s
agreement to waive Tenant’s failure to meet such deadline.

 

2

 

9.             Miscellaneous.  This Second Amendment shall become effective
only upon its full execution and delivery by Landlord and Tenant.  This Second Amendment contains the parties’
entire agreement regarding the subject matter covered by it and supersedes all
prior correspondence, negotiations, and agreements, if any, whether oral or
written, between the parties concerning such subject matter.  There are no contemporaneous oral agreements,
and there are no representations or warranties between the parties not
contained in this Second Amendment.  All
exhibits referenced in this Second Amendment are incorporated by reference and
made a part hereof for all purposes. 
Except as modified by this Second Amendment, the terms and provisions of
the Lease shall remain in full force and effect, and the Lease, as modified by
this Second Amendment, shall be binding upon and shall inure to the benefit of
Landlord and Tenant, their successors and permitted assigns.

 

10.          Ratification.  Tenant confirms and ratifies that, as of the
date hereof, (a) the Lease is and remains in good standing and full force and
effect, and (b) Tenant has no claims, counterclaims, set-offs or defenses
against Landlord arising out of the Lease or in any way relating thereto or
arising out of any other transaction between Landlord and Tenant.

 

LANDLORD AND TENANT enter into
this Second Amendment as of the Effective Date specified below Landlord’s
signature.

 

	
  TENANT:

  	
   

  	
  LANDLORD:

  
	
  GAINSCO, INC., a Texas
  corporation

  	
   

  	
  CRESCENT REAL ESTATE
  FUNDING VIII,

  L.P., a Delaware limited partnership

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Glenn W. Anderson

  	
   

  	
   

  	
  By:

  	
  CRE Management VIII, LLC

  
	
   

  	
  Name:

  	
  Glenn W. Anderson

  	
   

  	
   

  	
  a Delaware limited
  liability company,

  
	
   

  	
   

  	
  President and CEO

  	
   

  	
   

  	
  its General Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  Crescent Real Estate
  Equities, Ltd.,

  
	
   

  	
   

  	
   

  	
   

  	
  a Delaware corporation,
  its Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/    Michael
  S. Lewis

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  	
  Leasing & Marketing

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Effective
  Date:  September 23, 2005

  
											

 

3Exhibit 10.15

 

 

Schedule of Executive Officer Compensation for 2005

 

Set forth below is a
description of the compensation that MathStar, Inc.
determined to pay to its executive officers (defined in Item 402(a)(3) of
Regulation S-K) in their current positions for the year ending December 31,
2005.

 

	
  Name

  	
   

  	
  2005 Base Salary

  	
   

  	
  Securities Underlying 2005 Stock Option Awards(#)(1)

  	
   

  	
  Securities Underlying 2005 Restricted Stock Awards(#)(2)

  	
   

  
	
  Douglas M. Pihl,

  President and Chief Executive Officer

  	
   

  	
  $246,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Ronald K. Bell,

  Chief Technology Officer

  	
   

  	
  $240,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  Daniel J. Sweeney,

  Chief Operating Officer(3)

  	
   

  	
  $180,000

  	
   

  	
  183,334

  	
   

  	
  83,334

  	
   

  
	
  Dean J. Westman,

  Vice President, Sales(4)

  	
   

  	
  $175,000

  	
   

  	
  —

  	
   

  	
  —

  	
   

  
	
  James W. Cruckshank,

  Chief Financial Officer and 

  Vice President, Administration(5)

  	
   

  	
  $175,000

  	
   

  	
  145,000

  	
   

  	
  75,000

  	
   

  
	
  Sean P. Riley,

  Vice President, Marketing(6)

  	
   

  	
  $170,000

  	
   

  	
  100,000

  	
   

  	
  83,334

  	
   

  
	
  Timothy A. Teckman,

  Vice President, Engineering(7)

  	
   

  	
  $150,000

  	
   

  	
  91,667

  	
   

  	
  91,667

  	
   

  
	
  Bryon K. Bequette,

  General Counsel

  	
   

  	
  $70,000

  	
   

  	
  66,667

  	
   

  	
  —

  	
   

  

(1)          Under the MathStar,
Inc. 2004 Amended and Restated
Long-Term Incentive Plan, each
of these executive officers has been granted stock option awards for the number
of shares noted.  The stock option awards
granted to Messrs. Sweeney, Cruckshank, Riley
and Teckman vest as to 25% of the shares subject to
the option on the first, second, third and fourth anniversary dates of the date
of grant. The stock option award granted to Mr. Bequette
vested in full on the date of grant. The stock options have a term of 10 years.
The stock option award granted to Messrs. Sweeney, Riley and Teckman have a per share exercise price of $4.80. The stock
option awards granted to Messrs. Cruckshank and Bequette have a per share exercise price of $6.3. 0ur board
of directors has determined the per share exercise price to be equal to the
fair market value of our common stock on the date each option was granted.

 

 

(2)          Under the MathStar,
Inc. 2004 Amended and Restated
Long-Term Incentive Plan, each
of these executive officers has been granted restricted stock awards for the
number of shares noted.  Restricted stock awards vest upon the
effective date of an initial public offering of our equity securities,
including this offering, the sale or other transfer of all or substantially all
of our assets, our liquidation or dissolution, any person becomes the owner of
more than 50% of the combined voting power of our outstanding voting securities
who was not previously the owner of at least 50% of such securities, or a
merger if our stockholders immediately before the effective date of such merger
own immediately after the effective date of such merger securities of the
surviving company representing less than 50% of the voting power of the
surviving corporation’s securities.  In
addition, the board or the compensation committee of the board has the power to
delay the vesting of the shares of restricted stock subject to the award for up
to one year after the occurrence of any such event.

 

(3)          Pro rated from March 14,
2005.

 

(4)          Mr. Westman is a party to a
Variable Compensation Plan that covered the period from March 1, 2005 through September
6, 2005, under which he was entitled to receive cash bonuses based on the
number of design wins he achieved and a percentage of revenue generated from
orders he obtained.  Mr. Westman's salary
is pro rated through September 6, 2005. 
In connection with Mr. Westman's termination of employment, MathStar
agreed to pay him $88,000.  This payment
will be made upon the expiration on October 10, 2005 of rescission periods
imposed by law if Mr. Westman does not rescind the agreement during these
periods.

 

(5)          Pro rated from June 20,
2005.

 

(6)          Pro rated from April 25, 2005.

 

(7)          Pro rated from April 4, 2005.

 

 

 

Schedule of Director Compensation for 2005

 

Set
forth below is a description of the compensation that MathStar,
Inc. determined to pay to its directors for the year ending December 31, 2005.

Cash Compensation

 

	
  Retainer:

  	
   

  	
  $1,500
  per quarter

  
	
  Board
  Meeting Fee:

  	
   

  	
  $750
  per meeting

  
	
  Audit
  Committee:

  	
   

  	
  $1,000
  per meeting for chairman, $750 per meeting for members

  
	
  Other
  Committees:

  	
   

  	
  $750
  per meeting for chairman, $500 per meeting for members

  

 

Equity Compensation

 

	
  Initial Option Grant: 

  	
   

  	
  25,000 share option,
  vesting over three years on the first, second and third anniversary dates of
  the date of grant if the director is then a director of MathStar.  Messrs. Benno G.
  Sand, Merrill A. McPeak and Morris Goodwin, Jr.
  will each receive an option to purchase 25,000 shares on the effective date of
  MathStar's initial public offering.

  
	
  Annual Grant: 

  	
   

  	
  5,000 share option,
  vesting 1 year after grant if the director is then a director of MathStar

  

 

The exercise prices of
the options will be equal to the fair market value of MathStar's common stock
on the date of grant.

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