Document:

exv10w30

Exhibit 10.30

PROPERTY MANAGEMENT AGREEMENT 

     For reference purposes only this Property Management Agreement is dated as of June ___,
2010. This Property Management Agreement is entered into between YPI 1010 Lamar, LLC, a Delaware
limited liability company (“Owner”) and Younan Properties, L.P., a Maryland limited
partnership (“Manager”), who hereby agree as follows:

ARTICLE 1

APPOINTMENT AND TERM

     Section 1.1 Appointment. Owner hereby appoints Manager to manage the office buildings
(and related land and other improvements), as set forth in Exhibit A (herein after referred to
collectively as the “Properties”, or individually as a “Property”).

     Section 1.2 Term. This Agreement is for a term (the “Term”) of approximately
thirty-six (36) months commencing on the date hereof and ending on June ___, 2013. This Agreement
shall then automatically renew and continue in full force and effect for successive periods of
thirty six (36) months unless terminated by either party hereto with thirty (30) days prior written
notice to the other party.

     Section 1.3 Termination. Both Owner and Manager agree that this Agreement shall
terminate upon the earlier of (a) a sale of the Properties, or (b) upon thirty (30) days prior
written notice of such termination from either party.

     Section 1.4 Independent Contractor. Owner retains Manager as an independent
contractor to manage the Properties. Manager shall be responsible for hiring employees and
determining methodology for management in accordance with this Agreement. Except in emergency
situations, Manager’s authority to act on behalf of Owner is limited to that which is expressly
delegated herein.

ARTICLE 2

MANAGEMENT

     Section 2.1 Manager’s Duties. With regard to management of the Properties, Manager
agrees, at the cost and expense of Owner, to:

          (a) manage and operate the Properties in a commercially reasonable manner consistent with
local industry practices;

          (b) enforce all leases with tenants of the Properties in accordance with their terms and
Countrywide Commercial Real Estate Finance, Inc.’s “lock-box” requirements pursuant to the loan
extended to Owner (Owner shall execute all leases);

          (c) execute service and other agreements which Manager deems necessary to provide for the
maintenance and operation of the Properties subject to the Budgetary Limitations (hereafter
defined). Any such service or other agreement shall require Owner’s prior written consent;

          (d) notify Owner of any matter, which in the opinion of Manager is material to the
operation of the Properties;

          (e) supervise the repair and maintenance of the Properties subject to the Budgetary
Limitations; and

 

 

          (f) provide for the normal maintenance and repair as provided in the then current Operating
Budget.

     Section 2.2 Budgetary Process. With regard to budgetary matters and Property
expenditures, Manager agrees, for Owner’s account, to:

          (a) prepare and submit to Owner for approval on or before November 1st of each calendar
year, a proposed budget for the day-to-day operation and maintenance of the Properties. Once the
budget has been approved for a particular calendar year, it shall be referred to herein as the
“Operating Budget”.

          (b) implement and incur the obligations and expenditures provided in the Operating Budget.
Manager shall not incur any obligation or expend any sum which would exceed that provided for in
any approved Operating Budget (the “Budgetary Limitations”) unless in the reasonable
judgment of Manager such expenditure is necessary because of an emergency situation with regard to
any Property.

     Section 2.3 Accounting and Reporting. Manager agrees to:

          (a) keep and maintain books of accounts and records with regard to management of the
Properties. Such records and accounts shall be Owner’s property.

          (b) provide the reports listed in Schedule 1 by the twentieth (20th) day of
each calendar month for the preceding calendar month.

     Section 2.4 Collection and Disbursements. Manager agrees to:

          (a) collect all rents, security deposits and other revenues from the Properties and deposit
all such collections in an operating account (the “Operating Account”) with a bank approved
by Owner. Manager shall not commingle funds from the Properties with other funds of Manager;

          (b) disburse funds from the Operating Account to pay expenditures incurred in accordance with
the terms of this Agreement, including compensation as provided for in Article 3. A working
capital balance shall be maintained in the Operating Account of not less than three (3) month’s
operating expenses for the Properties unless Owner otherwise specifies. Sums in the Operating
Account from time to time in excess of such minimum balance shall be disbursed to Owner. If funds
on hand are insufficient to pay expenses, Manager shall notify Owner and Owner will deposit the
required funds in the Operating Account promptly.

     Section 2.5 General Standards.

          (a) Manager shall perform its duties hereunder in a commercially reasonable manner consistent
with local industry practices. With regard to handling of funds, Manager shall account to Owner
for all funds received and disbursed in accordance with this Agreement; and

          (b) Owner shall have the right to inspect and make copies of all books and records pertaining
to the Properties upon forty eight (48) hours prior written notice to Manager during the normal
business hours of Manager.

     Section 2.6 Related Party Service. If any service provided with respect to the
Properties is to be provided by a party affiliated with Manager, Manager shall notify Owner thereof
prior to acquiring such service and shall obtain Owner’s express approval before proceeding with
such service.

 

 

ARTICLE 3

COMPENSATION

     Section 3.1 Management Fee. For management services hereunder, Manager shall be paid
three and one half percent (3.5%) of Gross Receipts (the “Management Fee”) actually
collected in respect of the Properties during the applicable month. The term “Gross
Receipts” as used herein means all rents, reimbursement of operating expenses, electricity and
common area maintenance charges, any percentage rents actually collected in cash by Owner or by
Manager from tenants of the various Properties, including but not limited to late fees, parking
fees and proceeds of business interruption insurance, but excluding: security deposits (until such
time as the security deposits are applied to rent), interest income from managed bank accounts, any
sales of assets, condemnation proceeds, payments for physical installations or finish-out work,
payments in the nature of indemnification or compensation for loss, damage, or liability sustained
(including, without limitation, insurance proceeds except as expressly addressed above), and all
purchase discounts.

     Section 3.2 Reimbursable Expenses. Manager may deduct from the Operating Account or,
if the Operating Account is deficient, Owner shall reimburse Manager for all costs incurred by
Manager in performing its duties related directly to any Property, including, (a) reasonable wages,
salaries and benefits of all employees of Manager engaged in and necessary to the management of the
Properties subject to the then current Operating Budget approved pursuant to Section 2.2 of this
Agreement (and if any employee is not engaged full-time in the management of a Property, then such
employee’s wages, salaries and benefits shall be allocated to such Property on a reasonable basis
based upon the amount of time such employee devoted to such Property and the amount of time such
employee devoted to all other properties managed by Manager) and (b) bookkeeping and record keeping
fees and administrative costs specific to the performance of duties related to any Property (i.e.,
management information systems services, human resources services, telephone charges, postage,
delivery charges, stationery, and other direct office materials and costs associated with any
on-site management office). The total amount of reimbursable administrative costs shall be subject
to the Budgetary Limitations.

     Section 3.3 Construction Management Fee. Manager shall supervise the performance of
any construction activities of any kind for any of the Properties (but not regular repair and
maintenance), Manager shall be paid a fee (the “Construction Management Fee”) equal to five
percent (5%) of the costs incurred in connection therewith.

     Section 3.4 Payment. Compensation for the Management Fee and reimbursable expenses
shall be payable monthly. Any Construction Management Fee shall be paid as specified in
Section 3.3. All such Fees shall be payable out of the Operating Account or to the extent
not paid out of the Operating Account, paid by Owner to Manager on demand.

ARTICLE 4

INSURANCE AND INDEMNITY

     Section 4.1 Insurance. Owner shall insure the Properties. In addition to property
insurance, Owner shall also maintain general liability insurance and umbrella liability insurance
in reasonable amounts naming Manager as additional insured. To the extent that Owner will require
Manager to pay the insurance premiums, the cost of insurance shall be included in the Operating
Budget.

     Section 4.2 Indemnity. Owner shall indemnify, defend, and hold Manager
harmless from and against all loss, costs, expenses, claims, demands, or legal proceedings
(including costs, expenses, and reasonable attorneys fees) of any kind or nature related to the
Properties and the management of the Properties, except with respect to claims arising out of
Manager’s gross negligence, or willful and/or intentional misconduct. Subject to Section 7.4,
Manager shall indemnify, defend and hold Owner harmless from and against all loss, cost,
expenses, claims, demands, or legal proceedings (including costs, expenses, and reasonable
attorney’s fees) due to the gross

 

 

negligence and/or willful or intentional misconduct of Manager. The terms and conditions of
this Section 4.2 shall survive the termination or expiration of this Agreement.

ARTICLE 5

DEFAULT AND REMEDIES

     If either party defaults in performance of any of its obligations hereunder, which default
continues for a period of ten (10) days after receipt of written notice thereof, then the
non-defaulting party may immediately terminate this Agreement by written notice to the other party
and the non-defaulting party may seek an action against the defaulting party for actual damages
only (and not for consequential damages, special damages, punitive damages or lost profits). If
within the ten (10) day period noted above, the defaulting party diligently pursues a cure of the
default, the non-defaulting party will grant a thirty (30) day extension during which it will not
terminate this Agreement, so long as defaulting party continues to diligently pursue a cure.

ARTICLE 6

DUTIES UPON TERMINATION OR EXPIRATION

     Section 6.1 Manager’s Duties. Upon termination or expiration of this Agreement,
Manager shall promptly deliver to Owner complete copies of all books and records maintained by
Manager for the Properties and all funds in possession of Manager belonging to Owner or received by
Manager with regard to the Properties. Any unpaid obligations incurred by Manager during the term
of this Agreement and related to the operation of the Properties shall become the obligation of and
be payable by Owner.

     Section 6.2 Owner’s Duties. Owner shall compensate Manager for all fees earned
hereunder (in accordance with Article 3 hereof) through the date of termination.

ARTICLE 7

MISCELLANEOUS PROVISIONS

     Section 7.1 Notices. All notices given hereunder shall be made in writing and given
to the addressee at the address specified on the signature pages hereof or such other address
specified by notice given pursuant to this Section 7.1. Notices shall be given by certified mail,
return receipt requested, by hand delivery, or by facsimile transfer and shall be effective upon
receipt at the address of the addressee.

     Section 7.2 Assignment. Neither Manager nor Owner may assign its rights nor delegate
its duties hereunder without the prior written consent of Owner or Manager, as applicable, which
consent shall not be unreasonably withheld, conditioned, or delayed. Upon any such assignment, the
assigning party shall be relieved of all obligation and liability accruing after the date of such
assignment.

     Section 7.3 Governing Law. This Agreement shall be governed and construed in
accordance with the laws of the State of California. All obligations of the parties under this
Agreement are to be performed in the county where the Properties are located.

     Section 7.4 Waiver of Subrogation. To the extent that Owner or Manager are
compensated by insurance for damages sustained by them as a result of any damage to the Properties,
each party waives its right of recovery against the other and agrees that no party shall have any
right of recovery against the other by way of subrogation or assignment, so long as the insurance
policy provides for same.

     Section 7.5 Entire Agreement, Beneficiaries. This Agreement represents the entire
agreement between Owner and Manager with regard to management of the Properties and all prior
agreements are superseded hereby. This Agreement is for the sole benefit of Owner and Manager and
no other party is benefited hereby.

 

 

     Section 7.6 Parties Bound. This Agreement will bind and inure to the benefit of the
parties to this Agreement and their respective heirs, executors, administrators, legal
representatives, successors and assigns except as this Agreement states otherwise.

     Section 7.7 Time of Essence. Time is of the essence of this Agreement.

     Section 7.8 Non-Waiver. No delay or failure to exercise the right under this
Agreement, nor a partial or single exercise of a right under this Agreement, will waive that right
or any other right under this Agreement.

     Section 7.9 Modification. No modification of this Agreement is valid unless in
writing and signed by both parties.

     Section 7.10 Counterparts. This Agreement and all other copies of it are considered
one Agreement. This Agreement may be executed concurrently in one or more counterparts, each of
which will be considered an original, but all of which together constitute one instrument.

     Section 7.11 Legal Construction. If a court of competent jurisdiction holds any one
or more of the provisions of this Agreement to be invalid, illegal, or unenforceable in any
respect, the invalidity, illegality, or unenforceability will not affect any other provision of
this Agreement, which will be construed as if it had never contained the invalid, illegal, or
unenforceable provision.

     Section 7.12 Attorneys Fees. If any action at law or in equity, including any action for
declaratory relief, is brought to enforce or interpret this Agreement, the prevailing party is
entitled to recover reasonable attorneys’ fees and costs from the other party in addition to any
other relief that may be awarded. The court may award attorneys fees and costs in a trial of the
action or in a separate action brought to litigate the issue of attorney’s fees and costs.

 

 

In Witness Whereof, Owner and Manager have executed this Agreement as of the date first above
written.

	 	 	 	 	 	 	 	 	 

	OWNER:

YPI 1010 Lamar, LLC,

a Delaware limited liability company	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: Younan Properties, L.P.,

a Maryland limited partnership,

its sole member
	 
	 	 	 	 	 	 	 	 
	 	 	   By: Younan Properties, Inc., a

   Maryland corporation,

   its general partner
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	     By:	 	 	 	 
	 

	 	 	 	     Name:
	 	 

	 	 
	 

	 	 	 	     Title:	 	 	 	 

	 	 	 	 	 	 	 	 	 

	MANAGER:

Younan Properties, L.P.,

a Maryland limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By: Younan Properties, Inc.,

a Maryland corporation,

its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Name:
	 	 
	 

	 	 	 	 	 	Title:	 	 

	 	 	 	 	 	 	 

	Address:
	 	21700 Oxnard Street	 	Address:	 	21700 Oxnard Street
	 
	 	8th Floor	 	 	 	8th Floor
	 
	 	Woodland Hills, CA 91367	 	 	 	Woodland Hills, CA 91367
	Phone #:
	 	818.703.9600	 	Phone #:	 	818.703.9600
	Fax#:
	 	818.703.5907	 	Fax#:	 	818.703.5907

 

EXHIBIT “A”

List of the Properties

1. 1010 Lamar, 1111 Main Street, Houston, Texas

Exhibit “A”

 

SCHEDULE “1”

Reporting Requirements

	 	 	 

	Annually
	 	Operating Budget
	 
	 	 
	Monthly
	 	Income Statement – reflecting current month actual versus
budget and year to date actual versus budget
	 
	 	 
	 

	 	Material monthly variance explanations
	 
	 	 
	 

	 	Balance Sheet
	 
	 	 
	 

	 	Bank Reconciliation – with copies of reconciliation, bank statement, list of
outstanding checks and deposits in transit
	 
	 	 
	 

	 	General Ledger detail
	 
	 	 
	 

	 	Rent Roll
	 
	 	 
	 

	 	Check Register
	 
	 	 
	 

	 	Accounts Receivable Aging Report – which includes rents and other receivables
that are past due and indicates how long past due they are
	 
	 	 
	 

	 	Schedule of Security Deposits
	 
	 	 
	 

	 	Accounts Payable Report

Schedule “2”exv10w31

Exhibit 10.31

PROPERTY MANAGEMENT AND LEASING AGREEMENT

(One Graystone Centre / 3010 LBJ Freeway, Dallas, Texas)

     THIS PROPERTY MANAGEMENT AND LEASING AGREEMENT (this “Agreement”) is made as of
                                        , 2010, by and between ONE GRAYSTONE CENTRE, L.P., a Texas limited partnership
(“Owner”), and YOUNAN PROPERTIES, L.P., a Maryland limited partnership (“Manager”), with respect to
the following:

     WHEREAS, Owner owns certain parcels of improved land located at 3010 LBJ Freeway, Dallas,
Texas, commonly referred to as One Graystone Centre, and more particularly described on
Schedule 1 (collectively, the “Project”); and

     WHEREAS, Owner desires to engage Manager to manage, operate and lease the Project, and Manager
desires to accept such engagement upon the terms set forth herein.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual promises and
covenants contained herein, Owner and Manager hereby agree as follows:

1. Exclusive Agency.

     Owner hereby appoints Manager as its sole and exclusive leasing agent, rental agent and
manager of the Project and Manager hereby accepts such appointment, upon the terms set forth
herein. Such appointment is subject to the management rights and responsibilities reserved or
allocated to any tenant under the leases for the Project.

2. Term Of Agreement.

     The term of this Agreement shall commence on the date hereof, and shall continue for a period
of three (3) years thereafter (the “Initial Term”). Upon the expiration of the Initial Term, this
Agreement shall automatically renew on the identical terms set forth herein for successive periods
of two (2) years each unless terminated by either party by giving written notice of termination to
the other party no later than ninety (90) days prior to the expiration of the then current term.
The “Term” of this Agreement shall include the Initial Term and any successive period for which
this Agreement is in effect. Notwithstanding anything to the contrary set forth herein, Owner and
Manager agree that this Agreement shall terminate upon a sale of the Project.

3. Annual Plan.

     3.1 Annual Plan. On or before December 1 of each calendar year during the Term, Manager
shall prepare and submit to Owner for its approval a proposed annual plan for the promotion,
operation, leasing, repair and maintenance of the Project for the succeeding calendar year (the
“Proposed Annual Plan”). For purposes of this Agreement, a “Fiscal Year” shall mean a calendar
year beginning on the first day of January and ending on the last day of December. Each Proposed
Annual Plan shall include, among other matters:

          (a) an “Operating Budget” which shall set forth, among other matters, anticipated cash income
and expenditures and reserve additions for such Fiscal Year;

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          (b) a “Capital Budget” which shall set forth, among other matters, anticipated and proposed
capital expenditures for such year and the source of funds in respect thereto;

          (c) a “Leasing Plan” which shall include, among other matters, a statement of the space that
Manager projects to be leased during such year, the projected minimum rent to be obtained for such
space and the other financial provisions of such projected leases (including free-rent periods,
rent abatements, contributions towards taxes and expenses and escalation provisions);

          (d) a “Capital Expense Timeline” setting forth anticipated estimated capital advances by Owner
to Manager, if any; and

          (e) a summary of any other significant activity Manager expects to undertake during such
Fiscal Year.

     3.2 Approval of Proposed Annual Plan. Within fifteen (15) days of Owner’s receipt of the
Proposed Annual Plan, Owner shall deliver to Manager its approval or disapproval of all matters
contained in the Proposed Annual Plan for the succeeding year, including a reasonably detailed
explanation of the reasons for such disapproval. If Owner disapproves of any Proposed Annual Plan,
Manager shall submit to Owner a revised Proposed Annual Plan within ten (10) days of its receipt of
Owner’s written disapproval. Manager shall make a good faith effort to have such revised Proposed
Annual Plan satisfy each of the objections set forth in Owner’s written disapproval. Upon written
approval of a Proposed Annual Plan by Owner, such plan shall thereafter be the “Annual Plan” for
the succeeding year for the purposes of this Agreement; provided, however, that if Owner and
Manager cannot agree upon an Annual Plan or certain aspects thereof prior to January 1 of the
succeeding year, the Annual Plan from the prior year shall govern to the extent of such disputed
items (with appropriate adjustments based on increases or decreases in the yearly Consumer Price
Index as published each January by the U.S. Department of Labor, Bureau of Labor Statistics and the
actual amount of expenses not within the control of Owner or Manager such as real property taxes
and personal property taxes). The parties acknowledge and agree that each Annual Plan shall
provide sufficient funds for Manager to operate the Project in a manner consistent with that for
the operation of similar first-class office buildings in Houston, Texas.

     3.3 Amendments to Annual Plan. Manager shall submit to Owner any proposed revisions in the
Annual Plan, all of which shall be subject to Owner’s approval. Any approved changes will be
reflected in an amended Annual Plan which shall be applicable for the remainder of the applicable
Fiscal Year. However, nothing in this Section 3.3 shall be construed as releasing Manager
from its obligation to manage the Project in accordance with the Annual Plan.

     3.4 Obligation and Authority to Implement Annual Plan. Once approved, Manager shall
implement the Annual Plan, and shall be authorized without the need of further approvals to make
the expenditures and incur the obligations provided for in such Annual Plan.

     3.5 Performance Within Annual Plan. Manager shall use reasonable diligence and employ
commercially reasonable efforts to ensure that the actual costs of maintaining and

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operating the Project shall not exceed the Annual Plan either in total or in any accounting
category. All expenses must be charged to the proper account on either the operating budget or
capital budget reflected in the Annual Plan, and no expense may be classified or reclassified for
the purpose of avoiding an excess in the annual budgeted amount of an accounting category.
Pursuant to Section 6.5 below, Manager shall obtain Owner’s prior consent to any
expenditure which costs (i) in excess of 5% for any line item in the budgets included in the Annual
Plan, or (ii) $25,000, whichever is less, and is not reasonably contemplated in the Annual Plan.

4. Accounting.

     4.1 Books and Records. Manager shall maintain adequate and separate books and records for
the Project on behalf of Owner, with sufficient supporting documentation to ensure that all entries
in the books and records are accurate and complete. Such books and records shall be maintained by
Manager at Owner’s address stated herein or at such other location as may be mutually agreed upon
in writing, except such documents used in the day-to-day operation of the Project by Manager in the
performance of its obligations hereunder which may be maintained at the Project for the benefit of
Owner. Manager shall exercise such control over accounting and financial transactions as is
reasonably required to protect Owner’s assets from theft, error or fraudulent activity on the part
of Manager’s associates or employees. Losses arising from such instances are to be borne by
Manager.

     4.2 Accounting, Reports and Financial Statements. Manager shall perform such accounting
and financial reporting services regarding the Project which is normally provided with respect to
first-class office buildings in the area and any additional accounting and financial reporting
services which are required pursuant to the documents and agreements governing Owner’s lending
relationships (“Loan Compliance Requirements”). Without limiting the generality of the foregoing,
Manager shall, if requested by Owner or to the extent required by the Loan Compliance Requirements
(but in no event later than the twentieth (20th) day of each month), prepare and provide
to Owner monthly operating reports for the immediately preceding month (each, a “Monthly Report”),
including, (i) an unaudited year-to-date financial statement, (ii) statement of net operating
income, (iii) summary of all leasing activity, (iv) a balance sheet, (v) a calculation of the
Management Fee (as defined in Section 9.1 below), (vi) a comparison of monthly and
year-to-date actual income and expense with the operating budget in the Annual Plan, and (vii) on a
quarterly basis only, an analysis of any significant variances between budgeted and actual amounts.
If requested by Owner or if required by the Loan Compliance Requirements, Manager shall also,
within ninety (90) days after the end of any Fiscal Year, prepare and provide to Owner annual
financial statements and, at Owner’s cost and expense, cause such statements to be audited. Upon
request by Owner, Manager shall prepare and supply to Owner periodic cash flow forecasts. Manager
shall also provide to Owner coordination for external and internal audits, tax planning and
compliance in a manner and form mutually agreeable by Owner and Manager, and Manager shall provide
additional information reasonably required by individual partners of Owner for their financial
statement purposes for an amount equal to the cost of obtaining such work.

     4.3 Copies of Documentation. Manager shall maintain, and make available to Owner upon
reasonable notice at the place of business maintained by Manager the following:

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          (a) All bank statements, bank deposit slips and bank reconciliations;

          (b) Cash receipts and disbursement records;

          (c) Trial balance;

          (d) Paid invoices;

          (e) Summaries of adjusting journal entries; and

          (f) Supporting documentation for payroll, payroll taxes and employee benefits.

5. Leasing Activities.

     Manager shall be the Owner’s exclusive leasing agent of the Project, and shall perform all
leasing functions relating to the Project. As provided in Article 9 hereof, Manager shall
be paid for such leasing activities in conformity with Schedule 5 to this Agreement, which
amounts shall be in addition to the compensation otherwise payable to Manager hereunder. Without
limiting the generality of the foregoing, Manager’s leasing function shall include the following:

     5.1 Leasing. Manager shall use commercially reasonable efforts to lease all space in the
Project which is now vacant, becomes vacant or is projected to become vacant during the Term,
subject to the limitations imposed by the Annual Plan, and Manager’s responsibilities shall include
lease negotiation coordination, tenant improvement coordination, governmental liaison, opening
activities, tenant liaison, facilitating tenant move-in and similar activities. Manager may, in
its sole discretion, engage the services of other outside cooperating real estate consultants and
brokers to lease space in the Project on behalf of Owner and who shall be paid by Owner such
commissions as may be included in the Annual Plan or are otherwise established by Owner and Manager
from time to time. Manager shall, so far as possible, procure references from prospective tenants,
investigate such references and use its best judgment in the selection of prospective tenants.
Where appropriate, upon the occurrence of a vacancy or a projected vacancy, Manager will prepare
and disseminate adequate rental listings. After a vacancy is listed, Manager will cooperate with
brokers in an effort to aid in successfully filling the vacancy. Manager shall establish
procedures to ensure that ample time is available to renew existing leases or obtain new tenants in
an effort to minimize vacancies and loss of income.

     5.2 Lease Negotiations. Owner shall refer all inquiries concerning the rental of space in
the Project to Manager. All negotiations with prospective tenants shall be conducted by Manager or
under its direction. All leases shall be prepared by Manager in the name of Owner and shall be in
accordance with such leasing guidelines as Owner and Manager shall agree upon from time to time.
Manager shall secure Owner’s prior written approval before finalizing any lease that is not in
compliance with the leasing plan set forth in the Annual Plan. All leases shall be presented to
and executed by Owner. Manager shall duly and punctually comply with all the obligations of Owner
under all leases with tenants of space in the Project, but solely on behalf of Owner and at Owner’s
expense.

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     5.3 Advertising and Promotion. Manager shall prepare all advertising and promotional
materials for the Project, which materials shall be used only after Owner’s approval and shall
comply with all applicable laws, ordinances and regulations. The costs of all advertising and
promotional materials shall be at Owner’s sole cost and expense and shall either be in accordance
with the Approved Operating Budget or otherwise approved by Owner in writing.

     5.4 Rates. Rental rates for space in the Project shall be established by Owner. Manager
shall, promptly following the execution of this Agreement and from time to time thereafter, provide
market information and general office space rental rate surveys and make recommendations to Owner
with respect to rental rates.

     5.5 Lender Approval. To the extent that Owner encumbers the Project with debt financing,
the Manager shall assist Owner, as requested, in obtaining any approvals of proposed leases for the
Project, the tenants and the terms thereof which may be required from the Project’s lenders,
including senior financing, mezzanine level financing or preferred equity (each, a “Lender” and
collectively, “Lenders”) in accordance with the terms of the applicable loan documents.

6. Management Of Project.

     Manager shall manage, operate and maintain the Project in accordance with the general
standards applicable to other first-class office buildings in the area and in accordance with Loan
Compliance Requirements, subject, however, to the management rights and responsibilities reserved
or allocated to any tenant under the leases for the Project. Without limiting the generality of
the foregoing, Manager’s functions hereunder shall include the following (to the extent not
otherwise reserved or allocated to any tenant under the leases for the Project):

     6.1 Manager Orientation. Manager has informed itself with respect to the layout,
construction, location, character, plan and operation of the lighting, heating, plumbing,
ventilating and elevator systems and any other mechanical equipment and systems in the Project, and
is familiar therewith, and shall be responsible for enforcement of all warranties and guaranties
pertaining to the equipment of the Project, provided Owner has made available copies of all such
warranties or guarantees to Manager.

     6.2 General Management Duties. Manager shall manage the Project in an efficient and
businesslike manner having due regard for the age and physical condition of the Project. Manager,
through its employees, independent contractors and subcontractors, shall supply complete
operational services for the Project, provided that the nature and costs of such services are
included in the then current Approved Budgets, and provided further that the cost of such services
are comparable with general prevailing market conditions. Notwithstanding anything contained in
this Agreement to the contrary and as reasonably requested by Owner, Manager shall perform its
obligations under this Agreement in a manner which does not cause Owner to violate any of its
obligations under Owner’s organizational documents or any loan documents with Lenders; provided,
however, (i) that Owner shall make all such documentation available to Manager for its review; and
(ii) that such requests shall not materially increase Manager’s obligations or its non-reimbursable
expenses under this Agreement.

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     6.3 Subcontracting for Services. Manager shall be entitled to subcontract with an
affiliate of Manager or a third party (a “Subcontractor”) to perform or cause to be provided any of
the services required of Manager hereunder; provided, however, that no such subcontract shall
relieve Manager from its obligations to Owner under this Agreement. All payments made by Manager
to a Subcontractor pursuant to any such subcontract shall be reimburseable by Owner in accordance
with the Annual Plan and the terms hereof.

     6.4 Rent Collection. Subject to the Loan Compliance Requirements and any “Cash Management
System” (as defined in Section 6.11 below), Manager shall use diligent efforts to collect
for the account of Owner all rents and other charges which may become due at any time from any
tenant or from others for services provided in connection with or for the use of the Project or any
portion thereof, and as directed by Owner, shall institute collection and legal proceedings in the
name of Owner for the collection thereof and for the dispossession of tenants and other persons
from the Project. All attorneys’ fees (including charges and disbursements incurred by counsel)
and other third party out-of-pocket costs incurred in connection with such proceedings shall be
borne by Owner. Manager shall collect and identify any income due Owner from miscellaneous
services provided to tenants or the public including, but not limited to, parking income, tenant
storage, and coin operated machines of all types. Notwithstanding the foregoing, Manager shall
collect rents and deposit same or cause rents to be collected and deposited in the manner required
by the Loan Compliance Requirements.

     6.5 Repairs and Maintenance. Manager shall, in the name of and at the expense of Owner,
make or cause to be made on behalf of Owner such ordinary maintenance, repairs and alterations as
Manager may deem advisable or necessary, subject to and within the limitations of the Operating
Budget. Such duties shall include, without limitation, interior and exterior cleaning, painting,
plumbing, carpentry, engineering, landscaping and such other normal maintenance and repair work as
may be necessary or desirable. However, unless contained in the Annual Plan, Manager shall secure
Owner’s prior written approval before making or authorizing any expenditure which costs (i) in
excess of 5% for any line item in the budgets included in the Annual Plan, or (ii) $25,000,
whichever is less, and is not reasonably contemplated in the Annual Plan; provided, however, that
Manager may make expenditures in excess of the foregoing restrictions in the event of an emergency
if, in the opinion of Manager, such repairs are necessary to (a) protect the Project, (b) maintain
services to tenants as called for in their leases, (c) avoid property damage to the Project or any
improvements benefiting or appurtenant thereto, and (d) avoid personal injury or death to persons
at or around the Project. Manager shall promptly advise Owner’s designated representative
regarding any expenditures for such emergency repairs by notifying a person designated by Owner for
such purpose. The authority provided to Manager in this Section 6.5 shall not extend to
expenditures of the type described in Section 6.6 below or to expenses to refurbish,
rehabilitate or remodel areas covered by new leases. The latter expenditures are subject to the
prior approval of Owner at the time of execution of new leases. Manager shall promptly inform
Owner of major increases in repair and maintenance costs not reflected in the Annual Plan.

     6.6 Capital Improvements; Tenant Improvements. Any significant development, capital
improvement projects or tenant improvement projects shall be administered and supervised by Manager
or an affiliate thereof engaged by Owner pursuant to a separate written development agreement.
Notwithstanding the foregoing, Manager shall, in the name of and at

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the expense of Owner, make or cause to be made such capital improvements to the Project as are
included in the Capital Budget or are otherwise approved by Owner, as well as all remodeling and
refurbishing of tenant premises as approved by Owner in connection with new leases. Manager shall
make recommendations, select contractors and follow bid procedures as required, from time to time,
by Owner and shall supervise all such work to ensure compliance with contract requirements and
applicable law; provided, however, that contractors selected by Manager pursuant to this
Section 6.6 shall be limited to those included on a list of contractors which has been
pre-approved by Owner. For all such capital improvement projects, development work or tenant
improvement projects, Manager shall be paid a coordination fee as set forth on Schedule 2
attached hereto.

     6.7 Service Contracts. Manager shall, in the name of and at the expense of Owner, contract
for those utilities and other building operation and maintenance services Manager shall deem
advisable; provided that no service contract shall be for a term exceeding one year without the
prior written approval of Owner, and the cost of all such services shall be included in the
Operating Budget or otherwise approved in writing in advance by Owner. Further, at the time of
execution of any service contract, the cost of the services to be provided under such contract
shall be comparable with general prevailing market conditions. Manager shall, at the Owner’s
expense, purchase and keep the Project furnished with all necessary supplies. All expenses shall
be charged to Owner at net cost, and Owner shall be credited with all rebates, refunds, allowances
and discounts allowed to Manager. No service contracts with any affiliate of Manager or any
affiliate of any of the members of Owner shall be entered into except in accordance with the Loan
Compliance Requirements and this Agreement.

     6.8 Tax and Mortgage Payments. If requested by Owner, Manager shall obtain, verify and pay
from Project Income (as defined in Section 9.1 below) all bills for payments due under all
mortgages, real estate, personal property and improvement assessments with respect to the Project
and Owner’s personal property located therein. In such event, all such expenses shall be included
in the Operating Budget.

     6.9 Insurance. Manager shall, at Owner’s cost and expense, obtain and maintain insurance
with respect to the Project in customary levels and in accordance with the Annual Plan, which may
be provided through a blanket policy. Manager shall also cooperate with Owner’s insurance carrier
in the processing of claims and defense and settlement of lawsuits with respect to the Project.

     6.10 Writeoffs and Abandonments. Manager shall obtain the approval of Owner for the
writeoff, abandonment or reduction of any amounts otherwise due Owner from Project operations.

     6.11 Lockbox and Cash Management Arrangements. Manager shall cooperate with Owner and the
Lenders with respect to any lock box or cash management arrangements established by Owner and any
Lender (a “Cash Management System”). All payments required to be made by Manager under this
Agreement for taxes, insurance, operating expenses, capital expenditures and other expenses
relating to the Project shall be subject to the terms and provisions of any such Cash Management
System. At Owner’s direction, Manager shall coordinate with the Lenders to cause all remaining
funds, after all required payments and

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reserves are made pursuant to any Cash Management System, to be deposited into one or more Project
Accounts (as defined in Section 9.1 below) established by Manager for the benefit of Owner
pursuant to Section 8.1 below.

     6.12 Monitoring Accounts. Manager shall monitor, through computer access to the extent
available, all Project Accounts and other accounts established by Manager on behalf of Owner and/or
required by any Lender. In the event Manager determines at any time that funds in such accounts
are insufficient for such purposes, Manager shall immediately inform Owner of such insufficiency
and provide Owner with a statement of outstanding amounts currently due. Unless otherwise required
by the Loan Compliance Requirements or any Cash Management System, all funds received by Manager
for or on behalf of Owner (less any sums properly deducted by Manager pursuant to any of the
provisions of this Agreement and the Annual Plan) shall be deposited in the appropriate Project
Account maintained by Manager for the deposit of funds of Owner and not commingled with the funds
of Manager or any other project.

     6.13 Return of Excess Funds in Project Account. Subject to the terms of any Cash
Management System and the Loan Compliance Requirements, on each date that Manager provides Owner
with a Monthly Report, Manager shall also remit to Owner all funds, if any, that are available in
the Project Accounts, after deducting the Management Fee, Leasing Commissions (as defined below)
and/or reimbursements due to Manager and any Contingency Reserve or other amounts agreed to from
time to time by Owner and Manager.

7. Methods of Operation.

     7.1 Contracting. All service contracts permitted to be entered into pursuant to
Section 6.7 above, all contracts for capital improvements and all contracts for the
refurbishing and modeling of tenant spaces which (a) cover expenditures included within the Annual
Plan or expenditures which are otherwise approved in advance by Owner or (b) which are approved in
advance by Owner or otherwise meet criteria established by Owner for such contracts, shall be
executed by Manager as agent for Owner. Without relieving it of its obligations hereunder,
pursuant to Section 6.3 above, Manager shall be entitled, in its discretion and at its
cost, to enter in its own name into such subcontracts with third parties or affiliates to perform
any of the management functions which are the subject of this Agreement as it may determine. All
other contracts with respect to the Project and all tenant leases shall be executed by Owner. Upon
any termination of this Agreement, Manager shall, if requested by Owner, assign all assignable
contracts executed by Manager to Owner.

     7.2 Compliance With Laws. Subject to the other provisions of this Agreement, Manager shall
be responsible for operating and maintaining the Project in compliance with known federal, state
and municipal laws, ordinances, regulations and orders relative to the leasing, use, operation,
repair and maintenance of the Project and with the rules, regulations or orders of the local Board
of Fire Underwriters or other similar body (collectively, the “Legal Requirements”) and in
accordance with the Loan Compliance Requirements. At Owner’s expense, Manager shall promptly
remedy any violation of any Legal Requirements or Loan Compliance Requirements which comes to its
attention, and further agrees, at Owner’s expense, to promptly provide to Owner written notice of
any known actual, alleged or threatened violation of or failure to comply with any Legal
Requirement or Loan Compliance Requirement.

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Expenses incurred in so complying and in correcting any such violation shall be included in the
Annual Plan or otherwise approved in advance by Owner. Subject to the following sentence, Manager
shall also be responsible for compliance with all terms and conditions contained in any ground
lease or space lease or security instrument affecting the Project and for remedying any breach
thereof. Notwithstanding the foregoing, however, Manager’s responsibilities under this Section
7.2 shall not extend to matters (i) caused by Owner’s gross negligence or willful misconduct,
(ii) as to which the expenditure of Owner’s funds is required but disapproved by Owner, or (iii) as
to which any tenant of the Project has the express responsibility under its lease. Manager shall
assist Owner in Owner’s efforts to comply with Federal, State or other governmental energy
conservation laws, regulations, rules, etc., and, in addition, shall cooperate with Owner to
implement such energy conservation programs as Owner may desire to implement from time to time.

     7.3 Bonding. All employees of Manager who handle or are responsible for Owner’s funds
shall, if requested by Owner, be covered by a fidelity bond. The amount of such bond shall be
determined by Owner and the premium therefor shall be an operating expense of the Project.

     7.4 Legal Proceedings. Manager shall, at Owner’s request and expense, engage counsel and
cause such legal proceedings to be instituted as may be necessary to enforce payment of rent and
compliance with leases or to dispossess tenants. Manager shall use Owner’s legal counsel or other
legal counsel approved by Owner to institute such actions, and all compromises shall be subject to
the prior approval of Owner. Attorneys’ fees and costs so incurred shall be expenses of the
Project but shall be submitted to Owner for approval prior to payment. Manager shall deliver
copies of all written notices or other documentation evidencing actual or threatened lawsuits to
Owner promptly upon receipt by Manager.

     7.5 Employment of Personnel. Manager shall have in its employ at all times a sufficient
number of capable employees to enable it to properly, adequately, safely and economically manage,
operate and maintain the Project; provided, however, that Manager may cause Owner to directly
employ the personnel listed on Schedule 3 as and to the extent necessary to fulfill its
obligations under this Agreement, which personnel shall operate under the supervision and direction
of Manager. The remaining personnel on Schedule 3 shall also be under the supervision and
direction of Manager. Manager may, in its discretion, cause additional or fewer on-site employees
to be employed either by Owner, Manager or a subcontractor for the benefit of the Project as it
deems necessary or appropriate in order to manage the Project in a first-class manner consistent
with comparable projects in the area (after taking into consider the management rights and
responsibilities reserved or allocated to any tenant of the Project); provided, however, that
employment of any additional on-site employees for which no provision has been made in the Annual
Plan must have the prior written consent of Owner. All matters pertaining to the employment,
supervision, compensation, promotion and discharge of such employees, as well as union negotiation
and compliance with laws and regulations dealing with employee matters, shall be coordinated by
Manager; provided, however, that Owner shall have the right to request that any particular employee
be prohibited from working at or for the benefit of the Project. The wages, salaries and other
compensation paid to employees of the Project, and to others who perform special services for the
benefit of the Project, shall be paid in accordance with Article 9 hereof. This Agreement
is not one of employment of Manager by Owner, but one

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with Manager engaged as an independent contractor in the business of property management. In the
event that any expenses are attributable in part to the Project and in part to other properties
owned and managed by Manager, such expenses shall be prorated by Manager as appropriate from time
to time and in a manner agreeable to Owner and Manager. Upon request by Owner, Manager will submit
to Owner a report of all such prorations.

     7.6 Services to Existing Tenants. At Owner’s expense, Manager shall perform services for
tenants of the Project which are normally provided to tenants of other first class buildings in the
area or which are specifically requested by Owner. Manager shall use commercially reasonable
efforts to render such services to tenants of the Project in an effort to minimize any cost to
Owner and in a manner that is consistent with the standards set forth in this Agreement.

8. Financial Matters.

     8.1 Bank Accounts. In coordination with Lenders and in compliance with the terms of any
Cash Management System, Manager (on behalf of Owner) shall establish an operating trust account or
accounts for the Project at such bank(s), under such designation(s) and with such authorized
signatures as Owner may approve from time to time (each, a “Project Account”) and, subject to the
Loan Compliance Requirements and any Cash Management System, all funds collected from the operation
of the Project, shall be deposited in the appropriate Project Account(s), to be held in trust in
such Project Account(s) for the benefit of Owner, after all required disbursements and payments are
made pursuant to any Cash Management System and the Loan Compliance Requirements. All expenses of
the Project, including Management Fees, Leasing Commissions and reimbursements to be paid to
Manager, to the extent not already made pursuant to the Cash Management System, shall be paid by
Manager from the Project Account(s). If required by law, Owner, any Cash Management System, or the
Loan Compliance Requirements, a separate account(s) for tenant security deposits shall be
established in the same manner as provided in the preceding sentence and shall be maintained as
required by law, any Cash Management System, Owner or the Loan Compliance Requirements. Owner may
require Manager to change banks, change accounts, change account designations and make
disbursements or distributions of Project funds from time to time, and Manager shall promptly
comply with all such directions from Owner.

     8.2 Audits. Owner reserves the right to audit all books and records maintained by Manager
with respect to the Project. All audits shall be at Owner’s cost, shall be conducted by
appointment during normal business hours and shall be conducted at Manager’s office where such
books and records are located. An audit may be conducted by Owner’s employees or by independent
persons engaged by Owner. Any discrepancies noted in any audit shall be promptly corrected.

9. Compensation of Manager.

     9.1 Compensation. For its services hereunder, Manager shall be paid a monthly management
fee and other compensation as specified in Schedule 2 attached hereto (collectively, the
“Management Fee”). For the purposes of this Agreement, “Project Income” means all Rent and all
Other Income (as those terms are defined below) actually collected from Project

10

 

operations during such month. “Rent” shall mean all amounts collected from Project tenants other
than (i) security and other tenant deposits (other than as applied to pay rent or additional rent)
and (ii) rents paid in advance by tenants, except the portion of any such advance payment applied
to the rent due for the current month. “Other Income” shall mean all income from the Project which
shall include operating expense reimbursements, fees, amounts paid for after hours or excess
utilities and/or air conditioning service, amounts paid for special services rendered to tenants
and vending machine rental charges, but shall not include Rent, amounts received by Owner or
tenants in settlement of insurance claims, costs and fees recovered in litigation (except amounts
allocable to past due rent or additional rent), refunds or returns of taxes paid, amounts paid
under construction contracts, or proceeds from any sale or financing of the Project or any portion
thereof.

     9.2 Employee Compensation. The wages, salaries and other compensation paid to employees
who will be employed for the benefit of the Project (whether such employees are located on-site or
off-site), and to others who perform special services for the benefit of the Project, to the extent
not otherwise paid through a Cash Management System, shall be paid by Owner from a Project Account
pursuant to this Section 9.2.

          (a) All wages, salaries and other compensation paid to employees of the Project, including,
but not be limited to, unemployment insurance, social security, worker’s compensation, employee
benefit packages, recruiting costs, and other charges imposed by a governmental authority or
provided for in a union agreement, shall (a) as to employees of Manager or any Subcontractor, be
reimbursed by Owner to Manager (or directly to the applicable Subcontractor, if requested by
Manager) without profit or mark-up, and (b) as to employees of Owner, be paid directly by Owner.
Manager shall coordinate all disbursements and deposits for all compensation and other amounts
payable with respect to persons employed in connection with the operation of the Project from an
appropriate Project Account. Manager shall maintain complete payroll records for all employees.

          (b) In addition to the employment of employees necessary to perform Manager’s general
management duties hereunder, including, without limitation, those set forth on Schedule 3,
Manager may, in its discretion, from time to time employ personnel of its general operations to
perform direct special services for the benefit of the Project; provided, however, that Manager
shall obtain the prior approval of Owner for the employment of such special personnel, except in
emergency situations or when timing requirements do not allow for such prior approval. Owner shall
reimburse Manager for such direct services rendered by special personnel in an amount commensurate
with normal and customary charges for such services by similarly qualified persons. Persons whose
compensation may not be charged to Owner for services rendered to the Project includes the off-site
senior general asset management personnel of Manager above the asset manager level set forth on
Schedule 4 attached hereto.

     9.3 Reimbursable Expenses, Office, and Other Services. Owner shall reimburse Manager for
all direct out-of-pocket expenses incurred by or on behalf of Manager in connection with this
Agreement without profit or mark-up, which expenses shall be reflected in the Annual Plan, and
shall include, but not be limited to, normal office expenses and business and travel expenses
associated with operating an on-site business office. Further, Owner shall provide for the use of
Manager a furnished management office in the Project, to be utilized directly for the

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benefit of the Project, together with high speed internet service, e-mail, telephone service,
office janitorial service, printed form and customary office supplies and equipment (such as
computers, photocopying equipment and calculators). The method of finishing and equipping such
office, and the total cost thereof, shall be determined by Owner from time to time based upon the
recommendations of Manager.

     9.4 Non-Reimbursable Expenses. Except as otherwise set forth on Schedule 2, the
following expenses or costs incurred by or on behalf of Manager in connection with this Agreement
shall be at the sole cost and expense of Manager and shall not be reimbursed by Owner:

          (a) Cost of gross salary and wages, payments of all taxes, insurance, worker’s compensation
and other benefits of Manager’s off-site senior general asset management personnel above the asset
manager level that is identified on Schedule 4 attached hereto.

          (b) Cost attributable to losses arising from negligence or fraud on the part of Manager,
Manager’s associates or Manager’s employees.

     9.5 Payment of Fees and Expenses. Payment or reimbursement of the amounts described in
Sections 9.1 through 9.3 above shall be as follows:

          (a) The monthly Management Fee payable pursuant to Section 9.1 above shall be
calculated and paid concurrently with Manager’s submission of its monthly accounting to Owner and,
upon submission of such accounting, Manager may pay such fee from Project operating funds then in
its possession or control or in a Project Account.

          (b) Employee expenses and out of pocket expenses pursuant to Sections 9.2 and 9.3
shall be reimbursed to Manager at the time incurred by Manager, and, subject to the Cash Management
System, Manager may reimburse such expenses from time to time from Project operating funds under
its possession or control or in a Project Account. A detailed summary of such reimbursable
expenses shall be included on Manager’s monthly accounting to Owner.

10. Insurance and indemnification.

     10.1 Indemnity and Hold Harmless. Owner agrees to:

          (a) Hold and save Manager free and harmless from any damage or injuries to persons or property
by reason of any cause whatsoever either in and about the Project or elsewhere when Manager is
carrying out the provisions of this Agreement or acting under the express or implied directions of
Owner.

          (b) Reimburse Manager upon demand for any moneys which Manager is required to pay out for any
reason whatsoever, under this Agreement or in connection with, or as an expense in defense of any
claim, civil or criminal action, proceeding, charge or prosecution made, instituted or maintained
against Manager or Owner and Manager, jointly or severally, affecting or due to the condition or
use of the Project or acts or omissions of Manager or employees of Owner or Manager, or arising out
of or based upon any law, regulation,

12

 

requirement, contract, or award relating to the hours of employment, working conditions, wages
or compensation of employees or former employees.

          (c) Defend promptly and diligently, at Owner’s expense, any claim, action or proceeding
brought against Manager or Manager and Owner jointly or severally arising out of or connected with
any of the foregoing, and to hold harmless and fully indemnify Manager from any judgment, loss or
settlement on account thereof.

     The foregoing agreement of Owner shall expressly extend to any liabilities, claims and costs
of defense arising out of or resulting from failure or refusal of Owner to authorize compliance
with any law, rule, order or determination of any governmental authority with respect to the
Project, where such matter is promptly brought to Owner’s attention by Manager, and Owner declines
to comply with the same. Nothing contained herein, however, shall relieve Manager of
responsibility to Owner for Manager’s gross negligence or willful misconduct, unless such gross
negligence or willful misconduct is covered by Owner’s insurance. The provisions of this
Section 10.1 shall survive the expiration or termination of this Agreement.

     10.2 Insurance.

          (a) Owner’s Insurance. Owner agrees to carry commercial general liability, elevator
liability and contractual liability insurance (specifically insuring the indemnity provisions
contained in Section 10.1 above), and such other insurance as the parties agree to be
necessary or desirable for the protection of the interests of Owner and Manager. In each such
policy of insurance, Owner shall designate Manager as a party insured with Owner, and the carrier
and the amount of coverage in each policy shall be mutually agreed upon by Owner and Manager. A
certificate of each policy issued by the carrier shall be delivered promptly to Manager by Owner.
All policies shall provide for 30 days’ written notice to Manager and Owner prior to cancellation,
non-renewal or material amendment.

          (b) Manager’s Insurance. If requested by Owner at any time during the Term, Manager
(as a reimbursable expense under this Agreement) and any independent contractors employed by
Manager (at such contractor’s expense) shall maintain in full force and effect commercial general
liability, workers’ compensation, employer’s liability and such other insurance as Owner may
reasonably require with such limits as are customary for managers of similar first class projects
in the area.

     10.3 Conditions. Owner’s obligations under Sections 10.1 and 10.2 are upon the
condition that Manager:

          (a) Notifies Owner within five (5) business days after Manager receives notice of any such
loss, damage or injury.

          (b) Takes no action (such as admission of liability) which might bar Owner from obtaining any
protection afforded by any policy Owner may hold or which might prejudice Owner in its defense to a
claim based on such loss, damage or injury.

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          (c) Agrees that Owner shall have the exclusive right, at its option, to conduct the defense to
any claim, demand or suit within limits prescribed by the policy or policies of insurance.

          (d) Cooperates with Owner in disposition of claims, including furnishing all available
information to Owner’s carrier.

          (e) Recognizes that the foregoing shall not affect the general requirement of this Agreement
that the Project shall be managed, operated and maintained in a safe condition and in a proper and
careful manner.

     10.4 Insurance Provisions. Owner shall include, in its hazard policy covering the Project,
personal property, fixtures and equipment located thereon, and Manager shall include in any fire
policies for its furniture, furnishings or fixtures situated at the Project, appropriate clauses
pursuant to which the respective insurance carriers shall waive all rights of subrogation with
respect to losses payable under such policies. If such clauses are available and obtained in the
respective insurance policies of Owner and Manager, each of Owner and Manager waive any claim
against the other covered by their respective aforementioned policies of insurance.

     10.5 Third Party Insurance. If requested by Owner, Manager shall require that all
contractors and service companies operating in or on the Project maintain such worker’s
compensation, employer’s liability and commercial general liability insurance as may be reasonably
required by Owner, including any special coverage required by Owner in connection with hazardous
operations.

11. Termination Of Agreement.

     11.1 Termination. Notwithstanding the provisions of Article 2 hereof, if either
party defaults in performance of any of its material obligations hereunder, which default continues
for a period of thirty (30) days after receipt of written notice thereof, then, subject to the
proviso below, the non-defaulting party may immediately terminate this Agreement by written notice
to the other party and the non-defaulting party may seek an action against the defaulting party for
actual damages only (and not for consequential damages, special damages, punitive damages or lost
profits); provided, however, if within the thirty (30) day period noted above, the
defaulting party diligently pursues a cure of the default, the non-defaulting party will grant a
thirty (30) day extension during which it will not terminate this Agreement, so long as the
defaulting party continues to diligently pursue a cure.

Notwithstanding

     11.2 Obligations Upon Termination. Upon the termination of this Agreement by any means:

          (a) Owner shall remain bound by all contracts entered into by Manager in the name of Owner
within the limitations contained in this Agreement and the Annual Plan, and shall remain obligated
to Manager for all Management Fees earned by Manager through the date of termination and for all
reimbursements due to Manager pursuant to this Agreement.

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          (b) Manager shall remain obligated:

               (1) To render to Owner a final accounting of income and expenses of the Project as provided in
this Agreement through the effective date of such termination.

               (2) To deliver to Owner all income and all security deposits from the Project in Manager’s
possession after reimbursement of all expenses and payment of all management fees which Manager is
entitled to receive from such funds.

               (3) To deliver to Owner all keys, records, contracts, leases, receipts, unpaid bills and other
documents relative to the Project and in Manager’s possession at date of termination.

               (4) To assign to Owner all of its rights and obligations in any contracts entered into in
accordance with the terms of this Agreement, and Owner (or its designee) shall assume all of the
obligations thereunder.

12. General Provisions.

     12.1 Independent Contractor. It is expressly understood and agreed that Manager will act
as an agent for Owner and as an independent contractor in the performance of this Agreement.

     12.2 Notices. Any notice which must or may be given under this Agreement or by law shall,
except as otherwise provided, be in writing and shall be deemed to have been given (i) when
physically received by personal delivery (which shall include the confirmed receipt of a telecopied
facsimile transmission), or (ii) three (3) business days after being deposited in the United States
certified or registered mail, return receipt requested, postage prepaid, or (iii) one (1) business
day after being deposited with a nationally known commercial courier service providing next day
delivery service (such as Federal Express). All notices shall be addressed and delivered to the
addresses set forth on the signature page of this Agreement, or to such other addresses which may
be provided by any party hereto to the other in writing.

     12.3 Attorneys’ Fees. If suit or action is instituted in connection with any controversy
arising out of this Agreement, the prevailing party shall be entitled to recover, in addition to
costs, such sum as the court may adjudge reasonable as attorneys’ fees in such suit or action and
on any appeal from any judgment or decree entered therein.

     12.4 Assignment. This Agreement and the rights and obligations hereunder, shall not be
assignable by either party hereto without the written consent of the other; provided, however, that
the foregoing shall not extend to assignments by Manager to any affiliate of Younan Properties,
Inc., assignments required by any insurance carrier in any matter relating to subrogation or an
assignment or other transfer by Owner in connection with a sale or any Property Financings (as
defined in Section 12.12); provided, further, that Manager may subcontract with affiliates
of Manager and/or third parties to assist in carrying out its duties hereunder as set forth in this
Agreement.

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     12.5 Amendments. Except as otherwise provided herein, all amendments to this Agreement
shall be in writing and executed by the party to be charged.

     12.6 Integration. This Agreement, and the Schedules attached hereto and made a part
hereof, supersede and take the place of any and all previous management agreements entered into
between the parties hereto relating to the Project.

     12.7 Governing Law. This Agreement is executed with respect to a project located in the
State of Texas and shall be governed by and construed in accordance with the laws of such state.

     12.8 Cooperation. Should any claim, demand, action or other legal proceeding arising out
of matters covered by this Agreement be made or instituted by any third party against a party to
this Agreement, the other party to this Agreement shall furnish such information and reasonable
assistance in defending such proceeding as may be requested by the party against whom such
proceeding is brought.

     12.9 Waiver of Rights. The failure of Owner or Manager to seek redress for violation, or
to insist upon the strict performance of any covenant, agreement, provision or condition of this
Agreement, shall not constitute a waiver of the terms of such covenant, agreement, provision or
condition at any subsequent time, or of the terms of any other covenant, agreement, provision or
condition contained in this Agreement.

     12.10 Successors and Assigns. This Agreement and each of the provisions hereof shall be
binding upon and inure to the benefit of the parties hereto and their respective heirs, executors,
administrators, successors and assigns.

     12.11 Non-Discrimination. There shall be no discrimination against or segregation of, any
person, or group of persons on account of race, color, creed, national origin or ancestry in the
sale, lease, sublease, transfer, use, occupancy, tenure or enjoyment of the Project, nor shall
Owner, Manager or any person claiming under or through them, establish or permit any such practice
or practices of discrimination or segregation with reference to the selection, location, number,
use or occupancy of tenants, lessees, subtenants, sublessees or vendees of the land.

     12.12 Subordination. This Agreement, and any and all rights of Manager hereunder, are and
shall be subject and subordinate to any financing (whether senior financing, mezzanine level
financing, or preferred equity) respecting the Project (or any portion thereof) (collectively, the
“Property Financings”), and any ground or master lease with respect to the Project or any portion
thereof (collectively, “Leases”), and all renewals, extensions, modifications, consolidations and
replacements thereof, and to each and every advance made or hereafter to be made under any such
Property Financings or Leases. This section shall be self-operative and no further instrument of
subordination shall be required. In confirmation of such subordination, Manager shall promptly
execute, acknowledge and deliver any instrument that Owner, the landlord under any of the Leases or
the holder of any such Property Financings or the trustee or beneficiary of any deed of trust or
any of their respective successors in interest may reasonably request to evidence such
subordination. At any time and from time to time, upon not less than ten (10) business days prior
notice from Manager or Owner, the certifying party shall furnish to

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the requesting party, or a designee thereof, an estoppel certifying that this Agreement is
unmodified and in full force and effect (or that this Agreement is in full force and effect as
modified and setting forth the modifications), the date to which Manager has been paid hereunder,
that to the knowledge of the certifying party, no default or an event of default has occurred and
is continuing or, if a default or an event of default shall exist, specifying in reasonable detail
the nature thereof and the steps being taken to remedy the same, and such additional information as
the requesting party may reasonably request. Any subordination or estoppel furnished pursuant to
this Section 12.12 may be relied upon by Owner, and its affiliates, Lenders, and any
prospective landlord or Lender of the Project or any portion thereof. Manager shall not
unreasonably withhold its consent to any amendment to this Agreement reasonably required by such
lender or lessor, provided that such amendment does not (i) increase Manager’s financial
obligations hereunder, or (ii) have a material adverse effect upon Manager’s rights hereunder, or
(iii) materially increase Manager’s non-economic obligations hereunder.

     12.13 Dispute Resolution. The parties hereby agree that, in order to obtain prompt and
expeditious resolution of any disputes under this Agreement, each claim, dispute or controversy of
whatever nature, arising out of, in connection with, or in relation to the interpretation,
performance or breach of this Agreement (or any other agreement contemplated by or related to this
Agreement or any other agreement between the parties), including without limitation any claim based
on contract, tort or statute, or the arbitrability of any claim hereunder (an “Arbitrable Claim”),
shall be settled by final and binding arbitration conducted in Los Angeles, California. The
arbitrability of any Arbitrable Claims under this Agreement shall be resolved in accordance with a
two-step dispute resolution process administered by Judicial Arbitration & Mediation Services, Inc.
(“JAMS”) involving, first, mediation before a retired judge from the JAMS panel, followed, if
necessary, by final and binding arbitration before the same, or if requested by either party,
another JAMS panelist. Such dispute resolution process shall be confidential and shall be
conducted in accordance with California Evidence Code Section 1119.

          (a) Mediation. In the event any Arbitrable Claim is not resolved by an informal
negotiation between the parties within fifteen (15) days after either party receives written notice
that a Arbitrable Claim exists, the matter shall be referred to the Los Angeles, California office
of JAMS, or any other office agreed to by the parties, for an informal, non-binding mediation
consisting of one or more conferences between the parties in which a retired judge will seek to
guide the parties to a resolution of the Arbitrable Claims. The parties shall select a mutually
acceptable neutral arbitrator from among the JAMS panel of mediators. In the event the parties
cannot agree on a mediator, the Administrator of JAMS will appoint a mediator. The mediation
process shall continue until the earliest to occur of the following: (i) the Arbitrable Claims are
resolved, (ii) the mediator makes a finding that there is no possibility of resolution through
mediation, or (iii) thirty (30) days have elapsed since the Arbitrable Claim was first scheduled
for mediation.

          (b) Arbitration. Should any Arbitrable Claims remain after the completion of the
mediation process described above, the parties agree to submit all remaining Arbitrable Claims to
final and binding arbitration administered by JAMS in accordance with the then existing JAMS
Arbitration Rules. Neither party nor the arbitrator shall disclose the existence, content, or
results of any arbitration hereunder without the prior written consent of all parties. Except as
provided herein, the California Arbitration Act shall govern the interpretation,

17

 

enforcement and all proceedings pursuant to this subsection. The arbitrator is without
jurisdiction to apply any substantive law other than the laws selected or otherwise expressly
provided in this Agreement. The arbitrator shall render an award and a written, reasoned opinion
in support thereof. Such award may include reasonable attorneys’ fees to the prevailing party.
Judgment upon the award may be entered in any court having jurisdiction thereof.

          (c) Costs. The parties shall bear their respective costs incurred in connection with
the procedures described in this Section 12.13, except that the parties shall equally share
the fees and expenses of the mediator or arbitrator and the costs of the facility for the hearing.

          (d) Survivability. This dispute resolution process shall survive the termination of
this Agreement. The parties expressly acknowledge that by signing this Agreement, they are giving
up their respective right to a jury trial.

[Signature Pages Follow]

18

 

     IN WITNESS WHEREOF, Owner and Manager have executed this Property Management and Leasing
Agreement as of the day and year first above written.

	 	 	 	 	 	 	 	 	 

	 	 	“MANAGER”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	YOUNAN PROPERTIES, L.P.	 	 
	 	 	a Maryland limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Younan Properties, Inc.	 	 
	 	 	 	 	a Maryland corporation	 	 
	 	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

NOTICE ADDRESS FOR MANAGER

21700 Topanga Canyon Blvd.

Suite 800

Woodland Hills, California 91367

Phone No: (818) 703-9600

Fax No.: (818)703-5907

 

 

	 	 	 	 	 	 	 	 	 

	 	 	“OWNER”	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	ONE GRAYSTONE CENTRE, L.P.,	 	 
	 	 	a Texas limited partnership	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	One Graystone GP, LLC,	 	 
	 	 	 	 	a Texas limited liability company,	 	 
	 	 	 	 	its general partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:
	 	 

	 	 
	 

	 	 	 	 	 	 

	 	 

NOTICE ADDRESS FOR OWNER

21700 Topanga Canyon Blvd.

Suite 800

Woodland Hills, California 91367

Phone No.: (818) 703-9600

Fax No.: (818)703-5907

 

 

SCHEDULE 1

LEGAL DESCRIPTION

(See Attached)

S1-1

 

SCHEDULE 2

     In addition to the expense reimbursements set forth in the Property Management and Leasing
Agreement, Owner agrees to pay to Manager the Management Fees and Leasing Commissions set forth
below for all of the services required of Manager pursuant to this Agreement.

     1. Management Fee. Owner shall pay Manager an annual fee (payable on a monthly basis)
equal to five percent (5.00%) of the Project Income.

     2. Leasing Commission. Owner shall pay Market Leasing Commissions (as defined below)
to Manager. As used herein, “Market Leasing Commissions” means the then prevailing market leasing
commissions paid to leasing brokers and professionals for similar office properties in the same
geographic market in which the Project is located. Concurrent with the approval of the initial
Annual Plan and each subsequent Annual Plan, the parties shall agree upon the amount of Market
Leasing Commissions payable to Manager during the succeeding calendar year.

     3. Capital Improvements Coordination Fee. In connection with any significant
development project or capital improvement project (other than tenant improvement projects) which
is supervised or administered by Manager, and not otherwise subject to a separate development
agreement with an affiliate of Manager, Manager shall be paid a coordination fee equal to five
percent (5%) of the total cost of the work.

     4. Tenant Improvements Coordination Fee. In connection with any tenant improvement
project which is supervised or administered by Manager, Manager shall be paid a coordination fee
equal to the greater of (i) five percent (5%) of the total cost of the work, and (ii) the
coordination fee, or similar arrangement, allocated in the terms of the underlying lease.

     In the event of the termination of this Agreement as provided in Article 9 hereof, the
compensation of Manager shall be prorated as of the effective date of such termination.

S2-1

 

SCHEDULE 3

(Schedule of Employees)

JOB TITLE

Asset Manager

Property Manager

Senior Operations Manager

Associate Asset Manager

Associate Project Accountant

Engineering Manager

Project Accountant

Administrative Assistant

Tenant Services Coordinator

Data Processing Clerk

Logistics Engineer

IT Manager

Junior Technical Support Technicians

IT Support Technician

Yardi System Administrator

Yardi Support Technician

S3-1

 

SCHEDULE 4

(Non-Reimbursable Personnel)

Senior Executives

Controller

Assistant Controller

S4-1

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