LEASE AGREEMENT between GREENWAY TOWER JOINT VENTURE, as Landlord, and ACE CASH EXPRESS, INC. as Tenant June 1, 2006
EXHIBIT 10.1
between
GREENWAY TOWER JOINT VENTURE,
as Landlord,
and
ACE CASH EXPRESS, INC.
as Tenant
as Tenant
June 1, 2006
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TABLE OF CONTENTS
ARTICLE I — DEFINITIONS | 1 | |||||||
1.1 | “Building” | 1 | ||||||
1.2 | “Premises” | 1 | ||||||
1.3 | “Tenant’s Proportionate Share” | 1 | ||||||
1.4 | “Commencement Date” | 2 | ||||||
1.5 | “Lease Term” | 2 | ||||||
1.6 | “Base Rental” | 2 | ||||||
1.7 | “Security Deposit” $N/A | 2 | ||||||
1.8 | “Amounts Due on Execution of Lease” – N/A | 2 | ||||||
1.9 | “Basic Costs” | 2 | ||||||
1.10 | “Basic Costs Base Rate” | 3 | ||||||
1.11 | “Excess Basic Costs” | 3 | ||||||
1.12 | “Energy Costs” | 3 | ||||||
1.13 | “Additional Rental” | 3 | ||||||
1.14 | “Common Areas” | 3 | ||||||
1.15 | “Service Areas” | 3 | ||||||
1.16 | “Net Rentable Area” | 3 | ||||||
1.17 | “Project” | 3 | ||||||
1.18 | “Building Standard Improvements“ or ”Building Standard” | 3 | ||||||
1.19 | “Normal Business Hours” | 3 | ||||||
1.20 | “Work Letter” | 4 | ||||||
ARTICLE II — LEASE | 4 | |||||||
2.1 | Lease Grant | 4 | ||||||
2.2 | Lease Term | 4 | ||||||
2.3 | Condition of Premises; Early Occupancy | 4 | ||||||
ARTICLE III — RENT | 4 | |||||||
3.1 | Rent | 4 | ||||||
3.2 | Base Rental | 4 | ||||||
3.3 | Additional Rental | 4 | ||||||
3.4 | Personal Property Taxes; Taxes on Leasehold Improvements | 5 | ||||||
3.5 | Security Deposit | 5 | ||||||
3.6 | Late Rent | 6 | ||||||
3.7 | Interest on Past Due Obligations | 6 | ||||||
ARTICLE IV — CONSTRUCTION | 6 | |||||||
ARTICLE V — OCCUPANCY AND CONTROL | 6 | |||||||
5.1 | Use | 6 | ||||||
5.2 | Governmental Laws and Regulations | 6 | ||||||
5.3 | Building Rules and Regulations | 6 | ||||||
5.4 | Entry by Landlord for Repairs and Inspections | 6 | ||||||
5.5 | Parking | 6 | ||||||
5.6. | Environmental Condition of Premises | 7 | ||||||
ARTICLE VI — SERVICES AND UTILITIES | 7 | |||||||
6.1 | Services to be Furnished by Landlord | 7 | ||||||
6.2 | Use of Electrical Services by Tenant | 8 | ||||||
6.3 | Interruption of Services | 8 | ||||||
ARTICLE VII — REPAIRS, MAINTENANCE AND ALTERATIONS | 8 | |||||||
7.1 | Acceptance of Premises by Tenant | 8 | ||||||
7.2 | Maintenance and Repair of Premises by Landlord | 8 | ||||||
7.3 | Repairs by Tenant | 8 | ||||||
7.4 | Alterations by Tenant | 9 | ||||||
7.5 | Surrender of Premises by Tenant | 9 | ||||||
ARTICLE VIII — ASSIGNMENT AND SUBLETTING BY TENANT | 9 | |||||||
8.1 | Consent | 9 | ||||||
8.2 | Landlord's Option | 10 | ||||||
8.3 | Proceeds of Transfer | 10 | ||||||
8.4 | Continuing Liability | 10 | ||||||
8.5 | Transfer of Tenant Ownership Interests | 10 | ||||||
8.6 | Bankruptcy | 10 | ||||||
ARTICLE IX — LIENS BY TENANT | 11 | |||||||
ARTICLE X — INSURANCE | 11 | |||||||
10.1 | Property Insurance | 11 | ||||||
10.2 | Liability Insurance | 11 | ||||||
10.3 | Policy Form | 11 | ||||||
10.4 | Liability of Landlord/Damages from Certain Causes | 11 | ||||||
10.5 | Waiver of Subrogation Rights | 11 | ||||||
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ARTICLE XI — INDEMNIFICATION OF LANDLORD BY TENANT | 12 | |||||||
ARTICLE XII — CASUALTY DAMAGE/DESTRUCTION OF PREMISES | 12 | |||||||
ARTICLE XIII — CONDEMNATION | 13 | |||||||
13.1 | Total Taking | 13 | ||||||
13.2 | Partial Taking | 13 | ||||||
13.3 | Temporary Taking | 13 | ||||||
13.4 | Award | 13 | ||||||
ARTICLE XIV — EVENTS OF DEFAULT/REMEDIES | 13 | |||||||
14.1 | Defaults by Tenant | 13 | ||||||
14.2 | Remedies | 14 | ||||||
14.3 | Remedies Cumulative | 15 | ||||||
14.4 | Landlord’s Lien/Contractual Security Interest (Intentionally Deleted) | 15 | ||||||
14.5 | Attorney’s Fees | 15 | ||||||
14.6 | No Implied Waiver by Landlord | 15 | ||||||
14.7 | Default by Landlord | 15 | ||||||
14.8 | Waiver Of Consumer Rights | 15 | ||||||
ARTICLE XV — PEACEFUL ENJOYMENT | 15 | |||||||
ARTICLE XVI — HOLDING OVER | 15 | |||||||
ARTICLE XVII — SUBORDINATION AND ATTORNMENT | 16 | |||||||
ARTICLE XVIII — CERTIFICATES TO BE PROVIDED BY TENANT | 16 | |||||||
18.1 | Certificate of Acceptance | 16 | ||||||
18.2 | Estoppel Certificates | 16 | ||||||
18.3 | Financial Statements | 16 | ||||||
ARTICLE XIX — LANDLORD’S INTEREST | 16 | |||||||
19.1 | Personal Liability of Landlord | 16 | ||||||
19.2 | Transfer by Landlord | 17 | ||||||
ARTICLE XX — MISCELLANEOUS | 17 | |||||||
20.1 | Notices | 17 | ||||||
20.2 | Broker Commissions | 17 | ||||||
20.3 | Severability | 17 | ||||||
20.4 | Recordation by Tenant | 17 | ||||||
20.5 | Place of Performance | 17 | ||||||
20.6 | Binding Effect | 17 | ||||||
20.7 | Time of Performance | 17 | ||||||
20.8 | Force Majeure | 17 | ||||||
20.9 | Graphics and Signage by Landlord | 18 | ||||||
20.10 | Entire Agreement | 18 | ||||||
20.11 | Waiver by Tenant | 18 | ||||||
20.12 | Joint and Several Liability | 18 | ||||||
20.13 | Gender and Number | 18 | ||||||
20.14 | Change of Building Name | 18 | ||||||
20.15 | Captions | 19 | ||||||
20.16 | Authority | 19 | ||||||
20.17 | Nondisclosure | 19 | ||||||
20.18 | Rules of Construction | 19 | ||||||
20.19 | Consents | 19 | ||||||
20.20 | No Oral Representations, Agreements or Warranties | 19 | ||||||
20.21 | Effect of Delivery of this Lease | 19 | ||||||
20.22 | Attorneys' Fees and Jury Trial | 19 | ||||||
ARTICLE XXI — ADDENDA AND EXHIBITS | 20 | |||||||
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THIS LEASE AGREEMENT (hereinafter referred to as the “Lease”), is made and entered into
effective as of the 1st day of June, 2006 (“Execution Date”), by and between GREENWAY
TOWER JOINT VENTURE (hereinafter called “Landlord”) and ACE CASH EXPRESS, INC., a Texas corporation
(hereinafter called “Tenant”).
ARTICLE I
DEFINITIONS
1.1 “Building”
“Building” shall mean the structure commonly known as Greenway Tower and being the
improvements now or hereafter constructed on the tract of land (the “Land”) more particularly
described on Exhibit “A” attached hereto and incorporated herein by reference for all purposes.
1.2 “Premises”
“Premises” shall mean the Existing Premises (as defined in this Section 1.2) from the date of
this Lease until the Effective Date (as defined in this Section 1.2) and from and after the
Effective Date, “Premises” shall mean the Existing Premises together with the Expansion Premises
(as defined in this Section 1.2). All references in this Lease to the “Premises” shall be deemed
to refer to the Existing Premises prior to the Effective Date and the Existing Premises and the
Expansion Premises from and after the Effective Date.
As of the Execution Date, the Existing Premises consist of 59,720 rentable square feet of
space in the Building comprised of the following:
(a) Third Floor — 4,712 rentable square feet of space located on the third (3rd) floor
of the Building;
(b) Sixth Floor — 14,501 rentable square feet of space located on the sixth (6th) floor
of the Building;
(c) Seventh Floor — 20,294 rentable square feet of space located on the seventh (7th)
floor of the Building; and
(d) Eighth Floor — 20,213 rentable square feet of space located on the eighth (8th)
floor of the Building.
The locations of the foregoing Premises are outlined on the floor plans attached hereto as
Exhibit “B” and incorporated herein by reference for all purposes. As of the date of this Lease,
the Existing Premises are stipulated for all purposes to contain 59,720 square feet of Net Rentable
Area.
Effective as of July 1, 2006 (the “Effective Date”), the Existing Premises shall be expanded
to include the following additional 13,132 rentable square feet of space in the Building (the
“Expansion Premises”) comprised of the following:
(e) First Floor — 2,508 rentable square feet of space located on the first (1st) floor
of the Building; and
(f) Fifth Floor — 10,624 rentable square feet of space located on the fifth (5th) floor
of the Building.
The locations of the Expansion Premises described in clauses (e) and (f) are outlined on the
floor plans attached hereto as Exhibit “B-1” and incorporated herein by reference for all purposes.
Landlord and Tenant stipulate that, as of the Effective Date, the Existing Premises and the
Expansion Premises contain 72,852 square feet of Net Rentable Area.
Tenant and Landlord agree that Tenant is not entitled to any expansion rights other than those
set forth in this Lease.
1.3 “Tenant’s Proportionate Share”
“Tenant’s Proportionate Share” shall mean 30.92% for the period from the date of this Lease
until the Effective Date, and 37.720% thereafter, calculated in each instance by dividing the Net
Rentable Area of the Premises by the Net Rentable Area of the Building, as set forth herein.
Notwithstanding anything to the contrary contained elsewhere herein, Landlord agrees that
increases of Tenant’s Proportionate Share of Basic Costs for Controllable Costs, as hereinafter
defined, will not exceed on an overall basis, an increase of more than four percent (4%) per year
over the prior year commencing with the twelve month period following the Base Year (for example,
by way of explanation but not by way of limitation, if the total of the Tenant’s Proportionate
Share of Basic Costs for the Base Year attributable to elements of cost for Controllable Costs is
$4.00 per rentable square foot of the Premises, the Tenant’s Proportionate Share of Basic Costs for
Controllable Costs for the twelve month period
LEASE AGREEMENT — Page 1
thereafter (the 2007-2008 year) could not exceed $4.16; Tenant’s Proportionate Share of Basic
Costs for Controllable Costs for the 2008-2009 year could not exceed four percent (4%) of the prior
year’s amount or a maximum of $4.33).
The term “Controllable Costs” shall mean all Basic Costs otherwise allowable under the
provisions of the Lease, except those expenses for ad valorem real estate taxes and insurance
premiums to the extent such insurance premiums are reasonably competitive. Notwithstanding
anything to the contrary contained elsewhere herein, it is expressly agreed that Tenant shall not
be required to pay Tenant’s Proportionate Share of Excess Basic Costs attributable to the Base
Year.
1.4 “Commencement Date”
“Commencement Date” shall mean, with respect to the Existing Premises, the Execution Date and,
with respect to the Expansion Premises, the Effective Date, subject to Section 2.2 hereof.
1.5 “Lease Term”
“Lease Term” shall mean the term commencing on the Commencement Date and continuing until June
30, 2016, unless sooner terminated as hereinafter provided, subject to the option to renew
contained in the Addendum attached to this Lease.
1.6 “Base Rental”
Until the Effective Date, “Base Rental” shall mean the sum of $1,121,295.00 per annum, payable
in equal monthly installments of $93,441.25 each.
Beginning on the Effective Date, “Base Rental” shall mean the following:
(a) from July 1, 2006 through June 30, 2007 the sum of $593,743.80 in monthly
installments of $49,478.65 ($8.15 per rentable square foot);
(b) from July 1, 2007 through June 30, 2010 the sum of $2,895,867.00 payable in monthly
installments of $80,440.75 ($13.25 per rentable square foot);
(c) from July 1, 2010 through June 30, 2014 the sum of $4,589,676.00 payable in monthly
installments of $95,618.25 ($15.75 per square foot); and
(d) from July 1, 2014 through June 30, 2016 the sum of $2,513,394.00 payable in monthly
installments of $104,724.75 ($17.25 per square foot).
Each monthly installment is payable on or before the first day of each month during the term
of the Lease, without offset, demand, set off or deduction except as otherwise expressly provided
for in the Lease.
1.7 “Security Deposit” $N/A
1.8
“Amounts Due on Execution of Lease” — N/A
“Amounts Due on Execution of Lease” shall mean the following amounts, each of which shall be
due and payable by Tenant to Landlord upon execution of this Lease:
Prepaid Base Rental* | $ | 0 | ($ x | /12 = $ = $ ) | ||||||||||||||||
Prepaid Additional Rental | ||||||||||||||||||||
Excess Basic Costs | $ | 0 | ||||||||||||||||||
Energy Costs | $ | 0 | ($1.45 x | /12 = $ ) | ||||||||||||||||
Parking | $ | 0 | ||||||||||||||||||
Security Deposit | $ | 0 | ||||||||||||||||||
Total Due Upon Execution | $ | 0 |
* | Representing the monthly installments of annual Base Rental for the first full calendar month of the Lease Term. |
1.9 “Basic Costs”
“Basic Costs” shall mean all direct and indirect costs and expenses in each calendar year of
every kind and nature which Landlord shall pay or become obligated to pay because of or in
connection with the ownership, operation, maintenance, repair, replacement, protection and security
of the Project, determined in accordance with accounting principles consistently applied, including
specifically, without limitation, the following: (a) salaries and wages of all employees engaged
in the direct operation, maintenance and security of the Project, including taxes, insurance and
benefits (including pension, retirement and fringe benefits) relating thereto; (b) costs incurred
by Landlord in maintaining an office in the Building; (c) cost of all supplies, and materials used
in the operation, maintenance and security of the Project; (d) cost of all water, gas, sewer and
other utility services supplied to the Project, with the sole exception of Energy Costs; (e) cost
of all maintenance and service agreements for the Project and the equipment therein, including,
without limitation, parking facilities, janitorial service, landscaping, fire protection,
sprinklers, window cleaning, elevator maintenance, energy management and other service contracts
entered into by Landlord in connection with the Project; (f) cost of all insurance relating to the
Project, including the cost of and deductibles under casualty, rental and liability insurance
applicable to the Project and Landlord’s personal property used in connection therewith; (g) all
taxes, assessments and governmental charges (foreseen or unforeseen, general or special, ordinary
or extraordinary) whether federal, state, county or municipal and whether they be levied by taxing
districts or authorities presently taxing the Project or by others subsequently created or
otherwise, and any other taxes and assessments attributable to the Project or its operation, and
all taxes of whatsoever nature that are imposed in substitution for or in lieu of any of the taxes,
assessments or other charges herein defined, together with any and all reasonable costs of
protesting taxes and legal fees
LEASE AGREEMENT — Page 2
incident thereto; provided, however Basic Costs shall not include excess profits taxes,
franchise taxes or state and federal income taxes, except to the extent levied or assessed in lieu
of any taxes described in the preceding portions of this subclause; (h) cost of repairs and general
maintenance, including, without limitation, reasonable depreciation charges applicable to all
equipment used in repairing and maintaining the Project, but specifically excluding repairs and
general maintenance paid by proceeds of insurance or by Tenant or by other third parties; (i) cost
of capital improvements items, amortized over a period not to exceed three (3) years, which are
acquired primarily for the purpose of reducing Basic Costs or which are required to comply with any
change in the laws, rules or regulations of any governmental authority or which will extend the
life of the Building; (j) management fees (not to exceed 5% of total annual gross income) paid by
Landlord to third parties or to management companies owned by, or management divisions of,
Landlord; and (k) costs of accounting and professional services (including inspection and
consultation). Basic Costs shall not include the cost of capital improvements to the Project
(except as provided above); expenses for repair, replacement and general maintenance to the extent
paid by proceeds of insurance or other third parties; costs of alterations attributable solely to
tenants other than Tenant; depreciation of the Project (except as provided above); principal and
interest payments on loans to Landlord; or lease commissions and any applicable costs attributable
to leasing of the Building.
1.10 “Basic Costs Base Rate”
Shall mean the actual aggregate amount of Basic Costs incurred by Landlord in connection with
the Project during the twelve (12) month period beginning on the Execution Date (the “Base Year”).
1.11 “Excess Basic Costs”
The positive amount by which the actual aggregate amount of Basic Costs incurred by Landlord
in connection with the Project during any calendar year exceeds the Basic Costs Base Rate (it being
agreed and understood that in no event shall such amount be a negative number).
1.12 “Energy Costs”
“Energy Costs” shall mean all costs incurred by Landlord for: (a) any and all forms of fuel or
energy utilized in providing electricity to the Project; (b) sales, use, excise and other taxes and
charges assessed by governmental authorities or utility companies on energy sources supplied to the
Project; and (c) all other costs incurred by Landlord in providing electricity to the Project.
1.13 “Additional Rental”
“Additional Rental” shall mean the sum of the following: (a) Tenant’s Proportionate Share of
the Excess Basic Costs; plus (b) Tenant’s Proportionate Share of all Energy Costs incurred by
Landlord in connection with the Project during any calendar year.
1.14 “Common Areas”
“Common Areas” shall mean those areas within the Building or the Project devoted to open
corridors, lobbies, elevator foyers, restrooms, vending areas and other similar facilities which
Landlord, from time to time, elects to make available for the common use or benefit of tenants
generally and/or the public.
1.15 “Service Areas”
“Service Areas” shall mean the elevator, electrical and heating, ventilating and air
conditioning mechanical rooms, janitorial closets, building stairs, fire towers, elevator shafts,
flues, vents, stacks, pipe shafts, and vertical ducts (but shall not include any such areas for the
exclusive use of any particular tenant such as special stairs or elevators), to which Tenant and
other occupants of the Building will not have access without the prior written consent of Landlord,
which may be conditioned upon such requirements and payment of such charges as Landlord may deem
appropriate.
1.16 “Net Rentable Area”
“Net Rentable Area” shall mean, for all purposes of this Lease, 193,119 square feet with
respect to the Building, and the Net Rentable Area set forth in Section 1.2 above with respect to
the Premises. Net Rentable Area of the Premises includes an allocation of the square footage within
Common Areas and Service Areas. No deductions from Net Rentable Area are made for columns or
projections necessary to the Building. Landlord advises Tenant and Tenant acknowledges that net
rentable area of a building can vary based upon many factors, including the method and measuring
tools used in calculating net rentable area and differences in the application of such methods or
measuring tools. Tenant also acknowledges that Landlord has given Tenant the opportunity to verify
the Net Rentable Area of the Premises and Building as described herein. Accordingly, Landlord and
Tenant agree that the Net Rentable Area of the Building and the Premises are hereby stipulated for
all purposes hereof to be the number of square feet specified above, whether the same should be
more or less as a result of variations resulting from actual construction and completion of the
Premises for occupancy, the methods or measuring tools used to calculate the Net Rentable Area
and/or any differences in the application of such methods or measuring tools.
1.17 “Project”
“Project” shall mean the Land and the Building, the Common Areas, the Service Areas, the
parking facilities, parking garage and other structures, improvements and landscaping, now or
hereafter placed, constructed or erected thereon.
1.18 “Building Standard Improvements” or “Building Standard”
Intentionally deleted.
Intentionally deleted.
1.19 “Normal Business Hours” shall mean 7:00 a.m. until 7:00 p.m., Monday
through Friday, and 8:00 a.m. until 1:00 p.m. on Saturday, except for holidays, which for purposes
hereof shall mean New Year’s Day, President’s Day, Memorial Day, Independence Day, Labor Day,
Thanksgiving Day, Christmas Day and such other national holidays as may be established by the
United States government.
LEASE AGREEMENT — Page 3
1.20 “Work Letter” shall mean the Work Letter Agreement, if any, entered into
between Landlord and Tenant which is attached to this Lease as Exhibit “D” and made a part hereof.
ARTICLE II
LEASE
2.1 Lease Grant
Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises for the
Lease Term, subject to and upon the terms and provisions set forth herein.
2.2 Lease Term
The term of this Lease shall commence on the Commencement Date and shall continue thereafter
until the expiration of the Lease Term, unless this Lease is sooner terminated or extended to a
later date under any other term or provision hereof.
2.3 Condition of Premises; Early Occupancy.
(a) Tenant has inspected and approved the condition of the Premises and agrees that the
Premises are suitable for Tenant’s use and occupancy, except for any latent structural or
mechanical defects in the Expansion Premises and items described in the Work Letter
Agreement. Tenant acknowledges that Landlord has not undertaken and shall not be required to
perform any modifications, alterations or improvements to the Premises, and that, except as
provided in this Lease Agreement, all installations and improvements now or hereafter placed
on the Premises shall be at Tenant’s cost (and Tenant shall pay any ad valorem taxes and
increased insurance thereon or attributable thereto).
(b) Tenant agrees to construct or have constructed within the Premises, in accordance
with working drawings, plans and specifications prepared by Tenant’s architect and approved
by Landlord and Tenant, the improvements which are described in the approved plans. All
construction by Tenant within the Premises shall be subject to the requirements of Exhibit
“D” attached hereto and made a part hereof.
(c) Tenant may enter the portion of the Premises located on the First and Fifth Floors
of the Building prior to the Effective Date to construct Tenant’s Work (as defined in the
Work Letter attached hereto as Exhibit D). Such entry shall be subject to all of the terms
and conditions of this Lease and Exhibit D attached hereto and incorporated herein by this
reference, excepting only the obligation to pay the monthly installment of Base Rent or
Tenant’s Pro Rata Share of Energy Costs.
ARTICLE III
RENT
3.1 Rent
Tenant agrees to pay during the Lease Term to Landlord, without any demand, setoff or
deduction whatsoever (except as otherwise expressly permitted by this Lease), the Base Rental,
Additional Rental and all such other sums of money as shall become due under this Lease or any
exhibits or addenda to this Lease, all of which are sometimes herein collectively called “rent”,
for the nonpayment of which Landlord shall be entitled to exercise all such rights and remedies as
are herein provided in the case of the nonpayment of Base Rental. The obligation of Tenant to pay
rent is an independent covenant, and no act or circumstance whatsoever, whether such act or
circumstance constitutes a breach of covenant by Landlord or not, shall release Tenant from the
obligation to pay rent hereunder.
3.2 Base Rental
The Base Rental shall be due and payable by Tenant to Landlord, and Tenant hereby agrees to
pay Landlord Base Rental, in the monthly amounts set forth in Section 1.6 above, on the first day
of each calendar month during the Lease Term and any extensions or renewals thereof, at Landlord’s
address provided herein (or at such other address as may be designated by Landlord in writing from
time to time), in advance, and without any demand, setoff or deduction whatsoever. If the term of
the Lease commences on a date other than the first day of a month or terminates on a day other than
the last day of a month, then the installments of Base Rental and any adjustments thereto for such
month or months shall be prorated based on the number of days in such month.
3.3 Additional Rental
In addition to the Base Rental required to be paid by Tenant to Landlord pursuant to the
provisions hereof, Tenant shall also pay Landlord Additional Rental during the Lease Term and any
extensions or renewals thereof, at Landlord’s address provided herein (or at such other address as
may be designated by Landlord in writing from time to time), and without any demand, setoff or
deduction whatsoever, calculated and payable in accordance with the following provisions:
(a) Landlord may collect such Additional Rental, or any portion thereof, monthly, in advance,
based upon an estimate, and/or in arrears on a yearly basis. In the event Landlord elects to
collect the Additional Rental or any portion thereof in arrears, Tenant shall pay such Additional
Rental within thirty (30) days after the date Tenant receives a statement
LEASE AGREEMENT — Page 4
from Landlord. Landlord shall also have the option to make an estimate of the Additional
Rental for each upcoming calendar year, or portion thereof in the event of a partial calendar year,
and upon written notice to Tenant, may require that Tenant pay Landlord Additional Rental based
upon such estimates at the same time and on the same date that the monthly installments of Base
Rental are due hereunder, in which event, Tenant will begin paying the Additional Rental with the
next installment of Base Rental due after receipt of Landlord’s notice, and will continue paying
such increase until Landlord revises Landlord’s estimate. In the event that Landlord delivers
notice of the estimate to Tenant for any calendar year after the particular calendar year has
already commenced, then Landlord shall also be entitled to require Tenant to pay concurrently with
the next installment of Base Rental due under the Lease the amount by which (i) the product of
one-twelfth (1/12th) of the amount of the estimated Additional Rental for such calendar year times
the number of calendar months in such year which have already wholly or partially expired, exceeds
(ii) the Additional Rental which has previously been paid by Tenant with respect to such calendar
year. At any time and from time to time during the Lease Term, Landlord will have the right by
written notice to Tenant (which notice shall include an explanation as to the justification for
such adjustment), to change the amount of the monthly Additional Rental payable by Tenant hereunder
to reflect more accurately, in the reasonable judgment of Landlord, any change in Landlord’s
estimate of the actual Additional Rental, such change to be effective with the next installment of
Base Rental due after receipt by Tenant of Landlord’s written notice. Any amounts paid based on
Landlord’s estimate of the Additional Rental shall be subject to adjustment pursuant to Section
3.3(b) hereof when actual Basic Costs and Energy Costs are available for each calendar year.
(b) By April 1 of each calendar year during Tenant’s occupancy, or as soon thereafter as is
reasonably practical, Landlord shall furnish to Tenant a statement of Landlord’s calculation of
Additional Rental for the previous calendar year. If for any calendar year Additional Rental
collected for the prior year, as a result of Landlord’s estimate of Basic Costs or Energy Costs, is
in excess of the Additional Rental actually due during such prior year, then Landlord shall refund
to Tenant any overpayment within thirty (30) days following the date Landlord delivers such
statement to Tenant. Likewise, subject to Tenant’s rights under Section 3.3(c) below, Tenant shall
pay to Landlord, within thirty (30) days following receipt of such statement, any underpayment of
Additional Rental with respect to the prior year.
(c) Tenant, at its expense, shall have the right no more frequently than once per calendar
year, following prior written notice to Landlord, to review Landlord’s books and records relating
to Additional Rental. Such request by Tenant must be made within forty five (45) days after
receipt of Landlord’s annual statement regarding Additional Rental. Tenant is entitled to object
to Landlord’s calculation of Tenant’s Proportionate Share of Excess Basic Costs and/or Energy Costs
by sending notice specifying such objection and the reasons therefor to Landlord no later than
thirty (30) days after Landlord makes such books and records available for examination. If Tenant
objects to any portion of Landlord’s annual statement regarding Additional Rental, Landlord shall
refer the matter to an independent certified public accountant, whose certification as to the
proper amount shall be final and conclusive as between Landlord and Tenant. Tenant shall promptly
pay the cost of such certification unless such certification determines that the annual statement
or any separate statement was in error to Tenant’s detriment. Tenant shall have no right to review
such books and records following the expiration of such forty (45) day period. Pending resolution
of any Tenant objection to the annual statement, Tenant shall continue paying Additional Rent in
the amounts determined by Landlord, subject to adjustment after any such objections are so
resolved.
(d) Notwithstanding any provision contained herein to the contrary, if less than ninety five
percent (95%) of the Net Rentable Area of the Building is occupied during any calendar year of the
Lease Term, Additional Rental for purposes of Section 3.3(a) and 3.3(b) hereof shall be increased
to the extent necessary to reflect the charges which would have been incurred if ninety five
percent (95%) of the Net Rentable Area of the Building had been occupied during such year.
(e) If the term of the Lease commences on a date other than the first day of a calendar year,
or ends on a date other than the last day of a calendar year, then during the first and/or last
calendar years of the Lease Term, as appropriate, Basic Costs and the Basic Costs Base Rate shall
be prorated on the basis of the number of days elapsing during such year to reflect the portion of
the Basic Costs and the Basic Costs Base Rate which is allocable to the portion of such first or
last year which is included within the Lease Term.
3.4 Personal Property Taxes; Taxes on Leasehold Improvements
(a) Tenant agrees to pay, before delinquency, all taxes, fees or charges, rates, duties and
assessments, imposed, levied, or assessed directly against Tenant, or indirectly through Landlord,
which accrue during the Lease Term upon Tenant’s equipment, furniture, trade fixtures and other
personal property located in the Premises. If any such taxes for which Tenant is liable are levied
or assessed against Landlord or Landlord’s property, and if Landlord elects to pay same, or if the
assessed value of the Landlord’s property is increased by inclusion of any items for which Tenant
is responsible, and Landlord elects to pay the taxes based upon such increase, Tenant shall pay to
Landlord that part of the taxes for which Tenant is liable hereunder within thirty (30) days
following the date that Landlord delivers a statement to Tenant (including a copy of the assessment
or other documentation showing the amount of such impositions applicable to Tenant’s property).
(b) Tenant agrees that, as between Tenant and Landlord, Landlord has the sole and absolute
right to contest taxes levied against the Premises and the Project (other than taxes levied
directly against Tenant’s personal property within the Premises). Tenant, to the maximum extent
permitted by law; (i) irrevocably waives any and all rights that Tenant may have to receive from
Landlord a copy of notices received by Landlord regarding the appraisal or reappraisal, for tax
purposes, of all or any portion of the Premises or the Project (including, without limitation, any
rights set forth in Section 41.413 of the Texas Property Tax Code, as such section may be amended
and/or supplemented from time to time); (ii) assigns to Landlord any and all rights of Tenant to
protest or appeal any governmental appraisal or reappraisal of the value of all or any portion of
the Premises or the Project, including without limitation, any rights arising under Sections 41.413
and 42.015 of the Texas Property Tax Code; and (iii) agrees that it will not protest or appeal any
such appraisal or reappraisal before a governmental authority without the express written
authorization of Landlord.
3.5 Security Deposit
Intentionally deleted.
LEASE AGREEMENT — Page 5
3.6 Late Rent
Intentionally deleted.
3.7 Interest on Past Due Obligations
All installments of rent and any other sums payable by Tenant hereunder which are not paid
within thirty (30) days of the due date shall bear interest (“Interest”) from the date due until
paid at a per annum rate of interest equal to the lesser of the maximum lawful rate, or the rate of
eighteen percent (18%) per annum.
ARTICLE IV
CONSTRUCTION
If construction is required with respect to the Premises prior to the Effective Date, it shall
be done pursuant to the provisions of the Work Letter attached hereto. Tenant acknowledges that
except as otherwise provided in the Work Letter attached hereto, Landlord has not undertaken and
shall not be required to perform any modifications, alterations or improvements to the Premises,
and that, except as provided in the Work Letter, all installations and improvements now or
hereafter placed on the Premises shall be at Tenant’s cost (and Tenant shall pay ad valorem taxes
and increased insurance thereon or attributable thereto), which cost shall be payable by Tenant to
Landlord upon demand as additional rent.
Post construction TAS (Texas Accessibility Standards) inspections must be completed by
Accessology, Inc. or other Sabre Realty Management, Inc. pre-approved inspector.
ARTICLE V
OCCUPANCY AND CONTROL
5.1 Use
The Premises shall be used for financial and related services or general office purposes only
and for no other purposes. Tenant agrees not to use or permit the use of the Premises for any
purpose which is illegal, or which may result in cancellation of Landlord’s insurance policies or
result in an increase in the premiums thereunder.
5.2 Governmental Laws and Regulations
Tenant will be solely responsible for obtaining all certificates and licenses necessary for
Tenant’s occupancy of the Premises and conducting its business therein. Tenant will, at Tenant’s
sole cost and expense, comply with all applicable laws, ordinances, rules, and regulations, now in
force or hereafter enacted, of any governmental entity or agency having jurisdiction over the
Premises and relating to the use or occupancy of the Premises or the conduct of Tenant’s business
therein.
5.3 Building Rules and Regulations
Tenant will comply, and will cause all of its agents, employees, invitees and visitors to
comply, with all rules and regulations of the Building now or hereafter adopted by Landlord,
including but not limited to the rules and regulations which are set forth on Exhibit “C” attached
hereto and incorporated herein by reference for all purposes. Landlord shall at all times have the
right to reasonably change the rules and regulations of the Building or to reasonably amend them in
any manner deemed by Landlord to be appropriate for the safety, efficiency, care and cleanliness of
the Building or the Premises and not inconsistent with this Lease nor imposing any additional
obligation on Tenant to make payments to Landlord, or the promotion of safety, care, cleanliness or
good order therein, and all such amendments or new rules shall be binding upon Tenant five (5) days
after written notice thereof to Tenant. All rules shall be applied on a non-discriminatory basis,
but nothing herein shall be construed to give Tenant or any other person the any claim, demand or
cause of action against Landlord arising out of the violation of such rules by any other tenant,
occupant or visitor of the Building, or out of the enforcement or waiver of the rules by landlord
in any particular instance. Landlord will use reasonable efforts to enforce rules by other
tenants, to the extent that Tenant’s use of the Premises is impaired by violations..
5.4 Entry by Landlord for Repairs and Inspections
Landlord, its agents and representatives shall be permitted to enter into and upon any part of
the Premises at all reasonable hours for reasonable purposes, including to inspect the same, or to
show the Premises to prospective purchasers, mortgagees, tenants (during the last six (6) months of
the Lease Term) or insurers, or to clean or make repairs, alterations or additions thereto, or to
perform any other act or action required or permitted to be performed by Landlord under this Lease;
provided, however, that (a) Landlord shall use reasonable efforts to avoid or minimize any
interference with, the operation of the business of Tenant, (b) landlord shall provide reasonable
advance written or oral notice of Landlord’s entry into the Premises for such purpose (except for
emergencies, when no such notice will be required), and (c) Tenant’s access to the Premises shall
be reasonably maintained. Notwithstanding anything in this Section 5.4 to the contrary, Landlord
is not obligated to provide any notice to Tenant in connection with entry into the Premises to
provide the janitorial services set forth on Exhibit E to this Lease.
5.5 Parking
During the term of the Lease, provided Tenant is not in default in the payment or performance
of its obligations under this Lease beyond any applicable grace or cure period, Landlord agrees to
designate fifty-four (54) reserved surface parking spaces in the area shown on Exhibit B-1
attached hereto and incorporated herein for all purposes. In addition to the reserved parking
provided for on Exhibit B-1, Tenant shall have the non-exclusive use in common with
Landlord, other tenants of the building, their guests and invitees, of the non-reserved common
automobile parking areas, driveways and footways associated with the Building, subject to the rules
and regulations for the use thereof prescribed from time to time by Landlord.
LEASE AGREEMENT — Page 6
No specific designated spaces are to be assigned to Tenant except as otherwise provided in
this Section 5.5. Landlord shall have the right to reserve any parking spaces not reserved for
Tenant as it elects and condition use thereof on such terms as it elects.
5.6. Environmental Condition of Premises
Tenant shall not dispose, store, treat, process, manufacture or otherwise handle at, in, under
or about the Premises, any hazardous substances, solid wastes, or other substances known or
suspected to pose a threat to health or the environment, including, without limitation, any
“hazardous waste” or “hazardous substance” as defined under any applicable environmental law,
asbestos, polychlorinated biphenyls, petroleum-based products and any substances which under
applicable environmental laws require special handling or notification of any federal, state or
local governmental entity (collectively, “Hazardous Materials”). Tenant shall conduct and complete
all investigations, studies, sampling and testing and all remedial removal and other actions
necessary to clean up and remove all Hazardous Materials generated by Tenant on or from any portion
of the Premises in accordance with all applicable environmental laws within sixty (60) days after
Tenant first obtains knowledge or notice of such Hazardous Materials; provided that: (a) Landlord
shall be entitled to approve the contractors and the remediation contract; (b) Tenant shall cause
such contract to provide that Landlord shall be provided with copies of all reports, notices and
other written information prepared or submitted in connection with the work, Landlord shall be
named as additional insured on the insurance policies to be carried thereunder, Landlord shall be
entitled to rely upon the contents of any reports and other information prepared in connection with
the remediation process, and the work shall be completed in such a manner as to not interfere with
other tenants or Landlord in the use or occupancy of the Building; and (c) at Landlord’s option,
and at Tenant’s expense, Landlord may conduct and complete such investigations, studies, sampling,
testing and remedial removal, in which event, Tenant shall reimburse Landlord for all costs
incurred in connection therewith within ten (10) days following receipt of an invoice therefor.
Tenant shall notify Landlord immediately upon Tenant’s receipt of notice from any governmental
authority of a violation of any applicable environmental law and any knowledge Tenant may have of
the presence of Hazardous Materials at, in, under or about the Premises. Tenant agrees to defend,
indemnify and hold harmless Landlord, its employees, agents, shareholders, officers and directors
from and against any claims, demands, obligations, penalties, fines, suits, liabilities,
settlements, damages, losses, costs or expenses (including, without limitation, attorneys’ and
consultant fees and expenses, investigation, laboratory fees and expenses, clean-up costs, court
costs and other litigation expenses) of whatever kind or nature, known or unknown, arising out of
or in any way related to the presence, removal or production of any Hazardous Materials generated
by Tenant on or from any portion of the Premises.
ARTICLE VI
SERVICES AND UTILITIES
6.1 Services to be Furnished by Landlord
Landlord agrees to furnish Tenant, for the portion of the Premises occupied by Tenant the
following services:
(a) Electricity for lighting fixtures, mechanical services, general Building operations
and equipment, including business equipment and accessories, customary for the purpose for
which the Premises may be used under this Lease.
(b) Hot and cold water at those points of supply provided for general use of other tenants in
the Building.
(c) Landlord shall provide heat and air-conditioning to the Premises as required therein
from 7:00 a.m. to 7:00 p.m., Monday through Friday, and 8:00 a.m. to 1:00 p.m. on Saturdays,
subject to the other provisions of the Lease, except that (i) Landlord shall not be required
to provide such services on Sundays or local, state or national holidays; and (ii) Landlord
shall provide such services during hours other than those stated above upon at least twenty
four (24) hours prior notice from Tenant to Landlord at the rate of $45.00 per hour, per
floor, with a two (2) hour minimum, which amount shall be payable by Tenant to Landlord
within ten (10) days following receipt of an invoice therefor;
(d) Janitorial service, weekdays except for normal business holidays, including
janitorial service to the Premises substantially in accordance with the janitorial
specifications which are set forth on Exhibit E attached hereto.
(e) Routine maintenance and electric lighting service for all Common Areas of the
Building in the manner and to the extent deemed by Landlord to be standard.
(f) Subject to the provisions of Section 6.2 hereof, facilities to provide electric
current in the manner and to the extent deemed by Landlord to be standard.
(g) Fluorescent bulb replacement in the Premises and fluorescent and incandescent bulb
replacement in the Common Areas.
(h) Access to the Building, which may be limited by Landlord during hours other than
Normal Business Hours. Landlord may require those tenants requesting access to the Building
during other than Normal Business Hours to pay a $25.00 deposit for each magnetic access card
which Landlord supplies for after-hours access to the Building, which deposit shall be fully
refundable, at any time, upon surrender of each such card. Landlord, however, shall have no
liability to Tenant, its employees, agents, invitees or licensees for losses due to theft or
burglary, or for damages done by unauthorized persons on the Premises and neither shall
Landlord be required to insure against any such losses. Tenant shall cooperate fully in
Landlord’s efforts to maintain security in the Building and shall follow all regulations
promulgated by Landlord with respect thereto.
(i) An elevator key-card access system to allow Tenant to restrict access, 24 hours a
day, 7 days a
LEASE AGREEMENT — Page 7
week, to the portion of the Premises located on the 7th and 8th floors for Tenant’s
exclusive use. Tenant acknowledges and agrees that Landlord has not warranted, and does not
hereby warrant, the effectiveness of any such security system and does not undertake any
responsibility for security of the Premises. Tenant agrees that Landlord and its agents are
entitled to access to the Premises for the purposes set forth in the Lease.
6.2 Use of Electrical Services by Tenant
Tenant’s electrical equipment and overhead lighting shall be restricted to that equipment
which individually and collectively does not have a rated capacity greater than equipment and
lighting normally utilized in general office use, as determined by Landlord, which in no event
shall exceed a collective average of three (3) xxxxx per square foot of area within the Premises.
If Landlord should determine that Tenant’s consumption of electrical services exceeds the
limitations set forth in the preceding sentence, or exceeds the capacity of existing wiring, risers
or feeders to the Building, then Landlord shall be entitled, in its sole and absolute discretion,
to require Tenant to terminate any excess usage and, in such event, Tenant shall, at its sole cost
and expense, remove any equipment and/or lighting necessary to achieve compliance within ten (10)
days after receiving notice from Landlord. At Landlord’s option, in the event Landlord elects to
provide any such excess electrical requirements, electrical current for such equipment and
machinery may be provided by Landlord through metering devices installed, at Tenant’s expense, by
Landlord or the utility company providing such service. In the event Tenant has excess electricity
requirements for which Landlord does not elect to separately meter, Landlord’s engineer shall be
entitled to determine the amount of excess electricity to be allocated to Tenant based upon the
power requirements of any such equipment or machinery. Tenant shall pay for all costs of
installation and maintenance of submeters, wiring, air conditioning and other items required by
Landlord, in Landlord’s discretion, to accommodate Tenant’s excess design loads and capacities.
Tenant shall pay to Landlord within ten (10) days following receipt of a request therefor, the cost
of the excess consumption of electrical service at rates from time to time determined by Landlord.
Landlord may, at its option, upon not less than fifteen (15) days prior written notice to Tenant,
discontinue the availability of extraordinary utility service.
6.3 Interruption of Services
Except as expressly provided in this Lease, the failure by Landlord to any extent to furnish,
or the interruption or termination of any services required of Landlord under this Lease, in whole
or in part, shall not render Landlord liable to Tenant in any respect, nor be construed as an
eviction of Tenant or breach of any implied warranty of suitability, habitability or otherwise,
create or permit Tenant to receive an abatement of Rent, or relieve Tenant from the obligation to
fulfill any covenant or agreement hereof, and Tenant shall have no claim or offset or abatement of
rent or damages on account of any interruption in services under this Lease. If any services or
utilities are interrupted or discontinued for more than three (3) consecutive days, and Tenant
shall have given written notice respecting such interruption or discontinuance to Landlord, Rent
hereunder shall thereafter be abated to the extent that the Premises are unusable, provided if
occupancy of the Premises is substantially impaired, then the Rent shall be abated in full,
commencing on the date Landlord shall have failed to cure, until such time as such services or
utilities are restored or Tenant begins using the Premises again, whichever shall first occur.
Such abatement of Rent shall be Tenant’s sole recourse in the event of a discontinuance or
interruption of service or utilities required by Landlord hereunder. Notwithstanding the foregoing
to the contrary, under no circumstances shall any interruption or discontinuance of any services or
utilities not required to be provided by Landlord hereunder, or of any extra or additional services
or utilities that Tenant may request under Article 6.1 of the Lease, give rise to any claims for
damages of any kind, or for abatement, set-off or withholding of Rent, or relieve Tenant from its
obligations hereunder in any way whatsoever, or give rise to claims that such interruption or
discontinuance constitutes an eviction or disturbance of Tenant’s use or possession of the Premises
or any part thereof.
ARTICLE VII
REPAIRS, MAINTENANCE AND ALTERATIONS
7.1 Acceptance of Premises by Tenant
See Section 2.3 above.
7.2 Maintenance and Repair of Premises by Landlord
Except as otherwise expressly provided herein, Landlord shall not be required to make any
repairs to or maintain the Premises. Subject to Article 7.3 below, Landlord shall keep the Common
Areas of the Project in good and sanitary condition, working order and repair (the cost of which
shall be included in Basic Costs, as described in Article 1, except as limited therein with respect
to capital expenditures), including reasonable and timely efforts to maintain and repair Building
elevators, lavatory fixtures in Common Areas, roof, exterior walls, parking lot and other Common
Area systems, such as mechanical, electrical, HVAC and plumbing, as necessary to maintain the
Building in a condition comparable to other comparable office buildings in the Las Colinas area.
7.3 Repairs by Tenant
Tenant will, at Tenant’s own cost and expense, keep the Premises in good condition and repair,
and shall repair or replace to the reasonable satisfaction of Landlord, under the supervision of
the Landlord, any injury or damage done to the Premises, the Project, or any part thereof caused by
Tenant or Tenant’s agents, employees, invitees or visitors; provided, that Tenant shall make no
repairs to the Premises or the Project without the prior written consent of Landlord. The
performance by Tenant of its obligation to maintain and make repairs shall be conducted only by
contractors approved by Landlord, in accordance with such requirements as Landlord may elect to
impose in connection therewith, after plans and specifications therefor have been approved by
Landlord. If Tenant fails to make such repairs or replacements promptly, or within fifteen (15)
days of occurrence, or if Landlord for any reason otherwise elects to do so, Landlord may, at its
option, make such repairs or replacements, and Tenant shall repay the cost thereof to Landlord
within thirty (30) days following receipt of a request therefor together with Interest from the
date expended until repaid.
LEASE AGREEMENT — Page 8
7.4 Alterations by Tenant
Tenant will not make or allow to be made any alterations to the Premises, install any vending
machines in the Premises (other than currently existing vending machines), or place signs,
decorations or other matters on the Premises or the exterior glass of the Premises which are
visible from outside the Premises (other than currently existing signs and decorations), without
first obtaining the written consent of Landlord in each such instance, which consent may not be
unreasonably withheld or delayed. Any and all such alterations, physical additions or improvements
when made to the Premises by Tenant, shall be at Tenant’s sole cost and expense and shall be
reasonably supervised by Landlord. Landlord shall have no obligation to repair, maintain or insure
same. Tenant agrees to pay all reasonable costs and expenses incurred by Landlord in connection
with such alterations, additions and improvements, including the cost of reviewing plans and
specifications and supervising construction. All work to be performed by or for Tenant pursuant
hereto will be performed, at Tenant’s sole cost and expense, diligently and in a good and
workmanlike manner and in compliance with all applicable laws, rules, ordinances, and regulations
of any public authority having jurisdiction over the Building and/or Tenant. Any and all
alterations to the Premises shall become the property of Landlord upon termination of this Lease
(except for movable equipment or furniture owned by Tenant). Subject to Section 7.5 below,
Landlord may, nonetheless, require Tenant to remove any and all fixtures, equipment and other
improvements installed on the Premises and to restore the Premises to the condition existing prior
to installation thereof.
7.5 Surrender of Premises by Tenant
At the termination of the Lease, whether caused by lapse of time or otherwise, Tenant shall at
once surrender possession of the Premises and deliver the Premises to Landlord in as good repair
and condition as at the commencement of Tenant’s occupancy, reasonable wear and tear and damage by
casualty excepted, and shall deliver to Landlord all keys to the Premises, and, if such possession
is not immediately surrendered, Landlord may enter upon and take possession of the Premises and
expel or remove Tenant and any other person who may be occupying the Premises, or any part thereof,
by force, if necessary, without having any civil or criminal liability therefor. Tenant shall
remove all furniture, movable trade fixtures and equipment within ten (10) days of the termination
of the Lease if this Lease is terminated prior to the scheduled expiration date and without
Tenant’s written consent. All such removals shall be accomplished in a good and workmanlike manner
so as not to damage the Premises, the Building or the plumbing, electrical lines or other
utilities. Tenant agrees to repair, at Tenant’s expense, any damage to the Premises or the
Building resulting from the removal of any such items of property including, without limitation,
repairing the floor and patching and painting the walls where reasonably required by Landlord. All
furniture, movable trade fixtures and equipment, and at Landlord’s option all alterations,
additions and improvements, installed by Tenant not removed on or prior to the date of such
termination (or the 10 day period provided in this Article VII) shall thereupon be conclusively
deemed to have been abandoned by Tenant and may, at Landlord’s option, be appropriated, sold,
stored, destroyed or otherwise disposed of by Landlord without notice or compensation to Tenant or
any other person. Tenant will pay to Landlord within fifteen (15) days following receipt of a
request therefor, all expenses incurred by Landlord in connection with Landlord’s disposition of
such property, including without limitation, the cost of repairing any damage to the Building or
the Premises. Tenant’s obligations under this paragraph shall survive the expiration or earlier
termination of this Lease.
ARTICLE VIII
ASSIGNMENT AND SUBLETTING BY TENANT
8.1 Consent
(a) Tenant shall not assign, sublease, transfer, or license this Lease or any interest
therein (collectively and individually, a “Transfer”), without the prior written consent of
Landlord. Any attempted Transfer by Tenant in violation of the terms and covenants of this
paragraph shall, at Landlord’s option, exercisable in Landlord’s sole and absolute
discretion, be void. Consent by Landlord to one or more Transfers shall not operate as a
waiver of Landlord’s rights as to any subsequent Transfer. In determining whether or not to
consent to a proposed Transfer, Landlord may consider and may refuse to consent to the
proposed Transfer on the basis of, in addition to any other reasons Landlord may deem
appropriate, the following: (i) the proposed transferee’s financial condition or history is
not sufficient, in Landlord’s opinion, for the obligations undertaken by such party in
connection with the Transfer; (ii) the proposed transferee’s business or use of the Premises;
(iii) the proposed use is different than the Permitted Use, would require more parking
spaces, cause traffic congestion, or require an increase in utility usage or other services
or more management attention, time or expenditures than that required in connection with the
Premises prior to the proposed Transfer; (iv) the proposed transferee is a government agency
or already an occupant of the Building or is a person or entity with whom Landlord is then
negotiating or has negotiated with within the previous six (6) months; (v) Tenant is in
default under this Lease beyond applicable grace or cure periods; (vi) any portion of the
Building or Premises would become subject to additional or different governmental laws or
regulations as a consequence of the proposed Transfer and/or the proposed transferee’s use or
occupancy of the Premises; (vii) any modifications or alterations would be required to the
Premises in connection with the proposed Transfer; (viii) the rentals payable by the proposed
transferee in connection with the Transfer are less than the greater of the market rental
rate for space in the Building, as determined by Landlord, or the rent payable by Tenant
under this Lease; and/or (ix) the proposed Transfer or the use to be made of the Premises
would violate any other agreements affecting the Premises, the Building or Landlord, or would
increase by more than five percent (5%) the density of employees and/or other persons using
the Premises from the density maintained by Tenant prior to the Transfer. Tenant acknowledges
that the foregoing list is not an exclusive list of the reasons for which Landlord may
withhold its consent to a proposed Transfer, and that Landlord may withhold its consent for
any reason that Landlord deems appropriate.
(b) Tenant shall not in any manner advertise the Premises or this Lease as being
available for assignment or sublease without the prior written consent of Landlord, which, in
Landlord’s sole and absolute discretion, may be withheld or denied. In the event Landlord
consents to any such advertisement by Tenant, Landlord shall be entitled to condition such
consent and to restrict the contents of the advertisement in such manner
LEASE AGREEMENT — Page 9
and on such terms as Landlord deems necessary or advisable. Tenant will strictly comply
with the terms of Landlord’s consent and any conditions or restrictions imposed by Landlord
in connection therewith. Consent by Landlord to any such advertising shall not operate as
consent by Landlord to any ensuing assignment or sublease, or as a waiver by Landlord of
Landlord’s rights as to any subsequent advertising desired or requested by Tenant.
(c) Tenant shall bear all reasonable costs and expenses incurred by Landlord in
connection with a proposed Transfer, including without limitation, reasonable attorneys fees
incurred in connection with the review, preparation and/or negotiation of any documents or
other information related to the Transfer.
(d) Notwithstanding anything to the contrary in this Section 8.1, Landlord’s consent
shall not be required for a Transfer by Tenant as follows: (i) to an entity that controls
Tenant, that Tenant controls or that is under common control with Tenant as of the date
hereof, (ii) to an entity into which Tenant is merged or consolidated, provided that the
surviving entity’s balance sheet (prepared in accordance with generally accepted accounting
principles) establishes that the surviving entity then has a net worth equal to or greater
than $50,000,000, or (iii) to an entity which acquires all, or substantially all, of the
assets or stock of Tenant, provided that such purchaser’s balance sheet (prepared in
accordance with generally accepted accounting principles) establishes that such purchaser
then has a net worth equal to or greater than $50,000,000 (hereinafter, any of the foregoing
shall be referred to as a “Related Transfer”). Furthermore, the provisions of Sections 8.2
and 8.3shall not apply to a Related Transfer, but Tenant shall comply with the terms of this
Section 8.1. The term “control” shall mean fifty-one percent (51%) of the voting ownership
of the entity.
8.2 Landlord’s Option
Intentionally deleted.
8.3 Proceeds of Transfer
If Landlord consents to a Transfer, and as a condition thereto which the parties hereby agree
is reasonable, Tenant shall pay Landlord twenty-five percent (25%) of any Transfer Premium derived
by Tenant from such Transfer. “Transfer Premium” shall mean all rent, additional rent or other
consideration payable by such Transferee in excess of the Rent payable by Tenant under this Lease
(on a monthly basis during the Term, and on a per rentable square foot basis, if less than all of
the Premises is transferred), after deducting the reasonable expenses incurred by Tenant for any
changes, alterations and improvements to the Premises and any brokerage commissions in connection
with the Transfer. If part of the consideration for such Transfer shall be payable other than in
cash, Landlord’s share of such non-cash consideration shall be in such form as is reasonably
satisfactory to Landlord. The percentage of the Transfer Premium due Landlord hereunder shall be
paid as Tenant receives payment from such Transferee in any calendar month in excess of the Rent
under this Lease for such month, within ten (10) days after Tenant receives such payments. In lieu
of accepting such percentage of the Transfer Premium, Landlord may elect in writing within ninety
(90) days after Tenant’s notice, to increase the monthly Base Rent hereunder by an amount equal to
(a) Landlord’s share of such Transfer Premium, divided by (b) the number of months remaining in the
Term after the date of the Transfer.
8.4 Continuing Liability
Notwithstanding any Transfer, Tenant and any guarantor of Tenant’s obligations under the Lease
shall at all times remain fully responsible and liable for the payment of the rent herein specified
and for compliance with all of its other obligations under the Lease (even if future Transfers
occur subsequent to the assignment or subletting by Tenant, and regardless of whether or not
Tenant’s approval has been obtained for such future Transfers).
8.5 Transfer of Tenant Ownership Interests
Intentionally deleted.
8.6 Bankruptcy
Notwithstanding any provision contained herein to the contrary, if the Lease is assigned to
any person or entity pursuant to the provisions of the Bankruptcy Code, 11 U.S.C. §101 et seq. (the
“Bankruptcy Code”), any and all monies or other considerations payable or otherwise to be delivered
in connection with such assignment shall be directly paid or delivered to Landlord, shall be and
remain the exclusive property of Landlord and shall not constitute property of Tenant or of the
estate of Tenant within the meaning of the Bankruptcy Code. Any and all monies or other
considerations constituting Landlord’s property under the preceding sentence not directly paid or
delivered to Landlord shall be held in trust for the benefit of Landlord and be promptly paid or
delivered to Landlord. Any person or entity to which the Lease is assigned pursuant to the
provisions of the Bankruptcy Code, shall be deemed without further act or deed to have assumed all
of the obligations arising under the Lease on and after the date of such assignment. Any such
assignee shall, upon demand, execute and deliver to Landlord an instrument confirming such
assumption.
LEASE AGREEMENT — Page 10
ARTICLE IX
LIENS BY TENANT
Tenant will not permit any mechanic’s lien(s) or other liens to be placed upon the Premises,
the Building or Tenant’s interest in this Lease and nothing in this Lease shall be deemed or
construed in any way as constituting the consent or request of Landlord, express or implied, by
inference or otherwise, to any person for the performance of any labor or the furnishing of any
materials to the Premises, or any part thereof, nor as giving Tenant any right, power, or authority
to contract for or permit the rendering of any services or the furnishing of any materials that
would give rise to any mechanics’ or other liens against the Premises. In the event any such lien
is attached to the Premises, the Building, or Tenant’s interest in this Lease, then, Tenant shall
discharge the same within thirty (30) days after written notice from Landlord by bond or otherwise,
and if Tenant shall fail to do so, Landlord may pay the amount necessary to remove such lien,
without being responsible for investigating the validity thereof, and the amount so paid shall be
deemed Additional Rental reserved under this Lease due an payable upon demand, without limitation
as to other remedies available to Landlord under this Lease.
ARTICLE X
INSURANCE
10.1 Property Insurance
Landlord shall maintain primary, non-contributory fire and extended coverage insurance on the
Building and the machinery, personal property and equipment owned by Landlord and used in
connection with the Building, in such amounts as may be desired by Landlord, but in an amount of
not less than 90% of the full insurable replacement value of the Project (exclusive of the costs of
excavation, foundations, and footings, and such risks to be covered by Tenant’s insurance) or such
other amount necessary to prevent Landlord from being a co-insurer and such other coverage as
Landlord shall deem appropriate or that may be required by any Holder (as hereinafter defined).
Landlord shall not be required to maintain insurance on property owned by any tenant of the
Building or for which any tenant of the Building is legally responsible, or for alterations,
leasehold improvements or additions made, installed or purchased by or on behalf of any tenant of
the Building. All insurance required by Landlord hereunder shall be maintained at the expense of
Landlord (as a part of the Basic Costs), and payments for losses thereunder shall be made solely to
Landlord or the mortgagees of Landlord as their interest shall appear or as they shall agree.
Tenant shall maintain at its expense, in an amount equal to full replacement cost, fire and
extended coverage insurance on all of its personal property, including removable trade fixtures,
located in the Premises and in such additional amounts as may be required to meet Tenant’s
obligations pursuant to Article XII hereof.
10.2 Liability Insurance
Tenant and Landlord shall, each at its own expense, maintain a policy or policies of
commercial general liability insurance with respect to the respective activities of each in the
Building naming Landlord as an additional insured by endorsement in form acceptable to Landlord,
and issued by and binding upon an insurance company, such insurance to afford minimum protection of
not less than $2,000,000 combined single limit coverage of bodily injury, property damage or
combination thereof. Landlord shall not be required to maintain insurance against thefts within
the Premises or the Building generally.
10.3 Policy Form
All insurance required of Tenant shall be in form and content and written by one or more
insurance companies licensed to do business in the state of Texas and rated not less than “X” and
carrying a financial rating of not less than “secure” as designated in the most current Best’s
Insurance Guide. Tenant shall, at Landlord’s request from time to time, provide Landlord with
current certificates of insurance evidencing Tenant’s compliance with Section 10.1 and with Section
10.2 hereof. Tenant shall obtain the agreement of Tenant’s insurers to notify Landlord that a
policy is due to expire at least ten (10) days prior to such expiration.
10.4 Liability of Landlord/Damages from Certain Causes
Landlord shall not be liable to Tenant or to Tenant’s employees, agents, licensees, or
visitors, or to any other person whomsoever, for and Tenant hereby releases Landlord from (i) any
injury or damage to person or property due to the Building or the Land or any part thereof becoming
out of repair or by defect in or failure of pipes or wiring, or by the backing up of drains or by
the bursting or leaking of pipes, faucets and plumbing fixtures or by gas, water, steam,
electricity or oil leaking, escaping or flowing into the Premises, (ii) any loss or damage that may
be occasioned by or through the acts or omissions of other tenants in the Building, or any person
entering the Building, (iii) for any loss or damage to any property or person occasioned by theft,
fire, act of God, public enemy, injunction, riot, insurrection, war, court order, requisition or
order of governmental authority, or any other matter beyond the control of Landlord, or (iv) any
damage or inconvenience which may arise through repair or alteration of any part of the Building or
the Premises, INCLUDING WITHOUT LIMITATION, ANY OF THE FOREGOING MATTERS CAUSED BY THE SOLE OR
CONCURRENT NEGLIGENCE OF LANDLORD, but excluding any of the foregoing caused by Landlord’s gross
negligence or intentional misconduct. Tenant agrees that all personal property upon the Premises
shall be at the risk of Tenant only, and that Landlord shall not be liable for any damage thereto
or theft thereof.
10.5 Waiver of Subrogation Rights
Anything in this Lease to the contrary notwithstanding, Landlord and Tenant each hereby waive
any and all rights of recovery, claim, action or cause of action, against the other, its agents,
officers, or employees, for any loss or damage that may occur to the Premises, the Building, or any
improvements thereto, or any personal property of any party therein, by reason of fire, the
elements, or any other cause(s) which are insured against under the terms of the standard fire and
LEASE AGREEMENT — Page 11
extended coverage insurance policies referred to in Section 10.1 hereof, regardless of cause
or origin, including negligence of the other party hereto, its agents, officers, or employees.
ARTICLE XI
INDEMNIFICATION OF LANDLORD BY TENANT
To the extent permitted by applicable law, Tenant agrees that it will indemnify and hold
Landlord harmless of, from and against (i) all fines, suits, loss, cost, liability, claims,
demands, actions and judgments of every kind and character by reason of any breach, violation or
nonperformance of any term, provision, covenant, agreement or condition on the part of the Tenant
hereunder and (ii) all claims, demands, actions, damages, loss, cost, liabilities, expenses and
judgments suffered by, recovered from or asserted against Landlord on account of injury or damage
to person or property to the extent that any such damage or injury may be incident to, arise out of
or be caused, either proximately or remotely, wholly or in part, by an act, omission, negligence or
misconduct on the part of Tenant or any of its agents, servants, employees, contractors, patrons,
guests, licensees or invitees or of any other person entering upon the Premises under or with the
express or implied invitation or permission of Tenant or when any such injury or damage is the
result, proximate or remote, of the violation by Tenant or any of its agents, servants, employees,
contractors, patrons, guests, licensees or invitees of any law, ordinance or governmental order of
any kind, or any of the rules and regulations included in the Lease (as such rules and regulations
may hereafter at any time or from time to time be amended or supplemented), or when any such injury
or damage may in any other way arise from or out of the occupancy or use by Tenant, its agents,
servants, employees, contractors, patrons, guests, licensees or invitees of the Premises, SUCH
INDEMNITY BY TENANT OF LANDLORD SHALL INCLUDE MATTERS ARISING IN WHOLE OR IN PART AS A RESULT OF
THE SOLE OR CONCURRENT NEGLIGENCE OF LANDLORD but shall exclude matters arising out of Landlord’s
gross negligence or intentional misconduct. Tenant covenants and agrees that in case Landlord shall
be made a party to any litigation commenced by or against Tenant or relating to the Lease or to the
Premises, then Tenant shall pay all costs and expenses, including reasonable attorneys’ fees and
court costs, incurred by or imposed upon Landlord by virtue of any such litigation and the amount
of all such costs and expenses, including attorneys’ fees and court costs, shall be paid by Tenant
to Landlord within ten (10) days following receipt of a request therefor, plus Interest from the
date expended until payment.
ARTICLE XII
CASUALTY DAMAGE/DESTRUCTION OF PREMISES
If the Premises, the Building or any part thereof shall be damaged by fire or other casualty,
Tenant shall give prompt written notice thereof to Landlord. If the Building shall be so damaged
that substantial alteration or reconstruction of the Building shall, in Landlord’s sole opinion, be
required (whether or not the Premises shall have been damaged by such casualty), or in the event
any mortgagee of Landlord should require that the insurance proceeds payable as a result of a
casualty be applied to the payment of the mortgage debt, Landlord may, at its option, terminate
this Lease by notifying Tenant in writing of such termination within sixty (60) days after the date
of such casualty (such notice to include a termination date giving Tenant ninety (90) days to
vacate the Premises), but Landlord may so elect only if the Project shall be damaged by fire or
other casualty or cause such that: (a) repairs cannot reasonably be completed within one hundred
twenty (120) days after being commenced without the payment of overtime or other premiums, (b) any
holder of a mortgage or deed of trust covering the Project shall require that the insurance
proceeds be used to pay the indebtedness secured by such mortgage or deed of trust, or (c) the
damage is not covered by Landlord’s insurance. If Landlord does not thus elect to terminate this
Lease, Landlord shall commence and proceed with reasonable diligence to restore the Building to
substantially the same condition in which it was immediately prior to the happening of the
casualty, except that Landlord’s obligation to restore shall not exceed the scope of the work
required to be done by Landlord in originally constructing the Building and installing any
leasehold improvements in the Premises constructed by Landlord or with an allowance from Landlord
(the ownership of which improvements would revert to Landlord upon the expiration or termination of
this Lease). When the Premises have been restored by Landlord as provided in this Article, Tenant
shall complete the restoration of the Premises, including the reconstruction of all improvements in
excess of improvements that Landlord is responsible to construct and the restoration of Tenant’s
furniture and equipment. All cost and expense of reconstructing the Premises to a level in excess
of improvements Landlord is responsible for constructing shall be borne by Tenant. Landlord shall
not be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant
resulting in any way from such damage or the repair thereof, except that, subject to the provisions
of the next sentence, Landlord shall allow Tenant a fair diminution of rent during the time and to
the extent the Premises are unfit for occupancy. If the Premises or any other portion of the
Building be damaged by fire or other casualty resulting from the fault or negligence of Tenant or
any of Tenant’s agents, employees, or invitees, the rent hereunder shall not be diminished during
the repair of such damage.
Notwithstanding anything to the contrary in this Article XII, if the Premises or the Building
shall be damaged by any cause or means whatsoever not caused by the negligence or fault of Tenant,
its agents, or employees, and if said damage can be repaired within a period of 60 working days
after such occurrence by using standard working procedures and methods, Landlord shall enter and
complete such repairs prior to the expiration of the said 60 day period and this Lease shall not be
affected but shall continue in full force and effect. However, if said damage cannot be repaired
or is not repaired within such 60 day period, then this Lease at the option of Tenant shall cease
and terminate as of the date of such occurrence, and Tenant shall pay Rent hereunder to such date
and immediately surrender the Premises to Landlord, unless within a period of 60 days from the date
of such occurrence Tenant has agreed to a longer period of time to effect the repairs or Landlord
has provided to Tenant satisfactory evidence that such repairs can be completed within 10 days of
the expiration of such 60 day period. If Tenant has so agreed to a longer period or Landlord has
furnished such satisfactory evidence, then this Lease shall continue in full force and effect and
Landlord shall complete the repairs within
LEASE AGREEMENT — Page 12
the time agreed upon or specified, except that Rents hereunder shall be reduced or abated
while such repairs are being made for the period of time and in proportion that the Premises are
untenantable beginning with the date of the occurrence. If, however, such damage is the result of
the fault of Tenant, Tenant’s employees or its agents, and if insurance covering is not obtainable
by landlords generally in the area, such damage shall be repaired by and at the expense of Tenant
under the control, direction and supervision of Landlord, and the Rent shall continue without
abatement or reduction.
ARTICLE XIII
CONDEMNATION
13.1 Total Taking
If the whole or substantially the whole of the Project, Building or Premises should be taken
for any public or quasi-public use, by right of eminent domain or otherwise or should be sold in
lieu of condemnation, then this Lease shall terminate as of the date when physical possession of
the Project, Building or Premises is taken by the condemning authority.
13.2 Partial Taking
If less than the whole or substantially the whole of the Project, Building or Premises is thus
taken or sold, Landlord (and if more than ten percent [10%] of the Net Rentable Area of the
Premises shall be taken or if access to the Project or restrooms serving the Premises is materially
impaired, Tenant) may terminate this Lease by giving ninety (90) days written notice thereof to
Tenant (or if applicable, Landlord), provided such notice must be given no later than 180 days
after the date of such taking or sale; in which event this Lease shall terminate as of the date
when physical possession of such portion of the Project, Building or Premises is taken by the
condemning authority. If the Lease is not so terminated upon any such taking or sale, and a
portion of the Premises is taken in connection therewith, the Base Rental payable hereunder shall
be diminished by an equitable amount, and Landlord shall, to the extent Landlord deems feasible,
restore the Building and the Premises to substantially their former condition, but such work shall
not exceed the scope of the work done by Landlord in originally constructing the Building and
installing improvements in the Premises, nor shall Landlord in any event be required to spend for
such work an amount in excess of the amount received by Landlord as compensation for such taking
after the exercise by any mortgagee of the Building of any option to apply such proceeds against
Landlord’s debt to the mortgagee.
13.3 Temporary Taking
Intentionally deleted.
13.4 Award
All amounts awarded upon a taking of any part or all of the Building or the Premises shall
belong to Landlord and Tenant shall not be entitled to and expressly waives all claims to any such
compensation except that Tenant shall have the right to file any separate claim available to Tenant
for any taking of Tenant’s personal property and fixtures belonging to Tenant and removable by
Tenant upon the expiration of the Lease Term and for moving expenses.
ARTICLE XIV
EVENTS OF DEFAULT/REMEDIES
14.1 Defaults by Tenant
The following events shall be events of default by Tenant under this Lease: (i) Tenant shall
fail to pay when due any installment of the rent hereby reserved, unless such failure is cured
within ten (10) days after written notice; (ii) Tenant shall fail to comply with any other term,
provision or covenant of the Lease as and when required hereunder, unless such failure is cured
within thirty (30) days after receipt of written notice (or such additional time as may be
expressly provided in this Lease); (iii) the leasehold hereunder demised shall be taken on
execution or other process of law in any action against Tenant; (iv) Tenant shall fail to promptly
move into and take possession of the Premises when the Premises are ready for occupancy; (v) Tenant
becomes insolvent, or makes a transfer in fraud of creditors, or makes an assignment for the
benefit of creditors, or admits in writing its inability to pay its debts as they become due; (vi)
Tenant is generally not paying its debts as such debts become due; (vii) a receiver, trustee or
custodian is appointed for, or takes possession of, all or substantially all of the assets of
Tenant or any of the Premises, either in a proceeding brought by Tenant or in a proceeding brought
against Tenant and such appointment is not discharged or such possession is not terminated within
sixty (60) days after the effective date thereof, or Tenant consents to or acquiesces in such
appointment or possession; (viii) Tenant files a petition for relief under the Bankruptcy Code or
any other present or future federal or state insolvency, bankruptcy or similar law (all of the
foregoing hereinafter collectively called “applicable Bankruptcy Law”) or an involuntary petition
for relief is filed against Tenant under any applicable Bankruptcy Law and such petition is not
dismissed within sixty (60) days after the filing thereof, or an order for relief naming Tenant is
entered under any applicable Bankruptcy Law, or any composition, rearrangement, extension,
reorganization or other relief of debtors now or hereafter existing is requested or consented to by
Tenant; (ix) any other event occurs hereunder which is designated as a default; (x) Tenant defaults
in its obligations under any other contract, agreement, lease, or writing with Landlord; or (xi)
any of the events referred to in subheadings (v), (vi), (vii) and (viii) shall occur with respect
to any guarantor of the payment or performance of any Tenant’s obligations hereunder and shall not
be remedied within the time set forth in such subheadings. Notwithstanding the foregoing, any
default under clause (ii) of this Section 14.1, which by its nature cannot reasonably be cured
within the thirty (30) day period provided therein, Tenant shall have such additional time as may
be reasonably necessary to cure such default, provided: (a) Tenant shall commence such cure
immediately after receipt of Landlord’s notice of default, (b) Tenant thereafter diligently and
continuously prosecutes such cure to completion, (c) Tenant immediately cures any condition which
poses a threat of physical injury or harm to people or property, (d) such default does not entail
or create a condition which: (1) violates any law, (2) unreasonably disturbs, bothers,
LEASE AGREEMENT — Page 13
annoys or interferes with any other occupant of the Building, or such occupant’s employees,
agents or guests, or (3) would cause Landlord to be in violation of any law or any deed of trust,
mortgage loan, lease or other agreement to which Landlord is a party, or which gives any other
tenant of the Building the right to cancel its lease.
14.2 Remedies
If an event of default shall have occurred and is continuing, Landlord shall have the right at
its election, then or at any time thereafter, to pursue any one or more of the following remedies
without notice or demand, except as hereinafter provided:
(i) Terminate the Lease by giving notice thereof to Tenant, in which event Tenant shall
immediately surrender the Premises to Landlord and if Tenant fails so to do, Landlord may,
without prejudice to any other remedy which it may have for possession or arrearages in rent,
enter upon and take possession of the Premises and expel or remove Tenant and any other
person who may be occupying said Premises, or any part thereof, by force, if necessary,
without being liable for prosecution or any claim of damages therefor and Tenant hereby
agrees to pay to Landlord within ten (10) days following receipt of a request therefor the
amount of all loss and damage which Landlord may suffer by reason of such termination,
whether through inability to relet the Premises on satisfactory terms or otherwise,
specifically including, but not limited to (a) all reasonable expenses necessary to relet the
Premises which shall include the cost of renovating, repairing and altering the Premises for
a new Tenant or Tenants, advertisements and brokerage fees, and (b) any increase in insurance
premiums caused by the vacancy of the Premises. If such termination is caused by the failure
to pay rent and/or the abandonment of any substantial portion of the Premises, Landlord may
elect, by sending written notice thereof to Tenant, to receive liquidated damages in an
amount equal to the rental payable hereunder for the month during which the Lease is
terminated times twelve (12) which shall be in lieu of the payment of loss and damage
Landlord may suffer by reason of such termination as provided in the preceding sentence but
which shall not be in lieu of or reduce in any way any amount (including accrued rent) or
damages due to breach of covenant (whether or not liquidated) payable by Tenant to Landlord
which accrued prior to the termination of the Lease. Nothing contained in the Lease shall
limit or prejudice the right of Landlord to prove for and obtain in proceedings for
bankruptcy or insolvency by reason of the termination of the Lease, an amount equal to the
maximum allowed by any statute or rule of law in effect at the time when, and governing the
proceedings in which, the damages are to be proved, whether or not the amount be greater,
equal to, or less than the amount of the loss or damages referred to above.
(ii) Enter upon and take possession of the Premises and expel or remove Tenant or any
other person who may be occupying said Premises, or any part thereof, by force, if necessary,
without having any civil or criminal liability therefor and, without terminating the Lease,
Landlord may (but shall be under no obligation to) relet the Premises or any part thereof for
the account of Tenant, in the name of Tenant or Landlord or otherwise, without notice to
Tenant, for such term or terms (which may be greater or less than the period which would
otherwise have constituted the balance of the term of the Lease) and on such conditions
(which may include concessions or free rent) and for such uses as Landlord in its absolute
discretion may determine and Landlord may collect and receive any rents payable by reason of
such reletting. In no event shall Tenant be entitled to any excess of any rent received upon
such reletting above the rent herein reserved. Tenant agrees to pay Landlord within ten (10)
days following receipt of a request therefor all expenses necessary to relet the Premises,
which shall include the cost of renovating, repairing and altering the Premises for a new
tenant or tenants, advertisements and brokerage fees, and Tenant further agrees to pay
Landlord within ten (10) days following receipt of a request therefor any deficiency that may
arise by reason of such reletting. Landlord shall not be responsible or liable for any
failure to relet the Premises or any part thereof or for any failure to collect any rent due
upon such reletting. No such re-entry or taking of possession of the Premises by Landlord
shall be construed as an election on Landlord’s part to terminate the Lease unless a written
notice of such termination is given to Tenant pursuant to Section 14.2(i) above.
(iii) Without having any obligation to do so, Landlord may do or perform whatever Tenant
is obligated to do or perform under the terms of the Lease, and if necessary, may enter upon
the Premises in so doing, by force, if necessary, without having any civil or criminal
liability therefor, and Tenant agrees to reimburse Landlord within ten (10) days following
receipt of a request therefor for any expenses which Landlord may incur in thus effecting
compliance with Tenant’s obligations under the Lease and Tenant further agrees that Landlord
shall not be liable for any damages resulting to Tenant from such action, whether caused by
the negligence of Landlord or otherwise.
No repossession of or re-entering on the Premises or any part thereof pursuant to Section
14.2(ii) and (iii) above or otherwise and no reletting of the Premises or any part thereof pursuant
to Section 14.2(ii) shall relieve Tenant or any guarantor of its liabilities and obligations
hereunder, all of which shall survive such repossession or re-entering. In the event of any such
repossession or re-entering on the Premises or any part thereof by reason of the occurrence of an
event of default, Tenant will continue to be obligated to pay to Landlord the rent and all other
sums required to be paid by Tenant hereunder. Notwithstanding any such reletting or re-entry or
taking possession, Landlord may at any time thereafter elect to terminate this Lease for any prior
default. In the event that Landlord at any time locks out, dispossesses or otherwise prevents
Tenant from gaining possession of the Premises, whether pursuant to the provisions of this Section
14.2, any other provision of this Lease or under any right available to Landlord at law, Landlord
shall have no obligation to provide notice thereof to Tenant, to provide Tenant with a key to the
Premises, or to permit Tenant to reenter or have access to the Premises. TENANT AGREES THAT
LANDLORD SHALL HAVE NO DUTY (AND HEREBY WAIVES AND RELEASES LANDLORD FROM ANY IMPLIED OR STATUTORY
DUTY) TO MITIGATE DAMAGES OR TO RELET OR ATTEMPT TO RELET THE PREMISES UPON THE OCCURRENCE OF A
DEFAULT BY TENANT UNDER THE LEASE. HOWEVER, IF THE FOREGOING WAIVER AND RELEASE IS NOT EFFECTIVE,
IT IS AGREED AND UNDERSTOOD THAT LANDLORD SHALL NOT BE REQUIRED TO INCUR ANY COSTS OR EXPENSES IN
CONNECTION THEREWITH, LANDLORD SHALL NOT BE REQUIRED TO TAKE ANY ACTION IN CONNECTION WITH THE
PREMISES WHICH LANDLORD DOES NOT GENERALLY TAKE IN CONNECTION WITH OTHER VACANT SPACE IN THE
BUILDING, LANDLORD SHALL NOT BE REQUIRED TO OFFER BETTER TERMS WITH RESPECT TO THE PREMISES THAN
LANDLORD IS OFFERING WITH RESPECT TO OTHER VACANT SPACE IN THE BUILDING, AND LANDLORD SHALL NOT BE
REQUIRED TO MAKE ANY CONCESSIONS, CONSTRUCT ANY IMPROVEMENTS OR GRANT ANY ALLOWANCES IN CONNECTION
WITH LANDLORD’S EFFORTS TO RELET THE PREMISES.
LEASE AGREEMENT — Page 14
14.3 Remedies Cumulative
Pursuit by Landlord of any remedy provided in this Lease shall not preclude pursuit of any
other remedies provided herein or by law, nor shall pursuit of any remedy herein provided
constitute a forfeiture or waiver of any rent due to Landlord hereunder or of any damages accruing
to Landlord by reason of the violation of any of the terms, provisions or covenants contained in
this Lease. No right or remedy herein conferred upon or reserved to Landlord is intended to be
exclusive of any other right or remedy, and each and every right and remedy shall be cumulative of
and in addition to any other right or remedy given hereunder or now or hereafter existing at law or
in equity or by statute. In addition to other remedies provided in the Lease, Landlord shall be
entitled, to the extent permitted by applicable law, to injunctive relief in case of the violation,
or attempted or threatened violation, of any of the covenants, agreements, conditions or provisions
of the Lease, or to a decree compelling performance of any of the covenants, agreements, conditions
or provisions of the Lease, or to any other remedy allowed to Landlord at law or in equity.
14.4 Landlord’s Lien/Contractual Security Interest (Intentionally Deleted)
14.5 Attorney’s Fees
In the event Tenant defaults in the performance of any of the terms of this Lease and the
Landlord employs an attorney in connection therewith, Tenant agrees to pay Landlord’s attorneys’
fees arising in connection therewith and/or the enforcement by Landlord of any of its rights or
remedies under this Lease.
14.6 No Implied Waiver by Landlord
The failure of Landlord to insist at any time upon the strict performance of any covenant or
agreement herein, or to exercise any option, right, power or remedy contained in the Lease shall
not be construed as a waiver or a relinquishment thereof for the future. No act or thing done by
Landlord or its agents during the term hereof shall be deemed an acceptance or surrender of the
Premises, and no agreement to accept a surrender of the Premises shall be valid unless in writing
and signed by Landlord. No payment by Tenant or receipt by Landlord of a lesser amount than the
monthly installment of rent due under this Lease shall be deemed to be other than on account of the
earliest rent due hereunder, or portion thereof, nor shall any endorsement or statement on any
check or any letter accompanying any check or payment as rent be deemed an accord and satisfaction,
and Landlord may accept such check or payment without prejudice to Landlord’s right to recover the
balance of such rent or pursue any other remedy in this Lease provided.
14.7 Default by Landlord
In the event of any default by Landlord under this Lease, Tenant shall not be entitled to
exercise any right or remedy as a result of such default (i) until Tenant has notified in writing
Landlord and the holder of any mortgage or deed of trust which at the time shall be a lien on the
Premises, if the name and address of such holder shall previously have been furnished by written
notice to Tenant, of such default, and (ii) until a reasonable period for remedying such default
shall have elapsed following the giving of such notice, provided Landlord or such holder, with
reasonable diligence, shall have commenced to remedy such default or to cause the same to be
remedied. In the event such default is not remedied by Landlord or the holder of any mortgage or
deed of trust, then the sole remedy of Tenant with respect to such default shall be to institute
proceedings to recover from Landlord (subject to the other provisions of this Lease) any actual
damages incurred by Tenant as a result of such default, it being agreed and understood that Tenant
shall have no (and hereby expressly waives any) right to terminate this Lease, or to recover from
Landlord any punitive, exemplary, treble and speculative damages as a result of any default by
Landlord under this Lease.
14.8 Waiver Of Consumer Rights
Intentionally deleted.
ARTICLE XV
PEACEFUL ENJOYMENT
Provided that Tenant pays the rent and other sums required to be paid by Tenant hereunder and
performs all of Tenant’s covenants and agreements contained herein, then subject to and except as
permitted by the terms and provisions of this Lease, Landlord shall not interfere with Tenant’s
possession and use of the Premises.
ARTICLE XVI
HOLDING OVER
In the event of holding over by Tenant or any person or entity claiming under Tenant after
expiration or other termination of this Lease, or in the event Tenant continues to occupy the
Premises after the termination of Tenant’s right of possession pursuant to Section 14.2(b)(ii)
hereof, such holding over or possession shall constitute a tenancy at sufferance, subject to all of
the terms and provisions of this Lease. Tenant shall, throughout the entire holdover period, pay
rent at the times and in the manner required by this Lease but at a rate equal to 150% the Base
Rental and Additional Rental which would have been applicable had the term of this Lease continued
through the period of such holding over by Tenant. No holding over by Tenant after the expiration
of the term of this Lease and no acceptance of rent by Landlord during a holdover period, whether
with or without the consent of Landlord, shall be construed to extend the term of this Lease or
prevent Landlord from recovering immediate possession of the Premises by summary proceedings or
otherwise unless Landlord has sent notice to Tenant that Landlord has elected to extend the term of
the Lease as hereinabove provided. Tenant shall be liable to Landlord for all damage which
Landlord may suffer by reason of any holding over by Tenant and Tenant shall indemnify Landlord
against any and all claims made by any other tenant or prospective tenant against Landlord from
delay by
LEASE AGREEMENT — Page 15
Landlord in delivering possession of the Premises to such other tenant or prospective tenant.
ARTICLE XVII
SUBORDINATION AND ATTORNMENT
Tenant accepts this Lease subject and subordinate to any ground lease, mortgage, deed of trust
or other lien presently existing or hereafter arising upon the Premises, the Building, or the
Project, and to any renewals, refinancing and extensions thereof, to zoning ordinances, building
and fire ordinances, and governmental regulations relating to the use of the Premises, and to all
easements, covenants, conditions and restrictions affecting the Project, Building or Premises.
Tenant agrees that the Landlord or mortgagee under any ground lease, mortgage, deed of trust or
other lien shall have the right at any time to subordinate its ground lease, mortgage, deed of
trust or other lien to this Lease on such terms and subject to such conditions as such Landlord or
mortgagee may reasonably request. Tenant will execute and deliver on written request from
Landlord, such instrument as Landlord may reasonably request from time tot time to evidence the
subordination of this Lease to any ground lease, mortgage, deed of trust, or other lien affecting
the Building. In the event any proceedings are brought for default under any ground lease or in
the event of foreclosure or the exercise of the power of sale under any mortgage or deed of trust,
or any transfer in lieu thereof, Tenant shall thereafter, but only at the option of the successor
in interest to Landlord’s rights, attorn to the purchaser or transferee thereunder and remain bound
by novation or otherwise to the same effect as if a new and identical lease between the successor
in interest to Landlord’s rights, as Landlord, and Tenant, as Tenant, had been entered into for the
remainder of the term of the Lease in effect at the institution of the foreclosure proceedings
(provided that such successor, purchaser or transferee shall agree to accept this Lease on the same
rates, terms and conditions and not to disturb Tenant’s occupancy (and to continue to operate the
Building as a first class office building) so long as Tenant does not default and fail to cure with
time permitted hereunder). Tenant agrees to execute any instrument or confirm any election to
continue the Lease in effect in the event of foreclosure, as above provided. Tenant agrees to give
any holder of a mortgage, deed of trust, ground lease or other encumbrance on the Project (the
“Holder) a copy of any notice of default served by Tenant on Landlord provided that prior to such
notice Tenant has been notified in writing of the address of such Holder. Tenant further agrees
that if Landlord shall have failed to cure such default within the times permitted Landlord for
cure under this Lease, any such Holder (whose address has been provided to Tenant) shall have an
additional period of ten (10) days in which to cure (or such additional time as may be required due
to causes beyond such Holder’s control). Until the time allowed as aforesaid for such Holder to
cure such default has expired without cure, Tenant shall not have the right to terminate this Lease
by virtue of Landlord’s default.
ARTICLE XVIII
CERTIFICATES TO BE PROVIDED BY TENANT
18.1 Certificate of Acceptance
Intentionally deleted.
18.2 Estoppel Certificates
Tenant will, from time to time, within twenty (20) days following written request by Landlord,
execute and deliver to such persons as Landlord shall request a statement in recordable form
certifying that this Lease is unmodified and in full force and effect (or if there have been
modifications, that the same is in full force and effect as so modified), stating the dates to
which rent and other charges payable under the Lease have been paid, stating that, to Tenant’s
knowledge, Landlord is not in default hereunder (or if Tenant alleges a default stating the nature
of such alleged default) and further stating such other matters as Landlord shall reasonably
require.
18.3 Financial Statements
It is understood by Tenant that Landlord is relying upon the Tenant’s current financial
condition and credit position and that such condition is a material factor in Landlord’s decision
to enter into the Lease. Tenant expressly acknowledges that it has made a full, complete and
accurate financial disclosure to Landlord and that Tenant has represented and hereby represents to
Landlord that Tenant is of sound financial condition.
ARTICLE XIX
LANDLORD’S INTEREST
19.1 Personal Liability of Landlord
The liability of Landlord to Tenant for any default by Landlord under the terms of this Lease
shall be limited to the interest of Landlord in the Building and the Land (and the proceeds
thereof), as then encumbered, and Tenant agrees to look solely to Landlord’s interest in the
Building and the Land (and the proceeds thereof), as then encumbered, for recovery of any judgment
from Landlord, it being intended that Landlord shall not be personally liable for any judgment or
deficiency. In no event shall any officer, partner or shareholder in Landlord, or their respective
officers, directors, employees or trustees have or incur any personal liability for the payment or
performance of any obligations of Landlord hereunder. Notwithstanding the foregoing , Landlord
shall have personal liability for insured claims, beyond Landlord’s interest in the Project (and
proceeds thereof), to the extent of Landlord’s liability insurance coverage respecting such claims.
LEASE AGREEMENT — Page 16
19.2 Transfer by Landlord
Landlord shall have the right to transfer and assign, in whole or in part, all of its rights
and obligations hereunder in connection with any sale, transfer or lease of the Building, and upon
such transfer, Landlord shall be released from any further obligations hereunder, and Tenant agrees
to look solely to such successor in interest of Landlord for the performance of such obligations.
The term “Landlord” will mean only the owner at the time of the fee title or a tenant’s interest in
a ground lease of the Project. All covenants of Landlord hereunder shall be binding upon Landlord
and its successors only during its or their respective periods of ownership.
ARTICLE XX
MISCELLANEOUS
20.1 Notices
Any notice provided in this Lease shall be in writing and shall be given or be served by
overnight or personal delivery, by facsimile, or by depositing the same in the United States mail,
postpaid and certified and addressed to the party to be notified, with return receipt requested, or
by delivering the same in person to an office of each party or by prepaid telegram, when
appropriate, addressed to the party to be notified at the address set forth below, or such other
address, notice of which has been given to the other party in accordance with the provisions of
this Lease:
If to Landlord: | Xxxxxxxx Xxxxxx | |||
0000 Xxxxxxxx Xxxxx, Xxxxx 000 | ||||
Xxxxxx, Xxxxx 00000 | ||||
Phone: 000-000-0000 | ||||
Facsimile No.: 000-000-0000 | ||||
If to Tenant: | ACE Cash Express, Inc. | |||
0000 Xxxxxxxx Xxxxx, Xxxxx 000 | ||||
Xxxxxx, Xxxxx 00000 | ||||
Attn.: General Counsel | ||||
Phone No.: (000) 000-0000 | ||||
Facsimile No.: (000) 000-0000 |
Notice deposited in the mail in the manner hereinabove described shall be effective on the date it
is so deposited, whether or not actually received. Notice delivered in any other manner shall be
effective upon actual delivery to the intended recipient’s address for notices as provided herein.
20.2 Broker Commissions
Tenant represents and warrants that no broker, agent or finder entitled to a fee was used in
connection with the negotiation or execution of this Lease other than Xxxxx Xxxxx of the Staubach
Company (“Tenant’s Broker”), and Tenant agrees to indemnify and hold harmless Landlord against all
liabilities and costs arising from all such claims (other than Tenant’s Broker), including, without
limitation, attorneys’ fees in connection therewith.
20.3 Severability
If any term or provision of this Lease, or the application thereof to any person or
circumstance shall, to any extent, be invalid or unenforceable, the remainder of this Lease, or the
application of such term or provision to persons or circumstances other than those as to which it
is held invalid or unenforceable, shall not be affected thereby, and each term and provision of
this Lease shall be valid and enforced to the fullest extent permitted by law notwithstanding the
invalidity of any other term or provision hereof.
20.4 Recordation by Tenant
Tenant agrees not to record this Lease or any memorandum hereof.
20.5 Place of Performance
Tenant shall perform all covenants, conditions and agreements contained herein, including but
not limited to payment of rent, in Dallas County, Texas. Any suit arising from or relating to this
Lease shall be brought in Dallas County, Texas.
20.6 Binding Effect
This Lease shall be binding upon and inure to the benefit of the successors and assigns of
Landlord, and shall be binding upon and inure to the benefit of Tenant, and with the prior written
approval of Landlord, its successors and assigns.
20.7 Time of Performance
Except as expressly otherwise herein provided, with respect to all required acts of Tenant,
time is of the essence of this Lease.
20.8 Force Majeure
Whenever a period of time is herein prescribed for the taking of any action by either party
(other than the payment of Rent due under this Lease), such party shall not be liable or
responsible for, and there shall be excluded from the computation of such period of time, any
delays due to strikes, riots, acts of God, shortages of labor or materials, war, governmental laws,
regulations or restrictions, or any other cause whatsoever beyond the reasonable control of such
party.
LEASE AGREEMENT — Page 17
20.9 Graphics and Signage by Landlord
(a) Landlord shall provide and install, at Tenant’s cost, at or near the front door of the
Premises, all letters or numerals which may be necessary to identify Tenant’s name and suite
number; all such letters and numerals shall be in the standard graphics for the Building and no
others shall be used or permitted on or about the Premises without Landlord’s prior written
consent.
(b) Provided Tenant obtains all necessary permits and/or approvals required by all applicable
laws, ordinances, rules and regulations and/or restrictive covenants (including, but not limited to
approval from Las Colinas Association), now in force or hereafter enacted and of any governmental
entity or agency having jurisdiction over the Premises (the “Sign Requirements”) and subject to
Landlord’s reasonable prior written approval of the location, design, size, color, material,
composition and plans and specifications therefor, Tenant is hereby granted the right to have a
signs erected and maintained on the facade of the top and second levels of the Building (the
“Building Signs”). The Building Sign on the second level of the Building façade shall be similar
to the existing Nokia signage shown on Exhibit “F” attached hereto and incorporated herein.
(c) Landlord agrees to reasonably cooperate with Tenant in obtaining all approvals for the
Building Signs as required by the Sign Requirements.
(d) Upon receipt of all approvals for either of the Building Signs, Landlord shall erect such
Building Sign in accordance with the approved plans and specifications, in a good and workmanlike
manner, in accordance with the Sign Requirements.
(e) Unless the costs of the Building Signs are paid from the Allowance provided for in the
Work Letter attached to the this Lease, Tenant shall reimburse Landlord for the reasonable costs
incurred by Landlord for erecting the Building Signs, including the cost of obtaining any
governmental approvals or permits or form Las Colinas Association, within thirty (30) days
following receipt of demand therefor (and such costs shall not be included in Basic Costs for
purposes of this Lease). Landlord shall maintain the Building Signs in a good, clean and safe
condition and in accordance with the Sign Requirements, including all repairs and replacements
thereto.
(f) Upon the occurrence of any default by Tenant under the Lease which is not cured within any
applicable notice and curative period, and/or upon termination of the Lease or Tenant’s right to
possession of the Premises, Landlord may remove either or both of the Building Signs and/or
Tenant’s sign panel thereon, (and, if such termination is as a result of Tenant’s default under
this Lease, Tenant shall reimburse Landlord for the reasonable cost of repairing any damage to the
Building caused by the Building Signs) and use or take such action with respect to the Building
Signs as Landlord may reasonably deem appropriate, all without compensation or payment to Tenant.
(g) Tenant is not entitled to assign or transfer its rights under this Section 20.9.
20.10 Entire Agreement
It is expressly agreed by Tenant that there are no representations, understandings or promises
pertaining to the said Project or Premises except as herein set forth, and that this Lease and the
Exhibits and Addenda attached hereto constitute the entire agreement of Landlord and Tenant with
respect to the rental or leasing of the Premises. Tenant understands and agrees that there are no
warranties, either express or implied other than the warranties, if any, which are set forth in
writing in the Lease. All warranties, either express or implied, if any, contained in this Lease
are complete and exclusive statements of same.
20.11 Waiver by Tenant
No provision of this Lease will be deemed waived by either party unless expressly waived in
writing signed by the waiving party. No waiver by either party of any provision of this Lease
shall be implied by delay or any other act or omission of either party. No waiver by either party
of any provision of this Lease shall be deemed a waiver of such provision with respect to any
subsequent matter relating to such provision, and Landlord’s consent or approval respecting any
action by Tenant shall not constitute a waiver of the requirement for obtaining Landlord’s consent
or approval respecting subsequent action. Acceptance of Rent by Landlord shall not constitute a
waiver of any breach by Tenant of any term or provision of this Lease. No acceptance of any lesser
amount than the Rent stipulated herein shall be deemed a waiver of Landlord’s right to receive the
full amount due, nor shall any endorsement or statement on any check or payment or any letter
accompanying such check or payment be deemed an accord and satisfaction, and Landlord may accept
such check or payment without prejudice to Landlord’s right to recover the full amount due. The
acceptance of Rent, or of the performance of any other term or provision by any person other than
Tenant, including any Transferee, shall not constitute a waiver of Landlord’s right to approve any
Transfer.
20.12 Joint and Several Liability
If there is more than one Tenant, or if the Tenant as such is comprised of more than one
person or entity, the obligations hereunder imposed upon Tenant shall be joint and several
obligations of all such parties.
20.13 Gender and Number
Words of any gender used in the Lease shall be held and construed to include any other gender,
and words in the singular number shall be held to include the plural, unless the context otherwise
requires.
20.14 Change of Building Name
Landlord shall have the right, exercisable without notice and without liability to Tenant, to
change the name and address of the Building from time to time.
LEASE AGREEMENT — Page 18
20.15 Captions
The caption of each paragraph hereof is added as matter of convenience only, and shall be
considered to be of no effect in the construction of any provision or provisions of the Lease.
20.16 Authority
In the event Tenant is a corporation (including any form of professional association),
partnership (general or limited), or other form of organization other than an individual, then each
individual executing or attesting this Lease on behalf of Tenant hereby covenants, warrants and
represents: (i) that he is duly authorized to execute or attest and deliver this Lease on behalf of
Tenant in accordance with the organizational documents of Tenant; (ii) that this Lease is binding
upon Tenant; (iii) that Tenant is duly organized and legally existing in the state of its
organization, and is qualified to do business in the State of Texas; (iv) that upon request, Tenant
will provide Landlord with true and correct copies of all organizational documents of Tenant, and
any amendments thereto; and (v) that the execution and delivery of this Lease by Tenant will not
result in any breach of, or constitute a default under any mortgage, deed of trust, lease, loan,
credit agreement, partnership agreement or other contract or instrument to which Tenant is a party
or by which Tenant may be bound.
20.17 Nondisclosure
Each party hereby covenants and agrees that, at all times hereafter, unless consented to in
writing by the other, such party shall not disclose the terms and provisions of this Lease to any
parties other than (a) officers, employees and representatives of the parties who are involved in
the ordinary course of business with this transaction, each of whom shall be instructed to comply
with the non-disclosure provisions hereof, (b) in response to lawful process or subpoena or other
valid or enforceable order of a court of competent jurisdiction, or (c) in any filings with any
governmental authorities required by reason of the transaction provided for herein.
20.18 Rules of Construction
This Lease has been prepared by Landlord and its professional advisors and reviewed by Tenant
and its professional advisers. Landlord and Tenant and their separate advisors believe that this
Lease is the product of all their efforts, that it expresses their agreement and that it should not
be interpreted in favor of either Landlord or Tenant or against either Landlord or Tenant merely
because of their efforts in preparing it.
20.19 Consents
Intentionally deleted.
20.20 No Oral Representations, Agreements or Warranties
This Lease, together with the addendum and exhibits referred to herein contain the entire and
final agreement between Landlord and Tenant with respect to its subject matter, may be amended only
by a subsequent written agreement signed by Landlord and Tenant, and may not be contradicted by
evidence of prior, contemporaneous or subsequent oral agreements of the parties. EXCEPT FOR THOSE
REPRESENTATIONS, WARRANTIES AND AGREEMENTS OF LANDLORD THAT ARE SET FORTH IN THIS LEASE AND THE
ADDENDA AND EXHIBITS REFERRED TO HEREIN, NO REPRESENTATIONS, WARRANTIES OR AGREEMENTS HAVE BEEN
MADE BY LANDLORD TO TENANT WITH RESPECT TO THIS LEASE, THE PREMISES, OR THE PROJECT OF WHICH THE
PREMISES ARE A PART.
20.21 Effect of Delivery of this Lease.
Landlord has delivered a copy of this Lease to Tenant for Tenant’s review only, and the
delivery hereof does not constitute an offer to Tenant or an option. This Lease shall not be
effective until a copy executed by both Landlord and Tenant is delivered to and accepted by
Landlord.
20.22 Attorneys’ Fees and Jury Trial.
In the event of any litigation between the parties, the prevailing party who obtains a final
judgment shall be entitled to obtain, as part of the judgment, all reasonable attorneys’ fees,
costs and expenses incurred in connection with such litigation, except as may be limited by
applicable law. In the interest of obtaining a speedier and less costly hearing of any dispute,
the parties hereby each irrevocably waive the right to trial by jury.
LEASE AGREEMENT — Page 19
ARTICLE XXI
ADDENDA AND EXHIBITS
The following Addenda and Exhibits are attached to and form a part of this Lease (delete or add as applicable):
Exhibit A: | Description of the Land | |||
Exhibit B: | Floor Plans | |||
Exhibit B-1: | Reserved Parking | |||
Exhibit C: | Building Rules and Regulations | |||
Exhibit D: | Work Letter | |||
Exhibit E: | Janitorial Services | |||
Exhibit F: | Nokia Sign | |||
Addendum |
In the event a provision of an Addendum or Exhibit, if any, attached hereto is inconsistent
with a provision in the body of this Lease, the provision as set forth in the Addendum or the
Exhibit shall control.
IN TESTIMONY WHEREOF, the parties hereto have executed this Lease as of the date aforesaid.
LANDLORD: | ||||||
GREENWAY TOWER JOINT VENTURE | ||||||
By: | Independence Development, Inc., | |||||
General Partner | ||||||
By: | /s/ Xxxxxx X. Xxxxxxx | |||||
Xxxxxx X. Xxxxxxx | ||||||
Executive Vice President | ||||||
TENANT: | ||||||
ACE CASH EXPRESS, INC. | ||||||
By: | /s/ Xxxxxxx X. XxXxxxxxx | |||||
Its: | Executive Vice President & Chief Financial Officer |
LEASE AGREEMENT — Page 20
“OTHER”
ADDENDUM TO LEASE AGREEMENT
Attached to and made a part of Greenway Tower Lease Agreement dated June 1, 2006, between GREENWAY
TOWER JOINT VENTURE, as Landlord, and ACE CASH EXPRESS, INC., as Tenant, with respect to the
premises located in Greenway Tower.
1. RENEWAL OPTION
Option to Renew. Landlord hereby grants Tenant and any assignee of Tenant arising from
a Related Transfer but no other assignee, the option to renew this Lease for two additional terms
of thirty-six (36) months upon the following terms and conditions:
(a) if Tenant desires to renew this Lease, no later than nine (9) months prior to the
expiration date of this Lease, Tenant shall notify Landlord in writing (“Tenant’s Renewal
Notice”), by certified mail, return receipt requested, of its intention to renew;
(b) at all times from and after the date of Tenant’s Renewal Notice, Tenant may not be
in default of any of the terms, conditions or covenants of this Lease beyond applicable grace
and cure periods;
(c) The renewed lease shall contain no further renewal options unless expressly granted
by Landlord in writing; and
(d) The Base Rent for the renewal term will be the then-prevailing rental rate for
properties in the Las Colinas Office Center of equivalent quality, size, utility and
location, with the length of the lease term and credit standing of Tenant to be taken into
consideration (the “prevailing rental rate”). Within sixty (60) days after receipt of
Tenant’s Renewal Notice, Landlord shall notify Tenant in writing of the proposed rental rate,
giving consideration to market concession and allowances. If Tenant elects to proceed,
Tenant must notify Landlord within the succeeding twenty (20) business days after receipt of
Landlord’s notice, and Landlord will cause an amendment to be prepared for execution by
Tenant, or if Tenant does not agree with Landlord’s determination, then Tenant shall notify
Landlord of its calculation of prevailing rental rate within the twenty (20) business day
period. If Tenant fails to notify Landlord within the 20-business day period, it will be
deemed to have withdrawn its election to renew and such option shall thereupon be null and
void. If Tenant responds setting forth a disagreement over the prevailing rental rate, then
the parties shall endeavor to reconcile the calculation of prevailing rental rate between
them within the succeeding ten (10) business day period. If unsuccessful, then Tenant may
elect, within the same 10-business day period upon written notice to Landlord, (i) to
withdraw its notice of exercise of the renewal option, in which event, this Lease shall
expire at the end of the then current term, or (ii) to have the prevailing rental rate
determined by appraisal as set forth below, in which latter event, Tenant shall be bound by
its election to renew based on the prevailing rental rate determined by appraisal. If Tenant
fails to respond within the 10-business day period, then it will be deemed to have elected to
withdraw its election to renew and such option shall thereupon be null and void. If the
parties have agreed on the prevailing rental rate, then Tenant shall execute and return to
Landlord, for execution by Landlord, the amendment within ten (10) business days of the date
the amendment is delivered to Tenant.
In the event Landlord and Tenant fail to agree in writing upon the prevailing rental
rate within the 10-business day period and Tenant elects on written notice to Landlord to
have the prevailing rental rate determined by appraisal, the parties agree to the procedure
set forth below:
(e) Within ten (10) days of Tenant’s written notice of such an election, each party, by
giving written notice to the other party, shall appoint an appraiser to render a written
opinion of the prevailing rental rate for the option term. Each appraiser must be a member
of the Appraisal Institute of America (MAI) for at least five (5) years and with at least
five (5) years experience in the appraisal of similar properties in the Dallas/Ft. Worth area
in which the Premises are located and otherwise unaffiliated with either Landlord or Tenant.
The two appraisers shall render their written opinion of the prevailing rental rate for the
option term to Landlord and Tenant within twenty (20) days after their appointment. If the
fair market rental rate of each appraiser is within five percent (5%) of the other, then the
average of the two appraisals of prevailing rental rate shall be the Base Rent for the
renewal term. If one party does not appoint its appraiser as provided above, then the one
appointed shall determine the prevailing rental rate. The prevailing rental rate so
determined under this subparagraph shall be binding on Landlord and Tenant.
(f) If the prevailing rental rates determined by the appraisers are more than five
percent (5%) apart, then the two appraisers shall pick a third appraiser within ten (10) days
after the two appraisers have rendered their opinions of prevailing rental rate as provided
above. If the two appraisers are unable to agree on the third appraiser within said ten (10)
day period, Landlord and Tenant shall mutually agree on a third appraiser within ten (10)
days thereafter. The third appraiser shall be a person who has not previously acted in any
capacity for either party and must meet the qualifications noted above.
(g) Within twenty (20) days after his appointment, the third appraiser shall render his
written opinion of the prevailing rental rate for the option term (“Third Opinion") taking
into account the matters noted above. The appraisal of prevailing rental rate made by
Landlord’s or Tenant’s appraiser that is closest to the prevailing rental
Addendum to Lease Agreement — Page 1
rate specified in the Third Opinion shall be the Base Rental during the option term. If the
prevailing rental rate set forth in the Third Opinion is equidistant from the fair market
rental rate made by Landlord’s and Tenant’s appraiser, then the prevailing rental rate
contained in the Third Opinion shall be the Base Rent during the renewal term. The
prevailing rental rate so determined under this subparagraph shall be binding on Landlord and
Tenant.
(h) Each party shall bear the cost of its own appraiser and one-half (1/2) the cost of the
third appraiser.
(i) After the prevailing rental rate for the renewal period has been established in
accordance with the foregoing procedure, Landlord and Tenant shall promptly execute an
amendment to this Lease to reflect the Base Rental of such renewal term.
2. Option to Expand.
Provided Tenant is not then in default beyond any applicable grace or cure periods, of any of the
terms, conditions, covenants, obligations or provisions of this Lease, Tenant shall have, and
Landlord grants to Tenant and any assignee of Tenant arising from a Related Transfer but no other
assignee, the option, which may be exercised from time to time, to expand the Premises during the
first twelve (12) month after the Effective Date to include all or a portion of the 1st and 3rd
floors of the Building not covered by this Lease and at any time during the Lease Term to include
all or a portion of the 5th and 6th floors of the Building not covered by the Lease (the “Expansion
Space”), subject to, and upon the following terms and conditions:
(a) if Tenant desires to exercise the option to expand, Tenant shall notify Landlord in
writing (“Tenant’s Expansion Notice”), by certified mail, return receipt requested, of its
intention to expand and, if the additional space identified in Tenant’s Expansion Notice is
less than all of the Expansion Space, the size and location of the proposed expansion area
(the “Designated Expansion Space”);
(b) If the Designated Expansion Space is less than all of Expansion Space located on
any single floor, Tenant shall not be entitled to do so unless the remaining portion that
Tenant does not elect to lease on such floor is a leasable size and configuration as
determined by Landlord in Landlord’s sole reasonable discretion (Notwithstanding the
foregoing to the contrary, if Tenant elects to take Expansion Space up to an existing
demising wall, then a remainder shall not be deemed “unleasable”);
(c) Tenant will not be entitled to expand into any Designated Expansion Space which is
subject to a lease and existing on the Execution Date; provided, however, if Landlord has the
option to relocate any such Tenant under an existing lease and vacant space
approximately equivalent in size to the amount of such Expansion Space then leased to such
Tenant is then available elsewhere in the Building, it will do so upon receipt of Tenant’s
Expansion Notice. Landlord shall not modify any existing lease (as of the Execution Date) to
afford rights to the Expansion Space to a Tenant that does not already have such rights as of
the date of this Lease;
(d) the Base Rent and Tenant finish allowance (“Expansion Allowance”) from Landlord
applicable to any Expansion Space added to this Lease will be as follows:
(i) Base Rent payable by Tenant for the Designated Expansion Space shall be equal
to the per square foot Base Rent (as set forth in Section 1 above) payable by Tenant
from time to time during the remaining portion of the Term times the number of
rentable square feet of space contained in the Designated Expansion Space as
determined by Landlord and the Expansion Allowance shall be an amount equal to $28.00
per rentable square foot of the Designated Expansion Space minus the product
of $0.125 per rentable square foot of the Designated Expansion Space times the number
of months from the Effective Date (including the month in which the Expansion Option
is exercised). The Expansion Allowance shall be used only for construction costs of
the Tenant improvements and other costs described in the Work Letter Agreement for
which the Allowance may be used; and
(ii) all of Landlord’s reasonable costs resulting from the relocation of any
tenant as a result of Tenant’s Expansion Notice shall be paid from the Expansion
Allowance and if the Expansion Allowance is not sufficient to cover all such
relocation costs, such excess shall be paid by Tenant.
(e) Landlord and Tenant agree that the Expansion Allowance shall be disbursed by
Landlord in accordance with and subject to the terms and conditions of the Work Letter
attached to this Lease as Exhibit “D”;
(f) After Tenant validly exercises the expansion right provided herein, Landlord and
Tenant shall execute any amendment to the Lease, adding the Expansion Space, or a new lease
for the Expansion Space, or such other documentation as Landlord shall require, promptly
after Landlord prepares the same; and
(g) Any exercise of an option for less than all the Expansion Space shall not terminate
the option, but the option shall remain in effect during the option period for the remaining
Expansion Space.
3. Right of First Offer.
Provided Tenant is not then in default beyond any applicable grace or cure periods, of any of
the terms, conditions, covenants, obligations or provisions of this Lease, Landlord grants to
Tenant and any assignee or subtenant of Tenant resulting from a Related Transfer but no other
assignee or subtenant, a right of first offer to lease additional space
Addendum to Lease Agreement — Page 2
on the 1st, 3rd and 6th floors of the Building as follows:
(a) beginning on the Effective Date and continuing thereafter for (i) a period of
twelve (12) months, if space on the 1st and 3rd floors of the Building becomes available for
lease (including space made available due to the holder of any prior right of first refusal
or other option to lease failing to exercise such option or right in a timely manner), and
(ii) with respect to the 5th and 6th Floors only, until the expiration of the Term (but not
any renewal term) of this Lease, Landlord shall give written notice (the “Offer Notice”) to
Tenant of the terms and conditions upon which Landlord is willing to lease such space which
terms will include Base Rent equal to the then prevailing rental rate.
(b) Tenant may elect to lease less than all of the available space described in the
Offer Notice, but Tenant shall not be entitled to do so unless the remaining portion that
Tenant does not elect to lease is a leasable size and configuration as determined by Landlord
in Landlord’s sole reasonable discretion. Notwithstanding the foregoing to the contrary, if
Tenant leases additional space pursuant to an Offer Notice to an existing demising wall, then
a remainder shall not be deemed unleasable).
(c) Tenant shall have ten (10) days from receipt of the Offer Notice in which to give
written notice to Landlord electing to lease the space subject to the Offer Notice (or
applicable portion thereof, subject to the limitations set forth above) on the terms offered
by Landlord. Tenant’s option to lease the space described in the Offer Notice shall expire
after such ten (10) day period unless such election has been timely given to Landlord.
Landlord and Tenant shall within ten (10) days after Tenant’s acceptance of such offer
execute and deliver to each other an amendment to this Lease prepared by Landlord to document
Tenant’s lease of the additional space. In the event that Tenant fails to timely elect to
lease such space or fails to timely execute and deliver the amendment as aforesaid, then
Tenant’s right to lease the space described in the Offer Notice automatically terminates and
Landlord shall be entitled to lease such space to one or more third parties without regard to
such right of first offer.
Additionally, Landlord agrees to use reasonable efforts to advise Tenant of the existence of
vacant, unleased space on other floors in the Building as such vacancies occur, provided however,
failure to do so will not constitute a default by Landlord, nor will Landlord incur any liability
to Tenant therefor.
4. ROOF RIGHTS:
Landlord shall make available to Tenant, at no charge, an area on the roof of the Building
sufficient to accommodate communications equipment located on the roof as of the Execution Date,
together with such other communications equipment as may be approved in writing by Landlord as
hereinafter provided, but only so long as the diameter of any satellite dish is not larger than 36
inches (the “Equipment”) and the HVAC system located on the roof as of the Execution Date and will
permit Tenant to install cables between the roof and the Premises in locations and through
conduits and pathways in the Building and, except for temporary periods of time during which
Landlord may be repairing or maintaining the roof, to have 24 hours a day, 7 days a week access to
the roof and such Equipment to permit its installation, use, operation, maintenance, and repair by
Tenant. Tenant will provide Landlord with physical specifications and the manner of installation
of such Equipment prior to installation, which Equipment and the installation thereof shall be
subject to Landlord’s approval, such approval not to be unreasonably withheld, conditioned or
delayed, and that of the jurisdiction governing the Building and the Property. Notwithstanding
anything to the contrary contained herein, Landlord will reasonably designate where the Equipment
will be located on the roof or site and Tenant will be responsible for all costs associated with
the installation, maintenance and removal of the Equipment on the Expiration Date or earlier
termination of the Lease. Tenant also agrees to comply with all reasonable requirements of
Landlord’s roofing consultant in connection with the installation of any Equipment and shall be
responsible for any cost incurred by Landlord in connection with reviewing and/or supervising the
installation of any Equipment and all costs associated with any damage to the roof or site area
where the Equipment is attached (unless such costs are caused (i) by third parties unaffiliated
with or unauthorized by Tenant or its employees, agents or contractors, or (ii) by the gross
negligence or willful misconduct of Landlord or its employees, agents or contractors). Tenant will
indemnify Landlord in the event that any of the Tenant’s employees, agents or vendors are injured
in the installation, maintenance or accessing the Equipment by entrance onto the roof of the
Building (unless such injuries are caused by third parties unaffiliated with or unauthorized by
Tenant or by the gross negligence or willful misconduct of Landlord or its employees, agents or
contractors).
5. FIRST FLOOR IDF CLOSET:
Tenant shall be provided 24 hours a day, 7 days a week key access to the Building’s IDF closet
located on the first floor (except for temporary periods of time during which access may be
restricted due for maintenance or repairs of the Building) for purposes of accessing Tenant’s
Telecommunications and Data System.
Initialed/Approved: |
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Landlord | Lessee |
Addendum to Lease Agreement — Page 3