Garden Ridge, L.P. v. Clear Lake Center, L.P. ( 2015 )


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  •                                                                                               ACCEPTED
    14-15-00695-cv
    FOURTEENTH COURT OF APPEALS
    HOUSTON, TEXAS
    12/17/2015 5:50:10 PM
    CHRISTOPHER PRINE
    CLERK
    NO. 14–15–00695–CV
    FILED IN
    14th COURT OF APPEALS
    IN THE FOURTEENTH COURT OF             APPEALSHOUSTON, TEXAS
    HOUSTON, TEXAS                   12/17/2015 5:50:10 PM
    CHRISTOPHER A. PRINE
    Clerk
    Garden Ridge, L.P., Appellant
    V.
    Clear Lake Center, L.P., Appellee
    From the 215th District Court, Harris County, Texas
    Cause No. 2009–58038, consolidated with Cause No. 2012–46099
    Clear Lake Center, L.P.’s Combined
    Cross–Appellant’s Brief and
    Appellee’s Brief
    HIRSCH & WESTHEIMER, P.C.
    Eric Lipper
    State Bar No. 12399000
    elipper@hirschwest.com
    Michael D. Conner
    State Bar No. 04688650
    mconner@hirschwest.com
    1415 Louisiana, 36th Floor
    Houston, Texas 77002
    Telephone: 713–223–5181
    Facsimile: 713–223–9319
    Attorneys for Appellee/Cross Appellant
    Clear Lake Center, L.P.
    ORAL ARGUMENT REQUESTED
    20020862.20090455/2250814.1
    Identity of Parties and Counsel
    Appellant:                                      Appellee/Cross–Appellant:
    Garden Ridge, L.P.                              Clear Lake Center, L.P.
    Attorneys for Appellant:                        Attorneys     for    Appellee/Cross–
    Elizabeth G. Bloch                              Appellant:
    State Bar No. 02495500                          Michael D. Conner
    Heidi.bloch@huschblackwell.com                  State Bar No. 04688650
    Stephen W. Lemmon                               mconner@hirschwest.com
    State Bar No. 12194500                          Eric Lipper
    Stephen.Lemmon@huschblackwell.com               State Bar No. 12399000
    Bradley W. Cole                                 elipper@hirschwest.com
    State Bar No. 04535980                          HIRSCH & WESTHEIMER, P.C.
    brad@bwc–law.net                                1415 Louisiana, 36th Floor
    HUSCH BLACKWELL LLP                             Houston, Texas 77002
    111 Congress A venue, Suite 1400                Telephone: (713) 223–5181
    Austin, Texas 78701                             Facsimile: (713) 223–9319
    Telephone: (512) 472–5456
    Facsimile (512) 479–1101
    i
    20020862.20090455/2250814.1
    Table of Contents
    Identity of Parties and Counsel .................................................................................. i
    Table of Authorities ...................................................................................................v
    Statement of the Case.................................................................................................1
    Clear Lake Center, L.P.’s Cross–Appellant’s Brief ..................................................1
    Clear Lake’s Cross Issues ..........................................................................................2
    Issue 1: Clear Lake conclusively established Garden
    Ridge’s claims are precluded based on
    affirmative defenses of waiver, ratification,
    novation, accord and satisfaction, and/or
    estoppel; Clear Lake is entitled to complete
    judgment in its favor. ....................................................................... 2
    Issue 2: The trial court erred by excluding evidence
    offered to support Clear Lake’s affirmative
    defenses; error was harmful and, at minimum,
    Clear Lake is entitled to a new trial. ................................................ 2
    Issue 3: Because the trial court erred by excluding
    admissible, critical evidence, the findings of
    liability and damages are unsustainable. .......................................... 2
    Issue 4: Without sustainable findings of liability and
    damages, attorneys’ fees are not recoverable. ................................. 2
    Issue 5: All claims for amounts paid before September
    10, 2005, are barred by limitations; it was error
    for the trial court to include in the judgment any
    damage amount for periods before September
    10, 2005. ...........................................................................................2
    ii
    20020862.20090455/2250814.1
    Issue 6: Based on Clear Lake’s counterclaim for breach
    of contract, its                recovery              of       “offset”
    damages, its unrebutted evidence proving
    attorneys’ fees, Clear Lake is entitled to
    judgment in its favor or, alternatively, a new
    trial. ..................................................................................................2
    Statement of Facts ......................................................................................................3
    Introduction ................................................................................................................6
    Summary of the Argument.......................................................................................11
    Standard of Review ..................................................................................................12
    Argument and Authority ..........................................................................................14
    Issue 1: Clear Lake’s affirmative defenses preclude
    Garden Ridge’s suit as a matter of law. .........................................14
    Issue 2: The trial court erroneously applied the parol
    evidence rule. .................................................................................18
    Issue 3: Based on the erroneous exclusion of evidence,
    findings of liability and damages must fail. ...................................28
    Issue 4: Garden Ridge is not entitled to recover
    attorneys’ fees as found by the jury. ..............................................28
    Issue 5: Limitations bars recovery of any damages
    incurred prior to September 10, 2005. ...........................................29
    Issue 6: Clear Lake is entitled to judgment in its favor,
    including its attorneys’ fees. ..........................................................31
    Conclusion ...............................................................................................................32
    iii
    20020862.20090455/2250814.1
    Clear Lake’s Appellee’s Brief .................................................................................33
    [Clear Lake incorporates the Statement of the Case and Statement
    of Facts in it Cross Appellant’s Brief] .....................................................................33
    Standard of Review ..................................................................................................33
    Argument and Authorities........................................................................................34
    The Lease does not include an agreement for interest on
    the disputed refunds claimed. ........................................................................34
    No pre–judgment interest is warranted..........................................................37
    Conclusion ...............................................................................................................39
    Certificate of Compliance ........................................................................................41
    Certificate of Service ...............................................................................................41
    Appendix ..................................................................................................................42
    iv
    20020862.20090455/2250814.1
    Table of Authorities
    Cases
    Alford. Meroney & Co. v. Rowe,
    
    619 S.W.2d 210
    (Tex. 1981) ...............................................................................22
    Am. Mfrs. Mut. Ins. Co. v. Schaefer,
    
    124 S.W.3d 154
    (Tex. 2003) ................................................................................35
    Anchor Casualty Co. v. Bowers,
    
    393 S.W.2d 168
    (Tex. 1965) ................................................................................32
    Avila v. U. S. Fid. & Guar. Co.,
    
    551 S.W.2d 453
    (Tex. Civ. App.–San Antonio 1977, writ ref’d n.r.e.) ...............26
    Bartosh v. Gulf Health Care Ctr.–Galveston,
    
    178 S.W.3d 434
    (Tex. App.–Houston [14th Dist.] 2005, no pet.) .......................25
    Bayer Corp. v. DX Terminals, Ltd.,
    
    214 S.W.3d 586
    (Tex. App.–Houston [14th Dist.] 2006, pet. denied) ............... 13
    Behzadpour v. Bonton, 14–09–01014–CV,
    
    2011 WL 304079
    (Tex. App.–Houston [14th Dist.] Jan. 27, 2011, no pet.) .......13
    Bueckner v. Hamel,
    
    886 S.W.2d 368
    (Tex. App.–Houston [1st Dist.] 1994, writ denied) ..................22
    Champlin Oil & Ref. Co. v. Chastain,
    
    403 S.W.2d 376
    (Tex. 1965) ......................................................................... 15, 16
    City of Brownsville v. Alvarado,
    
    897 S.W.2d 750
    (Tex. 1995) ................................................................................13
    Clear Lake Ctr., L.P. v. Garden Ridge, L.P.,
    
    416 S.W.3d 527
    (Tex. App.–Houston [14th Dist.] 2013, no pet.) ............... passim
    Clear Lake Water Auth. v. Friendswood Dev. Co. Ltd.,
    
    344 S.W.3d 514
    (Tex. App.–Houston [14th Dist.] 2011, pet. denied) ............... 37
    v
    20020862.20090455/2250814.1
    Cochran v. Wool Growers Central Storage Co.,
    
    140 Tex. 184
    , 
    166 S.W.2d 904
    (1942) ........................................................... 31-32
    Columbia Gas Trans. Corp. v. New Ulm Gas, Ltd.,
    
    940 S.W.2d 587
    (Tex. 1996)....................................................................................34
    ConocoPhillips Co. v. Noble Energy, Inc.,
    
    462 S.W.3d 255
    (Tex. App.–Houston [14th Dist.] 2015, pet. filed) ....................33
    Corcoran v. Atascocita Cmty. Imp. Ass’n, Inc.,
    14-12-00982-CV, 
    2013 WL 5888127
     (Tex. App.–Houston [14th Dist.] Oct. 31, 2013, pet. denied) ..............................22
    Creel v. Houston Indus., Inc.,
    
    124 S.W.3d 742
    (Tex. App.–Houston [1st Dist.] 2003, no pet.)..........................25
    Eckland Consultants, Inc. v. Ryder, Stilwell Inc.,
    
    176 S.W.3d 80
    , 87 (Tex. App.–Houston [1st Dist.] 2004, no pet.) .....................17
    Falcon Enterprises, Inc. v. Sugar Creek Section 25,
    14–97–00817–CV, 
    1999 WL 966645
     (Tex. App.–Houston [14th Dist.] Oct. 21, 1999, pet. denied) ..............................17
    Fillion v. Osborne,
    
    585 S.W.2d 842
    (Tex. Civ. App.—Houston [1st Dist.] 1979, no writ) ....... 19, 26
    Forbau v. Aetna Life Ins. Co.,
    
    876 S.W.2d 132
    (Tex. 1994) ................................................................................34
    Fox v. State,
    
    115 S.W.3d 550
     (Tex. App.–Houston [14th Dist.] 2002, pet. ref’d) ...............................................7
    Franco v. Slavonic Mut. Fire Ins. Ass’n,
    
    154 S.W.3d 777
    (Tex. App.–Houston [14th Dist.] 2004, no pet.) .......................29
    Freezia v. IS Storage Venture, LLC,
    14–14–00174–CV, 
    2015 WL 4983705
      (Tex. App.–Houston [14th Dist.] Aug. 20, 2015, no pet.) ................ 17, 18, 21, 23
    vi
    20020862.20090455/2250814.1
    Gulf Paving Co. v. Lofstedt,
    
    144 Tex. 17
    , 
    188 S.W.2d 155
    (Tex. 1945) ...........................................................31
    Hand & Wrist Ctr. of Houston, P.A. v. Republic Services, Inc.,
    
    401 S.W.3d 712
    (Tex. App.–Houston [14th Dist.] 2013, no pet.) .......................33
    Helmerich & Payne Intern. Drilling Co. v. Swift Energy Co.,
    
    180 S.W.3d 635
    (Tex. App.–Houston [14th Dist.] 2005, no pet.) ..... 34-35, 36, 37
    Henry v. Masson,
    
    453 S.W.3d 43
    (Tex. App.–Houston [1st Dist.] 2014, no pet.)..................... 38, 39
    Hexter v. Pratt,
    
    10 S.W.2d 692
    (Tex. Comm’n App. 1928, judgm’t adopted) .............................15
    Hooper v. Chittaluru,
    
    222 S.W.3d 103
    (Tex. App.–Houston [14th Dist.] 2006, pet. denied) ..................7
    Houston Exploration Co. v. Wellington Underwriting Agencies, Ltd.,
    
    352 S.W.3d 462
    (Tex. 2011) ......................................................................... 20, 24
    Iliff v. Iliff,
    
    339 S.W.3d 74
    (Tex. 2011) ..................................................................................33
    In re N.R.C.,
    
    94 S.W.3d 799
    (Tex. App.–Houston [14th Dist.] 2002, pet. denied) ..................25
    Jernigan v. Langley,
    
    111 S.W.3d 153
    (Tex. 2003) ................................................................................22
    Johnson & Higgins of Texas, Inc. v. Kenneco Energy, Inc.,
    
    962 S.W.2d 507
    (Tex. 1998) ................................................................................17
    Kamat v. Prakash,
    
    420 S.W.3d 890
    (Tex. App.–Houston [14th Dist.] 2014, no pet.) .......................17
    Kelley–Coppage, Inc. v. Highlands Ins. Co.,
    
    980 S.W.2d 462
    (Tex. 1998) ................................................................................34
    vii
    20020862.20090455/2250814.1
    Little v. Smith,
    
    943 S.W.2d 414
    (Tex. 1997) ................................................................................15
    Love v. Barber,
    
    17 Tex. 312
    (1856) ...............................................................................................16
    Lyons v. Montgomery,
    
    701 S.W.2d 641
    (Tex. 1985) ................................................................................34
    Marsh v. Marsh,
    
    949 S.W.2d 734
    (Tex. App.–Houston [14th Dist.] 1997, no writ)................ 33, 38
    McCraw v. Maris,
    
    828 S.W.2d 756
    (Tex. 1992) ................................................................................13
    McGilliard v. Kuhlmann,
    
    722 S.W.2d 694
    (Tex. 1986) ................................................................................32
    Meridien Hotels, Inc. v. LHO Financing Partnership I, L.P.,
    
    255 S.W.3d 807
    (Tex. App.–Dallas 2008, no pet.) ..............................................37
    Moreno v. Sterling Drug, Inc.,
    
    787 S.W.2d 348
    (Tex. 1990) ................................................................................30
    Meroney & Co. v. Rowe,
    
    619 S.W.2d 210
    (Tex. 1981) ................................................................................22
    Motor Vehicle Bd. v. El Paso Indep. Auto Dealers Assn., Inc.,
    
    1 S.W.3d 108
    (Tex. 1999) ....................................................................................22
    Pickens v. Alsup,
    
    568 S.W.2d 742
    (Tex. Civ. App.–Austin 1978, writ ref’d n.r.e.) ........................38
    Prestige Ford Co. Ltd. P’ship v. Gilmore,
    
    56 S.W.3d 73
    (Tex. App.–Houston [14th Dist.] 2001, pet. denied) ....................13
    Ragsdale v. Progressive Voters League,
    
    801 S.W.2d 880
    (Tex. 1990) ................................................................................31
    viii
    20020862.20090455/2250814.1
    Reliance Steel & Aluminum Co. v. Sevcik,
    
    267 S.W.3d 867
    (Tex. 2008) ............................................................. 13, 24, 26, 27
    Saba Zi Expl., L.P. v. Vaughn,
    
    448 S.W.3d 123
    (Tex. App.–Houston [14th Dist.] 2014, no pet.) .......................20
    Steubner Realty 19, Ltd. v. Cravens Rd. 88, Ltd.,
    
    817 S.W.2d 160
    (Tex. App.–Houston [14th Dist.] 1991, no writ) ............... 17, 23
    Sun Oil Co. (Delaware) v. Madeley,
    
    626 S.W.2d 726
    (Tex. 1981) ................................................................................25
    Sun Operating Ltd. P’ship v. Holt,
    
    984 S.W.2d 277
    (Tex. App.–Amarillo 1998, pet. denied) ...................................34
    Tanner Dev. Co. v. Ferguson,
    
    561 S.W.2d 777
    (Tex.1977) .................................................................................24
    Tarleton State University v. K.A. Sparks Contractor, Inc.,
    
    695 S.W.2d 362
    (Tex. App.–Waco 1985, writ ref'd n.r.e.) ..................................31
    Tawes v. Barnes,
    
    340 S.W.3d 419
    (Tex. 2011) ................................................................................33
    Tenneco, Inc. v. Enterprise Prod. Co.,
    
    925 S.W.2d 640
    (Tex. 1996) ................................................................................22
    TH Healthcare Ltd. v. Patino,
    No. 13–06–602–CV, 
    2007 WL 2128909
     (Tex. App.–Corpus Christi July 26, 2007, pet. denied) ................................. 14-15
    Triton Oil & Gas Corp. v. Marine Contractors & Supply, Inc.,
    
    644 S.W.2d 443
    (Tex. 1982) ................................................................................12
    Via Net v. TIG Ins. Co.,
    
    211 S.W.3d 310
    (Tex. 2006) ................................................................................15
    Vickery v. Vickery,
    
    999 S.W.2d 342
    (Tex. 1999) ................................................................................22
    ix
    20020862.20090455/2250814.1
    Walker v. Rangel,
    14–08–00643–CV, 
    2009 WL 4342505
     (Tex. App.–Houston [14th Dist.] Dec. 3, 2009, no pet.) ......................................13
    Wagner v. Morris,
    
    658 S.W.2d 230
    (Tex. App.–Houston [1st Dist.] 1983, no writ) .........................19
    Washington Square Fin., LLC v. RSL Funding, LLC,
    
    418 S.W.3d 761
    (Tex. App.–Houston [14th Dist.] 2013, pet. denied) ................33
    White v. Harrison,
    
    390 S.W.3d 666
    (Tex. App.–Dallas 2012, no pet.) .............................................22
    Williams Distrib. Co. v. Franklin,
    
    898 S.W.2d 816
    (Tex. 1995) .................................................................................26
    Other Authority
    Pickard v. Sears, Eng.
    C.L. vol. 33, p. 117, (112 Eng.Rep. 179) ..........................................................16
    Statutes
    Tex. Fin. Code § 304.002.........................................................................................34
    Tex. Fin. Code § 304.003.................................................................................. 34, 
    37 Tex. Civ
    . Prac. & Rem. Code § 16.004 ...................................................................30
    Tex. Civ. Prac. & Rem. Code § 16.051 ...................................................................30
    Tex. Civ. Prac. & Rem. Code § 38.001 ............................................................ 28, 31
    x
    20020862.20090455/2250814.1
    Rules
    Tex. R. App. P. 9.4...................................................................................................41
    Tex. R. App. P. 44.1(a)(1) .......................................................................................13
    Tex. R. Evid. 403 .....................................................................................................25
    xi
    20020862.20090455/2250814.1
    Clear Lake Center, L.P.’s Cross–Appellant’s Brief
    Statement of the Case
    Nature of Case                 Tenant Garden Ridge sued landlord Clear Lake to
    recover alleged overpayments of management fees
    under a commercial real property lease.
    Trial Court                    215th District Court, Harris County, Texas,
    Hon. Elaine Palmer presiding.
    Course of Proceedings          This is the second appeal. The first appeal was from
    cross motions for summary judgment. This Court
    reversed the summary judgment in favor of Garden
    Ridge, affirmed, in part, the summary judgment in favor
    of Clear Lake, and remanded for trial on the narrowed
    issues. See Clear Lake Ctr., L.P. v. Garden Ridge, L.P.,
    
    416 S.W.3d 527
    (Tex. App.–Houston [14th Dist.] 2013,
    no pet.).
    Trial Court’s                  On remand, a jury answered favorably to Garden Ridge.
    Disposition                    CR262–80. Judgment was entered awarding Garden
    Ridge damages of $594,700 and $350,000 in attorneys’
    fees; 5% post–judgment interest; and, conditional
    appellate fees. CR359–61.
    1
    20020862.20090455/2250814.1
    Clear Lake’s Cross Issues
    Issue 1:          Clear Lake conclusively established Garden Ridge’s claims are
    precluded based on affirmative defenses of waiver, ratification,
    novation, accord and satisfaction, and/or estoppel; Clear Lake is
    entitled to complete judgment in its favor.
    Issue 2:          The trial court erred by excluding evidence offered to support Clear
    Lake’s affirmative defenses; error was harmful and, at minimum, Clear
    Lake is entitled to a new trial.
    Issue 3:          Because the trial court erred by excluding admissible, critical evidence,
    the findings of liability and damages are unsustainable.
    Issue 4:          Without sustainable findings of liability and damages, attorneys’ fees
    are not recoverable.
    Issue 5:          All claims for amounts paid before September 10, 2005, are barred by
    limitations; it was error for the trial court to include in the judgment any
    damage amount for periods before September 10, 2005.
    Issue 6:          Based on Clear Lake’s counterclaim for breach of contract, its recovery
    of “offset” damages, its unrebutted evidence proving attorneys’ fees,
    Clear Lake is entitled to judgment in its favor or, alternatively, a new
    trial.
    2
    20020862.20090455/2250814.1
    Statement of Facts
    Clear Lake1 is owner and landlord and Garden Ridge is the tenant under a
    Shopping Center Lease (the “Lease”) executed in 1995. 8RRPX1. The Lease was
    amended in 1996 and in 2005. 2 8RRPX2; 8RRPX3. Among other things, the Lease
    requires Clear Lake to “operate, manage and maintain” the Common Area.
    8RRPX1, § 6.3. The Lease requires Garden Ridge to pay “Tenant’s Share of
    Common Area Costs” described as “all sums expended” by Clear Lake:
    in operating, managing, policing, equipping, lighting, repairing,
    replacing and maintaining the Common Areas, and an allowance to
    Landlord for Landlord’s supervision of the Common Areas in an
    amount equal to seven and one–half percent (7–1/2%) of the total of all
    Common Area Costs.
    8RRPX1, § 6.4.
    Clear Lake billed and collected a management fee as a component of Common
    Area Maintenance Charge, see 8RRPX1, § 1.1 (i) (“CAM”), a part of Garden
    Ridge’s rent. See 8RRPX1. With the exception that “the manner of operation,
    management and maintenance and the expenditures therefor” are to be “in the sole
    discretion of Landlord,” the Lease does not specify a formula for calculating the
    management fee. See 8RRPX1, article VI.
    1
    Clear Lake bought the shopping center from the original owner/landlord in 2003.
    2
    The terms of first amendment do not materially affect the Lease for purposes of this suit.
    See 8RRPX2.
    3
    20020862.20090455/2250814.1
    Garden Ridge paid the management fee for the years beginning in 2003 until
    shortly before it sued in September 2009. It paid later fees “under protest.” See, e.g.,
    8RRPX57, PX58.
    In February 2004, Garden Ridge filed for chapter 11 bankruptcy protection.
    See 6RR131; 8cRRDX13. As part of its reorganization plan, Garden Ridge elected
    to keep the store at Clear Lake Center. See, e.g., 6RR128–29. Garden Ridge and
    Clear Lake spent about six months negotiating terms under which Garden Ridge
    would remain a tenant, subject to bankruptcy court approval. See 6RR138–39.
    In these negotiations, Garden Ridge employed a team that included: (a) one
    “principal of the owner of Garden Ridge”; (b) two of its “day–to–day operations
    guy[s]”; (c) Garden Ridge’s bankruptcy counsel; (d) its “leasing counsel”; and (e) a
    commercial leasing consultant. 6RR127–31. Based on negotiations between the
    Garden Ridge team and Clear Lake’s representatives, the parties agreed to and
    signed the Second Amendment to Lease (the “Amendment”) in February 2005. See
    8RRPX3.
    In the Amendment, Clear Lake agreed to reduce Garden Ridge’s Base Rental
    payments. 8RRPX3, ¶ 3. It agreed to extend the Lease term through January 2024.
    
    Id., ¶ 2.
    The Amendment also included Garden Ridge’s agreement to pay (over 24
    months and without interest) an “Agreed Cure Amount” of $326,132.98, inclusive
    of the 2003 CAM charge of $82,573.33. 
    Id., ¶ 4;
    8cRRDX13 (proof of claim). Per
    4
    20020862.20090455/2250814.1
    the 2003 reconciliation statement, 3 which Garden Ridge had, the CAM includes a
    management fee of $58,259.14. 8RRPX11. Thus, Garden Ridge expressly agreed
    that the proper amount of CAM charges, including the management fee, was
    $82,573.33. 8RRPX3; 8RRPX11. With the right to do so, 8RRPX1, § 6.5, Garden
    Ridge did not ask to audit Clear Lake’s books before signing the Amendment.
    The Amendment also includes the parties’ ratification, confirmation and
    approval of all terms of the Lease except those specifically modified by the
    Amendment. 8RRPX3, ¶ 14(b). Both Garden Ridge and Clear Lake “waived” all
    existing “defaults . . . offsets and defenses . . . under the Lease.” 
    Id. Both Garden
    Ridge and Clear Lake “release[d] each other from all liabilities, claims,
    controversies, causes of action and other matters of every nature which, through
    [February 4, 2005], have or might have arisen out of or in any way in connection
    with the Lease and/or the Demised Premises demised thereunder.” 
    Id. In addition
    to the waiver and release, Garden Ridge also “represent[ed]” to
    Clear Lake that, except for the “amounts that compromise [sic] the Agreed Cure
    Amount, there exists no breach, default, event or condition which with the giving of
    notice or passage of time, or both, would constitute a breach or default under the
    3
    CAM charges were paid monthly, in advance, based on estimated annual costs, subject to
    year-end adjustment based on actual costs for which Clear Lake provided annual reconciliation
    statements. 8RRPX1, §§ 6.4, 6.5; see also, e.g., 8RRPX11. Garden Ridge had the right to inspect
    and audit Clear Lake’s records. 8RRPX1, § 6.5.
    5
    20020862.20090455/2250814.1
    Lease either by Lessee or Lessor, and (iii) except as provided otherwise in this
    Agreement, Lessee has no existing claims, defenses or offsets against rental due or
    to become due under the Lease.” 8RRPX3, ¶ 14(h).
    After the Bankruptcy court approved Garden Ridge’s assumption of the Lease
    as amended, the parties continued to perform as they had since Clear Lake’s
    purchase of the shopping center in 2003. Clear Lake billed estimated CAM charges
    monthly, provided reconciliation statements annually–each containing the same
    detailed, line item disclosures as the one for 2003, and Garden Ridge paid the CAM
    charges, including management fees. In 2009, Garden Ridge exercised its audit right,
    see 8RRPX1, § 6.5, and engaged an outside firm to conduct an “audit of annual
    operating costs” for the store. See 8RRPX52.
    Introduction
    Beginning with voir dire and his analogy to a cell–phone “charge showing up
    that you really did not order that you found out about later,” see 3RR40–46, counsel
    for Garden Ridge repeatedly infused into the proceedings that Garden Ridge “did
    not know” what the management fee was for. In opening statement, Garden Ridge’s
    lawyer told the jury, “we found out for the very first time” in 2009. 3RR121–22. In
    closing argument, he told the jury, “In 2009, they say, ‘Gee, this seems like a big
    number.’” 7RR69. Yet, but for the exclusion of evidence, the jury would have known
    that four years earlier when the insolvent Garden Ridge was trying to keep the store
    6
    20020862.20090455/2250814.1
    open, before the parties agreed to reduce Garden Ridge’s rent, extend the Lease term,
    permit Garden Ridge to pay out an agreed cure amount over time without interest,
    and to give Garden Ridge a $150,000.00 credit for a new air conditioner, Garden
    Ridge’s negotiating team said practically the same thing: “the estimate for 2005
    [CAM] is around $15,000 per month which seems excessive” … “Let’s discuss so
    there is no misunderstanding going forward.” 8dRRDX16–F; see also 7RR4 (Clear
    Lake’s proffer of Mr. Freedman’s testimony about the conversation he had with Mr.
    Spargo, the author of the excluded email). 4
    Contrary to Garden Ridge’s recurring theme that it “did not know,” the
    excluded evidence would have shown the jury that five years before Mr. Boystun
    was hired to do an audit, during the months leading up to the February 2005
    Amendment, Garden Ridge, its counsel, its in–house leasing staff, and its outside
    leasing consultants were fully apprised of all components of the CAM charges,
    including the management fee. See 8dRR16A–F; see also 8RRPX11. Garden Ridge
    did know; all material facts were available to Garden Ridge’s negotiating team in
    2004.
    4
    See Hooper v. Chittaluru, 
    222 S.W.3d 103
    , 108 (Tex. App.–Houston [14th Dist.] 2006,
    pet. denied) (‘The ‘nature of the disputed evidence was apparent to all,’ and thus the offer was
    sufficiently specific.” (quoting Fox v. State, 
    115 S.W.3d 550
    , 559 (Tex. App.–Houston [14th Dist.]
    2002, pet. ref’d))).
    7
    20020862.20090455/2250814.1
    The excluded evidence would have illuminated further that the Amendment
    did not appear out of a vacuum; it was negotiated for months. See, e.g., 8dRRDX14.
    But for the exclusion of evidence, the jury would have seen the mid–November
    2004, email asking for “more information to support” the $82,573.33 2003 CAM
    charge. 8dRRDX16–C. But for the exclusion of evidence, the jury would have seen
    that two weeks later, Garden Ridge’s negotiating team was still “checking on” the
    cure amounts. 8dRRDX16–E. But for the exclusion of evidence, the jury would have
    known that less than a week before signing the Amendment that extended the Lease
    through January 31, 2024, Garden Ridge’s negotiating team member, Mr. Spargo,
    wrote that the estimate for future CAM “seems excessive” and asked for (and got,
    see 7RR4) “discuss[ion] so there is no misunderstanding going forward.”
    8dRRDX16–F. An objective observer could only conclude that all possible
    misunderstandings about CAM charges “going forward” were resolved because
    Garden Ridge would not have signed the Amendment otherwise.
    There is no dispute that the management fee component of CAM was
    determined the same way for 2003 as it was for the years after 2003. It is Garden
    Ridge’s pro rata share of the 5% fee paid by Clear Lake to its property manager.
    8
    20020862.20090455/2250814.1
    So, when Garden Ridge knew (or is legally charged with knowledge) how the
    management fee was determined is important. Garden Ridge’s attorney thought so;
    he did his best to convince the jury that Garden Ridge was in the dark until 2009.
    But, as the Court wrote in the first appeal addressing limitations:
    Garden Ridge paid the 2004 CAM charge without question and without
    requesting an audit, for which it had a contractual right under Section 6.5
    of the lease. Garden Ridge could have inquired about the management fee
    as soon as Clear Lake sent the reconciliation, but Garden Ridge did not do
    so. Instead, Garden Ridge waited four years to request an audit, and there
    is no evidence Clear Lake provided false information during the course of
    the audit–indeed, the management agreement that Clear Lake provided
    during the audit is precisely how Garden Ridge learned of the breach.
    ***
    We hold as a matter of law that a tenant acting with due diligence could
    have discovered this type of injury by asking Clear Lake for information
    needed to verify contractual performance.
    Clear Lake Ctr., L.P. v. Garden Ridge, L.P., 
    416 S.W.3d 527
    , 544 (Tex. App.–
    Houston [14th Dist.] 2013, no pet.).
    The same analysis applies to Clear Lake’s affirmative defenses, particularly,
    estoppel. See Champlin Oil & Ref. Co. v. Chastain, 
    403 S.W.2d 376
    , 388 (Tex. 1965)
    (“imputed actual notice carries with it the same legal consequences as conscious
    knowledge.”). The Court should hold, consistently with the first appeal, that Garden
    Ridge, acting with due diligence, could have discovered the injury complained of in
    this case by asking Clear Lake before signing the Amendment for any information
    it needed before representing that:
    9
    20020862.20090455/2250814.1
    there exists no breach, default, event or condition which with the giving of
    notice or passage of time, or both, would constitute a breach or default
    under the Lease either by Lessee or Lessor, and (iii) except as provided
    otherwise in this Agreement, Lessee has no existing claims, defenses or
    offsets against rental due or to become due under the Lease.
    8RRPX3, ¶ 14(h).
    But for the exclusion of Clear Lake’s evidence, the jury would have known
    that when Garden Ridge represented in the Amendment that “there exists no breach,
    default, event or condition which … would constitute a breach or default under the
    Lease,” 8RRPX3, ¶ 14(h), Garden Ridge either knew how the management fee was
    determined or, if not, it was either willfully or negligently ignorant of the available
    facts. The jury should have been permitted to see and hear all the evidence—
    including precluded cross examination on excluded facts and documents—of what
    Garden Ridge knew, see, e.g., 7RR4, when it made the representation relied on by
    Clear Lake. The jury should have seen and heard the excluded evidence before it
    was asked to decide if Garden Ridge was precluded from complaining in 2009 about
    the same method of determining the management fee that it represented in the 2005
    Amendment was not a breach of the Lease. The trial court erred by excluding critical
    evidence offered by Clear Lake in support of its affirmative defenses.
    10
    20020862.20090455/2250814.1
    Summary of the Argument
    Clear Lake’s non–compliance, if there was any, was excused.
    Garden Ridge is legally precluded to have sued in 2009 for refund of CAM
    charges determined the same way after the Amendment as they were determined
    before it. Garden Ridge is charged with knowledge of its claimed injury–what the
    management fee was for–before February 2005. With that knowledge, Garden Ridge
    affirmatively represented in writing, in exchange for substantial value, that there was
    no breach, default, event or condition which would constitute a breach or default
    under the Lease and that it had no existing claims, defenses or offsets against rental
    due or to become due under the Lease. Having enjoyed the benefits of the Lease as
    amended for years, Garden Ridge is estopped, or otherwise legally precluded, to
    deny its prior, contractual representations or their effect.
    Clear Lake was not allowed to use certain evidence in support of its
    affirmative defenses. Garden Ridge’s objection was that admission of the evidence
    in issue would offend the parol evidence rule. Following Garden Ridge’s lead, the
    trial court erred, misconstruing and misapplying the parol evidence rule. Exclusion
    of the evidence was error and the erroneous rulings resulted in an incorrect judgment.
    11
    20020862.20090455/2250814.1
    Because Clear Lake is entitled, at minimum, to a new trial based on exclusion
    of its evidence, the jury’s findings of liability and damages cannot stand. Without
    sustainable findings of liability and damages, Garden Ridge may not recover
    attorneys’ fees.
    The Court concluded in the first appeal in this case that all claims which
    accrued before September 10, 2005 are barred by limitations. It is undisputed that
    Clear Lake charged and Garden Ridge paid management fees each month, including
    January through September, 2005. It is undisputed that Garden Ridge had the right
    to audit at any time but did not invoke it until 2009. Thus, each monthly payment of
    supposedly overstated fees marked accrual of any cause of action for the claimed
    overpayment. Garden Ridge is not entitled to damages for all of 2005 as found by
    the jury and as incorporated into the Judgment.
    Additionally, Clear Lake counterclaimed for breach of contract and for
    declaratory relief. Clear Lake prevailed on a claim for offset. Plus, Clear Lake
    adduced unrebutted evidence of its attorneys’ fees. Clear Lake is entitled to
    judgment in its favor, including its proven attorneys’ fees.
    Standard of Review
    An issue is conclusively established when the evidence is such that ordinary
    minds cannot differ as to the conclusion to be drawn from it. Triton Oil & Gas Corp.
    v. Marine Contractors & Supply, Inc., 
    644 S.W.2d 443
    , 446 (Tex. 1982);
    12
    20020862.20090455/2250814.1
    Behzadpour v. Bonton, 14–09–01014–CV, 
    2011 WL 304079
    , at *3 (Tex. App.–
    Houston [14th Dist.] Jan. 27, 2011, no pet.).
    The exclusion of evidence generally is within the discretion of the trial court.
    See Bayer Corp. v. DX Terminals, Ltd., 
    214 S.W.3d 586
    , 609 (Tex. App.–Houston
    [14th Dist.] 2006, pet. denied) (citing City of Brownsville v. Alvarado, 
    897 S.W.2d 750
    , 753 (Tex. 1995)). When error is shown and that error probably resulted in an
    improper judgment, the Court should reverse. See City of Brownsville v. 
    Alvarado, 897 S.W.2d at 753
    –54; see also Prestige Ford Co. Ltd. P’ship v. Gilmore, 
    56 S.W.3d 73
    , 78 (Tex. App.–Houston [14th Dist.] 2001, pet. denied); Walker v. Rangel, 14–
    08–00643–CV, 
    2009 WL 4342505
    , at *6 (Tex. App.–Houston [14th Dist.] Dec. 3,
    2009, no pet.); Tex. R. App. P. 44.1(a)(1). The Texas Supreme Court has further
    explained that, “if erroneously admitted or excluded evidence was crucial to a key
    issue, the error was likely harmful.” Reliance Steel & Aluminum Co. v. Sevcik, 
    267 S.W.3d 867
    , 873 (Tex. 2008). This is not a “but for” test; the complaining party is
    only required to show that the exclusion of evidence probably resulted in the
    rendition of an improper judgment. 
    Id. (citing McCraw
    v. Maris, 
    828 S.W.2d 756
    ,
    758 (Tex. 1992)). In determining whether harm resulted, the Court “must evaluate
    the whole case from voir dire to closing argument.” Reliance Steel & Aluminum Co.
    v. 
    Sevcik, 267 S.W.3d at 871
    .
    13
    20020862.20090455/2250814.1
    Argument and Authority
    Garden Ridge claimed that the way Clear Lake determined the annual
    management fee amount was a breach of the Lease. Clear Lake pleaded affirmative
    defenses including waiver, estoppel, ratification, novation, accord and satisfaction,
    judicial estoppel, and release. CR194–98. Because Garden Ridge knew or should
    have known how the fee was calculated before February 4, 2005, it is charged with
    knowledge and was estopped, or otherwise precluded, from bringing suit for the
    supposed breach.
    Issue 1:     Clear Lake’s affirmative defenses preclude Garden Ridge’s suit as
    a matter of law.
    Garden Ridge could have inquired about the management fee as soon as Clear
    Lake sent the 2003 reconciliation; it did not. With compelling incentive to
    successfully reorganize, Garden Ridge did not use its contractual right to audit
    during the 2004 or 2005 negotiations leading to the Amendment. 5 By analogy to this
    Court’s accrual analysis in the first appeal, with the 2003 reconciliation in hand, the
    contractual right to audit, and motivated by the desire to keep its store, Garden Ridge
    could have and should have discovered in 2004 how Clear Lake determined the
    management fee. See Clear Lake Ctr., L.P. v. Garden Ridge, L.P., 
    416 S.W.3d 527
    ,
    544 (Tex. App.–Houston [14th Dist.] 2013, no pet.) (citing TH Healthcare Ltd. v.
    5
    Garden Ridge waited until 2009 to first request an audit. See Clear Lake Ctr., L.P. v.
    Garden Ridge, L.P., 
    416 S.W.3d 527
    , 544 (Tex. App.–Houston [14th Dist.] 2013, no pet.).
    14
    20020862.20090455/2250814.1
    Patino, No. 13–06–602–CV, 
    2007 WL 2128909
    , at *5 (Tex. App.–Corpus Christi
    July 26, 2007, pet. denied) (mem. op.) (where contract allowed for reconciliation of
    overpayments to be conducted, if the plaintiff had conducted its reconciliation and
    audit, it would or should have known of the injury at that time). Had Garden Ridge
    exercised diligence as it negotiated the Amendment, see Clear Lake Ctr., 
    L.P., 416 S.W.3d at 543
    (citing Via Net v. TIG Ins. Co., 
    211 S.W.3d 310
    , 314 (Tex. 2006)),
    including invoking its right to audit, it would have known how the management fee
    was determined, the essence of the breach it claims.
    On the record of this case,6 especially as illuminated by the excluded evidence
    of negotiations, see, e.g, 8dRRDX16–C, DX16–F, 7RR4, Garden Ridge, as a matter
    of law, is charged with knowledge on February 4, 2005, of the “prior CAMS,”
    including the management fee. See Champlin Oil & Ref. Co. v. Chastain, 
    403 S.W.2d 376
    , 388–89 (Tex. 1965) (“Means of knowledge with the duty of using them
    are in equity equivalent to knowledge itself.”) (quoting Hexter v. Pratt, 
    10 S.W.2d 692
    , 693 (Tex. Comm’n App. 1928, judgm’t adopted) (emphasis added)); see also
    Little v. Smith, 
    943 S.W.2d 414
    , 421 (Tex. 1997). Because Garden Ridge had
    “knowledge or information of facts sufficient to put [it] upon inquiry which if
    reasonably pursued would lead to the discovery of the controlling fact” (the use of
    6
    As this Court observed in the first appeal, “Garden Ridge’s … injury could have been
    discovered with the exercise of due diligence.” Clear Lake Ctr., L.P. v. Garden Ridge, L.P., 
    416 S.W.3d 527
    , 544 (Tex. App.–Houston [14th Dist.] 2013, no pet.).
    15
    20020862.20090455/2250814.1
    the plant allocation formula in Champlin; the management fee calculation here),
    Garden Ridge is “charged with actual knowledge of such controlling fact.”
    Champlin Oil & Ref. Co. v. 
    Chastain, 403 S.W.2d at 403
    –04 [emphasis added].
    Charged with such knowledge, Garden Ridge represented in the Amendment that
    “there exists no breach, default, event or condition which … would constitute a
    breach or default under the Lease” and that it had no “existing claims, defenses or
    offsets against rental due or to become due[ 7] under the Lease.” 8RRPX3, ¶ 14(h)
    [emphasis added]. Having made the representations, Garden Ridge is bound by them
    and estopped to sue for an alleged breach based on post–Amendment management
    fees determined using the same method used before Garden Ridge signed the
    Amendment. See Champlin Oil & Ref. Co. v. 
    Chastain, 403 S.W.2d at 388
    . 8
    The elements of estoppel are: (1) a false representation or concealment of
    material facts; (2) made with knowledge, actual or constructive, of those facts; (3)
    with the intention that it should be acted on; (4) to a party without knowledge or
    7
    See 8dRRDX16-F (“[I]t looks like the estimate for 2005 is around $15,000 per month
    which seems excessive. Some reasonable increase over the $8,500 amount would seem to be more
    realistic. Let’s discuss so there is no misunderstanding going forward.”).
    8
    The Champlin Oil case quotes from Love v. Barber, 
    17 Tex. 312
    (1856): “[In Pickard v.
    Sears, Eng. C.L. vol. 33, p. 117, (112 Eng.Rep. 179), Lord Denman] says ‘that the rule of law is
    clear, that when one, by his words or conduct, willfully causes another to believe the existence of
    a certain state of things, and induces him to act on that belief, so as to alter his own previous
    position, the former is concluded from averring, against the latter, a different state of things, as
    existing at the same time …’”; and from a later Lord Denman opinion: “‘A party, who negligently
    or culpably stands by and allows another to contract on the faith and understanding of a fact which
    he can contradict, cannot afterwards dispute that fact in an action against the person whom he has
    himself assisted in deceiving.’”
    16
    20020862.20090455/2250814.1
    means of obtaining knowledge of the facts; and (5) who detrimentally relies on the
    representations. See Johnson & Higgins of Texas, Inc. v. Kenneco Energy, Inc., 
    962 S.W.2d 507
    , 515–16 (Tex. 1998); see also Kamat v. Prakash, 
    420 S.W.3d 890
    , 900
    (Tex. App.–Houston [14th Dist.] 2014, no pet.); CR267, 268 (Questions 2 and 3).
    Relying on the truth of Garden Ridge’s representation that nothing Clear Lake
    had done or omitted to do in connection with the Lease through 2004 constituted a
    breach or a default and its representation that Garden Ridge had “no defenses or
    offsets against rental due or to become due,” 8RRPX3, Clear Lake agreed to and
    did change its position to its detriment. CR268 (Question 3); see Falcon Enterprises,
    Inc. v. Sugar Creek Section 25, 14–97–00817–CV, 
    1999 WL 966645
    , at *12 (Tex.
    App.–Houston [14th Dist.] Oct. 21, 1999, pet. denied) (not designated for
    publication); see also Freezia v. IS Storage Venture, LLC, 14–14–00174–CV, 
    2015 WL 4983705
    , at *6 (Tex. App.–Houston [14th Dist.] Aug. 20, 2015, no pet.)
    (Doctrine of quasi–estoppel forbids a party from accepting the benefits of a
    transaction and then subsequently taking an inconsistent position to avoid
    corresponding obligations or effects); Steubner Realty 19, Ltd. v. Cravens Rd. 88,
    Ltd., 
    817 S.W.2d 160
    , 164 (Tex. App.–Houston [14th Dist.] 1991, no writ); Eckland
    Consultants, Inc. v. Ryder, Stilwell Inc., 
    176 S.W.3d 80
    , 87 (Tex. App.–Houston [1st
    Dist.] 2004, no pet.). The Lease term was extended to 2024, Garden Ridge’s rent
    was reduced. 8RRPX3. Garden Ridge was permitted to pay out the agreed cure
    17
    20020862.20090455/2250814.1
    amount in default over time, without interest, and was given a $150,000 credit for
    new air conditioning. 
    Id. On these
    conclusively established facts and the applicable
    law, Garden Ridge was estopped to challenge how Clear Lake determined the
    management fees.
    There is no dispute that the fees were determined the same way after the
    Amendment as they were before it. Thus, Garden Ridge is precluded by law from
    accepting the benefits of the Amendment for years, then taking an inconsistent
    position to avoid obligations or effects of the clear language of its representations in
    the Amendment. Freezia v. IS Storage Venture, 
    LLC, supra
    . The law is clear and
    reasonable minds cannot differ as to the facts. Clear Lake is entitled to reversal and
    rendition of judgment in its favor.
    Issue 2:           The trial court erroneously applied the parol evidence rule.
    In the alternative, the trial court’s exclusion of evidence based on the parol
    evidence rule was reversible error.
    With pleadings and evidence to submit jury questions, the trial court,
    nevertheless, erroneously excluded much of Clear Lake’s evidence offered to prove
    its affirmative defenses. See CR267–68 (Jury Questions 2 (excuse) and 3 (estoppel)).
    The evidence excluded concerns several months of negotiation immediately before
    the parties executed the February 4, 2005 [second] Amendment to the Lease. The
    18
    20020862.20090455/2250814.1
    trial court’s rulings were predicated on Garden Ridge’s ill–founded objection, its
    often repeated refrain: “parol evidence rule.” 9
    The parol evidence rule generally excludes extrinsic evidence of a prior or
    contemporaneous agreement between the parties to a written contract, if such
    evidence changes or contradicts the terms of the written contract. See Wagner v.
    Morris, 
    658 S.W.2d 230
    , 231 (Tex. App.–Houston [1st Dist.] 1983, no writ). Clear
    Lake made no effort to vary the any term of the original Lease or the Lease as
    amended. The parol evidence rule is neither applicable to nor a proper basis for
    excluding the proffered evidence. On the other hand, the failure of the trial court to
    afford the Clear Lake the opportunity to present pertinent evidence and to cross-
    examine witnesses about that evidence was error rendering the trial materially unfair.
    See Fillion v. Osborne, 
    585 S.W.2d 842
    , 845 (Tex. Civ. App.—Houston [1st Dist.]
    1979, no writ); Avila v. U. S. Fid. & Guar. Co., 
    551 S.W.2d 453
    , 457 (Tex. Civ.
    App.–San Antonio 1977, writ ref’d n.r.e.).
    The validity and scope of the management fee is part of the original Lease
    executed in 1995. See 8RRPX1, §§ 6.1 (“Common Area”), 6.3 (“Operation of
    Common Area”), 6.4 (“Common Area Costs”). There is no formula or calculation
    for determining the management fee contained in the Lease. See 
    id. The excluded
    9
    See, e.g., 2RR5, 11, 17, 19, 21, 22, 33, 38, 55; 3RR16, 89-91, 98, 100, 102, 103; 4RR161-
    62, 168, 170, 173-73, 174, 176, 178; 6RR18, 22.
    19
    20020862.20090455/2250814.1
    evidence has nothing to do with any such formula or calculation. Rather, the
    evidence relates to actions and communications occurring in 2004 or 2005, before
    execution of the Amendment. Obviously, it is not evidence of anything (agreement
    or otherwise) occurring prior to or contemporaneous with signing the 1995 Lease.
    Lease terms establishing the validity and scope of the management fee, moreover,
    are not changed by the Amendment. See 8RRPX3. The evidence of communications
    during the 2004 and 2005 negotiations does not constitute and was not offered as
    evidence of an “agreement” at all. It is evidence of what Garden Ridge said and did
    and what it knew and, implicitly, should have known when it signed the Amendment.
    Simply, Clear Lake did not offer the excluded evidence to change any provision of
    the original Lease.
    If it is the Amendment that concerned the trial court, still, the parol evidence
    rule “does not prohibit consideration of surrounding circumstances that inform,
    rather than vary from or contradict, the contract text.” Houston Exploration Co. v.
    Wellington Underwriting Agencies, Ltd., 
    352 S.W.3d 462
    , 469 (Tex. 2011); Saba Zi
    Expl., L.P. v. Vaughn, 
    448 S.W.3d 123
    , 131 (Tex. App.–Houston [14th Dist.] 2014,
    no pet.). Clear Lake did not advocate changing any provision of the Amendment. To
    the contrary, it argued that the unambiguous representations that “there exists no
    breach, default, event or condition which … would constitute a breach or default
    under the Lease” and that there are “no defenses or offsets against rental due or to
    20
    20020862.20090455/2250814.1
    become due,” 8RRPX3, should be enforced as written. It remains Clear Lake’s
    position that Garden Ridge cannot avoid its corresponding obligations or the effect
    of its words by taking the inconsistent position that is the heart of its case. See, e.g.,
    Freezia v. IS Storage Venture, 
    LLC, supra
    . Because the management fee was
    determined in exactly the same way in 2003 as it was through 2014, Clear Lake was
    entitled to put on evidence of what Garden Ridge’s negotiating team knew as it
    negotiated the Amendment. This is not parol evidence.
    But for the trial court’s erroneous application of the parol evidence rule, the
    jury would have seen that Garden Ridge specifically asked for “more information to
    support” the $82,573.33 2003 CAM charge. 8dRRDX16–C. The jury would have
    seen the email where Garden Ridge wrote that it was “checking on” the cure
    amounts. 8dRRDX16–E. Clear Lake was prevented from asking any Garden Ridge
    witness what it did to check on the cure amounts. But for the trial court’s erroneous
    application of the parol evidence rule, the jury would have known that Garden
    Ridge’s Mr. Spargo wrote in January 2005, before execution of the Amendment: the
    estimate of $15,000 per month for CAM charges going forward “seems excessive.”
    8dRRDX16–F. Mr. Spargo wrote, “Let’s discuss so there is no misunderstanding
    going forward.” 
    Id. This is
    not parol evidence. With no evidence or suggestion that
    21
    20020862.20090455/2250814.1
    Clear Lake withheld anything Garden Ridge’s negotiating team asked for,10 and, had
    it heard Mr. Freedman’s excluded testimony “about the conversation that he had
    with Dave Spargo related to the negotiations of the second amendment to the lease,”
    7RR4, the jury could (and should) reasonably have believed that Clear Lake’s failure
    to comply, if any, was excused, 11 CR267 (Question 2), and/or that Garden Ridge
    was estopped to pursue this case. See CR268 (Question 3).
    10
    See Clear Lake Ctr., L.P. v. Garden Ridge, L.P., 
    416 S.W.3d 527
    , 544 (Tex. App.–Houston
    [14th Dist.] 2013, no pet.) Discussing the 2004 reconciliation in its limitations analysis, the Court
    noted that Garden Ridge could have inquired about the management fee as soon as Clear Lake sent
    the reconciliation, but did not do so; “Garden Ridge waited four years to request an audit.” 
    Id. It noted
    the absence of evidence that Clear Lake withheld any information. 
    Id. 11 Question
    2 includes, e.g., waiver, novation, ratification, and accord and satisfaction.
    CR267; see also CR194-98. Waiver is the intentional relinquishment of a known right, or conduct
    which is inconsistent with claiming the right. Jernigan v. Langley, 
    111 S.W.3d 153
    , 156 (Tex.
    2003). While ordinarily a question of fact, when the surrounding facts and circumstances are
    undisputed, the question becomes one of law. Id.; Motor Vehicle Bd. v. El Paso Indep. Auto
    Dealers Assn., Inc., 
    1 S.W.3d 108
    , 111 (Tex. 1999). Silence or inaction for so long a period as to
    show an intention to yield the known right is enough to prove waiver. Tenneco, Inc. v. Enterprise
    Prod. Co., 
    925 S.W.2d 640
    , 643 (Tex. 1996); Alford. Meroney & Co. v. Rowe, 
    619 S.W.2d 210
    ,
    213 (Tex. 1981).
    The elements of a novation are: (1) a previous, valid obligation; (2) a mutual agreement
    of the parties to the acceptance of a new contract; (3) the extinguishment of the old contract; and
    (4) the validity of the new contract. Vickery v. Vickery, 
    999 S.W.2d 342
    , 356 (Tex. 1999).
    The elements of ratification are (1) approval by act, word, or conduct, (2) with full
    knowledge of the facts of the earlier act, and (3) with the intention of giving validity to the earlier
    act. See, e.g., Corcoran v. Atascocita Cmty. Imp. Ass’n, Inc., 14-12-00982-CV, 
    2013 WL 5888127
    ,
    at *6 (Tex. App.–Houston [14th Dist.] Oct. 31, 2013, pet. denied) (citing White v. Harrison, 
    390 S.W.3d 666
    , 672 (Tex. App.–Dallas 2012, no pet.). A party ratifies an agreement when—after
    learning all of the material facts—he confirms or adopts an earlier act that did not then legally bind
    him and that he could have repudiated. 
    Id. An accord
    requires a bargaining evidenced in a new contract, either express or implied,
    that replaces an old agreement. Vickery v. Vickery, 
    999 S.W.2d 342
    , 355 (Tex. 1999) (citing
    Bueckner v. Hamel, 
    886 S.W.2d 368
    , 372 (Tex. App.–Houston [1st Dist.] 1994, writ denied). In
    the new contract, the parties agree that one may give or perform, and the other will accept,
    something different from what each was expecting from the old contract. 
    Id. The satisfaction
    is
    the actual performance of the new agreement. 
    Id. The Amendment
    is the accord; performance from
    2005 through at least the middle of 2009 is the satisfaction.
    22
    20020862.20090455/2250814.1
    The jury could (and should) reasonably have found that Garden Ridge was
    estopped to complain about any alleged non–compliance. CR268 (Question 3). It
    was conclusively established that Garden Ridge, in fact, took voluntary action
    concerning the Lease. See 
    id. Garden Ridge
    decided it was in the company’s best
    interest to keep the store at Clear Lake Center. It negotiated the Amendment for
    which Clear Lake gave substantial value. In exchange for that value, Garden Ridge
    represented in the Amendment that the amount of the CAM, inclusive of the
    management fee, charged for 2003 (and the estimated CAM going forward) was not
    a “breach, default, event or condition which … would constitute a breach or default
    under the Lease” and that there were “no defenses or offsets against rental due or to
    become due.” 8RRPX3.
    But for the erroneous exclusion of, for example, Clear Lake’s exhibit 16, the
    consequent inability to cross examine on those documents, and Mr. Freedman’s
    excluded testimony about discussions he had with Mr. Spargo, the jury would have
    known that with incentive–even a duty–to negotiate the best deal obtainable, Garden
    Ridge was specifically focused on the 2003 CAM charges for over two months.
    8dRRDX14, DX16; 7RR4. See Freezia v. IS Storage Venture, 
    LLC, supra
    ; Steubner
    Realty 19, Ltd. v. Cravens Rd. 88, 
    Ltd., supra
    . Based on Garden Ridge’s
    representations, Clear Lake agreed to extend the Lease term, reduce Garden Ridge’s
    rent, let Garden Ridge pay out amounts in default over time, without interest, and,
    23
    20020862.20090455/2250814.1
    give Garden Ridge a $150,000 credit for air conditioning. 8RRPX3. With
    information the trial court erroneously excluded, the jury could (and should)
    reasonably have found that to allow Garden Ridge to challenge the management fee
    determined exactly the same way it had been since 2003 would be contrary to Garden
    Ridge’s “initial action” in procuring the Amendment and would result in harm to
    Clear Lake. CR268 (Question 3). The trial court’s erroneous rulings based on
    misconception and misapplication of the parol evidence rule deprived the jury of
    relevant, critical information. See Reliance Steel & Aluminum Co. v. Sevcik, 
    267 S.W.3d 867
    , 873 (Tex. 2008). It deprived Clear Lake of the opportunity to examine
    and cross-examine witness about the excluded documents. The error deprived Clear
    Lake of a fair trial, resulted in an incorrect judgment, and should be reversed.
    Evidence of what questions Garden Ridge’s negotiating team asked, what
    information Clear Lake provided, and what Garden Ridge did or did not do with
    information before signing the Amendment simply does not offend the parol
    evidence rule. It is admissible evidence and can be used to inform the contractual
    text without altering the objective intent embodied in the agreement. Evidence of the
    parties’ negotiations is relevant to “ascertaining the dominant purpose and intent of
    the parties embodied in the contract interpreted as a whole.” Houston Expl. Co. v.
    Wellington Underwriting Agencies, Ltd., 
    352 S.W.3d 462
    , 469–70 (Tex. 2011)
    (quoting Tanner Dev. Co. v. Ferguson, 
    561 S.W.2d 777
    , 781 (Tex. 1977); see also
    24
    20020862.20090455/2250814.1
    Creel v. Houston Indus., Inc., 
    124 S.W.3d 742
    , 750 n.8 (Tex. App.–Houston [1st
    Dist.] 2003, no pet.) (citing, inter alia, Sun Oil Co. (Delaware) v. Madeley, 
    626 S.W.2d 726
    , 731 (Tex. 1981)). Emails evidencing Garden Ridge’s specific focus on
    the CAM charges in negotiating the Amendment, see, e.g., 8dRRDX16–F, and Clear
    Lake’s (Mr. Freedman’s) proffered testimony about discussions that followed, see
    7RR4, clearly are relevant, to jury Questions 2 and 3. CR267, 268. It was error for
    the trial court to exclude the evidence and additional evidence the ability to examine
    and cross-examine would certainly have produced, particularly where the only
    objection was the parol evidence rule.
    The excluded evidence provides details to the parties’ months–long
    negotiation before signing the Amendment. See, e.g., 8dRRDX14, DX15, DX16.
    The excluded evidence would have informed the jury about the time the parties
    devoted, their focus on various aspects of the proposed amendment, particularly,
    Garden Ridge’s focus on the CAM charges, and information available to Garden
    Ridge–that which it asked for and that which it did not–during the negotiations.12
    12
    Clear Lake was permitted to present deposition testimony of one of Garden Ridge’s
    attorneys, Ms. Kimichik. See 6RR124, et seq. However, documents about which she testified were
    excluded. Any suggestion that specific information in excluded emails is cumulative is unfounded,
    specifically, see, 8dRRDX16-F. Mr. Freedman’s proffered but excluded testimony about his
    discussions with Mr. Spargo is, likewise, not cumulative of anything Ms. Kimichik said. In any
    event, Garden Ridge did not invoke and the trial court did not mention evidence rule 403. Tex. R.
    Evid. 403; see also In re N.R.C., 
    94 S.W.3d 799
    , 807 (Tex. App.–Houston [14th Dist.] 2002, pet.
    denied) (“The mere fact that another witness may have given the same or substantially the same
    Footnote continued on next page.
    25
    20020862.20090455/2250814.1
    See 8dRRDX14, DX15, DX16; 7RR4. The evidence would have shown the jury
    Garden Ridge’s focus on the CAM charges and how they were determined both for
    2003 and going forward, the controlling issue in this case. See Reliance Steel &
    Aluminum Co. v. 
    Sevcik, supra
    ; CR266 (Question 1). Evidence supporting Clear
    Lake’s corresponding affirmative defenses is no less critical. See CR267, 268; see
    also Bartosh v. Gulf Health Care Ctr.–Galveston, 
    178 S.W.3d 434
    , 439 (Tex. App.–
    Houston [14th Dist.] 2005, no pet.) (citing Williams Distrib. Co. v. Franklin, 
    898 S.W.2d 816
    , 817 (Tex. 1995).
    During the course of negotiating, in addition to the “cure amounts,” including
    CAM charges, remaining “bracketed,” 8dRRDX14, DX15, DX16–E (November 29
    and December 20 emails), Garden Ridge wrote specifically about the CAM amount
    at least twice. On November 15, Garden Ridge’s accounting department wanted
    “more information” about “prior” CAMs. 8dRRDX16–C. On January 27, Mr.
    Spargo asked to discuss CAM estimates for 2005 “so there is no misunderstanding
    going forward.” 8dRRDX16–F. Had the jury been permitted to see this evidence in
    context with the undisputed fact that the Amendment was signed on February 4, its
    Footnote continued from previous page.
    testimony is not the decisive factor. Rather, we consider whether the excluded testimony would
    have added substantial weight to the complainant’s case.”) [internal citations omitted]. Without
    the evidence and with no opportunity to examine witnesses using it, the trial was materially unfair
    to Clear Lake. See Fillion v. 
    Osborne, 585 S.W.2d at 845
    ; Avila v. U. S. Fid. & Guar. 
    Co., 551 S.W.2d at 457
    .
    26
    20020862.20090455/2250814.1
    only reasonably conclusion would be that these specific concerns expressly raised
    in the negotiating process all had been addressed to Garden Ridge’s satisfaction.
    Why else would it sign the Amendment? Why else would Garden Ridge
    affirmatively represent in writing that, on February 4, 2005, “there exist[ed] no
    breach, default, event or condition which … would constitute a breach or default
    under the Lease[?]” 8RRPX3. Clear Lake was entitled to present evidence on the
    critical issues, its affirmative defenses to Garden Ridge’s claim. The trail court’s
    exclusion of the evidence, as parol evidence or otherwise, was harmful error. See
    Reliance Steel & Aluminum Co. v. 
    Sevcik, 267 S.W.3d at 873
    .
    The excluded evidence clearly shows Garden Ridge’s focus on the CAM
    charges, both past and future, before signing the Amendment. Assuming Garden
    Ridge’s suit was not precluded as a matter of law, without Mr. Spargo’s January 27
    email without Mr. Freedman’s testimony about his conversations with Mr. Spargo,
    the jury could not fairly answer Questions 2 and 3. The jury was prevented from
    fully and fairly assessing what Garden Ridge knew and what it considered important
    to find out before contractually waiving and releasing past breaches (if any), and
    before affirmatively representing that, except for its own defaults comprising the
    Agreed Cure Amount, “there exists no breach, default, event or condition which …
    would constitute a breach or default under the Lease either by Lessee or Lessor” and
    it had “no defenses or offsets against rental due or to become due.” 8RRPX3, ¶14(h).
    27
    20020862.20090455/2250814.1
    Assuming Garden Ridge’s suit was not precluded, without testimony erroneous
    excluded as “parol evidence,” the jury could not fairly and impartially answer
    whether Garden Ridge is estopped from complaining in 2009 about the method of
    determining the management fee that was the same method used in 2003. The
    exclusion of evidence was error and the error was harmful. At a minimum, the
    judgment should be reversed and the case remanded for a new trial.
    Issue 3:  Based on the erroneous exclusion of evidence, findings of liability
    and damages must fail.
    Because, as set forth above, the trial court erred by excluding admissible,
    critical evidence, the findings of liability and damages in favor of Garden Ridge are
    unsustainable and the Judgment must be reversed.
    Issue 4:          Garden Ridge is not entitled to recover attorneys’ fees as found by
    the jury.
    Likewise, without sustainable findings of liability and damages, Garden Ridge
    is not entitled to recover attorneys’ fees. See Tex. Civ. Prac. & Rem. Code § 38.001;
    8RRPX1, § 19.4.
    Additionally, the evidence shows that some of the fees claimed by Garden
    Ridge were not incurred by Garden Ridge; rather, the evidence clearly shows a
    portion of the claimed fees were incurred by a non–party venture capital firm called
    Three Cities Venture. See, e.g., 8bRRPX90; 5RR74, 79, 132, 152 (Clear Lake’s
    objection, overruled at 5RR81). Garden Ridge did not present evidence that fees
    28
    20020862.20090455/2250814.1
    billed to Three Cities Venture were paid by Garden Ridge. Assuming the non–party
    incurred fees in order to monitor or even assist in Garden Ridge’s prosecution of its
    claims, the Lease provides for recovery of fees “incurred by Tenant,” not an affiliate,
    investor, or stranger. 8RRPX1, § 19.4. With no evidence that it paid or agreed to pay
    fees incurred by the non–party, Garden Ridge is not entitled to recover fees
    evidenced by plaintiff’s exhibit 90. The exhibit should not have been admitted over
    Clear Lake’s objection and, therefore, evidence to support the jury’s response to
    Question 5 is insufficient.
    Issue 5:   Limitations bars recovery of any damages incurred prior to
    September 10, 2005.
    The statute of limitations for breach of contract claims bars all claims that
    accrued more than four years from the date that suit was filed. See Tex. Civ. Prac.
    & Rem. Code §§16.004, 16.051. The Court held in the first appeal that all claims
    accrued before September 10, 2005, are barred. Clear Lake Ctr., L.P. v. Garden
    Ridge, L.P., 
    416 S.W.3d 527
    , 546 (Tex. App.–Houston [14th Dist.] 2013, no pet.).
    The Court did not reach Clear Lake’s argument that claims for estimated CAM
    charges paid prior to September 10, 2005, but subject to later reconciliation, had
    accrued and, therefore, were barred. 
    Id. at 544–45.
    Garden Ridge’s claims accrued “when a wrongful act cause[d] an injury,
    regardless of when the plaintiff learn[ed] of the injury.” Franco v. Slavonic Mut.
    Fire Ins. Ass’n, 
    154 S.W.3d 777
    , 789 (Tex. App.–Houston [14th Dist.] 2004, no pet.)
    29
    20020862.20090455/2250814.1
    (citing Moreno v. Sterling Drug, Inc., 
    787 S.W.2d 348
    , 351 (Tex. 1990)). Suit was
    filed September 10, 2009. Therefore, the statute of limitations bars the recovery of
    any management fee paid before September 10, 2005. See Tex. Civ. Prac. & Rem.
    Code §§16.004, 16.051. The bar includes claims for the monthly management fee (a
    component of estimated CAM) paid at any time before September 10, 2005.
    The estimated CAM charges for 2005 were $15,577.61 per month, inclusive
    of the management fee. 3CR 1173. The management fee for all of 2005 was
    $75,561.47, or $6,296.79 per month. See 8RRPX13. Even if Garden Ridge was
    entitled to sue for and recover any of the management fees at issue, it was barred
    from recovering any of the $56,671.10 2005 fees paid before September 10, 2005.
    Accordingly, the jury’s response to question 4, $80,000, is necessarily overstated.
    Garden Ridge paid the estimated CAM charge every month without question and
    without requesting an audit. “Garden Ridge could have inquired about the
    management fee as soon as Clear Lake sent the [2003 or 2004] reconciliation, but
    Garden Ridge did not do so.” See Clear Lake Ctr., L.P. v. Garden Ridge, L.P., 
    416 S.W.3d 527
    , 544 (Tex. App.–Houston [14th Dist.] 2013, no pet.). In fact, the
    contractual right to audit is not tied to the reconciliation at all. 8RRPX1, §§ 6.4, 6.5.
    Garden Ridge could have inquired at any time about the monthly estimated CAM
    amounts. Thus, at a minimum, all amounts adjudged as damages but incurred before
    September 10, 2005, must be excluded from the Judgment.
    30
    20020862.20090455/2250814.1
    Issue 6:     Clear Lake is entitled to judgment in its favor, including its
    attorneys’ fees.
    Clear Lake counterclaimed for breach of contract. CR198–200. Per the
    Judgment, it established the right of “offset” in the amount $5,300.00. CR359; see
    also CR279 (Question 13); Tex. Civ. Prac. & Rem. Code §38.001. Nevertheless and
    irreconcilably, the jury found $0 to be Clear Lake’s reasonable and necessary
    attorneys’ fees. CR275 (Question 9). The response to question 9 is not sustainable.
    Generally, it is the province of the jury to determine the reasonable value of
    an attorney's services. Tarleton State University v. K.A. Sparks Contractor, Inc., 
    695 S.W.2d 362
    , 367 (Tex. App.–Waco 1985, writ ref'd n.r.e.) (citing Gulf Paving Co.
    v. Lofstedt, 
    144 Tex. 17
    , 
    188 S.W.2d 155
    , 160 (Tex. 1945)). However, if the
    evidence is not contradicted by any other witness, or attendant circumstances, and
    the same is clear, direct and positive, and free from contradiction, inaccuracies, and
    circumstances tending to cast suspicion thereon, it is taken as true, as a matter of
    law. Ragsdale v. Progressive Voters League, 
    801 S.W.2d 880
    , 882 (Tex. 1990).
    Clear Lake offered unrebutted evidence of its attorney’s fees; Mr. O’Connell
    opined that $350,000 to $400,000.00 would be reasonable fees for Clear Lake in the
    case. 6RR41; see also 8cRRDX20 (fee bills). Although the witness was cross
    examined, his testimony was not rebutted and no charge reflected on the attorneys’
    invoices, 8cRRDX20, was challenged. Clear Lake’s fees can be and should have
    been determined as a matter of law. Cochran v. Wool Growers Central Storage Co.,
    31
    20020862.20090455/2250814.1
    
    140 Tex. 184
    , 
    166 S.W.2d 904
    , 908 (1942); see also McGilliard v. Kuhlmann, 
    722 S.W.2d 694
    (Tex. 1986); Anchor Casualty Co. v. Bowers, 
    393 S.W.2d 168
    , 169–170
    (Tex. 1965). In any event, the jury’s $0 response to question 9 is unsustainable.
    Conclusion
    Because Garden Ridge is estopped or otherwise legally precluded from
    pursuing its claims in this case; because Clear Lake proved counterclaim damages
    of at least $5,300; and, because Clear Lake established its attorneys’ fees as a matter
    of law, the judgment should be reversed and judgment rendered in favor of Clear
    Lake for damages of at least $5,300 plus attorneys’ fees of at least $350,000. In the
    alternative, the judgment should be reversed and the case remanded for a new trial
    on Clear Lake’s attorneys’ fees. In the further alternative, the Judgment should be
    reversed and remanded for a new trial to permit Clear Lake to present erroneously
    excluded evidence in support of its affirmative defenses. In the further alternative,
    the Judgment should be reversed, or at minimum modified, to eliminate all damages
    and related attorneys’ fees for claims accrued before September 10, 2005.
    32
    20020862.20090455/2250814.1
    Clear Lake’s Appellee’s Brief
    [Clear Lake incorporates the Statement of the Case and Statement of Facts in
    it Cross Appellant’s Brief]
    Standard of Review
    Assuming the Judgment could survive this appeal, at what rate Garden Ridge
    might recover judgment interest depends on the Lease language, a question of
    contract construction reviewed de novo. See ConocoPhillips Co. v. Noble Energy,
    Inc., 
    462 S.W.3d 255
    , 265 (Tex. App.–Houston [14th Dist.] 2015, pet. filed) (citing
    Tawes v. Barnes, 
    340 S.W.3d 419
    , 425 (Tex. 2011)); Washington Square Fin., LLC
    v. RSL Funding, LLC, 
    418 S.W.3d 761
    , 767 (Tex. App.–Houston [14th Dist.] 2013,
    pet. denied).
    Assuming the judgment could survive and no statute controls, the decision to
    award prejudgment interest is within the trial court’s discretion. Hand & Wrist Ctr.
    of Houston, P.A. v. Republic Services, Inc., 
    401 S.W.3d 712
    , 717 (Tex. App.–
    Houston [14th Dist.] 2013, no pet.). As such, the Court reviews for abuse of that
    discretion. 
    Id. (citing Marsh
    v. Marsh, 
    949 S.W.2d 734
    , 744 (Tex. App.–Houston
    [14th Dist.] 1997, no writ)). A trial court abuses its discretion when it fails to analyze
    or apply the law correctly. Iliff v. Iliff, 
    339 S.W.3d 74
    , 78 (Tex. 2011).
    33
    20020862.20090455/2250814.1
    Argument and Authorities
    The Lease does not include an agreement for interest on the disputed refunds
    claimed.
    Garden Ridge is not entitled to 18% interest either pre– or post–judgment
    based on any language found in the Lease. If any judgment in favor of Garden Ridge
    survives, applicable interest must conform to section 304.003 of the Texas Finance
    Code. See Tex. Fin. Code § 304.003. Section 304.002 of the Finance Code does not
    apply. See Tex. Fin. Code § 304.002. The Lease cannot be reasonably read to include
    an agreement providing 18% interest on disputed reimbursement amounts.
    As with any contract, proper construction the Lease requires: (1) reviewing
    the Lease as a whole, not picking and choosing among isolated provisions, Columbia
    Gas Trans. Corp. v. New Ulm Gas, Ltd., 
    940 S.W.2d 587
    , 589 (Tex. 1996); (2) giving
    effect to all of the terms, so that none is rendered meaningless, Kelley–Coppage, Inc.
    v. Highlands Ins. Co., 
    980 S.W.2d 462
    , 464 (Tex. 1998); and (3) construing each
    provision to give it the intended effect. Forbau v. Aetna Life Ins. Co., 
    876 S.W.2d 132
    , 133 (Tex. 1994). Words used in an unambiguous contract are to be given their
    plain meanings. See Lyons v. Montgomery, 
    701 S.W.2d 641
    , 643 (Tex. 1985). Courts
    are “not at liberty to rewrite the contract or interpret it in a manner which the parties
    never intended.” Sun Operating Ltd. P’ship v. Holt, 
    984 S.W.2d 277
    , 283 (Tex.
    App.–Amarillo 1998, pet. denied); see also Helmerich & Payne Intern. Drilling Co.
    34
    20020862.20090455/2250814.1
    v. Swift Energy Co., 
    180 S.W.3d 635
    , 641 (Tex. App.–Houston [14th Dist.] 2005, no
    pet.) (citing Am. Mfrs. Mut. Ins. Co. v. Schaefer, 
    124 S.W.3d 154
    , 162 (Tex. 2003).
    Garden Ridge first relies on section 4.3. See Brief, p. 8, et seq. The section,
    captioned “Failure to Pay Rental on Time,” is part of Article IV, all of which relates
    to Garden Ridge’s obligation to pay rent. See 8RRPX1, art. IV. 13 Garden Ridge
    argues that the phrase, “Past due Base Rental and other past due payments shall bear
    interest from maturity at the rate of eighteen percent (18%) per annum …” should
    be read to apply to reconciliation reimbursements 14 that Garden Ridge did not seek
    until 2009, that Clear Lake vigorously contested, and that were not adjudicated as
    “due” for another 6 years. See CR359–61.
    Notwithstanding the strained reading Garden Ridge suggests, the other
    sentence in section 4.3 places the “past due payments” language in its proper context:
    “All other sums and charges of whatsoever nature required to be paid by Tenant to
    Landlord pursuant to the terms of this Lease constitute additional rent (whether or
    not the same be designated “additional rent”), and failure by Tenant to timely pay
    such other sums or charges may be treated by Landlord as a failure by Tenant to pay
    Base Rent.” 8RRPX1, § 4.3. Implicitly, all of section 4.3 deals with payments “by
    13
    See also 8RRPX1, § 27.9 (“The captions used herein are for convenience only and do not
    limit or amplify the provisions hereof.”).
    14
    The parties could have, but did not, make reference to sections 6.4 and 6.5 (“Common Area
    Costs”) in section 4.3. 8RRPX1.
    35
    20020862.20090455/2250814.1
    Tenant to Landlord” and the only reasonable reading of the section 4.3 cannot
    support Garden Ridge’s argument.
    Garden Ridge tries to bolster the argument by reference to sections 6.4 and
    8.1. See Brief, p. 10, n. 20. First, section 8.1 of the Lease deals with “Landlord’s
    Repairs” and expressly refers to the 18% interest cap “specified in Section 27.13.”
    8RRPX1, § 8.1. The case, of course, has nothing to do with any claim that Clear
    Lake failed to make some repair. Sections 6.4 (Garden Ridge’s other referenced
    section) and 6.5 do not expressly provide for interest on reimbursements and, unlike
    section 8.1, neither refers to another section of the Lease with an interest provision.
    See 8RRPX1, §§ 6.4, 6.5.
    As the Court wrote in Helmerich & Payne, “We cannot rewrite the [] Contract
    or add to its language under the guise of interpretation.” Helmerich & Payne Intern.
    Drilling Co. v. Swift Energy 
    Co., supra
    . As section 8.1 15 shows, the parties to the
    Lease clearly knew how to provide for contractual interest when that was the intent.
    By choosing not to include any such language in section 6.4 (or 6.5), there is no
    contractual basis for 18% interest on the Judgment. This Court is not permitted add
    15
    See also §§ 8.2, 13.2, 13.3, 19.3, and 27.13. Unlike section 19.3, “Landlord’s Remedies,”
    which references interest at the rate and in the manner specified section 27.13, section 19.4,
    “Tenant’s Remedies,” makes no such reference. 8RRPX1, article 19. Rather, the “Tenant’s
    Remedies” provision says, if there is a final, non-appealable judgment against Landlord, Tenant
    may recover “interest thereon as provided in said judgment.” 
    Id., § 19.4.
    If the parties intended a
    judgment for damages to accrue interest at 18%, they would have included that as one of “Tenant’s
    Remedies.” They did not; the Court may not do it for them.
    36
    20020862.20090455/2250814.1
    to the language to support Garden Ridge’s strained interpretation. Helmerich &
    
    Payne, supra
    .
    No reasonable reading of the Lease supports Garden Ridge’s argument for
    18% interest. Because there is no rate specified in the contract, interest, including
    pre–judgment interest, if any, can only be determined by section 304.003. Tex. Fin.
    Code §304.003; see Clear Lake Water Auth. v. Friendswood Dev. Co. Ltd., 
    344 S.W.3d 514
    , 525 (Tex. App.–Houston [14th Dist.] 2011, pet. denied); Meridien
    Hotels, Inc. v. LHO Financing Partnership I, L.P., 
    255 S.W.3d 807
    , 824–25 (Tex.
    App.–Dallas 2008, no pet.). That rate is currently 5%. Garden Ridge shows no basis
    for changing the trial court’s judgment.
    No pre–judgment interest is warranted.
    Garden Ridge’s “211th Day” formula is convenient but ignores the Lease
    language. The reimbursement amounts did not become “past due” as argued. Garden
    Ridge recites from section 6.4 that when the annual reconciliation statements are
    provided, “Tenant shall pay to Landlord the amount of any deficiency, or Landlord
    shall refund to Tenant the amount of any excess, as the case may be, such
    reimbursement or payment to be made within thirty days following the Tenant’s
    receipt of such statement.” 8RRPX1, section 6.4. The triggering event contemplated
    in the Lease never occurred. See 
    id. Garden Ridge
    does not cite the Court to evidence
    that any “such statement” received by Garden Ridge required a refund. 
    Id. To the
    37
    20020862.20090455/2250814.1
    contrary, Garden Ridge’s entire case is based on the claimed over charges reflected
    on serial reconciliation statements. Further, the damages award was not determined
    until 2015, six years after suit was filed, eleven years after the first, supposedly
    offending reconciliation statement was provided. For that entire period–and still–
    “there remained a serious and genuine dispute regarding ultimate liability, which
    was contested in good faith by the parties, and the amount of damages could not be
    ascertained until final judgment.” Henry v. Masson, 
    453 S.W.3d 43
    , 50 (Tex. App.–
    Houston [1st Dist.] 2014, no pet.) (citing Pickens v. Alsup, 
    568 S.W.2d 742
    , 744
    (Tex. Civ. App.–Austin 1978, writ ref’d n.r.e.)). The court in Henry concluded that
    the trial court’s decision not to award pre–judgment interest was not an abuse of
    discretion. Id.; see also Marsh v. Marsh, 
    949 S.W.2d 734
    , 744 (Tex. App.–Houston
    [14th Dist.] 1997, no writ). Garden Ridge has shown no abuse here.
    Until shortly before litigation began, Garden Ridge did not invoke its right to
    audit. The one “audit report” alleged is dated June 29, 2009, and was purportedly
    provided to Clear Lake on July 6, 2009, followed by “a formal notice of default” on
    August 11, 2009. See CR132 (Amended Petition, ¶¶ 53, 54); 8RRPX60 (“demand”
    letter). Clear Lake responded on August 28, noting its disagreement with Garden
    Ridge’s assertions but, nevertheless, tendering over $50,000.00 8cRRDX17–P. Two
    weeks later, on September 10, 2009, Garden Ridge filed suit. CR2. Although some
    form of audit was done, apparently covering at least 8 years, see, e.g., 3RR137, and
    38
    20020862.20090455/2250814.1
    apparently identifying far more than a portion of the management fee as
    reimbursable, see 8RRPX60, no “audit report” was admitted in evidence. See 2RR3–
    6; see also 8RR; 8bRR. Garden Ridge should not be permitted to rely on an audit
    that presumably sought much more than the damages in the Judgment and is not in
    evidence to serve as the supposed triggering event upon which it would bootstrap
    pre–judgment interest. See Henry v. 
    Masson, 453 S.W.3d at 50
    . The trial court did
    not abuse its discretion by declining to award pre–judgment interest. The Judgment
    should not be changed on that basis.
    Conclusion
    Garden Ridge has shown no basis to alter the Judgment. Because Garden
    Ridge is estopped or otherwise legally precluded from pursuing its claims in this
    case; because Clear Lake proved counterclaim damages of at least $5,300; and,
    because Clear Lake established its attorneys’ fees as a matter of law, the judgment
    should be reversed and judgment rendered in favor of Clear Lake for damages of at
    least $5,300 plus attorneys’ fees of at least $350,000. In the alternative, the judgment
    should be reversed and the case remanded for a new trial on Clear Lake’s attorneys’
    fees. In the further alternative, the Judgment should be reversed and remanded for a
    new trial to permit Clear Lake to present erroneously excluded evidence in support
    of its affirmative defenses. In the further alternative, the Judgment should be
    39
    20020862.20090455/2250814.1
    reversed, or at minimum modified, to eliminate all damages and related attorneys’
    fees for claims accrued before September 10, 2005.
    Respectfully submitted,
    HIRSCH & WESTHEIMER, P.C.
    By:/s/ Michael D. Conner
    Eric Lipper
    State Bar No. 12399000
    elipper@hirschwest.com
    Michael D. Conner
    State Bar No. 04688650
    mconner@hirschwest.com
    1415 Louisiana, 36th Floor
    Houston, Texas 77002
    Telephone: 713–223–5181
    Facsimile: 713–223–9319
    ATTORNEYS FOR
    APPELLEE/CROSS–APPELLANT
    CLEAR LAKE CENTER, L.P.
    40
    20020862.20090455/2250814.1
    Certificate of Compliance
    Pursuant to TEX. R. APP. P. 9.4, I hereby certify that this Clear Lake’s
    Combined Cross–Appellant’s Brief and Appellee’s Brief contains 9,578 words. This
    is a computer–generated document created in Microsoft Word, using 14–point
    typeface for all text, except for footnotes which are in 12–point typeface. In making
    this certificate of compliance, I am relying on the word count provided by the
    software used to prepare the document.
    /s/ Michael D. Conner
    Michael D. Conner
    Certificate of Service
    I hereby certify that on this 17th of December, 2015, a true and correct copy
    of the foregoing document was sent to the following counsel of record:
    Elizabeth G. Bloch
    Heidi.bloch@huschblackwell.com
    Stephen W. Lemmon
    Stephen.Lemmon@huschblackwell.com
    Bradley W. Cole
    brad@bwc–law.net
    HUSCH BLACKWELL LLP
    111 Congress Avenue, Suite 1400
    Austin, Texas 78701
    Phone: 512.472.5456
    Fax: 512.479.1101
    Via E–Service
    /s/ Michael D. Conner
    Michael D. Conner
    41
    20020862.20090455/2250814.1
    NO. 14–15–00695–CV
    IN THE FOURTEENTH COURT OF APPEALS
    HOUSTON, TEXAS
    Garden Ridge, L.P., Appellant
    V.
    Clear Lake Center, L.P., Appellee
    From the 215th District Court, Harris County, Texas
    Cause No. 2009–58038, consolidated with Cause No. 2012–46099
    Appendix
    Final Judgment signed May 19, 2015 (CR 359-61)                            Tab 1
    Charge of the Court (CR262-80)                                            Tab 2
    Shopping Center Lease (8RRPX1)                                            Tab 3
    First Amendment to Shopping Center Lease (8RRPX2)                         Tab 4
    Second Amendment to Lease (8RRPX3)                                        Tab 5
    42
    20020862.20090455/2250814.1
    Appendix
    Tab 1
    4
    &l     rglt
    CA{J8E NO. t{r09 5fi138
    c.*nirnF{ RrDcE, L.p.,                            fi           IN THE DISTRICT COIJRT
    Plnlntiif,                                  $
    $
    v,                                                    ü            IIA,RRIS COÜIITY,          TffiÅg
    $
    CLEAR LAKE CE¡ITEA{ L.P",                             H
    lnd DOES l-10,                                        $                                                  Ê_.          I{
    Ilefendrnt¡,                                   $           2l sú   il¡nrcmt rlr[¡Tarcr Ffl                     I
    Ëg             Ér   \I
    - Cl+r
    cAUSt    FrO.    r{t1t-{6t¡t9                                   ed.EË
    GARITEN RrDcF4 L.P",                                                 IH TIIE I}IËTRIST COURT             t-t tå >
    Plnlntlff,
    tst    =
    v.                                                                H.A.nAIS COUHTy, TEXAS                               I
    J
    cLEÂ,n LAKE CENTER, L.P",
    DefendanL                                      rrsffi JUIXCH,L Drsrnrcr
    FINAL JUDGMENT
    Or¡ IvIuEh 9, 2015, çsmË on to bc conride.rad the frial of this cau,ËË.   All   parties appearud
    þ     and thruugh counsel of record and announced ready fnr bial" After n juqy wm impunoled and
    Ëw$rn!      it hËetd the evidence and arguuents of cou¿scl [n rc*ponnn to thc jury chorge" lhe jury
    mads fintlingr thåt the Csurt mceived" ñled, and entercd of r¡so¡d, The Court          dsc sonsidÊrÊd the
    pnrtiern      rqqæt for declnratory relicf Having reviewÊd the verdicÇ the CÕurt             concludeg that
    judgmant should be r¡ndered in favor of tha Plaintiff, Garden Ridgs, L.P., at set forth belcw"
    IT IS TIIEREFORE, ORDERED, ADTUDGED .{ND FECR.EED, that Garden                            Ridge,
    L.P" recover ftom CIeflr l"aka Centcr,       LP. the srrtl of $594,700    (damages of $600,0CI0    minw nn
    offset of S5Jû0).
    I
    $4P8#Jir44            fcratad   damagee nw
    Åus"6û9fló69-3
    RE€mDgnErBlüß$lllfi
    lì¡ã ins|lmeil b olPoø ryaþ
    sl ttE tlmå 0t rn¡ging                                                                                         359
    '+
    I
    IT lS FURTHER ÕADERËD th*r üarden Ridge, L.P. ræaver frnm                              ClËnr Läke Ccntrr,
    L.F. i[s reasonablE and tresessary attomeys' feçs in t]¡e arnount of $350$00, logethrr with                     a
    conditional swflrd in th6 svcnttrf an ap¡leol in &s follüwing amountr;
    $?5,0Üü     ifan    appenl is taken ta thc ur:urt ofngpeal*;
    $25,0Uü for tîling or reaponding to o petition for rcview tn the Texns Suprana Court;
    $25,00û fnr filing or rerponding         1o a   brief on the nrerits to the Texas SuprõmÉ Court;
    $1û,û00 fororal argummt in the Texns Suprume Courl
    IT IS FURTHE& OïÞERED tl¡at sll                    costc   of   qÕurt ar€ adjudged agninat Clear Lakc
    Center, L.F.,   fCIr   atl çf whl:ch stesution rhell lssus.
    IT IS TURTHER ÛRI}ERED, ADJUDGED AHF NECNEED                                   ÛrAt   aII Imou¡rtg nwarded
    in this Judgment shnll beûr post-judgm€nt interest at tho rate cfSåLåB* perrent (fr oo'¿l po
    annrm from tlre date folluwing thir judgmenç until this judgment is paid in full, fnr all sf which
    sxecutian shall issue.
    ff IS FIIRTHER OR.ÐËRED" ADruDÕED.4ND                            Dã'CREED, ns dectaral,ory relie.{ that
    rvhile the Lsese beh¡¡cerr thr parties allows Clenr Lake Cenler,             Lf.   tn charge * managcmtnt fee,
    that feE is limitÞd tu nums expended for tho mÊnðg€ßrõnt md mnintËnsncë                      af thr oommûn   årËa
    snd not the pmpcrty as n whole. ln addition, the Court declares thst $ardsn Rid.Bc, L.F.                    i¡ not
    cbligated undsr the Leüsc tE Fey for mnnagtmrnt fsee thst art nat rslated trl the msnagçn¿nt or
    msiilfenûffe af tfte rû¡nffüÍ¡      affi af Clrs¡   Lake Crnfe,r, cs lhåt lsrm is dsfrnnd in the Lease" and
    tbat the ilrnnrgÈmcnt fees must bÊ *o*pur"ùl. to xirnilur *hopping ecntieß in H¡rris County,
    Texac" "fhs Csurt å¡¡thsr deolares that a eanrpsrable fee, ðË dEtcrntinod by the                jury, in 3% of the
    ctfitmon arcË fftpEnEËt.
    All relief requestod in this      cuse which hüs nnthçen        expreuþ grantrd harsin is dcnied-
    2
    2An
    7
    This jndgment   i¡ finsl and   disposes af ¿ll p¿rties and clairne and is appealable.
    sIûNED   * ttr l'fl¿uy of                 M.**                  , ?015.
    J
    EL.{IHE PALMEE,
    DISTRJTT JUDT}E PRE8IDINO
    AFPROVED AS TO FTRM:
    Stephan W. tammon
    $tateBarNo, 12194500
    BmdleY rtr. Colc
    Statc BarNo. û4535980
    Husoh Blackwell LLP
    I I I Congress *dvenue, Suite    140CI
    Austin Texse 78701
    Phono; 512.472:5456
    Fax: 513.479,1Iût
    Stephen.Lammou@huschblachre ll.com
    brad@bwr-law.nct
    AlTORNtrB FORFLAINTIFF çARI}EN RIÐCE,                    L"P
    Eric Lipper
    srate BarNo" 123990Û0
    ïfhitrey Rawlinson
    St¿tn Eaf, No, 2406*655
    Hirsch and trVæfteimer F.C.
    l4l5 louida¡a, 3Ëth Floor
    Houstor¡o Te*âÉ 77CIü2
    Tclephon* 7 13.22t "9 I 62
    Facrimile: 7 13 "3-23 .91 l9
    elipper@himchwcst.cÕm
    wrawlinmn@hiræhwest.s$m
    .åTTORI{EYS FOR ÞEFENDAT\TT CLEAR L^ûI{E CENTER, L.P.
    3
    361
    Appendix
    Tab 2
    .¡
    s' Tfutr;å}
    f -[I
    DEnrcl
    Chns
    Þlrtrlct Clark
    cAusE No      2CIü9-5&û38
    Tfmt
    GARNEN RINGE, L P                                 $           TN
    $
    $
    VS                                                $             HARRISÇOLINTY,TEXÂ.S
    $
    CLËÀR L,'\KH CENT'ËR- L F                         $
    And DüHS l-lü,                                    $           ?Isth       JI.jDICtrAL I]ISTRICT
    CAUSEN0 2ü12-46t99
    ü"'q.}LÐEN RTDGE, L P                             $           rN   ïHE ÞIË]IRICT           CüLTRT TF
    $
    $
    v$                                                $             HARRIS COLIHTI.'TEXA                            S
    $
    $
    CLËÁ]T LI\.KE CIINTER" L P                        $           ?Islh       JUDICIAL I]I$TITICT
    Charge of thc Court
    L,ADIES AHD üENTT,Fh4E}.¡T ü¡T'l'¡{E JURY
    ¡tftsr the closrng argumÈnts, you   wll
    go tn the Jury rûom to decrde the ease, ânswer ülç
    queshons ftal are allachsd, and reach a verdrct Yau may drscuss ¡lre cace rvlth other ¡urors only
    when you ärB all together rn the;rrry room
    Rernernber my prËvtrlts   mstntchons Do not dwcuss thç sasc wrth anyonÊ       ÊlsË, crthcr rn
    person or by any olher rncaru   IJo not do any mdependent rnvesttgalroil nbout thc case tr eonduct
    any rcsearch Fo nol lock up any wards m drstronenes or on the Intgrnet Do not post lnformatron
    about the. casË on the Intemel Do no1 shnre any spccral kr:owledge or expenences wrth the pther
    JurCIrs fla not usq your phone or âny other elÊËkomË dçvrce dunng your dehberahûhs I'or any
    rs65tn I mll grve yüu a nu¡nber where olhem rnay conlect you tn case of an cürËrgÕnc.y ,
    Any note$ you hnve taken are for your own personal       use  You rnay lake your nctcs bsck
    mto The Sury roçrn and consult lhern dunng dchberatloffi, but dn not shcw or rcad yÕur notËË to yor.u
    fcllow lururx dunng ynur dehberill¡cmt You¡ notcs ärÊ Rnt evrdeno€ Esch of you shcuhl rely on
    your rndependent rcccllest¡on sf the evldencc and nnt be mlh¡eneed by the fact that another Jrutr
    has or has not tgken nntes
    You must leave your notes $¡rth the bml¡ff when you arc not dehberatrng The badrffwrll
    grve yüur notes tu me prompfly pller collestrng them frorn yau I wll make rrne. yüur notes ara kept
    rn a safe, åËeure locstlon and not cl$slcsed to anyone *tlter you complete your delrtrer¿hcr¡-t, the
    ba¡llff wrll calleet your notes ï/hcn you âre released åo* Ju"y duly, flre bill¡ff wrll promptly
    dcstroy your notes m that nobady can read what you wrcÎe
    fiËCOftOER 8 ilETORAJ{DUü
    rlìE lËilrunËfi Eôlf Lurt¡¡ nr¡at,h,
    at the rune c{ rrrr¿{q
    ;'* " 262
    lle.re sre   ün rnstructlan¡   f,'cr   snsçÊnng the questrnns
    I       DÕ not let bras, prelud:sc, or sympøthy play any part rn your decrsran
    2       Base your änswcrs cnly on the evtdenee adrntlted rn court $nd on thc law that rs m
    thesc msln¡ûtlans and questrcns Do not cunsrder or drse.uss nny evrdence tbat wss not adruttõd m
    the cnurtrçsm
    3          Yau are lo måke up your {:wl mutls nbout the fscts You are the sole.¡udges of the
    credrbilrty of t}re r¡ntnesses and the werght tr $ve thcr lestrmany But on m¡rtfsrs of law, you rrust
    followall of nay nslructrpns
    4       If nry mstruchons use a word ln fl wsy that ¡s dlfferent frorn lts ordrnary mfran¡ng!
    usr the rnesrung I grve ytu, r,rrhtch u'll! bn ü prÐpËr legal defirutron
    5       4,1 the ques$on$ aüd answsr$ are rfliprlrtÊnt           Nr rne $hruld   $åy thal any qu€shCIn   ûr
    ãnswsr rs not rmpartant
    6        .4,¡swer*yes" of "¡1t" tc         ø11qucsttuns uilcss you årc told othcrwrse  *'yesn'rìnslver
    nrust bs based sn fl FrÊFûnde¡anr:e of            the evdenÊe unle$s yur rrÊ told otherwse Whensycr n
    ques[ron r€quucs an ansrv€r olher than ']Ës" or "non" your ansrrter mu$ bË based                         nn    a
    preponde.rnnæ of the evrdence unlesx you flrE told othen¡vrse
    'lhc tsm     o'prcponderançe
    of The evldencc" m$ãns the gruater welght. of
    crsdrtrle erndence presented rn thrs cåse ll'you do not find that a preponderance of
    the eyldsnc.c supports il ')es" enswer, then answer *ho            "
    A prcpondËmnce of thç
    cvrdeircs rc not measuflDd by thc number of wrtnesses or by the number of
    dosurnents adrnrfled m evlden{:s For a fact to be proved by a prepandemnce ofthe
    evrdence, yoi¡ mu$t ñnd flut the fncr ß nrCIrÈ hkely true lhan nCIt true
    7     Do not dcclde who you tbrnk shor¡ld çrn before yru ilffiwer the quesnCIns snd then
    ;ust answer lhe questronÊ tü m¡tch your dc"crsron .Answer ench questron eareñ¡lly wrnhout
    eonsrdenng who wll wrn IJo nol drscuss nr cons¡der the effect yüur ens\ryËrs vrrll har'Ë
    I       Do not answer queshons by druwrng strålus or by any method of chance
    I       Some qtrçs!ûns rnrght a"sk you for a dollff ¿mouRt Í]o not ãgrïc ill advanee to
    deçrdc ou a dollar amo¡mt by nddrng up earh¡uror's srnount snd then figunng the average
    [ü                                                        ool
    Do not hnde yfiur'&n.qwers For *xarnple" do nnt såS, w¡ll an$trer t]us questrnn
    yru¡ wsy rfyou anslrygr anofhcr questron my way "
    l   l   Unle¡s $therwse mstructed, thg answers to the questrons musl be hilEsri on fhe
    decrsron of nt least lü of the 1l ¡urors The snmr 10.¡untrs must agree.on cvËry ânswÊr Dn nnt
    agree to be bound by a vole af anl*lung less than 10.¡urors, even rf ¡t would be a mq¡onty
    Z
    263
    As I have sald befb¡e, rl'yuu do not follow thme rustruchons, you wrll be gudty cf .¡uror
    mlseonduct, and I mrght have ta srder a new lrral s¡rd start thu process ovËr agâln Thrs would
    wÊEt€ your lrnre and thg pafires' mÕneJ¡, and would ruqu¡re the tatpayers sf tlus county 1o pay frnr
    a¡rothEr tnal If n Sumr breaks any of thcec ruleq tell thst prrson to slnp and report tt to me
    tmmedrately
    Prendrng Juror
    1      Wben you go rntn the 1r-u7 roorn to nnslryer lhe quesfions, thç first tlung yau wrll
    nred   tCI   do ß choosc a presrdrng.¡uror
    2      The presrdrngJuflìr has these dutres
    íl       lrave the complete charge rcad aloud             rf rt wll be helpful tû your
    dehtrerat¡üns,
    b         presrde rvËr ytur dchbtrat¡gns, meilung manûge the dtscu*stnns, and see
    that you follarv fhese rnslruüUün$,
    t        grve lvntten queshons or uommenln to ths barhff r,r'hn wrll grve them t$ the
    ¡udge,
    d        wnte down the answers you ffgrçE $n,
    Ë        gei The slgnalurÉ$ fir the vsrdrct eerhfifåte, and
    f         nrnry úe barldf thtt ytu h¡rvç rÊaehed a verdlct
    Do yau ur¡derstnnd th¡ duhes of the presrdrng¡uror? If yc¡u ds nol, please tell mc nolr
    lnstructtuns for Srgtrng the Yrrdre I Crrhficnùe
    1 Unless otherwt$e mstructed, you måy answrr the questrons on a vote af lü;urors
    Tlie sqmc 1ü lurnrs must ügrËe on svsry answsr ln the cha¡ge Thls means you måy not hsve one
    group af lO¡urnrs ûgree on ûne &nswer and a dllhrçnt grnup of l0¡urors ûgrue on nnotlter íinsrvsr
    ?      lf   10 .¡urors âgrss   rn wery   ans1vËr, ttrose   l0 Juror$ ergn the verdtel   If I I ¡won
    sgree on evet1 &nswerf those 11 lurrrs srgn the verdlct If all 1? uf you flgtue rln Bvcry ¡utswerr you
    sre unsn:fitous and only the presrdrng¡uror Ëtgit$ lhç verdlct
    3      All;urors should dehberatc oü every queslron You may end up wrtlr ull              1? of you
    flgrcËrng on s{!ne ånsrry&rs: whlle anly 10 or I i of you sgree on other an$wÊffi Ëlul wlien yCIu $tgll
    the verdrct" only those 1ü rryho ågrËc ün svsty rinliwer wrll srgn the verdlct
    Dn you rmderstand tlresf urstructtons? llyou do not, plcese tcll me rrsrv
    FRESIDîHT
    J
    264
    DE   FITìIITIONS A}ID INSTftUCTIONS
    In.qtru*t¡nns
    In nnswenng queetronn abûut damages, answer each questron separately Do not rnerËnse
    or redncc thg amount rn nne ãnslyer beeause of the rnstmctrong ln or your ilnswsr; to any other
    quËstrons about damages lJo not speculate about rvhat any perty's ultrmate reffrvery rnäy or
    may nct be Åny recovery wrll be determlned by lhc court lvhen rt apphes the law to your
    ånswcrs at the trme afSudgment r
    Bur*len of proof rs thr Plnrntlfi{s}'s responsrbrlrty to   prrc   the truth of thelr elarm{s} agrunst the
    Dcfendant by a Preponderance ofthe evrdençø
    Defin¡tlonr
    Caprtalncd tsrms rneludcel rn queshons have the same rnsflnmg as m the lease
    You are rnstructer{ that the "Le&g€" mÊån$ the "Shopplng Center LËãseoo' the
    "Flr$t Amcntlmenl tü [,Êirse," and the "Seçond AmendrnEnt to Lease n'
    1tr/alver rs an rntent¡onal su¡render of n knowl rrght or ¡ntentronal condu¡:t
    rncûrrs*tent wrth clarmrng the rrght
    The followtng f,aclerrs may be consldered rn determmrng the reasonsbleness of
    an attnniey's fee award
    a    the tune and labor lnvolved, the novelty and drffreulty of lhe questrons
    rnvolved, and the skrll requred to perform the legal servlces properly,
    b   the Nrkehhood that the acceptance of the partrcular empl"oyment wlll
    preclude other employment by the lnwysr,
    c   the fee custsmanly chargcd rn the localrty for srmrlar legal servlces,
    d   the nmnunt mvolved and the results obtruned,
    s   the trme lrrnltåbons rmposôd by the cl¡ent or thc clrcuntstaRces,
    f   the nature and length af the prolbssronal relatronshrp rr¡th the chent
    E   the expenence, rcputåtron, and *bllrty of the lewyer or lauryers performrng
    the servrces, and
    h   rvhether the fee ls fìxed or eontrngent on results obtarnecl or uneertunly     of
    colles,üon before the legal servress have been rendered
    4
    265
    OTIE*TION FTO   I
    Ðrd Clear Lake Ccntar f¡¡l to comply ï/rth thÊ Lesss by dorng any of tlre fullowrng?
    Chnrgmg tardeir fudge Common A¡en Costs for the costs fCIr anythrng othcr than
    Comrnon           as defined rn the Lease
    '{rsa
    AgE$¡Br "Yegto or     "NÐ"
    AnswEr          útç
    t-
    5
    266
    If your answer to þsstron No I ¡s "Yes," thçn answer thg followlng quesüon Othcnvrsc, do
    not answer the fsllswrng quÊ$tmn
    TUESTION NO 2
    Was Clear Lakç Çenter's *brlrue to conrply e*eused?
    Fzulu¡e to comply by Çlear I,ake Ccutcr ¡r sxcu*ed rf comphance rs warved try
    Garelen Rrdge lffarver rs an rntentronal surrender of a hnown nght or
    rntenhonal ccnduct rnçono¡stÆnt w¡th clarmlng the rrght
    Farlure to cornply by tlear Lake tenter rs exc¡r*ed rf the partre* agreed that a
    nerv âgreement wculd talte rts placer [n decrdrng whether the ¡rarhes reachetl an
    agreement, yoü $rs¡¡ consrder what they sard and drd m hght of the surroundmg
    errçum¡tanees, rncludrng ã,ny e¿rher cûurrË of deahng You may not consrder the
    parhes' unexpreesed thoughte or rntentrtng
    F¿rlure to cornply by Clear Lake Center rs exrusÊd rf a drflerent perlor mance
    was aceepted a* full sabsfactlon of pelformance af the orrgrnal obhgatrons of the
    ågr€ement I
    Failure     to comply by tlear Lake Center re exeused rf the followrng
    crcuffÁtanees occurred
    t   Garden Frdge
    a    By words or conduct made a f'alse nepre*entailon sr        concealed
    sraterlal facts, and
    b    Vfrth knawledgt of the facts or wlth knowledge or tnfbrmat¡on
    that wnuld lend o reaaonsble per$on ts dlsctver the faets, mrd
    c    \Mrth the ¡¡tent¡on tltat Clear Lake Center wauld rely on the lalse
    repreÉentåt¡on or concealment u actrng or decrdtng not to act
    and
    g    Clear l¿ke Center
    å    Drd not know and hnd nt ürËan$ of knormng the real facts and
    b    fi.ehed to rt.s detrrment ün tJre falce representabon sr ¿r:neealment
    sf msterral f;¡cts
    A¡gwer *YÊs" or *No"
    Ànstver        frJP
    6
    267
    If   your arswer to Queshon No 1 rs o'Yesn" *1Ën mswer the followrng quesüon
    ütherwrse, do not an$wer the followurg questron
    o{IE$TrqN Nq 3
    Is Guden Rrdge estopped from cornplarnrng of Clear Lake Center's fallure to   complf
    To find estoppel, you must find that Garden Rrdge took sorne voluntary actlon
    cûnrÉrlung the management fae on whrch Clear Lake Ccriter rehed m güod fnrth,
    whrch led Clear Lake tenter to change the posrtron * held pnor to such aclron, to
    Its dstnmcnt end thåt to now allow Garden Rrdge to ehnllengs 1þs msnagement
    fee would be connary to üs rruhfll actron, and would result m harm to Ëlear Lake
    Centçr
    Angwer r¡Ye$r' (lr
    ttHot'
    Answer         ¡,)
    p
    7
    268
    If yaur ånswer to Questron No I ls o'Ye$," and your ånsì¡rÊr ûo both Questron Nos 2 a¡rd
    3   ls'tilon" thsn answer the followrng questron ttherwrne,   dCI not.   an$wsr the followrng questron
    OI]ESTI      NO4
    of money, tf any, rf pard nolv m cash, would fatrly and reasonnbly cornpenseæ
    trVhat sum
    üarden Rrdge for rts darnageso rf any, that resulted flum su{:h fallure to ccmply?
    Consrder thr followrng slement of damages, rf any, and none other
    The amount pard by üardcn fudge" rf any. for sums expended
    by Clear Lakç Ëçnter rn      manågtng somethrng other than the
    Comrnon A¡ea" or amount pard by tarden lüdge for sums
    expended by Clear Lake Ccnter m manågng the Commun A¡e*r
    that are not comparablc ts sr¡rns ËxpÊnded m rnürlsgrng Cnmrnon
    Afleås af srmllar shopprng csnlers rn Hams County, Texas
    Do not add any amqutÎ for lnterest on damages, rf *ny
    Answer separately rn dçllars and cents, rf any
    For calendar year 2üû5
    Answer           $     7&n    noo
    For c.alendar ycar 2üt6
    "¡trnswcr        $             ap
    Fcr c¿lendar yeer ?tlt7
    An$trçr $              {o4,   BP ø
    For calendnr ycar 2{}tS
    ..{,nswer fijâ*ßæ*
    For calendar yeer 2t09
    Answçr           $ fi t&ç
    T¡or cslendar yeer    3tlû
    Answer           $             þëp
    For ealendar year 2ü13
    Answer           $             0Ft
    I
    269
    For calendnr year 2ü14
    Answer        $ 8L,nnþ
    I
    I
    270
    ouEsrIOFI N0      T
    Tfhât rs fl reasonable fee far the nÊÊËssåry scrvlres rncuned by Õarden Rrdge, rf anyo for
    rts atlorneys rn th$ casel
    ^Answer separately    n dollars mrd cents, rf any
    F*r prrpar*tron    sÃrd   tnal
    .Ans\¡$er         $                            ,ÛÕ
    If   an appeal rs hke,n   tCI   ths Court of Appeals
    Answer            $
    For fikng or respandrng lo a peätron for rsvrerv tp the Texas Suprerne Court
    Answcr            $        â.5"          û7P
    I
    For filrng or respondmg          tCI a   bnef on the menfs to thË Texas Supreme CCIurt
    Answer            $
    For appeanng to make oral argument$ åt the Texas Suprcme Court
    Answer            $             lþ, þtTt
    I
    10
    271
    OUESTION     NO       6
    Dld (iard*n Rrdgc farl to comply wrth the tease?
    onYes"
    Answg¡             0f "No"
    .4nswer       ¡.fp
    ll
    272
    If you answrred o'YÊs" to Questron No   6 then answer the followtng questron Othe.rwme, dq not
    an*u¡Er the   followrng questron
    çTIESTTOF{   Nü   _?
    Was   tarden Rrdge's fadure to comply ertcused?
    F*rlure to comply by tarden Rrdge rs excussd by Clear Lake's prËvlûus fmltlre [o
    courply wrtb a matenal obhgahon of,the same agreernent
    Fallmr to cornply by Garden Rrdge rs excus€d rf comphance ls'*verved by Clear Lakc
    \túarver rs ân mtentronnl rehnqulshmÊnt of a known nght or rnteirhonal conduct
    ulcCIRsl$tent wlth clalmrng the nght
    Fmlure to comply wrth onc agleernent rs excusðd       rf the parttes agreed that a new
    agrnement would take rts place
    Fadure to comply wth an agreement rs excussd lf a d¡fferent perfonnüRtç 1ilå"5 acccpted
    as full saüsfaetron of performance of the onglnal obhgatrons of the agrtement
    .Ànrwer *{YÊs" or'rF{o tt
    ,4.n¡wer
    12
    273
    Ifyour änstvÈr to Questlon Ì'-Io 6 rs 'oYÊs," ffid your answÊ¡ to Questron ?tlo 7 ts "No,'n
    lhcn answer tirc fcllcwrng quesbon Otherwrsc, ds not åru¡$rÊr the followrng quÊsûûn
    0Ir_Et:rIqF Nç      8-,
    1[/hat sum of msneyn rf any, rf pard now m eash, would falrly and rea$onably eompensate
    Clesr Lakc Centcr fcr rls damages, rf any, that rezulted from such farlure to comply?
    Constder the follnwlng elemcnt of damages, rf any, and none other
    The ¿mount not pard by Garden lfudge, rf any, for sums
    expendcd by Cle*r Leke CenùÊr ln managmg the Cornrnon.A.rca
    Ils not add any arnount for mterest   on damages, rf any
    Ansrvel separately m dolla$ and csflts, rf any
    For calendar year ?01   1
    Answer         $
    For calcndar year 2û1?
    Answe¡          $
    13
    274
    orsEË:nqgllg         e
    lVhst   $   a rreåsonahle fee for the Træessary serwc.€E of Clear Lake Center's attorneys rn
    thrs cese?
    Answer sË.perstËly tn dnllars and centso rf any
    For preparaflpn and trral
    Answer ü                   t
    If   an appeal ts tsken to the Court of Appeals
    Answer            $        o
    For fihng or respondrng to a petrüon for ret:ew      tCI   the Texas Supreme Court
    Answer $                   t
    For fillng or respondrng to a bnef on the ments to the Tcxas Supreme Court
    Ansurer $                  t
    For appeanng to make oral atguments at the Texa$ $upreme Court
    A¡swer $                    t
    t4
    275
    OUESTIONNO        10
    Þrd Clear Lake Centcr obtmn or ret*n monÊy from Garden Rrdge that rn squty a¡d good
    com¡c¿ËnÊË belongs to *CIrdEn Rrdge?
    AnswÉr "Ygso or "Noo'
    Ansqør
    l5
    276
    If   your answ€r fo Questron    No l0 ts **Yes," then ån$wçr fhe followlng questlon
    Otherwrse, do not åns$,er the followlng quÊsflon
    OTIESTIO     Fto   11
    trVhat cum of monÊ'$, tf any, rf pard nrlw rn cash, would farly and res$onåbly compensate
    üarden Rrdge fsr lts damages, rf any, that reaulted lþom such actron?
    Csn$dÊr the followrng element of dnrnages, rf any, and none sther
    The amounl of money, rf any, that Clca¡ Lake Center obtarned
    or retamed from tarden fudge that rn equrty end good ronsüenoË
    belonga to Garden Rrdge
    Do not add any amount for mterest on damages, rf nny
    Answer separately rn dollers arrd cents, rf any
    For calcndar year 20ü5
    Answer          $           ü
    For calendar year ?006
    Answcr          $           0
    For calcr¡dar year 2ü07
    Ancwer          $           ü
    For calendar year   20CI8
    Answer          $
    fr
    For c¿lendar year ?û09
    Answer          $           Ð
    t
    For cslendar year 2010
    A¡swer          S
    For calendar ye*r 2013
    Answer          S
    ü
    For cfllendär year 2014
    Anst¡fer        t
    fr
    16
    277
    ÛIJEüTIOI,{   Ë0   rz
    D¡d tardcn &rdge obtarn or rçtarn mûney from Clear Lakc Ccnter that rn Ëqilty and good
    consmËncç belongs to Cles¡ Lake Centsr'¡
    Answgr'oYgs* ûf 'rNt?r
    Answer
    t?
    278
    ¡
    If yurr ¡mswcr                No   *Tss," flld your ãnsi{rçr to
    lt
    1o Queshon             rs                      Questrorr No 12 $ "No,*
    then ansu¡er the followrng qu€stlon Õthenmsç, do not ånswçr the fblloçrng questron
    OUE$TION      NO   13
    Vfhat sum of money, rf flny, rf pard nû\ry m cash, would farly and res$onably compeirsate
    Clear Lake Center for ltg damages, rf any, that resulted from suçh ffihon?
    Consrdcr the fCIllowftg €l€ment of damages, rf ffty, and nons other
    Thç amount of money, lf nny, thqt Gacdcn fudge obtsrnÊd ar
    re,tarnod ftom Cleff l¿kç Ccnter thût rR e$nty ãnd goed
    c,cnscrËnÊË belongs tp Clsâf Lake Center
    Da not add any åmoilnt fsr tntuçst ûn dnrnågÊs, lf nny
    For calcndår year ?ü11
    Answsr S*-â{p*Ð-
    For calcndar year 2012
    .Ans\iler      $    Årt
    1t
    279
    Verdtct Cerhlicate
    "o-y"
    tur         rs unânlmous     Alt I2 of us hsvc agreed to each nrid *very fft$wÊr
    The          J     has         the            for all   l!   of us
    l
    sf PÍEsrdmg Juror                    Pnnted Name of Fresrdmg Juror
    Our verdl*t ß not Ênflnuru)us Eleven of us havo agreed to each nnd every ans!¡rËr
    and hsve srgned thc cerhficate below
    Õu¡ yer*ct ts not untmrnüus Ten of us have agreed to each and eveiy answÊr
    rurd have srgned the certrficate below
    SIGNATURE                                        T{AME PRI}TTED
    T
    2
    1
    4
    5
    6
    7
    s
    I
    l0
    l1
    19
    280
    Appendix
    Tab 3
    li'l:!¿
    gãoPPI¡lo CENIER       IJBAaE
    This Lease ls entered into as of the 29th                          day    of
    December             , 1-995, by and betr¡een the Landlord and the                           Tenant
    hereinafter             named.
    ÀRTTCLE   I.
    Seçtion 1.1.  Fundamentq] Lease provisions.
    (a) ILÀ,NDLORDI: FiesÈa Uart, Inc., a Texas corporation
    (b)   LANDLORD,S ADÐRESS:        b235 Katy Frêeway
    Houston, texas 77Oo7
    (c)   rTENA¡¡Til: Garden  nidge, L.p, ,                  a Texas lirnit.ed
    partnership
    (d)   TANANTTS   å,DDRESS: 19411 Àtrlum placê, Suite j.?0
    Houston, ?êxas 77O94
    (e)   IENANT,S TRÀDENÀüE! Gãrden Ridge
    (f) ilDEMISED pREtfIgESr: Approxinately l5Ot757 ôguare
    feet in area belng a portion of the shopping center coromonly linolrn
    aË Nasa value center constructed on the real property described in
    Exhibit rÃ.[ attached hereto, the Denised prenisås           so s
    called) being situated subståntial1y in Èhe i.ocatlon1ñereín
    which is shonn
    outlined in red on the plat att,ached hereto as Exhibit ilBil, The
    tarm rrshÐpping Centerrr, as used herein, shalL refer to the real
    property described in Exhibit ÍÀr and any existing and future
    buj-ldings, parking areas, sidewalks, service areal and other
    inprovernents thereon.
    (S)   LEÀSE   TER!î:    Commencing      on the IC1osing Datêr             as
    such term is defined and deter¡rined under the term6 of that, certäih
    Àsset Purchase Agreênent dated as of Decenber az, 1.995 bet\¡¡een
    Tenant, as Purchaser, and Pot,t,êry Mart, Inc., as Seller, but in no
    evenù lâter than April L, 1996 (the rcommensenent Dateil), and
    contínuing for twenty (20) years thereafter.
    (h) BÀS8 RENÏÀL: $975,00O.00 for the first ten yeârs of
    the Lêase Term, payabre in nonthly inst,allments of 9s1,2so.00 each.
    After the first ten years of the Lease Term, Basê Rental shal"I be
    adjusted on each five year anni"versary of the commêncenênt Ðate
    (the ttÀdJustnent D_at.ett) .throughout the Lêase Tern (including any
    Ext.ension Periods for rvhich    the ExtenEion option is exercised unaei
    Àrt.icle XXIII hereof). !'or the five year period commencing upön
    each Àdjustrnent Date, Base Rêntal shall be equal to the piodüct
    obtained by nultiplying (x) the Base Rental in effect during the
    preceding calendar ¡nonth (therrDetêrninâtion trtonthr) by (y) a
    fraction, the nu¡nêrator of r¡hich shall be the ¡nost current-Refised
    cohsuner Price rndex (all cities - urban wåge Earnérs and clerícal
    workers, U.S. city Average, A.1"1 ftêns) of the Burear¡ of Labor
    statistics of the unlted staÈes Department of Labor (19g2 to L9g4
    * 100) the (rtcPrt') for the Deter¡ninat,i-on Month  ànd the denorninator
    of which shalr be the cPr for the first caLendar ¡nonth of the Leäse
    lerm in the case of the first adjustnent of Base Rênta1 and for the
    calendar nônth sixty nonths prior to the Deternination Month i-n the
    case of each subsequent adjustment,. Base RentaL shall never
    decrease and i-ncreases in Base Rentar based upon increases in the
    cPr shalt be cumulative; provided, however, thät the first increase
    in Base Rental following .the first ten years of the Lease Tern
    shall not exceed t!¡enty percen! (a0*), and. no single increase
    F:1l9ts/ ¡ôt4.,^sÉ:                                                                 PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    oo0904
    :ilü"
    thereafter for any five year period shalI exceed ten percent. (10t),
    (i) colfMoN ÀREÀ MÀINTENANCE CHÀRGE: Tenantfs share
    {herelnafter defined), esti¡nated to be g9o,o00.oo for t,he first
    year of the Lease Term, payable in egual nonthly install¡nants of
    $7,500.Oo each, subJect to adjustment as provided in Section 6.4
    (j) TÀxgs: Tênant,rs Share, estinated to be g12g,ooo.0o
    for the firsÈ year of the Lease Term, payable in the manner
    provided in Sect.ion 18.2.
    (k) INSURANCE: Tênant,s Shåre, estimated to be
    $13,500.oo for the first yeâr of the Lease Tern, payable in equal
    nenthl-y installnents of 51,125.00 eäch, subject to adjusturenC as
    provided in sêct.ion 18.4.
    {1i TENÃNT.S SI{ÀRE: Àç used in this Leasê Agrêênent,
    Tenant's shðre of common Area Maintenancê charges, TaxeÉr, insurance
    and any other amounts payable under the terms hereof shall mean
    37.24\ of the tot.al amount óf all such charges and amounts. In the
    event any additional buildings, or additions to existing buíldings
    in the Shopping Center/ are added to the Shopping centei, Tenantis
    share of Common Àrea Maintenãnce Charges, Taxes, Insurance ¡rnd åny
    other alïounts payâble under the ter¡ns hereof shalL be equitably
    adjusted.
    (¡n) PREPÀTD RENTAL: gg9r975,O0, inelusive of (i) aase
    Renta1 for the first ¡nonth of the Lêasê ferrn, pl-us (ii) fenant t s
    Share of conmon Àrea Maintenancê Chargês and Insurance for the
    first dronth of the Leasê Tern.
    (n) PERilITTAD USE: The Dgnised preÍ¡isea shaÌl þe used
    f,or the pTlpose of operating therein a retail store selling silk
    and dried flowersr. non-electric housewares, sêasonal goods (hóliday
    decorat,ion and trim), party supplies, ho¡ne decor and accessoriesl
    baskets, cänd1es, pot,tery, (decoraÈive and funetional) cråfts and
    pictures and picture frames (the I'Prirnary Pernitled Merchandiser).
    In addition, Tenant nay se11 such other nershandise rvhich is
    offerêd for sale in a najorÍty of renant¿s other sÈores provlded
    the sale of such merchandi.se does not, confliet vi.th or violate any
    !g?l    prof¡iþit.ion or restrictlon described in clauses (i) througñ
    (iii) in¡nediately berov in effect at the tine such ¡nerchandise is
    offered for sale in thê Dênisêd prenises. After the flrst five
    years of fhê Lêa6e Ter¡n, except as otherwise provided in this
    L€aÊe, the Demised Prernises nay also þe used for any other 1awful
    retail purpose which is not ín conftict rvíÈh (i) the prinrary use of
    any other tenantrs leased prenises in Èhe Shopping Center at the
    time of a proposed change in Tenantrs use of the Dêtnised premises
    and (Íi) any exclusíve use provision contalned in any leaee
    covering other space in the Shopplng eenter in effect aJ of the
    date of a proposed clrange in Tenant's use of the Dernised prenises
    and (iii) any prohibition or restriction contained in that cert,ain
    Cónstruction and Reciprocal Easêment, Agreenent (Èhe rRFtA'r) dated
    Ðêcember 2, L986, bêtwèen Landlord and Wal-l¡tart properties, Inc.,
    recordêd under Harris County clerkts File No. Kg6zogT (without
    amendmenù unless approved by Tenant) or any other restriction of
    record against Èhe Denised prenises or the Shopping center a6 of
    the daÈe of this Lease. rn addition, the Ðe¡nièed Þre¡nises shalt
    not be used for åny purpose which ls i.nconsist,ent with the
    operatÍon of a first cl"ass retail shopping center or for any of the
    following pr¡rposês eollectively, the rtprohibited Uses'r), til ä
    second-hand or sample store, (ii) a surplus store, (iii)       a bar,
    pub, nightclub, music hâI1 or disco, (iv) a bowling alley, tbeater,
    billiärd or bì.ngo parJor or other si¡¡ilar entertainnent purpose,
    (v) . a flea Ìnarket, (vi) a massage parlor, {vii) a funerãl home,
    (viii) the såle of paraphernalia for use with i1legal drugs, (ixj
    t,hc i1legal display of pornographic ¡¡aterial, (xi an off-tract
    bêtting parlor, (xi) any use which is illegal, (xii) a banquet
    hal1, auditorium or other place of public or private assern5ly,
    (xiii) a training or educational facility         lincluding, r,rithout
    Pìit.99Ìl 6,14.1.Str               2                     PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    oo0905
    i:'.
    t.r.,i
    limi.tation, a beauty school, barber college, reading roon, school
    or other facility catering prinarily to students or t,laineee rather
    than customers) or (xiv) a glnmnasiun..sport or health club or spa.
    In addition, êxcept as expreësly pernitted above, Tenant shaLl not
    sell or offer for sale in the De¡nised premises groceries, neats,
    produce, _ drugs, sundries and other foods or food productå
    customarj"ly sold from ti¡ne to tine in a grocery store or
    supennarket. LandLord recognizes that renântrs customãry bueinees
    includes the operation of a prepared food service facility,      and
    Landlord hereby approves the same.
    Landlord hereby agrees Èhat. it shalL not lêase any portion of
    the shoppÍng center for the purpose of conducting any Þrohibited
    Use nor shall it permít the use of . any portion of the Shopping
    Center for any Prohibited Use.
    Seetion 1. Z. Ef fe-.c-_ç of Reference to Fundanental lJease
    provisions. Each of the foregoing         definitions aña- ruñaãñãilãr
    lçase provisions sha1l bê construed in conjunction with and li¡nited
    by the references thereto in the other provisions of this Lêase.
    ARTTCLE IT.
    Sect,ion 2.1.   Demised preJmises and Term. In consider-
    at.ion of the obligation of renånt to päy rent Àt hereln provided
    and in consideration of the ot,her terms, covenants and conditions
    hereof, Landlord hereby demises and reases to Tenant, and renant
    hereby takeõ from Landrord, the Dernised premises as described in
    section 1'1(f). To HÀvE ÀND To HOLD the Denrised premÍsas for the
    Leåse Term specified in section 1.1(s), arl upon the terns and
    cÕnditions sêt forth in this Lease. Landrord fùrther agrees that.
    if Tenanl shalt perforro all of the covenants and agreeneñts herein
    required to be performed by Tenant, Tenant shall, subject to the
    terms of this Lêase, at all tl¡res during the continuance of this
    Lease have peaceful and quiet. possesslorr of the Denised premi.ses.
    There is specifically excluded frou the De¡nised premises and
    reserved unto Landlord, holrever, the air space over and above and
    the subsurface below the Þe¡nieed prenises and. tbe shopping center.
    Landlord further rêserves the use of the exterior walii anã roof of
    the De¡nised Pre¡rise.s and t,he right to insta1l, naintain, use,
    repair and replace pipes, ducts, conduits and wires 3-eading tnrougå
    the Dêmlsed Prenises.and servlng other parts of the shopping centãr
    in locations which will not mat,erially interfere with renantrs use
    thereof
    ARTTCLE   1II.
    . qsrction
    occupying
    Acçeptanqp_ of Denised pre¡qiFelå. By
    ¡.r. Prenises,
    the Demised             Tenant shall be ãeened to havä
    accepted the same in its existing condition. îenanÈ rrarrants to
    Landlord that it. has, prior to the execution hereof, futly
    inspected the Demi"sed Premises and that it has nade, perfornedl
    obtained and received aII.studies, inspectiong, reporÈs,-diagnoseå
    ând tests that Tenant desires relative to the Demised prenisãs and
    Tenant's proposed business use of the Þernised premises. tenant
    underst.ands and agrees that it is accepting the De¡nised premises in
    its present rrAS-ISil, TTWHERE-ISI conditlbn, ilWITH ALL FÀULTSr.
    lenanl acknowledges that Landlord has not ¡nade and does not rnake,
    and Landlord hereby disclairns, any and all warrantles, exprêss or
    implied, which in any way relate to the Denised prernises or the
    condition thereof, including, without, tinitat,ion, êily irnplied
    warranty of suÍtabili.ty      or habitabili.ty.     Tenan{ further
    understands that Landlord has reried upon Tenant's having ¡rade a1l_
    inspections Tenant desires prior to lèasing the DemÍeed prenises
    from Landlord, and that, but for such inspect,ions by Tenant,
    Landlord wor¡]d not have leased the Þe¡¡ised pre¡riçes to Tenant.
    Tenânt waives and relinquishes any right Èo assert, either as a
    clain or as a defense, that Landloid is- bound t.o periorm or tiable
    for thê non-perfor$ancê of any irnplied covenant oi irnpliea duty of
    Landl"ord not expressly set forth herein. Nothing in this seciion
    ¡'j"l.Ð?Iôtl.t-sË                 3
    PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    o00906
    ..fììi:r.
    i:.¡ür¡
    -r:.x:
    shall opêrate and relieve Landlord fron it,s obllgations undêr this
    Lease for repair and ¡rai.ntenance to the extent provided for in
    Article VIII below.
    Section 3.2. Tênånþ_'_ç Work. Tenant, at its sole cost,
    , and expense,
    risk              shall perform alI qrork (rtTenant's Workrr) requireå
    to prac€ thè Denised Fremises in the condition neeessary fór the
    conduct of renant,'s business, substantialty in accordãnce with
    plans and specificatione (rrtenant's plansr) subnitted tó and
    approved by Lândlord, which approval shalt not be unreasonably
    withheld or delayed. Landlord hereby approves, without thä
    neeessity of recei.ving plans theref or,- Tenant, s i.nit,ial
    installation of fixtures and non*struct,urâl demisinq walls (for
    office purposes) and repainting of the interior of the Ðer¡ised
    premises so long as the same åre substantÌa11y equivalent to
    Tanånt's store located at ?he Meadows in southern Harri.s countyr
    Têxas. with regard to any other inprovementef Tenant sha1l sub¡niå
    Tenå¡1t's PLans to Landlord for approval and Landrord shalL approve
    or disapprove Tenant's plâns within five (5) þusiness- days
    following Èheir subnrission to LandLord. rf Landlord faiLs io
    fpprove  or disapprove Tenant's plans wÍthin such five (5) business
    day perlod, Landlord shall be deemed to have approved Tenant,rs
    Flans. Tenant shall also provide and instarl al1 other interi.or
    work, trade fixtures, furniture, furnishings and equipment of every
    deecriptlon neceÊsary or appropriate for the operatiðn of renant,'å
    businese in the Demised Premises. upon approval of rênant's plans,
    no changes sha11 be made therein without l¡andlordrs prror vritten
    åpprova1. ?ênant shal1 and does hereby indennify and hold
    Landlord, its agents and enployees, hatrmless fron and against any
    and all clains-, denands, suite and causes of action for-injury tå
    person or death and for_damage to property, including propert| of
    r,andlord, arising out of or in any way connected witñ Lr¡e^perlor-
    mancê of Tenantrs t^¡ork and the act,ivities of Tênant {nd its
    cont,ractors in the Denised pre¡nises. Àt all times whíIe            is
    perforning Tenant's work and inst,alling its traãe Tênänt     fÍxtures,
    equipment, furniture and furnishings, Tenant shât1 not unreasönaþly
    interfere with the conduet of business in the shopping centerl
    Tênant shall conply wlth such reguegts of r,andlorå-as Landl"ord
    might make for the purpose of avoiding such int,erference. Tenant
    shalr maintain the De¡nised prenises in a clean and orderly
    condition during the perfornance of Tenant,s l{ork and shalr
    pronptly rernove all unused conetruction maÈerials, equipnrent,
    shipping eontainers, packaging, debris and flanmable waste-frôn the
    Demised Pre¡nises and shall not allolr any such rvaste and debris to
    be placed upon or accuraulate in the coìnnon Àrêas. common Areãs
    shal1 not be used by Tenant for thè storage of equipment,
    Ínventory, fixtures, fefuse or debris. Tenanúrs work shall be
    subject, at all tirnes, to the general inspection and approval. of
    Landlord or LandLord's architect. I{iÈh respect to any conÈract for
    thè furnishing of labor or naterÍals for the pérformance of
    Tenant,'s llork, Tenant acts as a principal and not, ãs the agent of
    Lairdlord. Tenànt sha1l hâve no authority to place any llèn upon
    the Denised Prenises or any interest therein nol in any wêy to bind
    Landlord, and any attempt 1o do so shatl be void and ár nó effect.
    If, because of any-actual or alleged act or o¡rission of Tenant, any
    lien, affidavit, chargê or order for the paynent of money shall bä
    filed against Landlord, the De¡nised prenises or äny portiän thereof
    or interest therein, Í/hether or not sueh lien, affidãvit, charge or
    order is valid or enforceable, Tenant shall, at its soLe cost and
    expense, cause the same to be discharged of record by payment,
    bondinq or otherwise no later than fifteen (1s) aays after notice
    to Tenant of the filing thereof, but in all" evenCs prior to thê
    foreclosure thereof.
    :      ÀRTICLE IV.
    paynent .qf Rental. À11 Base Rental and
    Se.çþion 4.1.
    aI1 other amounts payable by Tenant shall accrue hereunder fron tbe
    commencement Ðate, .and shal1 be payable to Landlord without, excêpt
    as expressly pernitted by the ter¡ns of this Lease, deductloñ,
    l'r',L{,r.)?tiÍ4.f   .Stj-
    PLAINTIFF EXHIBIT I
    Glear Lake (2)
    oo0907
    ..'::''
    ::::.:;l;ì                           íli¡:lì;
    \ji;f                                'i{i*;i
    set'off, prior noticê or derûand at the address to which noticês to
    Landlord are required to be given under thè ternË of Èhis Leasê.
    Seqt,ion 4.2.   Bas_Ê Rent,al. Tenant shall pay Èo Landlord.
    BaÊe  Rentðl in monthly installments, in advance, in- the amounts
    Ëpeeified in section 1. i. (h) above. The first sustr uronthly
    installment sharl be due and payâble on or before the exêcut,ion oi
    this Lease and subsequent. instarlnents shalr be due and payable on
    or before the first day of each calendar month during the-tern¡ of
    this Lease conmencing wiÈh the calendar nonth following thirty (30)
    days after the com¡nencement Date,
    çec,þlon 4.3.    Failure to pav Rentai on Tinç. paÈt due
    Base Rental and other pâst dr¡e palments shall bear interest fron
    rnaturity ât the rate of eighteen percent (lst) per annum, provided,
    hovever, in no event shalr any such su¡rs bear ínterest ãt a rat,e
    greaÈer than the highest non-usuri.ous rat,e permitted by appricable
    1aw. All other suns and charges of whatsoever nature-reqüirea to
    be paid by Tenant. to Landlord pursuant to the terms or thig Lease
    conetitut,e
    rradditionaladditíonal   rent (whether or not the sane be desi"gnated
    renttr), and failure by Tenant to Èirnely pay such other
    sums or charges ¡nay be treât.ed by Lândlord ag a fáiluie by Tenant
    to pay Bâse Rent.
    ARTICLE V.
    TNTENTTONALLV DALETED
    ARïICLE VI    .
    Section 6.1. Conn-qn Àrêa. ?lre ter¡n rtConmon Arear is
    defined for all purpos€s of this Lease as that part of the shoppinq
    center intended for the co¡n¡non use of all tenañts, inctudirg å;ro"{
    otl¡er faciliti.es (ès such may be applicable to the srropping õenG;i
    parking ôrea, private streets and alleys, Iandscaþngl curbs,
    Ioading area, sidevalks, drainage facilitíèo, lightini fa?tfittes,
    drinking fountai-ns, pubtic toi.lets, and the tixe ¡ut excruding
    lFaee   ln buildings (nolr or hereafter existing) designed for rentai
    for comnrercÍal purposes, as the sane nay exist fro¡n t,i¡ne to time,
    ånd further excruding streets and alleys ¡naintained by a pubtiå
    aut,hority. Landlord reserves the riEht to change from Èi¡ne tä time
    the dimensionE and location of the coromon Arãa, aa !¡ell as the
    di¡rensions, identity and type of any buildings in the Shópping
    cênter, and to construct additional buirdings or additionat stõrieÃ
    on exiEt'ing buildlngs. (excludingr, however, tbe Dernlsed prenises) or
    glhgr irnprovements in the Shopping Center, including, but not
    linited to free-standing buíldings oi kiosks; provlded, irowever, in
    no event shall (i) âny buitdings or other improvements bè
    constructed within that part of the cornmon ¡rea outlined in green
    (Èhe rrRestricted comnon Area") on the prat attached hereto as
    Exhibit rrB' and (ii) no changes shalL be ¡nade in the Restri.cted
    connon Area which reduce or change the number or eonfigrrrat.lon of
    parking spaces or driveways or aèeess areas within the Restricted
    conmon Area other than minor changes r¡hich singularry or in the
    agçregate with all other minor changes do not adversety affect thÊ
    operation .of Tenants, business in tne Þemised premises. Tenant,
    and its emþloyees and customers, and when duly authorized pursu^.ti
    to the provisions of this Lease, its subtenants, licenèees and
    concessionaires, sha11 have the non-exclusive right to use the
    Coamon Â,rea as consÈituted fron tine to time, such use to be in
    öÕ¡nnon with Landlord, other tenänts to the Snoppinq cent,êr and
    other persons pernitted by Landlord to use the same, and subject to
    such reasonable rules and regulations governing use åã Landlord nay
    fro¡n tirne to ti¡ne prescrlbe,- including- tbe designation of specifiå
    arêas wÍthin the shopping center or in-reasonablé proxinity thereto
    in which auÈo¡nobi.les owned by Tenant, its ernployees, suËtenants,
    Liçensees and concessionaires shall be parkeä. In this regard,
    Tenant shal1 furnish to Landlord upon request a complete 1iét of
    license nurnbers of all automobiles operated by fenanÈ, its
    P:\1.9Ylld14.liti                         5
    PLAINTIT ' EXHIBIT   1
    Glear Lake (2)
    ooo908
    -;ii'jc''
    ;; ir" 'l
    r.rlr¿
    ênployees' subtenants, licensees or conceËsionaires. Tenant sbalL
    not solicit     business or display nerchandisô or offer any
    merchåndise for sale within the Conmón Area or at âny other poini
    outside tbe Denised Prenises, or distribute handbills therein, or
    take any action vhich r¡ould intêrferê r*ith the rights of other
    persons to use the Cornmon Area. Landlord may tenporarily close any
    part of, the Corûmón Area for sueh periods of ti¡re as nðy bä
    reasonably necessäry to prevent . the public fron obtaining
    p¡escriptive right,s ôr to rnakê repairs  or aLterations. LandLorã
    reserves the right to grant to third persons the non-excrusi.ve
    right. to erossover and use in cômnon with Landlord and all tenants
    of the shopping cenÈer the common Àrea as designat.ed fron tine to
    tine by Landlord, specifically, Tenant acknowrêdges the existence
    of, ald.agrees to the têrms and provisions of, t.hê REÀ. Subject Èo
    the li¡nitations on changes in tbe Restrict,ed connon Area se! forth
    ìn Section 6.1 hereof, Landlord shall_ have the right to makê
    chânges to thê co¡nmon Area, including, without linitation,  changes
    in the location or configuration of driveways, entranceá, exiËs,
    vehicular parking spaces, parking area or the direct,ion of the flow
    of traffic.
    Sect,ion 6.2.    parkincr Areå. Subject to the limitations
    on change6 in the Restricted conmon Àrêâ set forth in sect,ion 6.L
    hereof,.Landlord nay from tiure to tiroe substitute for any parking
    âr:eâ other âreas reasonably accessible to the tenanti of thé
    Shopping Center, which aieas nay be elevated, surface or
    underground. Tenant will not load or unload any trucks or permit
    any trucks serving the Demised premises, whether owned by feriant or
    not, to be loaded or unloaded in the Shopping Center, exðept in the
    âreas specifically designated for sush use by Landlord. LandlÕrd
    hereby deeignates the areas so indicated on -Exhibit oBil for such
    purposes in respect, t,o the Demised premises.
    Section 6.3. oÞeration of Conmon Area. Landlord shall
    operate, manage and ¡naintain the conmon Area, the rnanner of
    opêrationf management and naintenance and the expenditures therefor
    to be in the sole discreti-on of Landlord, proviãed such operation,
    Inånagement and ¡naintenance shâll be conparable to sinilaf shoppini
    centers in Harris count,y, .Texâs. Landrord shall have the riglï tá
    select a perãon t,o maintain and operate any of the connon Àiea if
    at any t.ine Landlord deterÍìines that tlre best interests of thè
    shopping center will be served by having any of the connon Àrea
    naintained and operated by thåt person. - Landrord sharl have lhe
    rÍght to negotiate and enter lnto a contract with that pêrson on
    such terms and conditions and for suÇh period of tine as Landrord
    deens reasonabre and proper, both as to services and as to cost.
    Section 6.4. Co¡ri¡ûan Àrea Co*qt,ã. In addit,ion to rentals
    and other charges prescrlbed in this Leåse, Tenant sha1l pay to
    Landlord Tenant's share of conrnon Àrea costs (as hereinatter
    definêd). rrConmon Àrea Costsrr, as used herein, means al1 suns
    expended by Landlord during the Lease Tern in operating, nanaqing,
    pollcing, eguippÍng, lighting, repairing, replaeing and-rnaintaininá
    the Common Àreas, and an allowançe to Landlord for Landlordrs
    supervision of the Common Areâs in an anount equal to seven and
    one-half percent (7-1/22) of the total of all Common Àrea Costs.
    comrnon Àrea Costs shall i.nclude, without linitat,ion,        costs of
    reÈurfacing and.restriping       the parking and driveway årêas;
    repainting, cleaning. sveeping, and other janltorlal ãervices;
    policing; purchase, construction, and mafnt,enance of refuse
    re€eptacles, planting and relandscaping; directional signs and
    other markersi car sto¡s.; lighting and oÈher utilities;    installing,
    operating and maintaining .shopping cènter identification signá!
    prernlun¡ on. public 1 liabÍlity    an¿ property danage ínsurãnce
    (excluding increaEes therein due to vãcancy in ttre Shopping
    centeri,' maint.enance, repair and replacerûent òt utirity syslãnsi
    including water, sanitary and storrn sewer Linee and othär irt:.rrtv
    lines, pipes. and conduits serving the Shopping Centeri Arainãqå
    systerns.serving the shopping center; rental chargeg for nachineiy
    and eguipment used in the operation, ¡nainte¡ance ãnd repair of thã
    PrU,!9'l6il4. l,\E                 6                     PLAINTIFF EXHIBIT I
    Glear Lake (2)
    ooo909
    i;iÌ,hiil                        r:, ü:i
    '-l*i.n'.                        '+i/"
    cg¡nmon  Area6r' costs of pêrsonnel to inplenent all of the foregoÍng,
    including wageÊ, unemployment taxe. and sociat securiiy            -¿iläÃ;
    personal property taxes; fees for reguired lícenses and -parnits!
    sup¡Iies; and other costs necessary in Landlordrs judguenf ror tnå
    naintenance, operaÈion and nanagenent of the coi¡non åreas,               but
    exc).uding depreciati.gl of tle origlna] coet of constructini itre
    comnon Àreas. Noj:withstanding the foregoíng, conmon Area bost,s
    sharr n-ot include,/(i) capital expenditures by Landtord unress the
    cost of auch items are a¡uortized over their useful rives (as
    deternined in accordance wi.th generally accept¿d accounting
    principles) .ín accordänce with leneral$                       aecountin{
    princi-ples, in which event there nay be i.nclude¿  ""c"iieã
    in conr¡ron Äreã
    costs for any year thê anortized portion of the cost of such ltens
    fôr such year as reflected in Landlord/s books and records. (ii)
    tlie cost of any r?þ9r or r¡aterials purchased by Landlord.       trorn'any
    subsidiary or affiliate of Landlord unress the cost of such           l.aboi
    or materi-als is cornpetitive with the cost of sinilar låbÒr             and
    rnáteri.als avairable frorn unrelated vendors änd (iii) all costs and
    êxpenses {incruding penalties and fines) asàociãtea with the
    renoval and clean up of hâzardous r¿agtes or toxic subetances, (i;t
    work occasioned by casualty covêred by insurance require¿'to-uå
    ¡nai.nt"ained by Landlord ¡rursuant to this r,ease, oi wrrtcú is actuariy
    cqvered by insurance..maintained by Landlord, (v) work resultini
    from condennati.on to the extent the costs thereoi are not in excesã
    of the ar¡ard recelved by Landlord, (vi) depreciatlon and      other
    cash charges, ivli) amortiaation of debt, interest on debt,non-            or
    ground rent, and (viii) any cost,s separatery chargeable to or for
    which Landlord is entitled-to reinbureement from other t,enants in
    the. shopping cêntèr. Tenant sharr ¡nake such payneni" to Landlord
    at intervals not rnore frequent than raonthly v¡ttrr trre riiÃt-*ô"irrry
    instaLl¡aent due and payable upon the execudion of thls rreaÊe.
    nonthly or other periodic chargeE shalt be based uponsuch                the
    Landlord/s est,i¡nated annuar cornmon Àrea costs, payable in advance
    but. subject t,o adjustment after the end ot eäcir calendar yeai
    during the tern of this Lease on the basis of the actuår common
    Area costs for such year. upon the computation of such adjustment
    (wlrich shall be completed within 1Bo days following the end of the
    calendar year to which such adjustrneñt relat,es) and            notíce to
    Tenant, Tenant shall pay to Landl"Õrd the amouht of any deficiency,
    or Landlord shall- refund to Tenant tbe amount of aÞy e-xcess, as tËér
    case mây be, such re_inbursernent or pa)¡nênt to be naãe withiá thirty
    days followlng the Tenantrs receipt õf such statement.
    Section 6.,5. :gotB¡ûen=Àrea Co6t€. Landlord shall keep
    contpretê book6 and records     for all cornmon Area costs, and renantì
    at its expenÊe, sha1l have the right to inspect,, a,rait                ;;pi
    such books and records upon reasonãble noticé ouring the "'d      busineåå
    hours of Landlord or Landlord,s property managêr. iandlord shall
    pronptry refund t,o ?enant any overpaynent     and Tenant shall pronptly
    -(in each
    q"T_ to. Landlord any dericiency                  casê, within 30 ãaVå
    foLlowing completion of the audit¡', as the case ¡nay be, vhich is
    established by any such auditi provided, that, it such
    reflects that Landlord has overstäÈed corn¡non Àråa costs byaudit.
    than five pereent (5t), Landlord shall arso reLmburse TenantÍrÕre         for
    thê reasonâble côsts and expenses incurred by Tenant in perforrning
    sueh audiÈ, not to exceed, hot¡ever, $:,OOO.ô0.
    ARTICLS VTT.
    :      ç.egtion 7.1. Use of Ðenised preniqes, The Denised
    Prenises shall be used only for the purpose or purposes
    in,section 1-:-(n) above, and for no otnei purpose wiihout specified
    the prior
    written consent of LandlÕrd. so long as tenant i.s conductini    iis
    business in the De4ised      prernises, lenant shaLl use in- the
    transaction of businèss in the De¡rised prernÍses ihe trade na¡ne
    specified in section 1".1(e) above and no other trade name without
    the prlor written consent of Landl"ord. At arr timec when  Tenant is
    operating its business, Tenant slraLl operate tts buslness
    diligence, in accordance with the ståndards utilized in with     the
    majority of Tenant's st.ores. Nothing contained herein shall
    Pr!L9Ð1ó{4.l"stt                      7                       PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    000910
    it::;a:r'li
    rêguire TenanÈ to operate its business in the Demj.sed prenises.
    ft, aft,er opening, Tenant ceases to do busi.ness in the DemiÊed
    Prenises on a regurar basis for a continuous period in exeess of
    sixty days, Landlord shall thereafter at such tine as lt shall
    elect, until such ti¡ne âs Tenant reopens for business, håve thê
    right to terminate this Lease by giving written noticê of
    termination t.o Tenant which sha1l becone effeètive on Èhê tenth day
    followlng recei-pt of such notice by T€nånt. rn thê event of a
    terninat.ion hereunder, the parÈies hereto shall be rereased fron
    any and all liabili.ty under this Lease for the ternÍnated portion
    of the unexpired term. Nothing herain shatl be dee¡ned to affect or
    release Tenant's obtigation to pay Base Rêntâl and additlonal
    charges and to perform Tenant,s othèr obllgations hereunder until
    the effective date cf said terminat,ion by Landlord. periods of
    closing. of, the De¡nised premises reasonably necessitat,ed by (i)
    renodeling and/or repair or interruption due to loss of utlrit.i
    service, {ii.} casualty, (iii) condemnation and (iv) periods oi
    closing consented to by Landlord shall be exernpt fro¡¡l the
    provisi.ons of this section 7.1 anal shall not give Landlord       the
    right to terminate as set forth herein. TenanÉ shall reimburse
    Landlord for any increase in the coet of insurance on the shopping
    center resulting froro an election by Tenånt t,o cease doing nusiiresé
    in the Dernised Prenises.
    .       Section 7.2.. I,ilitations on Usq. Tenant shall not,
    without Landlord's prior written consent, keep anythlng within thå
    Dsmised Prernises or use the Denised prerníses iot åny purpose whieh
    increases the insurance prernium cost or invalidat"å åtty'insurance
    policy carried on thê De¡nised premises or other part,s of the
    Shopping center unless Tenant.pays thê cost Èhereof. A1r property
    kept' slored or maintained within the De¡nised premises ly rãnanÈ
    shall be at Tenant,s sole risk.
    Tenant shall not, permit any object,ionable or unpleasant
    odors t,o emanâte fron the Dernised rrenieee; nor place    p..*ii À"y
    radio, television, loudepeaker or anplifier on the roof "r ór outsidà
    the Þenised Preni-Ees or rvhere the sa¡ne can be seen or heard from
    outside the building; lor place any antenna, ar,rning       or other
    pr:ojection on the exlerior  ot tne oeñised prÀnisãr; -når take any
    other actlon which would constiÈute a nuisance or would disturb oi
    endanger other tenants of the shopping center or unreasonabry
    interfere with their use of their rdjpeclive premises.
    Tenant sha1l take good care of the Þe¡nised pre¡nises and
    keep the sa¡ne. free fronr r.¡aste at all ti¡nes. lenant shall keep the
    Demised Premises and sidewalks, service-ways and loading å.."=
    adjacent to Ëhe Denised prenrises neat,, clean and free fro¡n ãirt or
    rubbish at alr times, and shall store al1 trash and garbage within
    the De¡nised Pre¡nises or in such area outsi.de the oeñised pre¡nises
    ås may be designated for such purpose by Landlord, and ?enant shall
    äËange, far t,he regul.ar pick-up of such trash ånd garbåge at
    ?enant's expense. Receiving and del.ivery óf goods and merchandise
    and renoval- of garbage and trash shall Le naãe onry in thê âreas
    prescribed by Landlord. Tenant shall not operate an"incinerator or
    burn trash or garbage within the shopping Center,
    No public. or private        auction or any                  f ire,
    tilost-our-Iêaserr, ilgoing out of buginessil, bankruptcy or       s   i¡ni 1ar
    sales ot auctions sha1l be conducted in or frãm -the               Demised
    Premises.
    Sectign 7.3.  Då"Splavs and AdveqtisenqntË. Tenant shall
    maint,ain all display windows in a neát, -àttractive condition.
    Tenant sha11 includei the address and identity of its business
    activities in the Ðenised premises in all advertise¡nents made by
    Tenant in which the address and identlt,y of any sinilar rocai
    bu6j-ness activity of Tenant is rnentioned.
    Sectj.on 7.4.  ConpLiance with Laws.      Tenant, shall
    prôcure at its sore expensê any pernits and licenses required for
    ¡':1"9!?lô4.1.t."Sfì                                         PLAINTIFF EXHIBIT    I
    Glear Lake (2)
    0009rr
    ;ii,;             ,,   lr   ,.
    Ç,                t:/
    the transaction of business in the Denised preruises and shall
    conply with alJ- laws, ordinances, regulations and orders now in
    effect or hereafter enacted or passed during Èhe tern of this r,eåse
    insofar ès thé conduct of lenant.rs business in the Denised prenises
    ã.nd any signs of Tênânt are concerned, and shalL make at renantrs
    Õr/n cost and expense alÌ repairs, additions and alterations to the
    Demised PremiEes ordered or required by any governnental authority
    as a result of Tenant,s failure to nðke repairs or perforn
    maj-ntenance reguired of iÈ under this Lease or because of
    particular use of the Demised pre¡nises. LandLord shåI1Tènantrsrnake at
    Landlord's expense any and all repairs, additions and alterations
    required as a result of faiture to comply vith any building code or
    other govêrnmental requirements in conneetion wittr the triginal
    construction of the Ðernised prenises, beeause of Landlordrs faiLure
    to ¡nake repairs required of Landlord under this Leâse or because of
    the nature of the structure of the Denised premises and not because
    of Tenantrs particular use of the Demised premises.
    ARTICTJE VITI.
    Section 8.1.    Landlordrs ReoairF, Upon the condition
    pnecedent that Tenant shall have Eivên Landlord prior wriÈten
    notice of the da¡ûâq,e requiring repair, Landlord will-repair danage
    to lhg r.oof (exclusive of flashing around any robftop ali-
    condit,ioning units êxcept for the period of the ¡nanufacúurerrs
    \rarranty covering such units during r.¡hich period Landlord shall
    maintain such ilashing) and stfucÈural portions lincluaing
    structural, i.nterior wal1s, exterior walls, and foundatiòn) of thå
    Þemised Pre¡ni.ses and the bullding in whi,ch thè såme are sítuated,
    unress the required repairs are "caused by the act or o¡nission oå
    Tenant or Tenant,s enployees or contractors; provided, however, in
    the event any such darnage is caused by one or more acts or
    omi-ssi"ons of lenant,, its agents, ernpì-oyees, custoners or invi.tees,
    or any burglar or unauthorized entrant, or any other person (with
    the exception of Landlord i.tself), Tenânt sha1l bear lhe cost of
    such repaírs unle€s the sarnê is covered by the insurance maintained
    by Landlord hereunder in which case Landlord shall nonalheless be
    responsible fo¡ such repairs to the extenÈ of the a¡nount actuatly
    received from the insurer, rf the Demised premises or the buirdini
    in which thê same are situated should becone in need or repairå
    reguired to be nade by Landlord hereunder, Tênant shall give nåtieå
    thereof to Landlord as soon as practicabre after Tenant becomes
    aware of the need for such repairs, and if Ländrord should fail or
    neglect to comnence to make -any éuch repairs within thirty daye
    {or, in the case of ân èmergency, vri.thirr, two days) followi-ng tire
    date of such notiçe from Tenant ór should thèreafter faii or
    neglect to prosecute the compleÈion of such repairs with reasonabl.e
    diligence, Tenant may nake such repalrs as ¡nay be necessary in
    which event Landlorct sha11 reimburse Tenant for Che reasonable lost
    of such repairs within twenty days following delivery to Landrord
    of:paid invoices or other satisfactory evidence of the cost of such
    repairs, together with interest thereon at the rate specÌfied in
    sêctÍon 27.13î provided, however, in the event tandlord notifies
    ?enant in writing within ten days fol.lowing the date on which
    Tenånt notifies Landlord of the need for such repairs that Landlord
    beilleves such repairs tÕ be unnecessary, then Tenant. shall not,
    exercise its right to make such repairs pursuant to this section
    8.2 unless a majority of an infor¡üal arbitration comnlÈt,ee selected
    in the nanner described below has deter¡nined that such repairs åre
    reåsorlably necessary or appropriate, such arbit.ration õo¡tr¡rittee
    shall be forned by. Landlord and renant each selecting an individuar
    ând those two individuars in turn serecting a third individual.
    . Section   8.2i   Tenant's Repairs. Al1 damàge, other than
    that which  Landlord undertakes to repáir in section alt'1incl_uding,
    without linitation, aI1 repairs, additions and alteratioàs requiråå
    as a result of failurê to cornply with any building code or other
    governmental requirements in - connectiãn wi.th the original
    construction of the Dernised prenises) or Articles xv and xvr witt
    be repaired and a1r maintenance will be perforrned and replacements
    ¡':\¡.r9ì   1   ó14. I ^st;           9                        PLAINTIF'F EXHIBIT   1
    Glear Lake (2)
    ooo9r2
    J,,".'.
    r:::'.f                  1*-¡'
    and renehrals will be ¡rade by Tenant, at Tenântrs solè cost and
    êXpense; and Tenant shall keep the Denised premiges in good, cleån
    and habitâble condition and shaLl, at ite sole cost ånd êxpense,
    keep the Demised Pre¡nises free of infestation of insect,s, roãents,
    vernin and other pesls and in all caËes make all needêd repaJ_rs and
    replacements, .including replacenent of cracked or broken glass.
    without lirniting any other provisions herein contalned, it is
    understood that Tenant's responsibiLit,ies hereunder include the
    rêpair and replace¡nent of all lighting, heatlng, air conditioning,
    plunblng and other electrieal,          rnechanical and electromotive
    installations, equÍpment and fixtures and all utilit.y repairs in
    ducts, conduits, pipes and wiring, and åny selrer stoppage ]ocaled
    in, under and above the Demised Premises. Tenant shall not nake,
    or perrnit Èo be made¡ any penetration in the roof of the hullding
    of r¡hich lhe Denised Prenises are a part, but shall be responsíblå
    f<¡r all rooftop flashing around all rooftop âir-conditioning unit,s.
    ln the event that any sueh roof penet.ration is required in
    connection with any repairs, maintenance, rene!¡a1s or replacements
    required to be nade by Tenånt undêr, Landlord shall peiform such
    roof peneÈration at TenanÈrs cost r.¡ithin a reaÉonâbtá ti¡ne after
    notice from Tenant. If any repairs required to be r,nade by Tenant
    hereunder are not nade rrithin ten (r0) days after written notice
    dellvered to Tenant by Lêndtord, (or if thá sane cannot reasonably
    be expected to be rspaired witlrin said 10 day period then sucñ
    longer period of t,ine as is reasonably necessary so long as Tenant,
    cotn¡nêncꀡ such repairE t¡lthin said 10 day period and prosecutes thê
    sane to corrpletì-on with reasonable dlligence) Landlord nay at its
    option make such repairs without liability to Tenant for ány toss
    or damage whieh ¡nay result to its stock or buslness by reaéon of
    such repairs; and Tenant shall pay to Landlord upon dernand, as
    additional rent hereunder, the cost of such repairs plus interest
    at the rate and in the nanner hereinafter specified in Section
    27.13.
    .      sçct,ion. B . 3 . Sqrrender of De¡¡j.sed pre¡nises. Upon
    termination    of this Lease, lenant wilL sumender and deliver up thê
    Þemised Premises lo Landlord broon-clean and in the sane condition
    in which they existed at the commencenent of thie Leåse, excepting
    only ordinary wear and Èear, damage arj.sing frorn acts of - God,
    danage required hereunder to bê repaired by Landlord, danage from
    condêmnation or casualty and alterations and additions peirnitted
    hereunder or approved by Landlord.
    ARTICLE   TX
    sectíon ?.L. Àlteratiqns. Tenant shall not nake any
    alteratlons, additions or inprovenents to the Ðenised preniseå
    without the prÍor l¡rit,ten consênt of Landlord, except for Ínt.erior,
    nön-structural alteratíons ånd the installation of unattached,
    novable trêde fixtures which nây be installed !Ìithout drilling,
    cutting or otherwise defacing the premises. At1 alterations,
    additions, improvenrents and fixtures (other than Tenant, s
    unattaehed, readlly movable furniture and office equiprnent) which
    nay be made or installed by either party upon the Denised premises
    shall i¡n¡nediately become .and remaj-n the property of Landlord and
    shall rernain upon and be surrendered lrith the Dêrnised premises at
    the t€rnination of this Lease.
    gection 9.2. llecbanic's Liens. I{ith respect, to any
    contract for construction done by Tenant or çaused to be done by it
    on the Þe¡¡ised Pre¡nises ae permitted by lhis Lease, Tenant acts as
    ð principat and not as the agent of Landlord, ând Landlord
    expressly disclains LiabÍlity for thê cost of labor Írerformed or
    maËeriåIÊ furnished by Aenânt. Tenant shall pay pronptly when due
    the entire cost of any work affecting the Demi.sed premisès done by
    or for the account of ?enant so that the Dernised prenises shall at
    âLl times be free of li-ens for labor and rnaterials. In no event
    shall Landlord Õr any of Landlord's property be liable for or
    chargeable with any expense or lien for work, labor or ¡naterials
    P:\1.99?l&r.1 l-sÞl                 10                   PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    0o0e13
    .;::{
    ,1.   rì::j
    !..r'                      +.,;{
    used Ín the Denised Premises or any improvements or change thereof
    nade at the requeÊt of, or upon the order ôf, or to dischargre the
    obligation of Tenant.
    Sêction 9-3    Trade Fixtures. ÀI1 Èrade fixtures and
    equipment instaLled by Tenant in the Denised Pre¡niees shall remain
    the property . of Tenant except if and t,o the extent leased by
    Tenant. Provided Tenant is not in default hereunder, Tenant shall
    havê the right, at thê t,ermination of thi.s Leasê, to renove any and
    all tradê fixtures, eguipment ånd other itens of personat property
    not constituting a part, oe tne freehold which iÈ ¡iay have stored or
    instaLled ln the De¡nised Premises, including but not, liruÍted to,
    counters, shelving, shoÌ^r casês, chairs and rûovable rnachinery
    purchased or provi.ded by tenðnt provided this right is exerciseã
    before the Lease is terminated and prÕvidêd that lenânt, shall
    repair any damage to the Dernised premises caused t,hereby. Tenant
    shall not have the right to remove any plunbing or ãlectrical
    fixtures or equipnent, heating or air-conAifloning ãquipnent, ftoor
    coverinqs (including wall-to-wa11 carpeting) glued or fastened to
    the floors or any paneling, tile or other mat.erials fastened or
    attached to Èhe waLls or ceilings, all of whieh shall be dee¡ned to
    constitute a part, of the freehold, and, as a maÈter of course,
    shatl" not includê the right to renove any fixtures or nachì.nery
    that werê furnished or pald for by the Lanillord. If Tenant sha11
    fa:j-] to remove its trade fixturês or other property at the
    termination of this Leåse, such fixtures and otier'proþerty not
    removed by Tenant sha1l be deemed abandoned by Tenant and, at the
    opt.ion of Landlord, shäl1 become the property of tandlord.
    ARÎïCÌJE X.
    çection 10.1, Lanqåord,q, Right of gntry. Landlord shall
    have the right to enter upon the tenieed prenises at any ti¡ne for
    thê purpose of inspecting the same, or rnaking repaiis to the
    Ðernised Premises, or of naking repairs, alterations or additions to
    adjacent prenises, or of showing the Denised premises to
    prospecti.ve purchasers, lessees or lenders. Tenant will pernit
    Landlord to place and naintain rrFor Rentrr or ttFor LeaËe[ sÍgns on
    the Þemj.sed Premises during the last ninety days of the térn of
    this Lease.
    ARTICLE XI.
    Seçt,io4..1L, 1, SiqnÉ. Àvnlngs and Canol)ies. Landlord uray
    êrect and nåintain such suitable signs on and about t,he Shopping
    Center as Landlord, in its sole discretion, may deem appropriate to
    advertÌse the Shopping Center. Tenant rnay erect and r,raintain a
    flàt wall sign which shall be of such si.ze and type and in such
    location ås LandlÕrd rnay approve. Tenant shall sub¡nit t,o Landlord
    detaíled drawings and specifications for such sign, which drawings
    and specifications shall be subject to the r¡ritten approval of
    Låndlord prior to the installati"on of sueh sign. Tenanï sha11 be
    entitled to install its sÍgn (subject to Landlord,s prior approval
    thereof) in the existing pylon sign can containing pott,ery lfart/s
    existing sign. Except as herein otherr¡ise expreesly piovided,
    Tenant shall not, lrithout Landlordrs prior r.¡ritt.en consenf (a) rnake
    åni changes to the st,ore front or (b) instal.I or place on or about'
    the exterior of the De¡nised Pre¡nises any lighting, slgns (including
    but not, 1i¡nited to, portable signs¡ decorá{ionã, ¡ìaintinqs,
    awnings, canopies or the like or (c) erect or install any êxterior
    or interior signs, windor+ or door lettering, placards, dècorations
    or advertising nedia of any type which can be viewed fro¡n tbe
    exterlor of the Denised Pre¡nises, excepting only dignified displays
    of cust,omary type for its display windows. afi siins ryhich fãnairt
    is,pernitted to ¡naintaj"n hereunder shall. be kept inlured by Tenant,
    ånd Tenant. shall maintain the samê in good condition, repair and
    operating order at all tines, tenant shall keep all su¿h signs
    lighted during the hours from sundov¡n to 1Lt0O p.m. irrespective of
    whether or nôt the prernises ís opên for busiiess, unlésç Tenant
    shall be prevented from doing so by events beyond thê control of
    I':\¡.ç$/lól4.l.sB                 11
    PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    oo09l4
    j::,¡ñ'
    ,:,:,ui.                   ...,:j
    fçnant. Àny sign which lenant, is permitted to naintain hereunder
    shalr cornply with all laws, rules and ordinancee and renant shall
    obtain any required governrnental apprgval. Landlord nâkes no
    representation with respect to Tenantrs abitity to obtain such
    approval.
    ARÎICLE XT:.
    Section 12.1. UtiliÈies.     Tenant sha1l pronptty påy
    dírectly to the supplier all charges for electricity,- waierj gäsl
    têlephone service, sanitary, se!¡¡er service and other utilitles
    furníshed to the Ðe¡nised Premises, and wilt save and hol-d Landlord
    har¡nleEs frorn any charge or liabi.lity for same.
    Section 12.2. InterrupÈi"e*F-. Landlord shalt not be
    llable for åny interruption or ¡nalfunction whatsoever of ut.illty
    services and no such interruption shatl constitute an evictlon ol
    disturbanee of renant's use and possession of the De¡¡ised premises
    or grant Tênant any right of set-off or recoupnent. In the event
    of äny such interruption of utility services, Låndlord shall use
    ¡easonable dlligence to restore such service in any circunrståncè6
    in which such interrupt,ion is caused by Landlord/s fault. In the
    event electrical service to the Dêmised pre¡ni.see is i"nterrupted,
    through no fault or act of Tênant, for a continuous period of slx
    nanthg, TenanÈ åt any tine thereafter prior to the restorat,ion of
    such servlce, shall have the right to t,errninat.e this Leåsê by
    giving thirty days r¡ritten noÈice of termination to Landlorå
    unLess, vithin such thirty day period, Landlord is successfut jn
    rêstorlng_êlectrical services to the Denised Frenises, it being
    understood and agreed that Landlord shaLl havê no obligation in
    this regard unlees Êuch interruption in servíce r*as caused by
    Irandlord's f ault.
    ARTICLE XTIT.
    Sect.ion t-3.1. Indemnity. Lândlord shall not be 1iable
    to. Tenðnt or to lenantrs empì.oyees, agenÈs, licansees, inviteee,
    customers or visitors.- or to any other person whomsoever, for any
    inJury to person or damage to properti on or about the Demi.sêd
    Premises or thê coa¡non Area caused by the negligence or miEconduct
    of Tenant, its ernployees, subtenants, licanseäs ór concessionaires,
    ?r  9f any other
    invitation
    person entering the shopping Center under express
    of Tenänt, or arising out of t[e use of the Deirised
    Prenises by ?enant. and the conduct of its business therein, or
    arising out of. any breach or default by Tênant in t,he perfornance
    ðf its obligations hereunder; and Tenant hereby açtrees to inaemnify
    Landlord and hold Landlord harmless fron any 1oes, expense or
    claims arising.out of such danage or injury. The furnishiñg of any
    insurance herein required to be furnished by Tenant shalt not bå
    deemed to linit, Tenant's obrigations under tie provisions of this
    Sêction 13.1. Landlord hereby agrees to indernnify Tenant and hol"d
    Tenant har¡nless from any loss, expense or clains arÍsing out of the
    negligence or nisconduct of Landlord, its ernployaes, subtenants,
    licensees or concessionaíres or of any other person entering the
    Shopping Center under the express invitation of Landlord.
    Sect,ion 13.2. Liabill¿v Insurance. Tenånt shall procure
    and naintain throughout the term of this Lease a policy or polj.cies
    of conprehensive general liabiLity insurance, at its ãote èost, and
    êxpense, insuring boLh Landlord and Tênant against all claims,
    demands or actiöns arising out of or in connection rrrith Tenant,s
    uÉÊ or occupancy of the Demised Prernises, or by the condition of
    thè De¡aised Premises. ?he limits of such policy or pollcies shall
    be not less than $2,00o,000.00 co¡rbined single limit, which policy
    or policies shalL incLude coverage for Uoaity injury and äeathl
    property daraage and products liability coverage. suèh policy or
    policies sha11 be issued by a cornpany licensed to conduct business
    in the state of Texas. Tenant shall obtain a written obligation on
    the part of each j.nsurance company to notify Landlord at least ten
    PiU-gl?164{.LsE                   12
    PLAINTIFF EXHIBIT   1
    Clear Lake (2)
    ooo9r5
    i"
    '",i1'',
    )::l !i li::        ,,Æ
    \i;ir:l
    (10) days prior t,o cancellation of such ingurance. such poì.icies
    of duly exeçuted certj.f j.cat,es of insurance shall be pro¡npt.ly
    delivered to Landlord and rênewâls thereof as requirea ånafi ¡ã
    delivered to Landlord at least thi.rty (3o) days prior to the
    expiration of the respective policy terns. If Tenant should fail
    to conply r¡ith the foregoing requirenents relating to insurance,
    Låndlord may (but, shall not be obrigat,ed to) obtain such insurance
    for Tenant, and ?enant shall pay to Landlord on de¡nand ås
    additional rêñt hêreunder the premiun cost ther€of, plus interest
    åt the rat€ and in the nanner hereinafter specified j-n Seet,ion
    27    .]-3.
    Section 13.3. ?enanç,:F Flre Insurance. fenant agrees to
    okrtaln and ¡naintain at all ti¡res during the ter¡n of this Lease a
    policy of fire and êxtended coverage insurance on its fixtures,
    equiprnent, rnêrchandÍse and other pfoperty placed in or upon the
    Demised Premises, insuring all such þróperty for lti             ful1
    replacênent value. SaÍd polì.cy shall be èndòrseã to provlde that
    it, may not be cancelLed except upon ten (to) days piior wrilten
    notÍce to Landlord. À duplicate originaì or certificâte of such
    policy will be deposited with Landlord by tenant upon Tenant,s
    taking possession of the Dernised Premises, and a dupliCate original
    or certificate of each subsequent policy ¡¡i11 be deposited -with
    Landlord prior to the expiration of the preceding such policy. If
    Tenant should fail to obtain such ineurance, f,andtord naf (but
    shall not be obtigated to) obtain such insuránce for Tenant, and
    fenant sha1l påy to LandLord on denand as additíonal rent hereunder
    the prernium cost t,hereof, plus interest, at the rate and in the
    manner hereinafter specified in Section 27.13.
    . SecÈion 13..4 Landlordrç Insurance. Subject to Tenantrs
    oÞli.gat,ion to reimburse lJandl.ord for Tenant's Sharã of Èhe Coet of
    fnsurance, as herein provided, Landlord shalt keep the De¡nised
    Pre¡ri.ses and the shopping center insured against losË or danrage by
    fire and other ha¿arãs covered by ext.ênded coverage insurance frorn
    an insurance conpany or cornpanies authorized to dó business in the
    stêtê of Texas, such coverage t,o be in ân anount not, Iess than
    eighty percenÈ (8O*) of the full replacehent, cost thereof. In
    addltion, Landlord sha11 naintain in force public tiability
    insurance with respect to the common Àreas of thã shopping center
    in such anÞunt as is custo¡nary for shopping canters of êi¡nilar size
    and quatit,y in Harris county, Texås. ÀÈ tenant's request,, Landlord
    chal1 deliver to Tenant evidence of such insurãnce coverage.
    Landlord shall have the right to carry .äny of its insurañce
    required to be ¡naintaj-ned under this Lease undèr ttblanket policiesit
    covering Èhe shopping cênter and other loeat,ions vhich il owns or
    Ieãses provided, that, if Landlord elects to do so, such {blanket
    coveragerr shaÌl provide that the coverage with respecL to the
    shopping centêr shall not. be dirninished or reduced due to clai¡ns
    associated r¡ith other properties covered thereby and in no €vent
    shal1 the anounts payable by Tenant as Tenânt's Share of InÊurance
    be greater than what they $/ould olherwise be if the insurance fÕr
    the Shopping Center were not being provided under a 'tblðnketr¡
    po).icy, not¡¡ithstandinq the provisiónJ of Article XVIII below.
    Section 13.5. Waiver,,ef Subroqation. To tlre extent that
    the parties nay ]ëgally so agree, neither Landlord nor Tenant shalL
    be liable (by way of subrogation or otherwise) to the other party
    {or to any insurance cô¡npany insuring the other party) for any loss
    or, danage to any of the property of the Landlord or the Tenant, as
    the_case may be, q¡hich loss or danage is covered by any insurance
    pol.icies carried by the parties and in force at the úirne of any
    such damage or required t.o be carried by the parÈies, even thougir
    suçh loss or darnage night have been occasioned by the negligence óf
    LandLord or Tenant, and the party hereto sustainíng such loss or
    datnage so protected by insurance waives its ri_ghls, if any, of
    recovêry against the other party hereto to the extent and amounl
    that such loss is covered by such insurance. Each party shål1 use
    its best efforts (including payment of any additioñal prenium) to
    have its insurance policies contain Cire standard - r¡aiver' of
    l':\1,9971614.   lJtì                        1a          PLAINTIFF EXHIBIT I
    Clear Lake (2)
    ooo9l6
    subrogation clåuse. In the event Låndlord,s or Tenant¡s insurance
    carrier declines to include in such carrÍer,s policy the standard
    \,raiver of subrogation clause, LandLord or Tenant, as the case may
    be, shâll promptly notify the other party, but in no event shali
    such refusal abrogate, dininish, or nodify the waiver set forth in
    this $ection 13.5.
    ARÎICLE XIV.
    Sêction 14.1. Loss or,Damage to Tenant,'s preÞgrty.
    Landlord and Landlord,s agents and enployees sha1J. not be 1iabl.e to
    Tenant for any injury t,o person or danage to property caused by the
    Demised Premises or other portj.ons of the Shopping Center becãming
    ôut of repair or by defect or failure of any structural elenent oã
    the Demised Premises or of any egulpmeht,, pipes or viring, or
    broken glass, or by the backing up of drains, or by gas, water,
    stêan, electricity or oi1 leaking, escaping or floìrring into the
    Dernised Premlses (except where duê to Landlordrs wil"lful'failure to
    make any repairs or perform any $âint.enance obligations required
    under the terns of this Lease), nor shal1 Landlord be 1iab1e to
    Tênant for any. lcss or darnage Lhat ¡nay be occasioned by or Èhrough
    the acts or ornissíons of other tenants of the Shopping center or of
    any other persons $,¡homsoever, excepting only duly authorized
    employees and agents of Landlord.
    ARTTCLE XV,
    Section 15.L. Þarnage or DestructÍon bv Fire or,Otþer
    Cqsual.tv. Tenant shatl give inmediate writ,t,en notice to Landlord
    of any damage caused to the Denised prenises by fire or other
    casualty.
    In the event that the Demised premises shall, be darnaged
    or destroyed by fire or other casualty lnsurable under standård
    fire and extended coverage j,nsurance and Landlord does not elect to
    terminate this lrease as hereinafter provided, Landlord shalt
    proceed.with reaEonable diligence and at íts sole cost and expênãê
    to rebuild and repair the Demised prenises. In the êvent 1a) tfre
    building in which the Demised Premises afê located shaIl, be
    dêËtroyed or substantially danaged by a casualty not covèred by
    Landlord's insurance, or (b) such building shall be destroyed or
    rendered untenantable to an extent in exeess of t$rênt,y-five percent
    (251) of the first floor area by a casualty covered by Landlord,s
    insurance, or (c) the holder of a mortgage, deed of trust or other
    Iiþn on the De¡nised Premises at the time of the casualty elects,
    pursuant to such mortg'aqe, deed of trust or other lien, to require
    the use of aI] or part of Landlord.s insurance proceeds Ín
    satisfaction of âlL or part of the indebtedness secured by the
    mortgaqe/ deed of trust or other lien, tben in any such eventuality
    Landlord nay elêct either to terninat.e this Lease or to proceed to
    rebuila and repair the De¡¡ised Prenisee. Landlord Jhall give
    written notice to Tenant of such election within sixty (60) åays
    after the occurrence of such casuatty and if it elects to rebuild
    and repair shall proceed to do so with reasonable diligence and at
    its sole cost ând expense. ff Landlord elects to rebui.ld, such
    notice shall state the esti¡nated tine to cornplete such rebuitding
    and, in the event the estinated tine to rebuild is greater than six
    (6) months, ?enant shall have the rigtrt to terrninate this Lease by
    giving i,rritten notice of ternination to Landlord r¡ithin ten (1Oj
    days fo1lot^ting receipt of such u¡ritten notice fron Land1ord.
    Notwithstanding the foregoi.ng, if any such casualty and tþê
    resulting da¡nage affècts only the Denised prernises and no other
    part of the Shopping Center and Landlord elects, pursuant to the
    foregoing, to terninate t,hís Leâse, Tenant may override such
    terrnj.nation if it desires to rebuild the De¡nj.sed premisesf at its
    sole cost, by giving rn¡ritten notice to Landlord wi.thin ten (10)
    days f ollowing receipt of such r"¡r j,tten notice f ron Landlord,
    stâting Tenant's desire and agreement to so rebuild i,¡ithÍn six
    months after such notice.
    P: !   L991 16.14. LS   tl
    PLAINTIFF EXHIBIT   1
    Clear Lake (2)
    ooo9l7
    ,f i,:1.
    irìiû.å
    Landlôrd's obligation to rebuild and repair under this
    Àrticle XV ehall in any event be lirnited t,o reetoring the Denised
    Premiaes, exclusive of any alterations, additions, inrprovernente,
    fixtures _9nÇ eqriiprnent inetalled by Tenant, to suùstantiafly tbå
    sane condition ln which the same existed prior to the casuãlty.
    Tenant agrees that. pronptly after conpletion of such r¡ork Uy
    Landlord, lenant will proceed with reasonable ditigence and aL
    Tenânt's sole cost. and expense to rèstore, repalr and raplace all
    alterations, additions, improvenents, fixturesl signs ana ãquipneni
    instaLled by Tenant and proraptly reopen for busínets in the"Ðei¡isea
    Premises,
    ?enânt Ërgrêês that during any period of reconstruction Õr
    ¡epair  of the De¡¡lsed Prenises it uilt continue the op€rât.ion of
    its business withln the Demised prernises to the extent practicable.
    During the period from the occurrence of the casualty until
    Landlord/s repairs are conpleted, the Base Rent shall abate
    proportionately during the period and to the extent that the
    Demised Prernises are unfit for use by Tenant and not actually used
    by ?enant in the ordinary conduct o¡- its business.
    No darnage or destruction to the Demlsêd premises shall
    alrow lenant lo surrender possessi.on of the Deroised premises or
    affect Tenant's liabi.lity for the palrnent of rent or any other
    covenant herein contained, except as nay be specifically p=roviaea
    in Èhis Leasê. Landlord shall not be obligaÈed to commênce any
    repair, restoration or rebuilding until insurance proceeds arè
    received by Landlord, and Landlord's obligations hereuáder Ëhal1 be
    li.nited to the proceeds received by Landlord under its insurance
    poJ"icy. .In the event the Þenlsed prernises shall be darnaged, in
    whsle or in substant.ial part, v¡ithi.n the last 24 rnonths or the tern
    of thi's Lease' or any ext.ension or rener¡al thereof, Landlord and
    ?ênant shall each have the option, exercisabte within thirty (30)
    days foltowing sueh damage, of terr¡inating this Lease, effective as
    of the dat,e of nailing notice thereof.
    .ARTTCLE XV].
    Section 16.t. Conde¡r.rnation. f f more than thirty (30t)
    percent of the f100r area of the Denised premises should bè taken
    for åny public or quasi-public use under äny governmental law,
    ordinanee.or reguration or by right of e¡ninent ão¡nain or by private
    purchase in rieu thereof, this Leåse shatl terminate and-tÍre rent
    shal1 be abated durÍng the unexpired portion of this Lêase,
    effective on the date physical possession is taken by thê
    condemning authority.
    If less than thi.rty (30*) percent of the floor area of
    thê Denised Pre¡nises should be Èaken as âforêgåid, this rJeåse shal,l
    not terminate; hovever, Èhe Base Rental payable hereunder during
    the unexpired portion of this Lease shall be reduced in proportioñ
    to the area taken, effective on thê date physical possession is
    taken by the condenning authority. Following such partial taking,
    Landlord sharl rnake all necessary repairs or âlterations to the
    renraini.ng prenises in order to ¡nake the re¡naini.ng portions of the
    Demised Premises an architectural who1e.
    whêthèr or not any portion of tÌ¡e Þenised premises should
    be taken as aforesaid, Landlord shaLl have the election to
    terminate this Lease or to continue this Lease in effect in the
    event that buildings containing twent,y-five percent (259) or more
    of the floor area of the Shopping Center should be taken as
    aforesaid.
    section 1e.à. Takinq of cpn¡non Area. rf any part of the
    Cômmon  Area should be taken as aforesaid, this Lease sha1l not
    terrninate, nor shall the rent payable hereunder be redueed, except
    that elthar Landlord or tenant may lerninate this Leasê if the arèa
    of the Cornnon Area re¡oaining following such taking plus any addi-
    tional parking area provided by Landlord in reasonatie proxirnity to
    P:\1..9$lú¡4.Ilili                15                       PLAINTIFF EXHIBIT   1
    Clear Lake (2)
    oo09r8
    ..r
    il;' ùÌ
    the shopping center vithin ninety (90) days after the date of any
    such takÍng shall be less than eighty (sOj percent of the area oi
    the cÕmmon Àrea immediately prior to the taking. Àny election to
    terminate this Lease in accordance with this providi.on shall be
    evidenced by written notice of terurination delivered to the othEr
    pôrty no soonêr than ni-nety (90) dðys nor later thân one hundred
    twenty (120) days after the date physical possession is taken by
    the condenning authority.
    Sgction L6,3. Conpensation. Àll corrrpensation awarded
    . a_ny taking (or. the proceeds of private sale in li"eu thereof)
    the Demísed Premises or Cornmon À_rea shaLl be the proparty of
    !9r
    of
    Landlord, and îenant hereby assigns its int,erest in any such iward
    to Landlord; provided, howaver, iandlord shal1 have no interest in
    âny award mâde to Tenant for Tenantrs moving and rel0cati,on
    expenses or for the loss of Tenant,s fixtures and other t,angible
    pêrsonal property íf a separate al¡ard for such ite¡ns is r¡ade to
    Tênânt.
    ARTICLE XVI:.
    Section J.7,,..J.. Àgeiqnnent And S$btet,ting. Except äs
    expressry pernitted under the terrns hereof, renàn{ shall not ássi.gn
    o¡: in âny nanner transfer this Lease or âny estat,e or intereåt
    therein, by operation of law or otherwise, or sublet the Ðenised
    Premises or any part thêreof, or grant any license, concession or
    other righÈ of occupancy of any portion tf the Demised premises
    wíthout the prior written consent of Landlord, which consent shall
    not be unreaeonably withheld or delayed. upon any violation of
    thís provision, this Lease shalL terminate, ãt r,andtordrs option.
    cönsent by Landlord to one or nore assignments or sublettinqi shall
    not operate as ê waiver of Landlord,s right.s as t,o any suËeequent,
    assignments and sublet,tings. Any permitted assignment, or subiease
    shåÌl be only for a purpose specified in sectÍon 1".1(n) hereof and
    f-or no oÈher.purpose. rn no event shall any assignment or sublease
    of the De¡nlsed prenises relieve or release Tenant. fron åny
    obrigations under thlg Lease. Landrord sbarl be pernitted tå
    enforce the provisions of this instrumênt agaìnst thé undersigned
    renant and/or any assignee without damand upori or proceeding in-any
    way agai.nst any other pêrson. rn detêrnini.ng wrrettrer to qfant itå
    consent to a proposed assignïient or sublease, Landlord shall take
    inÈo coneideraÈion, among other factors, {i} ÕbJective evidenee or
    lnformation concerning the flnansial conaitián of the proposed
    assignee or subtenant- (ii) the character and reputatÍon oi tne
    proposed assignee or subtenant, {iir) the business ex¡rerience of
    the proposed assignee or subtenant and (iv) the nature of the
    proposed use of the De¡nised premises ny ttre proposed assÍgnee or
    subtenant. Any requeÊt for Landlord,s consent to a pioposed
    aseiginnent or sublease shalr be accompanied by financial and
    operating infor¡nation with respect to the proposed assignee or
    suþtenant and such other infornation coneerning the proposed
    assignee or subtenant as Landlôrd may reåsonably rêguest. Tenant
    sha11 give Landrord written notice of renant's oLsirå to assi.gn or
    sublease (r'Noticê of Assignment"). Ländlord shall be deemed to
    have withheld its consent to such assignnent or sublease unless
    Landlord notifies Tenant, wiÈhi"n thirty days after Tenant,s Notice
    of Assignnent, of Landlordrs consent.
    Seçtíon L7,2.. Corporate or, partnershio Ovrnership. If at
    any tine during the prinary ter¡n of this Lease -o; any renerral or
    extengron thereofr-the person or persons h¡ho own a-rnajority of
    either the outstanding votíng eharès or partnership interests of
    Tenant at the time of the execution of t,his Lease ðease to own a
    rnajority of such sha.rês or interests (except as the result of
    transfèrs by devise or descent), the loss oi a majority of such
    shares or interests shal1 be dee¡ned an assignrnent of thiJ Lease by
    Tenant and therefore subject in all respects to the provísions oi
    Section lT.L above.
    P ri-et?lé44.I-,sE                16                      PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    000919
    i:]::
    i   '1.,   i
    ':.¡;'i
    . Section 17 . . C?nti.nuinq obliqations. l,Iotwithstanding
    _3
    åny assignment    or subletting, Tenant shalL áÈ all ti¡nes re¡uaiñ
    fu1ly responsible and liable for the pa)¡nent of Èhe rent or other
    charges l¡ereln specified and for cornpliance with all of its other
    obligations under thie Lease {êvên if future assignnent,s and
    sublettings occur subseguent to an asslgnnent or subLetting by
    Tenant, and regardless of r¡hether or no! Landlord,s approval- haå
    been obtained for sueh future assignnents and subletÈings).
    Moreover, in the evênt, that the rent.al due and payable dy '.
    subressee (or a co¡nbÍnation of the rental payable under such
    sublease plus any bonus or other consideration therefor or incldent
    thereto) Less alL reasonabre costs and expenses (including, without
    ri¡nitatÍon, renovation costs and brokerage cornmissions) incurred by
    lenant in consu¡nmating suêh sublease or assigrunent) exceeds thä
    rental payable under this Lease, or if with respect. to a pernitted
    assignrnent, permitted ricense or öther transfer by Tenant þernittea
    by Landlord, the consideration payable to Tenant by the àssignee,
    li.censee or other transferee exceeds the rent.al payãlle under-this
    Lea6ë, then Tenant shall be bound and obligated to pay Landlord.
    one-half of all such excess rêntal and other excess c-onèideration
    within ten (L0) days following receipt tbereof by TenånÈ from such
    sublessee, assignee, Iieeneee or othér t,ransferee, as the caae may
    be: Finally, in the event of any assignnent or subletting, it i;
    understood and agreed that a1I rentalË paid to fenan{ by an
    assígnee or subleesee shall, to the extent the same are, in €urn,
    due to Landlord hereunder, be received by Tenant in trust for
    tandlord, to be forvarded imrnediately to Landlord r¡ithout offset or
    reduction of any kind; and upon election by Landlord such rentals
    shall be paid directly to Landlord as specified in sect.ion 4,1 of
    this Lease (to be applied as a credi-t and offset to renantrs rental
    obligations).
    Section 17,4. Encu¡abraf¡ce. Tenant shall not mortgage,
    pledge or otherwise encumber its inÈerest in this Lease or in i¡re
    Denised Premises.
    Çection 17.5. Landlord's Otr'tion to Terninate. In lieu
    of consenting to an assignnent or sublease, Landlord ¡ray, at its
    option, within thirty days after Tenant,s Not,ice of AsËigrunent,
    termlnate this Lease and release Tenant fron any an¿ ali
    obligations accruing under this Lêase frön and after thã effective
    date of such ternination. Landlord shall qive to Tenant r+rritten
    notice of f,andlord,s exercise of this option ('rNotice of
    TerninaÈion"), and this Lease shall terninatè thirty (30) dàys
    after the NÕtice of Ter¡ninatíon (thê r'Effective Date ðf
    Terninatlonrt), and Tenant shal] be futly and conplet,ely released of
    aL1 obligations accruing under this Lease fio¡o anã after the
    Sffective Date of rermination. Tf Land.rord makes such election,
    Landlord shall be free to accept any proposed asaignee or subLeesee
    as the new tenant, in which case Landlord shaLl be ent,ít,ted to
    retain a1l consideration paid by sueh assignee or sublessee.
    Notwithstanding anything to the cont,rary contained in this section
    L7.5 or Section 1"7.1 above, Landlord sha]l not have the option
    hereinabove grant.ed to terninate this Lease ln the event of a
    proposed sublease of less tban the entire Denised premises;
    provided, ho!¡ever, the decision by Landlord as to lrhêther or not to
    grånt its consent to such proposed sublease, as required under the
    terms of section 1"7.1, shalr be vithln Landlord/s sole and absoluÈe
    discretion.
    Section 17,6. Àssiqnnent or $ublease Without Landlord's
    Çplse¡t.. Notv¡it,hËtånding anything to the contrary cont,ained in
    this Article XVII, Tenant shall have the right, without Landlord's
    copsent,, to assign this Lease or sublease the De¡nised prenises, in
    either case subject to all of the terms and provisions hereot, to
    any corporation, partnership or other entity controlled by, under
    connon control with or controlling Tenant or to any corporatíon,
    partnership or other entity succeeding to subst,antitlly al1 of the
    åssets of Tenant as a result of a consolidation, nergier or sale,
    and folÌowing any such assignrnent or sublease, tenant shall
    P:\l.tiEi I ôr{. l.Str.                       L'7
    PLAINTIFF EXHIBIT   1
    Clear Lake (2)
    ooo920
    ,,,;ìii.
    ::;l:.,ri;
    cónti.nue to re¡nain liable and obì.igated under all of the terms      and
    provisions of lhis Lease.
    sectiôn L7,7. Àssiqnment by,.Landlord, In the event of
    the transfer and asslgnment by Låndlord of its int.erest in this
    Lease and in the building containing the Þemised premises to a
    person expressly assurning Landlord's obligations under thj_s Lease,
    Landlord shall thereby be released fron any further obtigat,ions
    hereunder, and Tenant agrees to look solely t,o such suceeðaor in
    interest of the Landlord for performance of such obligations. Àny
    security given by Tenant to seçure perforrnance of Tenant,,å
    obligations hereunder nay be assigned and transferred by Landlord
    to åuch successor in interest, and Landlord shatl thereby be
    discharged of any further obli-gation relating thereto.
    ÀRTTCLE   XVTII.
    Sect.ion 18.1. Pêrsonal prÕþe..fþv tâxea. ?enant Ëha1l bê
    liable for and shaL] pay atl taxes, assessnents, charges, levies
    and other sums levied by any governraental authority or olher taxlng
    authority aEainst lenant,s leasehold interest ánd all personaí
    property and trade fj.xtures placèd by Tenant in the De¡oised
    Premises. 1f any such taxes åre levied against Landlord ôr
    Landlord,s property and if Landlord elects to pay the same or if
    the assessed value of Landlord's property is increased by incrusion
    of personal property and t.radê fixÈures placed by Tenant j_n the
    Demised Prernises and Landlord el.ects to päy the taxès baÊêd on such
    increase, Tênant shall pay to Landlord upon denand that part of
    s¡.¡ch taxes for q¡hich Íenant is primarity liable hereunder. t{ithin
    twenty (20) days after notice from l,andlord, Tenant, shall furnish
    to Ländlord a true copy of receipts evidencing the payment of such
    personal property taxes and assessments
    .     Sect,ion L8.2. Rêal Estq!.e Taxes, Except as provided in
    Sections 18.1 and 18.3, IJandlord shall pay or cauãe to Ée paid all
    general. real estate taxes and governnental charges therãinafter
    collectivery referred to as the ,General Taxes*) revied against the
    Shopping Center for eaeh real estat,e tax year. If Landlord is
    required under the terms of any nortgage or deed of trust covaring
    the shopping center to deposit into an escror.r or other account on
    a monthly or other periodic basìs Èhe GeneraL Taxes assessed
    against, the Shopping Center, Tenant shall pay to Landlord in
    nonthly install¡nents, on the sam€ date6 as and in addlÈion to the
    BaËe Rentâl and other charges prescribed in this Lease, an amount
    equal to one-twelfth (1/12th) of Tênantrs share of the ceneral
    'Iaxes, as estimated by Landlord in good faith fro¡n time to time.
    As: soon as practÍcable after the cloÊe of each calendar year during
    the Lease Terrn, Landlord shal1 furnish a statement in r¡ritj.ng tó
    lenant specifyi.ng the act,ual amount due by ?enant in respec€ of
    Tenant's ehare of the Generâl Taxes. In the event the total of thë
    rnonthly payments theretofore made by Tenant under this Section 1g.2
    for such year, if any, exceeds the actual amount due, thên thê
    excess shalI bè applÍed pro rata as a credit on the nonthly
    installments thereafter cornj.ng due under this Section L8.2. In the
    evenÊ the total of the nonthly paynents theretofore ¡¡rade by Tenant
    under t,his Section 18.2 for such year, if any, is less thân the
    actual anount duê, or¡ if Tenant is not required under the terns of
    thi"s Section 18.2 Èo pay lenantrs Share of the General Taxes on a
    monthly basis, any suðh-deficiency or the full amount of Tenant,s
    Shâre of the ceneral laxes, as the case may be, shall be due and
    pàyäble by lenant to Landlord within ten lio¡ days after fenant's
    receipt of such statement. During âny year which shall be lees
    thðn ô fu1l tax year, ?enânt/s share of the cenerål Taxes shâll bê
    prÐrated on a daily ibasis between the parties to the end that
    Têhant sha11 only pay for taxes attrlbutable to the portlon of the
    tax year occurring within the Lease TerÌn.
    Section_19,3. Substitute and Additional Taxes, If at
    any time during the prirnary terrn of this Lease ôr any renewâl or
    extensiôn thereof a tax or excise on rents, or other tax hou/ever
    P:il-99?   1   64J.   tsg                     tB            PLAINTIFF EXHIBIT I
    G¡ear Lake (2)
    o0092r
    ':.:
    /   . :'::
    described (except any franchise, estate, inheritance, capital
    stock, income or excèss proflt.s tax inposed upon l,andlorá¡ is
    Levied or aciÊessêd against.Landlord by any 1a!¡ful taxlng authority
    on âccount of Landlord's interêst in Èhis Lease or t,he rents ol
    other charges reserved hereunder, as a substitute in r{¡hole or in
    part for, or in addition to the General Taxes described in section
    18.2 above, tenant agreês to pay to Landlord upon demand, and in
    addition to the rentals and other charges prescribed in this Leasê,
    the amount, of such tax or excise. In the evênt any such tax or
    excise is levled or assessed directly against renanC, then Tenant
    shäll be responsible for and shall pay the sarne at such tines and
    in such üanner as the taxing auttrority shal.l require.
    S,:ectloï 18.4. fnsurance. Tenant shall pay to Landlord,
    upon demand, and in addi.tion to the rentals and other chargeå
    prescribed in this Lease, Tenantrs Share of the premiuns for aIl
    fire and extended coverage insurance, boi.ler iisurance, public
    liability and property danage insurance, rent insurance and other
    insurance which, from tine to tirne, Landloril is required by any
    nortgagee, lender or insurancê conpany or underwriterto carry wltir
    respect to thê shopping center or r.¡hich is customarily carried by
    ol.rners of conparabre shoppíng centers from time to tir¡e in narriË
    Cciunty, ?exas (hereinafter collectlvel.y referred to asi the
    rr{nsurance Pre¡niumslt). rn no evênt shalL the fire and extended
    covêragie insurance maint.ained by Landlord on the shopping centêr bê
    less than eighty percent (90*) of the replacernen{-vaiue of the
    buildi-ngs comprísing the shopping center. For purposes hereof,
    premiums paid for insurance poli.cies havíng pori.cy years which då
    not coincide with carendar years sharl be þioratãd on a per diem
    basis for each calendar yeãr affected, and        total"premiuns fôr
    policies issued for rnore than one year wiJ.l be prorãted equally
    over the nu¡nber of years for the tern of such policies, regardtesl
    ôf differences in prerniurn amounts actually paid during ôny
    particular year or years of such term. rãnairt shatl påV iå
    Landlord i-n monthly instarJ.ments, on the same dates as ãnã in
    addition to the Base Rental and other chargas prescribed in this
    Leâse, an amount equal to one-trÀrerfth (L/tath) of Tenantrs share of
    the lnsurance Premiums, as est,imated by Landlord in good faith fro¡n
    t¿r¡ne to ti¡ne.    As soon as practlcable af ter the close of each
    calendar year during the term hereof, Landlord shall furnish a
    statsment, in writing to Tenant specifying the actual a¡nount due by
    Tenant in respect of renant's share of rnsurance Þreniu¡rs. rn the
    event the total of Èhe monthly paynnent,s theretofore made by Tenant
    ur¡der thls Section 18.4 for such year exceeds the actuai anount
    due, then the excess sharl be applied pro rata as a credit on t.he
    nonthly i"ngtallrnents thereafter coming ãue under this section 18.4,
    rn the event the tot.al <¡f the monthly payments theretofore made by
    Tenant under this seçtion l-8.4 for such year is less than thã
    actual anount due, any such deficiency shall be due and payable by
    Tenant to Landlord within ten (1o) days âfter Tenant,s ieãeipt of
    sugh sÈatement. DurÍng any part of the Leasê Tern which shail be
    leðs than a fuLl policy year, Tênant,s share of the Insurance
    Premiurne shal1 bê prorated on a daily basis betr'¡een the parties t.o
    Èhe end that renånt shall only pay for thê rnsurance premiums
    attributable to the portion of the policy year occurri"ng within the
    Leasê TerìÍ.
    ARTICLE XIX.
    Section"._lg. l. Bankruptcv. If Tenant shall become
    bankrupt or insolvent or unable to pay i.ts deþts as such become
    due, or file any debtor proceedings; or if Tenant shall file or
    have filed against it in any court pursuant to any statute either
    of the lJnited States :or of any sta{e a petition in bankruptcy or
    insolvency or for rêorganizaÈion or for the appointnent of a
    receiver or trustee of. all or a portion of Tenantri property, or if
    Tenant makes an assignment for the benefit of creditors, or
    petitions for or enters into an arrangement, then, this Lease shatl
    terminate and Landlord, in addition to any other rights or remedies
    it nay have, shall have the in¡nediate fignt of re-entry and rnay
    P::,1.99?lú14-LSe                     19                PLAINTIF'F'EXHIBIT I
    Glear Lake (2)
    000922
    ::r.,;:
    $
    reÌìove all persons and property fron the Denised pre¡¡ises and such
    property rnay be removed and stored in a public warehouse or
    elsewhere at the cost of, and for the account of Tenant, all
    withouÈ service of notj.ce or resort to leqal process and wj-thouÈ
    belng dee¡oed guilty of trespass, or beconinq fiãnfe for any loss or
    díi¡ûage whleh nay be occasioned thêreþy.
    Seclion 19.2. Fvents...,ç.f Default. The ôccurrênce of any
    one or more of tbe follo¡ring events shalL constitute an ilEvent oi
    Defaultil by Tenånt:
    (1) Failure to pay when due any install¡nent of rent
    or any other obligation hereunder ínvolving the pa)¡ment
    of noney., if the failure continues for ten (10) days
    after written notice to Tenant of such failure, but in no
    event shall Landlord be obligated to give nore than two
    such notices j.n any tr.relve ¡nonth period.
    (2) Failure to perform or observe any terh,
    provision or covenânt of this Lease to be performed or
    observed by Tenant, other than as described in subsection
    (1) above, if such failure conèinues for thirty {30) days
    following written not,j-ce to fenant of such failure; or,
    if euch failure cannot be reasonably cured within said
    thirty day perlod, Tenant shall not have so¡nmenced to
    cure such failure u¡ithin said thirty day period and shall
    not therêafter (and i.n any event r¿ithin ninety days)
    continuouEly and dlligently in good faith proceed to cure
    such fai.lure.
    Seçtion 19.3. Ländlordls Remedi.e-g. IJpon the occurrence
    of äny one or more of lhe foregoing Events of Default, without
    further notice or de¡nand of any kind to TenanÈ or any other party,
    tandlord shall havê the opt,ion to pursue, in addition to and
    cuÍru1ätlve of aLI other legal or equiÈable renedies now or
    hereafter available, the follor{lng described remedies:
    (1) Landlord may elect t,o terninate this Lease and
    the têrn created hereby, in i¡hich event tandlord nay
    i¡unediately reposs€ss the Demised premises and Tenant
    shall pay at once to Landlord, as liquidat.ad datiläges
    (dlscounted as herei.nafter provided), the sum of ¡noñey
    equal to t,he rent provided in thís Lease Èo be paid by
    Tenant to Landlord for the balance of the stated ternr of
    this Lease, together with such expenses as Landlord rnay
    incur for legal expenses¡ brokerage fees and in puttÍng
    the Dernised Prer¡ises in good order and preparing the sane
    for reletting, Iess the fair rental value of the Denlsed
    Premises for the Éame period. Such liguidated damages
    sball be discounted to present value at the rate of six
    percent (6*) per annum.
    (2) Landlord nay elect to termínate Tenant,s right
    ôf possession of, thë Dèmised Prernises without ter¡nination
    of this Lease, in r¡hích event Tenant agrees to surrender
    possession and vacate the Denised premises imruediately
    and deliver possession thereof to Landlord, and Tênant
    hêreby granls to Landlord fu1l and free license to enter
    into and upon the De¡nised Prearises, or any part. therèof,
    and to expel or remove Tenant and äny other person, firm
    or corporatlon who nay be occupying or within the Demised
    Prernises or any part thereof, and remove any and all
    propert,y therefro¡n, using such force as ftay be necessary,
    vitþout terrninating this Lease or releaeing ?enant in
    ¡¡ho1e or in part from Tenantrs obligation to pay rent and
    perforn any of the covenants, conditions and agreements
    tc¡ be perforned by lenant, as provided in this Lease,
    r¿ithout. bel.ng deemed in any manner guilty of trespass,
    eviction or forcible entry or detainer, and without
    relinquishing Landlord's right to rentaL or any other
    P:\Lqi?lú4.[^CÊ                       20                     PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    o00923
    ,i:-l+,                     . iÎ':,
    -'.¡;:i'                    !i5f
    right of Landlord under this Lease or by operation of
    1aw.
    (3) Landlord may alter locks   and     other security
    devises at the Denised Prernises.
    fn the event Landlôrd exercj-ses its rights to alter the
    locks at the De¡nised Premises, Landlord ehaIl onl-y be requi.red to
    provide lenant with a new key during Landlord's regular businese
    hours, provided that in no event shalt Landlord be required t.o
    provide Tenant a nev key until such tj-me as Landlord cures al.}
    default,s under the Lease and/ if requj.red by Landlord, Tenant pays
    to Landlord a seeurity deposit in the anount equal to trdo ti¡ues the
    Ëasê Rent then due hereunder. Tenant hereby waiv€s {to the extent
    legally permissible) åny and all notices otharwise required under
    common law or under chapÈers 24 or 92 of thê Texas Property Code,
    a$ samê presently exists or fûay be hereafter anendêd (or any
    subseguent sinilar statute relatíng to notice prior to instituting
    such action or proceeding). To the ext,ent of any inconsistency
    betv/een this Lease and the provi,sions of Section 92.008 of the
    'Îexês Propêrty code (as it may be hereafter amended), it is the
    agreêmênt of the parties tbat the terrns and provlsfons of this
    L€ase shâll prevail.
    Upon and after entry into poesessj.on, with or i.rlthout
    terrni"nating this Lease, Landlord nay, but shall nôt be obligated
    to, relet all or any part of the Demised Pre¡nises for the account
    of Tenant for such rent and upon such termg and to such person,
    fir¡n or corporation and for such use or uses and such period or
    periods as Landlord, in Landlord's sole discretion, shall deÈer-
    nine, and Landlord shall not be required t,o accept any prospecti"ve
    lessee offered þy Tenant, or to observe any instruction givên by
    Tênant about such reletting, or t,o do any act, or exercise any care
    or diligence wiÈh respect to such reletting or to the nit.:gation of
    danages of Tenant. For the purpose of such reletting, landlord may
    decorate or make repairs, changes, alterations or additlons in or
    t<¡ the Demised Prenises to thê extent dee¡ned by Landlord desirable
    or necessary. If the eonsideration col.lected by Landlord upon any
    such reletting for Tenant/s acsount is not sufficiênt to påy, aÉ
    liguidated danages, the rental reservêd in t,his l,ease, plus the
    cost of repairs, alterations,           addi.tions, redecorating and
    Landlord's other expensès, Tenant agirees to pay to Landlord the
    def iciency upon denand.
    The servÍce of any notieê, denand for possession, notice
    t,hat the tênancy hereby created will be ter¡ninated on thê date
    therein named, institution of any action for forci.ble detainer or
    the entering of a judgment for possession i.n such action, or any
    other act or act,s resulting in the ter¡nination of Tenânt's right to
    possession of the De¡nised Prenises, shal1 not relieve lenant fron
    Tenant's obligations to pay the rent hereunder durlng the balance
    of the terft or any extension thereof, except as therein expressly
    provided. Landlord may eollect and receive any rent due from
    Tenant, and the payment thereof shall not constitute a waiver of,
    or affect, any notice or denand given, suit insti.tuted or judgrnent
    obtained by Landlord, or be held t,o waive, affect, chånge, nodify
    or ålter the rights or remedies which Landlord has in equity or at
    Iaw by virtue of thls Lease.
    Thê äcceptance of liquidated damages by Landlord under
    any of the provisions of thiÊ Lease sha1l not preclude Landlord
    frbm the enforcenent of any of t.he covenants or agreements herein,
    nor shall any other act whích infers recognition of the Èenâncy
    operate as a waiver of Landlord's right to terminat,e this Lease, or
    any extension hereof/ior operâte as an extension of thís Lease.
    Landl"ord, at any tj-me after the occurrence of an Event of
    Default, without being under any obligation to do so and r,¡ithout
    thþreby waiving such default, may cure the default for the account
    of Tenant (and enter the De¡nised Premises for such purposê), and
    F   \t9v¡ltr{.tsË                    2L
    PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    o00924
    i,¡i:ri
    tiari:*           ili¡i\r'j:.j
    -t;iF
    ':¿!r
    thereupon Tenant shall be obligated and hereby agreeê to pay t,o
    Landlord, upon demand, all cost.s, expensês and dlsbureã¡trènts
    (including reasonabl.e attorneys' fees) incurred by Landlord in
    curlng such default, tögether t¡ith interest thêreon Jt the rate and
    in the manner hereinafter specified in Section 27,L3,
    For all purpoães of this Artíc1e XIX the rentaL agreed to
    be paid by thê lenant or the amount of rental payable by the Tenânt
    as liqu-l-dated danrages or otherwise, shall be deerìed to be thê Base
    Êênta1 (as specified ln Section 1.1(h) of thi.e Lease), all ite¡ns of
    additlonal rental (including, without Linitation, the charges for
    ¡nàintenance of the Comnon Area, as specified in Section 1.1(i) of
    thie Leaee), and all other suns required to be paid by ienanl
    pursuant to the Èerns of this Lease. All such sums shall bê
    computed on the basis of the averagê Ìrohthly anount thêreof
    accruing or ¡¡hich was payable during the irn¡nediately precedj"ng
    z4-month period, except that if it becomes necessary to cornpute
    such rental before such 24-nonth period has occurred, then the
    average monthly amount thereof accruing during such shor!èr period
    shall be the basis of such computation.
    In the event, Landlord shalL have taken possession of the
    De¡nised Prenises pursuant to the authority herein granted, then
    Landlord shall" håvè the ri.ght to keep in place and usê al,L of
    Ténant,'s fixtures, furniture, equipnentr inprovements, additions,
    alterations and other personal property at all times prior to any
    fereclosure thereon by Landlord or repossession thereof by any
    third party having a prior lien thereôn or cLaim thereto.
    Landlord may restrain or enjoin any b¡each or threatened
    breach of any eovenant, duty or obligat,ion of Tenant herein
    ôontðined wilhout the necessity of proving the inadequacy of any
    1ega1 rerüedy or irreparable har¡1.- The renedles'òf l,andlora
    hereunder shall be deened eumu.Lative and not exclusive of each
    other.
    In the event that Landlord institutes any action or
    proceeding to enforce payment of a nonetary sum due hereunder or on
    account of any other breach or default by Tenant, in the performance
    of, its obligations hereunder and is the prevailing paity in such
    acti<¡n then, in such event, Tenant wl11 pây to Landlord alI
    reasonable costs incurred by Landlord in prosecuting such actiÕn,
    including reasonable attorneygt fee6.
    SecÈion 19.4. le,nan!'S Remedies. Except as provided
    elsertrhereherein, in the evenl of any default, by lJandlord, tenantrs
    exclusj.ve remedy sha1l be an action for darnages (fênånt hereby
    waiving the benefit of åny laws granting it a lien upon the
    property of Landlord and/or upon rent due Landlord), but, prior to
    any such action Tenant wíll give f,andlord gritten notice speeifying
    such default with particularity, and Landlord shall thereupon have
    twenty (20) days, in which to colmrence to cure any such defaulÈ.
    Uriless and until Landlord fails so to conmence to eure any defðult
    af,ter such notice or having so co¡uuenced thereafter taí1s to
    exercise reasonable diligence to conplête suöh cure, Tenant shall
    nût have any renedy or cause of action by reason thereof. Ä11
    obligatíons of Landlord hereunder wíIl bê çonstrued as covênants,
    nÒ conditions,' and all such obligations       will be binding upon
    Landlord only during the period of -its ownership of the Sfr-oppi.nq
    Center and not thereafter. In the event that Tenant institutes any
    action or proceeding on account of any breach or default bt
    Landlord in the performance of its obligations hereunder ând is thè
    prevailing party in such action then, in such event, Landlord will
    pay to Tenant all reasonable eosts incurred by Tenant in
    prosecuting such astion, including reasonable attorneys, fees.
    Notü/ithstanding the provisions of Seeti.on 22.3 belor,¡, in the event
    Tenant receives a fina1, non-appealable judgment against Landlord
    assessing danagês, r,¡hich Landlord fails or refuses to pay within
    thirty (30) days after receipt of demand fron Tenant, then Tènant
    shall have the right, to recover the sane, together with int,erest
    t'r \t-997   !   é44 . L.SD             22
    PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    000925
    ;.tl.tt,
    '4r"J
    lhereon as provided for in said judgrnent (collectively,           the
    *Judgment Arnountrr), by offset against Èhe Base RêntaL theieafter
    becorning due (and which nay then be unpaid) hereunderr. provided,
    hô!¡êvêr, in no evenÈ shal1 the amount so offset in any month exceeá
    twenty-five percent (2S*) of the Baee Rental payãOte for such
    month, unless such li¡¡itation r¡ould render it iraposslble for Tenant
    to recover the ,Judgment Ànount on or before the explration     of
    primary Lease ?er¡n in which event Tenant shall -be entitl"ed the   Èo
    offset against Base RentaL each nonth the anount equar to lhe
    Judgenent Amount divided by the number of ¡uonths then re¡naÍning in
    the prirnary Lease Tern.
    ÀRTICLE XX.
    Section   _?_0,   1,. So long as Tenant is not in default
    hereunder and is actually occupying and using the Denised premÍses
    for the sale of the primary per¡nitt,ed Itlerchandise, Landlord agrees
    that it shall not lease any portion of the Shopping Center or
    pernit the use of any portion of the shopping cenËèr for the sale
    of the Prirnary Permitted Merchandise,. provided, that thís
    restriction on leasing (and resulting exclusive in favor of renant)
    shalr not be deemed breached by Landlord to the extent {but nå
    further) ä tenant under any rêase of space in the shopping-center
    as of the date hereof has, as of the date hereof, th; right
    (whêther or not, sueh right is exerei.sed) under such lease to úse
    such tenant/s premises for the operation of a business setrlng all
    or a portion of the primary permitted Herchandise. Not¡¡ithsta;ding
    the foregolng, it sha1l not be a brêâöh or violation of the abovã
    described restríctlon lf any tenant noÌ{ or hereaft.er leasing space
    in thg Shopping Cent,er uses such tenant's prenises for the
    operation of a business selling ã11 or any port,ion of t,he prirnary
    Pernltted Merchandise in no more than the teÀser of (i) twenty-fivå
    përcènt {25t) of Euch Tenant,s premlses or {ii) 2,50ó squarè teet
    of such tenantrs prernises. In addition, for the purpose of the
    restricti-on (and resulting exctusive in favor of tenand) contained
    in this Artícte xx, Primary pernritt,ed llerchåndise shall not inctude
    1j-nens, pillons; bathroom accessories, furniture, palnt,, hardrrvare,
    larnps and frêsh flowers. ?enant acknowledges that ror tire purposeå
    of the foregoing restriction and arl other provisions -of t.t¡is
    Leåse, Èhe term 'ishopping centert does not includê the tract of
    land located southeast and contiguous to the land described on
    Exhibit 'Àx attached hereto and the building l"ocated thereon
    currêntly occupied by wal-uårt,.
    ARTICLE XXI.
    . Section ?å*.1 . Surrender of De¡.¡r,iged preroises. At the
    expiration. or ternination of thie Lease, wnetne-Uy :_apse of time
    or otherlrise, Tenant sharl surrender the De¡oisãd p-re¡niseg to
    tandlord in the sane condition of thè Demised premlses on the date
    hereof (excepting reasonable r.¡ear and t,ear, losses reguired to be
    reEtored by Landlord pursuant to Section 8.1, RrtiõIe W, and
    Artíere xvr of this Lease. and damage fron condennatíon or casua).ty
    not required to be repai.red by Tenant under the terns of thii
    Lease) êxcept for al.terations whi.eh renant has the right   or måy be
    required to rênove under t,he provisions of Section -g.t. Tenant
    also shall surrender all keys for the Ðernised premi.ses to Landlord
    at the expiraÈion of this Lease {but no such surrender shall be
    deened to be an acceptänce by Landlord of surrender of the Demised
    Premises)- and sharl inforrn Landlord of aÌ1 co¡nbinations on 1ocks,
    säfes and vaults, if any, in the Þemised premises. Landlord can
    eìect to retain or dispose of in any manner any alterations or
    othêr property that Tênant does no1 remove fron the Demised
    Premises on expiraLion or terrnination of the terur of this
    givlng at least ten (1o) days/ notic€ to Tenant. Title to LeaÊe     by
    any sucir
    alterations or other property Èhat Landlord elects to retãin or
    dispose of on expiration of such ten-day period shall vest in
    Landlord. TenanÈ waives â1r claims against Landlord for any
    dåñagês resulting fro¡a Landlord/s retention or dispositi.on of any
    P:\19971ó44   l-\Ë                              23
    PLAINTIFF EXHIBIT I
    Glear Lake (2)
    000926
    ::{11¡
    r'llll::                    îJåÌiI
    such altêrations or other property. fenant, shal1 be liable to
    Landlord for Landlord,s cösts for storing, re¡noving and disposing
    of any such alterations or other pröperty,
    Seeti.on 21.2, Holdinq Over. In the event Tenant rehains
    in possession of the De¡nised Preníses after the expiration of t,his
    Lease and without the execution of a nevJ lease, it sha1l be deerned
    to be occupying said premises as a tônånt fron month to nonth at a
    rental equal to the rentâ1" herein provÍded plus fifty percent (S0*)
    of such amount and othèrwise subject to all the eonditions, provi-
    sions and obligat,ions of thj-s Lease insofar as the same are
    applícable to a ¡nonth to ¡nonth tenanÇy. Thê above described
    tenancy fron nonth-to-nonth may be t,er¡ninated by either party upon
    thirty (30) days q¡ritten notice to the other.
    ARTICLE XXTI.
    geët,lon 22.L. Suborqination. Subject t,o the condition
    precedent to subordination hereinafter sêt forth in thi.s Sect,ion
    22.1, Tenant aceepts this Lease subJect ãnd subordinat,e to any
    mertgage, deed of trusL ôr other Lien presently existlng or
    hereafter placed upon the DemÍsed Premises or the Shopping Centêr
    äÉ a whole, and to any renel¡als and extenÊions thereof. fenant
    agrees thät any such mortgagee shall have t,he rlght at any tine to
    subordinate €¡uch ¡nortgagê, deed of trust, or other lten to this
    Lease; provided, however, notwithstanding tl¡at this Leasê ¡nay bê
    (ör made to be) superior to such rnortgage, daed of truat or other
    lien, the provisions of such ñortgage, deed of truat or other }ien
    relâtive to the rights of the nortgagee lrith respect to proceeds
    arising fron an eninent domain t,aking (including a voluntary
    cÕnveyancê by Lândlord) and/or arising fron insurance payable by
    rêason of danage to or destruction of the Denj.sed premises shall be
    prior and s\¡perior to any contrary provisl.ons contained in this
    instrument with respect to the payment or usage thêreôf. Ländlord
    is hereby irrevocably vested r¡rith ful] pover and authority to
    subordinate this Lease to any nortgage. deed of trust or other lien
    hêreâfter placed upon the Ðe¡nised Pie¡níses or the Shopping Center
    as a whole, and Tenänt âqrees upon denand to.execute such further
    instru¡nents subordinating this Lease as Landlord may requesti
    provided, hoüreverr as a condition precedent to the effectivenèss of
    any Ëuch subordination, the holder of any such rnortqage, deed of
    trust or other lien t,o which thi6 Lease is to Þe subordinated 6haLl
    agree pursuänt to a writEen agrêement delivered to ?enant that so
    long as lenanÈ is in cornpliance r*ith the provisS.ons of this Lease,
    Tenant.'s uʡe and occupancy of the Demised Prenises and its rlghts
    under this LêaEe shall not be dÍsturbed or affected by -any
    fqreclosure or other aetion (or by the delivery or acceptancå of ã
    deed or other conveyance or tränsfer in lieu tñereof) wllctr nay be
    instituted or underÈaken i"n order to enforce any right or retnedy
    availåble to the holder of such instrument or any other docunent
    evidencing or given as security for the transaction secured
    thereby.
    Section 22.2. Noticê to Horþ..qêgee of Trandlord,s Def.Rqlt.
    At any tirne when the holder of an outstanding r*ortgage, deed of
    trust or other lien covering Landlordfs interest in the Demised
    Premises has given Tenant written not.íce of i.ts interest j.n this
    Lease, fenant may not exercise any rernedies for default by Landloral
    hereunder unless and untiL the holdêr of the indeþtedness secured
    by such mortgage, deed of trust or other lien shall have receivêd
    r¡rr:itten notic€ of such default and a reasonable time for curing
    such default shall tbereafter have elapsed, which shall not be less
    than thirty (3û) days-
    Section.?2.3. Rig.ht to EstpÞþel cer!,if,icatgs.  Each
    party, r,rithin ten (10) days after notice fron the other party,
    shall execute and deliver to the other pårtyr in recordable forn,
    a certificaÈe stating that this Lease is unnodified and in ful.1
    fotrce and effect¿ or in full force and effect as modified, and
    stati"ng the modifications. The cerÈificate also sha11 state the
    l,ìì1.t971614. LSA                   ¿c                   PLAINTIFF EXHIBIT   I
    Glear Lake (2)
    ooo927
    í;.-iì:i
    ,ùi5j'                      .:.1\q
    anount of Base Rêntal, the dates to which rent and other chargês
    have been paid in advance, if any,. ând the amount of any security
    deposit or prepaid rent. The cêrtificate also Êhâll staÈe r,rhethel
    or not, to the best knowledge of the signer of such certificate,
    the other party is in default in perfornance of any covenant,
    agreenent or condition contained in this Lease, and, if eet
    specifying each such default of which the signer nay have
    knowledge. Failure to dêIj.ver the cêrtificaÈe r*ithin thê tèn {10)
    days shal1 be conclusíve upon the party failing t,o deliver the
    certificate for the benefit, of the party reguêsting the certificate
    ånd âny succesÊor to the party requesting the certificate,       that
    thie Lease is in fult force and effect and has not been rnodified.,
    excepf_ as may be rêpresented by the party requesting the
    certificate.
    ARIICLE XX1IT.
    Section 23 . 1. oJtion tÕ Exf,end. Subject to t,he
    cônditions herein stated and provided that Tênant is not then in
    default in t,he payrnent of rental or any other amount or in the
    perforrnance of any other obligation of Tenant pâyable or perforrn-
    able under the ternÉ of this Lèa€¡e, Tenant shall have the right and
    option to extend the ter¡n of this Lease for for¡r (4) additional
    pe?iöds ôf five (5) years eôch (the trExtension periodsr). Tenântrs
    right to exercise Èhe option herein granÈed (the ilÞxt,ension
    Option") for. each Extension Period is subJect Èo and conÈingent
    upon the satisfaction of the following condit,ions:
    (1) Tenant shall not havg assigned this Lease or
    any interesl hereln or sublet all or any portfon of the
    Dernised Premises during the primary Èer¡¡ or any previous
    Extension Period except ås exprêssly perlnitted under the
    terrns hereof; and
    (2) Tenant sha1l have gÍven to Landlord written
    notice of Tenantrs election to exercise the first, or any
    subsequent. ExtensiÕn Option not later than nine (9)
    months prior t,o the explration of the original term of
    the Lease or the then current Extension Feriod, as the
    case nay be. Unless Tenant shall have given Landlord
    tinely noticê of j"ts el"ectíon to exercise the Extension
    Option as required above, it shall be deened that Tenant
    has noÈ exercíEed such option and the term of this Leasè
    sha1l ter¡¡inate ât the end of the original term or the
    then current Extension Period, as the case may be.
    In the event Tenant exerci-ses the Extension Option for any of the
    Extension Periods, alL of the terns and provisions of thie Lease
    which âre applicable for and during the original term shall apply
    during the Extension periods except that there shall be no furlirei
    opti.ons to extend the Lease Term at the expiration of, the fourth
    Ext,ension Period.      Further, the Base Rental during thê first
    Extension Periods shaIl be deternined in accordanðe with the
    provisions of Section 1.1(h) hereof. All references in this Lease
    to ÍLeage Termrr shall refer to the oríginal term and the four
    Extension Periods, if lhe Extension Optlon is effectively exercised
    foi such Extension Periods or any of thêrn, in accordance i¡¡ith thê
    provisions hereof
    ARTICLA XXIV.
    Section 24._1. Definitions.        For purposes of this
    Artícle, the following terrns shall have the following meanings:
    (i) ttHazardous Materialsl shall nean any substance
    v¡hich novJ or hereafter is regulated by any covernmental
    Requirement (hereínafter defined) including, but, not
    .li¡nit,ed to {i) any rrhazardous !¡asteil as defined by the
    Resource Conservation and Recovery Act of 19'76, as
    P:\L9971ú¡4.f   ^CÊ                    25                  PLAINTIFF EXHIBIT I
    Glear Lake (2)
    ooo928
    .',:r",
    l.,:i,$
    '*;r;                        i¿il*
    amended, ând any  regulations pronulgat.êd Èhêreunder; (ii)
    any rrhãzardous substancefr as defined by the Conprehensive
    Environmental Response, Cornpensation and Liability Àct of
    1980 (ttCEnCU\"¡, âs anended, and any regulat.ions
    pronulgated thereunder; (iii) asbestog ln any forn; (iv)
    polychlorinated blphenyls; and (v) âny petroleum Õr any
    petroleurn-based product.
    (ii) I'Governmental Requirenentsl shall mean alI
    laws, ordinances, sÈatutes, codes/ rulee, regul.ations,
    orders and decrees of the United States, the State of
    Têxas, Harris County, the CiÈy of Vùebster or any other
    political   subdÍvision, âgency or inst,ru¡nentality
    exercising jurisdiction over the Þe¡nised premises or the
    Tenant.
    { lii)
    [Hazardous ¡{ateriå].s Contarni.nationrr shalÌ nean
    thê contanínation of the inprovenents, facilltÍes, soi"l,
    ground h¡âter, or air or other eLenent,s o¡1, over or under
    the Demised Premj.ses by Hazardous !,{aterials at any line
    eÍianating fron tlre Demised Pre¡uises.
    Section 24.2. Covênants,           RsÞresentati"pns,       and
    Wg-rre¿t|eS. Subject to the express rlghÈs granted t.o Tenant under
    the terms of this Lease, Tenant will notl
    (i) Do anything upon the Shopping center ttrat would
    violate any Covernmental Rêquirenent,si
    (Íi) Receivê, storê, dispose, generate, treat, use
    or place any Hauardous Materials on, from or in the
    De¡nised Preroises or the shÕpping Center in a manner ¡¡hich
    violates any Covernmental Requirernents;
    (iii)"ransport any Hauärdous I'{aterÍals to or from
    the Denised Prenises or the Shopping Center in a manner
    r,¡hich violates any covernmental Requirements;
    (iv) Cause the existence of any Hazardous MaÈerials
    Contåüinatlon in or on the Denised Prenises.
    DurÌ-ng the ter¡¡ of this Lease, Tenant will give written notice
    to Landlord pronptly upon îenant/s acquisition of kno!¡ledge of thè
    deposlt, release, placement, or presence of any HauârdÕus Materials
    to the extent the sâne constitut.es Hazardous uateri.al,6
    Contanination ôñ, under or in the Demised Premises or ôf the
    transportation of any Hazardous Materials to or from the Demlsed
    Pre¡nises in violation of covernnental Requirenents. Tenant shåLl
    coÍrply at all tines with all Governmenlal Rêqulrements related to
    the Der¡ised Pre¡ni"ses with respeet to Hâuãrdous Uaterials introduced
    by Tenant into the Demised Premises. Tenant, sha1l innediately
    comply with any and aLl Governmental Requirements requiring thê
    removal, treatment or disposal of Hazardous Matêria1Ë or â.
    Hazardous Materíals Cont,amination on the Demised premises
    inlroduced by Èhe Tenant into the Demised Premises or the Shopping
    center, all at fenant,s sole cost and expense.
    Section 24.3. Access and, Çleanuo Rj.qhts. Landlord and
    its agents and contractors shall have the right at any reâsonablè
    tÍrne to entêr upon the Denised Prenises to inspect and/or test t,he
    sanê for conpliance with this Article XXIV or to correct, at
    Tenant,s expensè (should Tenant fail to do so following notieê),
    any violation of this Article XXIV, but Landlord shall be under no
    obligatlon to do so. Further, Tenant acknowledges and agrêes Èhåt
    the Landlord sha1l have ¡hê right (but not the obligation) to enter
    the Demised Premises or take other actions as it may dêem necessâry
    or:advisable to cl-ean up/ rêmove, dispose, resolvè or minimize the
    inpact of, çr otherr'risê deal with any Hazârdous Materials or
    Hazardous Mat,erials Contarninat,ion in, oîr below ôr âbove the
    Demised Prenises following receipt of any notice by any person or
    F   il.t9ftólJ.I_sti                       26
    PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    ooo929
    i.;i.:ììii                   hij:i!
    entity assêrting the existence of any Hazardous Materials or
    Hazardous   t'laterials contamination which, if true, could result in
    an order, notice, suit or fi"ne agaìnst Landlord. Tènant shall
    indennify, defend and save harnless Landrord and Landlordrs owners,
    directors, officers, ernployees and eont,ractors (coltectively, thå
    'il,andlord Partiestr) from and against any suits, actions, te!äf or
    adninistrative proceedings, denands, ctains, -liabiliÈíe*, -iã""1
    fines, penalties, losses, injuries, darnages, expenses or'costs,
    incruding renediation expenses, intereãt and ðÈtorneys' and
    consurt,antgt fees (collectively, the rclåim6r) incurred or èuffered
    by the Landlord parties or €rny of them (i) that are lncurred or
    inrposed based upon any Governnental Raquirement and that arise out
    ôf any introduction by ?enant, its owners, dlrectors, offieers,
    enployees, agents, contrãctors, licensees, assignees or subleesees
    (co1lecÈi"ve1y, thê ttrenant parties*) of Hazardous llaterials int or
    upon the shopping center or (ii) that otherr¡ise arises from lhe
    breach by lenant or Tênant parties, or any of thern, of any
    represent,ation, warranty or covenant in this paragraph e.
    .     Section 24.4 .        Landlord, s .Indennitv.    Landlord shall
    i-ndemnify,    defend ãnd save harmLess the Teñant parties from and
    against a1l clains incurred or suffered by the.tenant parties or
    any of the¡n (i) that åre incurred or imposed based upon any
    Governrnent.ar Reglirement and that arise õut of âny názardouå
    Mâterials contanination in the shopping center as of ihe date of
    the Lease or (ii) that are incurred or inpoeed based upûn any
    cqvernmental Reguirenent and that, arise out of any introdudtion uy
    the Landlord Parties of Hazardous Materials iirto or upon thà
    s-hopping center during the term of the Lease. Landrorà sharl
    irnmediat.ely conply _with any and alL Govêrnnental Requirenrenis
    requiring the removal,     treatnent or dÍsposal of Hazardous lqaterials
    or Hazardous lttâterials contanination on thg shopping center as of
    the date of the Lease or which is introduceã by the Landlord
    Parties into or upon thê shopping center during tie term of the
    Lêase,
    ÀRTICLE XXV.
    . Sect,ion 25.L. Notlceg. !{hêrever any notice is reguired
    or permittèd   hereunder, such notice shall bè in writing.' o"V
    notice or document required or pernitted to be delivered hÀreundel
    shè11 be either delivered to the notice address of Landlord
    (addressed to the attention of the president) or renant set forth
    in section l.L hereof, by hand or sent by united statês registered
    or certified nail, qostage prepaid, return receipt requeÁted, to
    the same addresç' Either party's address nay be cnangea fron time
    to ti¡ne by sueh party by giving notice as prõvided heiein. A poËt,
    office receipt for registration of such notice or signed return
    receipt shalL be conclusive that such noticê r/as delivãred in due
    course of nail if nailed as provided above. For purpôses of the
    calculation of various time periods referred to -heiein, nåtirå
    delÍvered by hand sharl be deenred reeeived when delÍvered to the
    prace for gÍving notice to a party referred to above and notice
    nailed in the mânner provided above sharl be dêenìed compreted upon
    the earlier to occur of (i) actual receipt as indicated on the
    signed return receipt, or' iii¡ three {3) days after posting as
    herein - provided-. Any written notice addressed ai provided
    hereinabove and aetually recei.ved by thê addresseel shall
    sonstitute sufficient notice for al.L purposes of this Lease.
    ÀRTTCLE XXVT.
    Section 26.1. Oovernnent,al Regulations. Landtord and
    Têaänt acknowledge that therê are j.n effect federal, staÈe, county
    and municipal laws, orders, ru1es, directives and r"gu:.ationi
    (collectively referred to hereinafter as the ,Regulatiãns,¡ and
    that addi.tionat Regul"ations may hereafter be enaited or go i.nto
    effecl, rerating to or affect.ing the Demised pre¡nises or the
    shopping center, ând cÕncerning t.he irnpact on the environnent of
    l:\l"1r97lrí4. t.S¡ì                     2"7
    PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    oo0930
    ,r1;.:,.
    ,:   !!',:¡n.:
    t;;
    construction, land use, ¡¡aj.ntenance and operation öf structurea,
    ånd conduct, of business. sì-lbject to the express rights grånted
    undêr the terxns of thie Lease, neither Landlord nor Tenant will
    cäuse, or pernit to bê eaused, any âct or practice, by negllgence,
    olrission, or otherwì.se, that would adversely affect the-envi.ron-
    ment, or do anythì-ng or pernit anything to be done that r¡ould
    violate any of said laws, regulatione, or guidelines. Morêover,
    Tenant shall have no claim against Landlord by reason of any
    ehanges Landlord nay make in the Shopping Center or the Denised
    Pre¡nises pursuant to sai.d Regulati.ons or any charges inposed upon
    customers or other invitees pursuånt to same,
    ARTICLE XXVIT.
    section ?7.1. Nêgat.íon of pafçnershiÞ. Nothing herein
    contained sha11 be dee¡red or construed by the parties heråto, nor
    by any third partyf as creatfng the retationship of principal and
    agent or. of partnership or of joint venture bêtween the þarties
    hereto, it being underËtood and agreed that neithèr the nelhod of
    conputatlon of rent, nor any other provision contained herein, nor
    ãny acts of the part.ies hereto, sball be deened to craåte any
    relationship betlreen the partíes heretô other than the relationshiþ
    of landlord and tenant,
    Section 27.2. IndeÞendent Covenant to pãy Ren*.3r¡d Other
    Chefg*ç. Tenant shall not for any reason withhold or reduce
    'fenant,s required pay¡nèntÊ of rentals and other charges provided in
    this Lêase, it being agreed that Èhe obligations oi Landlord
    hereunder are independent of Tenantrs obligations, except as nay be
    otherwise expressly provided.
    Section 27.3. Li¡nitation of Landlo-fdls Liabilitv.    Under
    no circumstances $¡hatsoever shaLl Landlord ever be liable héreunder
    for consequential or special damages; and alL 1iabi1it,y of Landlord
    (including any i.ndividual rnemþer Èhêreof) to Tenant foi any ilefâu1t
    by Landlord under the terms of this Lease shall be tinited to the
    proceeds of sale on execution of the ínterest of Landlord in the
    Shoppíng Center; it, being stipulated and agreed that Landlord shall
    not be personally liable for any deficiency. This clause shall not,
    be deemed to lir¡it or deny any renedies which Tenant rnay have ì.n
    the event of defauli by Landlord hereunder, whi.ch do not involve
    the personal liability     of Landlord. Speciflcatly, Tenant shall
    have the ri.ght, t,o seel< injunctive or othêr eguitable relief in
    connection with thís Lease.
    Sectiqn 27.4. Cqn.çeu!_s and Per¡nissions. Except as nåy
    be otherwise herein provided, in all circumstånces under this Lease
    whère prior consent or pernission of one party (rrfirst, partyr'),
    wn-ether it be Landlord or Tenant, ís reguíred befora the olher
    party {ilsecond party'r) is authorized to take any particutar type of
    action, the matÈer of whether to grant 6uch consent or perrniÃsion
    shall be within the sole and exclugive judgment ðnd discretion of
    the firÊt party; and it shall not constitute any naturs of breach
    by the first. party hereunder or any defense to the pêrfornance of
    ðny covenanÈ, duty or obligation of the second party hereunder that
    thÊ first party delayed or with.l¡al-d.the qranting of such consent or
    perrnission, whether or not the delay or withhoLding of such consent
    or perrnission was, in the opinion of the second party, prudent or
    reåsonable or based on good cause.
    9ection 27.5,, Non-lfaiver. One or nore waivers of        any
    covenant, t€rm or condition of thls Lease by either party shall not
    be conctrued as a waiver of a subsequent breach of thè sa¡ne
    covenånt, tern or condition. Thê consent or approval by either
    party to or of any act by the other party requiring sueh consent or
    approval shall not bê deemed to r¡aive or render unneÇessary consênt
    to or approvaL of any subseguent sj.milar act,.
    Section 27.6. Force l{ajÊure. tThenever a period of ti¡ne
    ls herein prescribed for action to be taken by Landlord, Landlord
    P: ì1.9971 û¡,1   .   LSB                                2A               PLAINTIFF EXHIBIT I
    Glear Lake (2)
    000931
    u:,'
    shaLl not be Ìi-able or responsible for, and Èhere shalr be excluded
    frorn the conrputat,ion of any such period of time, any delays due tô
    strikes, riots, acÈs of.cod, shortages of labor'or írateriåfr, *.i,
    governrnental larvs, regulations or restrictions or any other câuÊes
    of any klnd vrhåtsoever which are beyond the reasonaËre control of
    Landlord.
    Spction 27.r?- Short Form Lease. The parties agree noÈ
    to place this tease of record, but. each party shall, at the request
    of the _other, execuÈe and acknowledge, so that Èhe same rnay be
    recorded,  a shorÈ forrn lease or mernorandum of rease, stating ïhat
    Tenånt, has accepted possession of the Denised premises, indiõating
    the lease term and any options to extend such tern, but onrittin{
    rent ðnd other terms., and an agreement. specifying the date oi
    cÖnnèncement and ternination of the lease terrn; provlded., hot¡ever,
    that the failure to record said short forn lease, :nemorandu¡n rf
    lease or agreement sharl not affect or iurpair the validity and
    effectiveness of this Lease. Tenant shall -pay all coets, täxes,
    fees and other expenses in connection t¡i*r or prerequisíte tå
    recording.
    .          Sêction A7.9. coverninq La!r; provi5ions severable, Thè
    laws  of the stâte of Têxas sha11 qovè@tion,
    vaì-idity, perforrnance and enforcer*eni of this Lease. rf any
    provi.sion of Èhis LeåÉe should be herd to be invatid or ,rn".,i
    forceable, the validity ând enforceability of the remaining
    provisions of this Lêaaê sha}l not be affecteå thereby.     venue for
    any action under thÍs Lease shatl be the county in ritricrr rentais
    are due pursuant, to Sectíon 4.1. ând SecÈj.on 1.1 of thj.s Lease.
    qection 27.9. Capçions. The captions used herein are
    fqr con venience only and do not li¡rit or ànplify the provisions
    hereof.
    Seqtion 27.10. Nunþç.r and Gender. Irlhenever herein the
    singular number is ueed, the same shall include the plural,    and
    words of any gender shall include each other gender.
    Sec.tign 27.¡1.. Sucçessors. The t,erns, provisions and
    covenants sontained in this Lease shall apply to,- inure to the
    beneflt of and be bl.nding upon thê partfeJ hereto and their
    respective heirs, suceêssors in interestãnd legal rëpresentatives,
    excÊpt as otherrr¡ise herein expressly provided.-
    Sectiqn 27,12. Broker. Tn considerát,ion of the services
    rendered in connection with the negotiation of this Lease by united
    Equities Tncorporated ("Brokert), Landlord shall pay to Broker a
    leasing com¡nission in the anount equar t.o 3* of Èi¡ã Base Rental
    onl.y which is actually paid by Tenanl for the Demised prenises and
    any additionar space in the shopping center whích nay be added t,o
    anrl becomes a part of the Ðe¡nised prèmises, r,¡hich conirission shall
    be:payabJ"e nonthly if, as and when such Base Rental is received by
    Landlord, and not otherwise. rn additlon, in the event Tenant
    exercises the ExtenEion option for any of the Extension periods
    under the provisions of Àrticle XXTII hereof, Owner shatl pay to
    Broker a further co¡nmission in the amount equal to 1-1/2t ãr-tr¡e
    Base Rental only r.¡lgn i"s. actua_lly paid . to Landlord during any
    Extension Period, r¡hich additional co'nrnission shall also be palablä
    nonthly if, as and vrhen received by Landl0rd, and not otnerv¡ise.
    Landlord shall have the right and opÈion of aecelerating, at any
    time, t,he payment of all co¡n¡rissi.on instatl¡nents set forlir above.
    If Landlord se1ls its interest in the Shopping cent,er and in
    connection therewith assigns Land1ord's inteiesC in this Lease,
    Låndlord shar] ei.ther (if require the purchaser to assume the
    payrnent of all co¡n¡nisèion install¡nents acðruing after such sale in
    r¿hich event serrer shart- be released of alt fi¡rther lÍabirity     iá
    Broker or (ii) seller shal1 remain liable to Broker for the payrnent
    of all co¡nmission instaltments accruing after such sa1e. r,ãnãtord
    and renant each hereby repres€nt and !''arrant to the <¡ther that
    Bröker is the only agent, broker, finder or other party with whom
    l): ii..{¡9Ì   l¡j,14 l,Sll          29
    PLAINTIFF EXHIBIT   I
    Glear Lake (2)
    oo0932
    ::l:j',
    !;i;tr                          lliir t1;
    ",¡k4
    they have dêâlt h¡ho is or mäy be entitled t,o any com¡nission or fee
    wilh respect to this Lease.
    Seet,ion 27.L3. Interest on,fJ*qg Pavments. In the event
    any install¡¡ent of Base Rental or any other sun payablê by Tenant
    to Landlord under the provisiong of this Lease is not receivêd
    within fivê (5) days after íts due date for any reåson what.soêver,
    it ís agreed that the ãmount thus due sha1l bear interest at the
    maximum contractual rate whích legally coutd be charged under the
    laws of the State of Texas in the êvent of a Loan of sueh rental or
    other sum to Tenant (but in no event t,o exceed 18* per annurn), such
    interest to accrue continuously on any unpaid balance due to
    Landlord by Tenant during the period commencing with the aforesaid
    due date and terminating wlth the date on which Tenant ¡nakes full
    payment of sueh a¡nounts to Landlord. Any such interest shall be
    pa!¡able as additiona] rent hereunder.
    Section 27.1,4. Entire*Agreement. This Lease contains t.he
    entire agreement between the parties, and no agreênêht shall be
    effective to change, rnodify or ter¡ninate this lJease in r¡hole or.in
    par:t unless such is in writing and duly signed by the party against
    whorn enforcement of such change, modification or ternination is
    sought, Landlord and Tênant hereby âcknov/1edge that they arê not
    relying on any representation or promise of the other, except as
    may be expressly set forth 1n this Lease,
    6q.ction 27 . 15 . Te{ni.natign of Existlnq Lease.      The
    obllgations of the parties hereto are exprèssly conditioned upon
    and subject to the terninatj,on by rnutual agreement, of the parties
    thereto of the existing Shopping center Lease dated Decembêr 3,
    1989, betïreen Landlord and Pottery I'tart, Inc. (the ttExisting
    Leaserr). In the event the Existing Leasê is not t,erminated
    eff,ective as of the Commencement Date, either party hereto shall
    have the right to terrninate this Leâse by giving written notice of
    termínat,ion to the other party.
    Section 27.16. Exhibits. The exhibits attached to this
    Lease are incorporated herein and ¡nade a part hereof for all
    purposes.
    ÉXECUTED in nultiple counterparts, each of which shatl
    have the force ând effect of an original as of the date first above
    vrr:itten.
    I,ANDLORÐ
    ¡'IESTA
    s, Presldent
    TENANT:
    GARDEN       RIDGE, L.P.
    By: Garden Ridge Managernent, Inc.,
    its sole        partner
    Êy:
    Armand   Shapiro,        Chairman
    BROKERI
    UNITFÞ NQUÏTÏES           INCORPORÀTED
    By
    Edl'¡     Freednan, Pre6
    l¡:U-9t'ì¡644.LsÉ                 30                                  PLAINTIFF EXHIBIT   1
    Glear Lake (2)
    000933
    i':v                         &
    ËK¡IIBIT ''A"
    47.6664 aeres of land (2t076,348 square fee¡)r a tract of land
    belng parE of and out of LoÈs lr 2, 3r and 4' Block 9 of
    tlebster Outlot,s as recorded in Volune 67, Page 197 of the
    Harris County Deed Recordsr in the Robert. l,iilson Survey,
    Abstract No. 88, 1n the Clty of tJebster, Harrls County'
    Texas, and belng more fully descrlbed by DeÈês and bounds
    ae follows (nith be-arlngs -referenced to ¿he Soulheasterly
    rlght-of-way llne of F.ll. 528, also knonn as l{11son Avenue,
    cailed N 52'ú 13 t oo" E) :
    BSGINNINC at a point. oarking interseetion of the Southeaslerly
    right-of-nay line oË sald F.H. 528 wlÈh thê SouthwcgÈ llne
    of sald Lot 2 and belng the moet Northerly tlest corner of
    the herein descrlbed trac¡:
    THENCE, tl 52o 13' 00' E, along sald ri.ght-of-way 11ne of
    F.!,1. 528, a dlstance of 325.86 feeÈ to Èhe polnt of curvature
    oÉ a curve to the right;
    THENCE, NORTHEASTERLY, along a SoutheasÈ 1lne of a Texas
    Hlghway Ðepårtnent rlght-of-way easeûent (racorded ln Volume
    2825, Þage- 495 of thè Harrts County Decd Reeordg) and the
    arc of sald curv€ to th. rlrht havlnr ¡ rsdl.us of 286.48
    fcet, a central angle of 45à õ0'00", ã chord beartng N 74o
    43f 00r'8, 2L9.26 feet, an arc length of 225.00 feeÈ to the
    polnt-of-tangeney of sald curve;
    THENCE, s 82c 47r 00il E, contlnulng along satd rlght-of-way
    eaoenênt, a dlstance of 186.05 feet to the polnt-of-curvålur€
    of ¿ eurve to lhe left;
    ?HENCE, EASTERLY, eont,lnuing along saLd rlght-of-wåf eåseúent
    and thc arc, of sald curve Èo the lefÈ havlng a radlus of
    286.48 feet, a cêntral anglc of 45c 00t 00r', a-chord bearlng
    t{ 74o 43t 0'0" E, 2L9.26 FeeÈ, an arc lcngth of 225.00 feeÏ
    to the polnt-of-tengêncy of sald curve¡
    THENCE, N 52r 13' 00" E, contl.nulng along sald right-of-way
    easêo€ntr a dl.stancc of 175.80 f,eet to lhc polnt-of-curvature
    of a curve Èo the rlght;
    THENCE, EASTERLY, along thc arc of gqld curve to the rlght
    havlng a radlus of 137.00 -feet-, a central angle of 90o 001
    00'r, ã chord beartng S 82o 47'- O0'r E, 193.7i feet, ån årc
    length of 215.20 fcct to a polnt 1¡ tha SouthwesÈ, rlght-of-
    way llne of Intergtate Hlghvay 45 (Gutf Freaway) narklng the
    polnt-of-Èang€ncy of sald curve;
    THENCE, S 37o 47t 00" E, along the Southwes t right-of -way
    llna of said Intêrrtat,ê Hlghray 45, a dls Èance of 680, 20
    fêeÈ to Èhê polnt-of-curvåturÊ of a çurve to Èhe rlght ¡
    THENCE, SOUTHEASTERLY, eontlnulng along s¡ld rlght-of-uay
    llne and the arc of said curva to the rlc,ht h¿vlng a radius
    of 5,585.58 feeÈ, a central angle of 08¡ 22t 26'r, a chord
    bearlng S 33o 35' 47" E,81.5.60 feet, an arc length of 816.33
    feet to a polnt tn the Southeaat lln¿ of the aforemen'tloned
    Lot 4 of the llebster Outlots;
    THENCE, S 52o 13r 00" W, along thè Southeast llne oË satd Lot
    4r {r dlstance of 1r117.91 feet to a polnt for the South
    sornêr of thls tr¿c,t¡
    THENCE, N 37o 43t 16'r r ,, along the conmon Southnest line of
    såld Lots 4, 3 and ? o f t,he l.Je bster 0utlots, a dlstance of
    1,930.00 feet to the POINT 0F BEçINNING and containlng
    t47,6664 aetres of land.
    PLAINTIFF EXHIBIT I
    Glear Lake (2)
    oo0934
    ilr'{:                                      ./:i:;1;
    1,.:,'.¡   t                                ì. .,.:¡
    SAVE AND EXCEPT TITE FOLLO9ING:
    A 10.2652 acre (44711s3 square foot) tract
    in the Robert ililson survey, Abstract ilo. gg, beini out ofof      rand located
    Lot-4 of the
    tlebster outlots ¿s recordeä-in vo'rume ol,
    0eed Reconds.,. ln ll.arris-county,.Texas anil iãge
    idi'oi-i¡ã'xlriij couniy
    beíng more pa.iiluiåriy descí.ibed
    bv metês ¡nd bounds as.foltoxi (q!rh bearing rãrereñcãã ü-tñã iãutñÃisteiiy
    Iig!!-qf:w¡y..llne    of state F.r'r.'528, arso kñown as riison-nvâñuË, calred
    t{ 52f 13, 00' t) i
    C0!fi8ilC¡t{6 öt à l/Z-inch lron rod found ln the arc of a
    curve m¡rklng the lntersecilon of the Southeast llne oi
    said lot 4 rith.the.southwest right-of-way 'r'ine of Interståte
    Highway ilo. 45 (Gulf Freeray), bãsed on a-lOO_ioãt *1iii,i-
    ïHEllCE,_ N0RIlll{ESTtRLy,        along the Southnest riqht-of-way
    llne of srtd Interstaùe Higñway tto. 45 ¿nd thå iri oi-Ëai¿
    curve to the left havrng a radrus of 5.59s,59 feet. a ðenirar
    angle of 0lo 42' 55o, a-chord bearlng il 3Oo 16'OZi l,¡,"iOi.ZO
    feet, an arc length of 16l.2l feet tõ a 5/g-lnch i"on'"õã-
    set for the mo¡t €asterly Southeast eorner and p0lttÏ 0f
    BEG¡l{tl¡t{G of the herein ðescribed tr¡ct¡
    flilçE,"S-52o 15' 44o ï, a dlstarce of 581.50 feet to ¡
    S/8-lnch lron rod set fór corner¡
    ïllEtlCE, S 37o 43r 16r          f,   a distance of 66.37 feet to a 2-inch
    lron plpe :et for corner¡
    lllEllcEr s 52' 13' 00" H' arong a ltne 100.00 feet ilorthwest
    ül lll panllel.to the Sourheãst ltne of iai¿ tõi i,'a"äìitun"e
    of 482'00 feet to a 2-inch rron prpe set for t¡e-soütñ ão"n",
    of thls tract;
    ïHEllCE,   l{ 37c 13. 16r }1, rlong a llne 100.00 feet l{ontheast
    oI
    of   Ï9 parrltel to the Souttrrãst fine of s¡i¿ toi a,'i"ãìãt"nc.
    4¡14.89 feet to ¡ 2-inch tron pipe set for         - -'-
    cõ"ñeri
    UçilqE..ll 52c 161 44r Er a dlstance of 4g2.00 feet to ¡
    S/8-lnch lrqn rod set fór corner¡
    THEllCt, N37. 43, 16r lt, a distaftce of 57.00 feet to a S/g-lnch
    lron rod set for corneri
    THËtlCE,ll 52. 161 44r Er             ¡   dlstance of 310,00 feet        to   a
    polnt for corner¡
    THEtlCg,.S 37.-¡û3¡
    16, E, a dlstance of 65.ü} feet to a S/8-inch
    lron rod set for corner;
    ïqilqE, il 52¡ 161 44" E, a dlstance of 211.97 feet to ¿
    S/8-lnch lron rod set li the arc of a curve rn the iõuin*est
    right-of-ray llne of the ðforeilentioned Interstaiã Hi;il;;
    tlo. 45 for the most t{ortherly East corner of this tn¡Ët¡-'
    i:i!1ili$.'ffi]'lb';å'
    havlng.¡. rôdfus
    til:.:::'"i' :::;T;it: ll'in!'"1 îlî'-
    a centr¡r angie õi-o¡¿'ig,
    a chord be¡rina 9f-irs9!,sg_feet,
    s ?.3. gll 45._E.'371:ãs rêet,.ãå-ari iãnoir,                        3an
    or 3n.31 reer-to_tñe   põrHi-or-åEeiñiiñe inã'.äntiiiiåõ"r'
    10,265a açres    of ltnd.
    E:I(uIB IT I'AI'
    -z-                                  PLAINTIFF EXHIBIT I
    Glear Lake (2)
    o00935
    ,,:   '.                   EXHIBI? "B''
    -.:*
    PLAT
    ts   :-jU-üf