Document:

lov-ex101_6.htm

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

This Employment Agreement (this “Agreement”) is made and entered into December 4, 2015 and effective as of January 4, 2016 (the “Effective Date”) by and between Spark Networks, Inc., a Delaware corporation (the “Company”), and Shailen Mistry, an individual resident in California (“Executive”). 

WITNESSETH:

WHEREAS, the Company desires to retain Executive as Chief Technology Officer of the Company as of the Effective Date and Executive so desires to be retained. 

NOW THEREFORE, in consideration of the mutual obligations herein contained, the parties hereto, intending to be legally bound hereby, covenant and agree as follows: 

1.EMPLOYMENT 

(a)The Company hereby employs Executive as of the Effective Date to render services to the Company in the position of Chief Technology Officer.  Executive shall perform such duties commensurate with his position, subject to the control of the Board of Directors of the Company (the “Board”), for the overall strategic direction and leadership of the Company.  Executive shall report to the Chief Executive Officer (the “CEO”).

(b)Throughout the Term (as defined below), Executive shall devote his full business time and undivided attention to the business and affairs of the Company and its affiliates and subsidiaries, except for reasonable vacations and except for illness or incapacity, but nothing in the Agreement shall preclude Executive from engaging in charitable and public service activities provided such activities do not materially interfere with the performance of his duties and responsibilities under this Agreement. 

2.TERM 

This Agreement shall commence on the Effective Date, and, unless terminated earlier pursuant to Section 4 hereof, shall run for a period of twelve months from the Effective Date (the “Initial Term”), subject to the terms and conditions herein set forth.  Following the Initial Term, this Agreement shall automatically renew on the first day of the following calendar year (the “Renewal Date”), and renew annually on the Renewal Date, but is terminable for any or no reason by either the Company or the Executive with sixty (60) days advance written notice (“Notice of Nonrenewal”) before the Renewal Date.  The entire term of this Agreement shall be the “Term.” 

3.COMPENSATION 

For services rendered by Executive during the Term of this Agreement, and for his performance of all additional obligations of employment, the Company agrees to pay Executive and Executive agrees to accept the following salary, other compensation, and benefits: 

(a)Base Salary.  During the Term, the Company shall pay Executive a base salary (the “Base Salary”) at the annual rate of $250,000 to be paid evenly over the course of the year in accordance with the Company’s standard payroll policies.  During the Term, the Base Salary may be increased but not decreased.

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(b) Short-Term Annual Incentive.  In addition to the Base Salary, Executive shall be eligible to receive a short-term annual incentive (“STI”) based upon specific operational goals to be determined by theCEO and mutually agreed to by Executive.  These operational goals will be set no later than 60 days following the beginning of the calendar year.  Executive’s target STI for 2016 will be $100,000.  In the event of termination by the Company for Cause (as defined in Section 4(g)) or by Executive without Good Reason (as defined in Section 4(g)), Executive will not be eligible for any STI payment.  For all other terminations, payment of any STI will be made at the discretion of the Board.  STI payments for 2017 and thereafter are not covered by this Agreement, and remain subject to future determination by the Board.   

(c)Economic Performance Incentive.  Based upon Executive’s satisfaction of goals as determined by the Board, Executive shall be granted restricted stock units (“RSU’s”) in the Company under the Company’s 2007 Omnibus Incentive Plan (the “Plan”) and subject to Award Agreement(s) under the Plan.  Such goals shall be established annually by the Board related both to (1) revenue levels and (2) EBITDA levels.  The goals will be set no later than 60 days following the beginning of the calendar year.  Except as otherwise provided herein, Executive shall be required to be employed on the date of grant of such RSU’s and have satisfied both clauses (1) and (2) to be eligible for a grant of RSU’s.  For 2016, the tiers for the number of RSU’s for which Executive may be eligible are as follows:

(i)Base: 12,000 RSU’s

(ii)Goal: 24,000 RSU’s

(iii)Stretch: 40,000 RSU’s

Any such grant of RSU’s shall vest on the one year anniversary following the close of the 2016 fiscal year (December 31, 2017).  In the event of termination of employment by the Company without Cause (as defined in Section 4(g)) or by Executive for Good Reason (as defined in Section 4(g)), any granted but unvested RSU’s will continue to vest according to schedule.  In the event of termination for any other reason, any granted but unvested RSU’s shall be forfeited.  RSU’s for the 2017 fiscal year, or any year thereafter, are not covered by this Agreement, and remain subject to future determination by the Board.  

(d)Option Grant. Subject to Executive's commencement of employment, the Company will grant Executive the following three tranches of options pursuant to the Company's 2007 Omnibus Incentive Plan (the  “Plan") on the terms as described below:

	
 
	
(i)
	
Tranches – Tranche 1 – 60,000 options, with an exercise price per share of $5.25 and a Trigger Price (as defined below) of $6.00; Tranche 2 – 120,0000 options, with an exercise price per share of $7.50 and a Trigger Price of $10.00; Tranche 3 – 180,000 options, with an exercise price per share of $10.00 and a Trigger Price of $13.50.

 

(ii)   Vesting – Such options would vest I00% upon grant, provided that, except with respect to a Change in Control as defined in the Plan, the Company's per share stock price must close at or above the above-referenced applicable trigger price (the "Trigger Price") for twenty (not necessarily consecutive) business days since the grant date and prior to exercise for the options to be exercisable. Notwithstanding the Trigger Price, the applicable exercise price per share for such exercisable options will remain as described in Section 3(d)(i). In the event of a Change in Control, such options would be immediately exercisable at the applicable exercise price per share, provided that the price per share of Company stock reflected by such Change in Control exceeds the applicable Trigger Prices for such options.

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(iii) Termination – Such vested options would expire on the earlier to occur of the following: (i) if, in the event of termination for any reason of the grantee's employment with the Company, then (A) thirty days following such termination of employment if the Company's stock price has closed at or above the Trigger Price applicable to such options for twenty (not necessarily consecutive) business days since the date of grant and prior to such termination of employment, or (B) immediately upon termination, if the Company's stock price has not closed at or above the Trigger Price applicable to such options for twenty (not necessarily consecutive) business days during such timeframe; or (ii) on (A) December 31, 2017, if a grantee's options have not exceeded the applicable Trigger Price for such options for twenty (not necessarily consecutive) business days since the date of grant and prior to such date, or (B) if such grantee's options have exceeded the applicable Trigger Price for such options for twenty (not necessarily consecutive) business days since the date of grant and December 31, 2017, then December 31, 2019, unless they expire earlier pursuant to clause (i) above.

 

(e)Benefits.  Executive shall be entitled to participate, as long as he is an employee of the Company, in any and all of the Company’s present or future employee benefit plans, including without limitation pension plans, thrift and savings plans, insurance plans, and other benefits that are generally applicable to the Company’s executives; provided, however, that the accrual and/or receipt by Executive of benefits under and pursuant to any such present or future employee benefit plan shall be determined by the provisions of such plan. 

(f)Business Expenses.  Executive shall be reimbursed for all reasonable expenses incurred in connection with the conduct of the Company’s business upon presentation of evidence of such expenditures, including but not limited to travel expenses incurred by Executive in the performance of his duties and professional organization dues. 

4.TERMINATION OF EMPLOYMENT.  Subject to the terms and conditions of this Section 4, either the Company or Executive may terminate Executive’s employment at any time, with or without Cause (as defined in Section 4(g)), during the Term.  Any termination of Executive’s employment during the Term shall be communicated by written notice of termination from the terminating party to the other party (“Notice of Termination”).  The Notice of Termination shall indicate the specific provision(s) of this Agreement relied upon in effecting the termination and a written statement of the reason(s) for the termination.  A Notice of Termination provided by either party shall not be effective for a period of thirty (30) days after receipt of such Notice of Termination by the other party.  In the event the Executive’s employment terminates under Subsection 4(a) (Severance upon Involuntary Termination without Cause and Termination by Executive with Good Reason), Subsection 4(b) (Severance upon Change in Control), Subsection 4(c) (Effect of Death or Disability) or Executive is terminated by Company for Cause, the Company shall pay to Executive upon Executive’s termination of employment: (i) the prorated Base Salary earned as of the date of Executive’s termination of employment, plus (ii) the accrued but unused vacation as of the date of Executive’s termination of employment, plus (iii) an STI payment in the discretion of the Compensation Committee.  Any unvested equity interests held by Executive shall be forfeited upon the employment termination date, except as otherwise provided herein.  Except as otherwise provided in this Section 4 or in any other agreement between the Company and Executive, the Company shall have no further obligation to make or provide to Executive, and Executive shall have no further right to receive or obtain from the Company, any payments or benefits in respect of the termination of Executive’s employment with the Company during the Term of Employment. 

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(a)Severance upon Involuntary Termination without Cause and Termination by Executive with Good Reason.  In addition to any payments set forth above, in the event that the Company causes to occur an involuntary termination without Cause (as defined in Section 4(g)) or in the event that Executive resigns from employment with the Company for Good Reason (as defined in Section 4(g)) during the Term, Executive shall be entitled to a “Severance Package” that consists of the following: (i) a “Severance Payment” equal to $125,000, paid in equal installments on the Company’s normal payroll dates for a period of six (6) months beginning with the payroll date following the sixtieth (60th) day following such termination, (ii) reimbursement of any COBRA payments paid by Executive in the twelve (12) month period following Executive’s termination of employment, and (iii) if such termination occurs in 2016, but not guaranteed for 2017 or any year thereafter as to amount or methodology, a pro-rata granting of RSU’s pursuant to Executive’s Economic Performance Incentive based on the number of days worked during the period of employment and on the CEO’s good faith evaluation of Executive’s performance (such grant to be made after the sixtieth (60th) day following such termination and in any event during 2017).  The number of RSU’s will be determined after the books and records for 2016 have been closed, and the Board determines the tier for which Executive is eligible, adjusted pro rata based on the number of days worked for 2016.  If any plan pursuant to which severance welfare benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5) or the Company is otherwise unable to continue to cover Executive under its group health plans without substantial adverse tax consequences, then an amount equal to each remaining premium payment shall thereafter be paid to Executive as currently taxable compensation in substantially equal monthly installments over the continuation coverage period (or the remaining portion thereof).  Executive’s eligibility for any Severance Package will be conditional on Executive executing a Separation Agreement that includes a general mutual release by the Company and Executive in favor of the other and their successors, affiliates and estates to the fullest extent permitted by law, drafted by and in a form reasonably satisfactory to the Company and Executive, and Executive not revoking the mutual general release within any legally required revocation period, if applicable, within the fifty-two (52)-day period following termination.  All legally required and authorized deductions and tax withholdings shall be made from the Severance Payment, including for wage garnishments, if applicable, to the extent required or permitted by law.  Effective immediately upon termination of employment, Executive shall no longer be eligible to contribute to or to receive additional Company contributions as an active participant in any retirement or benefit plan covering employees of the Company, but shall continue to have all rights under each such plan that are afforded to terminated employees and inactive participants. 

(b)Severance upon Change in Control.  In addition to any payments set forth above in Section 4 (but not Section 4(a)), in the event of a Change in Control (as defined below), and following the Change in Control, Executive resigns for any of the three following reasons: (i) Executive’s Base Salary is reduced by the Company; (ii) a reduction in Executive’s title, or a material reduction in Executive’s duties, authorities, and/or responsibilities; or (iii) a requirement by the Company, without Executive’s consent, that Executive relocate to a location greater than thirty-five (35) miles from Executive’s place of residence, then Executive shall be entitled to a “Severance Package” that consists of the following: (i) a “Severance Payment” equal to $250,000, paid in equal installments on the Company’s normal payroll dates for a period of one (1) year beginning with the payroll date following the sixtieth (60th) day following such termination, and (ii) reimbursement of any COBRA payments paid by Executive in the twelve (12) month period following Executive’s termination of employment.  If any plan pursuant to which severance welfare benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5) or the Company is otherwise unable to continue to cover Executive under its group health plans without substantial adverse tax consequences, then an amount equal to each remaining premium payment shall thereafter be paid to Executive as currently taxable compensation in substantially equal monthly installments over the continuation coverage period (or the remaining portion thereof).  

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Executive’s eligibility for any Severance Package will be conditional on Executive executing a Separation Agreement that includes a general mutual release by the Company and Executive in favor of the other and their successors, affiliates and estates to the fullest extent permitted by law, drafted by and in a form reasonably satisfactory to the Company and Executive, and Executive not revoking the mutual general release within any legally required revocation period, if applicable, within the fifty-two (52)-day period following termination.  All legally required and authorized deductions and tax withholdings shall be made from the Severance Payment, including for wage garnishments, if applicable, to the extent required or permitted by law.  Effective immediately upon termination of employment, Executive shall no longer be eligible to contribute to or to receive additional Company contributions as an active participant in any retirement or benefit plan covering employees of the Company, but shall continue to have all rights under each such plan that are afforded to terminated employees and inactive participants. 

(c)Effect of Death or Disability.  In the event that Executive dies or terminates employment by reason of a Disability (as defined in Section 4(g)) during the Term of Employment, Executive shall be entitled to (i) payment of the unpaid prorated Base Salary earned as of the date of Executive’s death or Disability (the “Measurement Date”), and (ii) reimbursement of any COBRA payments paid by Executive or his estate or beneficiaries in the twelve (12) month period following the Measurement Date; provided, however, that if any plan pursuant to which severance welfare benefits are provided is not, or ceases prior to the expiration of the period of continuation coverage to be, exempt from the application of Section 409A under Treasury Regulation Section 1.409A-1(a)(5) or the Company is otherwise unable to continue to cover Executive under its group health plans without substantial adverse tax consequences, then an amount equal to each remaining premium payment shall thereafter be paid to Executive or his estate or beneficiaries as currently taxable compensation in substantially equal monthly installments over the continuation coverage period (or the remaining portion thereof).  All legally required and authorized deductions and tax withholdings shall be made from the payments described in the previous sentence, including for wage garnishments, if applicable, to the extent required or permitted by law.  Payment under this Section 4(c) shall be made not more than once, if at all.  In addition, Executive or Executive’s estate shall have such rights with respect to Executive’s Membership Units as provided for in the Operating Agreement. 

(d)Statement Regarding Termination of Employment.  In the event Executive’s employment is terminated without Cause, or Executive resigns for Good Reason, Executive and the Company will negotiate in good faith to reach an agreement on a statement reflecting a benign reason for termination or resignation.

(e)Ineligibility for Severance.  Notwithstanding anything to the contrary in this Agreement, Executive shall not be entitled to any Severance Package under this Agreement if at any time during the Term of Employment, (a) Executive voluntarily resigns or otherwise terminates employment with the Company other than for Good Reason, or (b) the Company properly terminates Executive’s employment with Cause.  Effective immediately upon termination of employment, Executive shall no longer be eligible to contribute to or to be an active participant in any retirement or benefit plan covering employees of the Company. 

(f)Taxes and Withholdings.  The Company may withhold from any amounts payable under this Agreement, including any benefits or Severance Payment, such federal, state or local taxes as may be required to be withheld pursuant to applicable law or regulations, which amounts shall be deemed to have been paid to Executive.

(g)Definitions. 

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(i)“Cause” shall mean the occurrence during the Term of any of the following: (i) formal admission to (including a plea of guilty or nolo contendere to), or conviction of a felony, or any criminal offense involving Executive’s moral turpitude under any applicable law, (ii) gross negligence or willful misconduct by Executive in the performance of Executive’s material duties required by this Agreement and such negligence or misconduct has been communicated to Executive in the form of a written notice from the Board, and that Executive has not substantially cured within thirty (30) days following receipt by Executive of such written notice; or (iii) material breach of this Agreement by Executive which breach has been communicated to Executive in the form of a written notice from the Board, and that Executive has not substantially cured within thirty (30) days following receipt by Executive of such written notice. 

(ii)“Disability” shall mean, to the extent consistent with applicable federal and state law (including, without limitation Section 409A), Executive’s inability by reason of physical or mental illness to fulfill his obligations hereunder for ninety (90) consecutive days or for a total of one hundred and eighty (180) days in any twelve (12) month period which, in the reasonable opinion of an independent physician selected by the Company or its insurers and reasonably acceptable to Executive or Executive’s legal representative, renders Executive unable to perform the essential functions of his job, even after reasonable accommodations are made by the Company.  The Company is not, however, required to make unreasonable accommodations for Executive or accommodations that would create an undue hardship on the Company. 

(iii)“Good Reason” shall mean the occurrence during the Term of Employment of any of the following: (i) a material breach of this Agreement by the Company which is not cured by the Company within thirty (30) days following the Company’s receipt of written notice by Executive to the Company describing such alleged breach; (ii) Executive’s Base Salary is reduced by the Company; (iii) a reduction in Executive’s title, or a material reduction in Executive’s duties, authorities, and/or responsibilities; or (iv) a requirement by the Company, without Executive’s consent, that Executive relocate to a location greater than thirty-five (35) miles from Executive’s place of residence.  Notwithstanding the above, the occurrence of any of the events described in the foregoing sentence shall not constitute Good Reason unless Executive gives the Company written notice, within thirty (30) calendar days after Executive has knowledge of the occurrence of any of the events described in the foregoing sentence, that such circumstances constitute Good Reason and the Company thereafter fails to cure such circumstances within thirty (30) days after receipt of such notice, and Executive terminates his employment hereunder within ninety (90) days after such event occurs.

(iv)“Section 409A” means Section 409A of the Internal Revenue Code of 1986, as amended, (“Code”) and all applicable guidance promulgated thereunder. 

(h)Nonduplication of Benefits.  Notwithstanding any provision in this Agreement or in any other Company benefit plan or compensatory arrangement to the contrary, (i) any payments due under either Section 4(a), Section 4(b), or Section 4(c) shall be made not more than once, if at all, (ii) payments may be due under either Section 4(a), Section 4(b), or Section 4(c), but under no circumstances shall payments be made under more than one of the following: Section 4(a), Section 4(b), and Section 4(c), and (iii) Executive shall not be entitled to severance benefits from the Company other than as contemplated under this Agreement, unless such other severance benefits provide for larger benefits than under this Agreement. 

5.NON-SOLICIT  

(a)During Executive’s employment with the Company, and for a period of twelve (12) months thereafter, Executive will not knowingly, separately or in association with others, materially and 

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substantially interfere with, impair, disrupt or damage the Company’s relationship with any of the customers of the Company with whom Executive has had contact by contacting them for the purpose of inducing or encouraging any of them to divert or take away business from the Company and to an enterprise that is in direct competition with the Company Business; provided, however, that none of the foregoing restrictions shall preclude Executive from being employed by a consulting, financial or advisory firm that provides any advice or services to a person, enterprise or business that is in competition with the Company so long as Executive does not personally provide such advice or services to the competing person, enterprise or business. 

(b)During Executive’s employment with the Company, and for a period of twelve (12) months thereafter, Executive will not, knowingly, separately or in association with others, materially and substantially, interfere with, impair, disrupt or damage the Company’s business by directly contacting any Company officers or key employees for the purpose of inducing or encouraging them to discontinue their employment with the Company; provided, however, that the foregoing provisions shall not (i) restrict Executive from directly or indirectly making any general solicitation for employees, making a public advertising or participating in any job fairs or recruiting workshops or (ii) preclude Executive from soliciting and/or hiring any officer, key employee or other person at any time (A) in the case of voluntary terminations, later than six (6) months after such person’s termination of employment from the Company and (B) in the case of all other terminations, after such person’s termination of employment from the Company. 

6.INDEMNIFICATION; INSURANCE 

(a)During the Term of this Agreement and thereafter, the Company shall indemnify Executive to the fullest extent permitted under California law from and against any expenses (including but not limited to attorneys’ fees, expenses of investigation and preparation and fees and disbursements of Executive’s accountants or other experts), judgments, fines, penalties and amounts paid in settlement actually and reasonably incurred by Executive in connection with any proceeding in which Executive was or is made party or was or is involved (for example, as a witness) by reason of the fact Executive was or is employed by or serving as an officer or director of the Company or any of its affiliates.  Such indemnification shall continue as to Executive during the Term of this Agreement and for so long thereafter as Executive may have exposure with respect to acts or omissions which occurred prior to his cessation of employment with the Company and shall inure to the benefit of Executive’s heirs, executors and administrators.  The Company shall advance to Executive all costs and expenses incurred by him in connection with any proceeding covered by this provision within 20 calendar days after receipt by the Company of a written request for such advance.  Such request shall include an undertaking by Executive to repay the amount of such advance if it shall ultimately be determined that he is not entitled to be indemnified against such costs and expenses. 

(b)The Company agrees to purchase and maintain adequate Directors’ and Officers’ liability insurance from a reputable, nationally recognized and financially sound insurer with provisions that will provide coverage for Executive as a director, officer and employee as well as coverage as a former director, officer and employee following any termination of this Agreement or Executive’s employment and service on the Board.  Such insurance shall inure to the benefit of Executive’s heirs, executors and administrators.

7.CHANGE IN CONTROL

(a)In the event of a Change in Control (as defined below) in 2016, 100% of any RSU’s granted to Executive under Section 3(c) that are not yet vested shall vest immediately upon such Change in Control.  If such Change in Control occurs prior to Executive being awarded any RSU’s under Section 

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3(c), Executive shall be granted, and fully vested in, the “Stretch” number of RSU’s (40,000 RSU’s) immediately prior to such Change in Control becoming effective. 

(b)“Change in Control” shall mean (i) any “person” (as such term is used in Sections 13(d) and 14(d) of the 1934 Securities Exchange Act) or group becomes the “beneficial owner” (as defined in Rule 13d-3 of the 1934 Securities Exchange Act) or has the contractual right to acquire beneficial ownership, directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company’s then outstanding voting securities; (ii) the consummation of the sale, lease or other disposition by the Company of all or substantially all of the Company’s assets (including any equity interests in subsidiaries); (iii) the consummation of a liquidation or dissolution of the Company; (iv) the consummation of a merger, consolidation, business combination, scheme of arrangement, share exchange or similar transaction involving the Company and any other corporation (“Business Combination”), other than a Business Combination which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company or such surviving entity or its parent outstanding immediately after such Business Combination or (v) any combination of the foregoing.  Notwithstanding the foregoing, a Change in Control shall not be deemed to occur solely as a result of (x) a repurchase or redemption of securities (which is open to all stockholders) by the Company done in the ordinary course of business and the purpose of which is not to effect a Change in Control or (y) a rights issue, recapitalization, capitalization, sub-division or consolidation or a share capital reduction and any other variation of the capital of the Company and/or rights in respect thereof, or capital distribution (being any distribution, whether in cash or in other specie, out of capital profits or capital reserves (including share premium account and any capital redemption reserve fund)) so long as in each instance it is done either as part of a reincorporation merger or in the ordinary course of business and in any event is not done to effect a Change in Control.

8.MISCELLANEOUS 

(a)Successors and Assigns.  This Agreement shall be binding upon and shall inure to the benefit of the Company and its successors and assigns.  Executive shall not be entitled to assign any of Executive’s rights or obligations under this Agreement without the Company’s written consent, provided that upon Executive’s death, Executive’s named beneficiaries, estate or heirs, as the case may be, shall succeed to all of Executive’s rights under this Agreement.

(b)Nonexclusivity Rights.  Executive is not prevented from continuing or future participation in any Company benefit, bonus, incentive or other plans, programs, policies or practices provided by the Company subject to the terms and conditions of such plans, programs, or practices.

(c)Entire Agreement.  This Agreement supersedes any prior agreements or understandings, oral or written, with respect to employment of Executive and constitutes the entire Agreement with respect thereto.  This Agreement cannot be altered or terminated orally and may be amended only by a subsequent written agreement executed by both of the parties hereto or their legal representatives, and any material amendment must be approved by a majority of the voting shareholders of the Company. 

(d)Waiver.  Either party’s failure to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision, or prevent that party thereafter from enforcing each and every other provision of this Agreement

(e)Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of California. 

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(f)Litigation Costs and Expenses.  In any action to enforce the terms of this Agreement, the prevailing party shall be reimbursed by the non-prevailing party for such prevailing party’s reasonable attorneys’ fees and costs, including the costs of enforcing a judgment.   

(g)Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provisions, which shall remain in full force and effect. 

(h)Interpretation; Construction.  The headings set forth in this Agreement are for convenience only and shall not be used in interpreting this Agreement.  This Agreement has been drafted by legal counsel representing the Company, but Executive has participated in the negotiation of its terms.  Furthermore, Executive acknowledges that Executive has had an opportunity to review and revise the Agreement and have it reviewed by legal counsel, if desired, and, therefore, the normal rule of construction to the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement.

(i)Arbitration.  Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined by arbitration in Los Angeles, California before three arbitrator(s).  The arbitration shall be administered by JAMS pursuant to its Comprehensive Arbitration Rules and Procedures.  Judgment on the Award may be entered in any court having jurisdiction.  This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction, in which case each party consents to the jurisdiction and venue of the state and federal courts located in Los Angeles, California. All forum costs related to such arbitration shall be borne by the Company.

(j)Notices.  Any notices, requests or other communications provided for by this Agreement shall be sufficient if in writing and if sent by registered or certified mail to Executive at the last address he has filed in writing with the Company or, in the case of the Company, at its principal offices.

(k)Cooperation.  If Executive is no longer employed by the Company for any reason, Executive and the Company shall in good faith negotiate future cooperation by Executive as reasonably requested by the Company at a reasonable rate for a period of no less than six (6) months.

9.COMPLIANCE WITH CODE SECTION 409A 

With respect to any compensation payable or benefits to be provided under this Agreement that are subject to Section 409A, this Agreement is intended to comply with the provisions of Section 409A.  In furtherance of this intent, to the extent that any compensation payable or benefits to be provided under this Agreement are subject to Section 409A, this Agreement shall be interpreted, operated, and administered in a manner consistent with these intentions, and the parties agree to amend this Agreement further (if necessary) in order to avoid the adverse tax consequences of Section 409A.  Notwithstanding any other provision of this Agreement to the contrary, no severance pay or benefits to be paid or provided to Executive, if any, pursuant to this Agreement that, when considered together with any other severance payments or separation benefits, are considered deferred compensation under Section 409A (together, the “Deferred Payments”) will be paid or otherwise provided until Executive has had a “separation from service” within the meaning of Section 409A.  Similarly, no severance payable to Executive, if any, that otherwise would be exempt from Section 409A pursuant to Treasury Regulation Section 1.409A-1(b)(9) will be payable until Executive has had a “separation from service” within the meaning of Section 409A.  Each payment and benefit payable under this Agreement is intended to constitute a separate payment and the right to a series of installment payments under this Agreement will be treated as a right to a series of separate payments. If Executive is a “specified employee” within the meaning of Section 409A at the time 

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of his “separation from service” (within the meaning of Section 409A), then the Deferred Payments that would otherwise be payable within the six (6) month period following his separation from service will be paid in a lump sum on the date six (6) months and one (1) day following the date of his separation from service (or the next business day if such date is not a business day).  All subsequent Deferred Payments, if any, will be payable in accordance with the payment schedule applicable to each payment or benefit. If Executive dies following his separation from service, but prior to the six (6) month anniversary of his separation from service, then any payments delayed in accordance with this paragraph will be payable in a lump sum as soon as administratively practicable after the date of his death and all other Deferred Payments will be payable in accordance with the payment schedule applicable to each payment or benefit.

10.COMPLIANCE WITH CODE SECTION 280G

In the event that it is determined by the Company in its sole discretion that any payment or benefit to the Executive under this Agreement, or otherwise, either cash or non-cash, that the Executive has the right to receive from the Company, including, but not limited to, accelerated vesting or payment of any deferred compensation, restricted stock or any benefits payable to Executive under any plan for the benefit of employees, would constitute an “excess parachute payment” (as defined in Section 280G of the Code), then such payments or other benefits will be either (a) delivered in full, or (b) delivered as to such lesser extent which would result in no portion of such payments or benefits being subject to excise tax under Section 4999 of the Code, whichever of the foregoing amounts, taking into account the applicable federal, state and local income taxes and the excise tax imposed by Section 4999 of the Code, results in the receipt by Executive on an after-tax basis of the greatest amount of payments and benefits, notwithstanding that all or some portion of such payments or benefits may be taxable under Section 4999 of the Code.  The order in which the payment will be reduced are (i) cash payments; (ii) equity-based payments that are taxable; (iii) equity-based payments that are not taxable; (iv) equity-based acceleration; and (v) other non-cash forms of benefits.  Within any such category of payments and benefits (that is, (i), (ii), (iii), (iv) or (v)), a reduction shall occur first with respect to amounts that are not “deferred compensation” within the meaning of Section 409A of the Code and then with respect to amounts that are.  In no event will Executive have any discretion with respect to the ordering of payment reductions.

 

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IN WITNESS WHEREOF, the parties have executed this Agreement on the day and year first above written. 

 

 

 

	
 
	
 
	
SPARK NETWORKS, INC.

	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
/s/ Michael S. Egan

	
 
	
 
	
Name: 
	
Michael S. Egan

	
 
	
 
	
Title:
	
Chief Executive Officer

 

 

 

 

 

 

	
 
	
 
	
SHAILEN MISTRY

	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
/s/ Shailen MistryExhibit 10.1

 

RJHDC, LLC,

 

Landlord

 

and

 

RECORD TOWN, INC. and TRANS WORLD
ENTERTAINMENT CORPORATION,

 

Tenant

 

 

 

AMENDED AND RESTATED LEASE

 

 

 

dated as of December 4, 2015

 

38 Corporate Circle, Albany, New York

    	 

    	

    

TABLE OF CONTENTS

 

	 	Page
	 	 
	ARTICLE 1 DEMISE, RENT AND DEFINITIONS	1
	 	 
	ARTICLE 2 USE, COMPLIANCE AND SIGNS	5
	 	 
	ARTICLE 3 CONDITION OF PREMISES	5
	 	 
	ARTICLE 4 TAX PAYMENTS	6
	 	 
	ARTICLE 5 [INTENTIONALLY OMITTED]	7
	 	 
	ARTICLE 6 SUBORDINATION TO MORTGAGES, LEASES AND DECLARATION OF RESTRICTIONS	7
	 	 
	ARTICLE 7 QUIET ENJOYMENT	8
	 	 
	ARTICLE 8 ASSIGNMENT, SUBLETTING AND MORTGAGING	9
	 	 
	ARTICLE 9 COMPLIANCE WITH LEGAL REQUIREMENTS	11
	 	 
	ARTICLE 10 INSURANCE	12
	 	 
	ARTICLE 11 ALTERATIONS	13
	 	 
	ARTICLE 12 LANDLORD’S AND TENANT’S PROPERTY; REMOVAL AT END OF TERM	17
	 	 
	ARTICLE 13 REPAIRS AND MAINTENANCE	18
	 	 
	ARTICLE 14 ELECTRIC ENERGY	20
	 	 
	ARTICLE 15 HEAT, VENTILATION AND AIR CONDITIONING	21
	 	 
	ARTICLE 16 OTHER SERVICES, SERVICE INTERRUPTION	21
	 	 
	ARTICLE 17 ACCESS, NOTICE OF OCCURRENCES, WINDOWS, NAME OF BUILDING AND NO DEDICATION	22
	 	 
	ARTICLE 18 NON-LIABILITY AND INDEMNIFICATION	23
	 	 
	ARTICLE 19 DAMAGE OR DESTRUCTION	25
	 	 
	ARTICLE 20 EMINENT DOMAIN	27
	 	 
	ARTICLE 21 SURRENDER AND HOLDING OVER	28
	 	 
	ARTICLE 22 DEFAULT	28

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TABLE OF CONTENTS (continued)

 

	 	Page
	 	 
	ARTICLE 23 RE-ENTRY BY LANDLORD	30
	 	 
	ARTICLE 24 DAMAGES	30
	 	 
	ARTICLE 25 WAIVERS	32
	 	 
	ARTICLE 26 CURING TENANT’S DEFAULTS AND COSTS OF ENFORCEMENT	33
	 	 
	ARTICLE 27 BROKER	33
	 	 
	ARTICLE 28 NOTICES	33
	 	 
	ARTICLE 29 ESTOPPEL CERTIFICATES, FINANCIAL STATEMENTS, AND MEMORANDUM OF LEASE	34
	 	 
	ARTICLE 30 FORCE MAJEURE	34
	 	 
	ARTICLE 31 CONSENTS	35
	 	 
	ARTICLE 32 MISCELLANEOUS	36
	 	 
	ARTICLE 33 Landlord’s Default	38
	 	 
	 ARTICLE 34 [INTENTIONALLY OMITTED]	38
	 	 
	ARTICLE 35 [INTENTIONALLY OMITTED]	39
	 	 
	ARTICLE 36 ABILITY TO CONTEST ADDITIONAL CHARGES	39
	 	 
	ARTICLE 37 WAIVER OF LANDLORD’S LIEN	40
	 	 
	ARTICLE 38 TENANT FINANCING	40

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EXHIBITS AND SCHEDULES

 

Schedule 1 – FIXED RENT

 

Exhibit A – DEMISED PREMISES

 

Exhibit B – THE LAND

 

Exhibit C-1– REQUIRED WORK

 

Exhibit C-2 – REQUIRED WORK REPORTS

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This Amended and Restated Lease, dated
as of December 4, 2015 (together with all Exhibits and Schedules attached hereto and made a part hereof, and as may be amended,
modified, extended or otherwise modified from time to time, this “Lease”), between RJHDC, LLC, having its principal
office at P.O. Box 12935, County of Albany, State of New York 12212 (“Landlord”) and RECORD TOWN, INC. and TRANS
WORLD ENTERTAINMENT CORPORATION, each a New York corporation having their principal offices at 38 Corporate Circle, Albany County,
New York (“Tenant”).

 

W I T N
E S S E T H :

 

WHEREAS, pursuant to a lease dated as
of April 1, 1985, as amended by that certain Addendum to Agreement dated April 1, 1985 (the “Existing 1985 Lease”)
between Landlord and Tenant, Landlord leased to Tenant an office building and distribution center located at 38 Corporate Circle,
Albany, New York (“1985 Demised Premises”);

 

WHEREAS, pursuant to a lease dated as
of November 1, 1989 (the “Existing 1989 Lease”) between Landlord and Tenant, Landlord leased to Tenant additional
warehouse space located partially on the 1985 Demised Premises and extending onto a contiguous parcel owned by Landlord and as
more fully described on Exhibit A, B and C attached thereto (the “1989 Demised Premises”);

 

WHEREAS, pursuant to a lease dated as
of September 1, 1998 (the “Existing 1998 Lease” and together with the Existing 1985 Lease and Existing 1989 Lease,
the “Existing Leases”) between Landlord and Tenant, Landlord leased to Tenant additional office space
located partially on the 1985 Demised Premises and extending onto a contiguous parcel owned by Landlord and as more fully described
on Exhibit A, B and C attached thereto (the “1998 Demised Premises” and together with the 1985 Demised Premises
and 1989 Demised Premises, collectively, the “Demised Premises”);

 

WHEREAS,
Landlord and Tenant, desire to amend and restate the Existing Leases, all on the terms and conditions set forth herein.

 

NOW, THEREFORE,
in consideration of the mutual promises herein contained, and other good and valuable consideration, the receipt and sufficiency
of which are hereby mutually acknowledged, Landlord and Tenant agree hereby mutually agree that the Existing Leases be amended
and restated as follows:

 

ARTICLE 1

 

DEMISE, RENT AND DEFINITIONS

 

1.1 (a) Landlord and Tenant hereby
amend and restate the Existing Leases in their entirety, and Landlord hereby leases to Tenant, and Tenant hereby hires from
Landlord, upon and subject to all of the terms and conditions of this Lease, the

    	 

    	

    

Demised Premises comprised of that certain office and warehouse
space as more fully described on Exhibit A attached hereto, located on land more commonly known as 38 Corporate Circle,
Albany, New York, together with all fixtures, improvements and decorations of all walls now installed in the Demised Premises.
The land is more fully described in Exhibit B attached hereto (the “Land”). The Demised Premises
and the Land are collectively referred to as the “Property”). The Landlord represents that, to the best of its
knowledge, the Demised Premises shall be deemed to have a rentable area of 39,800 square feet of office space and 141,500 square
feet of warehouse space, the Demised Premises shall be deemed to have a total rentable area of 181,300 square feet. Tenant
shall have the right to verify the rentable square footage of the Demised Premises within thirty (30) days following execution
hereof. If Tenant’s and Landlord’s space planners cannot agree on the rentable square footage of the Demised Premises
within ten (10) days after the Commencement Date, then the two (2) space planners, using reasonable discretion, shall mutually
select a third space planner to make the final decision, which decision shall not entail a number that is greater than the larger
number proposed by the two (2) space planners or a number that is less than the smaller number proposed by the two (2) space planners.
Each party shall pay the fees of its own space planner and shall share equally the fees for the third space planner. In the event
that the number of rentable square feet as determined by the space planner(s) is different from the original determination of rentable
square footage mentioned above, Landlord and Tenant shall execute an amendment to this Lease setting forth the exact number of
rentable square feet and adjusting all payments and pro-rations hereunder, as necessary. Tenant acknowledges and agrees
that all obligations, including the obligation to pay rent and additional rent under the Existing Leases shall remain in effect
until the Commencement Date (as hereinafter defined) and Tenant shall continue to pay all such existing rent and additional rent
as the same shall become due and payable under the Existing Leases until Commencement Date.

 

1.2 The term of this Lease
(“Term”) shall commence on January 1, 2016 (the “Commencement Date”) and shall end at
11:59 p.m. on December 31, 2020 (such date, as may be extended as provided herein, the “Expiration Date”),
or on such earlier date upon which this Lease shall sooner terminate for any reason. The period commencing on the
Commencement Date through and including December 31, 2020 shall be referred to herein as the “Initial
Term”).

 

1.3 Commencing on the Commencement
Date, Tenant shall pay Landlord the following rents:

 

(i) fixed rent (“Fixed Rent”)
as set forth on Schedule 1 attached hereto, which Fixed Rent shall be payable in equal monthly installments in advance on
the Commencement Date and on the first day of each and every calendar month thereafter during the Initial Term;

 

(ii) additional rent (“Additional
Charges”) consisting of all other sums of money that become due from Tenant and payable to Landlord pursuant to the terms
hereof, which Additional Charges shall be payable within thirty (30) days following demand, except as may be specifically provided
otherwise in this Lease. All

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Fixed Rent and Additional Charges shall be paid to Landlord
in lawful money of the United States by wire transfer to the account designated by Landlord to Tenant. Landlord may at any time
and from time to time designate a different account for wire transfer upon thirty (30) days’ prior written notice to Tenant;
and

 

1.4 Tenant shall pay Fixed Rent and Additional
Charges promptly when due without notice or demand therefor (except as may be otherwise provided elsewhere in this Lease for Additional
Charges) and without any abatement, deduction or setoff for any reason except as otherwise expressly provided in this Lease. Landlord
shall have the same remedies for default in payment of Additional Charges as Landlord has for default in payment of Fixed Rent.
If the Commencement Date or Expiration Date occurs on a day other than the first or last day of a calendar month, as the case may
be, Fixed Rent for the partial calendar month shall be appropriately adjusted.

 

1.5 No payment by Tenant or receipt or
acceptance by Landlord of a lesser amount than the correct Fixed Rent or Additional Charges shall be or be deemed to be other than
a payment on account, nor shall any endorsement or statement on any check or any letter accompanying any check or payment be or
be deemed an accord and satisfaction, and Landlord may accept such check or payment without prejudice to Landlord’s right
to recover the balance or pursue any other remedy provided in this Lease or at law or in equity. No payment by Tenant shall preclude
Tenant from later contesting such payment in accordance with this Lease.

 

1.6 It is understood and agreed that the
general intent and purposes of this Lease shall be a triple net lease with respect to Landlord. The Tenant shall pay all of the
actual Taxes (as hereinafter defined), Tenant’s insurance, utilities, repairs and all normal maintenance costs for the entire
Demised Premises, except for such costs, expenses and obligations that are responsibility of the Landlord as more fully set forth
herein.

 

1.7 The following terms, whenever used
in this Lease, shall have the meanings indicated:

 

(a) The term “Business Days”
shall mean such Mondays, Tuesdays, Wednesdays, Thursdays and Fridays that do not fall on the days celebrated as New Year’s
Day, Martin Luther King Day, Presidents’ Day, Memorial Day, Independence Day, Labor Day, Columbus Day, Veterans Day, Thanksgiving
Day, day after Thanksgiving or Christmas Day, or on such other days as may now or hereafter be celebrated as holidays or on which
there is no regular United States postal service.

 

(b)  The term “Hazardous Substance”
means radon, formaldehyde, urea, chlorofluorocarbons, or any flammable substance, explosive, radioactive material, asbestos, chemical
known to cause cancer or reproductive toxicity, pollutant, contaminant, hazardous waste, medical waste, toxic substance or related
material, petroleum or petroleum product, or other substance declared to be hazardous or toxic under environmental law applicable
to the Premises, or toxic mold.

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(c)  The term “Landlord”
shall mean only the owner at the time in question of the Property, so that in the event of any transfer or transfers of title to
the Property, whether by sale or assignment or superior lease of all or substantially all of the Land, the transferor shall be
relieved and freed of all obligations of Landlord under this Lease accruing from and after the date of transfer (but shall not
be relieved of any obligations accruing up to the date of transfer and Landlord shall be subject to the provisions of Article 19),
provided the transferee shall agree in writing to perform and observe all obligations of Landlord under this Lease during the period
it is the holder of Landlord’s interest under this Lease, subject, however, to the provisions of Article 19.

 

(d) The term “Lease Year”
shall mean the twelve month period commencing on January 1, 2016 and ending on December 31, 2016, and each subsequent twelve month
period thereafter during the Term.

 

(e) The term “Legal Requirements”
shall mean laws and ordinances of federal, state, city, town, county, borough and village governments having jurisdiction over
the Property, Landlord and/or Tenant, as applicable, and rules, regulations, orders and directives of all departments, subdivisions,
bureaus, agencies or offices thereof, and of any other governmental, public or quasi-public authorities having jurisdiction over
the Property, Landlord and/or Tenant, as applicable, and the directions of any public officers having jurisdiction over the Property,
Landlord and/or Tenant, as applicable, pursuant to law, whether now or hereafter in force, including, without limitation, all laws
governing environmental conditions caused by Tenant at any time occupying the Demised Premises or arising from Tenant’s use
or occupancy of the Demised Premises, or Tenant’s use, generation, storage, transportation, or disposal of Hazardous Substances.

 

(f) The term “Tenant Affiliate”
shall mean (x) a wholly-owned subsidiary of Tenant or any corporation or entity that directly, or indirectly through one or more
intermediaries, controls or is controlled by Tenant or is under common control with Tenant, or (y) any entity (i) to which substantially
all the assets of Tenant are transferred, or (ii) into which Tenant may be merged or consolidated, provided that any such transaction
complies with the other provisions of this Lease. For purposes of this Lease, “control” shall be deemed to be ownership
of more than fifty percent (50%) of the stock or other voting interest of the controlled corporation and when used with respect
to an entity that is a partnership, limited liability company, tenancy-in-common or other business entity, more than 50% of all
of the legal and equitable interests in a partnership, limited liability company, tenancy-in-common or other business entity (determined
without regard to cash flow preferences and similar items).

 

(g) The term “untenantable”
shall mean a condition resulting in Tenant being unable to use or have commercially reasonable access to all or a material portion
of the Demised Premises for the normal conduct of Tenant’s business.

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ARTICLE 2

 

USE, COMPLIANCE AND SIGNS

 

2.1 The Demised Premises shall be used
and occupied by Tenant (and its permitted subtenants, invitees and assignees) as a warehouse and office and for any other lawful
purpose. Landlord has delivered to Tenant a true and correct copy of the certificate of occupancy with respect to the Demised Premises.

 

2.2 If any governmental license or permit
is required for the proper and lawful conduct of Tenant’s business in the Demised Premises, Tenant, at its expense, shall
procure and maintain such license or permit and submit the same to Landlord for inspection. Landlord agrees, at Tenant’s
cost and expense, to reasonably cooperate with Tenant in Tenant’s efforts to procure any such license or permit. Tenant shall
at all times comply with the terms and conditions of each such license or permit. Tenant shall not use, or suffer or permit any
person to use, the Demised Premises, or any part thereof, in any manner which (a) violates the certificate of occupancy for the
Demised Premises or any other permit or license issued pursuant to any Legal Requirements, (b) except to a de minimis amount,
causes injury to the Demised Premises (provided Tenant shall repair such injury at its cost and expense), or (c) constitutes
an actionable violation of the Legal Requirements. Landlord represents that the use of the Demised Premises as set forth above
does not violate the certificate of occupancy.

 

2.3 Any and all existing signage in the
name of Tenant located at the Property is permitted at the Property and is be deemed approved by the Landlord.

 

ARTICLE 3

 

CONDITION OF PREMISES

 

3.1 Tenant has examined the Demised Premises
and agrees to accept the same in its “as is” condition and state of repair existing as of the date hereof subject to
the Required Work (as hereinafter defined) to be performed pursuant to Section 11.4 and subject to normal wear and tear, and the
repair obligations set forth herein including the Required Work (as hereinafter defined) and understands and agrees that Landlord
shall not be required to perform any work, supply any materials or incur any expense to prepare the Demised Premises for Tenant’s
occupancy, other than as set forth herein. To the extent that on the Commencement Date any furnishings and/or other articles of
movable personal property of Landlord (the “Landlord’s Personal Property”) remains in the Demised Premises,
the Landlord’s Personal Property shall become part of the Demised Premises (at no additional cost to Tenant), and shall be
treated for all purposes of this Lease as if it were Tenant’s Property (as hereinafter defined).

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ARTICLE 4

 

TAX PAYMENTS

 

 4.1 Tenant covenants and
agrees to pay, before any fine, penalty, interest or cost may be added thereto for the non-payment thereof, all property taxes,
assessments, water and sewer rates and charges, and other governmental charges, general and special, ordinary and extraordinary,
unforeseen as well as foreseen, of any kind and nature whatsoever (all of which taxes, assessments, water and sewer rates or charges,
and other governmental charges are hereinafter referred to as “Taxes”), that are assessed, levied, imposed or become
a lien upon the Demised Premises, or become payable, during the term of this Lease; provided, however, that if, by law, any such
Tax may at the option of the taxpayer be paid in installments (whether or not interest shall accrue on the unpaid balance of such
imposition), Tenant may exercise the option to pay the same (and any accrued interest on the unpaid balance of such Tax) in installments
and shall pay only such installments as may become due during the term of this Lease as the same respectively become due and before
any fine, penalty, interest or cost may be added thereto, for the non-payment of any such installment and interest; and provided,
further, that Tax relating to a fiscal period of the taxing authority, a part of which period is included within the term of this
Lease and a part of which is included in a period of time after the termination of this Lease, shall (whether or not such Tax shall
be assessed, levied, imposed or become a lien upon the Demised Premises, or shall become payable, during the term of this Lease)
be adjusted between Landlord and Tenant as of the expiration of the term of this Lease, so that Landlord shall pay that portion
of such Tax that relates to that part of the fiscal period after the termination of this Lease, and Tenant shall pay that portion
of which relates to the period prior to the termination of the Lease. In the event that Landlord pays a Tax which is responsibility
of the Tenant under this Lease, such Tax will be considered an Additional Charge due and payable to Landlord.

 

4.2. Nothing
contained in this Lease shall require Tenant to pay any franchise, corporate, estate, inheritance, succession, capital levy, stamp
tax or transfer tax of Landlord, or any income, excess profits or revenue tax or any other tax, assessment, charge or levy upon
the Fixed Rent or Additional Charges payable by Tenant under this Lease, nor shall any tax, assessment, charge or levy of the character
hereinabove in this Section described be deemed to be included within the term “Taxes” as defined above.

 

4.3. Tenant
covenants, upon request of Landlord, to furnish to Landlord for inspection by it within sixty (60) days after the date when any
Tax is payable, official receipts of the appropriate taxing authority, or other evidence reasonably satisfactory to Landlord, evidencing
the payment of such Tax.

 

4.4. Tenant
shall have the right to contest amount or validity, or to seek a refund, in whole or in part, of any Tax by appropriate proceedings.
Upon the termination of such proceedings, Tenant shall pay the amount of such Tax or part thereof as finally determined in such
proceedings, the payment of which may have been deferred during the prosecution of such proceedings, together with any costs, fees,
interest, penalties or other liabilities in connection therewith. Landlord agrees not to unreasonably withhold,

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condition or delay its consent to
joining in any such proceedings or permitting the same to be brought in its name. Landlord shall not ultimately be subjected to
any liability for the payment of any costs or expenses in connection with any such proceeding, and Tenant covenants to indemnify,
save and hold harmless Landlord from any such costs or expenses. Tenant shall be entitled promptly to any refund of any such Tax
and penalties or interest thereon that have been paid by Tenant, or that have been paid by Landlord and for which Landlord has
been fully reimbursed.

 

4.5. The certificate,
advice or bill of the appropriate official designated by law to make or issue the same or to receive payment of any Tax, of non-payment
thereof, shall be prima facie evidence that such Tax is due and unpaid at the time of the making or issuance of such certificate,
advice or bill.

 

ARTICLE 5

 

[INTENTIONALLY OMITTED]

 

ARTICLE 6

 

SUBORDINATION TO MORTGAGES, LEASES
 AND DECLARATION OF RESTRICTIONS

 

6.1 Tenant agrees to subordinate its interest
under this Lease to all mortgages now or hereafter existing affecting the Property, whether or not such mortgages also cover other
lands and/or buildings and/or leases, to each and every advance made or hereafter to be made under such mortgages, and to all renewals,
modifications, replacements and extensions of such leases and mortgages, and spreaders and consolidations of such mortgages provided
that, as a condition to such subordination, Tenant, Landlord and the party to whose interest Tenant agrees to subordinate its interest
under this Lease shall execute and deliver to each other a subordination, non-disturbance and attornment agreement in a commercially
reasonable form mutually acceptable to each party, providing that, so long as Tenant is not in default under this Lease beyond
any applicable notice and cure period, this Lease shall remain in full force and effect and the holder of the mortgage and any
purchaser at foreclosure shall not disturb Tenant’s leasehold estate evidenced by this Lease or the rights granted to Tenant hereunder.
In confirmation of such subordination, non-disturbance or priority, Landlord and Tenant shall promptly execute, acknowledge and
deliver any instrument that Landlord, Tenant, and holder of any such mortgage may reasonably request to evidence such subordination,
non-disturbance or priority, such instrument to be in a commercially reasonable form acceptable to each party. Any mortgage to
which this Lease is subject and subordinate is herein called a “Superior Mortgage” and the holder of a Superior
Mortgage is herein called a “Superior Mortgagee”. Landlord represents and warrants to Tenant that there is no
Superior Mortgage presently encumbering any portion of the Property.

 

6.2 On condition that Tenant, Landlord
and the Superior Mortgagee enter into a subordination, non-disturbance and attornment agreement as described in

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Section 6.1, Tenant covenants and agrees that if the
holder of a Superior Mortgage succeeds to the interest of Landlord hereunder, then at the option of the then holder of the reversionary
interest in the Demised Premises demised by this Lease, Tenant will attorn to such holder and will recognize such holder as the
Tenant’s Landlord under this Lease, except that such holder shall not be (i) liable for any previous act or omission
of Landlord under this Lease, (ii) subject to any offsets or defenses, not expressly provided in this Lease, to the extent
the same theretofore accrued to the Tenant against Landlord, (iii) liable for any security deposited by Tenant which has not
been transferred to such holder, (iv) bound by any previous prepayment of more than one month’s rent, other than overpayments
in respect of Taxes, and (v) bound by any obligation to make any payment to, or on behalf of, the Tenant or provide any services
or perform any repairs, maintenance or restoration provided for under this Lease to be performed before the date that such holder
succeeded to the interest of Landlord under this Lease or bound by any obligation to make any payment to Tenant with respect to
construction performed by, or on behalf of, Tenant at the Demised Premises. Tenant agrees, at Landlord’s cost and expense,
to execute and deliver, at any time and from time to time, upon the request of Landlord or of the holder of any Superior Mortgage
any commercially reasonable instrument which may be necessary or appropriate to evidence such attornment.

 

6.3 If any prospective or actual Superior
Mortgagee requires any modification of this Lease, Tenant, upon notice thereof from Landlord, shall use commercially reasonable
efforts to promptly execute and deliver to Landlord any reasonable instrument accompanying said notice from Landlord to effect
such modification if such instrument is in reasonable form and (i) does not adversely affect any of Tenant’s rights
under this Lease and (ii) does not increase any of Tenant’s obligations or decrease any of Tenant’s rights under
this Lease.

 

ARTICLE 7

 

QUIET ENJOYMENT

 

7.1 So long as no Event of Default shall
have occurred and be continuing, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises without hindrance,
ejection or molestation by Landlord or any person claiming through or under Landlord, subject to the provisions of this Lease and/or
any Superior Mortgages. This covenant shall be construed both as a covenant running with the Land and as a personal covenant of
Landlord.

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ARTICLE 8

 

ASSIGNMENT, SUBLETTING AND MORTGAGING

 

8.1 Tenant shall not, voluntarily, involuntarily,
by operation of law or otherwise, except with the prior consent of Landlord (which consent shall not be unreasonably withheld,
conditioned or delayed) or as otherwise expressly permitted in this Article 8: (a) assign or otherwise transfer this
Lease, or (b) sublet the Demised Premises or any part thereof, or allow same to be used, occupied or utilized by any person
other than Tenant. Notwithstanding the foregoing, Tenant may permit Tenant Affiliates to occupy all or any portion of the Premises
without the prior consent of Landlord, subject to all other provisions of this Lease.

 

8.2 Tenant shall have the right, without
Landlord’s consent, to assign this Lease with respect to the Demised Premises, or sublease all or part of the Demised Premises
for the uses permitted hereunder, to a Tenant Affiliate, provided that (a) Landlord is given notice thereof and, upon request,
reasonably satisfactory proof that the requirements of this Lease have been met and (b) Tenant agrees it shall remain liable, jointly
and severally, with any assignee, for the obligations of Tenant under this Lease.

 

8.3 If this Lease is assigned, whether
or not in violation of the provisions of this Lease, Landlord may collect rent from the assignee. If the Demised Premises or any
part thereof is sublet or occupied by any person other than Tenant, whether or not in violation of this Lease, Landlord may, after
default by Tenant beyond applicable notice, grace and cure periods, collect rent from the subtenant or occupant. In either of such
events, Landlord shall apply the net amount collected to Fixed Rent and Additional Charges herein reserved and which are or become
due and payable, but no such assignment, subletting, occupancy or collection shall be nor be deemed to be a waiver of any of the
provisions of this Article, or the acceptance of the assignee, subtenant or occupant as Tenant, or a release of Tenant from the
performance by Tenant of Tenant’s obligations under this Lease. The consent by Landlord to any assignment, mortgaging, subletting
or occupancy by others shall not relieve Tenant of the obligation to obtain the consent of Landlord to any other or further assignment,
mortgaging, subletting or occupancy by others not expressly permitted by this Article.

 

8.4 Any assignment or equivalent transfer,
whether or not Landlord’s consent is required, shall be made only if and shall not be effective until the assignee executes
and delivers to Landlord an agreement in form and substance reasonably satisfactory to Landlord and assignee whereby the assignee
assumes the obligations of Tenant under this Lease and whereby the assignee agrees that the provisions of this Article shall,
notwithstanding such assignment or transfer, continue to be binding upon it in respect of all future assignments and transfers.
Notwithstanding any assignment or transfer, whether or not in violation of the provisions of this Lease, and notwithstanding the
acceptance of Fixed Rent or Additional Charges by Landlord from an assignee, transferee, or any other person, the original Tenant
herein named and any and all successors in interest of the original Tenant herein named shall remain fully liable (jointly and
severally with any immediate or remote successor in interest, including the

    	9

    	

    

then Tenant) for the payment of Fixed Rent and Additional Charges
and for the other obligations of Tenant under this Lease.

 

8.5 The liability pursuant to this Lease
of the original Tenant herein named and any immediate or remote successor in interest of the original Tenant herein named shall
not be discharged, released or impaired in any respect by any agreement or stipulation made by Landlord with the then Tenant extending
the time of, or modifying any of the obligations under, this Lease (except to the extent any such modification increases the obligations
of the then Tenant), or by any waiver or failure of Landlord to enforce any of the obligations of Tenant under this Lease.

 

8.6 Neither the listing of any name other
than that of Tenant, whether on Demised Premises or otherwise, nor the acceptance by Landlord of any check drawn by a person other
than Tenant in payment of Fixed Rent or Additional Charges, shall operate to vest in any person any right or interest in this Lease
or in the Demised Premises, nor shall same be deemed to be the consent of Landlord to any assignment or transfer of this Lease
or to any sublease of the Demised Premises or to the occupancy thereof by any person other than Tenant.

 

8.7 With respect to any subletting to any
subtenant and/or acceptance of rent or additional rent by Landlord from any subtenant, (a) Tenant shall remain fully liable
for the payment of Fixed Rent and Additional Charges due and to become due hereunder and for all of the other obligations of Tenant
under this Lease and (b) Tenant shall remain fully liable for all acts and omissions of any licensee or subtenant or any person
claiming through or under any licensee or subtenant that are in violation of any of the obligations of Tenant under this Lease,
and any such violation shall be deemed to be a violation by Tenant. Notwithstanding any such subletting, no other or further subletting
of the Demised Premises by Tenant or any person claiming through or under Tenant shall be made except in compliance with and subject
to the provisions of this Article.

 

8.8 In respect of every permitted sublease:

 

(a) no sublease shall be for a term ending
later than the day before the Expiration Date,

 

(b) no sublease shall be valid, and no
subtenant shall take possession of the Demised Premises or any part thereof, until an executed counterpart of such sublease shall
have been delivered to Landlord,

 

(c) each sublease shall provide that
it is subject and subordinate to this Lease and to the matters to which this Lease is or shall be subordinate, and that in the
event of termination, reentry or dispossess by Landlord under this Lease, Landlord may, at its option, take over all of the right,
title and interest of Tenant, as sublessor, under such sublease, and such subtenant shall, at Landlord’s option, attorn to
Landlord pursuant to the then executory provisions of such sublease and execute and deliver such instruments as Landlord may reasonably
request to evidence and confirm such attornment, except that Landlord shall not be (i) liable for any previous act or

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omission of Tenant under such sublease, (ii) subject to
any offset which had accrued to such subtenant against Tenant, (iii) bound by any previous modification of such sublease not
consented to by Landlord or by any prepayment of more than one month’s rent or additional rent, (iv) obligated to make
any payment to or on behalf of such subtenant or to perform any repairs or other work in the subleased space or the Property beyond
Landlord’s obligations under this Lease, or (v) required to account for any security deposit other than any actually
delivered to Landlord,

 

(d) Tenant shall not publicly advertise
the rental rate or any description thereof to be paid by the proposed subtenant or assignee, and

 

8.9 If Tenant at any time requests Landlord
to sublet the Premises for Tenant’s account, Landlord is authorized to receive keys for such purpose without releasing Tenant
from any of its obligations under this Lease, and Landlord shall exercise reasonable care to prevent damage to Tenant’s Property
and the Demised Premises.

 

8.10 Notwithstanding any other provision
of this Lease, the transfer of any stock, partnership or other ownership interests of Tenant (other than the transfer of control
of Tenant by one entity which controls Tenant or by several entities which are Tenant Affiliates or are acting under an agreement
and collectively control Tenant) shall not constitute an assignment of this Lease if such stock, partnership or other ownership
interests are listed on a national securities exchange (as defined in the Securities Exchange Act of 1934, as amended) or is traded
in the “over the counter” market with quotations reported by the National Association of Securities Dealers (or any
successor thereto); and further provided, that any conversion of the form of entity of Tenant (however accomplished including,
by way of example (i) the conversion of Tenant from a corporation to a limited liability company, partnership or trust or (ii)
the change of jurisdiction of incorporation or registration) which does not directly or indirectly transfer control of Tenant,
reduce the tangible net worth of Tenant or reduce its liability for its obligations under this Lease shall not constitute an assignment
of this Lease provided, that the converted entity assumes by written instrument all of Tenant’s obligations under this Lease.

 

8.11 No assignment or other transfer of
this Lease and the term and estate hereby granted, and no subletting of all or any portion of the Demised Premises (in each case
whether or not Landlord’s consent is required thereto) shall relieve Tenant of its liability under this Lease or of the obligation
to obtain Landlord’s prior consent to any further assignment, other transfer or subletting to the extent such consent is
required under the terms of this Lease.

 

ARTICLE 9

 

COMPLIANCE WITH LEGAL REQUIREMENTS

 

9.1 Landlord represents that as of the
date hereof, Landlord has received no written notices of any violations of Legal Requirements with respect to the Property. Tenant
and Landlord shall give prompt notice to the other of any notice it

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receives of the violation of any Legal Requirements in respect
of the Property or the use or occupancy thereof. During the term of this Lease, Tenant shall, at Tenant’s sole cost and expense,
be responsible for complying with all Legal Requirements applicable to the Demised Premises or related to any alterations, additions
or improvements constructed by Tenant within the Demised Premises, and any Hazardous Materials on or about the Property arising
out of Tenant’s occupancy of the Demised Premises, except to the extent those Hazardous Materials were introduced by Landlord,
its employees, agents and invitees. Landlord shall comply with all Legal Requirements affecting the Property, the structural portions
of the Demised Premises, and any Hazardous Materials on or about the Property that were either (i) introduced by Landlord, its
employees, agents and invitees, or (ii) introduced prior to the Tenant’s occupancy of the Property. If any public authority
or insurance body requires or recommends any additional sprinkler heads or changes to the sprinkler system in or serving the Demised
Premises, Landlord shall promptly make and supply such additional sprinkler heads or changes at Landlord’s expense.

 

ARTICLE 10

 

INSURANCE

 

10.1 Tenant
shall carry Commercial General Liability insurance written on an occurrence form for the duration of this Lease. Such insurance
shall cover the Demised Premises and the Tenant’s contractual obligations as stipulated in this Lease. The Commercial General Liability
policy shall reflect the interests of the Landlord as an additional insured.

 

Such insurance shall
be provided in amounts not less than:

 

	Coverage	 	Limits of Liability	 
	Umbrella Aggregate Limit	 	$	25,000,000.00	 
	General Aggregate Limit	 	$	10,000,000.00	 
	Each Occurrence Limit	 	$	1,000,000.00	 
	Property Damage (including fire)	 	$	300,000.00	 
	Medical Expenses (any one person)	 	$	10,000.00	 

 

In addition to the
Commercial General Liability insurance, Tenant shall also carry the following insurance: (i) business interruption or rent loss
insurance; (ii) a policy of commercial auto liability insurance (owned and non-owned/hired) with a limit of $1,000,000.00; (iii)
a valid policy of worker’s compensation insurance complying with requirements of applicable laws, in statutory amounts (Tenant
shall not elect to be a non-subscriber under such worker’s compensation insurance program), and a policy of employer’s
liability coverage in the amount of at least $1,000,000.00 per occurrence; and (iv) insurance covering Tenant’s Property.

 

The policies should
be on a primary and non-contributory basis. Tenant shall provide a Certificate of Insurance to the Landlord evidencing coverages
in compliance with the above requirements. In the event of the cancellation, change and/or non-renewal of the coverages certified
Tenant shall provide ten (10) days advance written notice to the

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Landlord. For the avoidance of doubt, the
above liability limits shall be satisfied by the combination of Tenant’s primary liability coverages and any Umbrella Insurance
Policy held by Tenant. The parties acknowledge that Tenant’s Commercial General Liability insurance may include a deductible
up to the amount of $250,000.00.

 

10.2 Landlord
shall keep the Property, including the improvements, insured against damage and destruction by fire, earthquake, vandalism and
other perils in the amount of not less than ninety percent (90%) of the “the replacement cost” of the Property, as
such value may be prudently redetermined from time to time. Such insurance shall include extended coverage, agreed amount and other
endorsements of the kinds normally required by institutional lenders and that permit insurance proceeds to be used by Landlord
for the repair and restoration of the Property. Tenant will not do or suffer to be done anything that will contravene Landlord’s
insurance policies or prevent Landlord from procuring such policies in amounts and companies selected by Landlord. If anything
done, omitted to be done or suffered to be done by Tenant in, upon or about the Property shall cause the rates of any insurance
effected or carried by Landlord on the Property to be increased beyond the regular rate from time to time applicable to the Demised
Premises for use for the purpose permitted under this Lease, or such other property for the use or uses made thereof, Tenant will
pay the amount of such increase promptly upon Landlord’s demand and Landlord shall have the right to correct any such condition
at Tenant’s expense.

 

 10.3. All insurance
policies against loss or damage to property and business interruption or rent loss shall be endorsed to provide that any release
from liability of, or waiver of claim for recovery from, another person entered into in writing by the insured thereunder prior
to any loss or damage shall not affect the validity of such policy or the right of the insured to recover thereunder. Such policies
shall also provide that the insurer waives all rights of subrogation that such insurer might have against such other person. Landlord
and the Tenant hereby waive all claims for recovery from or against the other for any loss or damage to any of its property or
damages as a result of business interruption or rent loss insured under a valid policy to the extent of any recovery collectible
under such policies.

 

ARTICLE 11

 

ALTERATIONS

 

11.1 Tenant may from time to time, at its
expense and without obtaining the Landlord’s consent to the work or to the contractors or architects performing the work
(provided such contractors comply with the provisions of Section 11.2), make such alterations (“Alterations””)
to the Demised Premises as Tenant reasonably considers necessary for the conduct of its business in the Demised Premises, provided
and upon condition that: (a) the Alterations are non-structural and the structural integrity of the

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Demised is not affected, (b)  the proper functioning of
the mechanical, electrical, sanitary and other service systems of the Demised Premises is not adversely affected, (c) no change
in the certificate of occupancy for the Demised Premises will result from the Alterations or be required as a result thereof, and
(d) the Alterations (i) have an estimated cost that does not exceed Seven Hundred Fifty Thousand Dollars ($750,000.00) or (ii)
do not adversely affect the sprinkler, fire protection or life safety systems in or serving the Demised Premises. In addition,
Tenant shall not be required to obtain Landlord’s consent to make changes in the Demised Premises of a decorative nature
(including all work relating to painting, wall coverings, floor coverings and the installation or reconfiguration of modular office
components and/or non-structural walls). Before proceeding with any Alteration (other than the Alterations described in the first
sentence of this Section 11.1 and the decorative work described in the preceding sentence), Tenant shall submit to Landlord
for Landlord’s approval (which shall not be unreasonably withheld, conditioned or delayed, and shall be granted or denied
within ten (10) Business Days after request and if Landlord fails to respond within such ten (10) Business Day period, Landlord
shall be deemed to have approved such Alterations) scaled and dimensioned plans and specifications for the work to be done prepared
by a registered architect or licensed professional engineer, and Tenant shall not proceed with such work until it obtains such
approval. Tenant shall give Landlord a reasonable description of all other Alterations prior to commencing same. Any review or
approval by Landlord of any plans or specifications in respect of any Alterations is solely for Landlord’s benefit and without
any representation or warranty to Tenant as to the adequacy, correctness or efficiency thereof or as to the compliance of such
plans and specifications with Legal Requirements.

 

11.2 Tenant, at its expense, shall obtain
all necessary governmental permits and certificates for the commencement and prosecution of Alterations and for final approval
thereof upon completion, and shall cause Alterations to be performed in compliance therewith and with all applicable Legal Requirements.
Landlord shall cooperate promptly, as reasonably requested by Tenant, in obtaining all such permits, certificates and approvals.
Alterations shall be performed in a good and workerlike manner, using new materials and equipment at least equal in quality and
class to the then standards for the Demised Premises established by Landlord and shall be diligently performed to completion. Alterations
shall be performed by contractors, construction managers, subcontractors, architects and/or engineers selected by Tenant, subject
to Landlord’s approval, such approval not to be unreasonably withheld, conditioned or delayed. Alterations performed by any
of Tenant’s contractors, construction managers, subcontractors architects and/or engineers shall be performed in such a manner
as not to violate union contracts affecting the Property, or to create any work stoppage, picketing, labor disruption or dispute
or any unreasonable interference with the business of Landlord. In addition, Alterations shall be performed in such a manner as
not to otherwise unreasonably interfere with or delay and as not to impose any material additional expense upon Landlord in the
construction, maintenance, repair, operation of the Property. Throughout the performance of Alterations, Tenant shall carry, or
cause its contractors to carry, workers’ compensation insurance in statutory limits, “Builder’s Risk” insurance
reasonably satisfactory to Landlord, and comprehensive general liability insurance, with completed operations endorsement, for
any occurrence in or about the Demised Premises, under which Landlord and any Superior Mortgagees whose names

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and addresses were furnished to Tenant shall be named as additional
insureds, in a coverage amount of not less than $2,000,000, with insurers reasonably satisfactory to Landlord. Tenant shall furnish
Landlord with reasonably satisfactory evidence that such insurance is in effect before the commencement of Alterations. Upon completion
of any Alterations (other than mere decorations) Tenant shall deliver to Landlord “as-built” plans for such Alteration
in diskette or other electronic format.

 

11.3 Tenant, at its expense, shall promptly
procure the cancellation or discharge of all notices of violation arising from or otherwise resulting from Alterations to the Demised
Premises, or any other work, labor, services or materials done for or supplied to Tenant (other than those supplied or performed
by Landlord) or any person claiming through or under Tenant which are issued by the Department of Buildings or any other public
authority having or asserting jurisdiction. Tenant shall indemnify Landlord against liability in connection with any and all mechanics’
and other liens and encumbrances filed in connection with Alterations, or any other work, labor, services or materials done for
or supplied to Tenant or any person claiming through or under Tenant (other than those supplied or performed by Landlord), including
security interests in any materials, fixtures or articles so installed in the Demised Premises. Tenant, at its expense, shall procure
the satisfaction or discharge of record of all such liens and encumbrances within sixty (60) days after the Tenant receives actual
notice of the filing thereof. If Tenant shall fail to cause such lien to be discharged of record within the period aforesaid, then,
in addition to any other right or remedy, Landlord may, but shall not be obligated to, discharge the same of record as aforesaid
in any manner permitted by law.

 

11.4 Prior to the execution of this
Lease, Landlord and Tenant have jointly inspected the Demised Premises and reviewed a certain building repair reports dated January
13, 2015 and January 17, 2015 (collectively, the “Required Work Report”) prepared by qualified third party professionals.
Landlord and Tenant hereby acknowledge and agree that certain repairs and/or replacements must be made to remedy certain defective
conditions in the Demised Premises, such repairs and replacements are more fully described on Exhibit C-1 attached hereto (the
“Required Work”). A description of the Required Work Reports are attached as Exhibit C-2.

 

A. Tenant shall, at Tenant’s sole
cost and expense (subject to Landlord’s reimbursement obligation below), have the one-time obligation to make or cause to
be made all repairs and replacements required in connection with the Required Work. The Tenant shall use commercially reasonable
efforts to complete the Required Work on or before December 31, 2015; provided, however, if the Required Work is not completed
by such date Tenant will cause the Required Work to be completed no later than April 30, 2016, subject to any (i) Force Majeure
Events (as hereinafter defined) or (ii) days of delay caused by any acts or omissions of Landlord. The parties acknowledge and
agree that after the completion of the Required Work during the remainder of the term of the Lease, Tenant shall, at Tenant’s
cost and expense, maintain in good order and repair the Demised Premises in accordance with the terms of this Lease. Tenant shall
promptly commence such Required Work and shall proceed with such Required Work with due diligence until completion in such a manner
as not to cause the Demised Premises to be

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in non-compliance with any Legal Requirements. Landlord shall
cooperate with Tenant in the procurement of any permits, licenses or approvals from any governmental authority required in connection
with such Required Work.

 

B. Tenant shall use such contractors
which are reasonably acceptable to Landlord for the performance of the Work. Upon (i) Landlord’s reasonable determination
that the Required Work has been substantially completed, (ii) submission of written unconditional lien waivers from all contractors
or subcontractors performing any of the Required Work together with copies of the invoices marked paid relating to such Required
Work or in lieu thereof, a signed affidavit by an officer of Tenant stating that all Required Work has been paid for, (iii) the
assignment to Landlord of any warranty or guaranty documentation for any portion of the Required Work relating to the Demised Premises
and (iv) all building department sign-offs, approvals and inspection certificates and any permits required to be issued by the
building department or any other governmental entities having jurisdiction thereover, if necessary, Landlord shall reimburse and
pay to Tenant all costs and expenses for or in connection with the Required Work in an amount equal to fifty (50%) percent of the
actual documented costs and expenses incurred in connection with the Required Work; provided, however, in no event shall
the Landlord’s payment obligation in connection with the Required Work exceed Five Hundred Thousand Dollars ($500,000) (the
“Landlord Payment”). Such Landlord Payment shall be made within fifteen (15) days of Landlord’s receipt
of documentation satisfying all the requirements of this subparagraph (B)(i) to (iv). Notwithstanding the foregoing provisions,
if Tenant is materially delayed in obtaining requirements (iii) or (iv) with respect to any portion of the Required Work, notwithstanding
that the assignment of the warranty or guaranty has been requested or all necessary submissions have been made to the governmental
entity and with respect to clause (iv) the only pending item is the administrative act required of the governmental entity, then
Landlord shall reimburse and pay for that portion of the costs of the Required Work for which (i) to (iv) have been satisfied,
and shall reimburse and pay for the remaining cost once the requirement for the remaining Required Work have been satisfied.

 

C.  Tenant, at its expense, shall carry,
or cause its contractors to carry, (x) workers’ compensation insurance in statutory limits, (y) commercial general liability
insurance (with completed operations endorsement) for any occurrence in or about the Demised Premises with coverage of not less
than $2,000,000 for each occurrence and (z) builder’s all risk insurance (on a completed value basis), in such limits as
Landlord may reasonably require, with insurers reasonably satisfactory to Landlord. The commercial general liability insurance
referred to in this subparagraph shall name as additional insureds, and the builder’s all risk insurance referred to in this
subparagraph shall name as loss payees, as their interest may appear, Landlord and any Superior Mortgagee. At or before the commencement
of the Required Work and, on request, at reasonable intervals thereafter during the continuance of the Required Work, Tenant shall
furnish Landlord with certificates of insurance evidencing that such insurance is in effect.

 

D. In connection with the Required Work,
if any mechanic’s, laborer’s or materialman’s lien at any time shall be filed against the Demised Premises or
any part

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thereof or any interest therein as a result of any act or omission
of Tenant or its respective officers, employees, agents, suppliers, materialmen, mechanics, contractors, subcontractors or sub-subcontractors,
or, if any public improvement lien created or caused to be created by Tenant shall be filed against any assets of, or funds appropriated
to, Landlord, then Tenant, within sixty (60) days after actual notice of the filing thereof, shall cause the same to be discharged
of record in accordance with Section 11.3.

 

ARTICLE 12

 

LANDLORD’S AND TENANT’S PROPERTY;

REMOVAL AT END OF TERM

 

12.1 All leasehold fixtures, equipment,
improvements and appurtenances, including utility lines and equipment, attached to or built into the Demised Premises before or
after the Commencement Date, whether by or at the expense of Landlord or Tenant, shall be and remain a part of the Demised Premises,
shall be deemed the property of Landlord and shall not be removed by Tenant except as provided in Section 12.2.

 

12.2 Notwithstanding anything to the contrary
contained in this Lease, all movable partitions, business and trade fixtures, machinery and equipment, communications equipment
and office and warehouse equipment, whether or not attached to or built into the Demised Premises, which are, or were, installed
in the Demised Premises by Tenant and which can be removed without structural damage to the Demised Premises, and all furniture,
furnishings and other articles of movable personal property owned by Tenant and located in the Demised Premises and all of Landlord’s
Personal Property (collectively, “Tenant’s Property”) shall be and shall remain the property of Tenant
and may be removed by Tenant at any time during the Term, provided that if any of Tenant’s Property is installed or removed,
Tenant shall repair or pay the cost of repairing any damage to the Demised Premises resulting from the installation and/or removal
thereof, other than repainting and purely decorative repairs. At or before the Expiration Date, or within 15 days after an earlier
termination date, Tenant, at its expense, shall remove from the Demised Premises all Tenant’s Property and leave the Demised
Premises in broom clean condition, normal wear and tear, damage or destruction by fire and other casualty and such other damage
as Landlord is required to repair, maintain or restore under Section 13.2 or under any other provision under this Lease excepted).
Tenant shall repair any damage to the Demised Premises resulting from any installation and/or removal of Tenant’s Property.
Any other items of Tenant’s Property which remain in the Demised Premises after the Expiration Date, or after 15 days following
an earlier termination, may, at the option of Landlord, be deemed to have been abandoned, and in such case such items may be retained
by Landlord as its property or disposed of by Landlord at the reasonable expense of Tenant. Notwithstanding the above, the Landlord
and Tenant may agree in writing prior to the Expiration Date to those items of Tenant’s Property which Landlord will allow
to remain in the Demised Premises after the expiration of this Lease.

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12.3 At the time of Landlord’s approval
of plans and specifications for any Alterations that require Landlord’s approval hereunder, Landlord may include in its approval
a requirement that any Alterations shall, at Landlord’s option, be removed from the Demised Premises by the Tenant at the
end of the Term and the applicable portion(s) of the Demised Premises shall be restored to the condition in which they were delivered
to Tenant on the Commencement Date (subject to normal wear and tear damage or destruction by fire and other casualty). If Landlord
notifies Tenant at the time of Landlord’s approval of plans and specifications that any Alterations are to be removed, Tenant
shall remove such Alterations not later than such scheduled Expiration Date or within fifteen (15) days after the date of sooner
termination (unless the Tenant, acting with reasonable promptness, is not able to so remove the same prior to the required date,
in which event the same shall be so removed by the Tenant with reasonable promptness). The reasonable cost and expense of any such
removal (including removal by Landlord upon Tenant’s failure to do so as provided herein) and the cost of repairing any damage
to the Demised Premises arising from such removal, shall be paid by Tenant to Landlord within thirty (30) days after demand (and
such obligation shall survive the expiration or earlier termination of this Lease). All Alterations other than those specifically
required to be removed pursuant to this Article may remain in the Demised Premises upon the expiration or earlier termination of
this Lease. For the avoidance of doubt, any alteration or improvement resulting from the Required Work shall not be required to
be removed upon the expiration or earlier termination of this Lease. The provisions of this Section 12.3 shall survive the
scheduled Expiration Date or sooner termination of this Lease.

 

ARTICLE 13

 

REPAIRS AND MAINTENANCE

 

13.1 Tenant shall, at its sole cost and
expense, maintain and repair, and keep in good repair and operating condition, the Demised Premises, landscaping, the fixtures
and appurtenances therein and any Tenant’s Property (except to the extent the need for same results from the gross negligence
or willful misconduct of Landlord, its agents, contractors, servants, invitees or employees). Tenant shall be responsible for and
shall promptly make all interior and exterior repairs in and to the Demised Premises the need for which arises out of (a) Alterations
or other work by Tenant (except to the extent the need for same results from the gross negligence or willful misconduct of Landlord,
its agents, contractors, servants, invitees or employees), (b) the installation, use or operation of Tenant’s Property,
(c) the moving of Tenant’s Property in or out of the Demised Premises, (d) Tenant’s use of the Demised Premises
(other than those repairs which are the responsibility of Landlord pursuant to Section 13.2 hereunder) or (e) the act, omission,
misuse or neglect of or by Tenant or any subtenant or licensee, or their respective employees, agents, contractors or invitees.
All repairs made by Tenant under this Section 13.1 shall be diligently and continually performed to completion. If Tenant fails
to perform any repairs for which Tenant is responsible after expiration of the notice period and expiration of the cure period
provided for in Section 22.2(b) (or such shorter time as necessary in the case of an emergency), then Landlord may, at Landlord’s
option, perform such repair at Tenant’s expense. Tenant shall be responsible for the replacement /changing of light bulbs
in the Demised Premises and as it relates to the parking lot

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lighting structures, but Tenant shall have no obligation to
otherwise maintain the parking lot or parking lot lighting structures. Tenant represents that the parking lot was sealed and striped
on or about April of 2015. Tenant has no expectation the parking lot will need to be further sealed or striped during the Term.
Tenant shall have no further obligation to seal or stripe the parking lot at any time during the Term. For the avoidance of doubt,
Tenant shall have no obligation to make a repair under this Section 13.1 if the particular improvement to be repaired (which includes,
but is not limited to building systems such as mechanical, electrical, sanitary systems, plumbing, elevators, roof, HVAC, fire
and sprinkler systems) is beyond its actual useful life at the time of the need for repair. In the event of a dispute between the
parties as to the actual useful life of the particular improvement or system to be repaired, the parties will engage a mutually
agreeable expert to provide an opinion on whether the particular improvement or system has reached the end of its useful life and
must be replaced. The parties agree to a 50/50 split of the cost of the expert opinion.

 

13.2 Landlord shall, at its sole cost and
expense, make all necessary repairs and replacements to keep in good repair and serviceable condition the structural elements of
the roof, foundation and walls of the Demised Premises (except to the extent the need for same results from the gross negligence
or willful misconduct of Tenant, its agents, contractors, servants, invitees or employees). Landlord will also be responsible for
replacing, if necessary (not repairing, which is the Tenant’s responsibility), the landscaping. Landlord will also be responsible
for replacing the systems servicing the Demised Premises, including, without limitation, mechanical, electrical, sanitary systems,
all walkways, elevators, the parking lot (including sealing and striping) and related lighting structures, roof, HVAC, fire and
sprinkler systems. All repairs and replacements made by Landlord under this Section 13.2 shall be diligently and continually
performed to completion, and shall be undertaken in a manner reasonably intended to minimize interference with Tenant’s business
operations in the Demised Premises (provided Landlord shall not be required to perform repairs on an overtime or premium pay basis,
unless an emergency exists, in which case Landlord shall perform such repairs on an overtime or premium pay basis). If Landlord
fails to perform any repairs or replacements for which Landlord is responsible after expiration of the notice period and expiration
of the cure period provided for in Section 22.2(b) (or such shorter time as necessary in the case of an emergency), then
Tenant may, at Tenant’s option, perform such repair or replacement at Landlord’s expense. For the avoidance of doubt,
Landlord shall have no obligation to replace or maintain any backup generators.

 

13.3 If, for any reason other than a casualty,
condemnation or default by Tenant of its obligations to be observed or performed under this Lease, Landlord fails to furnish any
of the services, utilities, maintenance, repairs, replacements or access which Landlord is required to furnish pursuant to the
terms of this Lease, and as a result of such failure by Landlord, all or a material portion of the Demised Premises shall be rendered
untenantable or inaccessible and Tenant shall cease the conduct of Tenant’s business in all or a portion of the Demised Premises
as a result thereof (an “Untenantability Condition”), and such Untenantability Condition shall continue for
three (3) consecutive Business Days after notice from Tenant to Landlord (or, in the case of an Untenantability Condition caused
by Force Majeure Events, such Untenantability

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Condition shall continue for a period of twenty-one (21) consecutive
Business Days after notice from Tenant to Landlord), then Fixed Rent and Additional Charges shall abate solely with respect to
the portion or portions of the Demised Premises subject to such Untenantability Condition from the day after such three (3) consecutive
Business Days (or twenty-one (21) Business Days in case of Force Majeure Events) until such space is no longer subject to such
Untenantability Condition. In the event that an Untenantability Condition continues with respect to a material portion of the Demised
Premises for ninety (90) consecutive days, then Tenant shall have the right to terminate this Lease within ten (10) days following
such ninety (90) day period; provided, however, if Landlord has cured such Untenantability Condition prior to receipt
of notice from Tenant of its election to terminate this Lease as provided for in this paragraph, Tenant shall no longer have the
right to terminate this Lease as a result of such Untenantability Condition. The rights granted to Tenant under this Section
13.3 shall be Tenant’s exclusive remedy with respect to an Untenantability Condition.

 

13.4 Except as otherwise expressly provided
in this Lease, Landlord shall have no liability to Tenant, nor shall Tenant’s obligations under this Lease be reduced or
abated in any manner, by reason of any inconvenience, annoyance, interruption or injury to Tenant’s business arising from
Landlord’s making any repairs or changes which Landlord is required or permitted to make (provided the same are made in accordance
with the applicable provisions of this Lease, including, without limitation, the obligation to undertake repairs and replacements
in a manner reasonably intended to minimize interference with Tenant’s business operations in the Demised Premises (provided
Landlord shall not be required to perform repairs on an overtime or premium pay basis unless an emergency exists, in which case
Landlord shall perform such repairs on an overtime or premium pay basis)).

 

13.5 Tenant shall, within thirty (30) days
after the Commencement Date, contract for a heating, ventilation and air conditioning maintenance program which shall provide periodic
(but not more than one (1) time per year) inspection and maintenance of the equipment. Such inspection and maintenance shall include,
but not be limited to, filter changes, check and/or replacement electrical inspection, coil cleaning and drainage and testing of
limit controls.

 

ARTICLE 14

 

ELECTRIC ENERGY

 

14.1 Subject to the terms of the Lease,
Landlord shall furnish to the Demised Premises electricity for Tenant’s reasonable use and such lighting, electrical appliances,
general office computers, fax machines, photocopiers and other machines and equipment as are reasonably incidental thereto, or
as Landlord shall otherwise permit to be installed in the Demised Premises, through the feeders, wiring installations and facilities
heretofore installed in the Demised Premises. Landlord agrees that it will not discontinue the furnishing of electric current to
the Demised Premises in the manner

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provided herein unless required to do so by a Legal Requirement
or as allowed under Section 16.4.

 

ARTICLE 15

 

HEAT, VENTILATION AND AIR CONDITIONING

 

15.1 Landlord shall, subject to energy
conservation requirements of governmental authorities, supply heat, air conditioning and ventilation to all portions of the Demised
Premises which are served by the air conditioning and ventilation systems.

 

ARTICLE 16

 

OTHER SERVICES, SERVICE INTERRUPTION

 

16.1 Tenant shall contract for the supplying
of and shall pay directly to all utility services for all services and charges for gas, electricity, light, heat, air conditioning,
power and telephone or other communication services used, rendered or supplied upon or in connection with its use of the Demised
Premises (collectively referred to as “Utility Expenses”). In the event that Landlord is required to pay for any Utility
Expenses, which is the responsibility of Tenant under this Lease, Landlord may bill tenant for the Utility Expenses as Additional
Charges.

 

16.2 Landlord shall furnish adequate hot
and cold water to the Demised Premises for drinking, lavatory, customary pantry, and normal cleaning purposes.

 

16.3 Tenant shall, at its sole cost and
expense, cause the Demised Premises, including the windows to be cleaned. Landlord shall not be required to clean any portions
of the Demised Premises. Tenant shall contract for the supplying of and shall pay directly all services relating to garbage and
snow removal from the Demised Premises.

 

16.4 Subject to Section 13.3, Landlord
shall have the right, without affecting Tenant’s obligations under this Lease except to the extent set forth in Section
13.3, to temporarily stop or interrupt or reduce service of any of the heating, ventilating, air conditioning, electric, sanitary,
elevator, sprinkler, water or other building systems, or to temporarily stop or interrupt or reduce any other services required
of Landlord under this Lease, whenever and for so long as may be necessary, by reason of (a) Force Majeure Events or (b) the
making of repairs, additions, changes or replacements which Landlord is required or permitted to make or in good faith deems necessary;
except in the event of emergency, Landlord agrees to exercise its rights under this Section 16.4 only after reasonable advance
notice to Tenant. In any event, Landlord shall use commercially reasonable efforts to exercise such rights at times and in a manner
so as to minimize interference with Tenant’s business operations in the Demised Premises, and shall use commercially reasonable
efforts to restore such services as soon as possible.

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16.5 Tenant, at its sole expense, shall
provide security services for the Demised Premises that are consistent with past practices.

 

ARTICLE 17

 

ACCESS, NOTICE OF OCCURRENCES, WINDOWS,

NAME OF BUILDING AND NO DEDICATION

 

17.1 Landlord and its agents shall have
the right to enter and/or pass through and/or be on the Demised Premises at any reasonable time or times during business hours,
upon reasonable prior notice to Tenant, to examine the Demised Premises and to show it to actual or prospective Superior Mortgagees
or prospective purchasers of the Property, or prospective tenants during the last six (6) months of the term hereof. Subject to
Section 13.3, Landlord, its agents and contractors, and their respective employees (a) shall have the right to enter
and/or pass through and/or be on the Demised Premises and, upon notice to Tenant (except in the case of an emergency) and subject
to Tenant’s right to request a reasonable delay before Landlord’s entry in order to take such measures as may be reasonably
necessary to protect any confidential materials located in the Demised Premises, to make such repairs, alterations and improvements
in or to the Demised Premises as Landlord is required or desires to make, and except that any of the foregoing shall not diminish
the useable square footage of the Demised Premises or with respect to access thereto) and (b) shall have the right to use,
without charge therefor, reasonable amounts of light, power and water in the Demised Premises while making repairs or alterations
to the Demised Premises. Landlord shall have the right, in a manner so as not to interfere with Tenant’s operations in the
Demised Premises, to take all materials into and on the Demised Premises that may be reasonably required in connection therewith
and such acts shall not be deemed an actual or constructive eviction and shall have no effect upon Tenant’s obligations under
this Lease.

 

17.2 If at any time any windows of the
Demised Premises are temporarily darkened or obstructed by reason of any repairs, improvements, and/or maintenance in or about
the Demised Premises, or are permanently darkened or obstructed due to Legal Requirements, or customary access to the Demised Premises
is temporarily or permanently closed or inoperable, any such occurrence shall not be deemed an actual or constructive eviction
and shall have no effect upon Tenant’s obligations under this Lease. Notwithstanding the foregoing, (a) Landlord shall not
temporarily darken or obstruct any windows of the Demised Premises unless and only for so long as is reasonably necessary for such
repairs, improvements, and/or maintenance and (b) Landlord shall not permanently darken or obstruct any windows of the Demised
Premises unless required by Legal Requirements.

 

17.3 Tenant shall give prompt notice to
Landlord of any of the following of which Tenant obtains actual knowledge: (a) any occurrence in or about the Demised Premises
for which Landlord is reasonably likely to be liable, (b) any fire or other casualty in the Demised Premises, (c) any
damage to or defect in the Demised Premises, including the fixtures, equipment and appurtenances thereof, for the repair of which
Landlord is reasonably likely to be responsible, and (d) any damage to or defect in

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any part of the Property’s sanitary, electrical, sprinkler,
heating, ventilating, air conditioning, plumbing, elevator or other systems in or passing through the Demised Premises.

 

17.4 Prior to any entry by Landlord or
anyone claiming by or through Landlord into the Demised Premises, (except for emergency situations), Landlord shall give reasonable
advance notice thereof to Tenant (which may be by email or fax), and Tenant shall have the right to have a representative accompany
Landlord’s personnel during the course of any such entry to the extent such a representative is reasonably available. Only
in case of emergency, if Tenant is not present when for any reason entry into the Demised Premises by Landlord or Landlord’s
agents is necessary or permissible under this Lease, Landlord or Landlord’s agents may enter same by a master key, or (in
case of emergency only) may forcibly enter same, without rendering Landlord or such agents liable therefor (provided that during
such entry Landlord or such agents accord reasonable security and care to the Demised Premises and to Tenant’s Property and
promptly repair any damage to the Demised Premises or to Tenant’s Property caused thereby), and such entry shall not be deemed
an actual or constructive eviction and shall have no effect upon Tenant’s obligations under this Lease.

 

17.5 In exercising its rights under this
Article 17, Landlord shall use reasonable efforts under the circumstances to avoid undue disruption of Tenant’s
business. However, Landlord shall not be required to do work in and about Demised Premises during non-business hours except for
work of a type which is customarily done during non-business hours in buildings in Albany, New York. Except as set forth in the
previous sentence, Landlord shall not be required to perform repairs on an overtime or premium pay basis, unless an emergency exists,
in which case Landlord shall perform such repairs on an overtime or premium pay basis.

 

17.6 Tenant shall have access to the
Demised Premises 24 hours a day 7 days a week.

 

ARTICLE 18

 

NON-LIABILITY AND INDEMNIFICATION

 

18.1 Landlord shall not be liable to Tenant
for any loss, injury or damage to Tenant or to any other person, or to its or their property, irrespective of the cause of such
injury, damage or loss, unless caused by or resulting from the negligence, willful misconduct or breach of this Lease by Landlord
its respective agents, contractors, invitees or employees.

 

18.2 Tenant shall indemnify Landlord against
liability in connection with (a) the conduct or management of the Demised Premises or of any business therein, or any work
or thing done or any condition created by or on behalf of Tenant (other than by Landlord, Superior Mortgagee or their respective
agents, contractors, invitees or employees) in or about the Demised Premises during the Term, including, without limitation, the
performance of any Alterations by or on behalf of Tenant, (b) any act,

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omission, negligence or willful misconduct of Tenant or any
subtenant or licensee or their respective employees, agents, contractors or invitees, (c) any accident, injury or damage (except
to the extent caused by the negligence or willful misconduct of Landlord, Superior Mortgagee or their respective agents, contractors,
invitees or employees) occurring in, at or upon the Demised Premises, (d) the failure of Tenant or any subtenant or licensee
or their respective employees, agents, contractors or invitees to comply with those Legal Requirements which are to be complied
with by Tenant pursuant to the terms of this Lease, or (e) any other breach or default by Tenant under this Lease. Such indemnity
shall not include an indemnity against consequential or special damages. The provisions of this Section 18.2 shall survive
the expiration or earlier termination of this Lease.

 

18.3 Landlord shall indemnify Tenant against
liability in connection with (a) any work or thing done, or any condition created, by Landlord or its agents, contractors,
invitees or employees in or about the Property during the Term (except to the extent caused by the negligence or willful misconduct
of Tenant or Tenant’s agents, contractors or employees), (b) any negligence or willful misconduct of Landlord or its
employees, agents, contractors or invitees, (c) the failure of Landlord or its employees, agents, contractors or invitees
to comply with those Legal Requirements which are to be complied with by Landlord pursuant to the terms of this Lease, or (d) any
other breach or default by Landlord under this Lease. Such indemnity shall not include an indemnity against consequential or special
damages. The provisions of this Section 18.3 shall survive the expiration or earlier termination of this Lease.

 

18.4 If any claim, action or proceeding
is made or brought against a party indemnified under Sections 18.2 or 18.3 hereof (“Indemnitee”),
then upon demand by Indemnitee, the indemnifying party (“Indemnitor”), at Indemnitor’s sole cost and expense,
shall resist or defend such claim, action or proceeding in Indemnitee’s name, if necessary, by the attorneys for Indemnitor’s
insurance carrier (if such claim, action or proceeding is covered by insurance), or otherwise by such attorneys as Indemnitee shall
approve, which approval shall not be unreasonably withheld, conditioned or delayed, and Indemnitee shall cooperate, at no cost
to itself unless reimbursed by Indemnitor, with Indemnitor’s counsel or such insurance carrier, in the defense of such claim.
Indemnitee shall not enter into any settlement of any such claim without the prior written consent of Indemnitor (not to be unreasonably
withheld, conditioned or delayed), and Indemnitor shall not do so except on prior notice to Indemnitee. Indemnitee shall notify
Indemnitor promptly of any claim, action or proceeding made or brought against Indemnitee as to which indemnification may be sought
hereunder. If Indemnitee shall fail to timely notify Indemnitor of a claim and, as a result of such failure, Indemnitor’s
insurance coverage is prejudiced, or Indemnitor is otherwise materially prejudiced in the defense of such claim, Indemnitor shall
be released from its obligation to indemnify Indemnitee, but only to the extent of such prejudice.

 

18.5 The words “Tenant indemnifies
Landlord against liability,” “Tenant shall indemnify Landlord against liability,” “Landlord indemnifies
Tenant against liability” or “Landlord shall indemnify Tenant against liability” and words of similar import
shall mean that the indemnifying party agrees to indemnify, hold and save

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harmless the indemnified party and their respective partners,
directors, officers, agents and employees from and against all loss, cost, liability, claim, damage, fine, penalty and expense,
including reasonable attorneys’ fees and disbursements (whether incurred in resisting and defending any action or proceeding
or incurred in enforcing the indemnification rights of the indemnified party against the indemnifying party). The indemnifying
party shall pay to the indemnified party upon rendition of bills or statements therefor, an amount equal to all losses, costs,
liabilities, claims, damages, fines, penalties and expenses (i) incurred by the indemnified party or any other indemnified
person and (ii) for which the indemnifying party has indemnified the indemnified party or any other indemnified person. Nothing
herein contained shall be deemed to require any party to indemnify any other party against its own negligence or willful misconduct,
or against any consequential or special damages.

 

ARTICLE 19

 

DAMAGE OR DESTRUCTION

 

19.1 If the Property or the Demised Premises
is partially or totally damaged or destroyed by fire or other casualty (and this Lease is not terminated as provided in this Article),
Landlord shall (at no cost to Tenant) repair the damage and restore and rebuild the Property or the Demised Premises, as the case
may be, in a good and workmanlike manner using materials generally of a quality at least equal to those that existed previously,
promptly and with reasonable diligence after notice to it of the damage or destruction.

 

19.2 If all or part of the Demised Premises
is damaged or destroyed or rendered completely or partially untenantable or not reasonably accessible by fire or other casualty,
Fixed Rent and any Additional Charges payable under this Lease shall be reduced in the proportion that the untenantable area of
the Demised Premises bears to the total rentable square feet of the Demised Premises for the period from the date of the damage
or destruction to (a) thirty (30) days after the date on which Landlord gives Tenant notice that the damage is substantially
repaired and tenantable possession of and reasonable access to the Demised Premises is tendered to Tenant; provided, however,
should Tenant reoccupy a portion of the Demised Premises during the period in which repair work is taking place and prior to the
date the Demised Premises is substantially repaired or made tenantable, Fixed Rent and any Additional Charges payable under this
Lease allocable to such reoccupied portion, based upon the proportion which area of the reoccupied portion of the Demised Premises
bears to the total rentable square feet of the Premises, shall be payable by Tenant from the date of such occupancy.

 

19.3 If the Demised Premises is materially
damaged or destroyed by fire or other casualty, or if the Demised Premises is so damaged or destroyed by fire or other casualty
that its repair or restoration requires the expenditure (as estimated by a licensed, reputable independent third-party contractor
or architect designated by Landlord) of more than 90% of the full insurable value of the Demised Premises immediately prior to
the fire or other casualty or if commercially reasonable access to the Demised Premises is not possible (each a “Substantial
Casualty”), then in either such case either Landlord or

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Tenant may terminate this Lease by giving
the other party notice to such effect within sixty (60) days after the date of the fire or other casualty and Fixed Rent and any
Additional Charges payable under this Lease shall be abated as of the date of such damage or destruction.

 

19.4 If a Substantial Casualty shall occur
and neither Landlord nor Tenant elect to terminate this Lease under Section 19.3 hereof, Landlord shall restore the Demised
Premises (or portion thereof) as set forth in Section 19.1 within one-hundred eighty (180) days from the commencement of
substantial repairs or reconstruction of the Demised Premises, but not longer than two hundred twenty-five (225) days from the
date of the Substantial Casualty to rebuild the Demised Premises to approximately the same condition as they were in at the Commencement
Date. Such restoration under this Section 19.4 shall be diligently and continually performed to completion by Landlord. If the
Demised Premises (or portion thereof) is not substantially completed within the time period set forth in the preceding sentence,
then Tenant shall have the right to terminate this Lease upon notice to Landlord effective as of the tenth (10th) Business Day
following Tenant’s termination notice, provided the restoration has not been substantially completed by such tenth (10th)
Business Day.

 

19.5 Landlord shall use reasonable efforts
to make such repair or restoration in such manner as not to unreasonably interfere with Tenant’s use and occupancy of the
Demised Premises, but Landlord shall not be required to do such repair or restoration work at times other than during business
hours.

 

19.6 Landlord will not carry insurance
of any kind on Tenant’s Property and shall not be obligated to repair any damage to or replace Tenant’s Property unless
such damage was caused by the gross negligence or willful misconduct of Landlord or its agents, contractors, invitees or employees.

 

19.7 The provisions of this Article shall
be deemed an express agreement governing any case of damage or destruction of the Demised Premises by fire or other casualty, and
Section 227 of the Real Property Law of the State of New York, providing for such a contingency in the absence of an express agreement,
and any successor or other law of like import, now or hereafter in force, shall have no application in such case and are hereby
waived by the parties hereto.

 

19.8 Landlord is not required to restore
the Demised Premises in the following circumstances: (i) the Superior Mortgagee has elected not to permit the insurance proceeds
to be used for repair; (ii) the damage occurred in the last one hundred eighty (180) days of the Term; (iii) an Event of Default
has occurred and is continuing; (iv) Tenant has vacated or abandoned the Demised Premises prior to the date of the Substantial
Casualty; or (v) an insurance payout pursuant to the coverage required by the Lease is not sufficient to cover the cost to restore
the Demised Premises.

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ARTICLE 20

 

EMINENT DOMAIN

 

20.1 Except as otherwise provided in Section
20.5, if all or substantially all of the Demised Premises is taken by condemnation or in any other manner for any public or
quasi-public use or purpose, this Lease shall terminate as of the date of vesting of title on such taking (“Date of Taking”),
and Fixed Rent and any Additional charges payable under this Lease shall be abated as of such date.

 

20.2 Except as otherwise provided in Section
20.5, if 25% or more of the Demised Premises is so taken and the remaining area of the Demised Premises is not reasonably sufficient
for Tenant to continue feasible operation of its business, Tenant may terminate this Lease by giving Landlord notice to that effect
within sixty (60) days after the Date of Taking. This Lease shall terminate on the date that such notice from Tenant to Landlord
shall be given, and Fixed Rent and Additional Charges shall be abated as of such termination. Upon such partial taking and this
Lease continuing in force as to any part of the Demised Premises, each of Fixed Rent shall be equitably adjusted according to the
rentable area remaining.

 

20.3 Except as otherwise provided in Section
20.5, Landlord shall be entitled to make the application and receive the award or payment in connection with any taking. However,
Landlord agrees to include in the award application those items requested from Tenant including but not limited to Tenant’s
moving expenses, Tenant’s Property, unamortized leasehold and capital improvements paid for by Tenant and the value of Tenant’s
leasehold estate. A portion of the award shall be allocated to Tenant’s requested items and will be paid by Landlord to Tenant
promptly following receipt of the award.

 

20.4 Except as otherwise provided in Section
20.5, in the event of any taking of less than the whole of the Property which does not result in termination of this Lease,
Landlord, whether or not any award or awards shall be sufficient for the purpose, shall proceed with reasonable diligence to repair
the remaining parts of the Property in a good and workerlike manner to substantially their former condition to the extent that
same is feasible (subject to reasonable changes which Landlord deems desirable, provided that materials generally are of a quality
at least generally equal to that which existed previously) and so as to constitute the Property complete and tenantable.

 

20.5 If the temporary use or occupancy
of all or any part of the Demised Premises is taken by condemnation or in any other manner for any public or quasi-public use or
purpose, this Lease and the Term shall remain unaffected by such taking and Tenant shall continue to be responsible for all of
its obligations under this Lease (except to the extent prevented from so doing by reason of such taking). In such event Tenant
shall be entitled to claim, prove and receive the entire award for such taking unless the period of temporary use or occupancy
extends beyond the Expiration Date, in which event Landlord shall be entitled to claim, prove and receive that portion of the award
attributable to the restoration of the Demised Premises and the balance of such award

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shall be apportioned between Landlord and
Tenant as of the Expiration Date. Notwithstanding any provision of this Article 20 to the contrary, a temporary taking of
more than one hundred eighty (180) days shall be deemed a permanent taking for the purposes hereof.

 

ARTICLE 21

 

SURRENDER AND HOLDING OVER

 

21.1 On the Expiration Date or on any
earlier termination of this Lease or on any lawful reentry by Landlord on the Demised Premises, Tenant shall quit and surrender
the Demised Premises to Landlord in good order, condition and repair, except for ordinary wear and tear, damage or destruction
by fire and other casualty and such other damage as Landlord is required to repair, maintain or restore under Section 13.2 or under
any other provision under this Lease, and Tenant shall remove all Tenant’s Property therefrom except as otherwise expressly
provided in this Lease and Tenant shall comply in all respects with Section 12.3 of this Lease. No act or thing done by
Landlord or its agents or employees shall be deemed an acceptance of a surrender of this Lease or the Demised Premises, and no
agreement to accept such surrender shall be valid unless in writing and signed by Landlord.

 

21.2 If Tenant remains in possession of
the Demised Premises after the termination of this Lease without the execution of a new lease, Tenant, at the option of Landlord,
shall be deemed to be occupying the Demised Premises as a Tenant from month to month, subject to all of the other terms and conditions
of this Lease insofar as the same are applicable to a month-to-month tenancy, but at a monthly rental equal to the monthly Fixed
Rent last payable by Tenant hereunder for four (4) months following expiration of this Lease, and then at a monthly rental equal
to 140% of the monthly Fixed Rent last payable by Tenant hereunder. In addition, Tenant will indemnify, and hold Landlord harmless
from all loss, damage or expense that Landlord may suffer or incur, including, without limitation, as a result of claims by third
parties resulting from Landlord’s inability to give possession of the Demised Premises to another tenant or to any owner
in fee of the Property resulting from such holding over by Tenant. Nothing contained in this Section shall (i) imply any right
of Tenant to remain in the Demised Premises after the termination of this Lease without the execution of a new lease, (ii) imply
any obligation of Landlord to grant a new lease or (iii) be construed to limit any right or remedy that Landlord has against Tenant
as a holdover tenant or trespasser.

 

ARTICLE 22

 

DEFAULT

 

22.1 The following are events of default
(“Events of Default”) under this Lease:

 

(a) Tenant makes an assignment for the
benefit of creditors;

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(b) Tenant files a voluntary petition
under the bankruptcy laws, or an involuntary petition alleging an act of bankruptcy or insolvency is filed against Tenant under
any bankruptcy laws if such event occurs without the acquiescence of Tenant and is not dismissed within sixty (60) days of filing;

 

(c) A receiver of Tenant or of or for
the property of Tenant is appointed;

 

(d) Tenant defaults in the payment of
any Fixed Rent or any Additional Charges for thirty (30) days after notice from Landlord of such nonpayment; or

 

(e) Tenant, whether by action or inaction,
is in default of any of its obligations under this Lease (other than a default in the payment of Fixed Rent or Additional Charges)
and such default continues and is not remedied within thirty (30) days after Landlord gives to Tenant a notice specifying the same,
or, in the case of a default which with due diligence cannot reasonably be cured within a period of thirty (30) days and the continuance
of which for the period required for cure will not (i) subject Landlord or any Superior Mortgagee to prosecution for a crime or
(ii) result in a default under any Superior Mortgage, if Tenant does not, (x) within said 30-day period advise Landlord of Tenant’s
intention to take all steps necessary to remedy such default, (y) duly commence within said 30-day period and thereafter diligently
prosecute to completion all steps necessary to remedy the default, and (z) complete such remedy within a reasonable time after
the date of said notice from Landlord, but in no event later than one hundred and eighty (180) days following the date of said
notice, or

 

(f) if any event occurs or any contingency
arises whereby this Lease, by operation of law or otherwise, devolves upon or passes to any person other than Tenant, except as
expressly permitted by Article 8.

 

Upon the occurrence of an Event of Default,
Landlord may give to Tenant a notice of intention to terminate this Lease at the expiration of thirty (30) days from the date of
the service of such notice of intention, and upon the expiration of said thirty (30) day period this Lease shall terminate with
the same effect as if that day were the Expiration Date, but Tenant shall remain liable for damages as provided in Article 24.

 

22.2 Notwithstanding anything to the contrary
in this Lease, no notice of default given by Landlord to Tenant hereunder shall be effective unless the notice contains the words
“DEFAULT NOTICE” in capitalized, bolded letters on the first page of such notice; provided, however, Landlord’s
failure to comply with this Section 22.2 shall in no way be or be deemed to be a waiver of such default or of any of Landlord’s
rights and remedies hereunder.

 

22.3 In the event that Tenant exercises
any provision in this Lease that grants Tenant the right to terminate this Lease with respect to a portion of the Demised Premises,
or Tenant assigns this Lease with respect to a portion of the Demised Premises in accordance with the terms of this Lease, then
this Lease shall be deemed to be in full

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force and effect with respect to the remaining
portions of the Demised Premises, provided (a) that Tenant is otherwise in compliance with the terms of this Lease and (b) that
Fixed Rent and Additional Charges shall be appropriately pro rated to reflect the change in the size of the Demised Premises.

 

ARTICLE 23

RE-ENTRY BY LANDLORD

 

23.1 If this Lease terminates as provided
in Article 22, Landlord or Landlord’s agents may immediately or at any time thereafter re-enter the Demised Premises,
or any part thereof, either by summary dispossess proceedings or by any suitable action or proceeding at law, and may repossess
same, and may remove any person therefrom, to the end that Landlord may have, hold and enjoy the Demised Premises. The word “re-enter”
as used herein, is not restricted to its technical legal meaning. If this Lease is terminated under the provisions of Article
22, or if Landlord re-enters the Demised Premises under the provisions of this Article, or in the event of the termination
of this Lease, or of re-entry, by or under any summary dispossess or other proceeding or action or any provision of law by reason
of default hereunder on the part of Tenant, Tenant shall thereupon pay to Landlord Fixed Rent and Additional Charges payable to
the time of such termination of this Lease, or of such recovery of possession of the Demised Premises by Landlord, as the case
may be, and shall also pay to Landlord damages as provided in Article 24.

 

23.2 In the event of a breach by Tenant
of any of its obligations under this Lease, Landlord shall have the right to seek an injunction to enjoin such breach. The special
remedies to which Landlord may resort hereunder are cumulative and are not intended to be exclusive of any other remedies to which
Landlord may lawfully be entitled at any time and such party may invoke any remedy allowed at law or in equity as if specific remedies
were not provided for herein.

 

23.3 If this Lease is terminated under
the provisions of Article 22, or if Landlord re-enters the Demised Premises under the provisions of this Article, or in
the event of the termination of this Lease, or of re-entry, by or under any summary dispossess or other proceeding or action or
any provision of law by reason of default hereunder on the part of Tenant, Landlord shall be entitled to retain all monies, if
any, paid by Tenant to Landlord, whether as advance rent, security or otherwise, but such monies shall be credited by Landlord
against any Fixed Rent or Additional Charges due from Tenant at the time of such termination or re-entry or, at Landlord’s
option, against any damages payable by Tenant under Article 24 or pursuant to law.

 

ARTICLE 24

DAMAGES

 

24.1 If this Lease is terminated under
the provisions of Article 22, or if Landlord re-enters the Premises under the provisions of Article 23, or in the
event of the

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termination of this Lease, or of re-entry,
by or under any summary dispossess or other proceeding or action or any provision of law by reason of default hereunder on the
part of Tenant, Tenant shall continue to pay to Landlord monthly as damages sums equal to the Fixed Rent which would have been
payable by Tenant had this Lease not so terminated, or had Landlord not so re-entered the Demised Premises, payable upon the due
dates therefor (as provided in this Lease) following such termination or such re-entry until the date that would have been the
Expiration Date if this Lease had not so terminated or if Landlord had not so re-entered the Premises; provided,
however, if Landlord shall relet all or any portion of the Demised Premises during said period to an unaffiliated third party or
shall occupy all or any portion of the Demised Premises itself, Landlord shall credit Tenant with the net rents received by Landlord
from such reletting (or the current rental rate of the Demised Premises actually occupied if occupied by Landlord), such
net rents to be determined by first deducting from the gross rents as and when received by Landlord from such reletting the reasonable
and customary expenses paid by Landlord in terminating this Lease or in re-entering the Demised Premises and in securing possession
thereof, as well as the reasonable and customary expenses of reletting paid by Landlord, including altering and preparing the Demised
Premises for new tenants, brokers’ commissions, reasonable attorneys’ fees and disbursements, and all other such expenses,
it being understood that any such reletting may be for a period shorter or longer than what would have been the unexpired portion
of the Term if this Lease had not so terminated or if Landlord had not so re-entered the Demised Premises, but in no event shall
Tenant be entitled to receive any excess of such net rents over the sums payable by Tenant to Landlord hereunder, nor shall Tenant
be entitled in any suit for the collection of damages pursuant to this subdivision to a credit in respect of any net rents from
a reletting, except to the extent that such net rents are actually received by Landlord. If the Demised Premises or any part thereof
is relet in combination with other space, then proper apportionment on a per square foot basis shall be made of the rent received
from such reletting and of the expenses of reletting, consistent with the foregoing.

 

24.2 Suit or suits for the recovery of
such damages, or any installments thereof, may be brought by Landlord from time to time at its election, and nothing contained
herein shall be deemed to require Landlord to postpone suit until the date when the Term would have expired if this Lease had not
so terminated or had Landlord not so re-entered the Demised Premises. Nothing herein contained shall be construed to limit or preclude
recovery by Landlord against Tenant of any sums or damages to which, in addition to the damages particularly provided above, Landlord
may lawfully be entitled by reason of any default of Tenant hereunder. Nothing herein contained shall be construed to limit or
prejudice the right of Landlord to prove for and obtain as damages by reason of the termination of this Lease or re-entry on the
Demised Premises for the default of Tenant under this Lease an amount equal to the maximum allowed by any statute or rule of law
in effect at the time when, and governing the proceedings in which, such damages are to be proved whether or not such amount is
greater than, equal to, or less than any of the sums referred to in Section 24.1. Notwithstanding anything to the contrary
in this Lease, in no event shall either party be entitled to consequential or special damages as a result of any breach or default
hereunder.

    	31

    	

    

24.3 In addition, if this Lease is terminated
under the provisions of Article 22, or if Landlord re-enters the Demised Premises under the provisions of Article 23,
Tenant agrees that:

 

(a) the Demised Premises then shall be
in the same condition as that in which Tenant has agreed to surrender the same to Landlord on the Expiration Date, and

 

(b) Tenant shall have performed prior
to any such termination or re-entry any obligation of Tenant contained in this Lease for the making of any Alteration or for restoring
or rebuilding the Demised Premises or any part thereof, and

 

ARTICLE 25

WAIVERS

 

25.1 Tenant, on behalf of itself and any
and all persons claiming through or under Tenant, does hereby waive and surrender all right and privilege which it, they or any
of them might have under or by reason of any present or future law, to redeem the Demised Premises or to have a continuance of
this Lease after being dispossessed or ejected therefrom by process of law or under the terms of this Lease or after the termination
of this Lease.

 

25.2 If Tenant is in arrears in payment
of Fixed Rent or Additional Charges, Tenant waives its right, if any, to designate the items to which any payments made by Tenant
are to be credited, and Landlord may apply any payments made by Tenant to such items which are then due and outstanding under this
Lease as Landlord sees fit, irrespective of any designation or request by Tenant as to the items to which any such payments shall
be credited.

 

25.3 To the maximum extent permitted by
law, Landlord and Tenant hereby waive trial by jury in any action, proceeding or counterclaim brought by either against the other
on any matter arising out of or in any way connected with this Lease, the relationship of Landlord and Tenant under this Lease,
Tenant’s use or occupancy of the Premises, including any claim of injury or damage, and any emergency and other statutory
remedy in respect thereof.

 

25.4 The failure of either party to insist
in any one or more instances upon the strict performance of any one or more of the obligations contained in this Lease, or to exercise
any election herein contained, shall not be construed as a waiver or relinquishment for the future of the performance of such one
or more obligations contained in this Lease or of the right to exercise such election, but same shall continue and remain in full
force and effect in respect of any subsequent breach, act or omission. The receipt by Landlord of Fixed Rent or Additional Charges
with knowledge of breach by Tenant of any obligation contained in this Lease shall not be deemed a waiver of such breach.

    	32

    	

    

ARTICLE 26

CURING TENANT’S DEFAULTS AND COSTS OF ENFORCEMENT

 

26.1 If Tenant defaults in the performance
of any of Tenant’s obligations under this Lease and such default is not cured after notice and the expiration of the cure
period provided in Article 22, Landlord, without thereby waiving such default, may (but shall not be obligated to) perform
same for the account and at the reasonable expense of Tenant, without notice in case of emergency. Bills for any expenses incurred
by Landlord in connection with any such performance by it for the account of Tenant, and bills for all reasonable costs, expenses
and disbursements of every kind and nature, including reasonable attorneys’ fees and disbursements, involved in collecting
or endeavoring to enforce any rights against Tenant, under or in connection with this Lease or pursuant to law, including any such
cost, expense and disbursement involved in instituting and prosecuting summary proceedings or in recovering possession of the Demised
Premises after default by Tenant or upon the Expiration Date or sooner termination of this Lease, may be sent by Landlord to Tenant
monthly and such amounts shall be due and payable in accordance with the terms of such bills.

 

ARTICLE 27

BROKER

 

27.1 Each of Tenant and Landlord represents
and warrants to the other that no broker procured this Lease, and that it had no conversations or negotiations with any broker
concerning the leasing of the Demised Premises. Each of Tenant and Landlord shall indemnify the other against liability in connection
with a breach of its representation and warranty in this Article 27 and in connection with any claim for a brokerage commission
arising out of any conversations or negotiations had by it with any broker.

 

ARTICLE 28

NOTICES

 

28.1 Any notice, consent, approval or
other communication required or permitted to be given by either party to the other or to any Superior Mortgagee (collectively,
“Notices” and individually, “Notice”) must be in writing and, except as otherwise provided
in the succeeding Sections, shall be deemed to have been properly given only if sent by (i) nationally-recognized receipted overnight
courier service or (ii) registered or certified mail, return receipt requested, posted in a United States post office station or
letter box in the continental United States, in either case, if addressed to Landlord as the receiving party, at its address set
forth at the head of this Lease, with a copy to the Independent Family Office Box 3977, Albany, NY 12203, or if addressed to Tenant
as the receiving party, at the Demised Premises (Attention: Chief Financial Officer), with a copy to the Demised Premises (Attention:
Legal Department), and if addressed to any Superior Mortgagee to it at the last address of which Landlord or Tenant

    	33

    	

    

(whichever may be giving the Notice) was notified.
Either party may, at any time, or from time to time, notify the other in writing of a substitute address for that above set forth,
and thereafter notices shall be directed to such substitute address.

 

A Notice shall be deemed to have been given
on (x) the next Business Day after the date deposited with the overnight courier service or (y) the third Business Day after the
day mailed by registered or certified mail. Either party may, by notice as aforesaid, designate a different address for Notices
intended for it. At any time that Tenant consists of more than one person, a Notice to Tenant shall be effective if given to any
one of said persons.

 

ARTICLE 29

ESTOPPEL CERTIFICATES, FINANCIAL STATEMENTS,

AND MEMORANDUM OF LEASE

 

29.1 Each party shall, at any time and
from time to time, as requested by the other party, execute and deliver to the other party within ten (10) Business Days after
receipt of such request a statement (a) certifying that this Lease is unmodified and in full force and effect (or if modified,
that same is in full force and effect as modified and stating the modifications), (b) certifying the dates to which Fixed Rent
and Additional Charges have been paid, (c) stating whether or not, to the knowledge of the signing party, the other party is in
default in performance of any of its material obligations under this Lease, and, if so, specifying each such default of which the
signing party has knowledge, and (d) stating whether or not, to the knowledge of the signing party, any condition or event exists
which with the giving of notice or passage of time, or both, would constitute such a default, and, if so, specifying each such
condition or event. Any statement delivered pursuant to this Section shall be deemed a representation and warranty that may be
relied upon by the party requesting the statement and by others with whom such party may be dealing, regardless of independent
investigation. Tenant shall not be obligated to deliver to Landlord any non-public information. Landlord agrees to keep all non-public
information regarding the financial condition of Tenant confidential and to require that any prospective Superior Mortgagee agree
to keep non-public information confidential.

 

29.2 Tenant shall not record this Lease
nor any short form or memorandum of lease, nor any amendment or modification of this Lease.

 

ARTICLE 30

FORCE MAJEURE

 

30.1 Except as may be otherwise provided
for by the express terms contained elsewhere in this Lease, this Lease and the obligations of Tenant to pay Fixed Rent and Additional
Charges hereunder and to perform all of the other covenants and agreements hereunder on the part of Tenant to be performed shall
not be affected, impaired or excused because Landlord is unable to fulfill, or is delayed in fulfilling, any

    	34

    	

    

of its obligations under this Lease or because
Landlord is unable to make, or is delayed in making, any repairs, additions, alterations, improvements or decorations or is unable
to supply or is delayed in supplying any equipment or fixtures, if Landlord is prevented or delayed from so doing by reason of
any of the following (“Force Majeure Events”): fire or other casualty; acts of God; war; riot or other civil
disturbance; uninsured accident; industry-wide strike or other labor trouble; governmental preemption of priorities or other controls
in connection with a national or other public emergency; City-wide failure in the supply of fuel, gas, steam, water, electricity,
supplies or labor (not due to inadequacy or failure of payment); or any other event or cause whatsoever beyond Landlord’s
reasonable control. Upon cessation of any Force Majeure Event, Landlord shall promptly and diligently resume efforts to fulfill
Landlord’s obligations. Fixed Rent and/or Additional Charges may be abated by Tenant if it cannot use the Demised Premises
as provided in this Lease, but only in accordance with the abatement rights under Section 13.3, Article 19 and Article 20 of the
Lease.

 

30.2 If, by reason of any Force Majeure
Event, Tenant is unable to fulfill any of Tenant’s obligations under this Lease (with the exception of any obligations on
Tenant’s part to pay any sum of money due Landlord, including, without limitation, the payment of Fixed Rent or Additional
Charges, which monetary obligations shall remain unaffected by the provisions of this Section 30.2), Tenant shall not be
required to fulfill such non-monetary obligations during the period that Tenant is so prevented or delayed from so doing by reason
of such Force Majeure Event. Upon cessation of any Force Majeure Event, Tenant shall promptly and diligently resume efforts to
fulfill Tenant’s obligations.

 

ARTICLE 31

CONSENTS

 

31.1 If a party to this Lease requests
the other party’s consent and the other party fails or refuses to give such, a party shall not be entitled to any damages
for any withholding by the other party of its consent provided that the other party has complied with the provisions of Section
31.2. A party’s sole remedy for the other party’s refusal to give the requested consent shall be an action for
specific performance or injunction. Should a party successfully obtain any such specific performance or injunctive relief, the
other party shall promptly reimburse the aggrieved party for all reasonable attorney’s fees and disbursements incurred by
the party in connection therewith (in the case of Tenant, which reimbursement Tenant may elect to recover by credit against Fixed
Rent next accruing under this Lease until fully reimbursed).

 

31.2 Whenever
either party’s reasonable consent, reasonable approval or other reasonable action is required under this Lease, such
consent, approval or action shall not be unreasonably conditioned or delayed.

    	35

    	

    

ARTICLE 32

MISCELLANEOUS

 

32.1 Each party expressly acknowledges
and agrees that the other party hereto has not made and is not making, and the parties, in executing and delivering this Lease,
are not relying upon, any warranties, representations, promises or statements except to the extent that they are expressly set
forth in this Lease. All prior understandings and agreements between the parties are merged in this Lease, which alone fully and
completely expresses the agreement of the parties and which are entered into after full investigation.

 

32.2 No agreement shall be effective to
change, modify, waive, release, discharge, terminate or effect an abandonment of this Lease, in whole or in part, unless such agreement
is in writing, refers expressly to this Lease and is signed by the party against whom enforcement of the change, modification,
waiver, release, discharge, termination or effectuation of the abandonment is sought.

 

32.3 Except as otherwise expressly provided
in this Lease, the obligations under this Lease shall bind and benefit the successors and assigns of the parties hereto with the
same effect as if mentioned in each instance where a party is named or referred to; provided, however, that (a) no violation of
the provisions of Article 8 shall operate to vest any rights in any successor or assignee of Tenant and (b) the provisions of this
Section shall not be construed as modifying the conditions of limitation contained in Article 22. No provision in this Lease
shall be construed for the benefit of any third party except as expressly provided herein.

 

32.4 Submission by either party of this
Lease or other documents pertaining to the subject matter hereof for review and/or execution by the other party hereto shall not
confer any rights or impose any obligations on either party unless and until both parties execute this Lease and duplicate originals
thereof are delivered to the respective parties.

 

32.5 Irrespective of the place of execution
or performance, this Lease shall be governed by and construed in accordance with the laws of the State of New York. If any provision
of this Lease or the application thereof to any person or circumstance, for any reason and to any extent, is invalid or unenforceable,
the remainder of this Lease and the application of that provision to other persons or circumstances shall not be affected but rather
shall be enforced to the extent permitted by law. The table of contents, captions, headings and titles in this Lease are solely
for convenience of reference and shall not affect its interpretation. This Lease shall be construed without regard to any presumption
or other rule requiring construction against the party causing this Lease to be drafted. Except as set forth herein, each obligation
of Tenant under this Lease shall be deemed and construed as a separate and independent covenant of Tenant, not dependent on any
other provision of this Lease.

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32.6 All terms and words used in this
Lease, regardless of the number or gender in which they are used, shall be deemed to include any other number and any other gender
as the context may require.

 

32.7 This Lease may be executed in counterparts
and shall constitute the agreement of Landlord and Tenant whether or not their signatures appear in a single copy hereof.

 

32.8 Tenant represents and warrants that:

 

(a) Tenant is authorized to enter into
this Lease and the execution of this Lease will not constitute a violation of any internal by-law, agreement or other rule of governance;

 

(b) the person executing on Tenant’s
behalf is duly authorized, no other signatures are necessary and Tenant shall supply Landlord with written documentation evidencing
such authority upon or prior to Tenant’s execution of this Lease;

 

(c) to Tenant’s knowledge, Tenant
is not acting, directly or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or
the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other
banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule, or regulation that is enforced or administered
by the Office of Foreign Assets Control; and

 

(d) to Tenant’s knowledge, Tenant
is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly
or indirectly of behalf of, any such person, group, entity or nation.

 

32.9 Landlord represents and warrants
that:

 

(a) Landlord owns the Property, free
and clear of all mortgages; and

 

(b) Landlord is authorized to enter into
this Lease and the execution of this Lease will not constitute a violation of any internal by-law, agreement or other rule of governance;

 

(c) the persons executing on Landlord’s
behalf is duly authorized and that no other signatures are necessary;

 

(d) To Landlord’s knowledge, Landlord
is not acting, directly or indirectly, for or on behalf of any person, group, entity, or nation named by any Executive Order or
the United States Treasury Department as a terrorist, “Specially Designated National and Blocked Person,” or other
banned or blocked person, entity, nation, or transaction pursuant to any law, order, rule, or regulation that is enforced or administered
by the Office of Foreign Assets Control; and

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(e) To Landlord’s knowledge, Landlord
is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction, directly
or indirectly of behalf of, any such person, group, entity or nation.

 

32.10 The parties shall use commercially
reasonable efforts to not disclose any terms or conditions of this Lease (including Fixed Rent), except: (a) if required by law
or in any judicial proceeding, provided that the releasing party has given the other party reasonable Notice of such requirement,
if feasible; (b) to a party’s attorneys, accountants, brokers, and other bona fide consultants or advisors, provided they
agree to be bound by this paragraph; (c) to bona fide prospective assignees or subtenants of this Lease, provided they agree in
writing to be bound by this paragraph or (d) if a party is required to file this Lease as part of reporting requirements under
federal or state law, then the other party, upon receipt of a letter from such party’s outside counsel regarding the necessity
of such filing, shall consent to such disclosure of the Lease for such limited purpose or (e) to prospective purchasers of the
Property and prospective mortgagees. Landlord shall not release to any third party any nonpublic financial information or nonpublic
information about Tenant’s ownership structure that Tenant gives to Landlord.

 

32.11 Nothing herein shall create a relationship
between Landlord and Tenant other than that of Landlord and Tenant governed by the terms of this Lease and applicable law.

 

ARTICLE
33

Landlord’s Default

 

Landlord’s
failure to perform or observe any of its lease obligations after a period of thirty (30) days or such additional time, if any,
as may be reasonably necessary to cure such failure after receiving notice from
the Tenant shall constitute a landlord’s default, unless Landlord shall within such period promptly commence and diligently
prosecute to completion the curing of such failure. Such notice shall give reasonable detail as to the nature and extent of the
failure and identify the lease provisions containing the obligations. After the Tenant receives a notice, containing the name and
address of Superior Mortgagee whose lien is senior to the lien of this lease and a request for notice to such Superior Mortgagee
upon Landlord’s default and failure to cure same pursuant to this Article 33, the Tenant shall also give the notice required
by this paragraph to Superior Mortgagee at the same time the Tenant gives notice to Landlord. Upon Landlord’s default and
failure to cure same pursuant to this Article 33, the Tenant may pursue any remedies given in this Lease or available at law or
in equity.

 

ARTICLE 34

 

[Intentionally
Omitted]

    	38

    	

    

ARTICLE 35

 

[INTENTIONALLY OMITTED]

 

ARTICLE 36

 

ABILITY TO CONTEST
ADDITIONAL CHARGES

 

Tenant, within ninety
(90) days after the date on which the documentation evidencing the Additional Charge are first made available, may send a notice
(“Tenant’s Statement”) to Landlord that Tenant disagrees with the applicable Additional Charge, specifying
in reasonable detail the basis for Tenant’s disagreement and the amount of the Tenant claims is due. If Tenant fails to deliver
a Tenant’s Statement within such ninety (90) day period, then such Additional Charge shall be conclusive and binding on Tenant.
If Tenant delivers a Tenant Statement within such ninety (90) day period, then Landlord and Tenant shall attempt to resolve such
disagreement. If they are unable to do so, then Tenant may notify Landlord, within sixty (60) days after the date on which the
documentation evidencing the Additional Charge are made available to Tenant in connection with the disagreement in question, that
Tenant desires to have such disagreement determined by an Arbiter, and promptly thereafter Landlord shall designate, subject to
Tenant’s reasonable approval, a certified public accountant (the “Arbiter”) whose determination made in
accordance with this Article 36 shall be binding upon the parties. If Tenant timely delivers a Tenant’s Statement, the disagreement
referenced therein is not resolved by the parties and Tenant fails to notify Landlord of Tenant’s desire to have such disagreement
determined by an Arbiter within the ninety (90) day period set forth in the preceding sentence, then the Additional Charge to which
such disagreement relates shall be conclusive and binding on Tenant. If the determination of the Arbiter shall substantially confirm
the determination of Landlord, then Tenant shall pay the cost of the Arbiter. If the determination of Arbiter shall substantially
confirm the determination of Tenant, then Landlord shall pay the cost of the Arbiter. In all other events, the cost of the Arbiter
shall be borne equally by Landlord and Tenant. The Arbiter shall (i) be a certified public accountant and a member of an independent
certified public accounting firm comprised of at least fifteen (15) members who shall be certified public accountants, and (ii)
have at least ten (10) years’ experience in preparing and/or auditing the financial statements of owners and/or operators
of office buildings in Albany, NY which are similar to the building. If Landlord and Tenant shall be unable to agree upon the designation
of the Arbiter within fifteen (15) days after notice from Landlord to Tenant requesting agreement as to the designation of the
Arbiter, then either party shall have the right to request that the American Arbitration Association (or any organization which
is the successor thereto) (the “AAA”) designate as the Arbiter a certified public accountant having the qualifications
described above in this Article 36 and the cost of such certified public accountant shall be borne as provided above in the case
of the Arbiter designated by Landlord and Tenant. Any determination made by an

    	39

    	

    

Arbiter in accordance with this Article
36 shall be conclusive and binding upon the parties. Notwithstanding anything to the contrary set forth herein, the determination
of the Arbiter shall not exceed the amount determined to be due in the first instance by the Additional Charge, and any determination
which does not comply with the foregoing shall be null and void and not binding on the parties. In rendering such determination
the Arbiter shall not add to, subtract from or otherwise modify the provisions of this Lease, including the immediately preceding
sentence. Pending the resolution of any contest pursuant to this Article 36, and as a condition to Tenant’s right to prosecute
such contest, Tenant shall pay all sums required to be paid in accordance with the Additional Charge in question.

 

ARTICLE 37

 

WAIVER OF LANDLORD’S
LIEN

 

Landlord hereby waives
and releases any contractual, statutory or other landlord’s lien which it may have, whether pursuant to this lease, by operation
of law or otherwise, now or in the future on tenant’s furniture, fixtures, supplies, equipment, inventory or other property
of any nature whatsoever.

 

ARTICLE 38

 

TENANT FINANCING

 

Tenant shall have the
absolute right from time to time during the Term hereof and without Landlord’s further approval, written or otherwise, to
grant and assign a mortgage or other security interest in Tenant’s interest in this Lease and all of Tenant’s Property
to Tenant’s lenders in connection with Tenant’s financing arrangements. Landlord agrees to execute such confirmation,
certificates and other documents (except amendments to this Lease unless Landlord hereafter consents) as Tenant’s lenders
may reasonably request in connection with any such financing.

 

[BALANCE OF PAGE INTENTIONALLY
OMITTED.]

    	40

    	

    

IN WITNESS WHEREOF, Landlord and Tenant have
duly executed this Lease as of the day and year first above written.

 

	 	Landlord:	 
	 	 	 	 
	 	RJHDC, LLC	 
	 	 	 	 
	 	By:	/s/ Robert J. Higgins
	 	 	Name:	 
	 	 	Title: 	 
	 	 	 	 
	 	Tenant:	 
	 	 	 
	 	RECORD TOWN, INC.

 

	 	By:	/s/ Mike Feurer	 
	 	 	Name:  Mike Feurer
	 	 	Title:    Chief Executive Officer
	 	 	 	 

 

	 	Tenant:	 
	 	 	 
	 	TRANS WORLD ENTERTAINMENT CORPORATION
	 	 
	 	By:	/s/ Mike Feurer	 
	 	 	Name:  Mike Feurer
	 	 	Title:    Chief Executive Officer

    	41

    	

    

SCHEDULE 1

 

FIXED RENT FOR INITIAL TERM

 

	Premises	 	Period	 	 	Price Per Square Foot	 	 	Annual Rent	 	 	Monthly Rent	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Warehouse Demised Premises	 	 	1/1/16-12/31/20	 	 	$	6.50	 	 	$	919,750	 	 	$	76,645.83	 
	Office Demised Premises	 	 	1/1/16-12/31/20	 	 	$	8.00	 	 	$	318,400	 	 	$	26,533.33	 

    	 

    	

    

EXHIBIT A

 

DEMISED PREMISES

 

[See Existing Leases]

    	2

    	

    

EXHIBIT B

 

LAND

 

[See Existing Leases]

    	 

    	

    

EXHIBIT C-1

 

REQUIRED WORK

 

	1.	Repair office roof as set forth in the Required Work Report.
	 	 
	2.	Repair the masonry walls surrounding the North Lower Roof as set forth in the Required Work Report.
	 	 
	3.	Repair and/or replace the HVAC unit(s) as set forth in the Required Work Report.

    	 

    	

    

EXHIBIT C-2

 

REQUIRED WORK REPORTS

 

	1.	Letter from ComfortTemp Heating & Cooling dated January
    17, 2015
	 	 
	2.	Letter from CentiMark dated January 13, 2015
	 	 
	3.	Letter from CentiMark dated January 13, 2015

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