Document:

ENGAGEMENT TERM SHEET

This Engagement Term Sheet sets out the principal
terms on which Elys Game Technology, Corp. (the “Company”) will engage Philippe Blanc (the “Advisor”).
Capitalized terms used in this Engagement Term Sheet will have the respective meanings as set out in Schedule “C”.

	Services:	
    Independent advisory services to support our
    program/initiative related to Internal Control Enhancement initiatives through the supply of services to support the setting, implementation,
    and management of the group's planning and control processes, with particular reference to the Italian business of the group.

    This is a part-time position reporting to the
    Executive Chairman of the Company.

	
    Control:

     

     

    Service Period:
	
    Advisor shall have the right to control and
    determine the time, place, methods, manner and means of performing his duties. The amount of time devoted by the Advisor will be generally
    within Advisor’s control and will not exceed 110 days per year.

    2 years commencing on July 1, 2021 and ending
    on June 30, 2023 subject to extension for successive period(s) of 1 year on mutual agreement of the Advisor and the Company.

	Total Compensation:	
    Total Compensation per annum is €105,000,
    and will be paid according to the following schedule:

    - €70,000 in January 2022, €35,000
    in May 2022;

    - staring from July 2022 until June 2023 €8,750
    per month;

    In addition, due to continuous engagement with
    the Company the common stock purchase options first issued to the Advisor as director fees on October 1, 2020 will continue until fully
    vested (i.e. October 1, 2021) in accordance with the vesting schedule set out on the form of grant.

    Compensation for any other position into Group
    subsidiaries will be defined separately between the Company and the Advisor.

	Expenses:	Advisor will be reimbursed for actual, reasonable and customary expenses incurred by the Advisor in performing his duties.
	Termination:	Unless this Engagement is terminated for Cause or for Good Reason, this Engagement cannot be terminated prior to the end of the Service Period.

 

     

     

    

	Effect of Termination	
    If this Engagement is terminated for Cause
    no further Compensation is payable after the Termination Date.

    If this Engagement is terminated for Good Reason,
    the Advisor will be paid the lower of 12 months of Compensation or the Compensation due until the end of the Service Period.

	
    Non Competition and

    Non Solicitation:
	The Advisor will be subject to non competition and non solicitation obligations as set out in Schedule “B”.
	Definitive Agreement:	This Engagement Term Sheet is a binding agreement between the Company and the Advisor 

 

DATED as of the
1st day of July, 2021.

 

	
                 ELYS GAME TECHNOLOGY, CORP.

     

	 
	 /s/ Michele Ciavarella
	Name: Michele Ciavarella
	Title:  Executive Chairman

 

 

		 	/s/ Phillippe
    Blanc
	Witness	 	PHILIPPE BLANC

 

     

     

    

SCHEDULE “B”

Non competition and Non solicitation.

		(a)	The Advisor agrees and acknowledges that, in connection with his service
with the Company, he has been and will continue to be provided with access to and become familiar with confidential and proprietary information
and trade secrets belonging to the Company and its Affiliates. The Advisor further acknowledges and agrees that, given the nature of this
information and trade secrets, it is likely that such information and trade secrets would inevitably be used or revealed, either directly
or indirectly, in any subsequent service with a Competitive Business in any position comparable to the position he will hold with the
Company under this Engagement. Accordingly, in consideration of his service with the Company pursuant to this Engagement, and other good
and valuable consideration, the receipt of which is hereby acknowledged, the Advisor agrees that, while he is in the employ of the Company
and for one (1) year after the date that the Advisor ceases to be an Advisor of the Company, Advisor will not, without the prior written
consent of Company, for his own account or jointly with another, for or on behalf of any person, as principal, agent, shareholder, participant,
partner, promoter, director, officer, manager, Advisor, consultant, sales representative or otherwise:

		(i)	provide services the same as or substantially similar to those Advisor provided
while employed by Company to any business engaged, or which he reasonably knows is undertaking to become engaged, in a business that is
in competition with the Business of the Company or its Affiliates (a “Competitive Business”) in any jurisdiction
in the world where the Company does business; provided that Advisor may purchase or otherwise acquire up to (but not in excess of) 2%
of any class of securities of any Person, including a Competitive Business (but without otherwise participating in the activities of such
Person), if such securities are listed on any national or regional securities exchange;

		(ii)	directly or indirectly solicit, or assist in the solicitation of, any Person
or entity to whom the Company or any Affiliate sold or licensed or provided any products or services on, or during the two (2) year period
prior to, the date of termination of service, and with whom the Advisor had contact with, solicited, provided services for, received services
from, or gained substantive knowledge of during the six (6) months immediately prior to the Advisor’s last day of service, for the
purpose of obtaining the patronage of such Person for the purchase of any competitive products or services;

		(iii)	directly or indirectly solicit, interfere with, disturb, or attempt to solicit,
interfere with or disturb, directly or indirectly, the relationship (contractual or otherwise) with any Person who is, as of the date
of termination of service, or was within two (2) years prior to the date of termination of service, a supplier of the Company or any Affiliate,
including any actively sought prospective supplier of the Company or any Affiliate, and with whom the Advisor had contact with, solicited,
provided services for, received services from, or gained substantive knowledge of during the six (6) months immediately prior to the Advisor’s
last day of service, for the purpose of inducing such supplier to cease doing business with the Company or any Affiliate; or

		(iv)	directly or indirectly recruit, solicit, encourage, or assist in the solicitation
of, for the purpose of offering service to or hiring, any Person employed by the Company or any Affiliate (as an Advisor, independent
contractor or otherwise) unless, prior to any such solicitation, such person is no longer employed or engaged by the Company or any Affiliate.

     

     

    
		(b)	The parties agree that the relevant public policy aspects of covenants not
to compete and not to solicit have been discussed, and that every effort has been made to limit the restrictions placed upon the Advisor
to those that are reasonable and necessary to protect the Company’s legitimate interests. The Advisor acknowledges that, based upon
his education, experience, and training, these non-compete and non-solicit provisions will not prevent him from earning a livelihood and
supporting himself and his family during the relevant time period. The Advisor further acknowledges that a narrower geographic limitation
on the restrictive covenants than that set forth above would not adequately protect the Company’s legitimate business interests.

		(c)	If any provision of this Section, or the application of such provision to
any Person or circumstance is held invalid, illegal or unenforceable in any respect by a court or other tribunal of competent jurisdiction,
such provision will, without any actions on the part of the parties to this Engagement, be modified to the least extent necessary to cause
such provision to conform to the law as determined by such court or other tribunal, and such invalidity, illegality or unenforceability
will not affect any other provision of this Engagement.

		(d)	The restrictions contained in this Section are necessary for the protection
of the business, goodwill and Confidential Information of the Company and its Affiliates and are considered by the Advisor to be reasonable
for such purposes. The Advisor agrees that any material breach of this Section will cause the Company and its Affiliates substantial and
irrevocable damage and therefore, in the event of any such breach, in addition to such other remedies which may be available, the Company
shall have the right to seek specific performance and injunctive relief, cease any severance payments being made to the Advisor, and/or
recover severance payments already made.

		(e)	The existence of a claim, charge, or cause of action by the Advisor against
the Company shall not constitute a defense to the enforcement by the Company of the foregoing restrictive covenants.

		(f)	The provisions of this Section shall survive termination of this Engagement
and apply regardless of the reason for the termination of the Advisor’s service.

 

     

     

    

SCHEDULE “C”

Definitions

		(a)	“Affiliate”: with respect to any Person, any other
Person directly or indirectly controlling, controlled by or under common control with such Person. For purposes of this definition, “control,”
when used with respect to any Person, means the possession, directly or indirectly, of the power to direct or cause the direction of the
management and policies of any such Person, whether through the ownership of voting securities, by contract or otherwise, and the term
“controlled” has the meaning correlative to the foregoing. With respect to any natural Person, “Affiliate”
will include such Person’s parents, any descendants of such Person’s parents, the parents of such Person’s spouse and
any descendants of the parents of such Person’s spouse (in each case, whether by blood, adoption or marriage).

		(b)	“Board”: the Board of Directors of the Company.

		(c)	“Business”: the business as conducted by the Company
and its Affiliates includes the providing of leisure betting technology software and services and the retail distribution and sales of
leisure betting products such as sports bets, lotto tickets, virtual sports bets, online poker and casino products through both physical
land-based retail locations as well as online channels through websites and mobile devices.

		(d)	“Cause”: (i) the continued failure by Advisor
to perform his duties, after reasonable notice and an opportunity to cure is given by the Company which specifically sets forth the factual
basis for the Company’s belief that Advisor has not substantially performed his duties; (ii) the conviction of Advisor of any felony
or the plea by Advisor of nolo contendere to any felony or offense evidencing moral turpitude; (iii) Advisor directly or on behalf
of another Person, receiving a benefit relating to the Company or its subsidiaries or its funds, properties, opportunities or other assets
that the Board considers to be in violation of a policy of the Company, applicable law, or constituting fraud, embezzlement or misappropriation;
(iv) the failure by Advisor to comply with any written policy of the Company made available to Advisor after reasonable notice and an
opportunity to cure; (v) Advisor’s misstatement of the financial records of the Company or its subsidiaries or complicit actions
in respect thereof; (vi) the breach by Advisor of any of the terms of this Engagement; or (vi) Advisor’s disparaging the Company,
its subsidiaries or its executives, or engaging in any conduct that would tend to harm their reputation.

		(e)	“Change of Control” : the sale of all or substantially
all the assets of the Company; any merger, consolidation or acquisition of the Company with, by or into another corporation, entity or
person; or any change in the ownership of more than fifty percent (50%) of the voting capital stock of the Company in one or more related
transactions and that results in a change in governance of the Company in effect as of the Effective Date of this Engagement.

		(f)	“Commencement Date”: July 1, 2021.

		(g)	“Disability”: means a physical or mental incapacity
upon the determination by a licensed medical doctor practicing as a specialist in the area to which the alleged disability relates that
is satisfactory to the Company, the result of which Advisor becomes unable to engage in any substantial gainful activity that is either
expected to result in death or has lasted or is expected to last for a continuous period of at least 12 months. The Board’s determination,
in its sole discretion, as to whether a Disability exists, and the initial date of Disability shall be final and binding upon the parties.

     

     

    
		(h)	“Good Reason”: means (i) a material adverse change
to Advisor’s positions, titles, offices, or duties except, in such case, in connection with the termination of Engagement for Cause
or due to Disability, death or expiration of the Service Period; (ii) a decrease in the Total Compensation payable; (iii) a requirement
that on a continuing basis Advisor reports to anyone other than the Executive Chairman of the Company; provided that Advisor may be required
to report to the Board through the Chairman or Executive Chairman or another Board member who is not an executive officer of the Company;
(iv) any other material failure by the Company to perform any material obligation under, or material breach by the Company of any material
provision of, this Engagement; and (v) any Change of Control. 

		(i)	“Proceeding”: any action, suit, or proceeding
whether civil, criminal, administrative, or investigative. 

		(j)	“Termination Date”: the date on which the agreement
between the Company and the Advisor terminates.Exhibit 10.1

 

FIRST AMENDMENT TO OFFICE
LEASE

 

This First
Amendment to Office Lease (this "Amendment") is executed as of June 30, 2021, between TEACHERS INSURANCE AND ANNUITY
ASSOCIATION OF AMERICA, a New York corporation, for the benefit of the Real Estate Account ("Landlord"),
and HALLMARK FINANCIAL SERVICES, INC., a Nevada corporation ("Tenant"), for the purpose of amending the Office
Lease between Landlord and Tenant dated August 6, 2018 (the "Lease"). Capitalized terms used herein but not defined
shall be given the meanings assigned to them in the Lease.

 

RECITALS:

 

Pursuant to
the terms of the Lease, Tenant is currently leasing 1010, and 1100, consisting of approximately 47,172 square feet (the “1100
Premises”) and 3,000 square feet (the “380 Premises” and collectively referred to with the 1100
Premises as the “Existing Premises”), in the Building located at 5420 LBJ Freeway, Dallas, Texas 75240, and
commonly known as Two Lincoln Centre (the "Building"). Tenant desires to (a) extend the Lease Term and (b) lease
the space depicted on Exhibit A hereto, containing approximately 16,588 square feet and commonly known as Suite 1200 (the
"Expansion Premises"), and Landlord has agreed to extend the Lease Term and lease such space to Tenant on the
terms and conditions contained herein.

 

AGREEMENTS:

 

For valuable consideration, whose receipt and sufficiency
are acknowledged, Landlord and Tenant agree as

follows:

 

1.             Extension of Lease Term. The Lease Term is hereby extended such that it expires at 5:00 p.m., Dallas, Texas time,
on the last day of the one hundred forty-fourth (144th) full calendar month following the Expansion Date (hereinafter defined),
on the terms and conditions of the Lease, as modified hereby.

 

		2.	Expansion.

 

(a)        Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Expansion Premises on the terms and conditions of
the Lease, as modified hereby; accordingly, from and after the Expansion Date, the term "Premises" shall refer
collectively to the Existing Premises and the Expansion Premises, and, except as otherwise provided herein, Tenant's Proportionate Share
shall be increased to 10.41%, which is the percentage obtained by dividing the number of square feet in the 1100 Premises (as defined
in the Lease) and the Expansion Premises (63,760) by the number of square feet in the Building (612,462). Notwithstanding anything herein
to the contrary, per Section 3(e) of the Lease, Tenant is not responsible for paying Operating Expenses for Suite 380 (“Storage
Space”). Pursuant to the Lease, Suite 380 shall not be included in the Tenant’s Proportionate Share. Tenant accepts
the Expansion Premises in their "AS-IS" condition and Landlord shall not be required to perform any demolition
work or tenant finish-work therein or to provide any allowances therefor, except as expressly set forth in Exhibit B to
this Amendment; however, Landlord shall deliver the base mechanical, electrical, plumbing, and HVAC systems serving the Expansion Premises
in good working order. Landlord and Tenant stipulate that the number of square feet in the Existing Premises, the Expansion Premises,
and the Building are correct. Notwithstanding anything herein to the contrary, Landlord shall measure the Expansion Premises in accordance
with the BOMA Method (as defined in the Lease), which shall be subject to certification by Tenant at its sole cost and expense on or before
the Expansion Date which may result in a further amendment to this Lease to certify the size of the Expansion Premises.

 

(b)        The
Lease Term for the Expansion Premises shall begin on the Expansion Date and shall expire co-terminously with the expiration date
with respect to the Existing Premises, unless sooner terminated as provided in the Lease. As used herein, the "Expansion
Date" means the earliest of (i) January 1, 2022, (ii) fifteen (15) days following the date on which the Tenant Finish
Work (as defined in Exhibit B hereto) in the Expansion Premises is Substantially Completed (as defined in Exhibit
B hereto), or (iii) fifteen (15) days following the date on which the Tenant Finish Work in the Expansion Premises would
have been Substantially Completed but for the occurrence of any Tenant Delays (as defined in Exhibit B hereto).
Anything to the contrary contained herein notwithstanding, Tenant may conduct business in the Expansions Premises fifteen (15) days
prior to the Expansion Date, which period shall be referred to as the “Beneficial Occupancy Period”.
During the Beneficial Occupancy Period, Tenant shall have the right to occupy and conduct business within the Expansion Premises
with no obligation to pay Base Rent or Operating Expenses for the Expansion Premises. Tenant shall be responsible for paying its
pro-rata share of Electricity Costs during the Beneficial Occupancy Period.

 

    

     

    

 

(c)        Within ten (10) days following the Expansion Date, Tenant shall execute and deliver to Landlord a letter confirming (i) the Expansion
Date, (ii) that Tenant has accepted the Expansion Premises, and (iii) that Landlord has performed all of its obligations with respect
to the Expansion Premises (except for punch-list items specified in such letter); however, the failure of the parties to execute such
letter shall not defer the Expansion Date or otherwise invalidate the Lease or this Amendment.

 

(d)        Provided that Tenant delivers to Landlord satisfactory proof that Tenant is carrying the insurance required by the Lease, Tenant
may occupy the Expansion Premises up to sixty (60) days prior to the Expansion Date (the "Early Possession Date")
to install Tenant’s furniture, fixtures, equipment, and voice and data cabling ("Early Possession"). The
obligation to pay Base Rent and Tenant’s Proportionate Share of Operating Expenses for the Expansion Premises only shall be abated
for the period from the Early Possession Date to the Expansion Date. Notwithstanding, Tenant shall not be required to pay its Proportionate
Share of Electricity during the Early Possession period but shall pay electricity costs during the Beneficial Occupancy Period. All other
terms of the Lease, however, including, but not limited to, the obligation to carry the insurance required by the Lease, shall be in effect
during the Early Possession period.

 

(e)        As an accommodation to Tenant, Tenant shall have the exclusive right to use temporarily, and Landlord will provide to Tenant on
a temporary basis, approximately 20,000 square feet in the Centre for temporary storage of Tenant’s furniture, fixtures, and equipment
(the “Temporary Premises”), which Temporary Premises will be identified by Landlord in writing to Tenant. The
Temporary Premises shall be made available to Tenant promptly after June 21, 2021, on an “AS IS, WHERE IS” basis, and Landlord
shall have no obligation to refurbish or make any improvements or alterations of any nature in the Temporary Premises or provide any improvement
allowance with respect thereto. Tenant's lease of the Temporary Premises shall be on and subject to all of the terms and conditions of
the Lease, except that (i) Tenant shall not be obligated pay Base Rent, Additional Rent or Electrical Costs for the Temporary Premises,
provided Tenant shall be responsible for paying the costs of any after- hours HVAC or other additional services pursuant to the Lease;
(ii) Tenant shall have no right to renew or extend the Lease Term with respect to the Temporary Premises; (iii) Tenant shall not make
any Alterations to the Temporary Premises without the consent of Landlord; (iv) Tenant shall be expressly prohibited from assigning or
subleasing any or all of the Temporary Premises or any interest therein; (v) Tenant shall permit Landlord or its agents, at any time,
with reasonable prior notice to Tenant or charge therefor to Landlord, to enter the Temporary Premises to exhibit the same to prospective
tenants; and (vi) Tenant further agrees to cooperate with Landlord in connection with Landlord's exercise of Landlord's rights of entry
under this Section 2(e). Tenant, at its sole cost and expense, will be responsible for obtaining telephone, cable and other services as
needed for the operation of the Temporary Premises. Tenant's rights in this Section 2(e) to use the Temporary Premises shall terminate
on, and Tenant shall vacate the Temporary Premises within ten

(10) business days following the
Expansion Date. Tenant's failure to surrender the Temporary Premises in accordance with the terms of the Lease within ten (10) business
days following the Expansion Date shall be subject to the holdover provisions of Paragraph 20(f) of the Lease. Notwithstanding the foregoing
provisions of this Section 2(e), upon thirty (30) days prior written notice to Tenant, Landlord may relocate the Temporary Premises to
other space in the Centre at Landlord’s sole cost and expense.

 

		3.	Base Rent.

 

(a)        The monthly installments of Base Rent under the Lease for the Expansion Premises shall be the following amounts for the following
periods of time, beginning on the Expansion Date:

 

    

     

    

 

	
     

    Lease Months
	Annual Base Rent Rate Per

 Square Foot	Monthly Installments of 

Base Rent
	1 – 18	$27.50	$38,014.17*
	19 – 36	$27.50	$22,916.67**
	37 – 42	$28.25	$39,050.92
	43 – 54	$29.00	$40,087.67
	55 – 66	$29.75	$41,124.42
	67 – 78	$30.50	$42,161.17
	79 – 90	$31.25	$43,197.92
	91 – 102	$32.00	$44,234.67
	103 – 114	$32.75	$45,271.42
	115 – 126	$33.50	$46,308.17
	127 – 138	$34.25	$47,344.92
	139 – 144	$35.00	$48,381.67

*Base Rent and Tenant’s
Proportionate Share of Operating Expenses will be abated for the period commencing on the Expansion Date and ending on the last day of
the 18th Lease Month following the Expansion Date in accordance with Paragraph 20(ff) of the Lease.

**During the period commencing
on the 19th Lease Month following the Expansion Date and ending on the last day of the 36th Lease Month following
the Expansion Date, (i) Base Rent and Tenant’s Proportionate Share of Electricity Costs for the Expansion Premises shall be calculated
as though the Expansion Premises contains 10,000 square feet and (ii) Tenant’s Proportionate Share of Operating Expenses for the
Expansion Premises will be abated in accordance with Paragraph 20(ff) of the Lease.

 

(b)        Beginning July 1, 2032 (the “Renewal Date”), the monthly Base Rent for the 1100 Premises shall be the
following amounts for the following periods of time:

 

	
     

    Period
	Annual Base Rent Rate Per 

Square Foot	Monthly Installments of

 Base Rent
	7/1/32 – 6/30/33	$34.25	$134,636.75
	7/1/33 – Expiration Date	$35.00	$137,585.00

 

(c)         Beginning on the Renewal Date, the monthly Base Rent for the 380 Premises shall be the following amounts for the following periods
of time:

 

	
     

    Period
	Annual Base Rent Rate Per

 Square Foot	Monthly Installments of

 Base Rent
	7/1/32 – Expiration Date	$19.25	$4,812.50*

*Pursuant to Section 3(e) of the
Lease, Tenant shall continue to not be responsible for paying any Operating Expenses for the 380 Premises and the 380 Premises shall not
be included in the calculation of Tenant’s Proportionate Share.

 

4.             Tenant Finish-Work. Landlord shall construct tenant improvements in the Expansion Premises in accordance with Exhibit
B hereto.

 

    

     

    

 

		5.	Operating Expenses.

 

(a)        With regard to the Expansion Premises, on the Expansion Date, and, with regard to the 1100 Premises, on the Renewal Date, Item
8 of the Basic Lease Provisions is deleted.

 

(b)        With regard to the Expansion Premises, on the Expansion Date, and, with regard to the 1100 Premises, on the Renewal Date, Paragraph
3(a) of the Lease is deleted, and the following substituted therefor: “Tenant shall pay to Landlord as additional rent (“Additional
Rent”) an amount equal to Tenant’s Proportionate Share (defined below) of Operating Expenses. In addition to payment of
Tenant’s Proportionate Share of Operating Expenses, Tenant shall also pay to Landlord as part of Additional Rent, Tenant's Proportionate
Share of Electrical Costs (defined below).”

 

(c)        With regard to the Expansion Premises, on the Expansion Date, and, with regard to the 1100 Premises, on the Renewal Date, Paragraph
3(c) of the Lease is deleted.

 

(d)        With regard to the Expansion Premises, on the Expansion Date, and, with regard to the 1100 Premises, on the Renewal Date, Paragraph
3(e) of the Lease is amended by deleting the clause “(including Tenant’s Base Year for Operating Expenses)”.

 

(e)        With regard to the Expansion Premises, on the Expansion Date, and, with regard to the 1100 Premises, on the Renewal Date, the first
sentence of Paragraph 3(g) of the Lease is deleted and the following substituted therefor: “Prior to the commencement of each calendar
year of the Lease Term, Landlord shall have the right to give to Tenant a written estimate of Tenant’s Proportionate Share of Operating
Expenses, if any, for the Property for the ensuing year.”

 

(f)         With regard to the Expansion Premises, on the Expansion Date, and, with regard to the 1100 Premises, on the Renewal Date, the Lease
is amended by replacing all references to the phrase “excess Operating Expenses” with “Operating Expenses”.

 

		6.	Parking; Entry Cards.

 

(a)         On
the Expansion Date, Item 13 of the Basic Lease Provisions is deleted, and the following substituted therefor: “Three hundred
nineteen (319) unreserved parking spaces in the east and west parking garages serving the Centre (the "Garage
Spaces") at $75.00 per Garage Space per month (plus tax). Tenant may convert up to six (6) unreserved Garage Spaces to
reserved spaces in the parking garage located beneath the Building at $150.00 per reserved space per month (plus tax). Tenant may
convert up to thirty-two (32) of the Garage Spaces to reserved spaces in the Centre's east or west parking garage at $150.00 per
space per month. So long as there is no event of default that remains uncured beyond any applicable notice and cure period, the
rental for the unreserved Garage Spaces will be abated during the Lease Term. Following such event of default, upon notice by
Landlord, rental for the unreserved Garage Spaces will commence effective on the date of Tenant's event of default. (See Paragraph
18).”

 

(b)        On the date Landlord provides Tenant access to the Temporary Space, Landlord, at Landlord’s sole cost, agrees to provide
to Tenant sixty-eight (68) additional parking entry cards, at Landlord’s sole cost. Tenant’s rights to use the same shall
terminate upon the Expansion Date.

 

(c)        On the Expansion Date, Paragraphs 18(b) and (c) are amended by replacing the references to “Two hundred fifty-one (251)”
with “three hundred nineteen (319).”

 

		7.	Right of First Refusal.

 

 (a)        Exhibit G to the Original Lease is deleted and of no further force and effect.

 

(b)        Tenant shall have a right of first refusal to lease any space on the 10th and 12th floors of the Building pursuant to the right
of first refusal attached hereto as Exhibit C.

 

    

     

    

 

		8.	Reduction Option. Exhibit H to the Original Lease is deleted and of no further force
and effect.

 

		9.	Termination Option. Exhibit I to the Original Lease is deleted and of no further force
and effect.

 

10.           Signage. Landlord, at its sole cost, will provide Building standard suite signage for the Expansion Premises and
updated Lobby directory signage.

 

11.           Security Deposit. Contemporaneously with the execution hereof, Lessee shall deliver to Landlord $65,204.66 to be
held as part of the Security Deposit under the Lease, thereby increasing the Security Deposit to $213,436.16.

 

12.           Confidentiality. Tenant acknowledges the terms and conditions of the Lease (as amended hereby) are to remain confidential
for Landlord's benefit and may not be disclosed by Tenant to anyone, by any manner or means, directly or indirectly, without Landlord's
prior written consent, except to any accountants of Tenant in connection with the preparation of Tenant’s financial statements or
tax returns, to an assignee of this Lease or subtenant of the Premises, or to an entity or person to whom disclosure is required by applicable
law or in connection with any action brought to enforce the Lease. Neither party shall issue or make any public announcement, press release
or other public disclosure regarding this Amendment or its subject matter or the parties without the other party’s prior written
consent, except for any such disclosure that is, either required for a party to comply with its rights and obligations under the Lease,
or which in the opinion of the disclosing party's counsel, required by law or the rules of a stock exchange on which the securities of
the disclosing party are listed. In the event a party is, in the opinion of its counsel, required to make a public disclosure by law or
the rules of a stock exchange on which its securities are listed, such party shall submit the proposed disclosure in writing to the other
party at least five (5) days prior to the date of disclosure for an opportunity to comment.

 

13.           Brokerage. Landlord and Tenant each warrant to the other that it has not dealt with any broker or agent in connection
with the negotiation or execution of this Amendment other than Cushman & Wakefield U.S. Inc., representing Landlord, and CBRE, Inc.,
representing Tenant, whose commissions shall be paid by Landlord pursuant to separate written agreements. Tenant and Landlord shall each
indemnify the other against all costs, expenses, attorneys' fees, and other liability for commissions or other compensation claimed by
any other broker or agent claiming the same by, through, or under the indemnifying party.

 

14.           Ratification. Tenant hereby ratifies and confirms its obligations under the Lease, and represents and warrants to
Landlord that it has no defenses thereto. Additionally, Tenant further confirms and ratifies that, as of the date hereof, (a) the Lease
is and remains in good standing and in full force and effect, (b) Tenant has no claims, counterclaims, set-offs or defenses against Landlord
arising out of the Lease or in any way relating thereto or arising out of any other transaction between Landlord and Tenant, and (c) except
as expressly provided for in this Amendment, all tenant finish-work allowances provided to Tenant under the Lease or otherwise, if any,
have been paid in full by Landlord to Tenant, and Landlord has no further obligations with respect thereto.

 

15.           No Representations. Landlord and Landlord's agents have made no representations or promises, express or implied,
in connection with this Amendment except as expressly set forth herein and Tenant has not relied on any representations except as expressly
set forth herein.

 

16.           Binding Effect; Governing Law. Except as modified hereby, the Lease shall remain in full effect and this Amendment
shall be binding upon Landlord and Tenant and their respective successors and assigns. If any inconsistency exists or arises between the
terms of this Amendment and the terms of the Lease, the terms of this Amendment shall prevail. This Amendment shall be governed by the
laws of the State of Texas.

 

17.           Counterparts. This Amendment may be executed in multiple counterparts, each of which shall constitute an original,
but all of which shall constitute one document.

 

18.           Electronic
Signatures. This Amendment may be executed by electronic signature, which shall be considered as an original signature for
all purposes and shall have the same force and effect as an original signature. For these purposes, “electronic
signature” shall mean electronically scanned and transmitted versions (e.g., via pdf file) of an original signature,
signatures electronically inserted and verified by software such as Adobe Sign, or faxed versions of an original signature.

 

    

     

    

 

This
Amendment is executed on the respective dates set forth below, but for reference purposes this Amendment shall be dated as of the date
first above written. If the execution date is left blank, this Amendment shall be deemed executed as of the date first written above.

 

	LANDLORD:	TEACHERS INSURANCE AND ANNUITY ASSOCIATION
    OF AMERICA, a New York corporation, for the benefit of the Real Estate Account
	 	 
	 	 
	 	By:	/s/ Derreck Barker
	 	Name:	Derreck Barker
	 	Title:	Authorized Signer
	 	 
	TENANT:  	HALLMARK FINANCIAL SERVICES, INC.,

 a Nevada corporation
	 	 
	 	 
	 	By:	/s/ Tarek Timol
	 	Name:	 Tarek Timol
	 	Title:	Chief Administrative Officer

 

    

     

    

 

EXHIBIT A

 

DEPICTION OF EXPANSION
PREMISES

 

 

    

     

    

 

EXHIBIT B

 

WORK AGREEMENT

 

		A.	PLANS AND SPECIFICATIONS. Tenant shall submit to Landlord within fifteen
(15) days after the date of this Amendment space plan(s) and other information (collectively, the "Space Plan")
necessary or required by Landlord to complete the initial plans and specifications (the "Initial Construction Documents")
for the construction of the tenant finish in the Expansion Premises. Landlord’s Architect, Entos Design, shall prepare and submit
the Initial Construction Documents to Tenant for Tenant's approval as soon as practical after receiving the Space Plan.

 

Within ten (10) business days
after receipt of the Initial Construction Documents, Tenant shall deliver to Landlord a notice either approving or disapproving them.
Any disapproval must specify in reasonable detail the reasons for the disapproval. If Tenant requests any changes in the Initial Construction
Documents that vary from the Space Plan, the redrawing costs will be at Tenant's expense, subject to application of any available portion
of the Allowance. If Landlord does not receive a notice from Tenant disapproving the Initial Construction Documents within the ten (10)
business day period, Landlord shall send a second and final notice (“Final Notice”) and Tenant shall have three
(3) days following the Final Notice to respond in writing whether it approves or disapproves the Initial Construction Documents. If Tenant
does not respond within the three (3) day period, then Tenant is deemed to approve the Initial Construction Documents. Any redrawing of
or changes in the Initial Construction Documents requested by Tenant after Tenant's initial approval is at Tenant's expense, subject to
application of any available portion of the Allowance.

 

The approved Initial Construction
Documents are referred to as the "Construction Documents" and all work to be performed by Landlord under the Construction
Documents is referred to as the “Tenant Finish Work”. Landlord does not warrant that the Construction Documents
comply with applicable Laws. Tenant, at its sole cost and expense, is responsible to ensure that Tenant's business operations at the Expansion
Premises comply with applicable Laws. The term “Substantially Complete” and any derivations thereof mean the
Tenant Finish Work in the Expansion Premises are substantially completed (as evidenced by receipt of a certificate of occupancy or equivalent
issued by the applicable authorities) and in substantial accordance with the Construction Documents. Substantial Completion shall not
be prevented from occurring by minor details of construction, decoration, landscaping and mechanical adjustments that remain to be completed
by Landlord. Tenant shall cooperate with Landlord in connection with Landlord’s pursuit of a certificate of occupancy for the Expansion
Premises and shall execute any required documentation request by the applicable governmental authority in connection therewith.

 

		B.	TENANT FINISH WORK. Landlord shall construct or cause to be constructed
the Tenant Finish Work in substantial accordance with the Construction Documents. Landlord shall provide Tenant use of the Building freight
elevator serving the Tenant’s floors at no additional cost during Tenant’s construction period. Landlord shall contract with
Scott + Reid General Contractors to perform the Tenant Finish Work. Tenant shall pay the Actual Cost (defined below) of all Tenant Finish
Work in excess of $1,161,160.00 (the “Allowance”). The Allowance includes the cost of preparing the Construction
Documents. The Allowance is for use only in connection with the Tenant Finish Work under the Construction Documents, to include all interior
improvements, architectural/engineering fees, project management fees for Landlord’s Construction Manager (limitations described
in Exhibit B herein), permitting fees, and asbestos testing and costs used in connection with the Soft Cost Allowance as expressly permitted,
and Tenant has no right to any unused or unexpended portion of the Allowance following completion of the Tenant Finish Work except as
described in Exhibit B herein. Anything to the contrary herein notwithstanding, Tenant may apply up to $82,940.00 of the Allowance (the
 “Soft Cost Allowance”) toward the soft costs portion of the Actual Cost of the Tenant Finish Work or relating
to Tenant’s expansion into the Expansion Premises, including without limitation, voice and data cabling costs, moving costs, audio/visual
equipment costs, furniture (acquisition and installation), security/access costs, other consultant fees (other than architect fees, engineer
fees and project management fees), server costs, and infrastructure costs. Landlord shall reimburse Tenant for actual costs for the above
items within thirty (30) days of Landlord’s receipt of invoice(s) and Tenant shall provide Landlord with final lien waivers conditioned
upon receipt of final payment by its subcontractors, suppliers and materialmen
directly engaged by Tenant. In addition to the portion of the Allowance allocated to the Soft Cost Allowance, Tenant may apply up to $82,940.00
of the Allowance against Base Rent for the Expansion Premises for the period commencing on the 19th Lease Month following the Expansion
Date and ending on the last day of the 36th Lease Month following the Expansion Date. The following costs will not be included in the
Soft Cost Allowance definition herein: interior improvements, all signage costs, and Rent. Tenant's right to use the Allowance expires
on January 31, 2023; any balance then remaining is deemed waived by Tenant, unless Tenant timely requests Landlord to apply a portion
of the Allowance against Base Rent in accordance with the terms of this Paragraph B.

 

    

     

    

 

Landlord will reimburse Tenant up
to $1,658.80 (the "Test Fit Allowance") above and beyond the Allowance for costs incurred in preparation of an
initial "test fit" drawing, as well as up to two (2) revisions thereof.

 

The term "Actual
Cost" means the cost of all labor and materials and all hard and soft costs, together with the "Building Service Fee"
of 3% which shall apply only to the Hard Construction Costs (as defined below), incurred by Landlord in constructing the Tenant Finish
Work, or the Additional Work (defined below), as applicable. “Hard Construction Costs” shall be the amounts
invoiced by Landlord’s contractor, and thereafter paid by Landlord to Landlord’s contractor, in constructing the Tenant Finish
Work or Additional Work.

 

If prior to commencement of the
Tenant Finish Work Landlord determines, based on construction bids received by Landlord, that the Actual Cost of the Tenant Finish Work
will exceed the Allowance, then Landlord shall notify Tenant. If Tenant approves of the Actual Costs that exceed the Allowance (which
approval shall not be unreasonably withheld, conditioned, or delayed), Tenant agrees to pay the excess to Landlord as additional Rent
in installments as set forth below. If Tenant does not approve the Actual Costs that exceed the Allowance, Landlord and its architect,
at no additional cost to Tenant, shall perform value engineering on the Tenant Finish Work in an effort to reduce the Actual Cost. Landlord
is not obligated to commence constructing the Additional Work until it receives fifty percent (50%) of the excess payment from Tenant.
The remaining fifty percent (50%) of the excess shall be paid within ten (10) days of the completion of the Tenant Finish Work.

 

If during construction the Actual
Cost of the Tenant Finish Work exceeds the Allowance and all amounts previously paid by Tenant to Landlord prior to the commencement of
construction, then Landlord shall submit interim statements covering any excess costs incurred by Landlord under this Paragraph and Tenant
shall pay the amount of the excess costs to Landlord as additional Rent within thirty (30) days following Landlord’s written demand
therefor.

 

		C.	ADDITIONAL WORK. If Landlord performs, at Tenant's request and upon submission
by Tenant and approval by Landlord of necessary plans and specifications therefor (as approved, the "Additional Work Plans"),
any work over and above the Tenant Finish Work ("Additional Work"), including any Additional Work approved by
change order or work order, then the Additional Work is at Tenant's expense if the total cost of the Additional Work is above the Allowance.
Landlord is not obligated to perform any Additional Work until Tenant pays Landlord fifty percent (50%) of the Actual Cost of the Additional
Work minus any remaining Allowance (“Excess Additional Work Cost”), as estimated by Landlord. If the Actual
Cost of the Additional Work exceeds the estimated Excess Additional Work Cost, then Tenant shall pay fifty percent (50%) of the excess
to Landlord as additional Rent upon written notice received from Landlord and the remaining fifty percent (50%) of the excess Actual Cost
of the Additional Work shall be paid within ten

(10) days of the completion of the Additional
Work

 

		D.	TENANT DELAYS. If Landlord is delayed in substantially completing the Tenant
Finish Work as a result of any of the following ("Tenant Delay(s)"):

 

		(1)	Tenant's failure to promptly and timely furnish any information reasonably required by Landlord;

 

    

     

    

 

		(2)	Tenant's request for materials, finishes, or installations other than Landlord's
Building standard items that are considered long lead items, the procurement of which causes actual delay to the critical path of the
construction schedule, and only to the extent Landlord has not delayed initiating procurement of such long lead items;

 

		(3)	because Tenant fails to attend any meeting with Landlord, the architect, any design
professional, or any contractor, or their respective employees or representatives, as may be required or scheduled hereunder or otherwise
necessary in connection with the performance of the Tenant Finish Work, and Tenant’s failure causes actual delay to the critical
path of the construction schedule; or

 

		(4)	because a Tenant Party otherwise delays completion of the Tenant Finish Work;

 

then the date of Substantial Completion is accelerated by
the number of days of Tenant Delays.

 

		E.	PROJECT ENGINEER. Tenant must use the fire alarm, mechanical, electrical,
and plumbing engineer(s) of record for the Centre in connection with any Tenant Finish Work or Additional Work affecting the Building's
fire alarm, mechanical, electrical, or plumbing systems. Landlord shall designate from time to time (1) the mechanical, electrical and
plumbing engineer of record for the Building; and (2) the fire alarm contractor of record for the Building.

 

		F.	PAYMENTS BY TENANT. All amounts payable by Tenant under this Exhibit are
payable to Landlord as additional Rent within thirty (30) days after Tenant's receipt of Landlord's demand.

 

		G.	PUNCHLIST. Upon Substantial Completion of the Tenant Finish Work and any
Additional Work, Landlord shall notify Tenant. Within three (3) business days after the date of Landlord's notice to Tenant, Landlord
and Tenant shall meet and inspect the Expansion Premises. Tenant shall reasonably specify any part of the Tenant Finish Work or the Additional
Work that is not in substantial compliance with the Construction Documents by delivering a punchlist to Landlord within three (3) business
days after the date of the inspection. Landlord shall correct the items shown on the punchlist that are not in substantial compliance
with the Construction Documents with reasonable due diligence and will have access to the Expansion Premises to do so.

 

		H.	CONSTRUCTION REPRESENTATIVES. Landlord’s and Tenant’s representatives
for coordination of construction and approval of change orders will be as follows, provided that either party may change its representative
upon written notice to the other:

 

	Landlord’s Representative:	c/o Cushman & Wakefield U.S. Inc.
	 	5430 LBJ Freeway, Suite 200
	 	Dallas, TX 75240
	 	Telephone:	 	 

 

	Tenant’s Representative:	Tarek Timol
	 	c/o Hallmark Financial Services, Inc. 5420 LBJ Freeway, Suite 1100
	 	Dallas, Texas 75240
	 	Telephone: 817.348.1776

 

		I.	LANDLORD’S WORK. On or before December 31, 2023 (subject to force
majeure and the act or omission of any Tenant Party), Landlord, at its sole cost and expense, will update the elevator lobby/common area
corridor on the 12th floor of the Building, the elevator lobby on the 10th floor of the Building, and the restrooms
on the 12th floor of the Building to substantially the same standard as are on the 4th floor of the Building as
of the date of this Amendment.

 

    

     

    

 

EXHIBIT C

 

RIGHT OF FIRST REFUSAL

 

1.             If during the Lease Term any of the space on the 10th or 12th floors of the Building that is contiguous to the Premises is available
for lease and Landlord receives a third party offer covering all of the essential terms (including any proposal to expand or relocate
any current tenant in the Building or Project) (collectively, the “Third Party Terms”) for a lease of any of
such space (the applicable space available for lease being the “First Refusal Space”), which offer Landlord
is willing to accept, then Landlord shall deliver a notice to Tenant (the “First Refusal Notice”) offering to
lease the First Refusal Space to Tenant under the Third Party Terms. As used in this Exhibit C only, the term “available
for lease” means that the First Refusal Space is not then subject to any existing rights of third parties, including rights
of first refusal, expansion rights, extension rights, options to lease, or other rights nor subject to renewal by tenants in the Building
as of (i) with regard to the First Refusal Space identified on Schedule 1, the date of this Amendment, and (ii) with regard
to the First Refusal Space identified on Schedule 2, the date of the Lease. Notwithstanding the foregoing, if the First
Refusal Notice includes space in excess of the First Refusal Space, Tenant must exercise its right hereunder, if at all, as to all of
the space contained in the First Refusal Notice.

 

2.             Tenant may elect to lease the First Refusal Space under the Third-Party Terms by delivering a notice (the “Response
Notice”) to Landlord within 5 business days after the date of the First Refusal Notice. If (i) Landlord does not receive
the Response Notice within the 5 business day period or (ii) in the Response Notice Tenant elects not to lease the First Refusal Space
under the Third-Party Terms, then Tenant is deemed to waive its right to lease the First Refusal Space and Tenant has no further rights
under this Exhibit C with regard to the applicable First Refusal Space. Notwithstanding the foregoing, however, if Landlord
does not then execute a lease for the First Refusal Space with any third party within 120 days of the First Refusal Notice or in the event
that the Landlord changes the economic terms presented in the First Refusal Notice by five (5%) or more in favor of the prospective tenant,
then this Exhibit C, and the parties' rights and obligations hereunder, will be reinstated in their entirety.

 

3.             If Tenant timely delivers a Response Notice electing to lease First Refusal Space under the Third- Party Terms, then Landlord shall
prepare, and Landlord and Tenant shall promptly execute and deliver, an appropriate amendment to the Lease adding the First Refusal Space
to the Premises upon the terms specified in this Exhibit C.

 

4.             Landlord is not obligated to offer the First Refusal Space to Tenant, and Tenant may not exercise its option to lease the First
Refusal Space, if (i) an event of default is then outstanding beyond any applicable notice and cure period, or (ii) Tenant has assigned
the Lease or sublet more than 35% of the Premises except to a Permitted Transferee.

 

5.             Tenant’s rights under this Exhibit shall not apply to leases that allow tenants in the Building to use such space as unfinished
storage area and other temporary leases to provide temporary space to tenants that ultimately will occupy other space in the Building
on a permanent basis, any management space, and other building space/amenities (conference center, fitness center, etc.).

 

    

     

    

 

Schedule 1

 

 

    

     

    

 

Schedule 2

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