Document:

Exhibit

Exhibit 10.2
SEPARATION AGREEMENT AND RELEASE
This Separation Agreement and Release (the “Agreement”) is entered into by Michael H. Port (“Employee”) and Energy Focus, Inc. (“Energy Focus” or the “Company”).  Employee and Energy Focus are collectively referred to in this Agreement as the “Parties.”
In consideration of the promises and agreements contained herein and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and intending to be legally bound, Energy Focus and Employee hereby agree as follows:
1.Employee Resignation and Separation from Employment.  Employee hereby tenders his resignation (a) as Chief Financial Officer and Secretary and from all offices of any entity that is a subsidiary of, or is otherwise related to or affiliated with, the Company, effective as of May 29, 2018, and (b) as an employee of the Company, effective August 15, 2018 (the “Separation Date”). Energy Focus hereby accepts Employee’s resignation, and the parties agree that Employee’s employment with Energy Focus will end on the Separation Date.    
2.    Accrued Unused Vacation Days.  Regardless of whether Employee signs this Agreement, Employee will be paid for actual accrued unused PTO time through the Separation Date, which the Parties estimate will be 176.83 hours and which is equivalent to $21,677.58.  Such payout will be made subject to applicable taxes and withholdings.  Energy Focus will pay Employee this amount on the first regular paydate after the Separation Date.
3.    Severance Pay and Other Consideration.  Subject to, and in consideration of Employee’s execution and non-revocation of this Agreement, and provided that Employee is not in material breach of any of the terms of this Agreement, Energy Focus will provide Employee the following pay and benefits:
(a)    Energy Focus will pay Employee separation pay equal to twelve (12) months of pay at Employee’s regular base salary of $21,250 per month.  These payments amount to a total sum of a total of $255,000, less deductions and withholdings as required by applicable law, and will be made in equal periodic installments corresponding to Energy Focus’s regular biweekly payroll dates (the “Severance Pay Period”).  These payments will not begin until after the Separation Date and after the seven (7) day revocation period described below has expired without any revocation having been made, but the first bi-weekly payment will include make-up payments, without interest, for any bi-weekly pay periods between the Separation Date and the first severance payment.   
(b)    Employee agrees that he will not receive any bonus or cash incentive payment for calendar year 2018.
(c)    If Employee and his dependents were enrolled in the Company’s health plan on the Separation Date, Employee’s and such dependents’ benefits will continue for twelve (12) months from the Separation Date under the federal law known as COBRA for medical, dental and vision benefits; and all other benefits will cease on the Separation Date.   

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

(d)    All outstanding and vested stock options that are vested as of the Separation Date shall remain exercisable for one year following the Separation Date and otherwise as provided under the applicable award agreement and plan but in no event later than the last day of the option term.  With respect to the restricted stock units granted to Employee on February 26, 2018, 7,500 of such units shall vest in full as of the Separation Date.  With respect to Employee’s unvested options and the remainder of his unvested restricted stock units, the portion of any such awards that would otherwise vest within twelve (12) months following the Separation Date shall vest and become exercisable or be settled in shares of common stock, as applicabe, as of the Separation Date.
(e)    Within two (2) weeks after the Separation Date, Employee will file a final expense report with all supporting documentation covering any last expenses incurred on behalf of the Company.  Thereafter, the Company will either (i) reimburse Employee for any pending, reasonable business-related credit card charges for which Employee has not already been reimbursed, or (ii) pay such charge directly to the card-issuing bank.  Such reimbursement will be made no later than thirty (30) days after the final expense reimbursement request has been submitted to the Company.  Employee hereby authorizes the Company to deduct from monies to be paid to Employee under this Agreement any balance remaining on Employee’s Company credit card account after such (i) reimbursement or (ii) direct payment.  Only those expenses incurred by Employee prior to the Separation Date shall be eligible for reimbursement.
(f)    Up to an aggregate of $10,000 for any executive coaching or outplacement services provided to the Employee during the Severance Pay Period shall be paid directly to the provider of these services upon receipt of an invoice of services rendered.
Employee acknowledges that the payment(s) and other consideration provided in this Section 3 are solely in exchange for the promises in this Agreement, and that in the absence of this Agreement, Employee would not otherwise be entitled to this consideration.
4.    No Other Payments.  Other than the payments described in this Agreement, Employee acknowledges and agrees that Employee has not earned, and is not eligible for any other monies, bonuses or other compensation from Energy Focus; provided, however, that Employee remains eligible to receive such benefits as Employee may otherwise be entitled under the qualified retirement plans of Energy Focus, subject to the terms of such plans and the applicable law.  The Parties agree that any Employer contributions or matching for any retirement plan contributions shall cease as of the Separation Date, except that any contributions that have accrued through the Separation Date but have not yet been contributed to such plans shall be contributed in accordance with the plan terms. 
5.    Release.
(a)    Scope of Release.  Employee, both individually and for anyone claiming on Employee’s behalf, releases and discharges Energy Focus, Inc., its predecessors, successors and affiliated entities, and all of their respective directors, trustees, officers, agents, and employees (collectively, the “Released Parties”) from liability for all claims, demands, rights, actions, causes of actions, obligations, suits and controversies, known or unknown, (collectively, “Claims”) arising prior to and up to and including the date Employee signs this Agreement.  This release includes, but is not limited to:  (i) all Claims arising out of or in any way related to Employee’s employment or separation from employment with Energy Focus, including but not limited to any Claim sounding in tort or contract (express or implied), any Claim for 

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

promissory estoppel, emotional distress, pain and suffering, punitive damages, attorneys fees, benefits, wages or any other compensation, wrongful discharge, any violation of public policy, any Claim of discrimination, harassment or retaliation on any basis including, but not limited to age, race, religion, sex, national origin or disability, whether arising under common law or under any federal, state or local law, including, but not limited to, Title VII of the Civil Rights Act of 1964, the Age Discrimination in Employment Act (including as amended by the Older Workers Benefit Protection Act), Ohio Revised Code chapters 4111, 4112, and 4113, the Americans with Disabilities Act, the Family and Medical Leave Act, the New York Executive Law, the New York State Human Rights Law, the New York City Human Rights Law, the New York Labor Law, the New York Equal Pay Law, the New York Civil Rights Law, the New York Rights of Persons With Disabilities Law, the New York Equal Rights Law, the New York City Administrative Code, and any other law relating to employment, and any Claims growing out of any legal restriction on an employer’s right to discharge its employees; and (ii) any and all Claims of any sort arising from events or circumstances occurring prior to and up to and including the date of Employee signs this Agreement.
 (b)     Limitation.  
(i)    The foregoing release does not waive rights or claims that may arise after the date this Agreement is executed or that cannot be waived as a matter of law.  The foregoing release does not waive any rights that Employee may have to continue health or other benefits at Employee’s expense, pursuant to COBRA or applicable state law.  Nothing in any part of this Agreement is intended to, or shall, interfere with Employee’s right to file or otherwise participate in a charge, investigation, or proceeding conducted by the Equal Employment Opportunity Commission or other federal, state, or local government agency.  
(ii)    Employee shall not, however, be entitled to any relief, recovery, or monies in connection with any such matter brought against any of the Released Parties, regardless of who filed or initiated any such charge, investigation, or proceeding.  Employee agrees that Employee will neither seek nor accept, from any source whatsoever, any further benefit, payment, or other consideration relating to any rights or Claims that have been released in this Agreement.  The prohibitions on further recovery in this paragraph 5(b)(ii) shall not apply to any monetary award from a government-administered whistleblower award program for providing information directly to a government agency.
6.    Will Not Seek Re-Employment.  Employee understands and agrees that the employment relationship with Energy Focus will end as of the Separation Date, and Employee agrees not to seek re‐employment with Energy Focus at any time in the future.  If Employee should become re-employed by Energy Focus in the future, this section shall be sufficient grounds to terminate such employment.
7.    Return of Property.  Employee will be provided with access to all files and systems that are provided to Energy Focus’s Controller until the Separation Date. Employee acknowledges that before the Separation Date, or within two days thereafter, Employee will return to Energy Focus any and all Energy Focus property in Employee’s possession.  Such property includes, but is not limited to Energy Focus keys, credit cards, records, files, lists and/or any other materials prepared by Employee or any other Energy Focus employee which relate in any way to Energy Focus.  Employee shall also, by the same deadline, provide to the Chief Executive Officer a list of passwords or access codes to Employee’s work computer and any internal systems or external subscriptions paid for by Energy Focus to which Employee has password-restricted access.

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

8.    No Admission of Liability.  The Parties agree that: (a) this Agreement is a means of amicably resolving any differences relating to Employee’s employment and separation from employment; (b) this Agreement is not intended to be, and should not be construed as, an admission of liability on the part of Energy Focus or Employee; and (c) this Agreement was proposed and entered into solely for the purpose of amicably resolving all issues arising out of Employee’s employment and separation from employment.
9.    Nondisclosure of the Company’s Confidential Information.
(a)    Definitions.
(i)    “Company Business” is the development, production and sale of commercial lighting products. 
(ii)    “Confidential Information” shall mean nonpublic information or material (1) that is proprietary to the Company or its customers, is confidential, or is a trade secret, regardless of whether it is specifically designated or labeled as confidential by and of the Company, or (2) that Employee creates, discovers, develops in whole or in part, or of which Employee obtains knowledge of or access to, as a result of Employee’s relationship with the Company.  Confidential Information generally includes, but is not limited to, designs, works of authorship, mask works, formulas, ideas, concepts, techniques, inventions, devices, improvements, know-how, methods, processes, drawings, specifications, models, data, documentation, diagrams, flow charts, research, developments, procedures, software in various stages of development, source code, object code, marketing techniques and materials, business, marketing, development and product plans, financial information, customer information, strategic information, and other confidential business or technical information.  Confidential Information does not include information which (x) is or becomes publicly available (other than by disclosure or other wrongful act by the Employee), or (y) was known to the Employee before the Employee began employment with the Company.
(b)    Obligation to Protect Confidential Information. Employee recognizes and acknowledges that Confidential Information includes valuable, special and unique assets of the Company.  Subject to the exceptions described below, (i) Employee shall forever protect and maintain the confidentiality of Confidential Information; and (ii) Employee shall never, directly or indirectly, use, publish, post, copy, duplicate, or disclose Confidential Information, or encourage, aid, or abet such activity, except as required in the course of Employee’s job duties at the Company and, then only to individuals who have a need to know based on such individual’s job responsibilities at the Company.
(c)    Exceptions to Section 9(b).  The restrictions in Section 9(b) do not apply to any of the following situations, so long as the Employee takes all reasonable steps to ensure that the scope of disclosure does not exceed the permitted scope and that such disclosure does not extend beyond the parameters of what is permitted:
(i)    Employee may respond to a lawful and valid subpoena or other legal process or court order that seeks the disclosure of Confidential Information but: (1) shall give the Company’s Chief Executive Officer or Chief Financial Officer the earliest possible notice of the receipt thereof; (2) shall, as much in advance of the return date as possible, make available to the Company’s Chief Executive Officer or Chief Financial Officer the documents and other information sought; and (3) shall assist the Company’s legal counsel, at the Company’s expense, in resisting or otherwise responding to such subpoena or process.  

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

(ii)    Employee may disclose Confidential Information to a government agency as part of a report, complaint, or investigation without providing notice to the Company.
(iii)    Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made (1) in confidence to a Federal, State, or local government official, either directly or indirectly, or to an attorney; and (2) solely for the purpose of reporting or investigating a suspected violation of law.   In addition, Employee shall not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret that is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal.  Furthermore, in the event Employee files a lawsuit for retaliation by the Company for reporting a suspected violation of law, Employee may disclose the trade secret to Employee’s attorney and use the trade secret information in the court proceeding, if Employee files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.
10.    Non-Disparagement.  
(a)    Employee will not make any statements or disclose any untrue information concerning Energy Focus, its directors, officers, management, staff, employees, representatives, or agents (collectively, “Energy Focus or its management”), which are likely to disparage Energy Focus or its management, which are likely to damage the reputation or business prospects of Energy Focus or its management, or which are likely to interfere in any way with the business relations Energy Focus has with its customers (including potential customers), suppliers, vendors, employees, investors, or shareholders.  Energy Focus acknowledges that nothing in this Paragraph shall limit Employee from testifying in or otherwise cooperating with any federal, state, or civil action, investigation or inquiry.
(b)    Energy Focus’s executive officers and directors will not make any statements or disclose any untrue information concerning Employee, which are likely to disparage or damage the Employee’s reputation or stature in the business community.  Employee acknowledges that nothing in this Paragraph shall limit Energy Focus or any of its employees or directors from testifying in or otherwise cooperating with any federal, state, or civil action, investigation or inquiry; or from releasing truthful information or making truthful statements.  
11.    Non-Solicitation.  Employee agrees that, for a period of one (1) year after the Separation Date, Employee will not personally, and will not instruct or directly or indirectly assist any other individual or entity to, persuade or encourage, or attempt to persuade or encourage, (a) any producer, manufacturer, licensor, supplier, vendor or any other person providing goods or services to Energy Focus not to conduct business with Energy Focus or to reduce the amount of business it conducts with Energy Focus; (b) any customer or potential customer not to conduct business with Energy Focus or to reduce the amount of business it conducts with Energy Focus; or (c)  any employee of Energy Focus to leave Energy Focus’s employ.  For the purposes hereof, “customer” shall include any prospective customer to whom Energy Focus made a presentation (or similar offering of services) within a period of ninety (90) days immediately preceding the Separation Date.  These restrictions shall be in addition to the restrictions described in the Confidentiality Agreement, including but not limited to Sections G and H, which remain in full force and effect. 
12.    Non-Competition.   

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

(a)    For a period of one (1) year after the Separation Date, Employee shall not:  (i) directly or indirectly act in concert or conspire with any person employed by the Company in order to engage in or prepare to engage in or to have a financial or other interest in any business or any activity that he knows (or reasonably should have known) to be directly competitive either with Company Business as then being carried on or with any business, activity, product or service which was under active development while Employee was employed by the Company if such development was actively pursued or considered during the two (2) year period preceding the Separation Date; or (ii) serve as an employee, agent, partner, shareholder, director, or consultant for, or in any other capacity participate, engage, or have a financial or other interest in any business or any activity that he knows (or reasonably should have known) to be directly competitive either with the Company Business as then being carried on or with any business, activity, product or service which was under active development while Employee was employed by the Company if such development was actively pursued or considered during the two (2) year period preceding the Separation Date (provided, however, that notwithstanding anything to the contrary contained in this Agreement, Employee may own up to two percent (2%) of the outstanding shares of the capital stock of a company whose securities are registered under Section 12 of the Securities Exchange Act of 1934).  
(b)    In the event Employee violates any provision of this Section 12 as to which there is a specific time period during which he is prohibited from taking certain actions or from engaging in certain activities as set forth in such provision, such violation shall toll the running of such time period from the date of such violation until such violation shall cease.  The foregoing shall in no way limit the Company’s rights under Section 15 of this Agreement.
(c)    Employee has carefully considered the nature and extent of the restrictions upon him and the rights and remedies conferred upon the Company under this Section 12 and this Agreement, and hereby acknowledges and agrees that the same are reasonable in time and territory, are designed to eliminate competition which otherwise would be unfair to the Company, do not stifle the inherent skill and experience of Employee, would not operate as a bar to Employee’s sole means of support, are fully required to protect the legitimate interests of the Company and do not confer a benefit upon the Company disproportionate to the detriment to Employee.  Employee further acknowledges that his obligations in this Section 12 are made in consideration of, and are adequately supported by the payments by the Company to Employee described herein. 
13.    Disclosure.  From the date of this Agreement through the end of the applicable restricted period, Employee will communicate the contents of Sections 9, 10, 11 and 12 of this Agreement to any person, firm, association, or corporation which he intends to be employed by, associated in business with, or represent.  
14.    Attorney’s Fees.  Both parties agree to bear their own attorney’s fees and related expenses, if any, in connection with this matter.
15.    Choice of Law and Availability of Injunctive Relief.  This Agreement shall in all respects be interpreted, enforced under, and governed by the laws of the State of Ohio.  Notwithstanding the choice or conflict of law rules of any court or competent jurisdiction, the laws of the State of Ohio should be used to interpret and enforce this Agreement.  Any litigated dispute over this Agreement or any of the matters addressed in this Agreement shall be brought and maintained solely in the Court of Common Pleas for Cuyahoga County, Ohio or in the United States District Court for the Northern District of Ohio.  In addition, in connection with any such court action, Employee acknowledges and agrees that the remedy at law 

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

available to the Company for breach by Executive of any of his obligations under Sections 9, 10, 11 and 12 of this Agreement would be inadequate and that damages flowing from such a breach would not readily be susceptible to being measured in monetary terms. Accordingly, Employee acknowledges, consents and agrees that, in addition to any other rights or remedies which the Company may have at law, in equity or under this Agreement, the Company shall be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach of any provisions in Sections 9, 10, 11 and 12 of this Agreement, without the necessity of proof of actual damage.
16.    Modifications. No provisions of this Agreement may be modified, amended, or terminated, except in a writing signed by Employee and by the Chief Executive Officer of Energy Focus.
17.    Entire Agreement. The only pay, benefit or other consideration for signing this Agreement is described herein. In exchange for signing this Agreement, Employee is being provided consideration to which Employee would not otherwise be entitled.  This Agreement constitutes the complete and final agreement between the Parties, and supersedes any and all prior representations or agreements, whether written or oral; except that the Agreement of Confidentiality (or Agreement of Confidentiality with Non-Compete) previously signed by Employee related to employment and the agreements evidencing equity awards that have vested as of the date hereof or will vest on the Separation Date remain in full force and effect.  No other representations, promises or agreements of any kind have been made by any person or entity to induce Employee to sign this Agreement. Notwithstanding the foregoing, this Agreement will not affect Employee’s rights to indemnification or defense as a former officer and employee of Energy Focus or any of its affiliates under any articles of incorporation, codes of regulations, other charter documents, insurance policies, or other laws to the extent any are applicable.  
18.    Cooperation.  After the Separation Date, Employee agrees to cooperate with the Company, including its representatives and attorneys, to provide information or testimony that may relate to the Company or to matters within the Employee’s knowledge, if called upon by the Company to do so, for purposes related to any lawsuits, proceedings, administrative actions, public filings, or to provide other factual information in preparation or anticipation of any such matter, or to assist with other internal or external Company matters.  Employee shall not receive compensation for providing such cooperation, but if such cooperation is requested by the Company, Employee shall be entitled to reimbursement from the Company for reasonable out-of-pocket expenses that are necessarily and reasonably incurred as a result of providing such cooperation, including for example, airfare, hotel, and related travel expenses, if travel is requested.  If Employee is asked by any person other than the Company (or its representatives or attorneys) to provide information or testimony related to any matter connected to his employment or the Company, Employee agrees to provide advance notice to the Company and to take all reasonable steps to ensure that the Company has an opportunity to respond and/or to participate in such proceedings, except that Employee need not provide advance notice to the Company before participating in any whistleblower investigation/proceeding before a government agency.  If Employee is providing testimony for any reason whatsoever, Employee agrees that he shall give only truthful testimony and shall provide only truthful information, to the best of his knowledge.
19.    Severability.  If for any reason any term or provision set forth herein, or part thereof, containing a restriction on Employee’s activities after the Separation Date is invalid or unenforceable because it is held to cover an area or to be for a length of time or otherwise have a scope that is unreasonable or is otherwise construed to be too broad, such term or provision, or part thereof, shall be reformed and/or modified to 

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

provide for a restriction having the maximum enforceable area, time period and/or other scope (not greater than those contained herein) as shall be valid and enforceable under applicable law.  Otherwise, if any part, term, or provision of this Agreement be determined by any court of competent jurisdiction to be illegal, invalid or unenforceable, the validity of the remaining parts, terms or provisions shall not be affected thereby and the illegal, invalid, or unenforceable part, term, or provision shall be deemed not to be a part of this Agreement; except, however, that if any portion of the Release in Section 5 is determined by a judicial order invalid or unenforceable, then the Company shall have seven days to decide whether (a) to invalidate this entire Agreement, in which case the entire Agreement will be void and Employee will have to pay back all money that he already received under Section 3(a) of this Agreement; or (b) to waive its right to invalidate the Agreement and instead, to keep the Agreement valid and fully enforceable, subject to the changes needed to remove or modify the portion of the Release that was judicially determined to be invalid or unenforceable.
20.    Time to Consider/Advised To Consult Counsel.  Employee is being given a period of at least twenty-one (21) calendar days to consider the terms and conditions of this Agreement before executing it.  The Parties agree that any modifications made to this Agreement, material or otherwise, will not restart and/or affect the running of this 21 day period.  Employee is advised to consult with an attorney of Employee’s choice prior to executing this Agreement.  Employee acknowledges that Employee has carefully read this Agreement, understands the content and effect of this Agreement, and intends to be bound by it.
21.    Time to Revoke/Effective Date.  This Agreement shall become effective seven (7) days after Employee has signed it.  Prior to the expiration of the 7-day period, Employee has the right to revoke this Agreement by delivering written notice of cancellation to the Chairman, Chief Executive Officer and President, Energy Focus, Inc., 32000 Aurora Road, Suite B, Solon, Ohio 44139, in a manner such that the revocation is received before the 7-day period ends.  If Employee does not revoke this Agreement with the 7-day revocation period, this Agreement shall become effective upon the expiration of the revocation period.
22.    Other Representations.  Employee represents and warrants that (a) if Employee has incurred any workplace injury at Energy Focus, Employee has previously reported such injury in writing, and Employee is unaware of any facts that could give rise to any workers compensation claim that has not already been filed, (b) Employee has reported, and has been paid for, all time worked through the date Employee signed this Agreement, with the possible exception of time worked during the last pay period and through the Separation Date, which may not yet have been paid but will be paid to Employee as described above, and (c) Employee has been provided all leave that Employee requested, and Employee is unaware of any facts that would give rise to any claim under the Family Medical Leave Act or any other state or local leave law.  If Employee disagrees with any of the representations in this section, Employee has fully explained all applicable details in writing next to Employee’s signature at the end of this Agreement, attaching additional pages if necessary.
23.    Counterparts. This Agreement may be executed in counterparts, all of which taken together shall constitute an instrument enforceable and binding upon the undersigned parties.
EMPLOYEE ACKNOWLEDGES THAT EMPLOYEE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS THE CONTENT AND CONSEQUENCES OF SIGNING THIS AGREEMENT.  

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877

EMPLOYEE FURTHER ACKNOWLEDGES THAT EMPLOYEE EXECUTES THIS AGREEMENT KNOWINGLY AND VOLUNTARILY WITH THE INTENT TO BE LEGALLY BOUND BY IT.
Having agreed to the foregoing terms of this Agreement, the Parties have executed it on the date indicated below.
	
		
	ENERGY FOCUS, INC.
	EMPLOYEE

By:  /s/ Theodore L. Tewksbury III            /s/ Michael H. Port                
Name: Theodore L. Tewksbury III            Signature
    
Chairman, Chief Executive Officer and President    Michael H. Port                
Title                             Print Name

May 22, 2018                        June 4, 2018                    
Date                            Date

32000 Aurora Road, Solon, OH 44139        •    www.energyfocus.com        •    800.327.7877Exhibit 10.1

 

OFFICE LEASE

 

by and 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.

 

(“Tenant”)

 

Dated as of

 

______________________, 2018

 

     

     

    

 

Office
lease

 

THIS OFFICE LEASE (this
“Lease”) is made between Teachers Insurance and Annuity Association of America, a New York corporation,
for the benefit of the Real Estate Account (“Landlord”), and the Tenant described in Item 1 of the Basic
Lease Provisions.

 

LEASE OF
PREMISES

 

Landlord hereby leases
to Tenant and Tenant hereby leases from Landlord, subject to all of the terms and conditions set forth herein, those certain premises
(the “Premises”) described in Item 3 of the Basic Lease Provisions and as shown in the drawing attached
hereto as Exhibit A-1. The Premises are located in the Building described in Item 2 of the Basic Lease
Provisions. The Building is located on that certain land (the “Land”) more particularly described on Exhibit
A-2 attached hereto, which is also improved with landscaping and other improvements, fixtures and common areas and appurtenances
now or hereafter placed, constructed or erected on the Land (sometimes referred to herein as the “Property”).
The term “Centre” shall mean the Building, the Land, the other office buildings, the parking garages and the
land owned by Landlord located between LBJ Freeway, the Dallas North Tollway, Harvest Hill Lane and Noel Road.

 

BASIC LEASE
PROVISIONS

 

	1.          	Tenant:	Hallmark Financial Services, Inc., a Nevada corporation  (“Tenant”)
	 	 	 
	2.                    	Building:	Two Lincoln Centre

5420 LBJ Freeway

Dallas, Texas 75240
	 	 	 
	3.                    	Description of Premises:	Suites 1010 and 1100 (the “1100 Premises”) and Suite 380 (the “380 Premises”) 
	 	 	 
	 	Rentable Area of Premises:	Approximately 50,172 square feet of Rentable Area; the 1100 Premises contains approximately 47,172 square feet of Rentable Area and the 380 Premises contains approximately 3,000 square feet of Rentable Area
	 	 	 
	 	Rentable Area of Building:	Approximately 612,462 square feet (subject to Paragraph 18)
	 	 	 
	4.                    	Tenant’s Proportionate Share:	7.70% (47,172 rsf / 612,462 rsf) (See Paragraph 3) (Tenant’s Proportionate Share is calculated based on the number of square feet of Rentable Area in the 1100 Premises only)
	 	 	 
	5.                    	Base Rent:	(See Paragraph 2)

	1100 Premises

	Lease Months	Annual Base Rent/RSF	Monthly Base Rent
	1 – 24	$31.00	$121,861.00*
	25 – 36	$31.50	$123,826.50
	37 – 48	$32.00	$125,792.00
	49 – 60	$32.50	$127,757.50
	61 – 72	$33.00	$129,723.00
	73 – 84	$33.50	$131,688.50
	85 – 96	$34.00	$133,654.00
	97 – 108	$34.50	$135,619.50
	109 – 120	$35.00	$137,585.00
	121 – 132	$35.50	$139,550.50
	133 – 144	$36.00	$141,516.00
	145 – 156	$36.50	$143,481.50

 

    	 	1	 

     

    

 

	*Base Rent for the 1100 Premises during Lease Months 1 through 12 will be conditionally abated in accordance with Paragraph 20(ff).
	380 Premises

	Lease Months	Annual Base Rent/RSF	Monthly Base Rent
	1 – 60	$17.00	$4,250.00*
	61 – 72	$17.25	$4,312.50
	73 – 84	$17.50	$4,375.00
	85 – 96	$17.75	$4,437.50
	97 – 108	$18.00	$4,500.00
	109 – 120	$18.25	$4,562.50
	121 – 132	$18.50	$4,625.00
	133 – 144	$18.75	$4,687.50
	145 – 156	$19.00	$4,750.00

	*Base Rent for the 380 Premises during Lease Months 1 through 48 will be conditionally abated in accordance with Paragraph 20(ff).

	6. 	Base Rent Installment Payable

Upon Execution:	$126,111.00
	 	 	 
	7.                    	Security Deposit

Payable Upon Execution:	$148,231.50, in cash  (See Paragraph 2(c))
	 	 	 
	8.                    	Base Year for Operating Expenses:	Calendar year 2019 (See Paragraph 3)
	 	 	 
	9.                    	Initial Term:	One hundred fifty-six (156) Lease Months, commencing on the Commencement Date and ending on the last day of the 156th Lease Month.  The term "Lease Month" means each calendar month during the Term (and if the Commencement Date does not occur on the first day of a calendar month, the period from the Commencement Date to the first day of the next calendar month shall be included in the first Lease Month for which Base Rent is payable.  (See Paragraph 1)
	 	 	 
	10.                 	Commencement Date:	June 1, 2019
	 	 	 
	11.                 	Expiration Date:	May 31, 2032
	 	 	 
	12.                 	Broker(s) (See Paragraph 19(k)):	 
	 	 	 
	 	Landlord’s Broker:	Cushman & Wakefield of Texas, Inc.
	 	 	 
	 	Tenant’s Broker:	CBRE, Inc.

 

    	 	2	 

     

    

 

	13. 	Number of Parking Spaces:	Two hundred fifty-one (251) 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 twelve (12) 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 twenty-five (25) 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 Initial 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).  
	 	 	 
	14.                 	Addresses for Notices:	 
	 	 	 
	 	To:  TENANT:

Prior to occupancy of the Premises:

Hallmark Financial Services, Inc.

777 Main Street, Suite 1000

Fort Worth, TX 76102                         Attn: Jeff Passmore, Senior Vice President & Chief Accounting Officer	
        To: LANDLORD:

        

        Property Management Office:

        

        Teachers Insurance and Annuity Association of

        America for the benefit of the Real Estate Account

        Attn: Property Manager

        5430 LBJ Freeway, Suite 200

        Dallas, Texas 75240

         

        With copy to:

         

        Cushman & Wakefield of Texas, Inc. 

        2101 Cedar Springs, Suite 900

        Dallas, TX  75201

        Attn: Senior Managing Director, D/FW Lead, Investor Services

         

         

         

	 	 	 
	 	
        After occupancy of the Premises:

        

        Hallmark Financial Services, Inc.

        777 Main Street, Suite 1000

        Fort Worth, TX 76102 

        Attn: Jeff Passmore,
        Senior Vice President & Chief Accounting Officer
	With respect to any default notice, a copy must be sent on the same date and by the same method as sent to Landlord to:

Munsch Hardt Kopf & Harr, P.C.

Attn:  Ian M. Fairchild 

3800 Lincoln Plaza

500 N. Akard Street

Dallas, Texas   75201-6659

 

    	 	3	 

     

    

 

	15. 	Address for Payment of Rent:	
        All payments payable under this Lease shall
        be sent to Landlord at:

         

        TIAA-CREF Lincoln Centre #6239 Collection

        P. O. Box 840029

        Dallas, Texas 75284

        or to such other address as Landlord may
        designate in writing.

         

	 	 	 
	16.                 	Guarantor:	None
	 	 	 
	17.                 	Tenant Improvement Allowance:	Up to $3,386,610.00 (See Exhibit B)
	 	 	 
	18.                 	The “State” is the state, commonwealth, district or jurisdiction in which the Building is located.	 

 

This Lease consists of the foregoing introductory
paragraphs and Basic Lease Provisions, the provisions of the Standard Lease Provisions (the “Standard Lease Provisions”)
(consisting of Paragraph 1 through Paragraph 20 which follow) and the following exhibits and addenda, all
of which are incorporated herein by this reference:

 

	Exhibit A-1	Floor Plan of the Premises
	Exhibit A-2	Legal Description of the Property
	Exhibit B-1	Landlord Work Letter
	Exhibit B-2	Tenant Work Letter
	Exhibit C	Building Rules and Regulations
	Exhibit D	Form Tenant Estoppel Certificate
	Exhibit E	Tenant’s Commencement Letter
	Exhibit F	Renewal Option
	Exhibit G	Right of First Refusal
	Exhibit H	Reduction Option
	Exhibit I	Termination Option
	Exhibit J	Signage
	Exhibit K	Rooftop Rights
	Exhibit L	Temporary Space

 

In the event of any conflict between the
provisions of the Basic Lease Provisions and the provisions of the Standard Lease Provisions, the Standard Lease Provisions shall
control.

 

    	 	4	 

     

    

 

STANDARD
LEASE PROVISIONS

 

1.                  
TERM; REMEASUREMENT; BENEFICIAL OCCUPANCY

 

(a)                
The Initial Term of this Lease and the Rent (defined below) shall commence on June 1, 2019 (the “Commencement
Date”). Unless earlier terminated in accordance with the provisions hereof, the Initial Term of this Lease shall be the
period shown in Item 9 of the Basic Lease Provisions. As used herein, “Lease Term” shall mean the Initial
Term referred to in Item 9 of the Basic Lease Provisions, subject to any extension of the Initial Term hereof exercised
in accordance with the terms and conditions expressly set forth herein (the “Expiration Date”). Unless Landlord
is terminating this Lease prior to the Expiration Date in accordance with the provisions hereof, Landlord shall not be required
to provide notice to Tenant of the Expiration Date. This Lease shall be a binding contractual obligation effective upon execution
hereof by Landlord and Tenant, notwithstanding the later commencement of the Initial Term of this Lease.

 

(b)               
The Premises will be delivered to Tenant when the Turnover Work has been Substantially Completed, such date being the “Possession
Date”. Landlord estimates that the Possession Date will occur on or before November 1, 2018 (the “Estimated
Possession Date”). If the Possession Date is delayed or otherwise does not occur on the Estimated Possession Date, this
Lease shall not be void or voidable, nor shall Landlord be liable to Tenant for any loss or damage resulting therefrom; however,
(i) if the Possession Date does not occur on or before November 1, 2018 for any reason other than force majeure or Tenant Delays,
the Commencement Date shall be delayed one day for each day that the Possession Date does not occur, and (ii) if the Possession
Date occurs on or after December 1, 2018, the Commencement Date shall be delayed two days for each day following December 1, 2018
that the Possession Date does not occur. The terms “Turnover Work” and “Substantial Completion”
or “Substantially Completed” are defined in the attached Exhibit B-1 Landlord Work Letter. “Tenant
Delays” consist of those delays defined in Exhibit B-1.

 

(c)                
Within ten (10) days following Landlord’s written request therefor, Landlord shall prepare and deliver to Tenant,
Tenant’s Commencement Letter in the form of Exhibit E attached hereto (the “Commencement Letter”),
which Tenant shall acknowledge by executing a copy and returning it to Landlord. If Tenant fails to sign and return the Commencement
Letter to Landlord within ten (10) days of its receipt from Landlord, the Commencement Letter as sent by Landlord shall be deemed
to have correctly set forth the Commencement Date and the other matters addressed in the Commencement Letter. Failure of Landlord
to send the Commencement Letter shall have no effect on the Commencement Date.

 

(d)               
Landlord and Tenant stipulate and agree that the square feet of Rentable Area in the Premises and Building are correct and
shall not be remeasured; provided, within thirty (30) days following substantial completion of the Turnover Work, the Premises
shall be measured, at Landlord’s cost, by an engineer or architect reasonably satisfactory to both parties using the Standard
Method for Measuring Floor Area in Office Buildings, ANSI/BOMA Z65.1-2010, Method B (the “BOMA Method”), and
Tenant shall be entitled, at Tenant’s cost, to verify such measurements using the BOMA Method prior to commencement of the
Tenant Finish Work (defined on Exhibit B-2). The area stipulated herein shall be fully applicable and binding on
the parties until after such time as the required measurement is effected, following which event the new measurements, if they
differ from those herein set forth, shall be applicable. In addition, if additional space is added to the Premises during the Lease
Term, such additional space shall be measured in accordance with the BOMA methodology then used by Landlord.

 

(e)                
Tenant may occupy the Premises sixty (60) days prior to the Commencement Date for the purpose of installing Tenant’s
furniture, fixtures, and equipment in the Premises (“Early Possession Period”). Tenant’s occupancy of
the Premises during the Early Possession Period will be subject to all of Tenant’s obligations under this Lease (except that
Tenant will not be obligated to pay Base Rent, Tenant’s Proportionate Share of Electrical Costs, or Tenant’s Proportionate
Share of Operating Expenses during such early occupancy). In addition, Tenant may occupy the Premises thirty (30) days prior to
the Commencement Date for the purpose of conducting business therefrom (“Beneficial Occupancy Period”). Tenant’s
occupancy of the Premises during the Beneficial Occupancy Period will be subject to all of Tenant’s obligations under this
Lease, including Tenant’s obligation to pay Tenant’s Proportionate Share of Electrical Costs (except that Tenant will
not be obligated to pay Base Rent or Tenant’s Proportionate Share of Operating Expenses during such early occupancy). Tenant
shall provide Landlord with copies of certificates of insurance, complying in all respects with the terms of this Lease for all
insurance required to be provided hereunder prior to entering the Premises. Tenant hereby releases and discharges Landlord,
its contractors, agents, employees and manager from and against any and all claims of loss, damage or injury to persons or property,
including without limitation any product inventory, which is alleged to have occurred during the Early Possession Period or the
Beneficial Occupancy Period. Landlord makes no representation or warranty about safety of the Premises during the Early Possession
Period or the Beneficial Occupancy Period, as construction and other activities will be ongoing.

 

    	 	5	 

     

    

 

2.                  
BASE RENT AND SECURITY DEPOSIT

 

(a)                
Tenant agrees to pay during each month of the Lease Term as Base Rent (“Base Rent”) for the Premises
the sums shown for such periods in Item 5 of the Basic Lease Provisions.

 

(b)               
Except as expressly provided to the contrary herein, Base Rent shall be payable in consecutive monthly installments, in
advance, without demand, deduction or offset, commencing on the Commencement Date and continuing on the first day of each Lease
Month thereafter until the expiration of the Lease Term. The first full monthly installment of Base Rent shall be payable upon
Tenant’s execution of this Lease and applied, with regard to the 1100 Premises, to Base Rent for Lease Month 13, and, with
regard to the 380 Premises, to Base Rent for Lease Month 49. The obligation of Tenant to pay Rent and other sums to Landlord and
the obligations of Landlord under this Lease are independent obligations. If the Commencement Date is a day other than the first
day of a calendar month, or the Lease Term expires on a day other than the last day of a calendar month, then the Rent for such
partial month shall be calculated on a per diem basis. In the event Landlord delivers possession of the Premises to Tenant prior
to the Commencement Date, Tenant agrees it shall be bound by and subject to all terms, covenants, conditions and obligations of
this Lease during the period between the date possession is delivered and the Commencement Date, other than the payment of Base
Rent, in the same manner as if delivery had occurred on the Commencement Date.

 

(c)                
Within five (5) business days after Landlord’s delivery of the fully executed Lease, Tenant has paid or will pay Landlord
the security deposit (the “Security Deposit”) in Item 7 of the Basic Lease Provisions as security for
the performance of the provisions hereof by Tenant, if applicable. Landlord shall not be required to keep the Security Deposit
separate from its general funds and Tenant shall not be entitled to interest thereon.

 

If an event of default
occurs that is not cured within any applicable notice and cure period, including, without limitation, the provisions relating to
the payment of Rent or the cleaning and restoration of the Premises upon the termination of this Lease, or amounts which Landlord
may be entitled to recover pursuant to the terms hereof, Landlord may, but shall not be required to, use, apply or retain all or
any part of the Security Deposit (i) for the payment of any Rent or any other sum in default, (ii) for the payment of
any other amount which Landlord may spend or become obligated to spend by reason of Tenant’s event of default hereunder,
or (iii) to compensate Landlord for any other loss or damage which Landlord may suffer by reason of Tenant’s event of
default hereunder, including, without limitation, costs and reasonable attorneys’ fees incurred by Landlord to recover possession
of the Premises following an event of default by Tenant hereunder. The use or application of the Security Deposit or any portion
thereof shall not prevent Landlord from exercising any other right or remedy provided hereunder or under any Law and shall not
be construed as liquidated damages. Notwithstanding anything in this Lease or under Texas law to the contrary, Tenant hereby waives
Section 93.004 - 93.011 of the Texas Property Code as such sections of the Texas Property Code relate to the Security Deposit under
this Lease.

 

If any portion of the
Security Deposit is so used or applied, Tenant shall, within ten (10) business days after demand therefor, deposit cash with Landlord
in an amount sufficient to restore the Security Deposit to the appropriate amount, as determined hereunder. If Tenant shall fully
perform every provision of this Lease to be performed by it, the Security Deposit or any balance thereof shall be returned to Tenant
(or, at Landlord’s option, to the last assignee of Tenant’s interest hereunder) within thirty (30) days following the
expiration of the Lease Term; provided, however, that Landlord may retain the Security Deposit until such time as any amount due
from Tenant in accordance with Paragraph 3 below has been determined and paid to Landlord in full. Tenant also waives
all provisions of law, now or hereafter in force, which provide that Landlord may claim from a security deposit only those sums
reasonably necessary to remedy defaults in the payment of rent, to repair damage caused by Tenant or to clean and restore the Premises,
it being agreed that Landlord may, in addition, claim those sums reasonably necessary to compensate Landlord for any other loss
or damage, foreseeable or unforeseeable, caused by the act or omission of Tenant or any Tenant Affiliates (as defined in Paragraph
6(g)(i) below).

 

    	 	6	 

     

    

 

(d)               
The parties agree that for all purposes hereunder the Premises shall be stipulated to contain the number of square feet
of Rentable Area described in Item 3 of the Basic Lease Provisions. Upon the request of Landlord during any extension or
renewal of the Initial Term, Landlord’s space planner shall verify the exact number of square feet of Rentable Area in the
Premises. If during any extension or renewal of the Initial Term there is a variation from the number of square feet specified
in Item 3 of the Basic Lease Provisions, Landlord and Tenant shall execute an amendment to this Lease for the purpose of
making appropriate adjustments to the Base Rent, the Security Deposit, Tenant’s Proportionate Share and such other provisions
hereof as shall be appropriate under the circumstances.

 

3.                  
ADDITIONAL RENT

 

(a)                
If Operating Expenses (defined below) for any calendar year during the Lease Term exceed Base Operating Expenses (defined
below), Tenant shall pay to Landlord as additional rent (“Additional Rent”) an amount equal to Tenant’s
Proportionate Share (defined below) of such excess. 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).

 

(b)               
“Tenant’s Proportionate Share” is, subject to the provisions of Paragraph 19, the percentage
number described in Item 4 of the Basic Lease Provisions. Tenant’s Proportionate Share represents, subject to the
provisions of Paragraph 19, a fraction, the numerator of which is the number of square feet of Rentable Area in the
Premises and the denominator of which is the number of square feet of Rentable Area for lease to third parties in the Building,
as determined by Landlord pursuant to Paragraph 19.

 

(c)                
“Base Operating Expenses” means all Operating Expenses incurred or payable by Landlord during the calendar
year specified as Tenant’s Base Year in Item 8 of the Basic Lease Provisions.

 

(d)               
“Operating Expenses” means all costs, expenses and obligations incurred or payable by Landlord in connection
with the operation, ownership, management, repair or maintenance of the Property plus all operating expenses of the Exterior Common
Areas (defined below), exclusive of Electrical Costs (defined below) during or allocable to the Lease Term, including without limitation,
the following:

 

(i)                 
All real property taxes, assessments, license fees, excises, levies, charges, assessments, both general and special assessments,
or impositions and other similar governmental ad valorem or other charges (including the franchise tax set forth in V.T.C.A. Tax
Code Section 171.0001 et seq., as the same may be amended or recodified from time to time) levied on or attributable to the Property
or its ownership, operation or transfer, and all taxes, charges, assessments or similar impositions imposed in lieu of the same
(collectively, “Real Estate Taxes”). If Real Estate Taxes are not assessed separately for the Centre, but rather
are assessed as part of a larger parcel owned by Landlord, Landlord will apportion Real Estate Taxes to the Centre based on the
assessed value of the Centre as a percentage of the assessed value of the entire tax parcel. Margin taxes will be included in the
Base Year. The amount of margin taxes included in the Operating Expenses in any year will not exceed Landlord’s gross margin
tax obligation for such year multiplied by a percentage, the numerator of which is Landlord’s gross revenue from the Centre
in such year and the denominator of which is Landlord’s gross revenue from all sources. Real Estate Taxes shall also include
all taxes, assessments, license fees, excises, levies, charges or similar impositions imposed by any governmental agency, district,
authority or political subdivision (A) on any interest of Landlord, any mortgagee of Landlord or any interest of Tenant in
the Property, the Premises, or on the occupancy or use of space in the Property or the Premises; (B) for the provision of
amenities, services or rights of use, whether or not exclusive, public, quasi-public or otherwise made available on a shared use
basis, including amenities, services or rights of use such as fire protection, police protection, street, sidewalk, lighting, sewer
or road maintenance, refuse removal or janitorial services or for any other service, without regard to whether such services were
formerly provided by governmental or quasi-governmental agencies to property owners or occupants at no cost or at minimal cost;
and (C) related to any transportation plan, fund or system instituted within the geographic area of the Centre or otherwise
applicable to the Premises, the Property, the Centre or any portion thereof. Real Estate Taxes shall also include for any year,
the amount of all fees, costs and expenses (including reasonable attorneys’ fees) paid by Landlord during such year in seeking
or obtaining any refund or reduction of Real Estate Taxes. Real Estate Taxes shall expressly include any tax, assessment or similar
charge on the rents or profits from the Premises or Building levied against Landlord and/or the Property in lieu of other real
estate taxes on the Property or otherwise as a result of property tax reform in the State of Texas, but shall not otherwise include
any estate, inheritance, successor, transfer, gift, corporation or income tax imposed by the State or federal government on Landlord.

 

    	 	7	 

     

    

 

(ii)               
The cost of services and utilities other than Electrical Costs (including taxes and other charges incurred in connection
therewith) provided to the Premises, the Property or the Centre, including, without limitation, water, gas, sewer, waste disposal,
telephone and cable television facilities, fuel, supplies, equipment, tools, materials, service contracts, janitorial services,
waste and refuse disposal, window cleaning, maintenance and repair of services areas, gardening and landscaping; insurance, including,
but not limited to, public liability, fire, property damage, wind, hurricane, terrorism, rental loss, rent continuation, boiler
machinery, business interruption, contractual indemnification and All Risk or Causes of Loss  Special Form coverage insurance
for up to the full replacement cost of the Property and such other insurance as is customarily carried by operators of other similar
Class-A office buildings in the Lower Tollway submarket, to the extent carried by Landlord in its reasonable discretion, and the
deductible portion of any insured loss otherwise covered by such insurance; the cost of compensation, including employment, welfare
and social security taxes, paid vacation days, disability, pension, medical and other fringe benefits of all persons (including
independent contractors) who directly perform services connected with the operation, maintenance, repair or replacement of the
Property; any association assessments, costs, dues and/or expenses relating to the Property, personal property taxes on and maintenance
and repair of equipment and other personal property directly used in connection with the operation, maintenance or repair of the
Property; repair and replacement of window coverings provided by Landlord in the premises of tenants in the Property; such reasonable
auditors’ fees and legal fees as are incurred in connection with the operation, maintenance or repair of the Property; a
property management fee (which fee may be imputed if Landlord has internalized management or otherwise acts as its own property
manager) (not to exceed three percent (3%) of the gross revenues of the Centre); the maintenance of any easements or ground leases
benefiting the Property, whether by Landlord or by an independent contractor; a reasonable allowance for depreciation of personal
property used in the operation, maintenance or repair of the Property; license, permit and inspection fees; all costs and expenses
required by any governmental or quasi-governmental authority or by applicable law, for any reason, including capital improvements,
whether capitalized or not, and the cost of any capital improvements made to the Property by Landlord that improve life-safety
systems or reduce operating expenses, such costs to be amortized over the useful life thereof as determined in accordance with
GAAP (hereinafter defined), and the costs to replace items which Landlord would be obligated to maintain under the Lease (such
costs to be amortized over the useful life thereof as determined in accordance with GAAP), together with interest thereon at the
rate of eight percent per annum or such higher rate as may have been paid by Landlord on funds borrowed for the purpose of funding
such improvements); the cost of air conditioning, heating, ventilating, plumbing, elevator maintenance and repair (to include the
replacement of components) and other mechanical and electrical systems repair and maintenance; sign maintenance; and Common Area
(defined below) repair, operation and maintenance; the reasonable cost for temporary lobby displays and events commensurate with
the operation of a similar class building, and the cost of providing security services, if any, reasonably deemed appropriate by
Landlord.

 

(iii)             
As used herein, the term “Exterior Common Areas” means that portion of the Property (and other tracts
of real property comprising the Centre) which are not located within the Building (or other building in the Centre) and which are
provided and maintained for the common use and benefit of Landlord and tenants of the Building (or the Centre) generally and the
employees, invitees and licensees of Landlord and such tenants; including without limitation, all parking areas (enclosed or otherwise)
and all streets, sidewalks, walkways, and landscaped areas.

 

(iv)              
The following items shall be excluded from Operating Expenses:

 

(A)              
Promotional expenditures, leasing commissions, attorneys’ fees, costs and disbursements and other expenses incurred
in connection with marketing and leasing space in the Property, resolving disputes with present or past tenants in Building, renovating
or improving vacant space in the Property for tenants or prospective tenants of the Property;

 

    	 	8	 

     

    

 

(B)              
costs (including permit, license and inspection fees) incurred in renovating or otherwise improving or decorating, painting
or redecorating space for tenants or vacant space;

 

(C)              
Landlord’s costs of any services sold to tenants for which Landlord is entitled to be reimbursed by such tenants as
an additional charge or rental over and above the Base Rent and Operating Expenses payable under the lease with such tenant or
other occupant;

 

(D)              
any depreciation or amortization of the Property except as expressly permitted herein;

 

(E)               
costs incurred due to a violation of Law (defined below) by Landlord or Landlord’s employees, agents, contractors
or invitees or a violation of any terms of a lease by Landlord or another tenant relating to the Property;

 

(F)               
interest on debt or amortization payments on any mortgages or deeds of trust or any other debt for borrowed money and rental
under any ground or underlying lease or leases;

 

(G)              
all items and services for which Tenant or other tenants reimburse Landlord outside of Operating Expenses;

 

(H)              
repairs or other work occasioned by fire, windstorm or other work paid for through insurance or condemnation proceeds (excluding
any deductible);

 

(I)                 
expenditures for capital improvements, capital alterations or replacements, capital equipment, and capital tools, except
for amortization of the cost, together with interest at the actual rate paid by Landlord, of furnishing and installing capital
investment items that are: (i) primarily for the purpose of reducing Operating Expenses or avoiding increases in Operating Expenses
(provided Landlord reasonably estimates at the time of installing or furnishing the capital investment item that the reduction
in, or avoidance of, Operating Expenses resulting from the capital investment item will equal or exceed the amortization cost of
the capital item); or (ii) required by applicable Laws not in effect or applicable to the Centre on the date of this Lease. All
such costs will be amortized over the useful life of the capital investment items with the useful life and amortization schedule
being determined in accordance with general accepted accounting principles, consistently applied (“GAAP”), not
to exceed ten (10) years;

 

(J)                
legal expenses incurred for (i) negotiating lease terms for prospective tenants, (ii) negotiating termination
or extension of leases with existing tenants, (iii) proceedings against any other specific tenant relating solely to the collection
of rent or other sums due to Landlord from such tenant, or (iv) the development and/or construction of the Property;

 

(K)              
repairs directly resulting from any defect in the original design or construction of the Property;

 

(L)               
Specific costs billed to and to be paid by specific tenants (other than Tenant);

 

(M)             
Repairs or other work occasioned by fire, windstorm, or other casualty of an insurable nature or by exercise of the right
of eminent domain;

 

(N)              
Expenses in connection with services or other benefits of a type which are not provided Tenant but which are provided to
another tenant or occupant;

 

(O)              
Overhead and profit increment paid to subsidiaries or affiliates of Landlord for services on or to the Property, to the
extent only that the costs of such services exceed competitive costs of such services were they not so rendered by a subsidiary
or affiliate;

 

    	 	9	 

     

    

(P)        Any
compensation paid to clerks, attendants, or other persons in commercial concessions operated by Landlord;

(Q)        Costs
of sculpture, paintings, or works of art;

(R)        Costs
of correcting structural and other defects in the construction of the Building (including, without limitation, latent defects)
or in the Centre equipment;

(S)        Wages,
salaries, or other compensation of any kind or nature paid to any executive employees above grade of property manager;

(T)       
Rentals and other related expenses incurred in leasing air conditioning systems, elevators, or other equipment ordinarily
considered to be of a capital nature, except equipment which is used in providing janitorial services and which is not
affixed to the Building;
 

(U)        State,
local, or federal personal or corporate income taxes measured by the income of Landlord from all sources or from sources other
than rent alone, estate and inheritance taxes, succession and transfer taxes and interest on taxes and penalties resulting from
failure to pay Real Estate Taxes. Further, the amount of tax expenses paid by Tenant and attributable to tenant improvements, or
tax expenses in connection with other alterations, additions, substitutions, and improvements done by or for the tenants or directly
received by Landlord from such other tenants;

(V)        Expenses
and costs relating in a way whatsoever to the identification, testing, monitoring, control, encapsulation, removal, replacement,
repair and abatement of asbestos, polychlorinated biphenyl’s or any other Hazardous Material within, under, on or otherwise
part of the Centre, except to the extent brought into the Centre by Tenant or Tenant’s employees, agents, contractors or
invitees;

(W)        Landlord’s
insurance for personal property which is not located in the Centre nor exclusively used in connection therewith;

(X)        Costs,
including permit, license, and inspection costs, incurred with respect to the installation of leasehold improvements made for new
tenants in the Building or incurred in renovating or otherwise improving, decorating, painting, or redecorating space leased by
or available for leasing to other tenants or occupants of the Building;

(Y)
       Landlord’s general corporate overhead and administrative (including travel
and entertainment) expenses not relating to the Centre management;
 

(Z)        The
purchase and installation costs of signs in or on the Centre identifying the owner of the Centre or any tenant of the Centre, except
the main directory;

(AA)          
Electric power costs for
which any tenant directly contracts (by separate meter or otherwise) with the local public service company;

(BB)          
Tax and/or assessment penalties and interest and late charges incurred as a result of Landlord’s negligence or inability
or unwillingness or failure for any reason to make such payments when due;

 

(CC)          
All costs and expenses incurred in connection with or relating to any retail space in the Centre to the extent there is
a direct charge for such costs and expenses to such retail space tenants;

 

(DD)         
Any reserve for operating costs until funds are actually disbursed from such reserve for payment of actual operating costs
and not for bad debt or uncollected rent;

 

(EE)           
All costs incurred in connection with the sale, financing, refinancing, mortgaging or other change in ownership or interest
in the Centre or any portion thereof;

 

    	 	10	 

     

    

 

(FF)           
Landlord’s or Centre’s charitable or political contributions;

 

(GG)         
Costs incurred as a result of Landlord’s or its employees’, agents, contractors’ or invitees’ gross
negligence or willful misconduct;

 

(HH)         
Legal, accounting, consulting or other services fees or expenses other than those which benefit the Centre tenants generally,
such as Real Estate Tax disputes;

 

(II)            
All expenses related to the defense of Landlord’s title to the Centre or any portion thereof;

 

(JJ)       
    Any cost which would entity Landlord to a “double recovery” of any other costs for which
Landlord is directly reimbursed;

 

(KK)        
Any
flowers, balloons or other gifts provided to any entity including, without limitation, Tenant;

 

(LL)          
Any entertainment, travel,
dining or other expenses for any purpose;

 

(MM)       
Costs of any magazine, newspaper, trade, association or other subscription or membership, other than the Centre’s
annual membership dues in the local Building Owners and Managers Association;

 

 (NN)         
Costs to relocate any tenants; and

 

(OO)          Any
rental, imputed rental or associated expenses for any management office space that exceeds 2,500 rentable square feet.

 

(e)                
Operating Expenses for any calendar year during which actual occupancy of the Property is less than ninety-five percent
(95%) of the Rentable Area of the Property shall be appropriately adjusted to reflect ninety-five percent (95%) occupancy of the
existing Rentable Area of the Property during such period. In determining Operating Expenses, if any services or utilities are
separately charged to tenants of the Property or others, Operating Expenses shall be adjusted by Landlord to reflect the amount
of expense which would have been incurred for such services or utilities on a full time basis for normal Property operating hours.
Operating Expenses for the Tenant’s Base Year for Operating Expenses (as defined in Item 8 of the Basic Lease Provisions)
shall not include Operating Expenses attributable to temporary market-wide labor-rate increases and/or utility rate increases due
to extraordinary circumstances, including, but not limited to Force Majeure, conservation surcharges, boycotts, embargoes, or other
shortages. In the event (i) the Commencement Date shall be a date other than January 1, (ii) the date fixed for
the expiration of the Lease Term shall be a date other than December 31, (iii) of any early termination of this Lease,
or (iv) of any increase or decrease in the size of the Premises, then in each such event, an appropriate adjustment in the
application of this Paragraph 3 shall, subject to the provisions of this Lease, be made to reflect such event on a
basis determined by Landlord to be consistent with the principles underlying the provisions of this Paragraph 3. In
addition, Landlord shall have the right, from time to time, to equitably allocate and prorate some or all of the Operating Expenses
among different tenants and/or different buildings of the Centre and/or on a building-by-building basis (the “Cost Pools”),
adjusting Tenant’s Proportionate Share as to each of the separately allocated costs based on the ratio of the Rentable Area
of the Premises to the Rentable Area of all of the premises to which such costs are allocated. Notwithstanding the foregoing provisions
of this Paragraph 3, Landlord will not require Tenant to pay Operating Expenses for the 380 Premises.

 

(f)                 
The term “Electrical Costs” shall mean the aggregate cost of electricity to the Building reduced by the
cost of any extraordinary electrical use by other tenants of the Building where such costs are charged to such tenants. The calculation
of Electrical Costs is based on Standard Building Capacity (defined in Section 7(a)(viii). Landlord may from time to time deliver
to Tenant an invoice for such pro rata share of Electrical Costs and Tenant shall make payment of such amount to Landlord within
three (3) days of delivery of the invoice. Landlord, from time to time, shall also have the option to make a good faith estimate
of Tenant’s pro rata share of the Electrical Costs for each upcoming year and, upon thirty (30) days’ written notice
to Tenant, may require the monthly payment of Base Rent to be adjusted in accordance with such estimate. Any amounts paid based
on such an estimate shall be subject to adjustment as hereafter provided in Paragraph 3(g) (applied to Electrical Costs)
when actual Electrical Costs are available for such year. Within a reasonable period after the end of each calendar year, Landlord
shall furnish Tenant a statement indicating in reasonable detail the Electrical Costs for such period and the parties shall, within
thirty (30) days thereafter, make any payment or allowance necessary to adjust Tenant’s estimated payments to Tenant’s
actual share of such excess as indicated by such annual statement. Any payment due Landlord shall be payable by Tenant within thirty
(30) days of written notice from Landlord. Any amount due Tenant shall be credited against installments next becoming due under
this Paragraph 3(f) or refunded to Tenant, if requested by Tenant.

 

    	 	11	 

     

    

 

(g)               
Prior to the commencement of each calendar year of the Lease Term following the Commencement Date, Landlord shall have the
right to give to Tenant a written estimate of Tenant’s Proportionate Share of excess Operating Expenses, if any, for the
Property for the ensuing year. Tenant shall pay such estimated amount to Landlord in equal monthly installments, in advance on
the first day of each month. Landlord may adjust its estimate by notice to Tenant at any time during the applicable calendar year
if actual Operating Expenses are substantially different from the estimate, and thereafter payments by Tenant under this subparagraph 3(g)
adjust accordingly. Within a reasonable period after the end of each calendar year, Landlord shall deliver to Tenant a statement
indicating in reasonable detail the actual excess Operating Expenses for the prior calendar year. If the estimated payments made
by Tenant during the prior calendar year exceed Tenant’s Proportionate Share of actual excess Operating Expenses for that
year, Landlord shall credit the difference against the next ensuing installments of estimated payments by Tenant hereunder. If
the estimated payments made by Tenant during the prior calendar year are less than Tenant’s Proportionate Share of actual
excess Operating Expenses for that year, Tenant shall pay, as Additional Rent, the amount of the difference to Landlord in cash
within thirty (30) days after delivery of any invoice therefor by Landlord accompanied by a statement of the actual excess Operating
Expenses for that year. Tenant’s obligation to pay Tenant’s pro rata share of the excess Operating Expenses survives
the termination or expiration of this Lease.

 

(h)               
All capital levies or other taxes assessed or imposed on Landlord upon the rents payable to Landlord under this Lease and
any excise, transaction, sales or privilege tax, assessment, levy or charge measured by or based, in whole or in part, upon such
rents from the Premises and/or the Property or any portion thereof shall be paid by Tenant to Landlord monthly in estimated installments
or upon demand, at the option of Landlord, as additional rent to be allocated to monthly Operating Expenses.

 

(i)                 
Tenant shall pay ten (10) days before delinquency, all taxes and assessments (i) levied against any personal property,
Alterations, tenant improvements or trade fixtures of Tenant in or about the Premises, (ii) based upon this Lease or any document
to which Tenant is a party creating or transferring an interest in this Lease or an estate in all or any portion of the Premises,
and (iii) levied for any business, professional, or occupational license fees. If any such taxes or assessments are levied
against Landlord or Landlord’s property or if the assessed value of the Property is increased by the inclusion therein of
a value placed upon such personal property or trade fixtures, Tenant shall upon demand reimburse Landlord for the taxes and assessments
so levied against Landlord, or such taxes, levies and assessments resulting from such increase in assessed value. To the extent
that any such taxes are not separately assessed or billed to Tenant, Tenant shall pay the amount thereof as invoiced to Tenant
by Landlord.

 

(j)                 
Any delay or failure of Landlord in (i) delivering any estimate or statement described in this Paragraph 3,
or (ii) computing or billing Tenant’s Proportionate Share of excess Operating Expenses or Electrical Costs shall not
constitute a waiver of its right to require an increase in Rent, or in any way impair the continuing obligations of Tenant under
this Paragraph 3. Tenant, an officer of Tenant or Tenant's certified public accountant (but (a) in no event shall Tenant
hire or employ an accounting firm or any other person to audit Landlord as set forth under this Paragraph who is compensated or
paid for such audit on a contingency basis and (b) if Tenant hires or employs an independent party to perform such audit,
then upon request of Landlord, Tenant shall provide Landlord with a copy of the engagement letter [which may be redacted as to
the hourly rate being charged] or a certified statement by the party performing the audit that such audit is not being performed
on a contingency basis) shall have the right after reasonable notice and at reasonable times to inspect Landlord's accounting records
at Landlord's office. Within fifteen (15) business days of Tenant’s written notice to Landlord of its desire to review Landlord’s
books and records, Landlord shall make available to Tenant a full and complete copy of the Building’s general ledger, and
all escalation worksheets and their supporting documentation for the applicable calendar year. If, after the review of such documentation,
Tenant desires additional information of Landlord’s books and records including but not limited to, invoices paid by Landlord
or service contracts, Landlord shall reasonably cooperate with Tenant.  Tenant, Tenant’s employees and agents, may make
and retain photo copies of such records provided that Tenant keeps such copies confidential and does not show or distribute such
copies to any other tenants in the Building. The auditor's report reflecting the results of Tenant's audit shall be delivered to
Landlord following the completion thereof. If the Tenant's audit reveals an overstatement of Tenant's Proportionate Share of the
excess Operating Expenses or Electrical Costs by more than five percent (5%) in the aggregate for the calendar year in question,
then Landlord will promptly reimburse Tenant for all reasonable and actual out-of-pocket costs incurred by Tenant in connection
with Tenant's audit, up to $5,000; otherwise, Tenant shall be solely responsible for the payment of all costs of Tenant's audit
unless Landlord delivers written notice of Landlord's dispute of the results of Tenant's audit within 30 days following the conclusion
thereof. If Landlord timely delivers notice of a dispute of the results of Tenant's audit, then Landlord may elect to conduct a
certification as to the proper amount of excess Operating Expenses and Electrical Costs and the amount due to or payable by Tenant,
which certification shall be made by an independent certified public accountant mutually agreed to by Landlord and Tenant. If Landlord
and Tenant cannot mutually agree to an independent certified public accountant, then the parties agree that Landlord shall choose
an independent certified public accountant to conduct the certification as to the proper amount of Tenant's Proportionate Share
of excess Operating Expenses and Electrical Costs due by Tenant for the period in question; provided, however, such certified public
accountant shall not be the accountant who conducted Landlord's initial calculation of excess Operating Expenses and Electrical
Costs to which Tenant is now objecting or affiliated with or employed by the same accounting firm as such accountant. Such certification
shall be final and conclusive as to all parties ("Final Certification"). If the Final Certification reveals an
overstatement of Tenant's Proportionate Share of the excess Operating Expenses or Electrical Costs by more than five percent (5%)
in the aggregate for the calendar year in question, then Landlord shall promptly reimburse Tenant for all reasonable and actual
out-of-pocket costs incurred by Tenant in connection with Tenant's initial audit as provided above; otherwise, Tenant shall be
solely responsible for the payment of all costs of Tenant's initial audit. If the Final Certification reflects that Tenant's Proportionate
Share of excess Operating Expenses and Electrical Costs were overcharged or undercharged in the audited calendar year, then Tenant
shall pay to Landlord the amount of any underpayment or, if applicable, Landlord shall pay to Tenant the amount of any overpayment,
in each case payment shall be made within thirty (30) days after receipt of Tenant's audit report. Tenant waives the right to dispute
any matter relating to the calculation of excess Operating Expenses, Electrical Costs, or other Additional Rent under this Paragraph 3
if any claim or dispute is not asserted in writing to Landlord within one hundred eighty (180) days after delivery to Tenant of
the reconciliation statement with respect to excess Operating Expenses and Electrical Costs. Notwithstanding the preceding sentence,
if the Final Certification for any calendar year reveals that Tenant's Proportionate Share of excess Operating Expenses and Electrical
Costs were overstated for such calendar year in excess of five percent (5%) and Tenant did not conduct an audit during the previous
calendar year, then Tenant may conduct an audit of Landlord's accounting records for the previous calendar year (only), by providing
at least thirty (30) days’ notice to Landlord; such audit shall be subject to the terms of this Paragraph 3(j). In
no event may any review or audit by Tenant cover periods before the Commencement Date. Notwithstanding the foregoing, Tenant shall
maintain strict confidentiality of all of Landlord's accounting records and shall not disclose the same to any other person or
entity except for Tenant's professional advisory representatives (such as Tenant's employees, accountants, advisors, attorneys
and consultants) with a need to know such accounting information, who agree to similarly maintain the confidentiality of such financial
information.

 

    	 	12	 

     

    

 

(k)               
Even though the Lease Term has expired and Tenant has vacated the Premises, when the final determination, provided that
it is made within three hundred sixty five (365) days after the end of the current calendar year, is made of Tenant’s Proportionate
Share of excess Operating Expenses and Electrical Costs for the year in which this Lease terminates, Tenant shall immediately pay
any increase due over the estimated Operating Expenses and Electrical Costs paid, and conversely, any overpayment made by Tenant
shall be promptly refunded to Tenant by Landlord.

 

(l)                 
Landlord and Tenant agree that each provision of this Lease for determining charges, amounts, and Additional Rent payments
by Tenant is commercially reasonable, and as to each such charge or amount, constitutes a “method by which the charge is
to be computed” for purposes of Section 93.012 (Assessment of Charges) of the Texas Property Code, as such section now exists
or as it may be hereafter amended or succeeded.

 

(m)              
The Base Rent, Additional Rent, late fees, and other amounts required to be paid by Tenant to Landlord hereunder (including
the excess Operating Expenses) are sometimes collectively referred to as, and shall constitute, “Rent”.

 

(n)               
For purposes of determining Tenant’s Proportionate Share of excess Operating Expenses, Controllable Operating Expenses
(defined below) for any calendar year will be deemed not to increase over the amount of Controllable Operating Expenses during
the Base Year by more than 5% per year, on a cumulative, compounding basis. The term “Controllable Operating Expenses”
means all Operating Expenses except costs and expenses for taxes, insurance, and utilities, costs to Landlord resulting from compliance
with applicable Laws not in effect or applicable to the Property as of the Commencement Date, any increases in expenses resulting
from government-mandated wage increases, and any other cost outside the reasonable control of Landlord.

 

(o)               
Tenant’s obligation to pay Tenant’s Proportionate Share of Operating Expenses during the first twelve (12) Lease
Months of the Initial Term shall be conditionally abated in accordance with Paragraph 20(ff).

 

4.                  
IMPROVEMENTS AND ALTERATIONS

 

(a)                
Except as otherwise provided in this Lease, Landlord shall deliver the Premises to Tenant, and Tenant agrees to accept the
Premises from Landlord in its existing “AS-IS”, “WHERE-IS” and “WITH ALL FAULTS” condition,
and Landlord shall have no obligation to refurbish or otherwise improve the Premises throughout the Lease Term; provided, however,
and notwithstanding the foregoing to the contrary, Landlord’s sole construction obligation under this Lease is set forth
in the Landlord Work Letter attached hereto as Exhibit B-1.

 

(b)               
Any alterations, additions, or improvements made by or on behalf of Tenant to the Premises (“Alterations”)
shall be subject to Landlord’s prior written consent, except that no consent is required for any interior, non-structural
Alteration(s) that costs less than $50,000, that does not affect Building systems and does not require issuance of any governmental
permit. Landlord’s consent shall not be unreasonably withheld, conditioned or delayed with respect to proposed Alterations
requiring Landlord's consent, that (i) comply with all applicable laws, ordinances, rules and regulations; (ii) are compatible
with the Building and its mechanical, electrical, HVAC and life safety systems; (iii) will not interfere with the use and
occupancy of any other portion of the Building by any other tenant or their invitees; (iv) do not affect the structural portions
of the Building; and, (v) do not and will not, whether alone or taken together with other improvements, require the construction
of any other improvements or alterations within the Building. Tenant shall cause, at its sole cost and expense, all Alterations
to comply with insurance requirements and with Laws and shall construct, at its sole cost and expense, any alteration or modification
required by Laws as a result of any Alterations, except as otherwise expressly provided for herein. Except as otherwise provided
for herein, all Alterations shall be constructed at Tenant’s sole cost and expense, in a first class and good and workmanlike
manner by contractors reasonably acceptable to Landlord and only good grades of materials shall be used. All plans and specifications
for any Alterations shall be submitted to Landlord for its approval in accordance with the terms of this subsection (b). If Landlord
fails to respond to Tenant's request for approval of the plans and specifications within ten (10) business days following (i) Tenant's
written request therefor, and (ii) Landlord's receipt of Tenant's plans and specifications for any Alterations, then Tenant shall
provide Landlord written notice of such failure. Landlord’s time period to respond with regard to any revisions to such plans
and specifications shall be reduced to five (5) business day, unless Landlord requires that such plans be reviewed by a third party
(e.g., the Building engineer), in which event such review period shall remain ten (10) business days. In no event will Landlord's
failure to respond to Tenant's request for approval be deemed to approve any Alterations. Landlord does not require Tenant to use
union labor. Landlord may monitor construction of the Alterations. Landlord is not obligated to monitor such construction, but
may for its own benefit. There shall be no fee, mark-up, or any other charges by Landlord, direct or indirect, in connection with
the Tenant Finish Work or Alterations during the Lease Term, except that, with respect to Alterations, Tenant shall reimburse Landlord
for its actual and reasonable third (3rd) party out-of-pocket costs incurred by Landlord in connection with its review of Tenant’s
plans and specifications.  Tenant has no obligation to utilize Landlord for construction management services nor any obligation
to pay a fee to Landlord for construction management services throughout the Lease Term provided Tenant holds the construction
contract and performs the Tenant Finish Work and Alterations in accordance with Landlord’s rules and regulations. Tenant
shall not be responsible for any additional Building charges including but not limited to, freight elevator usage during normal
Building hours, operator’s cost unless coordination is needed, loading dock fees during the Building’s normal dock
operating hours, security guard charges unless needed, utility charges or any tap-in charges for connecting supplemental air conditioning
or sprinklers that are required during construction of the Premises, in connection with Tenant’s construction or move-in,
or in connection with the construction of Alterations. Landlord’s right to review plans and specifications and to monitor
construction shall be solely for its own benefit, and Landlord shall have no duty to see that such plans and specifications or
construction comply with applicable laws, codes, rules and regulations. Landlord may require that all life safety related work
and all mechanical, electrical, plumbing and roof related work be performed by contractors designated by Landlord. Landlord shall
have the right, in its sole discretion, to instruct Tenant to remove those improvements or Alterations from the Premises which
(i) were not approved in advance by Landlord, (ii) were not built in conformance with the plans and specifications approved
by Landlord, or (iii) were specified in writing for removal by Landlord at the time of its approval. In addition, Landlord will
not obligate Tenant to remove its phone or data cabling. Unless communicated in writing by Landlord at time of its approval, Tenant
shall not be required to remove special-use improvements in the Premises, which include without limitation, any supplemental HVAC
units exclusively serving the Premises, UPS systems, and generators. Alterations not required to be removed will, at expiration
of this Lease, become the property of Landlord. If upon the termination of this Lease Landlord requires Tenant to remove any or
all of such Alterations from the Premises, then Tenant, at Tenant’s sole cost and expense, shall promptly remove such Alterations
and improvements and Tenant shall repair and restore the Premises to its original condition as of the Commencement Date, reasonable
wear and tear and damages caused by casualty, condemnation or Landlord or its employees’, agents’, or contractors’
gross negligence or willful misconduct excepted. Tenant shall provide Landlord with the identities and mailing addresses of all
persons performing work or supplying materials, prior to beginning such construction, and Landlord may post on and about the Premises
notices of non-responsibility pursuant to applicable law. Tenant shall assure payment for the completion of all work free and clear
of liens and shall provide certificates of insurance for worker’s compensation and other coverage in amounts and from an
insurance company reasonably satisfactory to Landlord protecting Landlord against liability for bodily injury or property damage
during construction. Upon completion of any Alterations and upon Landlord’s reasonable request, Tenant shall deliver to Landlord
sworn statements setting forth the names of all contractors and subcontractors who did work on the Alterations and final lien waivers
from all such contractors and subcontractors. Additionally, upon completion of any Alteration, Tenant shall provide Landlord, at
Tenant’s expense, with a complete set of plans in reproducible form and specifications reflecting the actual conditions of
the Alterations, together with a copy of such plans on diskette in the AutoCAD format or such other format as may then be in common
use for computer assisted design purposes. Tenant shall pay to Landlord, as additional rent, the reasonable, out-of-pocket costs
of Landlord’s engineers and other consultants for review of all plans, specifications and working drawings for the Alterations
and for the incorporation of such Alterations in the Landlord’s master Building drawings, within ten (10) business days after
Tenant’s receipt of invoices either from Landlord or such consultants.

 

    	 	13	 

     

    

 

(c)                
Tenant shall keep the Premises, the Building and the Property free from any and all liens arising out of any Alterations,
work performed, materials furnished, or obligations incurred by or for Tenant, except to the extent that such work was performed
or materials furnished on Landlord’s or Landlord’s employees, contractors or agents behalf. In the event that Tenant
shall not, within twenty (20) days following the imposition of any such lien, cause the same to be released of record by payment
or posting of a bond in a form and issued by a surety reasonably acceptable to Landlord, Landlord shall have the right, but not
the obligation, to cause such lien to be released by such means as it shall reasonably deem proper (including payment of or defense
against the claim giving rise to such lien); in such case, Tenant shall reimburse Landlord for all amounts so paid by Landlord
in connection therewith, together with all of Landlord’s out-of-pocket costs and expenses, with interest thereon at the Default
Rate (defined below) and Tenant shall indemnify and defend each and all of the Landlord Indemnitees (defined below) against any
damages, losses or costs arising out of any such claim. Tenant’s indemnification of Landlord contained in this Paragraph
shall survive the expiration or earlier termination of this Lease. Such rights of Landlord shall be in addition to all other remedies
provided herein or by law.

 

(d)               
NOTICE IS HEREBY GIVEN THAT LANDLORD SHALL NOT BE LIABLE FOR ANY LABOR, SERVICES OR MATERIALS FURNISHED OR TO BE FURNISHED
TO TENANT, OR TO ANYONE HOLDING THE PREMISES THROUGH OR UNDER TENANT, AND THAT NO MECHANICS’ OR OTHER LIENS FOR ANY SUCH
LABOR, SERVICES OR MATERIALS SHALL ATTACH TO OR AFFECT THE INTEREST OF LANDLORD IN THE PREMISES, THE BUILDING OR THE PROPERTY.

 

5.                  
REPAIRS

 

(a)                
Landlord’s obligation with respect to repair as part of Basic Services shall be limited to (i) the structural
portions of the Building, (ii) the exterior walls of the Building, including, without limitation, glass and glazing, (iii) the
roof, (iv) mechanical, electrical, plumbing and life safety systems [except for any lavatory, shower, toilet, wash basin and
kitchen facilities that serve Tenant exclusively and any supplemental heating and air conditioning systems (including all plumbing
connected to said facilities or systems)], (v) Common Areas, and (vi) exterior and structural portions and the mechanical
and utility systems and equipment of the Building and Centre (which do not solely serve one tenant’s space). Landlord shall
maintain the same in good condition and repair. Landlord shall not be deemed to have breached any obligation with respect to the
condition of any part of the Property unless Tenant has given to Landlord written notice of any required repair and Landlord has
not made such repair within a reasonable time following the receipt by Landlord of such notice. The foregoing notwithstanding:
(i) Landlord shall not be required to repair damage to any of the foregoing to the extent caused by the acts or omissions
of Tenant or it agents, employees or contractors, except to the extent covered by insurance carried by Landlord; and (ii) the
obligations of Landlord pertaining to damage or destruction by casualty shall be governed by the provisions of Paragraph 9.
Landlord shall have the right but not the obligation to undertake work of repair that Tenant is required to perform under this
Lease and that Tenant fails or refuses to perform in a timely and efficient manner. All costs incurred by Landlord in performing
any such repair for the account of Tenant shall be repaid by Tenant to Landlord upon demand, together with an administration fee
equal to ten percent (10%) of such costs. Except as expressly provided in Paragraph 9 of this Lease, there shall be
no abatement of Rent and no liability of Landlord by reason of any injury to or interference with Tenant’s business arising
from the making of any repairs, alterations or improvements in or to any portion of the Premises, the Building or the Centre. Tenant
waives the right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect.

 

    	 	14	 

     

    

 

(b)               
Tenant, at its expense, (i) shall keep the Premises and all fixtures contained therein in a safe, clean and neat condition,
and (ii) shall bear the cost of maintenance and repair, by contractors approved by Landlord, of all facilities which are not
expressly required to be maintained or repaired by Landlord and which are located in the Premises, including, without limitation,
lavatory, shower, toilet, wash basin and kitchen facilities, and supplemental heating and air conditioning systems (including all
plumbing connected to said facilities or systems installed by or on behalf of Tenant or existing in the Premises at the time of
Landlord’s delivery of the Premises to Tenant). Tenant shall make all repairs to the Premises not required to be made by
Landlord under subparagraph (a) above with replacements of any materials to be made by use of materials of equal or
better quality. Tenant shall do all decorating, remodeling, alteration and painting required by Tenant during the Lease Term. Tenant
shall pay for the cost of any repairs to the Premises, the Building or the Centre made necessary by any gross negligence or willful
misconduct of Tenant or any of its assignees, subtenants, employees or their respective agents, representatives, or contractors,
except to the extent caused in whole or in part by or the result of LL’s or LL’s employees’, agents’ or
contractors’ gross negligence. If Tenant fails to make such repairs or replacements within fifteen (15) days after written
notice from Landlord, Landlord may at its option make such repairs or replacements, and Tenant shall within thirty (30) days after
written demand pay Landlord for the cost thereof, together with an administration fee equal to ten percent (10%) of such costs.

 

(c)                
Upon the expiration or earlier termination of this Lease, Tenant shall surrender the Premises in a safe, clean and neat
condition, normal wear and tear and damages caused by casualty, condemnation or Landlord or its employees’, agents’,
or contractors’ gross negligence or willful misconduct excepted. Except as otherwise set forth in Paragraph 4(b)
of this Lease, Tenant shall remove from the Premises any trade fixtures, furnishings and other personal property of Tenant. Tenant
may remove above Building-standard fixtures installed by Tenant to serve the Premises, such as any raised floor system, UPS Systems,
backup generators, and supplemental HVAC units, or any other fixtures or equipment necessary to operate Tenant’s business.
If Tenant makes such election, then Tenant shall repair all damage caused by such removal. In addition to all other rights Landlord
may have, in the event Tenant does not so remove any such fixtures, furnishings or personal property, Tenant shall be deemed to
have abandoned the same, in which case Landlord may store or dispose of the same at Tenant’s expense, appropriate the same
for itself, and/or sell the same in its discretion.

 

6.                  
USE OF PREMISES

 

(a)                
Tenant shall use the Premises only for general, administrative and executive offices, all uses ancillary to general office
uses, including a conference center, printing center, seminar/training rooms, and pantry and food service areas (but limited to
Tenant’s by employees only), and all other lawful ancillary uses incidental thereto, and shall not use the Premises or permit
the Premises to be used for any other purpose. Landlord shall have the right to deny its consent to any change in the permitted
use of the Premises in its sole and absolute discretion. Landlord represents that, as of the date of this Lease, it is the fee
simple owner of the Centre.

 

    	 	15	 

     

    

 

(b)               
Tenant shall not at any time use or occupy the Premises, or permit any act or omission in or about the Premises in violation
of any law, statute, ordinance or any governmental rule, regulation or order (collectively, “Law” or “Laws”)
and Tenant shall, upon written notice from Landlord, discontinue any unique use of the Premises which is declared by any governmental
authority to be a violation of Law. If any Law shall, by reason of the nature of Tenant’s use or occupancy of the Premises,
impose any duty upon Tenant or Landlord with respect to (i) modification or other maintenance of the Premises, the Building
or the Centre, or (ii) the use, Alteration or occupancy thereof, Tenant shall comply with such Law at Tenant’s sole
cost and expense. Landlord represents to Tenant that, as of the date of this Lease, the Building is in material compliance with
the provisions of the Americans With Disabilities Act of 1990 (as amended) (the "ADA") and the Texas Architectural
Barriers Act (as amended) [Tex. Rev. Civ. Stat. Ann. Art. 9102 ] (the "TABA"); if, subsequent to the date of this
Lease, the Building is not in compliance with the ADA or the TABA for any reason other than Tenant's particular use of the Premises,
any Alteration performed by or at the request of Tenant (including the Tenant Finish Work), or as the result of any act or omission
by a Tenant Party, Landlord will remedy such default at no expense to Tenant. This Lease shall be subject to and Tenant shall comply
with all financing documents encumbering the Building or the Centre and all covenants, conditions and restrictions affecting the
Premises, the Building or the Centre, including, but not limited to, Tenant’s execution of any subordination agreements requested
by a mortgagee (which for purposes of this Lease includes any lender or grantee under a deed of trust) of the Premises, the Building
or the Property.

 

(c)                
Tenant shall not at any time use or occupy the Premises in violation of the certificates of occupancy issued for or restrictive
covenants pertaining to the Building or the Premises, and in the event that any architectural control committee or department of
the state or the city or county in which the Centre is located shall at any time contend or declare that the Premises are used
or occupied in violation of such certificate or certificates of occupancy or restrictive covenants, Tenant shall, upon five (5)
days’ notice from Landlord or any such governmental agency, immediately discontinue such use of the Premises (and otherwise
promptly commence remedying such violation). The failure by Tenant to discontinue such use within any applicable notice and cure
period shall be considered an event of default under this Lease and Landlord shall have the right to exercise any and all rights
and remedies provided herein or by Law. Any statement in this Lease of the nature of the business to be conducted by Tenant in
the Premises shall not be deemed or construed to constitute a representation or guaranty by Landlord that such business is or will
continue to be lawful or permissible under any certificate of occupancy issued for the Building or the Premises, or otherwise permitted
by Law.

 

(d)               
Tenant shall not do or permit to be done anything which may invalidate or increase the cost of any fire, All Risk, Causes
of Loss – Special Form or other insurance policy covering the Building, the Property and/or property located therein and
shall comply with all rules, orders, regulations and requirements of the appropriate fire codes and ordinances or any other organization
performing a similar function. In addition to all other remedies of Landlord, Landlord may require Tenant, within thirty (30) days
after written demand, to reimburse Landlord for the full amount of any additional premiums charged for such policy or policies
by reason of Tenant’s failure to comply with the provisions of this Paragraph 6.

 

(e)                
Tenant shall not in any way unreasonably interfere with the rights or quiet enjoyment of other tenants or occupants of the
Premises, the Building or the Centre. Tenant shall not use or allow the Premises to be used for any improper, immoral, unlawful
or objectionable purpose, nor shall Tenant cause, maintain, or permit any nuisance in, on or about the Premises, the Building or
the Centre. Tenant shall not place weight upon any portion of the Premises exceeding the structural floor load (per square foot
of area) which such area was designated (and is permitted by Law) to carry or otherwise use any Building system in excess of its
capacity or in any other manner which may damage such system or the Building. Tenant shall not create within the Premises a working
environment with a density of greater than the lesser of (i) five (5) persons per 1,000 square feet of Rentable Area, or (ii) the
maximum density permitted by Law. Business machines and mechanical equipment shall be placed and maintained by Tenant, at Tenant’s
expense, in locations and in settings sufficient in Landlord’s reasonable judgment to absorb and prevent vibration, noise
and annoyance. Tenant shall not commit or suffer to be committed any waste in, on, upon or about the Premises, the Building, the
Property or the Centre.

 

(f)                 
Tenant shall take all reasonable steps necessary to adequately secure the Premises from unlawful intrusion, theft, fire
and other hazards, and shall keep and maintain any and all security devices in or on the Premises in good working order, including,
but not limited to, exterior door locks for the Premises and smoke detectors and burglar alarms located within the Premises and
shall reasonably cooperate with Landlord and other tenants in the Building and the Centre with respect to access control and other
safety matters.

 

    	 	16	 

     

    

 

(g)               
As used herein, the term “Hazardous Material” means any (a) oil or any other petroleum-based substance,
flammable substances, explosives, radioactive materials, hazardous wastes or substances, toxic wastes or substances or any other
wastes, materials or pollutants which (i) pose a hazard to the Property or the Centre or to persons on or about the Property
or the Centre or (ii) cause the Property or the Centre to be in violation of any Laws; (b) asbestos in any form, urea formaldehyde
foam insulation, transformers or other equipment that contain dielectric fluid containing levels of polychlorinated biphenyls,
or radon gas; (c) chemical, material or substance defined as or included in the definition of “hazardous substances”,
“hazardous wastes”, “hazardous materials”, “extremely hazardous waste”, “restricted hazardous
waste”, or “toxic substances” or words of similar import under any applicable local, state or federal law or
under the regulations adopted or publications promulgated pursuant thereto, including, but not limited to, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §9601, et seq.; the Hazardous Materials Transportation
Act, as amended, 49 U.S.C. §1801, et seq.; the Federal Water Pollution Control Act, as amended, 33 U.S.C. §1251, et seq.;
the Resource Conservation and Recovery Act, as amended, 42 U.S.C. §6901, et seq.; the Safe Drinking Water Act, as amended,
42 U.S.C. §300, et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. §2601, et seq.; the Federal Hazardous
Substances Control Act, as amended, 15 U.S.C. §1261, et seq.; and the Occupational Safety and Health Act, as amended, 29 U.S.C.
§651, et seq.; (d) other chemical, material or substance, exposure to which is prohibited, limited or regulated by any governmental
authority or may or could pose a hazard to the health and safety of the occupants of the Property or the Centre or the owners and/or
occupants of property adjacent to or surrounding the Centre, or any other Person coming upon the Centre or adjacent property; and
(e) other chemicals, materials or substances which may or could pose a hazard to the environment. The term “Permitted
Hazardous Materials” shall mean Hazardous Materials which are contained in ordinary office supplies of a type and in
quantities typically used in the ordinary course of business within executive offices of similar size in the comparable office
buildings, but only if and to the extent that such supplies are transported, stored and used in full compliance with all applicable
laws, ordinances, orders, rules and regulations and otherwise in a safe and prudent manner. Hazardous Materials which are contained
in ordinary office supplies but which are transported, stored and used in a manner which is not in full compliance with all applicable
laws, ordinances, orders, rules and regulations or which is not in any respect safe and prudent shall not be deemed to be “Permitted
Hazardous Materials” for the purposes of this Lease. If Hazardous Materials in violation of Laws, friable asbestos or PCBs
are discovered in the Premises while Tenant is performing the Tenant Finish Work, Landlord will remove such Hazardous Materials,
asbestos and/or PCBs and remediate in accordance with applicable Laws at Landlord's expense and not as an Operating Expense or
as a cost applied against the Allowance (defined in Exhibit B-2). To Landlord’s current actual knowledge, without
independent investigation or inquiry, Landlord has not received written notice from any applicable governmental authority that
the Premises or the Centre are in violation of any applicable Law related to Hazardous Materials. Landlord represents and warrants
that, as of the date of this Lease, it has no knowledge of any Hazardous Materials in, on or under the Centre which are in violation
of applicable Laws.

 

(h)               
Tenant, its assignees, subtenants, and their respective agents, servants, employees, representatives and contractors (collectively
referred to herein as “Tenant Affiliates”) shall not cause or permit any Hazardous Material to be brought upon,
kept or used in or about the Premises by Tenant or by Tenant Affiliates without the prior written consent of Landlord (which may
be granted, conditioned or withheld in the sole discretion of Landlord), save and except only for Permitted Hazardous Materials,
which Tenant or Tenant Affiliates may bring, store and use in reasonable quantities for their intended use in the Premises, but
only in full compliance with all applicable laws, ordinances, orders, rules and regulations. On or before the expiration or earlier
termination of this Lease, Tenant shall remove from the Premises all Hazardous Materials (including, without limitation, Permitted
Hazardous Materials), regardless of whether such Hazardous Materials are present in concentrations which require removal under
applicable laws, except to the extent that such Hazardous Materials were present in the Premises as of the Commencement Date and
were not brought onto the Premises by Tenant or Tenant Affiliates.

 

(i)                 
Except to the extent caused by or the result of Landlord’s or Landlord’s employees’, agents’, or
contractors’ gross negligence or willful misconduct, Tenant agrees to indemnify, defend and hold Landlord and its Affiliates
(defined below) harmless for, from and against any and all claims, actions, administrative proceedings (including informal proceedings),
judgments, damages, punitive damages, penalties, fines, costs, liabilities, interest or losses, including reasonable attorneys’
fees and expenses, court costs, consultant fees, and expert fees, together with all other costs and expenses of any kind or nature
that arise during or after the Lease Term directly or indirectly from or in connection with the presence, suspected presence, or
release of any Hazardous Material in or into the air, soil, surface water or groundwater at, on, about, under or within the Premises,
or any portion thereof caused by Tenant or Tenant Affiliates. Landlord waives any claims that it may have against Tenant related
to any Hazardous Materials in, on or under the Premises and the Centre prior to the date of this Lease. Landlord waives any claims
that it may have against Tenant related to any Hazardous Materials in, on or under the Premises and the Centre prior to the date
of this Lease to the extent the same is not located at the Premises or the Centre due to the act or omission of Tenant or any Tenant
Affiliate.

 

    	 	17	 

     

    

 

(j)                 
In the event any investigation or monitoring of site conditions or any clean-up, containment, restoration, removal or other
remedial work (collectively, the “Remedial Work”) is required under any applicable federal, state or local Law,
by any judicial order, or by any governmental entity as the result of operations or activities upon, or any use or occupancy of
any portion of the Premises by Tenant or Tenant Affiliates, Landlord shall perform or cause to be performed the Remedial Work in
compliance with such Law or order at Tenant’s sole cost and expense. All Remedial Work shall be performed by one or more
contractors, selected and approved by Landlord, which approval shall not be unreasonably withheld, conditioned or delayed and under
the supervision of a consulting engineer, selected by Tenant and approved in advance in writing by Landlord. All costs and expenses
of such Remedial Work shall be paid by Tenant, including, without limitation, the charges of such contractor(s), the consulting
engineer, and Landlord’s reasonable attorneys’ fees and costs incurred in connection with monitoring or review of such
Remedial Work.

 

(k)               
Each of the covenants and agreements of Tenant set forth in this Paragraph 6(g) shall survive the expiration
or earlier termination of this Lease.

 

7.                  
UTILITIES AND SERVICES

 

(a)                
Landlord shall furnish, or cause to be furnished to the Premises, the utilities and services described in this Paragraph 7(a)
(collectively the “Basic Services”):

 

(i)                 
Tepid water at those points of supply provided for general use of other tenants in the Building;

 

(ii)               
During Business Hours, Monday through Friday, and Saturday during Business Hours, central heat and air conditioning in season,
at such temperatures and in such amounts as are considered standard for comparable Class-A office buildings in the Lower Tollway
submarket or as may be permitted or controlled by applicable laws, ordinances, rules and regulations;

 

(iii)             
Maintenance, repairs, structural and exterior maintenance (including, without limitation, exterior glass and glazing), painting
and electric lighting service for all Common Areas of the Building in the manner and to the extent standard for comparable Class-A
office buildings in the Lower Tollway submarket, subject to the limitation contained in Paragraph 5(a) above;

 

(iv)              
Janitorial service on a five (5) day week basis, excluding Holidays (provided, following the written request of Tenant,
Landlord shall cause such services to be performed after 8 p.m. on weekdays, excluding Holidays);

 

(v)               
Electrical Services as follows:

 

(A)              
Landlord will provide the necessary facilities to supply (i) two (2) watts per square foot of usable area within the Premises,
at 277 volts, for Tenant's fluorescent lighting and (ii) four (4) watts per square foot of usable area within the Premises, at
120 volts, for Tenant's receptacle/equipment loads (excluding Tenant's dedicated circuits). Collectively, Tenant's lighting and
receptacle/equipment shall not have an electrical design load greater than an average of six (6) watts per square foot of usable
area within the Premises ("Standard Building Capacity").

 

    	 	18	 

     

    

 

(B)              
The electrical facilities in the Building available for Tenant's use are (i) 277/480 volts, 3 phase, for large equipment
loads and fluorescent lighting; and (ii) 120/208 volts, 3 phase, for small equipment loads and incandescent lighting. Tenant shall
notify Landlord, in writing, of any equipment that has a rated electrical load greater than 500 watts and/or that requires a service
voltage other than 120 volts, and Landlord's written approval shall be required with respect to the installation of any such high
electrical consumption equipment in the Premises.

 

(vi)              
All Building standard fluorescent bulb replacement for Building standard fixtures in the Premises and fluorescent and incandescent
bulb replacement in the Common Areas.

 

(vii)            
Public elevator service on a 24/7 basis, 365 days per year (provided that Landlord may reasonably limit the number of operating
elevators during non-Building Hours) and a freight elevator serving the floors on which the Premises are situated, during Building
Hours and other reasonable hours designated by Landlord.

 

(b)               
Landlord shall provide to Tenant at Tenant’s sole cost and expense (and subject to the limitations hereinafter set
forth) the following extra services (collectively the “Extra Services”):

 

(i)                 
Such extra cleaning and janitorial services requested by Tenant, and agreed to by Landlord, for special improvements or
Alterations;

 

(ii)               
Subject to Paragraph 7(d) below, additional air conditioning and ventilating capacity required by reason of any electrical,
data processing or other equipment or facilities or services required to support the same, in excess of that typically provided
by the Building;

 

(iii)             
Maintaining and replacing lamps, bulbs, and ballasts in the Premises other than as listed in subparagraph (a) above;

 

(iv)              
Heating, ventilation, air conditioning or extra electrical service provided by Landlord to Tenant (i) during hours
other than Business Hours, (ii) on Saturdays (after Business Hours), Sundays, or Holidays, said heating, ventilation and air
conditioning or extra service to be furnished solely upon the prior written request of Tenant given with such advance notice as
Landlord may reasonably require; Tenant shall pay to Landlord Landlord’s standard charge for overtime HVAC on an hourly basis
(which is currently $50.00 per hour per floor, with a two (2) hour minimum); and

 

(v)               
Any Basic Service in amounts determined by Landlord to exceed the amounts required to be provided above, but only if Landlord
elects to provide such additional or excess service. Tenant shall pay Landlord the cost of providing such additional services (or
an amount equal to Landlord’s reasonable estimate of such cost, if the actual cost is not readily ascertainable) together
with an administration fee equal to ten percent (10%) of such cost, within ten (10) days following presentation of an invoice therefore
by Landlord to Tenant. The cost chargeable to Tenant for all extra services shall constitute Additional Rent.

 

(c)                
Tenant agrees to cooperate fully at all times with Landlord and to comply with all regulations and requirements which Landlord
may from time to time prescribe for the use of the utilities and Basic Services described herein. Landlord agrees to apply such
regulations and requirements in a non-discriminatory manner. Landlord shall not be liable to Tenant for the failure of any other
tenant, or its assignees, subtenants, employees, or their respective invitees, licensees, agents or other representatives to comply
with such regulations and requirements. The term “Business Hours” shall be deemed to be Monday through Friday
from 8:00 A.M. to 6:00 P.M. and Saturday from 8:00 A.M. to 1:00 P.M., excepting Holidays. The term “Holidays”
shall be deemed to mean and include New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day and Christmas
Day.

 

(d)               
Tenant may install sub-metered supplemental heating, ventilation, air conditioning to serve the Premises in accordance with
the provisions of Paragraph 4(b).

 

    	 	19	 

     

    

 

(e)                
If Tenant requires utilities in excess of Standard Building Capacity or services in quantities greater than or at times
other than that generally furnished by Landlord as set forth above, Tenant shall pay to Landlord, upon receipt of a written statement
therefor, Landlord’s actual charge for such use. In the event that Tenant shall require additional electric current, water
or gas for use in the Premises and if, in Landlord’s reasonable judgment, such excess requirements cannot be furnished unless
additional risers, conduits, feeders, switchboards and/or appurtenances are installed in the Building, subject to the conditions
stated below, Landlord shall proceed to install the same at the sole cost of Tenant, payable within thirty (30) days after written
demand. The installation of such facilities shall be conditioned upon Landlord’s consent, and a determination that the installation
and use thereof (i) shall be permitted by applicable Law and insurance regulations, (ii) shall not cause permanent damage
or injury to the Building or adversely affect the value of the Building or the Property, and (iii) shall not cause or create
a dangerous or hazardous condition or unreasonably interfere with or disturb other tenants in the Building. Subject to the foregoing,
Landlord shall, upon reasonable prior notice by Tenant, furnish to the Premises additional heating, air conditioning and/or cleaning
services upon such reasonable terms and conditions as shall be determined by Landlord, including payment of Landlord’s charge
therefor. In the case of any additional utilities or services to be provided hereunder, Landlord may require a separate meter to
be installed so as to measure the amount of such additional utilities or services. The cost of installation, maintenance and repair
thereof shall be paid by Tenant upon demand. Notwithstanding the foregoing, Landlord shall have the right to contract with any
utility provider it deems appropriate to provide utilities to the Centre.

 

(f)                 
Except to the extent caused by Landlord or Landlord’s employees’, agents’, or contractors’ gross
negligence or willful misconduct, Landlord shall not be liable for, and Tenant shall not be entitled to, any damages, abatement
or reduction of Rent, or other liability by reason of any failure to furnish any services or utilities described herein for any
reason when such failure is occasioned in whole or in part by repairs, improvements or mechanical breakdowns or by the act or default
of Tenant or other parties that is not cured within any applicable notice and cure period or by an event of Force Majeure or any
other cause beyond Landlord’s control. Landlord shall be entitled to cooperate with the energy conservation efforts of governmental
agencies or utility suppliers. Except as otherwise provided in this Paragraph 7(f), no such failure, stoppage or interruption
of any such utility or service shall be construed as an eviction of Tenant, nor shall the same relieve Tenant from any obligation
to perform any covenant or agreement under this Lease. In the event of any failure, stoppage or interruption thereof, Landlord
shall use reasonable efforts to attempt to restore all services promptly. Tenant agrees to provide Landlord with prompt written
notice (the “Service Interruption Notice”) upon the occurrence of any Service Interruption that results
in Tenant vacating the Premises or any part thereof, due to such Service Interruption. The Service Interruption Notice must specify
the part of the Premises Tenant is vacating (if Tenant is not vacating the entire Premises). Subject to Sections 9 and 10
of this Lease, if any cessation or interruption of any Basic Services (other than the service set forth in Paragraph 7(a)(iv))
which results solely from Landlord's negligence or intentional misconduct, or the restoration of which is within Landlord’s
reasonable control (a “Service Interruption”), renders any portion of the Premises untenantable or inaccessible,
and the Premises (or the untenantable or inaccessible portion thereof) are not used by Tenant for more than 5 consecutive business
days after the Service Interruption Notice, then Base Rent abates proportionately, commencing on the day following such 5 business-day
period and continuing for the period that the Premises (or the applicable portion thereof) are untenantable or inaccessible and
are not used by Tenant. No representation is made by Landlord with respect to the adequacy or fitness of the Building’s ventilating,
air conditioning or other systems to maintain temperatures as may be required for the operation of any computer, data processing
or other special equipment of Tenant.

 

(g)               
Landlord reserves the right from time to time to make reasonable and nondiscriminatory modifications to the above standards
for Basic Services and Extra Services.

 

(h)               
Landlord shall provide Tenant with access to two (2), 4” cable risers for telecommunications installation in the Premises.
Landlord will provide Tenant with sufficient unobstructed, secure shaft space from the telecom “Point of Entry” room
in the Building to the Premises and from the Premises to the roof for its telecommunications with the conduits to be capable of
running in diverse points of entry to the Premises.

 

8.                  
NON-LIABILITY AND INDEMNIFICATION; INSURANCE

 

(a)                
Landlord shall not be liable for any injury, loss or damage suffered by Tenant or to any person or property occurring or
incurred in or about the Premises, the Property or the Centre from any cause, EXCEPT TO THE EXTENT SUCH LIABILITIES ARE CAUSED
BY THE NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY LANDLORD INDEMNITEE (DEFINED BELOW). Except as specified in the prior sentence but
subject to Paragraph 8(f), neither Landlord nor any of its partners, officers, trustees, affiliates, directors, employees,
contractors, agents or representatives (collectively, “Affiliates”), shall be liable for and there shall be
no abatement of Rent (except in the event of a casualty loss or a condemnation as set forth in Paragraph 9 and Paragraph 10
of this Lease) for (i) any damage to Tenant’s property stored with or entrusted to Affiliates of Landlord, or (ii) loss
of or damage to any property by theft or any other wrongful or illegal act, or (iii) business interruption or loss of use of the
Premises, or (iv) any injury or damage to persons or property resulting from fire, explosion, falling plaster, steam, gas,
electricity, water or rain which may leak from any part of the Building or the Property or from the pipes, appliances, appurtenances
or plumbing works therein or from the roof, street or sub-surface or from any other place or resulting from dampness or any other
cause whatsoever or from the acts or omissions of other tenants, occupants or other visitors to the Building or the Property or
from any other cause whatsoever, or (v) any diminution or shutting off of light, air or view by any structure which may be
erected on lands adjacent to the Building, whether within or outside of the Property, or (vi) any latent or other defect in
the Premises, the Building or the Property. Tenant shall give prompt notice to Landlord in the event of (i) the occurrence
of a fire or accident in the Premises or in the Building, or (ii) the discovery of a defect therein or in the fixtures or
equipment thereof. This Paragraph 8(a) shall survive the expiration or earlier termination of this Lease.

 

    	 	20	 

     

    

 

(b)               
Subject to Paragraph 8(f), Tenant hereby agrees to indemnify, protect, defend and hold harmless Landlord and its
designated property management company, and their respective partners, members, affiliates and subsidiaries, and all of their respective
officers, trustees, directors, shareholders, employees, servants, partners, representatives, insurers and agents (collectively,
“Landlord Indemnitees”) for, from and against all liabilities, claims, fines, penalties, costs, damages or injuries
to persons, damages to property, losses, liens, causes of action, suits, judgments and expenses (including court costs, attorneys’
fees, expert witness fees and costs of investigation), of any nature, kind or description of any person or entity, directly or
indirectly arising out of, caused by, or resulting from (in whole or part) (1) Tenant’s construction of, or use, occupancy
or enjoyment of, the Premises, (2) any activity, work or other things done, permitted or suffered by Tenant and its agents
and employees in or about the Premises, (3) any breach or default in the performance of any of Tenant’s obligations
under this Lease, (4) any act, omission, negligence or willful misconduct of Tenant or any of its agents, contractors, employees,
business invitees or licensees (the “Tenant Parties”), or (5) any damage to Tenant’s property, or
the property of Tenant’s agents, employees, contractors, business invitees or licensees, located in or about the Premises
(collectively, “Liabilities”); EXCEPT TO THE EXTENT SUCH LIABILITIES ARE CAUSED IN WHOLE OR IN PART BY THE NEGLIGENCE
OR WILLFUL MISCONDUCT OF ANY LANDLORD PARTY. This Paragraph 8(b) shall survive the expiration or earlier termination
of this Lease.

 

(c)                
Subject to Paragraph 8(f), Tenant shall not be liable for, and Landlord agrees to indemnify, protect, defend and
hold harmless the Tenant Parties for, from and against all Liabilities of any nature, kind or description of any person or entity,
directly or indirectly arising out of, caused by, or resulting from (in whole or part) any activity, work or other things done,
permitted or suffered by Landlord in the common areas of the Centre EXCEPT TO THE EXTENT SUCH LIABILITIES ARE CAUSED BY THE NEGLIGENCE
OR WILLFUL MISCONDUCT OF ANY TENANT PARTY. This Paragraph 8(c) shall survive the expiration or earlier termination of this Lease.
IT IS THE INTENT OF LANDLORD AND TENANT THAT THE PROVISIONS OF PARAGRAPHS 8(b) AND 8(c) COMPLY WITH THE CONTRIBUTORY NEGLIGENCE
PRINCIPLES OF THE STATE OF TEXAS.

 

(d)               
Each party shall promptly advise the other in writing of any action, administrative or legal proceeding or investigation
as to which the foregoing indemnifications may apply, and such party, at its sole expense, shall assume on behalf of each and every
indemnified party and conduct with due diligence and in good faith the defense thereof with counsel reasonably satisfactory to
the indemnified party; provided, however, that any indemnified party shall have the right, at its option, to be represented therein
by advisory counsel of its own selection and at its own expense. In the event of failure by either party to fully perform in accordance
with this Paragraph, the indemnified party, at its option, and without relieving the other of its obligations hereunder, may so
perform, but all costs and expenses so incurred by the indemnified party in that event shall be reimbursed by the other party,
together with interest on the same from the date any such expense was paid by the indemnified party until reimbursed by the other,
at the rate of interest provided to be paid on judgments, by the law of the jurisdiction to which the interpretation of this Lease
is subject. The indemnifications provided in Paragraphs 8(b) and 8(c) shall not be limited to damages, compensation or benefits
payable under insurance policies, workers' compensation acts, disability benefit acts or other employees' benefit acts.

 

    	 	21	 

     

    

 

(e)                
Insurance.

 

(i)                 
Tenant at all times during the Lease Term shall, at its own expense, keep in full force and effect (A) commercial general
liability insurance written on the most current form of ISO CG 00 01 (occurrence basis) or its equivalent, having a minimum each
occurrence limit of $1,000,000, a minimum general aggregate limit of $2,000,000, and shall include provision for contractual liability
coverage insuring Tenant for the performance of its indemnity obligations set forth in this Paragraph 8 and in Paragraph 6(g)(ii)
of this Lease, with an Excess Limits (Umbrella) Policy in the amount of $5,000,000, (B) worker’s compensation insurance
to the statutory limit, if any, and employer’s liability insurance in amounts not less than $500,000 bodily injury per accident/$500,000
disease each employee/$500,000 disease policy limit, and $1,000,000 in the aggregate, (C) All Risk or Causes of Loss - Special
Form property insurance, including fire and extended coverage, sprinkler leakage (including earthquake, sprinkler leakage), vandalism,
malicious mischief, wind and/or hurricane coverage, and earthquake and flood coverage, covering full replacement value of all of
Tenant’s personal property, trade fixtures and improvements in the Premises, (D) business automobile liability insurance
written on an occurrence basis, including coverage for owned, non-owned, and hired autos, such policy having a minimum limit of
$1,000,000 per accident, and (E) such additional insurance coverages or other policy limits as Landlord reasonably requires.
Landlord, its designated property management firm and all Landlord Indemnitees shall be named additional insureds on each of said
policies (excluding the worker’s compensation policy) and said policies shall be issued by an insurance company or companies
authorized to do business in the State and which have policyholder ratings not lower than “A-” and financial ratings
not lower than “IX” in Best’s Insurance Guide (latest edition in effect as of the date of this Lease and subsequently
in effect as of the date of renewal of the required policies). BOTH OF LANDLORD’S AND TENANT’S POLICIES SHALL ALSO
INCLUDE A WAIVER OF SUBROGATION PROVISION OR ENDORSEMENT IN FAVOR OF THE OTHER PARTY. TENANT’S POLICIES SHALL INCLUDE AN
ENDORSEMENT PROVIDING THAT LANDLORD SHALL RECEIVE THIRTY (30) DAYS PRIOR WRITTEN NOTICE OF ANY CANCELLATION OF, NON-RENEWAL OF,
REDUCTION OF COVERAGE OR MATERIAL CHANGE IN COVERAGE ON SAID POLICIES. In addition, all policies of Tenant shall be endorsed to
be primary, with the policies of all Landlord Indemnitees being excess, secondary and non-contributing. Tenant hereby waives its
right of recovery against any Landlord Indemnitee of any amounts paid by Tenant or on Tenant’s behalf to satisfy applicable
worker’s compensation laws. The policies or duly executed certificates showing the material terms for the same, together
with satisfactory evidence of the payment of the premiums therefor, shall be deposited with Landlord on the date Tenant first occupies
the Premises and upon renewals of such policies not less than fifteen (15) days prior to the expiration of the term of such coverage.
Tenant shall have the right to comply with the insurance requirements through blanket or umbrella policies.

 

(ii)               
It is expressly understood and agreed that the coverages required represent Landlord’s minimum requirements and such
are not to be construed to void or limit Tenant’s obligations contained in this Lease, including without limitation Tenant’s
indemnity obligations hereunder. Neither shall (A) the insolvency, bankruptcy or failure of any insurance company carrying
Tenant, (B) the failure of any insurance company to pay claims occurring nor (C) any exclusion from or insufficiency
of coverage be held to affect, negate or waive any of Tenant’s indemnity obligations under this Paragraph 8 and
Paragraph 6(g)(ii) or any other provision of this Lease. With respect to insurance coverages, except worker’s
compensation, maintained hereunder by Tenant and insurance coverages separately obtained by Landlord, all insurance coverages afforded
by policies of insurance maintained by Tenant shall be primary insurance as such coverages apply to Landlord, and such insurance
coverages separately maintained by Landlord shall be excess, and Tenant shall have its insurance policies so endorsed. The amount
of liability insurance under insurance policies maintained by Tenant shall not be reduced by the existence of insurance coverage
under policies separately maintained by Landlord. Tenant shall be solely responsible for any premiums, assessments, penalties,
deductible assumptions, retentions, audits, retrospective adjustments or any other kind of payment due under its policies. Tenant
shall increase the amounts of insurance or the insurance coverages as Landlord may reasonably request from time to time.

 

(iii)             
Tenant’s occupancy of the Premises without delivering the certificates of insurance shall not constitute a waiver
of Tenant’s obligations to provide the required coverages. If Tenant provides to Landlord a certificate that does not evidence
the coverages required herein, or that is faulty in any respect, such shall not constitute a waiver of Tenant’s obligations
to provide the proper insurance.

 

    	 	22	 

     

    

 

(iv)              
Throughout the Lease Term, Landlord agrees to maintain (i) All Risk or Causes of Loss – Special Form property
insurance covering fire and extended coverage insurance, and, at Landlord’s option, earthquake damage coverage, terrorism
coverage, wind and hurricane coverage, and such additional property insurance coverage as Landlord deems appropriate, on the insurable
portions of Building and the remainder of the Centre in an amount not less than the fair replacement value thereof, subject to
reasonable deductibles, consistent with similar quality buildings in Dallas, Texas; (ii) boiler and machinery insurance amounts
and with deductibles that would be considered standard for similar class office building in the metropolitan area in which the
Premises is located; and (iii) commercial general liability insurance with a combined single limit coverage of at least $1,000,000.00
per occurrence. All such insurance shall be obtained from insurers Landlord reasonably believes to be financially responsible in
light of the risks being insured. The premiums for any such insurance shall be a part of Operating Expenses.

 

(v)               
Tenant shall cause all of its contractors, subcontractors, suppliers, telecommunications service providers, moving companies
and other entities providing services to or performing work for Tenant (collectively, “Service Providers”) to
deliver evidence satisfactory to Landlord that the insurance specified in Schedule 1 to Exhibit B-1
is in force prior to entering the Centre. If any Service Provider does not comply with the insurance requirements, Landlord may
obtain the required insurance on behalf of the Service Provider, and Tenant shall pay to Landlord as Additional Rent the cost thereof.

 

(f)                 
Mutual Waivers of Subrogation. Landlord, Tenant, and all parties claiming under them, each mutually release and discharge
each other from responsibility for that portion of any loss or damage paid or reimbursed by an insurer of Landlord or Tenant under
any fire, extended coverage or other property insurance policy maintained by Tenant with respect to its Premises or by Landlord
with respect to the Building or the Centre (or which would have been paid had the insurance required to be maintained hereunder
been in full force and effect), no matter how caused, including negligence, and each waives any right of recovery from the other
including, but not limited to, claims for contribution or indemnity, which might otherwise exist on account thereof. Any fire,
extended coverage or property insurance policy maintained by Tenant with respect to the Premises, or Landlord with respect to the
Building or the Centre, shall contain, in the case of Tenant’s policies, a waiver of subrogation provision or endorsement
in favor of Landlord, and in the case of Landlord’s policies, a waiver of subrogation provision or endorsement in favor of
Tenant, or, in the event that such insurers cannot or shall not include or attach such waiver of subrogation provision or endorsement,
Tenant and Landlord shall obtain the approval and consent of their respective insurers, in writing, to the terms of this Lease.
Tenant and Landlord agree to indemnify, protect, defend and hold harmless each other and their respective Indemnitees from and
against any claim, suit or cause of action asserted or brought by the other’s insurers for, on behalf of, or in the name
of the other, including, but not limited to, claims for contribution, indemnity or subrogation, brought in contravention of this
paragraph. The mutual releases, discharges and waivers contained in this provision shall apply EVEN IF THE LOSS OR DAMAGE TO WHICH
THIS PROVISION APPLIES IS CAUSED SOLELY OR IN PART BY THE NEGLIGENCE OF LANDLORD OR TENANT. The foregoing waiver shall be effective
even if either or both parties fail to carry the insurance required herein.

 

(g)               
Adjustment of Claims. Tenant shall cooperate with Landlord and Landlord’s insurers in the adjustment of any
insurance claim pertaining to the Building or the Centre or Landlord’s use thereof.

 

(h)               
Increase in Landlord’s Insurance Costs. Tenant agrees to pay to Landlord any increase in premiums for Landlord’s
insurance policies resulting from Tenant’s use or occupancy of the Premises.

 

(i)                 
Failure to Maintain Insurance. Any failure of Tenant to obtain and maintain the insurance policies and coverages
required hereunder or failure by Tenant to meet any of the insurance requirements of this Lease shall constitute an event of default
hereunder, and such failure shall entitle Landlord to pursue, exercise or obtain any of the remedies provided for in Paragraph 12(b),
and Tenant shall be solely responsible for any loss suffered by Landlord as a result of such failure. In the event of failure by
Tenant to maintain the insurance policies and coverages required by this Lease or to meet any of the insurance requirements of
this Lease, Landlord, at its option, and without relieving Tenant of its obligations hereunder, may obtain said insurance policies
and coverages or perform any other insurance obligation of Tenant, but all costs and expenses incurred by Landlord in obtaining
such insurance or performing Tenant’s insurance obligations shall be reimbursed by Tenant to Landlord, together with interest
on same from the date any such cost or expense was paid by Landlord until reimbursed by Tenant, at the rate of interest provided
to be paid on judgments, by the law of the jurisdiction to which the interpretation of this Lease is subject.

 

    	 	23	 

     

    

 

9.                  
FIRE OR CASUALTY

 

(a)                
Subject to the provisions of this Paragraph 9, in the event the Premises, or access thereto, is wholly or partially
destroyed by fire or other casualty, Landlord shall, as soon as reasonably practicable, deliver to Tenant Landlord's estimate of
the time needed to repair the damage (the “Repair Notice”). Landlord will provide the Repair Notice in no more
than 60 days after the date of the fire or casualty. To the extent permitted by applicable laws and covenants, conditions and restrictions
then applicable to the Property and subject to the other provisions of this Paragraph 9, Landlord shall rebuild, repair
or restore the Premises and access thereto to substantially the same condition as existing immediately prior to such destruction
(excluding Tenant's Alterations, trade fixtures, equipment and personal property, which Tenant shall be required to restore) and
this Lease shall continue in full force and effect. Notwithstanding the foregoing, (i) Landlord's obligation to rebuild, repair
or restore the Premises shall not apply to any personal property or above-standard tenant improvements except that, provided Tenant
advances the cost thereof, Landlord will restore the internal stairwell in the Premises, and (ii) Landlord shall have no obligation
whatsoever to rebuild, repair or restore the Premises with respect to any damage or destruction occurring during the last twelve (12)
months of the term of this Lease or any extension of the term. If Landlord determines not to rebuild, repair or restore the Premises
with respect to damage or destruction during the last 12 months of the term of this Lease (as it may be extended), it will give
Tenant written notice of such decision and Tenant may thereafter terminate this Lease, without penalty, by giving Landlord written
notice within 30 days after receipt of such notice by Landlord; Rent shall abate reasonably and equitably as of the date of the
casualty.

 

(b)               
Landlord may elect to terminate this Lease in any of the following cases of damage or destruction to the Premises, the Building
or the Property: (i) where the cost of rebuilding, repairing and restoring (collectively, “Restoration”)
of the Building or the Property, would, regardless of the lack of damage to the Premises or access thereto, in the reasonable opinion
of Landlord, exceed twenty percent (20%) of the then replacement cost of the Building, which Landlord elects not to restore; (ii) where,
in the case of any damage or destruction to any portion of the Building or the Property by uninsured casualty, the cost of Restoration
of the Building or the Property, in the reasonable opinion of Landlord, exceeds $500,000, and Landlord elects not to restore; or
(iii) where, in the case of any damage or destruction to the Premises or access thereto by uninsured casualty, the cost of
Restoration of the Premises or access thereto, in the reasonable opinion of Landlord, exceeds twenty percent (20%) of the replacement
cost of the Premises; or (iv) if Landlord has not obtained appropriate zoning approvals for reconstruction of the Property,
Building or Premises. Any such termination shall be made by thirty (30) days’ prior written notice to Tenant given within
ninety (90) days of the date of such damage or destruction. If this Lease is not terminated by Landlord and as the result of any
damage or destruction, the Premises, or a portion thereof, are rendered untenantable, the Base Rent shall abate reasonably during
the period of Restoration (based upon the extent to which such damage and Restoration materially interfere with Tenant’s
business in the Premises). This Lease shall be considered an express agreement governing any case of damage to or destruction of
the Premises, the Building or the Property. This Lease sets forth the terms and conditions upon which this Lease may terminate
in the event of any damage or destruction.

 

(c)                
Notwithstanding anything in this Paragraph 9 to the contrary, (i) if Landlord, in its Repair Notice, estimates that
the damage caused by the casualty cannot be repaired within one hundred eighty (180) days after the date of the casualty or (ii)
if Landlord, in its Repair Notice, estimates that the damage caused by the casualty cannot be repaired within thirty (30) days
after the date of the casualty that occurs during the last twelve (12) months of the Lease Term, then Tenant shall have the right
and option to terminate this Lease without penalty, by giving written notice to Landlord at any time within thirty (30) days after
receipt of the Repair Notice, in which case Rent shall abate reasonably and equitably as of the date of the casualty (based upon
the extent to which such damage and Restoration render portions of the Premises untenantable) until the effective date of termination.

 

(d)               
If this Lease is not terminated as a result of the damage and Landlord does not substantially complete its repair and restoration
within 90 days after the expiration of the time estimated by Landlord to be necessary to complete same, subject to any Tenant Delays,
and the repair and restoration is not complete at the time Tenant gives its notice of termination, then Tenant may terminate this
Lease by giving notice to Landlord within thirty (30) days after the last day of the 90 day period.

 

    	 	24	 

     

    

 

10.               
EMINENT DOMAIN

 

(a)                
In the event the whole of the Premises, the Building or the Centre shall be taken under the power of eminent domain, or
sold to prevent the exercise thereof (collectively, a “Taking”), this Lease shall automatically terminate as
of the date of such Taking.

 

(b)               
In the event that (A) there is a taking or condemnation or sale in lieu thereof of (i) all or substantially all of the Premises,
Building or the Centre or (ii) any portion of the Premises, the Building or the Centre which results in Tenant being unable to
use the remainder of the Premises in substantially the same way that Tenant used the Premises immediately prior to such taking,
condemnation or sale in lieu thereof (“Partial Taking”), or (B) there is a temporary taking which results in
Tenant being unable to use a substantial portion of the Premises for a period of twenty (20) consecutive days (“Temporary
Taking” collectively with the Partial Taking and Taking, a “Taking Event”), either Landlord or Tenant
may terminate this Lease by delivering written notice thereof to the other within ten (10) business days after the Taking Event,
condemnation or sale in lieu thereof. For purposes of this Lease, the date of Taking Event shall be the earlier of the date of
transfer of title resulting from such or the date of transfer of possession resulting from such Taking Event.

 

(c)                
In the event that a portion of the Premises is so taken and this Lease is not terminated, Landlord shall, to the extent
of proceeds paid to Landlord as a result of the Taking Event, with reasonable diligence, use commercially reasonable efforts to
proceed to restore (to the extent permitted by Law and covenants, conditions and restrictions then applicable to the Centre) the
Premises (other than Tenant’s personal property and fixtures, and tenant improvements) to a complete, functioning unit. In
such case, Rent shall be reduced proportionately based on the portion of the Premises so taken. In the event of a Temporary Taking,
Tenant shall be entitled to receive the entire award allocable to the Temporary Taking of the Premises. Except as provided herein,
Tenant shall not assert any claim against Landlord or the condemning authority for, and hereby assigns to Landlord, any compensation
in connection with any such Taking Event, and Landlord shall be entitled to receive the entire amount of any award therefor, without
deduction for any estate or interest of Tenant, provided that Landlord shall not make any claim for Tenant’s personal property,
fixtures, Tenant’s lost profits and revenues, or for Tenant’s relocation or moving expenses. Nothing contained in this
Paragraph 10 shall be deemed to give Landlord any interest in, or prevent Tenant from seeking any award against the condemning
authority for the Taking of personal property, fixtures, above standard tenant improvements of Tenant or for relocation or moving
expenses recoverable by Tenant from the condemning authority. This Paragraph 10 shall be Tenant’s sole and exclusive remedy
in the event of a Taking. This Lease sets forth the terms and conditions upon which this Lease may terminate in the event of a
Taking.

 

11.               
ASSIGNMENT AND SUBLETTING

 

(a)                
Tenant shall not directly or indirectly, voluntarily or involuntarily, by operation of law or otherwise, assign, sublet,
mortgage or otherwise encumber all or any portion of its interest in this Lease or in the Premises or grant any license for any
person other than Tenant or its employees to use or occupy the Premises or any part thereof without obtaining the prior written
consent of Landlord, which consent shall not be unreasonably withheld, delayed or conditioned. Any such attempted assignment, subletting,
license, mortgage, other encumbrance or other use or occupancy without the consent of Landlord shall, at Landlord’s option,
be null and void and of no effect. Any mortgage, or encumbrance of all or any portion of Tenant’s interest in this Lease
or in the Premises and any grant of a license for any person other than Tenant or its employees to use or occupy the Premises or
any part thereof shall be deemed to be an “assignment” of this Lease.

 

(b)               
No assignment or subletting shall relieve Tenant of its obligation to pay the Rent and to perform all of the other obligations
to be performed by Tenant hereunder. The acceptance of Rent by Landlord from any other person shall not be deemed to be a waiver
by Landlord of any provision of this Lease or to be a consent to any subletting or assignment. Consent by Landlord to one subletting
or assignment shall not be deemed to constitute a consent to any other or subsequent attempted subletting or assignment. If Tenant
desires at any time to assign this Lease or to sublet the Premises or any portion thereof, it shall first notify Landlord of its
desire to do so and shall submit in writing to Landlord all pertinent information relating to the proposed assignee or sublessee,
all pertinent information relating to the proposed assignment or sublease, and all such financial information as Landlord may reasonably
request concerning the Tenant and proposed assignee or subtenant (the "A/S Notice"). Any assignment or sublease
shall be expressly subject to the terms and conditions of this Lease.

 

    	 	25	 

     

    

 

(c)                
Except for transfers to Permitted Transferees, Landlord has a period of twenty (20) days after Landlord’s receipt
of the A/S Notice to notify Tenant that Landlord elects, in Landlord’s sole discretion, to:

 

(i)                 
if Tenant requests to assign this Lease or sublease (i) the entire 1100 Premises or all of the eleventh (11th)
floor of the Building or (ii) for all or substantially all of the Lease Term, terminate this Lease as to the space that is the
subject of the A/S Notice as of the date specified by Tenant in the A/S Notice; or

 

(ii)               
consent to the assignment or sublease; or

 

(iii)             
refuse to consent to Tenant's assignment or sublease of that space and to continue this Lease in effect.

 

If Landlord
does not notify Tenant of Landlord's election within the 20-day period, Landlord will notify Tenant in writing. If Landlord does
not notify Tenant of Landlord’s election within ten (10) days following Landlord’s receipt of such notice and the notice
conspicuously states, “IF YOU DO NOT MAIL YOUR APPROVAL OR DISAPPROVAL OF THE REQUESTED TRANSFER WITHIN 10 DAYS AFTER YOU
RECEIVE THIS REQUEST FOR CONSENT, YOUR APPROVAL OF THIS TRANSFER WILL BE DEEMED GIVEN,” then Landlord shall be deemed to
have approved such request. If Landlord elects to terminate this Lease as provided under option (i), Tenant has 5 days following
receipt of Landlord’ s notice to terminate within which to rescind its notice of its proposed assignment or sublease and
avoid a termination of this Lease.

 

(d)               
Tenant acknowledges that it shall be reasonable for Landlord to withhold its consent to a proposed assignment or sublease
in any of the following instances:

 

(i)                 
The assignee or sublessee (or any affiliate of the assignee or sublessee) is not, in Landlord’s reasonable opinion,
sufficiently creditworthy to perform the obligations such assignee or sublessee will have under this Lease;

 

(ii)               
The intended use of the Premises by the assignee or sublessee is not for general office use;

 

(iii)             
The intended use of the Premises by the assignee or sublessee would materially increase the pedestrian or vehicular traffic
to the Premises or the Building;

 

(iv)              
Occupancy of the Premises by the assignee or sublessee would, in the good faith judgment of Landlord, violate any agreement
binding upon Landlord, the Building or the Centre with regard to the identity of tenants, usage in the Building, or similar matters;

 

(v)               
The assignee or sublessee (or any affiliate of the assignee or sublessee) is then negotiating with Landlord or has negotiated
with Landlord within the previous ninety (90) days, or is a current tenant or subtenant within the Building or Centre and Landlord
has comparable space of comparable size in the Building or the Centre for lease;

 

(vi)              
The identity or business reputation of the assignee or sublessee will, in the good faith judgment of Landlord, tend to damage
the goodwill or reputation of the Building or Centre;

 

(vii)            
the proposed sublease would result in more than two subleases of portions of the Premises being in effect at any one time
during the Lease Term; or

 

(viii)          
In the case of a sublease, the subtenant has not acknowledged that the Lease controls over any inconsistent provision in
the sublease.

 

The foregoing criteria
shall not exclude any other reasonable basis for Landlord to refuse its consent to such assignment or sublease. Notwithstanding
any contrary provision of this Lease, if Tenant or any proposed assignee or sublessee claims that Landlord has unreasonably withheld
its consent to a proposed assignment or sublease or otherwise has breached its obligations under this Paragraph 11,
their sole remedy shall be to seek a declaratory judgment and/or injunctive relief without any monetary damages, and, with respect
thereto, Tenant, on behalf of itself and, to the extent permitted by law, such proposed assignee/sublessee, hereby waives all other
remedies against Landlord, including, without limitation, the right to seek monetary damages or to terminate this Lease.

 

    	 	26	 

     

    

 

(e)                
If any Tenant is a corporation, partnership or other entity that is not publicly traded on a recognized national stock exchange,
any transaction or series of related or unrelated transactions (including, without limitation, any dissolution, merger, consolidation
or other reorganization, any withdrawal or admission of a partner or change in a partner’s interest, or any issuance, sale,
gift, transfer or redemption of any capital stock of or ownership interest in such entity, whether voluntary, involuntary or by
operation of law, or any combination of any of the foregoing transactions) resulting in the transfer of control of such Tenant,
shall be deemed to be an assignment of this Lease subject to the provisions of this Section 11. The term “control”
as used in this Section 11(e) means the power to directly or indirectly direct or cause the direction of the management
or policies of Tenant. Any transfer of control of a subtenant which is a corporation or other entity shall be deemed an assignment
of any sublease. Notwithstanding anything to the contrary in this Section 11(e), if the original Tenant under this
Lease is a corporation, partnership or other entity, a change or series of changes in ownership of stock or other ownership interests
which would result in direct or indirect change in ownership of less than fifty percent (50%) of the outstanding stock of or other
ownership interests in such Tenant as of the date of the execution and delivery of this Lease shall not be considered a change
of control.

 

(f)                 
Notwithstanding any assignment or subletting, Tenant and any guarantor or surety of Tenant’s obligations under this
Lease shall at all times during the Initial Term and any subsequent renewals or extensions remain fully responsible and liable
for the payment of the rent and for compliance with all of Tenant’s other obligations under this Lease. In the event that
the Rent due and payable by a sublessee or assignee (or a combination of the rental payable under such sublease or assignment,
plus any bonus or other consideration therefor or incident thereto) exceeds the Rent payable under this Lease, then Tenant shall
be bound and obligated to pay Landlord, as additional rent hereunder, one-half of all such excess Rent and other excess consideration
specifically tied to the value of the space and not dedicated to any of Tenant’s furniture, fixtures, or equipment (less
the costs reasonably incurred by Tenant with unaffiliated third parties in connection with such transfer (i.e., brokerage commissions
and tenant finish work and after deducting all reasonable and actual expenses associated with such assignment or sublease) within
ten (10) days following receipt thereof by Tenant; provided, if an event of default exists that is not cured within any applicable
notice and cure period, then Tenant shall be bound and obligated to pay Landlord, as additional rent hereunder, all of such excess
Rent and other excess consideration.

 

(g)               
If this Lease is assigned or if the Premises is subleased (whether in whole or in part), or in the event of the mortgage
or pledge of Tenant’s leasehold interest, or grant of any concession or license within the Premises, or if the Premises are
occupied in whole or in part by anyone other than Tenant, then upon a default by Tenant hereunder that is not cured within any
applicable notice and cure period Landlord may collect Rent from the assignee, sublessee, mortgagee, pledgee, concessionee or licensee
or other occupant and, except to the extent set forth in the preceding paragraph, apply the amount collected to the next Rent payable
hereunder; and all such Rent collected by Tenant shall be held in deposit for Landlord and promptly forwarded to Landlord. No such
transaction or collection of Rent or application thereof by Landlord, however, shall be deemed a waiver of these provisions or
a release of Tenant from the further performance by Tenant of its covenants, duties, or obligations hereunder.

 

(h)               
If Tenant effects an assignment or sublease or requests the consent of Landlord to any proposed assignment or sublease,
then Tenant shall, upon demand, pay Landlord a non-refundable administrative fee of Seven Hundred Fifty Dollars ($750.00), plus
any reasonable attorneys’ and paralegal fees and costs incurred by Landlord in connection with such assignment or sublease
or request for consent. Acceptance of the Seven Hundred Fifty Dollars ($750.00) administrative fee and/or reimbursement of Landlord’s
attorneys’ and paralegal fees shall in no event obligate Landlord to consent to any proposed assignment or sublease.

 

(i)                 
Notwithstanding any provision of this Lease to the contrary, in the event this Lease is assigned to any person or entity
pursuant to the provisions of the Bankruptcy Code, any and all monies or other consideration payable or otherwise to be delivered
in connection with such assignment shall be paid or delivered to Landlord, shall be and remain the exclusive property of Landlord
and shall not constitute the property of Tenant or Tenant’s estate within the meaning of the Bankruptcy Code. All such money
and other consideration not paid or delivered to Landlord shall be held in trust for the benefit of Landlord and shall be promptly
paid or delivered to Landlord.

 

    	 	27	 

     

    

 

(j)                 
The joint and several liability of the Tenant named herein and any immediate and remote successor-in-interest of Tenant
(by assignment or otherwise), and the due performance of the obligations of this Lease on Tenant’s part to be performed or
observed, shall not in any way be discharged, released or impaired by any (a) agreement that modifies any of the rights or
obligations of the parties under this Lease, (b) stipulation that extends the time within which an obligation under this Lease
is to be performed, (c) waiver of the performance of an obligation required under this Lease, or (d) failure to enforce
any of the obligations set forth in this Lease.

 

(k)               
If Tenant is any form of partnership, a withdrawal or change, voluntary, involuntary or by operation of law of any partner,
or the dissolution of the partnership, shall be deemed a voluntary assignment. If Tenant consists of more than one (1) person,
a purported assignment, voluntary or involuntary or by operation of law from one (1) person to the other shall be deemed a
voluntary assignment. If Tenant is a corporation or limited liability entity, any dissolution, merger, consolidation or other reorganization
of Tenant, or sale or other transfer of a controlling percentage of the ownership interest of Tenant, or the sale of at least twenty-five
percent (25%) of the value of the assets of Tenant shall be deemed a voluntary assignment.

 

(l)                 
Notwithstanding anything to the contrary in this Paragraph 11, Tenant may assign this Lease or sublet all or a part
of the Premises (a “Permitted Transfer”) to the following types of entities (a “Permitted Transferee”)
without the written consent of Landlord:

 

(i)                 
any person or entity which, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is
under common control with Tenant;

 

(ii)               
any corporation, limited partnership, limited liability partnership, limited liability company or other business entity
in which or with which Tenant, or its corporate successors or assigns, is merged or consolidated, in accordance with applicable
statutory provisions governing merger and consolidation of business entities, so long as (A) Tenant’s obligations hereunder
are assumed by the entity surviving such merger or created by such consolidation; and (B) the Tangible Net Worth of the surviving
or created entity is not less than the Tangible Net Worth of Tenant as of the date hereof; or

 

(iii)             
any corporation, limited partnership, limited liability partnership, limited liability company or other business entity
acquiring all or substantially all of Tenant’s assets if such entity’s Tangible Net Worth after such acquisition is
not less than the Tangible Net Worth of Tenant as of the date hereof.

 

Tenant shall promptly
notify Landlord of any such Permitted Transfer. Tenant shall remain liable for the performance of all of the obligations of Tenant
hereunder, or if Tenant no longer exists because of a merger, consolidation, or acquisition, the surviving or acquiring entity
shall expressly assume in writing the obligations of Tenant hereunder. Additionally, the Permitted Transferee shall comply with
all of the terms and conditions of this Lease, including the Permitted Use, and the use of the Premises by the Permitted Transferee
may not violate any other agreements affecting the Premises, the Building, the Centre, Landlord or other tenants of the Centre.
No later than 30 days after the effective date of any Permitted Transfer, Tenant agrees to furnish Landlord with (A) copies of
the instrument effecting any of the foregoing Transfers, (B) documentation establishing Tenant’s satisfaction of the requirements
set forth above applicable to any such Transfer, and (C) evidence of insurance as required under this Lease with respect to the
Permitted Transferee. The occurrence of a Permitted Transfer shall not waive Landlord’s rights as to any subsequent transfers.
“Tangible Net Worth” means the excess of total assets over total liabilities, in each case as determined in
accordance with GAAP, excluding, however, from the determination of total assets all assets which would be classified as intangible
assets under GAAP including goodwill, licenses, patents, trademarks, trade names, copyrights, and franchises. Any subsequent transfer
by a Permitted Transferee shall be subject to the terms of this Paragraph 11.

 

12.               
DEFAULT

 

(a)                
Events of Default. The occurrence of any one or more of the following events shall constitute an “event of
default” or “default” (herein so called) under this Lease by Tenant:

 

    	 	28	 

     

    

 

(i)                 
Tenant shall fail to pay Rent or any other rental or sums payable by Tenant hereunder within five (5) business days
after Landlord notifies Tenant in writing of such nonpayment; provided, however, Landlord shall only be obligated to provide such
written notice to Tenant one (1) time within any calendar year and in the event Tenant fails to timely pay Rent or any other
sums for a second time during any calendar year, then Tenant shall be in default for such late payment and Landlord shall have
no obligation or duty to provide notice of such non-payment to Tenant prior to declaring an event of default under this Lease;

 

(ii)               
the failure by Tenant to observe or perform any of the express or implied covenants or provisions of this Lease to be observed
or performed by Tenant, other than monetary failures as specified in Paragraph 12(a)(i) above, where such failure shall
continue for a period of thirty (30) days after written notice thereof from Landlord to Tenant; provided, however, that if the
nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall
not be deemed to be in default if Tenant shall commence such cure within said thirty (30) day period and thereafter diligently
prosecutes such cure to completion;

 

(iii)             
the making by Tenant of any general assignment for the benefit of creditors,

 

(iv)              
the filing by or against Tenant of a petition to have Tenant adjudged a bankrupt or a petition for reorganization or arrangement
under any law relating to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60)
days),

 

(v)               
the appointment of a trustee or receiver to take possession of substantially all of Tenant’s assets located at the
Premises or of Tenant’s interest in this Lease, where possession is not restored to Tenant within sixty (60) days,

 

(vi)              
the attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises
or of Tenant’s interest in this Lease where such seizure is not discharged within sixty (60) days;

 

(vii)            
any material representation or warranty made by Tenant or any other document delivered in connection with the execution
and delivery of this Lease or pursuant to this Lease proves to be incorrect in any material respect; or

 

(viii)          
Tenant shall be liquidated or dissolved or shall begin proceedings towards its liquidation or dissolution.

 

(b)               
Landlord’s Remedies; Termination. In the event of any event of default by Tenant, in addition to any other
remedies available to Landlord under this Lease, at law or in equity, Landlord may at its option pursue any one or more of the
following remedies, without any notice or demand to the extent permitted by Law:

 

(i)                 
Landlord may enter the Premises without terminating this Lease and perform any covenant or agreement or cure any condition
creating or giving rise to an event of default under this Lease and Tenant shall pay to Landlord on demand, as additional rent,
the amount expended by Landlord in performing such covenants or agreements or satisfying or observing such condition. Landlord,
or its agents or employees, shall have the right to enter the Premises, and such entry and such performance shall not terminate
this Lease or constitute an eviction of Tenant.

 

(ii)               
Landlord may terminate this Lease by written notice to Tenant (and not otherwise) or Landlord may terminate Tenant’s
right of possession without terminating this Lease. In either of such events Tenant shall surrender possession of and vacate the
Premises promptly and deliver possession thereof to Landlord, and Tenant hereby grants to Landlord full and free license to enter
the Premises, in whole or in part, with or without process of law and to expel or remove Tenant and any other person, firm or entity
who may be occupying the Premises or any part thereof and remove any and all property therefrom, using such lawful force as may
be necessary.

 

    	 	29	 

     

    

 

(iii)             
In the event Landlord elects to re-enter or take possession of the Premises after Tenant’s default, with or without
terminating this Lease, Landlord may change locks or alter security devices and lock out, expel or remove Tenant and any other
person who may be occupying all or any part of the Premises without being liable for any claim for damages.

 

(iv)              
Notwithstanding anything herein to the contrary, if Landlord terminates Tenant’s right to possession without terminating
this Lease after an event of default, Landlord shall, if required by Law, use commercially reasonable efforts to relet the Premises
and mitigate damage as set forth in Paragraph 12(c) below.

 

(v)               
Notwithstanding any prior election by Landlord to not terminate this Lease, Landlord may at any time, including subsequent
to any re-entry or taking of possession of the Premises as allowed hereinabove, elect to terminate this Lease. Tenant shall be
liable for and shall promptly pay to Landlord the amount of all Base Rent and other sums of money due under this Lease as may have
accrued as of the date of termination. Tenant shall also promptly pay to Landlord, as agreed and liquidated damages, an amount
of money equal to the Base Rent and other amounts due for the remaining portion of the Lease Term (had such term not been terminated
by Landlord prior to the expiration of the Lease Term), less the fair rental value of the Premises for the residue of the Lease
Term, both discounted to their present value based upon an interest rate of eight percent (8%) per annum. In determining fair
rental value, Landlord shall be entitled to take into account the time and expenses necessary to obtain a replacement tenant or
tenants, including lost rental revenues and anticipated expenses hereinafter described relating to recovery, preparation and reletting
of the Premises. If Landlord elects to relet the Premises, or any portion thereof, before presentation of proof of such liquidated
damages, the amount of rent reserved upon such reletting shall be deemed prima facie evidence of the fair rental value of the portion
of the Premises so relet.

 

Landlord
and Tenant agree that because of the difficulty or impossibility of determining Landlord’s damages from the loss of anticipated
Additional Rent and other lease charges from the Tenant, there shall be included as a component of Tenant’s annual total
rent obligation (for the calculation of Landlord’s remedies), an amount equal to the average monthly Additional Rent paid
by Tenant for the twelve (12) full calendar months immediately preceding the event of default (or such lesser period of the
term if the event of default occurs prior to the twelfth (12th) full calendar month of the term) multiplied by the number of months
remaining in the Lease Term.

 

(vi)              
In addition to any sum provided to be paid above, Tenant shall also be liable for and shall promptly pay to Landlord all
broker’s fees incurred by Landlord in connection with any reletting of the whole or any part of the Premises, the costs of
removing and storing Tenant’s or any other occupant’s property, the cost of repairing, altering, remodeling, renovating
or otherwise putting the Premises into a condition acceptable to a new tenant or tenants, the cost of removal and replacement of
Tenant’s signage and all reasonable expenses by Landlord in enforcing Landlord’s remedies, including reasonable attorneys’
fees.

 

(vii)            
Landlord may apply Tenant’s Security Deposit to the extent necessary to make good any rent arrearage, to pay the cost
of remedying Tenant’s default or to reimburse Landlord for expenditures made or damages suffered as a consequence of Tenant’s
default, without prejudice to any other remedies Landlord may have under this Lease. Following any such application of the Security
Deposit, Tenant shall pay to Landlord on demand the amount so applied in order to restore the Security Deposit to its original
amount.

 

(c)                
Mitigation of Damages.

 

(i)                 
In the event of a default under the Lease, Landlord and Tenant shall each use commercially reasonable efforts to mitigate
any damages resulting from a default of the other party under this Lease.

 

(ii)               
Landlord’s obligation to mitigate damages after a default by Tenant shall be satisfied in full if Landlord undertakes
to lease the Premises to another tenant (a “Substitute Tenant”) in accordance with the following criteria:

 

    	 	30	 

     

    

 

(A)              
Landlord shall have no obligation to solicit or entertain negotiations with any other prospective tenant for the Premises
until Landlord obtains full and complete possession of the Premises including, without limitation, the final and unappealable legal
right to relet the Premises free of any claim of Tenant.

 

(B)              
Landlord shall not be obligated to offer the Premises to a Substitute Tenant when other premises in the Centre suitable
for that prospective tenant’s use are available.

 

(C)              
Landlord shall not be obligated to lease the Premises to a Substitute Tenant for a rental less than the current fair market
rental then prevailing for similar space, nor shall Landlord be obligated to enter into a new lease under other terms and conditions
that are unacceptable to Landlord under Landlord’s then current leasing policies for comparable space.

 

(D)              
Landlord shall not be obligated to enter into a lease with any proposed tenant whose use would:

 

a.                   
Disrupt the tenant mix or balance of the Centre;

 

b.                  
Violate any restriction, covenant, or requirement contained in the lease of another tenant of the Centre;

 

c.                   
Adversely affect the reputation of the Centre; or

 

d.                  
Be incompatible with the operation of the Centre.

 

(E)               
Landlord shall not be obligated to enter into a lease with any proposed Substitute Tenant (a “Substitute Lease”)
which does not have, in Landlord’s reasonable opinion, sufficient financial resources or operating experience to operate
the Premises in a first-class manner.

 

(F)               
Landlord shall not be required to expend any amount of money to alter, remodel, or otherwise make the Premises suitable
for use by a proposed Substitute Tenant unless:

 

a.                   
Tenant pays any such sum to Landlord in advance of Landlord’s execution of a Substitute Lease with such Substitute
Tenant (which payment shall not be in lieu of any damages or other sums to which Landlord may be entitled as a result of Tenant’s
default under this Lease); or

 

b.                  
Landlord, in Landlord’s reasonable discretion, determines that any such expenditure is financially justified in connection
with entering into any such Substitute Lease.

 

(iii)             
Upon compliance with the above criteria regarding the releasing of the Premises after a default by Tenant, Landlord shall
be deemed to have fully satisfied Landlord’s obligation to mitigate damages under this Lease and under any law or judicial
ruling in effect on the date of this Lease or at the time of Tenant’s default, and Tenant waives and releases, to the fullest
extent legally permissible, any right to assert in any action by Landlord to enforce the terms of this Lease, any defense, counterclaim,
or rights of setoff or recoupment respecting the mitigation of damages by Landlord, unless and to the extent Landlord maliciously
or in bad faith fails to act in accordance with the requirements of this Paragraph 12(c).

 

(iv)              
Tenant’s right to seek damages from Landlord as a result of a default by Landlord under this Lease shall be conditioned
on Tenant taking all commercially reasonable actions reasonably required, under the circumstances, to minimize any loss or damage
to Tenant’s property or business, or to any of Tenant’s officers, employees, agents, invitees, or other third parties
that may be caused by any such default of Landlord.

 

    	 	31	 

     

    

 

(d)               
Landlord’s Remedies; Re-Entry Rights. No re-entry or taking possession of the Premises by Landlord pursuant
to this Paragraph 12(d), and no acceptance of surrender of the Premises or other action on Landlord’s part, shall
be construed as an election to terminate this Lease unless a written notice of such intention be given to Tenant or unless the
termination thereof be decreed by a court of competent jurisdiction.

 

(e)                
Landlord’s Right to Perform. Except as specifically provided otherwise in this Lease, all covenants and agreements
by Tenant under this Lease shall be performed by Tenant at Tenant’s sole cost and expense and without any abatement or offset
of Rent. If Tenant shall fail to pay any sum of money (other than Base Rent) or perform any other act on its part to be paid or
performed hereunder and such failure shall continue for three (3) days with respect to monetary obligations (or ten (10)
days with respect to non-monetary obligations, except in case of emergencies, in which such case, such shorter period of time as
is reasonable under the circumstances) after Tenant’s receipt of written notice thereof from Landlord, Landlord may, without
waiving or releasing Tenant from any of Tenant’s obligations, make such payment or perform such other act on behalf of Tenant.
All sums so paid by Landlord and all necessary incidental costs incurred by Landlord in performing such other acts shall be payable
by Tenant to Landlord within five (5) days after demand therefor as Additional Rent.

 

(f)                 
Interest. If any monthly installment of Rent or Operating Expenses, or any other amount payable by Tenant hereunder
is not received by Landlord by the date when due, it shall bear interest at the Default Rate from the date due until paid. All
interest, and any late charges imposed pursuant to Paragraph 12(g) below, shall be considered Additional Rent due from
Tenant to Landlord under the terms of this Lease. The term “Default Rate” as used in this Lease shall mean the
lesser of (A) the rate announced from time to time by Wells Fargo Bank or, if Wells Fargo Bank ceases to exist or ceases to
publish such rate, then the rate announced from time to time by the largest (as measured by deposits) chartered bank operating
in the State, as its “prime rate” or “reference rate”, plus five percent (5%), or (B) the maximum
rate of interest permitted by Law.

 

(g)               
Late Charges. Tenant acknowledges that, in addition to interest costs, the late payments by Tenant to Landlord of
any monthly installment of Base Rent, Additional Rent or other sums due under this Lease will cause Landlord to incur costs not
contemplated by this Lease, the exact amount of such costs being extremely difficult and impractical to fix. Such other costs include,
without limitation, processing, administrative and accounting charges and late charges that may be imposed on Landlord by the terms
of any mortgage, deed to secure debt, deed of trust or related loan documents encumbering the Premises, the Building or the Centre.
Accordingly, if any monthly installment of Base Rent, Additional Rent or any other amount payable by Tenant hereunder is not received
by Landlord by the due date thereof, Tenant shall pay to Landlord an additional sum of five percent (5%) of the overdue amount
as a late charge, but in no event more than the maximum late charge allowed by law. The parties agree that such late charge represents
a fair and reasonable estimate of the costs that Landlord will incur by reason of any late payment as hereinabove referred to by
Tenant, and the payment of late charges and interest are distinct and separate in that the payment of interest is to compensate
Landlord for the use of Landlord’s money by Tenant, while the payment of late charges is to compensate Landlord for Landlord’s
processing, administrative and other costs incurred by Landlord as a result of Tenant’s delinquent payments. Acceptance of
a late charge or interest shall not constitute a waiver of Tenant’s default with respect to the overdue amount or prevent
Landlord from exercising any of the other rights and remedies available to Landlord under this Lease or at law or in equity now
or hereafter in effect. Landlord agrees to waive interest and late charges with regard to the first delinquent installment of Rent
due hereunder, in any calendar year, provided that Landlord receives such amount in full within five (5) business days after written
notice from Landlord.

 

(h)               
Rights and Remedies Cumulative. All rights, options and remedies of Landlord contained in this Paragraph 12
and elsewhere in this Lease shall be construed and held to be cumulative, and no one of them shall be exclusive of the other, and
Landlord shall have the right to pursue any one or all of such remedies or any other remedy or relief which may be provided by
law or in equity, whether or not stated in this Lease. Nothing in this Paragraph 12 shall be deemed to limit or otherwise
affect Tenant’s indemnification of Landlord pursuant to any provision of this Lease.

 

(i)                 
Tenant’s Waiver of Redemption. Tenant hereby waives and surrenders for itself and all those claiming under
it, including creditors of all kinds, (i) any right and privilege which it or any of them may have under any present or future
law to redeem any of the Premises or to have a continuance of this Lease after termination of this Lease or of Tenant’s right
of occupancy or possession pursuant to any court order or any provision hereof, and (ii) the benefits of any present or future
law which exempts property from liability for debt or for distress for Rent.

 

    	 	32	 

     

    

 

(j)                 
Costs Upon Default and Litigation. Tenant shall pay to Landlord and its mortgagees as Additional Rent all the expenses
incurred by Landlord or its mortgagees in connection with any default by Tenant hereunder or the exercise of any remedy by reason
of any default by Tenant hereunder, including reasonable attorneys’ fees and expenses. If Landlord or its mortgagees shall
be made a party to any litigation commenced against Tenant or any litigation pertaining to this Lease or the Premises, at the option
of Landlord and/or its mortgagees, Tenant, at its expense, shall provide Landlord and/or its mortgagees with counsel approved by
Landlord and/or its mortgagees and shall pay all costs incurred or paid by Landlord and/or its mortgagees in connection with such
litigation.

 

(k)               
Damages. Except for any damages which Landlord may suffer because of Tenant’s holding over in the Premises
60 days following the expiration of the Lease Term or any default under Paragraph 6 (for which Landlord may recover consequential
damages from Tenant), the liability of Tenant to Landlord for any monetary damages arising from any default by Tenant under the
terms of this Lease shall be limited to Landlord’s actual direct, but not consequential damages therefor. Nothing in this
Paragraph 12(k) shall affect or limit Landlord’s rights to file legal actions to recover possession of the Premises,
or for injunctive relief against Tenant, or any other non-monetary relief as provided in Paragraph 12.

 

13.               
ACCESS; CONSTRUCTION

 

(a)                
Landlord reserves from the leasehold estate hereunder, in addition to all other rights reserved by Landlord under this Lease,
the right to use the roof and exterior walls of the Premises and the area beneath, adjacent to and above the Premises. Landlord
also reserves the right to install, use, maintain, repair, replace and relocate equipment, machinery, meters, pipes, ducts, plumbing,
conduits and wiring through the Premises, which serve other portions of the Building or the Centre in a manner and in locations
which do not unreasonably interfere with Tenant’s use of the Premises. In addition, Landlord shall have free access to any
and all mechanical installations of Landlord or Tenant, including, without limitation, machine rooms, telephone rooms and electrical
closets. Tenant agrees that there shall be no construction of partitions or other obstructions which materially interfere with
or which threaten to materially interfere with Landlord’s free access thereto, or materially interfere with the moving of
Landlord’s equipment to or from the enclosures containing said installations.

 

(b)               
Landlord shall at all reasonable times, during normal business hours and after one (1) business day prior notice (except
in an emergency), have the right to enter the Premises to inspect the same, to supply janitorial service and any other service
to be provided by Landlord to Tenant hereunder, to exhibit the Premises to prospective purchasers, lenders or tenants (only in
the last twelve (12) months of the Lease Term), to post notices of non-responsibility, to alter, improve, restore, rebuild or repair
the Premises or any other portion of the Building, or to do any other act permitted or contemplated to be done by Landlord hereunder,
all without being deemed guilty of an eviction of Tenant and without liability for abatement of Rent or otherwise and provided
that for any entry into Tenant’s server or data room, Tenant shall have the right to accompany Landlord. For such purposes,
Landlord may also erect scaffolding and other necessary structures where reasonably required by the character of the work to be
performed. Landlord shall conduct all such inspections and/or improvements, alterations and repairs so as to minimize, to the extent
reasonably practical and without material additional expense to Landlord, any interruption of or interference with the business
of Tenant.

 

(c)                
For each of such purposes, Landlord shall at all times have and retain a key with which to unlock all of the doors in, upon
and about the Premises (excluding Tenant’s vaults and safes, access to which shall be provided by Tenant upon Landlord’s
reasonable request). Landlord shall have the right to use any and all means which Landlord may reasonably deem proper in an emergency
in order to obtain entry to the Premises or any portion thereof, and Landlord shall have the right, at any time during the Lease
Term, to provide whatever access control measures it deems reasonably necessary to the Centre, without any interruption or abatement
in the payment of Rent by Tenant. Any entry into the Premises obtained by Landlord by any of such means shall not under any circumstances
be construed to be a forcible or unlawful entry into, or a detainer of, the Premises, or any eviction of Tenant from the Premises
or any portion thereof. No provision of this Lease shall be construed as obligating Landlord to perform any repairs, Alterations
or decorations to the Premises or the Centre except as otherwise expressly agreed to be performed by Landlord pursuant to the provisions
of this Lease. Landlord shall use commercially reasonable efforts to minimize interference with Tenant’s use of or access
to the Premises in connection with the exercise of its rights under this Paragraph 13(c).

 

    	 	33	 

     

    

 

14.               
BANKRUPTCY

 

(a)                
If at any time on or before the Commencement Date there shall be filed by or against Tenant in any court, tribunal, administrative
agency or any other forum having jurisdiction, pursuant to any applicable law, either of the United States or of any state, a petition
in bankruptcy or insolvency or for reorganization or for the appointment of a receiver, trustee or conservator of all or a portion
of Tenant’s property, or if Tenant makes an assignment for the benefit of creditors, this Lease shall ipso facto be canceled
and terminated and in such event neither Tenant nor any person claiming through or under Tenant or by virtue of any applicable
law or by an order of any court, tribunal, administrative agency or any other forum having jurisdiction, shall be entitled to possession
of the Premises and Landlord, in addition to the other rights and remedies given by Paragraph 12 hereof or by virtue
of any other provision contained in this Lease or by virtue of any applicable law, may retain as damages any Rent, Security Deposit
or moneys received by it from Tenant or others on behalf of Tenant.

 

(b)               
If, after the Commencement Date, or if at any time during the term of this Lease, there shall be filed against Tenant in
any court, tribunal, administrative agency or any other forum having jurisdiction, pursuant to any applicable law, either of the
United States or of any state, a petition in bankruptcy or insolvency or for reorganization or for the appointment of a receiver,
trustee or conservator of all or a portion of Tenant’s property, and the same is not dismissed after sixty (60) calendar
days, or if Tenant makes an assignment for the benefit of creditors, this Lease, at the option of Landlord exercised within a reasonable
time after notice of the happening of any one or more of such events, may be canceled and terminated and in such event neither
Tenant nor any person claiming through or under Tenant or by virtue of any statute or of an order of any court shall be entitled
to possession or to remain in possession of the Premises, but shall forthwith quit and surrender the Premises, and Landlord, in
addition to the other rights and remedies granted by Paragraph 12 hereof or by virtue of any other provision contained
in this Lease or by virtue of any applicable law, may retain as damages any Rent, Security Deposit or moneys received by it from
Tenant or others on behalf of Tenant.

 

15.               
SUBSTITUTION OF PREMISES

 

Subject to the conditions specified in
this Paragraph 15, if, at any time during the Lease Term, the Premises contains less than 32,383 square feet of Rentable
Area, Landlord reserves the right without Tenant’s consent, on thirty (30) days’ prior written notice to Tenant, to
substitute other premises within the Centre for the Premises (the “Substituted Premises”). In each such case,
the substituted premises shall (a) contain at least substantially the same Rentable Area as the Premises, (b) contain
substantially similar tenant improvements, and (c) be made available to Tenant at the then current rental rate for such space;
(d) shall be on the 6th floor or higher in the Building; (e) contain stairwell signage option between floors if the Substituted
Premises are located on more than one (1) floor; and (f) have elevator exposure, which in no event, shall exceed the per square
foot rental rate for the Premises in effect under this Lease for the Premises at the time of such substitution. Landlord shall
pay all reasonable relocation expenses of Tenant incidental to such substitution of premises, including phone and data/cabling,
moving expenses, replenishment of Tenant’s existing stock of on-hand address-specific imprinted items, including letterhead.

 

16.               
SUBORDINATION; ATTORNMENT; ESTOPPEL CERTIFICATES

 

(a)                
Tenant agrees that this Lease and the rights of Tenant hereunder shall be subject and subordinate to any and all deeds to
secure debt, deeds of trust, security interests, mortgages, master leases, ground leases or other security documents and any and
all modifications, renewals, extensions, consolidations and replacements thereof (collectively, “Security Documents”)
which now or hereafter constitute a lien upon or affect the Property, the Building or the Premises. Such subordination shall be
effective without the necessity of the execution by Tenant of any additional document for the purpose of evidencing or effecting
such subordination. In addition, Landlord shall have the right to subordinate or cause to be subordinated any such Security Documents
to this Lease and in such case, in the event of the termination or transfer of Landlord’s estate or interest in the Property
by reason of any termination or foreclosure of any such Security Documents, Tenant shall, notwithstanding such subordination, attorn
to and become the Tenant of the successor-in-interest to Landlord at the option of such successor-in-interest. Furthermore, Tenant
shall within fifteen (15) days of written demand therefor execute any instruments or other documents which may be required
by Landlord or the holder of any Security Document and specifically shall execute, acknowledge and deliver within fifteen (15)
days of demand therefor a subordination of lease or subordination of deed of trust or mortgage, in the form required by the holder
of the Security Document requesting the document; the failure to do so by Tenant within such time period shall be a default hereunder;
provided, however, the new landlord or the holder of any Security Document shall agree that Tenant’s quiet enjoyment of the
Premises shall not be disturbed as long as Tenant is not in default under this Lease beyond any applicable notice and cure period.
Landlord shall use reasonable efforts to obtain a subordination, non-disturbance and attornment agreement from the holder of any
existing Security Document, and Landlord shall use reasonable efforts to obtain a subordination, non-disturbance and attornment
agreement from any future holder of a Security Document in a form reasonably acceptable to Tenant and such holder; however, Landlord’s
failure to obtain such agreement shall not constitute a default by Landlord hereunder or prohibit the mortgaging of the Building;
and further provided that any costs associated with obtaining such subordination, non-disturbance and attornment agreement shall
be paid by Tenant within 15 days after Landlord’s written request therefor.

 

    	 	34	 

     

    

 

(b)               
If any proceeding is brought for default under any ground or master lease to which this Lease is subject or in the event
of foreclosure or the exercise of the power of sale under any mortgage, deed of trust or other Security Document made by Landlord
covering the Premises, at the election of such ground lessor, master lessor or purchaser at foreclosure, Tenant shall attorn to
and recognize the same as Landlord under this Lease, provided such successor expressly agrees in writing to be bound to all future
obligations by the terms of this Lease, and if so requested, Tenant shall enter into a new lease with that successor on the same
terms and conditions as are contained in this Lease (for the unexpired term of this Lease then remaining). Tenant hereby waives
its rights under any current or future law which gives or purports to give Tenant any right to terminate or otherwise adversely
affect this Lease and the obligations of Tenant hereunder in the event of any such foreclosure proceeding or sale.

 

(c)                
Intentionally Omitted.

 

(d)               
Tenant shall, upon not less than ten (10) days’ prior notice by Landlord, execute, acknowledge and deliver to Landlord
a statement in writing certifying to those facts for which certification has been requested by Landlord or any current or prospective
purchaser, holder of any Security Document, ground lessor or master lessor, including, but without limitation, that (i) this
Lease is unmodified and in full force and effect (or if there have been modifications, that the same is in full force and effect
as modified and stating the modifications), (ii) the dates to which the Base Rent, Additional Rent and other charges hereunder
have been paid, if any, and (iii) whether or not to the best knowledge of Tenant, Landlord is in default in the performance
of any covenant, agreement or condition contained in this Lease and, if so, specifying each such default of which Tenant may have
knowledge. The form of the statement attached hereto as Exhibit D is hereby approved by Tenant for use pursuant
to this subparagraph (d); however, at Landlord’s option, Landlord shall have the right to use other forms for
such purpose. Tenant’s failure to execute and deliver such statement within such time shall, at the option of Landlord, constitute
a default under this Lease and, in any event, shall be conclusive upon Tenant that this Lease is in full force and effect without
modification except as may be represented by Landlord in any such certificate prepared by Landlord and delivered to Tenant for
execution. Any statement delivered pursuant to this Paragraph 16 may be relied upon by any prospective purchaser of
the fee of the Building or the Property or any mortgagee, ground lessor or other like encumbrances thereof or any assignee of any
such encumbrance upon the Building or the Property.

 

17.               
SALE BY LANDLORD; TENANT’S REMEDIES; NONRECOURSE LIABILITY

 

(a)                
In the event of a sale or conveyance by Landlord of the Building or the Property, Landlord shall be released from any and
all liability under this Lease, provided that such new owner assumes all of Landlord’s obligations hereunder. If the Security
Deposit has been deposited by Tenant to Landlord prior to such sale or conveyance, Landlord shall transfer the Security Deposit
to the purchaser, and upon delivery to Tenant of notice thereof, Landlord shall be discharged from any further liability in reference
thereto.

 

(b)               
Landlord shall not be in default of any obligation of Landlord hereunder unless Landlord fails to perform any of its obligations
under this Lease within thirty (30) days after receipt of written notice of such failure from Tenant; provided, however, that
if the nature of Landlord’s obligation is such that more than thirty (30) days are required for its performance, Landlord
shall not be in default if Landlord commences to cure such default within the thirty (30) day period and thereafter diligently
prosecutes the same to completion. All obligations of Landlord under this Lease will be binding upon Landlord only during the period
of its ownership of the Property and not thereafter. All obligations of Landlord hereunder shall be construed as covenants, not
conditions; and, except as may be otherwise expressly provided in this Lease, Tenant may not terminate this Lease for breach of
Landlord’s obligations hereunder.

 

    	 	35	 

     

    

 

(c)                
Notwithstanding anything contained in this Lease to the contrary, the obligations of Landlord under this Lease (including
any actual or alleged breach or default by Landlord) do not constitute personal obligations of the individual partners, directors,
officers, trustees, members or shareholders of Landlord or Landlord’s members or partners, and Tenant shall not seek recourse
against the individual partners, directors, officers, trustees, members or shareholders of Landlord or against Landlord’s
members or partners or against any other persons or entities having any interest in Landlord, or against any of their personal
assets for satisfaction of any liability with respect to this Lease. Any liability of Landlord for a default by Landlord under
this Lease, or a breach by Landlord of any of its obligations under the Lease, shall be limited solely to its interest in the Property,
and in no event shall any personal liability be asserted against Landlord in connection with this Lease nor shall any recourse
be had to any other property or assets of Landlord, its partners, directors, officers, trustees, members, shareholders or any other
persons or entities having any interest in Landlord. Tenant’s sole and exclusive remedy for a default or breach of this Lease
by Landlord shall be either (i) an action for damages, or (ii) an action for injunctive relief; Tenant hereby waiving
and agreeing that Tenant shall have no offset rights or right to terminate this Lease on account of any breach or default by Landlord
under this Lease. Under no circumstances whatsoever shall Landlord ever be liable for punitive, consequential or special damages
under this Lease and Tenant waives any rights it may have to such damages under this Lease in the event of a breach or default
by Landlord under this Lease.

 

(d)               
As a condition to the effectiveness of any notice of default given by Tenant to Landlord, Tenant shall also concurrently
give such notice under the provisions of Paragraph 17(b) to each beneficiary under a Security Document encumbering
the Property of whom Tenant has received written notice (such notice to specify the address of the beneficiary). In the event Landlord
shall fail to cure any breach or default within the time period specified in subparagraph (b), then prior to the pursuit
of any remedy therefor by Tenant, each such beneficiary shall have an additional thirty (30) days within which to cure such
default, or if such default cannot reasonably be cured within such period, then each such beneficiary shall have such additional
time as shall be necessary to cure such default, provided that within such thirty (30) day period, such beneficiary has promptly
commenced and is diligently pursuing the remedies available to it which are necessary to cure such default (including, without
limitation, as appropriate, commencement of foreclosure proceedings).

 

18.               
PARKING; ENTRY CARDS

 

(a)                
Tenant shall have the right to the nonexclusive use of the number of parking spaces located in the parking areas of the
Centre specified in Item 13 of the Basic Lease Provisions for the parking of operational motor vehicles used by Tenant,
its officers and employees only. Landlord reserves the right, at any time upon written notice to Tenant, to designate the location
of Tenant’s parking spaces as determined by Landlord in its reasonable discretion. The use of such spaces shall be subject
to the rules and regulations adopted by Landlord from time to time for the use of the parking areas. Landlord further reserves
the right to make such changes to the parking system as Landlord may reasonably deem necessary or reasonable from time to time;
i.e., Landlord may provide for one or a combination of parking systems, including, without limitation, self-parking, single or
double stall parking spaces, and valet assisted parking. Except as otherwise expressly agreed to in this Lease, Tenant agrees that
Tenant, its officers and employees shall not be entitled to park in any reserved or specially assigned areas designated by Landlord
from time to time in the Centre’s parking areas. Landlord may require execution of an agreement with respect to the use of
such parking areas by Tenant and/or its officers and employees in form reasonably satisfactory to Landlord as a condition of any
such use by Tenant, its officers and employees. A default by Tenant, its officers or employees in the payment of such charges,
the compliance with such rules and regulations, or the performance of such agreement(s) shall constitute a default by Tenant hereunder.
Tenant shall not permit or allow any vehicles that belong to or are controlled by Tenant or Tenant’s officers, employees,
suppliers, shippers, customers or invitees to be loaded, unloaded or parked in areas other than those designated by Landlord for
such activities. If Tenant permits or allows any of the prohibited activities described in this Paragraph, then Landlord shall
have the right, without notice, in addition to such other rights and remedies that it may have, to remove or tow away the vehicle
involved and charge the cost to Tenant, which cost shall be immediately payable upon demand by Landlord.

 

(b)               
Landlord shall be entitled to utilize whatever access device Landlord deems necessary (including but not limited to the
issuance of parking stickers or access cards), to assure that only those persons who have contracted to use spaces in a parking
garage located in or about the Centre (the “Parking Garage”) are using the parking spaces therein. Landlord
currently limits access to the Parking Garage through the use of a parking entry card system, the cards for which shall be provided
by Landlord. These cards are different from and do not, without a specific request from Tenant, entitle the holder thereof to an
after-hours entry card to the Building (pursuant to the terms of Paragraph 18(c). Prior to the Commencement Date, Landlord,
at Landlord’s sole cost, agrees to provide to Tenant two hundred fifty-one (251) parking entry cards. Tenant further agrees
to surrender all parking entry cards in its possession upon the expiration or earlier termination of this Lease. Landlord shall
be entitled to cancel any lost or stolen cards of which it becomes aware. Tenant shall promptly notify Landlord of any lost or
stolen cards. Tenant shall pay Landlord for each additional card(s) or for each replacement card(s) for any card(s) lost by or
stolen from Tenant, in such amount as Landlord shall, from time to time determine, the present charge for such lost or stolen cards
being $50.00 per card. Tenant acknowledges that the parking entry card may also be the same as the master entry card used for access
to the Building during other than normal business hours, and to the extent the cards are the same, agrees that the provisions of
Paragraph 18(c) shall also be applicable. In the event Tenant, its agents or employees wrongfully park in any of the Parking
Garage's spaces, Landlord shall be entitled and is hereby authorized to have any such vehicle towed away, at Tenant's sole risk
and expense, and Landlord is further authorized to impose upon Tenant a penalty of $25.00 for each such occurrence. Tenant hereby
agrees to pay all amounts falling due hereunder within thirty (30) days after written demand by Landlord, and the failure to pay
any such amount shall additionally be deemed an event of default hereunder and under the Lease, entitling Landlord to all of its
rights and remedies hereunder and thereunder.

 

    	 	36	 

     

    

 

(c)                
Landlord shall provide limited access to the Building before and after normal business hours in the form of special limited
access entry cards ("Entry Cards") for Tenant and its employees. An Entry Card shall not automatically qualify
Tenant or any of its employees for an access card to the Parking Garage. Prior to the Commencement Date, Landlord, at Landlord’s
sole cost, agrees to provide Tenant with up to, but not in excess of, two hundred fifty-one (251) Entry Cards. However, Tenant
shall pay Landlord for any additional or replacement cards, in such amount as Landlord shall, from time to time, determine. The
current cost required for a replacement card and an additional card is $50.00 per card. Landlord shall be entitled to cancel (by
computer entry) any lost or stolen cards of which it becomes aware. Tenant shall promptly notify Landlord of any lost or stolen
cards. Landlord shall have no liability to Tenant, its employees, agents, invitees, or licensees for losses due to theft or burglary,
or for damages committed by unauthorized persons on the Premises; and neither shall Landlord be required to insure against any
such losses. Tenant shall cooperate fully in Landlord's efforts to maintain security in the Building and shall follow all regulations
promulgated by Landlord with respect thereto. Tenant further agrees to surrender all Entry Cards in its possession upon the expiration
or earlier termination of this Lease.

 

19.               
COMMON AREAS

 

(a)                
Subject to subparagraph (b) below and the remaining provisions of this Lease, Tenant shall have the non-exclusive
right, in common with others, to the use of such entrances, lobbies, fire vestibules, restrooms (excluding restrooms on any full
floors leased by a tenant), mechanical areas, ground floor corridors, elevators and elevator foyers, electrical and janitorial
closets, telephone and equipment rooms, loading and unloading areas, the Property’s plaza areas, if any, ramps, drives, stairs,
and similar access ways and service ways and other common areas and facilities in and adjacent to the Building and the Property
as are designated from time to time by Landlord for the general nonexclusive use of Landlord, Tenant and the other tenants of the
Property and their respective employees, agents, representatives, licensees and invitees (“Common Areas”). The
use of such Common Areas shall be subject to the rules and regulations contained herein and the provisions of any covenants, conditions
and restrictions affecting the Building or the Property. Tenant shall keep all of the Common Areas free and clear of any obstructions
created or permitted by Tenant or resulting from Tenant’s operations, and shall use the Common Areas only for normal activities,
parking and ingress and egress by Tenant and its employees, agents, representatives, licensees and invitees to and from the Premises,
the Building or the Property. If, in the reasonable opinion of Landlord, unauthorized persons are using the Common Areas by reason
of the presence of Tenant in the Premises, Tenant, upon demand of Landlord, shall correct such situation by appropriate action
or proceedings against all such unauthorized persons. Nothing herein shall affect the rights of Landlord at any time to remove
any such unauthorized persons from said areas or to prevent the use of any of said areas by unauthorized persons. Landlord reserves
the right to make such changes, alterations, additions, deletions, improvements, repairs or replacements in or to the Building,
the Property (including the Premises), the Centre and the Common Areas as Landlord may reasonably deem necessary or desirable,
including, without limitation, constructing new buildings and making changes in the location, size, shape and number of driveways,
entrances, parking spaces, parking areas, loading areas, landscaped areas and walkways; provided, however, that (i) there
shall be no unreasonable permanent obstruction of access to or use of the Premises resulting therefrom and the same shall not materially
increase Tenant’s obligations or materially impair its rights hereunder, and (ii) Landlord shall use commercially reasonable
efforts to minimize any interruption with Tenant’s use of the Premises. Notwithstanding any provision of this Lease to the
contrary, the Common Areas shall not in any event be deemed to be a portion of or included within the Premises leased to Tenant
and the Premises shall not be deemed to be a portion of the Common Areas. This Lease is granted subject to the terms hereof, the
rights and interests of third parties under existing liens, ground leases, easements and encumbrances affecting such property,
all zoning regulations, rules, ordinances, building restrictions and other laws and regulations now in effect or hereafter adopted
by any governmental authority having jurisdiction over the Property or any part thereof.

 

    	 	37	 

     

    

 

(b)               
Notwithstanding any provision of this Lease to the contrary, Landlord specifically reserves the right to redefine the terms
“Centre” and “Property” for purposes of allocating and calculating Operating Expenses so
as to include or exclude areas as Landlord shall from time to time determine or specify (and any such determination or specification
shall be without prejudice to Landlord’s right to revise thereafter such determination or specification). In addition, Landlord
shall have the right to contract or otherwise arrange for amenities, services or utilities (the cost of which is included within
Operating Expenses) to be on a common or shared basis to both the Property (i.e., the area with respect to which Operating Expenses
are determined) and other portions of the Centre, so long as the basis on which the cost of such amenities, services or utilities
is allocated to the Property is determined on an arms-length basis or some other basis reasonably determined by Landlord and provided,
however, that there shall not be a material increase in Tenant’s costs or obligations hereunder as a result thereof. In the
case where the definition of the Property or the Centre is revised for purposes of the allocation or determination of Operating
Expenses, Tenant’s Proportionate Share shall be appropriately revised. The Rentable Area of the Property and the Centre is
subject to adjustment by Landlord from time to time to reflect any remeasurement thereof by Landlord’s architect, at Landlord’s
request, and/or as a result of any additions or deletions to any of the buildings in the Centre as designated by Landlord. Landlord
shall have the sole right to determine which portions of the Centre and other areas, if any, shall be served by common management,
operation, maintenance and repair. Landlord shall have the exclusive rights to the airspace above and around, and the subsurface
below, the Premises and other portions of the Building and the Centre.

 

20.               
MISCELLANEOUS

 

(a)                
Attorneys’ Fees. In the event of any legal action or proceeding brought by either party against the other arising
out of this Lease, the prevailing party shall be entitled to recover reasonable attorneys’ fees and costs (including, without
limitation, court costs and expert witness fees) incurred in such action. Such amounts shall be included in any judgment rendered
in any such action or proceeding.

 

(b)               
Waiver. No waiver by Landlord of any provision of this Lease or of any breach by Tenant hereunder shall be deemed
to be a waiver of any other provision hereof, or of any subsequent breach by Tenant. Landlord’s consent to or approval of
any act by Tenant requiring Landlord’s consent or approval under this Lease shall not be deemed to render unnecessary the
obtaining of Landlord’s consent to or approval of any subsequent act of Tenant. No act or thing done by Landlord or Landlord’s
agents during the term of this Lease shall be deemed an acceptance of a surrender of the Premises, unless in writing signed by
Landlord. The delivery of the keys to any employee or agent of Landlord shall not operate as a termination of the Lease or a surrender
of the Premises. The acceptance of any Rent by Landlord following a breach of this Lease by Tenant shall not constitute a waiver
by Landlord of such breach or any other breach unless such waiver is expressly stated in a writing signed by Landlord.

 

(c)                
Notices. Any notice, demand, request, consent, approval, disapproval or certificate (“Notice”)
required or desired to be given under this Lease shall be in writing and given by certified mail, return receipt requested, by
personal delivery or by a nationally recognized overnight delivery service (such as Federal Express or UPS) providing a receipt
for delivery. Notices may not be given by facsimile. The date of giving any Notice shall be deemed to be the date upon which delivery
is actually made by one of the methods described in this Section 20(c) (or attempted if said delivery is refused or
rejected). If a Notice is received on a Saturday, Sunday or legal holiday, it shall be deemed received on the next business day.
All notices, demands, requests, consents, approvals, disapprovals, or certificates shall be addressed at the address specified
in Item 14 of the Basic Lease Provisions or to such other addresses as may be specified by written notice from Landlord
to Tenant and if to Tenant, at the Premises. Either party may change its address by giving reasonable advance written Notice of
its new address in accordance with the methods described in this Paragraph; provided, however, no notice of either party’s
change of address shall be effective until fifteen (15) days after the addressee’s actual receipt thereof. For the purpose
of this Lease, Landlord or Tenant’s counsel may provide Notices to Landlord or Tenant on behalf of Landlord or Tenant and
such notices shall be binding on the other party as if such notices have been provided directly by Landlord or Tenant.

 

    	 	38	 

     

    

 

(d)               
Access Control. Landlord shall be the sole determinant of the type and amount of any access control or courtesy guard
services to be provided to the Property, if any. IN ALL EVENTS, LANDLORD SHALL NOT BE LIABLE TO TENANT, AND TENANT HEREBY WAIVES
ANY CLAIM AGAINST LANDLORD, FOR (I) ANY UNAUTHORIZED OR CRIMINAL ENTRY OF THIRD PARTIES INTO THE PREMISES, THE BUILDING, THE
PROPERTY OR THE CENTRE, (II) ANY DAMAGE TO PERSONS, OR (III) ANY LOSS OF PROPERTY IN AND ABOUT THE PREMISES, THE BUILDING,
THE PROPERTY OR THE CENTRE, BY OR FROM ANY UNAUTHORIZED OR CRIMINAL ACTS OF THIRD PARTIES, REGARDLESS OF ANY ACTION, INACTION,
FAILURE, BREAKDOWN, MALFUNCTION AND/OR INSUFFICIENCY OF THE ACCESS CONTROL OR COURTESY GUARD SERVICES PROVIDED BY LANDLORD, IF
ANY, EXCEPT TO THE EXTENT ARISING DUE TO THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF THE LANDLORD PARTIES. Tenant shall provide
such supplemental security services and shall install within the Premises such supplemental security equipment, systems and procedures
as may reasonably be required for the protection of its employees and invitees, provided that Tenant shall coordinate such services
and equipment with any security provided by Landlord. The determination of the extent to which such supplemental security equipment,
systems and procedures are reasonably required shall be made in the sole judgment, and shall be the sole responsibility, of Tenant.
Tenant acknowledges that it has neither received nor relied upon any representation or warranty made by or on behalf of Landlord
with respect to the safety or security of the Premises or the Property or any part thereof or the extent or effectiveness of any
security measures or procedures now or hereafter provided by Landlord, and further acknowledges that Tenant has made its own independent
determinations with respect to all such matters.

 

(e)                
Storage. Any storage space at any time leased to Tenant hereunder shall be used exclusively for storage. Notwithstanding
any other provision of this Lease to the contrary, (i) Landlord shall have no obligation to provide heating, cleaning, water
or air conditioning therefor, and (ii) Landlord shall be obligated to provide to such storage space only such electricity
as will, in Landlord’s judgment, be adequate to light said space as storage space.

 

(f)                 
Holding Over. If Tenant retains possession of the Premises after the termination or expiration of the Lease Term,
then Tenant shall, at Landlord's election become a tenant at sufferance (and not a tenant at will), such possession shall be subject
to immediate termination by Landlord at any time, and all of the other terms and provisions of this Lease (excluding any expansion
or renewal option or other similar right or option) shall be applicable during such holdover period, except that Tenant shall pay
Landlord from time to time, upon demand, as Base Rent for the first three (3) months of the holdover period, an amount equal to
one hundred twenty-five percent (125%) the Base Rent in effect at the expiration date, and, thereafter, one hundred fifty percent
(150%) of the Base Rent in effect at the expiration date, in each case computed on a monthly basis for each month or part thereof
during such holding over. All other payments (including payment of Additional Rent) shall continue under the terms of this Lease.
If any unauthorized holding over continues for more than 90 days after the expiration or termination of this Lease and such holding
over delays or prevents Landlord from delivering possession of all or a part of the Premises to another tenant or from commencing
work to make all or part of the Premises available to another tenant, Tenant shall be liable for all damages incurred by Landlord
as a result of such holding over. No holding over by Tenant, whether with or without consent of Landlord, shall operate to extend
this Lease except as otherwise expressly provided, and this Paragraph shall not be construed as consent for Tenant to retain possession
of the Premises.

 

(g)               
Condition of Premises. EXCEPT AS OTHERWISE EXPRESSLY PROVIDED IN THIS LEASE, LANDLORD HEREBY DISCLAIMS ANY EXPRESS
OR IMPLIED REPRESENTATION OR WARRANTY THAT THE PREMISES ARE SUITABLE FOR TENANT’S INTENDED PURPOSE OR USE, WHICH DISCLAIMER
IS HEREBY ACKNOWLEDGED BY TENANT. THE TAKING OF POSSESSION BY TENANT SHALL BE CONCLUSIVE EVIDENCE THAT TENANT:

 

(i)                 
ACCEPTS THE PREMISES, THE BUILDING AND LEASEHOLD IMPROVEMENTS AS SUITABLE FOR THE PURPOSES FOR WHICH THE PREMISES WERE LEASED;

 

    	 	39	 

     

    

 

(ii)               
ACCEPTS THE PREMISES, THE BUILDING AND THE CENTRE AS BEING IN GOOD AND SATISFACTORY CONDITION, EXCEPT FOR LATENT DEFECTS
IDENTIFIED TO LANDLORD IN WRITING WITHIN 180 DAYS FOLLOWING THE POSSESSION DATE AND AS OTHERWISE PROVIDED HEREIN;

 

(iii)             
WAIVES ANY DEFECTS IN THE PREMISES AND ITS APPURTENANCES EXISTING NOW OR IN THE FUTURE, EXCEPT THAT TENANT’S TAKING
OF POSSESSION SHALL NOT BE DEEMED TO WAIVE LANDLORD’S COMPLETION OF MINOR FINISH WORK ITEMS THAT DO NOT INTERFERE WITH TENANT’S
OCCUPANCY OF THE PREMISES OR AS A WAIVER OF LANDLORD’S REPAIR, MAINTENANCE AND REPLACEMENT OBLIGATIONS HEREUNDER; AND

 

(iv)              
WAIVES ALL CLAIMS BASED ON ANY IMPLIED WARRANTY OF SUITABILITY OR HABITABILITY.

 

(h)               
Quiet Possession. Provided that no default has occurred and remains uncured beyond any applicable notice and cure
period, Tenant shall have quiet possession of the Premises for the term hereof without hindrance or ejection by any person lawfully
claiming under Landlord, subject to the provisions of this Lease and to the provisions of any (i) covenants, conditions and
restrictions, (ii) master lease, or (iii) Security Documents to which this Lease is subordinate or may be subordinated.

 

(i)                 
Matters of Record. Except as otherwise provided herein, this Lease and Tenant’s rights hereunder are subject
and subordinate to all matters affecting Landlord’s title to the Property recorded in the Real Property Records of the County
in which the Property is located, prior to and subsequent to the date hereof, including, without limitation, all covenants, conditions
and restrictions. Tenant agrees for itself and all persons in possession or holding under it that it will comply with and not violate
any such covenants, conditions and restrictions or other matters of record. Landlord reserves the right, from time to time, to
grant such easements, rights and dedications as Landlord reasonably deems necessary or desirable, and to cause the recordation
of parcel maps and covenants, conditions and restrictions affecting the Premises, the Building or the Centre, as long as such easements,
rights, dedications, maps, and covenants, conditions and restrictions do not materially interfere with the use, occupancy of and
access to and from the Premises by Tenant. At Landlord’s request, Tenant shall join in the execution of any of the aforementioned
documents.

 

(j)                 
Successors and Assigns. Except as otherwise provided in this Lease, all of the covenants, conditions and provisions
of this Lease shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, personal representatives,
successors and assigns. Tenant shall attorn to each purchaser, successor or assignee of Landlord.

 

(k)               
Brokers. Tenant warrants that it has had no dealings with any real estate broker or agent in connection with the
negotiation of this Lease, excepting only the brokers named in Item 12 of the Basic Lease Provisions and that it knows
of no other real estate broker or agent who is or might be entitled to a commission in connection with this Lease. Tenant hereby
agrees to indemnify, defend and hold Landlord harmless for, from and against all claims for any brokerage commissions, finders’
fees or similar payments by any persons other than those listed in Item 12 of the Basic Lease Provisions and all costs,
expenses and liabilities incurred in connection with such claims, including reasonable attorneys’ fees and costs. Landlord
warrants that it has had no dealings with any real estate broker or agent in connection with the negotiation of this Lease, excepting
only the brokers named in Item 12 of the Basic Lease Provisions and that it knows of no other real estate broker or agent
who is or might be entitled to a commission in connection with this Lease. Landlord hereby agrees to indemnify, defend and hold
Tenant harmless the other party from and against all claims for any brokerage commissions, finders’ fees or similar payments
by any persons claiming a commission through Landlord and all costs, expenses and liabilities incurred in connection with such
claims, including reasonable attorneys’ fees and costs.

 

(l)                 
Centre or Building Name and Signage. Landlord shall have the right at any time to install, affix and maintain any
and all signs on the exterior and on the interior of the Centre or Building as Landlord may, in Landlord’s sole discretion,
desire. Tenant shall not use the name of the Centre or Building or use pictures or illustrations of the Centre or Building in advertising
or other publicity or for any purpose other than as the address of the business to be conducted by Tenant in the Premises, without
the prior written consent of Landlord. Additionally, Landlord shall have the exclusive right at all times during the Lease Term
to change, modify, add to or otherwise alter the name, number, or designation of the Building and/or the Centre, and Landlord shall
not be liable for claims or damages of any kind which may be attributed thereto or result therefrom.

 

    	 	40	 

     

    

 

(m)              
Examination of Lease. Submission of this instrument for examination or signature by Tenant does not constitute a
reservation of or option for lease, and it is not effective as a lease or otherwise until execution by and delivery to both Landlord
and Tenant.

 

(n)               
Time. Time is of the essence of this Lease and each and all of its provisions.

 

(o)               
Defined Terms and Marginal Headings. The words “Landlord” and “Tenant” as used herein shall
include the plural as well as the singular and for purposes of Articles 5, 7, 13 and 19, the term Landlord shall
include Landlord, its employees, contractors and agents. The marginal headings and titles to the articles of this Lease are not
a part of this Lease and shall have no effect upon the construction or interpretation of any part hereof.

 

(p)               
Conflict of Laws; Prior Agreements; Separability. This Lease shall be governed by and construed pursuant to the laws
of the State. This Lease contains all of the agreements of the parties hereto with respect to any matter covered or mentioned in
this Lease. No prior agreement, understanding or representation pertaining to any such matter shall be effective for any purpose.
No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto or their respective
successors in interest. The illegality, invalidity or unenforceability of any provision of this Lease shall in no way impair or
invalidate any other provision of this Lease, and such remaining provisions shall remain in full force and effect.

 

(q)               
Authority. If Tenant is a corporation or limited liability company, each individual executing this Lease on behalf
of Tenant hereby covenants and warrants that Tenant is a duly authorized and existing corporation or limited liability company,
that Tenant has and is qualified to do business in the State, that the corporation or limited liability company has full right
and authority to enter into this Lease, and that each person signing on behalf of the corporation is authorized to do so. If Tenant
is a partnership or trust, each individual executing this Lease on behalf of Tenant hereby covenants and warrants that he is duly
authorized to execute and deliver this Lease on behalf of Tenant in accordance with the terms of such entity’s partnership
or trust agreement. Tenant shall provide Landlord on demand with such evidence of such authority as Landlord shall reasonably request,
including, without limitation, resolutions, certificates and opinions of counsel. This Lease shall not be construed to create a
partnership, joint venture or similar relationship or arrangement between Landlord and Tenant hereunder.

 

(r)                 
Joint and Several Liability. If two or more individuals, corporations, partnerships or other business associations
(or any combination of two or more thereof) shall sign this Lease as Tenant, the liability of each such individual, corporation,
partnership or other business association to pay Rent and perform all other obligations hereunder shall be deemed to be joint and
several, and all notices, payments and agreements given or made by, with or to any one of such individuals, corporations, partnerships
or other business associations shall be deemed to have been given or made by, with or to all of them. In like manner, if Tenant
shall be a partnership or other business association, the members of which are, by virtue of statute or federal law, subject to
personal liability, then the liability of each such member shall be joint and several.

 

(s)                
Rental Allocation. For purposes of Section 467 of the Internal Revenue Code of 1986, as amended from time to time,
Landlord and Tenant hereby agree to allocate all Rent to the period in which payment is due, or if later, the period in which Rent
is paid.

 

(t)                 
Rules and Regulations. Tenant agrees to comply with all rules and regulations of the Building and the Centre imposed
by Landlord as set forth on Exhibit C attached hereto, as the same may be changed from time to time upon reasonable
notice to Tenant (collectively, the “Rules and Regulations”), provided that such Rules and Regulations, and such additional
Rules and Regulations as Landlord may adopt from time to time, are adopted by Landlord in a reasonable, non-discriminatory manner,
are enforced in a non-discriminatory manner, and do not materially and adversely interfere with Tenant’s use, occupancy or
access to the Premises, including, without limitation, parking or materially increase Tenant’s obligations or impair Tenant’s
rights under this Lease. Landlord shall not be liable to Tenant for the failure of any other tenant or any of its assignees, subtenants,
or their respective agents, employees, representatives, invitees or licensees to conform to such Rules and Regulations.

 

    	 	41	 

     

    

 

(u)               
Joint Product. This Agreement is the result of arms-length negotiations between Landlord and Tenant and their respective
attorneys. Accordingly, neither party shall be deemed to be the author of this Lease and this Lease shall not be construed against
either party.

 

(v)               
Financial Statements. Upon Landlord’s written request, Tenant shall promptly furnish Landlord, from time to
time, with the most current audited financial statements prepared in accordance with generally accepted accounting principles,
certified by Tenant to be true and correct, reflecting Tenant’s then current financial condition.

 

(w)              
Force Majeure. Any prevention, delay or stoppage due to strikes, lockouts, labor disputes, acts of God, acts of war,
terrorism, terrorist activities, inability to obtain services, labor, or materials or reasonable substitutes therefore, governmental
actions, civil commotions, fire, flood, earthquake or other casualty, and other causes beyond the reasonable control of the party
obligated to perform, except with respect to the obligations imposed with regard to Rent and other charges to be paid by Tenant
pursuant to this Lease and except as to Tenant’s obligations under Article 6 and Article 8 of this
Lease and Section 20(f) of this Lease (collectively, a “Force Majeure”), notwithstanding anything
to the contrary contained in this Lease, shall excuse the performance of such party for a period equal to any such prevention,
delay or stoppage and, therefore, if this Lease specifies a time period for performance of an obligation of either party, that
time period shall be extended by the period of any delay in such party’s performance caused by a Force Majeure.

 

(x)               
Counterparts. This Lease may be executed in several counterparts, each of which shall be deemed an original, and
all of which shall constitute but one and the same instrument.

 

(y)               
APPRAISED VALUE. TENANT HEREBY WAIVES ALL RIGHTS TO PROTEST THE APPRAISED VALUE OF THE PROPERTY OR TO APPEAL THE
SAME AND ALL RIGHTS TO RECEIVE NOTICES OF REAPPRAISALS AS SET FORTH IN SECTIONS 41.413 AND 42.015 OF THE TEXAS TAX CODE.

 

(z)                
DECEPTIVE TRADE PRACTICES. TENANT HEREBY WAIVES ALL ITS RIGHTS UNDER THE DECEPTIVE TRADE PRACTICES – CONSUMER
PROTECTION ACT, SECTION 17.41 ET. SEQ. OF THE TEXAS BUSINESS AND COMMERCE CODE, A LAW THAT GIVES CONSUMERS SPECIAL RIGHTS
AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF TENANT’S OWN SELECTION, TENANT VOLUNTARILY CONSENTS TO THIS WAIVER.

 

(aa)             
Waiver of Right to Jury Trial. Landlord and Tenant waive their respective
rights to trial by jury of any contract or tort claim, counterclaim, cross-complaint, or cause of action in any action, proceeding,
or hearing brought by either party against the other on any matter arising out of or in any way connected with this Lease, the
relationship of Landlord and Tenant, or Tenant’s use or occupancy of the Premises, including without limitation any claim
of injury or damage or the enforcement of any remedy under any current or future law, statute, regulation, code, or ordinance.

 

(bb)            
Office and Communications Services. Landlord has advised Tenant that certain office and communications services may
be offered to tenants of the Building by a concessionaire under contract to Landlord (“Provider”). Tenant shall
be permitted to contract with Provider for the provision of any or all of such services on such terms and conditions as Tenant
and Provider may agree. Tenant acknowledges and agrees that: (i) Landlord has made no warranty or representation to Tenant
with respect to the availability of any such services, or the quality, reliability or suitability thereof; (ii) the Provider
is not acting as the agent or representative of Landlord in the provision of such services, and Landlord shall have no liability
or responsibility for any failure or inadequacy of such services, or any equipment or facilities used in the furnishing thereof,
or any act or omission of Provider, or its agents, employees, representatives, officers or contractors; (iii) Landlord shall
have no responsibility or liability for the installation, alteration, repair, maintenance, furnishing, operation, adjustment or
removal of any such services, equipment or facilities; and (iv) any contract or other agreement between Tenant and Provider
shall be independent of this Lease, the obligations of Tenant hereunder, and the rights of Landlord hereunder, and, without limiting
the foregoing, no default or failure of Provider with respect to any such services, equipment or facilities, or under any contract
or agreement relating thereto, shall have any effect on this Lease or give to Tenant any offset or defense to the full and timely
performance of its obligations hereunder, or entitle Tenant to any abatement of rent or additional rent or any other payment required
to be made by Tenant hereunder, or constitute any accrual or constructive eviction of Tenant, or otherwise give rise to any other
claim of any nature against Landlord.

 

    	 	42	 

     

    

 

(cc)             
OFAC Compliance.

 

(i)                 
Certification. Tenant certifies, represents, warrants and covenants that:

 

(A)              
It is not acting and will not act, 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

 

(B)              
It is not engaged in this transaction, directly or indirectly on behalf of, or instigating or facilitating this transaction,
directly or indirectly on behalf of, any such person, group, entity or nation.

 

(ii)               
Indemnity. Tenant hereby agrees to defend (with counsel reasonably acceptable to Landlord), indemnify and hold harmless
Landlord and the Landlord Indemnitees from and against any and all Claims arising from or related to any such breach of the foregoing
certifications, representations, warranties and covenants.

 

(dd)            
No Easement for Light, Air and View. This Lease conveys to Tenant no rights for any light, air or view. No diminution
of light, air or view, or any impairment of the visibility of the Premises from inside or outside the Building, by any structure
or other object that may hereafter be erected (whether or not by Landlord) shall entitle Tenant to any reduction of Rent under
this Lease, constitute an actual or constructive eviction of Tenant, result in any liability of Landlord to Tenant, or in any other
way affect this Lease or Tenant’s obligations hereunder.

 

(ee)             
Non-Disclosure of Lease Terms. Tenant agrees that the terms of this Lease are confidential and constitute proprietary
information of Landlord, and that disclosure of the terms hereof could adversely affect the ability of Landlord to negotiate with
other tenants. Tenant hereby agrees that Tenant and its partners, officers, directors, employees, agents, real estate brokers and
sales persons and attorneys shall not disclose the terms of this Lease to any other person 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 this Lease. Neither party shall issue or make any public announcement,
press release or other public disclosure regarding this Lease 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 thereon.

 

(ff)              
Inducement Recapture in Event of Default. Any agreement by Landlord for free or abated rent (the “Inducement
Provisions”) shall be deemed conditioned upon Tenant’s full and faithful performance of all of the terms, covenants
and conditions of this Lease to be performed or observed by Tenant during the term hereof as the same may be extended. Upon the
occurrence of an event of default (as defined in Paragraph 12) of this Lease by Tenant and Landlord’s election
to terminate this Lease as a result thereof, any such Inducement Provision shall automatically be deemed deleted from this Lease
and of no further force or effect, and the unamortized portion of any free or abated rent given or paid by Landlord under such
an Inducement Provision shall be immediately due and payable by Tenant to Landlord, and recoverable by Landlord, as additional
rent due under this Lease. The acceptance by Landlord of rent or the cure of the event of default which initiated the operation
of this Paragraph 20(ff) shall not be deemed a waiver by Landlord of the provisions of this Paragraph 20(ff)
unless specifically so stated in writing by Landlord at the time of such acceptance.

 

    	 	43	 

     

    

 

(gg)            
ERISA. Tenant is not an “employee benefit plan” as defined in Section 3(3) of the Employee Retirement
Income Security Act of 1974 (“ERISA”), which is subject to Title I of ERISA, or a “plan” as defined
in Section 4975(e)(1) of the Internal Revenue Code of 1986, which is subject to Section 4975 of the Internal Revenue Code
of 1986; and (b) the assets of Tenant do not constitute “plan assets” of one or more such plans for purposes of
Title I of ERISA or Section 4975 of the Internal Revenue Code of 1986; and (c) Tenant is not a “governmental plan”
within the meaning of Section 3(32) of ERISA, and assets of Tenant do not constitute plan assets of one or more such plans; or
(d) transactions by or with Tenant are not in violation of state statutes applicable to Tenant regulating investments of and
fiduciary obligations with respect to governmental plans.

 

(hh)            
Limitation on Liability. Notwithstanding anything contained in this Lease or in any other document executed in connection
with the transaction contemplated hereby to the contrary and without limitation of Paragraph 17(c) hereof, any liability
of Landlord shall be satisfied solely from Landlord's equity interest in the Property and in no event against any other assets
of the Landlord, or Landlord's officers or directors. The provisions of this Paragraph 20(hh) will survive the expiration
or earlier termination of this Lease.

 

(ii)               
Conference Center. Subject to availability and Landlord’s policies and procedures in connection therewith,
during the Lease Term, Tenant may utilize the Centre’s Tenant Conference Center up to two (2) days per month, at no additional
cost to Tenant; however, Tenant shall be responsible for all set up and clean-up costs in connection with Tenant’s use of
the Centre’s Tenant Conference Center.

 

(jj)               
Elevator Access. Following the written request of Tenant, Landlord will modify the elevators serving the floors on
which the Premises are located to limit access to any floor fully occupied by Tenant by programming such elevators to require an
access card issued by Landlord to access such fully occupied floor.

 

(kk)            
Signage. For so long as Tenant leases at least 50,000 square feet of Rentable Area in the Building (including the
380 Premises), Tenant shall be allowed the following signage bearing the corporate identification and logo for “Hallmark
Financial Services” (as more fully described on Exhibit J attached hereto):

 

(i)                 
one (1) sign located on the top level of the Building, non-vision panel of the west side of the east wing of the Building
in the location shown and identified on Exhibit J (provided, Landlord and Tenant acknowledge and agree that (x) the
signage shown on Exhibit J is for identification purposes only and may not extend beyond the spandrel glass and (y)
such signage shall not exceed the height of the signage for Northwestern Mutual (which Landlord believes to be approximately 78”
tall));

 

(ii)               
elevator lobbies of all full floors in the Building leased and occupied by Tenant; and

 

(iii)             
one (1) sign on the currently existing multi-tenant Building monument sign located under the porte-cochere at the main entrance
of Two/Three Lincoln Centre.

 

Tenant is solely responsible
for the cost of procurement and installation of Tenant’s signage (but such cost may be paid out of the Allowance); the design
of Tenant’s exterior and monument signage must be consistent with the design of other Building exterior and monument signage
and is subject to Landlord’s approval in its reasonable discretion and approval by all applicable governmental authorities.
Tenant may exercise its right to monument and exterior Building signage at any time thirty (30) days prior to the Commencement
Date and prior to the date that is 365 days after the Commencement Date (“Signage Deadline”). If Tenant has
not installed its monument signage or its exterior Building signage in accordance with this Paragraph 20(kk) prior to the
Signage Deadline, Tenant’s right to such signage is automatically waived. In addition to costs of procurement and installation
of Tenant’s signage, Tenant, at its sole cost must remove its signage and restore all damage resulting therefrom upon the
sooner of the expiration or termination of this Lease or the termination of Tenant’s right to such signage under the terms
hereof. Landlord, at no additional cost to Tenant will provide Tenant with a listing in the Building’s electronic directory,
which shall include any subtenants, affiliates or assignees. Signage at the Premises is at Tenant’s sole cost, which may
be applied against the Allowance; provided, Landlord, at Landlord’s sole cost, will provide Building-standard suite identification
signage for the portion of the 1100 Premises located in Suite 1010 of the Building.

 

    	 	44	 

     

    

 

(ll)               
Convenience Stairs. Subject to compliance with all applicable Laws, Tenant, at its sole cost and expense, may elect
to use the fire stairs between the 10th and 11th floors of the Building to serve as convenience stairs between
the floors on which the Premises is located. Tenant may install a security system in connection therewith, which security system
must (i) comply with all applicable Laws, (ii) integrate into Landlord’s existing security system serving the Building, and
(iii) permit the fire stairs to be used as an emergency exit for the entire Building to the extent required by applicable Law.
Tenant may also, at its sole cost and expense, make cosmetic Alterations and provide branding elements to customize such fire stairs
with Landlord’s prior approval, which may not be unreasonably withheld, conditioned or delayed, so long as the same do not
adversely or materially affect the Building’s structure or the Building’s systems and the same comply with all applicable
Laws.

 

(mm)        
Rooftop Equipment. Landlord grants Tenant a non-revocable license during the Lease Term, but subject to space availability,
to install, operate, and maintain on that portion of the Building roof depicted on Exhibit K to this Lease, at Tenant’s
sole cost and risk, satellite antenna dishes/earth satellite dishes (not to exceed 5 feet in diameter) and related equipment and
facilities, including, without limitation, whip antenna necessary cabling to portions of the Premises through available riser space
in the Building (collectively, the “Satellite Dish Equipment”), subject to the following conditions:

 

(i)                 
Prior to installation, Tenant must obtain Landlord’s approval (in its sole discretion), of plans and specifications
for all Satellite Dish Equipment, including, without limitation, the type, size, height, weight, location, and method of attachment
of each individual piece of Satellite Dish Equipment. Tenant acknowledges that Landlord will disapprove the installation of any
Satellite Dish Equipment (including the initial installation) if Landlord determines that: (1) the installation or operation of
the Satellite Dish Equipment will adversely affect the structural integrity of the Building, the operation of any of the Building
systems, or the operation of any other telecommunications equipment on the roof of Building or elsewhere in the Centre; (2) that
any roof top mounted unit, alone or when considered together with other existing roof-top mounted units owned by others, would
negatively impact the overall aesthetics of the Building; or (3) at the time of the intended installation of the Satellite Dish
Equipment, no space is available on the roof or elsewhere in the Building.

 

(ii)               
Tenant shall bear all costs to install, maintain, operate, and repair the Satellite Dish Equipment, which costs include,
without limitation, (1) any structural modifications needed to support the Satellite Dish Equipment, (2) any screens or other improvements
Landlord may reasonably require to protect the aesthetic quality of the Building, (3) any fences that Landlord may require for
safety reasons, and (4) all costs associated with any necessary tests to resolve any and all interference attributable to the Satellite
Dish Equipment.

 

(iii)             
Prior to installation, Tenant shall:

 

(A)              
submit to Landlord and obtain Landlord’s approval (in its reasonable discretion), of plans and specifications for
all Satellite Dish Equipment and any other information reasonably required by Landlord; Landlord agrees to provide Tenant with
reasonable detail concerning any disapproval of such plans and specifications; and

 

(B)              
obtain all necessary approvals for the Satellite Dish Equipment from the Federal Communications Commission, and any other
governmental agency having jurisdiction over the installation or use of the Satellite Dish Equipment.

 

(iv)              
Installation of the Satellite Dish Equipment on the roof of the Building must be performed so as not to void any applicable
roof warranty. Landlord may, in its sole discretion, require that any roof installation be performed in the presence of Landlord’s
roof consultant, and Tenant shall pay the fees, if any, of Landlord’s roof consultant. Cables and transmission lines must
be routed, anchored, and attached in accordance with good industry practices. The Satellite Dish Equipment must be identified with
permanently marked, weatherproof tags at the following locations: (1) each antenna bracket; (2) at the transmission line Building
entry point; (3) at the interior wall feed through or any other transmission line exit point; and (4) at any transmitter combiner,
duplexer, or multi-fed receive port. In addition, all Tenant telephone blocks, demarcs, and cables must be clearly identified with
Tenant’s name. Tenant shall match nearly as possible the color of any antennas to the existing façade of the Building.

 

    	 	45	 

     

    

 

(v)               
Tenant shall:

 

(A)              
unless otherwise approved by Landlord, install the Satellite Dish Equipment during regular business hours for the Centre,
as reasonably specified by Landlord;

 

(B)              
deliver to Landlord accurate “as-built” plans for all Satellite Dish Equipment installed by Tenant within 20
days after completion of each installation and update the “as-built plans” as needed to reflect changes to the Satellite
Dish Equipment made by Tenant;

 

(C)              
operate all Satellite Dish Equipment only for the purpose of intercompany communications;

 

(D)              
not use any of the Satellite Dish Equipment to provide telecommunications services to any party other than Tenant or its
affiliates;

 

(E)               
promptly repair, to Landlord’s reasonable satisfaction, any damage to the Land or Building (including the roof and
riser space) caused by the installation, use, or removal of any Satellite Dish Equipment;

 

(F)               
keep and maintain all Satellite Dish Equipment in good condition and repair at all times;

 

(G)              
not interfere with any other persons operating other telecommunications equipment at the Centre as of the date of the installation
of the Satellite Dish Equipment; and

 

(H)              
follow Landlord’s Technical Site Standards set forth on Schedule 1 to Exhibit K, with no exceptions.

 

(vi)              
If Landlord gives notice to Tenant stating that Tenant’s use of the Satellite Dish Equipment (including the addition
of any equipment and any malfunction or misuse of the Satellite Dish Equipment or any equipment installed by or on behalf of Tenant
or otherwise) is: (1) interfering with any other telecommunications equipment owned by Landlord or any other tenant in the Centre
that was in use as of the date of the installation of the Satellite Dish Equipment, or (2) damaging or threatening to damage the
Premises, the Building, any system serving the Building, or any radio or telecommunication equipment at the Centre, then Tenant
shall immediately cease operations of the Satellite Dish Equipment. Tenant may not thereafter recommence using the Satellite Dish
Equipment until Tenant satisfies Landlord, in Landlord’s reasonable discretion, that Tenant’s use of the Satellite
Dish Equipment will no longer interfere with any other telecommunications equipment owned by Landlord or any other tenant in the
Centre that was in use as of the date of the installation of the Satellite Dish Equipment, or damage the Premises, the Building,
any system serving the Building, or any radio or telecommunication equipment at the Building.

 

(vii)            
Tenant shall indemnify, defend, and hold harmless Landlord from and against any and all Claims incurred by or asserted against
Landlord and arising out of or related to the installation, operation, use, maintenance, or removal of any of the Satellite Dish
Equipment, EVEN IF SUCH CLAIMS ARE CAUSED SOLELY OR IN PART BY THE NEGLIGENCE OF ANY LANDLORD INDEMNITEE, BUT NOT TO THE EXTENT
SUCH LIABILITIES ARE CAUSED BY THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF ANY SUCH LANDLORD INDEMNITEE.

 

    	 	46	 

     

    

 

(viii)          
Upon the expiration of this Lease, Tenant, at Tenant’s expense, shall promptly remove all Satellite Dish Equipment
and repair and restore all damage to the Building and the Centre, to Landlord’s reasonable satisfaction.

 

(ix)              
Tenant acknowledges that it has been offered the opportunity to inspect the Land and the Building roof and riser space,
and having performed such inspections as Tenant deems appropriate, accepts them in their respective “AS IS” conditions.
Landlord makes no, and Tenant waives and releases Landlord from any, representations and warranties about the condition or availability
of the Land, the Building roof and riser space or their suitability for the installation and operation of any Satellite Dish Equipment.

 

(nn)            
Access. Subject to the Building rules and regulations and the other provisions of this Lease, Tenant will be provided
access to the Premises 24 hours per day, seven days per week. If such access is unavailable due to force majeure or any other reason
beyond Landlord’s control (including construction performed by parties other than Landlord which prohibits such access),
Landlord shall not be in default under this Paragraph 20(nn).

 

(oo)            
Generator. Landlord grants to Tenant a license during the Lease Term (the "Generator License") to
install, operate, and maintain in an area mutually agreed upon by Landlord and Tenant (the "Generator Area"),
at Tenant's sole cost and expense, a generator facility, including the associated technology, switchgear, fuel storage, and enclosures
related thereto (collectively, the "Generator"). All references to the Premises shall include the Generator Area.
The Generator License includes the right to connect to, access and use the relevant electric utility facilities at the Building.
The Generator License is subject to the following conditions:

 

(i)                 
Installation of the Generator shall be pursuant to plans and specifications which shall be subject to the prior written
approval of Landlord (which shall not be unreasonably withheld) of the type, size and height of the Generator as well as the manner
of installation of the Generator (including the manner in which any cables are run between the Generator and the Building). Tenant
acknowledges that Landlord may disapprove the installation of any Generator (including the initial installation) if Landlord determines,
in its reasonable discretion, that the installation or operation of the Generator will materially adversely affect the operation
of any of the Building’s systems or the operation of any other equipment elsewhere in the Building. Without limiting the
foregoing, Landlord may require Tenant to install reasonable decorative screening and fencing around the Generator.

 

(ii)               
Tenant shall bear all costs to install, maintain, operate, replace and repair the Generator in compliance with all applicable
Laws, which costs include, without limitation, (i) any structural modifications required to support the Generator, (ii) any screens
or other improvements Landlord may reasonably require to protect the aesthetic quality of the Building, (iii) any fences that Landlord
may reasonably require for safety reasons, (iv) any enclosures or other safety measures required by applicable Laws, and (v) the
cost of all utilities consumed in the operation of the Generator.

 

(iii)             
Prior to commencement of installation, Tenant shall submit to Landlord and obtain Landlord's approval of plans and specifications
for the Generator, and any other information reasonably required by Landlord. Landlord's approval of Tenant's plans and specifications
shall not be deemed a representation by Landlord that the plans and specifications comply with law or industry standards, nor is
Landlord's approval a representation by Landlord of the adequacy of the mechanical design or proper operation of the Generator.

 

(iv)              
Prior to commencement of installation, Tenant, at its sole cost and expense, shall obtain all necessary governmental and
regulatory approvals for the installation and use of the Generator from each governmental agency having jurisdiction over the installation
or use of the Generator. Tenant may not install or operate the Generator until Tenant has obtained and submitted to Landlord copies
of all such necessary permits and approvals.

 

(v)               
Tenant's use of the Generator shall comply with all applicable Laws.

 

    	 	47	 

     

    

 

(vi)              
All utility lines must be routed, anchored, buried and/or attached in accordance with good industry practices. The Generator
must be identified with permanently marked, weatherproof tags at the following locations: (i) prominently on the exterior frame
of each piece of the Generator; (ii) at the transmission line Building entry point; and (iii) at the interior wall feed through
or any other transmission line exit point.

 

(vii)            
Tenant shall:

 

(A)              
promptly repair, to Landlord's reasonable satisfaction, any damage to the Building or the adjacent area caused by the installation,
use, or removal of the Generator;

 

(B)              
keep and maintain the Generator in good condition and repair at all times;

 

(C)              
operate the Generator only for Tenant's use and benefit;

 

(D)              
take all necessary action (including installation of additional insulation) to minimize vibrations and sound disturbance
in the Building resulting from the operation of the Generator; and

 

(E)               
perform testing of the Generator pursuant to a testing plan which shall be subject to Landlord's prior written approval
and after Normal Building Hours.

 

(viii)          
The installation of the Generator, as well as all repairs or alterations to the Generator, or replacements of the Generator,
must be performed by contractors approved by Landlord in its reasonable discretion.

 

(ix)              
Landlord shall have no obligation to provide any services, including, without limitation, electric current, to the Generator.

 

(x)               
Upon the expiration or earlier termination of this Lease, Tenant, at Tenant's expense, shall promptly remove the Generator
and repair and restore all damage to the Building and adjacent area caused by the removal.

 

(xi)              
Tenant has thoroughly inspected the Generator Area and accepts it in its "AS-IS" condition. Landlord makes no,
and Tenant waives and releases Landlord from any, representations and warranties about the condition or suitability of the Generator
Area or the Building for the installation and operation of the Generator.

 

(xii)            
Within 90 days after installation of the Generator, Tenant, at its cost, shall deliver to Landlord, either: (i) 2 reproducible
copies of "as-built" plans and specifications (1/8" scale), or (ii) "as-built" plans and specifications
in electronic CAD format reasonably acceptable to Landlord showing the location of the Generator and all equipment installed in
connection therewith.

 

(pp)            
10th Floor. Prior to the Commencement Date, Landlord, at its sole cost and expense, will update the restrooms
and common corridor on the 10th floor of the Building to Building-standard finishes, complying with the ADA and applicable
Laws.

 

(qq)            
Intentionally Omitted.

 

(rr)              
Mail Carts. Tenant shall have the right to use mail carts in the freight elevators of the Building, subject to the
terms and conditions of this Lease and any rules and regulations affecting the Centre.

 

(ss)              
Temporary Premises. As an accommodation to Tenant, Tenant shall have the exclusive right to use temporarily, and
Landlord will provide to Tenant on a temporary basis, Suites 350 and 390, consisting of approximately 8,503 square feet of Rentable
Area, and located on the 3rd floor within the building located at 5430 LBJ Freeway, Dallas, Texas 75240, as more particularly
shown on the attached Exhibit L (the “Temporary Premises”) for the purpose of storing Tenant’s
furniture. The Temporary Premises shall be made available to Tenant promptly after the Possession Date, 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 this Lease, except that (a) Tenant shall not be obligated pay Base Rent or
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 this Lease; (b) Tenant shall have no right to renew or extend the Lease
Term with respect to the Temporary Premises; (c) Tenant shall not make any Alterations to the Temporary Premises without the consent
of Landlord; (d) furnishings and equipment may be installed in the Temporary Premises provided such items may be removed without
injury or damage to the Temporary Premises; (e) Tenant shall be expressly prohibited from assigning or subleasing any or all of
the Temporary Premises or any interest therein; (f) 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
(g) Tenant further agrees to cooperate with Landlord in connection with Landlord's exercise of Landlord's rights of entry under
this Paragraph 20(ss). 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 Paragraph 20(ss) to use the Temporary
Premises shall terminate on, and Tenant shall vacate the Temporary Premises no later than five business days after the Commencement
Date. Tenant's failure to surrender the Temporary Premises in accordance with the terms of this Lease on or before the fifth business
day after the Commencement Date for the Premises shall be subject to the holdover provisions of Paragraph 20(f). Notwithstanding
the foregoing provisions of this Paragraph 20(ss), upon thirty (30) days prior written notice to Tenant, Landlord may relocate
the Temporary Premises to other space in the Centre at Tenant’s sole cost and expense. Tenant shall pay any amounts incurred
by Landlord in connection therewith within thirty (30) days following Landlord’s delivery of an invoice therefor.

 

    	 	48	 

     

    

 

SIGNATURE PAGE TO OFFICE LEASE

BY AND BETWEEN

TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA,

A NEW YORK CORPORATION, FOR THE BENEFIT OF THE REAL ESTATE ACCOUNT, AS LANDLORD,

AND HALLMARK FINANCIAL SERVICES, INC., AS TENANT

 

IN WITNESS WHEREOF,
the parties have executed this Lease to be effective as of the Date of this Lease.

 

	“LANDLORD”:	 	“TENANT”:
	 	 	 	 	 
	TEACHERS INSURANCE AND ANNUITY ASSOCIATION OF AMERICA, a New York corporation, for the benefit of the Real Estate Account	 	HALLMARK
FINANCIAL SERVICES, INC., 
a Nevada corporation
	 	 	 	 	 
	By:	 	 	By:	 
	Name:  	 	 	Name:  	 
	Title:  	 	 	Title:  	 

  

    	 	49	 

     

    

 

EXHIBIT
A-1

 

FLOOR
PLAN OF THE PREMISES

 

 

 

    	 	A-1-1	 

     

    

 

EXHIBIT
A-1 (cont.)

 

  

 

 

    	 	A-1-2	 

     

    

 

EXHIBIT
A-1 (cont.)

 

 

 

    	 	A-1-3	 

     

    

 

EXHIBIT
A-2

 

LEGAL
DESCRIPTION OF THE PROPERTY

 

BUILDING ONE

 

Being a tract of land
situated in the Isaiah Park Survey, Abstract No. 1144, Dallas County, Texas and being part of the City of Dallas Block 7000, and
being more particularly described as follows:

 

BEGINNING at the intersection
of the South line of IH-635 (variable width) and the West line of Noel Road (60 ft. R.O.W.); Thence along said West line of Noel
Road and along a circular curve to the right having a beginning tangent of South 25E 53’ 11” East, a central angle
of 25E 57’ 41”, a radius of 50.00 ft., a tangent length of 11.53 ft. and an arc length of 22.66 ft. to the end of said
circular curve to the right;

 

THENCE South 0E 04’
30” West along said West line of Noel Road a distance of 414.27 ft. to a point for a corner;

 

THENCE North 89E 55’
30” West departing said West line of Noel Road a distance of 260.03 ft. to a point for a corner;

 

THENCE North 0E 01’
56” East a distance of 89.08 ft. to a point for a corner;

 

THENCE South 89E 47’
55” West a distance of 279.59 ft. to a point for a corner;

 

THENCE South 89E 54’
25” West a distance of 109.46 ft. to a point for a corner;

 

THENCE North 0E 02’
56” West a distance of 145.00 ft. to a point for a corner;

 

THENCE North 36E 29’
54” West a distance of 52.74 ft. to a point for the beginning of a circular curve to the left;

 

THENCE along said circular
curve to the left having a beginning tangent bearing of South 75E 26’ 44” West, a central angel of 34E 51’ 45”,
a radius of 550.0 ft., a tangent length of 172.69 ft. and an arc length of 334.66 ft. to a point of compound circular curvature;

 

THENCE along said compound
curve having a beginning tangent bearing of South 40E 34’ 59” West, a central angle of 43E 42’ 32”, a radius
of 425.0 ft., a tangent length of 170.46 ft. and an arc length of 324.22 ft. to end of said curve to the left;

 

THENCE South 89E 53’
54” West a distance of 60.57 ft. to a point for a corner;

 

THENCE North 18E 17’
28” West a distance of 151.56 ft. to a point for a corner;

 

THENCE North 24E 50’
40” West a distance of 163.64 ft. to a point in said South line of IH-635 for a corner;

 

THENCE North 67E 20’
10” East along said South line of IH-635 a distance of 95.0 ft. to a point for a corner;

 

THENCE continuing along
said South line of IH-635 North 51E 20’ 10” East a distance of 263.0 ft. to a point for a corner;

 

THENCE continuing along
said South line of IH-635 North 64E 20’ 10” East a distance of 249.78 ft. to a point for a corner;

 

    	 	A-2-1	 

     

    

 

THENCE continuing along
said South line of IH-635 North 80E 20’ 10” East a distance of 201.10 ft. to a point for a corner;

 

THENCE continuing along
said South line of IH-635 South 89E 57’ 10” East a distance of 517.62 ft. to the Point of Beginning and containing
8.2064 Acres (357,471 sq. ft.) of land.

 

BUILDING TWO

 

Being a tract of land
situated in the Isaiah Park Survey, Abstract No. 1144, Dallas County, Texas and being part of the City of Dallas Block 7000, and
being more particularly described as follows:

 

BEGINNING at the intersection
of the South line of IH-635 (variable width) and the West line of Noel Road (60 ft. R.O.W.); Thence along said West line of Noel
Road and along a circular curve to the right having a beginning tangent of South 25E 53' 11" East, a central angle of 25E
57' 41", a radius of 50.00 ft., a tangent length of 11.53 ft. and an arc length of 22.66 ft. to the end of said circular curve
to the right; Thence South 00E 04' 30" West along said West line of Noel Road a distance of 691.65 ft. to the True Point of
Beginning:

 

THENCE South 00E 04'
30" West continuing along said West line of Noel Road a distance of 235.33 ft. to a point for a corner;

 

THENCE North 89E 55'
30" West leaving said West line of Noel Road a distance of 241.80 ft. to a point for a corner;

 

THENCE South 00E 04'
30" West a distance of 15.30 ft. to a point for a corner;

 

THENCE North 89E 55'
30" West a distance of 36.76 ft. to a point for a corner;

 

THENCE South 00E 04'
30" West a distance of 38.41 ft. to a point for a corner;

 

THENCE North 89E 55'
30" West a distance of 57.00 ft. to a point for a corner;

 

THENCE North 00E 04'
30" East a distance of 6.3 ft. to a point for a corner;

 

THENCE North 89E 55'
30" West a distance of 28.14 ft. to a point for a corner;

 

THENCE South 0E 04'
30" West a distance of 7.5 ft. to an iron rod for a corner;

 

THENCE North 89E 55'
30" West a distance of 16.2 ft. to an iron rod for a corner;

 

THENCE North 0E 04'
30" East a distance of 7.5 ft. to an iron rod for a corner;

 

THENCE North 89E 55'
30" West a distance of 191.5 ft. to an iron rod for a corner;

 

THENCE South 00E 04'
30" West a distance of 18.0 ft. to a point for a corner;

 

THENCE North 89E 55'
30" West a distance of 82.0 ft. to a point for a corner;

 

THENCE North 00E 04'
30" East a distance of 24.5 ft. to a point for a corner;

 

THENCE North 89E 55'
30" West a distance of 32.10 ft. to a point for a corner;

 

THENCE North 00E 04'
30" East a distance of 31.00 ft. to a point for a corner;

 

    	 	A-2-2	 

     

    

 

THENCE North 89E 55'
30" West a distance of 157.5 ft. to a point for a corner;

 

THENCE South 0E 04'
30" West a distance of 13.4 ft. to an iron rod for a corner;

 

THENCE North 89E 55'
30" West a distance of 27.6 ft. to an iron rod for a corner;

 

THENCE North 0E 04'
30" East a distance of 13.4 ft. to an iron rod for a corner;

 

THENCE North 89E 55'
30" West a distance of 100.29 ft. to an iron rod for a corner;

 

THENCE South 00E 04'
30" West a distance of 135.38 ft. to a point for a corner;

 

THENCE South 73E 05'
00" West a distance of 86.27 ft. to a point in the East line of a 100 ft. Dallas Power & Light Company R.O.W. for a corner;

 

THENCE North 16E 55'
00" West along said East line of 100 ft. Dallas Power & Light Company R.O.W. a distance of 465.82 ft. to a point for a
corner;

 

THENCE South 89E 55'
30" East a distance of 562.31 ft. to a point for a corner;

 

THENCE North 30E 04'
30" East a distance of 57.58 ft. to a point for a corner;

 

THENCE South 89E 55'
30" East a distance of 62.95 ft. to a point for a corner;

 

THENCE South 30E 04'
30" West a distance of 57.58 ft. to a point for a corner;

 

THENCE South 89E 55'
30" East a distance of 294.93 ft. to a point for a corner;

 

THENCE South 00E 04'
30" West a distance of 39.65 ft. to a point for a corner;

 

THENCE South 89E 55'
30" East a distance of 269.33 ft. to the True Point of Beginning and containing 8.0410 Acres (350,266 sq. ft.) of land.

 

BUILDING THREE

 

Being a tract of land
situated in the Isaiah Park Survey, Abstract No. 1144, Dallas County, Texas and being part of the City of Dallas Block 7000, and
being more particularly described as follows:

 

BEGINNING at the intersection
of the South line of IH-635 (variable width) and the West line of Noel Road (60 ft. R.O.W.); Thence along said West line of Noel
Road and along a circular curve to the right having a beginning tangent bearing of South 25E 53' 11" East, a central angle
of 25E 57' 41", a radius of 50.00 ft., a tangent length of 11.53 ft. and an arc length of 22.66 ft. to the end of said circular
curve to the right; Thence South 00E 04' 30" West along said West line of Noel Road a distance of 926.98 ft. to the TRUE POINT
OF BEGINNING;

 

THENCE South 00E 04'
30" West continuing along said West line of Noel Road a distance of 181.21 ft. to a point for a corner;

 

THENCE South 37E 25'
55" West a distance of 7.95 ft. to an iron rod set in the North line of Harvest Hill Road (60 ft. R.O.W.) for a corner;

 

THENCE South 74E 47'
20" West along said North line of Harvest Hill Road a distance of 826.08 ft. to an iron rod set for the beginning of a circular
curve to the right;

 

    	 	A-2-3	 

     

    

 

THENCE along said circular
curve to the right having a beginning tangent bearing of South 74E 47' 20" West, a central angle of 07E 33' 56", a radius
of 1243.24 ft., a tangent length of 82.20 ft., and an arc length of 164.16 ft. along said North R.O.W. line of Harvest Hill Road;

 

THENCE North 53E 45'
23" West a distance of 14.71 ft., to an iron rod set in the East line of a 100 ft. Dallas Power & Light Company R.O.W.;

 

THENCE North 16E 55'
00" West along said East line of 100 ft. Dallas Power & Light Company R.O.W. a distance of 270.66 ft., to an iron rod
set for a corner;

 

THENCE North 73E 05'
00" East a distance of 86.27 ft. to an iron rod set for a corner;

 

THENCE North 00E 04'
30" East a distance of 135.38 ft. to an iron rod set for a corner;

 

THENCE South 89E 55'
30" East a distance of 100.29 ft. to an iron rod set for a corner;

 

THENCE South 0E 04'
30" West a distance of 13.4 ft. to an iron rod for a corner;

 

THENCE South 89E 55'
30" East a distance of 27.6 ft. to an iron rod for a corner;

 

THENCE North 0E 04'
30" East a distance of 13.4 ft. to an iron rod for a corner;

 

THENCE South 89E 55'
30" East a distance of 157.5 ft. to an iron rod for a corner;

 

THENCE South 00E 04'
30" West a distance of 31.00 ft. to an iron rod set for a corner;

 

THENCE South 89E 55'
30" East a distance of 32.10 ft. to an iron rod set for a corner;

 

THENCE South 00E 04'
30" West a distance of 24.5 ft. to an iron rod set for a corner;

 

THENCE South 89E 55'
30" East a distance of 82.0 ft. to an iron rod set for a corner;

 

THENCE North 00E 04'
30" East a distance of 18.0 ft. to an iron rod set for a corner;

 

THENCE South 89E 55'
30" East a distance of 191.5 ft. to an iron rod set for a corner;

 

THENCE South 0E 04'
30" West a distance of 7.5 ft. to an iron rod for a corner;

 

THENCE South 89E 55'
30" East a distance of 16.2 ft. to an iron rod for a corner;

 

THENCE North 0E 04'
30" East a distance of 7.5 ft. to an iron rod for a corner;

 

THENCE South 89E 55'
30" East a distance of 28.14 ft. to an iron rod for a corner;

 

THENCE South 00E 04'
30" West a distance of 6.3 ft. to an iron rod set for a corner;

 

THENCE South 89E 55'
30" East a distance of 57.00 ft. to an iron rod set for a corner;

 

THENCE North 00E 04'
30" East a distance of 38.41 ft. to an iron rod set for a corner;

 

THENCE South 89E 55'
30" East a distance of 36.76 ft. to an iron rod set for a corner;

 

THENCE North 00E 04'
30" East a distance of 15.30 ft. to an iron rod set for a corner;

 

THENCE South 89E 55'
30" East a distance of 241.80 ft. to the TRUE POINT OF BEGINNING and containing 6.8002 acres (296,216 sq. ft.) of land.

 

    	 	A-2-4	 

     

    

 

EXHIBIT
B-1

 

LANDLORD
WORK LETTER

 

A.                 
TURNOVER WORK. Landlord, at its sole cost and expense, shall construct or cause to be constructed the “Turnover
Work” (herein so called) identified on Schedule 2 to this Exhibit B-1. The term “Substantially
Complete” and any derivations thereof mean the Turnover Work in the Premises are substantially completed (as reasonably
determined by Landlord). Substantial Completion shall have occurred even though minor details of construction, decoration, landscaping
and mechanical adjustments remain to be completed by Landlord.

 

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

 

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

 

(2)               
Tenant's request for materials, finishes, or installations other than Landlord's Building standard items or for long lead
items; or

 

(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 Turnover Work; or

 

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

 

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

 

C.                  
EARLY ENTRY. Upon request by Tenant, Landlord shall permit Tenant and its contractors to enter the Premises prior
to Substantial Completion of the Turnover Work, in order that Tenant may perform the Tenant Finish Work (defined on Exhibit
B-2) while Landlord's contractors are working (an "Early Entry"). This license to enter prior to Substantial
Completion of Turnover Work is subject to the following conditions:

 

(1)               
Tenant's contractor(s) must work in harmony and not interfere with Landlord's contractors and subcontractors;

 

(2)               
prior to commencement of the work by Tenant's contractor(s), Tenant must deliver evidence to Landlord of compliance with
the requirements of Paragraph 8; and

 

(3)               
Tenant is subject to all terms of this Lease other than the obligation to pay Base Rent and Tenant's share of electricity
and Operating Expenses.

 

Landlord may revoke
this license upon forty-eight (48) hours' notice to Tenant if the entry causes disharmony or interference with the Turnover Work.

 

NO LANDLORD INDEMNITEE
IS LIABLE IN ANY WAY FOR ANY INJURY, LOSS, OR DAMAGE THAT OCCURS TO ANY OF TENANT'S DECORATIONS OR INSTALLATIONS MADE PRIOR TO
SUBSTANTIAL COMPLETION OF THE TURNOVER WORK, THE ENTRY BEING SOLELY AT TENANT'S RISK. TENANT SHALL INDEMNIFY, DEFEND, AND HOLD
LANDLORD INDEMNITEES HARMLESS FROM ANY CLAIMS ARISING FROM ACTIVITIES OF TENANT'S CONTRACTORS, WORKERS, AND MECHANICS, EVEN IF
DUE IN WHOLE OR IN PART TO THE NEGLIGENCE OR STRICT LIABILITY OF ANY LANDLORD INDEMNITEE.

 

D.                 
PROJECT ENGINEER. Landlord shall use the fire alarm, mechanical, electrical, and plumbing engineer(s) of record for
the Centre in connection with any Turnover Work affecting the Building's fire alarm, mechanical, electrical, or plumbing systems.

 

    	 	B-1-1	 

     

    

 

E.                  
PUNCHLIST. Landlord will notify Tenant in writing ten (10) days prior to the date Landlord anticipates the Possession
Date will occur (the “Possession Notice”). Within three (3) business days after the date of the Possession Notice,
Landlord and Tenant mutually agree upon a date to meet and inspect the Premises. Tenant shall reasonably specify any part of the
Turnover Work that is not Substantially Complete by delivering a punchlist to Landlord on the next business day after the date
of the inspection. Landlord shall correct the items shown on the punchlist that are not Substantially Complete with reasonable
due diligence and will have access to the Premises to do so.

 

    	 	B-1-2	 

     

    

 

schedule
1

 

		a.	Tenant’s Service Providers shall, at each party's own expense, maintain insurance as set
forth below. Each Service Provider shall maintain the following insurance at all times when the Service Provider performs work
in or delivers to the Centre:

 

		1.	Commercial general liability insurance written on the most current form of ISO CG 00 01 (occurrence
basis) or its equivalent, have a minimum each occurrence limit of $1,000,000, a minimum general aggregate limit of $2,000,000,
and not exclude this Lease from the definition of “Insured Contract” under the contractual liability provisions;

 

		2.	Workers' compensation insurance complying with statutory requirements of the State of Texas and
employers liability insurance in amounts not less than $500,000 bodily injury per accident/$500,000 disease each employee/$500,000
disease policy limit;

 

		3.	Business automobile insurance for claims arising out of ownership, maintenance, or use of owned,
non-owned, and hired motor vehicles at, upon, or away from the Centre. The minimum limits must be $1,000,000 each occurrence;

 

		4.	Excess/umbrella liability insurance, applying on at least a "following form" (or primary)
basis, in excess of commercial general liability, employers liability, and business automobile liability, with a minimum limit
of $3,000,000 each occurrence and aggregate, where applicable; and

 

5.       Such
additional insurance coverages or other policy limits as Landlord reasonably requires.

 

		B.	Landlord, Landlord’s designated property management firm and all Landlord Indemnitees shall
be named additional insureds on each of said policies (excluding the worker’s compensation policy) and said policies shall
be issued by an insurance company or companies authorized to do business in the State and which have policyholder ratings not lower
than “A-” and financial ratings not lower than “IX” in Best’s Insurance Guide (latest edition in
effect as of the date of this Lease and subsequently in effect as of the date of renewal of the required policies). EACH OF SAID
POLICIES SHALL ALSO INCLUDE A WAIVER OF SUBROGATION PROVISION OR ENDORSEMENT IN FAVOR OF LANDLORD AND THE LANDLORD INDEMNITEES,
AND AN ENDORSEMENT PROVIDING THAT LANDLORD SHALL RECEIVE THIRTY (30) DAYS PRIOR WRITTEN NOTICE OF ANY CANCELLATION OF, NON-RENEWAL
OF, REDUCTION OF COVERAGE OR MATERIAL CHANGE IN COVERAGE ON SAID POLICIES. In addition, all policies of the Service Providers shall
be endorsed to be primary, with the policies of all Landlord Indemnitees being excess, secondary and non-contributing. Each Service
Provider hereby waives its right of recovery against any Landlord Indemnitee of any amounts paid by it or on its behalf to satisfy
applicable worker’s compensation laws. The policies or duly executed certificates showing the material terms for the same,
together with satisfactory evidence of the payment of the premiums therefor, shall be deposited with Landlord on the date each
Service Provider first enters the Centre and upon renewals of such policies not less than fifteen (15) days prior to the expiration
of the term of such coverage. If certificates are supplied rather than the policies themselves, each Service Provider shall allow
Landlord, at all reasonable times, to inspect its policies of insurance required herein.

 

		C.	With respect to insurance coverages, except worker’s compensation, maintained hereunder by
each Service Provider and insurance coverages separately obtained by Landlord, all insurance coverages afforded by policies of
insurance maintained by each Service Provider shall be primary insurance as such coverages apply to Landlord, and such insurance
coverages separately maintained by Landlord shall be excess, and each Service Provider shall have its insurance policies so endorsed.
The amount of liability insurance under insurance policies maintained by each Service Provider shall not be reduced by the existence
of insurance coverage under policies separately maintained by Landlord. Each Service Provider shall be solely responsible for any
premiums, assessments, penalties, deductible assumptions, retentions, audits, retrospective adjustments or any other kind of payment
due under its policies. Each Service Provider shall increase the amounts of insurance or the insurance coverages as Landlord may
reasonably request from time to time.

 

    	 	B-1-3	 

     

    

 

SCHEDULE
2

 

		1.	Deliver the base mechanical, electrical, plumbing, and HVAC systems serving the Premises in good
working order.

 

		2.	Deliver electrical service to the electrical closets on the 10th floor and the 11th
floor, with 120/208-volt power panels, transformers, and circuit breakers in place.

 

		3.	Provide connection “stub outs” for vent and tepid water at all wet columns on the 10th
floor and the 11th floor for use by Tenant.

 

		4.	Provide connection points on the 10th floor and the 11th floor for the fire
alarm system, which shall be installed, operating, and tested in accordance with applicable Law.

 

		5.	Deliver the common corridors, multi-tenant corridors, and common elevator lobbies serving the 10th
floor of the Building in compliance with the ADA, the TABA, Building Code, City Code, and all other applicable Laws.

 

		6.	Deliver the restrooms serving the 10th floor and the 11th floor of the Building
in compliance with the ADA, the TABA, Building Code, City Code and all other applicable Laws.

 

		7.	Delivery of the Premises free of all Hazardous Materials in violation of applicable Law (including
mold), including insulation on steam pipes, piping within columns, and within any under floor distribution systems.

 

    	 	B-1-4	 

     

    

 

EXHIBIT
B-2

 

TENANT
WORK LETTER

 

		A.	PLANS AND SPECIFICATIONS. Tenant shall submit to Landlord at least 30 days prior to commencement
of any remodeling in the Premises complete initial plans and specifications (the “Initial Construction Documents”)
for the remodeling of the Premises. The Initial Construction Documents must include detailed plans and specifications for the construction
of the improvements called for under this Exhibit in accordance with all applicable Laws and sufficient to accommodate Tenant’s
Permitted Density, including without limitation:

 

		1.	General Notes Sheet

 

		2.	Demolition Plan

 

		3.	New Construction Plan with details of all new improvements

 

		4.	Finishes Plan

 

		5.	Electrical, Mechanical and Plumbing Plan

 

Within 10 days after receipt
of the Initial Construction Documents, Landlord shall deliver to Tenant a notice either approving or disapproving them. Any disapproval
must specify in reasonable detail the reasons for the disapproval. If Tenant does not receive a notice from Landlord disapproving
the Initial Construction Documents within the 10-day period, Landlord is deemed to approve the Initial Construction Documents.
If Landlord disapproves the Initial Construction Documents, Tenant shall revise them to conform to Landlord’s objections
and deliver complete copies of the revised Initial Construction Documents to Landlord. If upon providing its approval, the Landlord
does not communicate in writing its requirement for Tenant to restore any of the improvements at the expiration of the Lease Term,
then at the expiration of the Lease Term or earlier termination thereof, the Tenant shall not have no obligation to restore any
of the improvements, which are included in the Initial Construction Documents, to the original condition prior to construction.
In addition to the construction allowance, the Landlord will reimburse Tenant up to $5,017.20 (the "Test Fit Allowance")
for costs incurred in preparation of an initial "test fit" drawing with up to two (2) revisions.

 

The approved Initial Construction
Documents are referred to as the “Construction Documents” and all work to be performed by Tenant pursuant to
the Construction Documents is referred to as the “Tenant Finish Work”. Landlord’s approval of the Construction
Documents is not a warranty that the Construction Documents comply with applicable Laws.

 

		B.	TENANT FINISH WORK.

 

		1.	Tenant shall have the right to select its own architect. Tenant will hold the contract and manage
its construction. Tenant may elect to retain a construction or project manager of its choice.

 

		2.	Prior to commencing the Tenant Finish Work, Tenant shall competitively bid the Tenant Finish Work
to at least three general contractors mutually approved by Landlord and Tenant. Sub-contractor selections shall not be subject
to Landlord’s approval, except as otherwise provided in this Lease. Tenant shall promptly provide Landlord with copies of
each of bids received for the Tenant Finish Work and Landlord shall be allowed to review such submitted bids. Landlord and Tenant
shall have five business days after receipt and delivery of the last of the three bids to mutually agree upon which (if any) of
the bids will be accepted for the Tenant Finish Work.

 

		3.	Landlord shall provide to Tenant a construction allowance not to exceed $3,386,610.00 (the “Allowance”)
to be applied toward the Actual Cost of the Tenant Finish Work. Landlord shall pay to Tenant, or upon Tenant’s written request,
to Tenant’s general contractor, the Allowance in multiple disbursements (but not more than once in any calendar month) following
the receipt by Landlord of the following items from Tenant’s Construction Representative (defined below): (a) a request for
payment, (b) final or partial lien waivers, as the case may be, from all persons performing work or supplying or fabricating materials
for the Tenant Finish Work, fully executed, acknowledged and in recordable form, and (c) the architect’s certification that
the Tenant Finish Work for which reimbursement has been requested has been finally completed, including (with respect to the last
application for payment only) any punch-list items, on the appropriate AIA form or another form approved by Landlord, and, with
respect to the disbursement of the last 10% of the Allowance, (1) the permanent certificate of occupancy issued for the Premises,
(2) Tenant’s occupancy of the Premises, and (3) delivery of the architectural “as-built plan for the Tenant Finish
Work as constructed (as set forth above) to Landlord’s construction representative (set forth below) (a “Completed
Application for Payment”). Landlord shall pay the amount requested in the applicable Completed Application for Payment
to Tenant within 30 days following Tenant’s submission of the Completed Application for Payment. If, however, the Completed
Application for Payment is incomplete or incorrect, Landlord’s payment of such request shall be deferred until 30 days following
Landlord’s receipt of the Completed Application for Payment. Notwithstanding anything to the contrary contained in this Exhibit,
Landlord shall not be obligated to make any disbursement of the Allowance during the pendency of any of the following: (A) Landlord
has received written notice of any unpaid claims relating to any portion of the Tenant Finish Work or materials in connection therewith,
other than claims which will be paid in full from such disbursement, (B) there is an unbonded lien outstanding against the Building
or the Premises or Tenant’s interest therein by reason of work done, or claimed to have been done, or materials supplied
or specifically fabricated, claimed to have been supplied or specifically fabricated, to or for Tenant or the Premises, (C) the
conditions to the advance of the Allowance are not satisfied, or (D) an event of default by Tenant exists The Allowance must be
used (that is, the Tenant Finish Work must be fully complete and the Allowance disbursed) by March 31, 2021 or shall be deemed
forfeited with no further obligation by Landlord with respect thereto, time being of the essence with respect thereto.

 

    	 	B-2-1	 

     

    

 

		4.	The term “Actual Cost” means the cost of all labor and materials and all hard
and soft costs relating to the Tenant Finish Work, together with a construction management fee of 1% of the hard construction costs
to be paid to Landlord’s construction manager (provided, such amount shall not exceed 1% of the Allowance) and a construction
management fee of 3% of the total construction costs to be paid to Tenant’s construction manager). The following costs will
not be included in the “Soft Cost Allowance” definition herein: interior improvements, architectural and engineering
fees, construction management fees, all signage costs, permitting fees, and asbestos testing. The Allowance may be utilized to
pay for all interior improvements, architectural and engineering fees, construction management fees and project management fees,
all signage costs, permitting fees, and asbestos testing. Tenant may apply up to $1,153,956.00 of the Allowance (the “Soft
Cost Allowance”) toward the soft costs portion of the Actual Cost of Tenant Finish Work, including without limitation,
voice and data cabling costs, moving costs, audio/visual equipment costs, security/access costs, generator costs, other consultant
fees (other than architect fees, engineer fees and project management fees), server costs, and infrastructure costs. Of the Soft
Cost Allowance, $501,720.00 may be applied against the cost of Tenant’s furniture, fixtures, and equipment, including procurement
and installation. Additionally, Tenant may apply up to $250,860.00 of the Allowance against Base Rent as the same comes due under
the Lease.

 

		5.	Tenant, at its cost and risk (subject to application of the Allowance by Landlord), shall construct
or cause to be constructed the Tenant Finish Work in substantial accordance with the Construction Documents. Tenant shall allow
Landlord access to the Premises at all times to inspect the Tenant Finish Work. Landlord has no obligation to inspect the Tenant
Finish Work. No inspection by Landlord of the Tenant Finish Work is a warranty that the Tenant Finish Work complies with the Construction
Documents or any applicable Laws.

 

    	 	B-2-2	 

     

    

 

		C.	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:	Scott Stovall	 
	 	c/o Cushman & Wakefield of Texas, Inc.	 
	 	5430 LBJ Freeway, Suite 200	 
	 	Dallas, TX 75240	 
	 	Telephone:  	 	 
	 	 	 	 
	Tenant’s Representative:	Tarek Timol	 
	 	c/o Hallmark Financial Services, Inc.	 
	 	777 Main Street, Suite 1000

Fort Worth, Texas 76102

	 
	 	Telephone:   	 	 

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

 

		1.	Any violations of applicable Law related to the Building in existing prior to the Possession Date;
or

 

		2.	because a Landlord Indemnitee otherwise delays completion of the Tenant Finish Work;

 

then the Commencement Date is
postponed by the number of days of Landlord Delays.

 

		E.	GENERAL.

 

		1.	Any changes to the Construction Documents must first be submitted to Landlord for review and approval,
which shall not be unreasonably withheld, conditioned or delayed in connection with non-structural alterations that do not affect
the Building’s systems, prior to the work reflected in such amended Construction Documents being undertaken by Tenant. Landlord
shall provide a written response to changes to the Construction Documents within five (5) business days following receipt thereof.

 

		2.	Workmanship and materials to be used in the Tenant Finish Work shall be at least Building-standard.
Any approval by Landlord of the Construction Documents shall not in any way constitute a representation or warranty of Landlord
as to the adequacy of sufficiency of the Construction Documents; such approval shall merely be the consent of Landlord as may be
required hereunder in connection with the Tenant Finish Work in accordance with the Construction Documents under the terms of the
Lease.

 

		3.	Tenant shall perform the Tenant Finish Work consistent with Building Rules and Regulations, in
a manner to minimize noise and other interference with tenants of the Centre and shall remove all trash and debris from the Premises
on a daily basis.

 

		4.	Upon completion of the construction of Tenant Finish Work, Tenant shall promptly restore any area
of the Centre damaged as a result of Tenant’s construction of the Tenant Finish Work to the condition existing prior to the
commencement of such construction.

 

		5.	Any entry upon the Premises by Tenant and its agents and contractors shall be deemed to be under
all of the terms, the covenants provisions and conditions of the Lease, excepting only the covenant to pay Rent for the Premises.
All of Tenant’s materials, work, installations and decorations of any nature brought upon or installed in the Premises before
the Commencement Date shall be at Tenant’s risk, and neither Landlord nor any party acting on Landlord’s behalf shall
be responsible for any damage thereto or loss or destruction thereof.

 

    	 	B-2-3	 

     

    

 

		6.	Tenant shall be required to use Landlord’s designated mechanical, electrical and plumbing
contractors and fire alarm contractor. Landlord shall designate from time to time (i) the mechanical, electrical and plumbing engineers
of record for the Centre, and (ii) the fire alarm contractor of record for the Centre.

 

		7.	All contractors, subcontractors, suppliers, service providers, moving companies, and others performing
work of any type for Tenant in the Centre shall comply with the insurance provisions contained in this Lease.

 

		8.	Landlord shall provide priority use the Building freight elevators serving the 10th
and 11th floors at no additional cost during Tenant’s construction of the Tenant Finish Work.

 

		9.	During Tenant’s construction of the Tenant Finish Work, Landlord, at no cost to Tenant, shall
furnish temporary power and HVAC to the Premises. During the construction period, there shall not be any “tap in” charges
for Tenant connecting to supplemental air conditioners, sprinklers, and other Building systems.

 

		10.	During Tenant’s construction of the Tenant Finish Work, Landlord shall provide power during
Business Hours at no cost to Tenant prior to the Commencement Date, except Tenant shall be responsible for Tenant’s Proportionate
Share of Electricity Costs during the Beneficial Occupancy Period.

 

		11.	Landlord shall provide, at no expense to Tenant, electric power, water, during Tenant’s construction
of the Tenant Finish Work. Tenant shall not be responsible for any additional Building charges, including, but not limited to,
freight elevator usage during Building Hours, operator’s cost unless coordination is needed, loading dock fees during the
Building’s normal dock operating hours, or security guard charges unless needed.

 

    	 	B-2-4	 

     

    

 

EXHIBIT
C

 

BUILDING
RULES AND REGULATIONS

 

1.                  
Sidewalks, doorways, vestibules, halls, stairways, and similar areas shall not be obstructed nor shall refuse, furniture,
boxes or other items be placed therein by Tenant or its officers, agents, servants, and employees, or used for any purpose other
than ingress and egress to and from the leased premises, or for going from one part of the Building to another part of the Building.
Canvassing, soliciting and peddling in the Building are prohibited.

 

2.                  
Plumbing fixtures and appliances shall be used only for the purposes for which constructed and no unsuitable material shall
be placed therein.

 

3.                  
No signs, directories, posters, advertisements, or notices shall be painted or affixed on or to any of the windows or doors,
or in corridors or other parts of the Building except in such color, size and style and in such places as shall be first approved
in writing by Landlord in its reasonable discretion, which shall not be withheld, conditioned or delayed. Landlord shall have the
right to remove all unapproved signs without notice to Tenant, at the expense of Tenant.

 

4.                  
Tenants shall not do, or permit anything to be done in or about the Building, or bring or keep anything therein, that will
in any way increase the rate of fire or other insurance on the Building, or on property kept therein or otherwise increase the
possibility of fire or other casualty.

 

5.                  
Landlord shall have the power to prescribe the weight and position of heavy equipment or objects which may overstress any
portion of the floor. All damage done to the Building by the improper placing of such heavy items will be repaired at the sole
expense of the responsible Tenant.

 

6.                  
A Tenant shall notify the Building manager when safes or other heavy equipment are to be taken in or out of the Building,
and the moving shall be done after written permission is obtained from Landlord on such conditions as Landlord shall require.

 

7.                  
Corridor doors, when not in use, shall be kept closed.

 

8.                  
All deliveries must be made via the service entrance and service elevator. Landlord’s written approval must be obtained
for any delivery after normal working hours.

 

9.                  
Each Tenant shall cooperate with Landlord’s employees in keeping their leased premises neat and clean.

 

10.               
Tenants shall not cause or permit any improper noises in the Building, or allow any unpleasant odors to emanate from the
leased premises, or otherwise interfere, injure or annoy in any way other tenants, or persons having business with them.

 

11.               
No animals shall be brought into or kept in or about the Building, except guide dogs or similar support animals accompanying
persons who are physically disabled.

 

12.               
All Common Areas at the Centre are smoke-free. This includes all exterior building entrances, lobbies, garage lobbies, hallways,
restrooms, elevators and fire stairwells. Additionally, pipe and/or cigar smoking is not permitted inside the building.

 

13.               
When conditions are such that Tenant must dispose of crates, boxes, etc., it will be the responsibility of Tenant to dispose
of same prior to, or after the hours of 7:30 a.m. and 5:30 p.m., respectively.

 

14.               
No machinery of any kind, other than ordinary office machines such as computers, copiers and calculators, shall be operated
on the leased premises without the prior written consent of Landlord, nor shall a tenant use or keep in the Building any flammable
or explosive fluid or substance (including Christmas trees and ornaments, or any illuminating materials). No space heaters or fans
shall be operated in the Building.

 

    	 	C-1	 

     

    

 

15.               
No bicycles, motorcycles or similar vehicles will be allowed in the Building.

 

16.               
No nails, hooks or screws shall be driven into or inserted in any part of the Building except as approved by Landlord.

 

17.               
Landlord has the right to evacuate the Building in the event of an emergency or catastrophe.

 

18.               
No food and/or beverages shall be sold from Tenant’s office without the prior written approval of the Building manager.

 

19.               
No additional locks shall be placed upon any doors without the prior written consent of Landlord. All necessary keys shall
be furnished by Landlord, and the same shall be surrendered upon termination of this lease, and Tenant shall then give Landlord
or his agent an explanation of the combination of all locks on the doors or vaults. Tenant shall initially be given two (2) keys
to the leased premises by Landlord. No duplicates of such keys shall be made by Tenants. Additional keys shall be obtained only
from Landlord, at a fee to be determined by Landlord. No dead bolt locks are allowed.

 

20.               
Tenants will not locate furnishings or cabinets adjacent to mechanical or electrical access panels or over air conditioning
outlets so as to prevent operating personnel from servicing such units as routine or emergency access may require. Cost of moving
such furnishing for Landlord’s access will be the Tenant’s responsibility. The lighting and air conditioning equipment
of the Building will remain the exclusive charge of the Building designated personnel.

 

21.               
Tenant shall comply with parking rules and regulations as may be posted or distributed from time to time.

 

22.               
No portion of the Building shall be used for the purpose of lodging rooms.

 

23.               
Tenant is responsible for their vendor’s insurance. A sample vendor insurance document is available from the management
office. Tenant must submit proper vendor insurance 24 hours in advance before a vendor will be allowed to work or deliver to the
premises.

 

24.               
Prior written approval, which shall be at Landlord’s sole discretion, must be obtained for installation of window
shades, blinds or any other window treatment of any kind whatsoever. Landlord will control all internal lighting that may be visible
from the exterior of the Building and shall have the right to change any unapproved lighting, without notice to Tenant, at Tenant’s
expense.

 

25.               
No Tenant shall make any changes or alterations to any portion of the Building without Landlord’s prior written approval,
which may be given on such conditions as Landlord may elect. All such work shall be done by Landlord or by contractors and/or workmen
approved by Landlord, working under Landlord’s supervision.

 

26.               
Tenants shall provide Plexiglas or other pads for all chairs mounted on rollers or casters.

 

27.               
Landlord reserves the right to rescind any of these rules and make such other and further rules and regulations as in its
judgment shall from time to time be necessary or advisable for the operations of the Building, which rules shall be binding upon
each Tenant upon delivery to such Tenant of notice thereof in writing.

 

28.               
 Pursuant to Section 30.07, Texas State Penal Code (trespass by license holder with an openly carried handgun), a person
licensed under Subchapter H, Chapter 411, Government Code (handgun licensing law), may not enter this property with a firearm that
is carried openly.

 

    	 	C-2	 

     

    

 

EXHIBIT
D

 

FORM
TENANT ESTOPPEL CERTIFICATE

 

		TO:	____________ (“Landlord”)

____________

____________

 

and:

_____________ (“Third Party”)

_____________

_____________

 

		Re:	Property Address:

Lease Date: _________________

Between ________________________________________, Landlord and

____________________________________, Tenant

Square Footage Leased: _______________________

Suite No. __________

Floor: _____________

 

The undersigned tenant
(“Tenant”) hereby certifies to Third Party and Landlord as follows:

 

1.                  
The above-described Lease has not been canceled, modified, assigned, extended or amended except __________________________________.

 

2.                  
Base Rent has been paid to the first day of the current month and all additional rent has been paid and collected in a current
manner. There is no prepaid rent except $__________, and the amount of the security deposit is $____________.

 

3.                  
Base Rent is currently payable in the amount of $ ____________ monthly exclusive of Tenant’s Proportionate Share of
Operating Expenses.

 

4.                  
The Lease terminates on ___________, 20__ subject to any renewal option(s) set forth in the Lease.

 

5.                  
All work to be performed for Tenant under the Lease has been performed as required and has been accepted by Tenant, except
____________________________________________________________________.

 

6.                  
The Lease is: (a) in full force and effect; (b) to Tenant’s actual knowledge, free from default; and (c) to
Tenant’s actual knowledge, Tenant has no claims against the Landlord or offsets against rent.

 

7.                  
The Base Year for Operating Expenses, as defined in the said Lease, is _____________________.

 

8.                  
The undersigned has no right or option pursuant to the said Lease or otherwise to purchase all or any part of the Premises
or the Building of which the Premises are a part.

 

9.                  
There are no other agreements written or oral between the undersigned and the Landlord with respect to the Lease and/or
the Premises and Building.

 

10.               
The statements contained herein may be relied upon by the Landlord and by any prospective purchaser of the property of which
the Premises is a part and its mortgage lender.

 

If a blank in this
document is not filled in, the blank will be deemed to read “none”.

 

    	 	D-1	 

     

    

 

If Tenant is a corporation,
the undersigned signatory is a duly appointed Officer of the corporation.

 

	 	Dated this _____ day of _______, 20__.
	 	 	 	 
	 	Tenant:  	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	By:	 
	 	 	Name:  	 
	 	 	Title:	 

 

    	 	D-2	 

     

    

 

EXHIBIT
E

 

TENANT’S
COMMENCEMENT LETTER

 

		To:	____________________________ (“Landlord”)

 

		Date:	____________________________

 

Tenant’s Commencement Letter

 

		____________________________________	

 

The undersigned, as
the Tenant under that certain Office Lease (the “Lease”)
dated ______________, made and entered into between ____________________, a __________________ as Landlord, and the undersigned,
as Tenant, hereby certifies that:

 

		1.	The undersigned has accepted possession and entered into occupancy of the Premises described in
the Lease.

 

		2.	The Commencement Date of the Lease was ________________.

 

		3.	The expiration date of the Lease is __________________.

 

		4.	The Lease is in full force and effect and has not been modified or amended.

 

		5.	Landlord has performed all of its obligations to improve the Premises for occupancy by the undersigned.

 

	 	Very truly yours,
	 	 	 	 
	 	, 
	 	a _______________________________
	 	 	 	 
	 	 	 	 
	 	By:  	 
	 	 	Name:     	 
	 	 	Title:  	 

 

    	 	E-1	 

     

    

 

EXHIBIT
F

 

RENEWAL
OPTION

 

This Exhibit “F”
(“Renewal Exhibit”) describes and specifies the option, granted by Landlord to Tenant to extend and renew this
Lease. Provided that, at the time in question, this Lease is then in full force and effect and there is no event of default under
this Lease which remains uncured following any applicable notice and cure period, Tenant shall have the option (“Option”)
to renew this Lease as follows:

 

1.       For
purposes of this Renewal Exhibit, all terms defined in the Lease will be utilized herein without further definition. Terms specifically
applicable to this Renewal Exhibit shall have the meaning specified in this Renewal Exhibit and shall be delineated by initial
capital letters.

 

2.       Tenant
may, by notifying Landlord of its election in writing not less than nine (9) months nor more than twelve (12) months prior to the
end of the Lease Term (the “Renewal Notice”), renew this Lease for (i) two (2) additional terms of five (5)
years each or (ii) one (1) additional term of ten (10) years (as elected by Tenant and as applicable, “Renewal Term”)
beginning on the date next following the expiration date of the Initial Term. The Renewal Notice must elect either option (i) or
(ii) above. If Tenant fails to make such election in the Renewal Notice, Tenant will be deemed to have elected option (i).

 

3.       The
renewal of this Lease will be upon the same terms, covenants, and conditions applicable during the Lease Term, as provided in the
Lease, except that (a) the Base Rent payable during the Renewal Term shall be an amount equal to the existing “market rental
rate” (as defined below) as of the date on which the Renewal Term commences, (b) the defined term “Lease Term”
shall be deemed to include the “Renewal Term”, and (c) no further renewal option shall apply to the Renewal Term. In
addition, Base Rent shall continue to be adjusted as provided in Paragraph 3 of the Lease.

 

4.       Within
30 days after Landlord receives the Renewal Notice, Landlord shall deliver a notice to Tenant specifying the Market Rental Rate
(the "Market Rental Rate Notice"). The term "Market Rental Rate" means the prevailing fair market
rent and other applicable terms nine (9) months prior to the commencement of the applicable Renewal Term for renewing tenants of
similar credit standing as Tenant in comparable space with equivalent quality, size, utility and location, similar to the Premises
for the length of the Renewal Term during the same period, for comparable buildings in the Lower Tollway Class A office submarket.
Tenant shall notify Landlord within 15 days after the date of the Market Rental Rate Notice whether it approves Landlord's designation
of Market Rental Rate (the "Response Notice"), and if Tenant does not timely give a Response Notice, Tenant is
deemed to reject the Market Rental Rate specified in the Market Rental Rate Notice. If Tenant gives a valid Response Notice that
it disapproves of Landlord's designation of Market Rental Rate, then Landlord and Tenant shall negotiate in good faith for a period
of 30 days after the date of the Response Notice to reach agreement on the Market Rental Rate. If Landlord and Tenant do not reach
agreement on the Market Rental Rate within the 30-day period, then Tenant, as its sole remedy, may revoke its exercise notice by
delivering a "Revocation Notice" (herein so called) to Landlord within 5 days after the end of the 30-day negotiation
period.

 

5.       The
failure of Tenant to exercise the Option herein granted within the time period set forth herein shall constitute a waiver and termination
of such Option. In addition, any termination of this Lease during the Lease Term or any assignment, subletting, or other transfer
by Tenant, whether or not with the approval of Landlord, shall terminate the Option contained in this Renewal Exhibit.

 

6.       If
Tenant rejects Landlord’s determination of the Market Rental Rate and timely notifies Landlord thereof, Tenant may, in its
notice to Landlord, require that the determination of the Market Rental Rate be made by brokers (and if Tenant makes such election,
Tenant shall be deemed to have irrevocably renewed the Lease Term, subject only to the determination of the Market Rental Rate
as provided below). In such event, within ten days thereafter, each party shall select a qualified commercial real estate broker
with at least ten years' experience in leasing property and buildings in the city or submarket in which the Premises are located.
The two brokers shall give their opinion of Market Rental Rate within 20 days after their retention. In the event the opinions
of the two brokers differ and, after good faith efforts over the succeeding 20-day period, they cannot mutually agree, the brokers
shall immediately and jointly appoint a third broker with the qualifications specified above. This third broker shall immediately
(within five days) choose either the determination of Landlord’s broker or Tenant’s broker and such choice of this
third broker shall be final and binding on Landlord and Tenant. Each party shall pay its own costs for its real estate broker.
Following the determination of the Market Rental Rate by the brokers, the parties shall equally share the costs of any third broker.
The parties shall immediately execute an amendment as set forth above. If Tenant fails to timely notify Landlord in writing that
Tenant accepts or rejects Landlord’s determination of the Market Rental Rate, time being of the essence with respect thereto,
Tenant’s rights under this Exhibit shall terminate and Tenant shall have no right to renew this Lease.

 

    	 	F-1	 

     

    

 

7.       Should
Tenant elect to arbitrate and should the arbitration not have been concluded prior to the expiration of the Initial Term, Tenant
shall pay Base Rent and Additional Rent to Landlord after such Initial Term expiration, including Base Rent adjusted to reflect
the Market Rental Rate as Landlord has so determined. If the amount of the Market Rental Rate as determined by arbitration is greater
than or less than Landlord's determination, then any adjustment required to correct the amount previously paid shall be made by
payment by the appropriate party within thirty (30) days after such determination of the Market Rental Rate.

 

    	 	F-2	 

     

    

 

EXHIBIT
G

 

Right
of First REFUSAL

 

1.                  
If during the Lease Term any of the remaining space on the 10th floor of the Building or any space on the 9th
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 (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 G 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 the date of this Lease, regardless whether their leases contain options to renew as of the date of the Lease.

 

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 G 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 in either event this Exhibit G, 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 G.

 

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 this Lease or sublet more than 35% of the Premises except to a Permitted Transferee.

 

5.                  
Notwithstanding the terms of this Exhibit G, if Tenant exercises its right under this Exhibit G
on or before November 30, 2020, subject to availability, regardless of whether there is a bond-fide third party offer, Tenant shall
lease such First Refusal Space on the same terms and conditions as are applicable to the initial Premises; Landlord will provide
parking at a ratio of 5 Garage Spaces per 1,000 square feet of Rentable Area, and the rental for such unreserved Garage Spaces
shall be abated during the Initial Term; Base Rent for the First Refusal Space will be the same Base Rent as applicable to the
initial Premises under this Lease and shall be coterminous with the initial Premises under this Lease and Landlord will provide
the abated base rent and an allowance, equal to the abated Base Rent and the Allowance of the Lease, prorated based on the number
of Lease Months remaining in the Initial Term on the effective date of such expansion, divided by 144 (the Initial Term for which
Base Rent is payable).

 

    	 	G-1	 

     

    

 

EXHIBIT
H

 

REDUCTION
OPTION

 

1.                  
Provided that (i) this Lease is in full force and effect; and (ii) no event of default exists under this Lease that
remains uncured beyond any applicable notice and cure period either on the date Tenant exercises its Contraction Option (as hereinafter
defined) or on the Contraction Date (as hereinafter defined), (iii) Landlord and Tenant enter into an amendment to expand the 1100
Premises by at least 3,000 square feet of Rentable Area (the “Additional Premises’), and (iv) Tenant delivers
Tenant’s prior written notice to Landlord of its intention to terminate (the “Contraction Notice”), at
least 30 days prior to the Contraction Date, Tenant shall have the option (“Contraction Option”) to terminate
this Lease as of the Contraction Date with respect to the 380 Premises (“Contraction Premises”). As used herein,
the “Contraction Date” shall mean the date on which the Premises are expanded to contain the Additional Premises.
Tenant shall pay all Rent due to and through the Contraction Date and shall surrender the Contraction Premises to Landlord on or
before the Contraction Date in the manner and in the condition provided for in this Lease. Tenant’s failure to satisfy its
obligation to vacate the Contraction Premises in accordance with this Exhibit H shall constitute an event of default
and a holdover under this Lease, entitling Landlord to any and all remedies under this Lease, at law and/or in equity and to holdover
rent pursuant to Paragraph 20(f).

 

2.       Tenant
shall permit Landlord or its agents, at any time on and after the date Tenant delivers the Contraction Notice to Landlord, and
without notice or charge therefore to Landlord and without diminution of Rent to enter the Contraction Premises to exhibit the
same to prospective tenants with one (1) business day notice on and after the date Tenant delivers the Contraction Notice to Landlord.

 

3.       If
Tenant exercises its Contraction Option pursuant to this Exhibit H, then effective upon the Contraction Date, (i)
the Contraction Premises shall be deleted from the definition of Premises; (ii) the square feet of Rentable Area of the Premises
shall be reduced accordingly by the square feet of Rentable Area contained in the Contraction Premises; and (iii) the annual Base
Rent shall be decreased proportionately. This Contraction Option shall automatically terminate if Tenant does not deliver a Contraction
Notice in accordance with the time periods set forth in Section 1 or upon Tenant’s exercise of the Contraction Option. In
addition, the Contraction Option is personal with respect to Hallmark Financial Services, Inc. or any Permitted Transferee.

 

4.       On
or before the Contraction Date, Tenant shall surrender to Landlord all keys to any locks or doors entering or within the Contraction
Premises that are not also used to access the remaining Premises, and give to Landlord the explanation of the combination of all
locks for safes, safe cabinets and vault doors, if any, in the Contraction Premises. Within three business days prior to the Contraction
Date, Tenant shall provide to Landlord a list with the name of each employee of Tenant who will retain a key or access card to
the Premises. On and after the Contraction Date, Landlord shall have the right to (i) make any adjustments to the access privileges
associated with the keys and access cards to be retained by the employees of Tenant identified on such list as are necessary to
terminate Tenant’s access to the Contraction Premises and (ii) terminate the access privileges to any keys and access cards
provided to any employees of Tenant that Tenant fails to identify as required by this Section 4.

 

    	 	H-1	 

     

    

 

EXHIBIT
I

 

TERMINATION
OPTION

 

1.       Tenant
shall have the one-time option to terminate this Lease (the "Termination Option") as of the last day of the 96th
Lease Month (the "Termination Date"). Tenant may exercise the Termination Option by delivering written notice
(the "Termination Notice") at least 12 months prior to the Termination Date. If Tenant elects to exercise the
Termination Option, then Tenant shall pay a fee to Landlord (the "Termination Fee") in an amount equal to the
unamortized portion of all transaction costs incurred by Landlord in connection with this Lease (including the commissions paid
to Landlord’s broker and Tenant’s broker and the Allowance), which amount shall accrue interest at 8% per annum and
be amortized over the portion of the Lease Term for which Base Rent is payable plus 6 months' Base Rent (calculated at $34.50 per
RSF with regard to the 1100 Premises and $18.00 per RSF with regard to the 380 Premises). One half of the Termination Fee is due
and payable with the Termination Notice; the other half must be paid at least 30 days before the Termination Date. The Termination
Fee is Rent under the terms of this Lease; Tenant's failure to pay any portion of the Termination Fee when due will entitle Landlord,
without further notice to Tenant, to exercise any of its rights hereunder.

 

2.       Tenant
may not exercise the Termination Option if there is an event of default under this Lease on the date of the Termination Notice
that remains uncured beyond any applicable notice and cure period.

 

3.       Tenant’s
election to exercise the Termination Option, as evidenced by delivery of the Termination Notice, is non-revocable by Tenant; the
Lease automatically terminates on the Termination Date. No termination under this Exhibit I affects any then outstanding
liabilities of Landlord or Tenant under this Lease.

 

    	 	I-1	 

     

    

 

EXHIBIT
J

 

SIGNAGE

 

 

    	 	J-1	 

     

    

 

EXHIBIT
K

 

ROOFTOP
RIGHTS

 

    	 	K-1	 

     

    

 

EXHIBIT
L

 

TEMPORARY
PREMISES

 

 

    	 	L-1	 

     

    

 

EXHIBIT L (CONT.)

 

 

    	 	L-2

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