Document:

<![CDATA[Subordination & Intercreditor Agreement]]>

 EXHIBIT 10.10 
 ILLINOIS 
  

			
		  	
		  	
		  	
		  	
		  	
		  	
		  	
		  	 This space reserved for Recorder’s use only.

 

 SUBORDINATION AND INTERCREDITOR AGREEMENT 

by and between 
 AMERICAN NATIONAL INSURANCE COMPANY, as Senior Lender, 
 and

 TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC, as Junior Lender 

THIS DOCUMENT PREPARED BY AND 
 AFTER
RECORDING RETURN TO: 
 Holland & Knight, LLP 
 131 South Dearborn Street, Suite 3000 
 Chicago, Illinois 60603 

Attention: Robyn Axberg, Esq. 

 SUBORDINATION AND INTERCREDITOR AGREEMENT 

This SUBORDINATION AND INTERCREDITOR AGREEMENT (“Agreement”) is entered into as of this 15th day of December, 2011, by
and between (i) Torchlight Debt Opportunity Fund III, LLC, a Delaware limited liability company (the “Junior Lender”); and (ii) American National Insurance Company, a Texas insurance company (the “Senior
Lender”). 
 Recitals 
 A. Senior Lender is about to make a loan (the “First Mortgage Loan”) to TNP SRT Constitution Trail, LLC, a Delaware limited liability company (“Borrower”)in the original
principal amount of $10,000,000.00, which First Mortgage Loan shall be evidenced by a promissory note in the original principal amount of $10,000,000.00 executed by the Borrower and payable to the order of the Senior Lender (the “Senior
Note”). The Senior Note will be secured by a first Mortgage, Security Agreement and Financing Statement (the “Senior Mortgage”) on a property located at 1710-1730 Bradford Lane, Normal, McLean County, Illinois (the
“Property”). The Property is more fully described in the Senior Mortgage, which is to be recorded herewith, and on Exhibit A attached hereto. The Senior Note will be further secured by a secured by an Absolute Assignment of
Leases and Rents (the “Senior Assignment of Rents”) with respect to the Property. All documents executed by Borrower evidencing, securing or relating to the Senior Note, including, but not limited to, the Senior Mortgage, the Senior
Assignment of Rents and all renewals, extensions, modifications, increases, consolidations and rearrangements of any of the preceding, are collectively referred to as the “Senior Loan Documents.” The indebtedness evidenced or
secured by the Senior Loan Documents is referred to herein as the “Senior Indebtedness”. 
 B. The Junior
Lender is the holder of second mortgage financing (the “Second Mortgage Loan”) in the original principal amount of $15,543,696.00, which Second Mortgage Loan is evidenced by a promissory note in the original principal amount of
$15,543,696.00 executed by the Borrower dated on October 21, 2011 and payable to the order of the Junior Lender (the “Junior Note”). The Junior Note is secured by a second Mortgage, Security Agreement and Assignment of Leases
on the Property (the “Junior Mortgage”), which is recorded as Document Number 2011-23661 in the Registrar of Deeds of McLean County, Illinois and an assignment of leases and rents (the “Junior Assignment of Rents”)
recorded as Document Number 2011-23662 in the Registrar of Deeds of McLean County, Illinois. All documents executed by Borrower evidencing, securing or relating to the Junior Note, including, but not limited to, the Junior Mortgage, the Junior
Assignment of Rents and all renewals, extensions, modifications, increases, consolidations and rearrangements of any of the preceding, are collectively referred to as the “Junior Loan Documents.” The indebtedness evidenced or
secured by the Junior Loan Documents is referred to herein as the “Junior Indebtedness”. 

  
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 C. At the time of the closing of the Senior Loan the Borrower will use the Senior Loan
Proceeds to pay down the Junior Note so that the Junior Indebtedness is not more than $5,586,721.79. 
 D. As a condition to
Senior Lender’s agreement to make the First Mortgage Loan to Owner, Lender requires that the Senior Mortgage be unconditionally and at all times remain a lien or charge upon the Property, prior and superior to all the rights of Subordinate
Lender under the Junior Loan Documents and that Subordinate Lender specifically and unconditionally subordinates the Junior Loan Documents to the liens and charges of the Senior Loan Documents. 

E. Junior Lender agrees to the subordination in favor or Senior Lender 

NOW, THEREFORE, for good and valuable consideration and the receipt and adequacy of which is hereby acknowledged, and to induce Senior
Lender to make the Senior Loan evidenced by the Senior Note and secured by the Senior Deed of Trust, the Senior Lender, the Junior Lender and Senior Lender agree as follows: 
 1. CONSENT TO THE SENIOR MORTGAGE LOAN AND THE JUNIOR MORTGAGE LOAN. Subject to the terms and conditions of this Agreement, (i) Junior Lender consents to the First Mortgage Loan and the First
Mortgage Loan Documents and agrees to permit the Senior Lender to place a first mortgage lien against the Property to secure the Borrower’s obligation to repay amounts due under the Senior Mortgage Loan and (ii) Senior Lender consents to
the Junior Mortgage Loan and the Junior Mortgage Loan Documents and agrees to Junior Lender’s maintenance of a second mortgage lien against the Property to secure Borrower’s obligation to repay amounts due under the Junior Mortgage Loan.

 2. AMOUNTS OF THE SENIOR AND JUNIOR INDEBTEDNESS. 

(a) The Senior Lender shall not, without the prior written consent of the Junior Lender, modify the Senior Loan Documents
or otherwise take any action which has the effect of (A) extending or shortening the maturity date of the Senior Loan, (B) increasing any material monetary obligation of Borrower under the Senior Loan Documents, (C) subjecting the
Property to the lien of any indebtedness, other than the Senior Loan, (D) converting or exchanging the Senior Loan into or for any other indebtedness or subordinate the Senior Loan to any indebtedness of Borrower, (E) cross-defaulting the
Senior Loan with any other indebtedness (including the Junior Loan), (F) amending or modifying the provisions limiting transfers of interests in Borrower or the Property, (G) conferring upon Senior Lender any contingent interest or
so-called “equity kicker” measured on the basis of appreciation or cash flow of the Premises, (H) modifying the provisions of Section 11.22(b) of the Senior Mortgage relative to the partial release of the lien of the Senior
Mortgage or (I) increasing the Senior Indebtedness outstanding under, or secured by, the Senior Mortgage in excess of $10,000,000.00 plus (a) interest, (b) late charges, (d) collection costs (including, without limit, reasonable
attorneys’ fees), 

  
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(e) taxes paid by the Senior Lender, (f) insurance premiums paid by the Senior Lender, and (g) other expenditures made by the Senior Lender in accordance with the Senior Mortgage or
other Senior Loan Documents to: (i) protect the validity, priority or enforceability of any of the Senior Loan Documents or the liens or security interests created thereby; (ii) protect or preserve any collateral or security granted,
assigned or pledged to it under the Senior Loan Documents; (iii) to perform any obligation of the Borrower under any lease to any tenant of the Property; or (iv) cure any default of the Borrower under the Senior Loan Documents. Senior
Lender may, upon notice to Junior Lender but without the necessity of Junior Lender’s consent, modify the Senior Loan Documents in a manner which does not violate this Section 2(a). 

(b) The Junior Lender shall not, without the prior written consent of the Senior Lender, modify the Junior Loan Documents
or otherwise take any action which has the effect of (A) extending or shortening the maturity date of the Junior Loan, (B) increasing any material monetary obligation of Borrower under the Junior Loan Documents, (C) subjecting the
Property to the lien of any indebtedness, other than the Junior Loan, (D) converting or exchanging the Junior Loan into or for any other indebtedness or subordinate the Junior Loan to any indebtedness of Borrower, (E) cross-defaulting the
Junior Loan with any other indebtedness (including the Senior Loan), (F) amending or modifying the provisions limiting transfers of interests in Borrower or the Property, (G) conferring upon Junior Lender any contingent interest or
so-called “equity kicker” measured on the basis of appreciation or cash flow of the Property, or (H) increasing the Junior Indebtedness outstanding under, or secured by, the Junior Mortgage in excess of $5,586,721.79 plus
(a) interest (including interest at the rate of five percent (5%) per annum, which is added to the principal amount of the Junior Indebtedness on the first day of each month during the term of the Junior Loan, whereupon such amount itself
bears interest at the contract rate (15%) set forth in the Junior Loan Documents), (b) collection costs (including, without limit, reasonable attorneys’ fees), (c) taxes paid by the Junior Lender, (d) insurance premiums paid
by the Junior Lender, and (e) other expenditures made by the Junior Lender in accordance with the Junior Mortgage or other Junior Loan Documents to: (i) protect the validity, priority or enforceability of any of the Junior Loan Documents
or the liens or security interests created thereby; (ii) protect or preserve any collateral or security granted, assigned or pledged to it under the Junior Loan Documents; (iii) to perform any obligation of the Borrower under any lease to
any tenant of the Property; or (iv) cure any default of the Borrower under the Junior Loan Documents. Junior Lender may, upon notice to Senior Lender but without the necessity of Senior Lender’s consent, modify the Junior Loan Documents in
a manner which does not violate this Section 2(b). Junior Lender represents that, on the date hereof after the application of the proceeds of the Senior Loan to the Junior Loan, the principal amount of the Junior Indebtedness is $5,300,000.

 3. SUBORDINATION. Junior Lender agrees that the liens and security interests granted or otherwise created by or
pursuant to the Junior Mortgage or any other Junior Loan Documents, including all renewals, extensions, modifications, increases, consolidations and rearrangements thereof, (such liens and security interests are collectively referred to herein as
the “Junior Lien”) and all advances secured by the 

  
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Junior Loan Documents shall be subject and subordinate to the liens and security interests granted or otherwise created by or pursuant to the Senior Mortgage or any other Senior Loan Documents,
including all renewals, extensions, modifications, increases, consolidations and rearrangements, (such liens and security interests are collectively referred to herein as the “Senior Lien”) and all advances secured by the Senior
Loan Documents (the Property and all other property on or in which the Senior Lender is granted a lien or a security interest pursuant to any of the Senior Loan Documents is collectively referred to herein as the “Senior
Collateral”). The foregoing subordination of the Junior Lien to the Senior Lien shall apply notwithstanding the time, order or method of granting, attachment or perfection of the respective liens or security interests of the Senior Lender
and the Junior Lender, and notwithstanding any lack of or failure in such granting, attachment or perfection. In addition, without limiting the foregoing, the Junior Lender agrees that all rights and remedies of the Junior Lender under any of the
Junior Loan Documents or otherwise in and to the Senior Collateral and the proceeds thereof (including but not limited to assignments of leases and rents, issues and profits and rights with respect to insurance proceeds and condemnation awards) or
otherwise with respect to the Junior Indebtedness, and the terms and provisions of the Junior Loan Documents, shall be expressly subject and subordinate to the rights and remedies of the Senior Lender under any of the Senior Loan Documents or
otherwise in and to the Senior Collateral and the proceeds thereof (including but not limited to assignments of leases and rents, issues and profits and rights with respect to insurance proceeds and condemnation awards) or otherwise with respect to
the Senior Indebtedness and the terms and provisions of the Senior Loan Documents. The Junior Lender hereby consents and agrees that the Senior Lender may purchase, sell, assign, release, abandon or dispose of the Property by private or public sale
with or without notice, pursuant to court order, under the Uniform Commercial Code, Bankruptcy Code or otherwise and by any means, all free and clear of any interest or claim of or by the Junior Lender with respect thereto and all without liability
of the Senior Lender or its agent to account for, allocate or deliver to the Junior Lender any proceeds or distributions received by the Senior Lender, except for proceeds that are in excess of the amount to fully satisfy the obligations under the
Senior Indebtedness. Until the Senior Indebtedness is paid in full, the Junior Lender waives any requirement regarding, and agrees not to demand, request, plead or otherwise claim the benefit of, any foreclosure, appraisement, valuation, minimum bid
or upset price, adequate protection or any other right (including, without limitation, as provided in the Uniform Commercial Code or the Bankruptcy Code) contemplated at law or in equity (whether or not relating to notice, diligence, presentment,
demand, protest, setoff, reliance, defense, counterclaim or election) that may otherwise be available to the Junior Lender. 

4. ADJUSTMENTS; PAYMENTS. Upon the Junior Lender’s receipt of written notice from the Senior Lender that an event of default
under the Senior Loan Documents (an “Event of Default”) exists or is continuing, until such time, if any, as such Event of Default is cured, the Junior Lender shall not take or receive, any payment with respect to the Junior
Indebtedness. In the event that any payment of the Junior Indebtedness is received by the Junior Lender in violation of the foregoing, whether from 

  
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the Borrower or from any other party, such payment will be held in trust for the benefit of the Senior Lender and, until the Senior Indebtedness has been finally and indefeasibly paid in full or
the default cured, will be promptly paid over to the Senior Lender for application toward the Senior Indebtedness. The Junior Lender shall hold any such payment in trust for the benefit of the Senior Lender, and, upon written request therefor,
promptly pay over such amount to the Senior Lender for application toward the Senior Indebtedness. 
 5. BANKRUPTCY, ETC.
Until payment in full of the Senior Indebtedness, in the event of any distribution, division or application, partial or complete, voluntary or involuntary, by operation of law or otherwise, of all or any substantial part of the property, assets or
business of the Borrower or the proceeds thereof, to any creditor or creditors of the Borrower, or upon any liquidation, termination, dissolution or other winding-up of the Borrower of its business or by reason of any sale, receivership, insolvency,
reorganization or bankruptcy proceedings, assignment for the benefit of creditors, arrangement or any proceeding by or against the Borrower for any relief under any federal or state bankruptcy, reorganization or insolvency law or laws, or any
federal or state law relating to the relief of debtors, readjustment of indebtedness, reorganization, composition or extension, then and in any such event: (a) the Senior Lender will first be entitled to receive payment in full thereof before
the Junior Lender will be entitled to receive or retain any payment (whether in cash, property, securities or otherwise) on account of the Junior Loan Documents; (b) any payment or distribution of assets of the Borrower of any kind or
character, whether in cash, property, securities or otherwise, to which the Junior Lender would be entitled but for the provisions hereof, will be made by the Borrower or by any receiver, trustee in bankruptcy, custodian, liquidating trustee, agent
or other person making such payment of distribution directly to the Senior Lender, until the Senior Indebtedness has been paid in full, for the benefit of the Senior Lender or its agent, to the extent necessary to pay in full all amounts due and
unpaid thereon after giving effect to any concurrent payment or distribution to the Senior Lender, and (c) in the event that, notwithstanding the foregoing, any such payment or distribution of assets is received by the Junior Lender on account
of, or with respect to, the Junior Loan Documents before the Senior Indebtedness has been paid in full, such payment or distribution will be held in trust for the benefit of the Senior Lender, and, upon written request therefor, promptly paid over
to the Senior Lender for application toward the Senior Indebtedness. 
 6. REORGANIZATION PLAN, VOTING, SENIOR LENDER
CLAIMS. In any case commenced by or against the Borrower under any insolvency, reorganization, bankruptcy or related or similar proceedings under the laws of the United States or under applicable state law (“Bankruptcy Laws”),
the Senior Lender shall have the exclusive right to exercise any voting rights in respect of the Senior Loan Documents. Without limiting the generality of the foregoing, the Junior Lender waives and releases the right to vote in favor of any plan of
reorganization or other plan under Bankruptcy Laws, unless (a) the Senior Lender grants its consent to the plan or the Senior Lender votes to accept such plan; or (b) no uncured Event of Default exists under the Senior Loan Documents
(other than the bankruptcy filing) and the plan provides the Borrower shall pay and perform the obligations under the Senior Loan Documents in accordance with their terms 

  
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without modification of any kind or nature whatsoever and without any liens being given priority over the lien rights of the Senior Lender with respect to the Senior Collateral, or (c) the
Senior Lender is granted full and unconditional stay relief to exercise all remedies against the Senior Collateral available to the Senior Lender under the Senior Loan Documents, or at law or in equity. Without limiting the generality of the
foregoing, in the event of a bankruptcy or insolvency of the Borrower, the Junior Lender shall not object to or oppose any efforts by the Senior Lender to obtain relief from the automatic stay under Section 362 of the United States Bankruptcy
Code, shall not dispute or make any claim challenging the validity or priority of the Senior Loan Documents or the lien rights of the Senior Lender thereunder (whether such dispute or claim alleges a preference, fraudulent transfer or otherwise in
favor of the Senior Lender), shall not seek any “super priority” lien that would seek to subordinate (whether through the doctrine of equitable subordination or otherwise) the lien rights of the Senior Lender to any junior interest, and
shall not seek to cause the Borrower’s bankruptcy estate to abandon the Senior Collateral (or any portion thereof) that is subject to the Senior Loan Documents. 
 7. REPRESENTATIONS AND COVENANTS OF THE JUNIOR LENDER. The Junior Lender covenants and agrees for the benefit of the Senior Lender (a) intentionally omitted; (b) that Senior Lender, in
making disbursement pursuant to any agreement relating to the Senior Indebtedness (whether obligatory or optional), is under no obligation or duty to, nor has Senior Lender represented that it will, see to the application of such proceeds by the
person or persons to whom Senior Lender disburses such proceeds, and any application or use of such proceeds for purposes other than those provided for in such agreement or agreements shall not defeat the subordination herein made in whole or in
part; and (c) except as otherwise provided herein, so long as any of the Senior Indebtedness shall remain unpaid, the Senior Lender may at all times exercise any and all powers and rights which it now has or may hereafter acquire with respect
to the Senior Mortgage, Senior Assignment of Rents and any other Senior Loan Document, or any of the Senior Collateral securing the Senior Indebtedness without having to obtain any consent or approval of the Junior Lender and without any
accountability to the Junior Lender, nor shall it have any liability to the Junior Lender for any action taken or failure to act with respect to this Agreement, the Senior Mortgage, Senior Assignment of Rents and any other Senior Loan Documents or
the Senior Collateral. 
 8. REPRESENTATIONS BY SENIOR LENDER. Senior Lender represents and warrants as follows:

 (a) Exhibit B annexed hereto sets forth a true, correct and complete list of all Senior Loan Documents.

 (b) Senior Lender is the legal and beneficial owner of the Senior Loan Documents. 

(c) Senior Lender is duly formed, validly existing and in good standing in the laws of the jurisdiction in which it was
formed. This Agreement constituters the legal, valid and binding obligation of Senior Lender. No consents or authorizations are required for Senior Lender to enter into this Agreement, other than any such consent or authorization which has been
obtained. 

  
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 (d) The Senior Loan Documents are not cross-defaulted with any other
indebtedness. 
 9. REPRESENTATIONS BY JUNIOR LENDER. Junior Lender represents and warrants as follows: 

(a) Exhibit C annexed hereto sets forth a true, correct and complete list of all Junior Loan Documents. 

(b) Junior Lender is the legal and beneficial owner of the Junior Loan Documents. 

(c) Junior Lender is duly formed, validly existing and in good standing in the laws of the jurisdiction in which it was
formed. This Agreement constituters the legal, valid and binding obligation of Junior Lender. No consents or authorizations are required for Junior Lender to enter into this Agreement, other than any such consent or authorization which has been
obtained. 
 (d) The Junior Loan Documents are not cross-defaulted with any other indebtedness. 

10. NOTICE OF DEFAULT UNDER SENIOR LOAN DOCUMENTS. Notwithstanding any provisions herein to the contrary, or any provisions in the
Senior Loan Documents to the contrary, Senior Lender shall, simultaneously with the giving of any notice of default under the Senior Loan Documents to the Borrower, provide Junior Lender with a copy of such notice. The Loan Documents do not require
the Senior Lender to provide Borrower with notices of default for nonpayment of the Senior Note; if Senior Lender elects not to provide Borrower with any such notice Senior Lender shall nonetheless provide Junior Lender with notice of such default.
Junior Lender shall have the right, but not the obligation, to effect a cure of such default within (a) for such defaults which are curable solely by the payment of money, ten (10) days after such notice, and (2) for all other
defaults, thirty (30) days after such notice (provided, however, that if such default is not reasonably susceptible of cure within the aforesaid thirty (30) day period, Junior Lender shall be entitled to such additional period of time, not
to exceed 30 (thirty) days, to cure such default), and, in such event, Senior Lender shall accept such cure as if it were performed by the Borrower. 
 11. PURCHASE OPTION. Senior Lender and Junior Lender further agree that Junior Lender shall have the right, but not the obligation, to purchase the Senior Loan Documents in accordance with the
provisions of this Section 9. Senior Lender agrees to provide Junior Lender with written notice of any acceleration of the maturity of Senior Note due to an event of default under any Senior Loan Documents and Junior Lender at any time
thereafter until the earlier of the following: (a) the cure of such default by 

  
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Borrower, or (b) thirty (30) days after the giving of such notice, the Junior Lender shall have the right, but not the obligation, to purchase the Senior Loan Documents by payment in
full in cash to Senior Lender of an amount (the “Purchase Price”) equal to the amount which would be required to repay the Indebtedness, as defined in the Senior Mortgage, in full at the time of such payment and obtain a full
release or assignment (without recourse, except as hereinafter provided in this Section 11) of such Senior Mortgage if such payment were made by the Borrower (1) expressly including all of the following: (a) accrued but unpaid
interest, including interest at the default rate, (b) late fees, (c) collection costs or enforcement costs, (d) taxes paid by the Senior Lender, (e) insurance premiums paid by the Senior Lender, and (e) other expenditures
made by the Senior Lender in accordance with the Senior Mortgage or other Senior Loan Documents to: (i) protect the validity, priority or enforceability of any of the Senior Loan Documents or the liens or security interests created thereby;
(ii) protect or preserve any collateral or security granted, assigned or pledged to it under the Senior Loan Documents; (iii) to perform any obligation of the Borrower under any lease to any tenant of the Property; or (iv) cure any
default of the Borrower under the Senior Loan Documents, but (2) expressly excluding any prepayment fees, prepayment premiums, yield maintenance fees or exit fees provided in the Senior Note or other Senior Loan Documents. Upon
payment to Senior Lender of the Purchase Price as provided in this Exhibit “B”, Senior Lender shall transfer and assign the Senior Note and other Senior Loan Documents to Junior Lender WITHOUT RECOURSE and without any representation or
warranty whatsoever, express or implied, except only that the Senior Lender shall represent that it is the owner and holder of the Senior Loan Documents and that it has not previously pledged, transferred or hypothecated the same. 

12. NOTICES. Each notice, request, demand, consent, approval or other communication (hereinafter in this section referred to
collectively as “notices” and referred to singly as a “notice”) which the Senior Lender or the Junior Lender is required or permitted to give to the other party pursuant to this Agreement shall be in writing and shall be deemed
to have been duly and sufficiently given if (a) personally delivered with proof of delivery thereof (any notice so delivered shall be deemed to have been received at the time so delivered), or (b) sent by Federal Express (or other similar
national overnight courier) designating early morning delivery (any notice so delivered shall be deemed to have been received on the next business day following receipt by the courier), or (c) sent by United States registered or certified mail,
return receipt requested, postage prepaid, at a post office regularly maintained by the United States Postal Service (any notice so sent shall be deemed to have been received two days after mailing in the United States), addressed to the respective
parties as follows: 
  

			
		  	JUNIOR LENDER:
		
		  	 TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC
 c/o Torchlight Investors
 230 Park Avenue
 New York, New York 10169

  
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		  	Attn: Steve Schwartz
		
		  	with a copy:
		
		  	 TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC
 c/o Torchlight Investors
 230 Park Avenue
 New York, New York 10169
 Attn: Abbey Kosakowski, Esq.

		
		  	and a copy to:
		
		  	 TORCHLIGHT LOAN SERVICES, LLC

c/o Torchlight Investors
 230 Park
Avenue
 New York, New York 10169
 Attn:
Loan Servicing

		
		  	SENIOR LENDER:
		
		  	 American National Insurance Company
 One Moody Plaza
 Galveston, Texas 77550-7947

Attn: Mortgage and Real Estate Investments Department

		
		  	with a copy to:
		
		  	 Greer Hertz & Adams LLP

2525 South Shore Blvd.
Suite 203
League City, Texas 77573
 Attn: Darryl H. Levy, Esq.

 13. MISCELLANEOUS. 

(a) The terms of this Agreement, and the rights of the Senior Lender and the obligations of the Junior Lender arising
hereunder, shall not be affected, modified or impaired in any manner or to any extent by: (i) any renewal, extension, modification of or supplement to the Senior Loan Documents or the Junior Loan Documents or any other instrument or document
executed or delivered pursuant thereto, which, in any such case, does not violate Section 1 hereof; (ii) the lack of validity, legality or enforceability of any of such Senior Loan Documents or the Junior Loan Documents; (iii) any
exercise or non-exercise of any right, power or remedy under or in respect of the Senior Indebtedness or the Junior Indebtedness or any of such instruments or documents referred to in clause (i) above or arising at law; or (iv) any waiver,
consent, release, indulgence, extension, 

  
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renewal, modification, delay or other action, inaction or omission in respect of the Senior Indebtedness or the Junior Indebtedness or any of the instruments or documents referred to in clause
(i) above which, in any such case, does not violate the terms of Section 1 hereof, whether or not the Junior Lender shall have had notice or knowledge of any of the foregoing and whether or not it shall have consented thereto. The rights
and remedies provided herein and in any Senior Loan Documents and all other documents referred to in any of the foregoing are cumulative and shall not be exclusive of any rights or remedies provided by law or in equity. 

(b) The Junior Lender, at no out-of-pocket cost to Junior Lender, hereby agrees to execute and deliver such further
documents and to do such other reasonable acts and things as the Senior Lender may reasonably request in order fully to effectuate the purposes hereof. 
 (c) Upon request of the Senior Lender, the Borrower or any tenant of all or any portion of the Property, the Junior Lender shall execute and deliver a subordination, non-disturbance and attornment
agreement related to any existing or future tenant of all or any portion of the Property, in the same or substantially the same form executed by the Senior Lender. 

(d) The Junior Lender acknowledges that the Senior Lender has not made to the Junior Lender, nor does the Senior Lender
hereby or otherwise make to the Junior Lender, any representations or warranties, express or implied, nor does the Senior Lender assume any liability to the Junior Lender with respect to any event or condition. The Junior Lender agrees that the
Senior Lender will not be liable to the Junior Lender for any action or failure to act or any error of judgment, negligence or mistake or oversight whatsoever on the part of the Senior Lender or any of its agents, officers, employees or attorneys
with respect to any transaction relating to the Senior Indebtedness or any security or guaranties therefor. The Senior Lender acknowledges that the Junior Lender has not made to the Senior Lender, nor does the Junior Lender hereby or otherwise make
to the Senior Lender, any representations or warranties, express or implied, nor does the Junior Lender assume any liability to the Senior Lender with respect to any event or condition. The Senior Lender agrees that the Junior Lender will not be
liable to the Senior Lender for any action or failure to act or any error of judgment, negligence or mistake or oversight whatsoever on the part of the Junior Lender or any of its agents, officers, employees or attorneys with respect to any
transaction relating to the Junior Indebtedness or any security or guaranties therefor. 
 (e) Neither party will
knowingly take any action inconsistent with the terms of this Agreement. 
 (f) Time is of the essence of this
Agreement. 
 (g) The covenants, agreements and provisions in this Agreement are independent of each other.

  
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 (h) Each party waives any right it may have to a trial by jury in respect of
any action or proceeding under this Agreement. 
 (i) The parties hereto do not intend the benefits of this
Agreement to inure to any other person, including Borrower or Guarantor. 
 14. DURATION. This Agreement is of a
continuing nature, and it will continue in force so long as any portion of the Senior Indebtedness remains unpaid. 
 15.
SUCCESSORS AND ASSIGNS. This Agreement is binding upon and inures to the benefit of the Senior Lender and the Junior Lender and their respective successors and assigns. 
 16. AMENDMENTS AND WAIVERS. This Agreement may be modified or waived only by a writing signed by the parties hereto. 
 17. SEVERABILITY. Every provision of this Agreement is intended to be severable, and, if any term or provision hereof shall be invalid, illegal or unenforceable for any reason, the validity,
legality and enforceability of the remaining terms and provisions hereof shall not be affected or impaired thereby, and any invalidity, illegality or unenforceability in any jurisdiction shall not affect the validity, legality or enforceability of
any such term or provision in any other jurisdiction. 
 18. COUNTERPARTS. This Agreement may be executed in
counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. The parties to this Agreement expressly agree that the signature pages and acknowledgments may be separated from any
counterpart of this Agreement and reattached to any other counterpart without affecting the validity or enforceability of this Agreement. 
 19. DESCRIPTIVE HEADINGS. The descriptive headings of the several paragraphs of this Agreement are for convenience of reference only and do not constitute a part of this Agreement and are not to be
considered in construing or interpreting this Agreement. 
 20. REMEDIES. In the event that either party fails to observe
or perform any covenant or agreement to be observed or performed under this Agreement, the non-defaulting party may proceed to protect and enforce its rights by suit in equity or action at law, whether for specific performance of any term contained
in this Agreement or for an injunction against the breach of any such term or in aid of the exercise of any power granted in this Agreement or to enforce any other legal or equitable right of such party, or to take any one or more such actions. The
non-prevailing parties agree to pay all costs and expenses including without limitation, costs, reasonable fees and expenses of attorneys, accountants and other experts retained by the party in connection with the enforcement or interpretation of
this Agreement or the collection of any sums due hereunder, in addition to damages, injunctive relief or any other relief to which it may be entitled hereunder. 

  
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 21. GOVERNING LAW. IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY
AND PERFORMANCE, THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS ARISING HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF ILLINOIS APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT
REGARD TO PRINCIPLES THEREOF REGARDING CONFLICTS OF LAWS. 
 22. TERMS. Wherever required by the context of this
Agreement, the masculine, feminine and neuter gender shall each include the other and the singular shall include the plural and vice versa. 
 23. ESTOPPEL. 
 (a) Junior shall, within fifteen
(15) days following a request from Senior Lender, provide Senior Lender with a written statement setting forth the then current outstanding principal balance of the Junior Loan, the aggregate accrued and unpaid interest under the Junior Loan,
and stating whether to Junior Lender’s knowledge any default or event of default exists under the Mezzanine Loan. 
 (b) Senior Lender shall, within fifteen (15) days following a request from Mezzanine Lender, provide Senior Lender with a written statement setting forth the then current outstanding principal
balance of the Senior Loan, the aggregate accrued and unpaid interest under the Senior Loan, and stating whether to Senior Lender’s knowledge any default or event of default exists under the Senior Loan. 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK] 

  
 13 

 [SIGNATURE PAGE FOR INTERCREDITOR AGREEMENT] 

IN WITNESS WHEREOF, the parties hereto have executed this Intercreditor Agreement as of the day and year first written above. 

 

			
	Senior Lender:
	
	 American National Insurance Company,
 a Texas insurance company

		
	By:	 	/s/ Scott F. Brast
	Name:	 	Scott F. Brast
	Title:	 	Senior Vice President

  

			
	 STATE OF TEXAS
	  	§
		  	§
	 COUNTY OF GALVESTON
	  	§

 Before me, the undersigned authority, a Notary Public, on this day personally appeared
                            ,
                             of AMERICAN NATIONAL INSURANCE COMPANY, a Texas insurance company, known
to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged that he executed and delivered the foregoing instrument for the purposes and consideration therein expressed, and as the act of said corporation.

 Given under my hand and notarial seal this             
day of                     , 2011. 
  

			
		 	 
		 	Notary Public
		
		 	My Commission Expires:
                                    

  
 14 

 [SIGNATURE PAGE FOR INTERCREDITOR AGREEMENT] 

 

			
	Junior Lender:
	
	TORCHLIGHT DEBT OPPORTUNITY FUND III, LLC a Delaware limited liability company
		
	By:	 	/s/ Abbey Kosakowski
	Name:	 	Abbey Kosakowski
	Title:	 	 

  

			
	 State of New York
	  	)
		  	)                ss.:
	County of
                            	  	)

 On the 15th day of December in the year 2011, before me, personally appeared
                    ,
                                        
of TORCHLIGHT DEBT OPPORTUNTY FUND III, LLC, a Delaware limited liability company, personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and
acknowledged to me that he/she/they executed the same in his/her/their capacity(ies), and that by his/her their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument.

  

	
	
	 
	Notary Public

  
 15 

 EXHIBIT A 

Legal Description of Property 

  
 16 

 EXHIBIT B 

Senior Loan Documents 
  

	1.	Promissory Note in the original principal sum of $10,000,000.00; 

  

	2.	Mortgage, Security Agreement and Financing Statement; 

  

	3.	Absolute Assignment of Leases and Rents; 

  

	4.	Financing Statement (Delaware Secretary of State); 

  

	5.	Financing Statement (McLean County, Illinois); 

  

	6.	Certificate and Indemnity Regarding Hazardous Substances; 

  

	7.	Closing Certificate; 

  

	8.	Member’s Certificate; 

  

	9.	Side letter regarding tax and insurance escrows; 

  

	10.	Side letter regarding audited financial statements; 

  

	11.	Side letter regarding interest; 

  

	12.	No Oral Agreements Letter; 

  

	13.	Acknowledgment of Non-Representation by Noteholder’s Counsel; 

  

	14.	Master Lease Agreement; 

  

	15.	Master Lease Guaranty; 

  

	16.	Subordination, Non-disturbance and Attornment Agreement; 

  

	17.	Estoppel Certificate (Master Lease Tenant); 

  

	18.	Master Lease Guarantor’s Estoppel Certificate; 

  

	19.	Side letter agreement regarding post closing obligations; and 

  

	20.	Assignment of Development Agreement. 

  
 17 

 EXHIBIT C 

Junior Loan Documents 
 1. Promissory Note, dated October 21, 2011, by Borrower in favor of Junior Lender. 
 2.
Mortgage, Security Agreement and Assignment of Leases and Rents, dated October 21, 2011, by Borrower in favor of Junior Lender, and recorded as Document Number 2011-23611 in the office of the Registrar of Deeds of McClean County, Illinois.

 3. Assignment of Leases and Rents, dated October 21, 2011, by Borrower in favor of Lender; of Leases and Rents, and recorded as Document
Number 2011-23622 in the office of the Registrar of Deeds of McClean County, Illinois. 
 4. Collateral Assignment of Agreements, Permits and
Contracts, dated October 21, 2011, by Borrower in favor of Lender. 
 5. Recourse Guaranty, dated October 21, 2011, by Tony Thompson
(“Thompson”) and TNP Strategic Retail Trust LLC (“TNP”; Thompson and TNP, hereinafter, “Guarantors”) in favor of Lender. 
 6. Environmental Indemnity Agreement, dated October 21, 2011, by Guarantors in favor of Lender. 
 7. UCC-1 financing statements in respect of the collateral described therein. 
 As
modified, in the case of each of the foregoing documents or instruments, by that certain Omnibus Modification of Loan Documents, dated as of the date hereof, between Borrower and Lender. 

  
 18Second Amended and Restated Employment Agreement

 EXHIBIT 10.1 
 SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT 
 This Second Amended and
Restated Employment Agreement (“Agreement”), dated as of December 16, 2011 (“Effective Date”) by and between GlobalSCAPE, Inc., a Delaware corporation (“Employer” or the
“Company”), and James R. Morris (“Employee”). 
 R E C I T A L S: 

WHEREAS, pursuant to the terms of that certain Employment Agreement dated as of September 2, 2008, as amended (as amended, the
“Original Agreement”), by and between the Company and Employee, Employee has been employed as the President and Chief Executive Officer of the Company; 
 WHEREAS, the Company and Employee desire to amend and restate the Original Agreement as set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants and agreements hereinafter set forth, the parties hereto agree as follows: 

Section 1. Employment. Employer hereby employs Employee, and Employee hereby accepts employment, upon the terms and subject to the
terms and conditions of this Agreement. Unless otherwise consented to by Board of Directors, Employee’s principal place of employment shall be at the Company’s headquarters in San Antonio, Texas. 

Section 2. Duties. During the Term (as defined below), Employee shall be employed as Chief Executive Officer of Employer. Employee
shall report to the Chairman of the Board of Directors of Employer. Employee agrees to diligently and honestly exercise his business judgment in the discharge of the duties as are customary to this position as those duties are determined from time
to time by the Board of Directors of the Employer (the “Board”) and to fully comply with all laws and regulations pertaining to the performance of this Agreement, all ethical rules, Employer’s Code of Business
Conduct & Ethics for Members of the Board of Directors and Executive Officers as well as any and all of policies, procedures and instructions of the Company including, but not limited to, the provisions of Section 304 of the
Sarbanes-Oxley Act of 2002. Employee agrees to devote his full work time and best efforts to the performance of the duties as an employee of Employer; provided, however, that Employee shall not be precluded from engaging in non-profit
activities (such as serving on the boards of trade and industry associations, or religious, charitable or other community organizations), as long as such activities do not unreasonably interfere with Employee’s duties and responsibilities as
President and Chief Executive Officer of Employer. Employee will not, during the Term, directly or indirectly, engage in any other business, either as an employee, employer, consultant, principal, officer, director, advisor, or in any other
capacity, either with or without compensation, without the prior written consent of the Employer. Employee shall also comply with all reasonable rules and regulations and policies now in effect or as subsequently modified, governing the conduct of
Employer’s employees, including policies relating to insider trading and reporting obligations intended to comply with the Securities Exchange Act of 1933, as amended. 

 
 SECOND AMENDED AND
RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  

 Section 3. Term. The term of employment of Employee hereunder shall commence
on December 5, 2011 and end on December 31, 2014 (the “Term”). This Agreement may be terminated prior to the end of the Term pursuant to Section 6 below. 

Section 4. Compensation and Benefits. In consideration for the services of Employee hereunder, Employer shall compensate
Employee as follows: 
 (a) Base Salary. Until the termination of Employee’s employment hereunder (but subject to
any severance or other payment to which Employee may be entitled pursuant to this Agreement or otherwise following termination of his employment), Employer shall pay Employee a base salary of $250,000 annually (the “Base Salary”),
payable in accordance with the regular payroll practices of Employer for executives, less such deductions or amounts as are required to be deducted or withheld by applicable laws or regulations and less such other deductions or amounts, if any, as
are authorized in writing by Employee. Such Base Salary shall be reviewed at least annually by the Compensation Committee of the Board (the “Committee”), and may be increased in the sole discretion of the Committee, but not
decreased (any increased amount thereupon being the Base Salary hereunder). 
 (b) Incentive Compensation. For each
fiscal year of the Company which ends during the Term, beginning with the fiscal year ending December 31, 2011, Employee shall be eligible to receive an annual cash bonus of up to 40% of the Base Salary (the “Annual Bonus”), as
recommended and approved by the Committee, if the Company and Employee, as applicable, achieve the performance targets set by the Committee and communicated to the Employee. Incentive Compensation shall be paid (i) in accordance with, and
subject to those terms and conditions of, the Company’s annual incentive compensation plan which are administrative or which are required for compliance with Section 162(m) of the Internal Revenue Code of 1986 (the
“Code”); provided that nothing in the Company’s plan shall apply adversely with respect to Employee to the extent inconsistent with the express terms of this Agreement; and (ii) in no event later than the 15th day of the
third month following the end of the taxable year (of the Company or Employee, whichever is later) in which the performance targets have been achieved. Employee shall be required to repay any after-tax portion of Annual Bonus received in respect of
any year in which there is an accounting restatement due to the material noncompliance of the Company with any financial reporting requirement under the securities laws as a result of misconduct. 

(c) Stock Option Plan. Employee shall be granted options to purchase a total of 560,000 shares of common stock, par value $0.001
per share, of Employer (“Stock Options”), all of which have been granted pursuant to the Original Agreement, under the GlobalSCAPE, Inc. 2000 Stock Option Plan and the GlobalSCAPE, Inc. 2010 Employee Long-Term Equity Incentive Plan
(together, the “Plans”) and pursuant to the terms of the Stock Option Agreement in substantially the form used by Employer in connection with the grant of stock options to its officers and executives. 

(d) Paid Time Off. Employee shall be entitled to vacation and other paid time off in accordance with Employer’s policies for
officers and executives, as they may be modified from time to time during Employee’s employment hereunder, provided that Employee will have no less than fifteen (15) days of paid vacation during each year of this Agreement, six
(6) days of 
  
 SECOND AMENDED
AND RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 2 

 
paid sick leave, and three (3) days of personal leave during each one year term accruing bi-weekly. Vacation and personal days shall be scheduled in advance and must be taken at such time or
times as approved by the Board. 
 (e) Group Insurance and Other Benefits. Employee shall be entitled to receive the same
benefits Employer makes generally available to their officers and executives, including, without limitation, participation in Employer’s group health, life and disability programs, and Employee’s entitlement to and participation in such
benefits programs shall be at the same rates which are available to Employer’s other executives and officers. 
 (f)
Savings Plans. Employee shall be entitled to participate in Employer’s 401(k) plan, or other retirement or savings plans as are made available to Employer’s other executives and officers and on the same terms which are available to
Employer’s other executives and officers. 
 Section 5. Expenses. Employer will reimburse Employee for
expenses related to the performance of his duties in accordance with its reimbursement policies for executives and officers in effect from time to time. 
 Section 6. Defined Terms Relating to Termination. The following capitalized terms used in this Agreement shall have the meanings set forth in this Section 6: 

(a) Change in Control. For purposes of this Agreement, a “Change in Control” shall be deemed to have occurred if
(a) any “person” or “group” (as such terms are used in Section 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended, (the “Exchange Act”)) is or becomes the “beneficial owner”
(as defined in Rule 13d-3 under the Exchange Act as in effect on the date hereof, except that a person shall be deemed to be the “beneficial owner” of all shares that any such person has the right to acquire pursuant to any agreement or
arrangement or upon exercise of conversion rights, warrants, options or otherwise, without regard to the sixty day period referred to in such Rule), directly or indirectly, of securities representing 50% or more of the combined voting power of
Employer’s then outstanding securities; provided, however, that if Thomas W. Brown and/or David Mann acquire, directly or indirectly, securities representing 50% or more of the combined voting power of Employer’s then outstanding
securities it shall not be deemed a Change in Control, (b) any person or group (other than Thomas W. Brown or David Mann or entities controlled by either) shall make a tender offer or an exchange offer for 50% or more of the combined voting
power of Employer’s then outstanding securities, (c) at any time during any period of two consecutive years (not including any period prior to the execution of this Agreement), individuals who at the beginning of such period constituted
the board of directors of Employer and any new directors, whose election by the board of directors of Employer or nomination for election by Employer’s stockholders was approved by a vote of at least two-thirds (2/3) of Employer’s
directors then still in office who either were Employer’s directors at the beginning of the period or whose election or nomination for election was previously so approved (“Current Directors”), cease for any reason to
constitute a majority thereof, (d) Employer shall consolidate, merge or exchange securities with any other entity and the stockholders of Employer immediately before the effective time of such transaction do not beneficially own, immediately
after the effective time of such transaction, shares or other equity interests entitling such stockholders to a majority of all 
  

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT –
JAMES R. MORRIS 

  
 3 

 
votes (without consideration of the rights of any class of stock or other equity interests entitled to elect directors by a separate class vote) to which all stockholders of the corporation or
owners of the equity interests of any other entity issuing cash or securities in the consolidation, merger or share exchange would be entitled for the purpose of electing directors or where the Current Directors immediately after the effective time
of the consolidation, merger or share exchange would not constitute a majority of the board of directors or similar governing body of the corporation or other entity issuing cash or securities in the consolidation, merger or share exchange, or
(e) any person or group acquires all or substantially all of Employer’s assets. 
 Notwithstanding the foregoing,
however, a Change in Control shall not be deemed to occur merely by reason of (1) an acquisition of Employer’s securities by, or any consolidation, merger or exchange of securities with, any entity that, immediately prior to such
acquisition, consolidation, merger or exchange of securities, was a “subsidiary,” as such term is defined below. For these purposes, the term “subsidiary” means (i) any corporation, limited liability company or other entity
of which 80% of the capital stock or other equity interests of such entity is owned, directly or indirectly, by Employer and (ii) any unincorporated entity in respect of which Employer has, directly or indirectly, an equivalent degree of
ownership or (2) an acquisition of Company securities by Thomas W. Brown or David Mann. 
 (b) Disability. For
purposes hereof, “Disability” shall be deemed to exist if Employee is suffering from any medical or mental condition that in the Board’s reasonable opinion would prevent him from carrying out his normal duties. Any refusal to
submit to a reasonable medical examination by an independent physician to determine whether Employee is so totally disabled shall be deemed to constitute conclusive evidence of his disability. The determination of such physician made in writing to
the Company and to Employee shall be final and conclusive for all purposes of this Agreement. Termination by the Company or by Employee of his employment based on “Disability” shall be deemed to have occurred if, within thirty
(30) days after written Notice of Termination (as hereinafter defined) is given, Employee shall not have returned to the full-time performance of his duties. 
 (c) Retirement. Termination by the Company or Employee of his employment based on “Retirement” shall mean termination in accordance with the Company’s retirement policy,
generally applicable to its salaried employees or in accordance with any retirement arrangement established with Employee’s consent. 
 (d) Cause. Termination by the Company of Employee’s employment for “Cause” shall mean termination upon: 

(i) the continued failure by Employee to substantially perform his duties with the Company (other than any such failure
resulting from his incapacity due to Disability or any such actual or anticipated failure resulting from termination by Employee for Good Reason) after a written demand for substantial performance is delivered to Employee by the Board, which demand
specifically identifies the manner in which the Board believes that Employee has not substantially performed his duties; 
 (ii) Employee engages in conduct which is demonstrably and materially injurious to the Company or any of its affiliates, monetarily or otherwise; 
  
 SECOND AMENDED AND RESTATED EMPLOYMENT
AGREEMENT – JAMES R. MORRIS 

  
 4 

 (iii) Employee commits fraud, bribery, embezzlement or other material
dishonesty with respect to the business of the Company or any of its affiliates, or the Company discovers that Employee has committed any such act in the past with respect to a previous employer; 

(iv) Employee is indicted for any felony or any criminal act involving moral turpitude, or the Company discovers that
Employee has been convicted of any such act in the past; 
 (v) Employee commits a breach of any of the
covenants, representations, terms or provisions of this Agreement; 
 (vi) Employee violates any instructions or
policies of the Company with respect to the operation of its business or affairs; or 
 (vii) Employee uses
illegal drugs. 
 (e) Good Reason. For purposes of this Agreement, “Good Reason” shall mean, without
Employee’s express written consent: 
 (i) the material failure by the Company, without Employee’s
consent, to pay to Employee any portion of his current compensation within ten (10) days of the date any such compensation payment is due; or 
 (ii) Employer commits a material breach of any of the covenants, representations, terms or provisions hereof, and such breach is not cured within thirty (30) days after written notice thereof to the
Company, which notice shall identify in reasonable detail the nature of the breach and gives Company an opportunity to respond, excluding, however, failure to pay salary within ten (10) days as further provided in subsection (i) above;

 (iii) any material diminution of Employee’s title, function, duties, authority or responsibilities
(including reporting requirements); or 
 (iv) a reduction in Employee’s salary as in effect on the date of
this Agreement or as may be increased from time to time; or 
 (v) a material reduction in the benefits that are
in effect from time to time for Employee; or 
 (vi) a relocation of the Employee’s principal place of
employment to a location which is beyond a 50 mile radius from San Antonio, Texas. 
 Employee must provide notice to the Company within 90 days
of the initial existence of the condition giving rise to “Good Reason”. Upon the receipt of such notice, the Company shall have 30 days to remedy the condition giving rise to “Good Reason”. 

 
 SECOND AMENDED AND
RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 5 

 (f) Notice of Termination. Any purported termination of Employee’s employment by
the Company or by Employee shall be communicated by written notice to the other party hereto in accordance with Section 15(a) hereof (“Notice of Termination”). Such Notice of Termination shall indicate the specific
termination provision in this Agreement relied upon and shall set forth in reasonable detail the facts and circumstances claimed to provide a basis for termination of Employee’s employment under the provisions so indicated. 

(g) Date of Termination, Etc. “Date of Termination” shall mean (i) if Employee’s employment is
terminated for Disability, thirty (30) days after Notice of Termination is given (provided that Employee shall not have returned to the full-time performance of his duties during such thirty (30) day period), or (ii) if
Employee’s employment is terminated for Cause or by Employee for Good Reason or for any other reason (other than Disability), the date specified in the Notice of Termination as the date on which it is reasonably anticipated that no further
services would be performed by Employee for the Company, as an employee or independent contractor (which, in the case of a termination by Employee for Good Reason, shall not be less than two (2) weeks nor more than two (2) months from the
date such Notice of Termination is given). 
 Section 7. Compensation Upon Termination or During Disability.

 (a) Upon termination of Employee’s employment or during a period of Disability, Employee shall be entitled to the
following benefits: 
 (i) Between the date that Employer is given a Notice of Termination for Disability and
Employee’s employment hereunder is terminated as a result of such Disability, Employee shall continue to receive his Base Salary at the rate in effect at the commencement of any such period. Thereafter, Employee shall receive only the
compensation payable to Employee under the Company’s disability plan or other plan during such period in accordance with the terms of any such plan. 
 (ii) If Employee’s employment shall be terminated by the Company for Cause or by Employee other than for Good Reason, Disability, death or Retirement, the Company shall pay Employee his full Base
Salary through the Date of Termination at the rate in effect at the time Notice of Termination is given unpaid and properly documented expense reimbursements incurred in accordance with Employer’s policies prior to termination, and compensation
for accrued, and unused vacation as of the Date of Termination and any amounts to be paid to him pursuant to the Company’s retirement and other benefits plans then in effect (“Accrued Amounts”), and the Company shall have no
further obligations to Employee under this Agreement. 
 (iii) If Employee’s employment shall be terminated
by the Company or by Employee for Retirement or by reason of Employee’s death, Employee’s benefits shall be determined in accordance with the Company’s retirement, benefit and insurance programs then in effect. 

 
 SECOND AMENDED AND
RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 6 

 (iv) If Employee’s employment by the Company shall be terminated by the
Company other than for Cause and other than because of Employee’s death, Disability or Retirement or by Employee for Good Reason then, effective as of the Date of Termination, in lieu of any severance benefits which he otherwise would be
eligible to receive under the Company’s severance plan or policy as in effect immediately prior to any Change in Control, Employee shall be entitled to the benefits (“Severance Benefits”) provided below: 

(A) The Company shall pay Employee Accrued Amounts through the Date of Termination at the rate in effect at the time the
Notice of Termination is given (excluding any severance benefits under the Company’s severance plan or policy); 
 (B) The Company shall pay Employee, in addition to all Accrued Amounts, (i) Employee’s then current Base Salary for the period commencing on the Date of Termination and ending upon the date
which is 18 months after the Date of Termination payable in accordance with the regular payroll practices of the Company; and (ii) if after a Change in Control, Employee’s then current Base Salary times 1.5 payable in one lump sum on the
Date of Termination; and 
 (C) The Employee shall be entitled to continue to receive, at the cost and expense of
the Company, the benefits Employer makes generally available to their officers and executives, in Employer’s group health program, and Employee’s entitlement to and participation in the group health program shall be at the same rates which
are available to Employer’s other executives and officers for a period of 18 months following the Date of Termination. 

(b) Notwithstanding any other provision of this Agreement, if any amount payable hereunder would, individually or together with any other
amounts paid or payable, constitute an “excess parachute payment,” within the meaning of Section 280G of the Internal Revenue Code of 1986 and any applicable regulations thereunder (the “Code”) which would require the
payment by Employee of the excise tax imposed by Section 4999 of the Code or any interest or penalty (such excise tax, together with any such interest and penalties, are hereinafter collectively referred to as the “Excise
Tax”), then he shall be entitled to receive an additional payment (the “Gross-Up Payment”) in an amount such that after the payment by Employee of all taxes (including any interest or penalties imposed with respect to such
taxes) including, without limitation, any income taxes (and any interest and penalties with respect thereto) and the Excise Tax imposed upon the Gross-Up Payment, Employee shall retain an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the total payments to be received by Employee pursuant to this Agreement. The determination of whether the Gross-Up Payment shall be paid shall be made by a nationally recognized accounting firm selected by Employee and such
determination shall be binding upon him and the Company for purposes of this Agreement. The costs and expenses of such accounting firm shall be paid by the Company. 
 (c) Except as specifically provided in this Section 7, Employee shall not be required to mitigate the amount of any payment provided for in this Section 7 by seeking other
employment or otherwise, nor shall the amount of any payment or benefit provided for in this Section 7 be reduced by any compensation earned by him as the result of employment by another employer or by retirement benefits after the Date
of Termination, or otherwise. 
  
 SECOND
AMENDED AND RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 7 

 (d) In the event that any payments under this Section 7 or elsewhere in this
Agreement are determined to be subject to Section 409A of the Code, and Employee is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of the Code and Treasury Regulation §1.409A-1(i), no such payments shall be
made prior to the date that is six (6) months following the Date of Termination. 
 (e) (i) Employee acknowledges and
agrees that (A) Employee is solely responsible for all obligations arising as a result of the tax consequences associated with payments under this Agreement including, without limitation, any taxes, interest or penalties associated with
Section 409A of the Code, (B) Employee is not relying upon any written or oral statement or representation the Company, any of its Affiliates, or any of their respective employees, directors, officers, attorneys or agents (collectively,
the “Company Parties”) regarding the tax effects associated with the execution of the this Agreement and the payment under this Agreement, and (C) in deciding to enter into this Agreement, Employee is relying on his or her own
judgment and the judgment of the professionals of his or her choice with whom Employee has consulted. Employee hereby releases, acquits and forever discharges the Company Parties from all actions, causes of actions, suits, debts, obligations,
liabilities, claims, damages, losses, costs and expenses of any nature whatsoever, known or unknown, on account of, arising out of, or in any way related to the tax effects associated with the execution of this Agreement and any payment under the
Agreement. 
 (ii) Employee must execute a full release of all claims within 60 days following termination of employment in
order to be eligible for Severance Benefits. Without limiting the remedies available to the Company for breach by Employee of Section 8, Section 9, Section 10, , Section 11, or Section 12,
if Employee violates the provisions of such Sections after the termination of Employee’s employment with the Company in a manner reasonably determined by the Board to be injurious to the Company or any of its affiliates, then Employee will
forfeit the right to any payments under this Section 7 which are unpaid at the time such violation occurs. 

Section 8. Inventions; Assignment. 
 (a) Inventions Defined. All rights to discoveries, inventions, improvements, designs and innovations (including all data and records pertaining thereto) that relate to the business of Employer,
including its Affiliates (as defined below), whether or not able to be patented, copyrighted or reduced to writing, that Employee may discover, invent or originate during the term of his employment hereunder, and for a period of six months
thereafter, either alone or with others and whether or not during working hours or by the use of the facilities of Employer (“Inventions”), shall be the exclusive property of Employer. Employee shall promptly disclose all Inventions
to Employer, shall execute at the request of Employer any assignments or other documents Employer may reasonably deem necessary to protect or perfect its rights therein, and shall assist Employer, at Employer’s expense, in obtaining, defending
and enforcing Employer’s rights therein. Employee hereby appoints Employer as his attorney in fact to execute on his behalf any assignments or other documents deemed necessary by Employer to protect or perfect its rights to any Inventions.

  
 SECOND AMENDED AND
RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 8 

 (b) Covenant to Assign and Cooperate. Without limiting the generality of the
foregoing, Employee shall assign and transfer to Employer the worldwide right, title and interest of Employee in the Inventions. Employee agrees that Employer may apply for and receive patent rights (including Letters Patent in the United States)
for the Inventions in Employer’s name in such countries as may be determined solely by Employer. Employee shall provide to Employer all facts known to Employee and reasonably requested by Employer relating to the Inventions, and shall cooperate
with Employer’s reasonable requests in connection with vesting title to the Inventions and related patents exclusively in Employer and in connection with obtaining, maintaining and protecting Employer’s exclusive patent rights in the
Inventions. 
 (c) Successors and Assigns. Employee’s obligations under this Section 8 shall inure to
the benefit of Employer, its Affiliates (as defined below) and their respective successors and assigns and shall survive the expiration of the term of this Agreement for such time as may be necessary to protect the proprietary rights of Employer and
its affiliates in the Inventions. When used herein, “Affiliate” shall mean an entity which, directly or indirectly, alone or together with others, controls, is controlled by or is under common control with, Employer. 

Section 9. Confidential Information. 
 (a) Acknowledgment of Proprietary Interest. Employee acknowledges the proprietary interest of Employer and its Affiliates in all Confidential Information (as defined below). Employee agrees that
all Confidential Information learned by Employee during his employment with Employer or otherwise, whether developed by Employee alone or in conjunction with others or otherwise, is and shall remain the exclusive property of Employer. Employee
further acknowledges and agrees that his disclosure of any Confidential Information will result in irreparable injury and damage to Employer. 
 (b) Confidential Information Defined. “Confidential Information” means all trade secrets, copyrightable works, confidential or proprietary information of Employer or its
Affiliates, including without limitation, (i) information derived from reports, investigations, experiments, research and work in progress, (ii) methods of operation, (iii) market data, (iv) proprietary computer programs and
codes, (v) drawings, designs, plans and proposals, (vi) marketing and sales programs, (vii) the identities of clients or customers, (viii) historical financial information and financial projections, (ix) pricing formulae and
policies, (x) all other concepts, ideas, materials and information prepared or performed for or by Employer and (xi) all information related to the business, services, products, purchases or sales of Employer or any of its customers, other
than (A) information that is publicly available, and (B) information that becomes available to Employee after the termination of his employment with Employer from a third party source not bound by a confidentiality agreement with Employer
with respect to such information. 
 (c) Covenant Not To Divulge Confidential Information. Employer is entitled to
prevent the disclosure of Confidential Information. As a portion of the consideration for the employment of Employee and for the compensation being paid to Employee by Employer, Employee agrees at all times during the term of his employment
hereunder and thereafter to hold in strict confidence and not to disclose to any person, firm or corporation, other than to persons engaged by Employer to further the business of Employer or as necessary to perform Employee’s duties as an
employee of Employer and for the sole benefit of Employer or its Affiliates, and not to use except in the pursuit of the business of Employer, the Confidential Information, without the prior written consent of Employer. 

 
 SECOND AMENDED AND
RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 9 

 (d) Return of Materials at Termination. In the event of any termination or cessation
of his employment with Employer for any reason, Employee shall promptly deliver to Employer all documents, data and other information derived from or otherwise pertaining to Confidential Information. Employee shall not take or retain any documents
or other information, or any reproduction or excerpt thereof, containing any Confidential Information. 
 Section 10.
Non-Solicitation. 
 (a) Solicitation of Employees. During Employee’s employment with Employer and
for a period of eighteen (18) months after termination of such employment at any time and for any reason (the “Restriction Period”), and regardless of whether any payments are made to Employee under this Agreement as a result
of such termination, Employee shall not solicit, participate in or promote the solicitation of any person who was employed by Employer or any of its Affiliates at the time of Employee’s termination of employment with Employer to leave the
employ of Employer or any of its affiliates, or, on behalf of himself or any other person, hire, employ or engage any such person; provided, however, that Employee or an entity for which Employee works shall not be precluded from generally
advertising for employees or from hiring any employees who have not been solicited by Employee, directly or indirectly, in violation of this Section 10(b). 
 (b) Solicitation of Clients, Customers, Etc. During the Restriction Period, and regardless of whether any payments are made to Employee under this Agreement as a result of termination of his
Employment, Employee shall not, directly or indirectly, solicit any person who, at the time of termination of Employee’s employment with Employer, was a client, customer, vendor, consultant or agent of Employer or its Affiliates and with whom
Employee had contact on behalf of Employer during such period, to discontinue business, in whole or in part, with Employer or its Affiliates; provided, however, that the foregoing shall not prohibit Employee from soliciting such clients,
customers, vendors, consultants or agents to do business with any entity or person as long as such solicitation does not include an express or implied solicitation to discontinue business, in whole or in part, with Employer or its Affiliates.

 Section 11. Non-Compete. 
 (a) Competition During Employment. Employee agrees that during the term of his employment with Employer, he will not, directly or indirectly, compete with Employer or its Affiliates in any way, and
that he will not act as an officer, director, employee, consultant, shareholder, partner, equity owner, lender, guarantor or agent of any entity which is engaged in any business in competition with, the businesses in which Employer and its
Affiliates are engaged as of the date hereof or in which Employer or its Affiliates become engaged during the term of his employment; provided, however, that this Section 11(a) shall not prohibit Employee or any of his Affiliates
from: (i) purchasing or holding an aggregate equity interest of up to 1%, so long as Employee and his Affiliates combined do not purchase or hold an aggregate equity interest of more than 5%, in any business in competition with Employer and its
Affiliates. 
  
 SECOND AMENDED
AND RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 10 

 
Furthermore, Employee agrees that during the term of his employment, he will undertake no planning for the organization of any business activity competitive with the work he performs as an
employee of Employer and Employee will not combine or conspire with any other employees of Employer and its Affiliates for the purpose of the organization of any such competitive business activity. 

(b) Competition Following Employment. In order to protect Employer against the unauthorized use or the disclosure of any
Confidential Information of Employer and its Affiliates presently known or hereafter obtained by Employee during his employment under this Agreement, Employee agrees that for a period of eighteen (18) months after the termination or cessation
of his employment with Employer at any time and for any reason, and regardless of whether any payments are made to Employee under this Agreement as a result of such termination (but subject to the provisions of Section 12 hereof),
Employee shall not, directly or indirectly, for himself or on behalf of any other corporation, person, firm, partnership, association, or any other entity (whether as an individual, agent, servant, employee, employer, officer, director, shareholder,
investor, principal, consultant or in any other capacity), engage or participate in any business which engages in competition with the businesses being conducted by Employer or any of its Affiliates during the Term anywhere in any state in the
United States or in any foreign country where Employer or any of its Affiliates distributes software or performs services related to the distribution of software, or any other business in which Employer or any of its Affiliates was actively engaged
at the time of termination of Employee’s employment with Employer; provided, however, that this provision shall not prohibit Employee or any of his Affiliates from (i) purchasing or holding an aggregate equity interest of up to 1%, so long
as Employee and his Affiliates combined do not purchase or hold an aggregate equity interest of more than 5%, in any business in competition with Employer, or (ii) serving as an officer, employee or consultant to any entity or business which
operates through multiple Affiliates or business divisions, as long as Employee is serving as an officer, employee or consultant to an Affiliate or business division which is not engaged in competition with Employer or any of its Affiliates.

 Section 12. Non-Disparagement. During Employee’s employment with Employer and thereafter, Employee agrees
not to make any statement or take any action which disparages, defames, or places in a negative light Employer, Affiliates, or its or their reputation, goodwill, commercial interests or past and present officers, directors and employees. 

Section 13. Effect of Termination; Actions Upon Termination. The Company shall pay Employee when due any and all previously
earned, but as yet unpaid, salary and reimbursement of business expenses submitted in accordance with the Company’s policy as in effect. The provisions of Section 10 and Section 11 shall terminate and be of no further
force and effect in the event (i) Employee’s employment is terminated by Employer without Cause or by Employee for Good Reason, and (ii) Employer fails to timely pay Employee the Severance Benefits and/or any other amounts due
pursuant to Section 7. Upon termination of employment hereunder, Employee shall immediately resign as an officer and/or director of Company and of any Affiliates, including any joint ventures. 

 
 SECOND AMENDED AND
RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 11 

 Section 14. Arbitration. Without limiting either party’s right to seek
equitable remedies under Section 15(c) below or otherwise, Employer and Employee agree that any dispute or controversy arising under or in connection with this Agreement shall be settled by arbitration. Arbitration under this Agreement
shall be governed by the Federal Arbitration Act and proceed in San Antonio, Texas, in accordance with the rules of the American Arbitration Association (“AAA”). Arbitration will be conducted before a panel of three neutral
arbitrators selected from an AAA list of proposed arbitrators with business law experience. Either party may take any legal action needed to protect any right pending completion of the arbitration. The arbitrator will determine whether an issue is
arbitrable and will give effect to applicable statutes of limitation. The arbitrator has the discretion to decide, upon documents only or with a hearing, any motion to dismiss for failure to state a claim or any motion for summary judgment.
Discovery shall be governed by the Federal Rules of Civil Procedure and the Federal Rules of Evidence. All information developed by the arbitration or litigation shall be held in confidence subject to such protective orders, as the arbitrator deems
useful to ensure complete confidentiality. The decision of the arbitrator shall be final and binding on all parties to this Agreement (and any third party beneficiaries of this Agreement), and judgment thereon may be entered in any court having
jurisdiction over the parties. All costs of the arbitration proceeding or litigation to enforce the arbitration award shall be paid by the party against whom the arbitrator decides. The arbitrator shall have no right to award punitive,
consequential, exemplary or analogous damages. 
 Section 15. General. 

(a) Notices. All notices and other communications hereunder shall be in writing or by written telecommunication, and shall be
deemed to have been duly given if delivered personally or if mailed by certified mail, return receipt requested or by written telecommunication, to the relevant address set forth below, or to such other address as the recipient of such notice or
communication shall have specified to the other party in accordance with this Section 15(a): 
 If to Employer, to:

 GlobalSCAPE, Inc. 
 4500 Lockhill Selma Road, Suite 150 
 San Antonio, Texas 78249

 Attention: Chairman of the Board 
 with copy to: 
 Jackson Walker L.L.P. 

112 E. Pecan Street, Suite 2400 
 San Antonio, Texas 78205 
 Attention: Steven R. Jacobs 

If to Employee, to Employee’s last known address appearing on Employer’s records. 

(b) Withholding. All payments required to be made to Employee by Employer under this Agreement shall be subject to the
withholding of such amounts, if any, relating to federal, state and local taxes as may be required by law. 
  
 SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS 

  
 12 

 (c) Equitable Remedies. Each of the parties hereto acknowledges and agrees that upon
any breach by Employee of his obligations under any of Section 8, Section 9, Section 10, Section 11, or Section 12 Employer shall suffer immediate, substantial and irreparable injury and
shall have no adequate remedy at law. Accordingly, in event of such breach, Employer shall be entitled, in addition other remedies and without showing actual damages, to specific performance and other appropriate injunctive and equitable relief.

 (d) Severability. If any provision of this Agreement is held to be illegal, invalid or unenforceable, such
provision shall be fully severable, and this Agreement shall be construed and enforced as if such illegal, invalid or unenforceable provision never comprised a part hereof, and the remaining provisions hereof shall remain in full force and effect
and shall not be affected by the illegal, invalid or unenforceable provision or by its severance. Furthermore, in lieu of such illegal, invalid or unenforceable provision, there shall be added automatically as part of this Agreement a provision as
similar in its terms to such illegal, invalid or unenforceable provision as may be possible and be legal, valid and enforceable. 
 (e) Waivers. No delay or omission by either party in exercising any right, power or privilege hereunder shall impair such right, power or privilege, nor shall any single or partial exercise of
any such right, power or privilege preclude any further exercise thereof or the exercise of any other right, power or privilege. 
 (f) Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.

 (g) Captions. The captions in this Agreement are for convenience of reference only and shall not limit or
otherwise affect any of the terms or provisions hereof. 
 (h) Interpretation of Agreement. This Agreement shall be
construed according to its fair meaning and not for or against either party. Use of the words “herein,” “hereof,” “hereto,” “hereunder” and the like in this Agreement refer to this Agreement only as a whole
and not to any particular section or subsection of this Agreement, unless otherwise noted. The masculine gender shall be deemed to denote the feminine or neuter genders, the singular to denote the plural, and the plural to denote the singular, where
the context so permits. 
 (i) Binding Agreement; Assignment. This Agreement shall be binding upon and inure to the
benefit of the parties and shall be enforceable by the heirs, legal representatives, personal representatives and permitted assigns of Employee and the successors and assigns of Employer. The Affiliates of Employer shall be considered third party
beneficiaries of this Agreement with respect to any services provided by Employee to them and in connection with Employee’s covenants in Section 8, Section 9, Section 10, Section 11, and
Section 12 hereof to the extent such covenants apply with respect to such Affiliates. Employer may assign this Agreement to a successor entity through a merger, consolidation or sale of all or substantially all of the assets; provided
that in the event of any such assignment, Employer shall remain liable for all of its obligations hereunder and shall be liable for all obligations of all such assignees hereunder. If Employee dies while any amounts would still be payable to him
hereunder, such amounts shall be paid to Employee’s estate. This Agreement is not otherwise assignable by Employee. 
  

SECOND AMENDED AND RESTATED EMPLOYMENT AGREEMENT –
JAMES R. MORRIS 

  
 13 

 (j) Entire Agreement. This Agreement contains the entire understanding of the
parties relating to the subject matter hereof, and supersedes all prior agreements and understandings relating to such subject matter, and may not be amended except by a written instrument hereafter signed by each of the parties hereto. 

(k) Governing Law. This Agreement and the performance hereof shall be construed and governed in accordance with the laws of
the State of Texas, without regard to its choice of law principles. 
 (l) Employee Representations. Employee represents
and certifies to Employer that he: (i) has received a copy of this Agreement for review and study and has had ample time to review it before signing; (ii) has read this Agreement carefully; (iii) has been given a fair opportunity to
discuss and negotiate the terms of this Agreement; (iv) understands its provisions; (v) has had the opportunity to consult his attorney; and (vi) enters into this Agreement knowingly and voluntarily. Employee also represents that he
will not make any unauthorized use of any Confidential Information or intellectual property of any third party in the performance of his duties under this Agreement and that Employee is under no obligation to any prior employer or other entity that
would preclude or interfere with the full and good faith performance of Employee’s obligations hereunder. 
 (m)
Restatement. This Agreement amends and restates the Original Agreement in its entirety. Employee and the Company agree that this Agreement is not intended to be, and shall not be deemed or construed to be, a novation or release of the
Original Agreement. 
 [REMAINDER OF PAGE INTENTIONALLY BLANK] 
  
 SECOND AMENDED AND RESTATED EMPLOYMENT
AGREEMENT – JAMES R. MORRIS 

  
 14 

 EXECUTED as of the date first above written. 

 

	
	GLOBALSCAPE, INC.
	
	By:                             
                                         
                          
	Name:                             
                                         
                    
	Title:                            
                                         
                       
	
	  
 James R. Morris

  
 SECOND
AMENDED AND RESTATED EMPLOYMENT AGREEMENT – JAMES R. MORRIS

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