Document:

Exhibit 10.1

 

 

MARYLAND FULL-SERVICE OFFICE LEASE

 

SEVENTY COLUMBIA CORPORATE CENTER

 

 

THIS LEASE is made
and entered into as of February 28, 2013 by and between 70 CC, LLC, a Delaware limited liability company ("Landlord")
and GP STRATEGIES CORPORATION, a Delaware corporation ("Tenant").

In consideration of
the rents hereinafter reserved and the agreements hereinafter set forth, Landlord and Tenant mutually agree as follows:

 

1. SUMMARY OF TERMS.

 

The following is a
summary of the principal terms of the Lease. Any capitalized term set forth below shall, for the purposes of this Lease, have the
meaning ascribed to it in this Section 1.

 

A.Description
of Premises

 

(1) Building:
The building known as Seventy Columbia Corporate Center and located at 11000 Broken Land Parkway, Columbia, Maryland 21044.

 

(2) Business Community:
Columbia Town Center

 

(3) Premises:
Approximately 63,985 square feet of Rental Area in the Building, comprised of 21,909 square feet on the second floor, 22,999 square
feet on the third floor and 19,077 square feet on the fifth floor, as shown on Schedule A.

 

(4) Property:
The Building, the land upon which the Building is situated, the Common Area, and such additional facilities in subsequent years
as may be determined by Landlord to be reasonably necessary or desirable for the management, maintenance or operation of the Building.

 

B.Rent

 

(1) Annual Basic Rent:

 

	 	PSF	Annual	Monthly
	Rental Year	Basic Rent	Basic Rent	Installment
	1	$25.50	$1,087,745.00*	$90,645.42*
	2	$26.39	$1,125,816.08*	$93,818.01*
	3	$27.32	$1,747,829.46	$145,652.45
	4	$28.27	$1,809,003.49	$150,750.29
	5	$29.26	$1,872,318.61	$156,026.55
	6	$30.29	$1,937,849.76	$161,487.48
	7	$31.35	$2,005,674.50	$167,139.54
	8	$32.44	$2,075,873.11	$172,989.43
	9	$33.58	$2,148,528.67	$179,044.06
	10	$34.75	$2,223,727.17	$185,310.60
	11	$35.97	$2,301,557.62	$191,796.47
	12	$37.23	$2,382,112.14	$198,509.35

 

    	

    	 

    
 

*These amounts represent four
months’ rent abatement distributed evenly over the Rental Year. In the event the first Rental Year consists of twelve full
months plus a partial month, the monthly installment for the partial month shall be prorated using the monthly installment amount
of $135,968.13.

 

(2) Advance Rent:
$90,645.42

 

(3) Security:

 

(a) Cash Security
Deposit: None

 

(b) Other: None

 

C.Base Operating
Costs: Intentionally deleted

 

D.Term

 

(1) Term: Twelve
(12) years, subject to Section 4.

 

(2) Lease Commencement
Date: The date of full execution of this Lease by Landlord and Tenant.

 

(3) Rental Commencement
Date: As determined pursuant to Section 4.

 

(4) Termination Date:
As determined pursuant to Section 4.

 

E.Notice and
Payment

 

(1) Tenant Notice Address:

 

	Prior to Occupying the Premises:	After Occupying the Premises:
	GP Strategies Corporation	GP Strategies Corporation
	6095 Marshalee Drive, Suite 300	11000 Broken Land Parkway
	Elkridge, Maryland 21075	Columbia, Maryland 21044
	Attn: General Counsel	Attn: General Counsel

 

(2) Landlord Notice Address:

 

70 CC, LLC

c/o The Howard Hughes Corporation

10275 Little Patuxent Parkway

Columbia, Maryland 21044                   

 

with copies to:

 

70 CC, LLC

c/o The Howard Hughes Corporation

13355
Noel Road, 22nd Floor

Dallas, TX 75240

Attn: General Counsel

 

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(3) Landlord Payment
Address:

 

70 CC, LLC

SDS-12-2980

PO Box 86

Minneapolis, MN 55486-2980

 

F.Brokers
– Jones Lang LaSalle and Cassidy Turley Commercial Real Estate Services

 

2. DEFINITIONS.

 

For purposes of this
Lease, the Schedules attached and made a part hereof and all agreements supplemental to this Lease, the following terms shall have
the respective meanings as set forth in the following Section, subsection, paragraph and Schedule references:

 

	 	Reference
	 	 
	Additional Rent	6.3
	Advance Rent	1.B.
	Alterations	15.1
	Annual Basic Rent	1.B
	Bankruptcy Code	19.1
	Building	1.A
	Casualty	17.1
	Common Area	10.1
	Default Rate	6.5
	Event of Default	20.1
	Event of Tenant's Bankruptcy	19.1
	Insolvency Laws	19.1
	Landlord Notice Address	1.E
	Landlord Payment Address	1.E
	Lease Commencement Date	1.D
	Mortgage	27
	Mortgagee	27
	Premises	1.A
	Public Areas	Schedule C
	Renewal Term	4.3
	Rental Area	3
	Rental Year	6.1
	Rules and Regulations	9
	Tenant Allowance	5.1
	Tenant Improvements	5.1
	Tenant Notice Address	1.E
	Tenant's Personal Property	15.3
	Term	4.1
	Termination Date	1.D
	Transfer	25

 

 

 

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3. LEASED PREMISES;
MEASUREMENT; RIGHT OF FIRST REFUSAL.

 

3.1. Premises and
Measurement. Landlord hereby leases to Tenant, and Tenant hereby leases from Landlord, the Premises as shown on the plan attached
hereto as Schedule A, together with the right to use, in common with others, the Common Area. The rental area of the Premises
("Rental Area") has been computed in accordance with the applicable formula set forth in Schedule X attached hereto
and made a part hereof.

 

Landlord and Tenant
agree that in the event the architect performing space planning for Tenant determines that the Rental Area of the Premises, as
determined pursuant to Schedule X, is different from that set forth in Section 1.A.(3), Landlord and Tenant shall execute an amendment
to this Lease setting forth the revised Rental Area for the Premises and adjusted Annual Basic Rent and other charges to Tenant
based on the Rental Area of the Premises to reflect the increase or decrease in Rental Area.

 

3.2. Right of First
Refusal. Subject to the provisions set forth hereinafter, Tenant shall have a continuing right of first refusal to lease from
Landlord any space in the Building which is or becomes vacant and available for leasing during the Term ("Additional Premises").

 

If and as Landlord
receives offers for Additional Premises from other prospective tenants, Landlord shall so notify Tenant in writing, such notice
to include the Prevailing Market Rate, as defined in Section 4.3, for the Additional Premises; provided, however, Annual Basic
Rent for any Additional Premises leased to Tenant during the first two Rental Years in the Term shall be upon the same terms and
conditions as set forth in this Lease for the Premises, except that any Tenant Allowance shall be prorated over the balance of
the Term, and abatement of Annual Basic Rent applicable to the Additional Premises shall be prorated over the remainder of the
first two Rental Years in the Term. Upon receipt of Landlord's notice, Tenant shall have ten (10) business days after the date
of such notice to accept or reject Landlord's proposal in writing. If Tenant rejects Landlord's proposal, fails to deliver notice
thereof within the time period stipulated above, or fails to execute the requisite amendment to this Lease within fifteen (15)
business days after receiving the same from Landlord (both parties promptly responding to comments from the other), Tenant's right
of first refusal shall lapse and be of no further force and effect as to the instant offer. Tenant’s right of first refusal
shall be reinstated as to any subsequent leasing of Additional Premises previously offered, excluding renewal or extension of an
existing lease entered into after Tenant’s failure to enter into an amendment for such Additional Premises in response to
Landlord’s notice under this Section 3.2.

 

Any lease of Additional
Premises shall be for a lease term running concurrently with the Term of this Lease, and otherwise upon the same terms and conditions
as are set forth herein for the initial Premises (except as to Annual Basic Rent, which shall be determined in accordance with
the preceding paragraph) as of the effective date of an amendment incorporating the Additional Premises under this Lease and for
the balance of the Term.

 

The foregoing right
of first refusal shall not be severed from this Lease or separately sold, assigned or transferred, and shall be subject to the
following additional conditions, namely: (a) that as of the effective date of the lease of the Additional Premises, at least five
(5) full Rental Years shall remain in the initial Term or any Renewal Term for which Tenant has exercised its option or Tenant
agrees to extend the Term at the Prevailing Market Rate as determined pursuant to Section 4.3 so that there shall be at least five
(5) full Rental Years remaining in the Term or Renewal Term; (b) that, at the time that Tenant exercises this right of first refusal
for any Additional Premises, there shall not be an Event of Default under this Lease; (c) that, at the time Tenant exercises this
right of first refusal, Tenant shall be in occupancy and possession of the Premises; (d) that Landlord and Tenant shall enter into
an amendment to this Lease to incorporate the Additional Premises and make corresponding modifications to the provisions of this
Lease regarding Annual Basic Rent; (e) the holders of any superior rights to the Additional Premises (which rights exist as of
the date of this Lease) have not exercised or have waived such rights; and (f) Tenant shall not have sublet all or any part of
the Premises to any entity other than its parent, subsidiary or affiliated entity.

 

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3.3. Reduction of
Premises. At the end of the fifth (5th) Rental Year, and provided Tenant shall not have assigned this Lease or sublet
all or any part of the Premises except to its parent, subsidiary or affiliated corporation. Tenant shall have one-time the right
to reduce the size of the Premises by at least 10,000 square feet but not more than one (1) full floor (the “Surrendered
Premises”) by paying to Landlord the sum of (a) the unamortized (at 6% interest over the initial Term) Tenant Improvement
Allowance allocable to the Surrendered Premises, plus (b) the value of realized rent abatement allocable to the Surrendered Premises,
plus (c) the unamortized portion (on a straight-line basis) of Broker’s commissions allocable to the Surrendered Premises
as of the effective date of the surrender of the Surrendered Premises (“Surrender Fee”). Tenant shall give Landlord
not less than two hundred seventy (270) days prior written notice of its election to reduce the Premises. Fifty percent (50%) of
the Surrender Fee shall be paid by Tenant to Landlord with Tenant’s notice of surrender if the amount of the Surrender Fee
is then known by Tenant, otherwise within ten (10) business days after receiving written confirmation of the Surrender Fee from
Landlord, and the remaining 50% shall be paid on the date that Tenant vacates the Surrendered Premises. Any reduction of the Premises
of less than an entire floor is subject to Landlord’s reasonable approval as to the location and size of the Surrendered
Premises. Landlord and Tenant shall enter into an amendment to this Lease to delete the Surrendered Premises; and Tenant shall
delver the Surrendered Premises to Landlord broom clean and in as good condition as when received excepting reasonable wear and
tear, and otherwise in accordance with the provisions of this Lease.

 

4. TERM AND COMMENCEMENT
OF TERM.

 

4.1 This Lease shall
be effective and binding on the parties as of the Lease Commencement Date. The term of this Lease (the "Term") and Tenant’s
obligation to pay rental hereunder shall commence on the date (the “Rental Commencement Date”) which shall be the earlier
of:.

 

a. the date on which
Tenant shall commence its regular business operations in the Premises; or

 

b. the later of (i) the
date the Premises are Ready for Occupancy (as defined in 4.2 below) or (ii) July 15, 2013.

 

The Term shall be for
the period of time specified in subsection 1.D.(1) plus the part of the month, if any, from the Rental Commencement Date to the
first day of the first full calendar month in the Term, unless earlier terminated pursuant to any other provision of this Lease
or pursuant to law. At Landlord's request, Tenant shall promptly enter into one or more supplementary written agreements, in such
form as Landlord shall reasonably prescribe, specifying the Rental Commencement Date and the Termination Date.

 

4.21. Ready For
Occupancy. For purposes hereof, the Premises shall be deemed conclusively ready for occupancy ("Ready for Occupancy")
upon the completion of the following conditions:

 

a. Fifteen (15) days
shall have elapsed after Landlord notifies Tenant of Substantial Completion of the Tenant Improvements except for punch list items;
and

 

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b. Landlord shall have
received any governmental approvals which are necessary in order for Tenant to complete its work so that Tenant may occupy the
Premises, unless Tenant's acts or omissions have caused such approvals to be denied, in which case Tenant shall be deemed to have
waived this condition 4.2.b.

 

For purposes of this
Lease, “Substantial Completion” means that the Tenant Improvements have been completed substantially in accordance
with the Plans and Specifications, subject only to Punch List Work and potentially the installation of movable partitions, and
a Temporary Approval of the Use and Occupancy Permit has been obtained which permits the Tenant to complete its work so that Tenant
may occupy and conduct business in the Premises. “Punch List Work” means minor items of repair, correction, adjustment,
or completion as such phrase is commonly understood in the construction industry in the Baltimore metropolitan area.

 

At any time after Substantial
Completion of the Tenant Improvements, Tenant may enter the Premises for the purpose of installing fixtures, installing furniture,
installing equipment and generally preparing the Premises for Tenant’s operations.

 

In the event the Premises
are not Ready for Occupancy by July 30, 2013, solely because of a delay caused by Tenant, then the Premises shall be deemed Ready
for Occupancy on July 30, 2013, regardless of whether construction has been completed. Landlord and Tenant acknowledge that the
schedule for completion of the Tenant Improvements is aggressive and, therefore, the parties agree to adhere to the deadlines for
performance set forth in Schedule Z attached hereto and made a part hereof. Failure by either party to achieve any deadline shall
be considered a delay caused by such party except to the extent such failure was caused by factors beyond such party’s control,
including, but not limited to, delays caused by the other party. In addition, in the event the Plans and Specifications described
in Section 5.1 require modification resulting from Landlord’s review resulting in a failure to achieve a deadline set forth
in Schedule Z, then the failure to achieve such deadline shall be considered a delay caused by Tenant.

 

If Substantial Completion
of the Tenant Improvements is not achieved and the Premises are not available for Tenant for installation of furniture, fixtures,
and equipment (“FF&E”) by July 15, 2013, and the delay is caused by the Landlord, then, provided such delay prevents
Tenant from occupying the Premises to commence regular business operations by July 30, the Landlord shall pay, as a penalty to
Tenant, a sum equal to $50,000 per month pro-rated daily for each day after July 15, 2013 that the Premises are not available to
Tenant for installation of FF&E; provided, however, that if the Premises are not available to Tenant for installation of FF&E
through delay caused by the Landlord, by December 1, 2013, then Tenant shall have the right to terminate this Lease by giving the
Landlord sixty (60) days’ written notice. Upon such termination of this Lease, the rights, duties and obligations of the
Landlord and Tenant under the Lease shall be null and void, except for Landlord’s obligation to pay Tenant the daily penalty
through the termination date, and neither party shall have any further obligation to the other thereafter.

 

4.3. Option to Renew.
Provided Tenant is in possession of the Premises and is not in default of any term, covenant or condition of this Lease beyond
any applicable cure period, Tenant shall have the option to renew the Term of this Lease for two (2) consecutive additional periods
of five (5) years each ("Renewal Term") to commence immediately upon the expiration of the immediately preceding Term.

 

Said Renewal Term shall
be upon the same terms, covenants and conditions as contained in this Lease, except that (i) the Annual Basic Rent during said
Renewal Term shall be at the "Prevailing Market Rate", (ii) there shall be no further option to renew except as specifically
provided herein, and (iii) there shall be no abatement of rent. "Prevailing Market Rate" shall mean the market rental
rate for the Premises projected to the first day of the Renewal Term (or extended Term if the determination is being made for purposes
of Section 3.2), as reasonably determined by Landlord but shall not be more than the rate at which Landlord would offer such space
or space of approximately the same size and location to a third party. The Prevailing Market Rate shall be adjusted to reflect
whether Tenant is receiving a refurbishment allowance and or any other concession which would be offered to tenants under similar
circumstances as part of the Prevailing Market Rent.

 

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In order to exercise
the option granted herein, Tenant shall notify Landlord, in writing, no later than eleven (11) months prior to the expiration of
the initial Term that it is considering exercising its option to renew the Term. On receipt of such notice, Landlord will, in writing,
not later than thirty (30) days after receipt of the notice from Tenant, quote to Tenant what the new Annual Basic Rent will be
for the ensuing Renewal Term (“Prevailing Market Rate Notice”). Tenant shall then notify Landlord, in writing, not
later than thirty (30) days after receipt of the Prevailing Market Rate Notice, as to whether or not it will exercise the option
herein granted and if no such notice of exercise of the option is received, the option shall be deemed waived. In the event Tenant
exercises the option, Landlord and Tenant shall execute a modification to this Lease acknowledging such renewal and setting forth
the new Annual Basic Rent.

 

The option shall be void if, at the time
of exercise of such option, (i) Tenant is not in possession of the Premises, (ii) there is an Event of Default under this Lease,
(iii) Tenant fails to deliver the requisite notice thereof within the time period specified, or (iv) Tenant shall assigned this
Lease or sublet all or any part of the Premises to any entity other than its parent, subsidiary or affiliated entity. The option
granted herein shall not be severed from this Lease, separately sold, assigned or transferred.

 

5. TENANT IMPROVEMENTS;
ACCEPTANCE OF PREMISES.

 

5.1. Tenant Improvements.
Prior to the Rental Commencement Date, subject to Unavoidable Delays as defined below, Landlord shall make improvements to the
Premises ("Tenant Improvements") in accordance with plans and specifications to be prepared by Tenant’s architect,
Arris, a Design Studio, Inc. ("Plans and Specifications") and approved in writing by Landlord, which approval shall not
be unreasonably withheld. Once the Plans and Specifications are acceptable to both parties, it is agreed that same shall be attached
hereto and become a part of this Lease, being identified as Schedule B. All materials shall be building-standard materials
unless otherwise specified in Schedule B. Except as otherwise specifically provided in the Tenant Allowance described below, Landlord
shall not be responsible for performing or paying for the moving or installation of telephone and computer systems, wiring or cabling,
or the acquisition, moving or installation of Tenant's furnishings, fixtures and equipment in the Premises. “Unavoidable
Delays” shall mean delays caused by labor disputes, acts of God, strikes, civil commotion, riot, war, governmental regulations
or controls, adverse weather conditions, material shortages, or any other circumstances beyond the reasonable control of Landlord.
Landlord shall permit Tenant’s qualified contractor to enter the Premises during the construction of Tenant Improvements
for the purpose of installing cabling, wiring and other behind-the-walls-and-ceilings fittings that are intended for use in connection
with Tenant’s telephone and computer network systems; Tenant’s contractor shall observe all site safety requirements
applicable to its work, comply with the instructions of the General Contractor as they pertain to access and schedule, and coordinate
its activities to minimize interference with other construction activities.

 

Landlord agrees to
bear the cost of the Tenant Improvements in an amount not to exceed Three Million Seventy-one Thousand Two Hundred Eighty Dollars
($3,071,280.00) ("Tenant Allowance") of which three percent (3%) constitutes Landlord’s construction management
fee. Up to twenty-five percent (25%) of the Tenant Allowance may be used by Tenant for its acquisition and installation of communications,
security, and audio-visual systems and furniture and for moving expenses. Landlord shall work with Tenant on an “open book”
basis (including inviting four (4) qualified general contractors to bid on the contract). Tenant shall have the right to review
the final bids and to choose the general contractor to perform the Tenant Improvements provided such contractor is licensed, bonded,
insured and approved by Landlord, such approval not to be unreasonably withheld. Tenant covenants and agrees to pay to Landlord,
as Additional Rent, all costs and expenses incurred by Landlord in performing the Tenant Improvements in excess of the Tenant Allowance
and to pay fifty percent (50%) of such cost within five (5) business days after selection of the contractor and confirmation of
such excess amount, and the remaining 50% within five (5) business days following Substantial Completion. In addition to the Tenant
Allowance, Landlord agrees to reimburse Tenant for initial space planning services at a cost not to exceed the lesser of (a) twelve
cents ($.12) per square foot of Rental Area, and (b) Seven Thousand Dollars ($7,000.00), with any excess space planning costs to
be borne solely by Tenant.

 

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Any other initial improvements
to the Premises not shown on the Plans and Specifications are subject to Landlord's prior written approval, in its sole discretion.
Any improvements approved by Landlord shall be performed by Landlord, and the total cost of construction of such additional improvements,
including but not limited to the cost of developing, preparing and modifying construction drawings, together with Landlord's construction
management fee of three percent (3%), shall be paid by Tenant to Landlord within thirty (30) days following receipt of an invoice
for same from Landlord.

 

Landlord may condition
its approval of any non-standard Tenant Improvements or other initial improvements upon Tenant’s agreement to remove such
non-standard items at the end of the Term and to restore the Premises to a building-standard condition, including the removal of
all data cabling. Landlord agrees to provide, on request by Tenant, a preliminary indication of its position regarding removal
of contemplated improvements promptly following receipt of Tenant’s preliminary plans and specifications for such improvements.

 

5.2. Acceptance
of Premises. Prior to Tenant’s occupancy of the Premises, Landlord and Tenant shall conduct a joint inspection of the
Premises. Tenant's occupancy of the Premises shall be deemed to constitute acceptance of the Premises and acknowledgment by Tenant
that Landlord has fully complied with its obligations hereunder to deliver the Premises to Tenant. Landlord shall have the right
to enter the Premises to complete or repair any punchlist items and entry by Landlord, its agents, employees or contractors for
such purpose shall not constitute an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement or
diminution of rent or relieve Tenant of any of its obligations under this Lease, or impose any liability upon Landlord or its agents,
employees or contractors. . The Tenant’s architect shall provide electronic as-built drawings of the premises, based upon
information furnished by the Contractor

 

6. RENT.

 

6.1. Annual Basic
Rent. Tenant shall pay to Landlord during each Rental Year of the Term fixed rent equal to the Annual Basic Rent as set forth
in subsection 1.B.(1). Annual Basic Rent shall be payable in advance on the first day of each month of the Term in equal monthly
installments, without notice, demand, abatement (except as otherwise specifically provided in this Lease), deduction or set-off.
If the Term of this Lease shall commence on a day other than the first day of a month, the first payment shall include any prorated
Annual Basic Rent for the period from the Rental Commencement Date to the first day of the first full calendar month of the Term.

 

"Rental Year"
shall mean each successive twelve (12) calendar month period occurring during the Term of this Lease, or portion of such a period,
with the first Rental Year commencing as of the Rental Commencement Date and ending on the last day of the twelfth full calendar
month thereafter and the last Rental Year ending on the Termination Date. For any Rental Year of less or more than twelve full
months, Annual Basic Rent shall be adjusted accordingly. All Annual Basic Rent and Additional Rent shall be paid to Landlord at
the Landlord Payment Address.

 

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6.2. Advance Rent.
Tenant shall, upon execution of this Lease, pay to Landlord an amount equal to the Advance Rent which shall be held by Landlord
as security for the performance by Tenant of all of its obligations occurring prior to the Rental Commencement Date. If Tenant
shall default in the performance of such obligations, Landlord may retain the Advance Rent as an offset against any damages thereby
incurred by Landlord provided that the retention of such Advance Rent shall not preclude Landlord from pursuing any other remedy
which it might have against Tenant. If no default shall occur by Tenant then the Advance Rent shall be applied against the installment
of Annual Basic Rent payable for the month identified in subsection 1.B.(2).

 

6.3. Additional
Rent. Tenant shall pay to Landlord as additional rent ("Additional Rent") all other sums of money which shall become
due and payable hereunder. Unless a date for payment is otherwise specified herein, all Additional Rent shall be due and payable
within thirty (30) days of invoicing by Landlord.

 

6.4 Security Deposit.
Intentionally omitted.

 

6.5. Late Charge.
If Tenant fails more than once during any period of twelve consecutive months during the Term to make any payment of Annual Basic
Rent, Additional Rent, or other sums required to be paid hereunder on or before the fifth (5th) day after the date when
payment is due, then for the second and each subsequent failure during such twelve-month period, Tenant shall pay to Landlord,
as Additional Rent, a late charge to cover extra administrative costs and loss of use of funds equal to (a) five percent (5%) of
the amount due for the first month or portion thereof that such amount is past due plus (b) interest on the amount remaining unpaid
thereafter at the rate of ten percent (10%) per annum; provided, however, that should such late charge at any time violate any
applicable law, the late charge shall be reduced to the highest rate permitted by law (the foregoing rate being herein referred
to as the "Default Rate"). Landlord's acceptance of any rent after it has become due and payable shall not excuse any
delays with respect to future rental payments or constitute a waiver of any of Landlord's rights under this Lease.

 

7. OPERATING COST
ESCALATIONS. Intentionally omitted.

 

8. USE, CARE AND
REPAIR OF PREMISES BY TENANT.

 

8.1. Permitted Uses;
Prohibited Building Tenants. Tenant shall use and occupy the Premises solely for general office and training purposes in accordance
with applicable zoning regulations and for no other purpose. Tenant shall not do anything or permit anything to be done in or on
the Premises, or bring or keep anything therein which will, in any way, obstruct, injure, annoy or interfere with the rights of
Landlord or other tenants, or subject Landlord to any liability for injury to persons or damage to property, or interfere with
the good order of the Building, or conflict with the laws, rules or regulations of any Federal, state, city or local authority.

 

Beginning on the Lease
Commencement Date and continuing throughout the Term, provided Tenant is in occupancy of the Premises, has not assigned or sublet
the Premises to any entity other than its parent, subsidiary or affiliated entity and is not in default under this Lease beyond
any applicable notice and cure period, Landlord shall not lease space in the Building to any clinical, medical, dental or similar
non-business-office tenant; provided, however, nothing herein shall prohibit Landlord from leasing space on the first floor of
the Building to retail tenants whose use or reputation would not detract from the image of the Building as a first-class office
building.

 

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8.2. Care of Premises.
Subject to Landlord’s obligations under Section 11, Tenant shall, at its sole expense, keep the Premises and the improvements
and appurtenances therein in good order and condition consistent with the operation of a first-class office building, and at the
expiration of the Term, or at the sooner termination of this Lease as herein provided, deliver up the same broom clean and in as
good order and condition as at the beginning of the Term, ordinary wear and tear and damage by fire or other casualty excepted.
Tenant, at its sole expense, shall promptly replace damaged or broken doors and glass in and about the interior of the Premises
and shall be responsible for the repair and maintenance of all special or custom Tenant Improvements and Alterations, including,
without limitation, the repair and replacement of appliances and equipment installed specifically for Tenant such as refrigerators,
disposals, computer room air conditioning, sinks and special plumbing (excluding restroom plumbing, which Landlord shall maintain
in good order and condition), special light fixtures and bulbs for those special fixtures, non-standard outlets and plug-in strips,
and special cabinetry. Consistent with the provisions of Section 22, Tenant shall pay for all property damage sustained by other
tenants or occupants of the Building, due to any waste, misuse or neglect by Tenant of the Premises and any fixtures and appurtenances
related thereto or due to any breach of this Lease by Tenant, its employees, agents, representatives or invitees.

 

8.3.Hazardous
Materials.

 

(a)"Hazardous
Material(s)" means any substance that, by itself or in combination with other materials, is either (i) potentially injurious
to public health, safety, or the environment; or (ii) now or in the future regulated by any federal, state, or local governmental
authority as potentially injurious to public health, safety, or the environment.

 

(b)With
the exception of minor amounts of Hazardous Materials customarily and lawfully used in conjunction with the Permitted Use, Tenant,
its employees, contractors, agents, and any party acting on behalf of Tenant, shall not store, use, treat, generate, or dispose
of Hazardous Materials at the Property.

 

(c)Tenant,
its employees, contractors, agents, and any party acting on behalf of Tenant shall comply, and shall keep the Premises in compliance
(except when noncompliance is caused by Landlord, its employees, contractors or agents), with all laws and regulations relating
to Hazardous Materials ("Environmental Laws"); and in addition Tenant shall:

 

		(i)	Promptly provide Landlord with copies of any document, correspondence, report or communication,
written or oral, relating to Hazardous Materials at or affecting the Property (x) to or from any regulatory body, or (y) stating
a basis for any potential liability or responsibility of Tenant, Landlord, or the Property; including all such documents, correspondence,
reports or communications prepared by or on behalf of Tenant. In addition to the above, at Landlord's request, Tenant shall provide
copies of any and all records and communications whatsoever relating to Hazardous Materials at or affecting the Property.

 

		(ii)	Immediately notify Landlord in the event of a suspected or confirmed release of a Hazardous Material
or violation of Environmental Laws at or affecting the Property and caused by or related to the operations of Tenant, its employees,
contractors, agents, or any party acting on behalf of Tenant and, at Landlord's sole option, unless Tenant has then already begun
responding to such release or violation in a commercially responsible manner and in accordance with Environmental Laws, either
promptly remediate or correct such release or violation to Landlord's satisfaction or reimburse Landlord's cost of remediation
(including reasonable attorneys' and consultants' fees); and compensate Landlord and/or third parties for all resultant property
damage.

 

    	-10-

    	 

    
 

 

		(iii)	Permit Landlord reasonable access to the Premises for the purpose of conducting an environmental
audit or testing, the cost of which shall be borne by Landlord unless the results indicate activity prohibited by Environmental
Laws or hereunder.

 

		(iv)	Upon expiration or other termination of this Lease, remove all Hazardous Materials from the Premises
that were introduced by or for Tenant, and upon request certify that Tenant has only had in the Premises minor amounts of Hazardous
Materials customarily and lawfully used in conjunction with the permitted use or, if Tenant is unable or refuses to provide such
certification, at Landlord's option cause to be performed and provided to Landlord an environmental audit of the Premises, using
a consultant reasonably acceptable to Landlord, and correct, at its expense, any deficiencies noted by the audit; Tenant shall
have no obligation to remove, or liability for, Hazardous Materials affecting the Property prior to the Lease Commencement Date
or that are not introduced to the Property by or for Tenant.

 

(d)Landlord
shall comply with all Environmental Laws regarding its storage, use, treatment, generation, and disposal of Hazardous Materials,
and, if required by law, shall promptly remediate any release of Hazardous Materials or correct any violation of Environmental
Laws at or affecting the Property and resulting from such storage, use, treatment, generation or release.

 

(e)This
Section 8.3 shall survive the expiration or other termination of this Lease.

 

8.4. Compliance
with Laws. Tenant, at its sole cost and expense, shall conform to and comply with and shall cause the Premises to conform to
and comply with all federal, state, county, municipal and other governmental statutes, laws, rules, orders, regulations, and ordinances
applicable to Tenant or resulting from Tenant's use or occupancy of the Premises or the Property or any part thereof. Landlord,
at its sole cost and expense, shall cause the Common Area to conform to and comply with all federal, state, county, municipal and
other governmental statutes, laws, rules, orders, regulations, and ordinances applicable to Landlord or resulting from Landlord’s
operation of the Property as a first class office building with retail and food service tenants.

 

9. RULES AND REGULATIONS.

 

Tenant and its agents
and invitees shall abide by and observe the rules and regulations attached hereto as Schedule C for the operation and maintenance
of the Building or any new rules and regulations which may from time to time be issued by Landlord ("Rules and Regulations"),
provided that any new rules or regulations are not inconsistent with the provisions of this Lease. Nothing in this Lease shall
be interpreted to impose upon Landlord any duty or obligation to enforce any such rules and regulations against any other tenant
in the Building, and Landlord shall not be liable to Tenant for any violation of these rules and regulations by any other tenant
or its agents or invitees.

 

    	-11-

    	 

    
 

 

10. COMMON AREA.

 

10.1. Definition
of Common Area. As used herein, "Common Area" means those areas and facilities which may be furnished by Landlord
on or near the Property, as designated by Landlord from time to time, intended for the general common use and benefit of all tenants
of the Building and their agents, representatives, licensees, employees and invitees, including, without limitation, any and all
stairs, landings, roofs, utility and mechanical rooms and equipment, building systems and equipment, service closets, corridors,
elevators, lobbies, lavatories and other public areas of the Building and all parking areas, access roads, pedestrian walkways,
plazas and landscaped areas.

 

10.2. Use of Common
Area. Tenant shall have the non-exclusive right to use the Common Area in common with Landlord, other tenants in the Building,
and others entitled to the use thereof, subject to such reasonable rules and regulations governing the use of the Common Area as
Landlord may from time to time prescribe and subject to such easements therein as Landlord may from time to time grant to others.
Tenant shall not obstruct in any way any portion of the Common Area or in any way interfere with the rights of other persons entitled
to use the Common Area and shall not, without the prior written consent of Landlord, use the Common Area in any manner, directly
or indirectly, for the location or display of any merchandise or property belonging to Tenant or for the location of signs relating
to Tenant's operations in the Premises. The Common Area shall at all times be subject to the exclusive control and management of
Landlord.

 

10.3. Alterations
to the Common Area. Landlord reserves the right at any time and from time to time (i) to change or alter the location, layout,
nature or arrangement of the Common Area or any portion thereof, including but not limited to the arrangement and/or location of
entrances, passageways, doors, corridors, stairs, lavatories, elevators, parking areas, and other public areas of the building,
and (ii) to construct additional improvements on the Property and make alterations thereof or additions thereto and build additional
stories on or in any such buildings or build adjoining same; provided, however, that no such change or alteration shall deprive
or materially impair Tenant’s access to the Premises or use of parking spaces, or reduce the Rental Area of the Premises,
unless such reduction is required by Federal, State or local laws or regulations, in which event, a reduction in the Premises shall
be permitted with a commensurate reduction in rent. Landlord shall have the right to close temporarily all or any portion of the
Common Area to such extent as may, in the reasonable opinion of Landlord, be necessary to prevent a dedication thereof to the public,
provided that Tenant is not thereby denied access to the Premises or use of parking spaces, or for repairs, replacements or maintenance
to the Common Area, provided such repairs, replacements or maintenance are performed expeditiously and in such a manner as not
to deprive Tenant of access to the Premises.

 

10.4. Maintenance.
Landlord covenants to keep, maintain, manage and operate the Common Area and to provide services to the Premises in accordance
with Section 11, in a manner consistent with the operation of a first class office building, and to keep the sidewalks, parking
areas and driveways, if any, constituting a portion of the Common Area clean and reasonably clear of snow and ice. Landlord reserves
the right of access to the Common Area through the Premises for the purposes of operation, decoration, cleaning, maintenance, safety,
security, alterations and repairs.

 

11. SERVICES AND
UTILITIES.

 

So long as Tenant is
not in an Event of Default under this Lease, Landlord shall provide the following facilities and services to Tenant, the cost of
which is included in the Annual Basic Rent (except as otherwise provided herein):

 

a. At least three (3)
elevators subject to call at all times during normal business hours, and including at least one elevator on Sundays and holidays.

 

    	-12-

    	 

    
 

 

b. During "normal
business hours" as hereinafter defined, central heating and air conditioning during the seasons of the year when these services
are normally and usually furnished, and within the temperature ranges and in such amounts normally or usually furnished in comparable
office buildings in the immediate vicinity. For the purposes of this paragraph b, the term "normal business hours" shall
mean the periods from 8:00 a.m. until 6:00 p.m. on business days and from 8:00 a.m. until 12:00 p.m. on Saturdays. Landlord shall
provide the aforesaid services at other times, at Tenant's expense, provided Tenant gives Landlord notice by 1:00 p.m. on weekdays
for after-hour service on the next weekday, by 1:00 p.m. the day before a holiday for service on a holiday, and by 1:00 p.m. on
Friday for after-hour service on Saturday or service on Sunday. Such after-hour, holiday or special weekend service shall be charged
to Tenant at a cost of Sixty-five Dollars ($65.00) per hour per floor or partial floor for a minimum of three (3) hours. Landlord
reserves the right to adjust, from time to time, the rate at which such services shall be provided corresponding to adjustments
in Landlord's costs. Tenant shall pay for such service, as Additional Rent, promptly upon receipt of an invoice with respect thereto.
For purposes of this Lease, the term “holiday” shall mean New Year’s Day, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day.

 

c. Reasonable amounts
of electric current for lighting and normal and customary items of office equipment (subject to the provisions of Section 12 below).

 

d. Cleaning in Landlord's
standard manner, which shall include at least the services listed in Schedule Y attached hereto and made a part hereof.

 

e. Replacement of light
tubes, bulbs and ballasts for building standard lighting fixtures. All light tube or bulb replacements for special non-standard
lighting fixtures shall be furnished and installed by Landlord at Tenant's expense.

 

f. Rest room facilities
and necessary lavatory supplies, including hot and cold running water at the points of supply, as provided for general use of all
tenants in the Building and routine maintenance, painting, and electric lighting service for all public areas of the Building in
such manner as Landlord deems reasonable, but no less than what is customarily furnished in first class office buildings in the
Baltimore/Columbia metropolitan area.

 

g. Access to the Premises
twenty-four (24) hours per day, seven (7) days each week.

 

Any failure by Landlord
to furnish the foregoing services, resulting from circumstances beyond Landlord's reasonable control or from interruption of such
services due to repairs or maintenance, shall not render Landlord liable in any respect for damages to either person or property,
nor be construed as an eviction of Tenant, nor relieve Tenant from any of its obligations hereunder. Landlord shall expeditiously
take such actions as may be necessary to restore any interrupted service resulting from conditions or circumstances that can be
changed or mitigated by Landlord. If any public utility or governmental body shall require Landlord or Tenant to restrict the consumption
of any utility or reduce any service for the Premises or the Building, Landlord and Tenant shall comply with such requirements,
whether or not the utilities and services referred to in this Section 11 are thereby reduced or otherwise affected, without any
liability on the part of Landlord to Tenant or any other person or any reduction or adjustment in rent payable hereunder. Landlord
and its agents shall be permitted reasonable access to the Premises for the purpose of installing and servicing systems within
the Premises deemed necessary by Landlord to provide the services and utilities referred to in this Section 11 to Tenant and other
tenants in the Building.

 

In the event any failure
to supply services continues uninterrupted for a period of greater than two (2) consecutive business days and thereby renders the
Premises wholly or partially untenantable, the rent shall be abated to the extent of such untenantability commencing on the third
(3rd) day.

 

    	-13-

    	 

    
 

 

If Landlord fails (i)
for two (c) consecutive business days to supply the cleaning services for the Premises required by clause (d) of this Section 11,
or (ii) to cure (or commence and diligently undertake to cure) within five (5) business days after receiving notice thereof from
Tenant a failure to perform the maintenance, replacements or repairs for the Premises required under clause (e) of this Section
11 or by Sections 10.4 or 14 of this Lease, then Tenant shall have the right to provide such supplies and/or perform such maintenance,
replacements and repairs for the Premises and to deduct the cost thereof from the installments of Annual Basic Rent or Additional
Rent due hereunder; provided, however, Tenant shall have no right to maintain or repair building systems or equipment.

 

Landlord reserves the
right to charge Tenant the reasonable cost, based on usage, of the removal of all trash and the reasonable cost of water/sewerage
or electric service to the extent Tenant's trash disposal, water/sewerage and/or electrical usage exceeds, in Landlord's reasonable
opinion, normal usage for an office tenant.

 

12. ELECTRIC CURRENT.

 

Landlord shall be under
no obligation to furnish electrical energy to Tenant in amounts greater than needed for lighting and normal and customary items
of equipment for general office purposes, and Tenant shall not install or use on the Premises any electrical equipment, appliance
or machine which shall require amounts of electrical energy exceeding the standard wattage provided for the Building, unless the
installation and use of such additional electrical equipment, appliance, or machine has been approved by Landlord pursuant to terms
and conditions set forth in a separate agreement, which approval may be conditioned upon the payment by Tenant, as Additional Rent,
of the cost of the additional electrical energy and modifications to the Building's electrical system required for the operation
of such electrical equipment, appliance, or machine.

 

13. LOSS, DAMAGE
AND INJURY.

 

To the maximum extent
permitted by law, Tenant shall occupy and use the Premises, the Building and the Common Area at Tenant's own risk. Consistent with
the provisions of subsection 16.4, Tenant's Personal Property and personal items of those claiming by, through or under Tenant,
located in or on the Premises or the Building shall be and remain at the sole risk of Tenant or such other person.

 

No representation,
guaranty, assurance, or warranty is made or given by Landlord that the communications or security systems, devices or procedures
used, if any, will be effective to prevent injury to Tenant or any other person or damage to, or loss (by theft or otherwise) of
any of Tenant's Personal Property or of the property of any other person, and Landlord reserves the right to discontinue or modify
at any time such communications or security systems, devices, or procedures without liability to Tenant, but Landlord shall give
notice to Tenant prior to discontinuing or modifying any Building security system, unless the systems is immediately replaced by
a systems performing the same function or the modification does not adversely affect the functionality of the system.

 

14. REPAIRS BY LANDLORD.

 

Landlord shall keep
the Premises and the Building and all machinery, equipment, fixtures and systems of every kind attached to, or used in connection
with the operation of, the Building, including all electrical, heating, mechanical, sanitary, sprinkler, utility, power, plumbing,
cleaning, refrigeration, ventilating, air conditioning and elevator systems and equipment (excluding, however, lines, improvements,
systems and machinery for water, gas, steam and electricity owned and maintained by any public utility company or governmental
agency or body) in good order and repair consistent with the operation of the Building as a first-class office building. Landlord,
at its expense, shall make all repairs and replacements necessary to comply with its obligations set forth in the immediately preceding
sentence, except for (a) repairs required to be made by Tenant pursuant to Section 8 and (b) repairs caused by the willful misconduct
of Tenant, its agents, employees, invitees and guests, which repairs shall be made by Landlord at the cost of Tenant, and for which
Tenant shall pay promptly, as Additional Rent, upon receipt of an invoice setting forth the cost of such repairs. Except as provided
in Section 11, there shall be no abatement in rents due and payable hereunder and no liability on the part of Landlord by reason
of any inconvenience or annoyance arising from Landlord's making repairs, additions or improvements to the Building in accordance
with its obligations hereunder.

 

    	-14-

    	 

    
 

 

15. ALTERATIONS,
TITLE AND PERSONAL PROPERTY.

 

15.1. Alterations.
Tenant shall in no event make or permit to be made any alteration, modification, substitution or other change of any nature to
the mechanical, electrical, plumbing, HVAC , and sprinkler systems within or serving the Premises. After completion of Tenant's
Improvements within the Premises, Tenant shall not make or permit any other improvements, alterations, fixed decorations, substitutions
or modifications, structural or otherwise, to the Premises or the Building ("Alterations") without the prior written
approval of Landlord, which approval shall not unreasonably be withheld, conditioned or delayed. Landlord's approval shall include
the conditions under which acceptable Alterations may be made. Alterations shall include, but not be limited to, the installation
or modification of carpeting, walls, partitions, counters, doors, shelves, lighting fixtures, hardware, locks, ceiling, window
and wall coverings; but shall not include the initial Tenant's Improvements placed within the Premises pursuant to subsection 5.1.
All Alterations shall be based on complete plans and specifications prepared and submitted by Tenant to Landlord for approval,
except in the instance of cosmetic changes, such as painting and carpeting, in which case Tenant shall provide Landlord with samples
showing colors, styles, etc. Tenant may itself, or by engaging qualified contractors, make cosmetic changes, non-structural information-technology-related
installations, and non-structural Alterations costing less than $25,000. All other Alterations shall be made by Landlord, after
competitive bidding and selection of a contractor reasonably approved by Tenant, at Tenant's sole cost, payable by Tenant, as Additional
Rent, within thirty (30) days after receipt of an invoice for same from Landlord, which cost shall include Landlord's standard
construction management fee, not to exceed three percent (3%) of construction costs.

 

Tenant shall be responsible
for the cost of any additional improvements within the Premises or the Common Area required by The Americans with Disabilities
Act of 1990 as a result of Tenant's Alterations.

 

If Tenant makes any
Alterations without the prior consent of Landlord, then, in addition to Landlord's other remedies, Landlord may correct or remove
such Alterations and Tenant shall pay the cost thereof, as Additional Rent, on demand.

 

15.2. Title.
The Tenant Improvements, all Alterations and all equipment, machinery, and other property or improvements installed in or affixed
to the Premises by or on behalf of Landlord or Tenant, other than Tenant's Personal Property, (a) shall immediately become the
property of Landlord, except as provided in Section 5.1, and (b) shall remain upon and be surrendered to Landlord with the Premises
as a part thereof at the end of the Term. Notwithstanding the foregoing, Landlord may, upon notice to Tenant at the time its consent
is requested for Alterations to be made, elect that any Alterations be removed at the end of the Term, and thereupon, Landlord
shall at Tenant's sole expense, cause such Alterations to be removed and restore the Premises to its condition prior to the making
of such Alterations, reasonable wear and tear and damage by fire or other casualty excepted. Tenant shall promptly reimburse Landlord,
as Additional Rent, for the cost of such work, which reimbursement obligation shall survive termination of the Lease.

 

    	-15-

    	 

    
 

 

15.3. Tenant's Personal
Property. "Tenant's Personal Property" means all equipment, machinery, furniture, furnishings and/or other property
now or hereafter installed or placed in or on the Premises by and at the sole expense of Tenant, or to which not more than 5% of
the Tenant Allowance has been applied and which (a) is not used, or was not procured for use, in connection with the operation,
maintenance or protection of the Premises or the Building; (b) is removable without damage to the Premises or the Building; and
(c) is not a replacement of any property of Landlord, whether such replacement is made at Tenant's expense or otherwise. Notwithstanding
any other provision of this Lease, Tenant's Personal Property shall not include any Alterations or any improvements or other property
installed in or on, or affixed to, the Premises as part of Tenant's Improvements, whether or not installed or affixed at Tenant's
expense. Tenant shall promptly pay all personal property taxes on Tenant's Personal Property, as applicable. Provided that Tenant
is not then in default of any of its obligations under this Lease, Tenant may remove all Tenant's Personal Property from the Premises
at the termination of this Lease. Any property belonging to Tenant or any other person which is left in the Premises after the
date the Lease is terminated for any reason shall be deemed to have been abandoned. In such event, Landlord shall have the right
to declare itself the owner of such property and to dispose of it in whatever manner Landlord considers appropriate without waiving
its right to claim from Tenant all expenses and damages caused by Tenant's failure to remove such property, and Tenant shall not
have any right to compensation or claim against Landlord as a result.

 

    	-16-

    	 

    

 

16. INSURANCE.

 

16.1. Tenant's Insurance.
Tenant, at its expense, shall obtain and maintain in effect as long as this Lease remains in effect and during such other time
as Tenant occupies the Premises or any part thereof insurance policies in accordance with the following provisions.

 

A. Coverage.

 

(i) commercial general
liability insurance policy, including insurance against assumed or contractual liability under this Lease, with respect to the
Property, to afford protection with limits, per occurrence, of not less than Two Million Dollars ($2,000,000), combined single
limit, with respect to personal injury, bodily injury, including death, and property damage and Four Million Dollars ($4,000,000)
aggregate (occurrence form) which insurance may provide for a commercially reasonable deductible.

 

(ii) all-risk property
insurance policy, including theft, written at replacement cost value and with replacement cost endorsement, covering all of Tenant's
Personal Property, Alterations and Tenant Improvements in the Premises to the extent paid for directly by Tenant, and covering
loss of income resulting from casualty, which insurance may provide for a commercially reasonable deductible.

 

(iii) worker's compensation
or similar insurance policy offering statutory coverage and containing statutory limits, which policy shall also provide Employer's
Liability Coverage of not less than Five Hundred Thousand Dollars ($500,000) per occurrence.

 

(iv) Tenant shall require
any contractor retained by it to perform work on the Premises to carry and maintain, at no expense to Landlord, during such times
as contractor is working in the Premises, (a) commercial general liability insurance policy, including, but not limited to, contractor's
liability coverage, contractual liability coverage, completed operations coverage, broad form property damage endorsement and contractor's
protective liability coverage, to afford protection with limits per person and for each occurrence, of not less than Two Million
Dollars ($2,000,000), combined single limit, and with respect to personal injury and death and property damage, Two Million Dollars
($2,000,000) aggregate (occurrence form) and Two Million Dollars ($2,000,000) aggregate completed operations; (b) automobile liability
insurance in the amount of One Million Dollars ($1,000,000) combined single limit for bodily injury and property damage; (c) worker's
compensation insurance or similar insurance in form and amounts as required by law; and (d) any other insurance reasonably required
by Landlord or any Mortgagee for the work being performed.

 

(v) Notwithstanding anything
set forth above in this subsection 16.1 to the contrary, all dollar limits specified herein shall be increased from time to time
as reasonably necessary to effect economically equivalent insurance coverage, or coverage deemed adequate in light of then existing
circumstances.

 

B. Policies.

 

Such policies shall
be maintained with companies licensed to do business in the State where the Premises are located and in form reasonably acceptable
to Landlord and will be written as primary policy coverage and not contributing with, or in excess of, any coverage which Landlord
shall carry. Such policies shall be provided on an occurrence form basis unless otherwise approved by Landlord and shall include
Landlord and its managing agent as additional insured as to coverage under paragraphs 16.1.A.(i) and 16.1.A.(iv). Such policies
shall also contain a waiver of subrogation provision and a provision stating that such policy or policies shall not be canceled
except after thirty (30) day's written notice, said notice to be mailed to the address in this Lease for sending notices to Landlord.
All such policies of insurance shall be effective as of the date Tenant occupies the Premises and shall be maintained in force
at all times during the Term of this Lease and all other times during which Tenant shall occupy the Premises. Tenant shall deposit
the policy or policies of such required insurance or certificates thereof with Landlord prior to the Rental Commencement Date.

 

    	-17-

    	 

    
 

 

16.2. Tenant's Failure
to Insure. If Tenant shall fail to obtain insurance as required under this Section 16, Landlord may, but shall not be obligated
to, obtain such insurance, and in such event, Tenant shall pay, as Additional Rent, the premium for such insurance upon demand
by Landlord.

 

16.3. Compliance
with Policies. Tenant shall not do or allow to be done, or keep, or allow to be kept, anything in, upon or about the Premises
which will contravene Landlord's policies insuring against loss or damage by fire, other casualty, or any other cause, including
without limitation, public liability, or which will prevent Landlord from procuring such policies in companies acceptable to Landlord.
If any act or failure to act by Tenant in and about the Building and the Premises shall cause the rates with respect to Landlord's
insurance policies to be increased beyond those rates that would normally be applicable for such limits of coverage, Tenant shall
pay, as Additional Rent, the amount of any such increases upon demand by Landlord.

 

16.4. Waiver of
Right of Recovery. Except as provided in Section 8.3, neither party, including Landlord's managing agent, shall be liable to
the other party, including Landlord's managing agent, or to any insurance company (by way of subrogation or otherwise) insuring
the other party, for any loss or damage to any building, structure or other tangible property, or loss of income resulting therefrom,
or losses under worker's compensation laws and benefits even though such loss or damage might have been occasioned by the negligence
of such party, its agents or employees. The provisions of this Section 16.4 shall not limit the indemnification for liability to
third parties pursuant to Section 22.

 

16.5. Landlord's
Insurance. Landlord shall carry commercial general liability insurance with regard to the Property to afford protection with
limits, per occurrence, of not less than Two Million Dollars ($2,000,000), combined single limit, with respect to personal injury,
bodily injury, including death, and property damage and Five Million Dollars ($5,000,000) aggregate (occurrence form) and all-risk
property insurance written at replacement cost value and with replacement cost endorsement, covering the Property, including Tenant
Improvements to the extent paid for with the Tenant Allowance, but excluding Alterations and Tenant's Personal Property.

 

Landlord shall not
be obligated to repair any damage to Tenant's Personal Property, Tenant Improvements not paid for with the Tenant Allowance or
Alterations or replace the same.

 

17. DAMAGE AND DESTRUCTION.

 

17.1. Landlord's
Obligation to Repair and Reconstruct. If, as the result of fire, the elements, accident or other casualty (any of such causes
being referred to herein as a "Casualty"), the Premises shall be rendered wholly or partially untenantable (damaged to
such an extent as to preclude Tenant's use of the Premises for the purposes originally intended), then, subject to the provisions
of subsection 17.2, Landlord shall cause such damage to be repaired, including Tenant Improvements and Alterations to the extent
of Landlord’s insurance for such items,, and the Annual Basic Rent and Additional Rent (but not any Additional Rent due Landlord
either by reason of Tenant's failure to perform any of its obligations hereunder or by reason of Landlord's having provided Tenant
with additional services hereunder) shall be abated proportionately as to the portion of the Premises rendered untenantable during
the period of such untenantability. All such repairs shall be made at the expense of Landlord, subject to the availability of insurance
proceeds and Tenant's responsibilities set forth herein. Landlord shall not be liable for interruption to Tenant's business or
for damage to or replacement or repair of Tenant's Personal Property, all of which replacement or repair shall be undertaken and
completed by Tenant, at Tenant's expense. If such damage is not fully repaired within six (6) months after the date of the Casualty,
Tenant may cancel this Lease without liability by giving Landlord notice within thirty (30) days’ after the expiration of
such six-month period.

 

    	-18-

    	 

    
 

 

If the Premises shall
be damaged by Casualty, but the Premises shall not be thereby rendered wholly or partially untenantable, Landlord shall
promptly cause such damage to be repaired and there shall be no abatement of rent reserved hereunder.

 

17.2. Termination
of Lease. (A) If the Premises are (1) rendered wholly untenantable, or (2) damaged as a result of any cause which is not covered
by Landlord's insurance, or (B) if the Building is damaged to the extent of fifty percent (50%) or more of the gross leasable area
thereof, or (C) if, for reasons beyond Landlord's control or by virtue of the terms of any financing of the Building, sufficient
insurance proceeds are not available for the reconstruction or restoration of the Building or Premises, then, in any of such events,
Landlord or Tenant may elect to terminate this Lease by giving the other notice of such election within ninety (90) days after
the occurrence of such event, or after the insufficiency of such proceeds becomes known to Landlord, whichever is applicable. If
such notice is given, the rights and obligations of the parties shall cease as of the date set forth in such notice, and the Annual
Basic Rent and Additional Rent (but not any Additional Rent due Landlord either by reason of Tenant's failure to perform any of
its obligations hereunder or by reason of Landlord's having provided Tenant with additional services hereunder) shall be adjusted
as of the date set forth in such notice, or, if the Premises were rendered untenantable, as of the date of the Casualty. Notwithstanding
the foregoing, in the event Landlord repairs, reconstructs or restores the Building, but proceeds of Landlord’s and Tenant’s
insurance are insufficient to restore the Tenant Improvements and Alterations, then Landlord shall not have the right to terminate
this Lease if Tenant provides the additional funds necessary to reconstruct the Tenant Improvements and Alterations.

 

17.3. Demolition
of the Building. If the Building shall be so substantially damaged that it is reasonably necessary, in Landlord's judgment,
to demolish the Building for the purpose of reconstruction, Landlord may demolish the same, in which event the Annual Basic Rent
and Additional Rent (but not any Additional Rent due Landlord either by reason of Tenant's failure to perform any of its obligations
hereunder or by reason of Landlord's having provided Tenant with additional services hereunder) shall be abated to the same extent
as if the Premises were rendered wholly untenantable by a Casualty.

 

17.4. Insurance
Proceeds. If the Lease is not terminated pursuant to subsection 17.2, Landlord shall, subject to the terms of any Mortgage,
disburse and apply any insurance proceeds received by Landlord to the restoration and rebuilding of the Building in accordance
with subsection 17.1 hereof. All insurance proceeds payable with respect to the Premises and the Building shall belong to and shall
be payable to Landlord. Notwithstanding anything to the contrary, Tenant shall be entitled to receive all proceeds payable with
respect to Tenant's Personal Property.

 

18. CONDEMNATION.

 

18.1. Termination.
If either the entire Premises or the Building shall be acquired or condemned by any governmental authority under its power of eminent
domain for any public or quasi-public use or purpose, this Lease shall terminate as of the date of vesting or acquisition of title
in the condemning authority and the rents hereunder shall be abated on that date. If less than the whole but more than twenty-five
percent (25%) of the Rental Area of the Premises (leaving insufficient space for Tenant to operate its business in a commercially
reasonable manner without having to secure space outside the Building) or more than fifty percent (50%) of the total area of the
Building (even if the Premises are unaffected) or such portion of the Common Area as shall render the Premises or the Building
untenantable should be so acquired or condemned, Landlord and Tenant shall each have the option to terminate this Lease by notice
given to the other within ninety (90) days of such taking. In the event that such a notice of termination is given, this Lease
shall terminate as of the date of vesting or acquisition of title in the condemning authority and the Annual Basic Rent and Additional
Rent (but not any Additional Rent due Landlord either by reason of Tenant's failure to perform any of its obligations hereunder,
or by reason of Landlord's having provided Tenant with additional services hereunder) shall be adjusted as of such date.

 

    	-19-

    	 

    
 

 

If (a) neither Landlord
nor Tenant shall exercise their respective options to terminate this Lease, as hereinabove set forth, or (b) some lesser portion
of the Premises or the Building or Common Area, which does not give rise to a right to terminate pursuant to this subsection 18.1,
is taken by the condemning authority, this Lease shall continue in force and effect and Landlord shall exercise commercially reasonable
diligence to cause the remaining portion of the Premises or Property affected by such taking, including Tenant Improvements and
Alterations, to be repaired or restored within sixty (60) days after being affected to a condition consistent with unaffected adjacent
areas to preserve an appearance and condition consistent with a first class office building, but from and after the date of the
vesting of title in the condemning authority, the Annual Basic Rent payable hereunder during the unexpired portion of the Term
shall be reduced in proportion to the reduction in the total Rental Area of the Premises, and any Additional Rent (but not any
Additional Rent due Landlord either by reason of Tenant's failure to perform any of its obligations hereunder, or by reason of
Landlord's having provided Tenant with additional services hereunder) payable pursuant to the terms hereof shall be adjusted to
reflect the diminution of the Premises and/or the Building, as the case may be.

 

18.2. Rights to
Award. Tenant shall have no claim against Landlord arising out of the taking or condemnation, or arising out of the cancellation
of this Lease as a result of any such taking or condemnation, or for any portion of the amount that may be awarded as damages as
a result of any taking or condemnation, or for the value of any unexpired portion of the Term, or for any property lost through
condemnation, and Tenant hereby assigns to Landlord all its right, title and interest in and to any such award with regard to the
Premises; provided, however, that, in the event of a total taking, Tenant may assert any claim it may have against the condemning
authority for compensation for Tenant's Personal Property lost thereby, loss of income, and for any relocation expenses compensable
by statute and receive such awards therefor as may be allowed in the condemnation proceedings provided that such awards shall be
made in addition to, and stated separately from, the award made for the Building, the underlying land and the Premises. Landlord
shall have no obligation to contest any taking or condemnation.

 

19. BANKRUPTCY.

 

19.1. Event of Bankruptcy.
For purposes of this Lease, each of the following shall be deemed an "Event of Tenant's Bankruptcy":

 

		(a)	if Tenant becomes insolvent, as defined in the Bankruptcy Code, or under the Insolvency Laws;

 

		(b)	the commencement of any action or proceeding for the dissolution or liquidation of Tenant or for
the appointment of a receiver or trustee of the property of Tenant, whether instituted by or against Tenant, if not bonded or discharged
within thirty (30) days of the date of the commencement of such proceeding or action;

 

    	-20-

    	 

    
 

 

		(c)	if Tenant files a voluntary petition under the Bankruptcy Code or Insolvency Laws;

 

		(d)	if there is filed an involuntary petition against Tenant as the subject debtor under the Bankruptcy
Code or Insolvency laws, which is not dismissed within sixty (60) days of filing, or results in issuance of an order for relief
against the debtor; and

 

		(e)	if Tenant makes or consents to an assignment of its assets, in whole or in part, for the benefit
of creditors, or to a common law composition of creditors.

 

As used herein, (i)
"Bankruptcy Code" means title 11 of the United States Code, 11 U.S.C. Section 101 et. seq. as amended or any successor
statute and (ii) Insolvency Laws means the insolvency laws of any state or territory of the United States.

 

19.2. Assumption
by Trustee. If Tenant becomes the subject debtor in a case pending under the Bankruptcy Code, Landlord's right to terminate
this Lease under Section 20 hereof shall be subject to the applicable rights (if any) of the Trustee in Bankruptcy to assume or
assign this Lease as then provided for in the Bankruptcy Code. However, the Trustee in Bankruptcy must give to Landlord and Landlord
must receive proper written notice of the Trustee's assumption or rejection of this Lease, within sixty (60) days (or such other
applicable period as is provided for in the Bankruptcy Code) after the date of the Trustee's appointment. The failure of the Trustee
to give notice of the assumption within the period shall conclusively and irrevocably constitute the Trustee's rejection of this
Lease and waiver of any rights of the Trustee to assume or assign this Lease. The Trustee shall not have the right to assume or
assign this Lease unless the Trustee (i) promptly and fully cures all defaults under this Lease, (ii) promptly and fully compensates
Landlord for all monetary damages incurred as a result of such default, and (iii) provides to Landlord adequate assurance of future
performance. In the event Tenant is unable to: (i) cure its defaults, (ii) reimburse Landlord for its monetary damages, or (iii)
pay the Rent due under this Lease on time, then Tenant hereby agrees in advance that it has not met its burden to provide adequate
assurance of future performance, and this Lease may be terminated by Landlord in accordance with Section 20.

 

19.3. Tenant's Guarantor's
Bankruptcy. Notwithstanding any of the other provisions of this Lease, in the event Tenant's obligations under this Lease are
guaranteed by a guarantor, and said guarantor shall voluntarily or involuntarily come under the jurisdiction of the Bankruptcy
Code, and thereafter said guarantor or its trustee in bankruptcy, under the authority of and pursuant to applicable provisions
thereof, shall determine to assign the guarantee obligations of said guarantor hereunder, Tenant and its said guarantor agree that
(a) said guarantor or its trustee will provide Landlord sufficient information enabling it to independently determine whether Landlord
will incur actual and substantial detriment by reason of such assignment, and (b) "adequate assurance of future performance"
in regard to such guarantee obligations of said guarantor, as that term is generally defined under the Bankruptcy Code, will be
provided to Landlord by said guarantor or its trustee and its assignee as a condition of said assignment.

 

20. DEFAULT PROVISIONS
AND REMEDIES.

 

20.1. Events of
Default. Each of the following shall be deemed an Event of Default by Tenant under this Lease:

 

    	-21-

    	 

    
 

 

a. failure of Tenant
to pay Annual Basic Rent, Additional Rent, or any other sum required to be paid under the terms of this Lease, including late charges,
within five (5) business days after Landlord gives Tenant written notice of such failure);

 

b. failure by Tenant
to perform or observe any other term, covenant, agreement or condition of this Lease, on the part of Tenant to be performed (other
than those obligations of Tenant set forth in subsection 16.2 for which Tenant shall be entitled to receive no prior notice, and
other than the conditions set forth in paragraphs 20.1.a, c, d, e, f and g, which shall be governed solely by the provisions set
forth herein), within thirty (30) days after notice thereof from the Landlord, unless such performance shall reasonably require
a longer period, in which case Tenant shall not be deemed in default if Tenant commences the required performance promptly and
thereafter pursues and completes such action diligently and expeditiously and in any event within not more than thirty (30) days;

 

c. the filing of a tax
or mechanic's lien suit or claim against any property of Tenant which is not bonded or discharged and/or dismissed within thirty
(30) days of the date Tenant receives notice that such lien is filed;

 

d. abandonment of the
Premises by Tenant, provided if Tenant continues to timely pay the Annual Basic Rent, Additional Rent and all other amounts due
Landlord hereunder, Landlord’s sole remedy shall be either to terminate this Lease or, at Landlord’s sole option, to
terminate Tenant’s right of occupancy hereunder;

 

e. an Event of Tenant's
Bankruptcy or the rejection of this Lease in a Bankruptcy or similar proceeding by Tenant or by operation of law;

 

f. the sale of Tenant's
interest in the Premises under attachment, execution or similar legal process

 

g. the failure of Tenant
to vacate the Premises upon the expiration of the Term, or the earlier termination thereof pursuant to the other provisions hereof.

 

20.2. Remedies.
Upon the occurrence of an Event of Default, Landlord, without notice to Tenant in any instance (except where expressly provided
for below or by applicable law) may do any one or more of the following:

 

		(a)	Sell at public or private sale all or any part of the goods, chattels, fixtures and other Tenant's
Personal Property which are or may be put into the Premises during the Term, whether exempt or not from sale under execution or
attachment (it being agreed that said property shall at all times be bound within a lien in favor of Landlord subject to the provisions
of Section 21) and apply the proceeds of such sale, first, to the payment of all costs and expenses of conducting the sale or caring
for or storing said property (including all attorneys' fees), second, toward the payment of any indebtedness, including (without
limitation) indebtedness for Annual Basic Rent, which may be or may become due from Tenant to Landlord, and third, to pay Tenant,
on demand in writing, any surplus remaining after all indebtedness of Tenant to Landlord has been fully paid;

 

		(b)	perform, on behalf and at the expense of Tenant, any obligation of Tenant under this Lease which
Tenant has failed to perform and of which Landlord shall have given Tenant notice, the cost of which performance by Landlord, together
with interest thereon at the Default Rate from the date of such expenditure, shall be payable by Tenant to Landlord, as Additional
Rent, upon demand. Notwithstanding the provisions of this clause (b) and regardless of whether an Event of Default shall have occurred,
Landlord may exercise the remedy described in clause (b) without any notice to Tenant if Landlord, in its good faith judgment,
believes it would be materially injured by failure to take rapid action or if the unperformed obligation of Tenant constitutes
an emergency;

 

    	-22-

    	 

    
 

 

		(c)	elect to terminate this Lease and the tenancy created hereby by giving notice of such election
to Tenant, and reenter the Premises, by summary proceedings or otherwise, and remove Tenant and all other persons and property
from the Premises, and store such property in a public warehouse or elsewhere at the cost of and for the account of Tenant without
resort to legal process and without Landlord being deemed guilty of trespass or becoming liable for any loss or damage occasioned
thereby;

 

		(d)	declare any option which Tenant may have to renew the Term or expand the Premises to be null and
void and of no further force and effect; or

 

		(e)	exercise any other legal or equitable right or remedy which it may have.

 

Any costs and expenses
incurred by Landlord (including, without limitation, reasonable attorneys' fees) in enforcing any of its rights or remedies under
this Lease shall be paid to Landlord by Tenant, as Additional Rent, upon demand.

 

20.3. Damages.
If this Lease is terminated by Landlord pursuant to subsection 20.2.(c), Tenant nevertheless shall remain liable for (a) any Annual
Basic Rent, Additional Rent, and damages which may be due or sustained prior to such termination, and (b) all reasonable costs,
fees and expenses including, but not limited to, attorneys' fees, costs and expenses incurred by Landlord in pursuit of its remedies
hereunder or in renting the Premises to others from time to time. In addition, Landlord may recover from Tenant additional damages
to compensate Landlord for loss of rent resulting from termination of the Lease, which, at the election of Landlord, shall be either:

 

		(i)	An amount equal to the rent which, but for termination of this Lease, would have become due during
the remainder of the Term, less the amount of rent, if any, which Landlord shall receive during such period from others to whom
the Premises may be rented (other than any Additional Rent received by Landlord as a result of any failure of such other person
to perform any of its obligations to Landlord), in which case such damages shall be computed and payable in monthly installments,
in advance, on the first day of each calendar month following termination of the Lease and continuing until the date on which the
Term would have expired but for such termination; any suit or action brought to collect any such damages for any month shall not
in any manner prejudice the right of Landlord to collect any damages for any subsequent month by a similar proceeding; or

 

		(ii)	an amount equal to the present worth (as of the date of such termination) of rent which, but for
termination of this Lease, would have become due during the remainder of the Term, in which case such damages shall be payable
to Landlord in one lump sum on demand and shall bear interest at the Default Rate until paid. For purposes of this clause (ii),
"present worth" shall be computed by discounting such amount to present worth at a discount rate equal to one percentage
point above the discount rate then in effect at the Federal Reserve Bank nearest to the location of the Property.

 

Damages shall be due
and payable immediately upon demand by Landlord following any termination of this Lease pursuant to subsection 20.2.

 

If this Lease is terminated
pursuant to subsection 20.2., Landlord may re-lease the Premises or any part thereof, alone or together with other premises, for
such term(s) (which may be greater or less than the period which otherwise would have constituted the balance of the Term) and
on such terms and conditions (which may include concessions or free rent and alterations of the Premises) as Landlord, in its sole
discretion, may determine. The failure or refusal of Landlord to re-lease the Premises or any part or parts thereof shall not release
or affect Tenant's liability for damages.

 

    	-23-

    	 

    
 

 

Notwithstanding the
above, in the event of the termination of this Lease by reason of Tenant's bankruptcy or insolvency, Landlord shall have the right
to prove and/or obtain as damages an amount equal to the greater of the maximum allowed under the Lease or any statute or rule
of law in effect at the time.

 

20.4. No Waiver.
No act or omission by Landlord shall be deemed to be an acceptance of a surrender of the Premises or a termination of Tenant's
liabilities hereunder, unless Landlord shall execute a written release of Tenant. Tenant's liability hereunder shall not be terminated
by the execution by Landlord of any new lease for all or any portion of the Premises or the acceptance of rent from any assignee
or subtenant.

 

20.5. Remedies Not
Exclusive. All rights and remedies of Landlord set forth in this Lease shall be cumulative, and none shall exclude any other
right or remedy, now or hereafter allowed by or available under any statute, ordinance, rule of court, or the common law, either
at law or in equity, or both. For the purposes of any suit brought or based hereon, this Lease shall be construed to be a divisible
contract, to the end that successive actions may be maintained on this Lease as successive periodic sums shall mature hereunder.
The failure of Landlord to insist, in any one or more instances, upon a strict performance of any of the covenants, terms and conditions
of this Lease or to exercise any right or option herein contained shall not be construed as a waiver or a relinquishment for the
future, of such covenant, term, condition, right or option, but the same shall continue and remain in full force and effect unless
the contrary is expressed by Landlord in writing. The receipt by Landlord of rents hereunder, with knowledge of the breach of any
covenant hereof or the receipt by Landlord of less than the full rent due hereunder, shall not be deemed a waiver of such breach
or of Landlord's right to receive the full rents hereunder, and no waiver by Landlord of any provision hereof shall be deemed to
have been made unless expressed in writing and signed by Landlord.

 

20.6. Persistent
Failure to Pay Rent. In addition to any other remedies available to Landlord pursuant to this Lease or by law, upon an Event
of Default under subsection 20.1.a., on three (3) separate occasions during any twelve (12) month period, regardless of whether
or not such prior defaults have been cured, Landlord shall have the right to declare the Default Rate applicable to late payments
of Rent thereafter during the Term to be twice the amounts set forth in Section 6.5 (i.e., 10% and 20%).

 

21. LANDLORD'S LIEN.

 

21.1. Tenant hereby
grants to Landlord a lien and security interest on all property of Tenant now or hereafter placed in or upon the Premises, and
such property shall be and remain subject to such lien and security interest of Landlord for payment of all Rent and other sums
agreed to be paid by Tenant herein. It is provided, however, the Landlord shall not have a lien which would be superior to a lien
from a lending institution, supplier or leasing company, if such lending institution, supplier or leasing company has a security
interest in the equipment, furniture or other tangible personal property.

 

21.2. The provisions
of this paragraph relating to such lien and security interest shall constitute a security agreement under and subject to the Uniform
Commercial Code of the state where the Premises are located so that Landlord shall have and may enforce a security interest on
all property of Tenant now or hereafter placed in or on the Premises, in addition to and cumulative of the Landlord's liens and
rights provided by law or by the other terms and provisions of this Lease.

 

    	-24-

    	 

    
 

 

22. INDEMNITY.

 

To the maximum extent
permitted by law, Tenant shall indemnify, hold harmless and (at Landlord's option) defend Landlord, its agents, servants and employees
from and against all claims, actions, losses, costs and expenses (including reasonable attorneys' and other professional fees),
judgments, settlement payments, and, whether or not reduced to final judgment, all liabilities, damages, or fines paid, incurred
or suffered by any third parties to the extent arising from (a) any Event of Default by Tenant under the terms of this Lease, (b)
the use or occupancy of the Property by Tenant or any person claiming through or under Tenant, and/or (c) any acts or omissions
of Tenant or any contractor, agent, employee, invitee or licensee of Tenant in or about the Property; provided, however, if Tenant
or its contractor, agent, employee, invitee or licensee was not directly responsible, then Landlord shall not be entitled to incidental,
prospective or consequential damages. The foregoing indemnity is in addition to, and not in substitution for, any indemnity given
by Tenant to Landlord under subsection 8.3. Tenant’s indemnification obligation shall survive the expiration of the Term
or the earlier termination of this Lease.

 

To the maximum extent
permitted by law, Landlord shall indemnify, hold harmless and (at Tenant's option) defend Tenant, its agents, servants and employees
from and against all claims, actions, losses, costs and expenses (including reasonable attorneys' and other professional fees),
judgments, settlement payments, and, whether or not reduced to final judgment, all liabilities, damages, or fines paid, incurred
or suffered by any third parties to the extent arising from (a) any failure by Landlord to carry out its obligations under the
terms of this Lease, and/or (b) any acts or omissions of Landlord or any contractor, agent, employee, or licensee of Landlord in
or about the Property; provided, however, if Landlord or its contractor, agent, employee, invitee or licensee was not directly
responsible, then Tenant shall not be entitled to incidental, prospective or consequential damages. The foregoing indemnity is
in addition to, and not in substitution for, any other indemnity given by Landlord to Tenant under this Lease. Landlord’s
indemnification obligation shall survive the expiration of the Term or the earlier termination of this Lease.

 

23. LIMITATION ON
LANDLORD LIABILITY.

 

The term "Landlord"
as used in this Lease shall mean only the owner or the Mortgagee or its trustees, as the case may be, then in possession of the
Property so that in the event of any transfer by Landlord of its interest in the Property, the Landlord in possession immediately
prior to such transfer shall be, and hereby is, entirely released and discharged from all covenants, obligations and liabilities
of Landlord under this Lease accruing after such transfer. In consideration of the benefits accruing hereunder, Tenant, for itself,
its successors and assigns, covenants and agrees that, in the event of any actual or alleged failure, breach or default hereunder
by the Landlord, and notwithstanding anything to the contrary contained elsewhere in this Lease, the remedies of Tenant under this
Lease shall be solely and exclusively limited to Landlord's interest in the Property.

 

24. LANDLORD OBLIGATIONS.

 

Landlord agrees to
perform all of its obligations under this Lease in a first class manner consistent with the standards applicable to similar buildings
in the vicinity of the Building. Landlord shall be excused for the period of any delay in the performance of any of its obligations
when the delay is due to any cause or causes beyond Landlord's control which include, without limitation, acts of God, all labor
disputes, governmental regulations or controls, civil unrest, war, adverse weather condition, fire or other casualty, inability
to obtain any material, services, or financing unless otherwise provided for in this Lease. Except where specifically set forth
in this Lease, there shall be no abatement, set-off or deduction of Annual Basic Rent or Additional Rent due under this Lease.

 

    	-25-

    	 

    
 

 

25. ASSIGNMENT AND
SUBLETTING.

 

25.1. Prohibited
Without Landlord's Consent. Tenant agrees for itself and its permitted successors and assigns in interest hereunder that it
will not (a) assign or otherwise transfer, mortgage or otherwise encumber this Lease or any of its rights hereunder; (b) sublet
the Premises or any part thereof or permit the occupancy or use of the Premises or any part thereof by any person other than Tenant;
and/or (c) permit the assignment or other transfer of this Lease or any of Tenant's rights hereunder by operation of law (each
of the events referred to in the foregoing clauses (a), (b) and (c) being hereinafter referred to as a "Transfer"), without
the prior written consent of Landlord in each instance first obtained, which consent may be given or withheld in Landlord's sole
and absolute subjective discretion, and any consent given shall not constitute a consent to any subsequent Transfer. Any attempted
Transfer without Landlord's consent shall be null and void and shall not confer any rights upon any purported transferee, assignee,
mortgagee, sublessee, or occupant. No Transfer, regardless of whether Landlord's consent has been granted or withheld, shall be
deemed to release Tenant from any of its obligations hereunder or to alter, impair or release the obligations of any person guaranteeing
the obligations of Tenant hereunder. Tenant hereby indemnifies Landlord against liability resulting from any claim made against
Landlord by any assignee or subtenant or by any broker claiming a commission in connection with the proposed Transfer.

 

Notwithstanding the
foregoing, Landlord shall not unreasonably withhold, condition or delay its consent to a subletting or assignment of this Lease
by Tenant provided that: (a) if an assignment of this Lease is contemplated, the proposed transferee has a financial capacity and
net worth, in combination with the financial capacity and net worth of the Tenant, sufficient to fulfill the terms of this Lease,
as determined by Landlord based on financial information about such transferee provided by Tenant or such transferee; (b) the proposed
use of the Premises by the proposed transferee is permitted by this Lease and is compatible with the operation of the Building;
(c) the proposed transferee wants to lease more than 3,500 square feet and is not a prospect actively engaged in lease discussions
with Landlord or its agent for the Building or a letter of intent has not been signed with the proposed transferee for space in
any other building owned or operated by Landlord or its affiliate within the Business Community, and (d) an Event of Default does
not then exist under this Lease.

 

Provided an Event of
Default does not then exist under this Lease, Tenant shall have the right to assign this Lease or sublet the Premises to a parent,
subsidiary or affiliate corporation of Tenant (“Tenant’s Affiliate”) without the consent of Landlord. Tenant
shall deliver written notice to Landlord of any such Transfer. The foregoing waiver of right to consent does not constitute a waiver
of the right of Landlord to consent to any Transfer not specifically permitted hereby.

 

25.2. Stock Transfer.
(intentionally deleted)

 

 

25.3. Rents from
Transfer.

 

In the event of any
Transfer (except a Transfer to Tenant’s Affiliate), whether consented to by Landlord or not, any and all amounts received
by Tenant as a result of such Transfer minus Tenant’s reasonable, actual out-of-pocket costs in effecting such Transfer,
shall be the property of Landlord , to the extent the same (determined on a square foot basis) are greater than the Annual Basic
Rental (on a square foot basis) payable under this Lease, it being the parties' intent that any profit resulting from such Transfer
shall belong solely to Landlord, but the same shall not be deemed to be a consent by Landlord to any such Transfer or a waiver
of any right or remedy of Landlord hereunder.

 

    	-26-

    	 

    
 

 

25.4. Procedure
for Obtaining Landlord's Consent.

 

A. In the event that,
at any time or from time to time prior to or during the Term, Tenant desires to Transfer this Lease in whole or in part, whether
by operation of law or otherwise, Tenant shall submit to Landlord for its consideration (a) in writing, the name and address of
the proposed subtenant or assignee, a reasonably detailed statement of the proposed subtenant's or assignee's business and reasonably
detailed financial references and information concerning the financial condition of the proposed subtenant or assignee, (b) a disclosure
of the rents to be paid by any subtenant in excess of the rents reserved hereunder or the premium to be paid for the assignment,
and (c) if a subletting, a description of the area of the Premises to be sublet. Tenant agrees to pay Landlord, as Additional Rent,
all reasonable third-party costs incurred by Landlord in connection with any actual or proposed Transfer, including, without limitation,
the costs of making investigations as to the acceptability of a proposed subtenant or assignee and legal costs incurred in connection
with any requested consent.

 

B. Landlord's consent
to an assignment of this Lease shall be effective upon the execution by Tenant, the assignee, and Landlord of an assignment document
prepared by Landlord in which the assignee shall agree to assume, observe, perform, and be bound by, all of Tenant's obligations
under this Lease and Tenant shall agree to remain primarily liable for such obligations.

 

Any consent by Landlord
to a subletting of all or a portion of the Premises shall be deemed to have been given only upon the delivery by Landlord to Tenant
of a consent document prepared and executed by Landlord expressly consenting to such subletting.

 

25.5. Additional
Provisions Respecting Transfers.

 

A. Without limiting
Landlord's right to withhold its consent to any Transfer by Tenant, and regardless of whether Landlord shall have consented to
any such Transfer, neither Tenant nor any other person having an interest in the possession, use or occupancy of the Premises or
any part thereof shall enter into any lease, sublease, license, concession, assignment or other Transfer or agreement for possession,
use or occupancy of all or any portion of the Premises which provides for rental or other payment for such use, occupancy or utilization
based, in whole or in part, on the net income or profits derived by any person or entity from the space so leased, used or occupied,
and any such purported lease, sublease, license, concession, assignment or other Transfer or agreement shall be absolutely void
and ineffective as a conveyance of any right or interest in the possession, use or occupancy of all or any part of the Premises.
Upon any Transfer of this Lease (other than a Transfer to Tenant’s Affiliate), any option which Tenant may have to renew
the Term or to expand or decrease the size of the Premises shall be null and void.

 

B. Tenant agrees to
pay Landlord Seven Hundred Fifty Dollars and No Cents ($750.00) to reimburse Landlord for attorneys’ fees and administrative
expense for the review, processing and preparation of any document(s) evidencing Landlord’s consent in connection with a
Transfer.

 

26. HOLDING OVER.

 

Tenant agrees to vacate
the Premises at the end of the Term, or earlier termination thereof, and Landlord shall be entitled to the benefit of all summary
proceedings to recover possession of the Premises at the end of the Term. If Tenant remains in possession of the Premises without
Landlord’s consent after the expiration of the Term, such action shall not renew this Lease by operation of law and nothing
herein shall be deemed as a consent by Landlord to Tenant's remaining in the Premises. If Tenant fails to vacate the Premises as
required, Landlord may consider Tenant as either (a) a "Tenant-at-Will" (i.e. month-to-month tenant) liable for the payment
of rent at the then market rate as determined by Landlord or (b) as a "Tenant-Holding Over" liable for an amount equal
to the actual damages incurred by Landlord as a result of Tenant's holding over, including, without limitation, all incidental,
prospective and consequential damages and attorney's fees, but in no event shall such amount be less than an amount equal to 150%
of the Annual Basic Rent, and Additional Rent, reserved hereunder applicable to the period of the holdover. In either event, all
other covenants of this Lease shall remain in full force and effect.

 

    	-27-

    	 

    
 

 

27. SUBORDINATION
AND ATTORNMENT.

 

This Lease is subject
and subordinate to the liens of all mortgages, deeds of trust and other security instruments now or hereafter placed upon the Building
or the Property or any portion thereof and all ground and other underlying leases from which Landlord's interest is derived (said
mortgages, deeds of trust, other security instruments, and ground leases being hereinafter referred to as "Mortgages"
and the mortgagees, beneficiaries, secured parties, and ground lessors thereunder from time to time being hereinafter called "Mortgagees"),
and to any and all renewals, extensions, modifications, or refinancings thereof, without any further act of the Tenant. If requested
by Landlord, however, Tenant shall promptly execute any certificate or other reasonable document confirming such subordination.
Tenant agrees that, if any proceedings are brought for the foreclosure of any of the Mortgages, Tenant, if requested to do so by
the purchaser at the foreclosure sale, who shall also recognize Tenant’s rights to continued use and occupancy of the Premises
under this Lease, shall attorn to the purchaser, recognize the purchaser as the landlord under this Lease, and make all payments
required hereunder to such new landlord without any deduction or set-off of any kind whatsoever. Tenant waives the provisions of
any law or regulation, now or hereafter in effect, which may give, or purport to give, Tenant any right to terminate this Lease
or to alter the obligations of Tenant hereunder in the event that any such foreclosure or termination or other proceeding is prosecuted
or completed.

 

Notwithstanding anything
contained herein to the contrary, any Mortgagee may at any time subordinate the lien of its Mortgages to the operation and effect
of this Lease without obtaining the Tenant's consent thereto, by giving the Tenant written notice thereof, in which event this
Lease shall be deemed to be senior to such Mortgages without regard to the respective dates of execution and/or recordation of
such Mortgages and this Lease and thereafter such Mortgagee shall have the same rights as to this Lease as it would have had were
this Lease executed and delivered before the execution of such Mortgages.

 

Notwithstanding anything
in this Section 27 to the contrary, Landlord shall use reasonable efforts to obtain from any current and future Mortgagee a non-disturbance
agreement in form reasonably acceptable to Tenant and such Mortgagee.

 

If, in connection with
obtaining financing for the Building, a Mortgagee shall request reasonable modifications in this Lease as a condition to such financing,
Tenant will not unreasonably withhold, delay or defer its consent thereto, provided that such modifications do not increase the
obligations of Tenant hereunder, or adversely affect the leasehold interest hereby created or Tenant's use and enjoyment of the
Premises, or increase the amount of Annual Basic Rent and Additional Rent payable hereunder.

 

28. ESTOPPEL CERTIFICATES.

 

Tenant shall, without
charge, at any time and from time-to-time, within fifteen (15) days after receipt of request therefor by Landlord, execute, acknowledge
and deliver to Landlord a written estoppel certificate, in such form as reasonably may be determined by Landlord, certifying to
Landlord, Landlord's Mortgagee, any purchaser of Landlord's interest in the Building, or any other person designated by Landlord,
as of the date of such estoppel certificate, the following, without limitation: (a) whether Tenant is in possession of the Premises;
(b) whether this Lease is in full force and effect; (c) whether there have been any amendments to this Lease, and if so, specifying
such amendments; (d) whether there are then existing any set-offs or defenses against the enforcement of any rights hereunder,
and if so, specifying such matters in detail; (e) the dates, if any, to which any rent or other charges have been paid in advance
and the amount of any Security Deposit held by Landlord; (f) that Tenant has no knowledge of any then existing defaults of Landlord
under this Lease, or if there are such defaults, specifying them in detail; (g) that Tenant has no knowledge of any event having
occurred that authorizes the termination of this Lease by Tenant, or if such event has occurred, specifying it in detail; and (h)
the address to which notices to Tenant under this Lease should be sent. Any such certificate may be relied upon by the person or
entity to whom it is directed or by any other person or entity who could reasonably be expected to rely on it in the normal course
of business. The failure of Tenant to execute, acknowledge and deliver such a certificate in accordance with this Section 28 within
fifteen (15) days after a request therefor by Landlord shall constitute an acknowledgment by Tenant, which may be relied on by
any person who would be entitled to rely upon any such certificate, that such certificate as submitted by Landlord to Tenant is
true and correct.

 

    	-28-

    	 

    
 

 

29. PEACEFUL AND
QUIET POSSESSION.

 

Tenant, if and so long as it pays all rents
due hereunder and performs and observes the other terms and covenants to be performed and kept by it as provided in this Lease,
shall have the peaceable and quiet possession of the Premises during the Term free of any claims of Landlord or anyone claiming
by, through or under Landlord, subject, however, to the terms of this Lease and to matters of public record existing as of the
date of this Lease.

 

30. LANDLORD'S ACCESS
TO PREMISES.

 

Landlord and its agents
may at any reasonable time upon not less than one (1) business days’ notice to Tenant and without incurring any liability
to Tenant, other than liability arising under Section 22, enter the Premises to inspect them or to make alterations or repairs
or for any purpose which Landlord considers necessary for the repair, operation, or maintenance of the Building; provided, however,
that in the case of an emergency, Landlord may enter the Premises at any time. Tenant shall allow the Premises to be exhibited
by Landlord (a) at any reasonable time upon not less than one (1) business days’ notice to Tenant to any representative of
a lender or to any prospective purchaser of the Building or Landlord's interest therein or (b) within twelve (12) months of the
end of the Term to any persons who may be interested in leasing the Premises.

 

31. RELOCATION.
Intentionally deleted.

 

32. BROKERS, COMMISSIONS,
ETC.

 

Landlord and Tenant
acknowledge, represent and warrant each to the other that, except as listed in Section 1.F., no broker or real estate agent brought
about or was involved in the making of this Lease and that no brokerage fee or commission is due to any other party as a result
of the execution of this Lease. Landlord shall compensate the broker(s) identified in Section 1.F. in accordance with separate
agreements executed between Landlord and such broker(s). Each of the parties hereto agrees to indemnify and hold harmless the other
against any claim by any broker, agent or finder based upon the execution of this Lease and predicated upon a breach of the above
representation and warranty.

 

    	-29-

    	 

    
 

 

33. RECORDATION.

 

Neither Landlord nor
Tenant shall record this Lease, any amendment to this Lease or any other memorandum of this Lease without the prior written consent
of the other party, which consent may be withheld in the sole discretion of either party and, in the event such consent is given,
the party requesting such consent and recording shall pay all transfer taxes, recording fees and other charges in connection with
such recording. Notwithstanding the above, Tenant covenants that if at any time any mortgagee or ground lessor relating to the
financing of the Property shall require the recordation of this Lease, or if the recordation of this Lease shall be required by
any valid governmental order, or if any governmental authority having jurisdiction in the matter shall assess and be entitled to
collect transfer taxes, documentary stamp taxes, or both, on this Lease, Tenant, upon the request of Landlord, shall execute such
instruments, including a Memorandum of this Lease, as may be necessary to record this Lease, and the parties shall share equally
all recording fees, transfer taxes and documentary stamp taxes, payable on, or in connection with, this Lease or such recordation,
except in the event recordation is required by Landlord or Landlord’s Mortgagee, in which event Landlord shall pay all such
fees and taxes.

 

34. MISCELLANEOUS.

 

34.1. Severability.
If any term or provision of this Lease or the application thereof to any person or circumstance shall, to any extent, be invalid
or unenforceable, the remainder of this Lease or the application of such term or provision to persons or circumstances other than
those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Lease
shall be valid and enforceable to the fullest extent permitted by law.

 

34.2. Applicable
Law. This Lease shall be given effect and construed by application of the laws of the state where the Property is located,
and any action or proceeding arising hereunder shall be brought in the courts of the State where the Premises are located.

 

34.3. Authority.
If Tenant is a corporation or partnership, the person executing this Lease on behalf of Tenant represents and warrants that Tenant
is duly organized and validly existing; that this Lease has been authorized by all necessary parties, is validly executed by an
authorized officer or agent of Tenant and is binding upon and enforceable against Tenant in accordance with its terms.

 

The undersigned agent
of Landlord represents and warrants that it is authorized and empowered to enter into this Lease Agreement on behalf of the Landlord.

 

34.4. No Discrimination.
It is Landlord's policy to comply with all applicable state and federal laws prohibiting discrimination in employment based on
race, age, color, sex, national origin, disability, religion, or other protected classification. It is further intended that the
Building shall be operated so that all prospective tenants thereof, and all customers, employees, licensees and invitees of all
tenants shall have equal opportunity to obtain all the goods, services, accommodations, advantages, facilities and privileges of
the Building without discrimination because of race, age, color, sex, national origin, disability, or religion. To that end, Tenant
shall not discriminate in the conduct and operation of its business in the Premises against any person or group of persons because
of the race, age, color, sex, religion, national origin or other protected classification of such person or group of persons.

 

34.5. Integration
of Agreements. This writing is intended by the parties as a final expression of their agreement and is a complete and exclusive
statement of its terms, and all negotiations, considerations and representations between the parties hereto are incorporated herein.
No course of prior dealings between the parties or their agents shall be relevant or admissible to supplement, explain, or vary
any of the terms of this Lease. Acceptance of, or acquiescence to, a course of performance rendered under this Lease or any prior
agreement between the parties or their agents shall not be relevant or admissible to determine the meaning of any of the terms
or covenants of this Lease. Other than as specifically set forth in this Lease, no representations, understandings or agreements
have been made or relied upon in the making of this Lease. This Lease can only be modified by a writing signed by each of the parties
hereto.

 

    	-30-

    	 

    
 

 

34.6. Third Party
Beneficiary. Except as expressly provided elsewhere in this Lease, nothing contained in this Lease shall be construed so as
to confer upon any other party the rights of a third party beneficiary.

 

34.7. Captions;
Gender. The captions used in this Lease are for convenience only and do not in any way limit or amplify the terms and provisions
hereof. As used in this Lease and where the context so requires, the singular shall be deemed to include the plural and the masculine
shall be deemed to include the feminine and neuter, and vice versa.

 

34.8. Successors
and Assigns. Subject to the express provisions of this Lease to the contrary (e.g., Section 25), the terms, provisions and
covenants contained in this Lease shall apply to, inure to the benefit of, and be binding upon the parties hereto and their respective
heirs, personal representatives, successors and assigns.

 

34.9. Waiver of
Jury Trial. Landlord and Tenant hereby expressly waive trial by jury in any action or proceeding or counterclaim brought by
either party hereto against the other party on any and every matter, directly or indirectly arising out of or with respect to this
Lease, including, without limitation, the relationship of Landlord and Tenant, the use and occupancy by Tenant of the Premises,
any statutory remedy and/or claim of injury or damage regarding this Lease.

 

34.10. Joint and
Several Liability. In the event that two (2) or more persons (i.e., natural persons, corporations, partnerships, associations
and other legal entities) shall sign this Lease as Tenant, the liability of each such party to pay all rents due hereunder and
perform all the other covenants of this Lease shall be joint and several. In the event Tenant is a general partnership or a limited
partnership with two or more general partners, the liability of each partner, or general partner, under this Lease shall be joint
and several.

 

34.11. Notices.
All notices, demands and requests required under this Lease shall be in writing. All such notices, demands and requests shall be
deemed to have been properly given if sent by United States certified mail, return receipt requested, postage prepaid, or hand
delivered, or overnight delivery, addressed to Landlord or Tenant, at the Landlord Notice Address and Tenant Notice Address, respectively.
Either party may designate a change of address by written notice to the other party, in the manner set forth above. Notice, demand
and requests which shall be served by certified mail in the manner aforesaid, shall be effective upon receipt (or refusal to accept
delivery) after mailing, as evidenced by return receipt. Notices sent by overnight delivery shall be deemed to have been given
the day of delivery (or refusal to accept delivery). Without intending to limit the generality of the foregoing requirement that
all notices, demands and requests be in writing, there are certain provisions in this Lease where, for emphasis alone, such requirement
is reiterated.

 

34.12. Effective
Date of this Lease. Unless otherwise expressly provided, all terms, conditions and covenants by Tenant contained in this Lease
shall be effective as of the date first above written.

 

34.13. Mechanics'
Liens. In the event that any mechanics' or materialmen's lien, suit or claim shall at any time be filed against the Premises
purporting to be for work, labor, services or materials performed or furnished by any third party to Tenant or anyone holding the
Premises through or under Tenant, Tenant shall cause the same to be dismissed and/or discharged of record or bonded within thirty
(30) days after receiving notice of the filing thereof. If Tenant shall fail to cause such lien to be discharged and/or dismissed
or bonded within thirty (30) days after receiving notice of the filing thereof, then, in addition to any other right or remedy
of Landlord, Landlord may, but shall not be obligated to, discharge the same by paying the amount claimed to be due; and the amount
so paid by Landlord, and all costs and expenses, including reasonable attorneys' fees incurred by Landlord in procuring the discharge
of such lien, shall be due and payable by Tenant to Landlord, as Additional Rent, on the first day of the next succeeding full
calendar month. Notice is hereby given that Landlord shall not be liable for any labor or materials furnished to Tenant upon credit
and that no mechanics', materialmen's or other liens for any such labor or materials shall attach to or affect the estate or interest
of Landlord in and to the land and improvements of which the Premises are a part.

 

    	-31-

    	 

    
 

 

34.14. Waiver of
Right of Redemption. Tenant hereby expressly waives (to the extent legally permissible) for itself and all persons claiming
by, through or under it, any right of redemption or right to restore the operation of this Lease under any present or future law
in the event Tenant is dispossessed for any proper cause, or in the event Landlord shall obtain possession of the Premises pursuant
to the terms of this Lease. Tenant understands that the Premises are leased exclusively for business, commercial and mercantile
purposes and therefore shall not be redeemable under any provision of law.

 

34.15.  Mortgagee's
Performance. If requested by any Mortgagee, Tenant shall give such Mortgagee written notice of any default by Landlord under
this Lease and a reasonable opportunity to cure such default. Tenant shall accept performance of any of Landlord's obligations
hereunder by any ground lessor or mortgagee relating to the financing of the Property.

 

34.16.  Mortgagee's
Liability. No mortgagee or ground lessor relating to the financing of the Property, not in possession of the Premises or the
Building, shall have any liability whatsoever hereunder.

 

34.17. Schedules.
Each writing or plat referred to herein as being attached hereto as a schedule or exhibit is hereby made a part hereof, with the
same full force and effect as if such writing or plat were set forth in the body of this Lease.

 

34.18. Time of Essence.
Time shall be of the essence of this Lease with respect to the performance by Tenant and Landlord of their respective obligations
hereunder.

 

34.19. Amendment.
This Lease may be amended by and only by an instrument executed and delivered by each party hereto. No amendments of this Lease
entered into by Landlord and Tenant, as aforesaid, shall impair or otherwise affect the obligations of any guarantor of Tenant's
obligations hereunder, all of which obligations shall remain in full force and effect and pertain equally to any such amendments,
with the same full force and effect as if the substance of such amendments was set forth in the body of this Lease.

 

34.20.Parking.
During the Term and any Renewal Term, Landlord shall provide free, unreserved parking for Tenant and its employees and customers
in either structured or surface parking areas adjacent to the Building at the ratio of three spaces per 1,000 square feet of Floor
Area pursuant to the Parking Easement and Cost Sharing Agreement dated June 13, 2012, and recorded among the Land Records of Howard
County, Maryland, in Liber 14081, folio 294. Additional free, unreserved parking is available in parking areas accessible to the
Building pursuant to the Loop Declaration and Agreement dated December 1, 1970, and recorded among the Land Records aforesaid in
Liber 552, folio 425, as amended, to which the Property is subject. Landlord agrees that during the Term and any Renewal Term,
Landlord shall not agree to any modification to existing parking entitlements that would diminish the parking available to Tenant,
or impose a parking fee on Tenant, its employees or customers. Two (2) designated reserved parking spaces shall be provided for
Tenant’s sole use in the surface parking area near the front entrance to the Building.

 

    	-32-

    	 

    
 

 

34.21.Tenant Signage. Tenant
shall be entitled, at Landlord’s expense, to building-standard suite entry signage and a listing on the lobby directory.
So long as Tenant has not assigned this Lease or sublet all or any part of the Premises to any entity other than Tenant’s
Affiliate, Tenant shall be entitled, at its sole expense, to display one sign on the exterior of the Building above the first floor
window line facing Little Patuxent Parkway in a location designated by Landlord. Such exterior sign shall be consistent with the
existing Business Community signage system, and shall be approved in advance of installation by Landlord as to sign location, materials,
construction, dimensions, colors, and message content. Upon expiration or sooner termination of the Term or if Tenant becomes ineligible
to have the exterior sign, Tenant shall promptly remove the exterior sign at its sole expense. In the event Enterprise Business
Partners’s logo sign on the exterior of the building is removed, then provided (i) Tenant has not Transferred this Lease
to any entity other than Tenant’s Affiliate, (ii) Tenant has not exercised its right to reduce the Rental Area of the Premises,
and (iii) Landlord has not executed a lease with another tenant for at least 63,985 square feet of Rental Area in the Building
within one (1) year after the Enterprise sign is removed, then Tenant shall have a right of first offer for the installation of
a sign consisting only of its logo in the same location as the Enterprise logo sign. Any such sign shall be designed and installed
at Tenant’s expense in accordance with plans and specifications meeting applicable sign criteria and approved in writing
by Landlord and shall be removed by Tenant at its cost upon the termination of this Lease or any earlier date as of which Tenant
is no longer qualified to display such sign pursuant to clause (i) or (ii) above. Tenant acknowledges that Landlord may require
monetary consideration for such prominent sign location. Simultaneously with installation of such sign, Tenant shall, at its cost,
remove the exterior sign permitted by the second sentence of this Section 34.21. Within three (3) months after the Rent Commencement
Date, Landlord will engage an architect/designer to prepare a sketch of a prominent location within the Building first floor lobby
where Tenant’s corporate identity signage can be visibly displayed to all Building visitors, any such signage to meet building
standard sign criteria and be fabricated and installed at Tenant’s cost.

 

34.22. Antennae/Equipment
License Agreement. Tenant, at its sole cost and expense, shall have the right to install and operate a satellite antenna or
dish and related equipment (the “Equipment”) necessary to transmit and receive signals from and to the Premises. The
Equipment shall be placed on the roof of the Building by Landlord at Tenant’s expense and shall be subject to the further
provisions of a certain Satellite Antennae/Dish Equipment License Agreement, the form of which is attached hereto as Schedule D.
In the event Tenant exercises the right granted herein, Landlord and Tenant agree to execute said License Agreement.

 

    	-33-

    	 

    
 

 

34.23 Building Improvements.

The Landlord will complete
the following Base Building Improvements at its expense prior to the Rental Commencement Date:

 

		·	Modify the Building elevators to accept
a card key for Tenant control of floor access ;

		·	Base Building HVAC system repairs and
as-needed replacements;

		·	On the second and fifth floors, improve
existing restrooms and/or construct new restrooms to comply with ADA regulations, including regulations for wheelchair and other
handicapped access. Landlord shall provide Tenant with an allowance of $5,000.00, to partially defray the cost of constructing
an ADA compliant restroom on the third floor.

		·	Replace the carpet and fabric wall panels
in the passenger elevators; Landlord will make a reasonable attempt to address the elevator finishes at the time of, but not necessarily
coincident with, the Tenant Improvement work on the respective floors of the Building

 

 

 

 

SIGNATURES ON FOLLOWING
PAGE

 

 

 

    	-34-

    	 

    

 

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

 

 

	 	LANDLORD: 

    70 CC, LLC
	 	 
	 	By: 	
	 	 	Authorized
    Officer

 

	 	GP STRATEGIES CORPORATION
	 	 
	 	By: 	/s/ Scott N. Greenberg
	 	Name:

    Title:	Scott N. Greenberg
Chief Executive
    Officer

 

If Tenant is a CORPORATION,
the authorized officers shall sign on behalf of the corporation and indicate the capacity in which they are signing. This
Lease must be executed by the president or vice president and attested by the secretary or assistant secretary, unless
the bylaws or a resolution of the board of directors provides otherwise. In that case, the bylaws or a certified copy of the resolution
shall be attached to this Lease. The appropriate corporate seal must be affixed to the Lease.

 

 

    	-35-EMPLOYMENT
AGREEMENT

 

This
Employment Agreement ("Agreement") is made and entered into effective as of March 4, 2013 by and between
REVEN HOUSING REIT, INC., a Colorado corporation (the "Company"), and CHAD CARPENTER (hereinafter, the
"Executive").

 

 

W
I T N E S S E T H:

 

WHEREAS,
commencing on July 2, 2012, the Executive became employed as the Chief Executive Officer of the Company;

 

WHEREAS,
the Executive possesses intimate knowledge of the business and affairs of the Company, its policies, methods and personnel;

 

WHEREAS,
the Board of Directors of the Company (the “Board”) recognizes that the Executive has contributed to
the growth and success of the Company, and desires to assure the Company of the Executive's continued employment and to compensate
him therefor;

 

WHEREAS,
the Board has determined that this Agreement will reinforce and encourage the Executive's continued attention and dedication to
the Company; and

 

WHEREAS,
the Executive is willing to make his services available to the Company and on the terms and conditions hereinafter set forth.

 

NOW,
THEREFORE, in consideration of the premises and mutual covenants set forth herein, and for other good and valuable consideration,
the receipt and sufficiency of which are mutually acknowledged, the Company and the Executive hereby agree as follows:

 

1.Definitions.
When used in this Agreement, the following terms shall have the following meanings:

 

(a)“Accrued
Obligations” means:

 

(i)all
accrued but unpaid Base Salary through the end of the Term of Employment;

 

(ii)any
unpaid or unreimbursed expenses incurred in accordance with Company policy, including amounts due under Section 5(a) hereof, to
the extent incurred during the Term of Employment;

 

(iii)any
accrued but unpaid benefits provided under the Company’s employee benefit plans, subject to and in accordance with the terms
of those plans;

 

(iv)any
unpaid Bonus in respect to any completed fiscal year that has ended on or prior to the end of the Term of Employment; and

 

(v)rights
to indemnification by virtue of the Executive’s position as an officer or director of the Company or its subsidiaries and
the benefits under any directors’ and officers’ liability insurance policy maintained by the Company, in accordance
with its terms thereof.

 

    	 

    	 

    
 

 

(b)“Affiliate”
means any entity that controls, is controlled by, or is under common control with, the Company. For the purposes of this definition,
the terms “controls,” “is controlled by” or “under common control with” mean possession, directly
or indirectly, of the power to direct or cause the direction of the management or policies of a Person whether through the ownership
of voting securities, by contract or otherwise. In the event that any entity is deemed to be an Affiliate under this definition,
such entity shall not be deemed to be an Affiliate for any other purposes other then as set forth in this Agreement.

 

(c)“Base
Salary” means the salary provided for in Section 4(a) hereof or any increased salary granted to Executive pursuant
to Section 4(a) hereof.

 

(d)“Beneficial
Ownership” shall have the meaning ascribed to such term in Rule 13d-3 promulgated under the Securities Exchange
Act of 1934, as amended.

 

(e)“Bonus”
means any bonus payable to the Executive pursuant to Section 4(b) hereof.

 

(f)“Bonus
Period” means the each period for which a Bonus is payable. Unless otherwise specified by the Board, the Bonus Period
shall be the calendar year

 

(g)“Cause”
means:

 

(i)a
conviction of the Executive of a felony,; or

 

(ii)willful
misconduct or gross negligence by the Executive resulting, in either case, in material economic harm to the Company of any of
Related Entities; or

 

(iii)fraud,
embezzlement, theft or dishonesty of a material nature by the Executive against the Company or any Related Entity, or a willful
disclosure of material trade secrets or other material confidential information related to the business of the Company resulting,
in any case, in material economic harm to the Company or any Related Entity; or

 

(iv)a
willful material breach by the Executive of this Agreement resulting in material economic harm to the Company of any of Related
Entities.

 

An act or failure
to act shall not be “willful” if (i) done by the Executive in good faith or (ii) the Executive reasonably believed
that such action or inaction was in the best interests of the Company and the Related Entities.

 

(h)“Change
in Control” means the occurrence of any of the following:

 

(i)any
one Person, or more than one Person acting as a group, acquires ownership of equity securities of the Company that, together with
equity securities held by such Person or group, constitutes more than forty percent (40%) of the total fair market value or total
voting power of the then outstanding equity securities of the Company entitled to vote in the election of directors of the Company;
provided, however, that if any one Person, or more than one Person acting as a group, is considered to own more than forty percent
(40%) of the total fair market value or total voting power of the then outstanding equity securities of the Company, the acquisition
of additional equity securities by the same Person or Persons will not be considered a Change in Control under this Plan;

 

    	2

    	 

    
 

 

(ii)during
any period of two (2) consecutive years (not including any period prior to the Commencement Date) individuals who constitute the
Board on the Commencement Date (the “Incumbent Board”) cease for any reason to constitute at least a
majority of the Board; provided, however, that any individual becoming a director subsequent to the Commencement Date whose election,
or nomination for election by the Company’s shareholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board shall be considered as though such individual were a member of the Incumbent Board, but excluding,
for this purpose, any such individual whose initial assumption of office occurs as a result of an actual or threatened election
contest with respect to the election or removal of directors or other actual or threatened solicitation of proxies or consents
by or on behalf of a Person other than the Board; or

 

(iii)consummation
of a reorganization, merger, statutory share exchange or consolidation or similar corporate transaction involving the Company
or any of its subsidiaries, a sale or other disposition of all or substantially all of the assets of the Company, or the acquisition
of assets or stock of another entity by the Company or any of its subsidiaries (each a “Business Combination”),
in each case, unless, following such Business Combination, all or substantially all of the Persons who were the Beneficial Owners,
respectively, of the outstanding Common Stock and outstanding voting securities of the Company immediately prior to such Business
Combination beneficially own, directly or indirectly, more than fifty percent (50%) of the then outstanding shares of common stock
and the combined voting power of the then outstanding voting securities entitled to vote generally in the election of directors,
as the case may be, of the corporation resulting from such Business Combination (including, without limitation, a corporation
which as a result of such transaction owns the Company or all or substantially all of the Company’s assets either directly
or through one or more subsidiaries) in substantially the same proportions as their ownership, immediately prior to such Business
Combination of the outstanding Common Stock and outstanding voting securities of the Company, as the case may be.

 

Notwithstanding
the foregoing, a Change of Control shall not be deemed to have occurred for purposes of this Agreement as the result of the issuance
by the Company or any of its subsidiaries of any equity securities or securities convertible into equity securities for cash or
property so long as such securities are issued by the Company other than in connection with a transaction that would result in
a Change of Control pursuant to this Agreement.

 

(i)“COBRA”
means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended from time to time.

 

(j)“Code”
means the Internal Revenue Code of 1986, as amended.

 

(k)“Commencement
Date” means March 4, 2013.

 

    	3

    	 

    

 

(l)“Common
Stock” means the common stock of the Company, par value $.001 per share.

 

(m)
“Confidential Information” means all trade secrets and information disclosed to the Executive or known
by the Executive as a consequence of or through the unique position of his employment with the Company or any of its Affiliates
(including information conceived, originated, discovered or developed by the Executive and information acquired by the Company
or any of its Affiliates from others) prior to or after the date hereof, and not generally or publicly known (other than as a
result of unauthorized disclosure by the Executive), about the Company or any or its Affiliates or its business. Confidential
Information includes, but is not limited to, inventions, trade secrets, works of authorship, developmental or experimental work,
know-how, data, financial information and forecasts, product plans, marketing plans and strategies, customer lists and confidential
or proprietary contractual obligations and terms thereof, relating to the Company or any Affiliates, including, but not limited
to, financial statements, financial projections, business plans, listings and confidential or proprietary contractual obligations
and terms thereof, and components of intellectual property of the Company or any Affiliate.

 

(n)“Disability”
means the inability of the Executive to engage in any substantial gainful activity by reason of any medically determinable physical
or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than
12 months.

 

(o)“Equity
Awards” means any stock options, restricted stock, restricted stock units, stock appreciation rights, phantom stock
or other equity based awards granted by the Company or any of its Affiliates to the Executive.

 

(p)“Expiration
Date” means the date on which the Term of Employment, including any renewals thereof under Section 3(b), shall expire.

 

(q)“Good
Reason” means the occurrence of any of the following: (i) a material diminution in the Executive’s base compensation;
(ii) a material diminution in the Executive’s authority, duties, or responsibilities; (iii) a material diminution in the
authority, duties, or responsibilities of the supervisor to whom the Executive is required to report, including a requirement
that the Executive report to a corporate officer or Executive instead of reporting directly to the Board; (iv) a material change
in the geographic location at which the Executive must perform the services under this Agreement; or (v) any other action or inaction
that constitutes a material breach by the Company of this Agreement. For purposes of this Agreement, Good Reason shall not be
deemed to exist unless the Executive’s termination of employment for Good Reason occurs within one hundred and eighty (180)
days following the initial existence of one of the conditions specified in clauses (i) through (v) above, the Executive provides
the Company with written notice of the existence of such condition within sixty (60) days after the initial existence of the condition,
and the Company fails to remedy the condition within thirty (30) days after its receipt of such notice.

 

(r)“Group”
shall have the meaning ascribed to such term in Section 13(d) of the Securities Exchange Act of 1934.

 

    	4

    	 

    
 

 

(s)“Person”
shall have the meaning ascribed to such term in Section 3(a)(9) of the Securities Exchange Act of 1934 and used in Sections 13(d)
and 14(d) thereof.

 

(t)“Restricted
Period” shall be the Term of Employment and the two (2) year period immediately following termination of the Term
of Employment.

 

(u)“Severance
Amount” shall mean an amount equal to two (2) times the sum of (A) the Executive’s annual Base Salary as in
effect immediately prior to the Termination Date and (B) the Executive’s Target Bonus for the Bonus Period in which termination
occurs.

 

(v)“Severance
Term” means the two (2) year period following the date on which the Term of Employment ends.

 

(w)“Target
Bonus” means the target annual incentive award opportunity for the applicable Bonus Period.

 

(x)“Term
of Employment” means the period during which the Executive shall be employed by the Company pursuant to the terms
of this Agreement.

 

(y)“Termination
Date” means the date on which the Term of Employment ends.

 

(z)“Termination
Payment” means an amount equal to the greater of one percent (1%) of the equity value of the Company upon written
notice to the Executive of such termination or $2,000,000.00, less any gross amounts received and/or realized by the Executive
in respect of any Equity Awards that are granted to him during the Term of Employment including, without limitation, any amounts
received as a result of cashing out of stock options under Section 6(i)(vi) of this Agreement.

 

(aa)“Termination
Year Bonus” means Bonus payable under Section 4(b) hereof for the Bonus Period in which the Executive’s employment
with the Company terminates for any reason.

 

2.Employment;
Board Member.

 

(a)Employment
and Term. The Company hereby agrees to employ the Executive and the Executive hereby agrees to enter into the employ of
the Company during the Term of Employment on the terms and conditions set forth herein.

 

(b)Duties
of Executive. During the Term of Employment, the Executive shall be employed and serve as the Chief Executive Officer
of the Company (the “CEO”), reporting directly to the Company’s Board of Directors with such authority,
duties and responsibilities as are commensurate with such position. The Executive shall faithfully and diligently perform all
services as may be assigned to him by the Board (provided that, such services shall not materially differ from the services currently
provided by the Executive), and shall exercise such power and authority as may from time to time be delegated to him by the Board.
The Executive shall devote his full business time, attention and efforts to the performance of his duties under this Agreement,
render such services to the best of his ability, and use his reasonable best efforts to promote the interests of the Company.
The Executive shall not engage in any other business relating to acquiring rented single family or multi-family housing, and portfolios
in connection therewith, during the Term of Employment, including, without limitation, any activity that (i) conflicts with the
interests of the Company or its subsidiaries, (ii) interferes with the proper and efficient performance of his duties for the
Company, or (iii) interferes with the exercise of his judgment in the Company’s best interests. Notwithstanding the foregoing
or any other provision of this Agreement, it shall not be a breach or violation of this Agreement for the Executive to (x) serve
on corporate, civic, educational or charitable boards or committees, (y) deliver lectures, fulfill speaking engagements or teach
at educational institutions, or (z) manage personal investments, continue Managing the Western Residential Opportunity Fund and
operate Reven Capital and its subsidiaries, so long as such activities do not significantly interfere with or significantly detract
from the performance of the Executive’s responsibilities to the Company in accordance with this Agreement.

 

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(c)Board
Position. During the Term of Employment, the Executive will serve as a member of the Board and shall serve as the Chairman
of the Board.

 

3.Term.

(a)Initial
Term. The initial Term of Employment under this Agreement, and the employment
of the Executive hereunder, shall commence on the Commencement Date and shall expire on the fifth (5th) anniversary
of the Commencement Date, unless sooner terminated in accordance with Section 6 hereof (the “Initial Term”).

 

b)Renewal
Terms. At the end of the Initial Term, the Term of Employment automatically shall renew for successive two (2) year terms
(subject to earlier termination as provided in Section 6 hereof), unless the Company or the Executive delivers written notice
to the other at least three (3) months prior to the Expiration Date of its or his election not to renew the Term of Employment.

 

4.Compensation.

 

(a)Base
Salary. Effective as of the date on which the Company has received at least ten million ($10,000,000) of capital, net
of taxes and expenses, the Executive shall begin receiving a Base Salary at the annual rate of $240,000 during the
Term of Employment, with such Base Salary payable in installments consistent with the Company's normal payroll schedule, subject
to applicable withholding and other taxes. The Base Salary shall be reviewed, at least annually, for merit increases and may,
by action and in the discretion of the Compensation Committee of the Board, be increased at any time or from time to time, but
may not be decreased from the then current Base Salary. In addition, on each anniversary of the Commencement Date of this Agreement,
the Compensation Committee shall undertake a compensation review of comparable public companies in order to determine the amount
of any such increases to the Executive’s Base Salary based on competitive compensation of CEOs at such comparable public
companies, which amount should be consistent with at least the fiftieth (50%) percentile of such comparable compensation.

 

 

    	6

    	 

    
 

 

 

(b)Bonuses.

 

(i)During
the Term of Employment, the Executive shall participate in the Company’s annual incentive compensation plan, program and/or
arrangements applicable to senior-level executives as established and modified from time to time by the Compensation Committee
of the Board in its sole discretion. During the Term of Employment, the Executive shall have a threshold bonus opportunity under
such plan or program equal to 50% of his current Base Salary, a target bonus opportunity (the “Target Bonus”)
under such plan or program equal to 100% of his current Base Salary, and a maximum bonus under such plan or program equal to 200%
of his current Base Salary, in each case based on satisfaction of performance criteria to be established by the Compensation Committee
of the Board within the first 3 months of each fiscal year of the Company that begins during the Term of Employment. Payment of
annual incentive compensation awards shall be made in the same manner and at the same time that other senior-level executives
receive their annual incentive compensation awards.

 

(ii)Any
Bonus, including without limitation any Termination Year Bonus payable under Section 6 hereof, earned for any calendar year shall
be paid in the immediately following calendar year, as soon as practicable after the audited financial statements for the Company
for the year for which the Bonus is earned have been released and the Committee has certified that the Bonus has been earned.

 

(iii)For
the bonus period in which the Executive’s employment with the Company terminates for any reason other than by the Company
for Cause under Section 6(b) hereof, the Company shall pay the Executive a pro rata portion (based upon the period ending on the
date on which the Executive’s employment with the Company terminates) of the bonus otherwise payable under Section 4(b)(1)
for the bonus period in which such termination of employment occurs; provided, however, that (A) the bonus period shall be deemed
to end on the last day of the fiscal quarter of the Company in which the Executive’s employment so terminates, and (B) the
business criteria used to determine the bonus for this short bonus period shall be annualized and shall be determined based upon
unaudited financial information prepared in accordance with generally accepted accounting principles, applied consistently with
prior periods, and reviewed and approved by the Compensation Committee of the Board..

 

(iv)The
Executive shall receive such additional bonuses, if any, as the Compensation Committee may in its sole and absolute discretion
determine.

 

5.Expense
Reimbursement and Other Benefits.

 

(a)Reimbursement
of Expenses. Upon the submission of proper substantiation by the Executive, and subject to such rules and guidelines as
the Company may from time to time adopt with respect to the reimbursement of expenses of executive personnel, the Company shall
reimburse the Executive for all reasonable expenses actually paid or incurred by the Executive during the Term of Employment in
the course of and pursuant to the business of the Company. The Executive shall account to the Company in writing for all expenses
for which reimbursement is sought and shall supply to the Company copies of all relevant invoices, receipts or other evidence
reasonably requested by the Company. In addition, the Company acknowledges that certain expenses have been incurred for due diligence
and costs associated with the acquisition, start up, operations and investments including due diligence costs, deposits and capital
to close investments for the benefit of the Company, as well as legal expenses associated in the drafting and negotiation of this
Agreement (collectively, the “Start Up Expenses”). The Company has reimbursed the Executive for those
actual expenses incurred as a result of the previous sentence. In addition, if any additional Start Up Expenses are incurred by
the Executive during the Term of Employment, the Company agrees to reimburse the Executive for such actual expenses incurred within
thirty (30) days of the date on which the Executive submits copies of all relevant invoices, receipts or other evidence reasonably
requested by the Company.

 

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(b)Compensation/Benefit
Programs. During the Term of Employment, the Executive shall be entitled to participate in all directors & officers,
medical, dental, hospitalization, accidental death and dismemberment, disability, travel and life insurance plans (collectively,
the “Welfare Plans”), and any and all other plans as are presently and hereinafter offered by the Company
to its executive personnel, including savings, pension, profit-sharing and deferred compensation plans, subject to the general
eligibility and participation provisions set forth in such plans. The Company shall pay for the premiums on behalf of the Executive
with respect to his participation in the Company’s Welfare Plans. 

 

(c)Working
Facilities. During the Term of Employment, the Company shall furnish the Executive with an office, secretarial help and
such other facilities and services suitable to his position and adequate for the performance of his duties hereunder.

 

(d)Equity
Awards. During the Term of Employment, the Executive shall be eligible to be granted Equity Awards under (and therefore
subject to all terms and conditions of) the Reven Housing REIT, Inc. 2012 Incentive Compensation Plan, as may be amended from
time to time (the “Equity Plan”) or such other plans or programs as the Company may from time to time
adopt, and subject to all rules of regulation of the Securities and Exchange Commission applicable thereto. The number and type
of Equity Awards, and the terms and conditions thereof, shall be determined by the Compensation Committee of the Board, in its
discretion and pursuant to the Equity Plan or the plan or arrangement pursuant to which they are granted.

 

(e)Other
Benefits. The Executive shall be entitled to four (4) weeks of paid vacation each calendar year during the Term of Employment,
to be taken at such times as the Executive and the Company shall mutually determine and provided that no vacation time shall significantly
interfere with the duties required to be rendered by the Executive hereunder. Any vacation time not taken by Executive during
any calendar year may be carried forward into the succeeding calendar years, provided, however, that in no event shall the amount
of vacation accrued be more than eight (8) weeks during any calendar year. The Executive shall receive such additional benefits,
if any, as the Board shall from time to time determine.

 

6.Termination.

 

(a)General.
The Term of Employment shall terminate upon the earliest to occur of (i) the Executive’s death, (ii) a termination by the
Company by reason of the Executive’s Disability, (iii) a termination by the Company with or without Cause, or (iv) a
termination by Executive with or without Good Reason. Upon any termination of Executive’s employment for any reason, except
as may otherwise be requested by the Company in writing and agreed upon in writing by Executive, the Executive shall resign from
any and all directorships, committee memberships or any other positions Executive holds with the Company or any of its subsidiaries.
In no event shall the Executive, in his position as a member of the Board, have a vote on any determination to be made on behalf
of the Company to terminate his employment.

 

    	8

    	 

    
 

 

(b)Termination
By Company for Cause. The Company shall at all times have the right, upon written notice to the Executive, to terminate
the Term of Employment, for Cause. In no event shall a termination of the Executive’s employment for Cause occur unless
the Company gives written notice to the Executive in accordance with this Agreement stating with reasonable specificity the events
or actions that constitute Cause and providing the Executive with an opportunity to cure (if curable) within a reasonable period
of time. Cause shall in no event be deemed to exist except upon a decision made by the Board, at a meeting, duly called and noticed,
to which the Executive (and the Executive’s counsel) shall be invited upon proper notice. For purposes of this Section 6(b),
any good faith determination by the Board of Cause shall be binding and conclusive on all interested parties. In the event that
the Term of Employment is terminated by the Company for Cause, Executive shall be entitled only to the Accrued Obligations.

 

(c)Disability.
The Company shall have the option, in accordance with applicable law, to terminate the Term of Employment upon written notice
to the Executive, at any time during which the Executive is suffering from a Disability. In the event that the Term of Employment
is terminated due to the Executive’s Disability, the Executive shall be entitled to:

 

(i)the
Accrued Obligations, payable as and when those amounts would have been payable had the Term of Employment not ended; and

 

(ii)the
Termination Year Bonus, payable as and when those amounts would have been payable had the Term of Employment not ended.

 

(d)Death.
In the event that the Term of Employment is terminated due to the Executive’s death, the Executive shall be entitled to:

 

(i)the
Accrued Obligations, payable as and when those amounts would have been payable had the Term of Employment not ended; and

 

(ii)the
Termination Year Bonus, payable as and when those amounts would have been payable had the Term of Employment not ended.

 

(e)Termination
Without Cause. The Company may terminate the Term of Employment at any time without Cause, by written notice to the Executive
not less than sixty (60) days prior to the effective date of such termination. In the event that the Term of Employment is terminated
by the Company without Cause (other than due to the Executive’s death or Disability) the Executive shall be entitled to:

 

(i)The
Accrued Obligations, payable as and when those amounts would have been payable had the Term of Employment not ended;

 

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(ii)the
Termination Year Bonus, payable as and when those amounts would have been payable had the Term of Employment not ended;

 

(iii)The
Severance Amount, payable on a pro-rata basis (determined by dividing the Severance Amount by the number of complete pay periods
that end within the Severance Term) over the Severance Term at the same time as the Base Salary would have been payable if the
Executive’s employment had not terminated;

 

(iv)A
lump-sum payment equal to the Termination Payment, payable on the thirtieth (30th) day immediately following the Termination
Date; and

 

(v)Continuation
of the health benefits provided to Executive and his covered dependents under the Company health plans as in effect from time
to time after the date of such termination at the same cost applicable to active employees until the earlier of: (A) the eighteen
(18) month anniversary of the Termination Date, or (B) the date the Executive commences employment with any Person and, thus,
is eligible for health insurance benefits; provided, however, that as a condition of continuation of such benefits, the Company
may require the Executive to elect to continue his health insurance pursuant to COBRA.

 

(f)Termination
by Executive for Good Reason. The Executive may terminate the Term of Employment for Good Reason upon written notice to
the Company if all of the requirements for a Good Reason set forth in Section 1(q) hereof have been met, and the Executive shall
be entitled to the same payments and benefits as provided in Section 6(e) above for a termination without Cause.

 

(g)Termination
by Executive Without Good Reason. The Executive may terminate his employment without Good Reason by providing the Company
sixty (60) days’ written notice of such termination. In the event of a termination of employment by the Executive under
this Section 6(g), the Executive shall be entitled only to the Accrued Obligations. In the event of termination of the Executive’s
employment under this Section 6(g), the Company may, in its sole and absolute discretion, by written notice, accelerate such date
of termination and still have it treated as a termination without Good Reason. 

 

(h)Termination
Upon Expiration Date. In the event that Executive’s employment with the Company terminates upon the expiration of
the Term of Employment, the Executive shall be entitled to the Accrued Obligations. In addition, if the Term of Employment terminates
either because the Company refused to extend the Term of Employment without Cause (and other than by reason of the Executive’s
Disability), the Executive refused to extend the Term for Good Reason,] the Executive shall be entitled to the same payments and
benefits as provided in Section 6(e) above for a termination without Cause.

 

(i)Change
in Control of the Company. If the Executive’s employment is terminated by the Company without Cause or by the Executive
for Good Reason during the eighteen (18) month period immediately following the Change in Control, then in lieu of any amounts
otherwise payable under 6(e), or 6(f) hereof, the Executive shall be entitled to:

 

(i)The
Accrued Obligations, payable as and when those amounts would have been payable had the Term of Employment not ended;

 

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(ii)the
Termination Year Bonus, payable as and when those amounts would have been payable had the Term of Employment not ended;

 

(iii)A
lump-sum payment equal to the Severance Amount, payable on the thirtieth (30th) day immediately following the Termination
Date;

 

(iv)A
lump-sum payment equal to the Termination Payment, payable on the thirtieth (30th) day immediately following the Termination
Date;

 

(v)Continuation
of the health benefits provided to Executive and his covered dependants under the Company health plans as in effect from time
to time after the date of such termination at the same cost applicable to active employees until the earlier of: (A) the eighteen
(18) month anniversary of the Termination Date, or (B) the date Executive commences employment with any Person and, thus, is eligible
for health insurance benefits; provided, however, that as a condition of continuation of such benefits, the Company may require
the Executive to elect to continue his health insurance pursuant to COBRA; and

 

(vi)All
stock options previously granted to the Executive that remain outstanding immediately prior to the effective date of a Change
in Control shall become fully vested and exercisable upon the occurrence of such Change in Control and shall remain exercisable
for a period of two (2) years thereafter regardless of whether Executive continues to be employed by the Company. If, upon the
Change in Control, the Company is not a publicly traded corporation, the stock options shall be cancelled and, in exchange, the
Company shall pay to the Executive, in full settlement of all rights with respect to the stock options, an aggregate amount in
cash equal to the fair market value of a share of the Company’s Common Stock on the date the Change in Control minus the
per share exercise price for the stock options, times the number of shares to which the stock options have not been exercised
at the time of the Change in Control. Such cash payment shall be made within thirty (30) days of the effective date of the Change
in Control.

 

(j)Release.
Any payments due to Executive under this Article 6 (other than the Accrued Obligations or on any payments due on account of the
Executive’s death) shall be conditioned upon Executive’s execution of a general release of claims in the form attached
hereto as Exhibit A (subject to such modifications as the Company reasonably may request) that becomes irrevocable within thirty
(30) days of the Termination Date. If the foregoing release is executed and delivered and no longer subject to revocation as provided
in the preceding sentence, then the following shall apply:

 

(i)To
the extent any such cash payment or continuing benefit to be provided is not “deferred compensation” for purposes
of Section 409A, then such payment or benefit shall commence upon the first scheduled payment date immediately after the date
the release is executed and no longer subject to revocation (the “Release Effective Date”). The first
such cash payment shall include payment of all amounts that otherwise would have been due prior to the Release Effective Date
under the terms of this Agreement had such payments commenced immediately upon the Termination Date, and any payments made thereafter
shall continue as provided herein. The delayed benefits shall in any event expire at the time such benefits would have expired
had such benefits commenced immediately following the Executive’s Date.

 

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(ii)To
the extent any such cash payment or continuing benefit to be provided is “deferred compensation” for purposes of Section
409A of the Code, then such payments or benefits shall be made or commence upon the sixtieth (60) day following the Termination
Date. The first such cash payment shall include payment of all amounts that otherwise would have been due prior thereto under
the terms of this Agreement had such payments commenced immediately upon the Termination Date, and any payments made thereafter
shall continue as provided herein. The delayed benefits shall in any event expire at the time such benefits would have expired
had such benefits commenced immediately following the Termination Date.

 

The
Company shall provide that Executive may continue to participate in any benefits delayed pursuant to this Section 6(j) during
the period of such delay, provided that the Executive shall bear the full cost of such benefits during such delay period. Upon
the date such benefits would otherwise commence pursuant to this Section 6(j), the Company may reimburse the Executive the Company’s
share of the cost of such benefits, to the extent that such costs otherwise would have been paid by the Company or to the extent
that such benefits otherwise would have been provided by the Company at no cost to the Executive, in each case had such benefits
commenced immediately upon the Executive’s Termination Date. Any remaining benefits shall be reimbursed or provided by the
Company in accordance with the schedule and procedures specified herein.

 

(k)Cooperation.
Following the Term of Employment, the Executive shall give his assistance and cooperation willingly, upon reasonable advance notice
with due consideration for his other business or personal commitments, in any matter relating to his position with the Company,
or his expertise or experience as the Company may reasonably request, including his attendance and truthful testimony where deemed
appropriate by the Company, with respect to any investigation or the Company’s defense or prosecution of any existing or
future claims or litigations or other proceedings relating to matters in which he was involved or potentially had knowledge by
virtue of his employment with the Company. In no event shall his cooperation materially interfere with his services for a subsequent
employer or other similar service recipient. To the extent permitted by law, the Company agrees that (i) it shall promptly reimburse
the Executive for his reasonable and documented expenses in connection with his rendering assistance and/or cooperation under
this Section 6(l) upon his presentation of documentation for such expenses and (ii) the Executive shall be reasonably compensated
for any continued material services as required under this Section 6(l).

 

(l)Return
of Company Property. Following the Termination Date, the Executive or his personal representative shall return all Company
property in his possession, including but not limited to all desk top computer equipment (hardware and software), telephones,
facsimile machines, palm pilots and other communication devices, credit cards, office keys, security access cards, badges, identification
cards and all copies (including drafts) of any documentation or information (however stored) relating to the business of the Company,
its customers and clients or its prospective customers and clients (provided that the Executive may retain any cell or smart phone,
laptop or iPad including all copies the addresses contained in his rolodex, palm pilot, PDA or similar device).

 

 

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7.Restrictive
Covenants.

 

(a)Nonsolicitation
of Employees and Certain Other Third Parties. At all times during the Restricted Period, the Executive shall not, directly
or indirectly, for himself or for any other Person, firm, corporation, partnership, association or other entity (i) employ
or attempt to employ or enter into any contractual arrangement with any employee, consultant or independent contractor performing
services for the Company, or any Affiliate, unless such employee, consultant or independent contractor, has not been employed
or engaged by the Company for a period in excess of six (6) months, and/or (ii) call on, solicit, or engage in business with,
any of the actual or targeted prospective customers or clients of the Company or any Affiliate on behalf of any Person in connection
with any Competitive Activity, nor shall the Executive make known the names and addresses of such actual or targeted prospective
customers or clients, or any information relating in any manner to the trade or business relationships of the Company or any Affiliates
with such customers or clients, other than in connection with the performance of the Executive’s duties under this Agreement,
and/or (iii) persuade or encourage or attempt to persuade or encourage any Persons with whom the Company or any Affiliate does
business or has some business relationship to cease doing business or to terminate its business relationship with the Company
or any Affiliate or to engage in any Competitive Activity on its own or with any competitor of the Company or any Affiliate.

 

(b)Confidential
Information. The Executive shall not at any time divulge, communicate, use to the detriment of the Company or any Affiliate
or for the benefit of any other Person or Persons, or misuse in any way, any Confidential Information pertaining to the business
of the Company. Any Confidential Information or data now or hereafter acquired by the Executive with respect to the business of
the Company or any Affiliate (which shall include, but not be limited to, information concerning the Company's or any Affiliate’s
financial condition, prospects, technology, customers, suppliers, sources of leads and methods of doing business) shall be deemed
a valuable, special and unique asset of the Company and its Affiliates that is received by the Executive in confidence
and as a fiduciary, and the Executive shall remain a fiduciary to the Company and its Affiliates with respect to
all of such information. Notwithstanding the foregoing, nothing herein shall be deemed to restrict the Executive from disclosing
Confidential Information as required to perform his duties under this Agreement or to the extent required by law. If any Person
or authority makes a demand on the Executive purporting to legally compel him to divulge any Confidential Information, the Executive
immediately shall give notice of the demand to the Company so that the Company may first assess whether to challenge the demand
prior to the Executive’s divulging of such Confidential Information. The Executive shall not divulge such Confidential Information
until the Company either has concluded not to challenge the demand, or has exhausted its challenge, including appeals, if any.
The Executive shall deliver promptly to the Company, upon termination of his employment with the Company, all memoranda, notes,
records, reports, manuals, drawings, designs, computer files in any media and other documents (and all copies thereof) containing
such Confidential Information.

 

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(c)Ownership
of Developments. All processes, concepts, techniques, inventions and works of authorship, including new contributions,
improvements, formats, packages, programs, systems, machines, compositions of matter manufactured, developments, applications
and discoveries, and all copyrights, patents, trade secrets, or other intellectual property rights associated therewith conceived,
invented, made, developed or created by the Executive during the Term of Employment either during the course of performing work
for the Company or its Affiliates, or their clients, or which are related in any manner to the business (commercial or experimental)
of the Company or its Affiliates or their clients (collectively, the “Work Product”) shall belong exclusively
to the Company and its Affiliates and shall, to the extent possible, be considered a work made by the Executive for hire for the
Company and its Affiliates within the meaning of Title 17 of the United States Code. To the extent the Work Product may not be
considered work made by the Executive for hire for the Company and its Affiliates, the Executive agrees to assign, and automatically
assign at the time of creation of the Work Product, without any requirement of further consideration, any right, title, or interest
the Executive may have in such Work Product. Upon the request of the Company, the Executive shall take such further actions, including
execution and delivery of instruments of conveyance, as may be appropriate to give full and proper effect to such assignment.
The Executive shall further: (i) promptly disclose the Work Product to the Company; (ii) assign to the Company or its assignee,
without additional compensation, all patent or other rights to such Work Product for the United States and foreign countries;
(iii) sign all papers necessary to carry out the foregoing; and (iv) give testimony in support of his inventions, all at the sole
cost and expense of the Company. In addition, the Executive agrees that all Work Product which the Executive makes,
conceives, reduces to practice or develops (in whole or in part, either alone or jointly with others) during his employment
shall be the sole property of the Company to the maximum extent permitted by Section 2870 of the California Labor Code, and hereby
assigns such Work Product and all rights therein to the Company.  No assignment in this Agreement shall extend to inventions,
the assignment of which is prohibited by Labor Code Section 2870.  The Company shall be the sole owner of all rights in connection
therewith.  The Executive has reviewed the notification on Exhibit B and agree that his signature acknowledges
receipt of the notification.

  

(d)Books
and Records. All books, records, and accounts relating in any manner to the customers or clients of the Company or its
Affiliates, whether prepared by the Executive or otherwise coming into the Executive's possession, shall be the exclusive property
of the Company and its Affiliates and shall be returned immediately to the Company on termination of the Executive's employment
hereunder or on the Company's request at any time.

 

(e)Acknowledgment
by Executive. The Executive acknowledges and confirms that the restrictive covenants contained in this Section 7 (including
without limitation the length of the term of the provisions of this Section 7) are reasonably necessary to protect the legitimate
business interests of the Company and its Affiliates, and are not overbroad, overlong, or unfair and are not the result of overreaching,
duress or coercion of any kind. The Executive further acknowledges and confirms that the compensation payable to the Executive
under this Agreement is in consideration for the duties and obligations of the Executive hereunder, including the restrictive
covenants contained in this Section 7, and that such compensation is sufficient, fair and reasonable. The Executive further acknowledges
and confirms that his full, uninhibited and faithful observance of each of the covenants contained in this Section 7 will not
cause him any undue hardship, financial or otherwise, and that enforcement of each of the covenants contained herein will not
impair his ability to obtain employment commensurate with his abilities and on terms fully acceptable to him or otherwise to obtain
income required for the comfortable support of him and his family and the satisfaction of the needs of his creditors. The Executive
acknowledges and confirms that his special knowledge of the business of the Company and its Affiliates is such as would cause
the Company and its Affiliates serious injury or loss if he were to use such ability and knowledge to the benefit of a competitor
or were to compete with the Company or its Affiliates in violation of the terms of this Section 7. The Executive further acknowledges
that the restrictions contained in this Section 7 are intended to be, and shall be, for the benefit of and shall be enforceable
by, the Company’s successors and assigns. The Executive expressly agrees that upon any breach or violation of the provisions
of this Section 7, the Company shall be entitled, as a matter of right, in addition to any other rights or remedies it may have,
to (i) temporary and/or permanent injunctive relief in any court of competent jurisdiction as described in Section 7(i) hereof,
and (ii) such damages as are provided at law or in equity. The existence of any claim or cause of action against the Company or
its Affiliates, whether predicated upon this Agreement or otherwise, shall not constitute a defense to the enforcement of the
restrictions contained in this Section 7.

 

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(f)Reformation
by Court. In the event that a court of competent jurisdiction shall determine that any provision of this Article 7 is
invalid or more restrictive than permitted under the governing law of such jurisdiction, then only as to enforcement of this Article
7 within the jurisdiction of such court, such provision shall be interpreted or reformed and enforced as if it provided for the
maximum restriction permitted under such governing law.

 

(g)Extension
of Time. If the Executive shall be in violation of any provision of this Section 7, then each time limitation set forth
in this Section 7 shall be extended for a period of time equal to the period of time during which such violation or violations
occur. If the Company or any its Affiliate seeks injunctive relief from such violation in any court, then the covenants set forth
in this Section 7 shall be extended for a period of time equal to the pendency of such proceeding including all appeals by the
Executive.

 

(h)Injunction.
It is recognized and hereby acknowledged by the parties hereto that a breach by the Executive of any of the covenants contained
in Section 7 of this Agreement will cause irreparable harm and damage to the Company, and its Affiliates, the monetary amount
of which may be virtually impossible to ascertain. As a result, the Executive recognizes and hereby acknowledges that the Company
and its Affiliates shall be entitled to an injunction from any court of competent jurisdiction enjoining and restraining any violation
of any or all of the covenants contained in Section 7 of this Agreement by the Executive or any of his affiliates, associates,
partners or agents, either directly or indirectly, and that such right to injunction shall be cumulative and in addition to whatever
other remedies the Company may possess.

  

8.Representations
and Warranties of Executive. The Executive represents and warrants to the Company that:

 

(a)The
Executive’s employment will not conflict with or result in his breach of any agreement to which he is a party or otherwise
may be bound;

 

 

    	15

    	 

    

 

(b)The
Executive has not violated, and in connection with his employment with the Company will not violate, any non-solicitation, non-competition
or other similar covenant or agreement of a prior employer by which he is or may be bound; and

 

(c)In
connection with Executive’s employment with the Company, he will not use any confidential or proprietary information that
he may have obtained in connection with employment with any prior employer.

 

9.Taxes.
Anything in this Agreement to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Executive
or his estate or beneficiaries shall be subject to the withholding of such amounts relating to taxes as the Company may reasonably
determine it should withhold pursuant to any applicable law or regulation. In lieu of withholding such amounts, in whole or in
part, the Company may, in its sole discretion, accept other provisions for payment of taxes and withholding as required by law,
provided it is satisfied that all requirements of law affecting its responsibilities to withhold have been satisfied.

 

10.Assignment.
The Company shall have the right to assign this Agreement and its rights and obligations hereunder in whole, but not in part,
to any corporation or other entity with or into which the Company may hereafter merge or consolidate or to which the Company may
transfer all or substantially all of its assets, if in any such case said corporation or other entity shall by operation of law
or expressly in writing assume all obligations of the Company hereunder as fully as if it had been originally made a party hereto,
but may not otherwise assign this Agreement or its rights and obligations hereunder. The Executive may not assign or transfer
this Agreement or any rights or obligations hereunder.

 

11.Governing
Law. This Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State
of California, without regard to principles of conflict of laws.

 

12.Jurisdiction
and Venue. The parties acknowledge that a substantial portion of the negotiations, anticipated performance and execution
of this Agreement occurred or shall occur in San Diego, California, and that, therefore, without limiting the jurisdiction or
venue of any other federal or state courts, each of the parties irrevocably and unconditionally (i) agrees that any suit, action
or legal proceeding arising out of or relating to this Agreement which is expressly permitted by the terms of this Agreement to
be brought in a court of law, shall be brought in the courts of record of the State of California in San Diego County or the court
of the United States, Southern District of California; (ii) consents to the jurisdiction of each such court in any such suit,
action or proceeding; (iii) waives any objection which it or he may have to the laying of venue of any such suit, action or proceeding
in any of such courts; and (iv) agrees that service of any court papers may be effected on such party by mail, as provided in
this Agreement, or in such other manner as may be provided under applicable laws or court rules in such courts.

 

13.Entire
Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter
hereof and, upon its effectiveness, shall supersede all prior agreements, understandings and arrangements, both oral and written,
between the Executive and the Company (or any of its Affiliates) with respect to such subject matter. This Agreement may not be
modified in any way unless by a written instrument signed by both the Company and the Executive. In the event of any conflict
between the terms of this Agreement, the Equity Plan and other agreements, contracts or understandings involving the Executive,
the terms of this Agreement shall prevail and supersede all other agreements, contracts and understandings.

 

    	16

    	 

    
 

 

14.Survival.
The respective rights and obligations of the parties under Sections 6 through 26 hereunder shall survive any termination of the
Executive’s employment hereunder, and the expiration of the Term of Employment.

 

15.Notices.
All notices required or permitted to be given hereunder shall be in writing and shall be personally delivered by courier, sent
by registered or certified mail, return receipt requested or sent by confirmed facsimile transmission addressed as set forth herein.
Notices personally delivered, sent by facsimile or sent by overnight courier shall be deemed given on the date of delivery and
notices mailed in accordance with the foregoing shall be deemed given upon the earlier of receipt by the addressee, as evidenced
by the return receipt thereof, or three (3) days after deposit in the U.S. mail. Notice shall be sent (i) if to the Company,
addressed to 7911 Herschel Avenue, Suite 201, La Jolla, California 92037, Attention: Chief Financial Officer, and (ii) if
to the Executive, to his address as reflected on the payroll records of the Company, or to such other address as either party
shall request by notice to the other in accordance with this provision.

 

16.Benefits;
Binding Effect. This Agreement shall be for the benefit of and binding upon the parties hereto and their respective heirs,
personal representatives, legal representatives, successors and, where permitted and applicable, assigns, including, without limitation,
any successor to the Company, whether by merger, consolidation, sale of stock, sale of assets or otherwise.

 

17.Right
to Consult with Counsel; No Drafting Party. The Executive acknowledges having read and considered all of the provisions
of this Agreement carefully, and having had the opportunity to consult with counsel of his own choosing, and, given this, the
Executive agrees that the obligations created hereby are not unreasonable. The Executive acknowledges that he has had an opportunity
to negotiate any and all of these provisions and no rule of construction shall be used that would interpret any provision in favor
of or against a party on the basis of who drafted the Agreement.

 

18.Severability.
The invalidity of any one or more of the words, phrases, sentences, clauses, provisions, sections or articles contained in this
Agreement shall not affect the enforceability of the remaining portions of this Agreement or any part thereof, all of which are
inserted conditionally on their being valid in law, and, in the event that any one or more of the words, phrases, sentences, clauses,
provisions, sections or articles contained in this Agreement shall be declared invalid, this Agreement shall be construed as if
such invalid word or words, phrase or phrases, sentence or sentences, clause or clauses, provisions or provisions, section or
sections or article or articles had not been inserted. If such invalidity is caused by length of time or size of area, or both,
the otherwise invalid provision will be considered to be reduced to a period or area which would cure such invalidity.

 

 

    	17

    	 

    

 

19.Waivers.
The waiver by either party hereto of a breach or violation of any term or provision of this Agreement shall not operate nor be
construed as a waiver of any subsequent breach or violation.

 

20.Damages;
Attorneys Fees. Nothing contained herein shall be construed to prevent the Company or the Executive from seeking and recovering
from the other damages sustained by either or both of them as a result of its or his breach of any term or provision of this Agreement.
In the event that either party hereto seeks to collect any damages resulting from, or the injunction of any action constituting,
a breach of any of the terms or provisions of this Agreement, then the party found to be at fault shall pay all reasonable costs
and attorneys' fees of the other.

 

21.Set-off.
The Company shall have the right to set-off any amounts payable by the Executive to the Company against any Base Salary or other
payments by the Company to the Executive pursuant to this Agreement; provided, however, that if and to the extent required to
comply with Section 409A of the Code, the Company may not set-off any amount payable to the Executive that is deferred compensation
subject to Section 409A unless the amount payable by the Executive was incurred in the ordinary course of the service relationship
between the Executive and the Company, the entire amount being set-off in any taxable year of the Company does not exceed $5,000,
and the set off is made at the same time and in the same amount as the debt otherwise would have been due and collected from the
Executive (and/or such other requirements are met so as to avoid any violation of Section 409A of the Code as a result of the
set-off).

 

22.Section
Headings. The article, section and paragraph headings contained in this Agreement are for reference purposes only and
shall not affect in any way the meaning or interpretation of this Agreement.

 

23.No
Third Party Beneficiary. Nothing expressed or implied in this Agreement is intended, or shall be construed, to confer
upon or give any Person other than the Company, the parties hereto and their respective heirs, personal representatives, legal
representatives, successors and permitted assigns, any rights or remedies under or by reason of this Agreement.

 

24.Counterparts.
This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together
shall constitute one and the same instrument and agreement.

 

25.Indemnification.

 

(a)Subject
to limitations imposed by law, the Company shall indemnify and hold harmless the Executive to the fullest extent permitted by
law from and against any and all claims, damages, expenses (including attorneys' fees), judgments, penalties, fines, settlements,
and all other liabilities incurred or paid by him in connection with the investigation, defense, prosecution, settlement or appeal
of any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative and
to which the Executive was or is a party or is threatened to be made a party by reason of the fact that the Executive is or was
an officer, employee or agent of the Company, or by reason of anything done or not done by the Executive in any such capacity
or capacities, provided that the Executive acted in good faith, in a manner that was not grossly negligent or constituted willful
misconduct and in a manner he reasonably believed to be in or not opposed to the best interests of the Company, and, with respect
to any criminal action or proceeding, had no reasonable cause to believe his conduct was unlawful. The Company also shall pay
any and all expenses (including attorney's fees) incurred by the Executive as a result of the Executive being called as a witness
in connection with any matter involving the Company and/or any of its officers or directors.

 

    	18

    	 

    
 

 

(b)The
Company shall pay any expenses (including attorneys' fees), judgments, penalties, fines, settlements, and other liabilities incurred
by the Executive in investigating, defending, settling or appealing any action, suit or proceeding described in this Section 26
in advance of the final disposition of such action, suit or proceeding. The Company shall promptly pay the amount of such expenses
to the Executive, but in no event later than 10 days following the Executive's delivery to the Company of a written request for
an advance pursuant to this Section 25, together with a reasonable accounting of such expenses.

 

(c)The
Executive hereby undertakes and agrees to repay to the Company any advances made pursuant to this Section 25 if and to the extent
that it shall ultimately be found that the Executive is not entitled to be indemnified by the Company for such amounts.

 

(d)The
Company shall make the advances contemplated by this Section 25 regardless of the Executive's financial ability to make repayment,
and regardless whether indemnification of the Indemnitee by the Company will ultimately be required. Any advances and undertakings
to repay pursuant to this Section 25 shall be unsecured and interest-free.

 

(e)The
provisions of this Section 25 shall survive the termination of the Term of Employment or expiration of the term of this Agreement.

 

26.Compliance
with Section 409A.  

 

(a)
General. It is the intention of both the Company and the Executive that the benefits and rights to which the Executive
could be entitled pursuant to this Agreement comply with Section 409A of the Code and the Treasury Regulations and other guidance
promulgated or issued there under (“Section 409A”), to the extent that the requirements of Section 409A
are applicable thereto, and the provisions of this Agreement shall be construed in a manner consistent with that intention. If
the Executive or the Company believes, at any time, that any such benefit or right that is subject to Section 409A does not so
comply, it shall promptly advise the other and shall negotiate reasonably and in good faith to amend the terms of such benefits
and rights such that they comply with Section 409A (with the most limited possible economic effect on the Executive and on the
Company).

 

(b)Distributions
on Account of Separation from Service. If and to the extent required to comply with Section 409A, no payment or benefit
required to be paid under this Agreement on account of termination of the Executive’s employment shall be made unless and
until the Executive incurs a “separation from service” within the meaning of Section 409A.

 

(c)6
Month Delay for Specified Employees.

 

    	19

    	 

    

 

(i)If
the Executive is a “specified employee”, then no payment or benefit that is payable on account of the Executive’s
“separation from service”, as that term is defined for purposes of Section 409A, shall be made before the date that
is six months after the Executive’s “separation from service” (or, if earlier, the date of the Executive’s
death) if and to the extent that such payment or benefit constitutes deferred compensation (or may be nonqualified deferred compensation)
under Section 409A and such deferral is required to comply with the requirements of Section 409A. Any payment or benefit
delayed by reason of the prior sentence shall be paid out or provided in a single lump sum at the end of such required delay period
in order to catch up to the original payment schedule.

 

(ii)For
purposes of this provision, the Executive shall be considered to be a “specified employee” if, at the time of his
or her separation from service, the Executive is a “key employee”, within the meaning of Section 416(i) of the Code,
of the Company (or any Person with whom the Company would be considered a single employer under Section 414(b) or Section 414(c)
of the Code) any stock in which is publicly traded on an established securities market or otherwise.

 

(d)No
Acceleration of Payments. Neither the Company nor the Executive, individually or in combination, may accelerate any payment
or benefit that is subject to Section 409A, except in compliance with Section 409A and the provisions of this Agreement, and no
amount that is subject to Section 409A shall be paid prior to the earliest date on which it may be paid without violating Section
409A.

 

(e)Treatment
of Each Installment as a Separate Payment. For purposes of applying the provisions of Section 409A to this Agreement,
each separately identified amount to which the Executive is entitled under this Agreement shall be treated as a separate payment.
In addition, to the extent permissible under Section 409A, any series of installment payments under this Agreement shall be treated
as a right to a series of separate payments.

 

(f)Taxable
Reimbursements and In-Kind Benefits.  If and to the extent required in order to comply with the requirements
of Section 409A:

 

(i)Any
reimbursements by the Company to the Executive of any eligible expenses under this Agreement that are not excludable from the
Executive’s income for Federal income tax purposes (the “Taxable Reimbursements”) shall be made
by no later than the last day of the taxable year of the Executive following the year in which the expense was incurred.

 

(ii)The
amount of any Taxable Reimbursements, and the value of any in-kind benefits to be provided to the Executive, during any taxable
year of the Executive shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other
taxable year of the Executive; provided, however, that this requirement shall not be deemed to have been violated with respect
to any arrangement for the reimbursement of medical expenses referred to in Section 105(b) of the Code solely because the arrangement
provides for the limit on the amount of any medical expenses that may be reimbursed under such arrangement over some or all of
the period in which the reimbursement arrangement remains in effect. The right to any Taxable Reimbursements shall not be subject
to liquidation or exchange for another benefit.

 

 

    	20

    	 

    
 

 

(g)No
Guaranty of 409A Compliance. Notwithstanding the foregoing, the Company does not make any representation to the Executive
that the payments or benefits provided under this Agreement are exempt from, or satisfy, the requirements of Section 409A, and
the Company shall have no liability or other obligation to indemnify or hold harmless the Executive or any beneficiary of the
Executive for any tax, additional tax, interest or penalties that the Executive or any beneficiary of the Executive may incur
in the event that any provision of this Agreement, or any amendment or modification thereof, or any other action taken with respect
thereto, is deemed to violate any of the requirements of Section 409A.

 

 

 

    	21

    	 

    

 

 

IN
WITNESS WHEREOF, the undersigned have executed this Agreement as of the date first above written.

 

 

	 	COMPANY:
	 	 
	 	REVEN HOUSING REIT, INC., a Colorado corporation
	 	 
	 	 
	 	By: /s/ Michael P. Soni
	 	Name: Michael P. Soni
	 	Title: Secretary
	 	 
	 	 
	 	EXECUTIVE:
	 	 
	 	 
	 	/s/ Chad Carpenter
	 	CHAD CARPENTER

 

 

    	22

    	 

    

 

 

EXHIBIT
A

FORM OF RELEASE

 

RELEASE
OF CLAIMS

 

1._______________
(“Executive”), for himself and his family, heirs, executors, administrators, legal representatives and their
respective successors and assigns, in exchange for the consideration received pursuant to Sections 6(c) (in the case of Disability),
Sections 6(e) or 6(f) (other than the Accrued Obligations) of the Employment Agreement to which this release is attached as Exhibit
A (the “Employment Agreement”), to which the Executive would not otherwise be entitled, and except as otherwise
set forth in this Agreement, does hereby release and forever discharge _____________________ (the “Company”),
its subsidiaries, affiliated companies, successors and assigns, and its current or former directors, officers, employees, shareholders
or agents in such capacities (collectively with the Company, the “Released Parties”) from any and all actions,
causes of action, suits, controversies, claims and demands whatsoever, for or by reason of any matter, cause or thing whatsoever,
whether known or unknown including, but not limited to, all claims under any applicable laws arising under or in connection with
Executive’s employment or termination thereof, whether for tort, for breach of express or implied employment contract, wrongful
discharge, intentional infliction of emotional distress, or defamation or injuries incurred on the job or incurred as a result
of loss of employment. Executive acknowledges that the Company encouraged him to consult with an attorney of his choosing, and
through this General Release of Claims encourages him to consult with his attorney with respect to possible claims under the Age
Discrimination in Employment Act (“ADEA”) and that he understands that the ADEA is a Federal statute that,
among other things, prohibits discrimination on the basis of age in employment and employee benefits and benefit plans. Without
limiting the generality of the release provided above, Executive expressly waives any and all claims under ADEA that he may have
as of the date hereof. Executive further understands that by signing this General Release of Claims he is in fact waiving, releasing
and forever giving up any claim under the ADEA as well as all other laws within the scope of this paragraph 1 that may have existed
on or prior to the date hereof. Notwithstanding anything in this paragraph 1 to the contrary, this General Release of Claims shall
not apply to (i) any rights to receive any payments or benefits pursuant to Section [ ] of the Employment Agreement, (ii) any
rights or claims that may arise as a result of events occurring after the date this General Release of Claims is executed, (iii)
any indemnification rights Executive may have as a former officer or director of the Company or its subsidiaries or affiliated
companies, (iv) any claims for benefits under any directors’ and officers’ liability policy maintained by the Company
or its subsidiaries or affiliated companies in accordance with the terms of such policy, and (v) any rights as a holder of equity
securities of the Company.

 

In
addition, Executive hereby acknowledges and agrees that he has read and understand Section 1542 of the Civil Code of the State
of California, which reads as follows:

 

“A
general release does not extend to claims which the creditor does not know or suspect to exist in his or her favor at the time
of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.”

 

In
connection with such waiver and the above releases, Executive acknowledges that he is aware that he may hereafter discover facts
in addition to or different from those which he now knows or believes to be true, but that it is his intention hereby to fully,
finally, and forever settle and release all such claims, matters, disputes, and differences, known or unknown, fixed or contingent,
suspected or unsuspected, except as specifically set forth in this Agreement.  The release given herein shall be and remain
in effect as full and complete releases notwithstanding the discovery or existence of any such additional or different facts.

 

    	A-1

    	 

    
 

 

Executive
hereby expressly waives and relinquishes all rights and benefits under that Section and any law or legal principle of similar
effect in any jurisdiction with respect to the Executive’s release of unknown and unsuspected claims given in this Release.
Executive have been advised by counsel and understand the meaning and consequences of Section 1542 and his waiver of said Section
and its protections is knowing and voluntary.

 

2.Executive
represents that he has not filed against the Released Parties any complaints, charges, or lawsuits arising out of his employment,
or any other matter arising on or prior to the date of this General Release of Claims, and covenants and agrees that he will never
individually or with any person file, or commence the filing of, any charges, lawsuits, complaints or proceedings with any governmental
agency, or against the Released Parties with respect to any of the matters released by Executive pursuant to paragraph 1 hereof
(a “Proceeding”); provided, however, Executive shall not have relinquished his right to commence
a Proceeding to challenge whether Executive knowingly and voluntarily waived his rights under ADEA.

 

3.Executive
hereby acknowledges that the Company has informed him that he has up to twenty-one (21) days to sign this General Release of Claims
and he may knowingly and voluntarily waive that twenty-one (21) day period by signing this General Release of Claims earlier.
Executive also understands that he shall have seven (7) days following the date on which he signs this General Release of Claims
within which to revoke it by providing a written notice of his revocation to the Company.

 

4.Executive
acknowledges that this General Release of Claims will be governed by and construed and enforced in accordance with the internal
laws of the State of California applicable to contracts made and to be performed entirely within such State.

 

5.Executive
acknowledges that he has read this General Release of Claims, that he has been advised that he should consult with an attorney
before he executes this general release of claims, and that he understands all of its terms and executes it voluntarily and with
full knowledge of its significance and the consequences thereof.

 

6.This
General Release of Claims shall take effect on the eighth day following Executive’s execution of this General Release of
Claims unless Executive’s written revocation is delivered to the Company within seven (7) days after such execution.

 

 

	 	 
	 	 
	 	 
	 	_______________, 20__

 

 

    	A-2

    	 

    
   

EXHIBIT
B

LIMITED EXCLUSION NOTIFICATION

 

 

THIS
IS TO NOTIFY you in accordance with Section 2872 of the California Labor Code that the foregoing Agreement between you and
the Company does not require you to assign or offer to assign to the Company any invention that you developed entirely on your
own time without using the Company’s equipment, supplies, facilities or trade secret information except for those inventions
that either:

 

1.            
Relate at the time of conception or reduction to practice of the invention to the Company’s business, or actual or demonstrably
anticipated research or development of the Company; or

 

2.            
Result from any work performed by you for the Company.

 

To the extent
a provision in the foregoing Agreement purports to require you to assign an invention otherwise excluded from the preceding paragraph,
the provision is against the public policy of this state and is unenforceable.

 

This limited
exclusion does not apply to any patent or invention covered by a contract between the Company and the United States or any of
its agencies requiring full title to such patent or invention to be in the United States.

 

I ACKNOWLEDGE
RECEIPT of a copy of this notification.

 

 

	Dated: March 4, 2013	CHAD CARPENTER
	 	 
	 	 
	 	 
	 	/s/ Chad Carpenter
	 	Employee Signature

 

    	B-1

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