Document:

Exhibit 10.1

 

 

 

LAND LEASE AGREEMENT

 

This Land Lease Agreement
(“Lease”) is made effective as of the 15th day of December, 2022 (the “Effective Date”), between
W & P DEVELOPMENT CORPORATION, a Texas corporation, hereinafter referred to as “Landlord,” and VIVAVENTURES
REMEDIATION CORP., a Texas corporation, hereinafter referred to as “Tenant.”

 

1.             
Premises. The premises leased hereunder are in W & P Industrial Park, a 275-acre industrial park located in
Harris County, Texas, commonly known as The San Jacinto River & Rail Park, 18511 Beaumont Highway, Houston, Texas (the
“Park”), as may be increased or reduced from time to time. The premises shall consist of the land more particularly
described on Exhibit “A” attached hereto (the “Premises”). Notwithstanding anything contained herein
to the contrary, Landlord shall obtain or cause to be obtained, at its sole cost and expense, a formal survey of the Premises from a Registered
Professional Land Surveyor currently licensed by the State of Texas (the "Survey") no later than six (6) calendar
months subsequent to the Effective Date. The Survey shall substantially and materially cover and provide for the same amount of acreage
in the same configuration as the description of the Premises upon execution of this Lease; provided, however, the parties acknowledge,
stipulate, and agree that, (a) notwithstanding that Exhibit "A" attached to the Lease or the Survey (as may be case) may depict
the acreage of the Premises as less than 3.5 acres of land, the acreage of the Premises shall be deemed to be no less than 3.5 acres of
land solely and exclusively for purposes of paying the Monthly Base Rent pursuant to Section 2 of this Lease, and (b) in no event
shall the Survey, the Premises, or this Lease encompass or include any portion of the drainage ditches adjacent to the roads on the southwesterly
and southeasterly boundaries of the Premises. Landlord shall promptly transmit the Survey to Tenant upon receipt thereof. Tenant may approve
or reject the Survey in its commercially reasonable discretion. Upon Tenant's approval, the Survey shall be deemed to constitute the description
of the Premises, and Exhibit "A" shall be immediately and automatically amended, modified, and replaced in its entirety by parties
hereto to reflect the Survey. Notwithstanding the foregoing, Landlord’s obligation to correct or revise the Survey pursuant to Tenant's
objections shall be capped at and shall not exceed $5,000.00 in the aggregate. For the avoidance of doubt, if any revisions to the Survey
are requested and such revisions will require Landlord to spend more than $5,000.00 in the aggregate above and beyond the initial cost
of the Survey, then Landlord shall have no obligation to incur any additional costs or expenses in excess of such amount on revising the
Survey unless and until the parties discuss how such costs or expenses will be allocated between the parties.

 

2.             
Term. The term of this Lease shall be for a period of one hundred twenty-six (126) calendar months commencing on the Effective
Date (“Commencement Date”), and terminating on the last day of the one hundred twenty-sixth (126th) calendar month
following the Commencement Date, subject to the Renewal Term referenced in Section 5 hereof (the “Term”). After
the expiration of the Term, as the same may be extended, if Tenant remains in possession of the Premises (“Holdover”),
this Lease shall continue on a month-to-month basis during the Holdover period, with a monthly rental equal to one hundred twenty-five
percent (125%) of the monthly Rent (as hereinafter defined) under this Lease.

 

 

 

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3.             
Rental. Tenant agrees to pay and Landlord agrees to accept as rental for the Premises the sum of:

 

	Months	Monthly Base Rent	Estimated Additional Rent
	Months 1 – 3 (Free Rent Period)	None	None
	Months 4-6	$5,687.50 (based on $3,250.00 per acre and reduced by 50%)	$1,313.47
	Months 7-12	$11,375.00 (based on $3,250.00 per acre)	$1,313.47
	Months 13 - 23	
    $11,659.37

    (based on $3,331.25 per acre)
	$1,313.47
	Month 24 (Free Rent Period)	None	$1,313.47
	Months 25 - 36	$11,950.85 (based on $3,414.53 per acre)	$1,313.47
	Months 37 - 47	$12,249.61 (based on $3,499.89 per acre)	$1,313.47
	Month 48	None	None
	Months 49 - 60	$12,555.83 (based on $3,587.38 per acre)	$1,313.47
	Months 61-71	$12,869.71 (based on $3,677.06 per acre)	TBD
	Month 72 (Free Rent Period)	None	None
	Months 73-84	$13,191.43 (based on $3,768.98 per acre)	$1,313.47
	Months 85-96	$13,521.20 (based on $3,863.20 per acre)	$1,313.47
	Months 97-108	$13,859.23 (based on $3,959.78 per acre)	$1,313.47
	Months 109-120	$14,205.69 (based on $4,058.77 per acre)	$1,313.47
	Months 121-126	$14,560.80 (based on $4,160.23 per acre)	$1,313.47

 

The monthly Rent set forth above (which consists
of a “Monthly Base Rent” (herein so called) component as well as Additional Rent) is to be paid in advance on or before
the first day of each month during the Term. Any other payments required to be made by Tenant to Landlord under this Lease, including,
but not limited to, Tenant’s Share of Real Estate Taxes, Tenant’s Share of Common Area Costs and Tenant’s Share of Insurance
Costs, shall constitute “Additional Rent” (together with the Monthly Base Rent, the “Rent”). Landlord
has estimated the payments of Additional Rent for each calendar month during the Term, and such estimates are subject to adjustment and
reconciliation from time to time as set forth in Section 23 of this Lease. The first full monthly payment of Rent applicable to month
4 of the Term shall be payable upon execution of this Lease. In the event Tenant fails to pay any installment of Rent hereunder as and
when such installment is due and after any applicable cure period as provided in this Lease, to help defray the additional cost to Landlord
for processing such late payments, Tenant shall pay to Landlord on demand a late charge in an amount equal to five percent (5%) of such
installment; and the failure to pay such amount within thirty (30) days after demand therefor shall be an Event of Default hereunder.
The provision for such late charge shall be in addition to all of Landlord’s other rights and remedies hereunder or at law or in
equity and shall not be construed as liquidated damages or as limiting Landlord’s remedies under Section 30 hereunder in any
manner. During any “Free Rent Period” identified in the table above, no Monthly Base Rent or Additional Rent shall
be due or payable, except that Tenant shall reimburse Landlord for any and all utilities furnished to the Premises or remain responsible
for paying directly the supplier of any utilities separately metered to the Premises.

 

 

 

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4.            
Security Deposit. The Security Deposit (herein so called) shall be $25,376.94 due and payable by Tenant to Landlord upon
execution of this Lease. The Security Deposit is security for the full performance by Tenant of all its obligations under this Lease.
If at any time during the Term, or an extension thereof, an Event of Default occurs or Tenant otherwise fails to perform any or all of
its obligations hereunder, then, upon lapse of the applicable notice and cure period provided for in Section 21 hereof, Landlord
may appropriate all or a part of the Security Deposit to defray any and all reasonably necessary expenses incurred by Landlord in curing
such default to completing such obligations, and not as liquidated damages. Provided that there is no Event of Default by Tenant, the
Security Deposit shall be returned to Tenant within thirty (30) days after early termination or expiration of the Lease.

 

5.            
Renewal Option. Provided no Event of Default then exists, as reasonably determined by Landlord, Tenant shall have the option
(“Renewal Option”) to extend the Term for one (1) additional one hundred twenty (120) calendar month period (“Renewal
Term”) upon written notice (“Renewal Option Notice”) to Landlord given not less than six (6) months and no
more than twelve (12) months prior to the expiration of the Term. If Tenant fails to exercise the Renewal Option strictly within the time
period set forth in this Section 5, then Tenant’s Renewal Option shall automatically lapse and be of no further force and effect.
In the event that Tenant timely exercises the Renewal Option, the Renewal Term shall be upon the same terms and conditions as are in effect
under this Lease immediately preceding the commencement of such Renewal Term, subject to the increase in Monthly Base Rent to the prevailing
market rental rate, as determined by Landlord in its sole discretion; provided that the Monthly Base Rent during the Renewal Term shall
be at no less than the amount of Monthly Base Rent in effect immediately prior to such renewal. For purposes of this Section 5, the “prevailing
market rental rate” shall mean the rate charged for comparable buildings and land (in size, condition, location, etc.) in the other
comparable type and style buildings and land in the Park, and if no such comparable improvements and land exist within the Park then comparable
industrial improvements and land in the submarket of Houston, Texas, which are comparable to the Premises taking into consideration all
relevant factors (including, without limitation, size of land, type of stabilization, location of the space, the floor level, extent of
leasehold improvements (existing or to be provided and taking into consideration who pays for such improvements) except for those improvements
paid for by Tenant or cash allowances therefor, rental abatements, lease takeover/assumptions, moving expenses and other concessions,
term of lease, extent of services to be provided, distinction between “net” and “gross” lease, base year or amount
allowed by Landlord for payment of building operating expenses (expense stop) and any other relevant term or condition. If Tenant delivers
to Landlord the Renewal Option Notice in accordance with this Section 5, Landlord shall, within thirty (30) days after receipt of same,
deliver to Tenant the Landlord’s Response (herein so called) to the Renewal Option Notice which shall set forth the Monthly Base
Rent for the Renewal Term. Tenant shall have fifteen (15) days from receipt of Landlord’s Response setting forth the proposed new
Monthly Base Rent to either accept or reject such proposed new Monthly Base Rent. In the event (i) Tenant rejects the new Monthly Base
Rent set forth in Landlord’s Response, or (ii) Tenant does not timely respond to Landlord’s Response, in each event, this
Lease shall terminate at the end of the Term.

 

Commencing with the second lease
year of the Renewal Term, and on the first day of each successive lease year during the Renewal Term, the Monthly Base Rent shall be increased
by two and half a percent (2.5%) per lease year.

 

6.             
Uses. Tenant’s use of the Premises shall be for equipment storage (for non-hazardous materials only) and oil remediation
processing center with associated washout pits and for no other purpose. Tenant shall be solely responsible for obtaining any permits
or approvals, governmental or otherwise, necessary to conduct activities contemplated by this Lease and shall not conduct unlawful activities
on the Premises or discharge pollutants of any type into the sanitary sewer or other drains and/or sewer lines or into the ambient air,
surface waters, groundwater or the Premises or adjacent property in violation of any law, regulation or governmental order. Tenant must
report spills to the Texas Commission on Environmental Quality (TCEQ), as described on Exhibit “B” attached hereto. Any
bulk storage of flammable fluids must be maintained in flashproof metal tanks, grounded, and protected by a dike or firewall. Tenant shall
strictly comply with the federal and state immigration laws and laws governing imports and exports of goods to and from foreign countries.

 

 

 

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7.             
Environmental Provisions.

 

(a)           
Tenant hereby agrees to defend (with counsel reasonably approved by Landlord), protect, indemnify and hold Landlord harmless from
and against, and shall reimburse Landlord for, any and all costs (including, without limitation, reasonable attorneys’ fees and
expenses), damages, penalties, fines, expenses or losses arising from any and all claims, demands, losses, damages, liabilities (including
strict liabilities), fines, penalties, charges, causes of action, injury to person, property or natural resources, administrative and
judicial proceedings and orders, injunctive relief, judgments, investigative, assessment, corrective, response or remedial actions and
enforcement actions of any kind, except to the extent arising out of the gross negligence or willful misconduct of Landlord, arising directly
or indirectly, in whole or in part, out of or attributable to any Release (as hereinafter defined) or threatened Release, resulting or
arising from, or related to, the activities, operations, business or occupancy of Tenant. Tenant hereby expressly waives, for purposes
of this Section 7 only, any immunity to which Tenant may otherwise be entitled under any industrial or workers’ compensation
laws. For purposes of this Section 7(a), “Landlord” shall include Landlord, its agents, contractors, employees
and invitees. Notwithstanding anything contained herein, Tenant shall not be responsible for, and Landlord hereby agrees to defend (with
counsel reasonably approved by Tenant), protect, indemnify, and hold Tenant harmless from and against, and shall reimburse Tenant for,
any and all costs (including, without limitation, reasonable attorneys’ fees and expenses), demands, damages, losses, cleanup costs,
actions, causes of action, claims for relief, penalties, fines, expenses, and charges incurred, assessed, resulting from or arising out
of a Release resulting from the activities, operations or occupancy of Landlord or contamination of the Premises existing on or before
the Commencement Date. For purposes of this Section 7, “Tenant” shall include Tenant, its agents, contractors,
consultants and employees.

 

(b)          
The term “Release” shall have the same meaning as is ascribed to it in the Comprehensive Environmental
Response, Compensation and Liability Act, 42 U.S.C.§ 9601 et seq., as amended (“CERCLA”). The term “Hazardous
Substance” means (i) any substance defined as a “hazardous substance” under CERCLA, (ii) petroleum, petroleum
products, natural gas, natural gas liquids, liquefied natural gas and synthetic gas, and (iii) any other substance or material deemed
to be hazardous, dangerous, toxic or a pollutant under any federal, state or local law, code, ordinance or regulation. Tenant shall: (A) comply
with all federal, state and local laws, codes, ordinances, regulations, permits and licensing conditions governing the Release, discharge,
emission or disposal of any Hazardous Substance and prescribing methods for or other limitations on storing, handling or otherwise managing
Hazardous Substances, (B) at its own expense, promptly contain and remediate any Release of Hazardous Substances arising directly
from Tenant’s Hazardous Substances in the Premises, the Park or the environment, and remediate and pay for any resultant damage
to property, persons and/or the environment, (C) give prompt verbal and written notice to Landlord and all appropriate regulatory
authorities of any Release of any Hazardous Substance in the Premises, the Park or the environment arising directly from Tenant’s
Hazardous Substances, which Release is not made pursuant to and in conformance with the terms of any permit or license duly issued by
appropriate governmental authorities, any such notice to include a description of measures taken or proposed to be taken by Tenant to
contain and remediate the Release and any resultant damage to property, person or the environment, (D)  at Landlord’s
request from time to time, execute affidavits, representations and other documentation concerning Tenant’s best knowledge and belief
regarding the presence of Hazardous Substances in the Premises, (E) prior to any Hazardous Substance being brought upon or into the Premises,
Tenant shall provide to Landlord any applicable safety data sheets regarding such Hazardous Substance and a written estimate of the amount
of each such Hazardous Substance Tenant anticipates being brought onto or into the Premises, as well as the common and recognized chemical
name of such Hazardous Substance (if not already shown on the applicable safety data sheet), (F) if any governmental agency or Landlord’s
mortgagee requires environmental testing of the Premises subsequent to a Release by Tenant or in any way associated with, arising from
or related to Tenant’s operations or activities, Tenant shall reimburse Landlord for the costs of such testing, and (G) prior
to the expiration or termination of this Lease, at Landlord’s sole option which must be exercised and delivered to Tenant in writing
prior to such expiration or termination, or at any other such time as Landlord has a reasonable belief a Release of Hazardous Substances
has occurred at, on or under the Premises which is not being remediated by the Tenant according to the terms herein, Tenant shall retain,
at Tenant’s sole cost and expense, a qualified environmental consultant reasonably acceptable to Landlord to conduct a “Phase
II” environmental audit of the Premises to document the environmental condition of the Premises; provided however, that Landlord
shall have the right but not the obligation, at Landlord’s sole cost and expense, to perform its own “Phase II” environmental
audit at the same time as Tenant (though for purposes of clarity, Tenant and Landlord’s Phase IIs need not be completed on the same
day), and thereafter Tenant shall surrender the Premises to Landlord free from the presence and contamination of any Hazardous Substance
resulting or arising from, or related to, the activities, operations, business or occupancy of Tenant. The provisions of this Section
7 shall survive the termination or expiration of this Lease.

 

 

 

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8.             
Utilities and Services. The parties acknowledge and agree that as of the execution date of this Lease there are no utilities
serving the Premises and that Tenant shall be responsible for bringing utilities to the Premises in accordance with Tenant’s Plans
(as defined below) as part of the Tenant Leasehold Improvements at Tenant’s sole cost and expense. Tenant shall also be responsible
for all cost of usage of all utilities at the Premises, including the cost of electricity, water and gas required by Tenant to operate
within the Premises. Tenant shall be responsible for janitorial and trash removal, including the cost of installing trash receptacles
suitable for Tenant’s needs.

 

9.             
Maintenance and Repair.

 

(a)           
Tenant has inspected the Premises and accepts the Premises “as is, where is,” “with all faults” in their
present condition, and without any warranties or representations of any kind by Landlord.

 

(b)           
Tenant shall keep the Premises in good condition and repair, at its own expense, excepting for ordinary wear and tear and obsolescence,
including, without limitation, keeping the Premises in a neat and clean condition, and maintaining all vegetation. If, as a result of
Tenant’s operation in, on or about the Premises, the Premises are damaged by fire, explosion, or other event, Tenant will at its
sole cost and expense, promptly repair and restore the Premises to the condition they were in prior to such event. On the last day of
the Term, Tenant will surrender the Premises to Landlord in a state of good repair, reasonable wear and tear, and obsolescence accepted.

 

(c)           
Intentionally deleted.

 

(d)           
Landlord makes no representations or warranties regarding the condition of the Premises, and Tenant shall be responsible for all
repairs related to the Premises, at its sole cost and expense.

 

10.          
Alterations, Fixtures and Personal Property.

 

(a)           
During the term of this Lease, Tenant may, from time to time at its own expense, make such alterations, improvements, repairs and
additions (“Alterations”) to and upon the Premises and install thereon such fixtures, equipment, furniture, fencing
and property as it may consider advisable for the conduct of its business. Tenant will not, except as may be allowed under Section 12,
without the prior written consent of Landlord, make or suffer to be made any Alterations that will cost over $50,000, or which will decrease
the value of the Premises. Landlord agrees that it will not unreasonably withhold, condition or delay consent to the making of such Alterations.
Alterations will be accomplished by Tenant in a good, expeditious, quality workmanlike manner, in conformity with all applicable laws,
regulations, ordinances, orders, and covenants, and in conformity with all conditions and restrictions encumbering the Premises, and by
a licensed contractor; and with respect to Alterations requiring Landlord’s consent, Tenant must provide plans and specifications
detailing the scope of the Alterations for Landlord’s prior written approval prior to filing any permits, licenses or requests for
approvals with the applicable governmental authorities for such Alterations. Prior to beginning to make any Alterations, Tenant must provide
to Landlord copies of all required permits and governmental approvals. Tenant shall not cause any liens to be placed upon the Premises
and shall immediately take steps to secure release of any lien which may arise as a result of Tenant’s use.

 

(b)           
All repairs, replacements, alterations, additions, improvements and fixtures (other than unattached, movable trade fixtures, the
mobile office, Tenant owned steel and aluminum frac tanks, custody transfer units, meters, gauging equipment, bulldozers, bobcats, backhoes,
mobile skids, unattached machinery, crude oil and associated liquid petroleum products, and rented electronic hardware for any of the
foregoing, all of which must be approved by Landlord prior to Tenant installing or placing any of the foregoing at the Premises (such
approval by Landlord not to be unreasonably withheld)) including all air conditioning, electrical, mechanical and plumbing machinery and
equipment, and water heaters, which may be made or installed by either party hereto upon the interior or exterior of the Premises shall
become the property of Landlord without credit or compensation to Tenant at the termination of this Lease for any reason whatsoever, and
at the termination of this Lease shall remain upon and be surrendered with the Premises, unless Landlord requests their removal, in which
event Tenant shall, prior to such termination, remove the same and restore the Premises to their original condition, normal wear and tear
excepted, at Tenant’s expense.

 

 

 

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11.           
Landlord Leasehold Improvements. The following Landlord Leasehold Improvements (herein so called) will be performed by Landlord
at Landlord’s sole cost and expense: None

 

12.           
Tenant Leasehold Improvements. Tenant, at Tenant’s sole cost and expense, may perform Tenant Leasehold Improvements
(herein so called) to the Premises required for the use and occupancy of the Premises contemplated under Section 6 of this Lease, subject
to providing plans and specifications to Landlord for the scope of work (“Tenant’s Plans”) and obtaining Landlord’s
prior written consent, such consent not to be unreasonably withheld, conditioned, or delayed. Upon termination of this Lease, all of the
improvements, alterations, and/or additions set forth herein shall be removed (with the exception of the enhanced electrical service as
approved in Tenant’s Plans) and the Premises shall be restored to the same condition of the Premises on the Effective Date, reasonable
wear and tear and casualty damage excepted.

 

13.           
Intentionally deleted.

 

14.           
Assignment and Subleasing. Tenant shall not assign, sublease, transfer, mortgage, pledge or encumber this Lease or
any interest herein without the prior written consent of Landlord, which consent shall not be unreasonably withheld, conditioned or delayed.
Notwithstanding to the contrary in this Lease, no assignment of this Lease or subletting of all or any portion of the Premises, including,
without limitation, any Permitted Transfer (as defined below), shall release Tenant or change Tenant’s primary liability to pay
Rent hereunder and to perform all other obligations of Tenant under this Lease.

 

15.           
Permitted Transfer. Notwithstanding anything contained herein, Tenant may assign this Lease to a successor to Tenant by
purchase, merger, consolidation or reorganization (an “Ownership Change”) or assign this Lease or sublet all or a portion
of the Premises to an Affiliate without the consent of Landlord, provided that all of the following conditions are satisfied (a “Permitted
Transfer”): (a) no Event of Default is continuing; (b) in the event of an Ownership Change, Tenant’s successor
shall acquire substantially all of the assets or a controlling interest in Tenant and have, after giving effect to the Ownership Change,
a tangible net worth, calculated in accordance with generally accepted accounting principles (and evidenced by financial statements in
a form reasonably acceptable to Landlord) which is at least equal to Tenant’s tangible net worth as of the day prior to the proposed
Ownership Change; (c) such merger, consolidation or transfer of assets or voting securities is for a good faith business purpose
and not principally for the purpose of transferring Tenant’s leasehold estate to avoid the obligations under this Lease, (d) Tenant
shall give Landlord written notice at least ten (10) days prior to the effective date of the Permitted Transfer; and (e) Tenant’s
successor shall sign a commercially reasonable form of assumption agreement. Tenant’s notice to Landlord shall include information
and documentation evidencing the Permitted Transfer and showing that each of the above conditions has been satisfied. “Affiliate”
shall mean an entity controlled by, controlling or under common control with Tenant.

 

16.           
Right of Entry. Except in the event of an emergency, Landlord shall have the right to enter, inspect and repair the Premises
at any time during the Term after twenty-four hours advance written notice to Tenant, provided that such entry and use does not unreasonably
interfere with Tenant’s use of the Premises or the business of Tenant. At all times during the Term after forty-eight hours advance
written notice to Tenant, Landlord shall have the right to exhibit the Premises to prospective purchasers and tenants, provided that such
exhibit does not unreasonably interfere with Tenant’s use of the Premises or the business of Tenant.

 

17.           
Quiet Enjoyment. Subject to the terms hereof, Landlord shall put Tenant in possession of the Premises and the appurtenances
thereof at the beginning of the Term, and Tenant, upon paying the Rent and observing the other covenants and conditions herein, shall
peaceably and quietly hold and enjoy the Premises during the Term and any extension or renewal thereof. Landlord shall warrant and defend
Tenant in the enjoyment and peaceful possession of the Premises during the Term and any extension or renewal period.

 

 

 

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18.           
Sale by Landlord and Mortgagee Rights.

 

(a)           
In the event of a sale or conveyance by Landlord of the Premises, the same shall operate to release Landlord of any liability upon
any of the covenants and conditions, express or implied, herein contained in favor of Tenant arising after such sale or conveyance; and
in such event, so long as such successor shall assume each and every future obligation of Landlord under this Lease, then Tenant agrees
to look solely to the successor in interest of Landlord in and to this Lease.

 

(b)           
If any person shall succeed to all or part of Landlord’s interest in the Premises, whether by purchase, foreclosure, deed
in lieu of foreclosure, power of sale, termination of lease or otherwise, and if so requested or required by such successor in interest,
Tenant shall subordinate and attorn to such successor in interest and shall execute a reasonable subordination and attornment agreement
in confirmation of such arrangement as such successor in interest shall reasonably request.

 

(c)           
This Lease, and Tenant’s rights hereunder, are expressly subordinate to all current and future mortgage liens against the
Premises granted by Landlord or its successors or assigns (“Mortgage Liens”). This subordination is self-operative
and does not require any further agreement or confirmation to be effective; provided, however, if the holder of a current or future Mortgage
Lien requests that Tenant confirm that this Lease is subordinate to its lien, Tenant shall, within ten (10) days after receipt of Landlord’s
request therefor, execute and deliver to Landlord a subordination agreement, and if requested, a subordination, non-disturbance and attornment
agreement in a commercially reasonable form and substance required by the holder of such current or future Mortgage Lien.

 

19.          
Successors. Subject to Section 14, this Lease shall inure to the benefit of and be binding upon the parties hereto,
their respective representatives, successors and assigns.

 

20.          
Notices. Any notice required or desired to be given under this Lease shall be in writing with copies directed as indicated
herein and shall be personally served or given by certified mail or courier service (FedEx, UPS, etc.). Any notice given by mail shall
be deemed to have been given when forty-eight (48) hours have elapsed from the time when such notice was deposited in the United States
mail, certified and postage prepaid, addressed to the party to be served with a copy as indicated herein, or with any aforementioned courier
service, at the last address given by that party to the other party under the provisions of this part. For purposes of mailing notices,
at the date of the execution of this Lease the addresses for such notification are:

 

	 	Landlord:	W & P Development
Corporation
	 	 	13641 Dublin Court
	 	 	Stafford, Texas 77477
	 	 	Attn:	President
	 	 	Phone:	(281) 566-1200
	 	 	Fax:	(281) 566-1292
	 	 	 
	 	With a copy to:	Porter Hedges LLP
	 	 	1000 Main Street, 36th Floor
	 	 	Houston, Texas 77002
	 	 	Attn:	Colin L. Cox
	 	 	Phone:	(713) 226-6605
	 	 	Fax:	(713) 226-6205

 

 

 

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	 	Tenant:	Vivaventures Remediation Corp.
	 	 	

 

c/o Endeavor
Crude, LLC

	 	 	5220 Spring Valley
Rd., Ste. LL20
	 	 	Dallas, Texas
75254

	 	 	 
	 	With a copy to:	Jackson
Walker LLP
	 	 	2323 Ross Avenue,
Suite 600
	 	 	Dallas, Texas 75201
	 	 	Attn: Pat Knapp
	 	 	Email: pknapp@jw.com

 

21.           
Tenant’s Default. Tenant shall be in default under this Lease if any of the following occurs (each, an “Event
of Default”):

 

(a)           
Any monthly Rent or other amount payable by Tenant hereunder is not paid within five (5) days after the due date thereof and continues
to remain unpaid for a period of five (5) days after written notice of such non-payment is given by Landlord to Tenant.

 

(b)           
Tenant fails to correct or cure its breach of any covenant or agreement of Tenant contained in this Lease, except with respect
to non-payment of Rent, within thirty (30) days after Landlord has notified Tenant in writing of any such breach thereof.

 

(c)           
A proceeding is commenced to declare Tenant bankrupt or insolvent or any assignment of Tenant’s property is made for the
benefit of creditors, or a receiver or trustee is appointed for Tenant or Tenant’s property or business, and such proceeding is
not dismissed or such a receiver/trustee not removed within a period of sixty (60) days thereafter.

 

22.           
Eminent Domain; Condemnation. If the Premises are taken under any public or private power of eminent domain, or sold by
Landlord under the threat of the exercise of said power, or if any portion of the Premises is so condemned so that it would not be practical
for Tenant to continue to operate its business on the Premises, this Lease shall terminate as of the date of the condemning authority
takes title or possession, whichever occurs first. If more than twenty percent (20%) of the Premises is so condemned, both Landlord and
Tenant shall have the right to terminate this Lease as of the date the condemning authority takes title or possession, whichever occurs
first, by giving written notice of such termination to the other not later than thirty (30) days after said date; provided that should
neither Landlord nor Tenant elect to so terminate this Lease in a timely manner, then this Lease shall remain in full force and effect
as to the portion of the Premises not so taken, Tenant’s Rent shall be reduced proportionately to reflect the reduction in the rentable
area of the Premises (such reduction, if any, to take effect as of the date which is thirty (30) days after the date of which the condemning
authority takes title or possession, whichever first occurs), and if repairs or restorations to that portion of the Premises not taken
are deemed necessary by Landlord to render such portion reasonably suitable for the purposes for which is was leased, Landlord shall perform
such work at its own cost and expense. Notwithstanding any obligation to restore the Premises, however, Landlord shall not be required
to expend any amount greater than the amount actually received by Landlord as compensation for the portion of the Premises taken by the
condemning authority. All awards for any taking of any part of the Premises or any payment made under the threat of the exercise of power
of eminent domain shall be the property of Landlord, whether made as compensation for diminution of value of the leasehold or for the
taking of the fee or as severance damages. No award for any partial or entire taking shall be apportioned, and Tenant hereby assigns to
Landlord any award which may be made in such taking or condemnation, together with any and all rights of Tenant now or hereafter arising
in or to the same or any part thereof, except that any award or other compensation made for any taking is subject to the rights of the
first mortgagee up to the amount of its lien and of any junior mortgagee, as may be permitted by the first mortgagee, up to the full amount
of such junior lien; provided, however, that Tenant shall be entitled to any portion of the award allocated to loss of or damage to Tenant’s
trade fixtures and removable personal property and/or for the interruption of or damage to Tenant’s business.

 

 

 

    	 	8	 

     

    

 

23.           
Taxes, Common Area Costs and Insurance.

 

(a)           
Tenant shall pay before delinquency all taxes, assessments, license fees and other charges (“Taxes”) that are
levied and assessed against Tenant’s personal property installed or located in or on the Premises, and that become payable during
the Term.

 

(b)           
Landlord shall pay all real property taxes and general and special assessments (“Real Property Taxes”) against
the Park, including the Premises; provided, however, Tenant shall pay, as Additional Rent, Tenant’s proportionate share of Real
Property Taxes against the Park, including the Premises. The total land area used to determine Tenant’s Share of Insurance Costs
as of the execution date of this Lease is 275 acres, and the current percentage of Tenant’s proportionate share of Real Property
Taxes, based on the Premises containing 3.5 acres, equals 1.27%. In connection with Real Property Taxes, Tenant waives all rights to protest
or appeal the appraised value of the Premises, as well as any tax parcel of which it is a part, and all rights to receive notices of reappraisement.

 

(c)           
The portion of the Park that is not leased or available for lease is herein referred to as the “Common Area.”
The Common Area does not include the rail and dock facilities in the Park. The Common Area shall be subject to Landlord’s sole management
and control and shall be operated and maintained in such manner as Landlord, in its sole discretion, shall determine. Tenant and its employees,
customers and invitees shall have the non-exclusive right to use the Common Area as constituted from time to time, such use to be in common
with Landlord, other tenants of the Park and other persons entitled to use the same and subject to such rules and regulations governing
use as Landlord may from time to time prescribe in Landlord’s sole discretion. Landlord may temporarily close any part of the Common
Area for such periods of time as may be necessary to prevent the public from obtaining prescriptive rights or to make repairs or alterations.
Tenant shall not obstruct any portion of the Common Area, or take any action which would interfere with the rights of other persons to
use the Common Area. Tenant shall pay, as Additional Rent, Tenant’s proportionate share of all Common Area Costs for the Park (“Tenant’s
Share of Common Area Costs”). In the event Tenant occupies the Premises hereunder for a partial calendar year, Tenant’s
Share of Common Area Costs will be prorated to reflect the number of days in the year Tenant occupied the Premises hereunder. “Common
Area Costs” shall include, without limitation, the costs of (i) all road maintenance and drainage repair in the Park, (ii) operating
and maintaining the water distribution system in the Park and any water line that is not located within an area leased to a third party,
(iii) guard service and security, including gates into the Park, (iv) any homeland security measures required for the Park or
determined by Landlord to be in the best interest of the Park, (v) all mowing, landscaping, maintenance of mowing and landscaping
equipment, fence repair, trash removal and salaries for maintenance personnel, (vi) maintaining general liability insurance coverage
on the Common Areas, and (vii) reasonable management fees not to exceed 4% of Common Area Costs. Common Area Costs shall not include
(1) expenditures classified as capital expenditures for federal income tax purposes, (2) costs for which Landlord is entitled
to specific reimbursement by Tenant or any other third party, (3) leasing commissions, (4) debt service on any indebtedness
secured by the Park, (5) unless otherwise permitted pursuant to this Lease, the cost of any improvements, repairs, alternations,
additions, changes, replacement, equipment, tools and other items which under generally accepted accounting principles are required to
be classified as capital expenditures (whether incurred directly or through a lease or service contract or otherwise) other than amortization
of the cost of capital (and the installation thereof), or items which may be required by any government authority (all of such costs,
including interest cost, shall be amortized over the reasonable life of the capital items, with a reasonable life and amortization schedule
being determined by Landlord according to generally accepted accounting principles), (6) depreciation of the Park, and all equipment
and fixtures, improvements and facilities used in connection therewith, except as provided in (5) above, (7) the cost of repairs
or other work occasioned by casualty which is covered by insurance, but only to the extent of the insurance proceeds received by Landlord
net of deductibles and cost of adjustment, and (8) the cost of any repairs occasioned by eminent domain to the extent such costs
are reimbursed to Landlord by governmental authorities in eminent domain proceedings.

 

(d)           
Additional Rent is estimated in advance for each year of the Term, or any renewals or extensions thereto, on the basis of the previous
lease year’s costs. The estimated amount of Additional Rent for each month of the Term (i.e., Tenant’s Proportionate Share
of Insurance Costs, Tenant’s Share of Common Area Costs, and Tenant’s proportionate share of Real Estate Taxes) is subject
to adjustment for the cost of actual expenses incurred by Landlord for each month of the Term. Not later than February 15 following each
year during the Term, Landlord will furnish Tenant with an invoice which shows the calculation of Additional Rent for the immediately
prior year. Landlord will provide Tenant with supporting documentation on Tenant’s written request. Tenant shall pay Additional
Rent which are in excess of those estimated and included in the Rent set forth in the table in Section 3 above to Landlord as indicated
on Landlord’s invoice within thirty (30) days after receipt thereof. Tenant shall have the audit rights as set forth in Section 28
with respect to same.

 

 

 

    	 	9	 

     

    

 

(e)           
Tenant agrees to pay to Landlord all sales and use taxes due on the lease of real property and of tangible personal property by
Tenant and taxable services provided by the Landlord (such as repairs and maintenance made to real or personal property, utility services,
Rail Services, etc.), if any, or provide Landlord with a valid sales and use tax resale certificate, exemption certificate or a direct
pay permit number. These sales and use taxes shall constitute Additional Rent.

 

(f)           
Tenant shall pay, as Additional Rent, its proportionate share of property insurance premiums incurred by Landlord for the Park
(“Tenant’s Share of Insurance Costs”). Landlord shall notify Tenant of Tenant’s Share of Insurance Costs
and, together with such notice, shall furnish Tenant with a copy of the invoice(s) for such insurance premiums. Tenant’s proportionate
share shall be determined by dividing the rentable area of that part of the Premises which consists of buildings and acreage by the total
rentable area of all buildings and total rentable acreage within the Park that are covered by Landlord’s property insurance, and
multiplying such ratio by in the insurance premiums. Tenant shall reimburse Landlord for Tenant’s Share of Insurance Costs which
are in excess of those estimated and included in the Additional Rents set forth above not later than thirty (30) days after receipt of
the invoice and supporting documentation from Landlord. The total land area used to determine Tenant’s Share of Insurance Costs
as of the execution date of this Lease is 275 acres, and the current percentage of Tenant’s Share of Insurance Costs, based on the
Premises containing 3.5 acres, equals 1.27%.

 

(g)           
Landlord agrees that annual increases in Tenant’s proportionate share of Real Property Taxes, Common Area Costs, and Insurance
Costs shall not increase by more than 5% per year. These limits do not apply to increases based on reasons beyond the control of Landlord.
Notwithstanding anything to the contrary in this Lease, should the Park be increased to exceed 275 acres, Tenant’s proportionate
share of Real Property Taxes, Common Area Costs, and Insurance Costs shall be adjusted accordingly.

 

24.           
Damage or Destruction.

 

(a)           
Option to Terminate Lease. If either (i) more than forty percent (40%) of the rentable area of the Premises (excluding
Tenant’s improvements at the Premises) shall be substantially damaged by fire or other casualty or (ii) the Premises or any
substantial part thereof shall be damaged or destroyed by fire or other casualty to the extent that the repairs and restoration thereof
can be reasonably anticipated to take longer than one hundred eighty (180) days, then, in either such instance, Landlord or Tenant may,
at its option, elect to terminate this Lease by giving notice to the other within thirty (30) days after Landlord receives actual notice
of such fire or other casualty; provided, however, that Tenant shall have no option to terminate this Lease if such damage or destruction
is caused by the Tenant or Tenant’s contractors, agents, representatives, employees, customers or invitees. In the event that either
party gives the other timely notice of termination, the Term shall expire by lapse of time upon the tenth (10th) day after
such termination notice is given. Should neither party give the other timely notice of termination, then the provisions of this Lease
pertaining to repair and restoration of the Premises shall apply.

 

(b)           
Obligation to Repair or Restore. If and only if all of the following conditions are met with respect to any casualty
damage to or destruction of the Premises, Landlord or Tenant may not elect to terminate this Lease as provided in this Section, but rather
Landlord must repair or restore the Premises:

 

(1)           
The damage or destruction was not caused solely by Tenant, Tenant’s contractors, agents, representatives, employees, customers
or invitees.

 

(2)           
The damage or destruction to the Premises is less than fifty percent (50%) of the restoration cost thereof as determined by Landlord;

 

(3)           
The insurance claim has been paid, and the insurance proceeds have been made available to Landlord by the holder or holders of
any mortgages or deeds of trust covering the Premises;

 

(4)           
The date of the damage or destruction is more than one (1) year prior to the Expiration Date or the expiration of any renewal or
extension term; and

 

 

 

    	 	10	 

     

    

 

(c)           
Restoration. Should either (i) the termination option as provided above in this Section not apply or, if applicable,
should neither party elect to timely exercise such option, or (ii) should Landlord otherwise be required to repair and restore the
Premises as provided herein, then Landlord shall repair or restore the Premises to substantially the same condition as existed before
such damage or destruction. Upon electing to repair or restore or being required to repair or restore pursuant to this Section, Landlord
may proceed with reasonable dispatch to perform the necessary work, and the Monthly Base Rent and the Additional Rent due for the period
following the casualty shall be abated in proportion to the unusable Premises for a period commencing as of the date of the casualty damage
until the repair and restoration of the Premises are substantially complete. If such repair or restoration is not substantially complete
within one hundred eighty (180) days after the date it is determined that Landlord is obligated to make such repair or restoration, then
Tenant may terminate this Lease by delivering written notice to Landlord of its election to terminate at any time after the expiration
of said one hundred eighty (180) day period and before Landlord’s substantial completion of such repair or restoration; provided
that if Tenant delivers said notice in a timely manner, this Lease shall terminate as of the date of the fire or other casualty.

 

(d)           
Fault of Tenant. Landlord may exercise its option to repair or restore the Premises as described in this Section even if
such damage or destruction is due to the fault or willful neglect of Tenant, Tenant’s agents, representatives, employees, customers
or invitees. However, in such event, (i) Landlord’s election to repair or restore shall be without prejudice to any other rights
and remedies of Landlord under this Lease, (ii) there shall be no apportionment or abatement of any Rent of any kind, and (iii) Landlord
shall not be liable for any other loss to Tenant of any nature whatsoever. Furthermore, notwithstanding any provision hereof to the contrary,
Tenant shall have no option to terminate and there shall be no abatement, apportionment or reduction in the Rent obligations of Tenant
if the damage or destruction is caused by Tenant or Tenant’s contractors, agents, representatives, employees, customers or invitees.

 

25.          
SEE EXHIBIT “D” FOR THE INSURANCE REQUIREMENTS OF W&P DEVELOPMENT REFERENCED ON THE SEPARATE DOCUMENT TITLED
“SJRR LANDLORD’S INSURANCE REQUIREMENTS OF TENANT”. THE COVERAGES SET FORTH THEREIN ARE TO BE OBTAINED AND MAINTAINED
BY THE PARTY IDENTIFIED IN THE EXHIBIT. THE SPECIFICATIONS ARE IN ADDITION TO ANY REQUIREMENTS SET OUT IN THIS LEASE. IN THE EVENT OF
ANY CONFLICT BETWEEN THE SPECIFICATION IN THE EXHIBIT AND THE REQUIREMENTS SET OUT IN THIS LEASE, THE SPECIFICATIONS IN THE EXHIBIT CONTROL
AND AMEND AND SUPERSEDE THE CONFLICTING REQUIREMENT SET OUT IN THIS LEASE. TENANT’S FAILURE TO OBTAIN AND MAINTAIN THE REQUIRED
INSURANCE WILL CONSTITUTE A MATERIAL BREACH OF, AND DEFAULT UNDER, THIS LEASE. IF TENANT FAILS TO REMEDY SUCH BREACH WITHIN 5 DAYS AFTER
NOTICE FROM LANDLORD, LANDLORD MAY, IN ADDITION TO ANY OTHER REMEDY AVAILABLE TO IT, AT LANDLORD’S OPTION, PURCHASE SUCH INSURANCE,
AT THE TENANT’S EXPENSE. THE TENANT WILL INDEMNIFY, DEFEND AND HOLD HARMLESS THE LANDLORD, ITS OFFICERS, PARTNERS, MEMBERS, AFFILIATES,
AND EMPLOYEES AGAINST ANY CLAIMS ARISING FROM THE SUCH FAILURE TO PURCHASE AND/OR MAINTAIN THE INSURANCE COVERAGES REQUIRED BY THIS LEASE.

 

26.          
Landlord’s Insurance. Landlord shall obtain and keep in force during the Lease Term a “Special Form” property
insurance policy that provides coverage of all customarily insurable risks on the Premises and the Park in the amount of the full replacement
cost (without regard to depreciation); provided that it is understood and agreed that such Special Form policy may be part of a blanket
property insurance policy that also covers additional properties owned by Landlord and its affiliates. Landlord may also, but shall not
be required to, procure any other insurance policies respecting the Premises which Landlord deems necessary.

 

27.          
Waiver of Subrogation. Landlord and Tenant each waives any and all rights of recovery against the other and against the
officers, employees, agents and representatives of the other for loss or damage to the property of the waiving party or the property of
others under its control, where such loss or damage is insured against under any insurance policy in force at the time of such loss or
damage. Upon obtaining the property insurance policies as required in this Lease, both Tenant and Landlord shall (i) give notice
to their respective insurance carriers that the foregoing mutual waiver of subrogation is contained in this Lease and (ii) insure
that their respective insurance policies include a waiver by the insurance carrier of all rights of subrogation against Landlord or Tenant
in connection with any insured loss or damage.

 

 

 

    	 	11	 

     

    

 

28.           
Tenant’s Audit Rights. Provided that Tenant is not then in default beyond any applicable cure period of its obligations
to pay Rent, or any other payments required to be made by it under this Lease, and provided further that Tenant shall have the right,
once each calendar year, to cause a Qualified Person (as defined below) to reasonably review supporting data for any portion of an actual
statement of annual Common Area Costs delivered by Landlord (the “Actual Statement”), in accordance with the following
procedure:

 

(a)           
Tenant shall, within forty-five (45) days after any Actual Statement is delivered, deliver a written notice to Landlord specifying
the portions of the Actual Statement that are claimed to be incorrect, and Tenant shall simultaneously pay to Landlord all amounts due
from Tenant to Landlord as specified in the Actual Statement. In no event shall Tenant be entitled to withhold, deduct or offset any monetary
obligation of Tenant to Landlord under the Lease (including, without limitation, Tenant’s obligation to make all payments of Rent
and all payments of Tenant’s Share of Common Area Costs) pending the completion of and regardless of the results of any review of
records under this Paragraph. The right of Tenant under this Paragraph may only be exercised once for any Actual Statement, and if Tenant
fails to meet any of the above conditions as a prerequisite to the exercise of such right, the right of Tenant under this Paragraph for
a particular Actual Statement shall be deemed waived.

 

(b)           
Tenant acknowledges that Landlord maintains its records for the Park at Landlord’s main office, and Tenant agrees that any
review of records under this Paragraph shall be at the sole expense of Tenant and shall be conducted by a Qualified Person. Tenant acknowledges
and agrees that any records reviewed under this Paragraph constitute confidential information of Landlord, which shall not be disclosed
to anyone other than the Qualified Person performing the review, the principals of Tenant who receive the results of the review, counsel
for Tenant, and Tenant’s accounting employees. The disclosure of such information to any other person, whether or not caused by
the conduct of Tenant, shall constitute an Event of Default under this Lease.

 

(c)           
Any errors disclosed by the review shall be promptly corrected by Landlord; provided, however, that if Landlord disagrees with
any such claimed errors, Landlord shall have the right to cause another review to be made at Landlord’s sole cost and expense. In
the event that the results of the review of records (taking into account, if applicable, the results of any additional review caused by
Landlord) reveal that Tenant has overpaid obligations for a preceding period, the amount of such overpayment shall be credited against
Tenant’s subsequent installment obligations to pay the estimated Tenant’s Share of Common Area Costs. In the event that such
results show that Tenant has underpaid its obligations for a preceding period, the amount of such underpayment shall be paid by Tenant
to Landlord with the next succeeding installment obligation of estimated Tenant’s Share of Common Area Costs. A “Qualified
Person” means an accountant or other person experienced in accounting for income and expenses of industrial projects engaged
solely by Tenant on terms which do not entail any compensation based or measured in any way upon any savings in Additional Rent or reduction
in Tenant’s Share of Common Area Costs achieved through the inspection process.

 

29.         
INDEMNIFICATION. UNLESS WAIVED BY LANDLORD UNDER SECTION 27 ABOVE, TENANT SHALL INDEMNIFY AND HOLD LANDLORD AND LANDLORD’S
AGENTS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, ACTIONS, DEMANDS, LIENS, COSTS, DAMAGES, EXPENSES AND LIABILITIES (INCLUDING STRICT
LIABILITIES) WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS’ FEES AND COURT COSTS, ARISING OUT OF ANY CLAIMS OF
ANY PERSON OR PERSONS ON ACCOUNT OF OR BY REASON OF: (A) ANY OCCURRENCE IN, ON OR ABOUT THE PREMISES FROM THE COMMENCEMENT DAY OF
THIS LEASE UNTIL TENANT FULLY VACATES THE PREMISES RESULTING FROM THE OCCUPANCY OR USE THEREOF BY TENANT; (B) THE NEGLIGENCE (IN
WHOLE OR IN PART) OR WILLFUL MISCONDUCT OF TENANT OR ITS PARTNERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS, CONTRACTORS, VISITORS, INVITEES,
LICENSEES AND CUSTOMERS IN, ON OR ABOUT THE PREMISES AND/OR PARK. NOTWITHSTANDING ANY OF THE FOREGOING, LANDLORD SHALL REMAIN LIABLE FOR
ANY AND ALL LOSS, LIABILITY, DAMAGES, COSTS, EXPENSES, CLAIMS, ACTIONS, DEMANDS AND LIENS ARISING FROM LANDLORD’S NEGLIGENCE OR
WILLFUL MISCONDUCT. THIS SUBPARAGRAPH SHALL SURVIVE THE TERMINATION OF THIS LEASE. FOR PURPOSES OF THIS SECTION 29, “LANDLORD”
SHALL INCLUDE LANDLORD AND ITS AGENTS, CONTRACTORS, EMPLOYEES, AND INVITEES. UNLESS WAIVED BY TENANT UNDER SECTION 27 ABOVE, LANDLORD
SHALL INDEMNIFY AND HOLD TENANT AND TENANT’S AGENTS HARMLESS FROM AND AGAINST ANY AND ALL CLAIMS, ACTIONS, DEMANDS, LIENS, COSTS,
DAMAGES, EXPENSES AND LIABILITIES WHATSOEVER, INCLUDING, BUT NOT LIMITED TO, REASONABLE ATTORNEYS’ FEES AND COURT COSTS, ARISING
OUT OF ANY CLAIMS OF ANY PERSON OR PERSONS ON ACCOUNT OF OR BY REASON OF THE NEGLIGENCE (IN WHOLE OR IN PART) OR WILLFUL MISCONDUCT OF
LANDLORD OR ITS PARTNERS, OFFICERS, DIRECTORS, EMPLOYEES, AGENTS OR CONTRACTORS OF LANDLORD IN, ON OR ABOUT THE PARK. NOTWITHSTANDING
ANY OF THE FOREGOING, TENANT SHALL REMAIN LIABLE FOR ANY AND ALL LOSS, LIABILITY, DAMAGES, COSTS, EXPENSES, CLAIMS, ACTIONS, DEMANDS AND
LIENS ARISING FROM TENANT’S NEGLIGENCE OR WILLFUL MISCONDUCT. THIS SUBPARAGRAPH SHALL SURVIVE THE TERMINATION OF THIS LEASE. FOR
PURPOSES OF THIS SECTION 29, “TENANT” SHALL INCLUDE TENANT AND ITS AGENTS, CONTRACTORS, EMPLOYEES AND INVITEES.

 

 

 

    	 	12	 

     

    

 

30.           
Landlord’s Remedies.

 

(a)           
Upon the occurrence of an Event of Default and after any applicable notice and cure period, Landlord shall have the option to pursue
any one or more of the following remedies without any notice or demand whatsoever:

 

(1)          
Terminate this Lease, in which event Tenant shall immediately surrender the Premises to Landlord, and if Tenant fails to do so,
Landlord may, without prejudice to any other remedy which it may have, enter upon and take possession of the Premises and expel or remove
Tenant and any other person who may be occupying such Premises or any part thereof, by force if necessary, without being liable for prosecution
or any claim of damages therefor.

 

(2)           
Without terminating this Lease, enter upon and take possession of the Premises and expel or remove Tenant and any other person
who may be occupying such Premises or any part thereof, by force if necessary, without being liable for prosecution or any claim for damages
therefor, and relet the Premises and receive the rent therefor.

 

(3)           
Enter upon the Premises, by force if necessary, without being liable for prosecution or any claim for damages therefor, and do
whatever Tenant is obligated to do under the terms of this Lease; and Tenant agrees to reimburse Landlord on demand for any expenses which
Landlord may incur in thus effecting compliance with Tenant’s obligations under this Lease, and Tenant further agrees that Landlord
shall not be liable for any damages resulting to Tenant from such action, except for damages caused by the negligence or willful misconduct
of Landlord.

 

(4)           
Alter all locks and other security devices at the Premises without terminating this Lease.

 

(5)           
Terminate deliveries of water, gas or electricity, which Landlord may be providing hereunder, without terminating this Lease.

 

(6)           
Deny rail or road access to Tenant and its representatives, and prohibit the removal of Tenant’s personal property on which
Landlord has or may perfect a statutory or landlord’s lien arising from such default without terminating this Lease.

 

(b)           
Intentionally deleted.

 

(c)           
In the event Landlord terminates this Lease pursuant to Section 30 and Tenant remains in the Premises, Tenant shall be considered
a holdover tenant and shall pay to Landlord a monthly rental equal to one hundred fifty percent (150%) of the Rent provided in Section 3
hereunder for each month during which Tenant holds over.

 

(d)           
Exercise by Landlord of any one or more remedies hereunder granted or otherwise available shall not be deemed to be an acceptance
by Landlord of surrender of the Premises by Tenant, whether by agreement or by operation of law, it being understood that such surrender
can be effected only by the written agreement of Landlord and Tenant. No such alteration of locks or other security devices and no removal
or other exercise of dominion by Landlord over the property of Tenant or others at the Premises shall be deemed unauthorized or constitute
a conversion, Tenant hereby consenting, after any Event of Default and any applicable notice and cure period, to the aforesaid exercise
of dominion over Tenant’s property within the Premises. All claims for damages by reason of such re-entry and/or repossession and/or
alteration of locks or other security devices are hereby waived, as are all claims for damages by reason of any distress warrant, forcible
detainer proceedings, sequestration proceedings or other legal process. Tenant agrees that any re-entry by Landlord may be pursuant to
judgment obtained in forcible detainer proceedings or other legal proceedings or, without the necessity for any legal proceedings, as
Landlord may elect, and Landlord shall not be liable in trespass or otherwise. Notwithstanding any of the foregoing, Landlord shall remain
liable for any and all loss, liability, damages, costs, expenses, claims, actions, demands and liens arising from Landlord’s negligence
or willful misconduct.

 

 

 

    	 	13	 

     

    

 

(e)           
In the event Landlord elects to terminate this Lease by reason of any uncured Event of Default, then, notwithstanding such termination,
Tenant shall be liable for and shall pay to Landlord, at the address specified for notice to Landlord herein, all damages sustained by
Landlord arising from or out of such Event of Default, including, without limitation, the sum of all Rent and other indebtedness as and
when such amounts are scheduled to come due through the period that would have otherwise constituted the balance of the term of this Lease
as if this Lease had not been terminated.

 

(f)            
In the event that Landlord elects to repossess the Premises without terminating this Lease, then Tenant shall be liable for and
shall pay to Landlord, at the address specified for notice to Landlord herein, all Rent and other indebtedness accrued to the date of
such repossession, plus Rent required to be paid by Tenant to Landlord during the remainder of the Term until the date of expiration of
the Term hereof as stated in Section 2 diminished by any net sums (if any) thereafter received by Landlord through reletting the
Premises during said period (after deducting expenses incurred by Landlord in reletting the Premises as provided in subparagraph (g)
below). In no event shall Tenant be entitled to any excess of any rental obtained by reletting over and above the rental herein reserved.
Actions to collect amounts due from Tenant to Landlord under this subparagraph may be brought from time to time, on one or more occasions,
without the necessity of Landlord’s waiting until expiration of the Term.

 

(g)           
In case of any uncured Event of Default or breach by Tenant, Tenant shall also be liable for and shall pay to Landlord, at the
address specified for notice to Landlord herein, in addition to any sum provided to be paid above, brokers’ fees incurred by Landlord
in connection with reletting the whole or any part of the Premises; the costs of removing and storing Tenant’s or other occupant’s
property; the costs of repairing, altering, remodeling or otherwise putting the Premises into condition acceptable to a new tenant or
tenants; and all reasonable expenses incurred by Landlord in enforcing or defending Landlord’s rights and/or remedies including
reasonable attorneys’ fees.

 

(h)            Tenant and Landlord agree that Landlord shall have a duty to make a “reasonable attempt” to relet the Premises in
the event Landlord has recaptured possession of the Premises due to an Event of Default beyond applicable notice and cure periods. Tenant
agrees that Landlord shall not be liable, nor shall Tenant’s obligations hereunder be diminished, because of Landlord’s failure
to actually relet the Premises or collect rent due with respect to such reletting so long as Landlord has fulfilled its duty to make
a “reasonable attempt” to relet. Landlord and Tenant agree that Landlord shall be conclusively deemed to have made a “reasonable
attempt” to relet the Premises by doing the following: (a) putting “For Rent” signs on the Premises; and (ii) hiring
a real estate broker who shall exercise due diligence in the leasing of the Premises.

 

(i)            
If Tenant should fail to make any payment or cure any default hereunder within the time herein permitted, Landlord, without being
under any obligation to do so and without thereby waiving such default, may make such payment and/or remedy such other default for the
account of Tenant (and enter the Premises for such purpose), and thereupon Tenant shall be obligated, and hereby agrees, to pay Landlord
upon demand, all costs, expenses and disbursements (including reasonable attorneys’ fees) incurred by Landlord in taking such remedial
action.

 

(j)            
In the event that Landlord shall have taken possession of the Premises pursuant to the authority herein granted, then Landlord
shall have the right to keep in place and use all of the furniture, fixtures and equipment at the Premises, including that which is owned
by or leased to Tenant at all times prior to any foreclosure thereon by Landlord or repossession thereof by any lessor thereof or third
party having a lien thereon. Landlord shall also have the right to remove from the Premises (without the necessity of obtaining a distress
warrant, writ of sequestration or other legal process) all or any portion of such furniture, fixtures, equipment and other property located
hereon and to place same in storage at any Premises within the county in which the Premises is located; and in such event, Tenant shall
be liable to Landlord for costs incurred by Landlord in connection with such removal and storage. Landlord shall also have the right to
relinquish possession of all or any portion of such furniture, fixtures, equipment and other property to any person (“Claimant”)
claiming to be entitled to possession thereof who presents to Landlord a copy of any instrument represented to Landlord by Claimant to
have been executed by Tenant (or any predecessor of Tenant) granting Claimant the right under various circumstances to take possession
of such furniture, fixtures, equipment or other property, without the necessity on the part of Landlord to inquire into the authenticity
of said instrument’s copy of Tenant’s or Tenant’s predecessor’s signature thereon and without the necessity of
Landlord making any nature of investigation or inquiry as to the validity of the factual or legal basis upon which Claimant purports to
act; and Tenant agrees to indemnify and hold Landlord harmless from all cost, expense, loss, damage and liability incident to Landlord’s
relinquishment of possession of all or any portion of such furniture, fixtures, equipment or other property to Claimant, except for such
costs, expenses, losses and damages caused by the negligence or willful misconduct of Landlord, its employees or agents. The rights of
Landlord herein stated shall be in addition to any and all other rights which Landlord has or may hereafter have at law or in equity;
and Tenant stipulates and agrees that the rights herein granted Landlord are commercially reasonable.

 

 

 

    	 	14	 

     

    

 

31.          
Tenant’s Remedies. In the event of any default by Landlord under this Lease, Tenant’s exclusive remedy shall
be an action for damages (Tenant hereby waiving the benefit of any laws granting it a lien upon the property of Landlord and/or upon Rent
due Landlord), but prior to any such action Tenant will give Landlord written notice specifying such default with particularity, and Landlord
shall thereupon have thirty (30) days in which to cure any such default. Unless and until Landlord fails to so cure any default after
such notice, Tenant shall not have any remedy or cause of action by reason thereof. All obligations of Landlord hereunder will be construed
as covenants, not conditions; and all such obligations will be binding upon Landlord only during the period of its possession of the Premises
and not thereafter. The term “Landlord” shall mean only the Landlord, for the time being of the interest in the Premises,
and in the event of the transfer by such Landlord of its interest in the Premises, such Landlord shall thereupon be released and discharged
from all covenants and obligations of Landlord thereafter accruing, but such covenants and obligations shall be binding during the Term
upon each new Landlord for the duration of such Landlord’s ownership. Notwithstanding any other provision hereof, Landlord shall
not have any personal liability hereunder. In the event of any breach or default by Landlord in any term or provision of this Lease, Tenant
agrees to look solely to the equity or interest then owned by Landlord in the Premises; however, in no event shall any deficiency judgment
or any money judgment of any kind be sought or obtained against any other assets of Landlord.

 

32.          
Landlord’s Lien. Landlord expressly waives any statutory or contractual Landlord’s lien against, or security
interest in, any of Tenant’s property, fixtures, furniture, inventory, equipment, products, materials or merchandise located in
the Premises or any other personal property located in the Premises.

 

33.          
Consequential Damages. In no event will either party be liable for any special, indirect or consequential damages, including
without limitation, in the case of the Landlord it will not be liable to Tenant for any loss of production, loss of market or loss of
sales by Tenant due to any interruption in or reduction of any service or utility provided to Tenant by Landlord, regardless of whether
such service or utility was either expressly provided for or implied under this Lease.

 

34.           
Severability. In case any one or more of the provisions contained in this Lease shall for any reason be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision thereof
and this Lease shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein.

 

35.           
Commission. Tenant and Landlord represent to one another that neither party has had any dealings with any real-estate broker
or agent regarding this transaction. Landlord shall indemnify Tenant from claims arising under Landlord, and Tenant shall indemnify Landlord
from claims arising under Tenant, for brokerage, commission, finders or other fees relative to this Lease and all costs, together with
expenses arising therefrom, and alleged to be due by authorization of the indemnifying party.

 

36.           
Rules and Regulations. Attached as Exhibit “C” is a copy of the current Rules and Regulations governing
Tenant’s activities in the Park. Upon execution of this Lease, Tenant agrees to abide by such Rules and Regulations, and upon receipt
of any modified Rules and Regulations, Tenant shall abide with said new Rules and Regulations. If Tenant violates these Rules and Regulations,
this Lease is subject to termination in Landlord’s sole discretion upon thirty (30) days notice and Tenant’s failure to cure
the same during such period.

 

37.           
Entire Agreement. This Lease constitutes the entire agreement of Landlord and Tenant with respect to the matters covered
hereby and those provisions of all prior agreements between the parties or entities owned or controlled in whole or in part by any party
hereto are, to the extent such prior agreements relate to matters covered hereby, merged into this Lease, and the terms of this Lease
shall in all respects be controlling over such portions of any such prior agreements.

 

 

 

    	 	15	 

     

    

 

38.           
Mechanics’ Liens. No work performed by Tenant pursuant to this Lease, whether in the nature of erection, construction,
alteration or repair, shall be deemed to be for the immediate use and benefit of Landlord so that no mechanics’ or other lien shall
be allowed against the estate of Landlord by reason of any consent given by Landlord to Tenant to improve the Premises. Tenant shall pay
promptly all persons that furnish labor or materials with respect to any work performed by Tenant or its Contractors on or about the Premises.
If any mechanics’ or other lien shall at any time be filed against the Premises or the property of which the Premises are a part,
by reason of work, labor, services or materials performed or furnished, or alleged to have been performed or furnished, to Tenant or to
anyone holding the Premises through or under Tenant, and regardless of whether any such lien is asserted against the interest of Landlord
or Tenant, Tenant shall forthwith cause the same to be discharged of record or bonded to the satisfaction of Landlord. If Tenant shall
fail to cause such lien forthwith to be so discharged or bonded after being notified of the filing thereof, then, in addition to any other
right or remedy of Landlord, Landlord may bond or discharge the same by paying the amount claimed to be due, and the amount so paid by
Landlord, including reasonable attorneys’ fees incurred by Landlord either in defending against such lien or in procuring the bonding
or discharge of such lien, together with interest thereon at ten percent (10%), shall be due and payable by Tenant to Landlord as Additional
Rent.

 

39.           
Estoppel Certificates. Each party to this Lease, at any time and from time to time, upon not less than ten (10) days prior
notice from either party hereto or from any current or potential lender to either party, to execute, acknowledge and deliver, without
charge, to the other party, to such lender, and/or to any other interested persons, a statement in writing certifying that this Lease
is in full force and effect and has not been modified in any way (or, if modified, identifying the modification by date and subject matter);
that the certifying party has not given or received any notice of termination or cancellation of this Lease not previously revoked (or,
if such is not the case, identifying the notice and grounds therefor); that, to the knowledge of the certifying party, neither party
is then in default hereunder (or, if to its knowledge any such default exists, specifying the same); that, to the knowledge of the certifying
party, the certifying party has no alleged claims or offsets against the other party respecting the payments due hereunder (or, if there
be any to its knowledge stating the nature thereof and, to the extent known, the amount or approximate amount thereof), and the dates
to which monthly rental payments, additional rent and, to the extent then known, other amounts due hereunder have been paid. The party
or persons requesting such certification shall prepare and submit to the certifying party the form of statement requested.

 

40.           
Compliance with Laws and Regulations. Tenant, at its sole cost and expense, shall comply with and shall cause the Premises
to comply with all rules, orders and regulations of the National Fire Protection Association, Landlord’s casualty insurer(s) and
other applicable insurance rating organizations or other bodies exercising similar functions in connection with the prevention of fire
or the correction of hazardous conditions.

 

41.           
No Joint Venture. Any intention to create a joint venture or partnership relation between the parties hereto is hereby expressly
disclaimed.

 

42.           
Governing Law. This Lease shall be construed and governed under the laws of the State of Texas.

 

43.           
Termination Right. Notwithstanding anything herein to the contrary and provided that Tenant is not in default of any of
its obligations under this Lease beyond applicable cure periods, commencing on the first day of month 1 of the Term and ending on the
last day of month 12 of the Term (“Termination Period”), Tenant shall have the one (1) time right to terminate this
Lease upon sixty (60) days prior written notice (“Termination Notice”) to Landlord. Tenant’s right to terminate
this Lease pursuant to this Section 43 is conditioned upon (1) timely delivering the Termination Notice to Landlord on or before the expiration
of the Termination Period and (2) payment in full by Tenant to Landlord on or before the effective termination date set forth in the Termination
Notice an amount equal to the sum of (a) two (2) calendar months of Rent (calculated at the rate which was in effect as of such effective
termination date), and (b) all legal expenses and fees (not to exceed $10,000.00 in the aggregate) paid for or incurred by or on behalf
of Landlord pursuant to this Lease (the “Termination Payment”). After Landlord’s receipt of the Termination Payment,
and so long as Tenant has surrendered the Premises in the condition required hereunder, neither party shall have any further obligations
or liabilities hereunder following the effective date of termination set forth in the Termination Notice, except those which, by the provisions
of this Lease, expressly survive the termination of this Lease. This provision shall survive the termination of this Lease.

 

[Signature
Page Follows]

 

 

 

    	 	16	 

     

    

 

EXECUTED this 15th day of
December, 2022.

 

	 	LANDLORD:
	 	 
	 	W & P DEVELOPMENT CORPORATION,
	 	a Texas corporation
	 	 
	 	 
	 	

By: /s/ Diron L. Blackburn

	 	Name: Diron L. Blackburn
	 	Title: President
	 	 
	 	 
	 	 
	 	TENANT:
	 	 
	 	

VIVAVENTURES REMEDIATION
CORP.,

	 	a Texas corporation
	 	 
	 	 
	 	

By: /s/ James Ballengee

	 	Name: James Ballengee
	 	Title: CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Land Lease Agreement]

 

 

 

    	 	17	 

     

    

 

 

EXHIBIT “A”

The PREMISES

 

3.443
acres of land, more or less, situated in the John Dunman Survey, Abstract 231, Harris County, Texas, being out of Tract 3 as more particularly
described in Exhibit A to that certain Special Warranty Deed dated January 27, 2012, from VNF, Inc., as Grantor, to W & P Development
Corporation, as Grantee, recorded as Instrument No. 20120039116, Official Public Records of Harris County, Texas, and more particularly
described as follows:

 

COMMENCING
at a 3/4 inch iron rod in the south line of the Victor Blanco five league grant, Abstract No. 2, same being in the South line of Magnolia
Gardens, an unrecorded subdivision, and in the meanders of the west top bank of the San Jacinto River at a 1/2 inch iron rods found at
each point for a corner, the following courses and distance:

 

South
08o 54’ 01” East, a distance of 108.96 feet;

South
00o 13’ 38” East, a distance of 142.67 feet;

South
04o 06’ 47” East, a distance of 216.45 feet;

South
17o 34’ 37” East, a distance of 125.94;

South
17o 18’ 26” East, a distance of 151.15 feet;

South
18o 55’ 39” East, a distance of 129.03 feet;

South
09o 21’ 50” East, a distance of 60.33 feet;

South
28o 54’ 52” East, a distance of 324.61;

South
23o 51’ 16” East, a distance of 79.48 feet;

South
33o 41’ 20” East, a distance of 79.07 feet;

South
22o 15’ 25” East, a distance of 62.32 feet;

 

THENCE
South 76o 43’ 35” West, along the north right-of-way of the S.P.T.C. Company Railroad (a 100 foot right-of-way), a distance
of 2,057.23 feet to a 1/2 inch iron rod found at a point for a corner;

 

THENCE
westerly, a distance of 1,070.68 feet along the arc of a curve to the left in said north right-of-way of the S.P.T.C. Company Railroad,
said curve having a central angle of 13o 03’ 51” and a radius of 4,695.69 feet, a chord which bears South 70o 11’
39” West, and a chord distance of 1,086.36 feet to a 1/2 inch iron rod found at a point for a corner;

 

THENCE
South 63o 39’ 44” West, along said north right-of-way of the S.P.T.C. Company Railroad, along said north right-of-way
of the S.P.T.C. railroad, a distance of 2,749.99 feet to a 1/2 inch iron rod found at a point for corner;

 

THENCE
North 54o 00’ 0” West a distance of 383 feet to a white post for a point on the north side of a private road;

 

THENCE
North 23o 45’ West a distance of 28 feet to the BEGINNING of this tract and its southwest corner;

 

THENCE
North 23o 45’ West a distance of 375 feet to the northwest corner of this tract;

 

THENCE
North 66o 45’ East a distance of 400 feet to the northeast corner of this tract;

 

THENCE
South 23o 45’ East a distance of 375 feet to the southeast corner of this tract;

 

THENCE
South 66o 45’ West a distance of 400 feet to the POINT OF BEGINNING.

 

 

 

    	 	A-1	 

     

    

 

EXHIBIT “B”

TCEQ Spill Reporting Requirements

Tenant Responsibility to Report Spills and Releases

Reporting spills and releases
of hazardous substances to the Texas Commission on Environmental Quality (TCEQ):

 

Pursuant to Texas Water Code
Section 26.039 each tenant is responsible for reporting spills and releases of hazardous substances caused by such tenant, its employees,
contractors, agents or representatives to the TCEQ as soon as possible and not later than twenty-four (24) hours after the occurrence.
These reports should be submitted to the TCEQ Region 12 office via telephone. The facility should report the following information:
(1) a description of the discharge such as the actual substance spilled, source, location, route and estimated volume of the spill;
(2) time of occurrence with dates and the cause of the spill; (3) any potential danger to human health or safety of the environment;
(4) actions taken to remediate the spill and actions taken to mitigate any adverse effects the spill may have caused on the environment;
and (5) steps taken or planned to prevent the recurrence of future spills.

 

W & P Development
Corporation, in its discretion shall also provide its tenants with emergency assistance such as emergency phone numbers, etc., in remediating
a spill.

 

TCEQ Region 12

5425 Polk Street, Suite H

Houston, Texas 77023-1423

713-767-3500

24 Hour: 512-463-7727

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	B-1	 

     

    

 

EXHIBIT “C”

Rules and Regulations

W & P Industrial Park

 

 

		1.	Signs. Detailed drawings and specifications for all proposed signs, including site information
signs, shall be submitted to Landlord for written approval, prior to installation, such approval not to be unreasonably withheld, conditioned
or delayed. All signs shall conform to the overall sign program established by Landlord and shall be of a design and material approved
by Landlord. Unless otherwise approved in writing by Landlord, all signs must be attached to a building, parallel to and contiguous with
its wall, and must not project above its roof line. No sign of a flashing or moving character shall be installed and no sign shall be
painted on a building wall.

 

		2.	Exterior Illumination. Tenants who wish to install illumination facilities shall have the design
approved by Landlord.

 

		3.	Ancillary Structures. All water towers, storage tanks, exterior processing equipment, fans, skylights,
cooling structures or equipment erected or placed in the Park by tenants must have written approval by Landlord, and shall be architecturally
compatible with the buildings in the Park.

 

		4.	Access. The use by each tenant of the private streets in the Park is limited to the access road(s)
referenced in the Lease. Tenants shall not permit their agents, employees, guests or representatives to use any other roads in the Park.
All traffic shall be limited by such speed limits as Landlord may adopt. The posted speed limit in the Park is 20 mph unless otherwise
posted. No tenant or the officers, agents, employees or guests of a tenant may use the roads in the Park for transport by overloaded vehicles,
by use of vehicles which are too large or heavy for use on the roads in the Park as may be determined by Landlord in its sole discretion,
or in any other manner which is destructive to the roads. All materials brought into the Park shall be accompanied by documentation sufficient
to identify the shipments. All materials shipped from the Park shall be accompanied by the tenant’s bills of lading.

 

		5.	Gate Passes. Permanent gate passes are available to tenants and their employees on request with
Landlord’s approval. Tenants will be furnished with application forms which must be completely filled out per the directions on
the application forms. Each pass is non-transferable and must be returned to Landlord when an employee no longer works for a tenant or
when the tenant’s lease agreement terminates. There will be a $5.00 charge for each non-returned pass. Landlord reserves the right
to search all non-motor vehicles entering or exiting the Park. Refusal to submit to this search may lead to Landlord refusing further
entry of the motor vehicle into the Park.

 

		6.	Security. Landlord reserves the right to adopt more restrictive security measures for the Park
to the extent suggested or required by the Department of Homeland Security or other entity with jurisdiction over such matters. In such
event, tenants will comply with all such security measures.

 

		7.	Notice. Any notice to Landlord or request for approval by Landlord shall be made in writing, and
shall be sent by certified or registered mail, postage prepaid, addressed as follows: W & P Development Corporation, 13641
Dublin Court, Stafford, Texas 77477. If any request for approval of a variance or exception to the Rules and Regulations is required,
is made to Landlord, Landlord shall, within thirty (30) days after the request is made, give the person making the request written notification
either of the approval by Landlord or of its rejection of the request with specification of the reasons for such rejection. Any written
approval, rejection or other communication by Landlord may be relied upon, as the act of Landlord, by the person receiving such approval,
rejection or other communication.

 

		8.	Enforcement. Landlord or any successor to Landlord as Landlord of the Park shall have the right
to enforce these Rules and Regulations set forth in this instrument against any person or persons violating or attempting to violate the
Rules and Regulations. Enforcement shall include, but not be limited to, proceedings at law or in equity against any tenant violating
or attempting to violate any covenants, either to restrain violation and/or to recover damages.

 

		9.	Amendments. Landlord may amend or supplement these Rules and Regulations at any time with thirty
(30) days written notice and such amended or supplemented Rules and Regulations will become effective upon mailing such revised Rules
and Regulations to tenants.

 

 

 

    	 	C-1	 

     

    

 

EXHIBIT “D”

INSURANCE REQUIREMENTS

W & P Industrial Park

 

 

 

 

 

 

See separate document titled
“SJRR Landlord’s Insurance Requirements of Tenant Pollution Required” attached to this lease document.

 

Tenant has received the above document:

BY: ______________________________

NAME: ___________________________

TITLE: ___________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    	 	D-1Exhibit
10.1

 

CONFIDENTIAL
SEPARATION AGREEMENT AND

GENERAL RELEASE OF ALL CLAIMS

 

This
Confidential Separation Agreement and General Release of All Claims, dated December 16, 2022 (the “Agreement”), is
made pursuant to that certain Change in Control and Executive Severance Plan Agreement effective as of October 4, 2021 (the “Severance
Agreement”) entered into by and between Gisela A. Paulsen, MPharm (“Employee”) on the one hand, and Oncocyte
Corporation (the “Company”), on the other. This Agreement is entered into in consideration for and as condition precedent
to the Company providing separation benefits to Employee pursuant to the Severance Agreement, as modified herein. It is understood and
agreed that the Company is not otherwise obligated to provide such benefits under the terms of the Severance Agreement and that the Company
is doing so as a direct result of Employee’s willingness to agree to the terms hereof. Collectively, Employee and the Company shall
be referred to as the “Parties.”

 

1. Employee
was formerly employed by the Company. Employee’s employment with the Company ended effective December 16, 2022 (the “Termination
Date”).

 

2. The
purpose of this Agreement is to resolve any and all disputes or claims that Employee may have relating to Employee’s employment
with the Company, and the termination thereof (the “Disputes”). The parties desire to resolve the above-referenced
Disputes, and all issues raised by the Disputes, without the further expenditure of time or the expense of contested litigation. Additionally,
the Parties desire to resolve any known or unknown claims that Employee may have as more fully set forth below. For these reasons, they
have entered into this Agreement.

 

3. Employee
acknowledges and agrees that Employee has received all wages due to Employee through the Termination Date, including but not limited
to all accrued but unused vacation, bonuses, commissions, options, benefits, and monies owed by the Company to Employee. Employee further
agrees and acknowledges that Employee has been fully paid and reimbursed for any and all business expenses which Employee incurred during
his/her employment with the Company. For the avoidance of doubt, Employee is not entitled to any bonus with respect to 2022 or any other
year.

 

4. The
Company expressly denies any violation of any federal, state or local statute, ordinance, rule, regulation, policy, order or other law.
The Company also expressly denies any liability to Employee. Nothing contained herein is to be construed as an admission of liability
on the part of the Company hereby released, by whom liability is expressly denied. accordingly, while this Agreement resolves all issues
referenced herein, it does not constitute an adjudication or finding on the merits of the allegations in the Disputes and it is not,
and shall not be construed as, an admission by the Company of any violation of federal, state or local statute, ordinance, rule, regulation,
policy, order or other law, or of any liability alleged in the Disputes.

 

    	1

     

    

 

5. In
consideration of and in return for the promises and covenants undertaken by the Company and Employee herein and the releases given by
Employee herein, and in exchange for Employee timely executing (and not revoking) this Agreement:

 

a. In
addition to providing Employee with the Accrued Obligations pursuant to Section 2.6 of the Severance Agreement (including payment of
91.84 hours of accrued but unused vacation), Employee shall receive the following benefits:

 

(i) A
payment in the total amount of Two Hundred Seven Thousand Five Hundred Dollars and Two Cents ($207,500.02) (minus applicable taxes, withholdings
and deductions), payable in substantially equal installments over the six (6) month period following the Termination Date in accordance
with the Company’s regular payroll practices; provided, however, that the first payment shall be made on the first regularly scheduled
payroll date on or following the thirtieth (30th) day following the Termination Date and shall include payments of any amounts that would
otherwise be due prior thereto;

 

(ii) Partial
acceleration and vesting and exercisability of Employee’s unvested stock option and restricted stock unit awards that were granted
pursuant to the Company’s Amended and Restated 2018 Equity Incentive Plan, as amended from time to time (the “Equity Plan”),
as follows:

 

		(A)	93,750
                                            unvested options to purchase the Company’s common stock at an exercise price of $3.42
                                            per share, which were granted under the Equity Plan and Incentive Stock Option Agreement
                                            effective as of October 4, 2021 (the “First Option Agreement”), shall
                                            vest as of the Termination Date, and the Company acknowledges that, upon such accelerated
                                            vesting, Employee shall have a total of 203,125 vested options from the First Option Agreement
                                            (the “First Vested Option Shares”);
	 	 	 
		(B)	54,687
                                            unvested options at an exercise price of $1.15 per share, which were granted to Employee
                                            pursuant to the Equity Plan and an Incentive Stock Option Agreement, dated March 15, 2022
                                            (the “Second Option Agreement” and collectively with the First Option
                                            Agreement, the “Option Agreements”), shall vest as of the Termination
                                            Date (which collectively with the First Vested Option Shares are referred to herein as the
                                            “Vested Option Shares”);
	 	 	 
		(C)	all
                                            175,000 unvested Restricted Stock Units, which were granted pursuant to the Equity Plan and
                                            a Restricted Stock Unit Award Agreement, dated August 15, 2022 (the “Time Vested
                                            RSU Award Agreement”), shall vest as of the Termination Date and be settled in
                                            accordance with the terms of the Equity Plan and the Time Vested RSU Award Agreement; and
	 	 	 
		(D)	175,000
                                            unvested Restricted Stock Units, which were granted pursuant to the Equity Plan and a Restricted
                                            Stock Unit Award Agreement, dated August 15, 2022 (the “Performance Vested RSU Award
                                            Agreement”, and collectively with Option Agreements and the Time Vested RSU Award
                                            Agreement, the “Equity Award Agreements”), shall vest as of the Termination
                                            Date and be settled in accordance with the terms of the Equity Plan and the Performance Vested
                                            RSU Award Agreement, and the remaining unvested restricted stock units granted under the
                                            Performance Vested RSU Award Agreement shall be automatically forfeited without consideration.

 

    	2

     

    

 

(iii) The
deadline to exercise the Vested Option Shares shall be extended to the earlier to occur of (A) the one-year anniversary of the Termination
Date and (B) the maximum term of the applicable Stock Option Agreement.

 

As
a condition to receiving and continuing to receive the payments and benefits under this Paragraph 5.a., Employee must (i) within but
not later than twenty-one (21) days after the Termination Date, execute (and not revoke) and deliver to the Company this Agreement and
(ii) remain in full compliance with this Agreement and the Surviving Provisions (as defined below). Employee shall not be entitled to
accrue any additional leave or other benefits subsequent to the Termination Date.

 

b. Any
tax liabilities resulting from or arising out of the benefits to Employee referred to above shall be the sole and exclusive responsibility
of Employee. Employee agrees to indemnify and hold the Company and the others released herein harmless from and for any tax liability
(including, but not limited to, assessments, interest, and penalties) imposed on the Company by any taxing authority on account of the
Company failing to withhold for tax purposes any amount from the benefits made as consideration of this Agreement.

 

c. Employee
acknowledges and agrees that (i) subject to the terms of the Severance Agreement (including Sections 1.9 and 2.2 thereof), any equity
granted pursuant to the Equity Plan that is unvested as of the Termination Date (after giving effect to Paragraph 5.a.(ii)), shall automatically
be forfeited as of the Termination Date for no consideration and (ii) any equity that is vested as of the Termination Date (including
pursuant to Paragraph 5.a.(ii)) shall be subject to the terms and conditions of the Equity Plan and applicable award agreement(s) (as
amended herein).

 

    	3

     

    

 

6. Except
for any rights created by this Agreement, in consideration of and in return for the promises and covenants undertaken herein by the Company,
and for other good and valuable consideration, receipt of which is hereby acknowledged:

 

a. Employee
does hereby acknowledge full and complete satisfaction of and does hereby release, absolve and discharge the Company, and each of its
parents, subsidiaries, divisions, related companies and business concerns, past and present, as well as each of its partners, trustees,
directors, members, officers, agents, attorneys, servants and employees, past and present, and each of them (hereinafter collectively
referred to as “Releasees”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits,
causes of action, grievances, wages, vacation payments, severance payments, obligations, commissions, overtime payments, debts, profit
sharing claims, expenses, damages, judgments, orders and liabilities of whatever kind or nature in law, equity or otherwise, whether
known or unknown to Employee which Employee now owns or holds or has at any time owned or held as against Releasees, or any of them,
including specifically but not exclusively and without limiting the generality of the foregoing, any and all claims, demands, grievances,
agreements, obligations and causes of action, known or unknown, suspected or unsuspected by Employee: (1) arising out of or in any way
connected with the Disputes; or (2) arising out of Employee’s employment (or termination thereof) with the Company (including,
but not limited to, under the Severance Agreement and/or Employee’s initial offer letter of employment from the Company, dated
as of October 4, 2021 and as amended by that subsequent offer letter of employment, dated as of August 8, 2022 (collectively, the “Offer
Letters”)); or (3) arising out of or in any way connected with any claim, loss, damage or injury whatever, known or unknown,
suspected or unsuspected, resulting from any act or omission by or on the part of the Releasees, or any of them, committed or omitted
on or before the Effective Date hereof. Also without limiting the generality of the foregoing, Employee specifically releases the Releasees
from any claim for attorneys’ fees arising out of any claims released herein. EMPLOYEE ALSO SPECIFICALLY AGREES AND ACKNOWLEDGES
EMPLOYEE IS WAIVING ANY RIGHT TO RECOVERY BASED ON LOCAL, STATE OR FEDERAL EMPLOYMENT LAWS OR REGULATIONS, OR ANY LOCAL, STATE, OR FEDERAL
AGE, SEX, PREGNANCY, RACE, COLOR, NATIONAL ORIGIN, MARITAL STATUS, RELIGION, VETERAN STATUS, DISABILITY, SEXUAL ORIENTATION, MEDICAL
CONDITION OR OTHER ANTI-DISCRIMINATION LAWS, INCLUDING, WITHOUT LIMITATION, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE AGE DISCRIMINATION
IN EMPLOYMENT ACT, THE EQUAL PAY ACT, THE AMERICANS WITH DISABILITIES ACT, THE FAMILY AND MEDICAL LEAVE ACT, THE EMPLOYEE RETIREMENT
INCOME SECURITY ACT, THE WORKER ADJUSTMENT AND RETRAINING ACT, THE FAIR LABOR STANDARDS ACT, AND ANY OTHER SECTION OF THE CALIFORNIA
LABOR OR GOVERNMENT CODE, THE INDUSTRIAL WELFARE COMMISSION WAGE ORDERS, ALL AS AMENDED, WHETHER SUCH CLAIM BE BASED UPON AN ACTION FILED
BY EMPLOYEE OR BY A GOVERNMENTAL AGENCY. This release does not release claims that cannot be released as a matter of law. Employee is
not (i) waiving Employee’s right to file a charge, testify, assist, or cooperate with the Equal Employment Opportunity Commission
(EEOC), Department of Fair Employment and Housing (DFEH) or similar governmental agency, (ii) waiving rights or claims that may arise
after the date Employee signs this Agreement, (iii) releasing claims for unemployment compensation benefits, workers’ compensation
benefits, those claims under the Fair Labor Standards Act which cannot be waived pre-litigation without Department of Labor or court
approval, health insurance benefits under the Consolidated Omnibus Budget Reconciliation Act (COBRA), or claims with regard to vested
benefits under a retirement plan governed by the Employee Retirement Income Security Act (ERISA); or (iv) releasing claims for indemnification,
advancement of expenses or insurance coverage under the Indemnification Agreement, dated October 4, 2021, between the Company and Employee
(the “Indemnification Agreement”), the articles of incorporation, bylaws or insurance policies of the Company or any
of its parent, subsidiary or affiliated entities, or pursuant to any applicable law, ordinance or regulation.

 

7. Employee
agrees and understands as follows: it is the intention of Employee in executing this instrument that it shall be effective as a bar to
each and every claim, demand, grievance and cause of action hereinabove specified. In furtherance of this intention, Employee hereby
expressly waives any and all rights and benefits conferred upon Employee by the provisions of section 1542 of the California Civil Code
(or any other similar state code) and expressly consents that this Agreement shall be given full force and effect according to each and
all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of action, if
any, as well as those relating to any other claims, demands and causes of action hereinabove specified. Section 1542 provides:

 

A
general release does not extend to claims that the creditor or releasing party does not know or suspect to exist in his or her favor
at the time of executing the release and that, if known by him or her, would have materially affected his or her settlement with the
debtor or released party.

 

Having
been so apprised, Employee nevertheless hereby voluntarily elects to and does waive the rights described in Civil Code section 1542 and
elects to assume all risks for claims that now exist in Employee’s favor, known or unknown, that are released under this Agreement.

 

    	4

     

    

 

8. Employee
acknowledges and agrees that (a) the entirety of the Employee Confidential Information and Inventions Assignment Agreement by and between
the Employee and the Company, effective October 5, 2021, shall remain in full force and effect and will continue to bind Employee following
the Termination Date in accordance with its terms; and (b) Section 3.6 (Covenants) of the Severance Agreement will continue to bind Employee
following the Termination Date in accordance with its term(collectively, all of the foregoing, the “Surviving Provisions”).
The Company and Employee acknowledge and agree that the Indemnification Agreement remains in full force and effect and will continue
to bind the Company following the Termination Date in accordance with its terms.

 

9. Employee
acknowledges and agrees that, as of the Termination Date, Employee will automatically be deemed to have resigned as an officer and any
and all other positions and/or titles with the Company and agrees to execute any and all documentation the Company requests to effectuate
the foregoing.

 

10. In
the event a government agency files or pursues a charge or complaint relating to Employee’s employment with the Company and/or
the disputes, Employee agrees not to accept any monetary or other benefits arising out of the charge or complaint.

 

11. Employee
agrees that Employee will not, whether in private or in public, whether orally or in writing, directly or indirectly, in public or in
private, make, publish, encourage, ratify, or authorize, or aid, assist, encourage, or direct any other person or entity in making or
publishing, any statements that in any way (i) defame, malign, disparage, or impugn the character, integrity, or ethics of the Releasees
(ii) portray any of the Releasees in a negative light, or (iii) damage the image or reputation of any of the Releasees. For avoidance
of doubt, nothing in this Paragraph 11 shall be construed in a manner that would violate any law. The Company agrees that it will instruct
its senior executives and board members not to make or publish negative or disparaging remarks that in any way relate to Employee. Nothing
in this Agreement prevents Employee from discussing or disclosing information about unlawful acts in the workplace, such as harassment
or discrimination or any other conduct that Employee has reason to believe is unlawful.

 

12. If
any provision of this Agreement or application thereof is held invalid, the invalidity shall not affect other provisions or applications
of the Agreement which can be given effect without the invalid provision or application. To this end, the provisions of this Agreement
are severable.

 

    	5

     

    

 

13. Employee
agrees and understands that this Agreement may be treated as a complete defense to any legal, equitable, or administrative action that
may be brought, instituted, or taken by Employee, or on Employee’s behalf, against the Company or the Releasees, and shall forever
be a complete bar to the commencement or prosecution of any claim, demand, lawsuit, charge, or other legal proceeding of any kind against
the Company and the Releasees.

 

14. This
Agreement and all covenants and releases set forth herein shall be binding upon and shall inure to the benefit of the respective Parties
hereto, their legal successors, heirs, assigns, partners, representatives, parent companies, subsidiary companies, agents, attorneys,
officers, employees, directors and stockholders.

 

15. The
Parties hereto acknowledge each has read this Agreement, that each fully understands its rights, privileges and duties under the Agreement,
that each has had an opportunity to consult with an attorney of its choice and that each enters this Agreement freely and voluntarily.

 

16. This
Agreement may not be released, discharged, abandoned, changed or modified in any manner, except by an instrument in writing signed by
Employee and an officer of the Company. The failure of any party to enforce at any time any of the provisions of this Agreement shall
in no way be construed as a waiver of any such provision, nor in any way to affect the validity of this Agreement or any part thereof
or the right of any party thereafter to enforce each and every such provision. No waiver of any breach of this Agreement shall be held
to be a waiver of any other or subsequent breach.

 

17. This
Agreement and the provisions contained herein shall not be construed or interpreted for or against any party hereto because that party
drafted or caused that party’s legal representative to draft any of its provisions.

 

18. Employee
acknowledges Employee may hereafter discover facts different from, or in addition to, those Employee now knows or believes to be true
with respect to the claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, wages, obligations, debts,
expenses, damages, judgments, orders and liabilities herein released, and agrees the release herein shall be and remain in effect in
all respects as a complete and general release as to all matters released herein, notwithstanding any such different or additional facts.

 

19. The
undersigned each acknowledge and represent that no promise or representation not contained in this Agreement has been made to them and
acknowledge and represent that this Agreement, the Equity Award Agreements (as modified herein), the Indemnification Agreement, and the
Severance Agreement contains the entire understanding between the parties and contains all terms and conditions pertaining to the compromise
and settlement of the subjects referenced herein. The undersigned further acknowledge that the terms of this Agreement are contractual
and not a mere recital.

 

    	6

     

    

 

20. Employee
expressly acknowledges, understands and agrees that this Agreement includes a release covering all legal rights or claims under the Age
Discrimination in Employment Act of 1967 (29 U.S.C. § 626, as amended), and all other federal, state, and local laws regarding age
discrimination, whether those claims are presently known to Employee or hereafter discovered. The terms and conditions of Paragraphs
20 through 22 apply to and are part of the waiver and release of ADEA claims under this Agreement. Company hereby advises Employee in
writing to discuss this Agreement with an attorney before signing. Employee acknowledges the Company has provided Employee at least twenty-one
(21) days within which to review and consider this Agreement before signing it. If Employee elects not to use all twenty-one
(21) days, then Employee knowingly and voluntarily waives any claim that Employee was not in fact given that period of time or did not
use the entire twenty-one (21) days to consult an attorney and/or consider this Agreement.

 

21. Within
three (3) calendar days of signing and dating this Agreement, Employee shall deliver the signed original of this Agreement
to the General Counsel of the Company. However, the Parties acknowledge and agree that Employee may revoke this Agreement for up to seven
(7) calendar days following Employee’s execution of this Agreement and that it shall not become effective or enforceable
until the revocation period has expired. The Parties further acknowledge and agree that such revocation must be in writing addressed
to and received by the General Counsel of the Company not later than midnight on the seventh day following execution of this Agreement
by Employee. If Employee fails to timely execute this Agreement or revokes this Agreement under this Paragraph, this Agreement shall
not be effective or enforceable and Employee will not receive the benefits described above, including those described in Paragraph 5.

 

22. If
Employee does not revoke this Agreement in the timeframe specified at Paragraph 21 above, the Agreement shall be effective at 12:00:01
a.m. on the eighth day after it is signed by Employee (the “Effective Date”).

 

23. This
Agreement is intended to be exempt from the requirements of section 409A of the Internal Revenue Code of 1986, as amended, and the rules
and regulations promulgated thereunder (“Section 409A”) and will be interpreted accordingly. While it is intended
that all payments and benefits provided under this Agreement to Employee or on behalf of Employee will be exempt from Section 409A, the
Company makes no representation or covenant to ensure that such payments and benefits are exempt from or compliant with Section 409A.
The Company will have no liability to Employee or any other party if a payment or benefit under this Agreement is challenged by any taxing
authority or is ultimately determined not to be exempt from or compliant with Section 409A. Each payment made under this Agreement will
be treated as a separate payment for purposes of Section 409A and the right to a series of installment payments under this Agreement
is to be treated as a right to a series of separate payments.

 

24. This
Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an original and such counterparts
shall together constitute one and the same Agreement.

 

    	7

     

    

 

25. It
is the intention of Employee and the Company that the Federal Arbitration Act and the California Arbitration Act shall apply with respect
to the arbitration of disputes, claims, and controversies pursuant to, arising under, or in connection with this Agreement. Except for
injunctive proceedings against unauthorized disclosure of confidential information or other actual or threatened breach of this Agreement
that may cause irreparable and continuing injury to the Company or its subsidiaries or affiliates for which there is no adequate remedy
at law (and upon the issuance or denial of an injunction the underlying merits of any dispute will be resolved in accordance with the
remainder of this Paragraph), any and all claims or controversies between Company or any subsidiary and Employee, including but not limited
to (a) those involving the construction or application of any of the terms, provisions, or conditions of this Agreement; (b) all contract
or tort claims of any kind; (c) all claims relating to Employee’s employment with the Company or the termination thereof; and (d)
any claim based on any federal, state, or local law, statute, regulation, or ordinance, shall be settled by arbitration in accordance
with the then current Employment Arbitration Rules & Procedures of the Judicial Arbitration and Mediation Service (“JAMS”),
as selected by Company or a subsidiary. A copy of the JAMS Employment Arbitration Rules & Procedures is available by visiting www.jamsadr.com/rules-employment-arbitration/
or www.jamsadr.com. Judgment on the award rendered by the arbitrator(s) may be entered by any court having jurisdiction over the Company
and Employee. The location of the arbitration shall be San Francisco, California. Unless the Company or subsidiary and Employee mutually
agree otherwise, the arbitrator shall be a retired judge selected from a panel provided by JAMS. The Company, or a subsidiary, if the
subsidiary is a party to the arbitration proceeding, shall pay the arbitrator’s fees and costs. Employee shall pay for Employee’s
own costs and attorneys’ fees, if any. The Company and any subsidiary that is a party to an arbitration proceeding shall pay for
its own costs and attorneys’ fees, if any. However, if any party prevails on a statutory claim which affords the prevailing party
attorneys’ fees, the arbitrator may award reasonable attorneys’ fees and costs to the prevailing party. EMPLOYEE UNDERSTANDS
AND AGREES THAT THIS AGREEMENT TO ARBITRATE CONSTITUTES A WAIVER OF EMPLOYEE’S RIGHT TO A TRIAL BY JURY OF ANY MATTERS COVERED
BY THIS AGREEMENT TO ARBITRATE. Nothing in this Paragraph shall be construed in a manner that would violate any law.

 

26. This
Agreement shall be construed in accordance with, and be deemed governed by the laws of the State of California, without reference to
the conflict of law provisions thereof.

 

27. The
Company executes this Agreement for itself and on behalf of all other respective Releasees.

 

Employee
has read the foregoing Confidential Separation Agreement and General Release of All Claims, and Employee accepts and agrees to the provisions
contained therein and hereby executes it voluntarily and with full understanding of its consequences.

 

PLEASE
READ CAREFULLY. THIS AGREEMENT CONTAINS A GENERAL

RELEASE
OF ALL KNOWN AND UNKNOWN CLAIMS.

 

    	8

     

    

 

	Dated:
	12/16/2022
	 	/s/
                                            Gisela A. Paulsen, MPharm

	 	 		Gisela
                                            Paulsen, MPharm,
		 	 	 
	Dates:	12/16/2022	 	Onocyte
    Corporation
	 	 	 	 
	 	 	 	/s/ Andy Arno
	 	 	 	Name:	Andy
    Arno
	 	 	 	Title:	Chairman
    of the Board of Directors

 

Signature
Page to Confidential Separation Agreement and General Release of All Claims – Gisela A. Paulsen, MPharm

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