Document:

Exhibit 10.13

 

AIR COMMERCIAL REAL ESTATE ASSOCIATION

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE -- NET

 

(DO NOT USE THIS FORM FOR MULTI-TENANT BUILDINGS)

 

1.                 
Basic Provisions (“Basic Provisions”).

 

1.1             
Parties: This Lease (“Lease”), dated for reference purposes only January 9, 2017, is
made by and between Hellyer-DMHall Properties, LLC (“Lessor”) and Velodyne LiDAR, Inc. (“Lessee”),
(collectively the “Parties,” or individually a “Party”).

 

1.2             
Premises: That certain real property, including all improvements therein or to be provided by Lessor under the terms
of this Lease, and commonly known as 5521 Hellyer Avenue, San Jose, located in the County of Santa Clara, State of California and
generally described as (describe briefly the nature of the property and, if applicable, the “Project”, if the
property is located within a Project) that approximately 203,807 square foot R&D/Manufacturing building on that approximately
11.9 acre parcel (“Premises”). (See also Paragraph 2)

 

1.3             
Term: Five(5) years and zero (0) months (“Original Term”) commencing January 1, 2017 (“Commencement
Date”) and ending December 31, 2021 (“Expiration Date”). (See also Paragraph 3)

 

1.4             
Early Possession: If the Premises are available Lessee may have non-exclusive possession of the Premises commencing
not applicable (“N/A”) (“Early Possession Date”). (See also Paragraphs 3.2 and 3.3)

 

1.5             
Base Rent: $234,380.00 per month (“Base Rent”), payable on the first (1st) day of each month commencing
February 1, 2017. (See also Paragraph 4)

 

☐
If this box is checked, there are provisions in this Lease for the Base Rent to be adjusted. See Paragraph _____.

 

1.6             
Base Rent and Other Monies Paid Upon Execution:

 

(a)               
Base Rent: $234,380.00 for the period January 1, 2017 - January 31, 2017.

 

(b)              
Security Deposit: $234,380.00 (“Security Deposit”). (See also Paragraph 5)

 

(c)               
Association Fees: $0.00 for the period N/A

 

(d)              
Other: $0.00 for N/A

 

(e)              
Total Due Upon Execution of this Lease: $468,760.00.

 

1.7             
Agreed Use: General office, research and development, manufacturing, storage and all other applicable legal uses.
(See also Paragraph 6)

 

1.8             
Insuring Party: Lessor is the “Insuring Party” unless otherwise stated herein. (See also Paragraph
8)

 

1.9             
Real Estate Brokers: (See also Paragraph 15 and 25)

 

(a)               
Representation: The following real estate brokers (the “Brokers”) and brokerage relationships
exist in this transaction (check applicable boxes):

 

☐
_________________________ represents Lessor exclusively (“Lessor’s Broker”);

 

    PAGE 1 OF 45

     

    

 

☐
_________________________ represents Lessee exclusively (“Lessee’s Broker”); or

 

☐
_________________________ represents both Lessor and Lessee (“Dual Agency”).

 

(b)              
Payment to Brokers: Upon execution and delivery of this Lease by both Parties, Lessor shall
pay to the Brokers the brokerage fee agreed to in a separate written agreement (or if there is no such agreement, the sum of _____
or _____% of the total Base Rent) for the brokerage services rendered by the Brokers.

 

1.10         
Guarantor. The obligations of the Lessee under this Lease are to be guaranteed by N/A (“Guarantor”).
(See also Paragraph 37)

 

1.11         
Attachments. Attached hereto are the following, all of which constitute a part of this Lease:

 

	x	an Addendum consisting of Paragraphs _______________
through _______________;

 

	 ̈	a plot plan depicting the Premises;

 

	 ̈	a current set of the Rules and Regulations;

 

	 ̈	a Work Letter;

 

	 ̈	other (specify):	 

 

 

 

2.                 
Premises.

 

2.1             
Letting. Lessor hereby leases to Lessee, and Lessee hereby leases from Lessor, the Premises, for the term, at the
rental, and upon all of the terms, covenants and conditions set forth in this Lease. While the approximate square footage of the
Premises may have been used in the marketing of the Premises for purposes of comparison, the Base Rent stated herein is NOT tied
to square footage and is not subject to adjustment should the actual size be determined to be different. Note: Lessee is advised
to verify the actual size prior to executing this Lease.

 

2.2             
Condition. Lessor shall deliver the Premises to Lessee broom clean and free of debris on the Commencement Date or
the Early Possession Date, whichever first occurs (“Start Date”), and, so long as the required service contracts
described in Paragraph 7.1(b) below are obtained by Lessee and in effect within thirty days following the Start Date, warrants
that the existing electrical, plumbing, fire sprinkler, lighting, heating, ventilating and air conditioning systems (“HVAC”),
loading doors, sump pumps, if any, and all other such elements in the Premises, other than those constructed by Lessee, shall be
in good operating condition on said date, that the structural elements of the roof, bearing walls and foundation of any buildings
on the Premises (the “Building”) shall be free of material defects, and that the Premises do not contain hazardous
levels of any mold or fungi defined as toxic under applicable state or federal law. If a non-compliance with said warranty exists
as of the Start Date, or if one of such systems or elements should malfunction or fail within the appropriate warranty period,
Lessor shall, as Lessor’s sole obligation with respect to such matter, except as otherwise provided in this Lease, promptly
after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, malfunction
or failure, rectify same at Lessor’s expense. The warranty periods shall be as follows: (i) 6 months as to the HVAC systems,
and (ii) 30 days as to the remaining systems and other elements of the Building. If Lessee does not give Lessor the required notice
within the appropriate warranty period, correction of any such non-compliance, malfunction or failure shall be the obligation of
Lessee at Lessee’s sole cost and expense. Lessor also warrants, that unless otherwise specified in writing, Lessor is unaware
of (i) any recorded Notices of Default affecting the Premise; (ii) any delinquent amounts due under any loan secured by the Premises;
and (iii) any bankruptcy proceeding affecting the Premises.

 

     

     

    

 

2.3             
Compliance. Lessor warrants that to the best of its knowledge the improvements on the Premises comply with the building
codes, applicable laws, covenants or restrictions of record, regulations, and ordinances (“Applicable Requirements”)
that were in effect at the time that each improvement, or portion thereof, was constructed. Said warranty does not apply to the
use to which Lessee will put the Premises, modifications which may be required by the Americans with Disabilities Act or any similar
laws as a result of Lessee’s use (see Paragraph 50), or to any Alterations or Utility Installations (as defined in Paragraph
7.3(a)) made or to be made by Lessee. NOTE: Lessee is responsible for determining whether or not the Applicable Requirements,
and especially the zoning, are appropriate for Lessee’s intended use, and acknowledges that past uses of the Premises may
no longer be allowed. If the Premises do not comply with said warranty, Lessor shall, except as otherwise provided, promptly
after receipt of written notice from Lessee setting forth with specificity the nature and extent of such non-compliance, rectify
the same at Lessor’s expense. If Lessee does not give Lessor written notice of a non-compliance with this warranty within
6 months following the Start Date, correction of that non-compliance shall be the obligation of Lessee at Lessee’s sole cost
and expense. If the Applicable Requirements are hereafter changed so as to require during the term of this Lease the construction
of an addition to or an alteration of the Premises and/or Building, the remediation of any Hazardous Substance, or the reinforcement
or other physical modification of the Unit, Premises and/or Building (“Capital Expenditure”), Lessor and Lessee
shall allocate the cost of such work as follows:

 

(a)               
Subject to Paragraph 2.3(c) below, if such Capital Expenditures are required as a result of the specific and unique use
of the Premises by Lessee as compared with uses by tenants in general, Lessee shall be fully responsible for the cost thereof,
provided, however that if such Capital Expenditure is required during the last 2 years of this Lease and the cost thereof exceeds
6 months’ Base Rent, Lessee may instead terminate this Lease unless Lessor notifies Lessee, in writing, within 10 days after
receipt of Lessee’s termination notice that Lessor has elected to pay the difference between the actual cost thereof and
an amount equal to 6 months’ Base Rent. If Lessee elects termination, Lessee shall immediately cease the use of the Premises
which requires such Capital Expenditure and deliver to Lessor written notice specifying a termination date at least 90 days thereafter.
Such termination date shall, however, in no event be earlier than the last day that Lessee could legally utilize the Premises without
commencing such Capital Expenditure.

 

     

     

    

 

(b)              
If such Capital Expenditure is not the result of the specific and unique use of the Premises by Lessee (such as, governmentally
mandated seismic modifications), then Lessor shall pay for such Capital Expenditure and Lessee shall only be obligated to pay,
each month during the remainder of the term of this Lease or any extension thereof, on the date that on which the Base Rent is
due, an amount equal to 1/144th of the portion of such costs reasonably attributable to the Premises. Lessee shall pay Interest
on the balance but may prepay its obligation at any time. If, however, such Capital Expenditure is required during the last 2 years
of this Lease or if Lessor reasonably determines that it is not economically feasible to pay its share thereof, Lessor shall have
the option to terminate this Lease upon 90 days prior written notice to Lessee unless Lessee notifies Lessor, in writing, within
10 days after receipt of Lessor’s termination notice that Lessee will pay for such Capital Expenditure. If Lessor does not
elect to terminate, and fails to tender its share of any such Capital Expenditure, Lessee may advance such funds and deduct same,
with Interest, from Rent until Lessor’s share of such costs have been fully paid. If Lessee is unable to finance Lessor’s
share, or if the balance of the Rent due and payable for the remainder of this Lease is not sufficient to fully reimburse Lessee
on an offset basis, Lessee shall have the right to terminate this Lease upon 30 days written notice to Lessor.

 

(c)               
Notwithstanding the above, the provisions concerning Capital Expenditures are intended to apply only to non-voluntary, unexpected,
and new Applicable Requirements. If the Capital Expenditures are instead triggered by Lessee as a result of an actual or proposed
change in use, change in intensity of use, or modification to the Premises then, and in that event, Lessee shall either: (i) immediately
cease such changed use or intensity of use and/or take such other steps as may be necessary to eliminate the requirement for such
Capital Expenditure, or (ii) complete such Capital Expenditure at its own expense. Lessee shall not, however, have any right to
terminate this Lease.

 

2.4             
Acknowledgements. Lessee acknowledges that: (a) it has been given an opportunity to inspect and measure the Premises,
(b) it has been advised by Lessor and/or Brokers to satisfy itself with respect to the size and condition of the Premises (including
but not limited to the electrical, HVAC and fire sprinkler systems, security, environmental aspects, and compliance with Applicable
Requirements and the Americans with Disabilities Act), and their suitability for Lessee’s intended use, (c) Lessee has made
such investigation as it deems necessary with reference to such matters and assumes all responsibility therefor as the same relate
to its occupancy of the Premises, (d) it is not relying on any representation as to the size of the Premises made by Brokers or
Lessor, (e) the square footage of the Premises was not material to Lessee’s decision to lease the Premises and pay the Rent
stated herein, and (f) neither Lessor, Lessor’s agents, nor Brokers have made any oral or written representations or warranties
with respect to said matters other than as set forth in this Lease. In addition, Lessor acknowledges that: (i) Brokers have made
no representations, promises or warranties concerning Lessee’s ability to honor the Lease or suitability to occupy the Premises,
and (ii) it is Lessor’s sole responsibility to investigate the financial capability and/or suitability of all proposed tenants.

 

     

     

    

 

2.5             
Lessee as Prior Owner/Occupant. The warranties made by Lessor in Paragraph 2 shall be of no force or effect if immediately
prior to the Start Date Lessee was the owner or occupant of the Premises. In such event, Lessee shall be responsible for any necessary
corrective work.

 

3.                 
Term.

 

3.1             
Term. The Commencement Date, Expiration Date and Original Term of this Lease are as specified in Paragraph 1.3.

 

3.2             
Early Possession. Any provision herein granting Lessee Early Possession of the Premises is subject to and conditioned
upon the Premises being available for such possession prior to the Commencement Date. Any grant of Early Possession only conveys
a non-exclusive right to occupy the Premises. If Lessee totally or partially occupies the Premises prior to the Commencement Date,
the obligation to pay Base Rent shall be abated for the period of such Early Possession. All other terms of this Lease (including
but not limited to the obligations to pay Real Property Taxes and insurance premiums and to maintain the Premises) shall be in
effect during such period. Any such Early Possession shall not affect the Expiration Date.

 

3.3             
Delay In Possession. Lessor agrees to use its best commercially reasonable efforts to deliver possession of the Premises
to Lessee by the Commencement Date. If, despite said efforts, Lessor is unable to deliver possession by such date, Lessor shall
not be subject to any liability therefor, nor shall such failure affect the validity of this Lease or change the Expiration Date.
Lessee shall not, however, be obligated to pay Rent or perform its other obligations until Lessor delivers possession of the Premises
and any period of rent abatement that Lessee would otherwise have enjoyed shall run from the date of delivery of possession and
continue for a period equal to what Lessee would otherwise have enjoyed under the terms hereof, but minus any days of delay caused
by the acts or omissions of Lessee. If possession is not delivered within 60 days after the Commencement Date, as the same may
be extended under the terms of any Work Letter executed by Parties, Lessee may, at its option, by notice in writing within 10 days
after the end of such 60 day period, cancel this Lease, in which event the Parties shall be discharged from all obligations hereunder.
If such written notice is not received by Lessor within said 10 day period, Lessee’s right to cancel shall terminate. If
possession of the Premises is not delivered within 120 days after the Commencement Date, this Lease shall terminate unless other
agreements are reached between Lessor and Lessee, in writing.

 

3.4             
Lessee Compliance. Lessor shall not be required to deliver possession of the Premises to Lessee until Lessee complies
with its obligation to provide evidence of insurance (Paragraph 8.5). Pending delivery of such evidence, Lessee shall be required
to perform all of its obligations under this Lease from and after the Start Date, including the payment of Rent, notwithstanding
Lessor’s election to withhold possession pending receipt of such evidence of insurance. Further, if Lessee is required to
perform any other conditions prior to or concurrent with the Start Date, the Start Date shall occur but Lessor may elect to withhold
possession until such conditions are satisfied.

 

     

     

    

 

4.                 
Rent.

 

4.1             
Rent Defined. All monetary obligations of Lessee to Lessor under the terms of this Lease (except for the Security
Deposit) are deemed to be rent (“Rent”).

 

4.2             
Payment. Lessee shall cause payment of Rent to be received by Lessor in lawful money of the United States, without
offset or deduction (except as specifically permitted in this Lease), on or before the day on which it is due. All monetary amounts
shall be rounded to the nearest whole dollar. In the event that any invoice prepared by Lessor is inaccurate such inaccuracy shall
not constitute a waiver and Lessee shall be obligated to pay the amount set forth in this Lease. Rent for any period during the
term hereof which is for less than one full calendar month shall be prorated based upon the actual number of days of said month.
Payment of Rent shall be made to Lessor at its address stated herein or to such other persons or place as Lessor may from time
to time designate in writing. Acceptance of a payment which is less than the amount then due shall not be a waiver of Lessor’s
rights to the balance of such Rent, regardless of Lessor’s endorsement of any check so stating. In the event that any check,
draft, or other instrument of payment given by Lessee to Lessor is dishonored for any reason, Lessee agrees to pay to Lessor the
sum of $25 in addition to any Late Charge and Lessor, at its option, may require all future Rent be paid by cashier’s check.
Payments will be applied first to accrued late charges and attorney’s fees, second to accrued interest, then to Base Rent,
Insurance and Real Property Taxes, and any remaining amount to any other outstanding charges or costs.

 

4.3             
Association Fees. In addition to the Base Rent, Lessee shall pay to Lessor each month an amount equal to any owner’s
association or condominium fees levied or assessed against the Premises. Said monies shall be paid at the same time and in the
same manner as the Base Rent.

 

5.                 
Security Deposit. Lessee shall deposit with Lessor upon execution hereof the Security Deposit as security for Lessee’s
faithful performance of its obligations under this Lease. If Lessee fails to pay Rent, or otherwise Defaults under this Lease,
Lessor may use, apply or retain all or any portion of said Security Deposit for the payment of any amount already due Lessor, for
Rents which will be due in the future, and/ or to reimburse or compensate Lessor for any liability, expense, loss or damage which
Lessor may suffer or incur by reason thereof. If Lessor uses or applies all or any portion of the Security Deposit, Lessee shall
within 10 days after written request therefor deposit monies with Lessor sufficient to restore said Security Deposit to the full
amount required by this Lease. If the Base Rent increases during the term of this Lease, Lessee shall, upon written request from
Lessor, deposit additional monies with Lessor so that the total amount of the Security Deposit shall at all times bear the same
proportion to the increased Base Rent as the initial Security Deposit bore to the initial Base Rent. Should the Agreed Use be amended
to accommodate a material change in the business of Lessee or to accommodate a sublessee or assignee, Lessor shall have the right
to increase the Security Deposit to the extent necessary, in Lessor’s reasonable judgment, to account for any increased wear
and tear that the Premises may suffer as a result thereof. If a change in control of Lessee occurs during this Lease and following
such change the financial condition of Lessee is, in Lessor’s reasonable judgment, significantly reduced, Lessee shall deposit
such additional monies with Lessor as shall be sufficient to cause the Security Deposit to be at a commercially reasonable level
based on such change in financial condition. Lessor shall not be required to keep the Security Deposit separate from its general
accounts. Within 90 days after the expiration or termination of this Lease, Lessor shall return that portion of the Security Deposit
not used or applied by Lessor. Lessor shall upon written request provide Lessee with an accounting showing how that portion of
the Security Deposit that was not returned was applied. No part of the Security Deposit shall be considered to be held in trust,
to bear interest or to be prepayment for any monies to be paid by Lessee under this Lease. THE SECURITY DEPOSIT SHALL NOT BE USED
BY LESSEE IN LIEU OF PAYMENT OF THE LAST MONTH’S RENT.

 

     

     

    

 

6.                 
Use.

 

6.1             
Use. Lessee shall use and occupy the Premises only for the Agreed Use, or any other legal use which is reasonably
comparable thereto, and for no other purpose. Lessee shall not use or permit the use of the Premises in a manner that is unlawful,
creates damage, waste or a nuisance, or that disturbs occupants of or causes damage to neighboring premises or properties. Other
than guide, signal and seeing eye dogs, Lessee shall not keep or allow in the Premises any pets, animals, birds, fish, or reptiles.
Lessor shall not unreasonably withhold or delay its consent to any request for a modification of the Agreed Use, so long as the
same will not impair the structural integrity of the improvements on the Premises or the mechanical or electrical systems therein,
and/or is not significantly more burdensome to the Premises. If Lessor elects to withhold consent, Lessor shall within 7 days after
such request give written notification of same, which notice shall include an explanation of Lessor’s objections to the change
in the Agreed Use.

 

6.2             
Hazardous Substances.

 

(a)               
Reportable Uses Require Consent. The term “Hazardous Substance” as used in this Lease shall mean
any product, substance, or waste whose presence, use, manufacture, disposal, transportation, or release, either by itself or in
combination with other materials expected to be on the Premises, is either: (i) potentially injurious to the public health, safety
or welfare, the environment or the Premises, (ii) regulated or monitored by any governmental authority, or (iii) a basis for potential
liability of Lessor to any governmental agency or third party under any applicable statute or common law theory. Hazardous Substances
shall include, but not be limited to, hydrocarbons, petroleum, gasoline, and/or crude oil or any products, by-products or fractions
thereof. Lessee shall not engage in any activity in or on the Premises which constitutes a Reportable Use of Hazardous Substances
without the express prior written consent of Lessor and timely compliance (at Lessee’s expense) with all Applicable Requirements.
 “Reportable Use” shall mean (i) the installation or use of any above or below ground storage tank, (ii) the
generation, possession, storage, use, transportation, or disposal of a Hazardous Substance that requires a permit from, or with
respect to which a report, notice, registration or business plan is required to be filed with, any governmental authority, and/or
(iii) the presence at the Premises of a Hazardous Substance with respect to which any Applicable Requirements requires that a notice
be given to persons entering or occupying the Premises or neighboring properties. Notwithstanding the foregoing, Lessee may use
any ordinary and customary materials reasonably required to be used in the normal course of the Agreed Use, ordinary office supplies
(copier toner, liquid paper, glue, etc.) and common household cleaning materials, so long as such use is in compliance with all
Applicable Requirements, is not a Reportable Use, and does not expose the Premises or neighboring property to any meaningful risk
of contamination or damage or expose Lessor to any liability therefor. In addition, Lessor may condition its consent to any Reportable
Use upon receiving such additional assurances as Lessor reasonably deems necessary to protect itself, the public, the Premises
and/or the environment against damage, contamination, injury and/or liability, including, but not limited to, the installation
(and removal on or before Lease expiration or termination) of protective modifications (such as concrete encasements) and/or increasing
the Security Deposit.

 

     

     

    

 

(b)              
Duty to Inform Lessor. If Lessee knows, or has reasonable cause to believe, that a Hazardous Substance has come to
be located in, on, under or about the Premises, other than as previously consented to by Lessor, Lessee shall immediately give
written notice of such fact to Lessor, and provide Lessor with a copy of any report, notice, claim or other documentation which
it has concerning the presence of such Hazardous Substance.

 

(c)               
Lessee Remediation. Lessee shall not cause or permit any Hazardous Substance to be spilled or released in, on, under,
or about the Premises (including through the plumbing or sanitary sewer system) and shall promptly, at Lessee’s expense,
comply with all Applicable Requirements and take all investigatory and/or remedial action reasonably recommended, whether or not
formally ordered or required, for the cleanup of any contamination of, and for the maintenance, security and/or monitoring of the
Premises or neighboring properties, that was caused or materially contributed to by Lessee, or pertaining to or involving any Hazardous
Substance brought onto the Premises during the term of this Lease, by or for Lessee, or any third party.

 

(d)              
Lessee Indemnification. Lessee shall indemnify, defend and hold Lessor, its agents, employees, lenders and ground
lessor, if any, harmless from and against any and all loss of rents and/or damages, liabilities, judgments, claims, expenses, penalties,
and attorneys’ and consultants’ fees arising out of or involving any Hazardous Substance brought onto the Premises
by or for Lessee, or any third party (provided, however, that Lessee shall have no liability under this Lease with respect to underground
migration of any Hazardous Substance under the Premises from adjacent properties not caused or contributed to by Lessee). Lessee’s
obligations shall include, but not be limited to, the effects of any contamination or injury to person, property or the environment
created or suffered by Lessee, and the cost of investigation, removal, remediation, restoration and/or abatement, and shall survive
the expiration or termination of this Lease. No termination, cancellation or release agreement entered into by Lessor and Lessee
shall release Lessee from its obligations under this Lease with respect to Hazardous Substances, unless specifically so agreed
by Lessor in writing at the time of such agreement.

 

     

     

    

 

(e)              
Lessor Indemnification. Except as otherwise provided in paragraph 8.7, Lessor and its successors and assigns shall
indemnify, defend, reimburse and hold Lessee, its employees and lenders, harmless from and against any and all environmental damages,
including the cost of remediation, which result from Hazardous Substances which existed on the Premises prior to Lessee’s
occupancy or which are caused by the gross negligence or willful misconduct of Lessor, its agents or employees. Lessor’s
obligations, as and when required by the Applicable Requirements, shall include, but not be limited to, the cost of investigation,
removal, remediation, restoration and/or abatement, and shall survive the expiration or termination of this Lease.

 

(f)                
Investigations and Remediations. Lessor shall retain the responsibility and pay for any investigations or remediation
measures required by governmental entities having jurisdiction with respect to the existence of Hazardous Substances on the Premises
prior to Lessee’s occupancy, unless such remediation measure is required as a result of Lessee’s use (including “Alterations”,
as defined in paragraph 7.3(a) below) of the Premises, in which event Lessee shall be responsible for such payment. Lessee shall
cooperate fully in any such activities at the request of Lessor, including allowing Lessor and Lessor’s agents to have reasonable
access to the Premises at reasonable times in order to carry out Lessor’s investigative and remedial responsibilities.

 

(g)               
Lessor Termination Option. If a Hazardous Substance Condition (see Paragraph 9.1(e)) occurs during the term of this
Lease, unless Lessee is legally responsible therefor (in which case Lessee shall make the investigation and remediation thereof
required by the Applicable Requirements and this Lease shall continue in full force and effect, but subject to Lessor’s rights
under Paragraph 6.2(d) and Paragraph 13), Lessor may, at Lessor’s option, either (i) investigate and remediate such Hazardous
Substance Condition, if required, as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue
in full force and effect, or (ii) if the estimated cost to remediate such condition exceeds 12 times the then monthly Base Rent
or $100,000, whichever is greater, give written notice to Lessee, within 30 days after receipt by Lessor of knowledge of the occurrence
of such Hazardous Substance Condition, of Lessor’s desire to terminate this Lease as of the date 60 days following the date
of such notice. In the event Lessor elects to give a termination notice, Lessee may, within 10 days thereafter, give written notice
to Lessor of Lessee’s commitment to pay the amount by which the cost of the remediation of such Hazardous Substance Condition
exceeds an amount equal to 12 times the then monthly Base Rent or $100,000, whichever is greater. Lessee shall provide Lessor with
said funds or satisfactory assurance thereof within 30 days following such commitment. In such event, this Lease shall continue
in full force and effect, and Lessor shall proceed to make such remediation as soon as reasonably possible after the required funds
are available. If Lessee does not give such notice and provide the required funds or assurance thereof within the time provided,
this Lease shall terminate as of the date specified in Lessor’s notice of termination.

 

     

     

    

 

6.3             
Lessee’s Compliance with Applicable Requirements. Except as otherwise provided in this Lease, Lessee shall,
at Lessee’s sole expense, fully, diligently and in a timely manner, materially comply with all Applicable Requirements, the
requirements of any applicable fire insurance underwriter or rating bureau, and the recommendations of Lessor’s engineers
and/or consultants which relate in any manner to the Premises, without regard to whether said Applicable Requirements are now in
effect or become effective after the Start Date. Lessee shall, within 10 days after receipt of Lessor’’s written request,
provide Lessor with copies of all permits and other documents, and other information evidencing Lessee’s compliance with
any Applicable Requirements specified by Lessor, and shall immediately upon receipt, notify Lessor in writing (with copies of any
documents involved) of any threatened or actual claim, notice, citation, warning, complaint or report pertaining to or involving
the failure of Lessee or the Premises to comply with any Applicable Requirements. Likewise, Lessee shall immediately give written
notice to Lessor of: (i) any water damage to the Premises and any suspected seepage, pooling, dampness or other condition conducive
to the production of mold; or (ii) any mustiness or other odors that might indicate the presence of mold in the Premises. In addition,
Lessee shall provide copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a written
request therefor. In addition, Lessee shall provide Lessor with copies of its business license, certificate of occupancy and/or
any similar document within 10 days of the receipt of a written request therefor.

 

6.4             
Inspection; Compliance. Lessor and Lessor’’s “Lender” (as defined in Paragraph 30)
and consultants authorized by Lessor shall have the right to enter into Premises at any time, in the case of an emergency, and
otherwise at reasonable times after reasonable notice, for the purpose of inspecting and/or testing the condition of the Premises
and/or for verifying compliance by Lessee with this Lease. The cost of any such inspections shall be paid by Lessor, unless a violation
of Applicable Requirements, or a Hazardous Substance Condition (see paragraph 9.1) is found to exist or be imminent, or the inspection
is requested or ordered by a governmental authority. In such case, Lessee shall upon request reimburse Lessor for the cost of such
inspection, so long as such inspection is reasonably related to the violation or contamination. In addition, Lessee shall provide
copies of all relevant material safety data sheets (MSDS) to Lessor within 10 days of the receipt of a written request therefore.
Lessee acknowledges that any failure on its part to allow such inspections or testing will expose Lessor to risks and potentially
cause Lessor to incur costs not contemplated by this Lease, the extent of which will be extremely difficult to ascertain. Accordingly,
should the Lessee fail to allow such inspections and/or testing in a timely fashion the Base Rent shall be automatically increased,
without any requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater
for the remainder to the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for
the additional risk/costs that Lessor will incur by reason of Lessee’s failure to allow such inspection and/or testing. Such
increase in Base Rent shall in no event constitute a waiver of Lessee’s Default or Breach with respect to such failure nor
prevent the exercise of any of the other rights and remedies granted hereunder.

 

     

     

    

 

7.                 
Maintenance; Repairs, Utility Installations; Trade Fixtures and Alterations.

 

7.1             
Lessee’s Obligations.

 

(a)               
In General. Subject to the provisions of Paragraph 2.2 (Condition), 2.3 (Compliance), 6.3 (Lessee’s Compliance
with Applicable Requirements), 7.2 (Lessor’s Obligations), 9 (Damage or Destruction), and 14 (Condemnation), Lessee shall,
at Lessee’s sole expense, keep the Premises, Utility Installations (intended for Lessee’s exclusive use, no matter
where located), and Alterations in good order, condition and repair (whether or not the portion of the Premises requiring repairs,
or the means of repairing the same, are reasonably or readily accessible to Lessee, and whether or not the need for such repairs
occurs as a result of Lessee’s use, any prior use, the elements or the age of such portion of the Premises), including, but
not limited to, all equipment or facilities, such as plumbing, HVAC equipment, electrical, lighting facilities, boilers, pressure
vessels, fire protection system, fixtures, walls (interior and exterior), foundations, ceilings, roofs, roof drainage systems,
floors, windows, doors, plate glass, skylights, landscaping, driveways, parking lots, fences, retaining walls, signs, sidewalks
and parkways located in, on, or adjacent to the Premises. Lessee, in keeping the Premises in good order, condition and repair,
shall exercise and perform good maintenance practices, specifically including the procurement and maintenance of the service contracts
required by Paragraph 7.1(b) below. Lessee’s obligations shall include restorations, replacements or renewals when necessary
to keep the Premises and all improvements thereon or a part thereof in good order, condition and state of repair. Lessee shall,
during the term of this Lease, keep the exterior appearance of the Building in a first-class condition (including, e.g. graffiti
removal) consistent with the exterior appearance of other similar facilities of comparable age and size in the vicinity, including,
when necessary, the exterior repainting of the Building.

 

(b)              
Service Contracts. Lessee shall, at Lessee’s sole expense, procure and maintain contracts, with copies to Lessor,
in customary form and substance for, and with contractors specializing and experienced in the maintenance of the following equipment
and improvements, if any, if and when installed on the Premises: (i) HVAC equipment, (ii) boiler, and pressure vessels, (iii) fire
extinguishing systems, including fire alarm and/or smoke detection, (iv) landscaping and irrigation systems, (v) roof covering
and drains, and (vi) clarifiers. However, Lessor reserves the right, upon notice to Lessee, to procure and maintain any or all
of such service contracts, and Lessee shall reimburse Lessor, upon demand, for the cost thereof.

 

(c)               
Failure to Perform. If Lessee fails to perform Lessee’s obligations under this Paragraph 7.1, Lessor may enter
upon the Premises after 10 days’ prior written notice to Lessee (except in the case of an emergency, in which case no notice
shall be required), perform such obligations on Lessee’s behalf, and put the Premises in good order, condition and repair,
and Lessee shall promptly pay to Lessor a sum equal to 115% of the cost thereof.

 

     

     

    

 

(d)              
Replacement. Subject to Lessee’s indemnification of Lessor as set forth in Paragraph 8.7 below, and without
relieving Lessee of liability resulting from Lessee’s failure to exercise and perform good maintenance practices, if an item
described in Paragraph 7.1(b) cannot be repaired other than at a cost which is in excess of 50% of the cost of replacing such item,
then such item shall be replaced by Lessor, and the cost thereof shall be prorated between the Parties and Lessee shall only be
obligated to pay, each month during the remainder of the term of this Lease, on the date on which Base Rent is due, an amount equal
to the product of multiplying the cost of such replacement by a fraction, the numerator of which is one, and the denominator of
which is 144 (ie. 1/144th of the cost per month). Lessee shall pay Interest on the unamortized balance but may prepay its obligation
at any time.

 

7.2             
Lessor’s Obligations. Subject to the provisions of Paragraphs 2.2 (Condition), 2.3 (Compliance), 9 (Damage
or Destruction) and 14 (Condemnation), it is intended by the Parties hereto that Lessor have no obligation, in any manner whatsoever,
to repair and maintain the Premises, or the equipment therein, all of which obligations are intended to be that of the Lessee.
It is the intention of the Parties that the terms of this Lease govern the respective obligations of the Parties as to maintenance
and repair of the Premises

 

7.3             
Utility Installations; Trade Fixtures; Alterations.

 

(a)               
Definitions. The term “Utility Installations” refers to all floor and window coverings, air and/or
vacuum lines, power panels, electrical distribution, security and fire protection systems, communication cabling, lighting fixtures,
HVAC equipment, plumbing, and fencing in or on the Premises. The term “Trade Fixtures” shall mean Lessee’s
machinery and equipment that can be removed without doing material damage to the Premises. The term “Alterations”
shall mean any modification of the improvements, other than Utility Installations or Trade Fixtures, whether by addition or deletion.
 “Lessee Owned Alterations and/or Utility Installations” are defined as Alterations and/or Utility Installations
made by Lessee that are not yet owned by Lessor pursuant to Paragraph 7.4(a).

 

(b)              
Consent. Lessee shall not make any Alterations or Utility Installations to the Premises without Lessor’s prior
written consent. Lessee may, however, make non-structural Alterations or Utility Installations to the interior of the Premises
(excluding the roof) without such consent but upon notice to Lessor, as long as they are not visible from the outside, do not involve
puncturing, relocating or removing the roof or any existing walls, will not affect the electrical, plumbing, HVAC, and/or life
safety systems, do not trigger the requirement for additional modifications and/or improvements to the Premises resulting from
Applicable Requirements, such as compliance with Title 24, and the cumulative cost thereof during this Lease as extended does not
exceed a sum equal to 3 month’s Base Rent in the aggregate or a sum equal to one month’s Base Rent in any one year.
Notwithstanding the foregoing, Lessee shall not make or permit any roof penetrations and/or install anything on the roof without
the prior written approval of Lessor. Lessor may, as a precondition to granting such approval, require Lessee to utilize a contractor
chosen and/or approved by Lessor. Any Alterations or Utility Installations that Lessee shall desire to make and which require the
consent of the Lessor shall be presented to Lessor in written form with detailed plans. Consent shall be deemed conditioned upon
Lessee’s: (i) acquiring all applicable governmental permits, (ii) furnishing Lessor with copies of both the permits and the
plans and specifications prior to commencement of the work, and (iii) compliance with all conditions of said permits and other
Applicable Requirements in a prompt and expeditious manner. Any Alterations or Utility Installations shall be performed in a workmanlike
manner with good and sufficient materials. Lessee shall promptly upon completion furnish Lessor with as-built plans and specifications.
For work which costs an amount in excess of one month’s Base Rent, Lessor may condition its consent upon Lessee providing
a lien and completion bond in an amount equal to 150% of the estimated cost of such Alteration or Utility Installation and/or upon
Lessee’s posting an additional Security Deposit with Lessor.

 

     

     

    

 

(c)               
Liens; Bonds. Lessee shall pay, when due, all claims for labor or materials furnished or alleged to have been furnished
to or for Lessee at or for use on the Premises, which claims are or may be secured by any mechanic’s or materialmen’s
lien against the Premises or any interest therein. Lessee shall give Lessor not less than 10 days’ notice prior to the commencement
of any work in, on or about the Premises, and Lessor shall have the right to post notices of non-responsibility. If Lessee shall
contest the validity of any such lien, claim or demand, then Lessee shall, at its sole expense defend and protect itself, Lessor
and the Premises against the same and shall pay and satisfy any such adverse judgment that may be rendered thereon before the enforcement
thereof. If Lessor shall require, Lessee shall furnish a surety bond in an amount equal to 150% of the amount of such contested
lien, claim or demand, indemnifying Lessor against liability for the same. If Lessor elects to participate in any such action,
Lessee shall pay Lessor’s attorneys’ fees and costs.

7.4             
Ownership; Removal; Surrender; and Restoration.

 

(a)               
Ownership. Subject to Lessor’s right to require removal or elect ownership as hereinafter provided, all Alterations
and Utility Installations made by Lessee shall be the property of Lessee, but considered a part of the Premises. Lessor may, at
any time, elect in writing to be the owner of all or any specified part of the Lessee Owned Alterations and Utility Installations.
Unless otherwise instructed per paragraph 7.4(b) hereof, all Lessee Owned Alterations and Utility Installations shall, at the expiration
or termination of this Lease, become the property of Lessor and be surrendered by Lessee with the Premises.

 

(b)              
Removal. By delivery to Lessee of written notice from Lessor not earlier than 90 and not later than 30 days prior
to the end of the term of this Lease, Lessor may require that any or all Lessee Owned Alterations or Utility Installations be removed
by the expiration or termination of this Lease. Lessor may require the removal at any time of all or any part of any Lessee Owned
Alterations or Utility Installations made without the required consent.

 

     

     

    

 

(c)               
Surrender; Restoration. Lessee shall surrender the Premises by the Expiration Date or any earlier termination date,
with all of the improvements, parts and surfaces thereof broom clean and free of debris, and in good operating order, condition
and state of repair, ordinary wear and tear excepted. “Ordinary wear and tear” shall not include any damage
or deterioration that would have been prevented by good maintenance practice. Notwithstanding the foregoing, if the Lessee occupies
the Premises for 12 months or less, then Lessee shall surrender the Premises in the same condition as delivered to Lessee on the
Start Date with NO allowance for ordinary wear and tear. Lessee shall repair any damage occasioned by the installation, maintenance
or removal of Trade Fixtures, Lessee owned Alterations and/or Utility Installations, furnishings, and equipment as well as the
removal of any storage tank installed by or for Lessee. Lessee shall remove from the Premises any and all Hazardous Substances
brought onto the Premises by or for Lessee, or any third party (except Hazardous Substances which were deposited via underground
migration from areas outside of the Premises) to the level specified in Applicable Requirements. Trade Fixtures shall remain the
property of Lessee and shall be removed by Lessee. Any personal property of Lessee not removed on or before the Expiration Date
or any earlier termination date shall be deemed to have been abandoned by Lessee and may be disposed of or retained by Lessor as
Lessor may desire. The failure by Lessee to timely vacate the Premises pursuant to this Paragraph 7.4(c) without the express written
consent of Lessor shall constitute a holdover under the provisions of Paragraph 26 below.

 

8.                 
Insurance; Indemnity.

 

8.1             
Payment For Insurance. Lessee shall pay for all insurance required under Paragraph 8 except to the extent of the
cost attributable to liability insurance carried by Lessor under Paragraph 8.2(b) in excess of $2,000,000 per occurrence. Premiums
for policy periods commencing prior to or extending beyond the Lease term shall be prorated to correspond to the Lease term. Payment
shall be made by Lessee to Lessor within 10 days following receipt of an invoice.

 

8.2             
Liability Insurance.

 

(a)               
Carried by Lessee. Lessee shall obtain and keep in force a Commercial General Liability policy of insurance protecting
Lessee and Lessor as an additional insured against claims for bodily injury, personal injury and property damage based upon or
arising out of the ownership, use, occupancy or maintenance of the Premises and all areas appurtenant thereto. Such insurance shall
be on an occurrence basis providing single limit coverage in an amount not less than $1,000,000 per occurrence with an annual aggregate
of not less than $2,000,000. Lessee shall add Lessor as an additional insured by means of an endorsement at least as broad as the
Insurance Service Organization’s “Additional Insured-Managers or Lessors of Premises” Endorsement. The
policy shall not contain any intra-insured exclusions as between insured persons or organizations, but shall include coverage for
liability assumed under this Lease as an “insured contract” for the performance of Lessee’s indemnity
obligations under this Lease. The limits of said insurance shall not, however, limit the liability of Lessee nor relieve Lessee
of any obligation hereunder. Lessee shall provide an endorsement on its liability policy(ies) which provides that its insurance
shall be primary to and not contributory with any similar insurance carried by Lessor, whose insurance shall be considered excess
insurance only.

 

     

     

    

 

(b)              
Carried by Lessor. Lessor shall maintain liability insurance as described in Paragraph 8.2(a), in addition to, and
not in lieu of, the insurance required to be maintained by Lessee. Lessee shall not be named as an additional insured therein.

 

8.3             
Property Insurance - Building, Improvements and Rental Value.

 

(a)               
Building and Improvements. The Insuring Party shall obtain and keep in force a policy or policies in the name of
Lessor, with loss payable to Lessor, any ground-lessor, and to any Lender insuring loss or damage to the Premises. The amount of
such insurance shall be equal to the full insurable replacement cost of the Premises, as the same shall exist from time to time,
or the amount required by any Lender, but in no event more than the commercially reasonable and available insurable value thereof.
Lessee Owned Alterations and Utility Installations, Trade Fixtures, and Lessee’s personal property shall be insured by Lessee
not by Lessor. If the coverage is available and commercially appropriate, such policy or policies shall insure against all risks
of direct physical loss or damage (except the perils of flood and/or earthquake unless required by a Lender), including coverage
for debris removal and the enforcement of any Applicable Requirements requiring the upgrading, demolition, reconstruction or replacement
of any portion of the Premises as the result of a covered loss. Said policy or policies shall also contain an agreed valuation
provision in lieu of any coinsurance clause, waiver of subrogation, and inflation guard protection causing an increase in the annual
property insurance coverage amount by a factor of not less than the adjusted U.S. Department of Labor Consumer Price Index for
All Urban Consumers for the city nearest to where the Premises are located. If such insurance coverage has a deductible clause,
the deductible amount shall not exceed $5,000 per occurrence, and Lessee shall be liable for such deductible amount in the event
of an Insured Loss.

 

(b)              
Rental Value. The Insuring Party shall obtain and keep in force a policy or policies in the name of Lessor with loss
payable to Lessor and any Lender, insuring the loss of the full Rent for one year with an extended period of indemnity for an additional
180 days (“Rental Value insurance”). Said insurance shall contain an agreed valuation provision in lieu of any
coinsurance clause, and the amount of coverage shall be adjusted annually to reflect the projected Rent otherwise payable by Lessee,
for the next 12 month period. Lessee shall be liable for any deductible amount in the event of such loss.

 

(c)               
Adjacent Premises. If the Premises are part of a larger building, or of a group of buildings owned by Lessor which
are adjacent to the Premises, the Lessee shall pay for any increase in the premiums for the property insurance of such building
or buildings if said increase is caused by Lessee’s acts, omissions, use or occupancy of the Premises.

 

     

     

    

 

8.4             
Lessee’s Property; Business Interruption Insurance; Worker’s Compensation Insurance.

 

(a)               
Property Damage. Lessee shall obtain and maintain insurance coverage on all of Lessee’s personal property,
Trade Fixtures, and Lessee Owned Alterations and Utility Installations. Such insurance shall be full replacement cost coverage
with a deductible of not to exceed $1,000 per occurrence. The proceeds from any such insurance shall be used by Lessee for the
replacement of personal property, Trade Fixtures and Lessee Owned Alterations and Utility Installations.

 

(b)              
Business Interruption. Lessee shall obtain and maintain loss of income and extra expense insurance in amounts as
will reimburse Lessee for direct or indirect loss of earnings attributable to all perils commonly insured against by prudent lessees
in the business of Lessee or attributable to prevention of access to the Premises as a result of such perils.

 

(c)               
Worker’s Compensation Insurance. Lessee shall obtain and maintain Worker’s Compensation Insurance in
such amount as may be required by Applicable Requirements. Such policy shall include a ‘Waiver of Subrogation’ endorsement.
Lessee shall provide Lessor with a copy of such endorsement along with the certificate of insurance or copy of the policy required
by paragraph 8.5.

 

(d)              
No Representation of Adequate Coverage. Lessor makes no representation that the limits or forms of coverage of insurance
specified herein are adequate to cover Lessee’s property, business operations or obligations under this Lease.

 

8.5             
Insurance Policies. Insurance required herein shall be by companies maintaining during the policy term a “General
Policyholders Rating” of at least A-, VII, as set forth in the most current issue of “Best’s Insurance
Guide”, or such other rating as may be required by a Lender. Lessee shall not do or permit to be done anything which
invalidates the required insurance policies. Lessee shall, prior to the Start Date, deliver to Lessor certified copies of policies
of such insurance or certificates with copies of the required endorsements evidencing the existence and amounts of the required
insurance. No such policy shall be cancelable or subject to modification except after 30 days prior written notice to Lessor. Lessee
shall, at least 10 days prior to the expiration of such policies, furnish Lessor with evidence of renewals or “insurance
binders” evidencing renewal thereof, or Lessor may increase his liability insurance coverage and charge the cost thereof
to Lessee, which amount shall be payable by Lessee to Lessor upon demand. Such policies shall be for a term of at least one year,
or the length of the remaining term of this Lease, whichever is less. If either Party shall fail to procure and maintain the insurance
required to be carried by it, the other Party may, but shall not be required to, procure and maintain the same.

 

8.6             
Waiver of Subrogation. Without affecting any other rights or remedies, Lessee and Lessor each hereby release and
relieve the other, and waive their entire right to recover damages against the other, for loss of or damage to its property arising
out of or incident to the perils required to be insured against herein. The effect of such releases and waivers is not limited
by the amount of insurance carried or required, or by any deductibles applicable hereto. The Parties agree to have their respective
property damage insurance carriers waive any right to subrogation that such companies may have against Lessor or Lessee, as the
case may be, so long as the insurance is not invalidated thereby.

 

     

     

    

 

8.7             
Indemnity. Except for Lessor’s gross negligence or willful misconduct, Lessee shall indemnify, protect, defend
and hold harmless the Premises, Lessor and its agents, Lessor’s master or ground lessor, partners and Lenders, from and against
any and all claims, loss of rents and/or damages, liens, judgments, penalties, attorneys’ and consultants’ fees, expenses
and/or liabilities arising out of, involving, or in connection with, the use and/or occupancy of the Premises by Lessee. If any
action or proceeding is brought against Lessor by reason of any of the foregoing matters, Lessee shall upon notice defend the same
at Lessee’s expense by counsel reasonably satisfactory to Lessor and Lessor shall cooperate with Lessee in such defense.
Lessor need not have first paid any such claim in order to be defended or indemnified.

 

8.8             
Exemption of Lessor and its Agents from Liability. Notwithstanding the negligence or breach of this Lease by Lessor
or its agents, neither Lessor nor its agents shall be liable under any circumstances for: (i) injury or damage to the person or
goods, wares, merchandise or other property of Lessee, Lessee’s employees, contractors, invitees, customers, or any other
person in or about the Premises, whether such damage or injury is caused by or results from fire, steam, electricity, gas, water
or rain, indoor air quality, the presence of mold or from the breakage, leakage, obstruction or other defects of pipes, fire sprinklers,
wires, appliances, plumbing, HVAC or lighting fixtures, or from any other cause, whether the said injury or damage results from
conditions arising upon the Premises or upon other portions of the building of which the Premises are a part, or from other sources
or places, (ii) any damages arising from any act or neglect of any other tenant of Lessor or from the failure of Lessor or its
agents to enforce the provisions of any other lease in the Project, or (iii) injury to Lessee’s business or for any loss
of income or profit therefrom. Instead, it is intended that Lessee’s sole recourse in the event of such damages or injury
be to file a claim on the insurance policy(ies) that Lessee is required to maintain pursuant to the provisions of paragraph 8.

 

8.9             
Failure to Provide Insurance. Lessee acknowledges that any failure on its part to obtain or maintain the insurance
required herein will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by this Lease, the extent
of which will be extremely difficult to ascertain. Accordingly, for any month or portion thereof that Lessee does not maintain
the required insurance and/or does not provide Lessor with the required binders or certificates evidencing the existence of the
required insurance, the Base Rent shall be automatically increased, without any requirement for notice to Lessee, by an amount
equal to 10% of the then existing Base Rent or $100, whichever is greater. The parties agree that such increase in Base Rent represents
fair and reasonable compensation for the additional risk/costs that Lessor will incur by reason of Lessee’s failure to maintain
the required insurance. Such increase in Base Rent shall in no event constitute a waiver of Lessee’s Default or Breach with
respect to the failure to maintain such insurance, prevent the exercise of any of the other rights and remedies granted hereunder,
nor relieve Lessee of its obligation to maintain the insurance specified in this Lease.

 

     

     

    

 

9.                 
Damage or Destruction.

 

9.1             
Definitions.

 

(a)               
“Premises Partial Damage” shall mean damage or destruction to the improvements on the Premises, other
than Lessee Owned Alterations and Utility Installations, which can reasonably be repaired in 6 months or less from the date of
the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as to
whether or not the damage is Partial or Total.

 

(b)              
“Premises Total Destruction” shall mean damage or destruction to the Premises, other than Lessee Owned
Alterations and Utility Installations and Trade Fixtures, which cannot reasonably be repaired in 6 months or less from the date
of the damage or destruction. Lessor shall notify Lessee in writing within 30 days from the date of the damage or destruction as
to whether or not the damage is Partial or Total.

 

(c)               
“Insured Loss” shall mean damage or destruction to improvements on the Premises, other than Lessee Owned
Alterations and Utility Installations and Trade Fixtures, which was caused by an event required to be covered by the insurance
described in Paragraph 8.3(a), irrespective of any deductible amounts or coverage limits involved.

 

(d)              
“Replacement Cost” shall mean the cost to repair or rebuild the improvements owned by Lessor at the time
of the occurrence to their condition existing immediately prior thereto, including demolition, debris removal and upgrading required
by the operation of Applicable Requirements, and without deduction for depreciation.

 

(e)              
“Hazardous Substance Condition” shall mean the occurrence or discovery of a condition involving the presence
of, or a contamination by, a Hazardous Substance , in, on, or under the Premises which requires remediation.

 

     

     

    

 

9.2             
Partial Damage - Insured Loss. If a Premises Partial Damage that is an Insured Loss occurs, then Lessor shall, at
Lessor’s expense, repair such damage (but not Lessee’s Trade Fixtures or Lessee Owned Alterations and Utility Installations)
as soon as reasonably possible and this Lease shall continue in full force and effect; provided, however, that Lessee shall, at
Lessor’s election, make the repair of any damage or destruction the total cost to repair of which is $10,000 or less, and,
in such event, Lessor shall make any applicable insurance proceeds available to Lessee on a reasonable basis for that purpose.
Notwithstanding the foregoing, if the required insurance was not in force or the insurance proceeds are not sufficient to effect
such repair, the Insuring Party shall promptly contribute the shortage in proceeds (except as to the deductible which is Lessee’s
responsibility) as and when required to complete said repairs. In the event, however, such shortage was due to the fact that, by
reason of the unique nature of the improvements, full replacement cost insurance coverage was not commercially reasonable and available,
Lessor shall have no obligation to pay for the shortage in insurance proceeds or to fully restore the unique aspects of the Premises
unless Lessee provides Lessor with the funds to cover same, or adequate assurance thereof, within 10 days following receipt of
written notice of such shortage and request therefor. If Lessor receives said funds or adequate assurance thereof within said 10
day period, the party responsible for making the repairs shall complete them as soon as reasonably possible and this Lease shall
remain in full force and effect. If such funds or assurance are not received, Lessor may nevertheless elect by written notice to
Lessee within 10 days thereafter to: (i) make such restoration and repair as is commercially reasonable with Lessor paying any
shortage in proceeds, in which case this Lease shall remain in full force and effect, or (ii) have this Lease terminate 30 days
thereafter. Lessee shall not be entitled to reimbursement of any funds contributed by Lessee to repair any such damage or destruction.
Premises Partial Damage due to flood or earthquake shall be subject to Paragraph 9.3, notwithstanding that there may be some insurance
coverage, but the net proceeds of any such insurance shall be made available for the repairs if made by either Party.

 

9.3             
Partial Damage - Uninsured Loss. If a Premises Partial Damage that is not an Insured Loss occurs, unless caused by
a negligent or willful act of Lessee (in which event Lessee shall make the repairs at Lessee’s expense), Lessor may either:
(i) repair such damage as soon as reasonably possible at Lessor’s expense, in which event this Lease shall continue in full
force and effect, or (ii) terminate this Lease by giving written notice to Lessee within 30 days after receipt by Lessor of knowledge
of the occurrence of such damage. Such termination shall be effective 60 days following the date of such notice. In the event Lessor
elects to terminate this Lease, Lessee shall have the right within 10 days after receipt of the termination notice to give written
notice to Lessor of Lessee’s commitment to pay for the repair of such damage without reimbursement from Lessor. Lessee shall
provide Lessor with said funds or satisfactory assurance thereof within 30 days after making such commitment. In such event this
Lease shall continue in full force and effect, and Lessor shall proceed to make such repairs as soon as reasonably possible after
the required funds are available. If Lessee does not make the required commitment, this Lease shall terminate as of the date specified
in the termination notice.

 

9.4             
Total Destruction. Notwithstanding any other provision hereof, if a Premises Total Destruction occurs, this Lease
shall terminate 60 days following such Destruction. If the damage or destruction was caused by the gross negligence or willful
misconduct of Lessee, Lessor shall have the right to recover Lessor’s damages from Lessee, except as provided in Paragraph
8.6.

 

9.5             
Damage Near End of Term. If at any time during the last 6 months of this Lease there is damage for which the cost
to repair exceeds one month’s Base Rent, whether or not an Insured Loss, Lessor may terminate this Lease effective 60 days
following the date of occurrence of such damage by giving a written termination notice to Lessee within 30 days after the date
of occurrence of such damage. Notwithstanding the foregoing, if Lessee at that time has an exercisable option to extend this Lease
or to purchase the Premises, then Lessee may preserve this Lease by, (a) exercising such option and (b) providing Lessor with any
shortage in insurance proceeds (or adequate assurance thereof) needed to make the repairs on or before the earlier of (i) the date
which is 10 days after Lessee’s receipt of Lessor’s written notice purporting to terminate this Lease, or (ii) the
day prior to the date upon which such option expires. If Lessee duly exercises such option during such period and provides Lessor
with funds (or adequate assurance thereof) to cover any shortage in insurance proceeds, Lessor shall, at Lessor’s commercially
reasonable expense, repair such damage as soon as reasonably possible and this Lease shall continue in full force and effect. If
Lessee fails to exercise such option and provide such funds or assurance during such period, then this Lease shall terminate on
the date specified in the termination notice and Lessee’s option shall be extinguished.

 

     

     

    

 

9.6             
Abatement of Rent; Lessee’s Remedies.

 

(a)               
Abatement. In the event of Premises Partial Damage or Premises Total Destruction or a Hazardous Substance Condition
for which Lessee is not responsible under this Lease, the Rent payable by Lessee for the period required for the repair, remediation
or restoration of such damage shall be abated in proportion to the degree to which Lessee’s use of the Premises is impaired,
but not to exceed the proceeds received from the Rental Value insurance. All other obligations of Lessee hereunder shall be performed
by Lessee, and Lessor shall have no liability for any such damage, destruction, remediation, repair or restoration except as provided
herein.

 

(b)              
Remedies. If Lessor is obligated to repair or restore the Premises and does not commence, in a substantial and meaningful
way, such repair or restoration within 90 days after such obligation shall accrue, Lessee may, at any time prior to the commencement
of such repair or restoration, give written notice to Lessor and to any Lenders of which Lessee has actual notice, of Lessee’s
election to terminate this Lease on a date not less than 60 days following the giving of such notice. If Lessee gives such notice
and such repair or restoration is not commenced within 30 days thereafter, this Lease shall terminate as of the date specified
in said notice. If the repair or restoration is commenced within such 30 days, this Lease shall continue in full force and effect.
 “Commence” shall mean either the unconditional authorization of the preparation of the required plans, or the
beginning of the actual work on the Premises, whichever first occurs.

 

9.7             
Termination; Advance Payments. Upon termination of this Lease pursuant to Paragraph 6.2(g) or Paragraph 9, an equitable
adjustment shall be made concerning advance Base Rent and any other advance payments made by Lessee to Lessor. Lessor shall, in
addition, return to Lessee so much of Lessee’s Security Deposit as has not been, or is not then required to be, used by Lessor.

 

10.             
Real Property Taxes.

 

10.1         
Definition. As used herein, the term “Real Property Taxes” shall include any form of assessment;
real estate, general, special, ordinary or extraordinary, or rental levy or tax (other than inheritance, personal income or estate
taxes); improvement bond; and/or license fee imposed upon or levied against any legal or equitable interest of Lessor in the Premises
or the Project, Lessor’s right to other income therefrom, and/or Lessor’s business of leasing, by any authority having
the direct or indirect power to tax and where the funds are generated with reference to the Building address. Real Property Taxes
shall also include any tax, fee, levy, assessment or charge, or any increase therein: (i) imposed by reason of events occurring
during the term of this Lease, including but not limited to, a change in the ownership of the Premises, and (ii) levied or assessed
on machinery or equipment provided by Lessor to Lessee pursuant to this Lease.

 

     

     

    

 

10.2         
Payment of Taxes. In addition to Base Rent, Lessee shall pay to Lessor an amount equal to the Real Property Tax installment
due at least 20 days prior to the applicable delinquency date. If any such installment shall cover any period of time prior to
or after the expiration or termination of this Lease, Lessee’s share of such installment shall be prorated. In the event
Lessee incurs a late charge on any Rent payment, Lessor may estimate the current Real Property Taxes, and require that such taxes
be paid in advance to Lessor by Lessee monthly in advance with the payment of the Base Rent. Such monthly payments shall be an
amount equal to the amount of the estimated installment of taxes divided by the number of months remaining before the month in
which said installment becomes delinquent. When the actual amount of the applicable tax bill is known, the amount of such equal
monthly advance payments shall be adjusted as required to provide the funds needed to pay the applicable taxes. If the amount collected
by Lessor is insufficient to pay such Real Property Taxes when due, Lessee shall pay Lessor, upon demand, such additional sum as
is necessary. Advance payments may be intermingled with other moneys of Lessor and shall not bear interest. In the event of a Breach
by Lessee in the performance of its obligations under this Lease, then any such advance payments may be treated by Lessor as an
additional Security Deposit.

 

10.3         
Joint Assessment. If the Premises are not separately assessed, Lessee’s liability shall be an equitable proportion
of the Real Property Taxes for all of the land and improvements included within the tax parcel assessed, such proportion to be
conclusively determined by Lessor from the respective valuations assigned in the assessor’s work sheets or such other information
as may be reasonably available.

 

10.4         
Personal Property Taxes. Lessee shall pay, prior to delinquency, all taxes assessed against and levied upon Lessee
Owned Alterations, Utility Installations, Trade Fixtures, furnishings, equipment and all personal property of Lessee. When possible,
Lessee shall cause its Lessee Owned Alterations and Utility Installations, Trade Fixtures, furnishings, equipment and all other
personal property to be assessed and billed separately from the real property of Lessor. If any of Lessee’s said property
shall be assessed with Lessor’s real property, Lessee shall pay Lessor the taxes attributable to Lessee’s property
within 10 days after receipt of a written statement setting forth the taxes applicable to Lessee’s property.

 

11.             
Utilities and Services. Lessee shall pay for all water, gas, heat, light, power, telephone, trash disposal and other
utilities and services supplied to the Premises, together with any taxes thereon. If any such services are not separately metered
or billed to Lessee, Lessee shall pay a reasonable proportion, to be determined by Lessor, of all charges jointly metered or billed.
There shall be no abatement of rent and Lessor shall not be liable in any respect whatsoever for the inadequacy, stoppage, interruption
or discontinuance of any utility or service due to riot, strike, labor dispute, breakdown, accident, repair or other cause beyond
Lessor’s reasonable control or in cooperation with governmental request or directions.

 

     

     

    

 

12.             
Assignment and Subletting.

 

12.1         
Lessor’s Consent Required.

 

(a)               
Lessee shall not voluntarily or by operation of law assign, transfer, mortgage or encumber (collectively, “assign
or assignment”) or sublet all or any part of Lessee’s interest in this Lease or in the Premises without Lessor’s
prior written consent, which consent shall not be unreasonably withheld.

 

(b)              
Unless Lessee is a corporation and its stock is publicly traded on a national stock exchange, a change in the control of
Lessee shall constitute an assignment requiring consent. The transfer, on a cumulative basis, of 25% or more of the voting control
of Lessee shall constitute a change in control for this purpose.

 

(c)               
The involvement of Lessee or its assets in any transaction, or series of transactions (by way of merger, sale, acquisition,
financing, transfer, leveraged buy-out or otherwise), whether or not a formal assignment or hypothecation of this Lease or Lessee’s
assets occurs, which results or will result in a reduction of the Net Worth of Lessee by an amount greater than 25% of such Net
Worth as it was represented at the time of the execution of this Lease or at the time of the most recent assignment to which Lessor
has consented, or as it exists immediately prior to said transaction or transactions constituting such reduction, whichever was
or is greater, shall be considered an assignment of this Lease to which Lessor may withhold its consent. “Net Worth of
Lessee” shall mean the net worth of Lessee (excluding any guarantors) established under generally accepted accounting
principles.

 

(d)              
An assignment or subletting without consent shall, at Lessor’s option, be a Default curable after notice per Paragraph
13.1(d), or a noncurable Breach without the necessity of any notice and grace period. If Lessor elects to treat such unapproved
assignment or subletting as a noncurable Breach, Lessor may either: (i) terminate this Lease, or (ii) upon 30 days written notice,
increase the monthly Base Rent to 110% of the Base Rent then in effect. Further, in the event of such Breach and rental adjustment,
(i) the purchase price of any option to purchase the Premises held by Lessee shall be subject to similar adjustment to 110% of
the price previously in effect, and (ii) all fixed and non-fixed rental adjustments scheduled during the remainder of the Lease
term shall be increased to 110% of the scheduled adjusted rent.

 

(e)              
Lessee’s remedy for any breach of Paragraph 12.1 by Lessor shall be limited to compensatory damages and/or injunctive
relief.

 

(f)                
Lessor may reasonably withhold consent to a proposed assignment or subletting if Lessee is in Default at the time consent
is requested.

 

     

     

    

 

(g)               
Notwithstanding the foregoing, allowing a de minimis portion of the Premises, ie. 20 square feet or less, to be used by
a third party vendor in connection with the installation of a vending machine or payphone shall not constitute a subletting.

 

12.2         
Terms and Conditions Applicable to Assignment and Subletting.

 

(a)               
Regardless of Lessor’s consent, no assignment or subletting shall: (i) be effective without the express written assumption
by such assignee or sublessee of the obligations of Lessee under this Lease, (ii) release Lessee of any obligations hereunder,
or (iii) alter the primary liability of Lessee for the payment of Rent or for the performance of any other obligations to be performed
by Lessee.

 

(b)              
Lessor may accept Rent or performance of Lessee’s obligations from any person other than Lessee pending approval or
disapproval of an assignment. Neither a delay in the approval or disapproval of such assignment nor the acceptance of Rent or performance
shall constitute a waiver or estoppel of Lessor’s right to exercise its remedies for Lessee’s Default or Breach.

 

(c)               
Lessor’s consent to any assignment or subletting shall not constitute a consent to any subsequent assignment or subletting.

 

(d)              
In the event of any Default or Breach by Lessee, Lessor may proceed directly against Lessee, any Guarantors or anyone else
responsible for the performance of Lessee’s obligations under this Lease, including any assignee or sublessee, without first
exhausting Lessor’s remedies against any other person or entity responsible therefor to Lessor, or any security held by Lessor.

 

(e)              
Each request for consent to an assignment or subletting shall be in writing, accompanied by information relevant to Lessor’s
determination as to the financial and operational responsibility and appropriateness of the proposed assignee or sublessee, including
but not limited to the intended use and/or required modification of the Premises, if any, together with a fee of $500 as consideration
for Lessor’s considering and processing said request. Lessee agrees to provide Lessor with such other or additional information
and/or documentation as may be reasonably requested. (See also Paragraph 36)

 

(f)                
Any assignee of, or sublessee under, this Lease shall, by reason of accepting such assignment, entering into such sublease,
or entering into possession of the Premises or any portion thereof, be deemed to have assumed and agreed to conform and comply
with each and every term, covenant, condition and obligation herein to be observed or performed by Lessee during the term of said
assignment or sublease, other than such obligations as are contrary to or inconsistent with provisions of an assignment or sublease
to which Lessor has specifically consented to in writing.

 

(g)               
Lessor’s consent to any assignment or subletting shall not transfer to the assignee or sublessee any Option granted
to the original Lessee by this Lease unless such transfer is specifically consented to by Lessor in writing. (See Paragraph 39.2)

 

     

     

    

 

12.3         
Additional Terms and Conditions Applicable to Subletting. The following terms and conditions shall apply to any subletting
by Lessee of all or any part of the Premises and shall be deemed included in all subleases under this Lease whether or not expressly
incorporated therein:

 

(a)               
Lessee hereby assigns and transfers to Lessor all of Lessee’s interest in all Rent payable on any sublease, and Lessor
may collect such Rent and apply same toward Lessee’s obligations under this Lease; provided, however, that until a Breach
shall occur in the performance of Lessee’s obligations, Lessee may collect said Rent. In the event that the amount collected
by Lessor exceeds Lessee’s then outstanding obligations any such excess shall be refunded to Lessee. Lessor shall not, by
reason of the foregoing or any assignment of such sublease, nor by reason of the collection of Rent, be deemed liable to the sublessee
for any failure of Lessee to perform and comply with any of Lessee’s obligations to such sublessee. Lessee hereby irrevocably
authorizes and directs any such sublessee, upon receipt of a written notice from Lessor stating that a Breach exists in the performance
of Lessee’s obligations under this Lease, to pay to Lessor all Rent due and to become due under the sublease. Sublessee shall
rely upon any such notice from Lessor and shall pay all Rents to Lessor without any obligation or right to inquire as to whether
such Breach exists, notwithstanding any claim from Lessee to the contrary.

 

(b)              
In the event of a Breach by Lessee, Lessor may, at its option, require sublessee to attorn to Lessor, in which event Lessor
shall undertake the obligations of the sublessor under such sublease from the time of the exercise of said option to the expiration
of such sublease; provided, however, Lessor shall not be liable for any prepaid rents or security deposit paid by such sublessee
to such sublessor or for any prior Defaults or Breaches of such sublessor.

 

(c)               
Any matter requiring the consent of the sublessor under a sublease shall also require the consent of Lessor.

 

(d)              
No sublessee shall further assign or sublet all or any part of the Premises without Lessor’s prior written consent.

 

(e)              
Lessor shall deliver a copy of any notice of Default or Breach by Lessee to the sublessee, who shall have the right to cure
the Default of Lessee within the grace period, if any, specified in such notice. The sublessee shall have a right of reimbursement
and offset from and against Lessee for any such Defaults cured by the sublessee.

 

13.             
Default; Breach; Remedies.

 

13.1         
Default; Breach. A “Default” is defined as a failure by the Lessee to comply with or perform any
of the terms, covenants, conditions or Rules and Regulations under this Lease. A “Breach” is defined as the
occurrence of one or more of the following Defaults, and the failure of Lessee to cure such Default within any applicable grace
period:

 

(a)               
The abandonment of the Premises; or the vacating of the Premises without providing a commercially reasonable level of security,
or where the coverage of the property insurance described in Paragraph 8.3 is jeopardized as a result thereof, or without providing
reasonable assurances to minimize potential vandalism.

 

     

     

    

 

(b)              
The failure of Lessee to make any payment of Rent or any Security Deposit required to be made by Lessee hereunder, whether
to Lessor or to a third party, when due, to provide reasonable evidence of insurance or surety bond, or to fulfill any obligation
under this Lease which endangers or threatens life or property, where such failure continues for a period of 3 business days following
written notice to Lessee. THE ACCEPTANCE BY LESSOR OF A PARTIAL PAYMENT OF RENT OR SECURITY DEPOSIT SHALL NOT CONSTITUTE A WAIVER
OF ANY OF LESSOR’S RIGHTS, INCLUDING LESSOR’S RIGHT TO RECOVER POSSESSION OF THE PREMISES.

 

(c)               
The failure of Lessee to allow Lessor and/or its agents access to the Premises or the commission of waste, act or acts constituting
public or private nuisance, and/or an illegal activity on the Premises by Lessee, where such actions continue for a period of 3
business days following written notice to Lessee. In the event that Lessee commits waste, a nuisance or an illegal activity a second
time then, the Lessor may elect to treat such conduct as a non-curable Breach rather than a Default.

 

(d)               The
failure by Lessee to provide (i) reasonable written evidence of compliance with Applicable Requirements, (ii) the service
contracts, (iii) the rescission of an unauthorized assignment or subletting, (iv) an Estoppel Certificate or financial
statements, (v) a requested subordination, (vi) evidence concerning any guaranty and/or Guarantor, (vii) any document
requested under Paragraph 42, (viii) material safety data sheets (MSDS), or (ix) any other documentation or information which
Lessor may reasonably require of Lessee under the terms of this Lease, where any such failure continues for a period of 10
days following written notice to Lessee. 

 

(e)              
A Default by Lessee as to the terms, covenants, conditions or provisions of this Lease, or of the rules adopted under Paragraph
40 hereof, other than those described in subparagraphs 13.1(a), (b), (c) or (d), above, where such Default continues for a period
of 30 days after written notice; provided, however, that if the nature of Lessee’s Default is such that more than 30 days
are reasonably required for its cure, then it shall not be deemed to be a Breach if Lessee commences such cure within said 30 day
period and thereafter diligently prosecutes such cure to completion.

 

(f)                
The occurrence of any of the following events: (i) the making of any general arrangement or assignment for the benefit of
creditors; (ii) becoming a “debtor” as defined in 11 U.S.C. §101 or any successor statute thereto (unless,
in the case of a petition filed against Lessee, the same is dismissed within 60 days); (iii) the appointment of a trustee or receiver
to take possession of substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this
Lease, where possession is not restored to Lessee within 30 days; or (iv) the attachment, execution or other judicial seizure of
substantially all of Lessee’s assets located at the Premises or of Lessee’s interest in this Lease, where such seizure
is not discharged within 30 days; provided, however, in the event that any provision of this subparagraph is contrary to any applicable
law, such provision shall be of no force or effect, and not affect the validity of the remaining provisions.

 

     

     

    

 

(g)               
The discovery that any financial statement of Lessee or of any Guarantor given to Lessor was materially false.

 

(h)              
If the performance of Lessee’s obligations under this Lease is guaranteed: (i) the death of a Guarantor, (ii) the
termination of a Guarantor’s liability with respect to this Lease other than in accordance with the terms of such guaranty,
(iii) a Guarantor’s becoming insolvent or the subject of a bankruptcy filing, (iv) a Guarantor’s refusal to honor the
guaranty, or (v) a Guarantor’s breach of its guaranty obligation on an anticipatory basis, and Lessee’s failure, within
60 days following written notice of any such event, to provide written alternative assurance or security, which, when coupled with
the then existing resources of Lessee, equals or exceeds the combined financial resources of Lessee and the Guarantors that existed
at the time of execution of this Lease.

 

13.2         
Remedies. If Lessee fails to perform any of its affirmative duties or obligations, within 10 days after written notice
(or in case of an emergency, without notice), Lessor may, at its option, perform such duty or obligation on Lessee’s behalf,
including but not limited to the obtaining of reasonably required bonds, insurance policies, or governmental licenses, permits
or approvals. Lessee shall pay to Lessor an amount equal to 115% of the costs and expenses incurred by Lessor in such performance
upon receipt of an invoice therefor. In the event of a Breach, Lessor may, with or without further notice or demand, and without
limiting Lessor in the exercise of any right or remedy which Lessor may have by reason of such Breach:

 

(a)               
Terminate Lessee’s right to possession of the Premises by any lawful means, in which case this Lease shall terminate
and Lessee shall immediately surrender possession to Lessor. In such event Lessor shall be entitled to recover from Lessee: (i)
the unpaid Rent which had been earned at the time of termination; (ii) the worth at the time of award of the amount by which the
unpaid rent which would have been earned after termination until the time of award exceeds the amount of such rental loss that
the Lessee proves could have been reasonably avoided; (iii) the worth at the time of award of the amount by which the unpaid rent
for the balance of the term after the time of award exceeds the amount of such rental loss that the Lessee proves could be reasonably
avoided; and (iv) any other amount necessary to compensate Lessor for all the detriment proximately caused by the Lessee’s
failure to perform its obligations under this Lease or which in the ordinary course of things would be likely to result therefrom,
including but not limited to the cost of recovering possession of the Premises, expenses of reletting, including necessary renovation
and alteration of the Premises, reasonable attorneys’ fees, and that portion of any leasing commission paid by Lessor in
connection with this Lease applicable to the unexpired term of this Lease. The worth at the time of award of the amount referred
to in provision (iii) of the immediately preceding sentence shall be computed by discounting such amount at the discount rate of
the Federal Reserve Bank of the District within which the Premises are located at the time of award plus one percent. Efforts by
Lessor to mitigate damages caused by Lessee’s Breach of this Lease shall not waive Lessor’s right to recover any damages
to which Lessor is otherwise entitled. If termination of this Lease is obtained through the provisional remedy of unlawful detainer,
Lessor shall have the right to recover in such proceeding any unpaid Rent and damages as are recoverable therein, or Lessor may
reserve the right to recover all or any part thereof in a separate suit. If a notice and grace period required under Paragraph
13.1 was not previously given, a notice to pay rent or quit, or to perform or quit given to Lessee under the unlawful detainer
statute shall also constitute the notice required by Paragraph 13.1. In such case, the applicable grace period required by Paragraph
13.1 and the unlawful detainer statute shall run concurrently, and the failure of Lessee to cure the Default within the greater
of the two such grace periods shall constitute both an unlawful detainer and a Breach of this Lease entitling Lessor to the remedies
provided for in this Lease and/or by said statute.

 

     

     

    

 

(b)              
Continue the Lease and Lessee’s right to possession and recover the Rent as it becomes due, in which event Lessee
may sublet or assign, subject only to reasonable limitations. Acts of maintenance, efforts to relet, and/or the appointment of
a receiver to protect the Lessor’s interests, shall not constitute a termination of the Lessee’s right to possession.

 

(c)               
Pursue any other remedy now or hereafter available under the laws or judicial decisions of the state wherein the Premises
are located. The expiration or termination of this Lease and/or the termination of Lessee’s right to possession shall not
relieve Lessee from liability under any indemnity provisions of this Lease as to matters occurring or accruing during the term
hereof or by reason of Lessee’s occupancy of the Premises.

 

13.3         
Inducement Recapture. Any agreement for free or abated rent or other charges, the cost of tenant improvements for
Lessee paid for or performed by Lessor, or for the giving or paying by Lessor to or for Lessee of any cash or other bonus, inducement
or consideration for Lessee’s entering into this Lease, all of which concessions are hereinafter referred to as “Inducement
Provisions,” shall be deemed conditioned upon Lessee’s full and faithful performance of all of the terms, covenants
and conditions of this Lease. Upon Breach of this Lease by Lessee, any such Inducement Provision shall automatically be deemed
deleted from this Lease and of no further force or effect, and any rent, other charge, bonus, inducement or consideration theretofore
abated, given or paid by Lessor under such an inducement Provision shall be immediately due and payable by Lessee to Lessor, notwithstanding
any subsequent cure of said Breach by Lessee. The acceptance by Lessor of rent or the cure of the Breach which initiated the operation
of this paragraph shall not be deemed a waiver by Lessor of the provisions of this paragraph unless specifically so stated in writing
by Lessor at the time of such acceptance.

 

13.4         
Late Charges. Lessee hereby acknowledges that late payment by Lessee of Rent will cause Lessor to incur costs not
contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs include, but are not
limited to, processing and accounting charges, and late charges which may be imposed upon Lessor by any Lender. Accordingly, if
any Rent shall not be received by Lessor within 5 days after such amount shall be due, then, without any requirement for notice
to Lessee, Lessee shall immediately pay to Lessor a one-time late charge equal to 10% of each such overdue amount or $100, whichever
is greater. The Parties hereby agree that such late charge represents a fair and reasonable estimate of the costs Lessor will incur
by reason of such late payment. Acceptance of such late charge by Lessor shall in no event constitute a waiver of Lessee’s
Default or Breach with respect to such overdue amount, nor prevent the exercise of any of the other rights and remedies granted
hereunder. In the event that a late charge is payable hereunder, whether or not collected, for 3 consecutive installments of Base
Rent, then notwithstanding any provision of this Lease to the contrary, Base Rent shall, at Lessor’s option, become due and
payable quarterly in advance.

 

13.5         
Interest. Any monetary payment due Lessor hereunder, other than late charges, not received by Lessor, when due shall
bear interest from the 31st day after it was due. The interest (“Interest”) charged shall be computed at the
rate of 10% per annum but shall not exceed the maximum rate allowed by law. Interest is payable in addition to the potential late
charge provided for in Paragraph 13.4.

 

     

     

    

 

13.6         
Breach by Lessor.

 

(a)               
Notice of Breach. Lessor shall not be deemed in breach of this Lease unless Lessor fails within a reasonable time
to perform an obligation required to be performed by Lessor. For purposes of this Paragraph, a reasonable time shall in no event
be less than 30 days after receipt by Lessor, and any Lender whose name and address shall have been furnished Lessee in writing
for such purpose, of written notice specifying wherein such obligation of Lessor has not been performed; provided, however, that
if the nature of Lessor’s obligation is such that more than 30 days are reasonably required for its performance, then Lessor
shall not be in breach if performance is commenced within such 30 day period and thereafter diligently pursued to completion.

 

(b)              
Performance by Lessee on Behalf of Lessor. In the event that neither Lessor nor Lender cures said breach within 30
days after receipt of said notice, or if having commenced said cure they do not diligently pursue it to completion, then Lessee
may elect to cure said breach at Lessee’s expense and offset from Rent the actual and reasonable cost to perform such cure,
provided, however, that such offset shall not exceed an amount equal to the greater of one month’s Base Rent or the Security
Deposit, reserving Lessee’s right to seek reimbursement from Lessor for any such expense in excess of such offset. Lessee
shall document the cost of said cure and supply said documentation to Lessor.

 

     

     

    

 

14.             
Condemnation. If the Premises or any portion thereof are taken under the power of eminent domain or sold under the
threat of the exercise of said power (collectively “Condemnation”), this Lease shall terminate as to the part
taken as of the date the condemning authority takes title or possession, whichever first occurs. If more than 10% of the Building,
or more than 25% of that portion of the Premises not occupied by any building, is taken by Condemnation, Lessee may, at Lessee’s
option, to be exercised in writing within 10 days after Lessor shall have given Lessee written notice of such taking (or in the
absence of such notice, within 10 days after the condemning authority shall have taken possession) terminate this Lease as of the
date the condemning authority takes such possession. If Lessee does not terminate this Lease in accordance with the foregoing,
this Lease shall remain in full force and effect as to the portion of the Premises remaining, except that the Base Rent shall be
reduced in proportion to the reduction in utility of the Premises caused by such Condemnation. Condemnation awards and/or payments
shall be the property of Lessor, whether such award shall be made as compensation for diminution in value of the leasehold, the
value of the part taken, or for severance damages; provided, however, that Lessee shall be entitled to any compensation paid by
the condemnor for Lessee’s relocation expenses, loss of business goodwill and/or Trade Fixtures, without regard to whether
or not this Lease is terminated pursuant to the provisions of this Paragraph. All Alterations and Utility Installations made to
the Premises by Lessee, for purposes of Condemnation only, shall be considered the property of the Lessee and Lessee shall be entitled
to any and all compensation which is payable therefor. In the event that this Lease is not terminated by reason of the Condemnation,
Lessor shall repair any damage to the Premises caused by such Condemnation.

 

15.             
Brokerage Fees. 

 

15.1         
Additional Commission. In addition to the payments owed pursuant to Paragraph 1.9 above, Lessor agrees that: (a)
if Lessee exercises any Option, (b) if Lessee or anyone affiliated with Lessee acquires any rights to the Premises or other premises
owned by Lessor and located within the same Project, if any, within which the Premises is located, (c) if Lessee remains in possession
of the Premises, with the consent of Lessor, after the expiration of this Lease, or (d) if Base Rent is increased, whether by agreement
or operation of an escalation clause herein, then, Lessor shall pay Brokers a fee in accordance with the fee schedule of the Brokers
in effect at the time the Lease was executed.

 

15.2         
Assumption of Obligations. Any buyer or transferee of Lessor’s interest in this Lease shall be deemed to have
assumed Lessor’s obligation hereunder. Brokers shall be third party beneficiaries of the provisions of Paragraphs 1.9, 15,
22 and 31. If Lessor fails to pay to Brokers any amounts due as and for brokerage fees pertaining to this Lease when due, then
such amounts shall accrue Interest. In addition, if Lessor fails to pay any amounts to Lessee’s Broker when due, Lessee’s
Broker may send written notice to Lessor and Lessee of such failure and if Lessor fails to pay such amounts within 10 days after
said notice, Lessee shall pay said monies to its Broker and offset such amounts against Rent. In addition, Lessee’s Broker
shall be deemed to be a third party beneficiary of any commission agreement entered into by and/or between Lessor and Lessor’s
Broker for the limited purpose of collecting any brokerage fee owed.

 

15.3         
Representations and Indemnities of Broker Relationships. Lessee and Lessor each represent and warrant to the other
that it has had no dealings with any person, firm, broker or finder (other than the Brokers, if any) in connection with this Lease,
and that no one other than said named Brokers is entitled to any commission or finder’s fee in connection herewith. Lessee
and Lessor do each hereby agree to indemnify, protect, defend and hold the other harmless from and against liability for compensation
or charges which may be claimed by any such unnamed broker, finder or other similar party by reason of any dealings or actions
of the indemnifying Party, including any costs, expenses, attorneys’ fees reasonably incurred with respect thereto.

 

     

     

    

 

16.             
Estoppel Certificates.

 

(a)               
Each Party (as “Responding Party”) shall within 10 days after written notice from the other Party (the
 “Requesting Party”) execute, acknowledge and deliver to the Requesting Party a statement in writing in form
similar to the then most current “Estoppel Certificate” form published by the AIR Commercial Real Estate Association,
plus such additional information, confirmation and/or statements as may be reasonably requested by the Requesting Party.

 

(b)              
If the Responding Party shall fail to execute or deliver the Estoppel Certificate within such 10 day period, the Requesting
Party may execute an Estoppel Certificate stating that: (i) the Lease is in full force and effect without modification except as
may be represented by the Requesting Party, (ii) there are no uncured defaults in the Requesting Party’s performance, and
(iii) if Lessor is the Requesting Party, not more than one month’s rent has been paid in advance. Prospective purchasers
and encumbrancers may rely upon the Requesting Party’s Estoppel Certificate, and the Responding Party shall be estopped from
denying the truth of the facts contained in said Certificate. In addition, Lessee acknowledges that any failure on its part to
provide such an Estoppel Certificate will expose Lessor to risks and potentially cause Lessor to incur costs not contemplated by
this Lease, the extent of which will be extremely difficult to ascertain. Accordingly, should the Lessee fail to execute and/or
deliver a requested Estoppel Certificate in a timely fashion the monthly Base Rent shall be automatically increased, without any
requirement for notice to Lessee, by an amount equal to 10% of the then existing Base Rent or $100, whichever is greater for remainder
of the Lease. The Parties agree that such increase in Base Rent represents fair and reasonable compensation for the additional
risk/costs that Lessor will incur by reason of Lessee’s failure to provide the Estoppel Certificate. Such increase in Base
Rent shall in no event constitute a waiver of Lessee’s Default or Breach with respect to the failure to provide the Estoppel
Certificate nor prevent the exercise of any of the other rights and remedies granted hereunder.

 

(c)               
If Lessor desires to finance, refinance, or sell the Premises, or any part thereof, Lessee and all Guarantors shall within
10 days after written notice from Lessor deliver to any potential lender or purchaser designated by Lessor such financial statements
as may be reasonably required by such lender or purchaser, including but not limited to Lessee’s financial statements for
the past 3 years. All such financial statements shall be received by Lessor and such lender or purchaser in confidence and shall
be used only for the purposes herein set forth.

 

17.             
Definition of Lessor. The term “Lessor” as used herein shall mean the owner or owners at the time
in question of the fee title to the Premises, or, if this is a sublease, of the Lessee’s interest in the prior lease. In
the event of a transfer of Lessor’s title or interest in the Premises or this Lease, Lessor shall deliver to the transferee
or assignee (in cash or by credit) any unused Security Deposit held by Lessor. Upon such transfer or assignment and delivery of
the Security Deposit, as aforesaid, the prior Lessor shall be relieved of all liability with respect to the obligations and/or
covenants under this Lease thereafter to be performed by the Lessor. Subject to the foregoing, the obligations and/or covenants
in this Lease to be performed by the Lessor shall be binding only upon the Lessor as hereinabove defined.

 

     

     

    

 

18.             
Severability. The invalidity of any provision of this Lease, as determined by a court of competent jurisdiction,
shall in no way affect the validity of any other provision hereof.

 

19.             
Days. Unless otherwise specifically indicated to the contrary, the word “days” as used in this
Lease shall mean and refer to calendar days.

 

20.             
Limitation on Liability. The obligations of Lessor under this Lease shall not constitute personal obligations of
Lessor or its partners, members, directors, officers or shareholders, and Lessee shall look to the Premises, and to no other assets
of Lessor, for the satisfaction of any liability of Lessor with respect to this Lease, and shall not seek recourse against Lessor’s
partners, members, directors, officers or shareholders, or any of their personal assets for such satisfaction.

 

21.             
Time of Essence. Time is of the essence with respect to the performance of all obligations to be performed or observed
by the Parties under this Lease.

 

22.             
No Prior or Other Agreements; Broker Disclaimer. This Lease contains all agreements between the Parties with respect
to any matter mentioned herein, and no other prior or contemporaneous agreement or understanding shall be effective. Lessor and
Lessee each represents and warrants to the Brokers that it has made, and is relying solely upon, its own investigation as to the
nature, quality, character and financial responsibility of the other Party to this Lease and as to the use, nature, quality and
character of the Premises. Brokers have no responsibility with respect thereto or with respect to any default or breach hereof
by either Party.

 

23.             
Notices.

 

23.1         
Notice Requirements. All notices required or permitted by this Lease or applicable law shall be in writing and may
be delivered in person (by hand or by courier) or may be sent by regular, certified or registered mail or U.S. Postal Service Express
Mail, with postage prepaid, or by facsimile transmission, or by email, and shall be deemed sufficiently given if served in a manner
specified in this Paragraph 23. The addresses noted adjacent to a Party’s signature on this Lease shall be that Party’s
address for delivery or mailing of notices. Either Party may by written notice to the other specify a different address for notice,
except that upon Lessee’s taking possession of the Premises, the Premises shall constitute Lessee’s address for notice.
A copy of all notices to Lessor shall be concurrently transmitted to such party or parties at such addresses as Lessor may from
time to time hereafter designate in writing.

 

23.2         
Date of Notice. Any notice sent by registered or certified mail, return receipt requested, shall be deemed given
on the date of delivery shown on the receipt card, or if no delivery date is shown, the postmark thereon. If sent by regular mail
the notice shall be deemed given 72 hours after the same is addressed as required herein and mailed with postage prepaid. Notices
delivered by United States Express Mail or overnight courier that guarantees next day delivery shall be deemed given 24 hours after
delivery of the same to the Postal Service or courier. Notices delivered by hand, or transmitted by facsimile transmission or by
email shall be deemed delivered upon actual receipt. If notice is received on a Saturday, Sunday or legal holiday, it shall be
deemed received on the next business day.

 

     

     

    

 

24.             
Waivers.

 

(a)               
No waiver by Lessor of the Default or Breach of any term, covenant or condition hereof by Lessee, shall be deemed a waiver
of any other term, covenant or condition hereof, or of any subsequent Default or Breach by Lessee of the same or of any other term,
covenant or condition hereof. Lessor’s consent to, or approval of, any act shall not be deemed to render unnecessary the
obtaining of Lessor’s consent to, or approval of, any subsequent or similar act by Lessee, or be construed as the basis of
an estoppel to enforce the provision or provisions of this Lease requiring such consent.

 

(b)              
The acceptance of Rent by Lessor shall not be a waiver of any Default or Breach by Lessee. Any payment by Lessee may be
accepted by Lessor on account of moneys or damages due Lessor, notwithstanding any qualifying statements or conditions made by
Lessee in connection therewith, which such statements and/or conditions shall be of no force or effect whatsoever unless specifically
agreed to in writing by Lessor at or before the time of deposit of such payment.

 

(c)               
THE PARTIES AGREE THAT THE TERMS OF THIS LEASE SHALL GOVERN WITH REGARD TO ALL MATTERS RELATED THERETO AND HEREBY WAIVE
THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE TO THE EXTENT THAT SUCH STATUTE IS INCONSISTENT WITH THIS LEASE.

 

25.             
Disclosures Regarding The Nature of a Real Estate Agency Relationship.

 

(a)               
When entering into a discussion with a real estate agent regarding a real estate transaction, a Lessor or Lessee should
from the outset understand what type of agency relationship or representation it has with the agent or agents in the transaction.
Lessor and Lessee acknowledge being advised by the Brokers in this transaction, as follows:

 

(i)                       
Lessor’s Agent. A Lessor’s agent under a listing agreement with the Lessor acts as the agent for the
Lessor only. A Lessor’s agent or subagent has the following affirmative obligations: To the Lessor: A fiduciary duty of utmost
care, integrity, honesty, and loyalty in dealings with the Lessor. To the Lessee and the Lessor: a. Diligent exercise of reasonable
skills and care in performance of the agent’s duties. b. A duty of honest and fair dealing and good faith. c. A duty to disclose
all facts known to the agent materially affecting the value or desirability of the property that are not known to, or within the
diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential information
obtained from the other Party which does not involve the affirmative duties set forth above.

 

     

     

    

 

(ii)                       
Lessee’s Agent. An agent can agree to act as agent for the Lessee only. In these situations, the agent is not
the Lessor’s agent, even if by agreement the agent may receive compensation for services rendered, either in full or in part
from the Lessor. An agent acting only for a Lessee has the following affirmative obligations. To the Lessee: A fiduciary duty of
utmost care, integrity, honesty, and loyalty in dealings with the Lessee. To the Lessee and the Lessor: a. Diligent exercise of
reasonable skills and care in performance of the agent’s duties. b. A duty of honest and fair dealing and good faith. c.
A duty to disclose all facts known to the agent materially affecting the value or desirability of the property that are not known
to, or within the diligent attention and observation of, the Parties. An agent is not obligated to reveal to either Party any confidential
information obtained from the other Party which does not involve the affirmative duties set forth above.

 

(iii)                       
Agent Representing Both Lessor and Lessee. A real estate agent, either acting directly or through one or more associate
licenses, can legally be the agent of both the Lessor and the Lessee in a transaction, but only with the knowledge and consent
of both the Lessor and the Lessee. In a dual agency situation, the agent has the following affirmative obligations to both the
Lessor and the Lessee: a. A fiduciary duty of utmost care, integrity, honesty and loyalty in the dealings with either Lessor or
the Lessee. b. Other duties to the Lessor and the Lessee as stated above in subparagraphs (i) or (ii). In representing both Lessor
and Lessee, the agent may not without the express permission of the respective Party, disclose to the other Party that the Lessor
will accept rent in an amount less than that indicated in the listing or that the Lessee is willing to pay a higher rent than that
offered. The above duties of the agent in a real estate transaction do not relieve a Lessor or Lessee from the responsibility to
protect their own interests. Lessor and Lessee should carefully read all agreements to assure that they adequately express their
understanding of the transaction. A real estate agent is a person qualified to advise about real estate. If legal or tax advice
is desired, consult a competent professional.

 

(b)              
Brokers have no responsibility with respect to any default or breach hereof by either Party. The Parties agree that no lawsuit
or other legal proceeding involving any breach of duty, error or omission relating to this Lease may be brought against Broker
more than one year after the Start Date and that the liability (including court costs and attorneys’ fees), of any Broker
with respect to any such lawsuit and/or legal proceeding shall not exceed the fee received by such Broker pursuant to this Lease;
provided, however, that the foregoing limitation on each Broker’s liability shall not be applicable to any gross negligence
or willful misconduct of such Broker.

 

(c)               
Lessor and Lessee agree to identify to Brokers as “Confidential” any communication or information given
Brokers that is considered by such Party to be confidential.

 

26.             
No Right To Holdover. Lessee has no right to retain possession of the Premises or any part thereof beyond the expiration
or termination of this Lease. In the event that Lessee holds over, then the Base Rent shall be increased to 150% of the Base Rent
applicable immediately preceding the expiration or termination. Holdover Base Rent shall be calculated on monthly basis. Nothing
contained herein shall be construed as consent by Lessor to any holding over by Lessee.

 

     

     

    

 

27.             
Cumulative Remedies. No remedy or election hereunder shall be deemed exclusive but shall, wherever possible, be cumulative
with all other remedies at law or in equity.

 

28.             
Covenants and Conditions; Construction of Agreement. All provisions of this Lease to be observed or performed by
Lessee are both covenants and conditions. In construing this Lease, all headings and titles are for the convenience of the Parties
only and shall not be considered a part of this Lease. Whenever required by the context, the singular shall include the plural
and vice versa. This Lease shall not be construed as if prepared by one of the Parties, but rather according to its fair meaning
as a whole, as if both Parties had prepared it.

 

29.             
Binding Effect; Choice of Law. This Lease shall be binding upon the Parties, their personal representatives, successors
and assigns and be governed by the laws of the State in which the Premises are located. Any litigation between the Parties hereto
concerning this Lease shall be initiated in the county in which the Premises are located.

 

30.             
Subordination; Attornment; Non-Disturbance.

 

30.1         
Subordination. This Lease and any Option granted hereby shall be subject and subordinate to any ground lease, mortgage,
deed of trust, or other hypothecation or security device (collectively, “Security Device”), now or hereafter
placed upon the Premises, to any and all advances made on the security thereof, and to all renewals, modifications, and extensions
thereof. Lessee agrees that the holders of any such Security Devices (in this Lease together referred to as “Lender”)
shall have no liability or obligation to perform any of the obligations of Lessor under this Lease. Any Lender may elect to have
this Lease and/or any Option granted hereby superior to the lien of its Security Device by giving written notice thereof to Lessee,
whereupon this Lease and such Options shall be deemed prior to such Security Device, notwithstanding the relative dates of the
documentation or recordation thereof.

 

30.2         
Attornment. In the event that Lessor transfers title to the Premises, or the Premises are acquired by another upon
the foreclosure or termination of a Security Device to which this Lease is subordinated (i) Lessee shall, subject to the non-disturbance
provisions of Paragraph 30.3, attorn to such new owner, and upon request, enter into a new lease, containing all of the terms and
provisions of this Lease, with such new owner for the remainder of the term hereof, or, at the election of the new owner, this
Lease will automatically become a new lease between Lessee and such new owner, and (ii) Lessor shall thereafter be relieved of
any further obligations hereunder and such new owner shall assume all of Lessor’s obligations, except that such new owner
shall not: (a) be liable for any act or omission of any prior lessor or with respect to events occurring prior to acquisition of
ownership; (b) be subject to any offsets or defenses which Lessee might have against any prior lessor, (c) be bound by prepayment
of more than one month’s rent, or (d) be liable for the return of any security deposit paid to any prior lessor which was
not paid or credited to such new owner.

 

     

     

    

 

30.3         
Non-Disturbance. With respect to Security Devices entered into by Lessor after the execution of this Lease, Lessee’s
subordination of this Lease shall be subject to receiving a commercially reasonable non-disturbance agreement (a “Non-Disturbance
Agreement”) from the Lender which Non-Disturbance Agreement provides that Lessee’s possession of the Premises,
and this Lease, including any options to extend the term hereof, will not be disturbed so long as Lessee is not in Breach hereof
and attorns to the record owner of the Premises. Further, within 60 days after the execution of this Lease, Lessor shall, if requested
by Lessee, use its commercially reasonable efforts to obtain a Non-Disturbance Agreement from the holder of any pre-existing Security
Device which is secured by the Premises. In the event that Lessor is unable to provide the Non-Disturbance Agreement within said
60 days, then Lessee may, at Lessee’s option, directly contact Lender and attempt to negotiate for the execution and delivery
of a Non-Disturbance Agreement.

 

30.4         
Self-Executing. The agreements contained in this Paragraph 30 shall be effective without the execution of any further
documents; provided, however, that, upon written request from Lessor or a Lender in connection with a sale, financing or refinancing
of the Premises, Lessee and Lessor shall execute such further writings as may be reasonably required to separately document any
subordination, attornment and/or Non-Disturbance Agreement provided for herein.

 

31.             
Attorneys’ Fees. If any Party or Broker brings an action or proceeding involving the Premises whether founded
in tort, contract or equity, or to declare rights hereunder, the Prevailing Party (as hereafter defined) in any such proceeding,
action, or appeal thereon, shall be entitled to reasonable attorneys’ fees. Such fees may be awarded in the same suit or
recovered in a separate suit, whether or not such action or proceeding is pursued to decision or judgment. The term, “Prevailing
Party” shall include, without limitation, a Party or Broker who substantially obtains or defeats the relief sought, as
the case may be, whether by compromise, settlement, judgment, or the abandonment by the other Party or Broker of its claim or defense.
The attorneys’ fees award shall not be computed in accordance with any court fee schedule, but shall be such as to fully
reimburse all attorneys’ fees reasonably incurred. In addition, Lessor shall be entitled to attorneys’ fees, costs
and expenses incurred in the preparation and service of notices of Default and consultations in connection therewith, whether or
not a legal action is subsequently commenced in connection with such Default or resulting Breach ($200 is a reasonable minimum
per occurrence for such services and consultation).

 

32.             
Lessor’s Access; Showing Premises; Repairs. Lessor and Lessor’s agents shall have the right to enter
the Premises at any time, in the case of an emergency, and otherwise at reasonable times after reasonable prior notice for the
purpose of showing the same to prospective purchasers, lenders, or tenants, and making such alterations, repairs, improvements
or additions to the Premises as Lessor may deem necessary or desirable and the erecting, using and maintaining of utilities, services,
pipes and conduits through the Premises and/or other premises as long as there is no material adverse effect to Lessee’s
use of the Premises. All such activities shall be without abatement of rent or liability to Lessee.

 

     

     

    

 

33.             
Auctions. Lessee shall not conduct, nor permit to be conducted, any auction upon the Premises without Lessor’s
prior written consent. Lessor shall not be obligated to exercise any standard of reasonableness in determining whether to permit
an auction.

 

34.             
Signs. Lessor may place on the Premises ordinary “For Sale” signs at any time and ordinary “For
Lease” signs during the last 6 months of the term hereof. Except for ordinary “for sublease” signs,
Lessee shall not place any sign upon the Premises without Lessor’s prior written consent. All signs must comply with all
Applicable Requirements.

 

35.             
Termination; Merger. Unless specifically stated otherwise in writing by Lessor, the voluntary or other surrender
of this Lease by Lessee, the mutual termination or cancellation hereof, or a termination hereof by Lessor for Breach by Lessee,
shall automatically terminate any sublease or lesser estate in the Premises; provided, however, that Lessor may elect to continue
any one or all existing subtenancies. Lessor’s failure within 10 days following any such event to elect to the contrary by
written notice to the holder of any such lesser interest, shall constitute Lessor’s election to have such event constitute
the termination of such interest.

 

36.             
Consents. All requests for consent shall be in writing. Except as otherwise provided herein, wherever in this Lease
the consent of a Party is required to an act by or for the other Party, such consent shall not be unreasonably withheld or delayed.
Lessor’s actual reasonable costs and expenses (including but not limited to architects’, attorneys’, engineers’
and other consultants’ fees) incurred in the consideration of, or response to, a request by Lessee for any Lessor consent,
including but not limited to consents to an assignment, a subletting or the presence or use of a Hazardous Substance, shall be
paid by Lessee upon receipt of an invoice and supporting documentation therefor. Lessor’s consent to any act, assignment
or subletting shall not constitute an acknowledgment that no Default or Breach by Lessee of this Lease exists, nor shall such consent
be deemed a waiver of any then existing Default or Breach, except as may be otherwise specifically stated in writing by Lessor
at the time of such consent. The failure to specify herein any particular condition to Lessor’s consent shall not preclude
the imposition by Lessor at the time of consent of such further or other conditions as are then reasonable with reference to the
particular matter for which consent is being given. In the event that either Party disagrees with any determination made by the
other hereunder and reasonably requests the reasons for such determination, the determining party shall furnish its reasons in
writing and in reasonable detail within 10 business days following such request.

 

37.             
Guarantor.

 

37.1         
Execution. The Guarantors, if any, shall each execute a guaranty in the form most recently published by the AIR Commercial
Real Estate Association, and each such Guarantor shall have the same obligations as Lessee under this Lease.

 

37.2         
Default. It shall constitute a Default of the Lessee if any Guarantor fails or refuses, upon request to provide:
(a) evidence of the execution of the guaranty, including the authority of the party signing on Guarantor’s behalf to obligate
Guarantor, and in the case of a corporate Guarantor, a certified copy of a resolution of its board of directors authorizing the
making of such guaranty, (b) current financial statements, (c) an Estoppel Certificate, or (d) written confirmation that the guaranty
is still in effect.

 

     

     

    

 

38.             
Quiet Possession. Subject to payment by Lessee of the Rent and performance of all of the covenants, conditions and
provisions on Lessee’s part to be observed and performed under this Lease, Lessee shall have quiet possession and quiet enjoyment
of the Premises during the term hereof.

 

39.             
Options. If Lessee is granted any Option, as defined below, then the following provisions shall apply:

 

39.1         
Definition. “Option” shall mean: (a) the right to extend or reduce the term of or renew this Lease
or to extend or reduce the term of or renew any lease that Lessee has on other property of Lessor; (b) the right of first refusal
or first offer to lease either the Premises or other property of Lessor; (c) the right to purchase, the right of first offer to
purchase or the right of first refusal to purchase the Premises or other property of Lessor.

 

39.2         
Options Personal To Original Lessee. Any Option granted to Lessee in this Lease is personal to the original Lessee,
and cannot be assigned or exercised by anyone other than said original Lessee and only while the original Lessee is in full possession
of the Premises and, if requested by Lessor, with Lessee certifying that Lessee has no intention of thereafter assigning or subletting.

 

39.3         
Multiple Options. In the event that Lessee has any multiple Options to extend or renew this Lease, a later Option
cannot be exercised unless the prior Options have been validly exercised.

 

39.4         
Effect of Default on Options.

 

(a)               
Lessee shall have no right to exercise an Option: (i) during the period commencing with the giving of any notice of Default
and continuing until said Default is cured, (ii) during the period of time any Rent is unpaid (without regard to whether notice
thereof is given Lessee), (iii) during the time Lessee is in Breach of this Lease, or (iv) in the event that Lessee has been given
3 or more notices of separate Default, whether or not the Defaults are cured, during the 12 month period immediately preceding
the exercise of the Option.

 

(b)              
The period of time within which an Option may be exercised shall not be extended or enlarged by reason of Lessee’s
inability to exercise an Option because of the provisions of Paragraph 39.4(a).

 

(c)               
An Option shall terminate and be of no further force or effect, notwithstanding Lessee’s due and timely exercise of
the Option, if, after such exercise and prior to the commencement of the extended term or completion of the purchase, (i) Lessee
fails to pay Rent for a period of 30 days after such Rent becomes due (without any necessity of Lessor to give notice thereof),
or (ii) if Lessee commits a Breach of this Lease.

 

     

     

    

 

40.             
Multiple Buildings. If the Premises are a part of a group of buildings controlled by Lessor, Lessee agrees that it
will abide by and conform to all reasonable rules and regulations which Lessor may make from time to time for the management, safety,
and care of said properties, including the care and cleanliness of the grounds and including the parking, loading and unloading
of vehicles, and to cause its employees, suppliers, shippers, customers, contractors and invitees to so abide and conform. Lessee
also agrees to pay its fair share of common expenses incurred in connection with such rules and regulations.

 

41.             
Security Measures. Lessee hereby acknowledges that the Rent payable to Lessor hereunder does not include the cost
of guard service or other security measures, and that Lessor shall have no obligation whatsoever to provide same. Lessee assumes
all responsibility for the protection of the Premises, Lessee, its agents and invitees and their property from the acts of third
parties.

 

42.             
Reservations. Lessor reserves to itself the right, from time to time, to grant, without the consent or joinder of
Lessee, such easements, rights and dedications that Lessor deems necessary, and to cause the recordation of parcel maps and restrictions,
so long as such easements, rights, dedications, maps and restrictions do not unreasonably interfere with the use of the Premises
by Lessee. Lessee agrees to sign any documents reasonably requested by Lessor to effectuate any such easement rights, dedication,
map or restrictions.

 

43.             
Performance Under Protest. If at any time a dispute shall arise as to any amount or sum of money to be paid by one
Party to the other under the provisions hereof, the Party against whom the obligation to pay the money is asserted shall have the
right to make payment “under protest” and such payment shall not be regarded as a voluntary payment and there
shall survive the right on the part of said Party to institute suit for recovery of such sum. If it shall be adjudged that there
was no legal obligation on the part of said Party to pay such sum or any part thereof, said Party shall be entitled to recover
such sum or so much thereof as it was not legally required to pay. A Party who does not initiate suit for the recovery of sums
paid “under protest” with 6 months shall be deemed to have waived its right to protest such payment.

 

44.             
Authority; Multiple Parties; Execution.

 

(a)               
If either Party hereto is a corporation, trust, limited liability company, partnership, or similar entity, each individual
executing this Lease on behalf of such entity represents and warrants that he or she is duly authorized to execute and deliver
this Lease on its behalf. Each Party shall, within 30 days after request, deliver to the other Party satisfactory evidence of such
authority.

 

(b)              
If this Lease is executed by more than one person or entity as “Lessee”, each such person or entity shall
be jointly and severally liable hereunder. It is agreed that any one of the named Lessees shall be empowered to execute any amendment
to this Lease, or other document ancillary thereto and bind all of the named Lessees, and Lessor may rely on the same as if all
of the named Lessees had executed such document.

 

     

     

    

 

(c)               
This Lease may be executed by the Parties in counterparts, each of which shall be deemed an original and all of which together
shall constitute one and the same instrument.

 

45.             
Conflict. Any conflict between the printed provisions of this Lease and typewritten or handwritten provisions shall
be controlled by the typewritten or handwritten provisions.

 

46.             
Offer. Preparation of this Lease by either Party or their agent and submission of same to the other Party shall not
be deemed an offer to lease to the other Party. This Lease is not intended to be binding until executed and delivered by all Parties
hereto.

 

47.             
Amendments. This Lease may be modified only in writing, signed by the Parties in interest at the time of the modification.
As long as they do not materially change Lessee’s obligations hereunder, Lessee agrees to make such reasonable non-monetary
modifications to this Lease as may be reasonably required by a Lender in connection with the obtaining of normal financing or refinancing
of the Premises.

 

48.             
Waiver of Jury Trial. THE PARTIES HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING
INVOLVING THE PROPERTY OR ARISING OUT OF THIS AGREEMENT.

 

49.             
Arbitration of Disputes. An Addendum requiring the Arbitration of all disputes between the Parties and/or Brokers
arising out of this Lease

☐
is x is not attached to this Lease.

 

50.             
Accessibility; Americans with Disabilities Act.

(a)               
The Premises:

xHave
not undergone an inspection by a Certified Access Specialist (CASp). Note: A Certified Access Specialist (CASp) can inspect the
subject premises and determine whether the subject premises comply with all of the applicable construction-related accessibility
standards under state law. Although state law does not require a CASp inspection of the subject premises, the commercial property
owner or lessor may not prohibit the lessee or tenant from obtaining a CASp inspection of the subject premises for the occupancy
or potential occupancy of the lessee or tenant, if requested by the lessee or tenant. The parties shall mutually agree on the
arrangements for the time and manner of the CASp inspection, the payment of the fee for the CASp inspection, and the cost of making
any repairs necessary to correct violations of construction-related accessibility standards within the premises.

 

☐
Have undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the Premises met all applicable
construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it
received a copy of the inspection report at least 48 hours prior to executing this Lease and agrees to keep such report confidential.

 

☐Have
undergone an inspection by a Certified Access Specialist (CASp) and it was determined that the Premises did not meet all applicable
construction-related accessibility standards pursuant to California Civil Code §55.51 et seq. Lessee acknowledges that it
received a copy of the inspection report at least 48 hours prior to executing this Lease and agrees to keep such report confidential
except as necessary to complete repairs and corrections of violations of construction related accessibility standards.

 

In the event that the Premises have been
issued an inspection report by a CASp the Lessor shall provide a copy of the disability access inspection certificate to Lessee
within 7 days of the execution of this Lease.

 

     

     

    

 

(b)              
Since compliance with the Americans with Disabilities Act (ADA) and other state and local accessibility statutes are dependent
upon Lessee’s specific use of the Premises, Lessor makes no warranty or representation as to whether or not the Premises
comply with ADA or any similar legislation. In the event that Lessee’s use of the Premises requires modifications or additions
to the Premises in order to be in compliance with ADA or other accessibility statutes, Lessee agrees to make any such necessary
modifications and/or additions at Lessee’s expense.

LESSOR AND LESSEE HAVE CAREFULLY READ AND
REVIEWED THIS LEASE AND EACH TERM AND PROVISION CONTAINED HEREIN, AND

 

BY THE EXECUTION OF THIS LEASE SHOW
THEIR INFORMED AND VOLUNTARY CONSENT THERETO. THE PARTIES HEREBY AGREE THAT, AT THE TIME THIS LEASE IS EXECUTED, THE TERMS OF THIS
LEASE ARE COMMERCIALLY REASONABLE AND EFFECTUATE THE INTENT AND PURPOSE OF LESSOR AND LESSEE WITH RESPECT TO THE PREMISES.

 

ATTENTION: NO REPRESENTATION
OR RECOMMENDATION IS MADE BY THE AIR COMMERCIAL REAL ESTATE ASSOCIATION OR BY ANY BROKER AS TO THE LEGAL SUFFICIENCY, LEGAL EFFECT,
OR TAX CONSEQUENCES OF THIS LEASE OR THE TRANSACTION TO WHICH IT RELATES. THE PARTIES ARE URGED TO:

 

1.       SEEK
ADVICE OF COUNSEL AS TO THE LEGAL AND TAX CONSEQUENCES OF THIS LEASE.

 

2.       RETAIN
APPROPRIATE CONSULTANTS TO REVIEW AND INVESTIGATE THE CONDITION OF THE PREMISES. SAID INVESTIGATION SHOULD INCLUDE BUT NOT BE LIMITED
TO: THE POSSIBLE PRESENCE OF HAZARDOUS SUBSTANCES, THE ZONING OF THE PREMISES, THE STRUCTURAL INTEGRITY, THE CONDITION OF THE ROOF
AND OPERATING SYSTEMS, AND THE SUITABILITY OF THE PREMISES FOR LESSEE’S INTENDED USE.

 

WARNING: IF THE PREMISES IS LOCATED
IN A STATE OTHER THAN CALIFORNIA, CERTAIN PROVISIONS OF THE LEASE MAY NEED TO BE REVISED TO COMPLY WITH THE LAWS OF THE STATE IN
WHICH THE PREMISES IS LOCATED.

 

 

The parties hereto have executed this Lease
at the place and on the dates specified above their respective signatures.

 

	Executed at:	 	 	Executed at:	 
	On January 10, 2017____________________	 	On:  January 10, 2017______________________
	 	 	 
	By LESSOR:	 	BY LESSEE:
	 	 	 
	Hellyer-DMHall Properties, LLC	 	Velodyne LiDAR, Inc.
		 	
	 	 	 
	By:  	/s/ David S. Hall	 	By:  	/s/ Michael Jellen
	Name Printed: 	 David S. Hall	 	Name Printed: 	 Michael Jellen
	Title:  	Managing Member	 	Title: 	 President & COO
	By: 	 	 	By:  	 
	Name Printed 	 	 	Name Printed:  	 
	Title: 	 	 	Title:  	 
	Address:  	5521 Hellyer Avenue, San Jose, CA 95138	 	Address:  	345 Digital Drive, Morgan Hill, CA 95037
		 	
	Telephone:  	 	 	Telephone:  	 
	Facsimile:  (___) 	 	 	Facsimile:  (___) 	 
	Email:  	 	 	Email:  	 
	Email:  	 	 	Email:  	 
	Federal ID No. 	 	 	Federal ID No. 	 
	 	 	 
	BROKER:	 	BROKER:
		 	
		 	
	Attn:  	 	 	Attn:  	 
	Title:  	 	 	Title:  	 
	Telephone:  (___) 	 	 	Telephone:  (___) 	 
	Facsimile:  (___) 	 	 	Facsimile:  (___) 	 
	Email:  	 	 	Email:  	 
	Federal ID No. 	 	 	Federal ID No. 	 
	Broker/Agent BRE License #:  	 	 	Broker/Agent BRE License #:  	 
		 	
	 	 	 

 

     

     

    

 

NOTICE: These forms are often modified
to meet changing requirements of law and industry needs. Always write or call to make sure you are utilizing the most current form:
AIR Commercial Real Estate Association, 500 N Brand Blvd, Suite 900, Glendale, CA 91203.

Telephone No. (213) 687-8777. Fax No.:
(213) 687-8616.

 

© Copyright 2001 - By AIR Commercial
Real Estate Association. All rights reserved.

 

No part of these works may be reproduced
in any form without permission in writing.

 

     

     

    

 

ADDENDUM TO AIR COMMERCIAL REAL ESTATE
ASSOCIATION STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE

 

This Addendum to AIR
Commercial Real Estate Association Standard Industrial/Commercial Single-Tenant Lease (the “Addendum”) modifies
and amends that certain AIR Commercial Real Estate Association Standard Industrial/Commercial Single-Tenant Lease (“Lease”)
dated January 9, 2017, between Hellyer-DMHal1 Properties, LLC, a California limited liability company, as Seller (“Lessor”)
and Velodyne LiDAR, Inc., (“Lessee”), for the lease of (i) that approximately 203,807 square foot R&D/Manufacturing
building on that approximately 11.9 acre parcel, commonly known as 5521 Hellyer Avenue, San Jose, California (“Property”).
To the extent of any conflict in the terms herein and the terms of the Lease, the terms of this Addendum shall control. Except
as set forth below, the terms of the Lease shall remain in full force and effect. Unless otherwise specified, references to paragraph
numbers shall be to those in the Lease and defined terms used herein shall have the same meaning ascribed thereto under the Lease.

 

ADDENDUM 

 

1.                 
Annual Rent Increase. The Base Rent shall increase three percent (3%) per year beginning on January 1, 2018 according to
the following schedule:

 

	Time Period	Base Rent
	January 1, 2018 — December 31, 2018	$241,411.40 per month
	January 1, 2019 — December 31, 2019	$248,653.74 per month
	January 1, 2020 — December 31, 2020	$256,113.35 per month
	January 1, 2021 — December 31, 2021	$263,796.75 per month

 

2.                 
Assignment and Subletting. Section 12.1(b) of the Lease is replaced with the following: “Lessee may
not assign this Agreement without consent, which consent shall not be unreasonably withheld, in connection with a merger, reorganization,
consolidation, change of control, or sale of all or substantially all of the assets to which this Agreement pertains.”

 

[Signatures on following page]

 

     

     

    

 

IN WITNESS WHEREOF,
the parties have executed this Addendum as of the date the parties executed the Lease.

 

 

	LESSOR	 	LESSEE
	 	 	 
	Hellyer-DMHall Properties, LLC, a California limited liability company	 	Velodyne LiDAR, Inc., a Delaware corporation
	 	 	 
	By:	/s/ David S. Hall	 	By:	/s/ Michael Jellen
	Name:	David S. Hall	 	Name:	Michael Jellen
	Title:	Managing Member	 	Title:	President & COO
	 	 	 
	 	 	 
	Dated:January 10, 2017	 	Dated:January 10, 2017

 

     

     

    

 

FIRST AMENDMENT TO AIR COMMERCIAL REAL
ESTATE ASSOCIATION STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT LEASE

 

This First Amendment
to AIR Commercial Real Estate Association Standard Industrial/Commercial Single-Tenant Lease (the “First Amendment”)
modifies and amends that certain AIR Commercial Real Estate Association Standard Industrial/Commercial Single-Tenant Lease (“Lease”)
dated January 9, 2017, between Hellyer-DMHall Properties, LLC, a California limited liability company, as Seller (“Lessor”)
and Velodyne LiDAR, Inc., (“Lessee”), for the lease of (i) that approximately 203,807 square foot R&D/Manufacturing
building on that approximately 11.9 acre parcel, commonly known as 5521 Hellyer Avenue, San Jose, California (“Property”).
To the extent of any conflict in the terms herein and the terms of the Lease, the terms of this First Amendment shall control.
Except as set forth below, the terms of the Lease shall remain in full force and effect. Unless otherwise specified, references
to paragraph numbers shall be to those in the Lease and defined terms used herein shall have the same meaning ascribed thereto
under the Lease.

 

AMENDMENT

 

1.                 
The Expiration Date in Section 1.3 of the Lease is extended to December 31, 2022.

 

2.                 
Section 1 of the Addendum to the Lease is deleted and replaced with the following:

 

Annual Rent Increase.
The Base Rent shall increase three percent (3%) per year beginning on January 1, 2018 according to the following schedule:

 

	Time Period	Base Rent
	January 1, 2018 — December 31, 2018	$241,411.40 per month
	January 1, 2019 — December 31, 2019	$248,653.74 per month
	January 1, 2020 — December 31, 2020	$256,113.35 per month
	January 1, 2021 — December 31, 2021	$263,796.75 per month
	January 1, 2022 — December 31, 2022	$271,710.65 per month

 

 

[Signatures on following page]

 

    1

     

    

 

IN WITNESS WHEREOF,
the parties have executed this First Amendment as of the date the parties executed the Lease

 

	LESSOR	 	LESSEE
	 	 	 
	Hellyer-DMHall Properties, LLC, a California limited liability company	 	Velodyne LiDAR, Inc., a Delaware corporation
	 	 	 
	By:	/s/ David S. Hall	 	By:	/s/ Michael Jellen
	Name:	David S. Hall	 	Name:	Michael Jellen
	Title:	Managing Member	 	Title:	President & COO
	 	 	 
	 	 	 
	Dated:February 27, 2017	 	Dated:February 28, 2017

 

     

     

    

 

SECOND AMENDMENT TO AIR COMMERCIAL
REAL ESTATE ASSOCIATION

STANDARD INDUSTRIAL/COMMERCIAL SINGLE-TENANT
LEASE

 

This Second Amendment
to AIR Commercial Real estate Association Standard Industrial/Commercial Single-Tenant Lease (the “Second Amendment”)
modifies and amends that certain AIR Commercial Real Estate Association Standard Industrial/Commercial Single-Tenant Lease (the
“Lease”) dated January 9, 2017, and amended February 28, 2017 (the First Amendment”) between Hellyer-DMHall
Properties, LLC, a California limited liability company (“Lessor”) and Velodyne-Lidar, Inc. (“Lessee”)
for the lease of (i) that approximately 203,807 square feet R&D/Manufacturing building on that approximately 11.9 acre parcel,
commonly known as 5521 Hellyer Avenue, San Jose, California (the “Property”). To the extent of any conflict
in the terms herein, and the terms of either the Lease, as amended, the terms of this Second Amendment shall control. Except as
set forth below, the terms of the Lease, as amended, shall remain in full force and effect. Unless otherwise specified, references
to paragraph numbers shall be those in the Lease and defined terms herein shall have the same meaning ascribed thereto under the
Lease, as amended.

 

AMENDMENT

 

		1.	The Expiration Date in Section 1.3 of the Lease, and Section 1 of the First Amendment is extended
to December 31, 2027.

 

		2.	Section 2 of the First Amendment to the Lease is supplemented by the following:

 

Annual Rent Increase.
The Base Rent shall increase three percent (3%) per year throughout the Term, according to the schedule set forth in the First
Amendment, and as further set forth below:

 

	Time Period	Base Rent
	January 1, 2023 - December 31, 2023	$279,861.97 per month
	January 1, 2024 – December 31, 2024	$288,257.83 per month
	January 1, 2025 – December 31, 2025	$296,905.56 per month
	January 1, 2026 – December 31, 2026	$305,812.73 per month
	January 1, 2027 – December 31, 2027	$314,987.11 per month

 

[Signatures on the following page]

 

	Pursuant to SEC Release 34-85381, certain identified information has been excluded from this Exhibit because it is (i) not material and (ii) would be competitively harmful if publicly disclosed.	22

 

      

     

    

 

IN WITNESS WHEREOF, the parties have
executed this Second Amendment as of the date set forth below.

 

	LESSOR	 	LESSEE
	 	 	 
	Hellyer-DMHall Properties, LLC,	 	Velodyne
                                         Lidar, Inc.,
	A California limited liability company	 	a
                                         Delaware corporation
	 	 	 
	 	 	 
	By:	/s/ David S. Hall	 	By:	/s/
                                         Drew Hamer
	Name:	 David S. Hall	 	Name:
	Title:	Managing Member	 	Title:
	 	 	 	 
	Dated:	__________________________	 	Dated:	October 11, 2019Exhibit 10.17

 

EMPLOYMENT AND

 PROTECTIVE
COVENANTS AGREEMENT

 

This
EMPLOYMENT AND PROTECTIVE COVENANTS AGREEMENT (this “Agreement”), effective as of May 29, 2018 (or such other date
as mutually agreed between the parties in writing) (the “Effective Date”), is between Grosvenor Capital
Management, L.P., an Illinois limited partnership (“Employer”), and Ms. Sandra Hurse (“Employee”);

 

WHEREAS,
Employer desires to employ Employee and Employee desires to accept such employment on the terms and subject to the conditions
set forth below; and

 

WHEREAS,
Employee’s first day of employment with Employer will be on the Effective Date.

 

NOW, THEREFORE, it is hereby agreed as follows:

 

§1
EMPLOYMENT. Effective on the Effective Date, Employer hereby agrees to employ Employee, and Employee hereby accepts such
employment, upon the terms and subject to the conditions set forth in this Agreement.

 

§2. FREEDOM
TO CONTRACT; REPRESENTATIONS. Employee represents and warrants to Employer that as of the Effective Date, (i) Employee is
free to enter into this Agreement, (ii) Employee is not party to or bound by any noncompetition or nonsolicitation agreement
with any Person (as defined in §12 below) other than the noncompetition and nonsolicitation agreements set forth in this
Agreement, (iii)  Employee’s
execution, delivery, and performance of this Agreement are not in violation or breach of, and do not conflict with or
constitute a default under, any agreement or commitment to which Employee is a party, and (iv) Employee is not a party to or
bound by any confidentiality or nondisclosure agreement or obligation except as previously disclosed to Employer in writing,
and Employee agrees with Employer not to use or disclose any information in violation of any such agreement or obligation, if
any.

 

§3. POSITION 

 

(a) 
Position. During the Initial Term (as defined in §4 below), Employee shall be
employed as Managing Director, Chief Human Resources Officer of Employer. In that capacity, Employee shall have the responsibilities
and duties assigned by Employer consistent with that position and shall act only within the scope of the authority granted. Employee’s
title and/or job duties may change at Employer’s sole discretion after the Initial Term.

 

(b) 
Commitment. Employee agrees to devote her full time and best efforts to the performance
of her duties to Employer while employed by Employer. Employee will comply with all lawful policies and procedures established
by Employer from time to time. Employee shall not engage in any activities that conflict with, or create an appearance of conflict
with respect to the interests of Employer or any of the members of the GCM Group (as defined in §8 below).

 

(c) 
Location.
Employee’s principal place of employment shall be at the Employer’s offices in Chicago, Illinois, subject to business
travel as necessary in order to perform Employee’s responsibilities of her position.

 

     

     

    

 

§4. TERM
OF EMPLOYMENT; POST EMPLOYMENT CONSULTING. The employment of Employee under this Agreement shall commence on the Effective
Date (which shall promptly be after Employee complies with her notice period requirement to Bank of America) and shall continue
thereafter until terminated pursuant to §6 hereof. The period commencing on the Effective Date through the second anniversary
of the Effective Date shall be the “Initial Term” for purposes of this Agreement. For the period commencing
upon the date that Employee first ceases to be employed by Employer or an Affiliate (as defined in §8 below) of Employer
(the “Employment Termination Date”) for any reason (other than a termination resulting from an event
described in §6(a) or §6(b)) and ending on the later of (x) the last day of the 12th full calendar month
following the Effective Date and (y) the last day of the 12th full calendar month following said Employment Termination
Date (such period, the “Post-Employment Consulting Period”), Employee shall consult with Employer from
time to time, at reasonable times, taking into account Employee’s professional and personal commitments, and on reasonable
notice, concerning such matters with respect to the business of Employer or Employee’s previous activities and responsibilities
with Employer, and for such amount of time, as Employer may reasonably request.

 

§5. COMPENSATION, BENEFITS AND EXPENSE
REIMBURSEMENT.

 

(a)
(i) Base Salary; Benefits; Expense Reimbursements. After the Effective Date and while Employee is employed, in consideration
for the services of Employee, Employer shall compensate Employee and provide benefits to Employee as determined by Employer; provided,
however, that (A) during the Initial Term the rate of base salary shall be Five Hundred Thousand U.S. Dollars ($500,000) per year
(the “Minimum Base Salary”), (B) Employer shall provide to and pay for Employee at least basic medical
insurance or other medical coverage, and (C) Employee may participate in any other group insurance plan maintained by Employer
from time to time in accordance with the terms of such plan. Employee’s base salary as in effect from time to time shall
be paid in substantially equal installments in accordance with Employer’s normal payroll practices, but no less frequently
than monthly. In addition, subject to the following sentence, Employer shall reimburse Employee for all reasonable expenses of
the types authorized by Employer and incurred by Employee in the performance of her duties hereunder. Employee shall comply with
such budget limitations and other policies and procedures of Employer relating to reimbursable expenses, including without limitation
those relating to approval and reporting, as are applicable to Employee, which policies and procedures are subject to change in
the sole discretion of Employer from time to time, and need not be the same as those applicable to other employees.

 

(ii) Annual
Bonus. For each 12-month period (or portion thereof) ending February 28, commencing with the period ending February 28, 2019
(each such period, a “Bonus Period”) during which Employee is employed by Employer under this Agreement,
Employee shall be eligible for a bonus in an amount to be determined in the sole discretion of Employer (the “Annual
Bonus”); provided, however, that (A) the Annual Bonus for the Bonus Period ending February 28, 2019
shall be Three Hundred Thousand U.S. Dollars ($300,000 in non-deferred cash), and (B) the Annual Bonus for the Bonus Period ending
February 28, 2020 shall be Three Hundred Thousand U.S. Dollars ($300,000 in non-deferred cash) ((A) and (B) each a “Minimum
Annual Bonus”). The Annual Bonus for a Bonus Period, if any, shall be determined and paid to Employee in a lump
sum not later than the 45th day after the end of the Bonus Period. Notwithstanding anything to the contrary in this §5(a)(ii),
except as provided in §7(c) and §7(e) with respect to a Minimum Annual Bonus, the Annual Bonus for a Bonus Period shall
not be payable to Employee if (A) Employee does not remain employed under this Agreement on the last day of the Bonus Period or
(B) a notice of termination of employment has been given by Employee or Employer on or before the last day of such Bonus Period.

 

    -2-

     

    

 

 

(iii) One-Time
Bonus. As additional consideration for Employee entering into this Agreement and the covenants and other undertakings of Employee
set forth in this Agreement, Employee shall receive a one-time cash bonus (“One-Time Bonus”)
of Six Hundred and Fifty Thousand U.S. Dollars ($650,000), as reimbursement to Employee of certain forfeited economics from her
previous employer and recognition of relocation. The One-Time Bonus shall be paid as follows: (A) Eighty-Five Thousand U.S. Dollars
($85,000) within 30 days of the Effective Date; (B) Three Hundred Thousand U.S. Dollars ($300,000) within 30 days of the first
anniversary of the Effective Date; (C) One Hundred and Fifty Thousand U.S. Dollars ($150,000) within 30 days of the second anniversary
of the Effective Date, and (D) One Hundred and Fifteen Thousand U.S. Dollars ($115,000) within 30 days of the third anniversary
of the Effective Date.

 

(iv) Grosvenor Management
Participation. As additional consideration for Employee entering into this Agreement, within 90 days of the Effective
Date (assuming Employee is actively employed by Employer at this time), Employee shall be admitted as a member to GCM
Grosvenor Management, LLC (“GCM Management”). In order to become a member of GCM Management,
Employee will be required to execute an Admission Agreement, by which Employee will agree to all of the terms and conditions
applicable to a member of GCM Management (the “Grosvenor Management Participation”).

 

(b) Post-Employment Consulting
Compensation. Subject to the further provisions of this §5(b), commencing on Employee’s Separation from
Service (within the meaning of Treas. Reg. §1.409A-1(h)(1)) for any reason other than an event described in §6(a)
or §6(b)), and continuing during the Post-Employment Consulting Period, Employer shall pay to Employee in full
compensation for Employee’s consulting services hereunder rendered during the Post-Employment Consulting Period, a
consulting fee at the annual rate of Five Hundred Thousand U.S. Dollars ($500,000) (“Post-Employment
Consulting Compensation”), payable in equal monthly installments; provided that if Employee is entitled to
receive a continuation of her Minimum Base Salary following said termination of employment pursuant to §7(c) or
§7(e), the amount of the Post-Employment Consulting Compensation payable for any month during the Post-Employment
Consulting Period, shall be reduced (but not below zero) by the amount of the total salary continuation payable to employee
for such month. Employee shall not be an employee during the Post Employment Consulting Period, shall not be entitled to the
benefits described in §5(a) or any other employee benefits during such period, and shall not be reimbursed for any
expenses unless and to the extent Employer otherwise agrees in a particular case in writing before such expenditure is
incurred. For the avoidance of doubt, the parties acknowledge that payment of monthly installments of Post-Employment
Consulting Compensation shall commence with the month following the month in which Employee has a Separation from Service
within the meaning of Treas. Reg. §1.409A-1(h)(1). Employee’s entitlement to and right to receive any Post
Employment Consulting Compensation is conditioned upon Employee’s execution and delivery to the Employer of (and
non-revocation of) a separation agreement that includes a general release, in the form that is then in use by Employer for
such purposes. Notwithstanding anything to the contrary in this Agreement, in the event that Employee commits a material
violation of any of the covenants contained in §8 or §9 of this Agreement, or fails to timely sign the separation
agreement referred to above, Employer may cease paying any unpaid installments of Post-Employment Consulting Compensation;
provided, however, that such nonpayment of Post-Employment Consulting Compensation shall not relieve Employee of her
obligations under §8 or §9 of this Agreement.

 

§6. TERMINATION. Employee’s employment
hereunder shall terminate:

 

(a) Death
or Disability. Upon the death of Employee during her employment hereunder or, at the option of Employer, in the event
Employee is Disabled (as defined below), upon written notice from Employer specifying the date on which Employee became
Disabled. Employee shall be deemed “Disabled” if a medical doctor selected by Employer certifies
that Employee has for one hundred eighty (180) days, consecutive or non-consecutive, in any twelve (12) month period, been
disabled in a manner which seriously interferes with her ability to perform her duties under this Agreement. Any failure or
refusal by Employee to submit to a medical examination for the purpose of certifying whether she is Disabled under this
§6(a) shall, at the option of Employer, be deemed to constitute conclusive evidence that Employee is Disabled.

 

    -3-

     

    

 

(b) For
Cause. For Cause immediately upon written notice by Employer to Employee. For purposes of this Agreement, a termination shall
be for “Cause” if any one or more of the following has occurred:

 

(i) 
Employee has committed (whether or not at the workplace) (A) an act of fraud, embezzlement, or misappropriation of funds
or property, (B) a breach of fiduciary duty, or (C) an illegal, unethical, or dishonest act or omission, including, but not limited
to, the offer, payment, solicitation or acceptance of any unlawful bribe or kickback; provided, however, that with respect to (C),
to the extent the relevant act or omission was not at the workplace, such act or omission could reasonably and materially impact
Employer’s reputation or inhibit Employee’s ability to fully perform her responsibilities for Employer; or

 

(ii) 
Employee has been indicted for or convicted by a court of competent jurisdiction of, or has pleaded guilty or nolo contendere
to, (A) any felony, (B) any crime involving moral turpitude, or (C) any other crime that reasonably could impair Employee’s
ability to perform her duties hereunder in a satisfactory manner; or

 

(iii) 
Employee has committed a willful breach of any of the covenants, terms or provisions of this Agreement, including without
limitation §8 or §9, or engaged in any other willful act or omission (whether or not at the workplace) that (A) injures
or has the potential to injure any Grosvenor Party, or (B) impairs or has the potential to impair Employee’s ability to
perform her duties hereunder in a satisfactory manner, which, if curable, remains uncured following ten (10) days written notice
to Employee describing such breach; or

 

(iv) 
Employee has willfully failed or refused to follow the lawful and good faith directions of Employer, which, if curable,
remains uncured following ten (10) days’ written notice to Employee describing such failure or refusal; or

 

(v) 
Employee has been grossly negligent or has engaged in willful misconduct in the performance of her duties hereunder; or

 

(vi) 
Employee has reported to work under the influence of alcohol, used or possessed illegal drugs (whether or not at the workplace),
or engaged in other conduct (whether or not in conjunction with her duties hereunder) that is detrimental to any Grosvenor Party
or causes any of them public disgrace, disrepute or material harm; or

 

(vii) 
Employee has violated any of the terms of Employer’s established policies or any applicable law, statute, regulation,
or rule of any government authority having jurisdiction over Employee’s business or affairs, which, if curable, remains uncured
following ten (10) days written notice to Employee describing such violation; or

 

(viii) 
Employee has failed to fulfill Employee’s obligations pursuant to §6(c) of this Agreement; or

 

(ix) 
Employee has resigned other than pursuant to the written notice required pursuant to §6(c) of this Agreement.

 

    -4-

     

    

 

For purposes of this definition, no act
or failure to act on the part of Employee shall be considered “willful” unless done, or omitted to be
done, by her in bad faith or without a reasonable belief that her action or omission is in the best interests of Employer or its
Affiliates.

 

(c) Without
Cause. Upon ninety (90) days’ written notice (the “Notice Period”) by either Employer or Employee
to the other party hereto, other than pursuant to §6(a), §6(b) or §6(d).

 

(d) For
Good Reason. For Good Reason (as defined below) upon ninety (90) days’ written notice (a Notice Period) by Employee
to Employer. For purposes of this Agreement, “Good Reason” means (i) a diminution in Employee’s
title; (ii) a material diminution of Employee’s duties, responsibilities, role or reporting line; (iii) the relocation of
Employee’s principal place of employment outside of Chicago, Illinois; and/or (iv) any material breach by the Employer of
any material provision of this Agreement. Notwithstanding the foregoing, Good Reason shall not exist unless Employee provides
Employer in the written notice identified above a detailed explanation of the circumstances claimed to constitute Good Reason
and the Employer fails to cure same within ten days of receipt of such notice, if curable.

 

During a Notice Period, Employer may, in its sole discretion:

 

		(i)	require Employee to perform only such duties as it may allocate to Employee (consistent with Employee’s
prior duties);

 

		(ii)	require Employee not to perform any of Employee’s duties;

 

		(iii)	require Employee not to have any contact with Past Clients, Present Clients, Potential Clients,
Marketing Agents, Investment Product Managers or Managers of Investment Product Managers (as those terms are defined in §9
below);

 

		(iv)	require Employee not to have any contact with such employees of Employer and/or any of the members
of the GCM Group (as defined in §8 below) as Employer shall determine; and

 

		(v)	exclude Employee from Employer’s premises.

 

During the Notice Period, Employee must
fulfill all of Employee’s duties and responsibilities set forth above as directed by Employer. Employee’s failure to
comply with this requirement may result in Termination for Cause as set forth in §6(b) above.

 

§7. RIGHTS, REMEDIES AND OBLIGATIONS ON
TERMINATION.

 

(a) Death or Disability. If Employee’s
employment is terminated under §6(a) hereof because of death or because Employee becomes Disabled, Employee (or her estate,
as applicable) shall be paid (i) base salary, at the rate of salary that was payable to Employee under §5(a)(i) at the time
said employment was terminated (prorated through the date of termination of employment); (ii) benefits (as specified in §5(a)(i))
through the date of termination of employment (unless a different date is specified by the terms of the applicable benefit plans);
and (iii) reimbursement of expenses (as specified in §5(a)(i)) through the date of termination of employment. All such payments
shall be made in accordance with Employer’s normal payroll practices.

 

    -5-

     

    

 

(b) For
Cause. If Employee’s employment is terminated under §6(b) hereof for Cause, Employee shall be paid (i) base salary
(at the rate of salary that was payable to Employee under §5(a)(i) at the time said employment was terminated) prorated through
the date of termination of employment; (ii) benefits (as specified in §5(a)(i)) through the date of termination of employment
(unless a different date is specified by the terms of the applicable benefit plans); and (iii) reimbursement of expenses (as specified
in §5(a)(i)) through the date of termination of employment.

 

(c) Without
Cause. If Employee’s employment is terminated by Employer under §6(c) hereof, Employee shall be paid (i) reimbursement
of expenses (as specified in §5(a)(i)) through the date of termination; (ii) base salary at the rate of salary that was payable
to Employee under §5(a)(i) at the time said employment was terminated (prorated through the date of termination of employment),
or, if such termination occurs before the end of the Initial Term, continued payment of the Minimum Base Salary through the end
of the Initial Term; and (iii) benefits (as specified in §5(a)(i)) through the date of termination of employment (unless
a different date is specified by the terms of the applicable benefit plans). In addition, if Employee’s employment is terminated
by Employer under §6(c) on or before the end of the Initial Term, Employee shall continue to be paid a Minimum Annual Bonus
in the amounts set forth in §5(a)(ii) and any unpaid installments of the One-Time Bonus in the amounts set forth in §5(a)(iii).
If, however, Employee’s employment is terminated by Employer under §6(c) after the end of the Initial Term, Employee
shall be paid any unpaid installments of the One-Time Bonus. All such payments shall be made in accordance with Employer’s
normal payroll practices except that (x) each Minimum Annual Bonus shall be payable as provided in §5(a)(ii) and (y) each
installment of the One-Time Bonus shall be payable as provided in §5(a)(iii). In addition to the foregoing, Employee shall
be paid the Post-Employment Consulting Compensation described in §5(b) hereof, subject to the provisions of §5(b) above.

 

(d) Resignation.
If Employee’s employment is terminated by Employee under §6(c) hereof, Employee shall be paid (i) reimbursement of
expenses through the date of termination; (ii) base salary at the rate of salary that was payable to Employee under §5(a)(i)
at the time said employment was terminated (prorated through the date of termination of employment); and (iii) benefits (as specified
in §5(a)(i)) through the date of termination of employment (unless a different date is specified by the terms of the applicable
benefit plans). In addition, Employee shall be paid the Post-Employment Consulting Compensation described in §5(b) hereof,
subject to the provisions of §5(b). Payments made pursuant to this §7 shall, to the fullest extent permitted by applicable
law, be subject to offset for any debts or money owed to Employer by Employee.

 

(e) For
Good Reason. If Employee’s employment is terminated by Employee under §6(d) hereof during the Initial Term, Employee
shall be paid (i) reimbursement of expenses (as specified in §5(a)(i)) through the date of termination; (ii) continued payment
of the Minimum Base Salary through the end of the Initial Term; and (iii) benefits (as specified in §5(a)(i)) through the
date of termination of employment (unless a different date is specified by the terms of the applicable benefit plans). In addition,
Employee shall continue to be paid a Minimum Annual Bonus in the amounts set forth in §5(a)(ii) and any unpaid installments
of the One-Time Bonus in the amounts set forth in §5(a)(iii). All such payments shall be made in accordance with Employer’s
normal payroll practices except that (x) each Minimum Annual Bonus shall be payable as provided in §5(a)(ii) and (y) each
installment of the One-Time Bonus shall be payable as provided in §5(a)(iii). In addition to the foregoing, Employee shall
be paid the Post-Employment Consulting Compensation described in §5(b) hereof, subject to the provisions of §5(b) above.

 

    -6-

     

    

 

(f) Miscellaneous.
Except as otherwise expressly set forth in this §7, Employee shall not be entitled to any severance or other compensation
from Employer after termination of employment whether in respect of the period before or after such termination or during or after
the Post-Employment Consulting Period. In addition,
in the event that Employee commits a material violation of any of the covenants contained in §8 or §9 of this Agreement
after the termination of Employee’s employment hereunder, or fails to timely sign the separation agreement described in
§5(b) above, Employer shall have no further obligation to make any payments to Employee under this §7; provided, however,
that such nonpayment shall not relieve Employee of her obligations under §8 or §9 of this Agreement.

 

§8. CONFIDENTIAL INFORMATION.

 

(a) Confidential
Information. “Confidential Information” as used herein shall mean all confidential and proprietary
information of Grosvenor Capital Management, L.P., GCM Customized Fund Investment Group, L.P., Grosvenor Holdings, L.L.C., Grosvenor
Holdings II, LLC, Grosvenor Capital Management Holdings, LLLP, their respective general partners, managing members, or managers,
and/or their respective affiliates (each a “Grosvenor Party” and collectively, the “GCM
Group”), including, without limitation, confidential or proprietary information regarding clients, client lists,
fee and pricing policies, marketing materials, portfolio selection, trading practices and policies, investment techniques, investment
processes, investment advisory, technical, and research data, methods of operation, proprietary computer programs, sales, products,
profits, costs, markets, key personnel, formulae, product applications, technical processes, trade secrets, descriptive materials
relating to any of the foregoing, and information provided to any Grosvenor Party by others which the Grosvenor Party is obligated
to keep confidential, whether such information is in the memory of Employee or is embodied in written, electronic, or other tangible
form.

 

(b) Non-Disclosure.
Employee recognizes and acknowledges that the Confidential Information constitutes valuable, special, and unique assets of the
GCM Group because, among other reasons, such Confidential Information (i) has been developed at substantial expense and effort
over a period of many years, (ii) constitutes a material competitive advantage for the Grosvenor Parties which is not known to
the general public or competitors, (iii) could not be duplicated by others without extraordinary expense, effort and time, (iv)
constitutes “trade secrets” as such term is used in the Illinois Trade Secrets Act (and counterpart
statutes of other states where the Grosvenor Parties conduct business) or (v) is information of a private nature. Employee shall
not, either before or at any time after the termination of her employment for any reason or under any circumstance, use for Employee’s
benefit or disclose to or use for the benefit of any other Person, any Confidential Information for any reason or purpose whatsoever,
directly or indirectly, except as may be required or otherwise appropriate pursuant to her employment by Employer, unless and
until such Confidential Information becomes public or generally available to Persons other than the Grosvenor Parties other than
as a consequence of the breach by Employee of her confidentiality obligations hereunder (after which such public or otherwise
generally available information shall no longer be deemed to be Confidential Information). Notwithstanding the foregoing, if Employee
is, in the opinion of counsel acceptable to Employer, compelled by law to disclose Confidential Information or else stand liable
for contempt or suffer other censure or penalty, Employee may disclose such information, provided, however, that Employee shall
promptly notify Employer of such requirement so that Employer may seek a protective order. Nothing in this §8 or otherwise
in this Agreement prohibits Employee from reporting possible violations of applicable federal law or regulation to any governmental
agency or entity, or making other disclosures that are protected under the whistleblower provisions of applicable federal law
or regulation. Employee does not need Employer’s prior authorization to make any such reports or disclosures, and Employee
is not required to notify Employer that Employee has made such reports or disclosures. Employee also expressly acknowledges that
Performance Records constitute Confidential Information. For the avoidance of doubt, Employee agrees that “Performance
Records” means the financial performance, track record, investment decisions and analysis or any related information
(whether alone or in aggregate or composite form) of (i) any current former or future Investment Product or account managed or
advised directly or indirectly by a GCM Group entity (a “GCM Grosvenor Fund”), irrespective of inception
date, investment date or date on which a GCM Group entity began managing or advising any such GCM Grosvenor Fund, and (ii) any
current, former or future investment made by a GCM Group entity, irrespective of the investment date of such investment. The parties
expressly acknowledge that Performance Records are the exclusive property of Employer (even if they are otherwise publicly available),
and Employee is not authorized to use or disclose them for any reason other than the Employer’s legitimate business purposes.

 

    -7-

     

    

  

(c) Return
of Information. Upon the termination of Employee’s employment, she shall cause to be delivered to Employer all documents
and data pertaining to the Confidential Information (whether maintained in electronic or tangible media) and shall not retain
any such documents or data, any reproductions (in whole or in part) thereof, or any extracts of any such documents or data containing
Confidential Information. Employer retains the right to examine any home or laptop computers or similar devices used by Employee,
and to copy and/or erase all Confidential Information contained on such computers and devices.

 

(d) Affiliate.
As used in this Agreement, “Affiliate” means with respect to a specified Person (i) any Person that
directly or indirectly through one or more intermediaries controls, alone or through an affiliated group, is controlled by, or
is under common control with such Person; (ii) any Person that is an officer, director, partner, or trustee of, or serves in a
similar capacity with respect to, such Person or of which such Person is an officer, director, partner, or trustee, or with respect
to which such Person serves in a similar capacity; (iii) any Person that, directly or indirectly, is the beneficial owner of 10%
or more of any class of equity securities of, or otherwise has a substantial beneficial interest in, the specified Person or of
which the specified Person is directly or indirectly the owner of 10% or more of any class of equity securities or in which the
specified Person has a substantial beneficial interest; (iv) any spouse, descendant, parent, grandparent, or descendant of a parent
or grandparent of the specified Person or of any Person identified in clauses (i) through (iii); and (v) any partnership, trust,
or other entity or arrangement for the principal benefit of the specified Person and/or of any one or more Persons identified
in clauses (i) through (iv).

 

§9. NON-COMPETITION
AND OTHER PROTECTIVE COVENANTS. Employee acknowledges that (i) Employer, by and through its subsidiaries and affiliated
companies, conducts business throughout the world, (ii) Employer and the GCM Group have a vital and continuing interest in
protecting that business, including without limitation, their existing and prospective relationships with clients and with
investment funds in which any Grosvenor Party or investment funds managed by any of them invest, its marketing agents, and
its officers, employees, and consultants (“Employer’s Interests”), (iii) the covenants
contained in this §9 are reasonably necessary to protect Employer’s Interests, including, but not limited to,
those identified above, and (iv) the restrictions and other provisions hereafter set forth in this §9 are reasonable and
necessary in all respects including, without limitation, duration, geographic reach, and scope of activities covered, to
provide such protection of Employer’s Interests. Employee further acknowledges and represents that the base salary,
Annual Bonus, One-Time Bonus, GCM Management Participation, and Post-Employment Consulting Compensation provided by Employer
under §5 adequately compensate Employee for any potential employment opportunities she may forego as a result of her
compliance with the protective covenants contained in this §9, that such compensation will enable her to provide for the
needs and wants of her family without violating such restrictions, and that the truth of the foregoing representations is a
material condition to her employment by Employer. Accordingly, Employee agrees to be bound by and to faithfully observe the
restrictions and covenants set forth hereafter in this §9 and further agrees that she will not do or attempt to do
indirectly, through any other Person, or by any other manner, means, or artifice, anything which this §9 prohibits her
from doing directly.

 

    -8-

     

    

 

(a) Investment Management or Advisory
Services. Employee shall not, directly or indirectly (except in a Permitted Capacity), until the expiration of the
Restricted Period, either (x) provide or offer (or attempt to provide or offer), whether as an officer, director, employee,
partner, consultant, shareholder, independent contractor or otherwise, investment advisory or investment management services
to any Person anywhere in the world, or (y) become an officer, director, partner, owner, or employee of, or contractor with
or consultant to, or invest in, any Person which provides services described in clause (x) or which acts as distribution
agent for (or otherwise sells or markets the services of) any Person that provides the services described in clause (x), to
the extent that an act described in this clause (y) relates to the business or activity of providing any of the services
described in clause (x). In the event that Employee requests and Employer agrees to waive the restrictions set forth under
this §9(a), Employee shall not be required to provide any post-employment consulting services as set forth under §4
and Employer shall not be required to pay Employee any Post-Employment Consulting Compensation.

 

(b) Multi-Manager Alternative Strategies.
Employee shall not, directly or indirectly (except in a Permitted Capacity), until the expiration of the Restricted Period, either:

 

(x) provide
or offer (or attempt to provide or offer), whether as an officer, director, employee, partner, consultant, shareholder, independent
contractor or otherwise, investment advisory or investment management services which are directly competitive with the types of
services that are or were, within the preceding two (2) years, offered by any Grosvenor Party (or by any investment fund directly
or indirectly managed by a Grosvenor Party) at any time during the period from the date Employee’s employment by Employer
commenced until the termination of Employee’s employment; or

 

(y) become
an officer, director, partner, owner, or employee of, or contractor with or consultant to, or invest in, any Person which provides
services described in subparagraph (x), or which acts as distribution agent for (or otherwise sells or markets the services of)
any Person that provides the services described in subparagraph (x), or which acts as a distribution agent for (or otherwise sells
or markets the services of) any Person which provides services described in subparagraph (x), to the extent that an act described
in this subparagraph (y) relates to the business or activity of providing any of the services described in subparagraph (x).

 

(c) Investment of Employee’s Own
Funds. Without the consent of Employer, Employee shall not, directly or indirectly, until the expiration of the
Restricted Period, invest (or assist in the investment of) Employee’s own funds or any other funds controlled, advised
or administered in any way by her in (i) any investment entity or vehicle of a type commonly known as a “hedge
fund,” a private equity fund, a fund of hedge funds, or a fund of private equity funds which invests in a manner
substantially similar to any Investment Product (as defined below), or (ii) any other type of investment product which is, at
the time of such investment, substantially similar to an investment product managed or sponsored directly or indirectly by a
Grosvenor Party (each such fund or product, a “Investment Product”), other than one managed
directly or indirectly by a Grosvenor Party.

 

(d) Interference.
Employee shall not, directly or indirectly (except in a Permitted Capacity), until the expiration of the Restricted Period, interfere
with the relations of any Grosvenor Party, or of any investment fund directly or indirectly managed by a Grosvenor Party, with
any Person who, at any time during the period from the date Employee’s employment by Employer commenced until the termination
of the employment of Employee, was or had been (u) a Past Client, Present Client or Potential Client, (v) a fund or other Investment
Product in which were invested any funds managed directly or indirectly by any Grosvenor Party, (w) a manager included in the
GCM Group’s database of investment managers, (x) the manager, advisor, general partner or similar entity or Person of any
Person described in clause (w) (a “Investment Product Manager”), (y) an officer, partner, director,
manager or other Affiliate of any such Investment Product Manager (a “Manager of an Investment Product
Manager”), or (z) any distribution agent or other Person who acts on behalf of a Grosvenor Party in selling
or marketing the services of such Grosvenor Party (“Marketing Agent”).

 

    -9-

     

    

 

(e) No Solicitation of Clients or Marketing
Agents. To the best of Employee’s knowledge, after due inquiry, Employee shall not, directly or indirectly (except in
a Permitted Capacity), until the expiration of the Restricted Period, solicit, enter into, or propose to enter into any employment,
consulting, investment management, investment advisory, or any other business relationship or agreement with any Past Client,
Present Client, Potential Client, or Marketing Agent.

 

(f) No Employee
Solicitation. Employee shall not, directly or indirectly (except in a Permitted Capacity), until the expiration of the
Restricted Period, induce or attempt to induce any officer or employee of or consultant to any Grosvenor Party (other than
Employee’s personal secretary) or of any investment fund managed directly or indirectly by it, to terminate her
employment or consultancy with such entity.

 

(g) Hiring
by Employee. Employee shall not, directly or indirectly (except in a Permitted Capacity), until the expiration of the Restricted
Period, directly or indirectly hire or retain, or attempt to hire or retain, any Person described in §9(f).

 

(h) Time
Limitation. During the period after the termination of employment, subsections 9(d) and 9(e) shall apply only to (i) Past
Clients, Present Clients and Potential Clients who were such as of such termination, (ii) Investment Products in which funds were
invested directly or indirectly by any Grosvenor Party or a manager of which was contained in the GCM Group’s database of
investment managers at any time within two (2) years prior to such termination, and to Investment Product Managers and Managers
of Investment Product Managers of such Investment Products, and (iii) Marketing Agents who acted in such capacity at any time
within two (2) years prior to such termination.

 

(i) Invest
In. For purposes of subsections 9(a) and (b), the term “invest in” shall be deemed to exclude any
investment or related series of investments constituting less than five per cent (5%) of the outstanding capital stock of a company
whose stock is publicly traded.

 

(j) Clients.
For purposes of subsections (d) and (e) of this §9, “Past Client” shall mean at any particular time,
any Person who at any time within two (2) years prior to such time has been but at such time is not, directly or indirectly, an
advisee, investment advisory customer or client of (or a partner of or investor in any investment vehicle (other than a registered
investment company) managed directly or indirectly by) a Grosvenor Party, or any consultant to such Person; “Present
Client” shall mean at any particular time, any Person who is at such time, directly or indirectly, an advisee, investment
advisory customer or client of (or a partner of or investor in any investment vehicle (other than a registered investment company)
managed directly or indirectly by) a Grosvenor Party, or any consultant to such Person; and “Potential Client”
shall mean at any particular time, (x) any Person to whom a Grosvenor Party, any investment fund directly or indirectly managed
by it, or any distribution agent or other Person acting on behalf of either, has within two (2) years prior to such time, offered
or solicited (by means of personal meeting, or a letter or written proposal specifically directed to the particular Person) to
serve as investment adviser or manager, or who has been offered or solicited to invest in any investment fund or other Investment
Product directly or indirectly managed by a Grosvenor Party (other than a registered investment company), but who is not at such
time, directly or indirectly, an advisee, investment advisory customer or client of (or a partner of or investor in any investment
vehicle (other than a registered investment company) managed directly or indirectly by) a Grosvenor Party, or (y) any consultant
to such Person.

 

    -10-

     

    

 

(k) Permitted Capacity. As used in this
Agreement, “Permitted Capacity” means Employee acting in her capacity as an employee of or consultant
to Employer or any Grosvenor Party.

 

(I) Restricted Period. As used in this
Agreement, “Restricted Period” means the period beginning on the Effective Date and ending on the first
anniversary of the effective date of Employee’s termination (i.e., the first anniversary of the date on which the
Notice Period, if applicable, has expired).

 

(m) No
Disparagement. Employee shall not at any time disparage any Grosvenor Party, any Affiliate thereof, or any officer or employee
of any of the foregoing. Employee shall not, without the prior written consent of Employer, make any written or oral statement
concerning the termination of Employee’s employment or any circumstances, terms or conditions relating thereto, which statement
is reasonably likely to become generally known to the public. Nothing in this §9(m) shall prevent Employee from testifying
truthfully in any judicial proceeding, law enforcement matter, or government investigation or lawfully filing or prosecuting any
claim against any of the foregoing Persons in accordance with §10 below. In the event of a termination of Employee by Employer
pursuant to §6(c), Employer agrees that it will utilize agreed upon talking points when communicating to parties not affiliated
with Employer regarding Employee’s termination; provided, however, that nothing in this §9(m) shall prevent Employer
from responding truthfully and accurately to any inquires by any Present Client or Potential Client or providing true and accurate
information in any judicial proceeding, law enforcement matter, or government investigation or lawfully filing or prosecuting
any claim against Employee in accordance with §10 below.

 

(n) Cooperation.
Both during and after Employee’s employment, Employee shall cooperate with Employer and the GCM Group, as reasonably requested
by Employer in connection with Employer’s or the GCM Group’s business, including but not limited to, any litigation,
arbitration, or other dispute in which Employer or the GCM Group has or may have an interest. Employee shall also cooperate with
Employer or the GCM Group in connection with any investigation, review or hearing of any federal, state or local governmental
authority that relates to events or occurrences that happened while Employee was employed by Employer. Employee’s reasonable
cooperation shall include, but not be limited to, being available to meet with Employer’s counsel, acting as a witness on
behalf of Employer, and treating all communications with Employer’s counsel as confidential. Employee acknowledges that
in any legal action, investigation, hearing or review covered by this §9(n), Employer expects Employee to provide only accurate
and truthful information or testimony. Employer will reimburse, and advance when reasonably requested, Employee for all reasonable
and necessary out-of-pocket expenses, including any reasonable attorneys’ fees, incurred in fulfilling Employee’s
obligations under this §9(n). With respect to attorneys’ fees, Employer may, rather than reimbursing or advancing out-of-pocket
expenses, make qualified legal counsel available to Employee at Employer’s cost. Such qualified legal counsel shall be independent
from any counsel engaged by Employer to the extent that the interests of Employer and Employee are or become adverse.

 

(o) Future
Business Activities. If, at any time or times in the future, any Grosvenor Party engages in business or activities in addition
to or in lieu of its present activity, the provisions of this §9 shall apply to all such business and activities.

 

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(p) Restrictions
Reasonable. Employee acknowledges and agrees that the restrictions and other provisions set forth above in this §9 are
reasonable, in all respects, including without limitation duration, geographic reach, and scope of activities covered, and will
not prevent Employee from earning a living in her profession. Further, Employee acknowledges that in agreeing to said restrictions,
she has received and has relied upon the independent advice and counsel of attorneys selected by her. Accordingly, Employee agrees
to be bound by and to faithfully observe the restrictions and covenants set forth above in this §9, and further agrees that
she will not do or attempt to do indirectly, through any other Person, or by any other manner, means, or artifice, anything which
this §9 prohibits her from doing directly.

 

(q) Revision.
The parties hereto expressly agree that in the event that any of the provisions, covenants, warranties or agreements in this §9
are held to be in any respect an unreasonable restriction upon Employee or are otherwise invalid, for whatsoever cause, then the
court so holding is hereby authorized to (i) reduce the territory to which said covenant, warranty or agreement pertains, the
period of time in which said covenant, warranty or agreement operates or the scope of activity to which said covenant, warranty
or agreement pertains or (ii) effect any other change to the extent necessary to render any of the restrictions contained in this
Agreement enforceable.

 

§10. ARBITRATION OF DISPUTES.

 

(a) Arbitration.
Notwithstanding anything to the contrary contained in this Agreement, but subject to the last sentence of this §10(a), all
claims, disputes and controversies (collectively “Claims”) between the parties hereto or between Employee
and any Grosvenor Party arising out of or in connection with Employee’s employment with Employer including but not limited
to Claims relating to the validity, construction, performance, breach, enforcement or termination of this Agreement, to Statutory
Claims (as defined below), or otherwise, shall be resolved by binding arbitration, before a single arbitrator, by JAMS in Chicago,
Illinois, in accordance with this §10 and, to the extent not inconsistent herewith, the JAMS Employment Arbitration Rules
& Procedures then in effect. Employee and Employer further agree that Claims by Employee or by Employer may only be brought
in the party’s individual capacity, and not as a plaintiff or class member in any purported class or representative proceeding.
In that regard, Employee specifically agrees not to file, initiate directly or indirectly, join, or participate in any class or
collective action. If a class or collective is filed purporting to include Employee, then Employee shall take all steps necessary
to refrain from opting in or to opt out or otherwise exclude Employee from the action, as appropriate. Employee and Employer hereby
waive their respective rights to have any such Claims tried before a judge or jury except as provided in the next sentence. Notwithstanding
the foregoing, either party hereto may immediately apply to a state or federal court in Cook County, Illinois for any provisional
remedy, including a temporary restraining order or preliminary injunction, to enforce the Employment Agreement which shall remain
in effect until a final award is made in the arbitration. “Statutory Claims” shall mean Claims that
arise under any federal, state or local act, statute, law, ordinance or rule related to employment including but not limited to
Title VII of the Civil Rights Act of 1964, Sections 1981 through 1988 of Title 42 of the United States Code, the Employee Retirement
Income Security Act of 1974 (“ERISA”) (except for any vested benefits under any tax qualified benefit
plan), the Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, the Fair Labor Standards Act, the Family
and Medical Leave Act, the Immigration Reform and Control Act, the Americans with Disabilities Act, the Workers Adjustment and
Retraining Notification Act, the Fair Credit Reporting Act, the Sarbanes-Oxley Act of 2002, the Occupational Safety and Health
Act, the Genetic Information Non-Discrimination Act, the New York State Human Rights Law, the New York City Human Rights Law,
the Illinois Human Rights Act, the Chicago Human Rights Ordinance, the Cook County Human Rights Ordinance, and any other state
or local law applicable to the employment of Employee. Only with respect to Statutory Claims, Employee shall bear only those costs
of arbitration Employee would otherwise bear had she filed an action in court. The arbitrator shall have the discretion to award
attorneys’ fees to a prevailing party.

 

    -12-

     

    

 

(b) Additional Rules &
Procedures. Any arbitration called for by this §10 shall be conducted in accordance with the following additional
rules and procedures:

 

(i) Employee
or Employer may demand arbitration pursuant to §10(a) hereof no later than six months after the events or omissions giving
rise to the demand for arbitration, by giving written notice of such demand (the “Demand Notice”) to
the other, which Demand Notice shall describe in reasonable detail the nature of the claim, dispute or controversy.

 

(ii) The
parties shall be allowed additional discovery, including additional depositions of parties and third-parties, if reasonable and
appropriate given the matters in dispute.

 

(iii) All
filings, submissions and presentations in the arbitration proceeding shall be confidential. Any decision by the arbitrator shall
be confidential and shall be shielded from public access.

 

(iv) The
arbitrator may award the same remedies (which may include attorney’s fees) to the prevailing party that would have been available
in court for the type of claim that was brought.

 

(c) Binding Character &
Jurisdiction. Any decision rendered by the arbitrator pursuant to this §10 shall be final and binding on, and
nonappealable by, the parties hereto, and judgment thereon may be entered by any state or federal court of competent
jurisdiction. Any action to enforce an award shall be filed under seal. The parties agree to submit to the jurisdiction of
the federal and state courts in Cook County, Illinois in any action seeking a provisional remedy, or any action for judgment
on the award entered by the arbitrator.

 

(d) Exclusivity. Except for actions seeking
a provisional remedy which a party elects to adjudicate in a court of law pursuant to §10(a), and except as set forth in
§10(e) below, arbitration shall be the exclusive method available for resolution of claims, disputes and controversies described
in §10(a) hereof, and Employer and Employee stipulate that the provisions hereof shall be a complete defense to any suit,
action, or proceeding in any court or before any administrative or arbitration tribunal with respect to any such claim, controversy
or dispute. The arbitrator shall have the exclusive authority to resolve any dispute relating to the interpretation, scope, applicability,
enforceability or formation of the agreement to arbitrate set forth in this §10. The provisions of this §10 shall survive
the dissolution of Employer.

 

(e) Governmental
Agencies. Nothing in this §10 or otherwise in this Agreement shall be deemed to prohibit Employee from contacting,
speaking, participating or cooperating with any governmental agency or self-regulatory organization in any investigation,
administrative proceeding or action.

 

(f) Severability. If the arbitrator
finds any part of this §10 illegal, invalid or unenforceable, such a finding shall not affect the legality, validity, or
enforceability of the remaining parts of §10, and the illegal, invalid or unenforceable part will be stricken from this
Agreement. Except as set forth in the preceding sentence, nothing contained herein shall be deemed to give the arbitrator any
authority, power or right to alter, change, amend, modify, add to, or subtract from any of the provisions of this
Agreement.

 

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§11.
PROPERTY ASSIGNMENT.

 

(a) Assignment.
To the fullest extent permitted by law, Employee shall assign, and does hereby assign, to Employer all of Employee’s right,
title and interest in and to all “Intellectual Property” (which, as used herein, shall include all original
works of authorship, developments, concepts, improvements or trade secrets, whether or not patentable or registrable under copyright
or similar laws) improved, developed, discovered or written by Employee, alone or in collaboration with others, while Employee
is employed by Employer.

 

(b) Further
Cooperation. Employee shall, upon request of Employer, execute, acknowledge, deliver and file any and all documents necessary
or useful to vest in Employer all of Employee’s right, title and interest in and to all such matters.

 

§12. GENERAL.

 

(a) Notices.
All notices and other communications hereunder shall be in writing or by written telecommunication, and shall be deemed to have
been duly given if delivered personally or if mailed by certified mail, return receipt requested, postage prepaid or sent by overnight
courier, or sent by written telecommunication or telecopy, to the relevant address set forth below, or to such other address as
the recipient of such notice or communication shall have specified to the other party hereto in accordance with this §12(a):

 

If to Employer, to:

 

Grosvenor Capital Management, L.P. 

900 North Michigan Avenue 

Suite 1100 

Chicago, Illinois 60611 

Attention: General Counsel

 

If to Employee, to
the attention of Employee at the address set forth in Employer’s records (or at such other address as may be provided in
writing by Employee to Employer).

 

Any such notice shall be effective only when received
at such address.

 

(b) Equitable
and Other Remedies. Employee acknowledges that violation of any of the provisions of §§8 and/or 9 of this Agreement
would result in irreparable injury to Employer, for which Employer would have no adequate remedy at law. Accordingly, it is agreed
that Employer shall be entitled, in addition to any and all other remedies provided by law and this Agreement (including, without
limitation, termination of Post-Employment Consulting Compensation under §5(b), to seek equitable relief with respect to
any such violation, including without limitation specific performance and preliminary and permanent injunctive relief, with respect
to any such violation, without the need to post any bond or other security, and Employee shall not assert that Employer will not
suffer irreparable injury or that it has an adequate remedy at law or is otherwise not entitled to equitable relief in such circumstances.
In addition to any other equitable or legal remedies to which Employer shall be entitled, Employee shall reimburse Employer for
all reasonable costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) incurred by Employer
in connection with the enforcement of §§8 and/or 9 of this Agreement.

 

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(c) Severability
and Modification. Each restriction which is separately stated in any section, subsection, paragraph, or clause of §§8
or 9 of this Agreement is independent of each other such restriction, and if any such restriction is held for any reason not to
be capable of modification so as to cause it to be valid and enforceable, then the invalidity or unenforceability of such restriction
shall not invalidate, affect, or impair in any way the validity and enforceability of any other such restriction.

 

(d) Person.
For purposes of this Agreement, “Person” means and includes a natural person and any other person, entity,
trust or fiduciary arrangement, partnership, corporation, limited liability company, group, or association, whether or not recognized
by law as having a separate legal personality.

 

(e) Waivers.
No delay or omission by either party hereto in exercising any right, power or privilege hereunder shall impair such right, power
or privilege, nor shall any single or partial exercise of any such right, power or privilege preclude any further exercise thereof
or the exercise of any other right, power or privilege.

 

(f) Counterparts.
This Agreement may be executed in multiple counterparts, any of which may bear the signature of only one of the two parties, and
each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.

 

(g) Assigns.
This Agreement shall be binding upon and inure to the benefit of the heirs and successors of each of the parties hereto, except
that the employment obligations of and restrictions upon Employee shall not bind her heirs or successors. Neither this Agreement
nor the obligations of any party hereunder shall be assignable or transferable by such party without the prior written consent
of the other party hereto, except Employer may assign its rights and obligations hereunder in connection with the sale of its
entire business.

 

(h) Entire
Agreement; Supercession. This Agreement contains the entire understanding of the parties with respect to the subject matter
hereof, and it supercedes, from and after the Effective Date, all other prior agreements and understandings relating to the subject
matter hereof. This Agreement shall not be amended except by a written instrument hereafter signed by each of the parties hereto,
and no waiver or release of a party’s rights hereunder shall be effective unless made in writing by the party whose rights
are thereby waived or released. This Agreement may not be amended by e-mail.

 

(i) Governing
Law. This Agreement and the performance hereof shall be construed and governed in accordance with the laws of the State
of Illinois.

 

(j) IRC Section
409A. If and to the extent that any amounts payable under §5 of this Agreement may be deemed to be payments of deferred
compensation subject to Section 409A of the Internal Revenue Code of 1986, as amended, the Parties agree that this Agreement shall
be interpreted and administered in accordance with the requirements of such Section 409A, which are hereby incorporated by reference.
Employer shall have, in its sole discretion, the right to modify the timing of any payments to be made under this Agreement if,
and to the extent, required to comply with such Section 409A.

 

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IN WITNESS WHEREOF,
and intending to be legally bound hereby, the parties hereto have caused this Agreement to be duly executed as of the Effective
Date.

 

	 	EMPLOYER
	 	 	 
	 	GROSVENOR
    CAPITAL MANAGEMENT, L.P.
	 	 	 
	Date: February 23, 2018	By: 	/s/ Michael J. Sacks
	 	 	Michael J. Sacks
	 	 	Chief Executive Officer
	 	 	 
	 	EMPLOYEE
	 	 	 
	Date: February 23, 2018	/s/ Sandra Hurse 
	 	Sandra Hurse

 

 

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