Document:

Exhibit

{Exhibit 10.1 to Form 8-K filed 5.28.2019 - AK Steel Omnibus Supplemental Incentive Plan v 1}
EXHIBIT 10.1

AK STEEL HOLDING CORPORATION

2019 OMNIBUS SUPPLEMENTAL INCENTIVE PLAN
______________________________________________________

(as of May 23, 2019)

    
    

AK STEEL HOLDING CORPORATION

OMNIBUS SUPPLEMENTAL INCENTIVE PLAN
(Effective May 23, 2019)

Article 1.  Purpose, and Duration.

1.1    Establishment of Plan.  This 2019 Omnibus Supplemental Incentive Plan (the “Plan”) hereby is established, subject to its approval by majority vote of the stockholders of AK Steel Holding Corporation, a Delaware corporation (the “Company”).  The Effective Date of the Plan shall be the later of May 23, 2019, or the date the Plan is approved by a majority vote of the Company’s stockholders (the “Effective Date”).  The Plan permits the grant of awards, including without limitation Nonqualified Stock Options, awards of Restricted Stock, awards of Restricted Stock Units, awards of Performance Awards. 

1.2    Purpose of the Plan.  The purpose of the Plan is to promote the success and enhance the value of the Company by linking the personal interests of directors, executive officers and key employees of the Company and of its subsidiaries and affiliates to those of the Company’s stockholders, and by providing those individuals with an incentive for outstanding performance.  The Plan is further intended to enhance the Company’s ability to motivate, attract, and retain the services of these individuals upon whose judgment, interest, and special effort the successful conduct of its business is largely dependent.

1.3    Duration of the Plan.  The Plan shall remain in effect until all Shares subject to it shall have been purchased or otherwise issued and acquired or are no longer available for Awards according to the Plan’s provisions, subject to the right of the Board to terminate the Plan at any time in accordance with Article 11 herein.  In no event may an Award be granted under the Plan on or after May 31, 2029.  Termination of the Plan shall not affect the rights of any person under an outstanding Award Agreement unless otherwise specifically provided in such Award Agreement.

1.4    No Awards under Prior Plan.  Following the Effective Date of this Plan, including its approval by a majority of the Company’s stockholders, the Board (as herein defined) immediately shall cause no further options, awards or other grants to be made under the Company’s Stock Incentive Plan, which was amended and restated as of May 26, 2016 (the “Prior Plan”).  Options, awards or other grants made under the Prior Plan in any event shall be governed by the terms and conditions of the Plan Prior, and the option or award agreements used to effect said options, awards or other grants.  

Article 2.  Definitions.  Whenever used in the Plan, the following terms shall have the meanings set forth below and, when the meaning is intended, the initial letter of the word is capitalized:

(a)    “Award” includes, without limitation, Option Awards, Restricted Stock Awards, Restricted Stock Unit Awards (or the cash equivalent thereof), Performance Awards, which are valued in whole or in part by reference to, or are otherwise based on, the Company’s stock, performance goals or other factors, each on a stand alone or combination basis, as described in or granted under this Plan.

(b)    “Award Agreement” means the agreement or other writing (including in electronic form) that sets forth the terms and conditions of each Award, including any amendment or modification thereof.  A Participant is bound by the terms of an Award Agreement and this Plan by reason of accepting the benefits of the Award.

(c)    “Beneficial Owner” shall have the meaning ascribed to such term in Rule l3d-3 of the General Rules and Regulations under the Exchange Act.

(d)    “Beneficiary” means the person or persons named by a Participant to succeed to the Participant’s rights under any then unexpired Award Agreements.  Each such designation shall: (i) revoke all prior designations by the same Participant; (ii) be in a form acceptable to the Committee; and (iii) be effective only when delivered to the Committee by the Participant in writing and during the Participant’s lifetime.  No beneficiary shall be entitled to any notice of any change in a designation of beneficiary.  In the absence of any such designation, the Participant’s estate shall be the beneficiary.

(e)    “Board” means the Board of Directors of the Company.

(f)    “Cause” means, except as specifically provided to the contrary in the Award Agreement: (i) conviction of, or entering a plea of guilty or nolo contendere to, a misdemeanor involving moral turpitude or a felony; (ii) engagement in fraud, misappropriation or embezzlement with respect to the Company or with respect to any subsidiary or affiliate thereof; (iii) willful 

failure, gross negligence or gross misconduct in the performance of duties for the Company or any subsidiary or affiliate thereof; (iv) any violation of Company policy (including, without limitation, any violation of any Company personnel policies or non-harassment policies) which could reasonably be expected  cause, or result in, the Company incurring liability or  ascertainable loss; and/or (v) breach of a fiduciary duty to the Company or to any subsidiary or affiliate thereof.  

(g)    “Change of Control” shall be deemed to have occurred if:

(i)    any person (other than a trustee or other fiduciary holding securities under an employee benefit plan in which employees of the Company participate) becomes the Beneficial Owner, directly or indirectly, of securities of the Company representing forty percent (40%) or more of the combined voting power of the Company’s then outstanding voting securities; or

(ii)    during any period of two (2) consecutive years, individuals who at the beginning of such period constitute the Board, including for this purpose any new Director of the Company (other than a Director designated by a person who has entered into an agreement with the Company to effect a transaction described in clauses (i) or (iii) of this Subsection (g)) whose election by the Board or nomination for election by the stockholders of the Company was approved by a vote of at least two-thirds (2/3) of the Directors then still in office who either were Directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority of the Board; or

(iii)    there is a merger or consolidation of the Company with any other corporation (other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent, either by remaining outstanding or by being converted into voting securities of the surviving entity, at least fifty percent of the combined voting power of the voting securities of the Company or such surviving entity outstanding immediately after such merger or consolidation) or there is a complete liquidation of the Company or sale or disposition by the Company of all or substantially all of the Company’s assets.

(h)    “Code” means the Internal Revenue Code of 1986, as amended and in effect from time to time.

(i)    “Committee” means the Management Development and Compensation Committee of the Board, or such other committee designated by the Board to administer this Plan.  The Committee, however organized and constituted, shall consist of not less than two members of the Board who shall be appointed from time to time by, and shall serve at the discretion of, the Board.  The Committee shall be comprised solely of Directors who are: (i) “independent directors” as defined in the rules and regulations of the New York Stock Exchange; and (ii) “non-employee directors” as defined in Rule 16b-3 promulgated under the Exchange Act.  

(j)    “Company” means AK Steel Holding Corporation, a Delaware corporation, or any successor thereto, as provided in Article 14 herein.

(k)    [Reserved.]

(l)    “Director” means any individual who is a member of the Board and who is not concurrently an Employee.

(m)    “Disability” means a physical or mental condition which, in the judgment of the Committee, renders a Director unable to serve or an Employee unable to perform the regular and recurring duties of his position with the Company or, in the case of an Employee, the duties of another available position with the Company for which such Employee is suited by education, background and training.  Any Employee found to be qualified for disability benefits under AK Steel Holding Corporation’s long-term disability plan or by the federal Social Security Administration will be considered to be disabled under this Plan, but qualification for such benefits shall not be required as evidence of disability hereunder.

(n)    “Employee” means an individual while such individual is a common law employee of the Company or of any subsidiary or affiliate thereof, including AK Steel Corporation (regardless whether separately, or concurrently).  A Director will not qualify as an Employee solely by reason of his position as a Director and, unless otherwise employed by the Company or by at least one subsidiary or affiliate thereof, shall not qualify as an Employee under this Plan.

(o)    “Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, or any successor act thereto.

(p)    “Fair Market Value” shall mean, except as otherwise determined by the Committee from time to time:

(i)    if the Shares are traded on an established United States national stock exchange or in the United States over-the-counter market with prices reported on the NASDAQ, the closing trading price for Shares on the grant or award date (or, if there were no sales of Shares on such date, the closing trading price for Shares on the nearest preceding trading day on which there were sales of Shares); and

(ii)    if the Shares are not traded as described in clause (i), the fair market value of such Shares on the relevant date, as determined in good faith by the Board, employing the reasonable application of a reasonable valuation method (within the meaning of Section 409A of the Code and related regulations).

(q)    “Insider” shall mean an Employee who is, on the relevant date, an executive officer or ten percent (10%) Beneficial Owner of the Company, as defined under Section 16 of the Exchange Act, or a Director.

(r)    “Nonqualified Stock Option” or “Option” means an option to purchase Shares from the Company at a price established in an Option Award Agreement.  No incentive stock option within the meaning of Code Section 422 may be granted under this Plan.

(s)    “Option Award” means, individually or collectively, a grant under this Plan of a Nonqualified Stock Option.

(t)    “Option Award Agreement” means an agreement setting forth the terms and provisions applicable to an Option Award granted to a Participant under this Plan.

(u)    “Option Price” means the price at which a Share may be purchased by a Participant under the terms of an Option Award Agreement.

(v)    “Par Value” shall mean the designated par value of one Share.

(w)    “Participant” means any Director or Employee who possesses an unexpired Award granted under the Plan.

(x)    “Performance Award” means Shares (or units representing the right to receive Shares) or a cash incentive granted to a Participant subject to attainment of certain performance goals in accordance with the terms of the Plan.

(y)    [Reserved.] 

(z)    “Performance Award Agreement” means an agreement setting forth the terms and provisions applicable to a Performance Award under this Plan.  

(aa)    “Plan” means the AK Steel Holding Corporation Omnibus Supplemental Incentive Plan as set in this document, and if amended at any time, then as so amended.  

(bb)    “Restricted Stock” means Shares granted to a Participant subject to certain restrictions on the Participant’s right to retain, sell, transfer, assign, pledge, encumber or otherwise alienate or hypothecate the Shares except in accordance with the terms of this Plan.

(cc)    “Restricted Stock Award” means, individually or collectively, a grant under this Plan of Shares of Restricted Stock.

(dd)    “Restricted Stock Award Agreement” means an agreement setting forth the terms and provisions applicable to a Restricted Stock Award under this Plan.

(ee)    “Restricted Stock Unit” means an Award that represents the right to receive one (1) or more Shares, or the cash equivalent thereof, in accordance with the terms of the Plan.

(ff)    “Restricted Stock Unit Award” means, individually or collectively, a grant under this Plan of Restricted Stock Units.

(gg)    “Restricted Stock Unit Award Agreement” means an agreement setting forth the terms and provisions applicable to a Restricted Stock Unit Award under this Plan.

(hh)    “Retirement” shall mean, unless otherwise provided in the Award Agreement, termination of employment with the Company and its subsidiaries and affiliates with eligibility to immediately commence to receive a pension under the Company’s noncontributory defined benefit pension plan as in effect on such Employee’s termination date; or termination of employment with the Company and its subsidiaries and affiliates after: (1) completion of at least 30 years of continuous employment  with the Company and its subsidiaries and affiliates, (2) attainment of age 60 and completion of at least 5 years of continuous employment with the Company and its subsidiaries and affiliates; or (3) attainment of age 55 and completion of at least 10 years of continuous employment with the Company and its subsidiaries and affiliates.  With respect to an individual who is not a participant in the Company’s noncontributory defined benefit pension plan, Retirement also shall mean any termination of employment with the Company which would have entitled such individual to be eligible to immediately commence to receive a pension under the Company’s noncontributory defined benefit pension plan, had the individual been a participant therein and had such plan been then in effect.

(ii)    “Shares” means the shares of voting common stock of the Company.

(jj)    “Substitute Award” shall mean an Award granted under the Plan upon the assumption of, or in substitution for, outstanding equity awards previously granted by a company or other entity in connection with a corporate transaction, including a merger, combination, consolidation or acquisition of property or stock.

Article 3.  Administration.

3.1    The Committee.  The Plan shall be administered by the Committee.  The Committee may employ such legal or other counsel, consultants and agents as it may deem desirable for the administration of the Plan and may rely upon any opinion or computation received from any such counsel, consultant or agent.  Expenses incurred by the Committee in the engagement of such counsel, consultant or agent shall be paid by the Company.  No member or former member of the Board or the Committee shall be liable for any action or determination made in good faith with respect to the Plan or any Award granted hereunder.

3.2    Authority of the Committee.  The Committee shall have full power, subject to the provisions of this Plan, except as limited by law or by the Articles of Incorporation or By-laws of the Company: (a) to determine the size and types of Awards (except as to Awards to Directors, which shall be limited to the size and shall be subject to the conditions expressly permitted by this Plan); (b) to determine the terms and conditions of each Award Agreement in a manner consistent with the Plan; (c) to construe and interpret the Plan and any agreement or instrument entered into under the Plan; (d) to establish, amend, or waive rules and regulations for the Plan’s administration; and, (e) subject to the provisions of Article 11 herein, to amend the terms and conditions of any outstanding Award Agreement to the extent such terms and conditions are within the discretion of the Committee as provided in the Plan.  Further, the Committee shall make all other determinations which may be necessary or advisable for the administration of the Plan.  The Committee may delegate its authority hereunder to the extent permitted by law.

3.3    Decisions Binding.  All determinations and decisions made by the Committee pursuant to the provisions of the Plan and all related orders or resolutions of the Board shall be final, conclusive and binding on all persons, including the Company and its subsidiaries and affiliates, the Company’s stockholders, Directors, Employees, Participants, and their estates, beneficiaries or assignees.  

3.4    Arbitration.  Each individual who is granted an Award hereunder agrees as a condition of receiving such Award to submit to binding and confidential arbitration any dispute regarding the Plan or any Award made under the Plan, including by way of illustration and not limitation, any decision of the Committee or any action of the Company respecting the Plan or such Award.  Such arbitration shall be held in accordance with the rules of the American Arbitration Association before an arbitrator selected by the Company and reasonably acceptable to the Participant.  If the Participant reasonably objects to the appointment of the arbitrator selected by the Company, and the Company does not appoint an arbitrator reasonably acceptable to the Participant, then the Company and the Participant shall each select an arbitrator and those two arbitrators shall collectively appoint a third arbitrator who shall alone hear and resolve the dispute.  The Company and the Participant shall share equally the cost of arbitration.  No Company agreement of indemnity, whether under the Articles of Incorporation, the By-Laws or otherwise, and no insurance purchased by the Company shall apply to pay or reimburse any Participant’s costs of arbitration.

3.5    No Dividends or Dividend Equivalents Until Award Vested.  Notwithstanding the terms of Section 7.6 of this Plan or anything else to the contrary, any dividends or dividend equivalents otherwise payable in connection with an Award shall be subject to the same restrictions as the underlying Award; provided, that if, when, and to the extent such vesting conditions are met with regard to any otherwise-payable dividends or dividend equivalents, the Company shall pay such dividends or dividend equivalents to the record holder of the Shares to which such dividends or dividend equivalents are attributable not later than sixty 

(60) days following the date such vesting conditions are met. In no event shall dividends or dividend equivalents be paid with respect to Option Awards.

Article 4.  Shares Subject to Grant Under the Plan.

4.1    Number of Shares.  Subject to adjustment as provided in this Article, an aggregate of 14,400,000 Shares shall be available as of the Effective Date for the grant of Option Awards, Restricted Stock Awards, Restricted Stock Unit Awards, and Performance Awards under the Plan (hereinafter called the “Share Pool”) less one (1) Share for every one (1) Share granted under the Prior Plan after January 31, 2019 and prior to the Effective Date.  The Committee, in its sole discretion, shall determine the appropriate division of the Share Pool as between Option Awards, Restricted Stock Awards, Restricted Stock Unit Awards, and Performance Awards.  Shares issued pursuant to any Award may be either authorized and previously unissued Shares or reacquired Shares. 

4.2    Permitted Addbacks to Share Pool.  If (i) any Shares subject to an Award are forfeited, an Award expires or otherwise does not result in the issuance of all or a portion of the Shares subject to such Award, or an Award is settled for cash (in whole or in part), or (ii) after January 31, 2019, any Shares subject to an Award under the Prior Plan are forfeited, an award under the Prior Plan expires or otherwise does not result in the issuance of all or a portion of the Shares subject to such Award, or is settled for cash (in whole or in part), then in each such case the Shares subject to such Award or award under the Prior Plan shall, to the extent of such forfeiture, expiration, non-issuance or cash settlement, be added to the Share Pool. In the event that withholding tax liabilities arising from an Award other than an Option Award or, after January 31, 2019, an award other than an option under the Prior Plan are satisfied by the tendering of Shares (either actually or by attestation) or by the withholding of Shares by the Company, the Shares so tendered or withheld shall be added to the Share Pool. 

4.3    No Recycling of Option Awards. Notwithstanding anything to the contrary contained herein, the following Shares shall not be added to the Share Pool: (i) Shares tendered by the Participant or withheld by the Company in payment of the Option Price, (ii) Shares tendered by the Participant or withheld by the Company to satisfy any tax withholding obligation with respect to Option Awards, (iii) Shares subject to a stock appreciation right that are not issued in connection with its stock settlement on exercise thereof, and (iv) Shares reacquired by the Company on the open market or otherwise using cash proceeds from the exercise of Option Awards.

4.4    Adjustments in Authorized Shares.  In the event of any merger, reorganization, consolidation, recapitalization, extraordinary cash dividend, separation, liquidation, stock dividend, split-up, spin-off, Share combination, or other change in the corporate structure of the Company affecting the Shares, to prevent dilution or enlargement of rights, an appropriate adjustment shall be made in an equitable manner by the Committee in the number and class of Shares or other securities which may be delivered under the Plan, in the number and class of Shares or other securities that may be issued to an Employee with respect to Awards in any given period, in the number and class of and/or price of Shares or other securities subject to any then unexercised and outstanding Awards, and the terms and conditions of any outstanding Awards (including, without limitation, any applicable performance targets or criteria with respect thereto). The number of Shares or other securities subject to any Award shall always be a whole number.

4.5    Rights as a Stockholder.  No person shall have any rights as a stockholder with respect to Shares subject to an Option Award until the date the Company receives full payment of the Option Price, including any sum due for withholding pursuant to Section 6.6. A person who has Restricted Stock shall have the rights of an owner of Shares, except to the extent those rights are expressly limited by then applicable restrictions on transfer contained in this Plan and the Restricted Stock Award Agreement.  No person shall have any rights as a stockholder with respect to a Restricted Stock Unit Award until such date that the Participant may receive Shares pursuant to the Restricted Stock Unit Award.  No person shall have any rights as a stockholder with respect to a Performance Award until such date that the Participant may receive the Shares covered by the Performance Award.  

Article 5.  Eligibility and Participation.  Directors and Employees shall be eligible to be Participants in this Plan.

Article 6. Stock Options.

6.1    Grant of Options.  Options may be granted to an Employee or Director at any time and from time to time as shall be determined by and in the sole discretion of the Committee, subject to the provisions of Section 4.1.

6.2    Option Award Agreement.  Each Option shall be granted pursuant to a written Option Award Agreement, signed by the appropriate member of the Committee or its designee, and specifying the terms and conditions applicable to the Options granted including: the Option Price; the period during which the Option may be exercised; the number of Shares to which the Option pertains; the conditions under which the Option is exercisable; and such other provisions as the Committee may from time 

to time determine.  The Option Award Agreement also shall specify that the Option is intended to be a Nonqualified Stock Option whose grant is intended not to fall under the provisions of Code Section 422.

6.3    Option Price.  Other than in connection with Substitute Awards, the Option Price for each Share subject to purchase shall be determined by the Committee and stated in the Option Award Agreement but in no event shall be less than the Fair Market Value of the Shares on the date of grant of the Award.  Except in connection with a corporate transaction involving the Company, including without limitation any event pursuant to which the Committee elects to make any adjustments under Section 4.3 of the Plan, the Company may not, without obtaining appropriate Company stockholder approval and confirmation that such adjustments or modifications will not result in a violation of Section 409A of the Code and related regulations: (a) amend the terms of outstanding Options to reduce the exercise price of such outstanding Options; (b) cancel outstanding Options in exchange for Options with an exercise price that is less than the exercise price of the Options as originally granted; or (c) cancel outstanding Options with an exercise price above the current Fair Market Value in exchange for cash, common stock or other consideration.

6.4    Duration of Options.  Each Option shall be exercisable for such period as the Committee shall determine at the time of grant.  No Option shall be exercisable later than the tenth (10th) anniversary of the date of its grant; provided, however, that in the event an Option would expire when trading in Company’s stock is prohibited by law or the Company’s insider trading policy, such Option shall be exercisable until the end of the 30th calendar day after expiration of such prohibition (to the maximum extent permitted by Section 409A of the Code and related regulations).

6.5    Exercise of Options.

(a)    Options granted under the Plan shall be exercisable at such times and be subject to such restrictions and conditions as the Committee shall in each instance approve, which need not be the same for each grant or for each Participant.  Subject to Section 6.9, the Committee may provide, by rule or regulation or in any Option Award Agreement, that the exercisability of an Option may be accelerated or extended under various circumstances to a date not later than the latest expiration date permitted in accordance with Section 6.4.

(b)    Each Option shall be exercisable only by delivery to the Committee in care of the Secretary of the Company of a written notice of exercise in such form as the Committee may require.  A notice of exercise shall: specify the number of shares to be purchased, shall be signed by the Participant or holder of the Option and shall be dated the date the signature is affixed.

6.6    Payment.  Except as hereinafter provided, a written notice of exercise shall be accompanied by full payment for the Shares to be purchased.  Subject to the provisions of Article 12, payment shall include any income or employment taxes required to be withheld by the Company from the Employee’s compensation with respect to the Shares so purchased.

(a)    The Option Price upon exercise of any Option shall be payable to the Company in full either: (i) in cash or its equivalent, (ii) by net settlement upon exercise of the Option, by electing to have the Company withhold Shares having an aggregate Fair Market Value at the time of exercise at least equal to the total Option Price,  (iii) by tendering previously acquired Shares having an aggregate Fair Market Value at the time of exercise equal to the total Option Price, in proper form for transfer and accompanied by all requisite stock transfer tax stamps or cash in lieu thereof, or (iv) by any combination of (i), (ii) and (iii).

(b)    The Committee also may allow cashless exercises, in a manner consistent with the guidelines set forth in Federal Reserve Board Regulation T, subject to any and all applicable securities law restrictions, or by any other means which the Committee determines to be consistent with the Plan’s purpose and applicable law.

(c)    As soon as practicable after receipt of a written notice of exercise and full payment, the Company shall issue and deliver to the Participant, in the Participant’s name, Share certificates in an appropriate amount based upon the number of Shares purchased.

6.7    Restrictions on Transferability.  Except to the extent permitted under this Section 6.7, no Option granted under the Plan may be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated, other than by will or by the laws of descent and distribution.  Further, all Options granted to a Participant under the Plan shall be exercisable during his or her lifetime only by such Participant.  Notwithstanding the foregoing, the right to purchase Shares subject to an Option Award that has vested and become fully exercisable may be transferred, in whole or in part, by a Participant during a Participant’s lifetime, to a Participant’s spouse, child or grandchild, or to the trustee of a testamentary or other grantor trust established primarily for the benefit of a Participant’s spouse, child or grandchild; provided that:

(a)    A transfer shall only be effective upon receipt by the Secretary of the Company, on behalf of the Committee, of written notice of transfer in such form as the Committee may require;

(b)    A notice of transfer shall: (i) identify the name, address and relationship of the transferee to the Participant; (ii) identify the Option Award which is the subject of the transfer, the number of Shares transferred and the consideration paid, if any, for the transfer; (iii) in the case of a transfer to a trustee, include evidence satisfactory to the Committee that under the terms of the trust the transfer is for the exclusive benefit of a Participant’s spouse, child or grandchild; and (iv) include a copy of the authorized signature of each person who will have the right to exercise the option to purchase and all information relevant to the rights transferred; and

(c)    A transferee may not transfer any rights.  Upon the transferee’s death, all rights shall revert to the Participant.

The Committee may impose such additional restrictions on transferability as it may deem advisable, including, without limitation, restrictions under applicable Federal securities laws, under the requirements of any stock exchange or market upon which such Shares are then listed and/or traded, and under any blue sky or state securities laws applicable to such Shares. For the avoidance of doubt and notwithstanding anything to the contrary, no Option Awards may be transferred by a Participant for value.

6.8    Termination of Employment.  Except as hereinafter provided, Options granted under the Plan may not be exercised by any person, including an otherwise-permitted transferee of any rights under an Option Award, unless the Participant to whom such Options were granted is then in the employ of the Company or a subsidiary or affiliate thereof, and unless such Participant has remained continuously so employed since the date of grant of such Option (to the extent imposing such continuous employment requirement would not violate relevant federal law).  Subject to the general limitation period set forth in Section 6.4, Options shall be exercisable as follows unless otherwise provided by the Committee:

(a)    in the case of a Participant’s death, any outstanding Options which have not yet vested in accordance with the applicable Option Award Agreements shall immediately vest and be exercisable under the following conditions:

(i)    if such Participant’s death occurs while employed by the Company or by a subsidiary or affiliate thereof, by the Beneficiary or representative during a period of three (3) years following the date of such Participant’s death; or

(ii)    if such Participant’s death occurs after his Retirement, but before the third anniversary of his Retirement, by the Beneficiary or representative on or before such third anniversary of his Retirement;

(b)    in the case of a Participant’s Disability, any outstanding Options which have not yet vested in accordance with the applicable Option Award Agreements shall immediately vest and be exercisable by such Participant or by such Participant’s appointed representative during a period of three (3) years following the date of such Participant’s last day of active employment;

(c)    in the case of a Participant’s Retirement, any outstanding Options which have not yet vested shall continue to vest in accordance with the applicable Option Award Agreements and such vested Options shall be exercisable by such Participant during a period of three (3) years immediately following such Participant’s last day of active employment (provided that any Options which have not yet vested or been exercised at the end of such three-year period shall be forfeited);

(d)    in the case of a Participant’s involuntary termination of all Company, subsidiary and affiliate employment:

(i)    if such termination is for reasons other than Cause, any outstanding Options which have not yet vested shall continue to vest in accordance with the applicable Option Award Agreements and any Options that vest shall be exercisable by such Participant during a period of three (3) years immediately following such Participant’s last day of active employment (provided that any Options which have not yet vested or been exercised at the end of such three-year period shall be forfeited); or

(ii)    if such termination is for Cause, by such Participant on or before his last day of active employment whether or not the Committee has made its final determination that there is Cause for termination as of that last day worked; and

(e)    in the case of a Participant’s voluntary termination of employment, his last day of active employment.

Article 7.  Restricted Stock and Restricted Stock Units.

7.1    Restricted Stock Awards and Restricted Stock Unit Awards.  Restricted Stock Awards and Restricted Stock Unit Awards may be made to any Director or Employee at any time while the Plan is in effect.  Restricted Stock Awards and Restricted Stock Unit Awards may be made whether or not prior such Awards have been made to said individual. 

7.2    Notice.  The Committee shall promptly provide each Participant with written notice setting forth the number of Shares covered by such Participant’s Restricted Stock Award or Restricted Stock Unit Award and such other terms and conditions relevant thereto (which may include one or more performance goals), including the purchase price, if any, to be paid for the Shares by the recipient of a Restricted Stock Award, as may be considered appropriate by the Committee.

7.3    Restrictions on Retention and Transfer of Restricted Stock.  The purpose of these restrictions is to provide an incentive to each Participant to continue to provide services to the Company and to perform his or her assigned tasks and responsibilities in a manner consistent with the best interests of the Company and its stockholders.  The Restricted Stock awarded pursuant to the Plan shall be subject to the following restrictions:

(a)    Stock certificates evidencing shares shall be issued in the sole name of the Participant (but may be required to be pledged to and held by the Company, or its agent, until all restrictions shall have lapsed in accordance herewith) and shall bear a legend which, in part, shall provide that:

“The shares of common stock evidenced by this certificate are subject to the terms and restrictions of the AK Steel Holding Corporation 2019 Omnibus Supplemental Incentive Plan.  These shares are subject to forfeiture or cancellation under the terms of said Plan.  These shares may not be sold, transferred, assigned, pledged, encumbered or otherwise alienated or hypothecated except pursuant to the provisions of said Plan, a copy of which Plan is available from the Secretary of the Company upon request.”

(b)    No Restricted Stock may be sold, transferred, assigned, pledged, encumbered or otherwise alienated or hypothecated unless, until and then only to the extent that said restrictions shall have lapsed in accordance with Section 7.4.

7.4    Lapse of Restrictions.  With respect to a Restricted Stock Award made to an Employee, the restrictions set forth in Section 7.3 will lapse only in accordance with the terms of the Award Agreement.  With respect to a Restricted Stock Award made to a Director, the restrictions set forth in Section 7.3 shall lapse upon completion of the full tenure for which such Director was elected to serve on the Board. 

7.5    Vesting and Forfeiture of Restricted Stock.  Upon the lapse of the restrictions set forth in Section 7.3 with respect to Shares covered by a Restricted Stock Award, ownership of the Shares with respect to which the restrictions have lapsed shall vest in the holder of such Award.  In the event of termination of an Employee’s employment with the Company and all of its subsidiaries and affiliates, or in the event a Director fails to complete his or her full tenure on the Board, all Shares then still subject to the restrictions described in Section 7.3 shall be forfeited by such Participant and returned or released to the Company (as applicable) for cancellation, except as follows, or as otherwise provided in the applicable Award Agreement:

(a)    Restrictions with respect to Shares covered by an outstanding Restricted Stock Award held by a Director shall lapse upon the date of his or her mandatory retirement from the Board by reason of age.  In the case of an Employee’s Retirement, restrictions remaining in respect of a Restricted Stock Award held by such Employee as of the date of such Retirement shall continue to lapse and vest after Retirement as provided in the applicable Award Agreement; provided, that the Committee may in its sole discretion reduce each outstanding Restricted Stock Award held by such Employee with respect to which restrictions have not yet lapsed by the number of Shares sufficient in value to pay such Employee’s share of any tax withholdings required in connection with such continued vesting after Retirement.  Any outstanding restrictions shall lapse in case of death or Disability of a Participant holding a Restricted Stock Award; and 

(b)    The Committee may at any time in its sole discretion accelerate or waive all or any portion of restrictions remaining in respect of the Shares covered by an outstanding Restricted Stock Award (to the extent not waived or released pursuant to paragraph (a) above).  This authority may be exercised for any or all Participants; provided, that the waiver in any particular case shall not bind the Committee in any other similar case, it being the intention of the Company to grant the Committee the broadest possible discretion to act or to refuse to act in this regard.  

7.6    Rights as Stockholder.  Upon issuance of the stock certificates evidencing a Restricted Stock Award and notwithstanding the restrictions set forth in Section 7.3 hereof, the Participant shall have all the rights of a stockholder of the 

Company with respect to the Shares of Restricted Stock represented by that Restricted Stock Award, including the right to vote the shares and receive all dividends and other distributions paid or made with respect thereto.  

7.7    Restricted Stock and Restricted Stock Unit Awards to Directors.  

(a)     Except as otherwise determined by majority vote of the Board with respect to any calendar year, at least fifty percent (50%) of each Director’s annual retainer fee for services on the Board shall be paid in the form of Restricted Stock Awards or in the form of Restricted Stock Unit Awards, as determined by the Board.  Each Director may elect before the beginning of such calendar year to have an additional portion of his or her annual retainer fee, and/or a portion of any other fees to be earned in such calendar year for services on the Board that otherwise would be payable in cash, paid to him or her by such means.  Awards made under this Section 7.7(a), and any other Awards made to Directors under this Article 7, shall be made at intervals during the calendar year as the Board determines to be administratively feasible in accordance with procedures it establishes for that purpose.

(b)    The terms of any Restricted Stock Unit Award granted under the Plan shall be set forth in Restricted Stock Unit Award Agreements which shall contain provisions determined by the Board and not inconsistent with the Plan, including any vesting and forfeiture conditions, and the time and form of settlement of the applicable Restricted Stock Units. The terms of Restricted Stock Unit Award Agreements need not be the same with respect to each Director. 

(d)    The Board may at any time in its sole discretion accelerate or waive all or any portion of vesting restrictions remaining in respect of the Shares covered by an outstanding Restricted Stock Unit Award.  This authority may be exercised for any or all Directors; provided, that the acceleration or waiver in any particular case shall not bind the Board in any other similar case, it being the intention of the Company to grant the Board the broadest possible discretion to act or to refuse to act in this regard.  Any such action shall require the unanimous consent of all Directors (excluding the Director for whose benefit such action is taken) then in office.

(e)    The holder of a Restricted Stock Unit Award shall not have any rights of a stockholder of the Company with respect to such Award, including any right to vote.  Except as otherwise provided in a Restricted Stock Unit Award Agreement, prior to settlement or forfeiture, any Restricted Stock Unit shall carry with it a right to dividend equivalents under which the Participant shall be entitled to receive the value of all dividends and other distributions (with respect to actual Shares) in the form of additional Restricted Stock Units. Such additional Restricted Stock Units shall be subject to the same restrictions as the Restricted Stock Unit Award to which they relate.

(f)    Except as otherwise provided in the applicable Restricted Stock Unit Award Agreement, Restricted Stock Units may not be sold, transferred, pledged, assigned, or otherwise alienated or hypothecated.

(g)    Settlement of Restricted Stock Units shall be made in the form of Shares and distribution of such Shares shall occur or commence as provided in the applicable Restricted Stock Unit Award Agreement; provided, that such settlement and distribution may be deferred to a later date if elected in advance by the Director in accordance with procedures established by the Company to ensure compliance with applicable law, including Section 409A of the Code and related regulations.

(h)    Notwithstanding any provision in the Plan to the contrary, no Director may be granted an aggregate combination of all Awards under the Plan in any calendar year (based on the grant date fair value of such Awards) which, when added to all cash and other compensation paid to such Director, in respect of such Director’s service as a member of the Board for such calendar year (including but not limited to retainer fees, meeting fees, committee chair and /or lead director fees, and perquisites) would cause such Director’s total compensation from the Company for such calendar year to exceed $750,000. 

Article 8.  Performance Awards

8.1    Grant of Performance Awards.  Subject to the terms and conditions of the Plan, Performance Awards may be granted to Employees at any time and from time to time as shall be determined by the Committee.  The Committee shall have complete discretion in determining the number of Shares or cash value of Performance Awards granted to each Participant and the terms and conditions thereof. 

8.2    Value of Performance Shares.  The Committee shall set performance goals over certain periods to be determined in advance by the Committee (“Performance Periods”).  Prior to each grant of a Performance Award, the Committee shall establish an initial number of Shares or cash value for the Performance Award granted to a Participant for that Performance Period.  The Committee also shall set the performance goals that will be used to determine the extent to which the Participant may receive a payment of Shares or cash value with respect to the Performance Award made for such Performance Period.  These goals will be 

based on the attainment, by the Company or one or more of its subsidiaries or affiliates, of one or more certain performance criteria and objectives described in Section 8.8 herein.  With respect to each such performance measure utilized during a Performance Period, the Committee shall assign percentages to various levels of performance which shall be applied to determine the extent to which the Participant may receive a payout of the Performance Award for such Performance Period.

8.3    Payment.  After a Performance Period has ended, the holder of a Performance Award shall be entitled to payment of the applicable number of Shares or cash value with respect thereto as determined by the Committee.  The Committee shall make this determination by first determining the extent to which the performance goals set pursuant to Section 8.2 have been met.  It will then determine the applicable percentage to be applied to and will apply such percentage to the number of Performance Shares to determine the payout to be made to the Participant, net of any applicable withholding.  

8.4    Committee Discretion to Adjust Awards.  The Committee shall have the authority to modify, amend or adjust the terms and conditions of any Performance Award Agreement, at any time or from time to time, including but not limited to the performance goals.

8.5    Form and Timing of Payment.  The payment described in Section 8.3 herein shall be made in the applicable number of Shares or cash value as soon as administratively feasible after the end of the Performance Period to which such payment relates.  Unless the Committee provides otherwise, the value of any dividends or dividend equivalents with respect to such issued Shares that the Participant would have been entitled to during the applicable Performance Period had he held such Shares during such Performance Period shall also be paid to the Participant in whole Shares on said date. Notwithstanding the foregoing, any dividend equivalents payable in connection with a Performance Award that is subject to performance-based vesting conditions shall be subject to the same restrictions as the underlying Award. 

8.6    Termination of Employment.

(a)    Unless the Committee provides otherwise, in the event the employment by the Company and its subsidiaries and affiliates of a Participant terminates by reason of death, Disability, or Retirement, each Performance Award held by such Participant shall be deemed earned on a prorated basis, and a prorated payment based on such Participant’s number of full months of service during the Performance Period, further adjusted based on the achievement of the performance goals during the entire Performance Period, as computed by the Committee, shall be made at the time payments are made to Participants whose Company, subsidiary and/or affiliate employment did not terminate during the Performance Period.

(b)    If the employment by the Company and its subsidiaries and affiliates of a Participant shall terminate for any reason other than death, Disability or Retirement, all Performance Shares shall be forfeited and no payment shall be made with respect thereto; provided, that the Committee may in its sole discretion waive such forfeiture and provide for a payment to the Participant with respect to outstanding Performance Shares, determined in such manner and payable at such time as the Committee deems appropriate under the circumstances.  This authority of the Committee may be exercised for any or all Participants; provided that its action in any particular case shall not bind the Committee in any other case, it being the intention of the Company to grant the Committee the broadest possible discretion to act or refuse to act in this regard.

8.7    Nontransferability.  No rights held by an individual in Performance Shares granted under the Plan may be sold, transferred, pledged, assigned, divided or partitioned, or otherwise alienated or hypothecated, otherwise than by will or by the laws of descent and distribution, until the termination of the applicable Performance Period.  All rights with respect to Performance Shares granted to a Participant under the Plan shall be exercisable during his lifetime only by such Participant.

8.8    Performance Goals. 

(a)    For purposes of this Plan, including but not limited to Awards of Performance Shares under this Article 8, “performance goals” shall mean the criteria and objectives, determined by the Committee, which shall be satisfied or met during the applicable Performance Period as a condition to the Participant’s receipt of Shares with respect to such Award.  The criteria or objectives for an Award shall be determined by the Committee in writing, shall be measured for achievement or satisfaction during the Performance Period in which the Committee established for such Participant to satisfy or achieve such criteria and objectives and may be absolute in their terms or measured against or in relationship to an index or other companies comparably, similarly or otherwise situated or other external or internal measure and may be based on or adjusted for any other objective goals, events, or occurrences established by the Committee, including, without limitation, whether by corporate-wide, subsidiary, division, operating unit, individual or other measure, the following: net sales; net revenue; revenue; revenue growth or product revenue growth; operating income (before or after taxes); pre- or after-tax income or loss (before or after allocation of corporate overhead and bonus and excluding special, unusual, and extraordinary items); net earnings; earnings per share; net income or loss (before or after taxes); return on equity; total shareholder return; return on assets or net assets; appreciation in and/or maintenance of share 

price; market share; gross profits; earnings or loss (including without limitation earnings or loss before interest and/or taxes, or earnings before interest, taxes, depreciation and/or amortization, including without limitation, in each case, subject to specified adjustments and as applied as a ratio to revenue or other measures or on a per ton or other per unit basis); economic value-added models or equivalent metrics; economic profit; comparisons with various stock market indices; reductions in costs; cash flow or cash flow per share (before or after dividends); return on capital (including return on total capital or return on invested capital); cash flow return on investment; improvement in or attainment of expense levels or working capital levels, including without limitation cash, inventory and accounts receivable; operating margin; gross margin; cash margin; year-end cash; debt reduction; shareholder equity; operating efficiencies; market share; customer satisfaction; customer growth; employee satisfaction; research and innovation achievements; regulatory achievements (including without limitation submitting or filing applications or other documents with regulatory authorities or receiving approval of any such applications or other documents and passing inspections); safety achievements, including without limitation those related to injuries and injury rates, accidents and other safety-related metrics; objectives related to environmental or sustainability metrics, including without limitation objectives relating to compliance under environmental permits (whether related to air, water or other objective metrics), environmental audit performance, or environmental-related events such as deviations, exceedances, violations, releases and the like; quality objectives, including without limitation metrics related to internal retreats, internal rejects, customer claims, process loss and similar quality-related measurements; financial ratios, including without limitation those measuring liquidity, activity, profitability or leverage; cost of capital or assets under management; financing and other capital raising transactions (including without limitation sales of the Company's equity or debt securities; factoring transactions; sales or licenses of the company's assets, including without limitation its intellectual property, whether in a particular jurisdiction or territory or globally; or through partnering transactions); and implementation, completion or attainment of measurable objectives with respect to commercialization, products or projects, production volume levels, acquisitions and divestitures; factoring transactions; and recruiting and maintaining personnel.

(b)    Performance criteria and objectives may include or exclude events the impact of which the Committee determines should be so included or excluded, including, without limitation, extraordinary, unusual, or infrequently occurring charges or credits; pension or other employee benefit plan corridor charges or credits; losses from discontinued operations; restatements and accounting changes and other unplanned special charges such as restructuring expenses; acquisitions; acquisition expenses, including expenses related to impairment of goodwill or other intangible assets; stock offerings; stock repurchases and loan loss provisions.  Such performance criteria and objectives may be corporate-wide or particular to a subsidiary, division, operating unit, individual or otherwise.

Article 9. Rights of Employees.

9.1    Employment.  Nothing in the Plan shall: (a) interfere with or limit in any way the right of the Company, or any subsidiary or affiliate thereof, to terminate any Employee’s employment at any time; (b) confer upon any such Employee any right to continue in the employ of the Company or any of its subsidiaries or affiliates (or any combination thereof); or (c) constitute evidence of any agreement or understanding, express or implied, that the Company, or a particular subsidiary or affiliate thereof, will employ an Employee in any particular position at a particular rate of compensation or for any particular period of time.

9.2    Participation.  Nothing in this Plan shall be construed to give any individual any right to be granted any Award other than at the sole discretion of the Committee or as giving any individual any rights whatsoever with respect to Shares except as specifically provided in the Plan.  No Employee or Director shall have any right to be selected to receive an Award under this Plan, or, having been so selected, to be selected to receive a future Award.

Article 10.  Change of Control Election.  Subject to the requirements of Section 409A of the Code and related regulations, where applicable, and unless otherwise provided in an Award Agreement, upon the occurrence of a Change of Control: 

(a)    the surviving, continuing, successor, or purchasing corporation or other business entity or parent thereof, as the case may be (the “Acquiror”), may, without the consent of any Participant, assume or continue the Company’s rights and obligations under each or any Award or portion thereof outstanding immediately prior to the Change in Control or substitute for each or any such outstanding Award or portion thereof a substantially equivalent award with respect to the Acquiror’s stock; 
(b)    outstanding Awards which are not assumed or otherwise continued by the Acquiror shall accelerate and become fully vested effective immediately prior to, but contingent upon, the consummation of the Change in Control, and thereafter, all Awards which become vested as a result of this sentence shall terminate to the extent not exercised or settled as of the date of the Change in Control; and
(c)    any Awards which are assumed, continued, or substituted for pursuant to Section 10.1(a) above shall become fully vested upon a qualifying termination of employment that occurs in connection with or following such Change in Control, pursuant to the terms set forth in the applicable Award Agreement.

Article 11.  Amendment, Modification, and Termination.

11.1    Amendment, Modification, and Termination.  The Board may at any time and from time to time, alter, amend, suspend or terminate the Plan in whole or in part; provided, that no amendment that (a) requires stockholder approval in order for the Plan to continue to comply with Rule 16b-3 under the Exchange Act, including any successor to such Rule, or (b) would modify the provisions of the first paragraph of Section 4.1 or the second sentence of Section 6.3 of this Plan shall be effective unless such amendment shall first be approved by the requisite vote of stockholders of the Company entitled to vote thereon.

11.2    Awards Previously Granted.  No termination, amendment, or modification of the Plan shall adversely affect in any material way any Award previously granted under the Plan without the written consent of the Participant holding such Award.  If consent is not given, the Award shall continue in force in accordance with its terms without modification.

Article 12.  Withholding.

12.1    Tax Withholding.  The Company shall have the power and the right to deduct or withhold, or require a Participant to remit to the Company, an amount sufficient to satisfy Federal, state, and local taxes, (including the Participant’s FICA obligation, if any) required by law to be withheld with respect to any taxable event arising or as a result of this Plan.  Failure to cooperate with the Company in paying any such withholding shall cause the cancellation of the Shares subject to the taxable transaction without liability for such cancellation.

12.2    Share Withholding.  With respect to withholding required upon the exercise of Options, the vesting of Shares under a Restricted Stock Award, or receipt of Shares pursuant to a Performance Award, Participants may elect, subject to the approval of the Committee, to satisfy the withholding requirement, in whole or in part, by having the Company withhold Shares having a Fair Market Value on the date the tax is to be determined equal to the minimum statutory total tax which could be imposed on the transaction (or such other rate that will not create an adverse accounting consequence or cost and is permitted under applicable withholding rules promulgated by the Internal Revenue Service or another applicable governmental entity).  All elections shall be irrevocable, made in writing, signed by the Participant.  In addition to the foregoing requirements, an Insider may elect Share withholding only if such election is made in compliance with Section 16 of the Exchange Act.

Article 13.  Indemnification.  The Company shall indemnify and hold harmless each member of the Committee, and each member of the Board, against and from any loss, cost, liability or expense, including reasonable attorney’s fees and costs of suit, that may be imposed upon or reasonably incurred by the member in connection with or resulting from any claim, action, suit, or proceeding to which the member may be a party defendant or in which the member may be involved as a defendant by reason of any action taken or any failure to act under the Plan and against and from any and all amounts paid in settlement thereof or paid in satisfaction of any judgment in any such action, suit, or proceeding against the member, provided that the member shall give the Company an opportunity, at its own expense, to handle and defend the same before the member undertakes to handle and defend it or agrees to any settlement of the claim.  The foregoing right of indemnification shall be in addition to, and not exclusive of, any other rights of indemnification to which the member may be entitled under the Company’s Articles of Incorporation or By-Laws, as a matter of law, or otherwise.  This right shall not extend to any action by a Director as a claimant of rights under the Plan, whether on the Director’s behalf or on behalf of a class of persons which would include the Director, unless filed in the form of a declaratory judgment seeking relief for the Company or the Plan.

Article 14.  Successors.  All obligations of the Company under the Plan, with respect to Awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all of the business and/or assets of the Company.

Article 15.  Listing of Shares and Related Matters.  If at any time the Committee shall determine that the listing, registration or qualification of the Shares subject to any Award on any securities exchange or under any applicable law, or the consent or approval of any governmental regulatory authority, is necessary or desirable as a condition of, or in connection with, the granting of an Option or the issuance of Shares thereunder, the granting of a Restricted Stock Award and the issuance and transfer of Shares thereunder, the granting of Shares pursuant to a Restricted Stock Unit Award or the issuance and transfer of Shares pursuant to a Performance Award, no Option that is the subject of such Award may be exercised in whole or in part and no certificates may be issued or reissued in respect of any Restricted Stock, Restricted Stock Unit or Performance Award that is the subject of such Award unless such listing, registration, qualification, consent or approval shall have been effected or obtained free of any conditions not acceptable to the Committee.

Article 16.  Legal Construction.

16.1    Gender and Number.  Except where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural.

16.2    Severability.  If any provision of the Plan shall be held by a court of competent jurisdiction to be illegal, invalid or unenforceable for any reason, the illegality, invalidity or unenforceability shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal, invalid or unenforceable provision had not been included.  

16.3    Requirements of Law.  The granting of Awards and the issuance of Shares under the Plan shall be subject to all applicable laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required.  Awards and the issuance of Shares under the Plan shall be further subject to the AK Steel Covered Officer Compensation Clawback Policy, as amended from time to time.

16.4    Securities Law Compliance.  With respect to Insiders, transactions under this Plan are intended to comply with all applicable conditions of Rule l6b-3 or its successors under the Exchange Act.  To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be deemed null and void, to the extent permitted by law and deemed advisable by the Committee.  The obligations of the Company to issue or transfer Restricted Stock awarded pursuant to the Plan, Shares pursuant to a Restricted Stock Unit Award, Shares upon exercise of an Option, or Shares pursuant to a Performance Award, shall be subject to: compliance with all applicable governmental rules and regulations, and administrative action; the effectiveness of a registration statement under the Securities Act of 1933, as amended, if deemed necessary or appropriate by the Company; and the condition that listing requirements (or authority for listing upon official notice of issuance) for each stock exchange on which outstanding shares of the same class may then be listed shall have been satisfied.

16.5    Governing Law.  To the extent not preempted by Federal law, the Plan and all agreements hereunder shall be construed in accordance with and governed by the laws of the State of Delaware.  The references herein to specific rules, regulations, and statutes shall include any successor provisions thereof.

	
			
	 
	AK STEEL HOLDING CORPORATION

	 
	 

	 
	 
	 

	 
	By:
	/s/ Joseph C. Alter

	 
	 
	Joseph C. Alter, Vice President,

	 
	 
	General Counsel and Corporate SecretaryTech
Center Three

 

Allen,
Texas

 

OFFICE
LEASE AGREEMENT

 

between

 

GreenTech One, L.P.

(Landlord)

 

and

 

Virtual
Surveillance, LLC

(Tenant)

 

    	Page -1-	 	 

    	 	 	 

    

 

	 	INDEX	 
	Section	 	Page
	 	 	 
	01.	Building	3
	02.	Premises	3
	03.	Lease
    Grant	3
	04.	Term	3
	05.	Use	4
	06.	Base
    Rental	4
	07.	Excess
    Operating Expenses	4
	08.	Operating
    Expenses	4
	09.	Electricity	5
	10.	Security
    Deposit	6
	11.	Completion
    of Leasehold Improvements	6
	12.	Acceptance
    of Premises and Building by Tenant	6
	13.	Services
    to be Furnished by Landlord	6
	14.	Keys
    and Locks	7
	15.	Graphics	7
	16.	Maintenance
    and Repairs by Landlord	7
	17.	Repairs
    by Tenant	7
	18.	Care
    of Premises	7
	19.	Peaceful
    Enjoyment	7
	20.	Holding
    Over	8
	21.	Alterations,
    Additions, and Improvements	8
	22.	Legal
    Use and Violations of Insurance	8
	23.	Laws
    and Regulations; Building Rules	8
	24.	Nuisance	8
	25.	Entry
    by Landlord	8
	26.	Assignment
    and Subletting	9
	27.	Transfers
    by Landlord	9
	28.	Subordination
    to Mortgage	9
	29.	Mechanic’s
    Liens	10
	30.	Estoppel
    Certificate	10
	31.	Events
    of Default	10
	32.	Lien
    for Rent	12
	33.	Attorneys’
    Fees	12
	34.	No
    Implied Waiver	12
	35.	Casualty
    Insurance	12
	36.	Liability
    Insurance	13
	37.	Indemnity	13
	38.	Waiver
    of Subrogation Rights	13
	39.	Casualty
    Damage	13
	40.	Condemnation	14
	41.	Damages
    from Certain Causes	14
	42.	Notice
    and Cure	14
	43.	Personal
    Liability	14
	44.	Notice	14
	45.	Captions	14
	46.	Entirety
    and Amendments	15
	47.	Severability	15
	48.	Binding
    Effect	15
	49.	Number
    and Gender of Words	15
	50.	Recordation	15
	51.	Governing
    Law	15
	52.	Interest
    Rate	15
	53.	Force
    Majeure	15
	54.	Rules
    and Regulations	15
	55.	Reserved
    Rights	16
	56.	Approval
    by Landlord’s Mortgagees	16
	57.	Brokers	16
	58.	Substitute
    Space	16
	59.	Time
    of Essence	16
	60.	Best
    Efforts	17
	61.	No
    Reservation	17
	62.	Consents	17
	63.	Legal
    Authority	17
	64.	Exhibits,
    Riders and Addendum	17
	65.	Right
    to Protest Appraised Value Waiver	17
	66.	DTPA
    Waiver	17

 

Exhibit
“A” Floor Plan of Premises

Exhibit
“B” Building Rules and Regulations

Exhibit
“C” Leasehold Improvements Agreement

Exhibit
“D” Parking Agreement

Exhibit
“E” Additional Provisions

 

    	 	2	 

    	 	 	 

    

 

OFFICE
LEASE AGREEMENT

 

THIS
LEASE AGREEMENT (the “Lease”) is made and entered into as of this the 7th day of May, 2019, between GreenTech One,
L.P., a Texas limited partnership (“Landlord”), and Virtual Surveillance, LLC (“Tenant”).

 

W
I T N E S S E T H:

 

1.       Building.
“Building” shall mean the building, along with its exterior land and parking areas and drives, located at 714 South
Greenville Avenue, City of Allen, County of Collin, State of Texas, 75013 and containing 27,644 square feet of Net Rentable Area
(hereinafter defined).

 

2.       Premises.
“Premises” shall mean those certain premises located on the east end of the first floor of the Building and being
conclusively deemed to contain 7,873 square feet of Net Rentable Area, as reflected on the floor plan of the Premises attached
hereto and made a part hereof as Exhibit A. All measurements are made in accordance with the “Standard Method for Measuring
Floor Area in Office Buildings” as published by Building Owners and Managers Association International (“BOMA”).
Tenant’s pro-rata share of the Building is twenty-eight and forty-eight hundredths percent (28.48%). Landlord and Tenant
agree that final calculation of Net Rentable Area will occur after completion of plans for Tenant Improvements

 

3.       Lease
Grant. Subject to the terms of this Lease, Landlord leases to Tenant, and Tenant leases from Landlord, the Premises.

 

4.       Term.
Subject to and upon the terms and conditions set forth herein, or in any exhibit, addendum, or rider attached hereto, this Lease
shall continue in force for a term of one hundred twenty four (124) months commencing on the later of the 1st day of
August, 2019 (the “Commencement Date”), or Substantial Completion of the Leasehold Improvements (Exhibit “C”),
and terminating on the last day of the Scheduled Term adjusted as further defined below (the “Termination Date”).
Delays caused by the Tenant shall not extend the Commencement Date. If for any reason the Premises are not ready for occupancy
by Tenant on the Commencement Date, Landlord shall not be liable or responsible for any claims, damages, or liabilities in connection
therewith or by reason thereof, and the term of this Lease and the obligations of Tenant shall nonetheless commence and continue
in full force and effect; provided, however, if the Premises are not ready for occupancy due to omission, delay, or default on
the part of Landlord or anyone acting under or for Landlord, the term of this Lease shall not commence until the Premises are
ready for occupancy by Tenant. In such event, rental under this Lease shall not commence until the Premises are ready for occupancy,
whereupon the stated term of this Lease shall commence, and the Termination Date shall be extended by the same amount of time.
Delays caused by the Tenant shall not extend the Commencement Date. Such postponement of rent and of the Commencement Date of
this Lease shall constitute full settlement of all claims that Tenant might otherwise have against Landlord by reason of the Premises
not being ready for occupancy by Tenant on the date of the commencement of the term hereof. Landlord will coordinate with Tenant
to allow installation of cabling and any such equipment as allowed by the City of Allen during the construction period and prior
to the Commencement Date. Should the term of this Lease thus commence on a date other than that specified above, Landlord will
send Tenant a written statement of such adjusted Commencement Date and Termination Date, and Tenant will, if Landlord requests,
confirm such adjusted dates in writing. The Premises shall be deemed to be ready for occupancy on the first to occur of (i) the
date that a certificate of occupancy from the local governmental authorities has been issued, which certificate shall be binding
and conclusive upon Tenant, or (ii) upon the date on which Tenant begins occupancy of the Premises, whichever is earlier. Landlord
shall coordinate construction of Leasehold Improvements as further defined in Exhibit “C” to allow tenant cabling
and equipment installation (as allowed by the City) prior to the Commencement Date.

 

    	 	3	 

    	 	 	 

    

 

5.       Use.
The Premises are to be used and occupied by Tenant solely for office and warehouse purposes and for no other purpose or use
without the prior written consent of Landlord. Tenant shall not use or permit the use of the Premises for any purpose which is
illegal, dangerous to persons or property or which, in the Landlord’s opinion, unreasonably disturbs any other tenants of
the Building or interferes with the operation of the Building.

 

6.       Base
Rental. Tenant hereby agrees to pay to Landlord, without any setoff or deduction whatsoever, a base annual rental (“Base
Rental”) initially in the sum of Zero Dollars ($0.00) per month for months 1 through 4 of the Term, then in the sum of Nine
Thousand One Hundred Eighty Five Dollars ($9,185.00) per month for months 5 through 16 of the Term, then in the sum of Nine Thousand
Eight Hundred Forty One Dollars ($9,841.00) per month for months 17 through 28 of the Term, then in the sum of Ten Thousand Eight
Hundred Twenty Five Dollars ($10,825.00) per month for months 29 through 52 of the Term, then in the sum of Eleven Thousand One
Hundred Fifty Three Dollars ($11,153.00) per month for months 53 through 76 of the Term, then in the sum of Eleven Thousand Four
Hundred Eighty One Dollars ($11,481.00) per month for months 77 through 100 of the Term and then in the sum of Eleven Thousand
Eight Hundred Ten Dollars ($11,810.00) for the remainder of the Term. Tenant shall also pay, as additional rent, all other sums
of money as shall become due from and payable by Tenant to Landlord under this Lease (Operating Expenses and all other sums of
money due from and payable by Tenant to Landlord under this Lease are sometimes hereinafter collectively called “Rent”),
for the nonpayment of which Landlord shall be entitled to exercise all rights and remedies as herein provided. The annual Base
Rental, as adjusted from time to time pursuant to Paragraph 7 hereof, shall be due and payable in advance in twelve (12) equal
installments on the first (1st) day of each calendar month during the term of this Lease and any extensions or renewals thereof,
and Tenant hereby agrees to pay Base Rental as so adjusted to Landlord at Landlord’s address provided herein (or such other
address as may be designated by Landlord in writing from time to time) monthly, in advance, and without demand. If the term of
this Lease commences on a day other than the first (1st) day of a month, then the installment of Base Rental as adjusted pursuant
hereto for such month shall be prorated, based on thirty (30) days per month, and the installment so prorated shall be paid in
advance. If Tenant fails to pay any regular monthly installment of rent by the tenth (10th) day of the month in which the installment
is due, or any other sum of money owed Landlord within ten (10) days after accrual thereof or billing therefore, there shall be
added to such unpaid amount a late charge of twelve percent (12%) of the installment or amount due in order to compensate Landlord
for the extra expenses incurred. Upon execution of this Lease, Tenant agrees to pay to Landlord an amount of Nine Thousand One
Hundred Eighty-Five Dollars ($9,185.00) as advance rent to be applied to the Base Rental due with respect to the fifth month of
the term of this Lease.

 

7.       
Intentionally Deleted.

 

8.       Operating
Expenses. Tenant shall pay to Landlord Tenant’s pro rata share of the Operating Expenses (hereinafter defined) during
the Term. Prior to the initial occupancy and then prior to January 1 of each year during the Term, Landlord will provide a good
faith estimate of the Operating Expenses for the Building for the forthcoming calendar year. On or before the first day of each
month, Tenant shall pay to Landlord a monthly installment equal to one-twelfth of Tenant’s pro rata share of Landlord’s
estimate of Operating Expenses. As soon as practical following the end of each calendar year, Landlord shall furnish Tenant with
an itemized statement of the actual Operating Expenses for the prior calendar year. If the actual Operating Expenses were less
than the estimated Operating Expenses, the Landlord shall refund any overpayment to Tenant within thirty (30) days of statement.
If the actual Operating Expenses were more than the estimated Operating Expenses, the Tenant shall pay Landlord any underpayment
within thirty (30) days of the statement.

 

    	 	4	 

    	 	 	 

    

 

“Operating
Expenses” consist of all operating expenses of the Building including, but not limited to the following:

 

(a)       Wages,
salaries, normal employee benefits and taxes for all employees of Landlord and/or Landlord’s agents (whether paid directly
by Landlord itself or reimbursed by Landlord to such other party) engaged in the operation, maintenance and management of the
Building.

 

(b)       Costs
and expense of all supplies and materials and equipment rented or used in the operation, maintenance or repair of the Building.

 

(c)       Cost
and expense of all utilities (excluding electricity) for the Building including, but not limited to, the cost of water and sewage
for the Building.

 

(d)       Cost
and expense of rubbish and waste pickup and disposal of typical daily office refuse.

 

(e)       Cost
and expense of compensation (wages, salaries, normal employee benefits and taxes) for all persons who perform landscaping,
common area janitorial, ice and snow removal, pest control, maintenance, painting, window cleaning, security services and any
other services relating to the operation, maintenance and repair of the Common Areas of the Building, including materials and
supplies, or contracts with independent third parties to provide such service and/or supplies. “Common Area” is
hereby defined as that part of the property intended for the collective use of all tenants and excludes all Premises of
tenants.

 

(f)       Cost
of all insurance premiums and deductibles paid including, but not limited to, the cost of fire and extended coverage insurance,
rental loss or abatement insurance, casualty and liability insurance applicable to the Building and Landlord’s personal
property used in connection therewith.

 

(g)       Costs
and expense of all permits and license fees, including inspection fees, required with the ongoing operation and maintenance of
the Building.

 

(h)       Costs
and expenses of the Building’s portion of accounting and legal services directly attributed to the maintenance and operation
of the Building.

 

(i)       Costs
and expenses of property management fees, including any fees paid to Landlord or Landlord affiliates.

 

(j)       Costs,
expenses and fees incurred in contesting any governmental enactments, which affect the operation and maintenance of the Building.

 

(k)       All
taxes, assessments, and other governmental charges, whether federal, state, county or municipal (other than federal taxes on Landlord’s
net income and Landlord’s franchise taxes), and whether they be by taxing districts or authorities presently taxing the
Building or by others, subsequently created or otherwise and any other taxes and assessments attributable to the Building or its
operation. It is agreed that Tenant will be responsible for ad valorem taxes on its personal property and on the value of leasehold
improvements to the extent that the same exceed standard Building allowances.

 

(l)       Amortization
of the cost of capital investment items, which are primarily for the purpose of reducing operating costs or which may be required
by governmental authority.

 

(m)     Cost
of an office in the Building maintained for management of the Building.

 

Tenant,
at its expense shall have the right within six (6) months after the end of an applicable year, following prior written notice
to Landlord, to audit Landlord’s books and records relating to Operating Expenses for this Lease for the immediately preceding
calendar year. Landlord’s books and records will be made available in the Landlord’s office during normal business
hours. In the event that Tenant retains an agent to perform such audit, such agent shall be a certified public accountant. Notwithstanding
anything above, Tenant shall not be responsible for any annual increase in Controllable Operating Expenses (herein defined specifically
to exclude property taxes, insurance and utilities) that exceeds 7.0% annually, calculated on a cumulative and compounding basis.

 

9.       Electricity.
Tenant shall pay to Landlord Tenant’s Direct Sub-metered Electrical Costs and Tenant’s pro-rata Share of Common Area
Electricity Costs (hereinafter defined) for each applicable calendar year or portion thereof during the Term. Direct Sub-metered
Electrical Costs shall be computed based on the meter reading from the sub-meter (such sub-meter to be installed at Tenant’s
cost as part of Tenant Improvements) for the specific Tenant Premises. Common Area Electricity Cost shall include charges paid
by Landlord for electricity to the local utility company for the electrical service to the common area portions and equipment
of the Building and any related charges paid by Landlord as a result of electrical deregulation. Prior to occupancy and prior
to January 1 of each subsequent year during the Term thereafter, Landlord will provide a good faith estimate of the Common Area
Electricity Cost for the Building for the forthcoming calendar year. On or before the first day of each month, Tenant shall pay
to Landlord a monthly installment equal to one-twelfth of Tenant’s pro rata share of Landlord’s estimate of Common
Area Electricity Costs and the Tenant’s Direct Sub-metered Electrical Costs. As soon as practical following the end of each
calendar year, Landlord shall furnish Tenant with a statement of the actual Direct Sub-metered Electrical Costs and the Common
Area Electricity Costs for the prior calendar year. If the actual total of the Direct Sub-metered Electrical Costs and the Common
Area Electricity Costs was less than the estimated Electricity Cost, the Landlord shall refund any overpayment to Tenant within
thirty (30) days of statement. If the actual Electricity Cost was more than the estimated Direct Sub-metered Electrical Costs
and the Common Area Electricity Costs, the Tenant shall pay Landlord any underpayment within thirty (30) days of the statement.
Tenant shall pay the cost of all electricity utility services, including but not limited to initial connection charges, all charges
for electricity used on the Premises, and for replacing all electric lights, lamps and tubes within the Premises. Unless otherwise
required by law, Landlord is the party entitled to designate electricity services providers to the Property and the Premises.

 

    	 	5	 

    	 	 	 

    

 

10.       Security
Deposit. Tenant shall deliver to Landlord upon execution of this Lease a Security Deposit in the amount of Eleven Thousand
Eight Hundred Ten Dollars ($11,810.00) to be held by Landlord as security for the performance of Tenant’s obligations. The
Security Deposit is not an advance payment of Rent or a measure of Tenant’s liability for damages. Landlord may use any
or all of the Security Deposit to satisfy past due Rent or to cure any other default of the Tenant. Tenant shall on demand restore
the Security Deposit to its original amount if Landlord uses any portion of the Security Deposit. Landlord shall return any un-used
portion of the Security Deposit to Tenant within thirty (30) days after the later of the date Tenant surrenders possession of
the Premises to Landlord in accordance with this Lease or the Termination Date.

 

11.       Completion
of Leasehold Improvements. Landlord shall approve full definitive plans and specifications of all Leasehold Improvements
(as defined in Exhibit “C” Leasehold Improvements Agreement) to be constructed or installed or other work to be performed
in the Premises, including but not limited to, all architectural, electrical and mechanical plans, room finish schedules, millwork
detail, and air conditioning layout drawings for all improvements to be installed with the Premises, all in accordance with the
terms and provisions of the Leasehold Improvements Agreement in the form of Exhibit “C” attached hereto. The Leasehold
Improvements Agreement sets forth certain dates by which plans and specifications for the Leasehold Improvements must be prepared,
reviewed and approved, and further describes the circumstances, if applicable, under which the commencement date hereof may be
delayed. Leasehold Improvements installed in, or attached or affixed to, the Premises shall be owned by Landlord.

 

12.       Acceptance
of Premises and Building by Tenant. The taking of possession of the Premises by Tenant shall be conclusive evidence (a)
that Tenant accepts the Premises as suitable for the purposes for which the same are leased, (b) that Tenant accepts the Building
and each and every part and appurtenance thereof as being in a good and satisfactory condition, and (c) that Landlord has fully
complied with Landlord’s obligations contained in this Lease with respect to the construction of the Building and the Leasehold
Improvements to the Premises.

 

13.       Services
to be Furnished by Landlord. During Tenant’s occupancy of the Premises, Landlord shall use all commercially reasonable
efforts to furnish the following services:

 

(a)       Cold
water at those points of supply provided for general use of other tenants in the Building.

 

(b)       Routine
maintenance for all Common Areas of the Building in the manner and to the extent deemed by Landlord to be standard. Tenant shall
be responsible for the proper care and maintenance of all improvements within the Premises, including all MEP systems solely serving
the Premises.

 

(c)       Window
washing as may from time to time be reasonably required.

 

(d)       Electrical
facilities to furnish building standard power to Common Areas and lamp replacement in Common Areas.

 

Water,
electrical, and sewer services included in the foregoing Building services will be provided through available public utilities.
The failure by Landlord to any extent to furnish these services, any cessation, malfunction, fluctuation, variation, or interruption
thereof, or any breakdown or malfunction of equipment in the Building resulting from causes beyond the reasonable control of Landlord
shall not render Landlord liable in any respect for damages, direct or consequential, to either persons or property, nor be construed
as an eviction of Tenant, nor work an abatement of rent, nor relieve Tenant from the obligation to fulfill any covenant or agreement
hereof. Should any of Tenant’s office equipment or machinery breakdown, be damaged, or for any cause cease to function properly
as a result of the cessation, malfunction, fluctuation, variation, interruption, or breakdown of services or equipment in the
Building, Tenant shall have no claim for rebate of rent or damages.

 

    	 	6	 

    	 	 	 

    

 

14.       Keys
and Locks. Landlord shall furnish Tenant five keys for each exterior door entering the Premises. Additional keys will
be furnished at a charge by Landlord on receipt of an order signed by Tenant. All keys shall remain the property of Landlord.
No additional locks shall be allowed on any door of the Premises without Landlord’s written permission, and Tenant shall
not make or permit to be made any duplicate keys, except those furnished by Landlord. Upon termination of this Lease, Tenant shall
surrender to Landlord all keys to the Premises. Landlord will allow Tenant to install an electronic access system on the Premises
provide such system meets the requirements of the City of Allen and provisions are made to allow Landlord access into the Premises.

 

15.       Graphics.
Landlord shall provide and install, at Tenant’s cost, chargeable against any available Tenant Allowance (as defined
in Exhibit “C” Leasehold Improvements Agreement), tenant signage adjacent to the main entrance door in the Premises.
All tenant signage shall be in the standard graphics for the Building, and no others shall be used or permitted on the Premises.

 

16.       Maintenance
and Repairs by Landlord. Landlord shall maintain and repair the structural elements of the Building, at Landlord’s
cost and the common portions of the mechanical, electrical, plumbing and life safety systems serving the Building, the Common
Areas of the Building, the roof of the Building, and the exterior windows of the Building, such costs to be reimbursed as further
defined in Paragraph 8.

 

17.       Repairs
by Tenant. Tenant shall, at Tenant’s cost and expense, repair or replace any damage or injury done to the Building,
or any part thereof, caused by Tenant or Tenant’s agents, employees,  or visitors, and to restore the Building to the same
or as good a condition as it was prior to such injury or damage. All repairs and replacements shall be effected in compliance
with all building and fire codes and other applicable laws and regulations. If Tenant fails to make such repairs or replacements
promptly, Landlord may, at its option, make the repairs or replacements, and Tenant shall pay the cost thereof to Landlord on
demand.

 

18.       Care
of Premises. Tenant shall, at its sole cost and expense, keep the Premises in reasonable good condition and repair. Tenant
shall be responsible for care and maintenance of all improvements within and/or serving the Premises including, but not limited
to the floor covering, interior partitions, doors and hardware, mechanical, plumbing, fire protection and electrical items. Tenant
covenants and agrees with Landlord not to commit or allow any waste or damage to be committed on any portion of the Premises,
and at the termination of this Lease, by lapse of time or otherwise, to deliver up the Premises to Landlord in as good a condition
as at the date of the commencement of the term of this Lease, ordinary wear and tear excepted and deliver to Landlord all keys
to the Premises. Provided that Tenant has performed all of its obligations hereunder, Tenant may remove all unattached trade fixtures,
furniture and personal property placed in the Premises by Tenant. Any items not removed by the Tenant within seven days after
the Expiration Date shall be disposed of by the Landlord without notice to Tenant or any other obligation to account for such
items. Upon any termination of this Lease, Landlord shall have the right to reenter and resume possession of the Premises. The
provisions of this Section 18 shall survive the end of the Term.

 

19.       Peaceful
Enjoyment. Tenant shall, and may peacefully have, hold, and enjoy the Premises subject to the other terms hereof, provided
that Tenant timely pays the rent and other sums herein required to be paid by Tenant and timely performs all of Tenant’s
covenants and agreements herein contained. This covenant and any and all other covenants and agreements of Landlord contained
in the Lease shall be binding upon Landlord and its successors only with respect to breaches occurring during its or their respective
periods of ownership of Landlord’s interest hereunder.

 

    	 	7	 

    	 	 	 

    

 

20.       Holding
Over. In the event of the holding over by Tenant after expiration or other termination of this Lease without the prior
written consent of Landlord, Tenant shall pay, in addition to the other Rent (other than Basic Rental), a daily Basic Rental equal
to 125% of the daily Basic Rental payable during the last month of the Term., provided, however, that Landlord’s acceptance
of any such payment shall not constitute nor imply any consent by Landlord to any such holding over by Tenant. No holding over
by Tenant after the expiration of the term of this Lease shall be construed to extend the term of this Lease; and in the event
of any unauthorized holding over, Tenant shall indemnify, defend and hold Landlord harmless from and against all claims for damages
(and reimburse Landlord upon demand for any sums paid in settlement of any such claims) by any other Tenant or prospective Tenant
to whom Landlord may have leased all or any part of the Premises effective before or after the expiration of the term of this
Lease and by any broker claiming any commission or fee in respect of any such lease or offer to lease. Any holding over with the
written consent of Landlord shall thereafter constitute this Lease, a lease from month to month under the terms and provisions
of this Lease, to the extent applicable to a tenancy from month to month.

 

21.       Alterations,
Additions, and Improvements. Tenant covenants and agrees with Landlord not to permit the Premises to be used for any purpose
other than that stated in Paragraph 5 hereof or make or allow to be made any alterations or physical additions in or to the Premises,
or place signs on the Premises which are visible from outside the Premises, without first obtaining the written consent, not to
be unreasonably withheld, of Landlord in each such instance. Any and all such alterations, physical additions, or improvements,
when made to the Premises by Tenant, shall at once become the property of Landlord and shall be surrendered to Landlord upon termination
of this Lease by lapse of time or otherwise; provided, however, this clause shall not apply to trade fixtures, movable equipment,
or furniture owned by Tenant, which, if Tenant is not in default, may be (or if requested by Landlord, shall be) removed by Tenant
on termination of this Lease. Tenant agrees specifically that no food, soft drink, or other vending machine will be installed
within the Premises.

 

22.       Legal
Use and Violations of Insurance. Tenant covenants and agrees with Landlord not to occupy or use, or permit any portion
of the Premises to be occupied or used, for any business or purpose that is unlawful, disreputable or extra-hazardous on account
of fire, or permit anything to be done that could in any way increase the rate or result in the denial or reduction of fire, liability
or any other insurance coverage on the Building and/or its contents.

 

23.       Laws
and Regulations; Building Rules. Tenant covenants and agrees with Landlord to comply with all laws, ordinances, rules
and regulations of any state, federal, municipal, or other government or governmental agency having jurisdiction of the Premises
(including all accessibility standards) that relate to the use, condition or occupancy of the Premises. Tenant will comply with
the rules of the Building adopted and altered by Landlord from time to time for the safety, care, and cleanliness of the Premises
and Building and for the preservation of good order therein, all changes to which will be sent by Landlord to Tenant in writing
and shall be thereafter carried out and observed by Tenant.

 

24.       Nuisance.
Tenant covenants and agrees with Landlord to conduct its business and control its agents, employees,  and visitors in such
manner as not to create any nuisance, or interfere with, annoy, or disturb any other tenant or Landlord in its operation of the
Building.

 

25.       Entry
by Landlord. Tenant covenants and agrees with Landlord to permit Landlord or its agents or representatives to enter into
and upon any part of the Premises with 24 hours prior notice (and in emergencies at all times) to inspect the same, or to show
the Premises to prospective tenants, purchasers, mortgagees, or insurers, to clean or make repairs, alterations, or additions
thereto, as Landlord may deem necessary or desirable. Tenant shall not be entitled to any abatement or reduction of rent by reason
of such entry.

 

    	 	8	 

    	 	 	 

    

 

26.       Assignment
and Subletting.

 

(a)       Tenant
shall not, without the prior written consent of Landlord, which shall not be unreasonably withheld (i) assign or in any manner
transfer this Lease or any estate or interest therein, or (ii) permit any assignment of this Lease or any estate or interest therein
by operation of law, or (iii) sublease the Premises or any part thereof, or (iv) grant any license, concession, or other right
of occupancy of any portion of the Premises, or (v) permit the use of the Premises by any parties other than Tenant, its agents
and employees. Consent by Landlord to one or more assignments shall not operate as a waiver of Landlord’s rights as to any
subsequent assignments. Notwithstanding any assignment, Tenant and any guarantor of Tenant’s obligations under this Lease
shall at all times remain fully responsible and liable for the payment of the rent herein specified and for compliance with all
of Tenant’s other obligations under this Lease. If any event of default should occur while the Premises or any part thereof
are then assigned, Landlord, in addition to any other remedies herein provided or provided by law, may at its option collect directly
from such assignee all rents becoming due to Tenant under such assignment, and apply such rent against any sums due to Landlord
by Tenant hereunder, and Tenant hereby authorizes and directs any such assignee to make such payments of rent direct to Landlord
upon receipt of notice from Landlord. No direct collection by Landlord from any such assignee shall be construed to constitute
a release of Tenant or any guarantor of Tenant from the further performance of its obligations hereunder. Any attempted assignment
or sublease by Tenant in violation of the terms and covenants of this paragraph shall be void and constitute an event of default
under this Lease.

 

(b)       If
Tenant requests Landlord’s consent to an assignment of the Lease of all or a part of the Premises, Tenant shall submit to
Landlord in writing, at least sixty (60) days in advance of the date on which Tenant desires to make such an assignment, notice
of the name of the proposed assignee or subtenant and the proposed commencement date of such assignment, together with copies
of all agreements entered into or contemplated to be entered into regarding such assignment, and such information as Landlord
may request regarding the nature and character of the business of the proposed assignee. Landlord shall have the option (to be
exercised within thirty (30) days from Landlord’s receipt of Tenant’s submission of written request), (i) to permit
Tenant to assign such space to the proposed assignee (in which event Tenant shall deliver to Landlord legible, true, correct and
complete copies of all agreements relating to such assignment); which such permission shall not be unreasonably withheld, if,
however, the rental or other consideration payable in respect of assignment exceeds the rent payable hereunder by Tenant, then
all such excess rent and other consideration shall be deemed additional rent owed by Tenant to Landlord, and shall be payable
to Landlord by Tenant in the same manner and on the same terms as installments of Base Rental are payable by Tenant hereunder
(or upon Tenant’s receipt thereof, whichever is earlier); or (ii) to refuse to consent to Tenant’s assignment of such
space and to continue this Lease in full force and effect as to the entire Premises; or (iii) to cancel this Lease (or the applicable
portion thereof) as of the commencement date stated in the above-mentioned notice from Tenant of its desire to enter into such
assignment, in which event the term of this Lease, and the tenancy and occupancy of the Premises (or the applicable portion) by
Tenant thereunder, shall cease, terminate, expire, and come to an end as if the cancellation date was the original termination
date of this Lease. If Landlord should fail to notify Tenant in writing of such election within such thirty (30) day period, Landlord
shall be deemed to have elected option (ii) above. If Landlord elects to exercise option (i) above, Tenant agrees to provide,
at its expense and at a location approved by Landlord, direct access from such space to a public corridor of the Building. Notwithstanding
Landlord’s consent in any instance to any assignment, no further or subsequent assignment shall be permitted unless Landlord
consents in writing thereto.

 

27.       Transfers
by Landlord. Landlord shall have the right to transfer and assign, in whole or in part, all its rights and
obligations hereunder and in the Building and other property referred to herein, and in such event and upon such transfer
(any such transferee to have the benefit of, and be subject to, the rights and obligations of Landlord hereunder), Landlord
shall be released from any further obligations hereunder, and Tenant, agrees to look solely to such successor in interest of
Landlord for the performance of such obligations.

 

28.       Subordination
to Mortgage. This Lease is subject and subordinate to any mortgage or deed of trust that may now or hereafter encumber
the Building, and to all renewals, modifications, consolidations, replacements, and extensions thereof. This clause shall be self-
operative and no further instrument of subordination need be required by any mortgagee. In confirmation of such subordination,
however, Tenant shall, at Landlord’s request, execute promptly any certificate or instrument evidencing such subordination
that Landlord may request. Tenant hereby constitutes and appoints Landlord the Tenant’s attorney-in-fact to execute any
such certificate or instrument for and on behalf of Tenant. In the event of the enforcement by the trustee or the beneficiary
under any such mortgage or deed of trust of the remedies provided for by law or by such mortgage or deed of trust, Tenant will,
upon request of any person or party succeeding to the interest of Landlord as a result of such enforcement, automatically become
the Tenant of such successor in interest without change in the terms or other provisions of this Lease; provided, however, that
such successor in interest shall not be bound by (a) any payment of rent or additional rent for more than one (1) month in advance,
except advance rental payments expressly provided for in this Lease, or (b) any amendment or modification of this Lease made without
the written consent of such trustee or such beneficiary or such successor in interest. Upon request by any mortgagee or such successor
in interest, Tenant shall execute and deliver an instrument or instruments confirming the attornment provided for herein.

 

    	 	9	 

    	 	 	 

    

 

29.       
Mechanic’s Liens. Tenant will not permit any mechanic’s lien or liens to be placed upon the Premises
or improvements thereon or the Building during the term hereof caused by or resulting from any work performed, materials furnished,
or obligation incurred by or at the request of Tenant, and nothing contained in this Lease shall be deemed or construed in any
way as constituting the consent or request of Landlord, express or implied, by inference or otherwise, to any contractor, subcontractor,
laborer, or materialman for the performance of any labor or the furnishing of any materials for any specific improvement, alteration,
or repair of or to the Premises, or any party thereof, nor as giving Tenant any right, power, or authority to contract for or
permit the rendering of any services or the furnishing of any materials that would give rise to the filing of any mechanic’s
or other liens against the interest of Landlord in the Premises. In the case of the filing of any lien upon the interest of Landlord
or Tenant in the Premises, Tenant shall cause the same to be discharged of record within ten (10) days after the filing of same.
If Tenant shall fail to discharge such mechanic’s lien within such period, then, in addition to any other right or remedy
of Landlord, Landlord may, but shall not be obligated to, discharge the same, either by paying the amount claimed to be due, or
by procuring the discharge of such lien by deposit in court or bonding. Any amount paid by Landlord for any of the aforesaid purposes,
or for the satisfaction of any other lien, not caused by Landlord, with interest thereon at the rate hereinafter provided from
the date of payment, shall be paid by Tenant to Landlord on demand.

 

30.       Estoppel
Certificate. Tenant will, at any time and from time to time, within ten (10) days from any written request by Landlord,
execute, acknowledge, and deliver to Landlord a statement in writing executed by Tenant certifying to Landlord and/or any party
designated by Landlord that Tenant is in possession of the Premises under the terms of this Lease, that this Lease is unmodified
and in full effect (or, if there have been modifications, that this Lease is in full effect as modified, and setting forth such
modifications), the dates to which the rent has been paid, that to the knowledge of Tenant no default exists hereunder or specifying
each such default of which Tenant may have knowledge, and such other matters as may be reasonably requested by Landlord. Any such
statement by Tenant may be relied upon by any prospective purchaser or mortgagee of the Building. Tenant’s failure to timely
execute and deliver any such statement shall constitute an event of default hereunder.

 

31.       Events
of Default.

 

(a)       The
following events shall be deemed to be events of default by Tenant under this Lease:

 

(i)       Tenant
shall fail or refuse to pay any installment of the rent hereby reserved or other sum of money payable hereunder or under any other
agreement between Landlord and Tenant when due and such failure or refusal shall continue for five (5) days following receipt
of written notice of such failure from the Landlord, such written notice shall only be required to be issued by the Landlord on
one (1) occasion in any twelve month period after which no such written notice is required to be issued by Landlord.

 

(ii)       Tenant
shall fail or refuse to comply with any term, provision, or covenant of this Lease, other than the payment of rent, or any
term, provision, or covenant of any other agreement between Landlord and Tenant, and shall not cure such failure or refusal
within twenty (20) days after written notice thereof from Landlord to Tenant.

 

(iii)       Tenant
or any guarantor of Tenant’s obligations hereunder (hereinafter called “Guarantor”) shall become insolvent,
make a transfer in fraud of creditors, make a general assignment for the benefit of creditors, or admit in writing its inability
to pay its debts as they become due.

 

(iv)       Tenant
or any Guarantor shall file a petition under any section or chapter of the Federal Bankruptcy Code, as amended from time to time,
or under any similar law or statute or the United States or any State thereof, or an order for relief shall be entered against
Tenant or any Guarantor in any bankruptcy or insolvency proceedings, or a petition or answer proposing the entry of an order for
relief against Tenant or any Guarantor in a bankruptcy or its reorganization proceedings under any present or future federal or
state bankruptcy or similar law shall be filed in any court and not discharged or denied within twenty (20) days after its filing.

 

    	 	10	 

    	 	 	 

    

 

(v)       A
receiver, trustee or custodian shall be appointed for all or substantially all of the assets of Tenant or any Guarantor or of
the Premises or any of Tenant’s property located therein in any proceeding brought by Tenant or any Guarantor, or any such
receiver, trustee or custodian shall be appointed in any proceeding brought against Tenant or any Guarantor and shall not be discharged
within twenty (20) days after such appointment, or Tenant or such Guarantor shall consent to or acquiesce in such appointment.

 

(vi)       The
leasehold hereunder shall be taken on execution or other process of law in any action against Tenant.

 

(vii)       Tenant
shall cease to conduct its business in the Premises or shall vacate any substantial portion of the Premises, whether or not rent
continues to be paid.

 

(viii)
Tenant shall fail or refuse to move into or take possession of the Premises within fifteen (15) days after the date on which the
term of this Lease commences under the terms of Paragraph 2 of this Lease.

 

(b)
       If an event of default occurs, Landlord shall have the right at its election, then or
at any time thereafter while such event of default continues, to pursue any one or more of the following remedies in addition
to all other rights or remedies provided herein or at law or in equity:

 

(i)       Landlord
may terminate this Lease and forthwith repossess the Premises by forcible entry and detainer suit or otherwise without liability
for trespass or conversion and be entitled to recover forthwith as damages a sum of money equal to the total of (A) the cost of
recovering the Premises; (B) the unpaid rent due and payable at the time of termination, plus interest thereon at the rate hereinafter
specified from the due date, (C) the balance of the rent for the remainder of the term less the fair market value of the Premises
for such period, and (D) any other sum of money and damages owed by Tenant to Landlord.

 

(ii)       Landlord
may terminate Tenant’s right of possession and may repossess the premises by forcible entry or detainer suit or otherwise
without liability for trespass or conversion, without demand or notice of any kind to Tenant and without terminating this Lease,
in which event Landlord may, but shall be under no obligation to, relet the same for the account of Tenant for such rent and upon
such terms as shall be satisfactory to Landlord. For the purpose of such reletting, Landlord is authorized to decorate or to make
any repairs, changes, alterations, or additions in or to the Premises that may be necessary or convenient. If Landlord exercises
the remedies provided in this subparagraph, Tenant shall pay to Landlord, and Landlord shall be entitled to recover from Tenant,
an amount equal to the total of the following: (A) unpaid rent, plus interest at the rate hereinafter provided, owing under this
Lease for all periods of time that the Premises are not relet; plus (B) the cost of recovering possession, and all of the costs
and expenses of such decorations, repairs, changes, alterations, and additions, and the expense of such reletting and of the collection
of the rent accruing therefrom to satisfy the rent provided for in this Lease to be paid; plus (C) any deficiency in the rentals
and other sums actually received by Landlord from any such reletting from the rent and additional rent required to be paid under
this Lease with respect to the periods the Premises are so relet, and Tenant shall satisfy and pay any such deficiency upon demand
therefore from time to time. Tenant agrees that Landlord may file suit to recover any sums falling due under the terms of this
subparagraph from time to time; and that no delivery or recovery of any portion due Landlord hereunder shall be a defense in any
action to recover any amount not theretofore reduced to judgment in favor of Landlord, nor shall such reletting be construed as
an election on the part of Landlord to terminate this Lease unless a written notice of such intention’ be given to Tenant
by Landlord. Notwithstanding any such reletting without termination, Landlord may at any time thereafter elect to terminate this
Lease for such previous breach.

 

(iii)       Offset
against any rents, damages, or other sums of money owed by Tenant any security deposit and/or any advance rent applicable to any
time period after the occurrence of the event of default and any sums, which would then, or thereafter otherwise be due from Landlord
to Tenant.

 

(iv)       Landlord
may, without notice, alter locks or other security devices at the Premises to deprive Tenant access thereto, and Landlord shall
not be required to provide a new key or right of access to Tenant in accordance with Texas law.

 

    	 	11	 

    	 	 	 

    

 

32.       Lien
for Rent. In consideration of the mutual benefits arising under this Lease, Tenant hereby grants to Landlord a lien and
security interest on all property of Tenant now or hereafter placed in or upon the Premises, and such property shall be and remain
subject to such lien and security interest of Landlord for payment of all rent and other sums agreed to be paid by Tenant herein.
The provisions of this paragraph relating to such lien and security interest shall constitute a security agreement under the Uniform
Commercial Code so that Landlord shall have and may enforce a security interest on all property of Tenant now or hereafter placed
in or on the Premises, including, but not limited to, all fixtures, machinery, equipment, furnishings, and other articles of personal
property now or hereafter placed in or upon the Premises by Tenant. Tenant agrees to execute as debtor such financing statement
or statements as Landlord may now or hereafter request in order that such security interest or interest may be perfected pursuant
to the Uniform Commercial Code. Landlord may at its election at any time file a copy of this Lease as a financing statement. Landlord,
as secured party, shall be entitled to all of the rights and remedies afforded a secured party under the Uniform Commercial Code
in addition to and cumulative of the landlord’s liens and rights provided by law or by the other terms and provisions of
this Lease.

 

33.       Attorneys’
Fees. In the event a party (the “Defaulting Party”) defaults in the performance of any terms, covenants,
agreements or conditions contained in this Lease and the other party (the “Non-Defaulting Party”) places the
enforcement of this Lease, or any part thereof, or the collection of any rent due or to become due hereunder, or recovery of
the possession of the Premises in the hands of an attorney, or files suit upon the same, the Defaulting Party agrees to pay
the Non-Defaulting Party’s reasonable attorneys’ fees. In addition, if either party (the “Asking
Party”) requests any consent or other action on the part of the other party (the “Asked Party”), in
connection with which the Asked Party deems it necessary for any documents to be prepared or reviewed by its counsel, the
Asking Party shall pay all necessary, actual, and reasonable attorneys’ fees and expenses incurred by the Asked Party
in such connection (not to exceed $1,000 in each instance).

 

34.       No
Implied Waiver. The failure of Landlord to insist at any time upon the strict performance of any covenant or agreement
or to exercise any option, right, power, or remedy contained in this Lease shall not be construed as a waiver or a relinquishment
thereof for the future. The waiver of or redress for any violation of any term, covenant, agreement, or condition contained in
this Lease shall not prevent a subsequent act, which would have originally constituted a violation, from having all the force
and effect of an original violation. No express waiver shall affect any condition other than the one specified in such waiver
and that one only for the time and in the manner specifically stated. A receipt by Landlord of any rent with knowledge of the
breach of any covenant or agreement contained in this Lease shall not be deemed a waiver of such breach, and no waiver by Landlord
of any provision of this Lease shall be deemed to have been made unless expressed in writing and signed by Landlord. No payment
by Tenant or receipt by Landlord of a lesser amount than the monthly installment of rent due under this Lease shall be deemed
to be other than on account of the earliest rent due hereunder, nor shall any endorsement or statement on any check or any letter
accompanying any check or payment as rent be deemed an accord and satisfaction, and Landlord may accept such check or payment
without prejudice to Landlord’s right to recover the balance of such rent or pursue any other remedy in this Lease provided.

 

35.       Casualty
Insurance. Landlord shall maintain fire and extended coverage insurance on the portion of the Building constructed by
Landlord, including additions and improvements by Tenant. Such insurance shall be maintained with an insurance company authorized
to do business in Texas, in amounts and with deductibles desired by Landlord at the expense of Landlord (as a part of the Basic
Costs), and payments for losses thereunder shall be made solely to Landlord. Tenant shall maintain at its expense fire and extended
coverage insurance on all of its personal property, including removable trade fixtures, located in the Premises and on all additions
and improvements made by Tenant and not required to be insured by Landlord above. If the annual premiums to be paid by Landlord
shall exceed the standard rates because Tenant’s operations, contents of the Premises, or improvements with respect to the
Premises beyond Building standard result in extra-hazardous exposure, Tenant shall pay the excess amount of the premium upon request
therefore by Landlord.

 

    	 	12	 

    	 	 	 

    

 

36.       Liability
Insurance. Tenant shall, at its expense, maintain a policy or policies of comprehensive general liability insurance, including
coverages the same as or equivalent to those provided pursuant to the Texas Multi-Peril Broad Form Comprehensive General Liability
Endorsement, with the premiums thereon fully paid on or before the due date, issued by and binding upon an insurance company with
an A.M. Best Rating of at least B+ and acceptable to Landlord, such insurance to afford minimum protection in limits of not less
than $1,000,000.00 Combined Single Limits of coverage for Personal Injury and Property Damage and $1,000,000.00 Annual Aggregate.
At least fifteen (15) days prior to Tenant’s occupancy of the Leased Premises, Tenant shall deliver to Landlord a copy of
all policy provisions intended to be included in the coverage to be provided by Tenant, and a valid certificate of insurance issued
to Landlord, effective as of the dates applicable under the terms of this Lease, which said certificate of insurance shall include,
without limitation: (A) provisions requiring notice by the insurer to Landlord at least thirty (30) days in advance of any contemplated,
intended or effective cancellation, nonrenewal, or material change or modification, or coverage provisions or limits; and (B)
a Waiver of Subrogation in favor of Landlord and agents, employees, servants, officers, directors, contractors, and subcontractors
of Landlord, with respect to the insurance coverage and claims of Tenant.

 

37.       Indemnity.
Landlord shall not be liable to Tenant, or to Tenant’s agents, servants, employees, customers, or invitees, for any
damage to person or property caused by any act, omission, or neglect of Tenant, its agents, servants or employees, and Tenant
agrees to indemnify and hold Landlord harmless from all liability and claims for any such damage.

 

38.       Waiver
of Subrogation Rights. Anything in this Lease to the contrary notwithstanding, Landlord and Tenant each hereby waives
any and all rights of recovery, claim, action, or cause of action, against the other, its agents, officers, or employees, for
any loss or damage that may occur to the Premises, or any improvements thereto, or the Building of which the Premises are a part,
or any reason of fire, the elements, or any other cause which could be insured against under the terms of standard fire and extended
coverage insurance policies referred to in Paragraph 35 and 36 hereof or is otherwise insured against under an insurance policy
maintained by the party suffering such loss or damage, regardless of cause or origin, including any negligence of the other party
hereto and/or its agents, officers, or employees, and each party covenants that no insurer shall hold any right of subrogation
against such other party. This waiver of subrogation provision shall be effective to the full extent, but only to the extent,
that it does not impair the effectiveness of insurance policies of Landlord and Tenant.

 

39.       Casualty
Damage. If the Premises or any part thereof shall be damaged by fire or other casualty, Tenant shall give prompt written
notice thereof to Landlord. In case the Building shall be so damaged by fire or other casualty that substantial alteration or
reconstruction of the Building shall, in Landlord’s sole opinion, be required (whether or not the Premises shall have been
damaged by such fire or other casualty), or in the event any mortgagee under a mortgage or deed of trust covering the Building
should require that the insurance proceeds payable as a result of said fire or other casualty be used to retire the mortgage debt,
Landlord may, at its option, terminate this Lease and the term and estate hereby granted by notifying Tenant in writing of such
termination within sixty (60) days after the date of such damage, in which event the Base Rental hereunder shall be abated as
of the date of such damage. If Landlord does not thus elect to terminate this Lease, Landlord shall within seventy-five (75) days
after the date of such damage commence to repair and restore the Building and shall proceed with reasonable diligence to restore
the Building (except that Landlord shall not be responsible for delays outside its control) to substantially the same condition
in which it was immediately prior to the happening of the casualty, except that Landlord shall not be required to rebuild, repair,
or replace any part of Tenant’s furniture or furnishings or fixture and equipment removable by Tenant under the provisions
of this Lease, but such work shall not exceed the scope of the work done by Landlord in originally constructing the Building and
installing Building standard items in the Premises, nor shall Landlord in any event be required to spend for such work an amount
in excess of the insurance proceeds actually received by Landlord as a result of the fire or other casualty. Landlord shall not
be liable for any inconvenience or annoyance to Tenant or injury to the business of Tenant resulting in any way from such damage.
If the Premises or any other portion of the Building be damaged by fire or other casualty resulting from the fault or negligence
of Tenant or any of Tenant’s agents, employees, or invitees, Tenant shall be liable to Landlord for the cost and expense
of the repair and restoration of the Building caused thereby to the extent such cost and expense is not covered by insurance proceeds.
Any insurance, which may be carried, by Landlord or Tenant against loss or damage to the Building or to the Premises shall be
for the sole benefits of the party carrying such insurance and under its sole control.

 

    	 	13	 

    	 	 	 

    

 

40.       Condemnation.
If the Premises shall be taken or condemned for public purpose to such extent as to render the Premises untenantable, this
Lease shall, at the option of either party, forthwith cease and terminate. All proceeds from any taking or condemnation of the
Premises shall belong to and be paid to Landlord.

 

41.       Damages
from Certain Causes. Landlord shall not be liable or responsible to Tenant for any loss or damage to any property or person
occasioned by theft, fire, act of God, public enemy, injunction, riot, strike, insurrection, war, court order, requisition, or
order of government body or authority, or for any damage or inconvenience which may arise through repair or alteration of, or
failure to repair, any part of the Building or Premises necessitated by such causes. Tenant, to the fullest extent permitted under
applicable law, hereby waives and agrees to forebear from asserting any claim or cause of action which may now exist or hereafter
arise under the Deceptive Trade Practices-Consumer Protection Act or any successor statute.

 

42.       Notice
and Cure. In the event of any act or omission by Landlord that would give Tenant the right to damages from Landlord or
the right to terminate this Lease by reason of a constructive or actual eviction from all or part of the Premises or otherwise,
Tenant shall not sue for such damages or exercise any such right to terminate until it shall have given written notice of such
act or omission to Landlord and to the holder(s) of the indebtedness or other obligations secured by any mortgage or deed of trust
affecting the Premises, and a reasonable period of time for remedying such act or omission shall have elapsed following the giving
of such notice, during which time Landlord and such holder(s), or either of them, their agents or employees, shall be entitled
to enter upon the Premises and do therein whatever may be necessary to remedy such act or omission. During the period after the
giving of such notice and during the remedying of such act or omission, the Base Rental payable by Tenant for such period as provided
in this Lease shall be abated and apportioned only to the extent that any part of the Premises shall be untenantable.

 

43.       Personal
Liability. The liability of Landlord, any agent of Landlord, or any of their employees to Tenant for or in respect of
any default by Landlord under the terms of this Lease or in respect of any other claim or cause of action shall be limited solely
and exclusively to the interest of Landlord in the Building, and Tenant agrees to look solely and entirely to Landlords interest
in the Building for the recovery and satisfaction of any judgment against Landlord, any agent of Landlord, or any of their employees,
it being agreed that in no event shall Landlord, any agent of Landlord, or any of their employees be (i) liable for any lost profits
or other consequential or special damages unless caused by the gross negligence or willful misconduct of Landlord or (ii) personally
liable for the payment or satisfaction of any judgment or deficiency, and Tenant covenants to forbear from instituting, asserting,
or prosecuting any claim or action or seeking any form of remedy or relief to the contrary.

 

44.       Notice.
Any notice, communication, request, reply or advice (hereinafter severally and collectively called “notice”) provided
for in this Lease or permitted to be given, made, or accepted by either party to the other must be in writing, and shall, unless
otherwise expressly provided in this Lease, be given or be served by depositing the same in the United States mail, postpaid and
certified and addressed to the party to be notified, with return receipt requested, or by delivering the same in person to an
officer of such party, or by prepaid telegram, when appropriate, addressed to the party to be notified. Notice deposited in the
mail in the manner hereinabove described shall be effective, unless otherwise stated in this Lease, from and after the expiration
of three (3) days after it is so deposited. Notice given in any other manner shall be effective only if and when received by the
party to which such notice was delivered. The addresses for the delivery of any notices hereunder shall, until changed as herein
provided, be those specified on the last page of this Lease. The parties hereto and their respective heirs, successors, legal
representatives, and assigns shall have the right from time to time and at any time to change their respective addresses and each
shall have the right to specify as its address any other address by at least fifteen (15) days written notice to the other party
delivered in compliance with this paragraph; provided, however, that no such notice shall be effective until received by the other
party and provided, further, however, that during the term of this Lease any notice to Tenant shall be deemed duly given if delivered
to Tenant at the Premises.

 

45.       Captions.
The captions and headings appearing in this Lease are inserted and included solely for convenience and shall never be considered
or given any effect in construing this Lease, or any provisions hereof, or in ascertaining intent, if any question of intent exists.

 

    	 	14	 

    	 	 	 

    

 

46.       Entirety
and Amendments. This Lease embodies the entire contract between the parties hereto, relative to the subject matter hereof
Except as otherwise herein provided, no variations, modifications, changes, or amendments herein or hereof shall be binding upon
any party hereto unless in writing, executed by a duly authorized officer or agent of the particular party. Landlord and Tenant
have negotiated the provisions of this Lease and, notwithstanding any rule or principle of law or equity to the contrary, no provision
of the Lease shall be construed in favor of or against either party by virtue of the authorship or purported authorship thereof.

 

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

 

48.       Binding
Effect. All covenants and obligations contained within this Lease shall bind, extend, and inure to the benefit of Landlord,
its successors and assigns, and shall be binding upon Tenant, its permitted successors and assign.

 

49.       Number
and Gender of Words. All personal pronouns used in this Lease shall include the other gender, whether used in the masculine,
feminine, or neuter gender, and the singular shall include the plural whenever and as often as may be appropriate.

 

50.       Recordation.
Tenant agrees not to record this Lease, but each party hereto agrees, on request of the other, to execute a short form lease
in form recordable and complying with applicable Texas laws. In no event shall such document set forth the rental or other charges
payable by Tenant under this Lease; and any such document shall expressly state that it is executed pursuant to the provision
contained in this Lease and is not intended to vary the terms and conditions of this Lease.

 

51.       Governing
Law. This Lease and the rights and obligations of the parties hereto shall be interpreted, construed, and enforced in
accordance with the laws of the State of Texas.

 

52.       Interest
Rate. All past-due rents or other sums payable by Tenant hereunder, and any sums advanced by Landlord for Tenant’s
account pursuant to applicable provisions hereof, shall bear interest from the date due or advanced until paid at the rate of
twelve percent (12%) per annum.

 

53.       Force
Majeure. Whenever a period of time is herein prescribed for the taking of any action by Landlord, Landlord shall not be
liable or responsible for, and there shall be excluded from the computation of such period of time, any delays due to strikes,
riots, acts of God, shortages of labor or materials, war, governmental laws, regulations or restrictions, or any act, omission,
delay, or neglect of Tenant or any of Tenant’s employees or agents, or any other cause whatsoever beyond the control of
Landlord. Whenever a period of time is herein prescribed for the taking of any action by Tenant, Tenant shall not be liable or
responsible for, and there shall be excluded from the computation of such period of time, any delays due to strikes, riots, acts
of God, shortages of labor or materials, war, governmental laws, regulations or restrictions, or any act, omission, delay, or
neglect of Landlord or any of Landlord’s employees or agents, or any other cause whatsoever beyond the control of Tenant.

 

54.       Rules
and Regulations. Tenant covenants and agrees that it will comply with the Rules and Regulations of Landlord in the form
of Exhibit “B” attached hereto (same being expressly made a part hereof) as well as all changes therein and additions
thereto that may at any time or from time to time be adopted by Landlord for the operation and protection of the Building and
the protection and welfare of its tenants and invitees. Landlord expressly reserves and retains the right at any time and from
time to time to make such reasonable changes in and additions to such Rules and Regulations, provided, however, that same shall
not become effective and a part of this Lease until a copy thereof shall have been delivered to Tenant.

 

    	 	15	 

    	 	 	 

    

 

55.       Reserved
Rights. Without limiting in any way Landlord’s right to promulgate rules and regulations, Landlord shall have the
following rights, exercisable without notice and without liability to Tenant for damage or injury to property, persons or business
and without effecting an eviction, constructive or actual, or disturbance of Tenant’s use or possession or giving rise to
any claim for setoff or abatement of rent:

 

(a)       To
change the Building’s and/or the Building’s name.

 

(b)       To
retain at all times, and to use in appropriate instances, keys to all doors within and to the Premises. No locks shall be changed
or added without prior written consent of Landlord.

 

(c)       To
decorate and to make repairs, alterations, additions, changes or improvements, whether structural or otherwise, in and about the
Building, or any part thereof, and for such purposes to enter upon the Premises and, during the continuance of any such work,
to temporarily close doors, entryways, public space and corridors in the Building, to interrupt or temporarily suspend Building
services and facilities and to change the arrangement and location of entrances or passageways, doors and doorways, corridors,
elevators, stairs, toilets or other public parts of the Building, all without abatement of rent or affecting any of Tenant’s
obligations hereunder, so long as the Premises are reasonably accessible.

 

(d)       To
have and retain a paramount title to the Premises free and clear of any act of Tenant purporting to burden or encumber them.

 

(e)       To
grant to anyone the exclusive right to conduct any business or render any service in or to the Building, provided such exclusive
right shall not operate to exclude Tenant from the use expressly permitted herein.

 

(f)       To
take all such reasonable measures as Landlord may deem advisable for the security of the Building and its occupants, including
without limitation, the closing of the Building after normal business hours and on Saturdays, Sundays and holidays; subject, however,
to Tenant’s right to admittance when the Building is closed after normal business hours under such reasonable regulations
as Landlord may prescribe from time to time which may include, by way of example but not of limitation, that persons entering
or leaving the Building, whether or not during normal business hours, identify themselves to a security officer by registration
or otherwise and that such persons establish their right to enter or leave the Building.

 

56.       Approval
by Landlord’s Mortagees. Landlord’s execution and delivery of this Lease are expressly subject to and conditioned
upon approval of all of the provisions of this Lease by any lenders furnishing financing in respect of the Building.

 

57.       Brokers.
Tenant represents and warrants that it has not entered into any agreement with, or otherwise had any dealings with, any broker
or agent in connection with the negotiation or execution of this Lease which could form the basis of any claim by such broker
for a brokerage fee or commission, other than with Jason Dodson of Cushman & Wakefield U.S., Inc., and Tenant hereby agrees
to indemnity and hold harmless Landlord from all costs (including but not limited to court costs and reasonable attorney’s
fees), expenses or liabilities from commissions or other corporations claimed by another broker or agent with respect to this
Lease which arise out of any agreement or dealings, or alleged agreement or dealings between the indemnifying party and any such
agent or broker. This provision shall survive the expiration or termination of this Lease.

 

58.       Substitute
Space. Landlord reserves the right at any time prior to tender of possession of the Premises to Tenant or during the term
of this Lease after the commencement date and upon sixty (60) days’ prior notice (“Substitution Notice”) to
substitute comparable space (“Substitute Space”) elsewhere within the Building for the Premises. If Landlord relocates
Tenant to any Substitute Space other than an end cap, Tenant shall have the option to terminate the Lease. Additionally, Landlord
shall reimburse Tenant for all reasonable, out of pocket expenses, costs for moving and installing Tenant’s furniture, equipment
and supplies from the Premises to the relocation space, for installation of wiring and cabling in the relocation space, and for
reprinting Tenant’s stationery of the same quality, design and quantity as Tenant’s stationery supply on hand immediately
before Landlord’s notice to Tenant of the exercise of this relocation right.

 

59.       Time
of Essence. Time is of the essence of this Lease and each and every provision of this Lease.

 

    	 	16	 

    	 	 	 

    

 

60.       Best
Efforts. Whenever in this Lease there is imposed upon Landlord the obligation to use Landlord’s best efforts or
reasonable efforts or diligence, Landlord will be required to exert such efforts or diligence only to the extent the same are
economically feasible and will not impose upon Landlord extraordinary financial or other burdens.

 

61.       No
Reservation. Submission by Landlord of this instrument to Tenant for examination or signature does not constitute a reservation
of or option for lease. This Lease will be effective as a lease or otherwise only upon execution and delivery by both Landlord
and Tenant.

 

62.       Consents.
If Tenant requests Landlord’s consent under any provision of this Lease and Landlord fails or refuses to give such consent
in breach hereof, Tenant’s sole remedy will be an action for specific performance or injunction.

 

63.       Legal
Authority. In the event Tenant is a corporation (including any form of professional association), then each individual
executing or attesting this Lease on behalf of such corporation covenants, warrants and represents that he is duly authorized
to execute or attest and deliver this Lease on behalf of such corporation. In the event Tenant is a partnership (general or limited),
then each individual executing this Lease on behalf of the partnership hereby covenants, warrants and represents that he is duly
authorized to execute and deliver this Lease on behalf of the partnership in accordance with the partnership agreement, or an
amendment thereto, now in effect.

 

64.       Exhibits,
Riders and Addenda. Exhibits A,B,C,D and any other exhibits, riders and addenda attached hereto are incorporated herein
and made a part of this Lease for all purposes.

 

65.       Waiver
of Right to Protest Appraised Value. TENANT HEREBY VAIVES ALL RIGHTS TO PROTEST THE APPRAISED VALUE OF THE PROPERTY OR TO
APPEAL THE SAME AND ALL RIGHTS TO RECEIVE NOTICES OF REAPPRAISALS AS SET FORTH IN SECTIONS 41.413 AND 42.015 OF THE TEXAS TAXCODE.

 

66.       Waiver
of Texas Deceptive Trade Practices Act. TENANT HEREBY WAIVES ALL ITS RIGHTS UNDER THE TEXAS DECEPTIVE TRADE PRACTICES - CONSUMER
PROTECTION ACT, SECTION 17A1 ET.SEQ. OF THE TEXAS BUSINESS AND COMMERCE CODE (THE ‘DTPA’), A LAW THAT GIVES CONSUMERS
SPECIAL RIGHTS AND PROTECTIONS. AFTER CONSULTATION WITH AN ATTORNEY OF TENANT’S OWN SELECTION, TENANT VOLUNTARILY CONSENTS
TO THIS WAIVER. Accordingly, Tenant’s rights and remedies with respect to the transactions contemplated under this Lease,
and with respect to all acts or practices of Landlord, past, present or future, in connection with such transactions, shall be
governed by legal principles other than the DTPA. The foregoing waiver by Tenant shall also be binding on any permitted assignee
or successor of Tenant under this Lease. The provisions of this Section shall survive any termination of this Lease.

 

    	 	17	 

    	 	 	 

    

 

IN
WITNESS WHEREOF, Landlord and Tenant have executed this Lease in multiple original counterparts as of the date and year first
above written.

 

LANDLORD:

 

GreenTech
One L.P.

By:
JaRyCo GreenTech One LLC, its general partner

 

	By:		 
	Name:	Bruce
    R. Heller	 
	Title:	Managing
    Member	 
	Date:
    		 
	Address:	780
    North Watters Road	 
	 	Suite
    120	 
	 	Allen,
    TX 75013	 

 

TENANT:

 

Virtual
Surveillance, LLC

 

	By:	/s/
    Roger H. Ralston Sr.	 
	Name:	Roger
    H. Ralston Sr.	 
	Title:	President
    / CEO	 
	Date:
    	May
    20, 2019	 

 

	Address
    after occupancy:	714
    S. Greenville Avenue
	 	Suite
    190
	 	Allen,
    TX 75002

 

    	 	18	 

    	 	 	 

    

 

EXHIBIT
“A”

 

FLOOR
PLAN OF PREMISES

 

 

 

	TECH
    CENTER THREE	 	Facilities
    for Virtual Surveillance
	714
    S. Greenville Avenue	 	7873
    RSF/USF
	Allen,
    TX 75002	 	Scale:
    3/32”= 1’-0”
	 	 	5/14/19

 

    	 	19	 

    	 	 	 

    

 

EXHIBIT
“B”

 

BUILDING
RULES AND REGULATIONS

 

1.       All
contractor’s, contractor’s representatives and installation technicians performing work in the Building shall be subject
to Landlord’s prior approval and shall be required to comply with Landlord’s rules, regulations, policies and procedures
for such work, which may be revised from time to time. Any damage caused to the Building during such work shall be repaired at
the cost of the Tenant.

 

2.       Movement
in or out of the Building of furniture or office equipment or the dispatch or receipt by Tenant of any merchandise or materials
shall be restricted to hours designed by Landlord. Tenant shall assume all risk as to damage to articles moved and injury to persons
or public property, and personnel of Landlord if damaged or injured as a result of acts in connection with such service performed
for Tenant.

 

3.       Unless
otherwise expressly agreed in writing by Landlord, (i) no signs will be allowed in any form on the exterior of the Building or
the interior or exterior of windows, (ii) no signs except in uniform location and uniform style fixed by Landlord will be permitted
at entrances to Tenant’s space, and (iii) the construction and/or installation of all authorized signs will be contracted
for by Landlord for Tenant’s cost at the rate fixed by Landlord from time to time and Tenant will be billed and pay for
such service promptly on receipt thereof.

 

4.       No
portion of Tenant’s Premises or any other part of the Building shall at any time be used or occupied as sleeping or lodging
quarters.

 

5.       Tenant
shall not place, install or operate on the Premises or in any part of the Building, any engine, stove, or machinery, or conduct
mechanical operations or cook thereon or therein, or place or use in or about the Premises any explosives, gasoline, kerosene,
oil, acids, caustics, or any other inflammable, explosive, or hazardous material without written consent of Landlord.

 

6.       Landlord
shall not be responsible for lost or stolen personal property, equipment, money or jewelry from Tenant’s area regardless
of whether such loss occurs when such area is locked against entry or not.

 

7.       Landlord
will not permit entrance to Tenant’s offices by use of pass keys controlled by Landlord to any person at any time without
the prior written permission of Tenant except only employees, contractors, or service personnel directly supervised by Landlord.

 

8.       None
of the Exterior Areas of the Building (defined as the parking, loading, drive lanes or landscape areas) shall be blocked or obstructed,
nor shall any rubbish, litter, trash, or material of any nature be placed, emptied or thrown into these areas, nor shall such
areas be used at any time for any exterior storage of goods or materials.

 

9.       Tenant
shall not do, or permit anything to be done in or about the Building, or bring or keep anything therein that will in any way increase
the rate of fire or other insurance on the Building, or on property kept therein, or obstruct or interfere with the rights of,
or otherwise injure or annoy, other tenants, or do anything contrary to or in conflict with valid laws, rules or regulations of
any municipal or governmental authority or fire, safety or building authority or regulation.

 

10.       Landlord
shall have the right to approve the weight, size and location of heavy equipment or any equipment requiring additional electrical
load than normal office equipment in and about the Premises.

 

11.       Tenant
entrance doors and loading area doors (both man doors and vehicle doors), when not in use, shall remain closed. No performance
of services shall be allowed in the Exterior Areas of the Building.

 

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12.       No
animals, except service animals, shall be brought into the Building.

 

13.       Tenant
shall not permit any type of vending machine in the Premises except for machines for the exclusive use of Tenant’s employees.

 

14.       Tenant
shall not canvass, solicit or peddle in or about the Building.

 

15.       Building
is designated as a non-smoking facility. Tenant nor its agents, employees, contractors, guests or invitees shall not smoke or
permit smoking in the Building except in areas outside the Building specifically designated by Landlord where smoking is permitted.

 

16.       The
term “holiday” shall include all days on which national banks in the municipality in which the building is located are
closed to the general public. This shall include but not be limited to New Years Day, Memorial Day, Independence Day, Labor
Day, Thanksgiving Day and Christmas Day.

 

17.       Common
truck height loading dock area (“Loading Dock”) has been provided for the joint use of all tenants. Use of Loading
Dock shall be done in a safe manner and in accordance with all procedures outlined by Landlord. Gates shall remain locked at all
times when Loading Dock is not in use and shall be re-locked after each use. No materials or equipment will be allowed to remain
in the Loading Dock area except when the actual loading and unloading of vehicles is underway. Any and all packing materials,
pallets and other materials shall be immediately removed from the Loading Dock and properly disposed of. Vehicle parking at Loading
Dock is permitted only during loading and unloading activities. No storage of materials or vehicles is allowed at the Loading
Dock.

 

18.       Landlord
reserves the right to rescind any of these rules and make such other and further rules and regulations as in Landlord’s
judgment shall from time to time be needful for the operation thereof, the preservation of good order therein, and the protection
and comfort of its tenants, their agents, employees and invitees, which rules when made and notice thereof given to a tenant shall
be binding upon Tenant in the manner as if originally prescribed.

 

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EXHIBIT
“C”

 

LEASEHOLD
IMPROVEMENTS AGREEMENT

 

It
is agreed that Landlord will complete construction of the initial Premises in accordance with the following terms and provisions:

 

1.       A.
No later than June 1, 2019, Tenant shall submit to Landlord Tenant’s proposed complete, architectural, electrical and mechanical
plans and specifications (the “Plans”) for the construction of tenant improvements to the Premises. Landlord shall
make available to Tenant the services of its Architect to assist Tenant in the preparation of the Plans, which shall be subject
to Landlord’s final approval. The cost of preparing the Plans shall be applied against the Allowance (as hereinafter defined).

 

B.
Within five (5) business days following the date of Landlord’s receipt of the Plans, Landlord will advise Tenant of Landlord’s
approval or disapproval of the Plans. If Landlord disapproves any aspect of the Plans, Landlord shall so notify Tenant and specify
the reasons for such disapproval. Landlord may also specify how any such disapproved item may be made reasonably acceptable to
Landlord, and Tenant shall, within five (5) business days thereafter, deliver to Landlord revised Plans incorporating the revisions
required by Landlord.

 

2.       Following
the approval in writing by Landlord and Tenant of the Plans, Landlord shall construct the tenant improvements contemplated hereby
(collectively, the “Leasehold Improvements”), in accordance with the Plans. The cost of the Improvements for the purpose
of billing shall equal the cost to Landlord of designing and constructing such Improvements.

 

3.       Construction
of the following improvements (collectively, the “Base Building Improvements”) to the Premises shall be at Landlord’s
sole cost and expense:

 

(a)       Main
electrical switchgear installed on the floor of the Premises for connection of sub-metered Tenant electrical feed;

 

(b)       Building
Standard sprinkler heads in a placement and quantity as required for base building final inspection;

 

(c)       Building
Standard fire alarm system installed as required for base building final inspection with connection points available on floor
of Premises for connection of Tenant devices if required by City of Allen;

 

(d)       Underground
sanitary sewer line in leaveout areas, overhead water service line.

 

All
costs and expenses incurred in the design and construction of the Improvements over and above the cost of the Shell Improvements
shall be borne by Tenant (and are hereinafter referred to as “Tenant’s Costs”); provided, however, that Tenant
shall receive a tenant improvement allowance (the “Allowance”) of up to $45.00 per square foot of Net Rentable Area
contained in the initial Premises, to be credited against the billing costs of constructing all Leasehold Improvements (other
than Shell Improvements and which may include such items as cabling, signage, FF&E installation or any other Leasehold Improvement
items) in the Premises. Any excess (“Excess”) of Tenant’s Costs over the Allowance shall be payable as follows:

 

(a)       Tenant
shall pay, within ten (10) days from delivery of Landlord’s itemized invoice to Tenant therefore, to Landlord prior to the
commencement of construction of the Improvements, an amount equal to fifty percent (50%) of such Excess (as then estimated by
Landlord);

 

(b)       After
substantial completion of the Improvements, but prior to occupancy of the Premises by Tenant, Tenant shall pay to Landlord, within
ten (10) days from delivery of Landlord’s itemized invoice to Tenant therefore, an amount equal to ninety five percent (95%)
of the Excess as then estimated by Landlord, less payments received by Landlord according to (a) above;

 

    	 	22	 

    	 	 	 

    

 

(c)       As
soon as the final accounting can be prepared and submitted to Tenant, Tenant shall pay to Landlord, within ten (10) days from
delivery of Landlord’s itemized invoice to Tenant therefore, the entire unpaid balance of the actual Excess based on the
final costs to Landlord as described in Paragraph 2 hereof.

 

The
amounts payable hereunder shall constitute rent due pursuant to this Lease at the times specified herein and failure to make any
such payments when due shall constitute an event of default under this Lease, entitling Landlord to all of its remedies hereunder
as well as all remedies otherwise available to Landlord.

 

4.       If
Tenant requests any changes in the Plans and Specifications, Tenant shall present Landlord with revised drawings and specifications
for Landlord’s approval, which approval will not be unreasonably withheld. If Landlord approves such changes, Landlord shall
incorporate such changes in the Improvements following Landlord’s receipt of a change order therefore executed by Tenant.
Landlord, however, may require, prior to proceeding with any changes, additional cash advances against the Excess in the event
Landlord determines that Tenant’s proposed changes will increase the amount of the Excess.

 

5.       Should
Landlord be delayed in substantially completing the work to be performed hereunder as a result of (i) Tenant’s failure to
submit the Plans to Landlord as provided in Paragraph 1 hereof or (ii) Tenant’s requests for changes in the Plans which
delay said work or (iii) the performance of any work contemplated herein by a contractor or agent employed by Tenant (any such
contractor or agent being subject to the prior written approval of Landlord) or (iv) any other delay caused by Tenant, its agents
or employees, then Tenant’s obligation to pay rent under the Lease shall nevertheless commence on the date specified in
Paragraph 4 of this Lease and the commencement date under this Lease shall not be delayed, unless such delays for which Tenant
is responsible are in addition to delays for which Landlord is responsible, in which case the Commencement Date under this Lease
shall be extended for the period of delays for which Landlord was responsible.

 

    	 	23	 

    	 	 	 

    

 

EXHIBIT
“D”

 

PARKING
AGREEMENT

 

1.       Non-reserved
surface parking will be available for all employees and visitors at a ratio of one space per 375 square feet of Net Rentable Area.

 

2.       All
motor vehicles (including all contents thereof) shall be parked in the Spaces at the sole risk of Tenant, its employees, agents,
invitees and licensees, it being expressly agreed and understood that Landlord has no duty to insure any of said motor vehicles
(including the contents thereof), and that Landlord is not responsible for the protection and security of such vehicles from theft
and/or malicious mischief or any other cause of damage, injury or harm. Landlord shall have no liability whatsoever for any property
damage and/or personal injury which might occur as a result of or in connection with the parking of said motor vehicles in any
of the Spaces (unless arising out of Landlord’s gross negligence), and Tenant hereby agrees to indemnify, defend, and hold
Landlord harmless from and against any and all costs, claims, expenses, and/or causes of action attributable to the negligence,
acts or omissions of any party whom Tenant permits to use any of the Spaces.

 

3.       In
its use of the Spaces, Tenant and any party whom Tenant permits to use any of the Spaces shall follow all of the rules of the
Building applicable thereto, as the same may be reasonably amended from time to time, and any failure to do so shall constitute
an event of default hereunder.

 

4.       To
ensure that only those parties leasing spaces are utilizing such parking spaces, Tenant shall provide Landlord with a complete
list of the names of all of Tenant’s employees, which list shall contain the corresponding license plate numbers of those
automobiles owned, leased or used by each of said employees. Such list shall be updated by Tenant periodically, as necessary,
and shall contain a specific designation as to which automobiles are entitled to use the Spaces. If an automobile not designated
on the above list as being entitled to use one of the Spaces is found parked in any of the Spaces, Landlord shall be entitled
and is hereby authorized to have said vehicles towed away, at Tenant’s sole risk and expense. Tenant hereby agrees to pay
any such amount and Tenant’s failure to do so within ten (10) days from Landlord’s demand therefore shall additionally
be deemed an event of default under this Lease, entitling Landlord to all of its rights and remedies hereunder.

 

5.       Landlord
reserves the right to designate general areas of parking for each Tenant based on such Tenant’s occupant and parking load
for the project.

 

6.       Service
vehicles may be parked on site overnight upon written approval of Landlord. All vehicles parked overnight on site shall be parked
in such areas so as to not be visible from any public right of way or street.

 

7.       Landlord
may, at Landlord’s sole discretion, provide for reserved spaces and/or covered reserved spaces in the future and reserves
the right to modify this Exhibit D as required to allow such uses.

 

    	 	24	 

    	 	 	 

    

 

EXHIBIT
“E”

 

ADDITIONAL
PROVISIONS

 

1.       Tenant
shall have the one time Right of First Refusal on any space adjacent to the Premises in the Building that become vacant after
occupancy by Tenant per this Lease. Upon Landlord’s agreement to lease space to another tenant, Landlord shall present such
Right of First Refusal to Tenant at the same terms as proposed to the other tenant. Tenant shall notify Landlord within ten (10)
days of its intention to exercise the First Right of Refusal. In the event that Tenant does not exercise or does not respond in
the ten (10) day period, Landlord shall be allowed to proceed with the other tenant.

 

2.       Landlord
provides a Renewal Option to Tenant for two (2) five (5) year periods at Fair Market Value provided Tenant notifies Landlord of
its intention to renew in writing no later than nine (9) months prior to the Termination Date.

 

    	 	25

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