Document:

Document

Exhibit 10.53
PURCHASE AND SALE AGREEMENT

    This Purchase and Sale Agreement (the “Agreement”) is entered into this _____ day of ______________, 2020 (“Final Execution Date”) by and between Northbrook Commercial Properties, LLC, an Illinois limited liability company having its principal place of business at 1818 Skokie Blvd., Northbrook IL 60062 (“Seller”) and Luminex Corporation, a Delaware corporation having its principal place of business at 12212 Technology Blvd, Austin TX 78727 (“Purchaser”). 

WITNESSETH

In consideration of the mutual covenants hereinafter contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser hereby agrees to purchase from Seller and Seller hereby agrees to sell to Purchaser the following:

(a) that certain parcel of land containing approximately 5.76 acres of land area and the building thereon containing approximately 83,173 square feet of floor area, which property is commonly known as 4080-4100 Commercial Blvd., Northbrook IL 60062 (Tax Parcel ID# 04-06-107-004-0000:) and as legally described in Exhibit A attached hereto, together with all building improvements including all fixtures, hereditaments and appurtenances located thereon and used in connection with the Property, and all appurtenant rights thereto including any water or mineral rights (collectively, the “Real Estate”); 

(b) all of Seller’s right title and interest in and to the commercial leases (the “Leases”) of the Real Estate, which Leases are described in Exhibit B attached hereto; 

(c) all of Seller’s right, title and interest in and to any appliances, equipment or other personal property (the “Personalty”) currently located within and/or used in connection with the operation of the Real Estate; and 

(d) all of all of Seller’s right, title and interest in and to warranties, licenses, permits, goodwill and other intangible property (the “Intangibles”) arising or used in connection with the Real Estate or the use, ownership or operation thereof. The Real Estate, together with the Leases, the Personalty and the Intangibles, are hereinafter referred to collectively as the “Property.”

Such purchase and sale shall be upon and subject to the following terms and conditions:

1.    Purchase Price.    The purchase price for the Property (the “Purchase Price”) shall be Eight Million and 00/100 Dollars ($8,000,000.00) and shall be payable as follows:

    (a)    Eighty Thousand and 00/100 Dollars ($80,000.00) by cashier’s check or by wire transfer of funds within three (3) business days after the full execution of this Agreement, as earnest money (the “Earnest Money”), to be deposited with and held in escrow by the Title Company (as defined in Paragraph 4 hereof). At Purchaser’s option, said Earnest Money may be deposited in an interest-bearing account with all interest thereon to be added to and applied in the same manner as the Earnest Money. Notwithstanding anything in this Agreement to the contrary, One Hundred Dollars ($100.00) of the Earnest Money is delivered to the Title Company for delivery by the Title Company to Seller as “Independent Consideration” (herein so called), and the Earnest Money is reduced by the amount of the Independent Consideration, which amount has been bargained for and agreed to as consideration for Seller’s execution and delivery of this Agreement.  The Independent Consideration is in addition to and 
			
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independent of all other consideration provided for in this Agreement and is non-refundable in all events.  If the sale is consummated in accordance with the terms hereof all Earnest Money shall be applied to the Purchase Price to be paid by Purchaser at the Closing (hereinafter defined).  If the sale is consummated in accordance with the terms hereof all Earnest Money shall be applied to the Purchase Price to be paid by Purchaser at the Closing (hereinafter defined).  In the event this Agreement is terminated by Purchaser in accordance with the terms hereof the Earnest Money shall be returned to Purchaser; and

    (b)    The balance, plus or minus prorations as herein provided, shall be paid by wire transfer of funds at Closing (as defined in Paragraph 8 hereof).

2.    Survey.      Within thirty five (35) days after the Final Execution Date, Seller shall obtain, at Seller’s expense, a currently dated 2016 ALTA/NSPS Land Survey (the “Survey”) prepared by a surveyor licensed in the state wherein the Property is located and containing the following Table A Matters 1, 2, 3, 4, 6(b), 7(a), 7(b)(1), 7(c), 8, 9, 10, 11(a), 13, 14, 16, 17, and 18, and is certified to Seller, Purchaser, and Title Insurer.  In the event the Survey shows any easement, right of way, encroachment, conflict or condition (“Defects”) materially affecting the Property that is unacceptable to Purchaser, in Purchaser’s sole discretion, Purchaser shall, within thirty (30) days after receipt of the Survey, the Title Commitment and the Underlying Documents (hereinafter defined), notify Seller in writing of such Defects.  Upon the expiration of such thirty (30) day period, Purchaser shall be deemed to have accepted the Survey and all matters shown thereon (other than the Defects which are the subject of a notification permitted under the preceding sentence) and such matters (except for the Defects) shall be included in the term “Permitted Exception” as used herein.  The approved Survey shall be attached to this Agreement as Exhibit A, replacing the description of the Property, if any, previously attached as Exhibit A.  In the event Seller notifies Purchaser that Seller is unable or unwilling to correct such unacceptable Defects, or if Seller fails to correct such unacceptable Defects to the reasonable satisfaction of Purchaser prior to the Closing Date, Purchaser may terminate this Agreement by notice in writing to Seller.  In the event of any termination pursuant to this paragraph, the parties shall have no further right or obligation hereunder (except for any liabilities accruing prior to termination and covenants expressly intended to survive hereunder) and the Earnest Money shall be returned to Purchaser.

3.    Title.    Within ten (10) days after the Final Execution Date, Seller shall procure, at Seller’s expense, and shall deliver to Purchaser a commitment for an ALTA 2006 policy of title insurance or equivalent (the “Title Commitment”) issued by Chicago Title Insurance Company (the “Title Company”). Such Title Commitment must show title to the Property in Seller and commit to the issuance of an owner’s policy of title insurance in the amount of the Purchase Price, including an extended coverage endorsement over general exceptions usually contained in such title policies. The Title Commitment shall identify the Property by the legal description set forth in the Survey, specify all easements, liens, encumbrances, restrictions, conditions and covenants affecting the Property and shall be accompanied by copies of all documents referred to therein as exceptions to title (“Underlying Documents”).  In the event any exceptions (title defects) appear in the Title Commitment that are unacceptable to Purchaser, in Purchaser’s sole discretion, Purchaser shall, within thirty (30) days after receipt of the Survey, the Title Commitment and the Underlying Documents, notify Seller in writing thereof.  Upon the expiration of such thirty (30) day period, Purchaser shall be deemed to have accepted all exceptions to title shown on the Title Commitment (other than those which are the subject of a notification permitted under the preceding sentence) and such exceptions (except title defects) shall be included in the term “Permitted Exceptions” as used herein.  Subject to Paragraph 4 below, any exceptions to liens or other encumbrances that can be removed by the payment of a definite or ascertainable amount of money will be removed at Closing by application of the Purchase Price thereto.  Seller shall cause the Title Company to furnish an updated Title Commitment to Purchaser prior to 
			
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Closing indicating the exceptions that have been removed or will be removed at Closing by application of the Purchase Price or otherwise.  If any exception that is unacceptable to Purchaser cannot be removed at or prior to Closing, Purchaser may either (i) accept the Title Commitment in its updated form, (ii) terminate this Agreement, or (iii) extend the Closing Date for a period that Purchaser deems reasonable for curing such objections, but not to exceed thirty (30) days.  If cure is not affected within such extended period, Purchaser may again elect (i) or (ii) above.  Upon any such termination, each party shall be released from all duties or obligations contained herein (except for any liabilities accruing prior to termination and covenants expressly intended to survive hereunder) and the Earnest Money shall be returned to Purchaser.

If Purchaser elects not to terminate this Agreement in accordance with this subsection, Purchaser may cause the Title Company to reissue from time to time the Title Commitment prior to Closing. Purchaser shall have the right to object to any newly discovered exceptions appearing on any subsequently issued Title Commitment, other than the Permitted Exceptions, and shown on any updated Title Commitment. If Seller fails to cure such items, Purchaser shall again have the right to terminate this Agreement and be reimbursed the Earnest Money or waive the objection(s). The time periods for objecting to and curing the additional exceptions and for terminating this Agreement shall be the same as those set forth in this subsection, commencing with the date Purchaser receives the updated Title Commitment, and, if necessary, the Closing Date shall be extended for such purposes.

4.    Nanosphere Lease. 

A.  Intentionally omitted.

B.  Seller and Purchaser further acknowledge that (x) a portion of the Property is currently leased by Seller to an affiliate of Purchaser, Nanosphere, Inc. (“Nanosphere”); and (y) Seller has asserted that under such Lease with Nanosphere, Seller is entitled to reimbursement of fuel costs and other amounts alleged by TempAir in the TempAir Claim to be due and payable. Effective as of the Final Execution Date, Seller shall be deemed to have released, discharged and remised Purchaser, Nanosphere and their respective employees, officers, successors and assigns from and against any (i) claim for reimbursement for such fuel costs, or (ii) other cost or liability arising out of or in connection with the TempAir Claim; provided, however that nothing contained herein shall be deemed to affect, impair or release any obligation of Nanosphere under its Lease which accrues up to and including the Closing Date.

5.    Seller’s Representations and Warranties. Seller represents and warrants to Purchaser as follows, which representations and warranties shall be deemed made by Seller to Purchaser as of the Closing Date, shall survive the Closing and but for such representations and warranties Purchaser would not execute this Agreement:

(a)    As of the Closing Date, except for the tenants under the Leases, there shall be no parties in possession of any portion of the Property as lessees, tenants at sufferance, or trespassers; 

(b)    There are no pending condemnation or similar proceedings affecting the Property, or any part thereof, and Seller has received no written notice that any such proceeding is threatened or contemplated by any governmental authority;

(c)    Seller has the present full authority and power to execute this Agreement and to close the sale of the Property and the signatory below on behalf of Seller has full authority and power to execute this Agreement and to close the sale of the Property;

			
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(d)    Seller has no actual knowledge of any deposit, storage, disposal, removal, burial, discharge, spillage, uncontrolled loss, seepage or filtration of oil, petroleum or chemical liquids or solids, liquid or gaseous products or any hazardous wastes or hazardous substances (collectively “Hazardous Substances”), as those terms are used in any appropriate and applicable law, code or ordinance including, but not limited to, the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, at, upon, under or within the Property. 

(e)    Seller has not received any notice of any uncured violation on the Property of any applicable federal, state or local statute, law or regulation pertaining to environmental matters or any other matters which would adversely affect Purchaser’s proposed use of the Property as contemplated herein;

(f)    (i)  There is no suit, claim, action, arbitration, investigation or legal, administrative or other proceeding pending against or affecting Seller with respect to environmental or any other matters which would adversely affect Purchaser’s proposed use of the Property as contemplated herein and, to the actual knowledge of Seller, (ii) to Seller’s actual knowledge, there is no litigation or governmental investigation threatened against Seller or the Property before any federal, state or local court, board or other governmental or administrative agency which would adversely affect Purchaser’s proposed use of the Property, and (iii) there are no outstanding judgments, consents, decrees or injunctions involving environmental or any other matters which would adversely affect Purchaser’s proposed development of the Property to which Seller is a party or by which it is bound.

(h)     There is no agreement to which Seller is a party or, to Seller's actual  knowledge, binding on Seller which is in conflict with this Agreement or which challenges or impairs Seller's ability to execute or perform its obligations under this Agreement.

(i)As of Closing, all contractors, subcontractors, suppliers, architects, engineers, and others hired by or on behalf of Seller and who have performed services or labor or have supplied materials in connection with Seller's repair, development, ownership, or management of the Property have been paid in full and all liens arising therefrom (or claims which with the passage of time or the giving of notice, or both, could mature into liens) have been satisfied and released.

    (j)    Seller has no actual knowledge that the Seller Deliveries pursuant to Paragraph 16 do not constitute true, correct and complete copies of all of the material documents and information in Seller's possession or control relating to the Property, its development, and its condition, as of the date of delivery.

    (k)    Neither Seller nor any of its affiliates (i) has been determined by competent authority to be subject to the prohibitions contained in Presidential Executive Order No. 13224 (September 23, 2001) or in any enabling or implementing legislation or other Presidential Executive Orders in respect thereof, (ii) is a person or entity who has been previously indicted for or convicted of any felony involving a crime or crimes of moral turpitude or for any violation of the Patriot Act, or (iii) is currently under investigation by any governmental authority for alleged criminal activity. Seller has no reason to believe that this transaction, including, without limitation, the source of its funds, would result in a violation by Purchaser or Seller of the Patriot Act, OFAC Laws and Regulations, or any other anti-terrorism or anti-money laundering laws or regulations, including, without limitation, the Bank Secrecy Act, as amended, or the Money Laundering Control Act of 1986, as amended.

    (l) The Leases are the only leases, licenses, occupancy agreements, and/or other possessory agreements that affect the Property.  The only documents that comprise the Leases are listed in Schedule 
			
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1, and (ii) Seller has delivered to Purchaser a true, correct and complete copy of the Leases.  Seller has neither delivered, nor received a written notice that a default, breach, or inaccurate or incomplete reconciliation of operating expense or tax reimbursements exists under the Leases that remains uncured.  The tenants under the Leases (a) have not prepaid any sums more than one month in advance, (b) are not delinquent in paying rent or operating expense payments, or (c) have not exercised self-help or offset costs, expenses, or losses it has incurred against any payments due under the Leases.  No leasing commissions or unpaid tenant improvement allowances are now or hereafter due or payable with respect to the Leases for any current term or any exercised or exercisable options.  Seller has not entered into (or permitted or suffered the entry into) any leasing commission agreements with respect to the Property (x) under which any commission or fee has been earned but not fully paid or (y) that will be binding on Purchaser or the Property after the Closing.

Anything contained herein to the contrary notwithstanding:

I.For purposes of Paragraph 5, the terms “knowledge of” or “actual knowledge” of Seller shall mean the actual knowledge of Jamal Alwattar, managing member of Seller; 

II.Subject to the express covenants, obligations and warranties of Seller hereunder, (i) Purchaser shall make and rely solely upon  its own investigations regarding the condition and suitability of the Property and upon Closing shall be deemed to have accepted the Property in “AS IS, WHERE IS” condition, (ii) SELLER MAKES NO WARRANTIES, EXPRESSED OR IMPLIED, INCLUDING, BUT NOT LIMITED TO, IMPLIED WARRANTIES OF MERCHANTABILITY, HABITABILITY AND/OR FITNESS FOR A PARTICULAR PURPOSE, IN CONNECTION WITH THE INCLUDED ASSETS OR THE USE THEREOF. WITHOUT LIMITING THE FOREGOING, SELLER HEREBY EXPRESSLY DISCLAIMS ANY WARRANTIES OR REPRESENTATIONS WITH RESPECT TO THE PROFITABILITY OF THE BUSINESS, THE TRANSFERABILITY OF ANY LICENSE, PERMIT OR APPROVAL RELATING TO THE INCLUDED ASSETS OR THE BUSINESS OR BUYER’S ABILITY TO OBTAIN OR MAINTAIN ANY LICENSES, PERMITS OR APPROVALS WHICH MAY BE REQUIRED IN CONNECTION WITH THE INCLUDED ASSETS OR THE BUSINESS; and

III.If, prior to the Closing Purchaser acquires actual, provable knowledge that any of Seller's representations and warranties is not correct in all material respects (such inaccuracy being hereinafter called a "Known Inaccuracy" and the date as of which Purchaser acquires actual knowledge of same being hereinafter called the "Inaccuracy Date"), Purchaser shall give  written notice of such Known Inaccuracy to Seller within ten (10) days of such Inaccuracy Date and Seller shall have a period of up to 30 days to correct and mitigate such Known Inaccuracy such that Purchaser will not sustain any material damage or prejudice thereby (and if the such 30-day period extends beyond the date scheduled for Closing, the date of Closing shall be extended for a corresponding number of days). In the event Seller fully corrects such Known Inaccuracy within such 30-day period, the parties shall proceed to Closing and Purchaser shall have no further recourse therefor. If Seller does not fully correct such Known Inaccuracy within such 30-day period, Purchaser shall have the right to terminate this Agreement by giving written notice to Seller, in which event the Earnest Money shall be refunded to Purchaser.

6.    Purchaser’s Representations and Warranties. Purchaser represents and warrants to Seller as follows, which representations and warranties shall be deemed made by Purchaser to Seller as of the 
			
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Closing Date, shall survive the Closing and but for such representations and warranties Seller would not execute this Agreement:

(a)    Purchaser has the present full authority and power to execute this Agreement and to close the purchase of the Property.

7.    Suitability.  Purchaser shall have one hundred twenty (120) days from the Final Execution Date (the “Study Period”) to satisfy itself in its sole discretion of the acceptability of the Property including, without limitation:

(a)    Purchaser’s satisfaction with the physical, environmental and overall condition of the Property for the ownership, use, development and operation of the Property contemplated by Purchaser.

(b)    Purchaser may, at its sole risk, cost and expense, conduct or cause to be conducted  environmental, soil and engineering tests and studies of the Property  (provided, however that Purchaser shall not cause to be performed any core drilling or invasive testing, including without limitation, any so-called Phase II environmental studies, without the prior written consent of Seller, which consent shall not be unreasonably withheld), and, in this connection, Purchaser or its designated agents may, upon reasonable prior notice, enter upon the Property for purposes of inspection, soil analysis, core drilling or other tests that may be deemed necessary to Purchaser or its consultant or engineer. Purchaser shall restore or repair any damage caused, related to or arising out of Purchaser’s conducting of such tests.  Purchaser shall indemnify, hold harmless and, at Seller’s option, defend Seller against any and all claims, actions, causes of action, expenses, costs, penalties and liability arising out of Purchaser’s work or that of its employees, agents or contractors on the Property, which indemnity shall also include the payment of reasonable attorneys’ fees and other costs. Without limiting the foregoing, it shall be a condition to entry upon the Premises by Purchaser, its employees, agents or contractors that Purchaser shall have furnished Seller with a certificate of general liability insurance in an amount of not less than $1,000,000.00, single limit, which insurance shall insure against claims and demands for damage to property or injury to persons or loss of life arising out of or related to such entry upon the Premises, shall  name Seller as an additional insured thereunder and shall otherwise be in commercially reasonable form.

(c)    Purchaser shall determine whether the improvements and the use contemplated by Purchaser for the Property are prohibited by any governmental or quasi-governmental authority (local, state or federal), including, but not limited to, zoning, subdivision and special use authorities.

(d)    Purchaser shall verify that all utilities necessary for the development and operation of Purchaser’s business are currently available to the Property and the capacities and cost thereof are satisfactory.  

(e)    Purchaser’s review of all Leases or other agreements affecting the Property.

(f)    Purchaser shall determine whether the general real estate taxes and special assessments applicable to the Property are reasonable and satisfactory.

    Upon written notice by Purchaser given to Seller not later than the expiration of the then-existing (120-day) Study Period, the Study Period will be deemed automatically extended for one additional period of thirty (30) days; provided that, Purchaser shall simultaneously deliver $10,000.00 (“Additional Earnest Money”) for such 30-day extension to the Title Company, which Additional Earnest Money shall be non-refundable to Purchaser and paid to Seller (except in the event of a Seller default or the failure of a condition to Closing) but shall, in all instances, be applicable to the Purchase Price.  If the sale 
			
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is consummated in accordance with the terms hereof all Earnest Money, including any Additional Earnest Money, shall be applied to the Purchase Price to be paid by Purchaser at the Closing. 

If Purchaser in its sole judgment determines that it is not feasible to acquire or develop the Property for reasons gathered in its investigations, Purchaser may, by giving written notice in accordance with Paragraph 8 hereof to Seller, terminate this Agreement (hereinafter “Termination Notice”).  In such event the Earnest Money shall be returned to Purchaser.  Said Termination Notice must be received on or the expiration of the Study Period (as may be extended hereunder) or Purchaser shall be conclusively presumed to have irrevocably waived the right to terminate under this Paragraph 8. 

8.    Closing.    

    (a)    The closing hereunder (herein referred to as the “Closing “) shall take place at the office of the Title Company on the business day which is within ten (10) business days after the end of the Study Period, or on such other date as shall be mutually agreed upon (the “Closing Date”) unless this Agreement shall have been terminated by Purchaser in accordance with this Agreement.

    On or before the Closing Date, Seller shall deposit with the Title Company, in commercially reasonable form: (i) a special warranty deed for the Real Estate to Purchaser, subject only to the Leases and the other Permitted Exceptions and the lien of non-delinquent real estate taxes; (ii) bill of sale conveying all Personalty which is included with the sale of the Property, except those items, if any, specifically excluded on Exhibit C attached hereto; (iii) closing statement; (iv) assignment to Purchaser of Seller’s right, title and interest under the Leases (which assignment shall provide that Seller shall be responsible for all obligations of landlord which accrue under the Leases up to and including the Closing Date and Purchaser shall be responsible for all obligations of landlord which accrue under the Leases after the Closing Date); (v) assignment of the Intangibles; and (vi) written releases of any lien, security interest, mortgage, deed of trust, mechanic’s lien or other encumbrance affecting the Property not assumed by Purchaser; (vii) limited liability company certificates of good standing and a certified copy of resolutions of the board of directors, members, managers or partners of Seller approving this sale and authorizing signatories of Seller hereto to execute this Agreement and execute and deliver any and all closing documents; (viii) notification to the tenants under the Leases that the Property has been sold to Purchaser in form reasonably acceptable to Purchaser; and (ix) customary lien, owner’s and FIRPTA non-foreign affidavits reasonably acceptable to Purchaser and the Title Company. Seller and Purchaser shall jointly deposit such other documents as may be reasonably required to complete the purchase and sale of the Property on or before the Closing Date.  Seller shall also use commercially reasonable efforts to obtain and deliver at Closing (x) estoppel certificates (“Estoppel Certificates”) from each of the tenants under the Leases, which certificates shall certify as to each such Leases: (i) that such Leases are in full force and effect; (ii) the amount of rent and security deposit thereunder and the date to which rent has been paid; (iii) the term of such Leases, including any applicable renewals; (iv) that such Leases are in full force and effect and that no defaults, offsets or claims exist thereunder; and (v) such other matters as may be reasonably requested by Purchaser; and (y) subordination, non-disturbance and attornment agreements (“SNDAs”) reasonably acceptable to Purchaser.  

At the Closing:

(1)    at Seller’s expense, Seller shall deliver or cause to be delivered to Purchaser an ALTA 2006 owner’s title insurance policy or equivalent issued by the Title Company in the amount of the Purchase Price insuring that Purchaser owns fee simple title to the Property, subject 
			
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only to the standard printed exceptions (other than general exceptions which shall be waived by the Title Company by extended coverage endorsement) and the Permitted Exceptions.  

(2)    Purchaser shall pay the Purchase Price to Seller, adjusted as provided herein, , by wire transfer in immediately available funds to a bank account of Seller’s choice.  The escrow agent, upon receipt of the funds required from Purchaser, shall record Seller’s deed (affixing necessary real estate transfer tax stamps after recording, the cost thereof to be paid by Seller) and any other documents deposited by the parties into the escrow to be recorded, later date the Title Commitment and do such other acts as shall be necessary to carry out the provisions of this Agreement.  

    (b)     All costs and expenses of Closing the purchase and sale of the Property shall be borne and paid at Closing unless otherwise stated herein, as follows:

By Seller:        Title Insurance Premiums (relating to Purchase Price) with extended coverage over general exceptions
            Seller’s Attorneys’ Fees
            Escrow/Closing Fees (50%)
            Recording Fees for releases, if any.
State, County and Local Transfer Taxes
            Survey Costs

By Purchaser:        Purchaser’s Attorneys’ Fees
            Escrow/Closing Fees (50%)
                                    Recording Fees for Deed
Title Insurance Premiums (relating solely to endorsements requested by Purchaser, and any additional coverage above the Purchase Price)

    (c)    The parties agree that the escrow agent at the Title Company shall receive the following instructions.  The Title Company shall accept the Earnest Money.  Said Earnest Money deposit shall be held in escrow by the Title Company and shall be released and delivered to Seller in cash, by cashier’s check or wired funds in accordance with the provisions of this Agreement on the Closing Date.  Title Company assumes no liability under this Agreement other than that of a stakeholder.  If there is any dispute as to whether Title Company is obligated to deliver the funds or as to whom that sum is to be delivered, Title Company shall not be obligated to make any delivery of the sum, but in such event may hold the sum until receipt by Title Company of an authorization in writing signed by all parties to such dispute, directing the disposition of the sum, or in the absence of such authorization, Title Company may hold the sum until the final determination of the rights of the parties in an appropriate proceeding.  No provision of this Agreement shall be construed to relieve Title Company of any obligations or liabilities which may now exist or hereafter accrue by virtue of any writing other than this Paragraph 9.

    (d)    Each party warrants to the other that neither of them nor their agents or representatives have engaged or contracted any broker with respect to the transaction contemplated herein, and each party agrees to indemnify and hold the other party harmless from any and all claims for brokerage fees arising out of its actions.

    (e)    Notwithstanding anything to the contrary contained in this Agreement ,each of Seller and Purchaser acknowledges and agrees that Purchaser’s receipt of the Estoppel Certificates and SNDAs is an express condition to Closing.  In the event Purchaser does not receive such Estoppel Certificates and 
			
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SNDAs in form and substance satisfactory to Purchaser, Purchaser shall have the right, in its sole discretion, to terminate this Agreement at any time prior to Closing, and, upon such termination, Purchaser shall receive the Earnest Money.   

9.Real Estate Taxes, Rent, Insurance, Possession; Risk of Loss, Condemnation and New Encumbrances.  

A.Prior to or at Closing, Seller shall pay all general real estate taxes and installments of any and all special assessments which are due and payable as of the Closing Date.  Taxes on the Property which accrue in the current year and installments of any and all special assessments due and payable in the current year shall be prorated on the basis of 105% of the most recently ascertainable full year’s taxes to the Closing Date, or the revised Closing Date if the Closing is extended as herein provided, so that Seller bears that portion of the accrued taxes and those installments of any and all special assessments which accrue for the period up to and including the Closing Date and Purchaser bears that portion of the accrued taxes and those installments of any and all special assessments which accrue for all periods subsequent to the Closing Date.  The parties agree that such proration shall be re-prorated between the parties, upon issuance of actual tax bills for the year in which the Closing occurs, with any adjustment between the parties to be made in cash within 15 business days of demand therefor.  Prior to or at Closing, Seller shall also pay all personal property taxes, if any, and special taxing district taxes, if any which are due and payable as of the Closing Date. Subdivision assessments, common area charges, fees and charges for utilities shall be prorated to the Closing Date.  

B.Rents and other charges paid under the Leases shall be prorated as of midnight of the day before Closing; provided that any rents or other charges which are payable under the Leases but not yet received as of the Closing Date (collectively, “Tenant Receivables”) shall be apportioned on the basis of the period for which same is payable and if as and when collected as follows: (1) first, Tenant Receivables due for the month in which the Closing shall be prorated as of the Closing Date; (2) second, to Tenant Receivables due Purchaser for periods following the month in which the Closing occurred; (3) third, to Tenant Receivables due Seller for the month prior to Closing, 
and (4) thereafter, to delinquent Tenant Receivables which were due and payable to Seller as of Closing but not collected by Seller as of Closing. Any rent or other income received by Purchaser after the Closing which is owed to Seller, or any rent or other income received by Seller after the Closing which is owed by Seller to Purchaser shall be remitted to the party entitled thereto within ten (10) business days of receipt thereof.

C.All Security Deposits (to the extent they exist) not applied by Seller shall be transferred or credited to Purchaser at Closing, together with any interest accrued thereon; provided, however, Purchaser acknowledges and agrees that Seller shall be entitled to retain the $75,000 Security Deposit in connection with the Nanosphere Lease.   As of the Closing, Purchaser shall assume Seller's obligations related to the Security Deposits (except for the Nanosphere Lease Security Deposit) to the extent they are credited or transferred to Purchaser.

D.All such expenses shall be prorated and adjusted on the basis of a 365 day year with the Closing Date charged to the Seller, provided however, with respect to those fees and charges which may be read or computed by the party rendering services so that such fee or charge may be billed directly to the Seller with respect to charges incurred up to and including the Closing Date and to Purchaser with respect to any charges incurred after the Closing Date, then either party hereto may cause such fee or charge to be read and billed directly to the appropriate party and such 
			
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charge shall not be subject to proration under this Agreement. Seller shall deliver possession of the Property to Purchaser at Closing (including all keys therefor) free and clear of tenants and other occupants,  subject to the rights of the tenants under the Leases, and otherwise in the same condition as on the Final Execution Date, ordinary wear and tear excepted.

E.Seller shall bear the risk of loss until Closing.  Insurance, if any, shall be canceled as of the Closing Date.  Purchaser has the right to walk through the Property prior to Closing to verify that the physical condition of the Property, fixtures and any personal property included in the sale complies with this Agreement.  

F.In the event of any condemnation of the Property or any part thereof prior to Closing which, in the opinion of Purchaser, would have an adverse impact upon Purchaser’s intended use of the Property, Purchaser may elect to terminate this Agreement upon written notice to Seller, and upon Seller’s receipt of such notice, Purchaser shall have no further duties or obligations hereunder (except for any liabilities accruing prior to such termination) and the Earnest Money shall be refunded to Purchaser.

G.During the term of this Agreement, Seller shall not, without in each instance first obtaining Purchaser’s written consent, which may not be unreasonably withheld, consent to or permit (i) any modification to existing easements, covenants, conditions, restrictions or rights-of-way affecting the Property; (ii) any new easements, covenants, conditions, restrictions or rights-of-way affecting the Property; (iii) any zoning changes or other changes of governmental approvals; (iv) any modifications to or amendments of the Leases; or (v) enter into any new leases. 

10.    Remedies.

(a)    In the event Purchaser fails to comply with any or all of the obligations, covenants, warranties or agreements to be performed, honored or observed by Purchaser under and pursuant to the terms and provisions of this Agreement and such default is not cured within ten (10) days after Purchaser’s receipt of written notice thereof (other than Purchaser’s failure to tender the Purchase Price on the date of Closing, a default for which no notice is required), then Seller may terminate this Agreement and retain the Earnest Money as liquidated damages and both parties shall be released from any further liability hereunder except for the indemnification provisions of Paragraph 7 herein.  The remedies set forth in this subparagraph (a) shall be the sole and exclusive remedies of Seller in the event Purchaser shall be in default hereunder.

(b)    In the event Seller fails to comply with any or all of the obligations, covenants, warranties or agreements to be performed, honored or observed by Seller under and pursuant to the terms and provisions of this Agreement, and such default is not cured within ten (10) days after Seller’s receipt of written notice thereof, then Purchaser may:  (i) terminate this Agreement, in which event the Earnest Money shall be refunded to Purchaser, except for the sum of $100.00 which shall be retained by Seller as consideration for Purchaser investigating the Property, and both parties shall be released from any further liability hereunder, and (ii) bring an action for specific performance against Seller to enforce the terms of this Agreement, and (iii) be entitled to all remedies available at law or in equity, including without limitation, damages. The remedies set forth in this subparagraph (b) shall be the sole and exclusive remedies of Purchaser in the event Seller shall be in default hereunder. 

			
	10 | Page

	

(c)    The failure of either party to act upon a default of the other in any of the terms, conditions or obligations under this Agreement shall not be deemed a waiver of any subsequent breach or default under the terms, conditions or obligations hereof by such defaulting party.

11.    Notices.    All notices or communications herein required or which either party desires to give to the other shall be in writing, shall be deemed given when received and shall be personally delivered or sent by or by overnight delivery service, to the respective addresses as provided above or to such other addresses as the parties may from time to designate by written notice to the other party.

12.    Assignment.

    (a)    Purchaser shall not consent to or permit any Prohibited Transfer (as defined in subparagraph (b) below) of its rights under this Agreement without obtaining, in each and every instance, the prior written consent of Seller which consent shall not be unreasonably withheld, conditioned or delayed.

    (b)    For purposes of this Paragraph 13, any conveyance, sale, assignment, transfer, lien, pledge, mortgage, security interest or other encumbrance or alienation (or agreement to do any of the foregoing) of any of Purchaser’s rights in, to or pursuant to this Agreement, which occurs or is granted, accomplished, attempted, or effectuated without the prior written consent of Seller shall constitute a “Prohibited Transfer”.

    Notwithstanding the foregoing, Purchaser shall be permitted to assign its rights in this Agreement without Seller’s consent to any subsidiary, successor or affiliated company of Purchaser or to Purchaser’s parent company or to Purchaser’s designated holding company and the same shall not be considered a Prohibited Transfer.

13.    Miscellaneous Provisions.

    (a)    The representations, warranties, covenants and agreements of the parties, as well as any rights and benefits of the parties, pertaining to a period of time following the Closing, shall survive the Closing  and shall not be merged therein.

(b)    This Agreement shall be construed under and in accordance with the laws of the state wherein the Property is located and according to its fair meaning, and not in favor of or against any party.

    (c)    This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective legal representatives, successors and permitted assigns.

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

    (e)    This Agreement constitutes the sole and only agreement of the parties hereto and supersedes any prior understandings or written or oral agreements between the parties respecting the within subject matter.  This Agreement cannot be amended or modified except by written agreement signed by Purchaser and Seller and no email communications between Purchaser and Seller shall be deemed to amend this Agreement. 

			
	11 | Page

	

    (f)    All parties hereto pledge their good faith efforts to act in a timely and reasonable manner to consummate the transaction herein contemplated.

    (g)    Words of any gender used in this Agreement shall be held and construed to include any other gender, and words in the singular number shall be held to include the plural, and vice versa, unless the context requires otherwise.

    (h)    The paragraph headings herein are for reference purposes only and are not intended in any way to describe, interpret, define or limit the scope, extent or intent of this Agreement or any part hereof.  The failure by either party to enforce against the other any term or provision of this Agreement shall not be deemed a waiver of such party’s right to enforce against the other party the same or any other such term or provision.

    (i)    If either party files any action or brings any proceeding against the other arising out of this Agreement or is made a party to any action or proceeding brought by a third party arising out of this Agreement, then as between Purchaser and Seller, the prevailing party shall be entitled to recover, as an element of its costs of suit and not as damages, reasonable attorneys’ fees to be fixed by the court.  The “prevailing party” shall be the party who is entitled to recover its costs of suit, whether or not the suit proceeds to final judgment.  A party not entitled to recover its costs shall not recover attorneys’ fees.

    (j)    Except for the payment of monies, if either party hereto shall be delayed or hindered in or prevented from the performance of any act required hereunder by reason of strikes, lockouts, labor troubles, fines, acts of God, natural disasters, inability to procure material, failure of power, pandemic, restrictive governmental laws or regulation, riots, insurrection, war, or any other cause beyond the reasonable control of the party delayed in performing work or doing acts required under this Agreement, the period for the performance of any such act shall be extended for a period equivalent to the period of such delay.

    (k)    If the time for performance of any obligation under this Agreement expires on a Saturday, Sunday or a legal holiday, then the time for such performance shall be extended to the next succeeding day that is not a Saturday, Sunday or a legal holiday.

    (l)    This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original, and all of which, taken together, shall be deemed to constitute one agreement. 

    (m)    Time is of the essence with respect to each provision of this Agreement. 

    (n)    SELLER AND PURCHASER MUTUALLY AGREE THAT THEY WAIVE ALL RIGHTS TO A TRIAL BY JURY IN THE EVENT OF ANY DISPUTE OR COURT ACTION ARISING FROM, GROWING OUT OF, OR RELATED TO THIS AGREEMENT. THE PARTIES ACKNOWLEDGE THAT THIS WAIVER IS A SIGNIFICANT CONSIDERATION TO, AND A MATERIAL INDUCEMENT FOR, PURCHASER TO ENTER INTO THIS AGREEMENT.

    (o)    The parties agree that the venue of any litigation shall be in the Circuit Court of Cook County, Illinois or in the Federal courts situated in Cook County, Illinois.

14.    Purchaser’s Indemnification. In the event that this Agreement is terminated by either Purchaser or Seller prior to Closing, and notwithstanding the fact that such termination shall release Purchaser from its obligation to buy the Property, nothing herein shall be deemed to release Purchaser from any liability arising out of or connected with Purchaser’s activities  (or those of its employees, agents, or contractors) 
			
	12 | Page

	

on the Property, including, but not limited to, its actions on the Property while exercising its rights pursuant to Paragraph 8 hereof. This provision shall survive Closing of the transaction herein contemplated and the delivery of the Deed.

15.    Seller’s Deliveries.  Within five (5) business days after the Final Execution Date, Seller shall cause to be delivered to Purchaser the following to the extent same are in Seller’s possession and control (or shall certify to Purchaser that it is not in possession of such document(s)):  

(a)    Most recent real estate property tax and/or assessment notice;
(b)    Copy of all existing Leases, if any, affecting the Property; 
(c)    Copies of all warranties that may exist with respect to the Property including any warranties on equipment servicing the Property and warranties on any personal property used in connection with the Property and which is being conveyed to Purchaser;
(d)    Copy of the latest appraisal of the Property;
(e)    Any property surveys;
(f)    Copies of any prior title abstracts, title policies, title commitments or title work;
(g)    Copies of any prior environmental studies (Phase I or II), reports or inspections or correspondence including but not limited to asbestos, PCB or other toxic or hazardous substance, underground or above ground storage tanks and/or radon gas ; 
(h)    Construction plans, drawings or renderings of the Property;
(i)    As-built construction plans to the Property including architectural, electrical, mechanical, and structural systems, landscaping, engineering reports and certificates of occupancy;
(j)    Copies of all contracts relating to the operation, maintenance and management of the Property; 
(k)    Copies of all insurance policies or certificates pertaining to the Property and copies of any claims which have been made in the past 2 years; and 
(l)    all other written information and documentation reasonably requested by Purchaser concerning the ownership, operation, leasing, use or maintenance of the Property.

16.    1031 Exchange.  Seller shall have the option to have the Property treated as part of a tax deferred exchange pursuant to Section 1031 of the Internal Revenue Code.  Purchaser agrees to cooperate in the exchange provided: (i) that any additional cost incurred by Purchaser by reason of the involvement of the Property in such a tax deferred exchange, including reasonable attorneys’ fees incurred by Purchaser shall be paid by Seller, (ii) that Purchaser shall not be required to incur or assume any liability as a result of the involvement of the Property in such a tax deferred exchange; (iii) that Seller hereby indemnifies, defends and holds Purchaser harmless from any liability, loss, cost, damage or expense, including but not limited to reasonable attorneys’ fees and court costs incurred or claimed as a result of including the Property in such tax deferred exchange; (iv) Purchaser shall in no way be liable in any manner for any tax consequence that may be attributable to the Seller; (v) the Closing Date will not be delayed to accommodate such tax deferred exchange; and (vi) subject to the above, Purchaser agrees to execute any documents reasonably approved by Purchaser and which may be reasonably requested by the Seller to effectuate the Section 1031 exchange.

[SIGNATURE PAGE TO FOLLOW]
IN WITNESS THEREOF, the parties have executed this Agreement as of the day and year first above written.
			
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SELLER:                Northbrook Commercial Properties, LLC,
                    an Illinois limited liability company

Date of Seller’s Execution        By:        /s/ Jamal Alwattar
December 4, 2020
                    Print Name:    Jamal Alwattar
        
                    Its:        Principal

PURCHASER:                Luminex Corporation,  
                    a Delaware corporation

Date of Purchaser’s Execution        By:        /s/ Harriss T. Currie
December 4, 2020
                    Print Name:     Harriss T. Currie    
    
                    Its:        Sr. Vice President of Finance & CFO

Exhibits:
A—Legal Description of Real Estate
B---The Leases
C---Excluded Personalty
Schedule 1---Leases
			
	14 | PageDocument

Exhibit 10.54

LEASE AGREEMENT

BETWEEN

SUNDANCE CONSOLIDATED, L.L.C.

as LANDLORD,

and 

LUMINEX CORPORATION

as Tenant,

12306 Technology Blvd.,
Austin, Texas  78727

TABLE OF CONTENTS

						
	1.    PREMISES, TERM AND INITIAL IMPROVEMENTS
	1

	2.    BASE RENT, ADDITIONAL RENT AND SECURITY DEPOSIT
	1

	3.    TAXES
	3

	4.    LANDLORD'S MAINTENANCE
	3

	5.    TENANT'S MAINTENANCE AND REPAIR OBLIGATIONS
	3

	6.    ALTERATIONS
	4

	7.    SIGNS
	5

	8.    UTILITIES
	5

	9.    INSURANCE
	5

	10.    CASUALTY DAMAGE
	6

	11.    LIABILITY, INDEMNIFICATION, WAIVER OF SUBROGATION AND NEGLIGENCE
	6

	12.    USE
	7

	13.    INSPECTION
	7

	14.    ASSIGNMENT AND SUBLETTING
	8

	15.    CONDEMNATION
	9

	16.    SURRENDER OF PREMISES, HOLDING OVER
	9

	17.    QUIET ENJOYMENT
	10

	18.    EVENT OF DEFAULT
	10

	19.    REMEDIES
	11

	20.    LANDLORD'S DEFAULT
	12

	21.    MORTGAGES
	13

	22.    ENCUMBRANCES
	13

	23.    MISCELLANEOUS
	14

	24.    NOTICES
	17

	25.    HAZARDOUS WASTE
	17

The mailing, delivery or negotiation of this Lease shall not be deemed an offer to enter into any transaction or to enter into any relationship, whether on the terms contained herein or on any other terms.  This Lease shall not be binding, nor shall either party have any obligations or liabilities or any rights with respect thereto, or with respect to the premises, unless and until both parties have executed and delivered this Lease.  Until such execution and delivery of this Lease, either party may terminate all negotiation and discussion of the subject matter hereof, without cause and for any reason, without recourse or liability.
LIST OF DEFINED TERMS

Defined Term    Page

affiliate    14
Alterations    4
Arbitration Notice    1
Base Rent    1
Base Rent Abatement Period    2
Binding Notice    1
Brokers    15
Building    1
Building Structure    3
Claimant    12
Commencement Date    1
Construction Allowance    1
Environmental Law    17
Estimates    2
Event of Default    10
Fair Market Rental    1
Hazardous Substances    17
HVAC System    4
including    14
Initial Improvements    1
Initial Renewal Notice    1
Land    1
Landlord    1
Landlord's Mortgagee    13
Law    14
Laws    14
Lease    1
Loss    7
Mortgage    13
MSDS    18
Operating Expenses    2
Permitted Activities    17
Permitted Alterations    4
Permitted Materials    17
Permitted Transfer    8
Premises    1
Primary Lease    13
Proportionate Share    1
Record Drawings    2
Rejection Notice    1
Renewal Amendment    1
Renewal Term    1
rent    3
Repair Period    6
Review Period    2
Rooftop Equipment    16
SNDA    13
Taking    9
Taxes    3
Tenant    1

Tenant Affiliate    8
Tenant Party    14
Term    1
Transfer    8
Vacation Date    8

LEASE AGREEMENT

This Lease Agreement (this "Lease") is entered into by SUNDANCE CONSOLIDATED, L.L.C., a Texas limited liability company ("Landlord") and LUMINEX CORPORATION, a Delaware corporation ("Tenant"). 

1.PREMISES, TERM AND INITIAL IMPROVEMENTS

(a)    Landlord leases to Tenant and Tenant leases from Landlord, the approximately 50,332 square foot building (the "Building") located on, and together with, the real property described on Exhibit A (the "Land") and any other improvements located on the Land (collectively, the "Premises"), subject to the terms and conditions in this Lease.  Landlord and Tenant stipulate that, as of the date of this Lease, the size of the Building is 50,332 square feet and Tenant's "Proportionate Share" is 100%.  Tenant will be sole tenant of the Building on the Commencement Date.  

(b)    The Lease term shall be one hundred twenty three (123) months, beginning on the earlier to occur of: (i) thirty (30) days after issuance of the certificate of occupancy for the Initial Improvements (as defined in Exhibit B), or (ii) May 1, 2020 (such earlier date being the "Commencement Date") and ending one hundred twenty three (123) months after the Commencement Date (or, if the Commencement Date is not the first day of a calendar month, ending one hundred twenty three (123) months after the first day of the first full calendar month after the Commencement Date) (the "Term") which defined term shall include all renewals and extensions of the Term, if any.  Upon the Commencement Date, Landlord and Tenant shall execute a Notice of Commencement in the form attached hereto as Exhibit C acknowledging the Commencement Date and the date the Lease will expire.

(c)    Landlord will deliver possession of the Premises to Tenant on December 16, 2020 for purposes of commencement of Tenant’s construction of the Initial Tenant Improvements (the date of such delivery being the “Delivery Date”).  Within thirty (30) days after the Delivery Date, Landlord will cause the following work to be completed in the Premises (the “Delivery Obligations”): (i) performance, at Landlord’s expense, of the roof repairs described in the work proposal attached hereto as Exhibit B-1, (ii) performance of any work necessary to deliver the dock doors in good working order so long as the cost of such work does not exceed $5,000; provided, however, if the cost of such dock door work exceeds $5,000, Tenant shall be responsible for such excess costs, and (iii) performance of any work necessary to deliver the HVAC unit serving the office portion of the Building (“Office HVAC”) in good working order.  The dock doors and Office HVAC will be deemed to have been delivered in good working order unless Tenant notifies Landlord in writing within thirty (30) days after the Delivery Date of any material deficiencies in the dock doors or Office HVAC, which deficiencies shall be promptly remedied by Landlord at its expense (subject to Tenant’s obligation to pay for any dock door work in excess of $5,000).  Other than the Delivery Obligations, Landlord has no obligation to construct any improvements or perform any repairs to prepare the Premises for Tenant’s occupancy.

2.BASE RENT, ADDITIONAL RENT AND SECURITY DEPOSIT

(a)    Tenant shall pay to Landlord "Base Rent" in advance, without demand, deduction or set off (except as expressly stated otherwise in Section 20 of this Lease) equal to the following amounts for the following periods of time:

									
	

Period
	Monthly Base Rent
Per Square Foot of Building
	

Monthly Base Rent

	Commencement Date – Month 3*	$0.00	$0.00
	Months 4 – 15	$0.70	$35,232.40
	Months 16 – 27	$0.72	$36,113.21
	Months 28 – 39	$0.74	$37,016.04
	Months 40 – 51	$0.75	$37,941.44
	Months 52 – 63	$0.77	$38,889.98
	Months 64 – 75	$0.79	$39,862.23
	Months 76 – 87	$0.81	$40,858.78
	Months 88 – 99	$0.83	$41,880.25
	Months 100 – 111	$0.85	$42,927.26
	Months 112 – 123	$0.87	$44,000.44

*Tenant’s obligation to pay Base Rent for the Premises shall be abated for the initial three (3) months of the Term of the Lease (the “Base Rent Abatement Period ”).  However, only Base Rent shall be abated during the Base Rent Abatement Period, and Tenant shall remain responsible for Tenant’s Proportionate Share of Operating Expenses and all other sums due under the Lease during the Base Rent Abatement Period.  

The first monthly installment (after the expiration of any periods for which no Base Rent is due), plus the other monthly charges set forth in Section 2(b), shall be due on the date hereof; thereafter, monthly installments of Base Rent shall be due on the first day of each calendar month following the Commencement Date.  If the Term begins on a day other than the first day of a month or ends on a day other than the last day of a month, the Base Rent and additional rent for such partial month shall be prorated.

(b)    Tenant shall pay, as additional rent (including for any period during which no Base Rent is due under Section 2(a) above), its Proportionate Share of the following items:  (1) Taxes (defined below) and the cost of any tax consultant employed to assist Landlord in determining the fair tax valuation of the Building and Land; and (2) the cost of any insurance maintained by Landlord, and (3) a management fee not to exceed 3% of gross rents from the Premises (collectively, "Operating Expenses").  On the same day that Base Rent is due, Tenant shall pay to Landlord an amount equal to 1/12 of Landlord's estimate of Tenant's Proportionate Share of annual Operating Expenses. The initial monthly payments are based upon Landlord's estimate of the Operating Expenses for the year in question, and shall be increased or decreased annually to reflect the projected actual Operating Expenses for that year. Within 90 days after each calendar year or as soon thereafter as is reasonably practicable, Landlord shall deliver to Tenant a statement setting forth the actual Operating Expenses for such year.  Within ninety (90) days after Tenant’s receipt of such annual statement (“Review Period”), Tenant may elect to inspect, at reasonable times, in a reasonable manner and with at least thirty (30) days prior written notice to Landlord, such of Landlord’s books of account and records as pertain to and contain information concerning such costs and expenses in order to verify the amounts thereof; and if Tenant does not so elect to review Landlord’s books during such ninety (90) day period, Tenant will be deemed to have approved Landlord’s calculation of Operating Expenses as for the calendar year covered by the statement.  If Tenant's total payments in respect of Operating Expenses for any year are less than Tenant's Proportionate Share of Operating Expenses for that year, Tenant shall pay the difference to Landlord within ten days after Landlord's request therefor; if such payments are more than Tenant's Proportionate Share of Operating Expenses, Landlord shall retain such excess and credit it against Tenant's future monthly payments, except that any credit remaining at the expiration or earlier termination of this Lease shall be paid to Tenant within thirty (30) days after such expiration or termination.  If Tenant determines during the Review Period that Operating Expenses for the year in question are less than reported in the annual statement by more than five percent (5%), Landlord shall reimburse Tenant’s expenses incurred as a result of Tenant’s inspection not to exceed $2,000.  The amounts of the initial monthly Base Rent and Tenant's Proportionate Share of Operating Expenses (and the part thereof attributable to Taxes) are as follows:

Base Rent (Section 2(a))    $35,232.40
Estimated Operating Expenses (Taxes and insurance only) (Section 2(b))     $8,556.44
Total initial monthly payment    $43,788.84

(c)    If any payment required of Tenant under this Lease is not paid within five (5) days after due, Landlord may charge Tenant a fee equal to 5% of the delinquent payment to reimburse Landlord for its cost and inconvenience incurred as a consequence of Tenant's delinquency. Notwithstanding the forgoing, Tenant shall be entitled to one written notice with a ten (10) day opportunity to cure a delinquent payment within any consecutive twelve month period before Tenant is obligated to pay the late charge set forth in this paragraph.

(d)    All payments and reimbursements required to be made by Tenant under this Lease shall constitute "rent" (herein so called).  

3.TAXES

(a)    Landlord shall pay all taxes, assessments and governmental charges whether federal, state, county, or municipal and whether they are imposed by taxing or management districts or authorities presently existing or hereafter created, including any assessments or charges from a property owner’s association or other encumbrances (collectively, "Taxes") that accrue against the Premises, the Land and the Building.  As used herein, Taxes include the franchise tax, also known as a margin tax, codified in Chapter 71, Texas Tax Code.  If at any time the present method of taxation shall be changed so that in lieu of the whole or any part of any Taxes levied, assessed or imposed on the Premises and leasehold improvements, there shall be levied, assessed or imposed on Landlord a substitute tax therefor directly on the rents received therefrom and/or a franchise tax, assessment, levy or charge measured by or based, in whole or in part, upon rents or income from the Premises (a “Substitute Tax”), then the Substitute Tax, or the part thereof so measured or based, shall be deemed Taxes for the purposes of this Section.

(b)    Tenant shall (1) before delinquency pay all taxes levied or assessed against any personal property, fixtures or alterations placed in the Premises and (2) upon the request of Landlord, deliver to Landlord receipts from the applicable taxing authority or other evidence acceptable to Landlord to verify that such taxes have been paid. If any such taxes are levied or assessed against Landlord or Landlord's property and (A) Landlord pays them or (B) the assessed value of Landlord's property is increased thereby and Landlord pays the increased taxes, then Tenant shall pay to Landlord such taxes within ten days after Landlord's request therefor.

(c)    TENANT HEREBY WAIVES ALL RIGHTS TO PROTEST THE APPRAISED VALUE OF THE PREMISES 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 TAX CODE.  However, Landlord, in its reasonable business judgment, will endeavor to challenge the appraised value of the Premises for ad valorem taxes so as to minimize, to the extent practicable and possible, the amount of Taxes applicable to the Premises.  
4.LANDLORD'S MAINTENANCE

This Lease is intended to be a net lease; accordingly, Landlord's maintenance obligations are limited to maintenance, repair, and replacement at Landlord’s cost of the Building's roof, the slab, structural columns and structural walls (collectively, the  "Building Structure"); however, Landlord shall not be responsible (1) for any such work until Tenant delivers to Landlord written notice of the need therefor or (2) for alterations to the Building Structure required by Law because of Tenant's use of the Premises (which alterations shall be performed by Tenant) or (3) any damage to the Building Structure caused by Tenant.  The Building Structure does not include skylights, windows, glass or plate glass, doors, special storefronts or office entries, all of which shall be maintained by Tenant.  Tenant acknowledges and agrees that Landlord has no maintenance or repair obligations with respect to the Premises, other than those expressly set forth in this Section 4.

5.TENANT'S MAINTENANCE AND REPAIR OBLIGATIONS

(a)    Tenant shall maintain all parts of the Premises [except only for maintenance work which Landlord is expressly responsible for under Section 4 above] including without limitation, truck court, exterior areas, dock and loading areas, man doors, truck doors, dock levelers, shelters, seals and bumpers (if any), lighting, plumbing, restrooms, water, sewer and electrical lines up to the meter, fire sprinklers and fire protection systems, entries, doors, ceilings, windows, interior walls, and the interior side of demising walls, electrical systems, and air rotation equipment in good condition and promptly make all necessary repairs and replacements to the Premises, normal wear and tear and damage by casualty excepted.  Tenant shall keep the Premises, including all exterior areas, in a clean and sanitary condition at all times. Tenant shall repair and pay for any damage caused by a Tenant Party (defined below) or caused by Tenant's default hereunder.

(b)    Tenant shall maintain the hot water equipment and the heating, air condition, and ventilation equipment and systems (the "HVAC System") in good repair and condition and in accordance with Law and with such equipment manufacturers' suggested operation/maintenance service program; such obligation shall include replacement of all equipment necessary to maintain such equipment and system in good working order. Within ten days after the Commencement Date, Tenant shall enter into regularly scheduled preventive maintenance/service contracts for such equipment, each in compliance with Landlord's specifications and otherwise in form and substance and with a contractor reasonably acceptable to Landlord, and deliver copies thereof to Landlord.  Tenant shall also provide Landlord with (i) a copy of all renewal or substitute maintenance/service contracts within 30 days prior to the expiration of the existing service contract, and (ii) upon Landlord's request, a copy of all maintenance or service reports with respect to such contract.  At least 14 days before the end of the Term and upon written request from Landlord within ninety (90) days before the end of the Term, Tenant shall deliver to Landlord a certificate from an engineer reasonably acceptable to Landlord certifying that the hot water equipment and the HVAC System are then in good repair and working order, normal wear and tear excepted.

6.ALTERATIONS  

The Initial Improvements to the Building shall be governed by the Work Letter attached to this Lease as Exhibit B.  Otherwise, Tenant shall not make any alterations, additions or improvements (collectively, "Alterations"), to the Premises without the prior written consent of Landlord; provided, however, Tenant may make non-structural alterations to the Building without Landlord’s prior written consent (“Permitted Alterations”) so long as (i) such Permitted Alterations do not cost more than $50,000 in any instance or series of related instances, (ii) no governmental permit or approval is required for such Permitted Alterations, and (iii) Tenant provides Landlord with prior written notice of its intended Permitted Alterations.  Landlord shall not be required to notify Tenant of whether it consents to any Alterations until it (a) has received plans and specifications therefor which are sufficiently detailed to allow construction of the work depicted thereon to be performed in a good and workmanlike manner, and (b) has had a reasonable opportunity to review them.  If the Alterations will affect the Building Structure, HVAC System, or mechanical, electrical, or plumbing systems, then the plans and specifications therefor must be prepared by a licensed engineer reasonably acceptable to Landlord.  Landlord's approval of any plans and specifications shall not be a representation that the plans or the work depicted thereon will comply with law or be adequate for any purpose, but shall merely be Landlord's consent to performance of the work.  Upon completion of any Alterations, Tenant shall deliver to Landlord accurate, reproducible as-built plans therefor.  Tenant may erect shelves, bins, machinery and trade fixtures provided that such items (1) do not alter the basic character of the Premises; (2) do not overload or damage the same; and (3) may be removed without damage to the Premises.  Unless Landlord specifies in writing otherwise, all Alterations shall be Landlord's property when installed in the Premises.  All work performed by a Tenant Party in the Premises (including that relating to the installations, repair, replacement, or removal of any item) shall be performed in accordance with Laws and with Landlord's specifications and requirements, in a good and workmanlike manner, and so as not to damage or alter the Building Structure or the Premises.  Any contractors used by Tenant must carry liability insurance reasonably acceptable to Landlord, and 

Tenant shall deliver evidence of such insurance to Landlord before any construction is commenced.  In connection with any such alteration, addition, or improvement costing in excess of $10,000.00, Tenant shall pay to Landlord an administration fee of 5% of all costs incurred for such work.  Tenant shall be responsible for compliance with American With Disabilities Act of 1990 for the interior, non-structural portions of the Premises, Landlord shall be responsible for compliance with the American With Disabilities Act of 1990 relative to the Building Structure, and all Building common areas including, but not limited to, parking areas, sidewalks, entrances, and access ways, unless such compliance is required solely in connection with Tenant's specific use of the Premises or a Tenant alteration of the Building, in which case such compliance shall be Tenant's responsibility.

7.SIGNS  

Tenant shall not place, install or attach any signage, decorations, advertising media, blinds, draperies, window treatments, bars, or security installations to the Premises or the Building without Landlord's prior written approval, which shall not be unreasonably withheld, delayed or conditioned.  Landlord hereby agrees that Tenant may install a sign on the exterior of the Building, subject to compliance with all applicable Laws, and the provisions of this Section 7.  Upon the expiration or earlier termination of this Lease, Tenant shall remove all Tenant's signage, and Tenant shall repair, paint, and/or replace any portion of the Premises or the Building damaged or altered as a result of its signage when it is removed (including, without limitation, any discoloration of the Building).  Tenant shall not (a) make any changes to the exterior of the Premises or the Building, (b) install any exterior lights, decorations, balloons, flags, pennants, banners or paintings, or (c) erect or install any signs, windows or door lettering, decals, window or storefront stickers, placards, decorations or advertising media of any type that is visible from the exterior of the Premises or the Building without Landlord's prior written consent.  Landlord shall not be required to notify Tenant of whether it consents to any sign until it (1) has received detailed, to-scale drawings thereof specifying design, material composition, color scheme, and method of installation, and (2) has had a reasonable opportunity to review them.

8.UTILITIES  

Tenant shall be solely responsible for arranging for utility service to the premises, including all electricity, water, sewer, gas (if any) and telecommunications services used at the Premises.  Tenant shall pay all utility charges directly to the utility provider, together with any taxes, penalties, surcharges, maintenance charges, and the like pertaining thereto.

9.INSURANCE  

Tenant shall maintain (a) workers' compensation insurance providing coverage for statutory benefits in the state in which the Premises is located and employer's liability coverage with minimum limits of not less than $1,000,000 for (i) each accident, (ii) each employee, and (iii) policy limit for disease (with a waiver of subrogation endorsement reasonably acceptable to Landlord); (b) commercial general liability insurance on the most current ISO Form CG 00 01 or coverage at least as broad as coverage provided under such form, to cover liability arising from occurrences on or about the Premises and acts of Tenant Parties on or about the Premises, without modification to the separation of insureds provision, with limits of not less than $1,000,000 per occurrence, $2,000,000 general aggregate; (c) business automobile liability insurance covering owned, hired and non-owned vehicle, with limits of not less than $1,000,000 combined single limit per occurrence for bodily injury and property damage liability; (d) umbrella/excess liability insurance, on an occurrence basis, that applies in excess of the required commercial general liability, business automobile liability, and employer’s liability policies with a minimum limit of $2,000,000 per occurrence and $2,000,000 in the annual aggregate; (e) property insurance – special form covering the replacement cost (without deduction for depreciation and containing ordinance or law coverage) of all Alterations and Tenant's property in the Premises (including without limitation removable trade fixtures and leasehold improvements), naming Landlord and Landlord's Mortgagee (defined below) as loss payee as their interests may appear with respect 

to Alterations and leasehold improvements; (f) business income and extra expense insurance covering failure of Tenant's equipment and covering all periods of interruption, with limits not less than one hundred percent (100%) of all charges payable by Tenant under this Lease for a period of twelve (12) months; and (g) such other insurance as Landlord may reasonably require, including Pollution or Environmental Liability insurance.  The foregoing commercial general liability and umbrella liability policies are subject to increases in coverage amounts, as reasonably determined by Landlord in the event Tenant is permitted in writing by Landlord to use the Premises for light manufacturing.  Such liability policies shall (A) name Landlord, Landlord's Mortgagee, Landlord's agents, and their respective Affiliates (defined below), as additional insureds on a form that does not limit the coverage provided under such policy to any additional insured (i) by reason of other insurance available to such additional insured, or (ii) to claims for which a primary insured has agreed to indemnify the additional insured, and (B) provide primary and non-contributory coverage to Landlord, Landlord's Mortgagee, Landlord's agents, and their respective Affiliates when any policy issued to such parties (collectively or individually) is similar or duplicate in coverage, in which case such policy shall be excess over Tenant's policies.  All policies required to be maintained by Tenant hereunder shall (1) be issued by an insurance company with a rating of at least "A: VII" or better as set forth in the most current issue of AM Best's Insurance Reports, unless otherwise approved by Landlord in writing, (2) provide that such insurance may not be cancelled unless 30 days' prior written notice is first given to Landlord, and (3) be delivered to Landlord by Tenant before the earlier of the Commencement Date or the date Tenant occupies the Premises and at least 15 days before each renewal thereof.  Landlord must give its prior written approval to all deductibles and self-insured retentions under Tenant's policies.  No insurance policy will contain endorsements that restrict, limit, or exclude coverage in a manner that is inconsistent with the foregoing requirements.  In the event Landlord engages a third party servicer for collection and review of insurance certificates from tenants of the Premises/Building on Landlord's behalf, upon receipt of written notice from Landlord of the identity of such third party servicer, Tenant agrees to register with such servicer for such servicer's receipt of Tenant's certificates of insurance, provide such servicer with Tenant's certificates of insurance and communicate with such servicer regarding Tenant's insurance required hereunder and compliance therewith.  

Landlord shall maintain “AllRisk” property insurance at replacement cost on the Building at all times during the Term of the Lease.  The cost for such insurance and other insurance maintained by Landlord shall be included in Operating Expenses.
10.CASUALTY DAMAGE

(a)    Tenant shall give written notice to Landlord of any damage to the Premises or the Building promptly on discovery of the same. If the Premises or the Building is totally destroyed by an insured peril, or so damaged by an insured peril that, in Landlord's reasonable estimation, rebuilding or repairs cannot be substantially completed within 270 days after the date of Landlord's actual knowledge of such damage, then either Landlord or (if a Tenant Party did not cause such damage) Tenant may terminate this Lease by delivering to the other written notice thereof within 30 days after such damage, in which case, the rent shall be abated from the date of occurrence through the unexpired portion of this Lease, effective upon the date such damage occurred. Time is of the essence with respect to the delivery of such notices.

(b)    Subject to Section 10(c), if this Lease is not terminated under Section 10(a), then Landlord shall restore the Premises to substantially its previous condition, except that Landlord shall not be required to rebuild, repair or replace any part of the contents required to be covered by Tenant's insurance under Section 9 and Tenant shall use the proceeds from such insurance for the replacement of trade fixtures, furniture, inventory and other personal property and for the restoration of Tenant's Alterations, improvements and additions to the Premises.  If the Premises are untenantable, in whole or in part, during the period beginning on the date such damage occurred and ending on the date of substantial completion of Landlord's repair or restoration work (the "Repair Period") then the rent for such period shall be reduced to such extent as may be fair and reasonable under the circumstances.

(c)    If the Premises are destroyed or substantially damaged by any peril not covered by the insurance maintained by Landlord or any Landlord's Mortgagee (defined below) requires that insurance proceeds be applied to the indebtedness secured by its Mortgage (defined below) or to the Primary Lease (defined below) obligations, 

Landlord may terminate this Lease by delivering written notice of termination to Tenant within 30 days after such destruction or damage or such requirement is made known by any such Landlord's Mortgagee, as applicable, whereupon all rights and obligations hereunder shall cease and terminate, except for any liabilities of Landlord orTenant which accrued before this Lease is terminated, provided that all Base Rent and any additional rent accruing after the date of the casualty shall be abated, and any rent or other monies paid in advance by Tenant under the terms of this Lease for the period from and after the casualty shall be repaid to Tenant. If Landlord does not terminate this Lease under this provision, then Landlord shall restore the Premises and rent shall be abated in accordance with paragraph 10(b) above. 

11.LIABILITY, INDEMNIFICATION, WAIVER OF SUBROGATION AND NEGLIGENCE

(a)    Landlord shall not be liable to Tenant or Tenant's agents, employees or contractors, or those claiming by, through, or under any of them for any injury to or death of any person or persons or any damage to or loss, or loss of use of any real or personal property caused by casualty, theft, or any criminal or tortuous acts or omissions of any third party.  In addition, Landlord and Tenant each waives any claims it might have against the other for any damage to or theft, destruction, loss or loss of use of any property, to the extent the same is insured against under any insurance policy that covers the Premises, Landlord's or Tenant's fixtures, personal property, leasehold improvements, or business, or is required to be insured against by the party which might have such claim under the terms of this Lease, REGARDLESS OF WHETHER THE NEGLIGENCE (OF WHATEVER TYPE OR NATURE) OR FAULT OF THE OTHER PARTY CAUSED SUCH LOSS.  EACH PARTY SHALL CAUSE ITS INSURANCE CARRIER TO ENDORSE ALL APPLICABLE POLICIES WAIVING THE CARRIER'S RIGHT OF RECOVERY UNDER SUBROGATION OR OTHERWISE AGAINST THE OTHER PARTY.  For the purpose of the foregoing waiver, the amount of any deductible applicable to any loss or damage shall be deemed covered by, and recoverable by the insured under the insurance policy to which such deductible relates.  

(b)    Subject to Section 11(a), Tenant shall defend, indemnify, and hold harmless Landlord and its agents and employees from and against all claims, demands, liabilities, causes of action, suits, judgments, attorneys' fees and expenses for any Loss arising from any occurrence within, on or about the Premises or arising from Tenant's failure to perform its obligations under this Lease or arising from any act or omission (whether negligent, intentional or otherwise) of Tenant or Tenant's agents, employees, invitees or contractors, except to the extent that a Loss is caused by the negligence, gross negligence or intentional misconduct of Landlord.  The term "Loss" means any injury to or death of any person or persons or any damage to or theft, destruction, loss, or loss of use of any real or personal property caused by casualty, theft, fire, or any acts or omissions of any person or party, and any injury or damage or inconvenience which may arise through repair or alteration of any part of the Premises, or failure to make repairs, or from any other cause.

(c)    Subject to Section 11(a), Landlord shall defend, indemnify, and hold harmless Tenant and its agents and employees from and against any and all claims, demands, liabilities, causes of action, suits, judgments, attorneys’ fees and expenses for a Loss only to the extent caused by the negligence, gross negligence, or willful misconduct on the part of Landlord or its agents, employees or contractors.

THE PROVISIONS OF THIS SECTION 11 SHALL SURVIVE TERMINATION OR EXPIRATION OF THIS LEASE.

12.USE

The Premises shall be used only for offices, manufacturing, receiving, storing, shipping and selling products, materials and merchandise made or distributed by Tenant and for such other lawful purposes as may be incidental thereto, provided that such uses are in compliance with all applicable Laws; however, no retail sales may be made from the Premises.  Tenant shall be solely responsible for complying with all Laws applicable to the use, 

occupancy, and condition of the Premises.  Tenant shall not permit any objectionable or unpleasant odors, smoke, dust, gas, light, noise or vibrations to emanate from the Premises; nor take any other action that would constitute a nuisance or would disturb, unreasonably interfere with, or endanger Landlord or any other person; nor permit the Premises to be used for any purpose or in any manner that would (1) void the insurance thereon, (2) increase the insurance risk, or (3) cause the disallowance of any sprinkler credits.  Tenant shall pay to Landlord on demand any increase in the cost of any insurance on the Premises incurred by Landlord, which is caused by Tenant's use of the Premises or because Tenant vacates the Premises. Tenant and its invitees shall be allowed access to the Premises and parking facilities 24 hours per day, seven days per week.
13.INSPECTION  

Upon twenty four (24) hours notice, Landlord and Landlord's agents and representatives may enter the Premises during business hours to inspect the Premises; to make such repairs as may be required or permitted under this Lease; to perform any unperformed obligations of Tenant hereunder; and to show the Premises to prospective purchasers, mortgagees, ground lessors, and (during the last 6 months of the Term) tenants.  During the last 6 months of the Term, Landlord may erect a sign on the Premises indicating that the Premises are available.  Tenant shall notify Landlord in writing of its intention to vacate the Premises at least 60 days before Tenant will vacate the Premises; such notice shall specify the date on which Tenant intends to vacate the Premises (the "Vacation Date").  At least 30 days before the Vacation Date, Tenant shall arrange to meet with Landlord for a joint inspection of the Premises.  After such inspection, Landlord shall prepare a list of items that Tenant must perform before the Vacation Date, which shall not include repairs due to normal wear and tear or casualty.  If Tenant fails to arrange for such inspection, then Landlord may conduct such inspection and Landlord's determination of the work Tenant is required to perform before the Vacation Date shall be conclusive.  If Tenant fails to perform such work before the Vacation Date, then Landlord may perform such work at Tenant's cost.  Tenant shall pay all costs incurred by Landlord in performing such work within ten days after Landlord's request therefor.

14.ASSIGNMENT AND SUBLETTING

(a)Tenant shall not, without the prior written consent of Landlord, which will not be unreasonably withheld, delayed or conditioned (except that Landlord may, in its sole discretion, withhold its consent to any proposed collateral assignment of this Lease), (1) advertise that any portion of the Premises is available for lease or cause or allow any such advertisement, (2) assign, transfer, or encumber this Lease or any estate or interest herein, whether directly or by operation of law, (3) permit any other entity to become Tenant hereunder by merger, consolidation, or other reorganization, (4) if Tenant is an entity other than a corporation whose stock is publicly traded (or a corporation whose stock is in the process of being publicly traded), permit the transfer of an ownership interest in Tenant so as to result in a change in the current control of Tenant, (5) sublet any portion of the Premises, (6) grant any license, concession, or other right of occupancy of any portion of the Premises, or (7) permit the use of the Premises by any parties other than Tenant (any of the events listed in items (1) through (7) being a "Transfer").  If Tenant requests Landlord's consent to a Transfer, then Tenant shall provide Landlord with a written description of all terms and conditions of the proposed Transfer, copies of the proposed documentation, and the following information about the proposed transferee: name and address; reasonably satisfactory information about its business and business history; its proposed use of the Premises; banking, financial, and other credit information; and general references sufficient to enable Landlord to determine the proposed transferee's creditworthiness and character.  Tenant shall reimburse Landlord for its reasonable attorneys' fees and other expenses incurred in connection with considering any request for its consent to a Transfer up to but not exceeding $1,500.00.  If Landlord consents to a proposed Transfer, then the proposed transferee shall deliver to Landlord a written agreement whereby it expressly assumes the Tenant's obligations hereunder (however, any transferee of less than all of the space in the Premises shall be liable only for obligations under this Lease that are properly allocable to the space subject to the Transfer, and only to the extent of the rent it has agreed to pay Tenant therefor).  Landlord's consent to a Transfer shall not release Tenant from performing its obligations under this Lease, but rather Tenant and its transferee shall be jointly and severally liable therefor.  Landlord's consent to any Transfer shall not waive Landlord's rights as to any subsequent Transfers.  If an Event of Default occurs while the Premises or any part thereof are subject to a Transfer, 

then Landlord, in addition to its other remedies, may collect directly from such transferee all rents becoming due to Tenant and apply such rents against Tenant's rent obligations under this Lease.  Tenant authorizes its transferees to make payments of rent directly to Landlord upon receipt of notice from Landlord to do so.

(b)Notwithstanding anything to the contrary in this Lease, Tenant may (i) assign or sublet the Premises, or any part thereof, to any entity controlling, controlled by, or under common control with the original Tenant named herein (a “Tenant Affiliate”) having a net worth not less than the net worth of Tenant as of the date hereof, and/or (ii) transfer the ownership interests controlling Tenant to a person or entity having a net worth not less than the net worth of Tenant as of the date hereof, without the prior written consent of Landlord; provided, however, Tenant shall provide at least ten (10) days written notice prior to assigning this Lease to, or entering into any sublease with, any Tenant Affiliate, or transferring the ownership interests, and shall include all documentation establishing the Tenant Affiliate’s or transferee’s net worth in such notice.  Further notwithstanding the above, Tenant may assign or sublet the Premises, or any part thereof, to any successor to Tenant by purchase, merger, consolidation or reorganization (hereinafter, collectively, referred to as “Permitted Transfer”, and such transferee, a “Permitted Transferee”) without the consent of Landlord, provided: (1) no Event of Default exists; (2) if such proposed transferee is a successor to Tenant by purchase, said proposed transferee shall acquire all or substantially all of the stock or assets of Tenant’s business or, if such proposed transferee is a successor to Tenant by merger, consolidation or reorganization, the continuing or surviving entity shall own all or substantially all of the assets of Tenant; (3) such proposed transferee shall have a net worth not less than the net worth of Tenant as of the date hereof; and (4) Tenant shall provide at least ten (10) days written notice prior to any Permitted Transfer and shall include reasonable documentation establishing the transferee’s net worth in such notice.  

(c)Landlord may, within 30 days after submission of Tenant's written request for Landlord's consent to a Transfer, cancel this Lease (or, as to a subletting, cancel as to the portion of the Premises proposed to be sublet) as of the date the proposed Transfer was to be effective; provided, however, Tenant may elect by written notice to landlord within twenty (20) days after receipt of Landlord’s cancellation notice to rescind in Transfer Request in which case this Lease shall not be cancelled but shall remain in full force and effect.  If Landlord cancels this Lease as to any portion of the Premises, then this Lease shall cease for such portion of the Premises and Tenant shall pay to Landlord all rent accrued through the cancellation date relating to the portion of the Premises covered by the proposed Transfer.  Thereafter, Landlord may lease such portion of the Premises to the prospective transferee (or to any other person) without liability to Tenant.  

(d)Tenant shall pay to Landlord one-half of all rents received by Tenant under any Transfer, which are in excess of the rents payable by Tenant under this Lease and the reasonable costs incurred by Tenant in connection with such reletting.  Tenant shall hold such amounts in trust for Landlord and pay them to Landlord within ten (10) days after receipt.

15.CONDEMNATION  

If any portion of the Building is taken for any public or quasi-public use by right of eminent domain or private purchase in lieu thereof (a "Taking"), and the Taking prevents or materially interferes with the use of the Premises for the purpose for which they were leased to Tenant, either party may terminate this Lease by delivering to the other written notice thereof within 30 days after the Taking, in which case rent shall be abated during the unexpired portion of the Term, effective on the date of such Taking.  If a portion of the Land (but not any portion of the Building) is subject to a Taking, but the Taking does not prevent or materially interfere with the use of the Premises for the purpose for which they were leased to Tenant, then neither party may terminate this Lease, but the rent payable during the unexpired portion of the Term shall be reduced to such extent as may be fair and reasonable under the circumstances.  All compensation awarded for any Taking shall be the property of Landlord, and Tenant assigns any interest it may have in any such award to Landlord; however, Landlord shall have no interest in any award made to Tenant for loss of business or goodwill or for the taking of Tenant's trade fixtures, the cost of relocating Tenant and/or disruption of Tenant's business, if a separate award for such items is made to Tenant.

16.SURRENDER OF PREMISES, HOLDING OVER

(a)    No act by Landlord shall be an acceptance of a surrender of the Premises, and no agreement to accept a surrender of the Premises shall be valid unless it is in writing and signed by Landlord.  At the end of the Term or the termination of Tenant's right to possess the Premises, Tenant shall (1) deliver to Landlord the Premises with all improvements located thereon in good repair and condition, reasonable wear and tear (subject however to Tenant's maintenance obligations) excepted, and with the HVAC System and hot water equipment, light and light fixtures (including ballasts), and overhead doors and related equipment in good working order, (2) deliver to Landlord all keys to the Premises, and (3) remove all signage placed on the Premises, the Building, or the Land by or at Tenant's request. All Building fixtures, alterations, additions, and improvements (whether temporary or permanent) shall be Landlord's property and shall remain on the Premises except as provided in the next two sentences.  Provided that Tenant has performed all of its obligations hereunder, Tenant may remove all equipment, trade fixtures, furniture, and personal property placed in the Premises by Tenant (but Tenant shall not remove any such item which was paid for, in whole or in part, by Landlord).  For purposes of clarification of the foregoing, Landlord agrees that Tenant may remove any equipment used in Tenant’s business operations from the Premises.  Additionally, Tenant shall remove such alterations, additions, improvements, fixtures, equipment, wiring, furniture, and other property as Landlord may request, provided such request is made within thirty (30) days after the end of the Term and provided that the installation or construction of the applicable alteration, improvement, additions, fixture or wiring was not consented to by Landlord in writing (unless at the time of consent, Landlord informed Tenant that such item would need to be removed upon expiration of the Lease).  All items not so removed shall, at the option of Landlord, be deemed abandoned by Tenant and may be appropriated, sold, stored, destroyed, or otherwise disposed of by Landlord without notice to Tenant and without any obligation to account for such items and Tenant shall pay for the costs incurred by Landlord in connection therewith.  Any such disposition shall not be considered a strict foreclosure or other exercise of Landlord's rights in respect of the security interest granted under Section 26.  All work required of Tenant under this Section 16 shall be coordinated with Landlord and be done in a good and workmanlike manner, in accordance with all Laws, and so as not to damage the Building or unreasonably interfere with other tenants' use of their premises.  Tenant shall, at its expense, repair all damage caused by any work performed by Tenant under this Section 16.

(b)    If Tenant fails to vacate the Premises at the end of the Term or otherwise remains in possession of any portion of the Premises, then such holdover shall be an incurable default, and Tenant shall be a Tenant at will and Tenant shall pay, in addition to the other rent due hereunder, a monthly rental (without reduction for partial months) equal to 150% of all rental payable during the last month of the Term.  Notwithstanding the foregoing, nothing under Texas law shall require Landlord to give Tenant more than thirty (30) days prior written notice to terminate Tenant’s tenancy-at-will.  Additionally, Tenant shall defend, indemnify, and hold harmless Landlord from any damage, liability and expense incurred because of such holding over, including, without limitation, attorneys’ fees and expenses, and loss of future tenants or rentals.  No payments of money by Tenant to Landlord after the Term shall reinstate, continue or extend the Term, and no extension of this Term shall be valid unless it is in writing and signed by Landlord and Tenant.

17.QUIET ENJOYMENT  

Provided Tenant has fully performed its obligations under this Lease, and subject to the terms and provisions of this Lease, Tenant shall peaceably and quietly hold and enjoy the Premises for the Term, without hindrance from Landlord or any party claiming by, through, or under Landlord.

18.EVENT OF DEFAULT  

Each of the following events shall constitute an "Event of Default" under this Lease:

(a)    Tenant fails to pay any rent when due or any payment or reimbursement required hereunder when due, and in either case such failure continues for a period of five days from the date such payment was due, however, that only for one such failure in any consecutive 12-month period, such failure shall not constitute an Event of Default if the failure in question is remedied within ten (10) days after Tenant’s receipt of written notice from Landlord.

(b)    The filing of a petition by or against Tenant or any guarantor of Tenant's obligations hereunder (1) in any bankruptcy or other insolvency proceeding; (2) seeking any relief under any debtor relief Law; (3) for the appointment of a liquidator, receiver, trustee, custodian, or similar official for all or substantially all of Tenant's property or for Tenant's interest in this Lease; or (4) for reorganization or modification of Tenant's capital structure (however, if any such petition is filed against Tenant, then the filing of such petition shall not constitute an Event of Default, unless it is not dismissed within sixty (60) days after the filing thereof).

(c)    Tenant fails to discharge any lien placed upon the Premises in violation of Section 22 within thirty (30) days after any such lien or encumbrance is filed against the Premises. 

(d)    Tenant fails to comply with any term, provision or covenant of this Lease (other than those listed in this Section 18), and such failure continues for thirty (30) days, or immediately if the failure involves a hazardous condition, after written notice thereof to Tenant. If it will reasonably take more than thirty (30) days to cure such default, then Tenant will have a reasonable time to cure so long as Tenant promptly commences its effort to cure and diligently pursues such cure to completion.  In addition, if Landlord provides Tenant with notice of Tenant's failure to comply with the same specific term, provision or covenant of this Lease on more than two (2) occasions during any 12 month period, Tenant's subsequent violation of the same term, provision or covenant shall, at Landlord's option, be deemed an incurable Event of Default by Tenant.

(e)    In the event Tenant vacates all or substantially all of the Premises for five (5) or more days no Event of Default shall occur so long as (i) Tenant provides Landlord prior written notice of Tenant's intent to vacate, (ii) Tenant pays any additional insurance premiums which may result from such vacation, (iii) Tenant takes such action as Landlord may reasonably request to protect the Premises (including the Building) from vandalism and trespass, and (iv) Tenant otherwise continues to observe and perform all of Tenant's obligations and covenants contained in this Lease, including keeping all Building systems in the Premises operating at levels necessary to prevent damage to the Building or the Building systems, as reasonably determined by Landlord, and if such vacation continues for any period of ninety (90) or more consecutive days (other than a vacancy due to a casualty, condemnation, or a vacancy for which Tenant is expressly entitled to abatement of rent under this Lease) Landlord shall have the right, but not the obligation, to terminate this Lease by delivering written notice of termination to Tenant prior to the date that Tenant occupies or re-occupies all or substantially all of the Premises.  For purposes of this section, Tenant shall be considered to have “vacated” the Premises if Tenant shuts down or “mothballs” its business operations in the Premises, or removes all or substantially all of its equipment and property in the Premises in connection with a cessation of business operations in the Premises, but Tenant shall not be considered to have “vacated” the Premises during any period in which a governmental order requires or recommends that employees refrain from entering the work place, such as a “work stoppage” or “shelter in place” order.

19.REMEDIES

(a)    Upon any Event of Default, Landlord may, in addition to all other rights and remedies afforded Landlord hereunder or by Law, take any of the following actions:

(1)    Terminate this Lease by giving Tenant written notice thereof; in which event, Tenant shall pay to Landlord the sum of (A) all rent accrued hereunder through the date of termination, (B) all amounts due under Section 19(b), and (C) an amount equal to (i) the total rent that Tenant would have been required to pay for the remainder of the Term discounted to present value at a per annum rate equal to the rate of interest set forth for 26-

week U.S. governmental bills sold at a discount from face value in units of $10,000 to $1,000,000 as published on the date this Lease is terminated by The Wall Street Journal, Southwest Edition, in its listing of "Money Rates" under the heading "Treasury Bills" (or, if no such rate is published, the "Discount Rate" as published on such date under the "Money Rates" listing), minus (ii) the then present fair rental value of the Premises for such period, similarly discounted; or

(2)    Terminate Tenant's right to possess the Premises without terminating this Lease by giving written notice thereof to Tenant, in which event Tenant shall pay to Landlord (A) all rent and other amounts accrued hereunder to the date of termination of possession, (B) all amounts due from time to time under Section 19(b), and (C) all rent and other sums required hereunder to be paid by Tenant during the remainder of the Term, diminished by any net sums thereafter received by Landlord through reletting the Premises during such period.  Landlord shall use commercially reasonable efforts to mitigate damages; provided, however, Landlord shall not be liable for, nor shall Tenant's obligations hereunder be diminished because of, Landlord's failure upon commercially reasonable effort to relet the Premises or to collect rent due for a reletting and Landlord shall be deemed to have complied with this mitigation requirement so long as Landlord places signage on the Premises and lists the Premises in substantially the same way it does for other similar space in its inventory.  Tenant shall not be entitled to the excess of any consideration obtained by reletting over the rent due hereunder.  Reentry by Landlord in the Premises shall not affect Tenant's obligations hereunder for the unexpired Term; rather, Landlord may, from time to time, bring action against Tenant to collect amounts due by Tenant, without the necessity of Landlord's waiting until the expiration of the Term.  Unless Landlord delivers written notice to Tenant expressly stating that it has elected to terminate this Lease, all actions taken by Landlord to exclude or dispossess Tenant of the Premises shall be deemed to be taken under this Section 19(a)(2).  If Landlord elects to proceed under this Section 19(a)(2), it may at any time elect to terminate this Lease under Section 19(a).

Additionally, without notice, Landlord may alter locks or other security devices at the Premises to deprive Tenant of access thereto, and Landlord shall not be required to provide a new key or right of access to Tenant.

(b)    Tenant shall pay to Landlord all costs incurred by Landlord (including court costs and reasonable attorneys' fees and expenses) in (1) obtaining possession of the Premises, (2) removing and storing Tenant's or any other occupant's property, (3) repairing, restoring, altering, remodeling, or otherwise putting the Premises into condition acceptable to a new tenant, (4) if Tenant is dispossessed of the Premises and this Lease is not terminated, reletting all or any part of the Premises (including brokerage commissions, cost of tenant finish work, and other costs incidental to such reletting), (5) performing Tenant's obligations which Tenant failed to perform, and (6) enforcing, or advising Landlord of; its rights, remedies, and recourses.  Landlord's acceptance of rent following an Event of Default shall not waive Landlord's rights regarding such Event of Default. Landlord's receipt of rent with knowledge of any default by Tenant hereunder shall not be a waiver of such default, and no waiver by Landlord of any provision of this Lease shall be deemed to have been made unless set forth in writing and signed by Landlord.  No waiver by Landlord of any violation or breach of any of the terms contained herein shall waive Landlord's rights regarding any future violation of such term or violation of any other term.  If Landlord repossesses the Premises pursuant to the authority herein granted, then Landlord shall have the right to (A) keep in place and use or (B) remove and store, at Tenant's expense, all of the furniture, fixtures, equipment and other property in the Premises, including that which is owned by or leased to Tenant at all times before any foreclosure thereon by Landlord or repossession thereof by any lessor thereof or third party having a lien thereon.  Landlord may relinquish possession of all or any portion of such furniture, fixtures, equipment and other property to any person (a "Claimant") who presents to Landlord a copy of any instrument represented by Claimant to have been executed by Tenant (or any predecessor of Tenant) granting Claimant the right under various circumstances to take possession of such furniture, fixtures, equipment or other property, without the necessity on the part of Landlord to inquire into the authenticity or legality of the instrument.  Landlord may, at its option and without prejudice to or waiver of any rights it may have, (i) escort Tenant to the Premises to retrieve any personal belongings of Tenant and/or its employees not covered by the Landlord's statutory lien or the security interest described in Section 26 or (ii) obtain a list from Tenant of the personal property of Tenant and/or its employees that is not covered by the Landlord's statutory lien or the security interest described in Section 26, and make such property available to Tenant and/or Tenant's employees; however, Tenant first shall pay in cash all costs and estimated expenses to be incurred in connection with the removal of such property and making it available.  The rights of Landlord herein stated are in addition to any and all other rights that 

Landlord has or may hereafter have at law or in equity, and Tenant agrees that the rights herein granted Landlord are commercially reasonable.

(c)    TENANT AND LANDLORD HEREBY KNOWINGLY AND VOLUNTARILY WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTER CLAIM, BROUGHT BY ONE PARTY AGAINST THE OTHER OR ANY MATTER WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT CREATED HEREBY, TENANT'S USE OR OCCUPANCY OF THE PREMISES AND/OR ANY CLAIM FOR INJURY OR DAMAGE.  THE PARTIES ARE HEREBY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THE FOREGOING WAIVER.

20.LANDLORD'S DEFAULT  

If Landlord fails to perform any of its obligations hereunder within thirty (30) days after written notice from Tenant specifying such failure (provided that Landlord shall be allowed such additional time as may be reasonably necessary so long as Landlord commences performance within such thirty (30) day period and thereafter diligently pursues such failure to completion) (a “Landlord’s Default”), Tenant's exclusive remedy shall be an action for damages, except as expressly provided otherwise in this paragraph.  Unless Landlord fails to so cure such Landlord’s Default after such notice, Tenant shall not have any remedy or cause of action by reason thereof.  If Landlord’s Default renders the Premises untenantable, Tenant shall so advise Landlord in Tenant’s written notice and Tenant shall be entitled to an abatement of Base Rent based on the portion of the Premises which is untenantable until Landlord cures Landlord’s Default. In the event of a Landlord’s Default, Tenant shall have the right to cure Landlord’s Default when necessary to address an emergency situation or to prevent waste and Tenant shall have the right to offset amounts reasonably and actually incurred by Tenant to cure Landlord’s Default against Base Rent next coming due and payable to Landlord.  If Landlord fails to pay the Construction Allowance when due following Tenant’s compliance with the terms and conditions of Exhibit B (including Section 3 thereof) and such failure constitutes a Landlord’s Default (provided that Landlord’s cure period after notice of default shall be limited to 30 days), Tenant shall have the right to offset the unpaid balance of the Construction Allowance against Base Rent next coming due under the Lease. Liability of Landlord to Tenant for any default by Landlord, shall be limited to actual, direct, but not consequential, damages therefor and, subject to the provisions in this paragraph, shall be recoverable only from the interest of Landlord in the Building and the Land; provided, however, if Landlord does not maintain an equity interest in the Building and the Land of at least 20% of the actual value of the Building and Land, then in such case the Landlord shall be liable for Tenant’s actual and direct damages from a Landlord’s Default to the extent such damages are not recoverable from Landlord’s interest in the Building and the Land.  However, Tenant agrees that none of Landlord’s owners, partners, members, investors, employees or officers shall be personally liable for any claim against Landlord.  TENANT HEREBY WAIVES ITS STATUTORY LIEN UNDER SECTION 91.004 OF THE TEXAS PROPERTY CODE.

21.MORTGAGES

(a)    This Lease shall be subordinate to any deed of trust, mortgage or other security instrument (a "Mortgage") and any ground lease, master lease, or primary lease (a "Primary Lease") that now or hereafter covers any portion of the Premises (the mortgagee under any Mortgage or the lessor under any Primary Lease is referred to herein as "Landlord's Mortgagee") and to increases, renewals, modifications, consolidations, replacements, and extensions thereof; provided, however; so long as Tenant is the sole tenant of the Building the foregoing automatic subordination shall be conditioned on Tenant’s receipt of a subordination non-disturbance and attornment agreement (“SNDA”) on terms and conditions reasonably acceptable to Tenant and any Landlord’s Mortgagee.  Tenant agrees to execute and return any such SNDA with ten (10) days after written request provided the terms and conditions thereof are reasonably acceptable to Tenant.  However, any Landlord's Mortgagee may elect to subordinate its Mortgage or Primary Lease (as the case may be) to this Lease by delivering written notice thereof to Tenant.  

(b)    Tenant shall attorn to any party succeeding to Landlord's interest in the Premises, whether by purchase, foreclosure, deed in lieu of foreclosure, power of sale, termination of lease, or otherwise, upon such party's request, and shall execute such agreements confirming such attornment as such party may reasonably request.  Tenant shall not seek to enforce any remedy it may have for any default on the part of Landlord without first giving written notice by certified mail, return receipt requested, specifying the default in reasonable detail to any Landlord's Mortgagee whose address has been given to Tenant, and affording such Landlord's Mortgagee the same opportunity to perform Landlord's obligations hereunder.

(c)    Notwithstanding any such attornment or subordination of a Mortgage or Primary Lease to this Lease, the Landlord's Mortgagee shall not be liable for any acts of any previous landlord, shall not be obligated to furnish the Construction Allowance (as defined in Exhibit B) and shall not be bound by any amendment to which it did not consent in writing nor any payment of rent made more than one month in advance.

22.ENCUMBRANCES  

Tenant has no authority, express or implied, to create or place any lien or encumbrance of any kind or nature whatsoever upon, or in any manner to bind Landlord's property or the interest of Landlord or Tenant in the Premises or to charge the rent for any claim in favor of any person dealing with Tenant, including those who may furnish materials or perform labor for any construction or repairs.  Landlord shall promptly deliver to Tenant copies of any notices of mechanics liens received by Landlord.  Tenant shall pay or cause to be paid all sums due for any labor performed or materials furnished in connection with any work performed on the Premises by or at the request of Tenant within thirty (30) days after the filing of any such lien, unless Tenant is validly contesting the lien in good faith and provides to Landlord a bond in the amount of 150% of the claim or provides other security reasonably acceptable to Landlord.  Tenant shall give Landlord immediate written notice of the placing of any lien or encumbrance against the Premises.

23.MISCELLANEOUS

(a)    Words of any gender used in this Lease shall include any other gender, and words in the singular shall include the plural, unless the context otherwise requires.  The captions inserted in this Lease are for convenience only and in no way affect the interpretation of this Lease.  The following terms shall have the following meanings:  "Laws" shall mean all federal, state, and local laws, rules, and regulations; all court orders, governmental directives, and governmental orders; and all restrictive covenants affecting the Premises, and "Law" shall mean any of the foregoing; "affiliate" shall mean any person or entity which, directly or indirectly, controls, is controlled by, or is under common control with the party in question; "Tenant Party" shall include Tenant, any assignees claiming by, through, or under Tenant, any subtenants claiming by, through, or under Tenant, and any of their respective agents, contractors, employees, and invitees; and "including" shall mean including, without limitation.  The normal rule of construction that any ambiguities be resolved against the drafting party shall not apply to the interpretation of this Lease or any exhibits or amendments hereto.

(b)    Landlord may transfer and assign, in whole or in part, its rights and obligations in the Building and property that are the subject to this Lease, in which case Landlord shall have no further liability hereunder.  Each party shall furnish to the other, promptly upon demand, a corporate resolution, proof of due authorization by partners, or other appropriate documentation evidencing the due authorization of such party to enter into this Lease.

(c)    Whenever a period of time is herein prescribed for action to be taken by a party (other than the payment of rent), the party shall not be liable or responsible for, and there shall be excluded from the computation for any 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 other causes of any kind whatsoever which are beyond the control of the party in question.

(d)    Tenant shall, from time to time, but no more than twice per 12-month period, within ten days after request of Landlord, deliver to Landlord, or Landlord's designee, a certificate of occupancy for the Premises, financial statements for itself and any guarantor of its obligations hereunder, evidence reasonably satisfactory to Landlord that Tenant has performed its obligations under this Lease (including evidence of the payment of the Security Deposit), and an estoppel certificate stating that this Lease is in full effect, the date to which rent has been paid, the unexpired Term and such other factual matters pertaining to this Lease as may be requested by Landlord.  Tenant's obligation to furnish the above-described items in a timely fashion is a material inducement for Landlord's execution of this Lease.  Landlord agrees to provide, for Tenant, an estoppel certificate for any loan transactions or other transactions where confirmation of the validity of this Lease would be deemed reasonably necessary.

(e)    This Lease constitutes the entire agreement of the Landlord and Tenant with respect to the subject matter of this Lease, and contains all of the covenants and agreements of Landlord and Tenant with respect thereto.  Landlord and Tenant each acknowledge that no representations, inducements, promises or agreements, oral or written, have been made by Landlord or Tenant, or anyone acting on behalf of Landlord or Tenant, which are not contained herein, and any prior agreements, promises, negotiations, or representations not expressly set forth in this Lease are of no effect.  This Lease may not be altered, changed or amended except by an instrument in writing signed by both parties hereto.  This Lease shall not be effective until an original of this Lease executed by both Landlord and Tenant is delivered to and accepted by Landlord.

(f)    All obligations of Tenant hereunder not fully performed by the end of the Term shall survive, including, without limitation, all payment obligations with respect to Operating Expenses and utilities and all obligations concerning the condition and repair of the Premises.  Upon the end of the Term and before Tenant vacates the Premises, Tenant shall pay to Landlord any amount reasonably estimated by Landlord as necessary to put the Premises in good condition and repair, reasonable wear and tear excluded.  Tenant shall also, prior to vacating the Premises, pay to Landlord the amount, as estimated by Landlord, of Tenant's obligation hereunder for underpayment of Operating Expenses for the year in which the Term ends.  All such amounts shall be used and held by Landlord for payment of such obligations of Tenant hereunder, with Tenant being liable for any additional costs therefor upon demand by Landlord or with any excess to be returned to Tenant after all such obligations have been determined and satisfied as the case may be.  Any Security Deposit held by Landlord may be credited against the amount due by Tenant under this Section 23(f).

(g)    If any provision of this Lease is illegal, invalid or unenforceable, then the remainder of this Lease shall not be affected thereby, and in lieu of each such provision, there shall be added, as a part of this Lease, a provision as similar in terms to such illegal, invalid or unenforceable clause or provision as may be possible and be legal, valid and enforceable

(h)    Whenever Tenant requests Landlord to take any action not required of it hereunder or give any consent required or permitted under this Lease, Tenant will reimburse Landlord for Landlord's reasonable, out-of-pocket costs payable to third parties and incurred by Landlord in reviewing the proposed action or consent, including reasonable attorneys', engineers’ or architects’ fees, within 30 days after Landlord's delivery to Tenant of a statement of such costs.  Tenant will be obligated to make such reimbursement without regard to whether Landlord consents to any such proposed action.

(i)    All references in this Lease to "the date hereof" or similar references shall be deemed to refer to the last date, in point of time, on which all parties hereto have executed this Lease.

(j)    Landlord and Tenant each warrant to the other that it has not dealt with any broker or agent in connection with this Lease, other than HPI Real Estate, Inc. and Endeavor Real Estate Group (collectively, the "Brokers").  Pursuant to separate commission agreements, Landlord shall be solely responsible for the payment of the total commission owed pursuant to the commission agreement between Landlord and HPI Real Estate, Inc. Endeavor Real Estate Group shall then be paid its commission pursuant to its commission agreement with HPI Real Estate, Inc. Tenant and Landlord shall each indemnify the other against all costs, attorneys' fees, and other liabilities for commissions or other compensation claimed by any broker or agent (other than the Brokers) claiming the same by, through, or under the indemnifying party.

(k)    If and when included within the term "Tenant," as used in this instrument, there is more than one person, firm or corporation, all shall jointly arrange among themselves for their joint execution of a notice specifying an individual at a specific address within the continental United States for the receipt of notices and payments to Tenant.  If and when included within the term "Landlord," as used in this instrument, there is more than one person, firm or corporation, all shall jointly arrange among themselves for their joint execution of a notice specifying an individual at a specific address within the continental United States for the receipt of notices and payments to Landlord.  All parties included within the terms "Landlord" and "Tenant," respectively, shall be bound by notices given in accordance with the provisions of Section 24 to the same effect as if each had received such notice.

(l)    The terms and conditions of this Lease are confidential and Tenant shall not disclose the terms of this Lease to any third party other than Tenant’s attorneys, brokers, accountants and other consultants and except as may be required by law or to enforce its rights hereunder.

(m)    Tenant shall pay interest on all past-due rent from the date due until paid at the maximum lawful rate.  In no event, however, shall the charges permitted under this Section 23(m) or elsewhere in this Lease, to the extent they are considered to be interest under applicable Law, exceed the maximum lawful rate of interest.

(n)    Intentionally deleted.

(o)    THIS LEASE WILL BE GOVERNED IN ACCORDANCE WITH THE LAWS OF THE STATE OF TEXAS.

(p)    Landlord and Tenant agree that each provision of this Lease for determining charges, amounts and additional rent payments by Tenant (including without limitation, Sections 2 and 3 of this Lease) is commercially reasonable, and as to each such charge or amount, constitutes a "method by which the charge is to be computed" for purposes of Section 93.012 (Assessment of Charges) of the Texas Property Code, as such section now exists or as it may be hereafter amended or succeeded.

(q)    WAIVER OF CONSUMER RIGHTS.  TENANT HEREBY WAIVES ALL ITS RIGHTS UNDER THE TEXAS DECEPTIVE TRADE PRACTICES - CONSUMER PROTECTION ACT, SECTION 17.41 ET. SEQ. OF THE TEXAS BUSINESS AND COMMERCE CODE, 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.

(r)    Landlord and Tenant acknowledge and agree that this Lease, including all exhibits a part hereof, is not a construction contract or an agreement collateral to or affecting a construction contract.

(s)    Any legal proceeding that is brought to enforce this Lease or any guaranty of this Lease (if any), or that arises out of a dispute in connection with this Lease or any guaranty of this Lease (if any), shall be conducted in the county in which the Premises are located. If either party should prevail in any litigation instituted by or against the other related to this Lease, the prevailing party, as determined by the court, shall receive from the non-prevailing party all costs and reasonable attorneys’ fees through all levels of proceedings incurred in such litigation, including costs on appeal, as determined by the court.

(t)    Tenant shall have access to, and may place equipment on, the roof of the Building at Tenant’s sole cost and expense (“Rooftop Equipment”).  Tenant’s access to the roof shall be limited to placing, operating, maintaining, repairing, and removing said Rooftop Equipment, which includes telecommunications equipment.  Tenant’s access and Rooftop Equipment shall not interfere with Landlord’s use of the roof.  In addition, Tenant’s rights to any Roof Equipment shall be subject to and conditioned on the following:

(i)    If installation of the Rooftop Equipment requires any roof penetrations, Tenant must use the contractor designated by Landlord and shall cause such work to be done in a manner that will preserve any roof warranty held by Landlord.  

(ii)    Tenant will ensure that the Rooftop Equipment complies at all times with all applicable laws, codes, ordinances, rules, regulations, and encumbrances.  In addition, Tenant must ensure that neither the Rooftop Equipment nor any appurtenant wiring or cabling interfere with or otherwise adversely affect the mechanical systems of the Building.  Tenant will keep in full force and effect and renew, as applicable, all required permits, approvals, and licenses required for the Rooftop Equipment (and will provide copies of such renewals to Landlord).  

(iii)    Tenant will ensure that the Rooftop Equipment (i) is properly secured and installed so as not to be affected by high winds or other weather elements; (ii) is properly grounded; (iii) does not exceed the load limits of the Building; and (iv) does not damage the Building.  Tenant will indemnify and defend Landlord from and against Losses arising from any overburden or damage to the roof or Building to the extent arising from or resulting from the installation, use, operation, maintenance, repair or removal of the Rooftop Equipment

(iv)    Upon the expiration or earlier termination of the Lease, unless otherwise instructed by Landlord in writing, Tenant, at its sole cost and expense, shall remove the Rooftop Equipment and restore the any areas affected by the Rooftop Equipment to the condition which existed prior to the installation of the Rooftop Equipment, normal wear and tear, casualty and condemnation excepted.

(u)    Tenant shall have the right to keep and maintain on the Premises, at Tenant’s sole cost and expense, generators to provide electricity whenever the regularly provided electrical current is disrupted for any reason.

24.NOTICES  

Each provision of this instrument or of any applicable Laws and other requirements with reference to the sending, mailing or delivering of notice or the making of any payment hereunder shall be deemed to be complied with when and if the following steps are taken.

(a)    All rent shall be payable to Landlord at the address for Landlord set forth in Section 2(d) above or at such other address as Landlord may specify from time to time by written notice delivered in accordance herewith, or by wire transfer of immediately available funds to an account or accounts designated from time to time by Landlord to Tenant with remittance detail from Tenant to Landlord to identify the components of each payment.  Tenant's obligation to pay rent shall not be deemed satisfied until such rent has been actually received by Landlord.

(b)    All payments required to be made by Landlord to Tenant hereunder shall be payable to Tenant at the address set forth below, or at such other address within the continental United States as Tenant may specify from time to time by written notice delivered in accordance herewith.

(c)    Any written notice or document required or permitted to be delivered hereunder shall be deemed to be delivered upon the earlier to occur of (1) tender of delivery (in the case of a hand-delivered notice), (2) deposit in the United States Mail, postage prepaid, Certified Mail, or (3) receipt by facsimile transmission, in each case, addressed to the parties hereto at the respective addresses set out below, or at such other address as they have theretofore specified by written notice delivered in accordance herewith.  If Landlord has attempted to deliver notice to Tenant at Tenant's address reflected on Landlord's books but such notice was returned or acceptance thereof was refused, then Landlord may post such notice in or on the Premises, which notice shall be deemed delivered to Tenant upon the posting thereof.  Additionally, electronic mail may be used, but only to distribute routine communications, 

such as financial statements and other information, and may not be used for providing notice of default of a party hereto or for requesting the consent of the other party when obtaining such consent is required under this Lease.

						
	Landlord:

	Tenant:

	Sundance Consolidated LLC
c/o Scott Rempe
12909 Dessau Rd
Austin, Texas  78754
512-801-0408 - Telephone
scott@packsaddlepartners.com - Email

	Prior to Commencement Date:
Luminex Corporation
Attn: General Counsel            
12212 Technology Blvd., Austin, TX 78727
             - Telephone
             - Email

From and after Commencement Date:
The Premises

25.HAZARDOUS WASTE  

The term "Hazardous Substances," as used in this Lease shall mean pollutants, contaminants, toxic or hazardous wastes, or any other substances, the removal of which is required or the use of which is restricted, prohibited or penalized by any "Environmental Law," which term shall mean any Law relating to health, pollution, or protection of the environment.  Tenant hereby agrees that (a) no activity will be conducted on the Premises that will produce any Hazardous Substances, except for such activities that are part of the ordinary course of Tenant's business activities (the "Permitted Activities") provided such Permitted Activities are conducted in accordance with all Environmental Laws and have been approved in advance in writing by Landlord; (b) the Premises will not be used in any manner for the storage of any Hazardous Substances except for any temporary storage of such materials that are used in the ordinary course of Tenant's business (the "Permitted Materials") provided such Permitted Materials are properly stored in a manner and location satisfying all Environmental Laws and approved in advance in writing by Landlord (Landlord has approved use of the Permitted Materials described in Exhibit G so long as such Permitted Materials are used in the ordinary course of Tenant’s business and in accordance with all Environmental Laws); (c) no portion of the Premises will be used as a landfill or a dump; (d) Tenant will not install any underground tanks of any type; (e) Tenant will not allow any surface or subsurface conditions to exist or come into existence that constitute, or with the passage of time may constitute a public or private nuisance; (f) Tenant will not permit any Hazardous Substances to be brought onto the Premises, except for the Permitted Materials, and if so brought or found located thereon, the same shall be immediately removed by Tenant, with proper disposal, and all required cleanup procedures shall be diligently undertaken pursuant to all Environmental Laws; (g) Tenant will maintain on the Premises a list of all materials stored at the Premises for which a material safety data sheet (an "MSDS") was issued by the producers or manufacturers thereof, together with copies of the MSDS's for such materials, and shall deliver such list and MSDS copies to Landlord upon Landlord's request therefor; and (h) Tenant shall remove all Permitted Materials from the Premises in a manner reasonably acceptable to Landlord before Tenant's right to possess the Premises is terminated.  If at any time during or after the Term, the Premises are found to be so contaminated or subject to such conditions due to the introduction of Hazardous Substances by Tenant or Tenant’s use of the Premises, Tenant shall defend, indemnify and hold Landlord harmless from all claims, demands, actions, liabilities, costs, expenses, damages and obligations of any nature arising from or as a result of the use of the Premises by Tenant, except for any conditions or contamination caused by Landlord.  The foregoing indemnity shall survive termination or expiration of this Lease.  However, Landlord agrees that Tenant shall not be responsible for Hazardous Substances, if any, existing on the Premises prior to the Delivery Date (“Pre-Existing Hazardous Substance Conditions”) except to the extent such Pre-Existing Substance Conditions are made worse by Tenant, and any claims, demands, actions, liabilities, costs, expenses, damages and obligations arising from any Pre-Existing Hazardous Substance Conditions shall be excluded from the foregoing indemnity except to the extent such Pre-Existing Substance Conditions are made worse by Tenant.  In the event any remediation or removal of Hazardous Substances is required at the Premises by any governmental authority, Landlord will be responsible only for the cost of remediation or removal of Pre-Existing Hazardous Substance Conditions, if any, except to the extent such Pre-Existing Hazardous Substances Conditions are made worse by Tenant. Landlord is not responsible for the costs of remediating or removing any Hazardous Substances introduced to the Premises on or after the Delivery Date.  Unless expressly identified on an addendum to this Lease, as of the date hereof there are no "Permitted Activities" or "Permitted Materials" for purposes of the foregoing provision and none shall exist unless and until approved in writing by the Landlord.  Landlord may enter the Premises and conduct environmental inspections and tests therein as it may reasonably require from time to time, provided that Landlord shall use reasonable efforts to minimize the interference with Tenant's business.  Such inspections and tests shall be conducted at Landlord's expense, unless they reveal the presence of Hazardous Substances (other than Permitted Materials or those placed in the Premises by 

Landlord) or that Tenant has not complied with the requirements set forth in this Section 25, in which case Tenant shall reimburse Landlord for the cost thereof within ten days after Landlord's request therefor.  

TENANT ACKNOWLEDGES THAT (1) IT HAS INSPECTED AND ACCEPTS THE PREMISES IN AN "AS IS, WHERE IS" CONDITION, SUBJECT ONLY TO LANDLORD'S DELIVER OBLIGATIONS UNDER SECTION 1(C) OF THE LEASE, (2) THE BUILDING'S IMPROVEMENTS ARE SUITABLE FOR THE PURPOSE FOR WHICH THE PREMISES ARE LEASED AND LANDLORD HAS MADE NO WARRANTY, REPRESENTATION, COVENANT, OR AGREEMENT WITH RESPECT TO THE MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF THE PREMISES, (3) THE PREMISES ARE IN GOOD AND SATISFACTORY CONDITION, (4) NO REPRESENTATIONS AS TO THE REPAIR OF THE PREMISES, NOR PROMISES TO ALTER, REMODEL OR IMPROVE THE PREMISES HAVE BEEN MADE BY LANDLORD (EXCEPT FOR LANDLORD’S DELIVER OBLIGATIONS SET FORTH IN SECTION 1(C) OF THIS LEASE), AND (5) NO WARRANTIES, EXPRESS OR IMPLIED, ARE MADE REGARDING THE CONDITION OR SUITABILITY OF THE PREMISES ON THE COMMENCEMENT DATE.  FURTHER, TO THE EXTENT PERMITTED BY LAW, TENANT WAIVES ANY IMPLIED WARRANTY OF SUITABILITY OR OTHER IMPLIED WARRANTIES THAT LANDLORD WILL MAINTAIN OR REPAIR THE PREMISES OR ITS APPURTENANCES EXCEPT AS MAY BE CLEARLY AND EXPRESSLY PROVIDED IN THIS LEASE.

[Remainder of page intentionally left blank; signatures follow.]

Executed by Landlord on the 21st day of December, 2020.

LANDLORD:

                        SUNDANCE CONSOLIDATED, L.L.C.,
                        a Texas limited liability company

                        By:        /s/ Scott Rempe
                        Name:        Scott Rempe
                        Title:        Member

    Executed by Tenant on the 21st day of December, 2020.

TENANT:

                        LUMINEX CORPORATION,
                        a Delaware corporation

                        By:        /s/ Harriss T. Currie
                        Name:        Harriss T. Currie    
                        Title:        Sr. Vice President of Finance & CFO

                        Taxpayer ID #     74-2747608

EXHIBIT A    Description of Premises 
EXHIBIT B    Work Letter
EXHIBIT B-1     Roof Repair Work Proposal
EXHIBIT B-2    Preliminary Space Plan for Initial Improvements
EXHIBIT C    Notice of Commencement
EXHIBIT D    Intentionally Deleted
EXHIBIT E    Renewal Option
EXHIBIT F    Right of First Offer
EXHIBIT G    Approved Permitted Materials

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